[Federal Register Volume 86, Number 102 (Friday, May 28, 2021)]
[Rules and Regulations]
[Pages 29136-29167]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-10804]



[[Page 29135]]

Vol. 86

Friday,

No. 102

May 28, 2021

Part IV





Federal Communications Commission





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47 CFR Part 54





Establishing Emergency Connectivity Fund To Close the Homework Gap; 
Final Rule

  Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules 
and Regulations  

[[Page 29136]]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 54

[WC Docket No. 21-93; FCC 21-58; FR ID 27313]


Establishing Emergency Connectivity Fund To Close the Homework 
Gap

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Federal Communications Commission 
(Commission) establishes the Emergency Connectivity Fund Program 
(Program) to provide funding for schools and libraries for the 
purchase, during the coronavirus (COVID-19) pandemic, of connected 
devices and broadband connections for use by students, school staff, 
and library patrons.

DATES: Effective May 28, 2021.

FOR FURTHER INFORMATION CONTACT: Johnnay Schrieber, Wireline 
Competition Bureau, (202) 418-7400 or by email at 
[email protected]. The Commission asks that requests for 
accommodations be made as soon as possible in order to allow the agency 
to satisfy such requests whenever possible. Send an email to 
[email protected] or call the Consumer and Governmental Affairs Bureau at 
(202) 418-0530.

SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's 
Report and Order in WC Docket No. 21-93; FCC 21-58, adopted May 10, 
2021 and released May 11,2021. Due to the COVID-19 pandemic, the 
Commission's headquarters will be closed to the general public until 
further notice. The full text of this document is available at the 
following internet address: https://www.fcc.gov/document/fcc-launch-717-billion-connectivity-fund-program-0. See also the notification 
titled ``Wireline Competition Bureau Seeks Comment on Emergency 
Connectivity Fund for Educational Connections and Devices To Address 
the Homework Gap During the Pandemic,'' published at 86 FR 15172 (March 
22, 2021).

I. Introduction

    1. In this Report and Order, the Commission establishes the 
Emergency Connectivity Fund Program (Program) to provide funding for 
schools and libraries for the purchase, during the coronavirus (COVID-
19) pandemic, of connected devices and broadband connections for use by 
students, school staff, and library patrons. Before the pandemic, 
millions of students who lacked home broadband connections and access 
to computers were caught in the ``Homework Gap.'' One study estimates 
that last spring, more than 15 million public school students did not 
have home access to either an internet connection or a device adequate 
for distance learning, and approximately nine million of those students 
lived in households with neither an adequate connection nor an adequate 
device for distance learning. The pandemic has only exacerbated the 
inequities between students who have a broadband connection and those 
who do not. This action addresses those inequities, helping to provide 
all students, school staff, and library patrons with the basic tools 
they need to engage in online learning and in so many other vital 
aspects of our increasingly digital lives.
    2. Today, even as there are hopeful signs that the pandemic is 
receding in this country, many schools and libraries continue to rely 
on remote learning and virtual library services as they adapt to 
changing circumstances. Schools, with assistance from a wide array of 
Federal, state, and local government resources, public interest groups, 
and internet service providers, have worked to equip millions of 
students with tablet and laptop computers, Wi-Fi hotspots, and other 
forms of broadband connections. Yet millions of students have remained 
unconnected to the internet. At the same time, the closure of many 
libraries means that library patrons who were previously dependent on 
computer and internet access at their local libraries lost their 
primary source of broadband access. Just as schools have attempted to 
help meet their students' and staffs' connectivity needs, libraries 
across the country also have attempted to assist patrons in meeting 
their connectivity needs during the pandemic.
    3. To provide relief from the pandemic, on March 11, 2021, the 
American Rescue Plan Act of 2021 (the American Rescue Plan or Act) was 
signed into law. This Report and Order implements section 7402 of the 
Act, which established a $7.171 billion Emergency Connectivity Fund in 
the Treasury of the United States. Section 7402 directed the Federal 
Communications Commission (Commission) to promulgate rules providing 
for the distribution of funding from the Emergency Connectivity Fund to 
eligible schools and libraries for the purchase of eligible equipment 
and/or advanced telecommunications and information services for use by 
students, school staff, and library patrons at locations other than a 
school or library.
    4. Pursuant to section 7402 of the American Rescue Plan, the 
Commission now establishes the Emergency Connectivity Fund Program. The 
support provided through this Program will first allow eligible schools 
and libraries to seek funding for upcoming purchases of eligible 
equipment, including Wi-Fi hotspots, modems, routers, and connected 
devices, as well as advanced telecommunications and information 
services, to meet the remote learning needs of students, school staff, 
and library patrons who would otherwise lack access to connected 
devices and broadband connections sufficient to engage in remote 
learning during the upcoming school year. If additional funding remains 
available after the provision of support to eligible schools and 
libraries for future purchases of eligible equipment and services, the 
Commission will provide schools and libraries an opportunity to apply 
for reimbursement of the reasonable costs they have already incurred in 
purchasing eligible equipment and services to meet the unmet needs of 
their students, school staff, and library patrons who otherwise lacked 
access to equipment or internet access services sufficient to engage in 
remote learning during the COVID-19 pandemic.
    5. The Emergency Connectivity Fund Program is separate from the E-
Rate Program, which has long provided funding for broadband services 
delivered to and within schools and libraries. In the interest of 
efficiency and simplicity, however, the goals and measures, rules, and 
processes the Commission adopts in this document for the Emergency 
Connectivity Fund Program leverage its experience with the E-Rate 
Program.

II. Discussion

    6. In adopting rules to govern the Emergency Connectivity Fund 
Program, the Commission recognizes that Congress has directed it to act 
with haste, conducting a rulemaking within 60 days of the date of 
enactment of the American Rescue Plan. At the same time, the Commission 
is mindful of the latitude Congress has granted it to determine what 
costs are reasonable to reimburse, as well as the purpose of the Fund 
to address the connectivity needs of students, school staff, and 
library patrons who would otherwise be unable to access educational and 
library services during the pandemic. Pursuant to that authority, and 
consistent with Congress' intent, in this Report and Order, the 
Commission moves quickly to open an application process that allows 
eligible schools and libraries to first seek funding for purchases 
during the coming school year of eligible equipment and advanced

[[Page 29137]]

telecommunications and information services to meet the needs of 
students, school staff, and library patrons who would otherwise lack 
access to basic educational opportunities and library services. If the 
demand for these future purchases does not exceed available funds, the 
Commission will open an additional application window to allow schools 
and libraries to seek funding for eligible equipment and broadband 
internet access services that they purchased earlier in the pandemic to 
address the needs of students, school staff, and library patrons who 
would otherwise have lacked access to devices and services sufficient 
to meet their remote learning needs.
    7. Based on its experience with the E-Rate Program, the Commission 
also draws on the existing E-Rate rules and processes to provide clear 
rules and establish quick and easy to understand processes for 
requesting and receiving support from the Emergency Connectivity Fund 
Program, along with appropriate safeguards to protect the Program from 
waste, fraud, and abuse. In this way, the Commission seeks to maximize 
the efficiency and effectiveness of the Emergency Connectivity Fund 
Program and focus limited funding to target the needs of those 
students, school staff, and library patrons who would otherwise lack 
access to connected devices and broadband connections sufficient to 
engage in remote learning and virtual library services during the 
COVID-19 emergency period.

A. Performance Goals and Measures

    8. The Emergency Connectivity Fund Program will provide funding for 
schools and libraries to meet the otherwise unmet connectivity needs of 
students, school staff, and library patrons during the COVID-19 
pandemic. Based on the record in this proceeding and its obligations 
under the American Rescue Plan, the Commission establishes three goals 
for the Emergency Connectivity Fund Program: (1) Connecting and 
facilitating remote learning for students, school staff, and library 
patrons who would otherwise lack adequate access to connected devices 
and broadband internet access connectivity during the pandemic; (2) 
ensuring that the Universal Service Administrative Company (USAC) 
efficiently and effectively administers the Emergency Connectivity Fund 
Program; and (3) providing pricing transparency for eligible equipment 
and services to inform future policy and purchasing decisions. The 
Commission also adopts associated performance measures and targets to 
determine whether the Emergency Connectivity Fund Program is 
successfully achieving these goals. Setting clear goals for the 
Program, with performance measures and targets to determine success, 
will help focus its efforts as the Commission oversees use of the 
Emergency Connectivity Fund to connect and support students, school 
staff, and library patrons during the COVID-19 pandemic.
1. Connecting Students, School Staff, and Library Patrons During the 
Pandemic
    9. The Commission adopts as its first goal for the Emergency 
Connectivity Fund Program helping to meet the need for connected 
devices and broadband internet access services to facilitate remote 
learning during the COVID-19 pandemic for students, school staff, and 
library patrons. The pandemic has caused students, school staff, and 
library patrons nationwide to shift from in-person instruction to 
remote learning. For some students and school staff (and many library 
patrons), this shift was relatively seamless, and education was able to 
continue remotely with minimal disruption. For millions of others, 
however, those who lacked (many of whom continue to lack) necessary 
connected devices and broadband services, the transition to remote 
learning has been filled with barriers. Many school districts have 
spent scarce resources purchasing devices and internet connections for 
students and staff to help bridge the gap. And, libraries have done the 
same for library patrons. Despite these best efforts, many schools and 
libraries nationwide lack adequate funding to ensure that all students, 
school staff, and library patrons are connected and able to fully 
participate in remote learning opportunities.
    10. The Commission will use two metrics to measure the success of 
the Emergency Connectivity Fund Program in addressing students', school 
staffs', and library patrons' otherwise unmet need for connected 
devices and broadband connectivity: (1) The number of connected devices 
funded with Emergency Connectivity Fund support that are provided to 
students, school staff, and library patrons who would otherwise lack 
access to a device sufficient to enable them to engage in remote 
learning; and (2) the number of broadband internet access connections 
(including through use of Wi-Fi hotspots) funded with Emergency 
Connectivity Fund Program support that are provided to students, school 
staff, and library patrons who would otherwise lack access to internet 
connectivity sufficient to engage in remote learning. To measure 
success in meeting this goal, the Commission agrees with commenters 
that recommend the Commission collects information about the number of 
connected devices and broadband connections that are used to connect 
students, school staff, and library patrons through the Emergency 
Connectivity Fund Program and release this data publicly. The 
Commission directs USAC to release this data as part of its Open Data 
project for the Emergency Connectivity Fund Program.
    11. The Commission also appreciates the opportunity the Emergency 
Connectivity Fund Program presents to gather better, more accurate 
information about the number of students without connected devices and 
broadband services sufficient to engage in remote learning and the 
progress made towards closing that Homework Gap. At the same time, the 
Commission recognizes that during the pandemic school districts have 
been trying to meet the needs of their students and staff and 
therefore, they have not collected uniform data sets about their 
students' connectivity requirements. As part of the application 
process, the Commission will, therefore, collect schools' and school 
districts' best estimates about the number of students in their school 
or school district who did not have access to adequate connected 
devices, broadband connections, or both when the pandemic began; the 
number of students who do not currently have access to adequate 
connected devices, broadband internet access connections, or both; and 
how they expect those numbers to change with receipt of requested 
Emergency Connectivity Fund Program support. Given the pressing demands 
on schools, the Commission will not dictate specific data collection 
requirements, but instead will ask each school or school district to 
describe how and when they collected the information that they use for 
the estimates provided in their responses. The Commission directs USAC 
to release this data as part of its Open Data project for the Emergency 
Connectivity Fund Program.
2. Efficiently and Effectively Administer Funding
    12. The Commission adopts as its second goal to ensure that the 
Commission and USAC efficiently and effectively commit funding and 
distribute support from the Emergency Connectivity Fund. The $7.17 
billion Emergency Connectivity Fund must be quickly made available to 
meet the immediate connectivity needs of

[[Page 29138]]

students, school staff, and library patrons nationwide. To make that 
happen, the Commission and USAC must make the application and 
reimbursement processes simple and efficient. The Commission will 
measure success towards this goal in two main ways: (1) Speed and ease 
of the application process and (2) speed and ease of the reimbursement 
process.
    13. Speed and Ease of Application Process. In the first instance, 
the application process should be easy for applicants to navigate and 
to use in requesting funding for eligible equipment and services. The 
Commission can measure success in terms of how quickly Emergency 
Connectivity Fund Program applications are reviewed, and funds are 
committed following the close of the filing window. Consistent with the 
suggestions of some commenters, the Commission sets targets for how 
quickly USAC is able to review applications and release funding 
commitment decision letters after the filing window closes. Some 
commenters have suggested that the Commission adopts performance 
metrics that require USAC to complete its review of applications within 
30 days of filing date, or within 30 days of receiving additional 
information from the applicant. While it is important that USAC act 
expeditiously, the Commission also wants to give USAC sufficient time 
to do an appropriate review of each application. The Commission 
therefore set its targets having USAC issue funding decision commitment 
letters for 50% of the workable applications within 60 days of the 
close of the first application window and 70% of the workable 
applications within 100 days of the close of the first application 
filing window. Based on experience with USAC's issuance of funding 
commitment decision letters in the E-Rate Program, the Commission finds 
that these targets will further the goal of quickly having applications 
reviewed and funding committed, while allowing it to also track USAC's 
performance.
    14. Speed and Ease of Reimbursement Process. Consistent with 
suggestions in the record, the Commission will also measure the ease of 
the reimbursement process and USAC's speed in providing an invoice 
submission process for Program participants and in reviewing invoices 
that have been submitted. The Commission appreciates the suggestion of 
several commenters that the Commission set a target for USAC of 
reviewing invoices within 30 days of submission, but in light of the 
very short time frame under which the Commission is adopting rules for 
this new Program, the Commission does not yet have enough information 
to set specific invoice review targets. Instead, the Commission directs 
the Bureau in consultation with the Office of the Managing Director to 
work closely with USAC on the creation of an invoicing system for the 
Emergency Connectivity Fund Program that allows Program participants to 
easily submit invoices and USAC to promptly review those invoices.
3. Inform Future Purchasing and Policy Decisions Through Pricing 
Transparency for Eligible Equipment and Services
    15. The Commission adopts its third goal informing future 
purchasing and policy decisions through pricing transparency for 
eligible equipment and services. The Commission's experience 
administering and collecting data on the Emergency Connectivity Fund 
Program will provide valuable information for future purchasing 
decisions for schools and libraries. The Commission therefore agrees 
with commenters that argue one crucial aspect of the Emergency 
Connectivity Fund Program is pricing transparency. The Commission thus 
requires USAC to make the pricing data from the Emergency Connectivity 
Fund Program publicly available through its Open Data platform. The 
publication of this pricing data will allow applicants to review past 
prices paid by schools and libraries across the country for same and 
similar eligible equipment and services. Doing so will put them in a 
better bargaining position when making such purchases in the future. 
The Commission directs USAC to make the Emergency Connectivity Fund 
Program application and pricing data publicly available within 160 days 
after the first Emergency Connectivity Fund Program application filing 
window closes.
    16. To measure progress towards this goal, USAC, subject to 
oversight by the Bureau and the Office of Economics and Analytics, 
should conduct or commission at least one survey of participating 
schools and libraries to determine whether the data transparency 
measures built into the Emergency Connectivity Fund Program are 
enabling program participants to make more cost-effective purchasing 
decisions in the future. The Commission will share the results of the 
survey with interested stakeholders and other policy makers, so that it 
can inform future policy decisions.

B. Eligible Schools and Libraries

    17. Consistent with Congressional direction in section 7402, the 
Commission adopts rules providing that all of the schools, libraries, 
and consortia of schools and libraries that are eligible for support 
under the E-Rate Program are also eligible to request and receive 
support through the Emergency Connectivity Fund Program. In so doing, 
the Commission also adopts for purposes of the Emergency Connectivity 
Fund Program, the same definitions of ``elementary school,'' 
``secondary school,'' ``library,'' and ``library consortium'' as are 
used in the E-Rate rules, with one minor modification explained below. 
Those definitions are grounded in the definitions of ``elementary 
school'' and ``secondary school'' in section 254(h)(7) of the 
Communications Act, as well as the limitations on eligibility set forth 
in section 254(h)(4) of the Communications Act. The Commission also 
specifies that, as with the E-Rate Program, pursuant to section 
254(h)(4) of the Communications Act, the following entities are not 
eligible to receive support from the Emergency Connectivity Fund: (1) 
For-profit schools and libraries; (2) schools and libraries with 
endowments in excess of $50,000,000; (3) libraries whose budgets are 
not completely separate from any schools; and (4) library or library 
consortium that are not eligible for assistance from a state library 
administrative agency under the Library Services and Technology Act 
(LSTA).
    18. The LSTA was recently amended to make clear that Tribal 
libraries are eligible for support from a state library administrative 
agency under LSTA. Consistent with the those amendments, and guidance 
from the Institute of Museum and Library Services, the Commission 
clarifies that Tribal libraries, which are by statute eligible for 
support from state library administrative agencies under the LSTA, are 
eligible for support from the Emergency Connectivity Fund. The current 
E-Rate eligibility rules were adopted long before the LSTA was amended 
and include a citation to an outdated version of that LSTA. Because 
this proceeding is focused on the implementation of the Emergency 
Connectivity Fund, the Commission does not amend the E-Rate rules at 
this time to reflect the change to the LSTA.
    19. The Commission declines to extend eligibility for support from 
the Emergency Connectivity Fund Program to other entities that are not 
eligible for E-Rate support. The Commission is sympathetic to 
suggestions from commenters that the Commission expands the list of 
entities eligible to receive funding from the Emergency Connectivity 
Fund to include a wide variety of public and private institutions

[[Page 29139]]

that have done excellent work helping students and members of the 
public gain access to broadband internet access services and end-user 
devices during the pandemic. However, the Act specifies the entities 
eligible for Emergency Connectivity Fund Program support and does not 
authorize the Commission to expand the definition of eligible entities. 
Thus, even when such institutions are acting in coordination with 
schools or libraries, there is no authority to permit such institutions 
to receive Emergency Connectivity Fund Program support. Moreover, 
straying from the focus of the statute would divert much-needed funding 
from schools and libraries in dire need of assistance.
    20. The Commission clarifies that eligible schools and libraries do 
not need to be current E-Rate participants, but eligible entities, 
particularly those that have not applied for E-Rate support, should be 
prepared to demonstrate eligibility as a school or library under 
Program rules eligible for support from the Emergency Connectivity Fund 
Program during USAC's application review.

C. Eligible Equipment and Services

    21. The Commission looks to section 7402 of the American Rescue 
Plan to determine what equipment and services are eligible for support 
from the Emergency Connectivity Fund Program. The American Rescue Plan 
requires that the Emergency Connectivity Fund be used for the purchase 
of eligible equipment and/or ``advanced telecommunications and 
information services, or both.'' Section 7402(d)(6) of the American 
Rescue Plan defines eligible equipment as (1) Wi-Fi hotspots, (2) 
modems, (3) routers, (4) devices that combine a modem and router, and 
(5) connected devices. Wi-Fi hotspot is defined as ``a device that is 
capable of--(A) receiving advanced telecommunications and information 
services; and (B) sharing such services with another connected device 
through the use of Wi-Fi.'' ``Connected devices'' are defined as laptop 
computers, tablet computers, or similar end-user devices that are 
capable of connecting to advanced telecommunications and information 
services. Section 7402(d)(1) defines ``advanced telecommunications and 
information services'' to mean advanced telecommunications and 
information services, as such term is used in section 254(h) of the 
Communications Act.
    22. Eligible Equipment. Consistent with the definitions in section 
7402, the Commission adopts rules specifying that the following types 
of equipment are eligible for support from the Emergency Connectivity 
Fund Program: Wi-Fi hotspots, modems, routers, devices that combine a 
modem and router, and connected devices. The Commission agrees with 
those commenters that point out that air-cards used to connect end-user 
devices to the internet through cellular data services are wireless 
modems, and as such are eligible for support from the Emergency 
Connectivity Fund Program. The Commission finds inapplicable to the 
Emergency Connectivity Fund Program the E-Rate Program's requirement 
that applicants demonstrate that air cards (and wireless data plans) 
are more cost-effective than fixed wireless broadband services before 
seeking support for air cards (and wireless data plans). The Commission 
adopted that requirement for the E-Rate Program because schools and 
libraries require very substantial bandwidth connections to meet their 
on-campus connectivity needs, which in turn would require them to seek 
E-Rate support for large numbers of air cards to meet those needs. By 
contrast, individual students, school staff, or library patrons do not 
need enterprise level bandwidth, and in some instances air cards may be 
one of the few options available to provide connectivity to them.
    23. Connected Devices. Based on the record, the Commission defines 
connected devices as laptop computers and tablet computers that are 
capable of connecting to advanced telecommunications and information 
services. The Commission expects connected devices to be Wi-Fi enabled 
and able to support video conferencing platforms and other software 
necessary to ensure full participation in remote learning. However, 
recognizing that schools and libraries have had to make challenging 
purchasing decisions to equip students, school staff, and library 
patrons with devices during the pandemic, the Commission declines to 
establish minimum screen size or system requirements for the connected 
devices supported by the Emergency Connectivity Fund Program and 
instead rely on schools and libraries to make the appropriate choices 
about their needs. At the same time, however, the Commission expects 
connected devices to be accessible to and usable by individuals with 
disabilities. If people with disabilities require connected devices to 
connect to the internet, the Commission expects that schools and 
libraries will request such devices to accommodate disabilities if 
needed.
    24. By defining connected devices as ``laptop computers, tablet 
computers, or similar end-user devices that are capable of connecting 
to advanced telecommunications and information services,'' Congress 
provided the Commission the discretion to include connected devices 
beyond laptop and tablet computers as long as they are ``similar.'' 
Based on the record, the Commission excludes desktop computers from its 
definition of ``connected devices.'' Although the Commission recognizes 
the functionality and value of desktop computers, the Commission finds 
that desktop computers are not similar to laptop computers and tablets 
because they lack the portability of laptop and tablet computers, which 
can be a drawback for many students, school staff, and library patrons 
seeking to engage in remote learning. The Commission also finds it 
significant that instead of identifying desktop computers or any other 
stationary devices as eligible connected devices Congress identified a 
set of portable devices as eligible ``connected devices'' and gave it 
discretion to determine whether other devices are similar to those 
portable devices.
    25. Also, based on the record, the Commission excludes mobile 
phones, including smartphones, from its definition of ``connected 
device'' because they lack the same functionality students, school 
staff, and library patrons need to perform necessary remote learning 
activities, homework, or research, and thus the Commission does not 
consider them to be ``similar'' to laptop or tablet computers for the 
purposes intended by the statute here. Numerous commenters, including 
state education departments, education groups and public interest 
groups agree with excluding mobile phones from the definition of 
connected devices because such devices do not sufficiently allow 
students, school staff, and library patrons to meaningfully participate 
in remote learning activities. In establishing the Emergency 
Connectivity Fund, Congress intended to provide funding for devices 
that support remote learning. The record demonstrates that while a 
smartphone may be capable of connecting a student to his or her teacher 
or supplementing learning, it can limit the student's ability to 
develop a class presentation or draft a research paper. At least one 
smartphone vendor shows that some of its smartphones are capable of 
being made more functional by being connected to larger display screens 
for video conferencing and to peripherals, like a keyboard and mouse. 
The fact that some smartphones can be made more functional for 
educational purposes by

