Federal
Register / Vol. 56, No. 226 / Friday, November 22, 1991
/ Rules and Regulations / 59168
DEPARTMENT
OF COMMERCE
National Telecommunications and Information Administration
15 CFR Part
2301
[Docket No. 91 0636-1246]
Public Telecommunications
Facilities Program (PTFP)
AGENCY:
National Telecommunications and Information Administration
(NTIA), Commerce.
ACTION:
Final rules.
Table of Contents
Summary
Effective
Date
Supplementary
Information
Applicant
Guidelines
Grantee
Responsibilities
List
of subjects in 15 CFR Part 2301
Signed
Changes
ot Part 2301
DEPARTMENT
OF COMMERCE
National Telecommunications
and Information Administration
15 CFR Part
2301
[Docket No.
91 0636-1246]
Public Telecommunications
Facilities Program
AGENCY:
National Telecommunications and Information Administration
(NTIA), Commerce.
ACTION:
Final rules.
SUMMARY: This document revises and clarifies the
rules and appendix governing administration of the Public
Telecommunications Facilities Program (PTFP). PTFP is authorized
to provide matching grants to plan and construct public
telecommunications facilities.1/
In 56 FR 38007 published August 9, 1991, the EFFECTIVE
DATE: December 23, 1991.
SUPPLEMENTARY INFORMATION: In response to the Notice
of Proposed Rulemaking [56 FR 38007, August 9, 1991], NTIA
received comments from 11 different organizations.2/
In the Notice, NTIA divided the clarifications and revisions
into two broad categories, Applicant Guidelines and Grantee
Responsibilities. Clarifications or revisions for Applicant
Guidelines were proposed under the following headings --
Priorities, Catastrophic Damage, Additional Information
for Applications, Withdrawals and Deferrals, Appropriate
Applicant/PTFP Contact, Filing of FCC Applications, Support
for Salary Expenses, Premature Obligation of Non-Federal
Funds, and Assurances. Clarifications or revisions of Grantee
responsibilities were proposed under the headings Site Right
Documentation and Administration of Federal Grant Funds
and Control and Use of Facilities.
No opposition
was received to many of NTIA's proposed changes to the
regulations, including the following: Priority 1B, deletion
of the reference in the 1987 rules to "cable penetration"
in the criteria used to determine the priority of television
station activations; Priority 2, clarification of the
criteria by expressly including "urgency" in the discussion
of funding considerations; addition of 2301.15(f), which
clarifies appropriate applicant-NTIA contacts during the
application review period; additional assurances in 2301.5(d)(2)(xx)
required of applicants regarding the maintenance of a
drug-free workplace and disclosure of lobbying activities;
and the reinsertion and revision of several sections regarding
administrative procedures to place all PTFP Rules and
requirements in one convenient document. These sections
are 2301.11(a) -- public availability of PTFP applications;
2301.16(d) -- method of calculation of final total project
cost; 2301.18 -- Payment of the Federal Grant, 2301.19
-- Retention of Records; 2301.20 -- Completion of Projects;
2301.21 -- Annual Status Report for Construction Projects;
2301.22 -- Conditions Attached to the Federal Grant; 2301.23
-- Grant Suspensions, Terminations, and Transfers; and
2301.24 -- Equipment. The proposed changes have been incorporated
into the Final Rules.
APPLICANT GUIDELINES
A. Priorities
Priority 1C
- Downlinks
There was
widespread support for NTIA's proposal to establish Priority
1C for satellite downlinks that would provide the first
satellite-distributed public radio programming to the
applicant's service area.3/
NFCB and IBS recommended that all downlinks be
included in Priority 1. Both respondents cited "diversity
of program service"4/
as supporting expansion of this Priority to include all
radio downlink applications. NTIA recognizes the desirability
of providing diverse program radio services to an area,
but believes that the current ranking of Priority 2, to
maintain the sole broadcast signal in an area, and Priority
3, to establish the first local service in an area, accurately
reflect the objectives of the Act.5/
For this reason, NTIA has created a new category, Priority
4A, with which to highlight the need for satellite downlinks
for stations in areas already served by another public
radio station (discussed below).
RMCPB proposed
that, for consistency, Priority 1C should be applied to
low-power television as well.6/
NTIA's establishment of Priority 1C was done in response
to the recommendations of the Public Radio Expansion Task
Force, to actions by the Corporation for Public Broadcasting,
and to actions by operators of the public radio satellite
distribution system to promote access to satellite-distributed
programming by small public radio stations. While NTIA
is unaware of any similar need on the part of low-power
public television stations, the Agency agrees that the
policy should include both radio and television facilities
that can provide the first nationally distributed programming
to an unserved area. The language of Priority 1C has been
changed to add television in the Appendix to the Final
Rules.
OSBE proposed
that NTIA make broadcast equipment replacement, especially
transmission equipment, the PTFP's first priority, in
place of the NTIA's current Priority 1, which is the establishment
of a first radio and television signal to an unserved
geographic area. OSBE's purpose in making this proposal
was "to recognize and reinforce congressional intent in
establishing and maintaining support for PTFP as a vital
means of providing universal public broadcasting services
to the American public."7/
NTIA believes, however, that the current Priority 1 reflects
the basic goal of the legislation authorizing the PTFP,
which emphasizes that the extension of service to unserved
areas is the primary of the three purposes for the PTFP.8/
Congress has also explicitly stated that "PTFP's primary
goal must be to ensure that unserved areas of the country
receive access to public broadcast programming to the
maximum extent practicable".9/
NTIA will continue, therefore, to assign Priority 1 status
only to projects that will provide first service to unserved
areas.
Priority 4A
- Replacement and Improvement
A number of
respondents commented on NTIA's proposal to accord somewhat
higher status under Priority 4 to applications to replace
or improve equipment from broadcast stations that produce
a high percentage of public broadcasting's nationally-distributed
programming. MPR and the APTS/ PBS joint submission supported
the proposal.10/
NPR, NFCB, RMCPB, and IBS strongly opposed it.11/
Opponents
of the proposal felt that favoritism, or a perception
of favoritism, toward such stations might result from
its implementation. In addition, they expressed the fear
that the proposal would lead to diminished funding for
other projects. RMCPB was concerned with "improvement/replacement
grants to less advantaged stations", while NFCB and IBS
were concerned about "the development and improvement
of emerging stations."
The APTS/PBS
joint submission and the NPR comments noted that the expression
"high percentage of programming" is vague and asked for
a definition. The joint submission also suggested that
the proposal's focus should be exclusively on production-related
equipment and recommended that NTIA consider establishing
a "distribution threshold above which stations would automatically
qualify under Priority 4A".12/
In response,
NTIA observes that any time a cluster of stations is made
the subject of a distinct priority or sub-priority, a
perception of "favoritism" or "discriminatory treatment"
may arise. NTIA asserts, however, that this proposal does
not represent an attempt at favoritism and that the PTFP
record in awarding grants to such stations for these purposes
bears this out and will continue to bear it out.
Admittedly,
this proposal pertains far more to public television than
to public radio. It stems from NTIA's observation that
a disproportionate amount of public television's national
programming originates from a relatively few stations
located in major urban markets served by more than one
public broadcast signal. Given PTFP's priority structure,
applications from these stations -- no matter how urgent
the demonstrated need for replacement equipment -- can
never qualify for a Priority 2. This places these few,
critical stations at a perpetual disadvantage in the competition
for funding. This situation, NTIA thinks, warrants the
slight additional emphasis -- from Priority 4 to Priority
4A -- on such applications. On a related point, NTIA concedes
that the expressions "high percentage" and "significant
amount" are imprecise. Nonetheless, because the universe
of potential beneficiaries is so small, and because the
application of a "percentage-of-programming" yardstick
might be considered by many to be impermissibly arbitrary,
NTIA has concluded that no distribution threshold is called
for. The proposal, with the "significant amount" language,
has thus been retained in the Final Rules.
Finally, NTIA
agrees with APTS and PBS that its intent in suggesting
this Priority 4A subcategory was to assist the stations
in question with production-related equipment and the
language in the Final Rules has been changed accordingly.
The attention
of those who fear that smaller or emerging stations may
be put at a disadvantage by this proposal is directed
to several factors that protect such stations. First,
station activations in unserved areas remain Priority
1. Second, the upgrading and improvement of "emerging"
public radio stations have become a matter of NTIA's special
attention, in good part as a result of the Public Radio
Expansion Task Force deliberations. Third, applications
for equipment replacement from stations in small communities
usually merit a Priority 2, because they generally provide
the sole signal or the only locally originated signal
to a service area. Stations that are located in multi-station
markets and therefore cannot qualify for Priority 2 will
be considered in Priority 4A for equipment replacement.
The stations in multi-station markets and national producers
therefore will be considered in the same Priority in the
Final Rules, just as they were considered in the same
Priority under the 1987 Final Rules.
Priority 4A
- Downlinks
NTIA proposed
that another element of the new Priority 4A would be for
the acquisition of satellite downlinks by public radio
stations in areas already served by one or more full-service
public radio stations. In such situations, the applicant
would have to demonstrate that it would broadcast a program
schedule that would not merely duplicate what is already
available in its service area, and certify that it will
continue to provide such a schedule for a minimum of five
years after project completion.
CPB supported
this proposal.13/
NFCB, NPR, and IBS strongly opposed certain aspects of
it,14/ and RMCPB
raised a question about the five-year certification.15/
NPR, NFCB,
and IBS objected to the program schedule requirement.
IBS commented that "NTIA should not include in its new
rules any PTFP policy that directs or mandates a particular
program schedule in order to secure PTFP funding".16/
NPR characterized
the requirement as "an unprecedented and unwise intervention
into local programming authority".17/
It asserted, "The requirement that a station certify its
program schedule in any way is directly contrary to the
fundamental structure of public broadcasting that was
established by Congress....NTIA's proposal threatens to
compromise the authority over programming that the Federal
government has long delegated solely to the local station
licensee."18/ NPR
also stated that "program content is best judged by the
marketplace" and that a "federal `Big Brother' that reviews
program content and scheduling is inefficient, unwarranted,
and sets a dangerous precedent."19/
NTIA believes
that NPR, IBS, and NFCB have misinterpreted the Agency's
purpose in this proposal and have misread its intentions.
It was never NTIA's design to direct or mandate a program
schedule or pass judgment on its applicants' program content.
The Agency agrees that such actions would be improper.
NTIA does hold, however, that, in a world of scarce Federal
resources and intense competition for those resources,
it has a responsibility to ensure that PTFP's relatively
limited funds are not used to enable a station merely
to offer a community a service that, for all practical
purposes, it already has. NTIA strongly believes that
a grant award for such a purpose would represent wasteful
grants management.
NTIA hastens
to assure the public broadcasting community that in implementing
this proposal it will restrict itself to ensuring that,
in the most general terms, the program schedule of the
applicant in question will not substantially duplicate
the service already provided to the community. The Agency
wishes to emphasize the expression "in the most general
terms". It certainly will not direct or mandate that an
applicant offer "a particular program schedule in order
to secure PTFP funding" nor will it review "program scheduling
and content". NTIA will confine itself to an overview
of an applicant's program schedule and the audience the
applicant wishes to reach with that schedule.
Moreover,
the Agency agrees with NPR that marketplace forces should
play an important role in program selection. If these
forces are not considered, the likelihood of the applicant's
remaining on-air for the full period of Federal interest
in the PTFP-funded equipment is diminished and the Federal
interest in the equipment is to that extent jeopardized.
NTIA suggests, however, that these forces should be considered
before the entity applies for a PTFP grant award and that
its deliberations should be evident in the application,
preferably in the form of a commitment to a non- duplicative
program schedule.
NTIA has thus
retained the requirement that, to be assigned to this
element of the new Priority 4A, the applicant must demonstrate
that its program schedule will not substantially duplicate
that of the other station or stations serving the area.
At the same
time, NTIA has reassessed its proposed requirement that
an applicant in this priority certify that it will continue
to provide an alternative schedule for a minimum of five
years after project completion. This was done in response
to comments from RMCPB and IBS. The former noted the discrepancy
between the five-year certification and the 10-year period
of Federal interest in the project equipment.20/
The latter recommended that successful applicants be required
to submit to PTFP, in lieu of the certification, "an annual
report outlining the programming obtained through use
of the downlink equipment within the past year" for the
first five years of the Federal interest period.21/
NTIA believes
that IBS's recommendation would be at least as burdensome
and more intrusive to grant recipients than would be the
certification. Furthermore, NTIA has concluded that such
a certification is too vague and might give rise to needless
controversy. It has, therefore, deleted references to
a five-year certification and has decided against a five-year
annual reporting requirement.
