# Broadband Initiatives Program

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URL: https://www.frixlaw.com/law-library/documents/fr%3AE9-16268

## Record

- **Collection:** Federal Register
- **Document type:** Notice
- **Published:** July 9, 2009
- **Citation:** 74 FR 33104

## Text

DEPARTMENT OF AGRICULTURE
Rural Utilities Service
RIN 0572-ZA01
Broadband Initiatives Program
DEPARTMENT OF COMMERCE
National Telecommunications and Information Administration
RIN 0660-ZA28
Broadband Technology Opportunities Program

AGENCIES:

Rural Utilities Service (RUS), Department of Agriculture, and National Telecommunications and Information Administration (NTIA), Department of Commerce.

ACTION:

Notice of Funds Availability (NOFA) and solicitation of applications.

SUMMARY:

RUS and NTIA announce general policy and application procedures for broadband initiatives established pursuant to the American Recovery and Reinvestment Act of 2009 (Recovery Act). RUS is establishing the Broadband Initiatives Program (BIP) which may extend loans, grants, and loan/grant combinations to facilitate broadband deployment in rural areas. NTIA is establishing the Broadband Technology Opportunities Program (BTOP) which makes available grants for deploying broadband infrastructure in unserved and underserved areas in the United States, enhancing broadband capacity at public computer centers, and promoting sustainable broadband adoption projects. In facilitating the expansion of broadband communications services and infrastructure, both programs will advance the objectives of the Recovery Act to spur job creation and stimulate long-term economic growth and opportunity.

DATES:

Applications will be accepted between July 14, 2009, at 8 a.m. Eastern Time (ET) until August 14, 2009, at 5 p.m. ET.

Application Submission:
The application packages for electronic and paper submissions will be available at
http://www.broadbandusa.gov
.

Electronic submissions:
Electronic submissions of applications will allow for the expeditious review of an applicant's proposal consistent with the goals of the Recovery Act. As a result, all applicants requesting more than $1 million in assistance (in the form of grants, loans, or a combination of grants and loans) must file their application electronically. Applicants whose authorized representatives are individuals with disabilities, however, may submit a paper application irrespective of the funding size of their request.
1

In addition, applicants who are requesting less than $1 million in assistance may forego the electronic filing requirement if filing electronically would impose a hardship on the applicant. Electronic applications must be submitted by 5 p.m. ET on August 14, 2009. The government electronic application system will provide a date and time stamped confirmation number that will serve as proof of submission.

1

See
Rehabilitation Act of 1973 § 508, 29 U.S.C. 794d.

Paper submissions:
Applicants requesting less than $1 million in assistance (in the form of grants, loans, or a combination of grants and loans) may file their applications in a paper format if filing electronically would impose a hardship on the applicants. Applicants whose authorized representatives are individuals with disabilities may file their applications in a paper format irrespective of the funding size of their request. To the extent that applicants use electronic word processing software to create paper submissions, they should include in their filing, to the extent possible, an electronic copy of the paper application on an appropriate media such as a CD. This will assist the agencies in processing paper applications. Paper submissions must be postmarked no later than August 14, 2009, or hand-delivered no later than 5 p.m. ET on August 14, 2009, to the addresses listed in the
Supplementary Information
in this NOFA.

Contact Information:
For general inquiries regarding BIP, contact David J. Villano, Assistant Administrator Telecommunications Program, Rural Utilities Service, U.S. Department of Agriculture (USDA), e-mail:
bip@wdc.usda.gov
telephone: (202) 690-0525. For general inquiries regarding BTOP, contact Anthony Wilhelm, Deputy Associate Administrator, Infrastructure Division, Office of Telecommunications and Information Applications, National Telecommunications and Information Administration, U.S. Department of Commerce (DOC), email:
btop@ntia.doc.gov
, telephone: (202) 482-2048. For inquiries regarding BIP and BTOP compliance requirements, including applicable federal rules and regulations protecting against fraud, waste and abuse, contact
bipcompliance@wdc.usda.gov
for BIP and
btopcompliance@ntia.doc.gov
for BTOP. You may obtain additional information regarding applications for BIP via the Internet at
http://www.usda.gov/rus/telecom/
and for BTOP at
http://www.ntia.doc.gov/broadbandgrants/
.

Authority:
This notice is issued pursuant to the American Recovery and Reinvestment Act of 2009, Public Law 111-5, 123 Stat. 115 (2009) and the Rural Electrification Act of 1936, 7 U.S.C. 901
et seq.

SUPPLEMENTARY INFORMATION:

Catalog of Federal Domestic Assistance (CFDA) Number:
Broadband Initiatives Program (BIP)—10.787; Broadband Technology Opportunities Program (BTOP)—11.557.

Additional Items in Supplementary Information

I. Overview:
Describes the purposes of the Recovery Act, the broadband goals of the Recovery Act, and the establishment of BIP and BTOP.

II. Funding Opportunity Description:
Provides a more thorough description of BIP and BTOP.

III. Definitions:
Sets forth the key statutory terms and other terms used in BIP and BTOP.

IV. Award Information:
Describes funding availability, grant and loan terms, as applicable, and other award information.

V. Eligibility Information for BIP and BTOP:
Establishes eligibility criteria, eligibility factors, eligible and ineligible costs, and other eligibility requirements.

VI. Application and Submission Information:
Provides information regarding how to apply, application materials, and the application process.

VII. Application Review Information:
Establishes the evaluation criteria for application review.

VIII. Anticipated Announcement and Award Dates:
Identifies the initial announcement date for certain awards, and provides other information regarding BIP and BTOP.

IX. Award Administration Information:
Provides award notice information, administrative and national policy requirements, terms and conditions, and other reporting requirements for award recipients.

X. Other Information:
Sets forth guidance on funding, compliance with various laws, confidentiality, discretionary awards, and authorized signatures.

I. Overview

On February 17, 2009, President Obama signed the American Recovery and Reinvestment Act of 2009 (Recovery Act) into law.
2

The essential goal of the Recovery Act is to provide a “direct fiscal boost to help lift our Nation from the greatest economic crisis in our lifetimes and lay the foundation for

future growth.”
3

Accordingly, the Recovery Act identifies five overall purposes: A. To preserve and create jobs and promote economic recovery; B. to assist those most impacted by the recession; C. to provide investments needed to increase economic efficiency by spurring technological advances in science and health; D. to invest in transportation, environmental protection, and other infrastructure that will provide long-term economic benefits; and E. to stabilize state and local government budgets.
4

The Recovery Act further instructs the President and the heads of federal departments and agencies to manage and expend Recovery Act funds to achieve these five purposes, “commencing expenditures and activities as quickly as possible consistent with prudent management.”
5

2
American Recovery and Reinvestment Act of 2009, Public Law 111-5, 123 Stat. 115 (2009).

3
President Obama, Statement on Signing the American Recovery and Reinvestment Act of 2009 (Feb. 17, 2009).

4
Recovery Act § 3(a), 123 Stat. at 115-16.

5

See id.
§ 3(b), 123 Stat. at 116.

Consistent with the purposes described above, the Recovery Act provides RUS and NTIA with $7.2 billion to expand access to broadband services in the United States. In so doing, it recognizes the growing importance of access to broadband services to economic development and to the quality of life of all Americans. Specifically, the Recovery Act tasks RUS, NTIA, and the Federal Communications Commission (FCC) with leading the federal government's efforts to begin the process of significantly expanding the reach and quality of broadband services.

RUS, NTIA, and the FCC have worked closely to leverage the authorities and resources provided in the Recovery Act to develop a coordinated federal government approach to addressing the challenge of rapidly expanding the access and quality of broadband services across the country. Each agency brings unique skills and resources to this effort. RUS has been the federal government leader in bringing telecommunications to rural America for decades. NTIA has experience in awarding technology-related grants through the Technology Opportunities Program and serves as the President's principal advisor on telecommunications and information policies.
6

And NTIA and the FCC together are responsible for the development of federal telecommunications policy.

6

See
Technology Opportunities Program,
http://www.ntia.doc.gov/otiahome/top/index.html;
NTIA Organization Act of 1992, 47 U.S.C. 901
et seq.

Additionally, to aid in achieving Recovery Act objectives, on March 10, 2009, RUS, NTIA, and the FCC co-sponsored a public meeting to initiate public outreach about the current availability of broadband service in the United States and ways in which the availability of broadband services could be expanded.
7

The March 10 meeting was followed by the release of a Request for Information (RFI) and six days of additional public meetings and field hearings during March.
8

The meetings and hearings included nearly 120 panelists—including representatives from consumer and public interest groups, state and local governments, tribal governments, minority and vulnerable populations, industry, academia, and other institutions—who provided comment on how to make RUS's and NTIA's broadband initiatives effective, equitable, and efficient.
9

7

See
Joint Notice of Public Meeting, 74 FR 8914 (Feb. 27, 2009).

8

See
Joint Request for Information and Notice of Public Meetings, 74 FR 10716 (Mar. 12, 2009).

9
Agendas, transcripts, and presentations from each meeting are available on NTIA's Web site at:
http://www.ntia.doc.gov/broadbandgrants/meetings.html
.

In response to the RFI and the public meetings, RUS and NTIA received over 1,000 comments from institutions and individuals.
10

RUS and NTIA received comments on multiple issues surrounding BIP and BTOP, including how the terms “broadband,” “unserved area,” and “underserved area” should be defined, resulting in the definitions and program requirements announced in this NOFA. These comments played a crucial role in formulating the structure of the RUS and NTIA broadband programs. For further discussion and explanation of the agencies' reliance on the public comments in the policy decisions involved in BIP and BTOP, see the attached Policy Justification found in the Appendix at the end of this NOFA.