[[Page 29140]]

adding these extra peripherals does not persuade the Commission that 
smartphones are similar end-user devices meeting the remote learning 
needs of students, school staff, or library patrons. The Commission 
also finds it significant that the Commission did not receive a single 
comment or other filing from a school or library claiming that they 
purchased smartphones to use instead of laptops or tablets for their 
students, school staff or library patrons or have found smartphones to 
be good substitutes for tablets or laptop computers.
    26. The Commission also finds unpersuasive the arguments of some 
commenters that smartphones should be eligible for Emergency 
Connectivity Fund Program support as eligible devices because they meet 
the definition of a Wi-Fi hotspot, because some schools were forced to 
purchase smartphones to act as Wi-Fi hotspots due to supply chain 
issues at the start of the pandemic, or because the ability of 
smartphones to act as Wi-Fi hotspots was mentioned in the legislative 
history. Section 7402(b) of the American Rescue Plan tasks the 
Commission with determining whether the costs of requests for equipment 
are reasonable, and even with a cap on the reasonable support amount 
for Wi-Fi hotspots, the Commission does not find it reasonable to use 
limited Emergency Connectivity Fund Program support to reimburse 
schools and libraries for costly smartphones used as Wi-Fi hotspots, 
when much less expensive hotspots can serve the same purpose. This is 
particularly true because smartphones have myriad other functions, such 
as cellular voice service, and the Commission would have to choose 
between inappropriately expending resources on functions that are not 
core educational services that section 7402(a) of the American Rescue 
Plan was designed to fund, or allowing applicants to cost allocate 
eligible and ineligible portions of smartphones used as Wi-Fi hotspots. 
However, importing cost allocation requirements into the Emergency 
Connectivity Fund Program is inconsistent with the Commission's goals 
of administrative simplicity and fast funding decisions. It would 
create complexity for the applicants and for the USAC reviewers and 
would inevitably slow down the Emergency Connectivity Fund application 
processing. As such, the Commission agrees with commenters that urge it 
not to require cost allocation decisions in the Emergency Connectivity 
Fund Program and decline to include smartphones in the list of eligible 
connected devices or Wi-Fi hotspots for the Program.
    27. Advanced Telecommunications and Information Services. Although 
section 7402(d)(1) of the American Rescue Plan defines ``advanced 
telecommunications and information services'' by reference to section 
254(h) of the Communications Act, the Communications Act does not offer 
a definition of that term. Instead, in the context of determining what 
services should receive E-Rate support, the Commission has recognized 
that section 254 grants ``the Commission broad and flexible authority 
to set the list of [E-Rate supported] services'' and ``to design the 
specific mechanisms of support.'' As the Commission has recognized, 
``[t]his authority reflects Congress's recognition that technology 
needs are constantly ``evolving'' in light of ``advances in 
telecommunications and information technologies and services.'' As the 
Commission has done in the E-Rate context, the Commission finds that 
because the amount of available funding is finite, ``the Commission 
must make thoughtful decisions about what services are not just 
permissible to support, but are the most essential to support.''
    28. The Commission's notification, published March 22, 2021, sought 
comment on treating a subset of the services currently eligible for 
category one E-Rate support as eligible ``advanced telecommunications 
and information services'' for the purposes of the Emergency 
Connectivity Fund Program. Based on the statutory text enumerating the 
equipment eligible for the Emergency Connectivity Fund (i.e., Wi-Fi 
hotspots, modems, routers, devices that combine a modem and a router, 
and connected devices), as well as the statutory language allowing 
Emergency Connectivity Fund support for the ``purchase'' of advanced 
telecommunications and information services, the Commission understands 
the legislation to be focused on quickly reaching students learning at 
home primarily through commercially available internet access services 
delivered via Wi-Fi hotspots with wireless broadband connectivity or 
via leased modems with fixed broadband connectivity, generally 
delivered from a local internet service provider. The Commission 
therefore finds, that, unless there is no internet access service 
available to purchase in an area, to qualify for funding as advanced 
telecommunications or information services, schools and libraries will 
only be reimbursed for purchasing a commercially available service 
providing a fixed or mobile broadband internet access connection for 
off-campus use by students, school staff, or library patrons.
    29. Dark Fiber and New Networks. With the one exception for areas 
where no service is available for purchase, the Commission excludes 
from eligibility funding for dark fiber and the construction of new 
networks, including the construction of self-provisioned networks. In 
so doing, the Commission agrees with commenters that argue that, as a 
general rule, using Emergency Connectivity Fund Program support to 
construct new networks or self-provisioned networks is inconsistent 
with Congress' intent to fund ``the purchase'' of broadband services to 
meet students, school staff and library patrons' immediate needs, 
rather than the construction of networks. As such, the Commission 
disagrees with those commenters that argue that Congress intended that 
the Emergency Connectivity Fund be used to support everything eligible 
under the E-Rate Program's category one services because it referenced 
``advanced telecommunications and information services'' under section 
254(h) of the Communications Act. The E-Rate Program does not provide 
funding for all types of advanced telecommunications and information 
services. Instead, over time, the Commission has evaluated whether and 
under what conditions providing funding for various types of advanced 
telecommunications and information services would be both cost-
effective and further the policy goals of the program. For example, 
when the Commission chose to make school and library self-provisioned 
networks eligible in 2014, it did so subject to strict competitive bid 
requirements and cost-effectiveness safeguards to ensure that E-Rate 
funds are only spent on a self-provisioned network when it is 
demonstrated to be the most cost-effective option.
    30. Here, where the Commission is primarily relying on local, 
state, and Tribal procurement requirements and striving to provide a 
simple application review process, where it is possible to purchase 
broadband internet access services, the Commission thinks that is the 
most prudent path for meeting the goals of the Emergency Connectivity 
Fund Program of quickly getting connectivity to students, school staff, 
and library patrons. Moreover, in the Commission's experience with the 
E-Rate Program and as supported by the record, planning and executing 
self-provisioned networks is complex and time-consuming. Although there 
are narrow instances where constructing a

[[Page 29141]]

new network is speedy and reasonable, and therefore we provide one 
limited exception, the Commission is not persuaded that on the whole, 
network construction is consistent with or appropriate given the goals 
of the Emergency Connectivity Fund Program to quickly fund schools and 
libraries during the pandemic or consistent with the statute and 
section 254(h)(2)(A)'s direction that the Commission create rules to 
enhance economically reasonable access to support advanced 
telecommunications and information services. This is a short-term 
program, designed to give students, school staff, and library patrons 
access to devices and connectivity that is needed now for remote 
learning during the COVID-19 emergency period. Therefore, the 
Commission believes Congress intended it to provide funding for a 
narrower set of commercially available internet access services, and 
doing so provides a path to offering fast and simple application and 
reimbursement processes for desperately needed equipment and services.
    31. The Commission recognizes that some schools and libraries have 
taken extraordinary steps to connect their students and patrons since 
the start of the pandemic and applaud their commitment to connect their 
students, school staff, and library patrons. But, by excluding support 
for potentially costly construction or self-provisioning projects, the 
Commission is able to satisfy the Congressional goals and swiftly act 
to provide much-needed support to more schools and libraries throughout 
the country. The Commission thus finds that providing support for such 
network construction in areas with commercially available options would 
be inconsistent with the emergency purposes of the Emergency 
Connectivity Fund and better addressed through other Commission 
Universal Service Fund Programs or broadband efforts that have 
established competitive bidding and cost-effectiveness safeguards. 
Adding all such program safeguards for areas with commercially 
available connectivity would be administratively burdensome and 
contrary to the goal to quickly provide access to equipment and 
connectivity to students, school staff, and library patrons during the 
pandemic.
    32. Some stakeholders agree that excluding dark fiber and other 
network construction makes sense due to the nature of the emergency, 
but many seek flexibility and inclusion of additional equipment that 
may be used, to extend a school or library's existing E-Rate-supported 
broadband service to students' homes (largely, wirelessly) or provision 
a separate network. The Commission disagrees that the language in 
section 7402 of the American Rescue Plan should be read to allow 
funding for additional, unenumerated equipment for network expansion 
and to use Emergency Connectivity Fund support for antennas, cell 
towers, Citizens Band Radio Service (CBRS), television white space 
(TVWS) base stations, or drone-powered internet, and other such 
wireless network equipment, except in the case outlined below. To the 
extent schools and libraries expanded their networks or built new 
networks to serve their students or library patrons over the last year, 
such equipment is ineligible for reimbursement through the Emergency 
Connectivity Fund Program, except for the portions of the network that 
fit into the enumerated list of eligible equipment (i.e., Wi-Fi 
hotspots, modems, routers, or devices that combine a modem and router). 
Relatedly, the Commission is focusing in this document on 
implementation of section 7402 of the American Rescue Plan, and 
therefore, this Order does not address requests for action on a 
petition to allow schools and libraries to use their E-Rate-supported 
networks without cost-allocating out the off-campus use during the 
pandemic.
    33. Limited exception for network construction and/or datacasting 
where there is no commercially available internet access service 
option. Despite this understanding of Congress' intent to speed funding 
to schools and libraries through commercially available broadband 
internet access service offerings, the Commission provides a limited 
exception to this finding. The record reflects the fact that in some 
instances there is simply no commercially available internet access 
service for purchase available to reach students, school staff, and 
library patrons in their homes. In only those limited instances, 
network construction (including construction of wireless networks) is 
the only way to quickly bring internet connectivity to these students, 
school staff, and library patrons, and the Commission believes that the 
``purchase'' of equipment necessary to make advanced telecommunications 
and information services functional is consistent with Congress' intent 
to provide emergency connectivity to students, school staff, and 
library patrons that do not have any other internet access options. The 
record also demonstrates that where commercially available internet 
access services are not available datacasting can help meet students' 
remote learning needs by providing them with access to educational 
content outside of school. Therefore, where there are no such 
commercially available broadband internet access services available, 
the Commission will allow schools and libraries to seek Emergency 
Connectivity Fund Program support to construct or self-provision 
networks to connect students, school staff, and library patrons during 
the COVID-19 emergency period who would otherwise not be connected to 
the internet, and the Commission will not require schools and libraries 
to engage in competitive bidding. Under those same circumstances the 
Commission will also allow schools and libraries to seek support for 
the customer premises equipment needed to receive access to educational 
content through datacasting. Some schools are already using datacasting 
and others may have already constructed wireless networks where there 
were no commercially available options and cannot go back and conduct 
competitive bidding. The Commission also considered requiring 
competitive bidding for applicants in areas with no commercially 
available options, but the timing does not work in light of the COVID-
19 emergency and upcoming school year.
    34. To reduce the risk of using emergency funding on time-consuming 
infrastructure construction projects better suited for funding from 
other programs, applicants seeking support for network construction, 
including self-provisioned networks, and those seeking support for 
customer premises equipment used to receive datacasting services, must 
therefore demonstrate that there were no commercially available 
internet access service options sufficient to support remote learning 
from one or a combination of providers. For networks already 
constructed or equipment already purchased during the pandemic, 
applicants must show that services were provided to students, school 
staff, or library patrons during the funding period supported by the 
second filing window. For future construction, they must show that 
construction is completed and services provided within one year of a 
funding commitment decision. Applicants seeking support for network 
construction or customer premises equipment used to receive datacasting 
services must define the geographic area that was or will be served and 
assess the estimated number of students and school staff, or library 
patrons to be served. Schools and libraries must be able to provide 
clear evidence demonstrating how they determined that an existing fixed 
or mobile

[[Page 29142]]

broadband network sufficient to support remote learning was or is not 
available and that for prospective network construction, that they 
sought service from existing providers serving the area prior to 
constructing a new network, and that such providers were unable or 
unwilling to provide services sufficient to meet the remote learning 
needs of their students, school staff, or library patrons. 
Additionally, when the Emergency Connectivity Fund Program support is 
sought for future construction, or for customer premises equipment used 
to receive datacasting services, applicants will be required to certify 
that they sought service from existing service providers in the 
relevant area and that such providers were unable or unwilling to 
provide broadband internet access services sufficient to meet the 
remote learning needs of their students, school staff or library 
patrons.
    35. Minimum Service Standards. While the benefits to students, 
school staff, and library patrons of receiving high speed broadband 
services that include no data caps and low latency are well documented 
in the record, because of the current emergency and the lack of 
ubiquitous high speed broadband nationwide, the Commission declines to 
apply minimum service standards to covered services for the Emergency 
Connectivity Fund Program. As commenters recognize, to do otherwise 
would penalize schools, libraries, students, school staff, and library 
patrons in places where slower speed, data capped, and/or high latency 
services are currently the only affordable options. The Commission also 
recognizes that schools and libraries made purchases over the last year 
based on availability during the emergency, but without specific 
knowledge of whether such purchases might be eligible or ineligible for 
future support, such as from the Emergency Connectivity Fund. Moreover, 
as commenters argue, schools and libraries are in the best position to 
know what is available and sufficient for their remote learning needs. 
The Commission expects that schools and libraries will make the best 
decisions to meet the remote learning needs of their students, school 
staff, or library patrons. The Commission therefore finds that to 
qualify for funding as advanced telecommunications or information 
services purchased by schools and libraries for off-campus use by 
students, school staff, or library patrons, a service must include a 
fixed or mobile broadband connection that permits students, school 
staff, or library patrons to use those connections for remote learning 
or library services. The approach the Commission takes in this document 
maximizes available choices during this emergency and thus speeds 
Emergency Connectivity Fund Program support to eligible schools and 
libraries making good faith efforts to facilitate remote learning 
throughout the pandemic.
    36. Installation, Taxes, and Fees. The Commission agrees with 
commenters that the Emergency Connectivity Fund Program should also 
cover reasonable costs of the enumerated equipment, connected devices, 
and services, including installation, activation, and initial 
configuration costs, taxes, and fees. Such action is consistent with 
the E-Rate Program and most logically aligns with Congress' desire to 
cover the reimbursement of eligible equipment and services needed for 
remote learning without requiring a complicated cost allocation of 
items on participant invoices.
    37. Other Requests for Eligible Services and Equipment. Commenters 
suggest many other types of equipment, services, or software be 
eligible for Emergency Connectivity Fund Program support including 
cybersecurity tools, learning management systems, private network 
services, online learning services that support online learning 
platforms, video conferencing equipment, and standalone microphones. 
The Commission does not dispute that schools and libraries need many of 
the identified products and services, but the Commission believes they 
are outside the scope of what Congress directed it to support through 
the Emergency Connectivity Fund. The Commission also denies Verizon's 
request to permit the use of Emergency Connectivity Fund Program 
support to fund Children's Internet Protection Act (CIPA) 
implementation costs. The Commission previously determined that E-Rate 
recipients are statutorily prohibited from obtaining discounts under 
the universal service support mechanism for the purchase or acquisition 
of technology protection measures necessary for CIPA compliance. The 
Commission finds that the use of Emergency Connectivity Fund Program 
support for implementing CIPA compliance is similarly statutorily 
barred.
    38. While the Commission finds it imperative to focus the Emergency 
Connectivity Fund Program on the equipment and services specified by 
Congress, the Commission also seeks to avoid the challenging cost 
allocation application requirements needed in the E-Rate Program and 
therefore clarify that any components purchased with the eligible 
equipment and necessary for the equipment to operate, such as cords and 
chargers, do not require cost allocation. These minimal costs do not 
warrant the expense or time of cost allocation in an emergency program 
designed to help students, school staff, and library patrons now. The 
Commission finds this will simplify applications and invoicing, which 
ultimately will speed funding to schools and libraries during this 
emergency. Consistent with the E-Rate Program, a manufacturer's multi-
year warranty for a period up to three years that is provided as an 
integral part of an eligible component, without a separately 
identifiable cost, may be included in the cost of the component, but 
unbundled warranties are ineligible. To further assist applicants with 
determining eligible equipment and services for the Emergency 
Connectivity Fund Program, an eligible services list is included in the 
full version of this Report and Order.
    39. Because the issue was raised in the record, the Commission also 
clarifies that, consistent with the E-Rate Program, schools and 
libraries may contract with any service provider or vendor willing to 
comply with the Emergency Connectivity Fund Program rules, not just 
eligible telecommunications carriers. The Commission also declines the 
suggestion of at least one commenter that the Commission excludes 
providers of broadband services that are not participating in the 
Emergency Broadband Benefit Program from providing eligible services in 
the Emergency Connectivity Fund Program. While hundreds of broadband 
providers are participating in the Emergency Broadband Benefit Program, 
some are not, and the Commission does not want to penalize schools or 
libraries for reasons beyond their control.
    40. National Security Supply Chain Restrictions. Finally, the 
Commission reminds Emergency Connectivity Fund Program participants 
that, in accord with Sec.  54.10 of the Commission's rules, 
participants are prohibited from using Federal subsidies to purchase, 
rent, lease, or otherwise obtain any covered communications equipment 
or service from a company identified as posing a national security 
threat to the integrity of communications networks or the 
communications supply chain. The Commission finds that this prohibition 
covers Emergency Connectivity Fund Program support, consistent with the 
determination that the prohibition applies to the Universal Service 
Fund Programs as providing funds for capital

[[Page 29143]]

expenditures necessary for the provision of advanced communications 
services. A list of covered equipment and services was posted on the 
Commission's website on March 12, 2021 and will be updated to reflect 
any future determinations.

D. Service Locations and Per-Location/Per-User Limitations

    41. The American Rescue Plan requires the Commission to adopt 
regulations providing for the provision of support from the Emergency 
Connectivity Fund to an eligible school or library for the purchase of 
eligible equipment and/or services for use by students, school staff, 
and library patrons at locations that include locations other than the 
school or library. While the Act does not impose any explicit 
restrictions on the number of connections or connected devices 
supported by the Fund, it requires that reimbursements for eligible 
equipment ``not exceed an amount that the Commission determines . . . 
is reasonable.'' Moreover, Emergency Connectivity Fund Program support 
is provided under section 254(h)(2) of the Communications Act, which 
requires the Commission to consider what is technically feasible and 
economically reasonable when providing support for access to advanced 
telecommunications and information services for eligible schools and 
libraries. Mindful of the importance of maximizing the use of limited 
funds, the notification sought comment on whether the Commission should 
limit the locations where eligible equipment and services may be used 
or impose per-location or per-user limitations on eligible equipment 
and services. The notification also sought comment on the Commission's 
authority to impose such limitations, if any.
    42. Eligible Locations. Recognizing that students, school staff, 
and library patrons are engaged in remote learning activities from a 
wide variety of off-campus locations that include, but are not limited 
to, their homes, the Commission declines to define or limit the 
specific off-campus locations where eligible equipment and services 
supported by the Emergency Connectivity Fund Program may be used during 
the COVID-19 emergency period. The Commission agrees with commenters 
that argue that limiting the off-campus locations where eligible 
equipment and services can be used would be inconsistent with the broad 
language in the Act. The Commission also agrees with those commenters 
that argue that schools and libraries are well positioned to determine 
where best to connect their students, school staff, and library 
patrons.
    43. The Commission expects that in most instances, the primary off-
campus locations where students, school staff, and library patrons have 
been using eligible equipment and services is and--for the duration of 
the emergency period--will be their homes. At the same time, the record 
is clear that there are some students, school staff, and library 
patrons who cannot receive broadband service at home, or for other 
reasons need access at locations other than their homes. For example, 
emphasizing the rural nature of much of the Navajo Nation and the 
important role government ``anchor institutions'' play in Tribal life, 
the Navajo Nation Telecommunications Regulatory Commission stresses the 
need to permit the placement of eligible equipment, like Wi-Fi 
hotspots, wherever students are engaged in educational activities. 
Other commenters explain that restricting where students, school staff, 
and library patrons may use eligible equipment and services could leave 
the most disadvantaged populations, like the unhoused, unconnected, and 
urge the Commission not to impose restrictions on service locations 
that would exclude these populations. The Commission agrees.
    44. The Commission therefore will permit eligible schools and 
libraries to seek and receive support for the purchase of eligible 
equipment and services for use by students, school staff, and library 
patrons at locations that include, but are not limited to, the homes of 
students, school staff, and library patrons; community centers; 
churches; and any other off-campus locations where they are engaged in 
remote learning activities. In so doing, the Commission seeks to 
provide flexibility to eligible schools and libraries to determine the 
service locations that best fit their needs without hampering their 
ability to undertake creative solutions for connecting students, school 
staff, and library patrons or disadvantaging certain vulnerable 
populations during this unprecedented time.
    45. Notwithstanding this broad interpretation of the Act, and 
pursuant to its authority under section 7402(b) of the Act and section 
254(h)(2)(A) of the Communications Act, the Commission prohibits 
schools and libraries from seeking and receiving reimbursement for 
eligible equipment and services purchased for use solely at the school 
or library. Some commenters suggest that the Act may permit funding for 
eligible equipment and services intended solely for on-campus use, 
pointing to the language in section 7402(a) that eligible equipment and 
services be used at ``locations that include locations other than the 
school'' and ``locations that include locations other than the 
library.'' The Commission disagrees with this reading of the statutory 
text. The primary purpose of the Emergency Connectivity Fund is to 
support off-campus connectivity for students, school staff, and library 
patrons that are unable to benefit from existing connectivity at their 
schools or libraries because of the pandemic, an interpretation 
supported by the legislative history. The Commission construes the 
statute in light of that primary purpose, while not precluding the 
likely reality of the need for some use of the eligible equipment, and 
perhaps incidental use of mobile services at school and library 
``locations'' as well, as long as the eligible equipment and services 
were purchased to provide off-campus access. The Commission also does 
not believe that providing Emergency Connectivity Fund support for 
equipment or services to be used solely on campus is reasonable or 
sound policy in light of the significant need for off-campus 
connectivity brought on by the pandemic and considering that the E-Rate 
Program already provides funding to meet students', school staff, and 
library patrons' on-campus connectivity needs. To permit limited 
funding from the Emergency Connectivity Fund Program to be used to 
support eligible equipment and services solely for on-campus uses would 
effectively allow schools and libraries to replace connections already 
funded through the E-Rate Program with funding from the Emergency 
Connectivity Fund and to use the Fund to purchase every device used on 
campus. The Commission does not believe Congress intended such a 
result.
    46. In particular, the Commission recognizes the benefit of being 
able to use connected devices--laptops and tablets--funded through this 
Program at schools and libraries as schools and libraries begin to 
reopen, and the Commission is sensitive to the need to provide some 
flexibility during this uncertain time. If those connected devices were 
purchased for the purpose of providing students, school staff, and 
library patrons with devices for off-campus use consistent with the 
rules the Commission adopts in this document, the Commission will not 
prohibit such on-campus use. Fixed wireless and wireline connections 
purchased with funding from the Emergency Connectivity Fund may not,

