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How To File a Complaint of the expeditious review of an Applicant’s Applications Discrimination proposal. As a result, all Applicants Please note that the application To file a complaint of discrimination, must file their application electronically process is designed so that an applicant complete the USDA Program at the above website. must demonstrate financial and Discrimination Complaint Form, which Comments: For proper delivery, all technical feasibility of the project and may be accessed online at http:// feedback or comments should specify the entire operation of the applicant. www.ocio.usda.gov/sites/default/files/ ‘‘Identifying Regulatory Reform Applicants that do not demonstrate docs/2012/Complain_combined_6_8_ Initiatives.’’ financial or technical feasibility will not 12.pdf, or write a letter signed by you Electronic Submission. You may be considered for an award. or your authorized representative. submit comments electronically through Apply at https://reconnect.usda.gov Send your completed complaint form the Federal eRulemaking Portal: http:// from January 31, 2020, until 6:00 p.m. or letter to USDA by mail, fax, or email: www.regulations.gov using Docket ID: Eastern on March 16, 2020. Electronic Mail: U.S. Department of Agriculture, USDA–2017–0002–0001. USDA strongly applications will allow for the Director, Office of Adjudication, 1400 encourages commenters to submit expeditious review of an Applicant’s Independence Avenue SW, Washington, comments electronically. Electronic proposal. As a result, all Applicants DC 20250–9410. submission of comments allows you must file their application electronically Fax: (202) 690–7442. maximum time to prepare and submit a at the above website. Email: [email protected]. comment and ensures timely receipt by Persons with disabilities who require USDA. Follow the instructions provided Comments alternative means for communication on that site to submit comments For the first round of funding, the (Braille, large print, audiotape, etc.), electronically. United States Department of Agriculture should contact USDA’s TARGET Center Mail, Hand delivery, or Courier. (USDA) determined that it was in the at (202) 720–2600 (voice and TDD). Paper, disk, or CD–ROM submissions public interest to move forward with should be submitted to regulations@ developing procedures for the Carmen M. Rottenberg, obpa.usda.gov, Office of Budget and Administrator. ReConnect Program within a Funding Program Analysis, USDA, Jamie L. Opportunity Announcement (FOA), as [FR Doc. 2019–26694 Filed 12–11–19; 8:45 am] Whitten Building, Room 101–A, 1400 is common with a pilot, instead of BILLING CODE 3410–DM–P Independence Ave. SW, Washington, rulemaking. Such a method would also DC 20250. meet the statutory mandate of FOR FURTHER INFORMATION CONTACT: For DEPARTMENT OF AGRICULTURE expediting program delivery. general inquiries, contact Chad Parker, Notwithstanding the lack of rulemaking, Rural Utilities Service Assistant Administrator however, before USDA finalized and Telecommunications Program, Rural published the FOA, it requested [Docket: USDA–2017–0002–0001] Utilities Service, U.S. Department of informal comments from the public on Agriculture (USDA), email: ReConnect Pilot Program a wide range of issues to be considered [email protected], telephone (202) by the agency in the ReConnect AGENCY: Rural Utilities Service, 720–9554. You may obtain additional Program. See Notice of Inquiry and Department of Agriculture. information regarding applications at Request for Comments, 83 FR 35609 ACTION: Funding Opportunity https://reconnect.usda.gov. (July 27, 2018). Once the FOA was Announcement (FOA) and solicitation SUPPLEMENTARY INFORMATION: published, the application windows were open between April 23, 2019 and of applications for second round of the Background ReConnect Program. July 12, 2019. On March 23, 2018, Congress passed Thereafter, the Agency received input SUMMARY: The Rural Utilities Service the Consolidated Appropriations Act, from applicants that participated in the (RUS), a Rural Development agency of 2018 (the Act), which established a new first funding round on issues which the United States Department of broadband loan and grant pilot program, included, but were not limited to: (1) Agriculture (USDA), hereinafter referred now called the Rural eConnectivity Pilot The availability of data; (2) frequency of to as the Agency, announces its general Program (ReConnect Program). The Act collection; (3) clarity of instructions; (4) policy and application procedures for originally appropriated budget authority data elements to be recorded, disclosed, its second round of funding under the of $600 million to be used on an or reported; (5) access to forms; and (6) broadband pilot program. This pilot expedited basis. For fiscal year (FY) accessibility for troubleshooting. Based program was established pursuant to the 2019, Congress funded an additional on that input, the Agency made further Consolidated Appropriations Act, 2018. $550 million for the pilot. The changes to the program, which are The Agency is announcing the ReConnect Program provides loans, discussed below. application window for this second grants, and loan/grant combinations to Additionally, with this FOA, the round of funding and requesting facilitate broadband deployment in rural agency is now requesting that the public comments on the program. areas. In facilitating the expansion of again provide feedback on the program, DATES: broadband services and infrastructure, as was done with the July 27th Notice Applications: Beginning on January the pilot will fuel long-term rural of Inquiry. Specifically, the public is 31, 2020, applications can be submitted economic development and requested to submit comments that through the RUS on-line application opportunities in rural America. One of would inform any future rounds of portal until 6:00 p.m. Eastern on March those opportunities is precision ReConnect funding, if any, or comments 16, 2020. agriculture. The use of this technology on issues that should be addressed in Comments: Comments due by March requires a robust broadband connection. any future broadband program. 16, 2020. The awards made under this program Additionally, and consistent with the ADDRESSES: Application Submission: will bring high speed broadband to the Department’s Regulatory Reform Apply at https://reconnect.usda.gov. farms which will allow them to increase Initiatives, the public is requested to Electronic applications will allow for productivity. submit comments related to program

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implementation, suggestions on Program. To promote broadband in rural challenge if sufficient service is present decreasing the public burden, etc., America, RUS encourages state and in an applicant’s proposed funded through the USDA request for local jurisdictions to waive any fees service area is being increased from 30 information published on July 17, 2017 associated with granting rights-of-ways days to 45 days. (82 FR 32649). See ADDRESSES for and to assist applicants and awardees III. Definitions information about how to comment. with satisfying any environmental The terms and conditions provided in Authority: This solicitation is issued requirements such as approval from the pursuant to the Consolidated Appropriations State Historical Preservation Office. this FOA are applicable to and for purposes of this FOA only. Unless Act, 2018, Public Law 115–141, the II. Summary of Changes Consolidated Appropriations Act, 2019, otherwise provided in the award Public Law 116–6, and the Rural The first funding round of the documents, all financial terms not Electrification Act of 1936, 7 U.S.C. 901 et Reconnect Program is considered a defined herein shall have the meaning seq. success with the Agency receiving one as defined by Generally Accepted Overview hundred and forty-six (146) submitted Accounting Principles. applications for a total of over $1.4 Administrator means the RUS Federal Agency: Rural Utilities billion. After a careful review of the Administrator, or the Administrator’s Service, USDA. lessons learned during the first round of designee. Funding Opportunity Title: Rural funding, several changes are being Applicant means an entity requesting eConnectivity Pilot Program (ReConnect instituted for second funding round. funding under this FOA. Program). Those changes include, but are not Application means the Applicant’s Announcement Type: Funding limited to, the following: request for federal funding, which may Opportunity Announcement (FOA) and 1. The application window for the be approved in whole or part by RUS. solicitation of applications. three categories of funding will be from Award documents mean, as Catalog of Federal Domestic January 31, 2020 through March 16, applicable, all associated grant Assistance (CFDA) Number: Rural 2020. agreements, loan agreements, or loan/ eConnectivity Pilot Program (ReConnect 2. Definitions have been added for grant agreements. Program)—10.752. healthcare and educational facilities and Award means a grant, loan, or loan/ Items in Supplementary Information the name for critical community grant combination made under this facilities has been changed to essential FOA. I. Overview community facilities. Awardee means a grantee, borrower, II. Summary of Changes 3. For 100 percent grants, 90 percent or borrower/grantee that has applied III. Definitions of the proposed funded service area and been awarded federal assistance IV. Substantially Underserved Trust Areas cannot have sufficient access to under this FOA. V. Funding Opportunity Description Broadband loan means, for purposes VI. Eligibility Information broadband, as opposed to 100 percent VII. Application and Submission Information under round one. of this FOA, a loan that has been VIII. Application Evaluation Criteria 4. The requirement for two years of approved or is currently under review IX. Notice of Proposed Funded Service Areas unqualified, comparative, audited by RUS after the beginning of Fiscal X. Evaluation and Processing Procedures financial statements has been changed Year 2000 in the Telecommunications XI. Award Administration Information to unqualified, comparative, audited Infrastructure Program, Farm Bill XII. Other Information financial statements for the previous Broadband Program, Broadband I. Overview year from the date the application has Initiatives Program or the ReConnect been submitted. Program. Loans that were approved and On March 23, 2018, Congress passed 5. The requirement that applicants then subsequently fully de-obligated are the Consolidated Appropriations Act, must submit certifications from the not included in this definition. 