Public Telecommunications Facilities Program: Closing Date

DEPARTMENT OF COMMERCE

National Telecommunications and Information Administration

[Docket No. 991210330-9330-01]

RIN 0660-ZA10

Public Telecommunications Facilities Program: Closing Date

AGENCY: National Telecommunications and Information Administration

(NTIA), Commerce.

ACTION: Notice of Availability of Funds.

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SUMMARY: The National Telecommunications and Information Administration

(NTIA), U.S. Department of Commerce, announces the solicitation of

applications for planning and construction grants for public

telecommunications facilities under the Public Telecommunications

Facilities Program (PTFP).

DATES: Pursuant to 15 CFR 2301.8(b), 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 FY 2000 is February 17, 2000. Applications must be

received prior to 8 p.m. on or before February 17, 2000. Applications

submitted by facsimile or electronic means are not acceptable.

ADDRESSES: To obtain an application package, submit completed

applications, or send any other correspondence, write to: NTIA/PTFP,

Room H-4625, U.S. Department of Commerce, 1401 Constitution Avenue, NW,

Washington, DC 20230.

FOR FURTHER INFORMATION CONTACT: William Cooperman, Director, Public

Broadcasting Division, telephone: (202) 482-5802; fax: (202) 482-2156.

Information about the PTFP can also be obtained electronically via

Internet (http://www.ntia.doc.gov/otiahome/ptfp).

SUPPLEMENTARY INFORMATION:

I. Application Forms and Regulations

Applicants for matching grants under the PTFP must file their

applications on or before Thursday, February 17, 2000. NTIA anticipates

making grant awards by September 30, 2000. NTIA shall not be liable for

any proposal preparation costs.

Approximately $26 million is available for FY 2000 for PTFP grants

pursuant to Pub. L. 106-113, the ``Consolidated Appropriations Act,

Fiscal Year 2000''. The amount of a grant award by NTIA will vary,

depending on the approved project. For fiscal year 1999, NTIA awarded

$21.7 million in funds to 99 projects. The awards ranged from $5,538 to

$1,028,450.

The applicable Rules for the PTFP were published on November 8,

1996 (61FR 57966). Copies of the 1996 Rules will be posted on the NTIA

Internet site and NTIA will make printed copies available to

applicants. NTIA is hereby notifying potential applicants of the

procedures that will be used to process applications for digital

television conversion projects in the FY 2000 grant round. Parties

interested in applying for financial assistance should refer to these

rules and to the authorizing legislation (47 U.S.C. 390-393, 397-399b)

for additional information on the program's goals and objectives,

eligibility criteria, evaluation criteria, and other requirements.

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

five copies of a timely and complete application on a current form

approved by the Agency. Applicants for television projects in the

Broadcast Other category (15 CFR 2301.4(b)(6)) are requested to supply

one additional copy of their application (an original and six copies),

if this does not create a hardship on the applicant. The current

application form will be provided to applicants as part of the

application package. This form expires on November 30, 2000, and no

previous versions of the form may be used. (In accordance with the

Paperwork Reduction Act, the current application form has been cleared

under OMB control no. 0660-0003.)

Applicants sending applications by the United States Postal Service

or commercial delivery services must ensure that the carrier will be

able to guarantee delivery of the application by the Closing Date and

Time. NTIA will not accept mail delivery of applications posted on the

Closing Date or later and received after the above deadline. However,

if an application is received after the Closing Date due to (1) Carrier

error, when the carrier accepted the package with a guarantee for

delivery by the Closing Date, or (2) Significant weather delays or

natural disasters, NTIA will, upon receipt of proper documentation,

consider the application as having been received by the deadline.

Applicants submitting applications by hand delivery are notified

that, due to security procedures in the Department of Commerce, all

packages must be cleared by the Department's security office. Entrance

to the Department of Commerce Building for security clearance is on the

15th Street side of the building. Applicants whose applications are not

received by the deadline are hereby notified that their applications

will not be considered in the current grant round and will be returned

to the applicant. See 15 CFR 2301.8(c); but see also 15 CFR 2301.26.

NTIA will also return any application which is substantially

incomplete, or when the Agency finds that either the applicant or

project is ineligible for funding under 15 CFR 2301.3 or 2301.4. The

Agency will inform the applicant of the reason for the return of any

application.

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

sent a notification of the FY 2000 Grant round. Copies of the

application forms, Final Rules, Closing Date notification and

application guidelines will be available on the NTIA Internet site:

www.ntia.doc.gov/otiahome/ptfp. Those not on the mailing list or who

desire a printed copy of these materials may obtain copies by

contacting the PTFP at the telephone and fax numbers, at the Internet

site, or at mailing address listed above. Prospective applicants should

read the Final Rules carefully before submitting applications.

Applicants whose applications were deferred in FY 1999 will be mailed

information regarding the reactivation of their applications.

Applicants whose television projects were deferred from FY 99 should

carefully review Section III, Television Broadcasting and Digital

Conversion, regarding changes in policies which may apply to the

reactivation of their applications.

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.

Special Note: NTIA has established a policy which is intended to

encourage stations to increase from 25 percent to 50 percent the

matching percentage for those proposals that call for equipment

replacement, improvement, or augmentation (PTFP Policy Statement, 56 FR

59168 (1991)). The presumption of 50 percent funding will be the

general rule for the replacement, improvement or augmentation of

equipment. (This 50 percent presumption, however, does not apply to

digital television projects as explained in Section III. Television

Broadcasting and Digital Conversion.) A showing of extraordinary need

(i.e. small community-licensee stations or a station that is licensed

to a large institution (e.g., a college or university) documenting that

it does not receive direct or in-kind support from the larger

institution) or an emergency situation

[[Page 72227]]

will be taken into consideration as justification for grants of up to

75 percent of the total project cost for such projects.

A point of clarification is in order: NTIA expects to continue

funding projects to activate stations or to extend service at up to 75

percent of the total project cost. NTIA will do this because applicants

proposing to provide first service to a geographic area ordinarily

incur considerable costs that are not eligible for NTIA funding. The

applicant must cover the ineligible costs including those for

construction or renovation of buildings and other similar expenses.