[[Page 29144]]

however, be similarly used on-campus given that these connections are 
already eligible for funding under the E-Rate Program. While the 
Commission prohibits the use of funding to purchase eligible equipment 
and services used solely on campus, the Commission remains mindful of 
the importance of robust school and library networks, particularly in 
rural areas, for the provision of educational and library services 
across the nation. The Commission is committed to continuing to provide 
support for these networks through the E-Rate Program, and encourage 
schools and libraries participating in this new Program to continue to 
seek support for their on-campus connectivity needs through the E-Rate 
Program.
    47. Per-Location/Per-User Limitations. To maximize the use of 
limited funds, the Commission imposes certain per-location and per-user 
limitations on applicants seeking support for eligible equipment and 
services under this Program. Specifically, the Commission will not 
permit an eligible school or library to apply for support for more than 
one fixed broadband internet access connection per location. Nor will 
the Commission provide support for eligible schools and libraries to 
purchase more than one connected device and more than one Wi-Fi hotspot 
per student, school staff member, or library patron during the COVID-19 
emergency period.
    48. Recognizing that Wi-Fi hotspots can be easily moved and used in 
different locations, while fixed broadband connections are delivered to 
a specific location, and pursuant to its authority under section 
7402(b) of the Act and section 254(h)(2)(A) of the Communications Act, 
the Commission first limits support for those costs associated with 
fixed broadband services to one connection per location, but otherwise 
refrain from imposing a similar per-location limitation on Wi-Fi 
hotspots. The Commission agrees with those commenters that suggest that 
while a per-location limitation on fixed broadband services is 
reasonable, a similar limitation on Wi-Fi hotspots would be impractical 
since many of the Wi-Fi hotspots distributed by schools and libraries 
are insufficient for multiple users and many homes with multiple 
students, school staff, or library patrons could benefit from more than 
one Wi-Fi hotspot. For purposes of the per-location limitation the 
Commission imposes on fixed broadband services, the Commission will 
consider each unit in a multi-tenant environment (e.g., apartment 
buildings) a separate location.
    49. Next, with the exception of fixed broadband connections, for 
which there is a one-per-location limit, the Commission prohibits 
schools and libraries from providing more than one supported connection 
and more than one connected device to a student, school staff member, 
or library patron and clarify that this limitation shall apply for the 
duration of the COVID-19 emergency period. That is, during the defined 
emergency period, the Commission will permit eligible schools and 
libraries to request and receive support for no more than one 
connection and no more than one connected device for each student, 
school staff member, or library patron they serve.
    50. While commenters generally support this approach, some argue 
that there may be instances where more than one connected device or 
connection per user may be appropriate. These commenters do not, 
however, provide any specific examples where more than one connected 
device or connection is necessary; and, the one example offered in the 
record by the American Library Association, the Commission finds 
inapposite. Specifically, the American Library Association explains 
that in some cases a parent may request two connected devices from a 
library--one for use of the parent and the other for use of the child. 
Because the library in this instance is providing each device for use 
of one, individual user, the Commission considers such use consistent 
with the per-user limitation the Commission imposes on schools and 
libraries. As such, the Commission is not persuaded by those commenters 
that suggest that more than one connection or connected device per user 
is necessary, particularly in light of its obligation to limit 
reimbursements to amounts the Commission finds reasonable.
    51. Nor is the Commission persuaded that limited funding should be 
used to allow schools and libraries to purchase additional connected 
devices or other equipment beyond the per-user limitation the 
Commission sets to account for equipment damage and breakage. The 
notification sought comment on ``what allowances or controls may be 
necessary to allow schools and libraries to remediate such issues and 
how the Commission can prevent warehousing of unnecessary equipment and 
connected devices?'' While the Commission agrees with commenters that 
it is a sensible practice for schools and libraries to purchase some 
percentage of extra devices in preparation for inevitable equipment 
breakage, the Commission finds that limiting support for connected 
devices and Wi-Fi hotspots provided to students, school staff, and 
library patrons to no more than one of each such type of equipment per 
person is reasonable. Were the Emergency Connectivity Fund unlimited, 
the Commission would likely provide support for additional equipment. 
To do so under the present circumstances would, however, be 
inconsistent with the goal to provide students, school staff, and 
library patrons with as many needed devices and broadband services as 
possible in the near term and prevent unnecessary warehousing.
    52. In adopting a per-user limitation on these connections and 
connected devices, the Commission seeks to equitably distribute and 
maximize the use of limited funds and the number of students, school 
staff, and library patrons served by this Program. To further ensure 
requests for support for connected devices are reasonable, in the case 
of a library, the Commission directs USAC to make inquiries if a 
library or library system seeks reimbursement for more devices than 
seems reasonable based on the size of the library or library system.
    53. To ensure compliance with the per-location and per-user 
limitations the Commission imposes on schools and libraries, and to aid 
in preventing waste, fraud, and abuse, the Commission also requires 
schools and libraries to document the student(s), school staff 
member(s), and library patron(s) served at each location. Because the 
Commission expects that many schools and libraries are, in the normal 
course of business, already documenting this information, the 
Commission anticipates that imposing this requirement for purposes of 
participating in the Emergency Connectivity Fund Program will not be an 
additional burden on most applicants. Moreover, in requiring schools 
and libraries to collect and document this information as detailed 
below, the Commission acknowledges some comments expressing concerns 
about protecting the privacy of students and library patrons, as well 
as the confidentiality of library records, and asserting that imposing 
such a requirement on schools and libraries could discourage them from 
participating in the Program. The Commission is mindful of the need to 
safeguard the privacy of students, school staff, and library patrons, 
and the Commission commits to ensuring that, if the Commission or USAC 
staff needs to access this information, for example, for audit 
purposes, they will request and safeguard the information in accordance

[[Page 29145]]

with the applicable privacy laws and guidance. With this approach, the 
Commission seeks to balance the need to protect limited funds from 
waste, fraud, and abuse and the privacy of students, school staff, and 
library patrons.
    54. Wi-Fi Hotspots on School Buses and Bookmobiles. Consistent with 
its decision above regarding eligible locations, the Commission allows 
schools and libraries to use Emergency Connectivity Fund Program 
support to purchase Wi-Fi hotspots for school buses and bookmobiles to 
provide off-campus broadband services to students, school staff, and 
library patrons who currently lack sufficient broadband access. The 
Commission finds ample support in the record for its action and agree 
with those commenters that assert that deploying Wi-Fi hotspots on 
schools buses or bookmobiles is a cost-effective means by which to 
provide much-needed connectivity to those students, school staff, and 
library patrons in areas with limited options. In addition, the 
Commission is aware that a number of schools and libraries have already 
undertaken initiatives to equip school buses and bookmobiles with Wi-Fi 
hotspots during the COVID-19 emergency period and have found such 
initiatives to be particularly effective. As such, during the second 
application window, schools and libraries will be able to seek support 
for these purchases if made during the relevant time period.

E. Eligible Uses

    55. Consistent with the goal of funding the connections and devices 
needed for remote learning embodied in section 7402(a) of the American 
Rescue Plan and section 254(h)(1)(B) of the Communications Act, and 
with the E-Rate program, the Commission requires that equipment and 
services supported by the Emergency Connectivity Fund Program be used 
primarily for educational purposes. Although the text of section 7402 
of the American Rescue Plan is silent on permitted uses of equipment 
and services eligible for Emergency Connectivity Fund support, that 
section of the Act is entitled ``Funding for E-Rate Support for 
Emergency Educational Connections and Devices.'' Moreover, it provides 
that the Commission promulgate rules for the provision of funding 
consistent with sections 254(h)(1)(B) and (2) of the Communications 
Act, and section 254(h)(1)(B) of the Communications Act requires 
telecommunications carriers to provide services to schools and 
libraries for ``educational purposes.'' As a result, the Commission's 
E-Rate rules require schools and libraries to use E-Rate-supported 
services ``primarily for educational purposes.'' Educational purposes, 
in turn, are defined as ``activities that are integral, immediate, and 
proximate to the education of students'' in the case of schools and 
activities that are ``integral, immediate, and proximate to the 
provision of library services to library patrons'' in the case of 
libraries. The Commission takes that same approach here.
    56. For purposes of the Emergency Connectivity Fund Program, the 
Commission therefore defines ``educational purposes'' as activities 
that are integral, immediate, and proximate to the education of 
students in the case of a school, and activities that are integral, 
immediate, and proximate to the provision of library services to 
library patrons in the case of a library. And, the Commission requires 
schools and libraries to use eligible equipment and services supported 
by this Program primarily for educational purposes, but still limit use 
to students, school staff, and library patrons as intended by Congress. 
Because the Commission requires eligible equipment and services be used 
primarily for educational purposes, as defined in Sec.  54.500 of its 
rules, in the case of schools, the Commission emphasizes that the 
provision of eligible equipment and services for school staff is 
limited to school staff that will be providing (or provided) 
educational services during the relevant time periods and would 
otherwise lack access to connected devices or broadband connections 
sufficient to facilitate remote learning during the pandemic.
    57. The Commission recognizes that some commenters would prefer 
that schools and libraries be able to use eligible equipment and 
services for any purpose they see fit. At least one commenter suggests 
that the Commission adopts a presumption that all off-campus use of 
eligible equipment and services is an ``educational use.'' Others argue 
that the Commission should allow eligible equipment and services to be 
used for broader purposes without imposing any constraints or giving 
priority to educational uses, including for professional development 
and to support household connectivity that provides access to a variety 
of internet resources, not just educational or library resources or 
limited to the intended users specified in the Act. In requesting such 
expansive uses for eligible equipment and services, commenters ignore 
the fact that the Congressional reason for establishing the Emergency 
Connectivity Fund was to fund emergency educational connections and 
devices, as reflected in the title of section 7402 of the American 
Rescue Plan, for use by students, school staff, and library patrons. 
What is more, such arguments, when taken to an extreme, are also an 
invitation to waste, fraud, and abuse.
    58. At the same time, the Commission is sensitive to the critical 
need students, school staff, and library patrons have for broadband 
connections and devices for any number of important and productive uses 
during the COVID-19 pandemic, as well as the need to provide schools 
and libraries with as much flexibility as possible to meet the unique 
remote learning needs of students, school staff, and library patrons. 
The Commission also recognizes that even the most ardent student will 
not be using his or her connected device and broadband connection to 
attend classes and do schoolwork all day every day, and that library 
patrons use the broadband services at libraries for an enormous variety 
of purposes. The Commission therefore finds that it is only reasonable 
that schools and libraries be given the flexibility to allow the use of 
eligible equipment and services for other purposes when they are not 
needed for educational purposes in the first instance. The Commission 
concludes that requiring that eligible equipment and services supported 
by the Emergency Connectivity Fund Program be used primarily for 
educational purposes strikes the right balance. It will ensure that 
such equipment and services are first and foremost used to facilitate 
remote learning, as intended by Congress, while also allowing them to 
be used for other purposes for the benefit of students, school staff, 
and library patrons.
    59. To ensure that connected devices supported by this Program are 
used primarily for educational purposes and by students, school staff, 
and library patrons, the Commission requires schools and libraries to 
restrict access to eligible connected devices to only those students, 
school staff, and library patrons with appropriate credentials. The 
Miami-Dade County Public Schools, in response to the question in the 
notification, confirms in its comments that it already requires 
appropriate credentials, and the Commission expects other schools and 
libraries are doing the same. The Commission thus finds that imposing 
such a restriction will not impose an additional burden on most 
applicants and is an important safeguard to ensure that connected 
devices supported by this Program are used for their intended purpose 
and by intended users. In addition requiring schools and libraries

[[Page 29146]]

to restrict access to the connected devices they provide for use by 
students, school staff, and library patrons helps protect the privacy 
of those users by limiting access to any information they have stored 
on such devices.
    60. Recognizing that it may not always be technically possible to 
similarly restrict access for other eligible equipment and eligible 
services supported by this Program, the Commission encourages, but do 
not require, schools and libraries to take the same approach for the 
use of other eligible equipment and services. The Commission finds that 
restricting access in this way is a best practice and will help ensure 
that eligible services are provided to students, school staff, and 
library patrons, as provided for by the Act.

F. Reasonable Support Amount

    61. The Commission next establishes a range of costs that are 
presumed reasonable for eligible connected devices and Wi-Fi hotspots 
and direct USAC to limit funding commitments for each type of equipment 
or device to the maximum amount deemed reasonable. The Commission also 
establishes an application review process for considering the 
reasonableness of other types of eligible equipment and services. In 
the E-Rate Program, competitive bidding and the requirement to use 
price as the primary factor help ensure cost-effective purchasing. As 
discussed in greater detail below, because the Commission is providing 
support for purchases made during the pandemic without requiring a 
competitive bidding process, those protections do not exist here. 
Moreover, schools and libraries purchased these equipment and services, 
often on short notice and during a time when demand was high for 
tablets, laptops, and Wi-Fi hotspots, and supply chains were disrupted 
leading some schools and libraries to pay premium prices for needed 
equipment. At the same time, the Commission is mindful that the 
Emergency Connectivity Fund, while substantial, is insufficient to meet 
the entire need of the nation's schools and libraries for eligible 
devices and services. Congress therefore directed the Commission to 
reimburse 100% of the costs associated with eligible equipment and 
services, ``except that any reimbursement of a school or library for 
the costs associated with any eligible equipment may not exceed an 
amount that the Commission determines, with respect to the request by 
the school or library for reimbursement, is reasonable.'' Read in 
conjunction with section 254(h)(2)(A) of the Communications Act's 
direction that services be ``technically feasible and economically 
reasonable,'' the Commission adopts reasonable support amounts for 
connected devices and Wi-Fi hotspots and a framework to determine 
unreasonable costs for other eligible equipment and services supported 
under this Program.
    62. For connected devices and Wi-Fi hotspots, the two types of 
eligible equipment for which the Commission expects to see the most 
requests for support through the Emergency Connectivity Fund Program, 
the Commission adopts per-device caps based on a reasonable support 
amount, up to which an applicant may receive support. Adopting these 
reasonable maximum support amounts will provide the simplest review 
process for applications requesting these two types of equipment, 
although applicants will be reimbursed based on the actual costs of the 
equipment. First, after consideration of the record, the Commission 
finds that $400 is a reasonable, maximum support amount for connected 
devices. In response to the Remote Learning Public Notification, 86 FR 
9309 (Feb. 12, 2021), commenters discussed costs of between $160 and 
$650, and just under $300 for iPads. Here, stakeholders support a 
reimbursement limit between $300 and $750 per device to ensure that the 
Emergency Connectivity Fund is not used entirely to support a limited 
number of expensive connected devices and to allow the Program to 
support the much-needed connectivity for students, school staff, and 
library patrons. One commenter suggests that $500 is more than 
sufficient to cover the most commonly used connected devices, while 
another representing states across the country determined that $300 per 
device reflects a reasonable allowance based on knowledge of 
procurements over the last year. However, after consideration of the 
record, $400 is a reasonable amount to reimburse for the vast majority 
of the devices suggested in the record, consistent with limits other 
programs have used. The Commission also elects a maximum support amount 
of $400 in order to ensure funding is available equitably, does not 
unintentionally provide more support to schools and libraries that had 
greater access to funds, and increases the likelihood of available 
funds for those schools and libraries with continuing unmet needs. To 
be clear, applicants that spend more than $400 per connected device may 
seek support of $400 for each such device.
    63. The Commission recognizes that in some instances $400 may not 
be a reasonable maximum cost for a connected device that meets the 
needs of some people with disabilities. Applicants may request a waiver 
of the reasonable support amount for connected devices, if the 
reasonable cost to purchase devices for students, school staff, or 
patrons with disabilities is higher than $400 and the public interest 
warrants deviation from the general rule. The Commission emphasizes 
that applicants seeking a waiver for this purpose should demonstrate 
that the additional cost associated with connected devices for those 
with disabilities is necessary to meet the needs of students, school 
staff, and library patrons with disabilities that would otherwise not 
be met with the purchase of a connected device at the $400 reasonable 
support amount the Commission sets for the Program.
    64. For Wi-Fi hotspots, the Commission adopts $250 as a maximum 
reasonable cost for a Wi-Fi hotspot provided by a school or library to 
a student, school staff member, or library patron, based on advertised 
costs for Wi-Fi hotspots. Again, applicants that spend more than $250 
per Wi-Fi hotspot may seek $250 in support for such devices. This 
maximum allowable cost is for the equipment itself, and the Commission 
expects applicants to separately seek support for the cost of the 
service provided using the hotspot device.
    65. For the other types of eligible equipment--namely, modems, 
routers, and devices that combine modems and routers--the Commission 
does not at this time have a sufficient record to determine a 
reasonable maximum support amount, nor does the Commission expect to 
receive requests totaling a substantial amount of the Fund. The 
Commission therefore directs USAC to carefully review the requests and 
identify applications that are out of line with the funding requests of 
other applicants. The Commission delegates authority to the Bureau to 
provide guidance to USAC for assessing the reasonability of those 
applications based on the universe of requests for reimbursement for 
similar equipment and on applicants' justifications for their requests. 
The Commission recognizes that costs may be higher because of supply 
chain issues at the start of the pandemic, or geographic differences, 
and the Commission expects applicants to be prepared to explain their 
selections and costs, as needed, to be eligible for 100% reimbursement.

[[Page 29147]]

    66. Consistent with this approach for eligible equipment and the 
requirements under section 254(h)(2)(A) that the Commission provide 
access to services to the extent technically feasible and economically 
reasonable, the Commission also directs USAC to review applications for 
commercially available advanced telecommunications and information 
services and identify the applications with outlying costs. The 
Commission delegates authority to the Bureau to provide guidance to 
USAC on how to determine the reasonableness of such costs. Based on the 
record, the Commission expects that most of the applications for 
support for broadband internet access services will be for services 
purchased under bulk purchase agreements, and the Commission expects 
services to generally be in the range suggested by commenters between 
$10 and $25 per month.
    67. At the same time, the Commission recognizes that not all 
schools and libraries will be able to benefit from such bulk purchasing 
arrangements and pricing for broadband services varies widely across 
its nation based on the availability of competitive options, rurality, 
and other factors. In assessing the reasonableness of costs for 
broadband internet access services, particularly in rural locations, 
USAC and the Bureau should make use of the reasonable comparability 
benchmarks established for the High Cost Universal Service Support 
Program. The Bureau and the Office of Economics and Analytics publishes 
an updated reasonable comparability benchmark annually, including 
Alaska-specific benchmarks.
    68. The Commission is mindful of the many valid concerns expressed 
in the record that there may be insufficient funding available for the 
Emergency Connectivity Fund Program to fully support the emergency 
connectivity and device needs of all eligible schools and libraries 
across the nation. In recognition of the concerns that reimbursement 
could be slow or uncertain, the Commission aims throughout this Report 
and Order to implement Program rules and processes that help applicants 
easily apply for funding and receive support as quickly as possible.
    69. The Commission has carefully considered, but do not adopt here, 
the recommendation made by many commenters that instead of imposing 
reasonable maximum support amounts by type of eligible equipment and 
service, the Commission sets funding amounts for schools based on the 
number of students in a school, and for libraries based on their square 
footage, with some adjustments for higher poverty or more rural 
applicants. This is the basic model used for determining the amount of 
funding provided to schools and libraries that apply for E-Rate support 
for internal connections (category two services).
    70. The Commission agrees with commenters that budgets have been a 
successful approach to funding category two services. The commenters 
supporting a similar budget approach for apportioning the Emergency 
Connectivity Fund, however, fail to acknowledge that those category two 
budgets were adopted after a lengthy rulemaking and analysis of the 
costs of deploying internal connections within schools and libraries. 
While these category two budgets do not precisely meet the costs of 
each applicant, they were established with a goal of meeting every 
school and library's need for category two services over the course of 
a five-year budget cycle using available data on the costs and network 
needs and made permanent after careful examination of the budget 
amounts. Here, the Commission lacks sufficient data or estimates to 
make such determinations and instead find commenters' suggested budget 
levels to largely be focused on dividing the appropriated funds with 
slight differences to account for income or rurality. Had Congress 
wished to provide a set amount of funding to each school and library in 
the country, it could have easily done so. Instead, the American Rescue 
Plan clearly states that the Commission shall reimburse 100% of the 
costs associated with the eligible equipment and services, subject to a 
determination of what constitutes reasonable equipment costs, and 
suggestions that the Commission implement applicant budgets is simply 
inconsistent with this direction.

