57077
Rules and Regulations Federal Register Vol. 85, No. 179
Tuesday, September 15, 2020
This section of the FEDERAL REGISTER recipients of a loan, grant, or loan Development, United States Department contains regulatory documents having general guarantee from RD to use up to 10 of Agriculture, 400 Independence applicability and legal effect, most of which percent of the amount provided to Avenue SW, Washington, DC 20250; are keyed to and codified in the Code of construct broadband infrastructure in Telephone: (202) 690.1078; Email: Federal Regulations, which is published under areas not served by minimum [email protected]. 50 titles pursuant to 44 U.S.C. 1510. acceptable level of broadband service. SUPPLEMENTARY INFORMATION: This rule describes the procedures by The Code of Federal Regulations is sold by Executive Summary the Superintendent of Documents. which these agencies will consider projects eligible for special broadband Background authority. DEPARTMENT OF AGRICULTURE Rural Development (RD) is a mission DATES: Effective date: September 15, area within the United States Rural Utilities Service 2020. Department of Agriculture (USDA) Comment date: This rule is being comprised of the Rural Utilities Service 7 CFR Parts 1710, 1779, 1780 and 1783 issued to allow for immediate (RUS), Rural Housing Service (RHS) and implementation of this program. Rural Business-Cooperative Service Rural Housing Service Although this final rule is effective (RBCS). RD’s mission is to increase immediately, comments are solicited economic opportunity and improve the from interested members of the public Rural Business-Cooperative Service, quality of life for all rural Americans. on all aspects of the rule. These RD meets its mission by providing comments must be submitted Rural Utilities Service loans, loan guarantees, grants, and electronically and received on or before technical assistance through more than November 16, 2020. Rural Development Farm Service Agency 40 programs aimed at creating and will consider these comments and the improving housing, businesses, and need for making any revisions as a 7 CFR Parts 1942 and 1980 infrastructure throughout rural America. result of these comments. Part of rebuilding America’s ADDRESSES: Rural Housing Service Comments may be infrastructure is investing in rural submitted on this rule using the broadband. Access to broadband has 7 CFR Part 3570 following method: become essential for the social and • Electronically using the Federal economic benefits it provides to eRulemaking Portal: Go to https:// Rural Business-Cooperative Service American residents, businesses, www.regulations.gov and, in the governments and communities. ‘‘Search Documents’’ box, enter the Rural Utilities Service Broadband is crucial for increased RUS–20–TELECOM–0022 or the RIN health, educational and economic No. 0572–AC50, and click the ‘‘Search’’ 7 CFR Parts 4274, 4279, and 4280 opportunities, as well as for job and button. To submit a comment, choose business creation and growth. [Docket Numbers: RUS–20–TELECOM– the ‘‘Comment Now!’’ button. Broadband can help close the digital 0022] Information on using Regulations.gov, divide between rural and urban including instructions for accessing communities. RD provides a variety of RIN 0572–AC50 documents, submitting comments, and loans and grants to build broadband viewing the docket after the close of the Special Authority To Enable Funding networks and deliver service to rural comment period, is available under the of Broadband and Smart Utility households and businesses, provide ‘‘Help’’ tab at the top of the Home page. Facilities Across Select Rural capital for rural telecommunications In the Docket ID column, select RUS– Development Programs companies and broadband providers. 20–TELECOM–0022 to submit or view On December 20, 2018, Congress AGENCY: Rural Utilities Service, Rural public comments and to view passed The Agricultural Improvement Housing Service, Rural Business- supporting and related materials Act of 2018 (2018 Farm Bill) (Pub. L. Cooperative Service, USDA. available electronically. Information on 115–334). In addition to sweeping ACTION: Final rule; request for using Regulations.gov, including changes in broadband program comments. instructions for accessing documents, authorities, Congress provided for submitting comments, and viewing the special use of funding from other RD SUMMARY: The Rural Utilities Service, docket after the close of the comment programs for broadband deployment in Rural Business-Cooperative Service, and period, is available through the site’s Section 6210, ‘‘Smart Utility Authority Rural Housing Service, agencies that ‘‘User Tips’’ link. for Broadband.’’ The provision granted comprise the Rural Development • Other Information: Additional the Secretary of Agriculture the Mission Area within the United States information about Rural Development discretion to allow recipients of grants, Department of Agriculture, are issuing and its programs is available on the loans, or loan guarantees under RD this final rule to establish the authority internet at http://www.rd.usda.gov. programs to use not more than 10 authorized by Section 6210 of the FOR FURTHER INFORMATION CONTACT: For percent of such funding to finance Agriculture Improvement Act of 2018, inquiries directly related to this broadband infrastructure in areas not which will assist rural families and rulemaking, contact Michele Brooks, served by the minimum acceptable level small businesses in gaining access to Director, Regulations Management of broadband service, as defined in this broadband service by permitting Division, Innovation Center, Rural part, and which will not result in