Since NTIA has limited funds for the PTFP program, the PTFP Final

Rules (published November 8, 1996) modified NTIA's policy regarding the

funding of planning applications. Our policy now includes the general

presumption to fund planning projects at no more than 75 percent of the

project costs. NTIA notes that most of the planning grants awarded by

PTFP in recent years include matching in-kind services and funds

contributed by the grantee. The new NTIA policy, therefore, codifies

what already has become PTFP practice. NTIA, however, is mindful that

planning grants are sometimes the only resource that emerging community

groups have with which to initiate the planning of new facilities in

unserved areas. We, therefore, will continue to award up to 100 percent

of total project costs in cases of extraordinary need (e.g. small

community group proposing to initiate new public telecommunication

service).

We take this opportunity to restate the policy published in the

November 22, 1991, PTFP Policy Statement (56 FR 59168 (1991)),

regarding applicants' use of funds from the Corporation for Public

Broadcasting (CPB) to meet the local match requirements of the PTFP

grant. NTIA continues to believe that the policies and purposes

underlying the PTFP requirements could be significantly frustrated if

applicants routinely relied upon another Federally supported grant

program for local matching funds. Accordingly, NTIA has limited the use

of CPB funds for the non-Federal share of PTFP projects to

circumstances of ``clear and compelling need'' (15 CFR 2301.6(c)(2)).

NTIA intends to maintain that standard and to apply it on a case-by-

case basis.

II. Radio Broadcasting

During the FY 2000 grant round, NTIA is proposing no changes from

prior years in its support of radio applications. The policies

implemented in the next section of this document on Television

Broadcasting and Digital Conversion apply only to digital television

applications. The eligibility or priority of radio projects,

eligibility of radio equipment and the 50% presumption of funding for

radio equipment replacement applications remain as they were in the FY

99 grant round. NTIA will take great care to ensure that its funding of

radio applications reflects its responsibilities under 47 U.S.C. 393(c)

that ``a substantial amount'' of each year's PTFP funds should be

awarded to public radio.

NTIA encourages the use of digital technologies for public radio

facilities. NTIA has funded projects for digital STLs and audio

production equipment which will assist public radio stations as they

prepare for conversion to digital technologies. These digital projects

are funded as equipment replacement, improvement or augmentation

projects with the presumption of a 50 percent Federal share as

discussed earlier in Section I of this document, Application Forms and

Regulations, unless a showing of extraordinary need for a higher

percentage has been made pursuant to Sec. 2301.6(b)(ii) of the PTFP

Rules.

For fiscal year 1999, NTIA awarded $2.1 million in funds to 35

grants for public radio projects. The awards ranged from $5,538 to

$251,461.

III. Television Broadcasting and Digital Conversion

As outlined in this section, NTIA is establishing new policies in

the FY 2000 grant round that will apply only to FY 2000 applications

for projects to convert public television stations to digital

transmission capability. The FCC's adoption of the Fifth Report and

Order in April 1997 requires that all public television stations begin

the broadcast of a digital signal by May 1, 2003. This deadline is so

close that NTIA decided that the new policies should be applied in the

FY 2000 grant round. At the same time, NTIA wishes to invite comment on

these policies. All comments received will be considered carefully for

possible modification of the policies in subsequent years. They will be

printed or summarized in the Notice for the next grant round. Please do

not include your comments with any application you may submit, but

rather send them directly to the PTFP Director. Comments may be

submitted to William Cooperman, Director, Public Broadcasting Division,

by mail (see the ADDRESS section), by fax at (202) 482-2156, or by e-

mail to [email protected].

NTIA recognizes that meeting the FCC's deadline is one of the

greatest challenges facing America's public television stations. Over

350 stations must overcome both technical and financial challenges in

order to complete conversion to digital broadcasting within the FCC's

timetable.

In February 1999, the Administration proposed a major expansion of

the PTFP and recommended that $355 million be appropriated to NTIA over

a five-year period. These funds would primarily be used to assist

public television stations in meeting the FCC's deadline. While these

sums are significant, NTIA anticipates that the majority of funds

required to convert all the nation's public television stations will

actually come from non-Federal sources.

For fiscal year 1999, NTIA awarded $15.7 million in funds to 43

projects which assisted public television stations in the conversion to

digital technologies. The awards ranged from $25,252 to $1,028,450.

NTIA awarded approximately $5.4 million from the Broadcast Other

category to complete the digital conversion of eight public television

stations. NTIA also awarded an additional $5.3 million in equipment

replacement funds to seven projects which completed major phases of

digital conversion projects, such as the funding of two digital

statewide interconnection projects and eight replacement transmitters.

Further, an additional $5 million was awarded to 28 projects to

purchase digital television equipment required for the orderly

conversion of a station to digital broadcasting.

NTIA has considered how best to efficiently implement the

distribution of digital conversion funds to public television stations

through the PTFP. NTIA has received recommendations on this subject

from several public broadcasting organizations, including the

Corporation for Public Broadcasting's Task Force on Digital Television

Funding, the Association of America's Public Television Stations and

its Legislative Advisory Group, and the Organization of State

Broadcasting Executives. NTIA has also discussed with many individual

public television stations the challenges presented by the May 2003

deadline.

One of NTIA's goals during the FY 2000 grant round is to ensure

that PTFP's administrative procedures as well as its funds can support

public television's needs in meeting the FCC's 2003 deadline. Another

of NTIA's goals is to maintain an acceptable balance between equipment

replacement projects and digital television conversion projects. As a

result of these discussions, NTIA is implementing several new policies/

procedures which will assist public television stations in

[[Page 72228]]

the application for and use of PTFP funds for digital conversion

projects.

These new policies/procedures are summarized here and then are

discussed fully in parts A through G later in this section:

(A) Digital television conversion projects and digital equipment

replacement. NTIA has established a ``Digital TV List'' which includes

the equipment eligible for PTFP funding under the Broadcast Other

category. NTIA will also use the ``Digital TV List'' for most

television equipment replacement projects and modifies the way it views

television replacement applications.