G. Application Process

    71. The Commission adopts an application process that first 
provides funding to schools and libraries for purchases during the 
coming school year of eligible equipment and services for use by 
students, school staff, and library patrons who would otherwise lack 
access to eligible equipment or services sufficient to engage in remote 
learning and virtual library services. As discussed further below, 
during this first application window, applicants will be able to submit 
requests for funding for purchases made between July 1, 2021 and June 
30, 2022, which aligns with the coming school year and the E-Rate 
funding year, with which schools and libraries are very familiar. Then, 
if there are remaining funds after this initial application window, the 
Commission will open a second application window for schools and 
libraries to seek funding for eligible equipment and services they 
previously purchased to address the needs of students, school staff, 
and library patrons who would otherwise have lacked access to the 
equipment or services sufficient to engage in these activities during 
the COVID-19 pandemic. During this second application window, 
applicants will be able to submit requests for funding for purchases 
made from March 1, 2020 to June 30, 2021. However, in consideration of 
the importance of providing support for unconnected students, in the 
event that demand for prospective support in the first window appears 
to be far short of meeting current needs, the Commission may consider 
opening a second prospective window before opening an application 
window to fund previously purchased eligible equipment and services.
    72. In adopting this approach, the Commission is particularly 
cognizant of the substantial remaining unmet need for connected devices 
and broadband internet access services among students, school staff, 
and library patrons. The Commission also recognizes that a significant 
amount of other Federal funding has been made available to schools to 
assist with digital learning (although schools have had the option to 
use that funding to meet a plethora of other pressing needs as well) 
through both the Coronavirus Aid, Relief, and Economic Security (CARES) 
Act last year, as well as other provisions of the American Rescue Plan 
Act. The approach the Commission takes in prioritizing existing unmet 
need, followed by a funding window providing support for previous 
purchases during the pandemic, is consistent with the suggestion made 
by those commenters who support prioritizing future purchases, as well 
as those who support allowing applicants to request support for both 
past and future purchases. Some other commenters support allowing 
requests only for purchases made after the date of this Order, others 
support prioritizing prior purchases, and still others support opening 
a single application window providing support for past and future 
purposes. The Commission recognizes that there is some merit to these 
other approaches. In particular, the Commission sees the appeal of 
using the Emergency Connectivity Fund Program to first reimburse those 
schools and libraries that have already paid for

[[Page 29148]]

eligible equipment and services to meet the needs of their students, 
school staff, and library patrons by prioritizing past purchases. On 
balance, however, the Commission finds that doing so would not be the 
best use of public funds because it would create a risk that the 
Commission would have insufficient funding available to provide support 
for connected devices and broadband internet access services for 
students, school staff, and library patrons who otherwise will not have 
access to devices and connectivity sufficient to meet their remote 
learning needs during the coming school year. Adopting a single funding 
window for past and future purchases creates the same risk, and imposes 
substantial administrative burdens on schools and libraries and on 
USAC.
    73. As discussed above, section 7402(a) requires that the 
Commission promulgates rules for the provision of support under 
sections 254(h)(1)(B) and (h)(2) of the Communications Act. Section 
254(h)(2) of the Communications Act, in turn, requires the Commission 
to consider what is technically feasible and economically reasonable 
when providing support for advanced telecommunications and information 
services. Given this statutory direction, as well as the limited 
funding available under the Emergency Connectivity Fund Program, the 
Commission therefore finds it reasonable to prioritize support to 
connect those students, school staff, and library patrons that would 
otherwise lack sufficient connectivity to benefit from remote learning 
this coming school year. In so doing, the Commission is also mindful of 
the purpose of the Fund and Congress' intent to address the 
connectivity needs of students, school staff, and library patrons who 
would otherwise be unable to access educational and library services 
due to the pandemic.
    74. To ensure that funding is focused on unmet need, the Commission 
will require schools to certify, as part of their funding application, 
that they are only seeking support for eligible equipment provided to 
students and school staff who would otherwise lack access to connected 
devices sufficient to engage in remote learning. The Commission will 
also require schools to certify, as part of their funding application, 
that they are only seeking support for eligible services provided to 
students and school staff who would otherwise lack broadband services 
sufficient to engage in remote learning. This should not be an onerous 
burden, as the record shows that many school districts have conducted 
needs assessments to determine the connectivity needs of their students 
and staff. The Commission thinks that schools are in the best position 
to determine whether their students and staff have devices and 
broadband services sufficient to meet their remote learning needs, and 
the Commission recognizes that they are making such decisions in the 
midst of a pandemic. The Commission, therefore, will not impose any 
specific metrics or process requirements on those determinations, but 
the Commission expects schools to take reasonable measures to determine 
need, avoid duplicating support provided by other programs such as the 
Emergency Broadband Benefit Program, and document need to the extent 
they do not already do so.
    75. The Commission recognizes that libraries do not usually inquire 
about the needs of their patrons before providing services. They do, 
however, typically have acceptable use policies governing patron use of 
library computers and Wi-Fi hotspots. To ensure that libraries are 
providing eligible equipment and services to patrons with unmet needs, 
the Commission therefore requires that on a going forward basis before 
providing a library patron with eligible equipment or services, for 
which the library is seeking Emergency Connectivity Fund support, the 
library must provide the patron a copy of an eligible use policy, which 
explains that the equipment or service is intended for library patrons 
who do not otherwise have access to equipment or services sufficient to 
meet the patron's educational needs. On a going forward basis, the 
Commission also requires that the library patron sign and return a 
statement that the library patron would otherwise lack access to 
equipment or services sufficient to meet the patron's educational needs 
if not for the use of the equipment or service being provided by the 
library.
    76. Initial Emergency Connectivity Fund Program Application Filing 
Window. To speed the availability of funds to schools and libraries 
during the public health emergency, the Commission directs USAC to open 
an initial 45-day Emergency Connectivity Fund Program filing window as 
soon as practicable. During this initial Emergency Connectivity Fund 
Program filing window, eligible schools and libraries may apply for 
funding for the purchase of eligible equipment and services made 
between July 1, 2021 and June 30, 2022 and provided during that time 
period to students, school staff and library patrons who still lack 
access to adequate connected devices, other eligible equipment or 
eligible services. The Commission includes within this first window, 
only eligible equipment ordered by and received, as well as only 
services delivered by June 30, 2022.
    77. The Commission finds that a 45-day application window will 
provide sufficient time for schools and libraries to apply for 
reimbursement. The Commission considered the suggestion of some 
commenters that a 30-day application filing window would be sufficient, 
but the Commission is mindful that this is a new program, the 
application window will be open during the summer, and school staff 
have much to do to get schools ready for the upcoming school year. The 
Commission also considered suggestions that the filing window be 
longer, but this is an ``emergency'' program. Closing the window after 
45 days will allow USAC to quickly size demand, review applications, 
and release funding commitment decision letters--ensuring that funding 
from the Emergency Connectivity Fund will begin to flow to eligible 
applicants within a short period of time.
    78. Additional Application Filing Windows. If demand does not 
exceed available funds for the first application period and the 
Commission does not open a second prospective window, the Commission 
delegates authority to the Bureau to direct USAC to open additional 
application filing windows until the funds are exhausted or the 
emergency period ends, whichever is earlier. The Commission recognizes 
that there will be a point at which the administrative costs to 
applicants and USAC of opening an application process for a relatively 
small amount of remaining funds is not cost-effective and delegate 
authority to the Bureau, after consultation with the Office of the 
Managing Director and USAC, to determine when that point has been 
reached.
    79. In setting a start date for purchases that are reimbursable 
through the Emergency Connectivity Fund Program in the second 
application filing window, the Commission agrees with commenters that 
urge the Commission to use March 1, 2020 as the starting date for the 
Emergency Connectivity Fund Program. Although January 27, 2020 is the 
date the Secretary of Health and Human Services retroactively 
determined that a public health emergency existed as a result of COVID-
19 pursuant to section 319 of the Public Health Service Act, and 
section 7402 states that its regulations should provide for the 
provision of support for purchases ``during a COVID-19 emergency 
period,'' the Commission views that language as giving it

[[Page 29149]]

discretion to determine the appropriate funding period for purchases 
made during the COVID-19 emergency period. While some commenters 
suggest using July 1, 2020 as a start date for eligibility for 
Emergency Connectivity Fund support for administrative ease, the 
Commission agrees with those commenters that argue that it will be 
fairer to applicants that acted quickly, once they became aware of the 
looming pandemic, to use March 1, 2020 as the starting date based on 
when schools began sending students home because of the pandemic. As 
the Remote Learning Coalition points out, every state in the nation 
began closing schools in March 2020. Given the statutory goal of 
meeting the need of students, school staff, and library patrons for 
connectivity during the pandemic, allowing reimbursement for purchases 
made beginning on the first day of the month when schools began to 
close because of the pandemic helps ensure that the Commission provides 
support that is tied to needs arising from the pandemic.
    80. Competitive Bidding Requirements. The Commission allows 
eligible schools and libraries to seek reimbursement for the cost of 
eligible equipment and services purchased without having conducted a 
Commission-mandated competitive bidding process for purposes of the 
Emergency Connectivity Fund. Based on the record, the Commission 
concludes that it is appropriate in light of the emergency, rather than 
adopting an Emergency Connectivity Fund competitive bidding process, to 
require schools and libraries seeking funding from the Emergency 
Connectivity Fund to certify that they have complied with all 
applicable local, state, and Tribal procurement requirements with 
respect to both previous purchases and future purchases and contracts. 
This requires schools and libraries that are not subject to public 
procurement rules to follow their own procurement process and rules, 
such as those that may be included in a written charter.
    81. For purchases that have already been made and contracts that 
have already been executed, it is impractical to attempt to impose 
Commission-specific competitive bidding or other contract restrictions 
on such purchases, and the Commission is also persuaded that compliance 
with local, state, and Tribal procurement requirements offer 
significant protections against waste, fraud and abuse. Schools and 
libraries have been asked to take incredible steps at great cost this 
year in order to facilitate remote learning and keep their communities 
connected, and they did so without the knowledge of whether such 
expenses would be reimbursed. While such expenses will still be 
reviewed to ensure the costs were reasonable, the Commission is 
convinced that the Commission can rely on the local, state, and Tribal 
procurement requirements as a check on unreasonable spending. For 
purchases made after the date of this Report and Order, some 
stakeholders recommend a streamlined competitive bidding approaches, 
ranging from just minor modifications to the E-Rate competitive bidding 
rules to a shortened 14-day competitive bidding window. Given the 
emergency nature of this funding, as well as the ability of the 
Commission to review and reject the requests for unreasonable costs, 
the Commission is convinced that compliance with local, state, and 
Tribal procurement regulations will sufficiently safeguard the Program 
for future purchases and decline to adopt a streamlined competitive 
bidding process for the Emergency Connectivity Fund Program.
    82. The Commission also clarifies that schools and libraries may 
seek support from the Emergency Connectivity Fund Program for the 
purchase of eligible services and equipment using existing bulk 
purchase programs or sponsored service agreements, so long as doing so 
is consistent with the relevant local, state and Tribal procurement 
regulations. Unlike the traditional E-Rate Program, which funds 
broadband connectivity to a single school or district of schools and 
therefore generally only funds service from the single most cost-
effective service provider, the Emergency Connectivity Fund Program is 
aimed at connecting numerous students, school staff, and library 
patrons at their homes or other locations, and therefore a school 
district or library system appropriately may have agreements with 
multiple service providers to offer connectivity. At the same time, the 
Commission declines to adopt the suggestion made by at least one 
commenter that the Commission requires school districts to select 
multiple existing providers, or set requirements for solicitation, 
finding that flexibility is appropriate under the circumstances. The 
Commission also reminds applicants that only eligible schools and 
libraries may seek reimbursement for such costs, and therefore a non-
profit organization or other entity that arranged for such bulk 
purchases is not eligible for reimbursement through the Emergency 
Connectivity Fund Program.
    83. Leveraging E-Rate Processes and Forms. As commenters strongly 
support, the Commission directs USAC to leverage the existing E-Rate 
application, i.e., FCC Form 471 (Description of Services Ordered and 
Certification Form) and other E-Rate processes to the extent feasible 
for the Emergency Connectivity Fund Program. Schools and libraries are 
already familiar with these processes and will be able to apply more 
easily than if an entirely new system is developed using different 
forms and processes. The Commission also expects that leveraging E-Rate 
processes and forms will likely reduce administrative costs and delays 
in the Emergency Connectivity Fund Program and ensure that Emergency 
Connectivity Fund Program support is quickly released to schools and 
libraries.
    84. Prioritization. In the event that demand exceeds available 
funds during any Emergency Connectivity Fund Program application filing 
window, the Commission will prioritize requests based on applicants' E-
Rate Program discount rate for category one services, adjusted to 
provide a five percent bump up for rural schools and libraries. Those 
schools and libraries entitled to a higher discount will receive 
funding ahead of those entitled to a lower discount rate. In the event 
there is insufficient funding to meet the need at a particular discount 
rate, the Commission will prioritize within the discount rate based on 
the percentage of free and reduced lunch eligible students, consistent 
with the rules for the E-Rate Program. Commenters suggest using 
assorted variations on the E-Rate discount matrix or a set-aside to 
reflect need in rural or Tribal areas, or special education programs 
and services. Adjusting the discount matrix to increase the likelihood 
of rural schools and libraries receiving funding in the event that 
demand exceeds available funds, will provide a more equitable 
geographic distribution of available funds, particularly in light of 
the higher cost of residential broadband services in many rural areas 
and the extraordinary circumstances of the pandemic. The Commission 
declines suggestions that the Commission provides a prorated amount of 
funding to all applicants that apply for support, finding instead that 
prioritizing by the discount rates provides a better method to 
prioritize the needs of high poverty and rural schools and libraries. 
The Commission finds that the approach the Commission adopts in this 
document balances the goal of targeting funding to the students, school 
staff, and library patrons with the greatest need with the goal of 
maximizing administrative efficiency by adjusting existing E-Rate 
Program standards rather than creating whole

[[Page 29150]]

new processes just for the Emergency Connectivity Fund Program.

H. Invoicing and Reimbursement Process

    85. As discussed above, one of the goals the Commission adopts for 
the Program is to efficiently and effectively administer funding, which 
will be measured in part by the speed and ease of the reimbursement 
process. Consistent with that goal, the Commission establishes a 
streamlined invoicing process for applicants and service providers to 
submit requests for reimbursement, leveraging existing E-Rate forms to 
reduce administrative burdens where possible, while providing effective 
safeguards against waste, fraud, and abuse.
    86. Submission of Reimbursement Requests. As part of this 
streamlined process, the Commission allows applicants and service 
providers to submit requests for reimbursement. The Commission agrees 
with those commenters that explain allowing both applicant and service 
provider invoicing options is the most efficient and direct way to get 
much needed funding to eligible schools and libraries. The Commission 
sees no reason not to send the actual funds to the service provider 
where the applicant and service provider have both consented to that 
approach and the applicant can show that the contractual obligation 
exists. As part of the invoicing process, applicants and service 
providers must provide required certifications, along with any 
necessary documentation to support their requests. The Commission 
clarifies that applicants may use consultants and service providers to 
assist with the preparation of their reimbursement requests to the 
extent necessary, but any fees associated with such assistance are not 
eligible for funding under the Program.
    87. In addition, the Commission is also sympathetic to concerns 
raised by commenters that applicants may not be able to cover the 
upfront costs associated with eligible equipment and services. The 
Commission therefore will allow applicants who have entered into 
contractual arrangements or are otherwise legally obligated to purchase 
eligible equipment and services from their service provider, to submit 
requests for reimbursement before they have paid for the requested 
equipment and services. Applicants must pay their service provider 
within 30 days after receipt of funds and will be required to certify 
compliance and provide verification of payment to the service provider.
    88. Although the Commission allows applicants to request that their 
service providers submit invoices for payment from the Emergency 
Connectivity Fund, the Commission does not require service providers to 
accept that responsibility. At this juncture, the Commission expects 
that applicants and service providers may have already entered into 
contracts for much of the eligible equipment and services to be 
purchased in the coming school year, and service providers would not 
have entered into those contracts expecting to have responsibility for 
invoicing the Emergency Connectivity Fund Program. At the same time, if 
requested to do so by the school or library, some service providers may 
be willing to invoice the Federal Government rather than the school or 
library for payment. The Commission therefore concludes on balance that 
allowing both options for submission of Emergency Connectivity Fund 
Program reimbursement requests is an efficient and effective way to 
ensure that applicants are actually able to purchase the eligible 
equipment and services. For administrative simplicity, applicants must 
specify at the application stage whether the applicant or service 
provider will be doing the invoicing. If an applicant indicates that 
the service provider will be doing the invoicing, the applicant will 
have to submit evidence of the service provider's willingness to do so.
    89. Documentation. To protect against waste, fraud, and abuse of 
the Fund, the Commission will require applicants and service providers 
to submit, along with their reimbursement requests, invoices detailing 
the items purchased. Invoices must support the amounts requested in the 
application form and reimbursement request. The Commission agrees with 
commenters that suggest submission of invoices with reimbursement 
requests is sufficient in most instances and will help expedite review 
of reimbursement requests and the disbursement of funds. While the 
Commission will not require applicants and service providers to submit 
other supporting documentation at the time they submit their 
reimbursement requests, as discussed further below and pursuant to its 
document retention requirements, all participants must certify receipt/
delivery of eligible equipment and services and that only eligible 
equipment and services were invoiced, as well as retain and provide 
upon request by USAC, Commission staff, or any other authorized Federal 
entity with oversight authority over Federal financial assistance and/
or the Federal response to the pandemic, all records related to their 
reimbursement request (including, for example, contracts and asset 
inventories).
    90. Leveraging Existing E-Rate Invoicing Forms. To further 
streamline the invoicing process and reduce burdens on applicants, the 
Commission directs USAC to leverage the existing E-Rate invoicing forms 
to the extent feasible for the Emergency Connectivity Fund Program. 
Because the Commission allows applicants and service providers to 
submit reimbursement requests, the Commission expects USAC to use, to 
the extent possible, the FCC Form 472 (Billed Entity Applicant 
Reimbursement (BEAR) Form) and FCC Form 474 (Service Provider Invoice 
(SPI) Form) for this purpose. As detailed below, the Commission will 
require participants to make certain certifications on the form to 
protect against waste, fraud, and abuse. By leveraging existing E-Rate 
forms, the Commission expects to save participants time needed to 
familiarize themselves with new forms and reduce administrative costs.
    91. Invoicing Deadline. The notification sought comment on 
establishing a short window for schools and libraries to file invoices 
and reimbursement requests and sought comment on what the shortest 
possible invoice filing window would be that would not impose undue 
burden on applicants. In order to allow the Commission to de-obligate 
committed funds for use by other schools and libraries, the Commission 
directs USAC to start accepting requests for reimbursement within 15 
days of the first wave of commitments in the first application filing 
window. The Commission permits applicants and service providers to 
submit reimbursement requests and invoices for prior and prospective 
purchases for 60 days from the date of the funding commitment decision 
letter; a revised funding commitment decision letter approving a post-
commitment change or a successful appeal of a previously denied or 
reduced funding commitment; or service delivery date, whichever is 
later. That is half the time provided in the E-Rate Program, but 
necessary to ensure that the Commission can identify unspent funds and 
make them available to other applicants as quickly as possible. 
Commenters agree that a shorter invoicing period is reasonable and 
recommend an invoicing window of between 60 and 90 days. The Commission 
finds that 60 days strikes the correct balance.

I. Payment Administration

    92. While USAC will be administering the Emergency Connectivity 
Fund

[[Page 29151]]

Program as permitted under section 7402(c)(2)(A) of the American Rescue 
Plan, and pursuant to the terms of the Memorandum of Understanding 
between the Commission and USAC that authorizes the use of USAC for the 
administration of the Emergency Connectivity Fund Program, the 
Commission must authorize the payments from the Emergency Connectivity 
Fund prior to the disbursement of those funds by the United States 
Department of Treasury. In this Report and Order, the Commission 
provides guidance on steps participants must be prepared to take to 
ensure timely payment of reimbursement claims from the Fund, as well as 
processes used to ensure proper payment.
    93. FCC Red Light Rule. To implement the requirements of the Debt 
Collection Improvement Act of 1996, the Commission established what is 
commonly referred to as the ``red light rule.'' Under the red light 
rule, the Commission will not take action on applications or other 
requests by an entity that is found to owe debts to the Commission 
until full payment or resolution of that debt. If the delinquent debt 
remains unpaid or other arrangements have not been made within 30 days 
of being notified of the debt, the Commission will dismiss any pending 
applications. If an Emergency Connectivity Fund participant is 
currently on red light, it will need to satisfy or make arrangements to 
satisfy any debts that it owes to the Commission before its application 
can be processed.
    94. System for Award Management (SAM) Registration. All applicants 
that intend to participate and all service providers that elect to 
submit requests for reimbursement in the Emergency Connectivity Fund 
Program must also register with the System for Award Management (SAM). 
SAM is a web-based, government-wide application that collects, 
validates, stores, and disseminates business information about the 
Federal Government's partners in support of Federal awards, grants, and 
electronic payment processes. Registration in the SAM provides the 
Commission with an authoritative source of information necessary to 
provide funding to applicants and to ensure accurate reporting pursuant 
to the Federal Funding Accountability and Transparency Act of 2006, as 
amended by the Digital Accountability and Transparency Act of 2014 
(collectively, Transparency Act or FFATA/DATA Act). Only those 
applicants and service providers that are actively registered in SAM 
will be able to receive reimbursement from the Emergency Connectivity 
Fund Program. Applicants and service providers that are already 
registered with SAM do not need to re-register with that system in 
order to receive payment from the Emergency Connectivity Fund Program. 
Applicants who are not already registered with SAM may still 
participate in the Emergency Connectivity Fund Program, apply for 
funding, and receive program commitments. However, active SAM 
registration is required for an applicant or service provider to 
receive a payment from the Emergency Connectivity Fund Program. To 
assist participants who are not registered with SAM, the Commission 
directs USAC to provide information and guidance to participants 
regarding the SAM registration process. Furthermore, Program recipients 
may be subject to further FFATA/DATA Act reporting requirements to the 
extent that awardees subaward the payments they receive from the 
Program, as defined by FFATA/DATA Act regulations. Recipients may be 
required to submit data on those subawards.
    95. Do Not Pay. Pursuant to the requirements of the Payment 
Integrity Information Act of 2019, the Commission is required to ensure 
that a thorough review of available databases with relevant information 
on eligibility occurs to determine program or award eligibility and 
prevent improper payments before the release of any Federal funds. To 
meet this requirement, the Commission and USAC will make full use of 
the Do Not Pay system administered by the U.S. Treasury's Bureau of the 
Fiscal Service. If a check of the Do Not Pay system results in a 
finding that an Emergency Connectivity Fund Program applicant or 
service provider should not be paid, the Commission will not issue any 
funding commitments or issue disbursements. The Emergency Connectivity 
Fund Program participant is responsible for working with the relevant 
agency to correct its information in the Do Not Pay system before its 
Emergency Connectivity Fund Program application is processed and 
Program payments can be issued.