2018 (the FY2018 Appropriations), appropriate state or tribal broadband Broadband service means any which established a broadband loan and office has been changed to a voluntary technology as having the capacity to grant pilot program, the Rural request. transmit data to enable a subscriber to eConnectivity Pilot Program (hereinafter 6. Pre-application expenses that were the service to originate and receive high the ReConnect Program). One of the incurred for round one, but benefit an quality voice, data, graphics and video. essential goals of the ReConnect application for round two, may be Business means a commercial or Program is to expand broadband service funded up to the 5 percent of the total mercantile activity engaged in as a to rural areas without sufficient access award in round 2. means of livelihood. For purposes of to broadband, defined as 10 megabits 7. Under certain conditions a this FOA, farms will not be counted as per second (Mbps) downstream and subsidiary can use the unqualified, businesses for scoring purposes. 1 Mbps upstream. For this purpose, comparative, audited statements to meet CALEA means the Communications Congress provided RUS with $600 certain eligibility requirements. Assistance for Law Enforcement Act, 47 million and expanded its existing 8. The scoring criteria for farms has U.S.C. 1001 et seq. authority to make loans and grants. been changed. Applicants will receive 1 Composite economic life means the Additionally, the FY2018 point for every 10 farms served up to a weighted (by dollar amount of each Appropriations specifically authorized maximum of 20 points. Farms will be class of facility) average economic life of technical assistance to assist the Agency counted using 2017 Census of all classes of facilities necessary to in expanding needed service to the most Agriculture data. complete construction of the broadband rural communities where 90 percent of 9. Tribal leaders can submit facilities in the proposed funded service the households are without sufficient documentation supporting scoring area. access to broadband service. Once again, points for the number of healthcare, Current ratio means the current assets on January 3, 2019, Congress educational and essential community divided by the current liabilities. appropriated (the FY2019 facilities. Debt service coverage ratio (DSCR) Appropriations) an additional $550 10. The time period incumbent means (Total Net Income or Margins + million to continue the ReConnect service providers will be able to Interest Expense Allowance for Funds

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Used during Construction + thereto, available for review at https:// recipient’’ in 2 CFR 200 shall also be Depreciation + Amortization)/(Interest reconnect.usda.gov. read to encompass ‘‘loan recipient’’ and on Funded Debt + Other Interest + Loan/grant means any federal ‘‘loan/grant recipient’’, such that 2 CFR Principal Payment on Debt and Capital assistance in the form of a loan/grant 200 shall be applicable to all Awardees Leases). combination made under this FOA. under this FOA. Economic life means the estimated Loan/grant agreement means the Sufficient access to broadband means useful service life of an asset as loan/grant contract and security determined by RUS. agreement between RUS and the any rural area in which household have Educational facilities mean any Awardee securing the Loan/grant, fixed, terrestrial broadband service public or private educational institution including all amendments thereto delivering at least 10 Mbps downstream that offers a program of college, available at https://reconnect.usda.gov. and 1 Mbps upstream. Mobile and professional, preparatory, high school, Non-funded service area means any satellite services will not be considered middle school, junior high school, area in which the applicant offers in making the determination of elementary, or kindergarten instruction, broadband service or intends to offer sufficient access to broadband. or any combination of those facilities. broadband service during the forecast Tangible equity means a measure of a Daycare centers, museums, and libraries period but is not a part of its proposed company’s capital, which is used by are also included. funded service area. financial institutions to evaluate Pre-application expenses means any Eligible service area means any potential losses by eliminating reasonable expenses, as determined by proposed funded service area where 90 intangible assets, goodwill and preferred percent of the households to be served RUS, incurred after the release of this stock from total equity. do not have sufficient access to FOA to prepare an Application or to broadband. For eligibility purposes, if respond to RUS inquiries about the Tangible equity to total assets means an applicant is applying for multiple Application. tangible equity divided by total assets. proposed funded service areas, each Premises means households, farms Times interest earned ratio (TIER) service area will be evaluated on a and businesses. means (Total Net Income or Margins + Project means all of the work to be stand-alone basis. Total Interest¥Expense Allowance for performed to bring broadband service to Essential community facilities means Funds Used during Construction) all premises in the proposed funded public facilities that provide community divided by (Total Interest¥Expense services essential for supporting the service area under the Application, including construction, the purchase Allowance for Funds Used during safety, health, and well-being of Construction). residents, including, but not limited to, and installation of equipment, and emergency response and other public professional services including IV. Substantially Underserved Trust safety activities. engineering and accountant/consultant Areas Equity means total assets minus total fees, whether funded by federal liabilities as reflected on the Applicant’s assistance, matching, or other funds. A. Community Designation of balance sheet. Proposed funded service area (PFSA) ‘‘Substantially Underserved Trust Area’’ Farm means any place from which means the area (whether all or part of an If the Administrator determines that a $1,000 or more of agricultural products existing or new service area) where the community within ‘‘trust land’’ (as were sold or would normally be sold applicant is requesting funds to provide defined in 38 U.S.C. 3765) has a high during the year. broadband service. Multiple service Forecast period means the five-year areas will be treated as separate need for the benefits of the ReConnect period of projections in an application, standalone service areas for the purpose Program, the Administrator may which shall be used by RUS to of determining how much of the designate the community as a determine financial and technical proposed funded service area does not ‘‘substantially underserved trust area’’ feasibility of the application. have sufficient access to broadband. (as defined in section 306F of the RE GAAP means accounting principles Each service area must meet the Act). minimum requirements for the generally accepted in the United States B. Consideration as a ‘‘Substantially appropriate funding category to be an of America. Underserved Trust Area’’ Grant means any federal assistance in eligible area. the form of a grant made under this RE Act means the ‘‘Rural To receive consideration as a FOA. Electrification Act of 1936,’’ as amended substantially underserved trust area, the Grant agreement means the grant (7 U.S.C. 901 et seq.). applicant must submit to the Agency a Rural area means any area which is contract and security agreement completed application that includes all not located within: (1) A city, town, or between RUS and the Awardee securing of the information requested in 7 CFR incorporated area that has a population the Grant awarded under this FOA, part 1700, subpart D. In addition, the including any amendments thereto, of greater than 20,000 inhabitants; or (2) application must identify the available for review at https:// an urbanized area contiguous and discretionary authorities within subpart reconnect.usda.gov. adjacent to a city or town that has a Healthcare facilities means any population of greater than 50,000 D that it seeks to have applied to its facility where healthcare is provided, inhabitants. application. Note, however, that given including but not limited to, clinics, RUS Accounting Requirements shall the prohibition on funding operating hospitals, nursing homes, pharmacies, mean compliance with U.S. GAAP, expenses in the ReConnect Program, and urgent care facilities. acceptable to RUS, the system of requests for waiver of the equity Loan means any federal assistance in accounting prescribed by RUS Bulletin requirements cannot be considered. In the form of a loan made under this FOA. 1770B–1, and the Uniform addition, due to the statutory Loan agreement means the loan Administrative Requirements, Cost requirements that established the contract and security agreement Principles, and Audit Requirements for ReConnect Program, waiver of the between RUS and the Awardee securing Federal Awards, found at 2 CFR part nonduplication requirements also the Loan, including all amendments 200. For all Awardees the term ‘‘grant cannot be considered.

