Public Telecommunications Facilities Program: Availability of Funds

SUMMARY: The National Telecommunications and Information Administration

(NTIA), U.S. Department of Commerce, announces that applications are

available for planning and construction grants for public

telecommunications facilities under the Public Telecommunications

Facilities Program (PTFP), which is administered by NTIA.

Applicants for grants under the PTFP must file their applications

on or before March 17, 1994. NTIA anticipates making grant awards by

September 30, 1994.

Approximately $21.3 million is available in fiscal year 1994 for

grants. The amount of a grant award will vary depending on the project

of the applicant. NTIA awarded $20.8 million in funds to 105 projects

for fiscal year 1993. The awards ranged from $1,898 to $968,989.

Final Rules and Policy Statement for the Public Telecommunications

Facilities Program were published on November 22, 1991 (56 FR 59168-

59192, No. 226). These rules, codified at 15 CFR part 2301, will be in

effect for 1994 applications.

Prospective PTFP applicants should be aware that NTIA is in the

process of establishing a new National Information Infrastructure grant

program to be called the Information Infrastructure Grants Program

(IIGP). The IIGP's funds may be used for the planning and construction

of telecommunications networks or the purchase of telecommunications

services and facilities for the provision of educational, cultural,

health care, public information, public safety or other social

services. The Congress appropriated $26 million dollars for the IIGP in

FY 1994. Formal announcement of the IIGP will be made at a later date.

The new IIGP is separate from the already-existing grant program, the

PTFP, which is the subject of this Notice. The PTFP or its predecessor-

agencies have been in operation since 1962; the present PTFP program

has been in place since 1978.

DATES: Pursuant to Sec. 2301.5(c) of the PTFP Final Rules (56 FR 59176

(1991), codified at 15 CFR part 2301), the Administrator of NTIA hereby

establishes the closing date for the filing of applications for grants

under the PTFP. The closing date selected for the submission of

applications for 1994 is March 17, 1994. Applications delivered by mail

or by hand must be delivered to the address referenced below by 5 p.m.

on or before March 17, 1994. Applicants whose applications are not

received by the deadline will be notified that their applications will

not be considered in the current grant cycle and will be returned.

ADDRESSES: To obtain an application package, submit completed

applications, or send any other correspondence, write to: Office of

Telecommunications and Information Applications, NTIA/DOC, 14th Street

and Constitution Avenue, NW., room H-4625, Washington, DC 20230.

FOR FURTHER INFORMATION CONTACT:

Dr. Charles Rush, Acting Associate Administrator, telephone: (202) 482-

5802.

SUPPLEMENTARY INFORMATION:

I. Eligibility

A. To be eligible to apply for and receive a 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. To be eligible to apply for and receive a 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. 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. No award of Federal funds shall be made to an applicant

who has an outstanding delinquent Federal debt until either:

(1) The delinquent account is paid in full,

(2) A negotiated repayment schedule is established and at least one

payment is received, or

(3) Other arrangements satisfactory to the Department of Commerce

are made. Delinquent accounts include 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.

II. Program Goals and Priorities

The Goals of this program as stated in section 390 of the

Communications Act (47 U.S.C. 390) are:

``To assist through matching grants, in the planning and

construction of public telecommunications facilities in order to

achieve the following objectives:

(1) Extend delivery of public telecommunications services to as

many citizens of the United States as possible by the most efficient

and economical means, including the use of broadcast and nonbroadcast

technologies;

(2) Increase public telecommunications services and facilities

available to, operated by, and owned by minorities and women; and

(3) Strengthen the capability of existing public television and

radio stations to provide public telecommunications services to the

public.''

The Agency has established the following priorities for the PTFP:

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).

Priority 1--Provision of Public Telecommunications Facilities for First

Radio and Television Signals to a Geographic Area

There are 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.

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.

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.

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.

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. There are 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.

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.

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.

III. Application Forms and Regulations

To apply for a PTFP grant, an applicant must file a timely and

complete application on a current form approved by the Agency. No

previous versions of the PTFP Application Form may be used. (In

accordance with the Paperwork Reduction Act, the current application

form has been cleared under OMB control no. 0660-0003.)