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competitive harm to a current RD loan, Rural Development Program Cross- Agency will authorize grant funds on a grant, or loan guarantee. While Section References graduated basis. Eligible applicants 6210 only imposes the competitive This rulemaking includes modifying located in smaller communities with harm restriction with respect to RUS each of the individual program lower populations and lower median loan, grant, and loan guarantee regulations to include a cross-reference household incomes may receive a recipients, RD has determined to apply to the new 7 CFR part 1980, subpart M. higher percentage of grant funds. the restriction RD-wide, consistent with These cross-references allow the 7 CFR Part 3575, Subpart A— the statutory guidance on conflicts and Agencies to establish the necessary Community Programs Guaranteed duplications of awards provided in 7 requirements in each of the included Loans. This program provides loan U.S.C. 2204b(d)(2). programs so that the Agencies can guarantees to eligible private lenders to Rural community leaders, businesses successfully carry out the purposes of help build essential community and utilities must consider broadband sec. 6210 of the 2018 Farm Bill. The facilities in rural areas. availability and uses as they plan for, following paragraphs provide a brief 7 CFR Part 4274, Subpart D— and implement, new and improved description of the included programs. Intermediary Relending Program (IRP). facilities and services to support 7 CFR Part 1710—General and Pre- This program provides 1 percent low- community and economic development. Loan Policies and Procedures Common interest loans to local lenders or While integration of communications To Electric Loans and Guarantees. The ‘‘intermediaries’’ that re-lend to technology into a planned investment Electric Program makes loans and loan businesses to improve economic can be used for internal purposes, it can guarantees to finance the construction of conditions and create jobs in rural also serve as a catalyst to rural electric distribution, transmission, and communities. broadband deployment efforts. For generation facilities, including system 7 CFR Part 4279, Subpart B—Business example, investment in health care, improvements to improve electric and Industry Loans. The Business and public safety and businesses can be service in rural areas, as well as demand Industry Guaranteed Loan Program enhanced or leveraged to expand the side management, smart grid, energy bolsters the availability of private credit availability and utilization of advanced efficiency and conservation programs, by guaranteeing loans for rural broadband in rural areas. Smart and on-grid and off-grid renewable businesses. highways can facilitate vehicle to energy systems. 7 CFR Part 4279, Subpart C— infrastructure communications to 7 CFR Part 1779—Water and Waste Biorefinery, Renewable Chemical, and enhance driver safety; smart water Disposal Programs Guaranteed Loans. Biobased Product Manufacturing systems can remotely detect This program provides guaranteed loans Assistance Loans. This program, also contaminants before they pose a health to assist private lenders to provide known as the Section 9003 Program, risk; smart pipelines can report leaks affordable financing to qualified provides loan guarantees to assist in the and structural weaknesses before they borrowers to improve access to clean, development of advanced biofuels, become dangerous; and smart grid reliable water and waste disposal renewable chemicals, and biobased systems deliver enhanced security and systems for households and businesses products manufacturing facilities. energy efficiency, as well as speed in rural areas. 7 CFR Part 1780—Water and Waste 7 CFR, PART 4280, Subpart A—Rural recovery after an electric outage. Economic Development Loan And Through this regulation, RD enables Loans And Grants. This program provides direct loans and grants to fund Grant. This program, also known as limited integration of broadband REDLG, provides funding for rural deployment with other rural clean and reliable drinking water systems, sanitary sewage disposal, projects through local utility investments funded through its broad organizations. USDA provides zero- suite of programs. It does so without sanitary solid waste disposal, and storm water drainage to households and interest loans to local utilities which adding the burden of seeking funding they, in turn, pass through to local through separate program areas. businesses in eligible rural areas. 7 CFR Part 1783—Revolving Funds for businesses (ultimate recipients) for Note however that this regulation is Financing Water And Wastewater projects that will create and retain not intended to affect existing authority Projects (Revolving Fund Program). This employment in rural areas. The ultimate available under Rural Development program helps qualified nonprofits recipients repay the lending utility programs that can fund smart utility and create revolving loan funds that can directly. The utility is then responsible broadband infrastructure. provide financing to extend and for repayment to USDA. Notwithstanding such authority, such improve water and waste disposal 7 CFR Part 4280, Subpart B—Rural funding will be subject to this regulation systems in rural areas. Energy For America Program. This with respect to the public notice and 7 CFR Part 1942, Subpart A— program, also known as REAP, provides reporting requirements contained in this Community Facility Loans. This guaranteed loan financing and grant part when retail broadband service is program provides affordable funding to funding to agricultural producers and provided. develop essential community facilities rural small businesses to purchase or install renewable energy systems or Purpose of the Regulatory Action in rural areas. An essential community facility is defined as a facility that make energy efficiency improvements. The purpose of this regulation is to provides an essential service to the local 7 CFR Part 4280, Subpart E—Rural implement Section 6210 of the 2018 community for the orderly development Business Development Grants. This Farm Bill designed to leverage the of the community in a primarily rural program, also known as RBDG, is federal resources available for the area, and does not include private, designed to provide technical assistance deployment of broadband services in commercial, or business undertakings. and training and other activities leading rural areas. Under Section 6210, the 7 CFR Part 3570, Subpart B— to the development or expansion of Secretary has discretion to allow Community Facilities Grant Program. small and emerging private businesses recipients of RD grants, loan, or loan The purpose of this program is to assist that have fewer than 50 new workers guarantees to a limited amount of funds in the development of essential and less than $1 million in gross for broadband purposes. community facilities in rural areas. The revenue, in rural areas.