As noted above,
however, NTIA will review Priority 4A downlink applications
for evidence of a non-duplicative program schedule and
will, to a great extent, rely on such evidence in assigning
the application its priority and in considering its competitiveness.
Priority 4A
- Basic Complement of Equipment
RMCPB and
NPR supported the proposal to place into Priority 4A applications
from public broadcasting stations that have gone on the
air sometime in the preceding five years without PTFP
support and with a complement of equipment well short
of what PTFP considers to be basic for effective operation.22/
NPR pointed
out, however, that NTIA offered no justification for limiting
this proposal to stations that have gone on-air "sometime
in the preceding five years". NPR recommended that this
part of the proposal be deleted. In response, NTIA reassessed
its own thinking on this issue and has concluded that
the five-year limitation was arbitrary and might exclude
from this priority worthy applications from stations that
have been struggling successfully to survive for more
than five years and, having accumulated sufficient funds
to match a Federal grant, are ready to upgrade their services.
The above-quoted phrase has been deleted from the Final
Rules.
Priority 4B
RMCPB expressed
some reservations about NTIA's proposal to move certain
types of station activation projects from the Special
Applications category to Priority 4B, which includes the
improvement and non-urgent replacement of equipment at
any public broadcasting station.23/
The projects of concern to RMCPB would activate public
broadcast stations in areas already served by a station
or stations with local origination capability when the
proposed stations would not merit substantial Special
Consideration because of significant participation by
minorities or women. RMCPB also questioned NTIA's statement
that the change would cluster virtually all broadcast
applications in the Priorities. RMCPB suggested that it
would be more desirable to keep such activation applications
in the Special Applications category because such consideration
"has the virtue of requiring services different from those
in place and responsive to community needs and is thus
consonant with the intent to emphasize unique `service'".
NTIA re-evaluated
its proposal in response to RMCPB's comments and concluded
that such station activation projects fall outside the
logical scope of the five PTFP Priorities. It also noted
that such "second-service" stations, even those without
substantial involvement of women or minorities, often
offer the promise of greatly enriched program service
to a community and, by considering these applications
in Special Applications, PTFP reserves the right to elevate
them in fundability to the level of the highest priorities.
NTIA has decided, therefore, that it is wiser to continue
placing these applications into the Special Applications
category. The proposed change has thus been deleted from
the Final Rules.
Special Applications
WGBH questioned
whether the language of the Special Applications section
is sufficiently inclusive.24/
The comments stressed the importance of extending public
and instructional television to disabled individuals,
especially to the deaf and hearing impaired, the blind
and visually impaired, and to speakers of languages other
than English. They also asked that granting funds for
research and development become part of the PTFP mission,
and that disabled people be accorded the same special
consideration that the PTFP statute accords women and
minorities.25/
These comments reflect a misunderstanding about PTFP.
Accordingly, NTIA takes this opportunity to reduce possible
confusion.
NTIA agrees
with WGBH's general statement that PTFP's central mission
is to extend public telecommunications. This is mandated
by PTFP's authorizing legislation to "extend delivery
of public telecommunications services to as many citizens
of the United States as possible..."26/
WGBH further noted that the PTFP Rules benefit and guarantee
participation of racial and ethnic minorities and women,27/
and urged that disabled Americans get the same benefits.
NTIA is sensitive to the needs of disabled Americans and
will continue to fund projects that benefit them. Until
Congress supplies more specific direction, however, applications
that benefit disabled Americans will have to be evaluated
without the advantage of Special Consideration [see
2301.3].
WGBH also
urged that PTFP grant funds for research and development.
In this matter, NTIA is constrained by the PTFP's authorizing
legislation. The statute authorizes grants for the "planning
and construction of public telecommunications facilities"28/
and specifies that the Federal government shall retain
an interest in any PTFP- funded equipment for a period
of ten years after project completion.29/
These provisions are intended to ensure continuity of
service to the public for a ten-year period. NTIA interprets
this statutory mandate to preclude grants for purposes
of research and development. Also, each year NTIA must
defer almost two thirds of the applications it receives.
Thus, even if the Agency were not restricted by the statutory
mandate noted above, NTIA could not afford to grant PTFP
funds for research and development.
B. Catastrophic Damage
No disagreement
was expressed with NTIA's proposal to establish a process
to timely accept applications from public broadcast stations
that suffer catastrophic damage and need assistance to
restore public telecommunications services to their communities.
APTS and PBS pointed out, however, that the Rule as proposed
might be read as making "stations with legally mandated
self-insurance regimes" ineligible for assistance under
this Rule.30/ This
was not NTIA's intention, and 2301.5(g)(3) has been revised
in the Final Rules.
C. Additional Information for Applications
Three commenters
expressed concern about the elimination of the 45-day
period after the closing date during which applicants
formerly were permitted to submit additional information
and to make minor changes in their applications.31/
The concerns related to the fact that "problems beyond
the applicant's reasonable control may arise and not be
capable of resolution by the PTFP's closing date."32/
NTIA has long recognized that certain documents and information
needed for a full evaluation of an application may not
be available by the closing date if they are to be supplied
by independent third parties. This concern is addressed
in the Final Rules by the requirement that applicants
"must immediately provide...two copies of information
received after the closing date that materially affects
the application" (emphasis supplied) [see
2301.6(b)].
As suggested
by APTS and PBS,33/
NTIA's intent now as in the past is to accept for filing
and evaluation applications that are substantially complete.
The Rules provide that "substantially incomplete applications
will be returned by the Agency" [see
2301.9(c)].
NTIA intends
to continue its established practice of requesting additional
information that may be needed to permit evaluation of
the application, as provided in 2301.6(a).
The Final Rules set a 15-day deadline for applicant response
to such requests. RMCPB was concerned that delays in the
mail could interfere with applicants' ability to meet
the deadline.34/
The deadline was established in order to keep the PTFP
application review and evaluation process on schedule,
and the 15-day period is consistent with the way in which
the PTFP has long handled other notices to applicants
and grantees.
RMCPB asked
that NTIA state explicitly that it will consult with state
telecommunications agencies during review and evaluation
of PTFP applications, and it noted language inconsistencies
in two passages in the Rules -- 2301.7(b)
and 35/
Since it seeks input on applications from such agencies
and the consultation is clearly implied by the requirement
that an applicant serve a copy of its application on these
state agencies [see 2301.7(b)],
NTIA has revised the wording of 2301.12(b)
to state the matter plainly in the Final Rules, as well
as to make consistent the language between it and 2301.7(b)
and 2301.15(b).
RMCPB also
noted a difference in the language of the opening paragraphs
of 2301.13 and 36/
NTIA appreciates having this called to its attention,
and 2301.14 has been changed to
be consistent with D. Withdrawals
and Deferrals of Applications
NPR supported
the addition to the Rules of a provision for the formal
withdrawal of an application without affecting future
funding decisions.37/
In addition, it asked that applicants be notified formally
when their applications are deferred and given the reasons
for the deferral. NTIA presently notifies applicants when
their applications have been deferred and will continue
doing so, but believes it is impractical to write several
hundred "rejection letters" detailing the reasons for
deferral. At the same time, NTIA points out that PTFP
Program Officers are available to discuss deferred or
prospective applications during the period between the
time grants are awarded in one cycle and the closing date
for the next cycle.
RMCPB agreed
that it is desirable to provide for the withdrawal of
an application, but it disagreed with the proposal to
treat requests for deferral as requests for withdrawal.
It saw this as a burden to applicants because they have
to file new applications if they wish to have their projects
considered later. It also described the limit of two reactivations
for any deferred application as "overkill".38/
Since the reactivation of a deferred application requires
the applicant to submit a new application form and to
bring all other elements of the original application up
to date [see 2301.5(e)(4)], NTIA
believes the submission of a completely new application
is a minor issue and it continues to believe that after
three years applicants need to re-evaluate their applications
before they are submitted for a fourth time. The Agency,
therefore, retains the proposed Rule unchanged in the
Final Rules except for the removal of minor discrepancies
in language in 2301.9(g)(1) and
(2). Deferred applications that have been reactivated
two or more times when these Final Rules are published
will be permitted one (1) additional reactivation in the
1992 grant round before a new application must be submitted
in order to receive continued consideration of the same
project.
E. Appropriate Applicant/PTFP Contacts
No comments
were received on NTIA's proposal to formalize a policy
previously distributed to all 1991 applicants. It is restated
here for the convenience of interested parties.
As a publicly
funded discretionary grant program, NTIA must follow procedures
that are fair and impartial to all applicants. To avoid
the appearance of impropriety, NTIA has formalized in
the Final Rules its guidelines on the topic [see
2301.15(f)]. In particular, in order to maintain the
integrity of the application review process, NTIA/PTFP
staff are not authorized to discuss the merits of an application
while it is under review. Some contacts during the grant
review cycle are appropriate, however, and they are indicated
in the Final Rules.
F. Filing of FCC Applications
There was
general support for NTIA's proposals to accept and process
applications for facilities such as television translators
and low-power television stations before FCC construction
permit applications are filed when the FCC's filing "window"
occurs after the PTFP closing date, and to allow later
filing of FCC applications for STL's, remote pick-up units,
C-band downlink facilities, and Very Small Aperture Terminals
(VSATs). APTS and PBS suggested "this provision should
also apply in the future to any other facilities that
may be subject to FCC restrictions on filing dates."39/
It is NTIA's present intention to do so, but prudence
forbids a blanket provision in the PTFP Rules without
the particulars needed for a proper assessment of the
situation. If it concludes that the general principles
behind this Rule should apply to additional FCC filings
in the future, the Agency can advise applicants of this
fact and give instructions on how to proceed in the guidelines
booklet that is included in the application package each
year.
Since the
proposed rule was published, it has come to NTIA's attention
that the FCC has decided to register, instead of license,
C-band satellite downlinks. The FCC requires construction
of the downlinks to be completed within six months of
frequency coordination. NTIA recognizes that it is not
practical for PTFP applicants to complete their frequency
coordination prior to the submission of a PTFP application
and meet the FCC deadline, since the PTFP application
review process itself takes more than six months. Therefore,
NTIA has added a new 2301.8(c) to
indicate that submission of FCC registration for C-band
downlinks must be submitted to PTFP by grantees prior
to, and will be a condition for, the release of Federal
funds for C-band downlink construction.
G. Support for Salary Expenses
No comments
were received on NTIA's proposed clarification of its
policy concerning the support of salary expenses for construction
projects. The statement is repeated here for the convenience
of all interested parties.
NTIA regards
its primary mandate to be funding the acquisition of equipment
and only secondarily the funding of salary expenses, even
when allowed by law. Moreover, NTIA notes that competition
for PTFP funding remains intense. To ensure that PTFP
monies are distributed as effectively as possible in this
competitive atmosphere, NTIA must weigh carefully its
support for any project cost not directly involved with
the purchase of equipment.
Therefore,
NTIA generally will not fund salary expenses, including
staff installation costs, pre-application legal and engineering
fees, and pre-operational expenses of new entities. NTIA
will support such costs only when the applicant demonstrates
that exceptional need exists or that substantially greater
efficiency would result from the use of staff installation
instead of contractor installation [see
2301.17(b)(3)].
As regards
the installation of transmission equipment, NTIA strongly
favors the use of either manufacturer or professional
contractor personnel and commonly funds these costs. NTIA
believes that the value of transmission equipment and
the complicated nature of its installation require expertise
beyond that normally found on station staffs.
NTIA rarely
will support requests for assistance for the installation
of studio and test equipment, whether that installation
is by staff or by contract employees. Such installation
is normally of minimum difficulty, and the associated
installation costs should be absorbed in the recipient's
normal operating budget. Again, NTIA will take into account
demonstrations of exceptional need.
H. Premature Obligation of Non-Federal Funds
RMCPB endorsed
NTIA's proposal to remove the inconsistency between two
references regarding the permissible date for applicant
obligation of non-Federal funds [2301.16(a)(3)
and 2301.16(c)], but recommended that the reference be
to the date when an applicant files its application, rather
than to the NTIA closing date. RMCPB suggested that permitting
applicants to expend the non-Federal portion of the proposed
project upon the filing of the application would result
in significant cost savings due to purchase of equipment
before price increases and in faster completion of projects
due to avoidance of weather delays.40/
In NTIA's
experience few if any applications are submitted more
than a week or two before the closing date. The opportunity
for cost or time savings is therefore minimal. The closing
date for receipt of applications is a uniform date that
applies to all applicants and is included by the Department
of Commerce Office of Federal Assistance, in the official
award document as the effective date when non-Federal
funds may be obligated. It would not be feasible to have
that date be different for every grant awarded, and the
Agency has retained the proposed language in the Final
Rules.