RUS and NTIA Recovery Act programs implement new authorities. Specifically, the Recovery Act expands RUS's existing authority to make loans and provides new authority to make grants to facilitate broadband deployment in rural areas. The Recovery Act appropriates $2.5 billion of budget authority for RUS to extend loans, loan/grant combinations, and grants to projects where at least 75 percent of an RUS-funded area is in a rural area that lacks sufficient access to high speed broadband service to facilitate rural economic development. RUS has developed BIP to fund broadband infrastructure in qualifying areas.
11

10
Comments may be viewed on NTIA's Web site at:
http://www.ntia.doc.gov/broadbandgrants/comments
.

11

See
Recovery Act div. A, tit. I, 123 Stat. at 118.

The Recovery Act also appropriates $4.7 billion to NTIA to provide grants for broadband initiatives throughout the United States, including unserved and underserved areas.
12

NTIA is tasked to spur job creation, stimulate long-term economic growth and opportunity, and narrow gaps in broadband deployment and adoption. The NTIA program is titled BTOP. Consistent with its appropriation, BTOP is divided into three categories of projects: Broadband Infrastructure, Public Computer Centers, and Sustainable Broadband Adoption.

12

See id.
div. A, tit. II, 123 Stat. at 128.

Applications to fund broadband infrastructure projects in areas which are at least 75 percent rural are required to be submitted to RUS for consideration under BIP. If such applicants intending to serve rural areas also choose to be considered for BTOP funding, then they must complete the additional elements required of BTOP infrastructure applicants. NTIA may make awards to such applications NTIA determines to be meritorious after RUS has reviewed the application and determined not to fund it. All other applications for Broadband Infrastructure projects, as well as applications for Public Computer Centers or Sustainable Broadband Adoption projects, must be submitted to NTIA for consideration under BTOP.

The purpose of this NOFA is to describe the availability of the BIP and BTOP funds and set forth the application requirements for those entities wishing to participate in one or more of the Recovery Act's broadband programs. Applicants may submit projects that fit within one or more categories. Each application will be compared against objective criteria to determine whether an award is warranted.

In order to balance the burdens on applicants versus the needs of the agencies to efficiently evaluate applications, RUS and NTIA have developed a two-step application process. In step one, the goal is to create a pool of viable and potentially fundable applications. Step two is to fully validate the submissions in step one and identify the most highly qualified applications for funding.

Rapid disbursement of the funds available under this program is important because of the short time frames imposed by the Recovery Act. Additionally, a commitment to transparency in the award process and

rigorous reporting requirements will help ensure accountability.

Approximately $4 billion of program level funding has been allocated to this NOFA by RUS and NTIA. The remaining funds will be made available under subsequent NOFAs. The requirements for subsequent NOFAs may differ from this NOFA to better achieve the agencies' priorities.

II. Funding Opportunity Description

A. BIP

1. BIP Objectives

The Recovery Act expands RUS's existing authority to make loans and provides new authority to make grants for the purpose of facilitating broadband deployment in rural communities. Specifically, the Recovery Act requires that 75 percent of a funded area be in a rural area that lacks sufficient access to high speed broadband service to facilitate economic development. Because of the short time frames imposed by the Recovery Act, the requirements outlined in this NOFA will be used to govern program implementation.

Under BIP, RUS will award grants, loans, and loan/grant combinations for broadband infrastructure. Grants under BIP are to be used to fund applications proposing to exclusively serve remote, unserved, rural areas. BIP loan and loan/grant combination funds are to be used to provide funding to applications proposing to serve non-remote and underserved rural areas. Projects which include non-remote and remote areas will be funded by loans or loan/grant combinations. The size of the grant portion of any loan/grant combination award is determined by the applicant, but cannot exceed the amount of the loan portion of the award. RUS will favor applications that propose a higher percentage of loan funds. Applicants may request 100 percent loan funding. RUS will seek to make the extension of broadband infrastructure into difficult-to-serve areas affordable—a key objective of BIP funding—through substantial grant funds and attractive loan terms with reasonable security requirements.

The Recovery Act establishes the rapid disbursement of the funds as an important priority for the BIP program. However, the program also must be administered judiciously to ensure responsible use of public funds. To balance these two objectives, RUS will favor funding projects that can commence construction promptly and demonstrate technical and financial feasibility, organizational capacity, and compliance with other Administration priorities. A commitment to transparency in the award process and rigorous reporting requirements will help ensure accountability.

2. BIP Priorities

The Recovery Act requires that 75 percent of a BIP-funded area be in a rural area that “lacks sufficient access to high speed broadband service to facilitate rural economic development.”
13

Additionally, the Recovery Act mandates that priority be given to projects which: a. Give end users a choice of providers; b. Serve the highest proportion of rural residents that lack access to broadband service; c. Are projects of current or former RUS borrowers (Title II borrowers); and d. Are fully funded and ready to start once Recovery Act funding is received. BIP application scoring criteria awards projects that implement these priorities.
14

13

Id.
div. A, tit. I, 123 Stat. at 118.

14

Id.
at 118-19.

3. BIP Application and Selection Process

RUS has adopted a two-phase application process. Step one of the application process requires the submission of the information described in section VI.D.1.a. This information will be evaluated by RUS for completeness and eligibility. Ineligible and incomplete applications will be rejected. Eligible applications will be evaluated and ranked based on the applicable scoring criteria described in section VII. The highest scoring applications will be invited to participate in step two of the application process by submitting the additional documentation described in section VI.D.1.b. to further support the applicants' representations made in step one of the application process. If the additional documentation does not adequately verify the first submission, then the application will be rejected.

B. BTOP

1. BTOP Objectives

Section 6001 of the Recovery Act establishes a national broadband service development and expansion program to promote five core purposes:

a. To provide access to broadband service to consumers residing in unserved areas of the country;

b. To provide improved access to broadband service to consumers residing in underserved areas of the country;

c. To provide broadband access, education, awareness, training, equipment, and support to community anchor institutions (
e.g.,
schools, libraries, medical facilities), or organizations and agencies serving vulnerable populations (
e.g.,
low-income, unemployed, aged), or job-creating strategic facilities located in state- or federally designated economic development areas;

d. To improve access to, and use of, broadband service by public safety agencies; and

e. To stimulate the demand for broadband, economic growth, and job creation.
15

15

See id.
§ 6001(b), 123 Stat. at 512-13.

The Recovery Act provides $4.7 billion to NTIA for BTOP, to be awarded by September 30, 2010, which represents a significant investment to advance President Obama's national broadband strategy.
16

Of this amount, at least $200 million will be made available for competitive grants for expanding public computer center capacity. In addition, at least $250 million will be available for competitive grants for innovative programs to encourage sustainable adoption of broadband services. Up to $350 million is available from the Recovery Act to fund the State Broadband Data and Development Grant Program authorized by the Broadband Data Improvement Act
17

and to support the development and maintenance of a nationwide broadband map for use by policymakers and consumers. A forthcoming NOFA will outline policies and procedures for the State Broadband Data and Development Grant Program.

16

See

id.
div. A, tit. II, 123 Stat. at 128.

17
Public Law 110-385, 122 Stat. 4096 (to be codified at 47 U.S.C. 1301
et seq.
).

BTOP funds are available through three categories of eligible projects: Broadband Infrastructure, Public Computer Centers, and Sustainable Broadband Adoption.
18

The Broadband Infrastructure category consists of two components—Last Mile and Middle Mile—and will fund projects to deliver broadband access to unserved and underserved areas. The Public Computer Center category will fund projects that expand public access to broadband service and enhance broadband capacity at entities, such as community colleges and public libraries, that permit the public to use these computing centers.
19

The Sustainable Broadband Adoption category will fund innovative projects that promote broadband demand, including projects focused on providing broadband education, awareness, training, access, equipment or support,

particularly among vulnerable population groups where broadband technology has traditionally been underutilized.
20

18

See
Recovery Act div. A, tit. II, 123 Stat. at 128.

19

Id.
div. A, tit. II & § 6001(b)(3), 123 Stat. at 128, 512-13.

20

Id.
div. A, tit. II & 6001(b)(5), 123 Stat. at 128, 513.

The Recovery Act also recognizes the valuable role that the states and territories can play in implementing BTOP, and permits NTIA to consult with them in identifying unserved and underserved areas within their borders and in allocating grant funds for projects in or affecting their jurisdictions.
21

Consistent with the Recovery Act, NTIA has consulted with the FCC on this NOFA.

21

Id.
§ 6001(c), 123 Stat. at 513.

2. BTOP Priorities

All projects funded under BTOP must advance one or more of the five statutory purposes outlined above. The program is designed to extend broadband access to unserved areas, improve access to underserved areas, and expand broadband access to a wide range of institutions and individuals, including vulnerable populations. It will seek to serve the highest priority needs for federal investment—particularly projects that offer the potential for economic growth and job creation, and provide benefits to education, health care, and public safety. The program will support viable, sustainable, and scalable projects. NTIA will favor proposals that satisfy the public-interest objectives specified in the statute and detailed in this NOFA. These projects can serve as models for future investors once economic conditions improve.

NTIA expects to distribute grants across geographic areas addressing these various public purposes. It will issue awards on a technologically neutral basis, and expects to support projects employing a range of technologies (
e.g.,
fixed and mobile wireless, fiber, satellite). In making these awards, NTIA will also take into consideration whether an applicant is a socially and economically disadvantaged small business concern as defined under section 8(a) of the Small Business Act (SBA) (15 U.S.C. 637(a)(4)).
22

Finally, it is also important to highlight the desire of the Recovery Act to extend non-discrimination and network interconnection obligations on awardees. In particular, the Recovery Act directs NTIA to impose contractual conditions on BTOP grants that would, at a minimum, adhere to the principles contained in the FCC's broadband policy statement.
23

22

See id.
§ 6001(h)(3), 123 Stat. at 514-15.

23

Id.
§ 6001(j), 123 Stat. at 515.