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V. Funding Opportunity Descriptions matching funds must be deposited into 5. Type of Funding Instrument the construction fund account at the A. Funding Categories The funding instruments will be closing of the award. If the matching grants, loans, and loan/grant 1. General funds are provided by a third party, a combinations. For the purposes of this FOA, 90 serious commitment from the third percent of the proposed funded service party must be submitted indicating that VI. Eligibility Information area must not have sufficient access to the funds will be available at the closing A. General broadband. Applicants must propose to of the award if approved. The matching Applicants must satisfy the following build a network that is capable of contribution can only be used for eligibility requirements to qualify for providing service to every premise eligible purposes. All eligible funding. located in the proposed funded service applications will be scored, and subject area at the time the application is to Section V(C)(5)(b)(i) (overlapping B. Eligible Entities applications) applications with the submitted at a speed of 25 Mbps The following entities are eligible to highest score will receive an award offer downstream and 3 Mbps upstream. The apply for assistance: until all funds are expended for this Agency reserves the right to make 1. States, local governments, or any category. funding offers or seek consultations to agency, subdivision, instrumentality, or resolve partially overlapping B. Available Funds political subdivision thereof; applications. RUS may contact the 2. A territory or possession of the applicant for additional information 1. General United States; during the review process. If additional 3. An Indian tribe (as defined in Approximately $512,000,000 in information is requested, the applicant section 4 of the Indian Self- funding has been set aside for funding will have up to 30 calendar days to Determination and Education opportunities under this FOA. submit the information. If such Assistance Act (25 U.S.C. 450b)); information is not timely submitted, 2. Funding Limits 4. Non-profit entities; RUS may reject the application. Once all 5. For-profit corporations; funds for a category have been Award amounts under this FOA will 6. Limited liability companies; and expended for the ReConnect program, be limited as follows: 7. Cooperative or mutual all remaining applications will be organizations. returned. a. 100 Percent Loan. Up to $200,000,000 is available for loans. The Please note that individuals and legal 2. 100 Percent Loan maximum amount that can be requested partnerships are not eligible to apply. In Applications will be processed and in an application is $50,000,000. addition, co-applicants are not eligible. If two entities would like to partner awarded on a rolling basis. In the event b. 50 Percent Loan—50 Percent Grant. with each other in delivering broadband two loan applications are received for Up to $200,000,000 is available for loan/ to areas without sufficient access, then the same proposed funded service area grant combinations. The maximum one entity must take the lead on the application submitted first will be amount that can be requested in an submitting an application. Inter- considered first. The interest rate for a application is $25,000,000 for the loan company agreements can be used to 100 percent loan will be set at a fixed and $25,000,000 for the grant. Loan and account for revenues and expenses on 2 percent. Tangible equity to total assets grant amounts will always be equal. must be at least 20 percent at the end the applicant’s financial projections. c. 100 Percent Grant. Up to of the calendar year starting in the third $200,000,000 is available for grants. The C. Application Eligibility Factors year of the forecast period through the maximum amount that can be requested remainder of the forecast period. The following requirements must be in an application is $25,000,000. met by all applications to be eligible for 3. 50 Percent Loan/50 Percent Grant d. Reserve. Additional budget an award. Applications failing to Combination authority is available for a reserve, comply with these requirements will be The interest rate for the 50 percent which may be used for loans or grants rejected. loan component will be set at the under this FOA or may be included in 1. Audited Financial Statement Treasury rate for the remaining additional FOAs. The agency reserves amortization period at the time of each the right to increase funding utilizing Applicants must submit an advance of funds. Applicants may the application queue under this FOA unqualified, comparative, audited propose substituting cash for the loan should additional appropriations financial statement for the previous year component at the time of application become available for the same purposes. from the date the application is and funds must be deposited into the submitted. If an application is submitted construction fund account at the closing 3. Repooling in the first quarter of the calendar year of the award. All eligible applications and the most recent yearend audit has RUS retains the discretion to divert will be scored and, subject to Section not been completed, the applicant can funds from one funding category to V(C)(5)(b)(i) (overlapping applications), submit the two previous unqualified another. applications with the highest score will audits that have been completed. If receive an award offer until all funds are 4. Award Period qualified audits containing a disclaimer expended for this category. or adverse opinion are submitted, the Awards can be made until all funds application will not be considered. An 4. 100 Percent Grant have been expended in any given applicant can use the consolidated Applicants must provide a matching funding category. While the completion financials of the parent as long as the contribution equal to 25 percent of the time will vary depending on the parent fully guarantees the loan, or in cost of the overall project and must complexity of the project, award the case of a grant, guarantees that clearly identify the source of the funds recipients must complete their projects construction will be completed as even if it is to be provided from the within 5 years from the date funds are approved in the application or will applicant’s operating accounts. All first made available. repay the grant to RUS.