I. Assurances
RMCPB objected
to a change in the wording of 2301.5(d)(2)(vi)
from, "Documentation that the applicant will have, when
needed, the funds to match any grant the Agency may provide,"
to, "Documentation that the applicant will have, when
needed, the funds to construct any facilities for which
the Agency has granted matching funds." RMCPB felt that
the new language is not as "inclusive" as the old.41/
NTIA believes, however, that the new wording is more inclusive
than the old since it requires applicants to certify that
they will have not only the local funds to match a PTFP
grant, if awarded, but also the local funds to pay any
costs that are ineligible for PTFP support, but which
must be paid in order for the project to be constructed.
In a related
area, RMCPB recommended that NTIA change the requirement
that applicants provide information on their Federal and
non-Federal support during the three preceding fiscal
years. [See 2301.5(d)(2)(viii).]
RMCPB finds this requirement "unclear... confusing...considerable
waste of time," and requested "clarification and simplification."42/
NTIA has found
the information contained in the three-year financial
statement (Exhibit A of the PTFP Application Form) to
be useful in evaluating the applicant's financial resources
to construct the requested facility and to continue operating
the facility during the ten-year period of Federal interest.
To lessen the administrative burden on applicants in meeting
this requirement, NTIA not only permits but recommends
that applicants qualified to receive funds from the Corporation
for Public Broadcasting (which is the vast majority of
PTFP applicants) use copies of their CPB Annual Reports
(Schedule A and Certification of Non-Federal Financial
Support) in lieu of the forms provided as Exhibit A by
PTFP. The information contained in the three-year financial
statements is particularly valuable in evaluating applications
from nonbroadcast entities. Since nonbroadcast entities
are eligible to receive PTFP funding only for the construction
or expansion of a facility, they usually do not have a
past history with PTFP and are, therefore, unknown to
the program.
NTIA provides
guidance on submitting this information in the application
material sent to all potential applicants. The material
is updated each year. The guidelines request that if the
entity that is the subject of the PTFP application, such
as a radio station or ITFS facility, is a unit of a larger
institution, such as a university, the information submitted
for the three-year financial statement should pertain
to the revenue of the facility that is the subject of
the application (e.g., an ITFS facility) rather than the
revenue of the larger unit (e.g., a university). Where
revenue information is not available for the entity that
is the subject of the PTFP application, the applicant
should provide revenue information for the entire institution
and should explain the reason for submitting information
for the entire institution.
PTFP staff
is available to provide technical assistance regarding
the completion of the PTFP application form during the
weeks preceding the application closing date. Applicants
are encouraged to contact the PTFP staff regarding clarification
of any aspect of preparation of the PTFP application form.
J. Applicant Debts
Two parties
had negative comments about the way NTIA is required to
treat debt delinquency.43/
The Rules prohibit release of funds to an entity that
has outstanding debts to any agency of the Federal government.44/
The prohibition applies to all sub-units of an entity.
The comments stated that applicants should not be penalized
for the outstanding debts of other sub-units. KCSU feared
that this could penalize an applicant unfairly. NPR suggested
that a waiver provision of OMB Circular A-129 be specifically
incorporated into the PTFP Rule.
The Federal
government's policy is to collect all outstanding debts.
In furtherance of this policy all entities, even those
with many sub-units, are treated as one. The Department
of Commerce may permit waiver of the ban on granting funds
to entities with outstanding debt to the Federal government
"upon a specific determination that it is in the best
interest of the government."45/
As a general matter, NTIA will consider requests for such
waivers. A waiver may be granted if the applicant makes
a strong showing that it is in the best interest of the
government to do so. It should be noted, however, that
the general rule, discussed above, militates against granting
such a waiver except in rare circumstances.
GRANTEE RESPONSIBILITIES
K. Site Rights Documentation
The proposed
new Rules included formalization of a procedural change
for documenting that site rights have been obtained for
a project. The change requires a letter of certification
from a local attorney that the site rights meet PTFP requirements.
RMCPB indicated
that the new site rights Rule appears to be "advantageous
to applicants, but if it allows no alternative to an attorney's
opinion letter, it may unnecessarily increase a new station's
costs."46/ NTIA's
experience with attorney letters of certification is positive.
Site rights can be processed and funds released to grantees
quicker than under the prior system whereby NTIA's Office
of Chief Counsel reviewed each lease or deed. The cost
of the attorney's letter of certification appears to be
minimal. NTIA strongly urges the submission of an attorney's
letter of certification. The Final Rule does provide,
however, for NTIA's right to review site rights documentation
"if deemed necessary".
Based on further
consideration, NTIA takes this opportunity to revise the
timing of when the attorney's letter of certification
is required. NTIA formerly required site rights to be
obtained prior to the submission of an application, but
this posed difficulties for applicants who were reluctant
to purchase property or enter into a lease before knowing
whether a project would be funded. Section 2301.5(d)(2)(ix)
has been changed to require that the application include
a letter or letters of intent with the prospective lessor
or seller, if the applicant does not already have rights
to the necessary site(s). NTIA will expect grantees to
finalize the site rights within six months of the beginning
of the project period. Language regarding the attorney's
certification has been relocated from 2301.5(d)(2)(ix)
to a new 2301.22(a)(4). This section
indicates that the attorney's letter of certification
will not be required until after an award is made, and
will be a condition for the release of Federal funds for
the project.
L. Administration of Federal Grant Funds and Control
and Use of Facilities
APTS and PBS
questioned NTIA's requirement that an initial lien on
grant-funded equipment be filed with the Federal government
within 90 days of the start of the project period, usually
before any equipment is purchased or Federal funds expended.
[See 2301.22(a)(2).] After project
completion, NTIA requires the filing of a lien that includes
manufacturers' names and the model and serial numbers
of equipment actually purchased as a result of the competitive
bidding process. APTS and PBS indicated that this "two
step process...is an unnecessary and expensive burden
on grantees."47/
NTIA believes that the initial lien, which usually costs
only a nominal filing fee, is not an expensive burden.
In any event, it is necessary to protect adequately the
Federal interest in the equipment. Completion of PTFP-funded
projects often takes two years or longer. Delay in filing
a lien on the Federally funded equipment until the project
is completed would leave the Federal interest in the equipment
unprotected for a lengthy period. Further, the initial
lien, filed within 90 days of the start of a project,
protects the Federal interest on equipment in the event
that the project is not completed by the end of the award
period.
M. Equipment
NPR raised
several issues regarding NTIA's standard for equipment
purchased with PTFP funding. NPR said that "NTIA's historic
reliance on the phrase `professional broadcast equipment'
no longer ensures high quality, reliability, or durability."48/
NPR recommended that NTIA provide applicants with an "NTIA-sanctioned
list of equipment, by make and model numbers,...to ensure
that their equipment selections will meet fully NTIA's
standards for performance quality, reliability and durability."
49/
NTIA supplements
the "professional broadcast quality" standard mentioned
in 2301.24 with detailed equipment
lists contained in the guideline materials sent to all
potential applicants. These equipment lists, which ran
14 pages in the 1991 application guidelines, are updated
each year and are developed by NTIA after consultation
with national public telecommunications organizations
and from feedback from grantees. The field of telecommunications
equipment is vast and constantly changing. NTIA does not
believe it practical to establish a list of all approved
equipment by make and model numbers as proposed, and also
believes that such a list, if prepared, would be of limited
use. Many PTFP grantees indicate that items on the approved
equipment list must be changed simply because new equipment
is introduced between the time the application is prepared
and the time that equipment is purchased. NTIA encourages
applicants to discuss their equipment proposals with PTFP
staff before submission of applications. NTIA also encourages
grantees to contact PTFP regarding possible changes in
the equipment list in response to the availability of
new equipment on the market.
NPR also suggested
that frequent changes in equipment product lines, particularly
in broadcast studio equipment, coupled with significant
advances in consumer electronics, may warrant NTIA's review
of the Federal 10-year interest in PTFP funded equipment.50/
NPR recognized that NTIA's ten-year interest is based
statutory51/ and
encouraged NTIA to conduct a detailed agency review which
could lead to a revision of the statute. NTIA appreciates
NPR's view on this issue and will take its recommendation
under advisement.
N. Discrimination
PTFP requires
grantees to provide information on any pending discrimination
complaints or adverse judgments. For non-profit institutions,
colleges or universities the discrimination information
must cover the entire organization. State or municipal
agencies, however, report only for themselves, not the
entire state or municipal government [see
2301.21(b)(1)(ii)]. RMCPB called the distinction inequitable
and discriminatory.52/
The distinction
is statutory, and NTIA has no discretion to change it.
Congress directed Federal agencies such as NTIA that extend
financial assistance to prevent discrimination on the
basis of race, color or national origin.53/
Congress then mandated, for the purposes of the statute,
that the operations of an entire corporation are included.54/
For state or municipal governments only the operations
of "a department, agency, special purpose district, or
other instrumentality of a State or of a local government"
are specified.55/
The PTFP reporting requirements reflect this distinction.
Under Executive
Order (E.O.) 12291, the Department must determine whether
a regulation is a "major" rule within the meaning of Section
1 of E.O. 12291 and therefore subject to the requirement
that a Regulatory Impact Analysis be performed. These
rules are not a major rule because it is not "likely to
result in: (1) an annual effect on the economy of $100
million or more; (2) a major increase in costs or prices
for consumer, individual industries...; or (3) significant
adverse effects on competition, employment, investment,
productivity or innovation...." Therefore, preparation
of a Regulatory Impact Analysis is not required.
A Regulatory
Flexibility Analysis is not required under The Regulatory
Flexibility Act (5 U.S.C. 601 et seq.), because as explained
above, the rules were not required to be promulgated as
proposed rules before issuance as final rules by 553 of
the Administrative Procedures Act (5 U.S.C. 553) or by
any other law. This proposed rule does not contain policies
with Federalism implications sufficient to warrant preparation
of a Federalism assessment under Executive Order 12612.
The Department
has determined that these rules will not significantly
affect the quality of the human environment. Therefore,
no draft or final Environmental Impact Statement has been
or will be prepared.
The Office
of Management and Budget has approved the information
collection requirements contained in these rules pursuant
to the Paperwork Reduction Act under OMB Control No. 0660-0003.
Public Reporting for this collection of information is
estimated to vary from 16 hours to 200 hours and has an
average of 125 hours per application, including associated
exhibits. This total includes the time for reviewing instructions,
searching existing data sources, gathering and maintaining
the data needed, and completing and reviewing the collection
of information. Send comments regarding this burden estimate
or any other aspect of this collection of information,
including suggestions for reducing this burden, to Office
of Policy Coordination and Management, NTIA, U.S. Department
of Commerce, Washington D.C. 20230: and to the Paperwork
Reduction Project (0660-0003), Office of Information and
Regulatory Affairs, Office of Management and Budget, Washington
D.C. 20503.
List of Subjects in 15 CFR Part 2301
Administrative
procedure, Grant programs - communications, telecommunications.
Janice Obuchowski
Administrator
For reasons set out above, Title 15, Chapter XXIII, Part
2301 of the Code of Federal Regulations is revised as set
forth below:
PART 2301 - PUBLIC TELECOMMUNICATIONS FACILITIES PROGRAM
Subpart A - Definitions, Program Purposes and Special Consideration
Sec.
2301.1 Definitions.
2301.2 Program Purposes.
2301.3 Special Consideration.
Subpart B - Eligibility and Application Procedures
2301.4 Eligible Organizations and Projects.
2301.5 Application Procedures.
2301.6 Additional Information.
2301.7 Service of Applications.
2301.8 Federal Communications Commission Authorization.
2301.9 Acceptance for Filing.
2301.10 Appeals.
2301.11 Public Comments.
2301.12 Coordination with Interested Agencies and
Organizations.
2301.13 Funding Criteria for Construction Applications.
2301.14 Funding Criteria for Planning Applications.
2301.15 Action on All Applications.
Subpart C - Federal Financial Participation
2301.16 Amount of the Federal Grant.
2301.17 Items and Costs Ineligible for Federal Funding.
2301.18 Payment of the Federal Grant.
Subpart D - Accountability for Federal Funds
2301.19 Retention of Records.
2301.20 Completion of Projects.
2301.21 Annual Status Report for Construction Projects.
Subpart E - Control and Use of Facilities
2301.22 Conditions Attached to the Federal Grant.
2301.23 Grant Suspensions, Terminations, and Transfers.
2301.24 Equipment.
Subpart F - Waivers
2301.25 Waivers.
Appendix to Part 2301 -- Special Application and Priorities
Authority:
Public Telecommunications Financing Act of 1978, Pub. L.