J. Designating USAC as the Administrator of the Emergency Connectivity 
Fund Program

    96. Pursuant to the authority granted in section 7402(c)(2)(A) of 
the American Rescue Plan, and the terms of the Memorandum of 
Understanding between the Commission and USAC that authorizes the use 
of USAC for the administration of the Emergency Connectivity Fund, the 
Commission designates USAC as the Administrator of the Emergency 
Connectivity Fund Program. The Commission will use USAC's services to 
review and approve applications for funding, recommend funding 
commitments, issue funding commitment decision letters, review requests 
for reimbursement and invoices and recommend payment of funds, as well 
as other administration-related duties. Commenters that addressed the 
issue overwhelmingly support using USAC and its processes for the 
efficient and effective administration of the Emergency Connectivity 
Fund Program, and the Commission agrees that USAC's experience 
administering the E-Rate Program and other Commission pandemic response 
programs makes USAC uniquely situated to be the administrator of the 
Emergency Connectivity Fund Program.
    97. In designating USAC as Administrator of the Emergency 
Connectivity Fund Program, the Commission adopts the same requirements 
for USAC as are currently provided in Sec.  54.702(c)-(d) of its rules 
governing USAC's duties as Administrator of the Universal Service 
Support Programs. In so doing, among other things, the Commission 
prohibits USAC from making policy, interpreting unclear statutes or 
rules relied upon to implement and administer the Emergency 
Connectivity Fund Program, or interpreting the intent of Congress.
    98. In its administration of the Program, the Commission also 
directs USAC to comply with, on an ongoing basis, all applicable laws 
and Federal Government guidance on privacy and information security 
standards and requirements, such as the Privacy Act, relevant 
provisions in the Federal Information Security Modernization Act of 
2014, National Institute of Standards and Technology publications, and 
Office of Management and Budget guidance.
    99. Universal Service Fund Program audits have been successful in 
helping participants become compliant with the Commission's rules and 
in protecting the funds from waste, fraud, and abuse. The Commission 
therefore reminds Emergency Connectivity Fund Program participants 
including schools, libraries, consortia, and service providers, that 
similar to the E-Rate and other Universal Service Fund Programs, they 
shall be subject to audits and other investigations to evaluate their 
compliance with the statutory and regulatory requirements for the 
Emergency Connectivity Fund Program. If the Commission determines that 
USAC should administer program

[[Page 29152]]

audits for the Emergency Connectivity Fund Program, the Commission will 
direct USAC to perform such audits pursuant to the Commission and 
USAC's respective roles and responsibilities in the Memorandum of 
Understanding.
    100. The Commission also provides a path for recourse to parties 
aggrieved by decisions issued by USAC. Specifically, the Commission 
adopts the appeals and waiver request rules that govern USAC's 
administration of the Universal Service Support Programs, including the 
E-Rate Program. The Commission finds these existing processes 
sufficient to provide a meaningful review of decisions issued by USAC 
and the Commission regarding the Emergency Connectivity Fund Program. 
However, the Commission makes one modification for the Emergency 
Connectivity Fund Program appeal and waiver rules and provide a 30-day 
timeframe to request the review of an action by USAC, or to request the 
review of a decision by USAC or a waiver of the Commission's rules. The 
Commission makes this change because this is a short-term emergency 
program and to help provide faster timeframes for issuing appeal and 
waiver decisions.

K. Children's Internet Protection Act

    101. The Commission finds that the obligations of the Children's 
Internet Protection Act (CIPA), which apply to schools and libraries 
having computers with internet access that seek E-Rate funding for 
internet access, internet service, or internal connections under 
section 254(h)(1)(b) of the Communications Act also apply to schools 
and libraries making certain purchases through the Emergency 
Connectivity Fund Program. Specifically, the Commission concludes that 
CIPA applies to the use of school or library owned computers, including 
laptop and tablet computers, if the school or library accepts Emergency 
Connectivity Fund or E-Rate support for internet access or internet 
services, or E-Rate support for internal connections. The Commission 
also concludes that CIPA does not apply where schools or libraries have 
purchased advanced telecommunications and information services through 
the Emergency Connectivity Fund Program to be used only in conjunction 
with student-, school staff- or patron-owned computers. As explained 
below, these conclusions reflect the fact that section 7402(a) of the 
American Rescue Plan expressly provides that Emergency Connectivity 
Fund support is to be made available pursuant to section 254(h)(1)(B) 
and (2) of the Communications Act.
    102. Congress enacted CIPA as part of the Consolidated 
Appropriations Act of 2001, amending section 254 of the Communications 
Act. CIPA requires a school or library ``having'' internet-connected 
computers and receiving E-Rate funding for internet access, internet 
service, or internal connections to comply with, and certify its 
compliance with, specific internet safety requirements for ``its'' 
computers, including the adoption and enforcement of an internet Safety 
Policy that includes the operation of a technology protection measure. 
Schools, but not libraries, must also provide education about 
appropriate online behavior including cyberbullying.
    103. Many commenters support the applicability of CIPA requirements 
in the context of the Emergency Connectivity Fund Program, while others 
raised concerns regarding the potential challenges of implementing CIPA 
compliance on services and devices that are outside of the applicant's 
direct control. The Commission rejects the argument made by at least 
two commenters that CIPA does not apply to the Emergency Connectivity 
Fund Program because the American Rescue Plan does not explicitly cite 
to the CIPA provisions in section 254 of the Communications Act. 
Section 7402(a) of the American Rescue Plan requires that the Emergency 
Connectivity Fund is to be made available under section 254(h)(1)(B) 
and (2), and CIPA requirements apply to eligible entities having 
computers with internet access that seek funding for internet access, 
and internet service, and internal connections under the same 
provision, section 254(h)(1)(B). Therefore, as discussed further in 
this section, the Commission concludes that CIPA requirements extend to 
eligible entities having computers with internet access that seek 
support for internet access or internet service through the Emergency 
Connectivity Fund pursuant to section 254(h)(1)(B). Few commenters, 
however, analyzed whether CIPA's applicability might depend on which 
equipment and services a school or library purchases through the 
Emergency Connectivity Fund Program. And the Commission concludes that 
such an analysis is necessary, given the unique text and structure of 
CIPA.
    104. First, the Commission concludes that CIPA applies to the use 
of any computers owned by a school or library, including those 
purchased with Emergency Connectivity Fund support if the school or 
library receives Emergency Connectivity Fund or E-Rate support for 
internet access or internet services, or E-Rate support for internal 
connections. This is true even if the student or library patron does 
not use internet access services provided by the school or library. 
This conclusion follows from the statutory text: CIPA applies to a 
school or library ``having'' computers and requires the entity to 
certify compliance as to ``its'' computers. Both words indicate that 
CIPA is triggered by ownership of a device, not the location where the 
device is used or temporarily possessed. The Commission disagrees with 
the suggestion that CIPA applicability is narrowly limited to school- 
or library-owned computers within a school or library building. While 
the drafters of CIPA may have been primarily focused on computers 
within schools or libraries, that is because of the circumstances at 
the time, and the plain language of the statute is not so limited. It 
reaches the use of devices owned by schools and libraries, regardless 
of whether the device is used off-campus, including use of such devices 
by students in their homes.
    105. Second, the Commission concludes that CIPA does not apply to 
the use of computers owned by a school or library including those 
laptop computers or tablet computers purchased with support from the 
Emergency Connectivity Fund Program, if the purchasing entity does not 
also receive Emergency Connectivity Fund or E-Rate discounted internet 
access or internet services, or E-Rate discounted internal 
connections--or network equipment for internet access, internet 
service, or internal connections. Here too, the Commission's conclusion 
follows from the plain text of the statute. CIPA prohibits a school or 
library from ``receiv[ing] services at discount rates'' unless it 
complies with CIPA. CIPA also makes clear that this prohibition does 
not apply to a school or library that receives discounted services 
``only for purposes other than the provision of internet access, 
internet service, or internal connections.'' The Commission has 
construed these provisions to mean that CIPA ``applies [only] to 
entities receiving internet access, internet service, or internal 
connections'' under section 254(h). Thus, there is no statutory basis 
for requiring CIPA compliance from a school or library that does not 
receive those services through E-Rate or the Emergency Connectivity 
Fund--even if it purchases laptop computers or tablet computers through 
the Emergency Connectivity Fund.
    106. Third and finally, the Commission concludes that CIPA does not 
apply to the use of third-party

[[Page 29153]]

owned devices, even if the school or library receives Emergency 
Connectivity Fund or E-Rate support for internet access or internet 
services, or E-Rate support for internal connections. This 
interpretation flows from the statute. A school or library does not 
``hav[e]'' student-, school staff- or patron-owned devices, nor would 
it make sense for a school or library to certify that those devices are 
``its'' devices for purposes of CIPA compliance. Moreover, when read in 
conjunction with section 254(h)(5) and (6), section 254(l) is meant to 
apply only to a school's or library's computers--and not to the 
delivery of services for a student's, school staff's or library 
patron's personal computer. Schools and libraries are free to decide 
whether to allow the use of third-party devices on their own networks 
or the broadband connections purchased for use by their students, 
school staff, and library patrons and to adopt measures to protect or 
limit the use of those connections by students, school staff or library 
patrons using their own devices to access those connections.
    107. CIPA Certifications. In recognition of the long history of 
CIPA compliance in the E-Rate application process, the Commission finds 
that an Emergency Connectivity Fund applicant need not complete 
additional CIPA compliance certifications if it has already certified 
its CIPA compliance for E-Rate support for the relevant funding year 
(i.e., has certified its compliance in an FCC Form 486 or FCC Form 
479). To the extent an applicant for Emergency Connectivity Fund 
Program support has not already certified its CIPA compliance for E-
Rate applications, these applicants will be required to certify either 
(1) that it is in compliance with CIPA requirements under section 
254(h) and (l); (2) that it is undertaking the actions necessary to 
comply with CIPA requirements; or (3) if applicable, that the 
requirements of CIPA do not apply, because the applicant is not 
receiving discounted internet access, internet services, or internal 
connections. The Commission concludes that its approach will best 
ensure full accountability and compliance on the part of all schools 
and libraries, while minimizing administrative burdens and costs for 
applicants and the Commission. To streamline the application and 
reimbursement process, the CIPA certifications will be included on the 
FCC Form 471 that will be used for the Emergency Connectivity Fund 
Program and will not be on a separate FCC form.

L. Protections Against Waste, Fraud, and Abuse

    108. The Commission takes seriously its obligation to be a careful 
steward of the Emergency Connectivity Fund, and to protect the Program 
from waste, fraud, and abuse. The Commission is committed to ensuring 
the integrity of the Emergency Connectivity Fund Program and will 
pursue instances of waste, fraud, or abuse under its own procedures and 
in cooperation with law enforcement agencies. The specific procedures 
identified below regarding asset inventory requirements, document 
retention requirements, the prohibition on gifts, certifications, 
audits, and treatment of eligible equipment are tools at the 
Commission's disposal to protect the Emergency Connectivity Fund and to 
ensure the limited funding is used for its intended purposes to support 
and enable remote learning for students, school staff, and library 
patrons nationwide.
1. Device and Service Inventory Requirements
    109. The Commission requires Emergency Connectivity Fund Program 
participants to maintain inventories of devices and services purchased 
with Program support. Commenters are very supportive of requiring 
Emergency Connectivity Fund Program participants to maintain device and 
service inventories, which are also required in the E-Rate Program. 
Requiring eligible entities to keep and maintain inventories for 
eligible equipment and services purchased through the Emergency 
Connectivity Fund Program ensures that schools and libraries know where 
the Emergency Connectivity Fund-supported equipment and services are 
located and that they are being used consistent with the same 
requirement in the E-Rate Program. The Commission is sympathetic to 
concerns expressed by some commenters that keeping track of equipment 
in the homes of students and library patrons is more difficult than 
maintaining an inventory list of equipment in a school or library. The 
Commission acknowledges the fact that some loss of equipment as a 
result of students, school staff, or library patrons breaking or losing 
the equipment or moving out of the area and not returning it, and other 
similar scenarios is to be expected and is not per se evidence of 
waste, fraud and abuse by the applicants. However, it is the obligation 
of schools and libraries to keep track of and document the devices and 
other equipment that they distribute, and that includes documenting 
information about missing, lost, or damaged equipment.
    110. For the Emergency Connectivity Fund Program, the asset 
inventory for devices provided to individuals, must include the 
following information: (a) Device type (i.e., laptop, tablet, mobile 
hotspot, modem/router); (b) device make/model; (c) equipment serial 
number; (d) the name of the person to whom the device was provided; and 
(e) the dates the device was loaned out and returned to the school or 
library. The inventory for devices not provided to individual students, 
school staff, or library patrons, but used to provide service to 
multiple eligible users, for example, a Wi-Fi hotspot used to provide 
service on a school bus, must include the following information: (a) 
Device type (i.e., laptop, tablet, mobile hotspot, modem/router); (b) 
device make/model; (c) equipment serial number; (d) the name of the 
school or library employee responsible for that device; and (e) the 
dates the device was in service.
    111. The Commission further requires Emergency Connectivity Fund 
Program participants to maintain a record of services purchased with 
Emergency Connectivity Fund support. This record of services must 
include the following information: (a) Type of service provided (i.e., 
DSL, cable, fiber, fixed wireless, satellite, mobile wireless); (b) 
broadband plan details, including: Upload and download speeds and 
monthly data cap; (c) the name(s) of the person(s) to whom the service 
was provided; and for fixed broadband service; (d) the service address, 
and (e) the installation date of service: And (f) the last date of 
service (as applicable). The inventory for service not provided to an 
individual student, school staff member, or library patron, but used to 
provide service to multiple eligible users must include the following 
information: (a) Type of service provided (i.e., DSL, cable, fiber, 
fixed wireless, satellite, mobile wireless); (b) broadband plan 
details, including: Upload and download speeds and monthly data cap; 
and (c) the name of the school or library employee responsible for the 
service; (d) a description of the intended service area; and for fixed 
broadband service; (e) the service address; (f) the installation date 
of service, and (g) the last date of service (as applicable).
2. Document Retention Requirements
    112. The Commission also adopts records retention rules for the 
Emergency Connectivity Fund Program. Specifically, the Commission 
requires Emergency Connectivity Fund Program

[[Page 29154]]

participants to retain records related to their participation in the 
Program sufficient to demonstrate compliance with all Program rules for 
at least 10 years from the last date of service or delivery of 
equipment. This 10-year document retention requirement is consistent 
with the document retention requirement in the E-Rate Program, and many 
commenters were supportive of conforming the document retention 
requirements of the two programs. Doing so allows E-Rate participants 
to rely on their existing retention polices and mitigates the confusion 
that different retention periods might create. Some commenters 
supported a shorter document retention period, explaining that the 
emergency nature of the Emergency Connectivity Fund Program makes the 
10-year document retention period too long. The Commission finds some 
of the shorter suggested document retention periods of only one or two 
years inadequate to protect the integrity of the Fund--as they would 
not provide sufficient time to uncover and investigate instances of 
waste, fraud, and abuse. Although the Commission has adopted shorter 
document retention periods for both the Emergency Broadband Benefit 
Program and the COVID-19 Telehealth Program, the Commission notes that 
Emergency Connectivity Fund Program support may be available through 
September 30, 2030 and given the size of the fund, $7.17 billion, a 
longer document retention period is reasonable for this Program. On 
balance, the Commission finds that a 10-year period is appropriate for 
the Emergency Connectivity Program, because it allows the Commission 
the ability to protect the integrity of the Emergency Connectivity Fund 
Program and is consistent with the document retention requirements for 
the E-Rate Program. Participants are further required to present this 
information upon request to the Commission or its delegates, including 
USAC, as well as to the Commission's Office of Inspector General.
3. Gift Rule
    113. In balancing the longstanding goal of fair and open 
procurement of eligible equipment and services, with the efforts made 
to date by schools and libraries and service providers to meet remote 
learning needs during the pandemic, the Commission agrees with 
commenters that gift restrictions should apply to the Emergency 
Connectivity Fund Program. As AT&T explains, not applying the gift rule 
``could compromise fair and open procurement.'' The Commission 
recognizes that many schools and libraries may have taken advantage of 
free or discounted connections and devices offered by service providers 
over the course of the pandemic as a result of the waiver of the E-Rate 
gift rule granted by the Bureau last year. That waiver currently 
enables service providers to offer and provide, and schools and 
libraries to solicit and accept improved broadband connections or 
equipment for remote learning through June 30, 2021. Moreover, it is 
impractical to try to impose restrictions on activity that occurred 
before Congress established the Emergency Connectivity Fund.
    114. Therefore, the Commission adopts gift restrictions for the 
Emergency Connectivity Fund Program that take into account that waiver. 
The gift restrictions the Commission adopts for the Program prohibit 
eligible schools and libraries receiving support through the Emergency 
Connectivity Fund Program, including their employees, officers, 
representatives, agents, independent contractors, and individuals who 
are on the governing boards, from soliciting or accepting any gift or 
other thing of value from a service provider participating in or 
seeking to participate in the Emergency Connectivity Fund Program. 
Participating service providers are likewise prohibited from offering 
or providing any gift or other thing of value to eligible entities, 
including their employees, officers, representatives, agents, 
independent contractors, and individuals who are on the governing 
boards.
    115. In light of the extraordinary needs of schools and libraries 
to meet the remote learning needs of students, school staff, and 
library patrons during the pandemic, and the existing partial waiver of 
the gift rule in the E-Rate program, the Commission provides an 
exception in the Emergency Connectivity Fund Program gift rule that 
allows service providers to offer and provide, and applicants to 
solicit and accept, broadband connections, devices, networking 
equipment, or other things of value that are directly related to 
addressing the pandemic-related needs of students, school staff, and 
library patrons through June 30, 2022. The Commission provides this 
limited exception for the Emergency Connectivity Fund Program through 
the end of June 2022 with the hope that by the end of this coming 
school year, the pandemic-related needs of schools and libraries for 
broadband connections, devices and networking equipment will have, for 
the most part, been met. Should that not be the case, affected parties 
will be able to seek a waiver of the gift rules, following the sunset 
of this exception. The Commission finds that this approach protects the 
integrity of the procurement of purchases through the Emergency 
Connectivity Fund Program without unnecessarily burdening applicants or 
hindering beneficial partnerships between participating service 
providers, schools, and libraries that support remote learning efforts 
during these unprecedented times.
4. Certifications
    116. As an additional measure to safeguard the Emergency 
Connectivity Fund from waste, fraud, and abuse, the Commission requires 
participants to provide several certifications as part of the 
application and invoicing processes. The Commission has found, and 
participants largely agree, that the use of certifications are a key 
compliance mechanism to protect the limited funds from waste, fraud, 
and abuse. All certifications must be made subject to the provisions 
against false statements contained in the Communications Act and Title 
18 of the United States Code.
    117. Compliance with Local, State, and Tribal Procurement 
Requirements Certification. To streamline and promote an efficient 
application process without adopting competitive bidding requirements 
for the Emergency Connectivity Fund Program, applicants will be 
required to certify as part of the FCC Form 471 that they have complied 
with all applicable local, state, and Tribal procurement requirements 
for any equipment and services purchased, or that will be purchased, 
with Emergency Connectivity Fund Program support. Schools and libraries 
that are not subject to public procurement requirements must certify 
that that have complied with their own procurement processes and 
requirements, such as those included in a written charter. Complying 
with local, state, and Tribal procurement rules is an important 
safeguard to ensure that costs for eligible equipment and services are 
reasonable and cost-effective. If applicants are unable or unwilling to 
certify that they have complied with local, state, or Tribal 
procurement requirements, they will not receive support from the 
Emergency Connectivity Fund Program. The Commission recognizes this may 
cause hardship for certain schools and libraries, but given the 
importance of protecting the Emergency Connectivity Fund Program, the 
Commission must ensure applicants are compliant with local, state, or 
Tribal procurement requirements to receive commitments

[[Page 29155]]

and reimbursements through the Program.
    118. Duplicate Funding Certification. To avoid duplicative funding, 
protect against waste, fraud, and abuse, and to stretch the limited 
support available through the Emergency Connectivity Fund Program, the 
Commission will not provide support from the Fund for eligible 
equipment and services that have already been reimbursed through other 
Federal pandemic relief programs (e.g., CARES Act, Emergency Broadband 
Benefit Program, or other provisions of the American Rescue Plan); 
state programs specifically targeted to providing funding for eligible 
equipment and services; other external sources of funding or gifts 
specifically targeted to providing funding for eligible equipment and 
services. For example, if a student's household is receiving support 
from the Emergency Broadband Benefit Program for broadband internet 
access connectivity, the student would not be eligible for broadband 
connectivity under the Emergency Connectivity Fund Program. Commenters 
are supportive of adopting this limitation to stretch the limited 
funds.
    119. However, the Commission also agrees with commenters that argue 
schools and libraries should be able to request reimbursement for a 
portion of the costs of eligible equipment and services if they 
received funding from another source for only a portion of the costs of 
that equipment or services. For example, the California Public 
Utilities Commission (CPUC) explains that it established the California 
Teleconnect Fund Distance Learning Discount in March 2020 to provide a 
50% discount on monthly recurring charges for mobile data services 
(hotspots) to qualifying K-12 schools, libraries, and other community-
based organizations. The Commission agrees that the schools and 
libraries that received 50% discounts through this Program should still 
be able to seek reimbursement through the Emergency Connectivity Fund 
Program for the portion of the costs that were not covered by the 
CPUC's program. The Commission therefore makes clear that schools and 
libraries may request and receive reimbursement for the portion of the 
costs of eligible equipment and services that were not covered through 
other sources of funding.
    120. The Commission agrees, to an extent, with commenters that 
argue that if applicants were able to pay for eligible equipment and 
services through a financial gift or donation, that they should be 
allowed to also seek reimbursement through the Emergency Connectivity 
Fund in some situations. If the donor specified that the gift was to be 
used for the type of equipment or services at issue, the applicant 
cannot seek to use the Emergency Connectivity Fund Program as a second 
source of funding for the same equipment or service. But, if the school 
or library simply used general funds it had available to it as the 
result of gifts or donations, it can seek reimbursement of the cost of 
the equipment or services from the Emergency Connectivity Fund Program.
    121. To implement this prohibition on requesting or receiving 
duplicative funding, the Commission will require applicants to certify, 
on the application for funding and on the invoicing form that they are 
not seeking Emergency Connectivity Fund support or reimbursement for 
eligible equipment or services that have been purchased and reimbursed 
with other Federal pandemic-relief funding (e.g., CARES Act, Emergency 
Broadband Benefit Program, Emergency Connectivity Fund Program); 
targeted state funding; other external sources of targeted funding or 
targeted gifts; or eligible for discounts through the schools and 
libraries universal service support mechanism or other universal 
service support mechanisms. The Commission takes this action to ensure 
that the limited Emergency Connectivity Fund Program support will be 
used for its intended purposes and if the eligible equipment and 
services were reimbursed through other Federal funds or other sources 
targeted for those purposes, the applicants should not be seeking 
funding through the Emergency Connectivity Fund Program.
    122. Non-Usage Certification. In order to ensure that the Emergency 
Connectivity Fund Program makes the best use of limited funding, the 
notification sought comment on whether service providers providing 
monthly services reimbursed through the Emergency Connectivity Fund 
should be required to report and validate usage of the supported 
services. The notification also sought comment on whether, if there is 
non-usage during a service month, service providers should be required 
to notify the school or library regarding the non-usage, and to remove 
the cost for any non-used service from the invoice provided to the 
school or library for that service month. The notification further 
sought comment on whether service providers should also be required to 
certify that they have notified the school or library regarding any 
non-usage during a service month and have removed charges from such 
non-usage from the invoices submitted to the school or library for 
payment. There was widespread agreement that such actions to address 
non-usage would be overly burdensome on both the service providers and 
the applicants.
    123. Based on the record, the Commission finds that the better 
course will be to have applicants certify on requests for reimbursement 
(i.e., the invoicing form) that the equipment and services are being 
primarily used for educational purposes by students, school staff, or 
library patrons and both applicants and service providers are not 
willfully or knowingly requesting reimbursement for equipment or 
services that are not being used. Participants should take reasonable 
actions to monitor and track the usage of equipment and services that 
are purchased and reimbursed through the Emergency Connectivity Fund, 
for example, requiring their service providers to provide monthly 
reports or other information on data use. The Commission adopts these 
measures to ensure that the equipment and services purchased through 
the Emergency Connectivity Fund Program are being used for educational 
purposes and to prevent wasteful spending for unused services, and 
determine the certification requirement strikes a fair balance between 
the burdens on applicants and service providers to monitor non-usage 
and the need to protect the Emergency Connectivity Fund Program from 
wasteful non-usage.
    124. Additional Certification Requirements. The Commission also 
requires participants when submitting requests for reimbursement (i.e., 
invoicing forms) to provide several additional certifications. 
Participants will also certify that they are seeking funding only for 
eligible equipment and services. In addition, consistent with the asset 
and service inventories and records retention requirements discussed 
above, participants will be required to certify that they maintain an 
asset inventory, an inventory of services provided, and data regarding 
fixed broadband services. Participants will also be required to certify 
that they will retain all program records for 10 years following the 
last date of service, as well as to their agreement to participate in 
audits and other post-commitment reviews as may be required.
5. Audits
    125. As the Commission has for all the Universal Service Fund 
Programs, the Commission considers audits in the Emergency Connectivity 
Fund Program to be an important tool in ensuring compliance, and 
identifying instances of waste, fraud, and abuse. Every dollar