3. BTOP Application and Selection Process

NTIA will employ a two-step application review process. First, however, NTIA will conduct an initial screen of applications to determine whether an application meets the mandatory threshold requirements, such as application completeness, set forth in section V.C. of this NOFA. These are mandatory threshold requirements that qualify an application for further review. Applicants that fail to meet any of the eligibility factors will be notified in writing of the reason for the rejection. Subsequent to this initial screening, applications will proceed to the step one review process. The applications will receive at least three independent reviews (by a three-member review panel) against the eligibility factors as well as against the evaluation criteria provided in this NOFA. This review panel will be comprised of at least three peer/expert reviewers who have demonstrated subject-matter expertise. No consensus advice will be given by the reviewers. Each reviewer will independently score the application, and reviewer scores will be averaged. Based on these scores, applications that are considered the most highly qualified will advance to the step two, “due diligence,” review for further consideration. All other applications will be rejected, and the applicants will be notified in writing of the reason for the rejection.

In step two of the review process, the remaining applicants will be asked to submit additional information, as appropriate, such as more detailed plans or supporting documents
24

to further substantiate the representations made in their application.

24

See infra
section VI.D.1.b. for more details regarding the required additional information.

The supplemental information will be reviewed and analyzed by NTIA staff with the support of external engineering, business, and subject-matter experts to evaluate the consistency of the applications with the supporting documents and ensure applications merit awards. Applicants whose supporting documents do not adequately substantiate the representations in their application may be rejected, and the applicants will be notified in writing of the reason for the rejection. Upon completion of its due diligence, NTIA program staff will complete its analysis of each application by assigning a rating based on its consistency with the representations made in the application. This rating will be based on a five-point scale (1-5), with a five representing the highest consistency and conformity with the information already provided, especially on technical and budget considerations.

All states will be provided an opportunity to make recommendations concerning the allocation of funds for qualifying projects in or affecting the individual states during step two of the BTOP application process, regardless of their participation in the State Broadband Data and Development Grant Program. During step two of the BTOP application process, the Governor's office of each state will receive a list of the applications under consideration. States may provide a list and prioritization of recommended projects, along with an explanation of why the selected proposals meet the greatest needs of the state. States are strongly encouraged to provide mapping and planning data to support their recommendations. States participating in the State Broadband Data and Development Grant Program may rely on their submission under that program to fulfill this request. All states will have 20 calendar days from the date of notification to submit to NTIA their recommendations.

Upon completion of the step two review, NTIA reserves the right to discuss with the applicant specific modifications to the application to resolve any differences that may exist between the applicant's original request and what NTIA is willing to fund. Not all applicants contacted will necessarily receive a BTOP award. The Director of BTOP (BTOP Director) will then prepare and present a package of recommended grant awards to the Associate Administrator for the Office of Telecommunications and Information Applications (OTIA Associate Administrator) for review and approval. The BTOP Director's recommendations and the OTIA Associate Administrator's review and approval will take into account the following selection factors:

a. The Evaluation Criteria Review score of the peer/expert reviewers;

b. The Due Diligence Review rating of the federal reviewers and the analysis of NTIA program staff;

c. Satisfaction of the program's purpose and priorities as described in the section entitled “Program Description” (
e.g.,
considering whether the applicant is a socially and economically disadvantaged small business concern; ensuring that service for health care delivery, education, and children is enhanced to the greatest

population of users; improve access to and use by public safety; ensuring that the greatest broadband speed is provided to the greatest population of users as set forth in the Recovery Act; providing broadband access to consumers in unserved areas; improving broadband service in underserved areas);

d. The geographic distribution of the proposed grant awards and diversity of populations served (
e.g.,
ensuring that, to the extent practical, NTIA award not less than one grant in each state as set forth in the Recovery Act);

e. The range of technologies and uses of the technologies employed by the proposed grant awards;

f. Avoidance of redundancy, conflicts with the initiatives of other federal agencies, including Department of Agriculture loan and grant programs for broadband services, and, to the extent practical, avoidance of unjust enrichment;
25

25
Recovery Act § 6001(h)(2)(D), 123 Stat. at 515.

g. The availability of funds; and

h. If applicable, the recommendations of states, including, but not limited to, such recommendations as described in their application for the State Broadband Data and Development Grant Program or as subsequently provided to NTIA either on its own or along with the submission of state-level broadband maps.
26

26
Consistent with Recovery Act, the application for the State Broadband Data and Development Grant Program will provide participating states the opportunity to identify unserved and underserved areas in their state. In their Mapping Grant application, states may also make recommendations concerning the allocation of funds for projects in or affecting the individual states at the time the state submits its Mapping Grant application.

Upon approval by the OTIA Associate Administrator, the BTOP Director's recommendation will then be presented to the Selecting Official, the Assistant Secretary of NTIA. The Assistant Secretary selects the applications for grant awards, taking into consideration the BTOP Director's recommendations and the degree to which the application package, taken as a whole, satisfies the selection factors described above and the program's stated purposes and priorities as set forth in section II.B of this NOFA. Awards will be made on a rolling basis subject to the availability of funds.

III. Definitions

The terms and conditions provided in this NOFA are applicable to and for purposes of this NOFA only. These terms, conditions, and definitions may change in subsequent NOFAs issued regarding BIP and BTOP.

Administrator
means the RUS Administrator, or the Administrator's designee.

Applicant
means an entity requesting approval of an award under this NOFA.

Assistant Secretary
means the Assistant Secretary for Communications and Information, National Telecommunications and Information Administration, Department of Commerce, or the Assistant Secretary's designee.

Award documents
mean, collectively, grant agreement, loan documents and/or loan/grant combination documents.

Award
means a grant, loan, or loan/grant combination made under this NOFA by either RUS or NTIA.

Awardee
means a grantee, borrower, or borrower/grantee.

BIP
means the Broadband Initiatives Program, administered by the RUS, under the Recovery Act.

Borrower
means the recipient of a RUS loan under this NOFA.

Borrower/grantee
means the recipient of a RUS loan/grant combination under this NOFA.

Broadband
means providing two-way data transmission with advertised speeds of at least 768 kilobits per second (kbps) downstream and at least 200 kbps upstream to end users, or providing sufficient capacity in a middle mile project to support the provision of broadband service to end users.

BTOP
means the Broadband Technology Opportunities Program, administered by NTIA, under the Recovery Act.

Build-out
means the construction or improvement of facilities and equipment as specified in the application.

Composite economic life
means the weighted (by dollar amount of each class of facility in the loan) average economic life of all classes of facilities financed by a BIP loan.

Community anchor institutions
means schools, libraries, medical and healthcare providers, public safety entities, community colleges and other institutions of higher education, and other community support organizations and agencies that provide outreach, access, equipment and support services to facilitate greater use of broadband service by vulnerable populations, including low-income, unemployed, and the aged.

Critical community facilities
means public facilities that provide community services essential for supporting the safety, health, and well-being of residents, including, but not limited to, emergency response and other public safety activities, hospitals and clinics, libraries and schools.

Current ratio
means the BIP applicant's current assets divided by the current liabilities; all financial terms are defined by GAAP.

Economic life
means the estimated useful service life of an asset as determined by RUS in connection with awards made under BIP.

Forecast period
means the time period used by RUS and NTIA to determine if an application is financially feasible. Financial feasibility of an application is based on five-year projections.

GAAP
means generally accepted accounting principles.

Grant agreement
means the agreement between RUS or NTIA and the grantee for grants awarded under this NOFA, including any amendments thereto, available for review at
http://www.broadbandusa.gov.

Grant funds
mean federal funds provided pursuant to a grant made under this NOFA.

Grantee
means the recipient of a grant under this NOFA.

Last Mile project
means any infrastructure project the predominant purpose of which is to provide broadband service to end users or end-user devices (including households, businesses, community anchor institutions, public safety entities, and critical community facilities).

Last Mile Non-Remote project
means any broadband infrastructure project (or group of projects) that is not exclusively a last mile remote area project, and that provides broadband service to the end user or end-user devices in a service area eligible for BIP funding.

Last Mile Remote Area project
means any broadband infrastructure project that provides broadband service to the end user or to end-user devices only in a remote area(s) eligible for BIP funding.

Loan
means any loan made under this NOFA by RUS.

Loan contract
means the loan agreement between RUS and the borrower, including all amendments thereto, available for review at
http://www.broadbandusa.gov.

Loan documents
mean the loan contract, note(s), and security instrument between the borrower and RUS and any associated documents pertaining to the loan.

Loan/grant
means any loan/grant combination made under this NOFA by RUS.

Loan/grant contract
means the loan/grant contract between RUS and the borrower/grantee, including all amendments thereto available at
http://www.broadbandusa.gov
.

Loan/grant documents
mean the loan/grant contract, note(s), and security

instrument between the borrower/grantee and RUS and any associated documents pertaining to the loan/grant.

Middle Mile project
means a broadband infrastructure project that does not predominantly provide broadband service to end users or to end-user devices, and may include interoffice transport, backhaul, Internet connectivity, or special access.

Pre-application expense
means any reasonable expense incurred after the release of this NOFA to prepare an application, including engineering costs and accountant/consultant fees.

Proposed funded service area
means the area (either in all or part of an existing service area or a new service area) where the applicant is requesting BIP or BTOP funds to provide broadband service pursuant to this NOFA.

Public computer center
means a place, including but not limited to community colleges, libraries, schools, youth centers, employment service centers, Native American chapter houses, community centers, senior centers, assistive technology centers for people with disabilities, community health centers, and Neighborhood Network Centers in public housing developments, that provide broadband access to the general public or a specific vulnerable population, such as low-income, unemployed, aged, children, minorities and people with disabilities.

RE Act
means the “Rural Electrification Act of 1936,” as amended (7 U.S.C. 901
et seq.
).

Recovery Act
means the American Recovery and Reinvestment Act of 2009, Public Law No. 111-5, 123 Stat. 115 (2009).

Remote area
means an unserved, rural area 50 miles from the limits of a non-rural area.

Rural area
means any area, as confirmed by the latest decennial census of the Bureau of the Census, which is not located within: 1. A city, town, or incorporated area that has a population of greater than 20,000 inhabitants; or 2. an urbanized area contiguous and adjacent to a city or town that has a population of greater than 50,000 inhabitants. For purposes of the definition of rural area, an urbanized area means a densely populated territory as defined in the latest decennial census of the U.S. Census Bureau.