(B) Multi-year funding. NTIA will accept applications under the

Broadcast Other category for phased projects requesting funding for up

to four years and which are intended to enable all of the applicant's

public television stations to meet the FCC's May 2003 digital

broadcasting deadline.

(C) Effective date for expenditure of local matching funds.

Applicants for digital conversion projects in the Broadcast Other

category may include eligible equipment from the Digital TV List in

their projects when that equipment is purchased with non-Federal funds

after July 1, 1999.

(D) Subpriorities for digital conversion projects. NTIA is creating

three Subpriorities to aid in the processing of digital conversion

applications.

(E) Funding levels for television projects. NTIA has revised the

presumption of funding from 50% Federal share for most television

projects to 40%, has established simplified procedures so stations can

qualify for hardship grants up to a 67% Federal share, and will provide

incentives for applicants who request only 25% Federal funding.

(F) Use of CPB funds. Applicants may use CPB funds as part of their

local non-Federal match in cases of clear and compelling need.

(G) Partnerships; urgency. NTIA encourages partnerships with

commercial as well as noncommercial organizations and clarifies its

consideration of urgency for digital conversion applications. NTIA

believes that digital conversion applications should be afforded high

urgency when they document time-sensitive partnerships, time-sensitive

funding opportunities, or which include the replacement of equipment

required to maintain existing service.

In developing these policies for the FY 2000 grant round, NTIA

intends to remain responsive to the equipment replacement needs of

public television stations. NTIA's balancing of equipment replacement

and digital conversion applications is discussed in the following

sections.

In order to assist public television stations in meeting the FCC's

May 2003 deadline and to facilitate a station's raising non-Federal

matching funds required for digital conversion projects. NTIA is

adopting new application procedures in the following areas.

(A) Digital Television Conversion Projects and Digital Equipment

Replacement. For FY 2000, NTIA will support the equipment necessary for

a public television station to comply with the FCC's 2003 deadline.

This includes equipment required for digital broadcast of programs

produced locally in analog format as well as the broadcast of digital

programming received from national sources. NTIA is posting on its

Internet site a listing of transmission and distribution equipment (as

contained in the ``Digital TV List'') which is eligible for PTFP

digital television conversion funding. Printed copies of this list are

also available from PTFP at the address shown in the ADDRESS section of

this document. This list was developed in conjunction with the Public

Broadcasting Service and is similar to equipment lists PTFP used during

last year's grant round. The Digital TV List includes transmission

equipment (transmitters, antennas, STLs, towers, etc.) as well as

distribution equipment located in a station's master control (routing

switchers, video servers, PSIP generators, digital encoders, etc.).

Applications seeking funding for the equipment necessary to meet the

FCC's 2003 deadline will, as in FY 98 and FY 99, be placed in the

Broadcast Other category.

NTIA believes that many stations must replace obsolete equipment in

order to complete their digital conversion projects. NTIA is now

revising its policies to permit the replacement of obsolete equipment

as part of digital conversion projects. If the conversion to digital

transmission includes the urgent replacement of an existing item of

equipment, the application will be considered as a Broadcast Other,

rather than as replacement under Priorities 2 or 4. Replacement of

existing equipment then is a normal part of a digital conversion

application.

If the purpose of an application is just for replacement of

urgently needed equipment, even though the equipment is drawn from the

Digital TV List, the application will be classified as a Priority 2 or

4, as appropriate.

Any application which includes equipment replacement as a

justification for the urgency criterion should submit documentation of

downtime or other evidence in support of the urgency evaluation

criterion as contained in Sec. 2301.17 of the PTFP Final Rules. The

need to replace current equipment in order to maintain existing

services will, in many cases, strengthen the urgency criterion of a

digital conversion application.

Because of the requirement that all public television stations

begin their digital broadcasts by May 2003, all public television

applications, whether submitted for Priority 2, Priority 4 or the

Broadcast Other category, should include the station's comprehensive

plan for digital conversion to meet the FCC's deadline and explain how

the requested equipment is consistent with that plan. If the applicant

is still developing its plan for digital conversion, the application

should address how the requested equipment will be consistent with the

overall objective of converting the facility for digital broadcasting.

Failure to provide detailed information on the applicant's proposed or

existing digital conversion plan will place a television application at

a competitive disadvantage during the evaluation of the technical

qualification criterion as described in 15 CFR 2301.17 of the PTFP

Rules.

NTIA calls applicants' attention to the fact that television

production equipment is not included on the Digital TV List but will be

found on other equipment lists posted on the NTIA Internet site or

available from NTIA by mail. NTIA notes that while a television station

must use digital transmission and distribution equipment to begin

digital broadcasting, digital production equipment is not required to

meet the FCC's May 2003 deadline. As the FCC deadline approaches, NTIA

has reluctantly concluded that, with the funds available to it in FY

2000, it cannot fund television production equipment at the same level

as it has in the past. Television production equipment will continue to

be eligible for PTFP funding under Priority 2 and Priority 4, as

appropriate. However, for the FY 2000 grant round NTIA will fund

television production equipment replacement applications only for those

projects that present a ``clear and compelling'' case for the urgency

of such replacement. NTIA anticipates funding television production

replacement projects in FY 2000, though fewer than in recent years.

When making the final selection of awards under the procedures of

Sec. 2301.17, NTIA will take care to ensure that there is an acceptable

balance between projects awarded for

[[Page 72229]]

equipment replacement projects and those awarded for digital conversion

projects. Further, NTIA will consider as part of this balance those

stations in the Broadcast Other category (1) Which request digital

conversion projects and (2) Which also include elements of equipment

replacement. NTIA will not fund applications in the Broadcast Other

category requesting digital conversion to the exclusion of those

Broadcast Other applications which include documentation supporting

equipment replacement as part of their urgency justification. Further,

in making funding decisions for FY 2000, NTIA will limit its support of

television replacement applications for production equipment to those

applications which present a ``clear and compelling'' justification for

funding during the current grant round.

A complete listing of equipment eligible for funding during the FY

2000 grant round is posted on the NTIA Internet site and printed copies

are available from PTFP.