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2. Fully Completed Application the overlapping territory; (3) choose one a ReConnect award in round one are not Applicants must submit a complete application over another given the eligible for funding under this FOA. amount of assistance requested, the application and provide all supporting 6. Fully Funded number of awards already chosen in the documentation required for the A project is eligible only if, all project application. area or State, or the need for the project in the specific area due to other factors; costs can be fully funded or accounted 3. Timely Buildout Completion or (4) simply choose the project that for in the application. To demonstrate this, applications must include evidence A project is eligible only if the scores higher or in the judgement of the of all funding, other than the RUS application demonstrates that the agency is more financially feasible. award, necessary to support the project, project can be completely built out ii. Prior Funded Service Areas. such as bank account statements, firm within 5 years from the date funds are (A) RUS Broadband Loans. Service letters of commitment from equity first made available. areas of borrowers that have RUS broadband loans, as defined in this participants, or outside loans, which 4. Technical Feasibility FOA, are ineligible for all other must evidence the timely availability of Only projects that RUS determines to applicants, and can be found at https:// funds. If outside loans are used, they be technically feasible will be eligible reconnect.usda.gov. However, RUS may only be secured by assets other for an award. Applicants will be broadband borrowers that have built out than those used for collateral under this required to submit a network design, their service areas consistent with their FOA. Equity partners that are not network diagram, project costs and a application and loan documents, but specifically identified by name will not buildout timeline, all certified by a were not required to provide, and are be considered in the financial analysis professional engineer. The certification currently not providing, sufficient of the application. If the application from the professional engineer must access to broadband pursuant to this states that other funds are required for state that the proposed network can FOA are eligible to apply for funding for the project in addition to the ReConnect deliver broadband service at the these service areas; provided that they funding requested, evidence must be required level of service to all premises have not defaulted on, and have included in the application identifying in the proposed funded service area. If materially complied with, in the sole the source of funds and when the funds a certification is not submitted, the discretion of RUS, their prior broadband will be available. If the additional application may not be considered for loan requirements. Current RUS funding is not clearly identified, the funding. broadband borrowers that have received application may not be considered for funding to provide sufficient access to an award. 5. Service Areas broadband, but not yet built out their 7. Financial Feasibility and a. Eligible Service Areas system are ineligible to apply. Sustainability (i) Applicants must propose to (B) RUS Community Connect Grants. Only projects that RUS determines to provide broadband service directly to all Service areas that received grants under be financially feasible and sustainable premises in the proposed funded service the RUS Community Connect Grant will be eligible for an award under this area that do not have sufficient access Program are eligible if they do not have FOA. A project is financially feasible to broadband. sufficient access to broadband, except when the applicant demonstrates to the (ii) If any part of the applicant’s for those grants still under construction. satisfaction of RUS that it will be able proposed funded service area is Service areas still under construction to generate sufficient revenues to cover ineligible, RUS, in its sole discretion, can be found at https:// expenses; will have sufficient cash flow may request that an applicant modify its reconnect.usda.gov. to service all debts and obligations as application, if RUS believes the (C) RUS BIP Grants. Service areas that they come due; will have a positive modification is feasible. Otherwise, RUS received a 100 percent grant under the ending cash balance as reflected on the will reject the application. RUS Broadband Initiatives Program cash flow statement for each year of the (BIP) are eligible if they do not have b. Ineligible Service Areas forecast period; and, by the end of the sufficient access to broadband. forecast period, will meet at least two of (i) Overlapping Service Areas. However, if the applicant is the same the following requirements: A minimum RUS will not fund more than one BIP grantee, then the applicant may TIER requirement of 1.2, a minimum project that serves any one given only request a 100 percent loan. DSCR requirement of 1.2, and a geographic area. Invariably, however, (D) State-funded Areas. Applicants minimum current ratio of 1.2. In applicants will propose service areas are encouraged to work with the addition, applicants must demonstrate that overlap, varying from small de Governor’s office for the states where positive cash flow from operations at minimus areas of the territory, but they are proposing to provide the end of the forecast period. which may be significant with respect to broadband service and submit If an applicant has no existing debt, households involved, to larger areas of information detailing where state is not proposing to borrow funds during the service territory, but which may funding has been provided. the forecast period, and is applying only contain few households or businesses, if (E) Connect America Fund Phase II for grant funds, only the current ratio any. As a result, devising a procedure Auction—Auction 903 (CAF II). will be applied and not the TIER or which will cover every overlap Funding for service areas of CAF II DSCR. For this situation, applicants circumstance cannot be done. recipients can only be requested by the must meet the minimum current ratio Nevertheless, it is the agency’s intent to entity that is receiving the CAF II requirement. make as many eligible applications support, and such funding is limited to viable for consideration as possible. a 100% loan. The CAF II service areas 8. Service Requirements That may mean the agency may: (1) can be found at https:// Facilities funded with grant funds Determine the overlap to be so reconnect.usda.gov and may also be must provide broadband service insignificant that no agency action is found on the FCC web page. proposed in the application for the necessary; (2) request one or more (F) ReConnect Program Awards. composite economic life of the facilities, applications to be revised to eliminate Service areas of companies that received as approved by RUS, or as provided in

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the Award Documents. This includes addition, costs must be reasonable, submitted, except for eligible pre- the grant assets that are funded with a allocable, and necessary to the project. application expenses incurred prior to 50 percent loan and 50 percent Any application that proposes to use the date of the publication date of this combination award. Facilities funded any portion of the award or matching FOA, or as otherwise identified in with loan funds must provide funds for any ineligible costs may be Section D(2)(a)(ii) above; broadband service through the rejected. (iii) To fund an acquisition of an amortization period of the loan. 2. Eligible and Ineligible Costs affiliate, or the purchase or acquisition 9. Application Transparency of any facilities or equipment of an a. Eligible Award Costs affiliate. Note that if affiliated a. Pre-Award Public Notice Award funds may be used to pay for transactions are contemplated in the To ensure transparency for the the following costs: application, approval of the application ReConnect Program, the Agency’s (i) To fund the construction or does not constitute approval to enter mapping tool will include the following improvement of facilities, including into affiliated transactions, nor information from each application and buildings and land, required to provide acceptance of the affiliated be displayed for the public: broadband service, including facilities arrangements that conflict with the (i) The identity of the applicant; required for providing other services obligations under the award documents; (ii) the areas to be served; over the same facilities, such as (iv) To fund the acquisition of a (iii) the type of funding requested; equipment required to comply with system previously funded by RUS; (iv) the status of the application; CALEA; (v) To fund the purchase or lease of (v) the number of households without (ii) To fund reasonable preapplication any vehicle other than those used sufficient access to broadband; and (vi) expenses in an amount not to exceed primarily in construction or system a list of the census blocks to be served. five percent of the award. If an applicant improvements; applied for funding in round one, b. Post-Award Public Notice (vi) To fund broadband facilities preapplication expenses may be eligible leased under the terms of an operating For all approved applications, the for reimbursement under this round of lease or an indefeasible right of use agency will post on its website: The funding if these expenses support the (IRU) agreement; name of the company receiving funding, round two application (i.e., engineering the type of funding received, the design, market survey, subscriber (vii) To fund the merger or location of the proposed funded service projections, etc.). RUS reserves the sole consolidation of entities; area and the purposes of the funding. right to accept or reject expenses (viii) To fund costs incurred in c. Post-Award Reporting associated with round one. Otherwise, acquiring spectrum as part of an FCC preapplication expenses for round two auction or in a secondary market Awardees will be required to submit may be reimbursed only if they are acquisition. Spectrum that is part of a semi-annual reports for three years after incurred after the publication date of system acquisition may be considered the completion of construction on the this FOA, and properly documented. for loan funding; following information: Preapplication expenses must be (ix) To fund facilities that provide (i) The number and location of included in the first request for award mobile services; residences and businesses that will funds and will be funded with either (x) To fund the acquisition of a system receive service at or greater than the grant or loan funds. If the funding requirement for the appropriate funding that is providing sufficient access to category applied for has a grant broadband; category. component, then grant funds will be (xi) To refinance outstanding debt; (ii) the types of facilities constructed used for this purpose; nor and installed; (iii) To fund the acquisition of an (iii) the speed of the data services existing system that does not currently (xii) To fund facilities not required to being delivered; provide sufficient access to broadband provide broadband service. (iv) the average price of the data for upgrading that system to meet the services being delivered in each VII. Application and Submission requirements of this FOA. The cost of proposed service area; and Information the acquisition is limited to 40 percent (v) the broadband adoption rate for of the amount requested. Acquisitions A. Online Application System each proposed service territory, can only be considered in the 100 including the number of new All applications under this FOA must percent loan category; and subscribers generated from the facilities be submitted through the RUS Online (iv) To fund terrestrial-based facilities funded. This information will be used to Application System located at https:// for satellite broadband service, provided analyze the effectiveness of the funding reconnect.usda.gov. Additional the applicant clearly identifies the provided and will allow the Agency to information can be found in the PFSA, demonstrates the ability to track adoption rates as new and Application Guidelines found at the provide 25 Mbps downstream and improved broadband services are being above location. This website will be 3 Mbps upstream simultaneously to provided. updated regularly. every premise in the PFSA, and offers D. Eligible Cost Purposes subscribers reasonable service plans that B. Registration do not cap bandwidth usage. 1. General 1. General Award and matching funds must be b. Ineligible Award Costs Please note the process for requesting used only to pay for eligible costs Award funds may not be used for any a DUNS Number and a cage code could incurred post award, except for of the following purposes: be lengthy, and applicants should not approved pre-application expenses. (i) To fund operating expenses of the wait until it is time to submit an Eligible costs must be consistent with Awardee; application to obtain these. It is the cost principles identified in 2 CFR (ii) To fund costs incurred prior to the recommended applicants immediately 200, subpart E, Cost Principles. In date on which the application was start this process for these.