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Request for Comments action against the Department or its Executive Order 13771 (82 FR 9339, agencies may be initiated. February 3, 2017) because it is not To enhance program delivery, RD significant under Executive Order seeks input from the public on this rule Executive Order 13132, Federalism 12886. and will consider these comments and The policies contained in this rule do the need for making any revisions as a not have any substantial direct effect on Information Collection and result of them. A final rule, if necessary, States, on the relationship between the Recordkeeping Requirements will be published in the Federal National Government and the States, or The Information Collection and ADDRESSESS Register. Please refer to the on the distribution of power and Recordkeeping requirements contained section on how to submit comments on responsibilities among the various in this rule have been approved by an this rule. levels of government. Nor does this rule emergency clearance under OMB Executive Orders and Other impose substantial direct compliance Control Number 0572–0156. In Certifications costs on State and local governments. accordance with the Paperwork Therefore, consultation with the States Reduction Act of 1995 (44 U.S.C. Executive Order 12372, is not required. chapter 35), Rural Development invites Intergovernmental Review Executive Order 13175, Consultation comments on any aspect of this This rule is excluded from the scope and Coordination With Indian Tribal collection of information including of Executive Order 12372 Governments suggestions for reducing the burden, for which the Agency intends to request (Intergovernmental Consultation), This rule has been reviewed in approval from the Office of Management which may require a consultation with accordance with the requirements of and Budget (OMB). Comments may be State and local officials. See the final Executive Order 13175, ‘‘Consultation submitted regarding this information rule related notice entitled, and Coordination with Indian Tribal collection by the following method: ‘‘Department Programs and Activities Governments.’’ Executive Order 13175 Comments may be submitted on this Excluded from Executive Order 12372’’ requires Federal agencies to consult and interim final rule using the following (50 FR 47034). coordinate with tribes on a government- method: Executive Order 12866, Regulatory to-government basis on policies that • Electronically using the Federal Planning and E.O. 13563, Improving have tribal implications, including eRulemaking Portal: Go to http:// Regulation and Regulatory Review regulations, legislative comments or proposed legislation, and other policy www.regulations.gov and in the ‘‘Search This rule has been determined to be statements or actions that have Documents’’ box, enter the Docket not significant for purposes of Executive substantial direct effects on one or more Number RUS–20–TELECOM–0022 or Order 12866 and E.O. 13563 and, Indian tribes, on the relationship the RIN No. 0572–AC50, and click the therefore, has not been reviewed by the between the Federal Government and ‘‘Search’’ button. To submit a comment, Office of Management and Budget Indian tribes or on the distribution of choose the ‘‘Comment Now!’’ button. (OMB). power and responsibilities between the Information on using Regulations.gov, including instructions for accessing Congressional Review Act Federal Government and Indian tribes. RD has assessed the impact of this rule documents, submitting comments, and Pursuant to the Congressional Review on Indian tribes and determined that it viewing the docket after the close of the Act (5 U.S.C. 801 et seq.), the Office of does not, to our knowledge, have tribal comment period, is available under the Management and Budget designated this implications that require tribal ‘‘Help’’ tab at the top of the Home page. rule as not a major rule, as defined by consultation under E.O. 13175. If a tribe In the Docket ID column, select RUS– 5 U.S.C. 804(2). would like to engage in consultation 20–TELECOM–0022 to submit or view public comments and to view Regulatory Flexibility Act Certification with RD on this rule, please contact RD’s Native American Coordinator at supporting and related materials RD has determined that the (720) 544–2911 or [email protected]. available electronically. Information on Regulatory Flexibility Act is not Additionally, Rural Development using Regulations.gov, including applicable to this rule because the recognizes the challenges of deploying instructions for accessing documents, Agency is not required by 5 U.S.C. 553 broadband in tribal communities. submitting comments, and viewing the or any other provision of law to publish Therefore, Rural Development will docket after the close of the comment a notice of proposed rulemaking with coordinate with USDA’s Office of Tribal period, is available through the site’s respect to the subject matter of this rule. Relations to conduct at least one ‘‘User Tips’’ link. Other Information: Additional Executive Order 12988, Civil Justice listening session to collect information about Rural Development Reform recommendations from tribes on how this program can help tribes address and its programs is available on the This rule has been reviewed under current broadband challenges, and gain internet at http://www.rd.usda.gov. Executive Order 12988, Civil Justice additional insight into the unique Comments are invited on: (a) The Reform. RD has determined that this economic, geographical and political accuracy of the agency’s estimate of rule meets the applicable standards realities that continue to impair access burden including the validity of the provided in section 3 of the Executive to affordable broadband infrastructure methodology and assumption used; (b) Order. In addition, all state and local in many tribal communities. ways to enhance the quality, utility, and laws and regulations that conflict with clarity of the information to be this rule will be preempted. No Executive Order 13771, Reducing collected; and (c) ways to minimize the retroactive effect will be given to this Regulation and Controlling Regulatory burden of the collection of information rule and, in accordance with section Costs on those who are to respond, including 212(e) of the Department of Agriculture Executive Order 13771 directs using appropriate automated, electronic, Reorganization Act of 1994 (7 U.S.C. agencies to control regulatory costs mechanical, or other technological 6912(e)), administrative appeal through a budgeting process. This rule collection techniques on other forms procedures must be exhausted before an is not subject to the requirements of and information technology.