(B) Multi-year funding. NTIA anticipates that it will take many

public television licensees several years to complete their digital

conversion projects. The time required to complete a digital conversion

project will be determined by several factors. In some instances, it

will take a station several years to raise the local funds required to

complete the project. Even if a station has accumulated all the funds

required for its digital conversion project, the technical complexity

of some projects (such as the construction of a 1,000-foot tower) will

probably require several years to complete. Finally, many public

television licensees operate several stations and are, therefore,

responsible for the conversion of multiple broadcast facilities.

NTIA recognizes that the construction period for many of these

digital conversion projects must, of necessity, be longer than the

typical one to two years of the usual PTFP grant. Further, NTIA

acknowledges that, with the funds available for award, the PTFP would

be unable to fully fund more than a few of the digital conversion

applications it could receive in FY 2000.

Therefore, for FY 2000, the PTFP will accept construction

applications within the Broadcast Other category for digital television

conversion projects which propose multi-year funding.

Applicants may submit project plans and budgets for up to four

years. A multi-year application must contain the applicant's entire

digital conversion plan. The plan must be divided into annual phases,

with each year's request a severable phase of the project. The

application must identify the Federal funds requested for each year.

Projects will be funded for no more than one year at a time.

Once a project is approved for first year funding, applicants will

not be required to compete each year for funding of subsequent phases.

Funding for each subsequent year will be at the sole discretion of the

Department of Commerce and will depend on satisfactory performance by

the recipient and the availability of funds to support the continuation

of the project(s).

Projections based on previous experience indicate availability of

between $10 million and $15 million to support multi-year digital

television projects in FY 2000. The exact level of funding available

for multi-year awards will be determined by NTIA after a review of

applications submitted for multi-year awards and those radio,

television and distance learning applications requesting a regular

award.

NTIA believes that initiating multi-year funding for digital

television awards has significant benefits for both public television

licensees and NTIA.

Submission of a multi-year application particularly should

help applicants which must convert multiple broadcast transmitters.

NTIA understands that many stations have already begun to raise

significant non-Federal funds with which they can begin to implement

their digital conversion plans. Upon submission of a multi-year

application, an applicant could begin spending its local match--at its

own risk. An applicant, therefore, might be able to complete a portion

of its digital conversion project using its local non-Federal funds for

which Federal matching funds may not be available for several years.

(For example, a future phase of a statewide project might be the

conversion of two repeater stations; one might be constructed with

available non-Federal funds, the second constructed if Federal funds

are received). Applicants are cautioned, however, that while

expenditure of the local match is permitted, PTFP Rules

(Sec. 2301.6(d)) prohibit a grantee from obligating funds from the

eventual Federal share of an award before a grant is actually awarded.

NTIA believes that a multi-year award will reduce the

administrative burden on both grantees and the PTFP. Grant recipients

will submit only one application to cover the multiple years of their

award, saving both the grantee and the PTFP the administrative tasks

required to process applications during the annual grant round.

Multi-year applications and awards will also assist both

NTIA and public broadcasting licensees in the advance planning required

to complete the conversion of almost 350 television facilities by May

2003.

By issuing multi-year grants, NTIA would be able to fund

the initial phases of more digital conversion projects with the monies

available in FY 2000 than if PTFP funded fewer entire digital

conversion plans.

NTIA believes that multi-year funding through the Broadcast Other

category also is appropriate for projects which include urgent

replacement of equipment, since, as noted earlier, most television

equipment replacement requests can be viewed as one phase of a

station's conversion to digital broadcasting.

Since NTIA for the first time is supporting multi-year funding for

digital conversion applications, applicants who are reactivating

applications deferred from the FY 99 grant round will be permitted to

revise their applications to include their full digital conversion

plans. This includes those applications which were submitted during the

FY 1999 grant round as Priority 2 or Priority 4 equipment replacement

applications, which may be reactivated as Broadcast Other digital

conversion applications. Applications which are reactivated for the FY

2000 grant round must comply with the guidelines included in this

notice, including the funding levels for television projects discussed

later in this document.

Applicants submitting projects for consideration under the

Broadcast Other category have a choice and may request either multi-

year funding or a single grant. However, applications submitted for

consideration under Priority 2 or Priority 4 may only request a single

grant for a project, as in the past. NTIA anticipates that a majority

of the television grants funded in FY 2000 will include multi-year

projects.

(C) Effective date for expenditure of local matching funds for

digital conversion projects. NTIA recognizes that many public

television stations have begun to raise significant non-Federal funds

for their digital conversion projects. State or local governments may

have appropriated funds to initiate digital conversion projects that,

by local law, must be expended during the fiscal year in which they are

awarded. Public television licensees that have raised significant non-

Federal funds may desire to take advantage of unique opportunities

(such as partnering with other stations to share broadcast

[[Page 72230]]

antennas or towers). Some stations may be anxious to begin digital

conversion projects with long lead times for completion, or may desire

to begin digital broadcasting on the same timetable as commercial

stations in their market. Within the limitations of Federal

regulations, NTIA supports efforts undertaken by public television

stations which bring the benefits of digital television broadcasting to

their communities as quickly as possible.

In order to facilitate the raising of non-Federal funds for digital

television projects and to also permit stations to begin construction

of their digital facilities as soon as possible, NTIA will permit an

applicant for a Broadcast Other project to include equipment in a PTFP

application if the equipment was purchased with non-Federal funds after

July 1, 1999. This date was selected to coincide with the beginning of

the 2000 fiscal year used by many state and local governments. NTIA

also anticipates that July 1, 1999 will be the effective date in the FY

2001, FY 2002 and FY 2003 grant rounds for the expenditure of non-

Federal funds for projects in the Broadcast Other category. Applicants

who desire to use equipment purchased prior to July 1, 1999 as part of

their local match must submit a ``clear and compelling justification''

supporting their request.

Applicants who are reactivating applications deferred from the FY

99 grant round will be permitted to use the closing date of their

original applications.