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2. Dun and Bradstreet Universal 3. A description of the proposed c. addresses the applicant’s ability to Numbering System (DUNS) Number funded service area including the pledge security as required by the award number of premises passed. documents and All applicants must register for a d. addresses the applicant’s ability to DUNS number as part of the 4. Subscriber projections including provide broadband service under state application. The applicant can obtain the number of subscribers for or tribal law. the DUNS number free of charge by broadband, video and voice services and 10. Summary and itemized budgets of calling Dun and Bradstreet. Go to http:// any other service that may be offered; A the infrastructure costs of the proposed fedgov.dnb.com/webform for more description of the proposed service project, including if applicable, the ratio information on assignment of a DUNS offerings, and the associated pricing of loans to grants, and any other sources number or confirmation. DUNS plan that the applicant proposes to offer. of outside funding. The summary must numbers of parent or affiliated 5. A map, utilizing the RUS mapping also detail the amount of matching operations cannot be substituted for the tool located at https:// funds and the source of these funds. If applicant. If a DUNS number is not reconnect.usda.gov of the proposed the matching funds are coming from a provided, the application cannot be funded service areas identifying the third partly, a commitment letter and considered for an award. areas without sufficient access to broadband and any non-funded service support that the funds are available 3. System for Award Management areas of the applicant. must also be submitted. Matching funds (SAM) 6. A description of the advertised must be deposited into the RUS Construction Fund at the closing of the Prior to submitting an application, the prices of service offerings by award. applicant must also register in SAM at competitors in the same area. 11. A detailed description of working https://www.sam.gov/portal/SAM/#1 7. A network design which includes capital requirements and the source of and supply a Commercial and a description of the proposed these funds. Government Entity (CAGE) Code technology used to deliver the 12. Historical financial statements for number as part of the application. SAM broadband service demonstrating that the last four years consisting of a registration must be active with current all premises in the proposed funded balance sheet, income statement, and data at all times, from the application service area can be offered broadband cash flow statement. If an entity has not review throughout the active Federal service, a network diagram, a buildout been operating for four years, historical award funding period. To maintain timeline and milestones for statements for the period of time the active SAM registration, the applicant implementation of the project, and a entity has been operating. must review and update the information capital investment schedule showing in the SAM database annually from the that the system can be built within 5 13. An unqualified, comparative date of initial registration or from the years, all of which must be certified by audited financial statement for the date of the last update. The applicant a professional engineer who is certified previous calendar year from the date the must ensure that the information in the in at least one of the states where there application is submitted. A subsidiary database is current, accurate, and is project construction. The certification can use the consolidated financial complete. If the CAGE Code of the from the professional engineer must statements of the parent organization if applicant is not included in the clearly state that the proposed network the parent guarantees the award as application, the application will not be can deliver the broadband service to all outlined in Section VI.C(1) above. For considered for an award. premises in the proposed funded service governmental entities financial area at the minimum required service statements must be accompanied with C. Contents of the Application level. In addition, if the applicant is certifications as to unrestricted cash that Due to the complexities and the many requesting the points for providing a may be available on a yearly basis to the scenarios that must be addressed, if 100 Mbps upstream and 100 Mbps applicant. multiple applications are submitted, downstream, the certification must also 14. Pro Forma financial analysis, applicants will be limited to ONE state that the proposed system is prepared in conformity with U.S. GAAP application for this FOA. A complete capable of delivering this service to all and the Agency’s guidance on grant application will include the following premises; a list of all required licenses accounting found at https:// information as requested in the RUS and regulatory approvals needed for the www.rd.usda.gov/files/Accounting Online Application System: proposed project and how much the Guidance10.pdf. The Pro Forma should validate the sustainability of the project 1. General information on the applicant will rely on contractors or by including subscriber estimates applicant and the project including: vendors to deploy the network facilities. Note that in preparing budget costs for related to all proposed service offerings; (a) A description of the project that annual financial projections with will be made public consistent with the equipment and materials, RUS’ Buy American requirements apply. balance sheets, income statements, and requirements herein and cash flow statements; supporting (b) The estimated dollar amount of the 8. Resumes of key management assumptions for a five-year forecast funding request. personnel, a description of the period and a depreciation schedule for 2. An executive summary of the organization’s readiness to manage a existing facilities, those facilities funded proposed project. broadband services network, and an with federal assistance, matching funds, organizational chart showing all parent This summary shall include, but not and other funds. This pro forma should organizations and/or holding companies be limited to, a detailed description of indicate the committed sources of (including parents of parents, etc.), and existing operations, discussion about capital funding and include a bridge all subsidiaries and affiliates. key management, description of the year prior to the start of the forecast workforce, description of interactions 9. A legal opinion that: period. This bridge year shall be used as between any parent, affiliated or a. Addresses the applicant’s ability to a buffer between the historical financial subsidiary operation, a detailed enter into the award documents; information and the forecast period and description of the proposed project, and b. describes all material pending is the year in which the application is the source of the matching funds. litigation matters; submitted.

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15. All attachments required in the construction to take place on tribal land. of 20 points. Farms will be counted RUS Online application system; The certification must: (1) Include a using 2017 Census of Agriculture data. 16. A scoring sheet, analyzing the description of the land proposed for use The total area in square miles by county scoring criteria set forth in this FOA; as part of the proposed project; (2) covered by the Proposed Funded 17. A list of all the applicant’s identify whether the land is owned, Service Area will be treated as its own outstanding and contingent obligations, held in Trust, land held in fee simple by analysis area. The mapping tool will including copies of existing notes, loan the Tribe, or land under a long-term calculate the analysis area in square and security agreements, guarantees, lease by the Tribe; (3) if owned, identify miles as a percentage of the total county any existing management or service the land owner; and (4) provide a area in square miles and then multiply agreements, and any other agreements commitment in writing from the land this percentage by the total number of with parents, subsidiaries and affiliates, owner authorizing the applicant’s use of farms located in that county. If there is including but not limited to debt that land for the proposed project. If no more than one county covered by the instruments that use the applicant’s certification is provided, then this area PFSA, the sum of all analysis area(s) assets, revenues or stock as collateral; may be ineligible for funding. will be used to determine the total 18. Compliance with the Agencies 21. Any other information requested number of farms for that PFSA. Farms Environmental Policies and Procedures in the online application system. will be counted using the GIS layer of 7 CFR part 1970 is required. To D. Material Representations located in the RUS mapping tool at: facilitate compliance the applicant must https://reconnect.usda.gov. provide completed Environmental The application, including Questionnaire(s) as prompted by the certifications, and all forms submitted 3. Performance of the Offered Service application system. The questionnaire as part of the application will be treated (20 Points) consists of project descriptions for as material representations upon which For projects that are proposing to environmental review purposes. All RUS will rely in awarding grants and build a network that is capable of project activities, specific project loans. providing at least 100 Mbps locations, and supporting VIII. Application Evaluation Criteria symmetrical service to all premises, 20 documentation, must be provided to points will be awarded. The further the Agencies analysis of A. Evaluation Criteria certification from the Professional potential impacts to the environment. Applications for the 50/50 loan/grant Engineer must certify that the proposed The applicant must supply required combo and the 100 percent grants will system can deliver these speeds to every environmental authorizations and be scored and ranked against the premise