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Title: Special Authority to Enable Estimate of Hours (Burden) per subscription basis from the Funding of Broadband and Smart Utility Response: 1.5 hours. Superintendent of Documents, the Facilities Across Select Rural Estimated Total Annual Burden on United States Government Printing Development Programs. Respondents: 239 hours. Office, Washington, DC 20402–9325, OMB Control Number: 0572–0156. Copies of this information collection telephone number (202) 512–1800 or Type of Request: New. can be obtained from MaryPat Daskal, online at https://beta.sam.gov/. Branch 2 Regulations Management Abstract: The Rural Utilities Service, Unfunded Mandates Rural Business-Cooperative Service, and Division, Innovation Center, Rural Rural Housing Service, agencies that Development, U.S. Department of This rule contains no Federal comprise the Rural Development Agriculture, 1400 Independence Ave. mandates (under the regulatory Mission Area within the United States SW, Stop 1522, Washington, DC 20250. provision of title II of the Unfunded Department of Agriculture, are issuing Phone: 202–720–7853. Mandates Reform Act of 1995) for State, this final rule to establish the authority All responses to this information local, and Tribal governments or the authorized by Section 6210 of the collection and recordkeeping notice will private sector. Therefore, this rule is not Agriculture Improvement Act of 2018. be summarized and included in the subject to the requirements of section This rule describes the procedures by request for OMB approval. All 202 and 205 of the Unfunded Mandates which these agencies will consider comments will also become a matter of Reform Act. projects eligible for special broadband public record. Civil Rights Impact Analysis authority and Smart Utility facilities. E-Government Act Compliance RD has reviewed this rule in The collection of information is accordance with USDA Regulation necessary for RD to determine an RD is committed to the E-Government Act, which requires Government 4300–4, ‘‘Civil Rights Impact Analysis,’’ applicant’s ability to borrow under the to identify any major civil rights terms of the 2018 Farm Bill and agencies in general to provide the public the option of submitting information or impacts the rule might have on program included programs and that the participants on the basis of age, race, applicant complies with statutory, transacting business electronically to the maximum extent possible. color, national origin, sex or disability. regulatory, and administrative eligibility After review and analysis of the rule requirements for loan assistance. As part National Environmental Policy Act and available data, it has been of that submission, applicants are Certification determined that the program purpose, required to provide a service area map, This rule has been examined under application submission and eligibility where applicable, of their entire service RD environmental regulations at 7 CFR criteria, and the issuance of this rule territory. part 1970. RD has determined that this will neither adversely nor Applicants seeking funding to finance is not a major Federal action disproportionately impact very low, low the provision of retail broadband under significantly affecting the environment. and moderate-income populations, the special broadband authority of this Therefore, in accordance with the minority populations, women, Indian part are generally expected to comply National Environmental Policy Act of tribes or persons with a disability, by with the rules related to broadband 1969 (42 U.S.C. 4321 et seq.), an virtue of their race, color, national funding under Title VI of the Rural Environmental Impact Statement is not origin, sex, age, disability, marital, or Electrification Act. To be considered for required. familial status. funding under special broadband authority, applicants must provide: Catalog of Federal Domestic Assistance USDA Non-Discrimination Policy (1) A description of the proposed The programs eligible for special In accordance with Federal civil retail broadband project; broadband authority under this rule are rights law and USDA civil rights (2) a map, where applicable, of the as follows: regulations and policies, the USDA, its proposed service area to be funded • Business and Industry Loan Agencies, offices, and employees, and under smart utility authority of the Program—10.768 institutions participating in or applicant; • Biorefinery Assistance—10.865 administering USDA programs are (3) the amount and type of support • Community Facilities Loans and prohibited from discriminating based on requested by the applicant; Grants—10.766 race, color, national origin, religion, sex, (4) any other information required of • Grant Program to Establish a Fund for gender identity (including gender similar applicants under Title VI of the Financing Water and Wastewater expression), sexual orientation, Rural Electrification Act. Projects—10.864 disability, age, marital status, family/ Fully Searchable Data Base—The • Intermediary Relending Program— parental status, income derived from a applicant information provided will be 10.767 public assistance program, political made part of a fully searchable database • Rural Business Development Grant— beliefs, or reprisal or retaliation for prior which could disclose to the public the 10.351 civil rights activity, in any program or information above. • Rural Economic Development Loans activity conducted or funded by USDA Public Notice Survey—The agency and Grants—10.854 (not all bases apply to all programs). will post a public notice filing on the • Rural Electrification Loans and Loan Remedies and complaint filing agency’s website. Incumbent service Guarantees—10.850 deadlines vary by program or incident. providers in the area may respond to the • Rural Energy for America Program— Persons with disabilities who require public notice filing by providing a 10.868 alternative means of communication for public notice response. • Rural Rental Housing Loans—10.415 program information (e.g., Braille, large Estimated Number of Respondents: • Sec. 538 Rural Rental Housing print, audiotape, American Sign 53. Guaranteed Loans—10.438 Language, etc.) should contact the Estimated Number of Responses per • Water & Waste Disposal Systems for responsible Agency or USDA’s TARGET Respondent: 3. Rural Communities—10.760 Center at (202) 720–2600 (voice and Estimated Total Annual Responses: The Catalog of Federal Domestic TTY) or contact USDA through the 159. Assistance Programs is available on a Federal Relay Service at (800) 877–8339.
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Additionally, program information may 7 CFR Part 1980 PART 1779—WATER AND WASTE be made available in languages other Agriculture, Business and industry, DISPOSAL PROGRAMS GUARANTEED than English. Community facilities, Credit, Disaster LOANS To file a program discrimination assistance, Livestock, Loan programs— ■ complaint, complete the USDA Program agriculture, Loan programs—business, 3. The authority citation for part 1779 Discrimination Complaint Form, AD– Loan programs—housing and continues to read as follows: 3027, found online at http:// community development, Low- and Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 16 _ _ www.ascr.usda.gov/complaint filing moderate-income housing, Reporting U.S.C. 1005. cust.html and at any USDA office or and recordkeeping requirements, Rural ■ 4. Amend § 1779.24 by adding write a letter addressed to USDA and areas. paragraph (f) to read as follows: provide in the letter all of the information requested in the form. To 7 CFR Part 3570 § 1779.24 Eligible loan purposes. request a copy of the complaint form, Administrative practice and * * * * * call (866) 632–9992. Submit your procedure, Fair housing, Grant (f) A borrower is permitted to use up completed form or letter to USDA by: (1) programs—housing and community to 10 percent of the amount provided Mail: U.S. Department of Agriculture, development, Housing, Low- and under this part to construct, improve, or Office of the Assistant Secretary for moderate-income housing, Reporting acquire broadband infrastructure related Civil Rights, 1400 Independence and recordkeeping requirements, Rural to the project financed, subject to the Avenue SW, Washington, DC 20250– areas. requirements of 7 CFR part 1980, 9410; (2) fax: (202) 690–7442; or (3) 7 CFR Part 4274 subpart M. email: [email protected]. USDA is an equal opportunity Community development, Loan PART 1780—WATER AND WASTE provider, employer, and lender. programs—business, Reporting and LOANS AND GRANTS recordkeeping requirements, Rural List of Subjects areas. ■ 5. The authority citation for part 1780 continues to read as follows: 7 CFR Part 1710 7 CFR Part 4279 Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 16 Electric power, Grant programs— Loan programs—business, Reporting U.S.C. 1005. energy, Loan programs—energy, and recordkeeping requirements, Rural Reporting and recordkeeping areas. Subpart A—General Policies and requirements, Rural areas. Requirements 7 CFR Part 4280 7 CFR Part 1779 Business and industry, Energy, Grant ■ 6. Amend § 1780.9 by adding Loan programs, Waste treatment and programs—business, Loan programs— paragraph (h) to read as follows: disposal, Water supply. business, Rural areas. § 1780.9 Eligible loan and grant purposes. 