95-567, 92 Stat. 2405, codified at 47 U.S.C. 390- 394, 397-399b;
and the Public Broadcasting Amendments Act of 1981, Pub.
L. 97-35, 95 Stat. 725, and the Consolidated Omnibus Budget
Reconciliation Act of 1985, Pub. L. 99-272, 5001, 100 Stat.
82, 117 (1986). The Public Telecommunications Act of 1988,
Pub. L. 100-626, 102 Stat. 3207 (1988).
Subpart A
- Definitions, Program Purposes and Special Consideration
2301.1 Definitions
"Act"
means Part IV of Title III of the Communications Act of
1934, 47 U.S.C. 390-394 and 397-399b, as amended.
"Administrator"
means the Assistant Secretary for Communications and Information
of the United States Department of Commerce.
"Agency"
means the National Telecommunications and Information
Administration of the United States Department of Commerce.
"Broadcast"
means the distribution of electronic signals to the public
at large using television (VHF or UHF) or radio (AM or
FM) technologies.
"Construction"
(as applied to public telecommunications facilities) means
acquisition (including acquisition by lease), installation,
and improvement of public telecommunications facilities
and preparatory steps incidental to any such acquisition,
installation or improvement.
"Department"
means the United States Department of Commerce.
"FCC"
means the Federal Communications Commission.
"Federal
interest period" means the period of time during which
the Federal government retains a reversionary interest
in all facilities constructed with Federal grant funds.
This period begins with the purchase of the facilities
and continues for ten (10) years after the official completion
date of the project.
"Nonbroadcast"
means the distribution of electronic signals by a means
other than broadcast technologies. Examples of nonbroadcast
are Instructional Television Fixed Service (ITFS), teletext,
and cable.
"Noncommercial
educational broadcast station" or "public broadcast
station" means a television or radio broadcast station
that is eligible to be licensed by the FCC as a non-commercial
educational radio or television broadcast station and
that is owned (controlled) and operated by a state, a
political or special purpose subdivision of a state, public
agency or nonprofit private foundation, corporation, institution,
or association, or owned (controlled) and operated by
a municipality and transmits only noncommercial educational,
cultural or instructional programs.
"Noncommercial
telecommunications entity" means any enterprise that
is owned (controlled) and operated by a state, a political
or special purpose subdivision of a state, a public agency,
or a nonprofit private foundation, corporation, institution,
or association; and that has been organized primarily
for the purpose of disseminating audio or video noncommercial
educational, cultural or instructional programs to the
public by means other than a primary television or radio
broadcast station, including, but not limited to, coaxial
cable, optical fiber, broadcast translators, cassettes,
discs, satellite, microwave or laser transmission.
"Non-Federal
financial support" means the total value of cash and
the fair market value of property and services received,
(1) as gifts,
grants, bequests, donations, or other contributions for
the construction or operation of noncommercial educational
broadcast stations, or for the production, acquisition,
distribution, or dissemination of educational, cultural
or instructional television or radio programs, and related
activities, from any source other than (i) the United
States or any agency or instrumentality of the United
States; or (ii) any public broadcasting entity; or,
(2) as gifts,
grants, donations, contributions, or payments from any
State, or any educational institution, for the construction
or operation of noncommercial educational broadcast
stations or for the production, acquisition, distribution,
or dissemination of educational, cultural or instructional
television or radio programs, or payments in exchange
for services or materials with respect to the provision
of educational, cultural or instructional television
or radio programs.
"Nonprofit"
(as applied to any foundation, corporation, institution
or association) means a foundation, corporation, institution,
or association, no part of the net earnings of which inures,
or may lawfully inure, to the benefit of any private shareholder
or individual.
"Operational
cost" means those approved costs incurred in the operation
of an entity or station such as overhead labor, material,
contracted services (such as building or equipment maintenance),
including capital outlay and debt service.
"Pre-operational
expenses" means all nonconstruction costs incurred
by new public telecommunications entities before the date
on which they began providing service to the public, and
all nonconstruction costs associated with the expansion
of existing stations before the date on which such expanded
capacity is activated, except that such expenses shall
not include any portion of the salaries of any personnel
employed by an operating public telecommunications entity.
"PTFP"
means the Public Telecommunications Facilities Program,
which is administered by the Agency. "PTFP Director"
means the Agency employee who recommends final action
on public telecommunications facilities applications and
grants to the Administrator.
"Public
telecommunications entity" means any enterprise which
is a public broadcast station or noncommercial telecommunications
entity and which disseminates public telecommunication
services to the public.
"Public
telecommunications facilities" means apparatus necessary
for production, interconnection, captioning, broadcast,
or other distribution of programming, including but not
limited to studio equipment, cameras, microphones, audio
and video storage or processors and switchers, terminal
equipment, towers, antennas, transmitters, remote control
equipment, transmission line, translators, microwave equipment,
mobile equipment, satellite communications equipment,
instructional television fixed service equipment, subsidiary
communications authorization transmitting and receiving
equipment, cable television equipment, optical fiber communications
equipment and other means of transmitting, emitting, storing,
and receiving images and sounds or information, except
that such term does not include the buildings to house
such apparatus (other than small equipment shelters that
are part of satellite earth stations, translators, microwave
interconnection facilities, and similar facilities).
"Public
telecommunications services" means noncommercial educational
and cultural radio and television programs, and related
noncommercial instructional or informational material
that may be transmitted by means of electronic communications.
It does not include essentially sectarian programming.
"Sectarian"
means that which has the purpose or function of advancing
or propagating a religious belief.
"State"
includes each of the fifty states, the District of Columbia,
the Commonwealth of Puerto Rico, the Virgin Islands, Guam,
American Samoa, the Northern Mariana Islands, and the
Trust Territory of the Pacific Islands.
"System
of public telecommunications entities." means any
combination of public telecommunications entities acting
cooperatively to produce, acquire or distribute programs,
or to undertake related activities.
Section 2301.2 Program Purposes
(a) The Agency's
determination to fund an application and the amount of
the grant awarded shall be governed by whether the application
will, in the following order of priority, result in:
(1) The establishment
of new public telecommunications facilities to extend
services to areas not currently receiving such services;
(2) The
expansion of the service areas of existing public telecommunications
entities; or,
(3) The
improvement of the capabilities of existing licensed
public broadcasting stations to provide public telecommunications
services.
(b) Notwithstanding
paragraph (a) of this section, the Agency may award a grant
to an applicant which is otherwise eligible for funding,
but whose proposal does not specifically meet any of the
purposes enumerated above. Such grant, however, must fulfill
the overall objectives of the Act.
Section 2301.3 Special Consideration
In accordance
with 392(f) of the Act, the Agency will give special consideration
to applications that foster ownership or control of, operation
of, and participation in public telecommunications entities
by minorities and women. The Agency interprets "ownership"
and "owned" as meaning control of an entity through the
possession or exercise of the normal incidents of ownership,
such as participation on the governing board or holding
corporate offices. The Agency will accord special consideration
only where women and/or minorities hold more than fifty
(50) percent control of the applicant. The Agency will
consider the composition of the applicant's governing
body, management levels, or policy-making positions.
Subpart B
- Eligibility and Application Procedures
Section 2301.4 Eligible Organizations and Projects
(a) Eligible
applicants (Construction Grants). In order to apply for
and receive a PTFP Construction Grant, an applicant must
be:
(1) A public
or noncommercial educational broadcast station;
(2) A noncommercial
telecommunications entity;
(3) A system
of public telecommunications entities;
(4) A nonprofit
foundation, corporation, institution, or association
organized primarily for educational or cultural purposes;
or,
(5) A state
or local government or agency, or a political or special
purpose subdivision of a state.
(b) Eligible applicants
(Planning Grants). In order to apply for and receive a PTFP
Planning Grant, an applicant must be:
(1) Any of
the organizations described in paragraph (a) of this section;
or,
(2) A nonprofit
foundation, corporation, institution, or association
organized for any purpose except primarily religious.
(c) Eligible projects.
An applicant that is eligible under paragraphs (a) or (b)
of this section may file an application with the Agency
for a planning or construction grant to achieve the following:
(1) The provision
of new public telecommunications facilities to extend
service to areas currently not receiving public telecommunications
services;
(2) The
expansion of the service areas of existing public telecommunications
entities;
(3) The
establishment of new public telecommunications entities
serving areas currently receiving public telecommunications
services; or,
(4) The
improvement of the capabilities of existing licensed
public broadcast stations to provide public telecommunications
services.
(d) Applicants
must certify whether they are delinquent on any Federal
debt. In accordance with OMB Circular A-129, an applicant
with outstanding accounts receivable with any agency of
the Federal government will not receive an NTIA grant until
the debt is paid or arrangements to repay which are satisfactory
to the government agency in question are made. This includes
debts incurred by sub-units of the applicant other than
the sub-unit that is applying to NTIA, and includes debts
owed to any agency of the Federal government, not just to
the Department or NTIA.
(e) An applicant
whose proposal requires an authorization from the FCC
must be eligible to receive such authorization.
(f) Preliminary
determination of eligibility. In order to obtain a preliminary
determination of applicant or proposal eligibility, a
prospective applicant must send a letter requesting such
determination to the Agency.
(1) The request
letter should be addressed to: PTFP Director, NTIA/DOC,
14th Street and Constitution Avenue, N.W., Room H-4625,
Washington, DC 20230.
(2) In the
request letter the prospective applicant must:
(i) Describe
the proposed project;
(ii) Include
a copy of the organization's articles of incorporation
and bylaws, or other similar documentation, which
specifies the nature and powers of the prospective
applicant (unless the prospective applicant has received
a PTFP grant within the last ten (10) years, in which
case only a copy of the most recent Annual Report
or Quarterly Performance Report and any changes in
the articles of incorporation and bylaws since the
last grant must be provided); and,
(iii)
If the prospective applicant is a nonprofit foundation,
corporation, institution, or association which has
not received a PTFP grant within the previous ten
(10) years, provide a copy of a letter from the Internal
Revenue Service granting the prospective applicant
tax exempt status under 501(c)(3) of the Internal
Revenue Code, or other legal documentation of nonprofit
status.
(3) A favorable
preliminary determination of eligibility does not guarantee
that the Agency will accept a future application for filing
or award a subsequent grant.
(4) A prospective
applicant may appeal an unfavorable preliminary determination
of eligibility to the Administrator under 2301.10.
Section 2301.5 Application Procedures
(a) Address.
The following address should be used for all communications
with the Agency: Public Telecommunications Facilities
Program, NTIA/DOC, 14th Street and Constitution Avenue,
N.W., Room H-4625, Washington, DC 20230.
(b) Application
materials may be obtained from the address listed in paragraph
(a).
(c) Closing
date. The Administrator shall select and publish in the
Federal Register a date by which applications for funding
in a current fiscal year are to be filed.
(d) New applications.
(1) All applications, whether mailed or hand delivered,
must be received by the Agency at the address listed in
the annual Federal Register announcement requesting applications
at or before 5:00 P.M. on the closing date.
(2) A complete
application must include an original and one copy of the
Agency application form with the signature of an officer
of the applicant who is legally authorized to sign for
the applicant, and all the information required by the
Agency application materials, which shall include:
(i) A brief
narrative statement (of not more than four (4) pages)
describing the proposed project with particular attention
to satisfying the appropriate funding criteria as listed
in 2301.13 or 2301.14
of these Rules;
(ii) If
the applicant has not received a PTFP grant within the
previous ten (10) years, a copy of the applicant's articles
of incorporation, bylaws, a list of the members of the
board of directors, and other similar documentation
specifying the nature and powers of the applicant, except
that state or local government entities need only provide
a reference to the statutory or other authority under
which they operate;
(iii) If
the applicant is a nonprofit foundation, corporation,
institution or association which has not received a
PTFP grant within the previous ten (10) years, a copy
of a letter from the Internal Revenue Service granting
the applicant tax exempt status under 501(c)(3) of the
Internal Revenue Code, or other legal documentation
of nonprofit status.
