[Federal Register: January 23, 2002 (Volume 67, Number 15)]
[Rules and Regulations]
[Page 3039-3041]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23ja02-3]
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DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Part 1703
RIN 0572-AB70
Distance Learning and Telemedicine Loan and Grant Program
AGENCY: Rural Utilities Service, USDA.
ACTION: Direct final rule.
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SUMMARY: The Rural Utilities Service (RUS) is amending its regulations
for the Distance Learning and Telemedicine (DLT) Loan and Grant
Program. This direct final rule addresses the amendments affecting the
grant program. These amendments will clarify eligibility; change the
grant minimum matching contribution; clarify that only loan funds will
be used to finance transmission facilities; modify financial
information requirements; adjust the leveraging of resources scoring
criterion; revise financial information to be submitted; and make other
minor changes and corrections.
DATES: This rule will become effective March 11, 2002, unless we
receive written adverse comments or a written notice of intent to
submit adverse comments on or before February 22, 2002. If we receive
such comments or notice, we will publish a timely document in the
Federal Register withdrawing the rule. Comments received will be
considered under the proposed rule published in this edition of the
Federal Register in the proposed rule section. A second public comment
period will not be held.
Written comments must be received by RUS via facsimile transmission
or carry a postmark or equivalent no later than February 22, 2002.
ADDRESSES: Submit adverse comments or notice of intent to submit
adverse comments to Roberta D. Purcell, Assistant Administrator,
Telecommunications Program, Rural Utilities Service, U.S. Department of
Agriculture, 1400 Independence Ave., SW., STOP 1590, Room 4056, South
Building, Washington, DC 20250-1590 or via facsimile transmission to
(202) 720-0810. RUS requests a signed original and three copies of all
comments (7 CFR 1700.4). All comments received will be made available
for public inspection at room 4056, South Building, Washington, DC,
between 8 a.m. and 4 p.m. (7 CFR part 1.27(b)).
FOR FURTHER INFORMATION CONTACT: Marilyn J. Morgan, Chief, DLT Branch,
Advanced Services Division, Rural Utilities Service, U.S. Department of
Agriculture, 1400 Independence Ave., SW., STOP 1550, Washington, DC
20250-1550. Telephone: 202-720-0413; e-mail at mmorgan@rus.usda.gov;
or, Fax: 202-720-1051.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This rule has been determined to be not significant for the
purposes of Executive Order 12866 and, therefore, has not been reviewed
by the Office of Management and Budget (OMB).
Executive Order 12372
This program is subject to the provisions of Executive Order 12372,
Intergovernmental Review of Federal Programs, which requires
intergovernmental consultation with State and local officials.
Executive Order 12988
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. RUS has determined that this rule meets the applicable
standards provided in section 3 of the Executive Order. In addition,
all State and local laws and regulations that are in conflict with this
rule will be preempted; no retroactive effect will be given to this
rule; and, in accordance with section 212(e) of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 6912(e))
administrative appeal procedures, if any are required, must be
exhausted before an action against the Department or its agencies may
be initiated.
Regulatory Flexibility Act Certification
The Administrator of RUS has determined that this rule will not
have a significant economic adverse impact on a substantial number of
small entities, as defined in the Regulatory Flexibility Act (5 U.S.C.
601). The RUS DLT loan and grant program provides recipients with
grants and loans at interest rates and on terms that are more favorable
than those generally available from the private sector. Recipients, as
a result of obtaining federal financing, receive economic benefits that
exceed any direct cost associated with complying with the RUS
regulations and requirements.
National Environmental Policy Act Certification
The Administrator of RUS has determined that this rule will not
significantly affect the quality of the human environment as defined by
the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
Therefore, this action does not require an environmental impact
statement or assessment.
Catalog of Federal Domestic Assistance
The program described by this rule is listed in the Catalog of
Federal Domestic Assistance programs under No. 10.855 Distance Learning
and Telemedicine Loans and Grants. This catalog is available on a
subscription basis from the Superintendent of Documents, the United
States Government Printing Office, Washington, DC 20402-9325, telephone
number (202) 512-1800.