[[Page 29156]]

lost to waste, fraud, and abuse is funding that does not go to provide 
devices or connectivity to students, school staff, or library patrons. 
Not surprisingly, commenters are largely supportive of establishing 
audit procedures for the Emergency Connectivity Fund Program. To that 
end, the Commission delegates authority to the Office of the Managing 
Director to develop and implement an audit process for participants 
that complies with the requirements and procedures of the Emergency 
Connectivity Fund Program. The Office of the Managing Director may 
obtain the assistance of third parties, including but not limited to 
USAC, in carrying out this effort.
    126. In developing audit requirements, the Office of the Managing 
Director should be mindful of the emergency nature of the pandemic and 
the intended use for eligible equipment and services purchased with 
Emergency Connectivity Fund Program support. Specifically, Emergency 
Connectivity Fund participants shall be subject to audits and other 
investigations to evaluate compliance with the statutory and regulatory 
requirements for the Emergency Connectivity Fund, including what 
equipment and services may be purchased using support from the 
Emergency Connectivity Fund, and how the equipment and services may be 
used. Funding recipients are required to maintain documentation 
sufficient to demonstrate their compliance with program rules for ten 
years after the last date of delivery of services or connected devices 
supported through the Emergency Connectivity Fund Program. Upon 
request, Emergency Connectivity Fund Program participants must submit 
documents sufficient to demonstrate compliance with Program rules. 
Additionally, schools and libraries participating in the Emergency 
Connectivity Fund Program, may be subject to other audit processes 
including audits by the Office of Inspector General, and certain 
schools and libraries participating in the Emergency Connectivity Fund 
Program that meet the thresholds for being audited under the Single 
Audit Act are subject to a single audit that contains the FCC 
compliance supplement for the Emergency Connectivity Fund Program.
    127. The Commission is also mindful of the privacy concerns raised 
regarding providing personally identifiable information to USAC or 
Commission staff about the individual (e.g., student, school staff 
member, or library patron) that is receiving and using the Emergency 
Connectivity Fund-supported equipment and/or services. USAC and 
Commission staff will abide by all applicable Federal and state privacy 
laws. The Commission also directs USAC and Commission staff to take 
into account the importance of protecting the privacy of students, 
school staff and library patrons, to design requests for information 
from schools and libraries that minimize the need to produce 
information that might reveal personally identifiable information, and 
to work with auditors to accept anonymized or deidentified information 
in response to requests for information wherever possible. If 
anonymized or deidentified information regarding the students, school 
staff, and library patrons is not sufficient for auditors' or 
investigative purposes, the auditors or investigators may request that 
the school or library obtain consent of the parents or guardians, for 
students, and the consent of the school staff member or library patron 
to have access to this personally identifiable information or explore 
other legal options for obtaining personally identifiable information. 
In the event consent is not available, the Commission recognizes that 
the auditors may need to use other procedures or take different actions 
to determine if there is any evidence of waste, fraud or abuse in the 
Emergency Connectivity Fund Program.
6. Treatment of Eligible Equipment During and After the COVID-19 
Emergency Period
    128. In order to protect against waste, fraud, and abuse in the 
Emergency Connectivity Fund Program, and consistent with the current E-
Rate rules, the Commission prohibits schools and libraries from 
selling, reselling, or transferring equipment funded through the 
Emergency Connectivity Fund Program in consideration of money for three 
(3) years after its purchase. The Commission concludes that eligible 
equipment purchased with Emergency Connectivity Fund Program support 
that has been in use for at least three years will be considered 
obsolete. Obsolete equipment may be resold or transferred in 
consideration of money or any other thing of value, disposed of, 
donated, or traded. This approach is consistent with section 254(h)(3) 
of the Communications Act, which applies to the E-Rate Program, and the 
existing E-Rate Program rules, which prohibit sale, resale or transfer 
of E-Rate-supported equipment for five years. The Commission adopts 
this shorter three-year time frame for the Emergency Connectivity Fund, 
because the Commission agrees with commenters that devices and other 
equipment loaned to students, school staff, and library patrons and 
installed off-campus will likely have a shorter average life cycle than 
equipment installed and maintained on school or library premises.
    129. The Commission considers but reject suggestions that the 
Commission ``should not prohibit the sale, resale, or transfer of the 
purchased equipment for anything of value despite the current E-Rate 
Program rules so long as any such proceed or value be employed for 
educational or library purposes.'' Congress has authorized the use of 
billions of dollars for purchase of specific types of equipment, and 
the Commission thinks permitting schools and libraries to trade in that 
equipment to fund other programs or services would be inconsistent with 
Congress' intent.
    130. The Commission hopes and expects that the useful life of much 
of the eligible equipment purchased through the Emergency Connectivity 
Fund Program will extend beyond the COVID-19 emergency period, and that 
schools and libraries can continue to use the equipment as the pandemic 
recedes. At the same time, the Commission recognizes that needs may 
change over the next few years. To that end, commenters urge the 
Commission to provide schools and libraries the flexibility to 
determine how such equipment should be treated after the pandemic ends. 
The Commission agrees with commenters that argue that schools and 
libraries are in the best position to determine the best use of their 
equipment. The Commission therefore allows participating schools and 
libraries to use the equipment after the emergency period for such 
purposes as the school or library considers appropriate, provided that 
the equipment be used for educational purposes. The Commission finds 
this approach will provide schools and libraries the flexibility to 
account for the limited lifespan of eligible equipment, while 
simultaneously combating potential waste, fraud, and abuse.

M. Cost-Effectiveness Analysis

    131. The American Rescue Plan requires the Commission to take 
action by May 10, 2021 to promulgate rules for the provision of support 
from the Emergency Connectivity Fund to schools and libraries for 
specified equipment and services. The Commission has no discretion to 
diverge from statutory direction and thus a conventional cost benefit 
analysis, which would seek to determine whether the costs of the

[[Page 29157]]

required actions exceed their benefits, is not directly called for. 
Instead, the Commission considers whether the actions the Commission 
takes in this document are the most cost-effective means to implement 
this legislation, recognizing that these actions are designed to 
mitigate a crisis and require swift action.
    132. In that regard, because eligible schools and libraries are 
already very familiar with the E-Rate Program, by leveraging, to the 
extent feasible, existing E-Rate rules and processes to provide support 
from the Emergency Connectivity Fund Program, the Commission is 
adopting the most cost-effective means currently at its disposal for 
timely implementation of the legislative direction. Those rules have 
been developed through a series of careful, and iterative rulemaking 
proceedings, and are well understood. The alternative of devising new 
approaches would lengthen the process of implementation and, given that 
they would need to be developed quickly and without the degree of 
scrutiny usually applied, they would be prone to unintended 
consequences. Further, a new process would require the benefiting 
schools and libraries to deal with the unfamiliar, increasing the time 
and effort they would necessarily expend exactly when both those things 
come at a premium, and increasing the likelihood of error. The 
Commission also finds that limiting funding to schools which certify 
that they are using support from the Emergency Connectivity Fund 
Program to satisfy otherwise unmet needs for connectivity or for 
devices of students or staff make its actions more cost-effective than 
other alternatives.

N. Enforcement

    133. The notification sought comment on imposing administrative 
forfeitures and other penalties on Emergency Connectivity Fund Program 
participants found to be in violation of the Program rules and 
requirements. The record supports the application of the Commission's 
existing enforcement powers, including imposing administrative 
forfeitures and other penalties on participating providers that violate 
the Program rules and requirements, to protect the integrity of the 
Emergency Connectivity Fund Program, thus the Commission concludes it 
is appropriate to use the Commission's existing, statutorily permitted 
enforcement powers for the Program. The Commission also finds it 
appropriate to apply the Commission's suspension and debarment rules 
currently applicable to the Universal Service Fund Programs to the 
Emergency Connectivity Fund Program participants. The Commission will 
withhold Emergency Connectivity Fund Program support from participants 
found to be in violation of the Program rules, if appropriate, and will 
also seek to recoup improperly disbursed funds, in addition to 
appropriate enforcement penalties. The Commission thinks T-Mobile's 
concern that an ``unduly strict approach to enforcement'' could 
discourage participation in the Program and undermine the goals of the 
Program is misplaced. The rules the Commission adopts in this document 
are straightforward and consistent with the goals of the statute, and 
the Commission does not think a safe harbor to protect against good 
faith errors is warranted. Instead, the Commission finds that these 
enforcement mechanisms sufficiently balance the need for widespread 
participation in the Emergency Connectivity Fund Program with the 
importance of maintaining the Program's integrity and protecting the 
Program from waste, fraud, and abuse.

O. Delegations to the Bureau and the Office of Managing Director

    134. The Commission delegates authority to the Bureau, in 
consultation with the Office of the Managing Director, to implement the 
decisions reached here. Those implementing decisions may include 
providing additional detail and specificity to the requirements of the 
Program to conform with the decisions in this Report and Order, thus 
ensuring the efficient functioning of this Program.
    135. In addition, the Commission delegates financial oversight of 
this program to the Commission's Managing Director and direct the 
Office of the Managing Director to work in coordination with the Bureau 
to ensure that all financial aspects of the program have adequate 
internal controls. These duties fall within the Office of the Managing 
Director's current delegated authority to ensure that the Commission 
operates in accordance with Federal financial statutes and guidance. 
Such financial oversight must be consistent with the rules adopted in 
this Report and Order. The Office of the Managing Director performs 
this role with respect to USAC's administration of the Commission's 
Universal Service Programs, the COVID-19 Telehealth Program, and the 
Emergency Broadband Benefit Program, and the Commission anticipates 
that the Office of the Managing Director will leverage existing 
policies and procedures, to the extent practicable and consistent with 
the American Rescue Plan, to ensure the efficient and effective 
management of the Emergency Connectivity Fund Program. Finally, the 
Commission provides that the Office of the Managing Director is 
required to consult with the Bureau on any policy matters affecting the 
Emergency Connectivity Fund Program, consistent with Sec.  0.91(a) of 
the Commission's rules. The Office of the Managing Director, in 
coordination with the Bureau, may issue additional directions to USAC 
and Emergency Connectivity Fund Program participants in furtherance of 
the decisions reached here.
    136. The Commission directs the Bureau, as well as the Commission's 
Consumer and Governmental Affairs Bureau (CGB), to conduct outreach to 
educate eligible schools and libraries about the Emergency Connectivity 
Fund Program, and to coordinate, as necessary, with Congressional 
offices, other Federal agencies, and state, local and Tribal 
governments. The Commission also directs USAC to develop and implement 
a communications strategy, under the oversight of the Bureau, in 
coordination with CGB, to provide training and information necessary 
for schools and libraries to successfully participate in the Emergency 
Connectivity Fund Program and provide support to students, school 
staff, and library patrons who lack adequate access to connected 
devices and broadband connections necessary for remote learning. At the 
suggestion of several stakeholder groups, the Commission also directs 
USAC to engage with external users for the testing of any new systems 
for the Emergency Connectivity Fund Program. Outreach, education, and 
engagement with eligible schools and libraries will be an important 
tool in ensuring the Emergency Connectivity Fund Program meets its 
goals of providing connected devices and broadband connections to 
students, school staff, and library patrons that otherwise would lack 
sufficient access and be unable to engage in remote learning and 
virtual library services.
    137. The Commission recognizes that, once implementation of the 
Emergency Connectivity Fund Program begins, the Bureau or USAC may 
encounter unforeseen issues or problems with the administration of the 
Program that will need to be resolved. To promote maximum effectiveness 
and smooth administration of the Emergency Connectivity Fund Program, 
the Commission delegates this authority to Bureau staff to address and 
resolve such issues related to the administration of the Emergency 
Connectivity Fund Program provided that doing so is

[[Page 29158]]

consistent with the decisions the Commission reaches here in this 
document.

III. Procedural Matters

    138. Administrative Procedure Act Exception. The Commission finds 
good cause exists for making the rules the Commission adopts in this 
document effective May 28, 2021. The Administrative Procedure Act (APA) 
provides that with a showing of ``good cause,'' an agency is permitted 
to make rules effective before 30 days after publication in the Federal 
Register. ``In determining whether good cause exists, an agency should 
`balance the necessity for immediate implementation against principles 
of fundamental fairness which require that all affected persons be 
afforded a reasonable amount of time to prepare for the effective date 
of its ruling.' '' As a general matter, the Commission believes that 
the APA requirements are an essential component of its rulemaking 
process. In this case, however, because of the unprecedented nature of 
this pandemic and the need for immediate action, the Commission finds 
there is good cause to make the Program rules effective May 28, 2021. 
Waiting an additional 30 days to make this relief available ``would 
undermine the public interest by delaying'' Congress' intent to quickly 
provide resources to eligible schools and libraries to provide the 
greatly needed connectivity and connected devices to enable students, 
school staff, and library patrons to fully engage in remote learning 
during the COVID-19 emergency period.
    139. Regulatory Flexibility Act. The Regulatory Flexibility Act of 
1980, as amended (RFA), requires that an agency prepare a final 
regulatory flexibility analysis ``whenever an agency promulgates a 
final rule under [5 U.S.C. 553], after being required by that section 
or any other law to publish a general notice of proposed rulemaking.'' 
The Commission finds good cause that the notice and public procedure on 
the rule adopted herein are impracticable, unnecessary, or contrary to 
the public interest, and thus no final regulatory flexibility analysis 
is required.
    140. Congressional Review Act. The Commission has determined, and 
the Administrator of the Office of Information and Regulatory Affairs, 
Office of Management and Budget (OMB), concurs, that the regulations 
implementing the Emergency Connectivity Fund Program are a ``major 
rule'' under the Congressional Review Act, 5 U.S.C. 804(2). The 
Commission finds for good cause that notice and public procedure on the 
rules adopted herein are impracticable, unnecessary, or contrary to the 
public interest, and therefore this Report and Order will become 
effective upon publication in the Federal Register pursuant to 5 U.S.C. 
808(2). The Commission will send a copy of this Report and Order to 
Congress and the Government Accountability Office pursuant to 5 U.S.C. 
801(a)(1)(A).
    141. Paperwork Reduction Act. This document contains new or revised 
information collection requirements subject to the Paperwork Reduction 
Act of 1995 (PRA), 44 U.S.C. 3501-3521. It was submitted to the Office 
of Management and Budget (OMB) for review and emergency processing 
pursuant to section 3507(j) of the PRA, 44 U.S.C. 3507(j). On May 20, 
2021, OMB has approved, for a period of six months, the information 
collection requirements contained in 47 CFR 54.1710(a)-(b), 54.1711(a)-
(b), 54.1714, and 54.1715. Under 5 CFR part 1320, an agency may not 
conduct or sponsor a collection of information unless it displays a 
current, valid OMB Control Number. No person shall be subject to any 
penalty for failing to comply with a collection of information subject 
to the Paperwork Reduction Act that does not display a current, valid 
OMB Control Number. The OMB Control Number is 3060-1286. The forgoing 
notice is required by the Paperwork Reduction of 1995, Public Law 104-
13, October 1, 1995, and 44 U.S.C. 3507. The March 22, 2021 
notification sought specific comment on how the Commission may reduce 
the information collection burden on small business concerns with fewer 
than 25 employees pursuant to 44 U.S.C. 3506(c)(4).
    142. Late-Filed Comments. The Commission notes there were several 
comments filed in this proceeding after the April 5, 2021 comment 
deadline. In the interest of having as complete and accurate record as 
possible, and because the Commission would be free to consider the 
substance of those filings as part of the record in any event, the 
Commission will accept the late-filed comments and waive the 
requirements of 47 CFR 1.46(b), and have considered them in this Report 
and Order. This does not apply to late-filed comments that are 
prohibited under the Commission's ex parte rules as modified in this 
proceeding by the Wireline Competition Bureau in a Public Notice dated 
April 30, 2021.

IV. Ordering Clauses

    143. Accordingly, it is ordered that, pursuant to the authority 
contained in section 7402, Title VII of the American Rescue Plan Act, 
2021, Public Law 117-2, 135 Stat. 4, this Report and Order is adopted 
and shall become effective May 28, 2021.
    144. It is further ordered that, pursuant to the authority 
contained in section 808(2) of the Congressional Review Act, 5 U.S.C. 
808(2), and 5 U.S.C. 553(d), this Report and Order shall become 
effective May 28, 2021.
    145. It is further ordered, that pursuant to the authority 
contained in section 7402, Title VII of the American Rescue Plan Act, 
2021, Public Law 117-2, 135 Stat. 4, part 54 of the Commission's rules, 
47 CFR part 54, is amended as set forth below, and such rule amendments 
shall be effective May 28, 2021.
    146. It is further ordered that the Commission shall send a copy of 
this Report and Order to the Congress and the Government Accountability 
Office pursuant to the Congressional Review Act, see 5 U.S.C. 
801(a)(1)(A).

List of Subjects in 47 CFR Part 54

    Communications common carriers, Internet, Libraries, Reporting and 
recordkeeping requirements, Schools, Telecommunications.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Final Rules

    For the reasons set forth above, part 54 of title 47 of the Code of 
Federal Regulations is amended as follows:

PART 54--UNIVERSAL SERVICE

0
1. The authority for part 54 continues to read as follows:

    Authority:  47 U.S.C. 151, 154(i), 155, 201, 205, 214, 219, 220, 
229, 254, 303(r), 403, 1004, 1302, and 1601-1609, unless otherwise 
noted.


0
2. Add subpart Q to read as follows:

Subpart Q--Emergency Connectivity Fund

Sec.
54.1700 Terms and definitions.
54.1701 Eligible recipients.
54.1702 Emergency Connectivity Fund eligible equipment and services.
54.1703 Emergency Connectivity Fund competitive bidding 
requirements.
54.1704 Emergency Connectivity Fund gift restrictions.
54.1705 Emergency Connectivity Fund eligible uses.
54.1706 Emergency Connectivity Fund service locations.
54.1707 Emergency Connectivity Fund reasonable support amounts.
54.1708 Emergency Connectivity Fund cap and requests.
54.1709 Availability period of the Emergency Connectivity Fund.

[[Page 29159]]

54.1710 Emergency Connectivity Fund requests for funding.
54.1711 Emergency Connectivity Fund requests for reimbursement.
54.1712 Duplicate support.
54.1713 Treatment, resale, and transfer of equipment.
54.1714 Audits, inspections, and investigations.
54.1715 Records retention.
54.1716 Children's internet Protection Act certifications.
54.1717 Administrator of the Emergency Connectivity Fund.
54.1718 Appeal and waiver requests.


Sec.  54.1700  Terms and definitions.

    (a) Advanced telecommunications and information services. 
``Advanced telecommunications and information services'' are services, 
as such term is used in section 254(h) of the Communications Act, 47 
U.S.C. 254(h).
    (b) Billed entity. A ``billed entity'' is the entity that remits 
payment to service providers for equipment and services rendered to 
eligible schools and libraries.
    (c) Connected devices. ``Connected devices'' are laptop computers 
or tablet computers that are capable of connecting to advanced 
telecommunications and information services. Connected devices do not 
include desktop computers or smartphones.
    (d) Consortium. A ``consortium'' is any local, statewide, regional, 
or interstate cooperative association of schools and/or libraries 
eligible for Emergency Connectivity Fund support that seeks funding for 
eligible services on behalf of some or all of its members. A consortium 
may also include health care providers eligible under subpart G of this 
part, and public sector (governmental) entities, including, but not 
limited to, state colleges and state universities, state educational 
broadcasters, counties, and municipalities, although such entities are 
not eligible for support.
    (e) COVID-19 emergency period. The ``COVID-19 emergency period'' 
has the meaning given the term in title VII, section 7402(d)(5), Public 
Law 117-2 (the American Rescue Plan Act).
    (f) Educational purposes. For purposes of this subpart, activities 
that are integral, immediate, and proximate to the education of 
students in the case of a school, or integral, immediate, and proximate 
to the provision of library services to library patrons in the case of 
a library, qualify as ``educational purposes.''
    (g) Elementary school. An ``elementary school'' means an elementary 
school as defined in 20 U.S.C. 7801, a non-profit institutional day or 
residential school, including a public elementary charter school, that 
provides elementary education, as determined under state law.
    (h) Library. A ``library'' includes:
    (1) A public library;
    (2) A public elementary school or secondary school library;
    (3) A Tribal library;
    (4) An academic library;
    (5) A research library, which for the purpose of this section means 
a library that:
    (i) Makes publicly available library services and materials 
suitable for scholarly research and not otherwise available to the 
public; and
    (ii) Is not an integral part of an institution of higher education; 
and
    (6) A private library, but only if the state in which such private 
library is located determines that the library should be considered a 
library for the purposes of this paragraph (h).
    (i) Library consortium. A ``library consortium'' is any local, 
statewide, regional, or interstate cooperative association of libraries 
that provides for the systematic and effective coordination of the 
resources of schools, public, academic, and special libraries and 
information centers, for improving services to the clientele of such 
libraries. For the purposes of this subpart, references to library will 
also refer to library consortium.
    (j) National school lunch program. The ``national school lunch 
program'' is a program administered by the U.S. Department of 
Agriculture and state agencies that provides free or reduced-price 
lunches to economically-disadvantaged children. A child whose family 
income is between 130 percent and 185 percent of applicable family size 
income levels contained in the nonfarm poverty guidelines prescribed by 
the Office of Management and Budget is eligible for a reduced-price 
lunch. A child whose family income is 130 percent or less of applicable 
family size income levels contained in the nonfarm income poverty 
guidelines prescribed by the Office of Management and Budget is 
eligible for a free lunch.
    (k) Secondary school. A ``secondary school'' means a secondary 
school as defined in 20 U.S.C. 7801, a non-profit institutional day or 
residential school, including a public secondary charter school, that 
provides secondary education, as determined under state law except that 
the term does not include any education beyond grade 12.
    (l) Wi-Fi. ``Wi-Fi'' is a wireless networking protocol based on 
Institute of Electrical and Electronics Engineers standard 802.11.
    (m) Wi-Fi hotspot. A ``Wi-Fi hotspot'' is a device that is capable 
of receiving advanced telecommunications and information services, and 
sharing such services with another connected device through the use of 
Wi-Fi.