(D) Subpriorities for Digital Conversion Projects. As almost 350

public television stations are required to convert to digital

broadcasting by May 2003, NTIA anticipates a significant increase in

the number of applications in the Broadcast Other category for digital

conversion projects. In order to process these applications in an

orderly manner and to provide guidance to potential applicants for the

FY 2000 grant round, NTIA will divide the applications received for

digital conversion projects in the Broadcast Other category into three

subpriorities; Broadcast Other-A; Broadcast Other-B, and Broadcast

Other-C.

These three divisions are intended to reflect the priorities NTIA

has used in the evaluation of traditional broadcast applications and to

place a premium on projects either to assist stations providing sole

service, to encourage cooperative efforts among different stations, or

to support licensees facing the requirement to convert multiple

transmission facilities in several television markets. NTIA notes that

in the past it has been able to fund applications each year in most if

not all of the five traditional broadcast Priorities and anticipates

that it will be able to fund applications in FY 2000 in most if not all

of the subpriorities for applications received under the Broadcast

Other category.

NTIA will assign the following applications for conversion of

public broadcasting facilities to advanced digital technologies at the

first subpriority level within the Broadcast Other category. These

applications will receive equal consideration as subpriority A.

-- A single applicant providing the sole service in an area unserved by

a digital public television signal. This reflects PTFP's funding

priority for equipment replacement projects for sole service stations

(PTFP Priority 2).

-- Cooperative applications by two or more licensees for the first

digital public television service to an area. This is intended to

encourage cooperation and efficiencies among stations in overlap

markets (as listed by CPB) in constructing digital facilities. It would

provide stations in overlap markets the opportunity, if they work

collaboratively, to be eligible for the highest priority in funding

within this category.

-- A statewide staged plan for the conversion of multiple stations,

whether a state network, or other appropriate statewide organization,

or a staged plan from a licensee with stations in several markets. This

is intended to encourage licensees that must convert multiple stations

and also to encourage groups of stations to work collaboratively in

developing a digital conversion project.

NTIA will assign the following applications for conversion of

public broadcasting facilities to advanced digital technologies at the

second subpriority level within the Broadcast Other category. These

applications will receive equal consideration as subpriority B.

-- An applicant in a multi-PTV station market providing first public

television service in an area. An applicant in a multi-PTV station

market who chooses to file separately, rather than in conjunction with

another licensee in the same area, receives a second priority for

funding.

-- A cooperative application by two or more licensees in an area

already served by a digital public television station. The application

is given a priority over Broadcast Other--C to encourage efficiency and

cooperation. Since this is not the first service in the area, it is

given a second priority.

NTIA will assign the following applications for conversion of

public broadcasting facilities to advanced digital technologies at the

third subpriority level within the Broadcast Other category. These

applications will receive equal consideration as subpriority C.

-- Individual applicants proposing a second digital public television

service in an area already receiving a digital public television

signal. This reflects PTFP's funding priority for equipment replacement

applications in served areas (Priority 4).

-- All other public television digital conversion applications.

(E) Funding Levels for Television Projects. As noted earlier in

Section I of this document, NTIA has published several policies

regarding the presumed Federal share of a requested project. These

policies are intended to aid applicants in the planning of their

applications. The policy for PTFP support of equipment replacement

applications has long been the presumption of a 50 percent Federal

share, although applicants are permitted to submit justification for a

Federal grant of up to 75 percent of project costs. Those policies are

contained in Sec. 2301.6(b) of the PTFP Final Rules.

In reviewing the projected costs to convert all the public

television stations in the country, NTIA has concluded that it cannot

continue its 50 percent presumption of Federal funding for television

equipment replacement or digital conversion projects. Furthermore, NTIA

believes that many public television facilities will be unable to raise

50 percent of the project costs. A significant number of stations may

need Federal funding of 67 percent of a project's cost, or even up to

the legal maximum of 75 percent of a project's cost, in order for them

to meet the FCC's deadline.

In order to ensure that sufficient Federal funds are available to

support the conversion of the nation's public television stations, NTIA

is establishing a new policy regarding the presumed Federal funding

level for television equipment. As noted earlier in this section, NTIA

recognizes that equipment on the PTFP Digital TV List may be included

in either Broadcast Other digital conversion applications or in

Priority 2 or Priority 4 equipment replacement applications. In order

to treat all applicants equitably, NTIA's new policy will be the

presumption of a 40 percent Federal share of the eligible project costs

for television equipment for digital conversion or equipment

replacement, improvement or

[[Page 72231]]

augmentation projects. This 40 percent presumption will apply whether

the application requests consideration under the two equipment

replacement priorities (Priority 2 or 4) or under the digital

conversion category (Broadcast Other). As noted earlier, NTIA will fund

the replacement of production equipment upon a showing of clear and

compelling need. However, since the deadline for digital conversion is

rapidly approaching and Federal funds are limited, NTIA will fund

replacement of production equipment at the same level of Federal

support as digital conversion or equipment replacement projects. The

presumption of a 40 percent Federal share will extend to all television

projects to replace or upgrade equipment. However, because of the

emphasis NTIA places on the extension of broadcast services to unserved

areas, NTIA has retained the 75 percent level of Federal funding

applications proposing new television facilities in Priority 1

(Sec. 2301.4(b)(1)).

Applicants who are reactivating applications deferred from the FY

99 grant round will be permitted to request the same percentage of

Federal support as requested in the FY 99 application as long as the

scope of their application remains the same. Applicants who wish to

revise their deferred application to include their full digital

conversion plans, however, will be subject to the new policies

presented in this section.

As already noted, NTIA recognizes that many small stations,

primarily in rural areas, will be unable to raise even a 50 percent

local share of the funds required for their PTFP projects. NTIA has

long permitted stations to request more than the standard level of

Federal support upon a showing of ``extraordinary need'' per

Sec. 2301.6(b)(ii) of the PTFP Rules. NTIA will permit applicants to

qualify for hardship funding and receive a 67 percent Federal share of

their project costs. An applicant can qualify for 67% Federal funding

by certifying that it is unable to match at least 60 % of the eligible

project costs, and either (a) by providing documentation that its

average annual cash revenue for the previous four years is $2 million

or less, or (b) by providing documentation that the eligible project

costs are greater than the applicant's average annual cash revenue for

the previous four years.