Information Collection and Recordkeeping Requirements
The reporting and recordkeeping requirements contained in this rule
have been approved by the Office of Management and Budget (OMB) under
OMB Control Number 0572-0096, pursuant to the Paperwork Reduction Act
of 1995 (44 U.S.C chapter 35).
Unfunded Mandates
This rule contains no Federal mandates (under the regulatory
provisions of title II of the Unfunded Mandates Reform Act) for State,
local, and tribal governments or the private sector. Thus, this rule is
not subject to the requirements of sections 202 and 205 of the Unfunded
Mandates Reform Act.
[[Page 3040]]
Background
RUS is amending 7 CFR 1703, subparts D, E, F and G of its
regulations for the Distance Learning and Telemedicine (DLT) Loan and
Grant Program. The current regulations implement the provision of the
Federal Agriculture Improvement and Reform Act of 1996 (1996 Act) (7
U.S.C. 950aaa et seq.) to encourage and improve telemedicine services
and distance learning services in rural areas.
Subpart D is being amended to clarify eligibility for various types
of financial assistance. Section 1703.103 is revised to clarify
eligibility criterion for applicants in conformance with paragraphs
(c)(1) and (2) of section 2333 of the 1996 Act (7 U.S.C. 950aaa-a(1)
and (2). Sections 1703.131(h) and 1703.141(h) are revised to clarify
that transmission facilities may be financed only with a loan and in
connection with a distance learning or telemedicine project. Funding of
transmission facilities is further clarified under section 1703.101.
Additionally the word ``eligible'' was removed from the first sentence
of the consortium definition and the definition of ``eligible
organization'' was deleted under the definition section. Eligibility
criteria are set forth in Sec. 1703.103.
This rule also amends the method of calculation for the minimum
matching contribution of a grant in subpart E. This rule also readjusts
the award of points for the leveraging of resources scoring criterion.
Subpart E clarifies the circumstances under which the grant program
will fund telecommunications facilities.
This rule makes an additional modification to subpart E regarding
required financial information. This will streamline the application
process for applicants.
List of Subjects in Part 1703
Community development; Grant programs--housing and community
development; Loan programs--housing and community development,
Reporting and recordkeeping requirements.
For the reasons set forth in the preamble, RUS amends 7 CFR chapter
XVII as follows:
PART 1703--RURAL DEVELOPMENT
1. The authority citation for this part continues to read as
follows:
Authority: 7 U.S.C. 950aaa et seq.
Subpart D--Distance Learning and Telemedicine Loan and Grant
Program--General
2. Amend Sec. 1703.102 by removing the definition of ``Eligible
organization'' and revising the definitions of ``Consortium'' and
``Rural Community Facilities'' to read as follows:
Sec. 1703.102 Definitions.
* * * * *
Consortium means a combination or group of entities formed to
undertake the purposes for which the distance learning and telemedicine
financial assistance is provided. At least one of the entities in a
consortium must meet the requirements of Sec. 1703.103.
* * * * *
Rural community facility means a facility such as a school,
library, learning center, training facility, hospital, or medical
facility that provides educational or health care benefits primarily to
residents of rural areas.
* * * * *
3. Revise Sec. 1703.103 to read as follows:
Sec. 1703.103 Applicant eligibility and allocation of funds.
(a) To be eligible to receive a grant, loan and grant combination,
or loan under this subpart:
(1) The applicant must be legally organized as an incorporated
organization or partnership, an Indian tribe or tribal organization, as
defined in 25 U.S.C. 450b (b) and (c), a state or local unit of
government, a consortium, as defined in Sec. 1703.102, or other legal
entity, including a private corporation organized on a for profit or
not-for profit basis. Each applicant must provide written evidence of
its legal capacity to contract with RUS to obtain the grant, loan and
grant combination, or the loan, and comply with all applicable
requirements. If a consortium lacks the legal capacity to contract,
each individual entity must contract with RUS in its own behalf.