(iv) If
the applicant received a PTFP grant within the previous
ten (10) years, then it must reference the number of
the previous grant, provide a copy of the most recent
Annual Report or Quarterly Performance Report submitted
to the PTFP, and submit a copy of any changes in the
applicant's articles of incorporation or bylaws which
have taken effect since the last grant was awarded;
(v) If the
applicant applied for a preliminary determination of
eligibility and received a positive determination, it
may submit a copy of the official notification from
the PTFP in lieu of the eligibility requirements of
this section;
(vi) Documentation
that the applicant will have, when needed, the funds
to construct any facilities for which the Agency has
granted matching funds;
(vii) Documentation
that the applicant will have the funds necessary to
operate and maintain those facilities once constructed;
(viii) Documentation
of the amount of Federal and non-Federal financial support
received by the applicant organization during each of
the preceding three fiscal years or for the length of
time the organization has been in existence if less
than three years;
(ix) Information
about the applicant's leasehold or ownership rights
to the premises on which the facilities requested will
be located. If the applicant does not yet have an executed
lease or has not purchased the site(s) involved, a copy
of a letter or letters of intent with the proposed lessor(s)
or seller(s) must be filed with the application. The
applicant must have the right to occupy, construct,
maintain, operate, inspect, and remove the project equipment
without impediment, and nothing must prevent the Federal
government from entering the property and reclaiming
or securing PTFP-funded property. The Agency reserves
the right to review an applicant's site rights documents
if deemed necessary;
(x) An inventory
of all equipment (if any) currently owned by the applicant
that corresponds to the type of equipment requested
in the current application or that would be closely
associated with the proposed project. The inventory
should include manufacturers' names, model numbers,
production years, and the dates of acquisition;
(xi) Within
the narrative or as an optional exhibit no longer than
two pages, a five-year plan outlining the applicant's
projected facilities requirements and the projected
costs of such requirements;
(xii) If
special consideration is requested under 2301.3,
information detailing the basis for the request on the
exhibit form provided by the Agency;
(xiii) Copies
of letters transmitting a copy of the application to
each of the entities required under 2301.7;
(xiv) Significant documentation supporting the applicant's
request for equipment, including as necessary the proper
FCC authorization(s) cited in 2301.8
and 2301.9, and if applicable,
documentation indicating high incidence of repair or
periods of inoperability;
(xv) Evidence
that the applicant has participated (or, in the case
of a planning grant, will participate) in comprehensive
planning for the proposed project, including community
involvement, an evaluation of alternate technologies
and coordination with state telecommunications agencies,
if any;
(xvi) Assurance
that during the period in which the applicant possesses
or uses the Federally funded facilities (whether or
not this period extends beyond the Federal interest
period), the applicant will not use or allow the use
of the Federally funded equipment for essentially sectarian
purposes;
(xvii) A
detailed list and explanation of any complaints of discrimination
(see 2301.22(b)(15), below) currently
pending or decided against the applicant before any
court or governmental agency;
(xviii)
A copy of any Environmental Impact Statement or other
environmental assessment document prepared in conjunction
with the proposed project as may be required by any
Federal, state, or local law or regulation;
(xix) Assurance
of compliance with all applicable Federal laws, rules
or regulations relating to the project, as described
on the application form provided by the Agency;
(xx) Assurance
of compliance with all provisions of the Drug-Free Workplace
Requirements and the Certifications for Contracts, Grants,
Loans and Cooperative Agreements found in the application
form;
(xxi) Assurance
that the applicant has taken into account all non-Federal
sources of financial support for this project; that
the non-Federal share stated by the Applicant as being
available for this project is the maximum amount available
from such sources; and that the applicant will initiate
and complete the work within the applicable time frame
after receipt of approval from the Agency; and,
(xxii) Assurance
that the applicant will make the most economical and
efficient use of the Federal funds.
(e) Deferred applications.
(l) An applicant may reactivate an application deferred
by the Agency during the prior year under 2301.15
if the applicant has not substantially changed the stated
purpose of the application.
(2) An applicant
may reactivate a deferred application only during the
two consecutive years following the application's initial
acceptance for filing by the Agency.
(3) To reactivate
a deferred application, the applicant must file the information
described in (4), below, whether mailed or hand delivered,
at or before 5:00 P.M. on the closing date.
(4) To file
a complete reactivation request, the applicant must submit
an original and one copy of the following:
(i) Part I
of the approved Agency application form with the original
signature of an officer of the applicant who is legally
authorized to sign for the applicant, with a notation
of the file number of the earlier application;
(ii) A brief
narrative statement (not more than four (4) pages) describing
the project proposed in the current application;
(iii) An
update of the availability of operating funds and the
necessary non-Federal share of the project;
(iv) An
update of the financial information required by paragraph
(d)(2)(viii) of this section;
(v) A revised
listing of current eligible project costs, if necessary;
(vi) A revised
inventory as described in paragraph (d)(2)(x) of this
section. Applicants having previously submitted an inventory
need submit only updated information;
(vii) A
revised five-year plan as described in paragraph (d)(2)(xi)
of this section outlining the applicant's projected
facilities requirements and the projected costs of such
requirements;
(viii) If
special consideration is requested under 2301.3,
current information detailing the basis for the request
on the exhibit form provided by the Agency;
(ix) Copies
of letters transmitting a copy of the current application
to each of the entities required under 2301.7;
(x) An updated
explanation of any complaints of discrimination currently
pending or decided against the applicant before any
court or governmental agency; and,
(xi) Assurance
of compliance with all applicable Federal laws, rules
or regulations relating to the project, as described
on the application form provided by the Agency.
(f) Deferred applications
that are resubmitted under paragraph (e) of this section
and contain substantial changes will be considered as new
applications and must comply with the requirements of 2301.5(d).
All deferred applications may be subject to a second determination
of eligibility.
(g) Applications
resulting from catastrophic damage. (1) An application
may be filed with a request for a waiver of the closing
date, as provided in 2301.25, when
an eligible broadcast applicant suffers catastrophic damage
to the basic equipment essential to its continued operation
as a result of a natural or manmade disaster and is in
dire need of assistance in funding replacement of the
damaged equipment.
(2) The request
for a waiver must set forth the circumstances that prompt
the request and be accompanied by appropriate supporting
documentation.
(3) A waiver
will be granted only if it is determined that the applicant
either carried adequate insurance or had acceptable self-insurance
coverage.
(4) Applications
filed and accepted pursuant to this paragraph must contain
all of the elements stipulated in paragraphs (d) or (e),
above, and will be subject to the same review and evaluation
process followed for applications accepted for filing
in the normal application cycle, although the Administrator
may establish a special timetable for review and evaluation
to permit an appropriately timely decision.
Section 2301.6 Additional Information
(a) The Agency
may request from the applicant any additional information
that the Agency deems necessary or pertinent. Applicants
must provide to the Agency two copies of any additional
information that the Agency requests within fifteen (15)
days of the date of the Agency's notice.
(b) Applicants
must immediately provide to the Agency two copies of information
received after the closing date that materially affects
the application, including:
(1) State Single
Point of Contact and State Telecommunications Agency comments
on applications;
(2) FCC
file numbers and changes in the status of FCC applications
necessary for the proposed project;
(3) Changes
in the status of proposed local matching funds, including
notification of the passage (including reduction or
rejection) of a proposed state appropriation or receipt
(or denial) of a proposed substantial matching gift;
(4) Changes
in the licensee, in the licensee's board structure,
in the applicant's IRS 501(c)(3) status, or in the applicant's
Articles of Incorporation or Bylaws;
(5) Changes
in the status of proposed production, participation
or distribution agreements (if relevant to the proposed
project);
(6) Changes
in lease or site rights agreements; and
(7) Complete
failure of major items of equipment for which replacement
costs have been requested or changes in the status of
the needs of the equipment requested.
(c) Applicants
must place copies of any additional information submitted
to the Agency in the copy of the application available for
public inspection pursuant to 2301.11.
(d) Potential
grant recipients may be subject to the following Department
Pre-Award Administrative Requirements and Policies:
(1) Name Check
forms (Form CD-346) may be used to ascertain background
information on key individuals associated with potential
grantees. The Name Check requests information to determine
if any key individuals in the organization have been convicted
of, or are under indictment or have been charged with
criminal offenses such as fraud, theft, perjury, or other
matters pertinent to management honesty or financial integrity;
(2) Potential
grantee organizations may also be subject to reviews
of Dun and Bradstreet data or other similar credit checks.
Section 2301.7 Service of Applications
On or before
the closing date all new or deferred applicants must serve
a copy of the application on the following agencies:
(a) In the
case of an application for a construction grant for which
FCC authorization is necessary, the Secretary, Federal
Communications Commission, 1919 M Street, N.W., Washington,
DC 20554;
(b) The state
telecommunications agency(-ies), if any, having jurisdiction
over the development of broadcast and/or nonbroadcast
telecommunications in the state(s) and the community (-ies)
to be served by the proposed project; and,
(c) The state
office established to review applications under Executive
Order 12372 as amended by Executive Order 12416, if
the state has established such an office and wishes to
review these applications.
Section 2301.8 Federal Communications Commission Authorization
(a) Each applicant
whose project requires FCC authorization must file an
application for that authorization on or before the closing
date. Recommended submission date for applications to
the FCC is at least 60 days prior to the closing date.
The applicant should clearly identify itself to the FCC
as a PTFP applicant.
(b) In the
case of FCC authorizations where it is not possible or
practical to submit the FCC license application with the
PTFP application, such as C-band satellite uplinks, low
power television stations and translators, remote pickups,
studio-to-transmitter links, and Very Small Aperture Terminals,
a copy of the FCC application as it will be submitted
to the FCC, or the equivalent engineering data, must be
included in the PTFP application.
(c) Applications
requesting C-band downlinks do not have to submit the
FCC application, or equivalent engineering data, as part
of the PTFP application. When such a project is funded,
however, grantees must submit evidence of FCC registration
of the C-band downlink prior to the release of Federal
funds.
(d) Any FCC
authorization required for the project must be in the
name of the applicant for the PTFP grant.
(e) If the
project is to be associated with an existing station,
FCC operating authority for that station must be current
and valid.
(f) For any
project requiring new authorization(s) from the FCC, the
applicant must file a copy of each FCC application and
any amendments with the Agency.
(g) If the
applicant fails to file the required FCC application(s)
by the closing date, or if the FCC returns, dismisses,
or denies an application required for the project or any
part thereof, or for the operation of the station with
which the project is associated, the Agency may return
the application.
(h) No grant
will be awarded until confirmation has been received from
the FCC that any necessary authorization will be issued.
Section 2301.9 Acceptance for Filing
After the
closing date, the Agency will examine each application
for timeliness, completeness, eligibility, and FCC authorization.
(a) The Agency
will publish a notice in the Federal Register listing
all applications accepted for filing. Acceptance of an
application for filing does not preclude subsequent return
or disapproval of the application, nor does it assure
that the application will be funded. Publication merely
operates to qualify the application to compete for funding
with other applications accepted for filing.
(b) The notice
of acceptance for filing will also include a request for
comments on the applications from any interested party.
The procedural requirements of 2301.11
will be set forth in the notice.
(c) Substantially
incomplete applications will be returned by the Agency.
(d) Any application,
amendment to an application, or request to reactivate
a deferred application that is filed after the closing
date will be returned by the Agency.
(e) When the
Agency finds that either the applicant or the project
is ineligible under the Act and/or these Rules, it will
return the application and inform the applicant of the
denial of eligibility.
(f) If the
Agency finds that a proposed project requires authorization
from the FCC and that the applicant did not tender its
application for such authorization, the Agency will return
the application.
(g) With respect
to requests to withdraw or to defer applications from
consideration:
(1) Applicants
may request withdrawal of an application from consideration
for funding without affecting future funding decisions.
Withdrawn applications will be returned by the Agency.
(2) Applicants
may not request that the Agency defer an application
for subsequent consideration. If such a request is received,
the Agency will treat it as a request for withdrawal.
(h) Deferred applications
that are submitted for reactivation for a third time will
be returned by the Agency.
Section 2301.10 Appeals (a) Within 15 calendar days after
the date on which the Agency sends a written notice to an
applicant denying the eligibility of the applicant or the
proposed project, or notifying an applicant that its application
is substantially incomplete, the applicant may file a written
notice of appeal with the Administrator at the address listed
in 2301.5(a). Applicants may not appeal
the return of applications filed after the closing date.
(b) The notice
of appeal must show that the denial of eligibility or
determination of incompleteness is factually or legally
incorrect. If the applicant relies on any written documents
or other materials to dispute the Agency's action, the
applicant should list and attach a copy of each item or
indicate that the Agency has a copy of the item in its
possession.