Security document
means any mortgage, deed of trust, security agreement, financing statement, or other document that RUS determines is necessary to perfect its interest in the security for a loan or loan/grant.

Service area
means the entire area within which a service provider either offers or intends to offer broadband service and may include the proposed funded service area.

State
means, for purposes of BTOP, a state or political subdivision thereof, the District of Columbia, or a territory or possession of the United States.

TIER
means times interest earned ratio. TIER is the ratio of a BIP applicant's net income (after taxes) plus (adding back) interest expense, all divided by interest expense (existing and any new interest expense including the interest expense associated with the proposed loan); all financial terms are defined by GAAP.

Underserved area
means a proposed funded service area, composed of one or more contiguous census blocks
27

meeting certain criteria that measure the availability of broadband service and the level of advertised broadband speeds. These criteria conform to the two distinct components of the Broadband Infrastructure category of eligible projects—Last Mile and Middle Mile. Specifically, a proposed funded service area may qualify as underserved for last mile projects if at least one of the following factors is met, though the presumption will be that more than one factor is present: 1. No more than 50 percent of the households in the proposed funded service area have access to facilities-based, terrestrial broadband service at greater than the minimum broadband transmission speed (set forth in the definition of broadband above); 2. No fixed or mobile broadband service provider advertises broadband transmission speeds of at least three megabits per second (“mbps”) downstream in the proposed funded service area; or 3. The rate of broadband subscribership for the proposed funded service area is 40 percent of households or less. A proposed funded service area may qualify as underserved for Middle Mile projects if one interconnection point terminates in a proposed funded service area that qualifies as unserved or underserved for Last Mile projects.

27
Census blocks are the smallest geographic areas for which the U.S. Bureau of the Census collects and tabulates decennial census data. Census blocks are formed by streets, roads, railroads, streams and other bodies of water, other visible physical and cultural features, and the legal boundaries shown on Census Bureau maps. Census data at this level serve as a valuable source for small-area geographic studies. See the Census Bureau's Web site at
http://www.census.gov
for more detailed information on its data gathering methodology.

Unserved area
means a proposed funded service area, composed of one or more contiguous census blocks, where at least 90 percent of households in the proposed funded service area lack access to facilities-based, terrestrial broadband service, either fixed or mobile, at the minimum broadband transmission speed (set forth in the definition of broadband above). A household has access to broadband service if the household can readily subscribe to that service upon request.

IV. Award Information

A. Available Funds for BIP

1. General

Approximately $2,400,000,000 in program level funding has been set aside for funding opportunities under this NOFA.

2. Funding Limits

Award amounts under this NOFA will be limited as follows:

a. Last Mile Projects

Up to $1,200,000,000 is available for Last Mile projects. These projects may consist of Remote Area projects or Non-Remote projects. Up to $400,000,000 is available for grants for Remote Area projects. Up to $800,000,000 is available for loans or loan/grant combinations for Non-Remote projects.

b. Middle Mile Projects

Up to $800,000,000 is available for loans or loan/grant combinations for Middle Mile projects.

3. Repooling

For categories that do not receive applications that request the full amount of allocated funds, excess funds may be directed to another category at RUS's discretion. Additionally, if RUS does not make awards in the full amount allocated to a category, RUS may, at its discretion, direct such excess funds to another category.

4. National Reserve

Up to $325,000,000 is available for a national reserve. These funds may be used to augment the BIP funding categories established above, or remain unused for subsequent NOFAs. In any event, all funds will be awarded no later than September 30, 2010.

5. Unused Funds

Funds made available but not used for this NOFA may be directed to subsequent NOFAs.

6. Award Period

All awards under BIP must be made no later than September 30, 2010. While the completion time will vary depending on the complexity of the project, award recipients must

substantially complete projects supported by this program no later than two years, and projects must be fully completed no later than three years, following the date of issuance of the award.

7. Type of Funding Instrument

The funding instruments for BIP will be a grant, loan, and loan/grant combination.

B. Available Funds for BTOP

1. General

Up to $1,600,000,000 in budget authority has been set aside for funding opportunities under this NOFA. Publication of this NOFA does not obligate NTIA to award any specific project or obligate all or any parts of any available funds, although the Recovery Act indicates that the Assistant Secretary shall award at least one grant in each state to the extent practical by September 30, 2010.
28

28
Recovery Act § 6001(h)(1), 123 Stat. at 514.

2. Funding Limits

Up to $1.4 billion is available to be awarded under this NOFA and will be allocated in the following categories:

a. Broadband Infrastructure projects will be awarded no greater than $1.2 billion;

b. Public Computer Center projects will be awarded no greater than $50 million; and

c. Sustainable Broadband Adoption projects will be awarded no more than $150 million.

3. Repooling

Subject to the statutory thresholds set forth in the Recovery Act, NTIA retains the discretion to divert funds from one category of projects to another.

4. National Reserve

Up to $200 million is available for a national reserve. These funds may be used to augment the BTOP funding categories established above, or remain unused for subsequent NOFAs. In any event, all funds will be awarded no later than September 30, 2010.

5. Unused Funds

Funds not awarded under this NOFA may be used to fund subsequent NOFAs.

6. Award Period

All awards under BTOP must be made no later than September 30, 2010.
29

While the completion time will vary depending on the complexity of the project, grant recipients must substantially complete projects supported by this program no later than two years, and projects must be fully completed no later than three years, following the date of issuance of the grant award.
30

29

Id.
§ 6001(d)(2), 123 Stat. at 513.

30

Id.
§ 6001(d)(3), 123 Stat. at 513.

7. Type of Funding Instrument

The funding instrument for BTOP will be a grant.

V. Eligibility Information for BIP and BTOP

A. In General

Applicants must satisfy the following eligibility requirements to qualify for funding.

B. Eligible Entities

1. Applicant Organization

The following entities are eligible to apply for assistance:

a. States, local governments, or any agency, subdivision, instrumentality, or political subdivision thereof;

b. The District of Columbia;

c. A territory or possession of the United States;

d. An Indian tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b));

e. A native Hawaiian organization;

f. A non-profit foundation, a non-profit corporation, a non-profit institution, or a non-profit association;

g. Other non-profit entities;

h. For-profit corporations;

i. Limited liability companies; and

j. Cooperative or mutual organizations.

2. BTOP Public Interest Finding

Section 6001(e)(1)(C) of the Recovery Act authorizes the Assistant Secretary to find by rule that it is in the public interest for any entity not otherwise encompassed by section 6001(e)(1) to be eligible for a BTOP grant to the extent that such finding will promote the purposes of BTOP in a technologically neutral manner. Through this NOFA, the Assistant Secretary has found it to be in the public interest to permit for-profit corporations and non-profit entities (not otherwise encompassed by section 6001(e)(1)(B)) that are willing to promote the goals of the Recovery Act and comply with the statutory requirements of BTOP to be eligible for a grant. By adopting this broad approach, the Assistant Secretary intends to invite a diverse group of applicants to participate in BTOP and to expand broadband capabilities in a technologically neutral manner.
31

31

Id.
§ 6001(e)(1)(C), 123 Stat. at 513.

C. Application Eligibility Factors

The following eligibility factors establish basic requirements that all applicants must comply with in order to be eligible for an award. Applicants failing to comply with these requirements will not have their applications considered. This section lists eligibility factors (a) shared by BIP and all three BTOP project categories; (b) shared by BIP and BTOP Broadband Infrastructure projects; (c) that apply only to BIP projects; and (d) that apply only to the three BTOP project categories.

1. Eligibility Factors Common to All BIP and BTOP Applicants

a. Fully Completed Application

Applicants must submit a complete application and provide all supporting documentation required for the application.

b. Timely Completion

A project is eligible only if the application demonstrates that the project can be substantially completed within two years of the date of issuance of the grant, loan, or loan/grant award and finished within three years of the date of the award. For BIP, a project is considered “substantially complete” when an awardee has received 67 percent of its award funds. For BTOP, a project is considered “substantially complete” when the awardee has met 67 percent of the project milestones and received 67 percent of its award funds.

2. Additional Factors Applicable to BIP and BTOP Broadband Infrastructure Applicants

a. Broadband Service

All Broadband Infrastructure applicants must propose to offer service meeting the definition of Broadband as defined herein.

b. Technical Feasibility

Only projects that RUS and NTIA determine to be technically feasible will be eligible for an award under this NOFA. At minimum, applicants will be required to submit a system design and project timeline, certified by a professional engineer, for any project requesting funds over $1 million.

c. Nondiscrimination and Interconnection

All Broadband Infrastructure (both BIP and BTOP) applicants, must commit to the following Nondiscrimination and Interconnection Obligations: i. Adhere to the principles contained in the FCC's Internet Policy Statement (FCC 05-151, adopted August 5, 2005); ii. not favor

any lawful Internet applications and content over others; iii. display any network management policies in a prominent location on the service provider's web page and provide notice to customers of changes to these policies (awardees must describe any business practices or technical mechanisms they employ, other than standard best efforts Internet delivery, to allocate capacity; differentiate among applications, providers, or sources; limit usage; and manage illegal or harmful content); iv. connect to the public Internet directly or indirectly, such that the project is not an entirely private closed network; and v. offer interconnection, where technically feasible without exceeding current or reasonably anticipated capacity limitations, on reasonable rates and terms to be negotiated with requesting parties. This includes both the ability to connect to the public Internet and physical interconnection for the exchange of traffic. Applicants must disclose their proposed interconnection, nondiscrimination, and network management practices with the application.

All these requirements shall be subject to the needs of law enforcement and reasonable network management. Thus, awardees may employ generally accepted technical measures to provide acceptable service levels to all customers, such as caching and application-neutral bandwidth allocation, as well as measures to address spam, denial of service attacks, illegal content, and other harmful activities. In addition to providing the required connection to the Internet, awardees may offer managed services, such as telemedicine, public safety communications, and distance learning, which use private network connections for enhanced quality of service, rather than traversing the public Internet.