All persons and organizations on the PTFP's mailing list will be

sent a copy of the current application form and the Final Rules. Those

not on the mailing list may obtain copies by contacting the PTFP at the

address above. Prospective applicants should read the Final Rules

carefully before submitting applications. Applicants whose applications

were deferred will be mailed pertinent PTFP materials and instructions

for requesting reactivation.

Applicants should note that they must comply with the provisions of

Executive Order 12372, ``Intergovernmental Review of Federal

Programs.'' The Executive Order requires applicants for financial

assistance under this program to file a copy of their application with

the Single Points of Contact (SPOC) of all states relevant to the

project. Applicants are required to serve a copy of their completed

application on the appropriate SPOC on or before March 17, 1994.

Applicants are encouraged to contact the appropriate SPOC well before

the NTIA closing date.

NTIA requires that all applicants whose proposed projects need

authorization from the Federal Communications Commission (FCC) must

tender an application to the FCC for such authority on or before March

17, 1994. (An application is tendered to the FCC when it has been

received by the Secretary of the FCC.) However, applicants are urged to

submit it with as much lead time before the PTFP closing date as

possible. The greater the lead time, the better the chance the FCC

application will be processed to coincide with NTIA's grant cycle. NTIA

may return the application of any applicant which fails to tender an

application to the FCC for any necessary authority on or before March

17, 1994.

Effective October 1, 1988, OMB Circular A-102, as it applies to

grant recipients, has been superseded by Department of Commerce

regulations, Uniform Administrative Requirements for Grants and

Cooperative Agreements with State and Local Governments (53 FR 8034,

codified at 15 CFR 24 (1988)). Applicants should note that PTFP grant

recipients, depending on their type of organization, are subject to the

provisions of diverse Office of Management and Budget (OMB) Circulars;

i.e., A-87 ``Cost Principles for State and Local Governments,'' A-21

``Cost Principles for Educational Institutions,'' A-110, A-122, A-128,

as implemented by 15 CFR part 29a, and A-133, as implemented by 15 CFR

part 29b.

Indirect costs for construction applications are not supported by

this program. The total dollar amount of the indirect costs proposed in

a planning application under this program must not exceed the indirect

cost rate negotiated and approved by a cognizant Federal agency prior

to the proposed effective date of the award or 100 percent of the total

proposed direct costs dollar amount in the application, whichever is

less.

All non-profit applicants are subject to a name check review

process. Name checks are intended to reveal if any key individuals

associated with the applicant have been convicted of or are presently

facing criminal charges such as fraud, theft, perjury, or other matters

which significantly reflect on the applicant's management honesty or

financial integrity. Potential grant recipient organizations may also

be subject to reviews of Dun and Bradstreet data or other similar

credit checks.

All primary applicants must submit a completed Form CD-511,

``Certifications Regarding Debarment, Suspension, and Other

Responsibility Matters; Drug-Free Workplace Requirements and

Lobbying.'' Applicants are further advised that:

(1) Nonprocurement Debarment and Suspension

Prospective participants (as defined at 15 CFR part 26, section

105) are subject to 15 CFR part 26, ``Nonprocurement Debarment and

Suspension'' and the related section of the certification form;

(2) Drug-Free Workplace

Grantees (as defined at 15 CFR part 26, section 605) are subject to

15 CFR part 26, subpart F, ``Governmentwide Requirements for Drug-Free

Workplace (Grants)'' and the related section of the certification form;

(3) Anti-Lobbying

Persons (as defined at 15 CFR part 28, section 105) are subject to

the lobbying provisions of 31 U.S.C. 1352, ``Limitation on use of

appropriated funds to influence certain Federal contracting and

financial transactions,'' and the lobbying section of the certification

form prescribed above applies to applications/bids for grants,

cooperative agreements, and contracts for more than $100,000, and loans

and loan guarantees for more than $150,000, or the single family

maximum mortgage limit for affected programs, whichever is greater; and

(4) Anti-Lobbying Disclosures

Any applicant that has paid or will pay for lobbying using any

funds must submit an SF-LLL, ``Disclosure of Lobbying Activities,'' as

required under 15 CFR part 28, Appendix B.

