# Public Telecommunications Facilities Program: Availability of Funds

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URL: https://www.frixlaw.com/law-library/documents/fr%3A94-27

## Record

- **Collection:** Federal Register
- **Document type:** Notice
- **Published:** January 4, 1994
- **Citation:** 59 FR 452

## Text

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]
BILLING CODE 3510-60-M

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A94-27. Public record. Not legal advice.