Sec.  54.1701  Eligible recipients.

    (a) Schools. (1) Only schools meeting the statutory definition of 
``elementary school'' or ``secondary school'' as defined in Sec.  
54.1700, and not excluded under paragraph (a)(2) or (3) of this section 
shall be eligible for support under this subpart.
    (2) Schools operating as for-profit businesses shall not be 
eligible for support under this subpart.
    (3) Schools with endowments exceeding $50,000,000 shall not be 
eligible for support under this subpart.
    (b) Libraries. (1) Only libraries eligible for assistance from a 
state library administrative agency under the Library Services and 
Technology Act and not excluded under paragraph (b)(2) or (3) of this 
section shall be eligible for support under this subpart.
    (2) A library's eligibility for Emergency Connectivity Fund support 
shall depend on its funding as an independent entity. Only libraries 
whose budgets are completely separate from any schools (including, but 
not limited to, elementary and secondary schools, colleges, and 
universities) shall be eligible for support as libraries under this 
subpart.
    (3) Libraries operating as for-profit businesses shall not be 
eligible for support under this subpart.
    (c) Consortia. For consortia, reimbursement through the Emergency 
Connectivity Fund shall apply only to the portion of eligible equipment 
and services purchased by eligible schools and libraries and used by 
students, school staff, or library patrons as provided for by this 
subpart.


Sec.  54.1702  Emergency Connectivity Fund eligible equipment and 
services.

    (a) Eligible equipment. For the purposes of this subpart, the 
following shall be considered equipment eligible for Emergency 
Connectivity Fund support:
    (1) Wi-Fi hotspots;
    (2) Modems;
    (3) Routers;
    (4) Devices that combine a modem and a router; and
    (5) Connected devices.
    (b) Eligible services. (1) For purposes of this subpart, except as 
provided in paragraph (b)(2) of this section, services eligible for 
Emergency Connectivity Fund support shall be commercially-available 
fixed or mobile broadband

[[Page 29160]]

internet access services, including those available for purchase by 
schools and libraries through bulk purchasing arrangements.
    (2) For eligible entities unable to provide students, school staff, 
or library patrons commercially-available fixed or wireless broadband 
internet access services, services eligible for Emergency Connectivity 
Fund support shall include the reasonable costs of construction of new 
networks, including self-provisioned networks included in the Emergency 
Connectivity Fund eligible services list; and/or the reasonable costs 
of customer premises equipment to receive datacasting services.


Sec.  54.1703  Emergency Connectivity Fund competitive bidding 
requirements.

    A school, library, or consortium seeking to participate in the 
Emergency Connectivity Fund must comply with all applicable state, 
local, or Tribal procurement requirements for all equipment and 
services supported by the Emergency Connectivity Fund.


Sec.  54.1704  Emergency Connectivity Fund gift restrictions.

    (a) Gift restrictions. (1) Subject to paragraphs (a)(3) and (4) of 
this section, an eligible school, library, or consortium that includes 
an eligible school or library may not directly or indirectly solicit or 
accept any gift, gratuity, favor, entertainment, loan, or any other 
thing of value from a service provider participating in or seeking to 
participate in the Emergency Connectivity Fund Program. No such service 
provider shall offer or provide any such gift, gratuity, favor, 
entertainment, loan, or other thing of value except as otherwise 
provided in this section. Modest refreshments not offered as part of a 
meal, items with little intrinsic value intended solely for 
presentation, and items worth $20 or less, including meals, may be 
offered or provided, and accepted by any individuals or entities 
subject to this subpart, if the value of these items received by any 
individual does not exceed $50 from any one service provider per 
funding year. The $50 amount for any service provider shall be 
calculated as the aggregate value of all gifts provided during a 
funding year by the individuals specified in paragraph (a)(2)(ii) of 
this section.
    (2) For purposes of this paragraph (a):
    (i) The terms ``school, library, or consortium'' include all 
individuals who are on the governing boards of such entities (such as 
members of a school committee), and all employees, officers, 
representatives, agents, consultants or independent contractors of such 
entities involved on behalf of such school, library, or consortium with 
the Emergency Connectivity Fund Program, including individuals who 
prepare, approve, sign or submit Emergency Connectivity Fund Program 
applications, or other forms related to the Emergency Connectivity Fund 
Program, or who prepare bids, communicate, or work with Emergency 
Connectivity Fund Program service providers, Emergency Connectivity 
Fund Program consultants, or with the Administrator, as well as any 
staff of such entities responsible for monitoring compliance with the 
Emergency Connectivity Fund Program; and
    (ii) The term ``service provider'' includes all individuals who are 
on the governing boards of such an entity (such as members of the board 
of directors), and all employees, officers, representatives, agents, or 
independent contractors of such entities.
    (3) The restrictions set forth in this paragraph (a) shall not be 
applicable to the provision of any gift, gratuity, favor, 
entertainment, loan, or any other thing of value, to the extent given 
to a family member or a friend working for an eligible school, library, 
or consortium that includes an eligible school or library, provided 
that such transactions:
    (i) Are motivated solely by a personal relationship;
    (ii) Are not rooted in any service provider business activities or 
any other business relationship with any such eligible school, library, 
or consortium; and
    (iii) Are provided using only the donor's personal funds that will 
not be reimbursed through any employment or business relationship.
    (4) Any service provider may make charitable donations to an 
eligible school, library, or consortium that includes an eligible 
school or library in the support of its programs as long as such 
contributions are not directly or indirectly related to Emergency 
Connectivity Fund procurement activities or decisions and are not given 
by service providers to circumvent Emergency Connectivity Fund Program 
rules in this subpart.
    (b) COVID-19 pandemic exception. Any service provider may offer and 
provide, and any applicant may solicit and accept, broadband 
connections, devices, networking equipment, or other things of value 
directly related to addressing remote learning needs of students, 
school staff, and library patrons due to the COVID-19 pandemic through 
June 30, 2022.


Sec.  54.1705  Emergency Connectivity Fund eligible uses.

    Eligible equipment and services purchased with Emergency 
Connectivity Fund support must be used primarily for educational 
purposes, as defined in Sec.  54.1700.


Sec.  54.1706  Emergency Connectivity Fund service locations.

    (a)(1) Eligible schools and libraries can request and receive 
support for the purchase of eligible equipment and services for use by:
    (i) In the case of a school, students and school staff at locations 
other than the school; and
    (ii) In the case of a library, patrons of the library at locations 
other than the library.
    (2) Service locations may include, but are not limited to, homes, 
community centers, churches, school buses, bookmobiles, and any other 
off-campus locations where students, school staff, and library patrons 
are engaged in remote learning activities.
    (b) Eligible schools and libraries cannot request and receive 
support from the Emergency Connectivity Fund for the purchase of 
eligible equipment and services for use solely at the school or library 
during the COVID-19 emergency period. However, some use of eligible 
equipment, as defined in Sec.  54.1700, and eligible mobile services, 
purchased for off-campus may be used at the school or library is 
permitted.
    (c) Emergency Connectivity Fund support for eligible equipment and 
services is limited to no more than one fixed broadband internet access 
connection per location, and one connected device and one Wi-Fi hotspot 
device per student, school staff member, or library patron. For 
purposes of the per-location limitation imposed on fixed broadband 
internet access services in this paragraph (c), each unit in a multi-
tenant environment is a separate location for purposes of this 
paragraph (c).


Sec.  54.1707  Emergency Connectivity Fund reasonable support amounts.

    Except as provided elsewhere in this subpart, in providing support 
from the Emergency Connectivity Fund, the Commission shall reimburse 
100% of the costs associated with the eligible equipment and/or 
services, except that any reimbursement of for the costs associated 
with any eligible equipment or service may not exceed a reasonable 
support amount as provided in paragraphs (a) and (b) of this section.
    (a) Support amounts are limited up to $400 for connected devices 
and up to $250 for Wi-Fi hotspots.

[[Page 29161]]

    (b) The Wireline Competition Bureau is delegated authority to 
provide guidance to the Administrator to assess the reasonableness of 
requests for other eligible equipment or services, including those 
identified by the Administrator as containing costs that are 
inconsistent with other requests.


Sec.  54.1708  Emergency Connectivity Fund cap and requests.

    (a) Cap. (1) The Emergency Connectivity Fund shall have a cap of 
$7,171,000,000.
    (2) $1,000,000 to remain available until September 30, 2030, for 
the Inspector General of the Commission to conduct oversight of support 
provided through the Emergency Connectivity Fund.
    (3) Not more than 2% of the cap, or approximately $143,420,000, 
shall be used by the Commission and the Administrator for 
administration of the Emergency Connectivity Fund.
    (b) Requests. The Administrator shall implement an initial filing 
window, covering funding for purchases made between July 1, 2021 and 
June 30, 2022 for eligible equipment and services provided to students, 
school staff, and library patrons who would otherwise lack connected 
devices and/or broadband internet access services sufficient to engage 
in remote learning. All schools and libraries filing an application 
within that the initial filing period will have their applications 
treated as if they were simultaneously received. The initial filing 
period shall conclude after 45 days. If demand does not exceed 
available funds for the first filing window, the Wireline Competition 
Bureau will direct the Administrator to open a second application 
window for schools and libraries to seek funding for eligible equipment 
and services schools and libraries previously purchased to address the 
needs of students, school staff, and library patrons who would 
otherwise have lacked access to the equipment or services sufficient to 
engage in these activities during the COVID-19 pandemic. During this 
second application window, applicants will be able to submit requests 
for funding for purchases made from March 1, 2020 to June 30, 2021. 
However, in consideration of the importance of providing support for 
unconnected students, in the event that demand for prospective support 
in the first window appears to be far short of meeting current needs, 
the Commission may consider opening a second prospective window before 
opening an application window to fund previously purchased eligible 
equipment and services. If demand does not exceed available funds after 
the close of the second filing window, the Wireline Competition Bureau 
may direct the Administrator to open additional filing windows until 
the funds are exhausted or the emergency period ends, whichever is 
earlier.
    (c) Rules of distribution. (1) When the filing window(s) described 
in paragraph (b) of this section closes, the Administrator shall 
calculate the total demand for support submitted by applicants during 
the filing window. If total demand exceeds the total support available, 
the Administrator shall allocate funds to these requests for support, 
beginning with the most economically disadvantaged schools and 
libraries, as determined by the schools and libraries category one 
discount matrix in Sec.  54.505(c) adjusted to provide a five percent 
increase for rural schools and libraries, as shown in the following 
matrix.

                       Table 1 to Paragraph (c)(1)
------------------------------------------------------------------------
                                         Emergency connectivity fund
                                            prioritization matrix
    % of students eligible for     -------------------------------------
   National School Lunch Program               Discount level
                                   -------------------------------------
                                          Urban              Rural
------------------------------------------------------------------------
< 1...............................                 20                 30
1-19..............................                 40                 55
20-34.............................                 50                 65
35-49.............................                 60                 75
50-74.............................                 80                 85
75-100............................                 90                 95
------------------------------------------------------------------------

    (2) Schools and libraries eligible for a 95 percent discount shall 
receive first priority for the funds. The Administrator shall next 
allocate funds toward the requests submitted by schools and libraries 
eligible for an 90 percent discount, then for a 85 percent discount, 
and shall continue committing funds in the same manner to the 
applicants at each descending discount level until there are no funds 
remaining. If the remaining funds are not sufficient to support all of 
the funding requests within a particular discount level, the 
Administrator shall allocate funds at that discount level using the 
percentage of students eligible for the National School Lunch Program.


Sec.  54.1709  Availability period of the Emergency Connectivity Fund.

    The Emergency Connectivity Fund was established by Congress in the 
United States Treasury through an appropriation of $7.171 billion, to 
remain available until September 30, 2030.


Sec.  54.1710  Emergency Connectivity Fund requests for funding.

    (a) Filing of the FCC Form 471. An eligible school, library, or 
consortium that includes an eligible school or library seeking to 
receive Emergency Connectivity Fund support for eligible equipment and 
services under this subpart shall submit a completed FCC Form 471 to 
the Administrator.
    (1) The FCC Form 471 shall be signed by the person authorized to 
order eligible services for the eligible school, library, or consortium 
and shall include that person's certification under penalty of perjury 
that:
    (i) ``I am authorized to submit this application on behalf of the 
above-named applicant and that based on information known to me or 
provided to me by employees responsible for the data being submitted, I 
hereby certify that the data set forth in this application has been 
examined and is true, accurate and complete. I acknowledge that any 
false statement on this application or on other documents submitted by 
this applicant can be punished by fine or forfeiture under the 
Communications Act (47 U.S.C. 502, 503(b)), or fine or imprisonment 
under Title 18 of the United States Code (18 U.S.C. 1001), or

[[Page 29162]]

can lead to liability under the False Claims Act (31 U.S.C. 3729-
3733).''
    (ii) ``In addition to the foregoing, this applicant is in 
compliance with the rules and orders governing the Emergency 
Connectivity Fund Program, and I acknowledge that failure to be in 
compliance and remain in compliance with those rules and orders may 
result in the denial of funding, cancellation of funding commitments, 
and/or recoupment of past disbursements. I acknowledge that failure to 
comply with the rules and orders governing the Emergency Connectivity 
Fund Program could result in civil or criminal prosecution by law 
enforcement authorities.''
    (iii) ``By signing this application, I certify that the information 
contained in this application is true, complete, and accurate, and the 
projected expenditures, disbursements and cash receipts are for the 
purposes and objectives set forth in the terms and conditions of the 
Federal award. I am aware that any false, fictitious, or fraudulent 
information, or the omission of any material fact, may subject me to 
criminal, civil or administrative penalties for fraud, false 
statements, false claims or otherwise. (U.S. Code Title 18, sections 
1001, 286-287 and 1341 and Title 31, sections 3729-3730 and 3801-
3812).''
    (iv) The school meets the statutory definition of ``elementary 
school'' or ``secondary school'' as defined in Sec.  54.1700, does not 
operate as for-profit businesses, and does not have endowments 
exceeding $50 million.
    (v) The library or library consortia eligible for assistance from a 
State library administrative agency under the Library Services and 
Technology Act of 1996, does not operate as for-profit businesses, and 
their budgets are completely separate from any school (including, but 
not limited to, elementary and secondary schools, colleges, and 
universities).
    (vi) The school, library, or consortia listed on the FCC Form 471 
application has complied with all applicable state, local, or Tribal 
local laws regarding procurement of services for which support is being 
sought.
    (vii) The school or school consortium listed on the FCC Form 471 
application is only seeking support for eligible equipment and/or 
services provided to students and school staff who would otherwise lack 
connected devices and/or broadband services sufficient to engage in 
remote learning.
    (viii) The library or library consortium listed on the FCC Form 471 
application is only seeking support for eligible equipment and/or 
services provided to library patrons who have signed and returned a 
statement that the library patron would otherwise lack access to 
equipment or services sufficient to meet the patron's educational needs 
if not for the use of the equipment or service being provided by the 
library.
    (ix) The school, library, or consortia is not seeking Emergency 
Connectivity Fund support or reimbursement for eligible equipment or 
services that have been purchased and reimbursed in full with other 
Federal pandemic-relief funding, targeted state funding, other external 
sources of targeted funding or targeted gifts, or eligible for 
discounts from the schools and libraries universal service support 
mechanism or other universal service support mechanism.
    (x) The applicant or the relevant student, school staff member, or 
library patron has received the equipment and services for which 
funding is sought.
    (xi) The equipment and services the school, library, or consortium 
purchases using Emergency Connectivity Fund support will be used 
primarily for educational purposes and will not be sold, resold, or 
transferred in consideration for money or any other thing of value, 
except as allowed by Sec.  54.1713.
    (xii) The school, library, or consortium will create and maintain 
an equipment and service inventory as required by Sec.  54.1715.
    (xiii) The school, library, or consortium has complied with all 
program rules and acknowledge that failure to do so may result in 
denial of discount funding and/or recovery of funding.
    (xiv) The applicant recognizes that it may be audited pursuant to 
its application, that it will retain for ten years any and all records 
related to its application, and that, if audited, it shall produce 
shall records at the request of any representative (including any 
auditor) appointed by a state education department, the Administrator, 
the Commission and its Office of Inspector General, or any local, 
state, or Federal agency with jurisdiction over the entity.
    (xv) No kickbacks, as defined in 41 U.S.C. 8701 and/or 42 U.S.C. 
1320a-7b, were paid or received by the applicant to anyone in 
connection with the Emergency Connectivity Fund.
    (2) Applicants seeking support for new network construction or end-
user equipment for datacasting services through the Emergency 
Connectivity Fund must also certify under penalty of perjury that they 
sought service from existing service providers in the relevant area and 
that such service providers were unable or unwilling to provide 
broadband internet access services sufficient to meet the remote 
learning needs of their students, school staff, or library patrons.
    (3) All information submitted as part of an FCC Form 471 
application shall be treated as public and non-confidential by the 
Administrator.
    (b) Service substitution. (1) A request by an applicant to 
substitute equipment or service for one identified on its FCC Form 471 
must be in writing.
    (2) The Administrator shall approve such written request where:
    (i) The equipment or service has the same functionality; and
    (ii) This substitution does not violate any contract provisions or 
state, local, or Tribal procurement law.
    (3) In the event that an equipment or service substitution results 
in a change in the amount of support, support shall be based on the 
lower of either the price for the equipment or service for which 
support was originally requested or the price of the new, substituted 
equipment or service. Reimbursement for substitutions shall only be 
provided after the Administrator has approved a written request for 
substitution.
    (c) Mixed eligibility equipment and services. If equipment or 
service includes both ineligible and eligible components, the applicant 
must remove the cost of the ineligible components of the equipment or 
service from the request for funding submitted to the Administrator.


Sec.  54.1711  Emergency Connectivity Fund requests for reimbursement.

    (a) Submission of request for reimbursement (FCC Form 472 or FCC 
Form 474). Emergency Connectivity Fund Program reimbursement for the 
costs associated with eligible equipment and/or services shall be 
provided directly to an eligible school, library, consortium that 
includes an eligible school or library, or service provider seeking 
reimbursement from the Emergency Connectivity Fund Program upon 
submission and approval of a completed FCC Form 472 (Billed Entity 
Applicant Reimbursement Form) or a completed FCC Form 474 (Service 
Provider Invoice) to the Administrator.
    (1) The FCC Form 472 shall be signed by the person authorized to 
submit requests for reimbursement for the eligible school, library, or 
consortium and shall include that person's certification under penalty 
of perjury that:
    (i) ``I am authorized to submit this request for reimbursement on 
behalf of the above-named school, library or consortium and that based 
on information known to me or provided to me by employees responsible 
for the

[[Page 29163]]

data being submitted, I hereby certify that the data set forth in this 
request for reimbursement has been examined and is true, accurate and 
complete. I acknowledge that any false statement on this request for 
reimbursement or on other documents submitted by this school, library 
or consortium can be punished by fine or forfeiture under the 
Communications Act (47 U.S.C. 502, 503(b)), or fine or imprisonment 
under Title 18 of the United States Code (18 U.S.C. 1001), or can lead 
to liability under the False Claims Act (31 U.S.C. 3729-3733).''
    (ii) ``In addition to the foregoing, the school, library or 
consortium is in compliance with the rules and orders governing the 
Emergency Connectivity Fund Program, and I acknowledge that failure to 
be in compliance and remain in compliance with those rules and orders 
may result in the denial of funding, cancellation of funding 
commitments, and/or recoupment of past disbursements. I acknowledge 
that failure to comply with the rules and orders governing the 
Emergency Connectivity Fund Program could result in civil or criminal 
prosecution by law enforcement authorities.''
    (iii) ``By signing this request for reimbursement, I certify that 
the information contained in this request for reimbursement is true, 
complete, and accurate, and the expenditures, disbursements and cash 
receipts are for the purposes and objectives set forth in the terms and 
conditions of the Federal award. I am aware that any false, fictitious, 
or fraudulent information, or the omission of any material fact, may 
subject me to criminal, civil or administrative penalties for fraud, 
false statements, false claims or otherwise. (U.S. Code Title 18, 
sections 1001, 286-287 and 1341 and Title 31, sections 3729-3730 and 
3801-3812).''
    (iv) The funds sought in the request for reimbursement are for 
eligible equipment and/or services that were purchased or ordered in 
accordance with the Emergency Connectivity Fund Program rules and 
requirements in this subpart and received by either the school, 
library, or consortium, or the students, school staff, or library 
patrons as appropriate.
    (v) The portion of the costs eligible for reimbursement and not 
already paid for by another source was either paid for in full by the 
school, library, or consortium, or will be paid to the service provider 
within 30 days of receipt of funds.
    (vi) The amount for which the school, library, or consortium is 
seeking reimbursement from the Emergency Connectivity Fund consistent 
with the requirements set out in Sec.  54.1707.
    (vii) The school, library, or consortium is not seeking Emergency 
Connectivity Fund reimbursement for eligible equipment and/or services 
that have been purchased and reimbursed in full with other Federal 
pandemic relief funding (e.g., the Coronavirus Aid, Relief, and 
Economic Security (CARES) Act, Emergency Broadband Benefit Program, or 
other provisions of the American Rescue Plan), targeted state funding, 
other external sources of targeted funding, or targeted gifts or 
eligible for discounts from the schools and libraries universal service 
support mechanism or other universal service support mechanisms.
    (viii) The equipment and services the school, library, or 
consortium purchased using Emergency Connectivity Fund support will be 
used primarily for educational purposes as defined in Sec.  54.1700 and 
that the authorized person is not willfully or knowingly requesting 
reimbursement for equipment or services that are not being used.
    (ix) The equipment and services the school, library, or consortium 
purchased will not be sold, resold, or transferred in consideration for 
money or any other thing of value, except as allowed by Sec.  54.1713.
    (x) The school, library, or consortium recognizes that it may be 
subject to an audit, inspection or investigation pursuant to its 
request for reimbursement, that it will retain for ten years any and 
all records related to its request for reimbursement, and will make 
such records and equipment purchased with Emergency Connectivity Fund 
reimbursement available at the request of any representative (including 
any auditor) appointed by a state education department, the 
Administrator, the Commission and its Office of Inspector General, or 
any local, state, or Federal agency with jurisdiction over the entity.
    (xi) No kickbacks, as defined in 41 U.S.C. 8701 and/or 42 U.S.C. 
1320a-7b, were paid or received by the applicant to anyone in 
connection with the Emergency Connectivity Fund.
    (xii) No Federal subsidy made available through a program 
administered by the Commission that provides funds to be used for the 
capital expenditures necessary for the provision of advanced 
communications services has been or will be used to purchase, rent, 
lease, or otherwise obtain, any covered communications equipment or 
service, or maintain any covered communications equipment or service, 
or maintain any covered communications equipment or service previously 
purchased, rented, leased, or otherwise obtained, as required by Sec.  
54.10.
    (2) The FCC Form 474 shall be signed by the person authorized to 
submit requests for reimbursement for the service provider and shall 
include that person's certification under penalty of perjury that:
    (i) ``I am authorized to submit this request for reimbursement on 
behalf of the above-named service provider and that based on 
information known to me or provided to me by employees responsible for 
the data being submitted, I hereby certify that the data set forth in 
this request for reimbursement has been examined and is true, accurate 
and complete. I acknowledge that any false statement on this request 
for reimbursement or on other documents submitted by this school, 
library or consortium can be punished by fine or forfeiture under the 
Communications Act (47 U.S.C. 502, 503(b)), or fine or imprisonment 
under Title 18 of the United States Code (18 U.S.C. 1001), or can lead 
to liability under the False Claims Act (31 U.S.C. 3729-3733).''
    (ii) ``In addition to the foregoing, the service provider is in 
compliance with the rules and orders governing the Emergency 
Connectivity Fund Program, and I acknowledge that failure to be in 
compliance and remain in compliance with those rules and orders may 
result in the denial of funding, cancellation of funding commitments, 
and/or recoupment of past disbursements. I acknowledge that failure to 
comply with the rules and orders governing the Emergency Connectivity 
Fund Program could result in civil or criminal prosecution by law 
enforcement authorities.''
    (iii) ``By signing this request for reimbursement, I certify that 
the information contained in this request for reimbursement is true, 
complete, and accurate, and the expenditures, disbursements and cash 
receipts are for the purposes and objectives set forth in the terms and 
conditions of the Federal award. I am aware that any false, fictitious, 
or fraudulent information, or the omission of any material fact, may 
subject me to criminal, civil or administrative penalties for fraud, 
false statements, false claims or otherwise. (U.S. Code Title 18, 
sections 1001, 286-287 and 1341 and Title 31, sections 3729-3730 and 
3801-3812).''
    (iv) The funds sought in the request for reimbursement are for 
eligible equipment and/or services that were purchased or ordered in 
accordance with the Emergency Connectivity Fund