For awards granted by NTIA, the recipient shall require applicants/

bidders for subgrants, contracts, subcontracts, or other lower tier

covered transactions at any tier under the grant award to submit, if

applicable, a completed Form CD-512, ``Certifications Regarding

Debarment, Suspension, Ineligibility and Voluntary Exclusion--Lower

Tier Covered Transactions and Lobbying'' and disclosure form, SF-LLL,

``Disclosure of Lobbying Activities.'' Form CD-512 is intended for the

use of recipients and should not be transmitted to the Department. SF-

LLL completed by any tier recipient or subrecipient should be submitted

to the Department in accordance with the instructions contained in the

award document.

If an application is selected for funding, the Department of

Commerce has no obligation to provide any additional future funding in

connection with that award. Renewal or amendment of an award to

increase funding or to extend the period of performance is at the total

discretion of the Department.

Recipients and subrecipients are subject to all Federal laws and

Federal and DOC policies, regulations, and procedures applicable to

Federal financial assistance awards. In addition, unsatisfactory

performance by the applicant under prior Federal awards may result in

the application not being considered for funding.

Applicants are reminded that a false statement on the application

is grounds for denial or termination of funds and grounds for possible

punishment by a fine or imprisonment as provided in 18 U.S.C. 1001.

If applicants incure any costs prior to an award being made, they

do so solely at their own risk of not being reimbursed by the

Government. Notwithstanding any verbal or written assurance that may

have been received, there is no obligation on the part of DOC to cover

preaward costs.

IV. Funding Criteria

All PTFP funding criteria are equal in weight. 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, in no order of

priority, the following factors:

(a) The extent to which the project meets the program purposes set

forth in the Final Rules, 15 CFR 2301.2, as well as the specific

program priorities set forth in the Appendix of those 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 of substantial

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.

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, in no order of priority, the following factors:

(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.

V. Matching Requirements

(a) 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 100 percent of the funds necessary for the

planning of a public telecommunications construction project.

(b) Construction grants.

(1) A Federal grant award for the construction of a public

telecommunications facility shall be an amount determined by the Agency

and set forth in the award document. Such amount may not exceed 75

percent of the amount determined by the Agency to be the reasonable and

necessary cost of such project.

Special Note: As originally stated in the August 20, 1987, PTFP

Final Rules, and as reaffirmed and clarified in a November 22, 1991,

PTFP Policy Statement, NTIA has established a policy which is

intended to encourage stations to increase from 25% to 50% the

matching percentage in their proposals for equipment replacement,

improvement, and augmentation. The Agency has emphasized that

applicants proposing to provide first service to a geographic area

encounter considerable ineligible costs, including construction or

renovation of buildings or other similar expenses. NTIA, therefore,

expects to continue funding projects to extend service at up to 75%

of the total project cost. Applicants from small community-licensed

stations, or those who can show that a station licensed to a large

institution cannot obtain direct or in-kind support from the larger

institution, also will not be subject to this preference. Otherwise,

a showing of extraordinary need or an emergency situation will be

taken into consideration as justification for grants of up to 75% of

the project cost, but the presumption of 50% funding will be the

general rule for applications calling for the replacement,

improvement, or augmentation of equipment.

(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 Federal statute.

(3) 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 and compelling showing of need.

(4) The expenditure of any local matching funds prior to the

Closing Date will be disallowed.

(5) The Applicants should note that expenditure of local matching

funds prior to the award of a grant is at the applicant's own risk. The

exact amount of the match will not be known with certainty until the

final award agreement is negotiated. Therefore, should the applicant's

expenditure of non-Federal funds exceed the non-Federal share which

will be established in the final award agreement, then either the

Federal share of the total project cost may be reduced by a

corresponding amount, or no Federal award may be offered.

VI. Selection Process and Project Period

PTFP grants are awarded on the basis of a competitive review

process. This includes several grant review panels, which apply the

Funding Criteria listed in section V above. The Agency determines the

selection of grantees according to the Priorities listed in section III

above and the evaluation of the applications by the various review

panels.

Planning grant award periods customarily do not exceed one year,

whereas construction grant award periods commonly range up to two

years. Although these time frames are generally applied to the award of

all PTFP grants, variances in project periods may be based on specific

circumstances of an individual proposal.

Authority: The Public Telecommunications Financing Act of 1978,

Pub. L. 95-567, 92 Stat. 2405 (as amended), 47 U.S.C. 390-394, 397-

399b (1988).

Dr. Charles Rush,

Acting Associate Administrator, Office of Telecommunications and

Information Applications.

[FR Doc. 94-27 Filed 1-3-94; 8:45 am]

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