in the proposed funded service permits, including those required by the following criteria below. However, area. National Environmental Policy Act of applications that cover the same 4. Businesses (15 Points) 1969, as amended (42 U.S.C. 4321 et proposed service area will be evaluated seq.) (NEPA), the National Historic as described in Section V(C)(5)(b)(i) Applicants will receive 1 point for Preservation Act of 1966, as amended above. If eligible applications receive each business that pre-subscribes for (16 U.S.C. 470 et seq.) (NHPA), and the the same score and funding becomes broadband service up to a maximum of Endangered Species Act of 1973, as limited, the application that is 15 points. Applicants must have the amended (16 U.S.C. 1534 et seq.) (ESA) proposing to serve the highest number owner of the business sign the as applicable. Project maps or site plans of households without sufficient presubscription form provided in the are required to identify cable routes, broadband service will be funded first. application system and submit them as building locations, tower locations, part of their application. equipment locations and all structures 1. Rurality of Proposed Funded Service and facilities that are part of the project. Area (25 Points) 5. Healthcare Centers (15 Points) The Agency will use data provided in Points will be awarded for serving the For every healthcare center served 1 the intake system to complete the least dense rural areas as measured by point will be awarded up to a maximum environmental review for this project, the population of the proposed funded of 15 points. Healthcare centers will be and may require the applicant to service area per square mile or if the counted using the GIS layer located in provide additional information, and proposed funded service area is located the RUS mapping tool at https:// studies post-application. This at least one hundred miles from a city reconnect.usda.gov. For tribal areas not information is needed to assist with an or town that has a population of greater identified in the GIS layer, the tribal efficient and timely review of the than 50,000 inhabitants. If multiple leader of the area can submit environmental requirements. service areas are proposed, the density documentation supporting the number 19. Certification from the applicant calculation will be made on the of healthcare facilities and will receive that agreements with, or obligations to, combined areas as if they were a single 1 point up to a total of 15 points for investors do not breach the obligations area and not the average densities. For every healthcare facility that is to the government under the draft the determination of the location of the identified. A certification that the Award Documents, especially proposed funded service areas, all facilities exist and are being used must distribution requirements, and that any proposed funded service areas must be be submitted by the tribal leader. such agreements will be amended so located at least one hundred miles from 6. Educational Facilities (15 Points) that such obligations are made a city or town that has a population of contingent to compliance with the greater than 50,000. Population For every school served 1 point will Award Documents. Such certification densities of 6 or less or if the proposed be awarded up to a maximum of 15 should also specifically identify which, funded service area is located one points. Schools will be counted using if any, provisions would need to be hundred miles from a city or town of the GIS layer provided in the RUS amended; and 50,000, 25 points will be awarded. mapping tool located at https:// 20. If service is being proposed on reconnect.usda.gov. For tribal areas not tribal land, a certification from the 2. Farms Served (20 Points) identified in the GIS layer, the tribal proper tribal official that they are in Applicants will receive 1 point for leader of the area can submit support of the project and will allow every 10 farms served up to a maximum documentation supporting the number

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of educational facilities and will receive such public notice including the available in evaluating the feasibility of 1 point up to a total of 15 points for following: the project. every educational facility that is 1. The identity of the applicant; D. Treatment of Submitted Information identified. A certification that the 2. A map of each proposed funded facilities exist and are being used must service area showing the rural area The information submitted by an be submitted by the tribal leader. boundaries and the areas without existing service provider will be treated sufficient access to broadband using the as proprietary and confidential to the 7. Essential Community Facilities (15 Agency’s Mapping Tool; extent permitted under applicable law. Points) 3. The amount and type of support E. Notice of Application Is Approved For every essential community facility requested; served 1 point will be awarded up to a 4. The status of the review of the If an application is approved, an maximum of 15 points. Essential application; additional notice will be published on community facilities will be counted 5. The estimated number of the agency’s website that will include using the GIS layer located in the RUS households without sufficient access to the following information: mapping tool at https:// broadband in each service area 1. The name of the entity receiving reconnect.usda.gov. For tribal areas not exclusive of satellite and mobile the financial assistance; identified in the GIS layer, the tribal broadband service; and 2. The type of assistance being leader of the area can submit 6. A description of all the types of received; documentation supporting the number services that the applicant proposes to 3. The purpose of the assistance and of Essential Community Facilities and offer in each service area. the location of the proposed funded will receive 1 point up to a total of 15 service area; and points for every Essential Community B. Notification After the Application 4. The semiannual reports submitted Facility that is identified. A certification Has Been Received under Section X(B)(6)e of this FOA. that the facilities exist and are being The Agency will publish the public X. Evaluation and Processing used must be submitted by the tribal notice on an Agency web page after the Procedures leader. application has been submitted through the online application system and will 8. Opportunity Zones (5 Points) A. Review of Application remain on the web page for a period of Applications will be evaluated using For applications that are proposing to 45 calendar days. The notice will ask provide service in at least part of an area the criteria stated in Section VII.C of existing service providers to submit to this FOA. Public comments received identified as an Opportunity Zone, 5 the Agency, within this notice period, points shall be awarded. Opportunity with respect to an application’s the following information: proposed funded service area will be Zones will be analyzed using the GIS 1. The number of residential and reviewed and evaluated. Eligibility of layer located at https:// business customers within the proposed funded service areas will be reconnect.usda.gov. applicant’s service area currently verified by the Agency. purchasing broadband service, defined 9. State or Tribal Broadband Activity (20 RUS also reserves the right to ask as at a minimum speed of 10 Mbps Points) applicants for clarifying information downstream and 1 Mbps upstream, the and additional verification of assertions For projects that are in a State or tribal rates of data transmission being offered, in the application. For those area that has a broadband plan that has and the cost of each level of broadband applications that RUS has selected for been updated within five years of the service charged by the existing service funding, RUS will send award date of publication of this FOA, 10 provider; documents. points will be awarded. An additional 5 2. The number of residential and points will be awarded for projects business customers within the B. Review of Awardee Operations located in states that do not restrict applicant’s service area receiving voice 1. Entities That Receive Funding Under utilities from delivering broadband and video services and the associated This FOA service, and 5 more points for projects rates for these other services; and located in states that expedite right-of- 3. A map showing where the existing For all entities that receive funding way and environmental requirements. service provider’s services coincide under this FOA, RUS may send a team Applicants will be required to submit with the applicant’s service area using to the awardee’s facilities to complete a evidence from the appropriate State or the Agency’s Mapping Tool. Management Analysis Profile (MAP) of tribal official that a broadband plan has Please note that the Agency will be the entire operation. MAPs are used by been implemented and updated, that contacting any entity that responds to RUS as a means of evaluating an there are no restrictions on utilities the notice and will be requesting Awardee’s strengths and weaknesses providing broadband service, and that additional information such as test and ensuring that awardees are prepared procedures are in place for expediting result that demonstrate that the area in to fulfil the terms of the award. Once an right-of-way and environmental question has sufficient access to applicant accepts an award offer, RUS requirements. If service is proposed in broadband service. may schedule a site visit as soon as multiple states tribal areas, then possible. evidence must be submitted from each C. Agency Determination of Sufficient state or tribal area to get the appropriate Access to Broadband in Proposed 2. Agency Right Not To Advance Funds points. Funded Service Area RUS reserves the right not to advance IX. Notice of Proposed Funded Service The Agency will use the information funds until the MAP has been Areas submitted to determine if there is completed. If the MAP identifies issues sufficient access to broadband in any that can affect the operation and A. The Agency Will Publish a Public part of the proposed funded service completion of the project, those issues Notice of Each Application area. Notwithstanding non-responses by must be addressed to the satisfaction of The application must provide a actual and potential providers, the RUS before funds can be advanced. summary of the information required for Agency will use all information Funding may be rescinded if following