In addition, NTIA will continue to permit any applicant to provide

justification that it has an ``extraordinary need'' for Federal funding

up to the legal limit of 75 percent of eligible project costs.

In order to gather additional funds to award to stations which

qualify under the hardship criteria, NTIA encourages financially able

applicants to request a smaller share of Federal funds for digital

equipment projects than the standard 40 percent. NTIA will add three

additional points to the application evaluations from the independent

review panel for applicants who request no more than 25 percent Federal

funding. This provision will give extra credit to applications already

highly reviewed, and, based on NTIA's previous experience, is often

sufficient to move applications into the range for funding.

However, when making the final selection of awards, NTIA will take

care to ensure that there is an acceptable balance between projects

awarded to stations requesting a 25 percent Federal share and those

requesting a higher Federal share. NTIA will not fund applications

requesting a 25 percent Federal share to the exclusion of applications

meeting the hardship criteria or to the exclusion of those requesting

the standard 40 percent Federal share.

(F) Use of CPB funds. As discussed earlier in this document at the

conclusion of Section I. Application Forms and Regulations, NTIA has

limited the use of CPB funds for the non-Federal share of PTFP projects

to circumstances of ``clear and compelling need'' (15 CFR

2301.6(c)(2)). NTIA recognizes that it will be difficult for many

public television stations to raise the funds required to meet the

FCC's digital broadcasting deadline. Therefore, NTIA continues its past

policy that applicants may submit justification under this section for

the use of CPB funds as part of their local match. Any request for the

use of CPB funds must be accompanied by a statement regarding any

limitations that CPB has placed on the expenditure of those funds.

(G) Miscellaneous Items. As discussed earlier in this section, part

(D) on New Subpriorities, NTIA encourages efforts which promote

efficiency within the public television system in order to save both

current conversion costs and future operating costs. NTIA, therefore,

also encourages public television stations to partner with commercial

entities when this is in the best interests of the public station and

the Federal government. In cases of public television partnerships with

commercial entities, the PTFP project will be limited to the public

television station's ownership share or use rights in the equipment.

NTIA believes that such partnerships with commercial organizations

comply with current PTFP regulations and PTFP has funded several

projects for joint use of towers and broadcast antennas.

The urgency of an application is one of the criteria under which

all PTFP applications are evaluated. (The evaluation criteria are

listed in Sec. 2301.17 of the PTFP Rules). NTIA suggests that there are

at least three situations in which Broadcast Other applications may

present high degrees of urgency. As we have just noted, applications

containing proposals for joint use/ownership partnerships with other

organizations may demonstrate a high urgency due to a time-sensitive

opportunity. NTIA encourages these applicants to document the time-

sensitive nature of the partnership opportunity in their response to

the urgency criterion.

NTIA also recognizes that some applicants may be presented with

time-sensitive funding opportunities and, therefore, encourages these

applicants to document the time sensitive nature of these funding

opportunities in their response to the urgency criterion. Finally, as

already noted, NTIA expects that some applications will request urgent

replacement of existing equipment as part of a Broadcast Other

application. NTIA encourages such applicants to provide documentation

of their need to replace their equipment during the current grant

round. This documentation might include maintenance logs, letters from

manufacturers, reports from independent engineers, photos etc.

NTIA will instruct the panels evaluating the FY 2000 Broadcast

Other applications that they should award the highest score under the

urgency criterion to those applications which fully justify and

document either (1) The time sensitive nature of partnerships, (2) the

time sensitive nature of funding opportunities, or (3) the need for

equipment replacements that must be accomplished during this grant

round in order to maintain existing services.

IV. Distance Learning Projects

Since 1979, NTIA has funded nonbroadcast distance learning projects

through the ``Special Applications'' category as established in

Sec. 2301.4(a) of the PTFP Rules. In 1996, NTIA established a similar

category for broadcast projects, ``Broadcast/other'' in

Sec. 2301.4(b)(6). NTIA encourages applications in either category for

innovative or unique distance learning projects which address

demonstrated and substantial community needs. For fiscal year 1999,

NTIA awarded $1.7 million in funds to nine grants for distance learning

projects. The awards ranged from $50,000 to $450,000.

[[Page 72232]]

The growth of digital technologies provides new opportunities for

distance learning projects using both broadcast or nonbroadcast

facilities. NTIA encourages applicants to consider the use of digital

technologies in proposing unique or innovative distance learning

projects for funding in FY 2000. Examples of innovative digital

applications might include projects (1) Which use broadband

technologies for distance learning, (2) which distribute educational or

informational programming via Direct Broadcast Satellite technologies,

or (3) which use the multi-channel capabilities of a digital public

television station. All distance learning applications must address

substantial and demonstrated needs of the communities being served.

NTIA is particularly interested in distance learning projects which

benefit traditionally underserved audiences, such as projects serving

minorities or people living in rural areas.

As discussed in Section III of this document, NTIA anticipates

that, in FY 2000, it will receive numerous digital conversion

applications in the Broadcast/ Other category. NTIA recognizes that,

due to the multi-channel capability of digital television, distance

learning components may well be a part of a digital conversion

application. NTIA will, therefore, consider such distance learning

proposals under the subpriorities established in Section III. If NTIA

determines that a broadcast distance learning project is not part of a

digital conversion application, NTIA will evaluate the application

pursuant to Secs. 2301.4(b)(6) and 2301.17.

The November 22, 1991, PTFP Policy Statement (56 FR 59168 (1991))

mentioned in the Application Forms and Regulations section discussed a

number of issues of particular relevance to applicants proposing

nonbroadcast educational and instructional projects and potential

improvement of nonbroadcast facilities. These policies remain in effect

and will be available to all PTFP applicants as part of the Guidelines

for preparing FY 2000 PTFP applications.

V. Eligible and Ineligible Costs

Eligible equipment for the FY 2000 grant round includes the

apparatus necessary for the production, interconnection, captioning,

broadcast, or other distribution of programming, including but not

limited to studio equipment; audio and video storage, processing, and

switching equipment; 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; and optical fiber communications equipment.

A complete listing of equipment eligible for funding during the FY

2000 grant round is posted on the NTIA Internet site and printed copies

are available from PTFP.