An awardee may satisfy the requirement for interconnection by negotiating in good faith with all parties making a bona fide request. The awardee and requesting party may negotiate terms such as business arrangements, capacity limits, financial terms, and technical conditions for interconnection. If the awardee and requesting party cannot reach agreement, they may voluntarily seek an interpretation by the FCC of any FCC rules implicated in the dispute. If an agreement cannot be reached within 90 days, the party requesting interconnection may notify RUS or NTIA in writing of the failure to reach satisfactory terms with the awardee. The 90-day limit is to encourage the parties to resolve differences through negotiation.

With respect to non-discrimination, those who believe an awardee has failed to meet the non-discrimination obligations should first seek action at the FCC of any FCC rules implicated in the dispute. If the FCC chooses to take no action, those seeking recourse may notify RUS or NTIA in writing about the alleged failure to adhere to commitments of the award.

Entities that successfully reach an agreement to interconnect with a system funded under BIP may not use that interconnection agreement to provide services that duplicate services provided by projects funded by outstanding telecommunications loans made under the RE Act. Further, interconnection may not result in a BIP-funded facility being used for ineligible purposes under the Recovery Act.

These conditions will apply for the life of the awardee's facilities used in the project and not to any existing network arrangements. The conditions apply to any contractors or subcontractors of such awardees employed to deploy or operate the network facilities for the infrastructure project. Recipients that fail to accept or comply with the terms listed above may be considered in default or breach of their loan or grant agreements. RUS and NTIA may exercise all available remedies to cure the default.

d. Last Mile Coverage Obligation

An applicant for a Last Mile Broadband Infrastructure project must identify the census block(s) selected for the project and provide documentation supporting the applicant's determination that the proposed funded service area is either unserved or underserved. There is a presumption that the applicant will provide service to the entire territory of each census block included in the proposed funded service area, unless the applicant files a waiver and provides a reasoned explanation as to why providing coverage for an entire census block is infeasible. Applicants may be permitted to serve less than an entire census block under certain conditions. For example, an applicant might request to be relieved of this requirement if the census block exceeds 100 square miles or more or is larger than the applicant's authorized operating territory,
e.g.,
it splits a rural incumbent local exchange carrier's (ILEC's) study area or exceeds the boundaries of a wireless carrier's licensed territory.

3. Additional Factors for BIP

a. Eligible Service Area

A project is eligible only if the applicant demonstrates that at least 75 percent of the proposed funded service area qualifies as a rural area without sufficient access to broadband service to facilitate rural economic development.
32

For the purposes of this NOFA, RUS has determined that “without sufficient broadband access” shall mean without access to broadband, as defined herein. Furthermore, RUS has determined that only rural areas which are unserved or underserved, as defined herein, shall qualify as “areas without sufficient access to broadband service.” Therefore, to qualify for BIP funding, projects must serve at least 75 percent unserved or underserved rural areas.

32

See id.
div. A, tit. I, 123 Stat. at 118.

b. Overlapping Service Areas

RUS will not fund more than one project to serve any given geographic area. If more than one application would serve any overlapping geographic area, the application with the highest score will be funded; other applications for the same area will be rejected in their entirety unless RUS, in its discretion, determines that the extent of the overlap is de minimis.

c. Fully Funded

A project is eligible only if, after approval of the grant, loan, or loan/grant combination, all project costs can be fully funded. To demonstrate this, applicants must include with the application evidence of all funding, other than the RUS award, necessary to support the project, such as bank account statements or firm letters of commitment from equity participants or other lenders documenting the timely availability of funds.

d. Financial Feasibility and Sustainability

Only projects that RUS determines to be financially feasible and/or sustainable will be eligible for an award under this NOFA.

Loans:
A project funded by a loan or loan/grant combination is financially feasible when the applicant is able to generate sufficient revenues to cover its expenses, has sufficient cash flow to service its debts and obligations as they come due, and meet the minimum Times Interest Earned Ratio (TIER) requirement of one by the end of the forecast period, as determined by RUS.

Grants:
A project funded by a grant is financially sustainable when the applicant is able to generate a minimum

current ratio of one by the end of the forecast period and can demonstrate a positive cash balance for each year of the forecast period.

4. Additional Factors for BTOP

a. Conformity With Statutory Purposes

A project is eligible only if it advances at least one of the statutory purposes for BTOP.
33

33

See id.
§ 6001(b), 123 Stat. at 512-13.

b. Cost Sharing/Matching

Awardees under BTOP will be required to provide matching funds of at least 20 percent toward the total eligible project cost. Applicants must document their capacity to provide matching funds. NTIA will provide up to 80 percent of total eligible project costs, unless the applicant petitions the Assistant Secretary for a waiver of the matching requirement and that waiver is granted by the Assistant Secretary based on the applicant's demonstration of financial need.
34

In requesting such a waiver, an applicant should fully explain and document its inability to provide the required 20 percent share of the cost of its proposed project. An applicant should submit complete financial documentation supporting its need for a waiver of the matching requirement. These documents should include the applicant's assets, liabilities, operating expenses and revenues from any existing operations, and any other documents that will demonstrate financial need and sustainability, including such items as a denial of funding from a public or private lending institution. The Assistant Secretary will evaluate the information provided in support of the petition and may increase the federal share if financial need is demonstrated.

34

See id.
§ 6001(f), 123 Stat. at 514.

Generally, federal funds may not be used as matching funds except as provided by federal statute.
35

In-kind contributions, including third party in-kind contributions, are non-cash donations to a project that may count toward satisfying the non-federal matching requirement of a project's total budget. In-kind contributions must be allowable project expenses. Such contributions may be accepted as part of an applicant's matching when such contributions meet certain criteria.
36

35

See
Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, Other Non-profit, and Commercial Organizations, 15 CFR § 14.23(a)(5);
see also
Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments, 24 CFR § 24.24(b)(1).

36

See
15 CFR §§ 14.23(a), 24.24(a).

Applications that propose to provide matching funds of greater than 20 percent and that are all cash will be given additional favorable consideration in step one of the application review process.

c. Demonstration That Project Could Not Be Implemented but for Federal Grant Assistance

Grant applicants must provide documentation that the project would not have been implemented during the grant period without federal grant assistance. This documentation may consist of, but is not limited to, such items as a denial of funding from a public or private lending institution, denial of a funding request from RUS for a loan or loan/grant combination, a current fiscal year budget that shows the lack of available revenue options for funding the project, or a business case that demonstrates that the project would not be economically feasible without grant financing.

d. Reasonableness of Project Budget

A project will only be eligible if it demonstrates that its budget is appropriate to the proposed technical and programmatic solutions, its costs are reasonable and eligible consistent with the principles outlined in section V.D below, and that the allocation of funds will be sufficient to complete the tasks outlined in the project plan.

D. Eligible Cost Purposes

1. General

Award funds must be used only to pay for eligible costs. Eligible costs are consistent with the cost principles identified in the applicable OMB circulars
37

and in the grant or the loan/grant program's authorizing legislation. In addition, costs must be reasonable, allocable, necessary to the project, and comply with the funding statute requirements. Any application that proposes to use any portion of the award funds for any ineligible cost will be rejected.

37
For example there is a set of federal principles for determining eligible or allowable costs. Allowability of costs will be determined in accordance with the cost principles applicable to the entity incurring the costs. Thus, allowability of costs incurred by state, local or federally-recognized Indian tribal governments is determined in accordance with the provisions of OMB Circular A-87, “Cost Principles for State, Local and Indian Tribal Governments.” The allowability of costs incurred by non-profit organizations is determined in accordance with the provisions of OMB Circular A-122, “Cost Principles for Non-Profit Organizations.” The allowability of costs incurred by institutions of higher education is determined in accordance with the provisions of OMB Circular A-21, “Cost Principles for Educational Institutions.” The allowability of costs incurred by hospitals is determined in accordance with the provisions of Appendix E of 45 CFR pt. 74, “Principles for Determining Costs Applicable to Research and Development under Grants and Contracts with Hospitals.” The allowability of costs incurred by commercial organizations and those non-profit organizations listed in Attachment C to Circular A-122 is determined in accordance with the provisions of the Federal Acquisition Regulation (FAR) at 48 CFR pt. 31.
See
15 CFR 14.27, 24.22 (governing the Department of Commerce's implementation of OMB requirements).

2. Eligible and Ineligible Costs for BIP and BTOP Infrastructure Projects

a. Eligible Infrastructure Award Expenses

Award funds may be used to pay for the following expenses:

i. To fund the construction or improvement of all facilities required to provide broadband service, and for BIP only, including facilities required for providing other services over the same facilities;

ii. To fund the cost of leasing facilities required to provide broadband service if such lease qualifies as a capital lease under GAAP. Award funds may be used to fund the cost of the capital lease for no more than the first five years after the date of the first advance of award funds;

iii. To fund reasonable pre-application expenses in an amount not to exceed five percent of the award. Pre-application expenses may be reimbursed if they are incurred after the publication date of this NOFA and prior to the date on which the application is submitted to RUS or NTIA; and

iv. For BTOP only undertaking such other projects and activities as the Assistant Secretary finds to be consistent with the purposes for which the program is established.

b. Ineligible Award Expenses

Award funds may not be used for any of the following purposes:

i. To fund operating expenses of the project, including fixed and recurring costs of a project;

ii. To fund costs incurred prior to the date on which the application is submitted, with the exception of eligible pre-application expenses;

iii. To fund an acquisition, including the acquisition of the stock of an affiliate, or the purchase or acquisition of any facilities or equipment of an affiliate;

iv. To fund the purchase or lease of any vehicle other than those used primarily in construction or system improvements;

v. To fund broadband facilities leased under the terms of an operating lease;

vi. To fund merger or consolidation of entities; and

vii. To fund costs incurred in acquiring spectrum as part of an FCC auction or in a secondary market acquisition.