[[Page 29164]]

Program rules and requirements in this subpart and received by either 
the school, library, or consortium, or by students, school staff, or 
library patrons, as appropriate.
    (v) The amount for which the service provider is seeking 
reimbursement from the Emergency Connectivity Fund is consistent with 
the requirements set forth in Sec.  54.1707.
    (vi) The service provider is not willfully or knowingly requesting 
reimbursement for services that are not being used.
    (vii) The service provider is not seeking Emergency Connectivity 
Fund reimbursement for eligible equipment and/or services for which it 
has already been paid.
    (viii) The service provider recognizes that it may be subject to an 
audit, inspection, or investigation pursuant to its request for 
reimbursement, that it will retain for ten years any and all records 
related to its request for reimbursement, and will make such records 
and equipment purchased with Emergency Connectivity Fund reimbursement 
available at the request of any representative (including any auditor) 
appointed by a state education department, the Administrator, the 
Commission and its Office of Inspector General, or any local, state, or 
Federal agency with jurisdiction over the entity.
    (ix) No kickbacks, as defined in 41 U.S.C. 8701 and/or 42 U.S.C. 
1320a-7b, were paid or received by the applicant to anyone in 
connection with the Emergency Connectivity Fund.
    (x) No Federal subsidy made available through a program 
administered by the Commission that provides funds to be used for the 
capital expenditures necessary for the provision of advanced 
communications services has been or will be used to purchase, rent, 
lease, or otherwise obtain, any covered communications equipment or 
service, or maintain any covered communications equipment or service, 
or maintain any covered communications equipment or service previously 
purchased, rented, leased, or otherwise obtained, as required by Sec.  
54.10.
    (b) Required documentation. Along with the submission of a 
completed FCC Form 472 or a completed FCC Form 474, an eligible school, 
library, consortium that includes an eligible school or library, or 
service provider seeking reimbursement from the Emergency Connectivity 
Fund must submit invoices detailing the items purchased or ordered to 
the Administrator at the time the FCC Form 472 or FCC Form 474 is 
submitted. Applicants that seek payment from the Emergency Connectivity 
Fund prior to paying their service provider(s) must also provide 
verification of payment to the service provider(s) within 30 days of 
receipt of funds.
    (c) Reimbursement and invoice processing. The Administrator shall 
accept and review requests for reimbursement and invoices subject to 
the invoice filing deadlines provided in paragraph (d) of this section.
    (d) Invoice filing deadline. Invoices must be submitted to the 
Administrator within 60 days from the date of the funding commitment 
decision letter; a revised funding commitment decision letter approving 
a post-commitment change or a successful appeal of previously denied or 
reduced funding; or service delivery date, whichever is later.


Sec.  54.1712  Duplicate support.

    Entities participating in the Emergency Connectivity Fund may not 
seek Emergency Connectivity Fund support or reimbursement for eligible 
equipment or services that have been purchased with or reimbursed in 
full from other Federal pandemic-relief funding, targeted state 
funding, other external sources of targeted funding or targeted gifts, 
or eligible for discounts from the schools and libraries universal 
service support mechanism or other universal service support 
mechanisms.


Sec.  54.1713  Treatment, resale, and transfer of equipment.

    (a) Prohibition on resale. Eligible equipment and services 
purchased with Emergency Connectivity Fund support shall not be sold, 
resold, or transferred in consideration of money or any other thing of 
value, except as provided in paragraph (b) of this section.
    (b) Disposal of obsolete equipment. Eligible equipment purchased 
using Emergency Connectivity Fund support shall be considered obsolete 
if the equipment are at least three years old. Obsolete equipment may 
be resold or transferred in consideration of money or any other thing 
of value, disposed of, donated, or traded.


Sec.  54.1714  Audits, inspections, and investigations.

    (a) Audits. Schools, libraries, consortia, and service providers 
shall be subject to audits and other investigations to evaluate their 
compliance with the statutory and regulatory requirements in this 
subpart for the Emergency Connectivity Fund, including those 
requirements pertaining to what equipment and services are purchased, 
what equipment and services are delivered, and how equipment and 
services are being used.
    (b) Inspections and investigations. Schools, libraries, consortia, 
and service providers shall permit any representative (including any 
auditor) appointed by a state education department, the Administrator, 
the Commission and its Office of Inspector General, or any local, 
state, or Federal agency with jurisdiction over the entity to enter 
their premises to conduct inspections for compliance with the statutory 
and regulatory requirements in this subpart of the Emergency 
Connectivity Fund.
    (c) Production of records for audits, inspections, and 
investigations. Where necessary for compliance with Federal or state 
privacy laws, Emergency Connectivity Fund participants may produce 
records regarding students, school staff, and library patrons in an 
anonymized or deidentified format. When requested by the Administrator 
or the Commission, as part of an audit or investigation, schools, 
libraries, and consortia must seek consent to provide personally 
identification information from a student who has reached the age of 
majority, the relevant parent/guardian of a minor student, or the 
school staff member or library patron prior to disclosure.


Sec.  54.1715  Records retention.

    (a) Equipment and service inventory requirements. Schools, 
libraries, and consortia shall keep asset and service inventories as 
follows:
    (1) For each connected device or other piece of equipment provided 
to an individual student, school staff member, or library patron, the 
asset inventory must identify:
    (i) The device or equipment type (i.e. laptop, tablet, mobile 
hotspot, modem, router);
    (ii) The device or equipment make/model;
    (iii) The device or equipment serial number;
    (iv) The full name of the person to whom the device or other piece 
of equipment was provided; and
    (v) The dates the device or other piece of equipment was loaned out 
and returned to the school or library, or the date the school or 
library was notified that the device or other piece of equipment was 
missing, lost, or damaged.
    (2) For each connected device or other piece of eligible equipment 
not provided to an individual student, school staff member, or library 
patron, but used to provide service to multiple eligible users, the 
asset inventory must contain:

[[Page 29165]]

    (i) The device type or equipment type (i.e. laptop, tablet, mobile 
hotspot, modem, router);
    (ii) The device or equipment make/model;
    (iii) The device or equipment serial number;
    (iv) The name of the school or library employee responsible for 
that device or equipment; and
    (v) The dates the device or equipment was in service.
    (3) For services provided to individual students, school staff, or 
library patrons, the service inventory must contain:
    (i) The type of service provided (i.e., DSL, cable, fiber, fixed 
wireless, satellite, mobile wireless);
    (ii) The service plan details, including upload and download speeds 
and monthly data cap;
    (iii) The full name of the person(s) to whom the service was 
provided;
    (iv) The service address (for fixed broadband service only);
    (v) The installation date of the service (for fixed broadband 
service only); and
    (vi) The last date of service, as applicable (for fixed broadband 
service only).
    (4) For services not provided to an individual student, school 
staff member, or library patron, but used to provide service to 
multiple eligible users, the service inventory must contain:
    (i) The type of service provided (i.e., DSL, cable, fiber, fixed 
wireless, satellite, mobile wireless);
    (ii) The service plan details, including upload and download speeds 
and monthly data cap;
    (iii) The name of the school or library employee responsible for 
the service;
    (iv) A description of the intended service area;
    (v) The service address (for fixed broadband service only);
    (vi) The installation date of the service (for fixed broadband 
service only); and
    (vii) The last date of service, as applicable (for fixed broadband 
service only).
    (b) Records retention. All Emergency Connectivity Fund participants 
shall retain records related to their participation in the program 
sufficient to demonstrate compliance with all program rules in this 
subpart for at least ten (10) years from the last date of service or 
delivery of equipment.
    (c) Production of records. All Emergency Connectivity Fund 
participants shall present such records upon request any representative 
(including any auditor) appointed by a state education department, the 
Administrator, the Commission and its Office of Inspector General, or 
any local, state, or Federal agency with jurisdiction over the entity. 
When requested by the Administrator or the Commission, schools, 
libraries, and consortia must seek consent to provide personally 
identification information from a student who has reached the age of 
majority, the relevant parent/guardian of a minor student, or the 
school staff member or library patron prior to disclosure.


Sec.  54.1716  Children's Internet Protection Act certifications.

    (a) Definitions--(1) School. For the purposes of the certification 
requirements of this section, school means school, school board, school 
district, local education agency or other authority responsible for 
administration of a school.
    (2) Library. For the purposes of the certification requirements of 
this section, library means library, library board or authority 
responsible for administration of a library.
    (3) Billed entity. Billed entity is defined in Sec.  54.1700. In 
the case of a consortium, the billed entity is the lead member of the 
consortium.
    (4) Connected devices. Connected devices are defined in Sec.  
54.1700.
    (b) Who is required to make certifications? (1) A school or library 
that receives support for internet access, internet service, or 
internal connections services under the Federal universal service 
support mechanism for schools and libraries, or internet access or 
internet service through the Emergency Connectivity Fund, must make 
such certifications as described in paragraph (c) of this section. The 
certifications required and described in paragraph (c) of this section 
must be made in each funding year.
    (2) A school or library that receives support for connected devices 
through the Emergency Connectivity Fund and uses internet access or 
internet service funded through the Federal universal service support 
mechanism for schools and libraries or through the Emergency 
Connectivity Fund must make the certifications as described in 
paragraph (c) of this section. The certifications required and 
described in paragraph (c) of this section must be made in each funding 
year.
    (3) Schools and libraries that are not receiving support for 
internet access, internet service, or internal connections under the 
Federal universal service support mechanism for schools and libraries; 
internet access or internet service through the Emergency Connectivity 
Fund; or connected devices that do not use internet access or internet 
service funded through the Federal universal service support mechanism 
for schools and libraries or the Emergency Connectivity Fund are not 
subject to the requirements in 47 U.S.C. 254(h) and (l), but must 
indicate, pursuant to the certification requirements in paragraph (c) 
of this section, that they are not receiving support for such services 
or that the connected devices do not use internet access or internet 
service funded through the Federal universal service support mechanism 
for schools and libraries or the Emergency Connectivity Fund.
    (c) Certifications required under 47 U.S.C. 254(h) and (1). (1) An 
Emergency Connectivity Fund applicant need not complete additional 
Children's Internet Protection Act (CIPA) compliance certifications if 
the applicant has already certified its CIPA compliance for the 
relevant funding year (i.e., has certified its compliance in an FCC 
Form 486 or FCC Form 479).
    (2) Emergency Connectivity Fund applicants that have not already 
certified their CIPA compliance for an E-Rate application for the 
relevant funding year (i.e., have not completed a FCC Form 486 or FCC 
Form 479), will be required to certify:
    (i) That they are in compliance with CIPA requirements under 
sections 254(h) and (l);
    (ii) That they are undertaking the actions necessary to comply with 
CIPA requirements as part of their request for support through the 
Emergency Connectivity Fund; or
    (iii) If applicable, that the requirements of CIPA do not apply, 
because the applicant is not receiving support for internet access, 
internet service, or internal connections under the Federal universal 
service support mechanism for schools and libraries or internet access 
or internet service through the Emergency Connectivity Fund, or the 
connected devices do not use internet access or internet service funded 
through the Federal universal support mechanism for schools and 
libraries or the Emergency Connectivity Fund.
    (d) Failure to provide certifications--(1) Schools and libraries. A 
school or library that knowingly fails to submit certifications as 
required by this section shall not be eligible for support through the 
Emergency Connectivity Fund until such certifications are submitted.
    (2) Consortia. A billed entity's knowing failure to collect the 
required certifications from its eligible school and library members or 
knowing failure to certify that it collected the required 
certifications shall render the entire

[[Page 29166]]

consortium ineligible for support through the Emergency Connectivity 
Fund.
    (3) Reestablishing eligibility. At any time, a school or library 
deemed ineligible for equipment and services under the Emergency 
Connectivity Fund because of failure to submit certifications required 
by this section may reestablish eligibility for support by providing 
the required certifications to the Administrator and the Commission.
    (e) Failure to comply with the certifications--(1) Schools and 
libraries. A school or library that knowingly fails to comply with the 
certifications required by this section must reimburse any funds and 
support received under the Emergency Connectivity Fund for the period 
in which there was noncompliance.
    (2) Consortia. In the case of consortium applications, the 
eligibility for support of consortium members who comply with the 
certification requirements of this section shall not be affected by the 
failure of other school or library consortium members to comply with 
such requirements.
    (3) Reestablishing compliance. At any time, a school or library 
deemed ineligible for support through the Emergency Connectivity Fund 
for failure to comply with the certification requirements of this 
section and that has been directed to reimburse the program for support 
received during the period of noncompliance may reestablish compliance 
by complying with the certification requirements under this section. 
Upon submittal to the Commission of a certification or other 
appropriate evidence of such remedy, the school or library shall be 
eligible for support through the Emergency Connectivity Fund.
    (f) Waivers based on state or local procurement rules and 
regulations and competitive bidding requirements. Waivers shall be 
granted to schools and libraries when the authority responsible for 
making the certifications required by this section cannot make the 
required certifications because its state or local procurement rules or 
regulations or competitive bidding requirements prevent the making of 
the certification otherwise required. The waiver shall be granted upon 
the provision, by the authority responsible for making the 
certifications on behalf of schools or libraries, that the schools or 
libraries will be brought into compliance with the requirements of this 
section before the close of the relevant funding year.


Sec.  54.1717  Administrator of the Emergency Connectivity Fund.

    (a) The Universal Service Administrative Company is appointed the 
permanent Administrator of the Emergency Connectivity Fund and shall be 
responsible for administering the Emergency Connectivity Fund.
    (b) The Administrator shall be responsible for reviewing 
applications for funding, recommending funding commitments, issuing 
funding commitment decision letters, reviewing invoices and 
recommending payment of funds, as well as other administration-related 
duties.
    (c) The Administrator may not make policy, interpret unclear 
provisions of statutes or rules, or interpret the intent of Congress. 
Where statutes or the Commission's rules in this subpart are unclear, 
or do not address a particular situation, the Administrator shall seek 
guidance from the Commission.
    (d) The Administrator may advocate positions before the Commission 
and its staff only on administrative matters relating to the Emergency 
Connectivity Fund.
    (e) The Administrator shall create and maintain a website, as 
defined in Sec.  54.5, on which applications for services will be 
posted on behalf of schools and libraries.
    (f) The Administrator shall provide the Commission full access to 
the data collected pursuant to the administration of the Emergency 
Connectivity Fund.
    (g) The administrator shall provide performance measurements 
pertaining to the Emergency Connectivity Fund as requested by the 
Commission by order or otherwise.
    (h) The Commission shall have the authority to audit all entities 
reporting data to the Administrator regarding the Emergency 
Connectivity Fund. When the Commission, the Administrator, or any 
independent auditor hired by the Commission or the Administrator, 
conducts audits of the participants of the Emergency Connectivity Fund, 
such audits shall be conducted in accordance with generally accepted 
government auditing standards.
    (i) The Commission shall establish procedures to verify support 
amounts provided by the Emergency Connectivity Fund and may suspend or 
delay support amounts if a party fails to provide adequate verification 
of the support amounts provided upon reasonable request from the 
Administrator.
    (j) The Administrator shall make available to whomever the 
Commission directs, free of charge, any and all intellectual property, 
including, but not limited to, all records and information generated by 
or resulting from its role in administering the support mechanisms, if 
its participation in administering the Emergency Connectivity Fund 
ends. If its participation in administering the Emergency Connectivity 
Fund ends, the Administrator shall be subject to close-out audits at 
the end of its term.


Sec.  54.1718  Appeal and waiver requests.

    (a) Parties permitted to seek review of Administrator decision. (1) 
Any party aggrieved by an action taken by the Administrator must first 
seek review from the Administrator.
    (2) Any party aggrieved by an action taken by the Administrator 
under paragraph (a)(1) of this section may seek review from the Federal 
Communications Commission as set forth in paragraph (b) of this 
section.
    (3) Parties seeking waivers of the Commission's rules in this 
subpart shall seek relief directly from the Commission and need not 
first file an action for review from the Administrator under paragraph 
(a)(1) of this section.
    (b) Filing deadlines. (1) An affected party requesting review of a 
decision by the Administrator pursuant to paragraph (a)(1) of this 
section shall file such a request within thirty (30) days from the date 
the Administrator issues a decision.
    (2) An affected party requesting review by the Commission pursuant 
to paragraph (a)(2) of this section of a decision by the Administrator 
under paragraph (a)(1) of this section shall file such a request with 
the Commission within thirty (30) days from the date of the 
Administrator's decision. Further, any party seeking a waiver of the 
Commission's rules under paragraph (a)(3) of this section shall file a 
request for such waiver within thirty (30) days from the date of the 
Administrator's initial decision, or, if an appeal is filed under 
paragraph (a)(1) of this section, within thirty days from the date of 
the Administrator's decision resolving such an appeal.
    (3) In all cases of requests for review filed under paragraphs 
(a)(1) through (3) of this section, the request for review shall be 
deemed filed on the postmark date. If the postmark date cannot be 
determined, the applicant must file a sworn affidavit stating the date 
that the request for review was mailed.
    (4) Parties shall adhere to the time periods for filing oppositions 
and replies set forth in Sec.  1.45 of this chapter.
    (c) General filing requirements. (1) Except as otherwise provided 
in this section, a request for review of an Administrator decision by 
the Federal Communications Commission shall be filed with the Federal 
Communications

[[Page 29167]]

Commission's Office of the Secretary in accordance with the general 
requirements set forth in part 1 of this chapter. The request for 
review shall be captioned ``In the Matter of Request for Review by 
(name of party seeking review) of Decision of Universal Service 
Administrator'' and shall reference the applicable docket numbers.
    (2) A request for review pursuant to paragraphs (a)(1) through (3) 
of this section shall contain:
    (i) A statement setting forth the party's interest in the matter 
presented for review;
    (ii) A full statement of relevant, material facts with supporting 
affidavits and documentation;
    (iii) The question presented for review, with reference, where 
appropriate, to the relevant Federal Communications Commission rule, 
Commission order, or statutory provision; and
    (iv) A statement of the relief sought and the relevant statutory or 
regulatory provision pursuant to which such relief is sought.
    (3) A copy of a request for review that is submitted to the Federal 
Communications Commission shall be served on the Administrator 
consistent with the requirement for service of documents set forth in 
Sec.  1.47 of this chapter.
    (4) If a request for review filed pursuant to paragraphs (a)(1) 
through (3) of this section alleges prohibitive conduct on the part of 
a third party, such request for review shall be served on the third 
party consistent with the requirement for service of documents set 
forth in Sec.  1.47 of this chapter. The third party may file a 
response to the request for review. Any response filed by the third 
party shall adhere to the time period for filing replies set forth in 
Sec.  1.45 of this chapter and the requirement for service of documents 
set forth in Sec.  1.47 of this chapter.
    (d) Review by the Wireline Competition Bureau or the Commission. 
(1) Requests for review of Administrator decisions that are submitted 
to the Federal Communications Commission shall be considered and acted 
upon by the Wireline Competition Bureau; provided, however, that 
requests for review that raise novel questions of fact, law, or policy 
shall be considered by the full Commission.
    (2) An affected party may seek review of a decision issued under 
delegated authority by the Wireline Competition Bureau pursuant to the 
rules set forth in part 1 of this chapter.
    (e) Standard of review. (1) The Wireline Competition Bureau shall 
conduct de novo review of request for review of decisions issued by the 
Administrator.
    (2) The Federal Communications Commission shall conduct de novo 
review of requests for review of decisions by the Administrator that 
involve novel questions of fact, law, or policy; provided, however, 
that the Commission shall not conduct de novo review of decisions 
issued by the Wireline Competition Bureau under delegated authority.
    (f) Emergency Connectivity Fund disbursements during pendency of a 
request for review and Administrator decision. When a party has sought 
review of an Administrator decision under paragraphs (a)(1) through (3) 
of this section, the Commission shall not process a request for the 
reimbursement of eligible equipment and/or services until a final 
decision has been issued either by the Administrator or by the Federal 
Communications Commission; provided, however, that the Commission may 
authorize disbursement of funds for any amount of support that is not 
the subject of an appeal.

[FR Doc. 2021-10804 Filed 5-27-21; 8:45 am]
BILLING CODE 6712-01-P