(c) Upon receipt
of the notice of appeal, the Administrator will review
the appeal in consultation with the Chief Counsel and
the PTFP Director and will render a written decision within
30 calendar days.
(d) If the
Administrator sustains the denial of eligibility or the
determination of incompleteness, the Agency will return
the application to the applicant.
(e) All decisions
of the Administrator made under paragraph (c) of this
section are final.
Section 2301.11 Public Comments
(a) The applicant
shall make a copy of its application available at its
offices for public inspection during normal business hours.
(b) Any interested
party may file comments with the Agency supporting or
opposing an application and setting forth the grounds
for support or opposition. Such comments must contain
a certification that a copy of the comments has been delivered
to the applicant. Comments must be sent to the address
listed in 2301.5(a).
(c) The Agency
will incorporate all comments from the public and any
replies from the applicant in the applicant's official
file.
Section 2301.12 Coordination with Interested Agencies
and Organizations
In acting
on applications and carrying out other responsibilities
under the Act, the Agency shall consult with:
(a) The FCC,
with respect to functions that are of interest to, or
affect other functions of the FCC;
(b) The Corporation
for Public Broadcasting, state telecommunications agencies,
if any, public broadcasting agencies, organizations, other
agencies, and institutions administering programs which
may be coordinated effectively with Federal assistance
provided under the Act; and,
(c) The state
office established to review applications under Executive
Order 12372 as amended by Executive Order 12416, if
the state has established such an office and wishes to
review these applications.
Section 2301.13 Funding Criteria for Construction Applications
In determining
whether to approve or defer a construction grant application,
in whole or in part, and the amount of such grant, the
Agency will evaluate all the information in the application
file and consider the following factors, each of which
has equal weight:
(a) The extent
to which the project meets the program purposes set forth
in 2301.2 as well as the specific
program priorities set forth in the Appendix of these
Rules;
(b) The adequacy
and continuity of financial resources for long-term operational
support;
(c) The extent
to which non-Federal funds will be used to meet the total
cost of the project;
(d) The extent
to which the applicant has:
(1) Assessed
specific educational, informational, and cultural needs
of the community(-ies) to be served, and the extent to
which the proposed service will not duplicate service
already available;
(2) Evaluated
alternative technologies and the bases upon which the
technology was selected;
(3) Provided
significant documentation of its equipment requirements,
and the urgency of acquisition or replacement;
(4) Provided
documentation of an increasing pattern ofsubstantial
non-Federal financial support;
(5) Provided
other evidence of community support, such as letters
from elected or appointed policy-making officials, and
from agencies for which the applicant produces or will
produce programs or other materials;
(e) The extent
to which the evidence supplied in the application reasonably
assures an increase in public telecommunications services
and facilities available to, operated by, and owned or controlled
by minorities and women;
(f) The extent
to which various items of eligible apparatus proposed
are necessary to, and capable of, achieving the objectives
of the project and will permit the most efficient use
of the grant funds;
(g) The extent
to which the eligible equipment requested meets current
broadcast industry performance standards;
(h) The extent
to which the applicant will have available sufficient
qualified staff to operate and maintain the facility and
provide services of professional quality;
(i) The extent
to which the applicant has planned and coordinated the
proposed services with other telecommunications entities
in the service area;
(j) The extent
to which the project implements local, statewide or regional
public telecommunications systems plans, if any; and,
(k) The readiness
of the FCC to grant any necessary authorization.
Section 2301.14 Funding Criteria for Planning Applications
In determining
whether to approve or defer a planning grant application,
in whole or in part, and the amount of such grant, the
Agency will evaluate all the information in the application
file and consider the following factors, each of which
has equal weight:
(a) The extent
to which the applicant's interests and purposes are consistent
with the purposes of the Act and the priorities of the
Agency;
(b) The qualifications
of the proposed project planner;
(c) The extent
to which the project's proposed procedural design assures
that the applicant would adequately:
(1) Obtain
financial, human and support resources necessary to conduct
the plan;
(2) Coordinate
with other telecommunications entities at the local
state, regional and national levels;
(3) Evaluate
alternative technologies and existing services; and
(4) Receive
participation by the public to be served (and by minorities
and women in particular) in the project planning;
(d) Any pre-planning
studies conducted by the applicant showing the technical
feasibility of the proposed planning project (such as the
availability of a frequency assignment, if necessary, for
the project); and,
(e) The feasibility
of the proposed procedure and timetable for achieving
the expected results.
Section 2301.15 Action on All Applications
(a) After
consideration of an application which the Agency has accepted
for filing, any comments filed by interested parties and
replies thereto, and any other relevant information, the
Agency will take one of the following actions:
(1) Select
the application for funding, in whole or in part;
(2) Defer
the application for subsequent consideration;
(3) Return
the application as ineligible pursuant to 2301.9
with a notice of the grounds and reason; or,
(4) Return
applications which remain unfunded after consideration
by the Agency for three years.
(b) Upon the approval
or deferral, in whole or in part, of an application, the
Agency will inform:
(1) The applicant;
(2) The
state educational telecommunications agency(-ies), if
any, in any state any part of which lies within the
service area of the applicant's facility;
(3) The
FCC; and,
(4) The
Corporation for Public Broadcasting and, as appropriate,
other public telecommunications entities.
(c) If the Agency
decides to fund an application, the award documents will
include grant terms and conditions and whatever other provisions
are required by Federal law or regulations, or which may
be deemed necessary or desirable for the achievement of
program purposes.
(d) An applicant
or an objecting party may not appeal to the Administrator
the Agency's determination to fund or not fund a particular
application.
(e) Information
about grant terms and conditions or other applicable laws
and regulations is available from PTFP at the address
listed in 2301.5(a). (f) Written
and oral contacts between PTFP staff members and applicants
and their representatives during the application review
period are governed by the following:
(1) Members
of the PTFP staff are not authorized to discuss the merits
of an application when it is under review.
(2) Applicants
are expected to notify PTFP of events that occur after
the closing date and that materially affect the application,
including those items requested in 2301.6(b).
(3) Other
permissible contacts include:
(i) Appeals
of PTFP determinations of the eligibility of an application,
pursuant to 2301.10;
(ii) Responses
to adverse comments filed by members of the public
pursuant to 2301.11; and
(iii)
Discussion of matters relating to other PTFP awards
an organization may have.
(4) Nothing
in this section should be interpreted as preventing PTFP
staff from requesting an applicant to submit information
that may not have been included in the original submission.
Subpart C
- Federal Financial Participation
Section 2301.16 Amount of the Federal Grant
(a) Construction
grants. (1) A Federal grant for the construction of a
public telecommunications facility shall be in an amount
determined by the Agency and set forth in the award document.
Such amount may not exceed seventy-five (75) percent of
the amount determined by the Agency to be the reasonable
and necessary cost of such project.
(2) No part
of the grantee's matching share of the eligible project
costs may be met with funds paid by the Federal government,
except where the use of such funds to meet a Federal matching
requirement is specifically and expressly authorized by
the relevant Federal statute.
(3) After
the closing date, the applicant may, at its own risk,
obligate non-Federal matching funds for the acquisition
of proposed equipment. No funds from the Federal share
of the total project cost may be obligated until the award
period start date. If an applicant or recipient obligates
Federal Award funds before the start date, the Department
may refuse to offer the award or, if the award has already
been granted, terminate the grant.
(4) Funds
supplied to an applicant by the Corporation for Public
Broadcasting may not be used for the required non-Federal
matching purposes, except upon a clear compelling showing
of need.
(b) Planning
grants. A Federal grant for the planning of a public telecommunications
facility shall be in an amount determined by the Agency
and set forth in the award document and the attachments
thereto. The Agency may provide up to one hundred (100)
percent of the funds necessary for the planning of a public
telecommunications construction project.
(c) Project
costs do not include the value of eligible apparatus owned
or acquired by the applicant prior to the closing date.
Accepting title to donated equipment prior to the closing
date is considered ownership or acquisition of equipment.
(d) If the
actual costs incurred in completing the planning or construction
project are less than the estimated project total costs,
which were the basis for the Agency's determination of
the initial grant award, the Agency shall reduce the amount
of the final grant award so that the final grant award
bears the same ratio to the actual cost of the project
as the initial grant award bore to the estimated total
project costs. If, however, the actual costs incurred
in completing the project are more than the estimated
total project costs, then in no case will the final grant
award exceed the initial grant award.
Section 2301.17 Items and Costs Ineligible for Federal
Funding
The following
items and costs are ineligible for funding under the Act:
(a) Equipment
and supplies. Each year, the Agency will review its list
of ineligible equipment and supplies. A copy of the currently
applicable list of ineligible equipment will be provided
with every application package for PTFP grants.
(b) Other
expenses ineligible for funding. (1) Buildings and modifications
to buildings to house eligible equipment and fences surrounding
them are not themselves eligible for funding under this
program, except that small equipment shelters that are
part of satellite earth stations, translators, microwave
interconnection facilities, and similar facilities are
eligible for funding;
(2) Land and
land improvements;
(3) Salaries
of personnel employed by an operating public telecommunications
entity and other operational costs, except
(i) for planning
projects (see 392(c) of the Act); or,
(ii) to
the extent that an applicant can demonstrate exceptional
need or that substantially greater efficiency would
result from staff installation.
(4) Moving costs
required by relocations;
(5) Such other
expenses as the Agency may determine prior to the award
of a grant.
Section 2301.18 Payment of the Federal grant
(a) The Department
will not make any payment under an award, unless and until
the recipient complies with all relevant requirements
imposed by this Part. Additionally:
(1) With regard
to a public telecommunications entity requiring FCC authorization,
the Department will not make any payment until it receives
confirmation that the FCC has granted any necessary authorization;
(2) The
Department will not make any payment under an award
unless and until any special award conditions stated
in the award documents are met; and
(3) An agreement
to share ownership of the grant equipment (e.g., a joint
venture for a tower) must be approved by the Agency
before any funds for the project will be released.
(b) After the
conditions indicated in paragraph (a) of this section have
been satisfied, the Department will make payments to the
grantee in such installments consistent with the percentage
of project completion. As a general matter, the Agency expects
grantees to expend local matching funds at a rate at least
equal to the ratio of the local match to the Federal grant
as stipulated in the grant award.
(c) When an
applicant completes a construction project, the Agency
will assign a completion date that the Agency will use
to calculate the termination date of the Federal interest
period. The completion date will be the date on which
the grantee certifies in writing that the project is complete
and in accord with the terms and conditions of the grant,
as required under 2301.20. If the
PTFP Director determines that the grantee improperly certified
the project to be complete, the PTFP Director will amend
the completion date accordingly.
Subpart D--Accountability
for Federal Funds
Section 2301.19 Retention of records
(a) Each recipient
of assistance under this program shall keep intact and
accessible the following records:
(1) A complete
and itemized inventory of all public telecommunications
facilities under the control of the grantee, whether or
not financed, in whole or in part, with Federal funds;
(2) Complete
and current financial records that fully disclose the
total amount of the project; the amount of the grant;
the disposition of the grant proceeds; and the amount,
nature and source of non-Federal funds associated with
the project; and,
(3) All
records specified in Office of Management and Budget
Circular A-110 (for educational institutions, hospitals
and nonprofit organizations) and 15 CFR Part 24 (for
State and Local Governments).
(b) The grantee
shall mark project apparatus in a permanent manner in order
to assure easy and accurate identification and reference
to inventory records. The marking shall include the PTFP
grant number and a unique inventory number assigned by the
grantee.
Section 2301.20 Completion of Projects
(a) Upon completion
of a planning project, the grantee must promptly provide
to the Administrator two copies of any report or study
conducted in whole or in part with funds provided under
this program by sending the copies to the Agency. This
report shall meet the goals and objectives for which the
grant is awarded and shall follow the written instructions
and guidance provided by the Agency. The grant award goals
and objectives are stated in the planning narrative as
amended and are incorporated by reference into the award
agreement. The Agency shall review this report for the
extent to which those goals and objectives are addressed
and met, for evidence that the work contracted for under
the grant award was in fact performed, and that the written
instructions and guidance provided by the Agency, if any,
were followed. If this report fails to address or meet
any grant award goals or objectives, or if there is no
evidence that the work contracted for was in fact performed,
or if this report clearly indicates that the written instructions
and guidance provided by the Agency, if any, were disregarded,
then the Agency may pursue remedial action. Remedial action
includes, but is not limited to, demand for submission,
in whole or in part, of an acceptable final report. An
unacceptable final report may result in the establishment
of an account receivable by the Department.