3. Eligible and Ineligible Costs for Public Computer Centers and Sustainable Broadband Adoption

a. General

Grantees for BTOP funds under these two project categories are required to show how such funding serves the stated purposes of: i. Providing broadband education, awareness, training, access, equipment, and support to community anchor institutions (
e.g.,
schools, libraries, medical and healthcare providers, community colleges and other institutions of higher education, and other community support organizations), or organizations and agencies serving vulnerable populations (
e.g.,
low-income, unemployed, aged), or job-creating strategic facilities located in state- or federally-designated economic development areas; ii. improving access to, and use of, broadband service by public safety agencies; and iii. stimulating the demand for broadband, economic growth, and job creation.

b. Eligible Costs for Public Computer Centers

Grantees may use BTOP funding under this project category to expand computer center capacity by:

i. Acquiring broadband-related equipment, instrumentation, networking capability, hardware and software, and digital network technology for broadband services;

ii. Developing and providing training, education, support and awareness programs or web-based resources;

iii. Facilitating access to broadband services, including, but not limited to, making public computer centers accessible to the disabled; and

iv. Undertaking such other projects and activities as the Assistant Secretary finds to be consistent with the purposes for which the program is established.

c. Eligible Costs for Sustainable Broadband Adoption

Grantees may use BTOP funding under this project category to encourage sustainable adoption of broadband services by:

i. Acquiring broadband-related equipment, hardware and software, and digital network technology for broadband services;

ii. Developing and providing training, education, support and awareness programs or web-based content;

iii. Conducting broadband-related public education, outreach, support and awareness campaigns;

iv. Implementing innovative programs to facilitate greater access to broadband service, devices, and equipment; and

v. Undertaking such other projects and activities as the Assistant Secretary finds to be consistent with the purposes for which the program is established.

d. Ineligible Costs for Public Computer Centers and Sustainable Broadband Adoption

BTOP grant funds may not be used to fund purchases that are not used predominantly for the provision of broadband education, awareness, training, access, equipment and support.

E. Use of Program Income

Grantees are required to account for any program income directly generated by projects financed in whole or in part with federal funds. Given the Recovery Act's objectives to spur job creation and stimulate long-term economic growth and opportunity, projects funded by BIP and BTOP grants are expected to convincingly demonstrate the ability to be sustained beyond the funding period. While grant funds are intended to cover the capital costs of a project as part of the Recovery Act's effort to stimulate the economy, grant recipients for all grant programs are expected to present projects that will sustain long-term growth and viability.

For purposes of BIP and BTOP, any program income generated by a proposed project during the grant period shall be retained by the grant recipient and shall be added to the funds committed to the project by RUS or NTIA and the recipient. The grant recipient should use program income to further eligible project objectives, including reinvestment in project facilities. Program income means gross income earned by the recipient that is either directly generated by a supported activity, or earned as a result of the award during the funding period. Grant recipients shall have no obligation to the federal government regarding program income earned after the end of the project period. However, the federal government retains an interest in property in the event that it is sold, consistent with the guidance outlined in section IX of this NOFA.
38

38
2 CFR 215.24; 15 CFR 14.24, 24.25.

VI. Application and Submission Information

A. Request for Application Package

Complete application packages, including required federal forms and instructions, will be available at
http://www.broadbandusa.gov
. Additional information for BIP and BTOP can be found in the
Application Guidelines
at
http://www.broadbandusa.gov
. This Web site will be updated regularly.

B. Registration

1. DUNS Number

All applicants must supply a Dun and Bradstreet Data Universal Numbering System (DUNS) number. Applicants can receive a DUNS number at no cost by calling the dedicated toll-free DUNS number request line at 1-866-705-5711 or via the Internet at
http://www.dunandbradstreet.com
.

2. Central Contractor Registration (CCR)

All applicants must provide a CCR (CAGE) number evidencing current registration in the Central Contractor Registration (CCR) database. If the applicant does not have a current CCR (CAGE) number, the applicant must register in the CCR system available at
http://www.ccr.gov/StartRegistration.aspx
.

C. Choosing the Proper Agency and Category for an Application

1. Broadband Infrastructure

a. Choosing BIP or BTOP Broadband Infrastructure

i.
Applications for Rural Areas.
All applications to fund broadband infrastructure in proposed funded service areas which are at least 75 percent rural are required to be submitted to RUS for consideration under BIP. If such applicants also choose to be considered for BTOP funding, they must complete the additional elements required of BTOP infrastructure applicants. RUS will consider all applications for projects in proposed funded service areas which are at least 75 percent rural in accordance with the BIP procedures outlined in this NOFA. If the applicant also chooses to be considered under BTOP, NTIA will review these applications using its own objective evaluation criteria and in accordance with BTOP procedures outlined in this NOFA. NTIA may make awards with respect to such applications NTIA determines to be meritorious after RUS has reviewed the application and determined not to fund it. RUS and NTIA have adopted these application procedures to reflect the fact that Congress, in the Recovery Act, intended that RUS focus its activities on rural areas and mandated that NTIA funding could not be applied in the same area funded by RUS under the Recovery Act.

ii.
Applications for All Other Areas.
All applications to fund broadband infrastructure projects in proposed funded service areas that are less than 75 percent rural must be submitted to NTIA for consideration under BTOP. Submissions to BIP of such applications will be rejected.

b. BIP Broadband Infrastructure Categories

i. Last Mile Remote Area

Applications for Last Mile Remote Area projects must predominantly provide broadband directly to the premise or to end users within completely remote areas, as defined herein. The BIP Program will consider applications for grant funds up to 100 percent. For grants receiving greater than 80 percent of eligible costs, the Administrator must determine that the awardee has a specific financial need that justifies funding greater than 80 percent.

ii. Last Mile Non-Remote Projects

Applications for Last Mile Non-Remote Area projects must predominantly provide broadband directly to the premise or to end users that are not exclusively within remote areas, as defined herein. Last Mile Non-Remote Area projects may encompass both remote and non-remote areas, and will be awarded scoring points for remote areas within the application. Only those applications for loans or loan/grant combinations whose total proposed funded service area contains 75 percent or more unserved or underserved rural areas, as defined herein, will be considered for BIP funding.

iii. Broadband Infrastructure Middle Mile Projects

Applications for Middle Mile projects must connect at least two points without predominantly providing broadband service to the premise or end users, and must be capable of bringing broadband service to eligible service areas. The BIP program will consider only those applications for loans and loan/grant combinations whose total proposed funded service area benefits at least 75 percent or more unserved or underserved rural areas, as defined herein.

c. BTOP Broadband Infrastructure Categories

i. Last Mile

For the purposes of BTOP grant funds, applications for Last Mile projects must be for unserved or underserved areas and have the predominant purpose to provide broadband service to end users or end-user devices (including homes, businesses, schools, libraries, medical and health care providers, community support organizations, public safety entities, vulnerable populations and other institutions and individuals). Highly responsive Last Mile projects should be technically feasible, sustainable, and scalable, and address BTOP's priority needs, including offering substantial economic, educational, health care, and public safety benefits relative to the costs of providing service.

iii. Middle Mile

For the purposes of BTOP grant funds, applications for Middle Mile projects must be for unserved or underserved areas and have a predominant purpose other than providing broadband service to end users or to end-user devices and may include interoffice transport, backhaul, Internet connectivity, or special access. Highly responsive Middle Mile projects should be technically feasible, sustainable, and scalable and offer substantial benefits to unserved and underserved areas relative to the costs of providing service.

2. BTOP—Public Computer Centers

For the purposes of BTOP grant funds, applicants requesting a Public Computer Center grant must have a project that provides broadband access to the general public or a specific vulnerable population, such as low-income, unemployed, aged, children, minorities and people with disabilities. Projects must create or expand a public computer center meeting a specific public need for broadband service, including but not limited to education, employment, economic development, and enhanced service for health-care delivery, children, and vulnerable populations. As described below, NTIA will consider information related to the demographics, size and scope of the populations to be served, as well as the capacity of the proposed centers.

3. BTOP—Sustainable Broadband Adoption

Applications for Sustainable Broadband Adoption projects should demonstrate a sustainable increase in demand for and subscribership to broadband services. Projects should meet a specific public need for broadband service, including, but not limited to, education, employment, economic development, and enhanced service for health-care delivery, children, and vulnerable populations. Projects should describe the barriers to adoption in a given area, especially among vulnerable populations, and propose an innovative and persuasive solution to encourage adoption. Applicants might show how variations on one or more proven demand stimulation strategy—such as awareness-building, development of relevant content, and demand aggregation—would promote sustainable adoption.