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a MAP, the agency determines that the 5. Servicing equal to or greater than the speed awardee will be unable to meet the a. Awardees must make payments on required for the appropriate funding requirements of the award. the loan as required in the note and category; (ii) The types of facilities constructed XI. Award Administration Information Award Documents. b. Awardees must comply with all and installed; A. Award Notices terms, conditions, affirmative (iii) The speed of the broadband services being delivered; Successful applicants will receive an covenants, and negative covenants contained in the Award Documents. (iv) The average price of the offer letter and award documents from broadband services being delivered in RUS following award notification. 6. Accounting, Monitoring, and each proposed service area; Applicants may view sample award Reporting Requirements (v) The broadband adoption rate for documents at https:// a. Awardees must adopt a system of each proposed service territory, reconnect.usda.gov. accounts for maintaining financial including the number of new B. Administrative Requirements records acceptable to the Agency, as subscribers generated from the facilities described in 7 CFR part 1770, subpart B. funded; and 1. Pre-Award Conditions b. Awardees must submit annual 7. Assistance Instruments No funds will be disbursed under this comparable audited financial statements program until all other sources of along with a report on compliance and a. Terms and conditions of loans, funding have been obtained and any on internal control over financial grants, or loan/grant combinations are other pre-award conditions have been reporting, and management letter in set forth in the non-negotiable standard met. Failure to obtain one or more accordance with the requirements of 7 loan, grant, or loan/grant agreements sources of funding committed to in the CFR part 1773. The Certified Public and the corresponding note, and/or Application or to fulfill any other pre- Accountant (CPA) conducting the mortgage, if applicable, which may be award condition within 90 days of annual audit is selected by the borrower found at https://reconnect.usda.gov. award announcement may result in and must be satisfactory to RUS as set b. Award Documents must be withdrawal of the award. forth in 7 CFR 1773 subpart B—RUS executed prior to any advance of funds. Audit Requirements. c. Sample Award Documents can be 2. Advance Procedures c. Awardees must comply with all found at https://reconnect.usda.gov. reasonable Agency requests to support RUS loan and grant advances are 8. Loan and Loan/Grant Terms and ongoing monitoring efforts. The made at the request of the Awardee Conditions according to the procedures stipulated Awardee shall afford RUS, through its Among others, the following terms in the Award Documents. ALL representatives, reasonable opportunity, shall apply to the loans: MATCHING FUNDS OR CASH at all times during business hours and PROVIDED IN LIEU OF LOAN FUNDS upon prior notice, to have access to and a. Interest Rate the right to inspect: The Broadband MUST BE EXPENDED FIRST, System, any other property encumbered If an applicant is applying for a 100% FOLLOWED BY LOAN FUNDS, AND by the Award Documents, any and all loan, the interest rate shall be fixed at THEN BY GRANT FUNDS, EXCEPT books, records, accounts, invoices, 2%. If an applicant is applying for a 50/ FOR RUS APPROVED PRE- contracts, leases, payrolls, timesheets, 50 loan/grant combination, the loan APPLICATION EXPENSES. Grant funds, cancelled checks, statements, and other shall bear interest at a rate equal to the if any, will be used for eligible documents, electronic or paper of every cost of borrowing to the Department of preapplication expenses only on the kind belonging to or in the possession Treasury for obligations, as determined first advance request. Accordingly, of the Awardee or in any way pertaining by the government, of comparable applications that do not account for to its property or business, including its maturity. The applicable interest rate such advance procedures in the pro subsidiaries, if any, and to make copies will be set at the time of each advance. forma five-year forecast may be rejected. or extracts therefore. b. Repayment Period 3. Construction d. Awardee records shall be retained and preserved in accordance with the Unless the Applicant requests a a. All project assets must comply with provisions of 7 CFR part 1770, subpart shorter repayment period, loans must be 7 CFR part 1788, and 7 CFR part 1970 A. repaid with interest within a period located at https://www.rd.usda.gov/ e. Awardees must submit semiannual that, rounded to the nearest whole year, publications/regulations-guidelines/ reports for 3 years after completion of is equal to the expected Composite regulations, the ReConnect Program the project, which must include the Economic Life of the project assets, as Construction Procedures located at following: determined by RUS based upon https://reconnect.usda.gov, any (1) The purpose of the financing, acceptable depreciation rates, plus three successor regulations found on the including new equipment and capacity years. Acceptable depreciation rates can agency’s website, and any other enhancements that support high-speed be found in the ReConnect Program guidance from the Agency. broadband access for educational Constructions Procedures found at b. The build-out of the project must be institutions, health care providers, and https://reconnect.usda.gov. completed within five years from the public safety service providers c. Amortization Period date funds are made available. Build-out (including the estimated number of end is considered complete when the users who are currently using or Interest begins accruing on the date of network design has been fully forecasted to use the new or upgraded each loan advance. All interest and implemented, the service operations infrastructure); principle payments will be deferred for and management systems infrastructure (2) The progress towards fulfilling the a three-year period starting when funds is operational, and the awardee is ready objectives for which the assistance was are made available to be drawn by the to support the activation and granted, including: Awardee. At the end of the three-year commissioning of individual customers (i) The number of residences and deferral period, accrued interest will be to the new system. businesses that will receive service capitalized and added to the

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outstanding principal, and monthly (ii) All Awardees must repay the grant submit annually updated service area payments will be established in an if the project is sold or transferred maps through the RUS mapping tool amount that amortizes the outstanding without receiving written approval from showing the areas where construction balance in equal payments over the RUS during the service obligation of the has been completed and premises are remaining term of the loan. grant. receiving service until the entire proposed funded service area can d. Build-Out Period 9. Award Terms and Conditions receive the broadband service. At the All proposed construction (including a. Scope end of the project, Awardees must construction with matching and other Awardees are required to comply with submit a service area map indicating funds) and all advance of funds must be the requirements established herein. that all construction has been completed completed no later than five years from Any obligation that applies to the as proposed in the application. If parts the time funds are made available. Awardee shall extend for the life of the of the proposed funded service area have not been constructed, RUS may e. Loan Security award-funded facilities. require a portion of the award to be The loan portion of the award must be b. Sale or Lease of Project Assets rescinded or paid back. adequately secured, as determined by The sale or lease of any portion of the XII. Other Information RUS. Awardee’s facilities must be approved (i) For Corporations and LLC’s, the in writing by RUS. A. Discretionary Awards loan and loan/grant combinations must c. Certifications The government is not obligated to be secured by all assets of the Awardee. make any award as a result of this RUS must be given an exclusive first (i) The Applicant must certify that it is authorized to submit the application announcement and will fund only lien, in form and substance satisfactory projects that are deemed likely to to RUS, on all assets of the Awardee, on behalf of the eligible entity(ies) listed in the Application; that the Applicant achieve the program’s goals and for including all revenues. RUS may share which funds are available. its first lien position with one or more has examined the Application; that all lenders on a pari passu basis, except information in the Application, B. Environmental and National Historic with respect to grant funds, if security including certifications and forms Preservation Requirements submitted, are, at the time furnished, arrangements are acceptable to RUS. Federal Agencies are required to Applicants must submit a certification true and correct in all material respects; that the entity requesting funding will analyze the potential environmental that their prior lender or lienholder on impacts, as required by the NEPA and any Awardee assets has already agreed comply with the terms, conditions, purposes, and federal requirements of the NHPA for Applicant projects or to sign the RUS’ standard intercreditor the program; that no kickbacks were proposals seeking funding. All agreement or co-mortgage