(b) Upon completion
of a construction project, the grantee must:
(1) Certify
that the grantee has acquired, installed and begun operating
the project equipment in accordance with the project as
approved by the Agency and has complied with all terms
and conditions of the grant as specified in 2301.5;
(2) Certify
that the grantee has obtained any necessary FCC authorizations
to operate the project apparatus following the acquisition
and installation of the apparatus and document the same;
(3) Certify
that the facilities have been acquired, that they are
in operating order and that the grantee is using the
facilities to provide public telecommunications services
in accordance with the project as approved by the Agency
and document same;
(4) Certify
that the grantee has obtained adequate insurance to
protect the Federal interest in the project in the event
of loss through casualty and provide the Agency with
a copy of its insurance policy;
(5) Certify,
if not previously provided, that the grantee has acquired
all necessary leases or other site rights required for
the project;
(6) Certify,
if appropriate, that the grantee has qualified for receipt
of funds from the Corporation for Public Broadcasting;
(7) Provide
a complete and accurate final inventory of equipment
acquired under the project and a final accounting of
all project expenditures, including non-equipment costs
(e.g., installation costs); and
(8) Execute
and record a final priority lien reflecting the completed
project and assuring the Federal government's reversionary
interest in all equipment purchased under the grant
project for the duration of the Federal interest period.
Section 2301.21 Annual status report for construction
projects
(a) Recipients
of construction grants are required to submit an Annual
Status Report for each grant project that is in the Federal
interest period. The Reports are due no later than April
1 in each year of the period. In the Annual Status Report,
the grant recipient must certify:
(1) That it
remains an eligible entity as defined in the PTFP Rules;
(2) That
it continues to use the equipment purchased under the
grant to provide public telecommunications services
as approved by the Agency for the original purposes
of the grant;
(3) That
it continues to hold any FCC authorizations necessary
to operate the project apparatus;
(4) That
it continues to protect all equipment purchased under
the grant with adequate insurance coverage;
(5) That
it remains in compliance with all of the terms and conditions
of the grant; and
(6) That
no significant changes have occurred during the reporting
period with respect to any of the terms and conditions
of the grant.
(b) In addition,
the grant recipient must:
(1) Provide
information as to whether any discrimination complaints
are pending against it and whether, during the reporting
period, any adverse judgments have been rendered against
it because of discriminatory practices--
(i) Pending
complaints must be described and their status given;
adverse judgments must be summarized and a description
given of what action the recipient has taken or is taking
to remedy the effects of the adjudged discrimination;
(ii) If
the recipient is a non-profit institution, or a college
or university, discrimination complaints and adverse
judgments must be reported for the entire organization,
not just for the broadcast station. If the recipient
is a state or municipal agency, discrimination complains
and adverse judgments should be reported only for
the agency that received the Federal grant money,
not the entire state or municipal government;
(2) Certify,
if it is an academic institution, that it does not discriminate
in its admissions policies or in the opportunities it
affords to persons to participate in the receiving or
providing of services (Nota Bene: this certification applies
to the entire academic institution, not just to the entity
that was the subject of the grant);
(3) Submit
a separate Annual Status Report with an original signature
for each grant it has received that is still in the
Federal interest period; and
(4) Take
whatever steps may be necessary to ensure that the Federal
government's reversionary interest continues to be protected
for the 10-year period by recording, when and where
required, a lien continuation statement and reporting
that fact in the Annual Status Report.
Subpart E--Control
and Use of Facilities
Section 2301.22 Conditions attached to the Federal
grant
When an applicant
is awarded a Federal grant under the PTFP, the applicant
(now the grantee) takes the grant subject to certain conditions
concerning the use of the Federal monies and the equipment
obtained with those monies. The conditions are those listed
at 2301.15(c) plus the following
specific conditions:
(a) In order
to assure that the Federal investment in public telecommunications
facilities funded under the Act will continue to be used
to provide public telecommunications services to the public
during the period of Federal interest, which shall be
no less than ten (10) years from the date of completion
of the project, all grantees shall:
(1) Execute
and record a document establishing that the Federal
government has a priority lien on any facilities purchased
with funds under the Act during the period of continuing
Federal interest. The document shall be recorded where
liens are normally recorded in the community where the
facility is located and in the community where the grantee's
headquarters are located;
(2) File
a certified copy of the recorded lien with the Administrator
ninety (90) days after the grant award is received;
(3) Not
dispose of or encumber its title or other interests
in the equipment acquired under this grant and will,
if applicable, file any continuation statements necessary
to preserve the Federal government's secured interest
in the equipment acquired with Federal funds.
(4) If
not a part of the original application, demonstrate
that the grantee has obtained rights to the site(s)
necessary to the construction of the project. Grantees
receiving funds for the purchase of transmission or
interconnection equipment should provide an opinion
letter from their attorney stating that the grantee
will have either fee simple title or a long-term (i.e.,
ten-year) lease to any real or personal property necessary
for the installation of the equipment. Grantees receiving
funds for the purchase only of studio or test equipment
should provide a similar letter regarding main transmission
sites to ensure that they will be able to utilize
PTFP-funded equipment to provide public telecommunications
services throughout the Federal interest period. The
grantee must have the right to occupy, construct,
maintain, operate, inspect, and remove the project
equipment without impediment, and nothing must prevent
the Federal government from entering the property
and reclaiming or securing PTFP-funded property. Grantees
must submit the attorney's letter of certification
prior to the release of Federal funds. The Agency
reserves the right to review a grantee's site rights
documents if deemed necessary.
(b) During the
construction of a project and the Federal interest period,
the grantee must:
(1) Continue
to be an eligible organization as described in 2301.4,
above;
(2) Obtain
and continue to hold any necessary FCC authorization(s);
(3) Use
the Federal funds for which the grant was made for
the equipment and other expenditure items specified
in the application for inclusion in the project, except
that the grantee may substitute other items where
necessary or desirable to carry out the purpose of
the project if approved in advance by the agency in
writing;
(4) Use
the facilities and any monies generated through the
use of the facilities primarily for the provision
of public telecommunications services and ensure that
the use of the facilities for other than public telecommunications
purposes does not interfere with the provision of
the public telecommunications services for which the
grant was made;
(5) Not
make its facilities available to any person for the
broadcast or other transmission intended to be received
directly by the public, of any advertisement, unless
such broadcast or transmission is expressly and specifically
permitted by law or authorized by the FCC;
(6) Hold
appropriate title or lease satisfactory to protect
the Federal interest to the site or sites on which
apparatus proposed in the project will be operated,
including the right to construct, maintain, operate,
inspect and remove such apparatus, sufficient to assure
continuity of operation of the facility;
(7) Maintain
protection against common hazards through adequate
insurance coverage or other equivalent undertakings,
except that, to the extent the applicant follows a
different policy of protection with respect to its
other property, the applicant may extend such policy
to apparatus acquired and installed under the project,
if they receive express written approval for this
different policy from the Director. The grantee will
purchase flood insurance (in communities where such
insurance is available) if the facilities will be
constructed in any area that has been identified by
the Secretary of Health and Human Services as having
special flood hazards;
(8) Submit
to the Agency, in triplicate, within thirty (30) calendar
days of the award date, a construction schedule or
a revised planning timetable that will include the
information requested in the grant terms and conditions
in the award package;
(9) Comply
with 15 CFR Part 24 and the provisions of the Office
of Management and Budget Circulars A-87 and A- 128,
as implemented in 15 CFR Part 29a (for State and Local
Governments and political subdivisions); and OMB Circulars
A-21, A-110, A-122, and A-133, as implemented in 15
CFR Part 29b (for institutions of higher education,
hospitals and other nonprofit organizations) for the
procurement of equipment and services funded in whole
or in part with Federal monies;
(10) Remit
interest earned on advances of Federal funds to the
Agency in accordance with all relevant Federal laws
and regulations;
(11) State
when advertising for bids for the purchase of equipment
that the Federal government has an interest in facilities
purchased with Federal funds under this program which
begins with the purchase of the facilities and continues
for ten (10) years after the completion of the project;
(12) Submit,
during the construction of this project, both performance
reports and the required financial reports, in triplicate,
on a calendar year quarterly basis for the periods
ending March 31, June 30, September 30, and December
31, or any portion thereof. Reports are due no later
than thirty (30) days following the end of each reporting
period. The Quarterly Performance Reports should contain
the following information:
(i) A comparison
of actual accomplishments during the reporting period
with the goals and dates established in the Construction
or Planning Schedule for that reporting period;
(ii)
A description of any problems that have arisen or
reasons why established goals have not been met;
(iii)
Actions taken to remedy any failures to meet goals;
and
(iv)
Construction projects must also include a list of
equipment purchased during the reporting period
compared with the equipment authorized. This information
must include manufacturer, make and model number,
brief description, number of the items purchased,
and cost;
(13) Promptly
complete the project and place the public telecommunications
facility into operation;
(14) Permit
inspections during normal working hours by the Agency
and the Comptroller General of the United States or
their duly authorized representatives, of the public
telecommunications facilities acquired with Federal
financial assistance or of any books, documents, papers,
and records relating to those facilities;
(15) Comply
with Federal statutes relating to nondiscrimination.
These include but are not limited to: (a) Title VI
of the Civil Rights Act of 1964 (Pub. L. 88-352),
which prohibits discrimination on the basis of race,
color or national origin; (b) Title IX of the Education
Amendments of 1972, as amended (20 U.S.C. 1681-1683,
and 1685-1686), which prohibits discrimination on
the basis of sex; (c) 504 of the Rehabilitation Act
of 1973, as amended (29 U.S.C. 794, which prohibits
discrimination on the basis of handicaps; (d) the
Age Discrimination Act of 1975, as amended (42 U.S.C.
6101-6107), which prohibits discrimination on the
basis of age. (e) the Drug Abuse Office and Treatment
Act of 1972 (Pub. L. 92-255), as amended, relating
to nondiscrimination on the basis of drug abuse; (f)
the Comprehensive Alcohol Abuse and Alcoholism Prevention,
Treatment and Rehabilitation Act of 1970 Pub. L. 91-616),
as amended, relating to nondiscrimination on the basis
of alcohol abuse or alcoholism; (g) 523 and 527 of
the Public Health Service Act of 1912 (42 U.S.C. 290
dd-3 and 290 ee-3), as amended, relating to confidentiality
of alcohol and drug abuse patient records; (h) Title
VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601
et seq.), as amended, relating to nondiscrimination
in the sale, rental or financing of housing; (i) any
other nondiscrimination provisions in the specific
statute(s) under which application for Federal assistance
is being made; and (j) the requirements of any other
nondiscrimination statute(s) which may apply to the
application.
(16) Obtain
the Agency's prior approval for substantial changes
in the approved grant project, including but not limited
to the following:
(i) Costs
(including planning costs),
(ii)
Essential specifications of the equipment,
(iii)
The engineering configuration of the project,
(iv)
Extensions of the approved grant award period, and
(v)
Transfers of a grant award to a successor in interest,
pursuant to 2301.23(c)(1).
(17) Comply
with all applicable Federal laws, rules or regulations
relating to the project.
(c) The Agency
will allow the acquisition of facilities by lease; however,
several provisions must be followed:
(1) The lease
must be for a term of years not greater than the remaining
useful life of the facilities nor less than ten (10)
years following completion of the project (including
renewal options);
(2) The
cost of the lease must not be more than the total
of the non-Federal share of the matching funds;
(3) The
actual amount of the lease must not be more than the
outright purchase price would be; and
(4) The
lease agreement must state that in the event of anticipated
or actual termination of the lease, the Federal government
through the Agency has the right to transfer and assign
the leasehold to a new grantee for the duration of
the lease contract.
(d) During the
period in which the grantee possesses or uses the Federally
funded facilities (whether or not this period extends
beyond the Federal interest period), the grantee may not
use or allow the use of the Federally funded equipment
for purposes the essential thrust of which are sectarian.
Section 2301.23 Grant Suspensions, Terminations, and
Transfers
(a) Suspension
or termination for cause. If a grantee fails to meet any
conditions attached to the grant, as specified in 2301.15(c)
and 2301.22 of this Part, the Agency
reserves the right to recommend any appropriate action
including, but not limited to:
(1) Suspending
a particular grant in whole or in part and withholding
further payments under that grant, pending corrective
action by the grantee;
(2) Prohibiting
a grantee from incurring additional obligations of funds,
pending corrective action by the grantee;
(3) Where
the grantee cannot (or will not) comply with the condition
(or conditions) attached to a particular grant, terminating
the grant and requiring the grantee to repay the Federal
government an amount bearing the same ratio to the fair
market value of the facilities at the time of termination
as the Federal grant bore to the project;
(4) Where
the condition (or conditions) is also attached to other
grants that the grantee has received from the Agency,
suspending payments under all these other grants;
(5) Where
the condition (or conditions) is also attached to other
grants that the grantee has received from the Agency,
terminating all these other grants and requiring the
grantee to repay the Federal government an amount bearing
the same ratio to the fair market value of the facilities
at the time of termination as the Federal grants bore
to the projects for which they were granted.