Other Costs

(1) Construction Applications: NTIA generally will not fund salary

expenses, including staff installation costs, and pre-application legal

and engineering fees. Certain ``pre-operational expenses'' are eligible

for funding. (See 15 CFR 2301.2.) Despite this provision, NTIA regards

its primary mandate to be funding the acquisition of equipment and only

secondarily funding of salaries. A discussion of this issue appears in

the PTFP Final Rules under the heading Support for Salary Expenses in

the introductory section of the document.

(2) Planning Applications. (a) Eligible: Salaries are eligible

expenses for all planning grant applications, but should be fully

described and justified within the application. Planning grant

applicants may lease office equipment, furniture and space, and may

purchase expendable supplies under the terms of 47 U.S.C. 392(c). (b)

Ineligible: Planning grant applications cannot include the cost of

constructing or operating a telecommunications facility.

(3) Audit Costs. Audits shall be performed in accordance with audit

requirements contained in Office of Management and Budget Circular A-

133, Audits of States, Local Governments, and Non-Profit Organizations,

revised June 30, 1997. OMB Circular A-133 requires that non-profit

organizations, government agencies, Indian tribes and educational

institutions expending $300,000 or more in federal funds during a one-

year period conduct a single audit in accordance with guidelines

outlined in the circular. Applicants are reminded that other audits may

be conducted by the Office of Inspector General.

NTIA recognizes that most of its grant recipients are divisions of

state and local governments or are public broadcasting facilities, all

of which routinely conduct annual audits. In order to make the maximum

amount of monies available for equipment purchases and planning

activities, NTIA will, therefore, fund audit costs only in exceptional

circumstances.

VI. Notice of Applications Received

In accordance with 15 CFR 2301.13, NTIA will publish a notice in

the Federal Register listing all applications received by the Agency.

Listing an application merely acknowledges receipt of an application to

compete for funding with other applications. This listing does not

preclude subsequent return of the application for the reasons discussed

under the Dates section above, or disapproval of the application, nor

does it assure that the application will be funded. The notice will

also include a request for comments on the applications from any

interested party. NTIA will also publish more complete information

about all the applications received by the Agency on the NTIA Internet

site and will make this information available by mail. The address of

the NTIA Internet site is: www.ntia.doc.gov/otiahome/ptfp.

VII. Evaluation Process

See 15 CFR 2301.16 for a description of the Technical Evaluation

and 15 CFR 2301.17 for the Evaluation Criteria.

VIII. Selection Process

Based upon the above cited evaluation criteria, the PTFP program

staff prepares summary recommendations for the PTFP Director. These

recommendations incorporate outside reviewers rankings and

recommendations, engineering assessments, and input from the National

Advisory Panel, State Single Point of Contacts and state

telecommunications agencies. Staff recommendations also consider

project impact, the cost/benefit of a project and whether review panels

have consistently applied the evaluation criteria. The PTFP Director

will consider the summary recommendations prepared by program staff,

will recommend the funding order of the applications, and will present

recommendations to the OTIA (Office of Telecommunications and

Information Applications) Associate Administrator for review and

approval. The PTFP Director recommends the funding order for

applications in three categories: ``Recommended for Funding,''

``Recommended for Funding if Funds Available,'' and ``Not Recommended

for Funding.'' See 15 CFR 2301.18 for a description of the selection

factors retained by the Director, OTIA Associate Administrator, and the

Assistant Secretary for Telecommunications and Information.

Upon review and approval by the OTIA Associate Administrator, the

Director's recommendations will then

[[Page 72233]]

be presented to the Selection Official, the NTIA Administrator. The

NTIA Administrator selects the applications for possible grant award

taking into consideration the Director's recommendations and the degree

to which the slate of applications, taken as a whole, satisfies the

program's stated purposes set forth at 15 CFR 2301.1(a) and (c). Prior

to award, applications may be negotiated between PTFP staff and the

applicant to resolve whatever differences might exist between the

original request and what PTFP proposes to fund. Some applications may

be dropped from the proposed slate due to lack of FCC licensing

authority, an applicant's inability to make adequate assurances or

certifications, or other reasons. Negotiation of an application does

not ensure that a final award will be made. The PTFP Director

recommends final selections to the NTIA Administrator applying the same

factors as listed in 15 CFR 2301.18. The Administrator then makes the

final award selections taking into consideration the Director's

recommendations and the degree to which the slate of applications,

taken as a whole, satisfies the program's stated purposes in 15 CFR

2301.1(a) and (c).

IX. Project Period

Planning grant award periods customarily do not exceed one year,

whereas construction grant award periods for grants in the five

broadcast Priorities and nonbroadcast Special Applications category

commonly range from one to two years. Construction projects funded in

the Broadcast Other category would commonly be awarded for a one to two

year period with the expectation that they would be extended annually

in subsequent years dependent on the availability of Federal funds.

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.

X. NTIA Policies on Procedural Matters

Based upon NTIA's experience during the PTFP 1999 grant round, NTIA

has determined that it is in the best interest of NTIA and applicants

to continue recent policies regarding three procedural matters. The

following policies are applicable only to the FY 2000 PTFP grand round

and resulting awards.

Applications Resulting From Catastrophic Damage or Emergency

Situations.

Section 2301.10 provides for submission of applications resulting

from catastrophic damage or emergency situations. NTIA would like to

clarify its implementation of this provision.

For FY 2000 PTFP applicants, 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, or as

the result of significant equipment failure, and is in dire need of

assistance in funding replacement of the damaged equipment, it may file

an emergency application for PTFP funding at any time. NTIA limits this

request to equipment essential to a station's continued operation such

as transmitters, towers, antennas, STLs or similar equipment which, if

the equipment failed, would result in a complete loss of service to the

community.

When submitting an emergency application, the applicant should

describe the circumstances that prompt the request and should provide

appropriate supporting documentation. NTIA requires that applicants

claiming significant failure of equipment will document the

circumstances of the equipment failure and demonstrate that the

equipment has been maintained in accordance with standard broadcast

engineering practices.