(2) The applicant proposes to utilize the financing to:
(i) Operate a rural community facility; or
(ii) Deliver distance learning or telemedicine services to entities
that operate a rural community facility or to residents of rural areas
at rates calculated to ensure that the benefit of the financial
assistance is passed through to such entities or to residents of rural
areas.
(b) Electric or telecommunications borrowers are not eligible for
grants.
Subpart E--Distance Learning and Telemedicine Grant Program
4. Remove and reserve Sec. 1703.120
5. Amend Sec. 1703.121 by revising the introductory text to read as
follows:
Sec. 1703.121 Approved purposes for grants.
For distance learning and telemedicine projects, grants shall
finance only the costs for approved purposes. Grants shall be expended
only for the costs associated with the initial capital assets
associated with the project. The following are approved grant purposes:
* * * * *
6. Amend Sec. 1703.122 by revising paragraph (a) and adding
paragraph (e) to read as follows:
Sec. 1703.122 Matching contributions.
(a) The grant applicant's minimum matching contribution must equal
15 percent of the grant amount requested and shall be used for approved
purposes for grants listed in Sec. 1703.121. Matching contributions
generally must be in the form of cash. However, in-kind contributions
solely for the purposes listed in Sec. 1703.121 may be substituted for
cash.
* * * * *
(e) Any financial assistance from Federal sources will not be
considered as matching contributions under this subpart unless there is
a Federal statutory exception specifically authorizing the Federal
financial assistance to be considered as a matching contribution.
7. Amend Sec. 1703.123 by revising paragraph (a)(1) to read as
follows:
Sec. 1703.123 Nonapproved purposes for grants.
(a) * * *
(1) To cover the costs of acquiring, installing or constructing
telecommunications transmission facilities;
* * * * *
8. Amend Sec. 1703.125 by removing the words ``purchases or leases
of'' from the first sentence of (h)(2) and by revising paragraph (e) to
read as follows:
Sec. 1703.125 Completed application.
* * * * *
(e) Financial information and sustainability. The applicant must
provide a narrative description demonstrating: feasibility of the
project, including having sufficient resources and expertise necessary
to undertake and complete the project; and, how the project will be
sustained following completion of the project.
* * * * *
[[Page 3041]]
9. Amend Sec. 1703.126 by revising paragraph (a)(4) to read as
follows:
Sec. 1703.126 Criteria for scoring grant applications.
(a) * * *
(4) The ability of the applicant to leverage financial resources--
Up to 35 points. This criterion will be used to evaluate the ability of
the applicant to provide a matching contribution for the project using
other non-Federal financial assistance. Documentation submitted in
support of the application should reflect any additional financial
support for the project from non-Federal sources above the applicant's
minimum matching contribution of 15 percent as required by
Sec. 1703.122. The applicant must include evidence, from authorized
representatives of the sources, of a commitment that the funds are
available and will be used for the project. The applicant will receive
points as follows:
(i) Matching contribution for approved purposes greater than 15
percent, but less than or equal to 30 percent of the grant requested--0
points.
(ii) Matching contribution for approved purposes greater than 30
percent, but less than or equal to 50 percent of the grant requested--
15 points.
(iii) Matching contribution for approved purposes greater than 50
percent, but less than or equal to 75 percent of the grant requested--
25 points.
(iv) Matching contribution for approved purposes greater than 75
percent, but less than or equal to 100 percent of the grant requested--
30 points.
(v) Matching contribution for a grant for approved purposes greater
than 100 percent of the grant requested--35 points.
* * * * *
Dated: December 28, 2001.
Roberta D. Purcell,
Acting Administrator, Rural Utilities Service.
[FR Doc. 02-1537 Filed 1-22-02; 8:45 am]
BILLING CODE 3410-15-P