(b) Termination
for convenience. When the Agency and the grantee agree that
the continuation of the project would not produce beneficial
results commensurate with the expenditure of further Federal
funds, the parties may terminate the grant, in whole or
in part, with all the conditions and on an effective date
that the parties have mutually agreed in writing.
(c) Transfers.
If necessary to further the purpose of the Act, the Agency
may approve transfers as follows:
(1) Transfer
of grant. The Agency may transfer a grant to a successor
in interest or subsidiary corporation of a grantee in
cases where a similar operational entity remains in control
of the grant and the original objectives of the grant
remain in effect.
(2) Transfer
of equipment. Where the grant equipment is no longer
needed for the original purposes of the project, the
Agency may transfer the equipment to the Federal government
or an eligible third party, in accordance with Office
of Management and Budget guidelines.
(3) Transfer
of Federal interest to different equipment. The Agency
may transfer the Federal interest in PTFP-funded equipment
to other eligible equipment presently owned or to be
purchased by the grantee with non-Federal monies.
(i) Equipment
previously funded by PTFP that is within the Federal
interest period, may not be used in a transfer request
as the designated equipment to which the Federal interest
is to be transferred.
(ii) The
same item can be used only once to substitute for
the Federal interest; however, it may be used to cover
grants if the request for each is submitted at the
same time.
(iii)
A lien on equipment transferred to the Federal interest
must be recorded in accordance with 2301.22
of the PTFP Rules. A copy of the lien document must
be filed with the PTFP within sixty (60) days of the
date of approval of the transfer of Federal interest.
(iv) If
the Federal interest is to be transferred to other
equipment presently owned or to be purchased by a
grantee, the Federal interest in the new equipment
must be at least equal to the Federal interest in
the original equipment.
(d) Termination
by buy-out. A grantee may terminate the PTFP grant by buying
out the Federal interest with non- Federal monies. Buy-outs
may be requested at any time.
Section 2301.24 Equipment
All equipment,
which a grantee acquires under this program, shall be
of professional broadcast quality. An applicant proposing
to utilize nonbroadcast technology shall propose and purchase
equipment that is compatible with broadcast equipment
wherever the two types of apparatus interface.
Subpart F
- Waivers
Section 2301.25 Waivers
For good cause
shown, the Administrator may waive the regulations adopted
pursuant to 392(e) of the Act.
Appendix to Part 2301 -- Special Applications and Priorities
Special
Applications
NTIA possesses
the discretionary authority to recommend awarding grants
to eligible broadcast and nonbroadcast applicants whose
proposals are so unique or innovative that they do not
clearly fall within the priorities listed below. Innovative
projects submitted under this category must address demonstrated
and substantial community needs (e.g., service to identifiable
ethnic or linguistic minority audiences, service to the
blind or deaf, electronic text, and nonbroadcast projects
offering educational or instructional services).
Priorities
Priority 1
-- Provision of Public Telecommunications Facilities for
First Radio and Television Signals to a Geographic Area.
Within this category, NTIA establishes three subcategories:
A. Projects
that include local origination capacity. This subcategory
includes the planning or construction of new facilities
that can provide a full range of radio and/or television
programs including material that is locally produced.
Eligible projects include new radio or television broadcast
stations, new cable systems, or first public telecommunications
service to existing cable systems, provided that such
projects include local origination capacity.
B. Projects
that do not include local origination capacity. This subcategory
includes projects such as increases in tower height and/or
power of existing stations and construction of translators,
cable networks and repeater transmitters that will result
in providing public telecommunications services to previously
unserved areas.
C. Projects
that provide first nationally distributed programming.
This subcategory includes projects that provide satellite
downlink facilities to noncommercial radio and television
stations that would bring nationally distributed programming
to a geographic area for the first time.
Priority 1
and its subcategories apply only to grant applicants proposing
to plan or construct new facilities to bring public telecommunications
services to geographic areas that are presently unserved,
i.e., areas that do not receive any public telecommunications
services whatsoever. (It should be noted that television
and radio are considered separately for the purposes of
determining coverage.)
An applicant
proposing to plan or construct a facility to serve a geographical
area that is presently unserved, should indicate the number
of persons who would receive a first public telecommunications
signal as a result of the proposed project.
Priority 2
-- Replacement of Basic Equipment of Existing Essential
Broadcast Stations. Projects eligible for consideration
under this category include the urgent replacement of
obsolete or worn out equipment in existing broadcast stations
that provide either the only public telecommunications
signal or the only locally originated public telecommunications
signal to a geographical area.
In order to
show that the urgent replacement of equipment is necessary,
applicants must provide documentation indicating excessive
downtime, or a high incidence of repair (i.e., copies
of repair records, or letters documenting non-availability
of parts.) Additionally, applicants must show that the
station is the only public telecommunications station
providing a signal to a geographical area or the only
station with local origination capacity in a geographical
area.
The distinction
between Priority 2 and Priority 4 is that Priority 2 is
for the urgent replacement of basic equipment for essential
stations. Where an applicant seeks to "improve" basic
equipment in its station (i.e., where the equipment is
not "worn out"), or where the applicant is not an essential
station, NTIA would consider the applicant's project under
Priority 4.
Priority 3
-- Establishment of a First Local Origination Capacity
in a Geographical Area. Projects in this category include
the planning or construction of facilities to bring the
first local origination capacity to an area already receiving
public telecommunications services from distant sources
through translators, repeaters or cable systems.
Applicants
seeking funds to bring the first local origination capacity
to an area already receiving some public telecommunications
services may do so, either by establishing a new (and
additional) public telecommunications facility, or by
adding local origination capacity to an existing facility.
A source of a public telecommunications signal is distant
when the geographical area to which the source is brought
is beyond the grade B contour of the origination facility.
Priority 4
-- Replacement and Improvement of Basic Equipment for
Existing Broadcast Stations. Projects eligible for consideration
under this category include the replacement of obsolete
or worn-out equipment and the upgrading of existing origination
or delivery capacity to current industry performance standards
(e.g., improvements to signal quality, and significant
improvements in equipment flexibility or reliability).
As under Priority 2, applicants seeking to replace or
improve basic equipment under Priority 4 should show that
the replacement of the equipment is necessary by including
in their applications data indicating excessive downtime,
or a high incidence of repair (such as documented in repair
records). Within this category, NTIA establishes two subcategories:
A. Under Priority
4A, NTIA will consider applications to replace urgently
needed equipment from public broadcasting stations that
do not meet the Priority 2 criteria because they do not
provide either the only public telecommunications signal
or the only locally originated public telecommunications
signal to a geographic area. NTIA will also consider applications
that improve as well as replace urgently needed production-related
equipment at public radio and television stations that
do not qualify for Priority 2 consideration but that produce,
on a continuing basis, significant amounts of programming
distributed nationally to public radio or television stations.
This subcategory
will also enable the acquisition of satellite downlinks
for public radio stations in areas already served by one
or more full-service public radio stations. The applicant
must demonstrate that it will broadcast a program schedule
that does not merely duplicate what is already available
in its service area.
The final
projects included in this subcategory would enable the
acquisition of the necessary items of equipment to bring
the inventory of an already-operating station to the basic
level of equipment requirements established by PTFP. This
is intended to assist stations that went on the air with
a complement of equipment well short of what the Agency
considers as the basic complement.
B. This subcategory
includes the improvement and non-urgent replacement of
equipment at any public broadcasting station.
Priority 5
-- Augmentation of Existing Broadcast Stations. Projects
in this category would equip an existing station beyond
a basic capacity to broadcast programming from distant
sources and to originate local programming.
A. Projects
to equip auxiliary studios at remote locations, or to
provide mobile origination facilities. An applicant must
demonstrate that significant expansion in public participation
in programming will result. This subcategory includes
mobile units, neighborhood production studios or facilities
in other locations within a station's service area that
would make participation in local programming accessible
to additional segments of the population.
B. Projects
to augment production capacity beyond basic level in order
to provide programming or related materials for other
than local distribution. This subcategory would provide
equipment for the production of programming for regional
or national use. Need beyond existing capacity must be
justified.
Footnotes
1. See 47 U.S.C. 390-393, 397 (1988), The Communications
Act of 1934, as amended. Unless otherwise noted, all statutory
citations are to Title 47 of the United States Code.
Return
2. Comments were submitted by the following organizations:
Association of America's Public Television Stations and
the Public Broadcasting Service in a joint filing (Joint
Comments); the Corporation for Public Broadcasting (CPB);
the Intercollegiate Broadcasting System, Inc., Vails Gate,
NY (IBS); public radio station KCSU, Colorado State University,
Fort Collins, CO; Minnesota Public Radio, St. Paul, MN
(MPR); the National Federation of Community Broadcasters
(NFCB); National Public Radio (NPR); the Organization
of State Broadcasting Executives, Columbia, SC (OSBE);
Rocky Mountain Corporation for Public Broadcasting, Albuquerque,
NM (RMCPB); and the WGBH Educational Broadcasting Foundation,
Boston, MA (WGBH).
Return
3. CPB, IBS, NFCB, NPR, and RMCPB filed comments in general
support of this proposal.
Return
4. IBS at 2; NFCB at 3.
Return
5. 390 and 393(b).
Return
6. RMCPB at 1.
Return
7. OSBE at 1.
Return
8. 390 and 393(b).
Return
9. House Report 98-772, accompanying H.R. 5541 ("Public
Broadcasting Amendments Act of 1984"), at 7.
Return
10. MPR at 1; Joint Comments at 19-20.
Return
11. NPR at 14-15; NFCB at 4; RMCPB at 2; IBS at 3.
Return
12. Joint Comments at 20.
Return
13. CPB at 8.
Return
14. NFCB at 3; NPR at 12-14; IBS at 3.
Return
15. RMCPB at 2.
Return
16. IBS at 3.
Return
17. NPR at 12.
Return
18. Id. at 12-13.
Return
19. Id. at 13.
Return
20. RMCPB at 2.
Return
21. IBS at 3.
Return
22. RMCPB at 2; NPR at 15-16.
Return
23. RMCPB at 2.
Return
24. WGBH at 1-2.
Return
25. Id.
Return
26. 390 (1988).
Return
27. 390(2), 392(f), 393(b)(2) (1988) and 15 CFR 2301.3
(1989).
Return
28. 390 (1988).
Return
29. 392 (g) (1988).
Return
30. Joint Comments at 23.
Return
31. Id. at 20-22; KCSU at 1; RMCPB at 2-3.
Return
32. Joint Comments at 21.
Return
33. Id. at 22.
Return
34. RMCPB at 3.
Return
35. Id. at 4 and 5.
Return
36. Id. at 5.
Return
37. NPR at 17.
Return
38. RMCPB at 3.
Return
39. Joint Comments at 22.
Return
40. RMCPB at 4.
Return
41. Ibid.
Return
42. Ibid.
Return
43. NPR at 17; KCSU at 2.
Return
44. 15 CFR 2301.4(d) incorporating OMB Circular A-129,
Managing Federal Credit Programs.
Return
45. U.S. Department of Commerce, Credit and Debt Management
Operating Standards and Procedures Handbook, Chapter 5,
Section 8.02.
Return
46. RMCPB at 4.
Return
47. Joint Comments at 24.
Return
48. NPR at 20.
Return
49. Id. at 19.
Return
50. Id. at 21.
Return
51. 47 U.S.C. 392(g).
Return
52. RMCPB at 5.
Return
53. 42 U.S.C. 2000d, 2000d-1 (1964).
Return
54. 42 U.S.C. 2000d-4a (3)(A)(i), (ii) (1988). The statute
makes no mention of an entity's non-profit status, however
PTFP may extend financial assistance only to non-profit
entities. 47 U.S.C. 390, 397(6), (8) (1988).
Return
55. 42 U.S.C. 2000d-4a(1)(A),(B) (1988).
Source:
U.S. Department of Commerce
National Telecommunications and Information Administration
Office of Telecommunications and Information Applications
Posted:
17 Sep 1997
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