NTIA will grant an award only if it determines that (1) The

emergency satisfies this policy, and (2) the applicant either carried

adequate insurance or had acceptable self-insurance coverage.

Applications filed and accepted for emergency applications must

contain all of the information required by the Agency application

materials and must be submitted in the number of copies specified by

the Agency.

NTIA will evaluate the application according to the evaluation

criteria set forth in Sec. 2301.17(b). The PTFP Director takes into

account program staff evaluations (including the outside reviewers) the

availability of funds, the type of project and broadcast priorities set

forth at Sec. 2301.4(b), and whether the applicant has any current NTIA

grants. The Director presents recommendations to the Office of

Telecommunications and Information Applications (OTIA) Associate

Administrator for review and approval. Upon approval by the OTIA

Associate Administrator, the Director's recommendation will be

presented to the Selecting Official, the NTIA Administrator. The

Administrator makes final award selections taking into consideration

the Director's recommendation and the degree to which the application

fulfills the requirements for an emergency award and satisfies the

program's stated purposes set forth at Sec. 2301.1(a) and (c).

Service of Applications

For the FY 2000 PTEP, applicants are not required to submit copies

of their PTFP applcations to the FCC, nor will they be required to

submit copies of the FCC transmittal cover letters as part of their

PTFP applications. NTIA routinely notifies the FCC of projects

submitted for funding which require FCC authorizations.

For the FY 2000 PTFP, applicants for distance learning projects are

not required to notify every state telecommunications agency in a

potential service area. Many distance learning applications propose

projects which are nationwide in nature. NTIA, therefore, believes that

the requirement to provide a summary copy of the application in every

state telecommunications agency in a potential service area is unduly

burdensome to applicants. NTIA, however, does expect that distance

learning applicants will notify the state telecommunication agencies in

the states in which they are located.

Federal Communications Commission Authorizations

For the FY 2000 PTFP, applicants may submit applications to the FCC

after the closing date, but do so at their own risk. Applicants are

urged to submit their FCC applications with as much time before the

PTFP closing date as possible. No grant will be awarded for a project

requiring FCC authorization until confirmation has been received by

NTIA from the FCC that the necessary authorization will be issued.

For the FY 2000 PTFP applications, since there is no potential for

terrestrial interference with Ku-band satellite uplinks, grant

applicants for Ku-band satellite uplinks may submit FCC applications

after a PTFP award is made. Grant recipients for Ku-band satellite

uplinks will be required to document receipt of FCC authorizations to

operate the uplink prior to the release of Federal funds.

For the FY 2000 PTFP applications, NTIA may accept FCC

authorizations that are in the name of an organization other than the

PTFP applicant in certain circumstances. Applicants requiring the use

of FCC authorizations issued to another organization should discuss in

the application Program Narrative why the FCC authorization must be in

the

[[Page 72234]]

other organization's name. NTIA believes that such circumstances will

be rare and, in its experience, are usually limited to authorizations

such as those for microwave interconnections or satellite uplinks.

As noted above, for the FY 2000 PTFP applications, NTIA does not

require that the FCC applications be filed by the closing date. While

NTIA is permitting submission of FCC applications after the closing

date, applicants are reminded that they must continue to provide copies

of FCC applications, as they were filed or will be filed, or equivalent

engineering data, in the PTFP application so NTIA can properly evaluate

the equipment request. These include applications for permits,

construction permits and licenses already received for (1) construction

of broadcast station, (including a digital broadcasting facility) or

translator, (2) microwave facilities, (3) ITFS authorizations, (4) SCA

authorizations, and (5) requests for extensions of time.

For those applicants whose projects require authorization by the

Federal Communications Commission (FCC), NTIA reminds applicants that

the mailing address for the Federal Communications Commission has

changed to: 445 12th St. SW, Washington DC 20554.

XI. Department of Commerce Application Requirements

Applicants should note that they must continue to 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 provide a copy of

their completed application to the appropriate SPOC on or before

February 17, 2000. Applicants are encouraged to contact the appropriate

SPOC well before the PTFP closing date. A listing of the state SPOC

offices may be found with the PTFP application materials at the NTIA

Internet site. A list of the SPOC offices is available from NTIA (see

the ADDRESS section above).

You are not required to respond to a collection of information

sponsored by the Federal government, and the government may not conduct

or sponsor this collection, unless it displays a currently valid OMB

control number or if we fail to provide you with this notice. (In

accordance with the Paperwork Reduction Act, the current application

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

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

``Certifications Regarding Debarment, Suspension, and Other

Responsibility Matters; Drug-Free Workplace Requirements and

Lobbying,'' and the following explanations are hereby provided:

(1) Nonprocurement Debarment and Suspension. Prospective

participants (as defined at 15 CFR part 26, Sec. 105) are subject to 15

CFR part 26, ``Nonprocurement Debarment and Suspension'' and the

related section of the certification form prescribed above applies;

(2) Drug Free Workplace. Grantees (as defined at 15 CFR part 26,

Sec. 605) are subject to 15 CFR part 26, Subpart F, ``Government-wide

Requirements for Drug-Free Workplace (Grants)'' and the related section

of the certification form prescribed above applies;

(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 applicants/bidders

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,'' (OMB Control Number 0348-0046) as required under

15 CFR part 28, Appendix B.

Recipients 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 submitted by any

tier recipient or subrecipient should be submitted to the Department in

accordance with the instructions contained in the award document.

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 are made.

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 of an award to increase funding or

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 assistance awards. In addition, unsatisfactory performance by

the applicant under prior Federal awards may result in the application

not being considered for funding.

If applicants incur 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 they have

received, there is no obligation on the part of the Department to cover

preaward costs.

Applicants are reminded that a false statement on the application

may be 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.

Authority: The Public Telecommunications Financing Act of 1978,

as amended, 47 U.S.C. 390-393, 397-399(b). (Catalog of Federal

Domestic Assistance No. 11.550).

Bernadette McGuire-Rivera,

Associate Administrator, Office of Telecommunications and Information

Applications.

[FR Doc. 99-33327 Filed 12-22-99; 8:45 am]

BILLING CODE 3510-60-P