7 CFR Part 1780 Accordingly, for reasons set forth in the preamble, chapters XVII, XVIII, * * * * * Community development, XXXV, and XLII of title 7 of the Code (h) A borrower is permitted to use up Community facilities, Grant programs— of Federal Regulations (CFR) are to 10 percent of the amount provided housing and community development, amended as follows: under this part to construct, improve, or Loan programs—housing and acquire broadband infrastructure related community development, Reporting and Chapter XVII—RURAL UTILITIES to the project financed, subject to the recordkeeping requirements, Rural SERVICE, DEPARTMENT OF requirements of 7 CFR part 1980, areas, Waste treatment and disposal, AGRICULTURE subpart M. Water supply, Watersheds. PART 1710—GENERAL AND PRE- PART 1783—REVOLVING FUNDS FOR 7 CFR Part 1783 LOAN POLICIES AND PROCEDURES FINANCING WATER AND Business and industry, Community COMMON TO ELECTRIC LOANS AND WASTEWATER PROJECTS development, Community facilities, GUARANTEES (REVOLVING FUND PROGRAM) Grant programs—housing and ■ 1. The authority citation for part 1710 ■ 7. The authority citation for part 1783 community development, Reporting and continues to read as follows: recordkeeping requirements, Rural areas continues to read as follows: Waste treatment and disposal, Water Authority: 7 U.S.C. 901 et seq., 1921 et Authority: 7 U.S.C. 1926(a)(2)(B). supply, Watersheds. seq., 6941 et seq. Subpart A—General 7 CFR Part 1942 Subpart C—Loan Purposes and Basic ■ 8. Revise § 1783 to read as follows: Business and industry, Community Policies facilities, Fire prevention, Grant ■ 2. Amend § 1710.106 by adding § 1783.1 What is the purpose of the Revolving Fund Program? programs—business, Grant programs— paragraph (g) to read as follows: housing and community development, This part sets forth the policies and Grant programs—Indians, Indians, Loan § 1710.106 Uses of loan funds. procedures for making grants to programs—agriculture, Loan programs— * * * * * qualified private, non-profit entities to housing and community development, (g) A borrower is permitted to use up capitalize revolving funds for the Loan programs—Indians, Loan to 10 percent of the amount provided purpose of providing financing to programs—natural resources, Reporting under this part to construct, improve, or eligible entities for pre-development and recordkeeping requirements, Rural acquire broadband infrastructure related costs associated with proposed water areas, Soil conservation, Waste to the project financed, subject to the and wastewater projects or with existing treatment and disposal, Water supply, requirements of 7 CFR part 1980, water and wastewater systems, and Watersheds. subpart M. short-term costs incurred for
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replacement equipment, small-scale 1980.1205 Eligible purposes. exists in the service area at the time of extension of services, or other small 1980.1206 Application process and public the request; and capital projects that are not part of the notice requirement. (3) If the recipient does not intend to regular operations and maintenance 1980.1207 Approval to provide retail provide broadband service, and the broadband service. funded facilities will only be used for activities of existing water and 1980.1208 Award procedures and wastewater systems. An eligible entity is compliance. internal use, such as smart utility, there permitted to use up to 10 percent of the 1980.1209 Reporting. shall be no finding of competitive harm amount provided under this part to 1980.1210 OMB Control Number. and the recipient shall be relieved of the public notice provision requirement of construct, improve, or acquire Authority: 7 U.S.C. 1981(e) and 7 U.S.C. broadband infrastructure related to the 908. § 1980.1207 and reporting requirements project financed, subject to the of § 1980.1209. Note that recipients requirements of 7 CFR part 1980, § 1980.1201 Purpose. funding broadband facilities for internal subpart M. This subpart establishes policies and use under an RD program’s existing CHAPTER XVIII—RURAL HOUSING procedures for the review, approval and authority would not be subject to this SERVICE, RURAL BUSINESS- servicing of projects authorized to use part with respect to the 10 percent COOPERATIVE SERVICE, RURAL UTILITIES funding for broadband and smart utility funding limitation; however, if such SERVICE, AND FARM SERVICE AGENCY, facilities (Special Broadband Authority) facilities are contemplated to provide DEPARTMENT OF AGRICULTURE in select Rural Development programs. retail broadband service in the future, This special broadband authority will the public notice requirements of PART 1942—ASSOCIATIONS leverage the federal resources available § 1980.1206(b) and (c) will apply. ■ 9. The authority citation for part 1942 for the deployment broadband services § 1980.1203 Definitions. in rural areas. The Secretary has continues to read as follows Agency. One of the three Rural discretion to allow recipients of RD Development agencies, the Rural Authority: 5 U.S.C. 301; 7 U.S.C. 1989. grants, loans, or loan guarantees to use Housing Service, the Rural Business- a limited amount of funds for broadband Subpart A—Community Facility Loans Cooperative Service or the Rural purposes. Utilities Service. ■ 10. Amend § 1942.17 by revising § 1980.1202 Special broadband and smart Agency head. The Administrator of paragraph (d)(1)(i)(B)(5) to read as utility facility funding. the applicable RD agency. follows: (a) The Secretary, acting directly or Awarding Agency. An agency which § 1942.17 Community facilities. through authority delegated to the RD has received an application for special agency heads, may allow a recipient of broadband authority or has approved an * * * * * application for such authority. (d) * * * an RD grant, loan, or loan guarantee to Broadband service. Any technology (1) * * * use up to 10 percent of project funds for identified by the Secretary as having the (i) * * * any purpose outlined in § 1980.1205 capacity to provide transmission (B) * * * and in compliance with this part. (5) Supplemental and supporting facilities that enable a subscriber to (b) Prior to exercising authority under originate and receive voice, data, structures for other rural electrification this part, the Agency with a request for or telephone systems (including graphics, and video. special broadband authority (the Con Act. The Consolidated Farm and facilities such as headquarters and office Awarding Agency) shall consult with buildings, storage facilities, and Rural Development Act of 1972, as the Administrator of the affected RD codified and amended at 7 U.S.C. 1921 maintenance shops) when not eligible Agency to determine: for Rural