D. Contents of the Application

1. BIP and BTOP Broadband Infrastructure Project Applications

a. Requirements for Step One of the Application Process

A complete application will include the following:

i. The identity of the applicant and general applicant and project information including:

(1) A description of the project that will be made public consistent with the requirements of the Recovery Act;

(2) The Congressional Districts affected by the project;

(3) The estimated dollar amount of the funding request;

ii. Verification that the application meets certain eligibility factors, including submission of a complete application with all supplemental documentation, commitment to substantial completion of the project within two years and project completion within three years of the award date, demonstration that the project is technically feasible, that the applicant will provide broadband service meeting the definition in this NOFA, that the applicant agrees to comply with the nondiscrimination and interconnection obligations in this NOFA, and that the applicant agrees to comply with the last mile coverage obligations in this NOFA; for BIP only, that at least 75% of the proposed funded service area is a rural area, that the project will be fully funded, and that the project is financially feasible; and for BTOP only, demonstration that the project advances at least one of BTOP's five statutory purposes, commitment to or a waiver for the cost matching requirement, demonstration that a project could not be completed in the grant period but for federal funding, and that the budget is reasonable and all costs are eligible;

iii. An executive summary of the project, including but not limited to the opportunity the proposed system seeks to address; a description of the proposed funded service area; number of households and businesses passed; number of community anchor institutions, public safety entities and critical community organizations to be passed and/or involved in the project;

proposed service offerings; how non-discrimination and interconnection requirements will be met; the type of broadband system to be deployed; qualifications of the applicant; overall infrastructure cost of the broadband system; subscriber projections; and the number of jobs the project is expected to create or save;

iv. A description of the proposed funded service area, including: (1) A map; (2) data describing the geography and demographics of the proposed funded service area, including information as to whether the proposed funded service area is unserved or underserved; (3) names of the census designated communities and identification of areas not within a census designated community within the proposed funded service area; (4) information as to whether the communities and areas identified in clause (3) are rural or non-rural, remote and unserved, underserved or served; (5) the methodology for making the above classifications; (6) whether the applicant is seeking a waiver from providing less than 100% coverage of any census block; and; (7) for middle mile projects, identification of the last mile areas to be served;

v. A description of the proposed service offerings, and the associated pricing plan, that the applicant proposes to offer, as well as the advertised prices of service offerings by competitors in the same area; a description of the applicant's nondiscrimination, interconnection, and network management plans; an explanation of why the proposed service offerings are affordable; and for BTOP only, an estimate of the cost of the project per household;

vi. The technology type; a description of the system design used to deliver the broadband service; a network diagram, which must be certified by a professional engineer if the funding request exceeds $1,000,000; whether the applicant is seeking a waiver of the Buy America provision; and whether the project allows more than one provider to serve end users;

vii. A timeline including key milestones for implementation of the project, including a construction schedule, certified by a professional engineer if the funding request exceeds $1,000,000, which identifies potential challenges and establishes the viability of the project timeline and associated milestones for build-out to the census blocks, households, businesses, community anchor institutions, and public safety entities identified in the proposal; a list of all required licenses and regulatory approvals needed for the proposed project; and how much the applicant will rely on contractors or vendors to deploy the network facilities;

viii. Resumes of key management personnel, a description of the organization's readiness to manage a broadband services network, and an organizational chart showing any parent organizations and/or subsidiaries and affiliates;

ix. A legal opinion (as set forth in the application) that: (1) Addresses the applicant's ability to enter into the award documents; (2) describes all pending litigation matters; and (3) for loan and loan/grant combinations, addresses the applicant's ability to pledge security as required by the award documents;

x. Partnerships with public, non-profit, and private sector groups and collaboration with other state and federal development programs including other Recovery Act programs;

xi. An itemized budget of the infrastructure costs of the proposed project, including if applicable, the ratio of loans to grants, and any other source of outside funding, especially any other Recovery Act funds under other federal programs, and an explanation of the reasonableness of the unit price and total number of units required for the project;

xii. Pro Forma financial analysis related to the sustainability of the project, including subscriber estimates and proposed service offerings in addition to broadband Internet access; annual financial projections including balance sheets, income statements, and cash flow statements and supporting assumptions for a five-year forecast period as applicable; and a list of committed sources of capital funding;

xiii. Historical financial statements, Certified Public Accountant (CPA) audits if applicable, for the previous two calendar years;

xiv. Certifications required in the application;

xv. For BIP applicants only:

(1) A self-scoring sheet, analyzing the objective scoring criteria set forth in this NOFA;

(2) The pricing package being offered to critical community facilities, if any; and

(3) Evidence that the applicant is a socially and economically disadvantaged small business concern (SDB) as defined under section 8(a) of the SBA.

xvi. For BTOP applicants only:

(1) A description of how the applicant will advance the objectives of the Recovery Act, as well as the specific objectives of BTOP, (a) to provide access to broadband service to consumers residing in unserved areas of the country; (b) to provide improved access to broadband service to consumers residing in underserved areas of the country; (c) to provide broadband access, education, awareness, training, equipment, and support to community anchor institutions (
e.g.,
schools, libraries, medical facilities), or organizations and agencies serving vulnerable populations (
e.g.,
low-income, unemployed, aged), or job-creating strategic facilities located in state or federally designated economic development areas; (d) to improve access to, and use of, broadband service by public safety agencies; and (e) to stimulate the demand for broadband, economic growth, and job creation;

(2) A demonstration of need for grant funding, including documentation demonstrating that a project would be unfeasible but for federal assistance;

(3) A description of how the applicant will enhance services for health care delivery, education, and children to the greatest population of users in the area;

(4) Additional verification related to the non-discrimination and interconnection obligations set forth in this NOFA;

(5) The percentage of matching funds the applicant will contribute to the project, and its percentage of the total cost, as well as the specific amounts that are in cash or in-kind;

(6) Whether the applicant receives any federal support for non-recurring costs in the proposed funded service area; and

(7) To the extent applicable, evidence of collaboration with any socially and economically disadvantaged small business concern (SDB) as defined under section 8(a) of the SBA, that may include a sub-awardee, contractor, subcontractor, or vendor, and the source and amount of any federal or state funding, including Universal Service Fund funds, that applicant has received, or requested, for the activities or projects to which the application relates.

b. Verification Filing Requirements for Step Two of the Application Process

As discussed above, those applications that are considered to be most highly qualified (
i.e.,
receiving the highest scores), will advance to the second step of the review process. Specifically, in the “due diligence” phase, applicants will be asked to submit additional information, as appropriate, to further substantiate the representations made in their application. Although this “due diligence” phase applies to all three categories of projects—Broadband

Infrastructure, Public Computer Center, and Sustainable Adoption—it is most applicable to Broadband Infrastructure Projects. This phase will be announced no earlier than September 14, 2009. The following information must then be submitted to the agencies online at
http://www.broadbandusa.gov
by October 15, 2009, or, alternatively, 30 days after the applicant has received a request from RUS or NTIA to provide such information, whichever is later.

i. A list of all its outstanding and contingent obligations, including copies of existing notes, loan and security agreements, and guarantees;

ii. A detailed description of working capital requirements and the source of these funds;

iii. A detailed description of the proposed technology that will be used to provide service at the proposed broadband speed. This description must clearly demonstrate that all households and businesses in the proposed funded service area will be offered service at the proposed broadband speed;

iv. A detailed construction build-out schedule that includes a description of the necessary work force, a timeline demonstrating project completion within the required timeframe, a depreciation schedule for the proposed facilities;

v. A completed Environmental Questionnaire, other documentation requests, and required environmental authorizations and permits, including those required by the National Environmental Policy Act of 1969, as amended (42 U.S.C. 4321
et seq.
) (NEPA), the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470
et seq.
) (NHPA), and the Endangered Species Act of 1973, as amended (16 U.S.C. 1534
et seq.
) (ESA) as applicable;

vi. For purposes of the step two due diligence verification process, applicants will need to be prepared to provide any of the underlying documentation that is referenced in the application, as appropriate; and

vii. For BIP only, a description of measurable service metrics and target service level objectives (SLOs) (
e.g.,
the speed with which new service will be established, service availability, and response time for reports of system failure at a residence) that will be provided to the customer, and a description of the approach and methodology for monitoring ongoing service delivery and service quality for the services being employed.

2. Public Computer Centers Applications

Applications for Public Computer Center projects must contain the following information:

a. The identity of the applicant and general applicant and project information including:

i. A descriptive title of the project that will be made public consistent with the requirements of the Recovery Act,

ii. The Congressional Districts affected by the project,

iii. The dollar amount of the funding request;

b. Verification that the application meets certain eligibility factors, including submission of a complete application with all supplemental documentation, commitment to substantial completion of the project within two years and project completion within three years of the award date, demonstration that the project advances at least one of BTOP's five statutory purposes, commitment to or a waiver for the cost matching requirement, demonstration that a project could not be completed in the grant period but for federal funding, demonstration that the project is technically feasible, and that the budget is reasonable and all costs are eligible;

c. An executive summary of the project, including the problem or need the project addresses and the approach to addressing the need; the area to be served, population and demographics of the target area, and estimated number of potential users of the public computer center(s); qualifications of the applicant; jobs to be created or saved; and overall cost of the project;

d. A description of the project purpose, including the significance of the problem to be addressed and the degree to which the proposed solution effectively addresses the problem and could be replicated by other organizations; the degree to which the problem and proposed solution advance at least one of BTOP's five statutory purposes; and whether and how the project incorporates more than one BTOP program category or BTOP statutory purpose;

e. A description of any collaboration with Recovery Act or other state or federal development programs that leverage the impact of the proposed project;

f. A description of how the program would enhance service for health care delivery, education, or children;

g. Evidence of collaboration with any SDB as defined by section 8(a) of the SBA, that may include a sub-awardee, contractor, subcontractor, or vendor;

h. The capacity of the proposed public computer center(s) and areas and populations to be served, including whether the facility will be available to the general public or specific populations, whether the center(s) charges membership fees and if so how these charges are consistent with the public interest, any restrictions of the use of the center(s), how the center will be accessible to persons with disabilities, the locations and hours of the center(s), current and proposed number of broadband workstations, current and proposed speed of the center(s) broadband connection, the size and scope of the target population and the populations to be served by the center(s), the outreach strategy for the center(s), the equipment and software that will be provided, and the training and educational programs that will be offered;

i. A summary as to the viability of the project, including the overall technology strategy to be deployed by the project; qualifications of the organization and management team, including a description of organizational readiness and an organizational chart; a list of community organizations, partners, vendors, or contributors of in-kind resources involved in the project and whether any of those involved entities are socially or economically disadvantaged partners; a project timeline that established key milestones for implementation of the project as well as potential challenges that could pose delays; a list of needed licensing and regulatory approvals; and a legal opinion addressing the applicant's ability to enter into the award agreement;

j. Proposed budget and sustainability information from the applicant including a narrative explaining the project budget, an explanation of why the proposed costs are reasonable, demonstration that the project could not have been undertaken during the grant period but for federal assistance, organization financial statements for the last two years, explanation of how a project will become self-sustaining, description of the planned matching funds for the project or a waiver, as applicable, whether the project is receiving or has applied for federal support for non-recurring costs, disclosure of other federal or state funding, and whether the applicant is seeking a waiver of the Buy American provision; and

k. Completion of an environmental checklist and applicable certifications.