found at paid; and that a false, fictitious, or Applicants are required to complete an https://reconnect.usda.gov. Note that fraudulent statement or claim on the Environmental Questionnaire, provide a RUS will not consider sharing assets Application is grounds for denial or description of program activities and to with any related party or affiliate of the termination of an award, and/or submit all other required environmental Awardee. Moreover, given that RUS possible punishment by a fine or documentation as requested in the cannot renegotiate these standard imprisonment as provided in 18 U.S.C. application system or by the Agency agreements, Awardees that are unable to 1001 and civil violations of the False after the application is submitted. It is obtain sign-off on the security Claims Act (31 U.S.C. 3729 et seq.); the Applicant’s responsibility to obtain arrangements may have their awards (ii) The Applicant must certify that it all necessary federal, tribal, state, and rescinded within 60 days of the date the will comply with all applicable federal, local governmental permits and Awardee is made aware of the approval tribal, state, and local laws, rules, approvals necessary for the proposed of its application. regulations, ordinances, codes, orders, work to be conducted. Applicants are (ii) For Tribal entities and and programmatic rules and expected to design their projects so that municipalities, RUS will develop requirements relating to the project, and they minimize the potential for adverse appropriate security arrangements. acknowledges that failure to do so may impacts to the environment. Applicants (iii) Unless otherwise approved by result in rejection or de-obligation of the also will be required to cooperate with RUS in writing, all property and award, as well as civil or criminal the granting agencies in identifying facilities purchased with award funds prosecution, if applicable, by the feasible measures to reduce or avoid any must be owned by the Awardee. appropriate law enforcement identified adverse environmental impacts of their proposed projects. The f. Grant Security authorities. failure to do so may be grounds for not The grant portion of the award must 10. Financial and Compliance Reporting making an award. Applications will be also be adequately secured, as Requirements reviewed to ensure that they contain determined by RUS. Awardees must submit to RUS 30 sufficient information to allow Agency (i) The government must be provided calendar days after the end of each staff to conduct a NEPA analysis so that an exclusive first lien on all grant assets calendar year quarter, balance sheets, appropriate NEPA documentation can during the service obligation of the income statements, statements of cash be submitted to the appropriate federal grant, and thereafter any sale or flow, rate package summaries, and the and state agencies, along with the disposition of grant assets must comply number of customers taking broadband recommendation that the proposal is in with the Uniform Administrative service on a per community basis compliance with applicable Requirements, Cost Principles, and utilizing RUS’ on-line reporting system. environmental and historic Audit Requirements for Federal Awards, These reports must be submitted preservations laws. Applicants codified in 2 CFR part 200. Note that throughout the loan amortization period proposing activities that cannot be this part will apply to ALL grant funds or for the economic life of the facilities covered by existing environmental of an Awardee, regardless of the entity funded with a 100 percent grant. In compliance procedures will be informed status or type of organization. addition, Awardees will be required to after the technical review stage whether

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NEPA compliance and other 4. Executive Order 11375, amending DEPARTMENT OF COMMERCE environmental requirements can Executive Order 11246, Relating to otherwise be expeditiously met so that Equal Employment Opportunity (3 CFR Bureau of Industry and Security a project can proceed within the pt. 102). See 7 CFR pts. 15 and 15b and timeframes anticipated under the 45 CFR pt. 90, RUS Bulletin 1790–1 Proposed Information Collection; ReConnect Program. If additional (‘‘Nondiscrimination among Comment Request; Foreign Availability information is required after an Beneficiaries of RUS Programs’’), and Procedures application is accepted for funding, RUS Bulletin 20–15:320–15 (‘‘Equal AGENCY: Bureau of Industry and funds can be withheld by the agency Employment Opportunity in Security, Department of Commerce. under a special award condition Construction Financed with RUS ACTION: Notice. requiring the Awardee to submit Loans’’); additional environmental compliance 5. The Architectural Barriers Act of SUMMARY: The Department of information sufficient for the Agency to 1968, as amended (42 U.S.C. 4151 et Commerce, as part of its continuing assess any impacts that a project may seq.); effort to reduce paperwork and have on the environment. 6. The Uniform Federal Accessibility respondent burden, invites the general Standards (UFAS) (Appendix A to 41 C. De-Obligation public and other Federal agencies to CFR subpart 101–19.6); and take this opportunity to comment on 7. The Council on Environmental The RUS reserves the right to proposed and/or continuing information Quality Regulations for Implementing deobligate awards to Awardees under collections, as required by the the Procedural Provisions of NEPA and this FOA that demonstrate an Paperwork Reduction Act of 1995. insufficient level of performance, certain related federal environmental DATES: To ensure consideration, written wasteful or fraudulent spending, or laws, statutes, regulations, and comments must be submitted on or noncompliance with environmental and Executive Orders found in 7 CFR 1970. before February 10, 2020. historic preservation requirements. A more complete list of such requirements can be found in the ADDRESSES: Direct all written comments D. Confidentiality of Applicant applicable Award Documents. to Mark Crace, IC Liaison, Bureau of Information Industry and Security, 1401 F. Communications Laws Applicants are encouraged to identify Constitution Avenue, Suite 2099B, and label any confidential and Awardees will be required to comply Washington, DC 20233 (or via the proprietary information contained in with all applicable federal, tribal and internet at [email protected]). their applications. The Agency will state communications laws and Comments will generally be posted protect confidential and proprietary regulations, including, for example, the without change. All Personally information from public disclosure to Communications Act of 1934, as Identifiable Information (for example, the fullest extent authorized by amended, (47 U.S.C. 151 et seq.) the name and address) voluntarily applicable law, including the Freedom Telecommunications Act of 1996, as submitted by the commenter may be of Information Act, as amended (5 amended (Pub. L. 104–104, 110 Stat. 56 publicly accessible. Do not submit U.S.C. 552), the Trade Secrets Act, as (1996), and CALEA. For further Confidential Business Information or amended (18 U.S.C. 1905), the information, see http://www.fcc.gov. otherwise sensitive or protected Economic Espionage Act of 1996 (18 G. Executive Order 13132 information. You may submit attachments to electronic comments in U.S.C. 1831 et seq.), and CALEA (47 It has been determined that this notice Microsoft Word, Excel, or Adobe PDF U.S.C. 1001 et seq.). Applicants should does not contain policies with file formats. be aware, however, that the federalism implications as that term is Consolidated Appropriations Act defined in Executive Order 13132. SUPPLEMENTARY INFORMATION: requires substantial transparency. For I. Abstract example, RUS is required to make H. Authorized Signatories publicly available on the internet a list Only authorized grant and loan This information is collected in order of each entity that has applied for a loan officers can bind the Government to the to respond to requests by Congress and or grant, a description of each expenditure of funds. industry to make foreign availability application, the status of each determinations in accordance with application, the name of each entity I. Paperwork Reduction Act and Section 768 of the Export receiving funds, and the purpose for Recordkeeping Requirements Administration Regulations. Exporters which the entity is receiving the funds. The Information Collection and are urged to voluntarily submit data to Recordkeeping requirements contained support the contention that items E. Compliance With Applicable Laws in this FOA have been approved by controlled for export for national Any recipient of funds under this OMB Control Number 0572–0152. security reasons are available-in-fact, FOA shall be required to comply with Copies of all forms, regulations, and from a non-U.S. source, in sufficient all applicable federal, tribal and state instructions referenced in this FOA may quantity and of comparable quality so as laws, including but not limited to: be obtained from RUS. Data furnished to render the control ineffective. 1. The nondiscrimination and equal by the Applicants will be used to employment opportunity requirements determine eligibility for program II. Method of Collection of Title VI of the Civil Rights Act of benefits. Furnishing the data is Submitted electronically or on paper. 1964, as amended (42 U.S.C. 2000e et voluntary; however, the failure to III. Data seq., 7 CFR pt. 15); provide data could result in program 2. Section 504 of the Rehabilitation benefits being withheld or denied. OMB Control Number: 0694–0004. Act (29 U.S.C. 794 et seq.; 7 CFR pt. Form Number(s): N/A. 15b); Chad Rupe, Type of Review: Regular submission. 3. The Age Discrimination Act of Administrator, Rural Utilities Service. Affected Public: Business or other for- 1975, as amended (42 U.S.C. 6101 et [FR Doc. 2019–26522 Filed 12–9–19; 8:45 am] profit organizations. seq.; 45 CFR pt. 90); BILLING CODE 3410–15–P Estimated Number of Respondents: 2.

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