Electrification Administration et seq. (1) If the provision of broadband financing. Additionally, a borrower is Minimum acceptable level of service by the recipient (or another permitted to use up to 10 percent of the broadband service. The minimum party under a wholesale broadband amount provided under this subpart to transmission capacity with respect to service agreement) would cause construct, improve, or acquire terrestrial service that will qualify as competitive harm to a current Rural broadband infrastructure related to the broadband service, as published by the Development borrower, grantee, or project financed, subject to the RUS in the Federal Register pursuant to guaranteed lender with respect to an requirements of 7 CFR part 1980, 7 CFR part 1738. If a new minimum active project for broadband deployment subpart M. transmission capacity is published in and provision of services With respect the Federal Register while a request for * * * * * to a current RD awardee in the project smart utility authority is pending, service area that has significantly PART 1980—GENERAL broadband service for the purpose of defaulted on, or not material complied reviewing the request will be defined by ■ 11. Add subpart M, consisting of with its award requirements, the the minimum transmission capacity that §§ 1980.1201 through 1980.1210 to read affected RD agency may make a finding was in effect at the time the request was as follows: of no competitive harm unless it is received by the Agency. necessary to protect the government’s Rural Development (RD). A mission Subpart M—Special Authority To interest; area of the United States Department of Enable Funding of Broadband and (2) If the recipient intends to use the Agriculture (USDA) made up of the Smart Utility Facilities Across Select funds for the provision of retail Rural Housing Service (RHS), Rural Rural Development Programs broadband service and, if so, assist the Business-Cooperative Service (RBCS) agency in providing public notice and and the Rural Utilities Service (RUS). Sec. receiving responses from existing Retail broadband service. For the 1980.1201 Purpose. 1980.1202 Special broadband and smart service providers, as provided in this purposes of this subpart, retail utility facility funding. rule, so that a determination can be broadband service means any 1980.1203 Definitions. made as to whether the minimum broadband service that is provided to 1980.1204 Eligibility. acceptable level of broadband service the public at a charge. Broadband
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Service which is used exclusively by the (n) 7 CFR part 4280, subpart B—Rural website for alternative methods of recipient for its own purposes and is not Energy for American Program; and public notice and responses by existing sold to the public is not retail (o) 7 CFR part 4280, subpart E—Rural service providers related to projects broadband. Broadband service which is Business Development Grants. seeking funding under the special sold to other service providers through broadband authority where the wholesale agreements shall also not be § 1980.1205 Eligible purposes. Administrator determines that existing considered retail broadband service. Recipients may use funds for the costs procedures and systems used by RE Act. The Rural Electrification Act of the construction, improvement, and applicants to RUS’ broadband programs of 1936, as codified and amended at 7 acquisition of broadband facilities and would be impracticable, costly, or U.S.C. 901 et seq. equipment in rural areas, as set forth in impose excessive delay. Secretary. The Secretary of this part. Rural area shall be defined by (e) Additional requirements for Agriculture. the applicable program regulations. guarantees, intermediaries and Special broadband authority. § 1980.1206 Application process and revolving loan programs. In addition to Approval by an RD program to use up public notice requirement. paragraphs (a) through (d) of this to 10 percent of the proceeds of an RD section, participants and recipients of (a) Initial notification to agency for all loan, grant, or loan guarantee for the funds from eligible RD guarantee, programs. Applicants seeking to use purposes of constructing, improving, or intermediary, and revolving loan program funds for eligible purposes acquiring broadband facilities and programs set forth in § 1980.1204 shall under § 1980.1205 must inform the RD equipment in rural areas, whether or not be subject to the following agency at the time of application, except retail or wholesale broadband service requirements: for Smart Grid loans authorized under will be provided. (1) No funds may be issued by Smart utility. The use of broadband the RE Act and 7 CFR part 1710. This program participants to recipients for facilities and equipment that is only is to determine that sufficient funding is special broadband authority without available internally by a recipient available in the applicable program to written approval from the Awarding during the economic life of the assets consider funding this special broadband Agency. financed by an RD loan, grant, or loan authority in addition to the underlying (2) Recipients must apply for special guarantee. RD project. broadband authority on a project-by- (b) Notice for retail broadband. All project basis through program § 1980.1204 Eligibility. applicants that use special broadband participants. Program participants shall Programs eligible to be considered for authority to provide retail broadband serve as the applicant to the Awarding smart utility and broadband service service must provide the following Agency and shall be responsible for authority include RD programs under information, which will be posted ensuring that the public notice, the Rural Electrification Act and the publicly on RUS’ fully searchable reporting and other requirements of this Consolidated Farm and Rural website, in addition to the identity of part are contained in applicable Development Act. Programs included, the applicant and the status of the agreements between the participant and but not limited to, are as follows: application: the recipient. (a) 7 CFR part 1710—General and Pre- (1) A description of the proposed Loan Policies and Procedures Common retail broadband project; § 1980.1207 Approval to provide retail to Electric Loans and Guarantees; (2) A map of the proposed service area broadband service. (b) 7 CFR part 1779—Water and Waste to be funded under smart utility (a) Service area assessment. For Disposal Programs Guaranteed Loans; authority of the applicant; applicants requesting to provide retail (c) 7 CFR part 1780—Water and Waste (3) The amount and type of support broadband service under the special Loans and Grants; requested by the applicant; broadband authority, applications must (d) 7 CFR part 1783—Revolving (4) The estimated number and be posted publicly for 45 days. Funds for Financing Water and proportion of service points in the (1) During the public notice period, Wastewater Projects (Revolving Fund proposed service territory without fixed service providers may voluntarily Program); broadband service, whether terrestrial or submit information required by the RUS (e) 7 CFR part 1942, subpart A— wireless; and Administrator onto the agency’s Community Facility Loans; (5) Any other information required of mapping tool, or alternate methods if (f) 7 CFR part 3575, subpart A— the applicant in a funding notice. determined by the RUS Administrator Community Programs Guaranteed (c) Information available to the public under § 1980.1206(d). Information Loans; for approved applications. For submitted by service providers shall be (g) 7 CFR part 3560—Direct Multi- applications that are approved for the exempt from disclosure pursuant to 5 Family Housing Loans and Grants; provision of retail broadband service U.S.C. 552(b)(2)(B).552. (h) 7 CFR part 3565—Guaranteed under the special broadband authority, (2) If no broadband service provider Rural Rental Housing Program; the following information will be made submits information under paragraph (i) 7 CFR part 3570, subpart B— available to the public: (a)(1) of this section, the agency shall Community Facilities Grant Program; (1) The information provided in consider the number of providers in the (j) 7 CFR part 4274, subpart D— paragraph (a) of this section; proposed service area to be established Intermediary Relending Program (IRP); (2) Each annual report required under by using any other data regarding the (k) 7 CFR part 4279, subpart B— § 1980.1209, which will be redacted to availability of broadband service that Business and Industry Loans; protect any proprietary information; and the RUS may collect or obtain through (l) 7 CFR part 4279, subpart C— (3) Such other information as the reasonable efforts. Biorefinery, Renewable Chemical and Administrator of the RUS deems (b) Use of funds. After review of Biobased Product Manufacturing sufficient to allow the public to information submitted from service Assistance Loans; understand the assistance provided. providers, if any, and all available data (m) 7 CFR, part 4280, subpart A— (d) Alternative methods of public on broadband availability, if the RUS Rural Economic Development Loan and notice. The Administrator of the RUS determines that the minimum Grant Programs; will provide instructions on the RUS acceptable level of broadband service is
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available in the proposed retail service § 1980.1209 Reporting. Authority: 5 U.S.C. 301, 7 U.S.C. 1989. area, the Awarding Agency shall not For three years starting the first approve the use of funds for such January 31st after completion of the Subpart A—Community Programs purpose. The Awarding Agency, broadband project, recipients of funds Guaranteed Loans however, may approve the use of funds used for retail broadband service under ■ 15. Amend § 3575.24 by adding for retail broadband service if: this part must submit the following paragraph (b)(5) to read as follows: (1) Areas with the minimum information each year utilizing RUS’ acceptable level of broadband service online reporting system: § 3575.24 Eligible loan purposes. are eliminated from the proposed (a) Existing network service * * * * * service area; and improvements and facility upgrades, as (b) * * * (2) The applicant covenants that it well as new equipment and capacity (5) A borrower is permitted to use up will not provide service in these areas enhancements that support high-speed to 10 percent of the amount provided with funds from the Awarding Agency. broadband access for educational under this subpart to construct, (c) Use of Funds for wholesale institutions, health care providers, and improve, or acquire broadband broadband service. For applicants public safety service providers; infrastructure related to the project (b) The estimated number of end users requesting that funds be used for financed, subject to the requirements of who are currently using or forecast to wholesale broadband service, the 7 CFR part 1980, subpart M. use the new or upgraded infrastructure; applicant must agree: (c) The progress towards fulfilling the CHAPTER XLII—RURAL BUSINESS- (1) To publicly advertise in the objectives for which the assistance was COOPERATIVE SERVICE AND RURAL service area that broadband service is UTILITIES SERVICE, DEPARTMENT OF granted; AGRICULTURE available at wholesale to any service (d) The number and geospatial provider; and location of residences and businesses PART 4274—DIRECT AND INSURED (2) That the same wholesale contract that will receive new broadband service; LOANMAKING will be used for all service providers (e) The speed and price of the requesting wholesale service and offered Recipient’s broadband service offerings; ■ 16. The authority citation for part at the same per unit price. and 4274 continues to read as follows: (f) The average price of broadband Authority: 5 U.S.C. 301; 7 U.S.C. 1932 § 1980.1208 Award procedures and service in the project’s service area. compliance. note; 7 U.S.C. 1989. § 1980.1211 OMB Control Number. (a) The Awarding Agency will inform Subpart D—Intermediary Relending applicants seeking consideration of The information collection Program (IRP) funding under this part of the agency’s requirements in this part are approved disposition of the applicant’s request; by the Office of Management and ■ 17. Amend § 4274.314 by adding (b) Except as provided in Budget and assigned OMB control paragraph (b)(16) to read as follows: § 1980.1206(e), awards made under this number 0572–0156. § 4274.314 Loan purposes. part shall be managed and serviced by CHAPTER XXXV—RURAL HOUSING the Awarding Agency; SERVICE, DEPARTMENT OF * * * * * (b) * * * (c) Except as provided in AGRICULTURE (16) A borrower is permitted to use up § 1980.1206(e), the Agency shall be to 10 percent of the amount provided responsible for oversight and PART 3570—COMMUNITY PROGRAMS under this subpart to construct, compliance of projects utilizing ■ 12. The authority citation for part improve, or acquire broadband authority under this part; 3570 continues to read as follows: infrastructure related to the project (d) Requirements for providing retail financed, subject to the requirements of broadband service or wholesale Authority: 64 FR 32388, June 17, 1999, unless otherwise noted. 7 CFR part 1980, subpart M. broadband service under §§ 1980.1206, 1980.1207, and this section shall be Subpart B—Community Facilities PART 4279—GUARANTEED made part of the applicable loan or grant Grant Program LOANMAKING agreement between the recipient and the Awarding Agency, or, with respect to ■ 13. Amend § 3570.62 by adding ■ 18. The authority citation for part guarantees and intermediaries, between paragraph (a)(2)(iii) to read as follows: 4279 is revised to read as follows: the program participants and the § 3570.62 Use of grant funds. Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 7 recipients; U.S.C. 310B(a)(2); and 7 U.S.C 8103. (e) The applicable agreement must * * * * * provide that non-compliance with this (a) * * * Subpart B—Business and Industry part or use of funds for retail broadband (2) * * * Loans (iii) A borrower is permitted to use up service or wholesale broadband service to 10 percent of the amount provided ■ 19. Amend § 4279.113 by adding without having received agency under this subpart to construct, paragraph (z) to read as follows: authority to do so as required in this improve, or acquire broadband part, shall: infrastructure related to the project § 4279.113 Eligible uses of funds. (1) Be an automatic event of default financed, subject to the requirements of * * * * * under the applicable agreement; and 7 CFR part 1980, subpart M. (z) A borrower is permitted to use up (2) Require that the associated loan or to 10 percent of the amount provided * * * * * grant funds used in violation of this part under this subpart to construct, be disallowed or returned immediately PART 3575—GENERAL improve, or acquire broadband to the awarding agency or to the infrastructure related to the project program participant for eligible ■ 14. The authority citation for part financed, subject to the requirements of relending. 3575 continues to read as follows: 7 CFR part 1980, subpart M.
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Subpart C—Biorefinery, Renewable (e) An applicant is permitted to use [email protected] or go to https:// Chemical, and Biobased Product up to 10 percent of the amount provided www.archives.gov/federal-register/cfr/ Manufacturing Assistance Loans under this subpart to construct, ibr-locations.html. improve, or acquire broadband FOR FURTHER INFORMATION CONTACT: ■ 20. Amend § 4279.210 by adding infrastructure related to the project Richard Roberts, Federal Aviation paragraph (d)(10) to read as follows: financed, subject to the requirements of Administration, Western Service Center, § 4279.210 Project eligibility requirements. 7 CFR part 1980, subpart M. Operations Support Group, 2200 S. 216th Street, Des Moines, WA 98198; Bette B. Brand, * * * * * telephone (206) 231–2245. (d) * * * Deputy Under Secretary, Rural Development. SUPPLEMENTARY INFORMATION: (10) A borrower is permitted to use up [FR Doc. 2020–19033 Filed 9–14–20; 8:45 am] to 10 percent of the amount provided BILLING CODE 3410–15–P Authority for This Rulemaking under this subpart to construct, The FAA’s authority to issue rules improve, or acquire broadband regarding aviation safety is found in infrastructure related to the project DEPARTMENT OF TRANSPORTATION Title 49 of the United States Code. financed, subject to the requirements of Subtitle I, Section 106 describes the 7 CFR part 1980, subpart M. Federal Aviation Administration authority of the FAA Administrator. * * * * * Subtitle VII, Aviation Programs, 14 CFR Part 71 describes in more detail the scope of the PART 4280—LOANS AND GRANTS [Docket No. FAA–2017–0346; Airspace Agency’s authority. This rulemaking is ■ 21. The authority citation for part Docket No. 17–AAL–2] promulgated under the authority 4280 continues to read as follows: described in Subtitle VII, Part A, RIN 2120–AA66 Subpart I, Section 40103. Under that Authority: 5 U.S.C. 301; 7 U.S.C. 940c; 7 section, the FAA is charged with U.S.C. 1932(c). Amendment of Class E Airspace; Cordova, AK prescribing regulations to assign the use Subpart A—Rural Economic of airspace necessary to ensure the Development Loan and Grant AGENCY: Federal Aviation safety of aircraft and the efficient use of Programs Administration (FAA), DOT. airspace. This regulation is within the ACTION: Final rule. scope of that authority as it modifies ■ 22. Amend § 4280.15 by adding Class E surface area airspace and Class paragraph (i) to read as follows: SUMMARY: This action modifies the Class E airspace extending upward from 700 E surface area airspace and the Class E feet and 1,200 feet above the surface of § 4280.15 Ultimate recipient projects airspace extending upward from 700 the earth at Merle K (Mudhole) Smith eligible for rural economic development feet and 1,200 feet above the surface of Airport, Cordova, AK, in support of IFR loan funding. the earth at Merle K (Mudhole) Smith operations. * * * * * Airport, Cordova, AK, eliminates History (i) A borrower is permitted to use up references to the Glacier River Non- to 10 percent of the amount provided Directional Beacon (NDB) and updates The FAA published a notice of under this subpart to construct, the Airport’s geographic coordinates to proposed rulemaking in the Federal improve, or acquire broadband match the FAA’s current aeronautical Register (85 FR 35229; June 9, 2020) for infrastructure related to the project database. This action supports Docket No. FAA–2017–0346 to modify financed, subject to the requirements of Instrument Flight Rules (IFR) operations Class E airspace at Merle K (Mudhole) 7 CFR part 1980, subpart M. under standard instrument approach Smith Airport, Cordova, AK, in support and departure procedures in the of IFR operations at the airport. Subpart B—Rural Energy for America National Airspace System. Interested parties were invited to Program participate in this rulemaking effort by DATES: Effective 0901 UTC, December submitting written comments on the ■ 31, 2020. The Director of the Federal 23. Amend § 4280.101 by adding proposal to the FAA. No comments Register approves this incorporation by paragraph (c) to read as follows: were received. reference action under Title 1 Code of § 4280.101 Purpose. Class E airspace designations are Federal Regulations Part 51, subject to published in paragraph 6005 of FAA * * * * * the annual revision of FAA Order Order 7400.11E, dated July 21, 2020, (c) Grants or guaranteed loans, or a 7400.11 and publication of conforming and effective September 15, 2020, which combination grant and guaranteed loan amendments. is incorporated by reference in 14 CFR to a borrower is permitted to use up to ADDRESSES: FAA Order 7400.11E, 71.1. The Class E airspace designation 10 percent of the amount provided Airspace Designations and Reporting listed in this document will be under this subpart to construct, Points, and subsequent amendments can published subsequently in the Order. improve, or acquire broadband be viewed online at https:// infrastructure related to the project www.faa.gov/air_traffic/publications/. Availability and Summary of financed, subject to the requirements of For further information, you can contact Documents for Incorporation by 7 CFR part 1980, subpart M. the Airspace Policy Group, Federal Reference Subpart E—Rural Business Aviation Administration, 800 This document amends FAA Order Development Grants Independence Avenue SW, Washington, 7400.11E, Airspace Designations and DC 20591; telephone: (202) 267–8783. Reporting Points, dated July 21, 2020, ■ 24. Amend § 4280.417 by adding The Order is also available for and effective September 15, 2020. FAA paragraph (e) to read as follows: inspection at the National Archives and Order 7400.11E is publicly available as Records Administration (NARA). listed in the ADDRESSES section of this § 4280.417 Project eligibility. For information on the availability of document. FAA Order 7400.11E lists * * * * * FAA Order 7400.11E at NARA, email Class A, B, C, D, and E airspace areas,
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