3. Sustainable Broadband Adoption Applications

Applications for Sustainable Broadband Adoption projects must contain the following information:

a. The identity of the applicant and general applicant and project information including:

i. A descriptive title of the project that will be made public consistent with the requirements of the Recovery Act,

ii. The Congressional Districts affected by the project,

iii. The dollar amount of the funding request;

b. Verification that the application meets certain eligibility factors, including submission of a complete application with all supplemental documentation, commitment to substantial completion of the project within two years and project completion within three years of the award date, demonstration that the project advances at least one of BTOP's five statutory purposes, commitment to or a waiver for the cost matching requirement, demonstration that a project could not be completed in the grant period but for federal funding, demonstration that the project is technically feasible, and that the budget is reasonable and all costs are eligible;

c. An executive summary of the project, including the problem or need the project addresses and the approach to addressing the need, and how that approach is innovative; the area to be served, population and demographics of the target area, and estimated number of potential broadband subscribers the project will reach; qualifications of the applicant; jobs to be created or saved; and overall cost of the project;

d. A description of the project purpose, including the significance of the problem to be addressed and the degree to which the proposed solution effectively addresses the problem and could be replicated by other organizations; the degree to which the problem and proposed solution advance at least one of BTOP's five statutory purposes; and whether and how the project incorporates more than one BTOP program category or BTOP statutory purpose;

e. A description of any collaboration with Recovery Act or other state or federal development programs that leverage the impact of the proposed project;

f. A description of how the program would enhance service for health care delivery, education, or children;

g. Evidence of collaboration with any SDB as defined under section 8(a) of the SBA, that may include a sub-awardee, contractor, subcontractor, or vendor;

h. A description of the project benefits, including how the approach to solve the identified problem is innovative; the number of new home, business, and institutional broadband subscribers expected to be generated; the populations to be served by the project; the total cost of the project per new subscriber; if proposing a training or educational program, how many people it will reach, the hours of training per person, the number of instructors to be employed, and planned equipment purchases and overall cost of these devices; if proposing an equipment purchase or loan program, the number of households, businesses, and institutions that will be provided equipment and the total cost to the customer; if proposing an awareness campaign, the number of people expected to be reached, the strategies to be used in the campaign, how impact of the campaign will be measured, and the organization's previous experience with this type of campaign;

i. A summary as to the viability of the project, including an explanation of the innovative operational solution proposed, how it will create sustainable adoption in the target population, and how it could be feasible in other situations; qualifications of the organization and management team, including a description of organizational readiness and an organizational chart; a list of community organizations, partners, vendors, or contributors of in-kind resources involved in the project and whether any of those involved entities are socially or economically disadvantaged partners; a project timeline that established key milestones for implementation of the project as well as potential challenges that could pose delays; a list of needed licensing and regulatory approvals; and a legal opinion addressing the applicant's ability to enter into the award agreement;

j. Proposed budget and sustainability information from the applicant including a narrative explaining the project budget, an explanation of why the proposed costs are reasonable, demonstration that the project could not have been undertaken during the grant period but for federal assistance, organization financial statements for the last two years, explanation of how the project will create sustainable increases in subscribership and how the project itself could be sustained beyond the grant period, description of the planned matching funds for the project or a waiver, as applicable, whether the project is receiving or has applied for federal support for non-recurring costs, disclosure of other federal or state funding, and whether the applicant is seeking a waiver of the Buy American provision; and

k. Completion of an environmental checklist and applicable certifications.

E. Filing Instructions

1. Electronic Applications

Electronic submissions of applications will allow for the expeditious review of an applicant's proposal consistent with the goals of the Recovery Act. As a result, all applicants requesting more than $1 million in assistance (in the form of grants, loans, or a combination of grants and loans) must file their application electronically. Applicants whose authorized representatives are individuals with disabilities, however, may submit a paper application irrespective of the funding size of their request. In addition, applicants who are requesting less than $1 million in assistance may forego the electronic filing requirement if filing electronically would impose a hardship on the applicant.

2. Paper Applications

a. Format

Applicants requesting less than $1 million in assistance (in the form of grants, loans, or a combination of grants and loans) may file their applications in a paper format if filing electronically would impose a hardship on the applicants. Applicants whose authorized representatives are individuals with disabilities may file their applications in a paper format irrespective of the funding size of their request. To the extent that applicants use electronic word processing software to create paper submissions, they should include in their filing, to the extent possible, an electronic copy of the paper application on an appropriate media such as a CD.

The application package for paper submissions must be completed in black or blue ink, signed and mailed to the addresses provided in the Mailing Addresses section of this document (section E.2.d.). The application must be typed, single-sided, single-spaced, on 8
1/2
″ x 11″ paper, excluding diagrams and charts. Use a font of no less than 12 points with margins of no less than one inch. Reviewers will be instructed to ignore any portion of the application that extends beyond the prescribed page limits provided in the application.

b. Number of Copies

Applicants filing paper copies should submit one original and one copy of the application for efficient processing.

c. Proof of Mailing

Applications must include proof of mailing consisting of one of the following:

i. A legibly dated U.S. Postal Service postmark. Please note that the U.S. Postal Service does not uniformly provide a dated postmark. Before relying on this method, applicants should check with their local post office.

ii. A legible mail receipt with the date of mailing stamped by the U.S. Postal Service.

iii. A dated shipping label, invoice, or receipt from a commercial carrier.

Neither of the following will be accepted as proof of mailing: a private metered postmark; nor a mail receipt that is not dated by the U.S. Postal Service.

Applications with postmarked dates after August 14, 2009, will not be considered in the current grant round and will be returned to the applicant. Applications will NOT be accepted via facsimile machine transmission.

d. Mailing Addresses

Completed applications must be mailed, shipped, or sent overnight express to:

i. NTIA

Broadband Technology Opportunities Program, National Telecommunications and Information Administration, U.S. Department of Commerce, 1401 Constitution Avenue, NW., HCHB, Room 4812, Washington, DC 20230.

or hand-delivered to:

Broadband Technology Opportunities Program, National Telecommunications and Information Administration, U.S. Department of Commerce, HCHB, Room 1874, 1401 Constitution Avenue, NW., Washington, DC 20230.

Room 1874 is located at entrance #10 on 15th Street, NW., between Pennsylvania and Constitution Avenues.

United States Postal Service Priority Mail, First Class Mail, and Parcel Post packages delivered to the Department of Commerce are irradiated. Irradiation could result in damage to the contents, or delay the delivery of an application to the BTOP Program Office. Thus, applicants are encouraged to consider the impact of these procedures in selecting their chosen method for application delivery.

ii. RUS

Broadband Initiatives Program, Rural Utilities Service, U.S. Department of Agriculture, 1400 Independence Avenue, SW., Stop 1599, Washington, DC 20250.

or hand-delivered to:

Broadband Initiatives Program, Rural Utilities Service, U.S. Department of Agriculture, 1400 Independence Avenue, SW., Room 2868, Washington, DC 20250.

iii. Signatures

Applicants filing in a paper format must submit an original signed copy of their application and certifications. Applicants filing electronically may submit an electronic signature for their application by registering at
http://www.ccr.gov
.

F. Submission Dates and Times

Electronic applications must be submitted between July 14, 2009, at 8 a.m. ET and 5 p.m. ET on August 14, 2009. The electronic application system at
http://www.broadbandusa.gov
will provide a date and time stamped confirmation number that will serve as proof of submission. Paper submissions must be postmarked no later than August 14, 2009, or hand-delivered no later than 5 p.m. ET on August 14, 2009. Applications delivered by guaranteed carrier services will be considered postmarked on the date they are submitted to the carrier.

No application will be accepted after the submission date unless: 1. There was a carrier error and the carrier accepted the application for delivery prior to the submission deadline; or 2. there were significant weather delays or natural disasters as declared by federal or state authorities and the applicant submits proper documentation explaining the delay.

G. Material Representations

The application, including certifications, and all forms submitted as part of the application will be treated as a material representation of fact upon which RUS and NTIA will rely in awarding grants.

H. Material Revisions

No material revision will be permitted for any application after the submission deadline, unless such revision is requested by RUS and NTIA. RUS and NTIA, however, may request clarifications or submissions for completeness that are non-material.

VII. Application Review Information

A. Evaluation Criteria

The scoring criteria used to review and analyze BIP and BTOP applications are grouped into four categories: 1. Project Purpose; 2. Project Benefits; 3. Project Viability; and 4. Project Budget and Sustainability. Each application will be scored against the following objective criteria, and not against other applications. This section describes the evaluation criteria first for BIP Broadband Infrastructure projects, then for the three BTOP project categories.

1. BIP Broadband Infrastructure Projects

a. General

In accordance with the Recovery Act, the priority for BIP is to provide and improve broadband service to the highest proportion of rural residents who do not have adequate access to broadband service for rural development, which RUS defines to mean rural residents who reside in unserved and underserved rural areas. Additionally, the Recovery Act mandates that priority be given to projects which: i. Give end users a choice of providers; ii. serve the highest proportion of rural residents that lack access to broadband service; iii. are projects of current or former RUS borrowers (Title II borrowers); and iv. are fully funded and ready to start once Recovery Act funding is received. Lastly, coordination with other federal, state, and local programs, including Recovery Act programs, is highly encouraged as a way to more efficiently and effectively achieve program objectives.

b. Project Purpose (25 Points)

i.
Proportion of Rural Residents Served in Unserved Areas
(5 points). Points will be awarded for serving rural residents located in unserved areas. For every 10,000 unserved households that will receive broadband service, one point will be awarded up to a maximum of five points.

ii.
Rural Area Targeting
(5 points). Points will be awarded for exceeding the 75 percent rural area service requirement. For every five percent increase in the rural service area above the 75 percent rural area service requirement, one point will be awarded up to a maximum of five points.

iii.
Remote Area Targeting
(5 points). Up to five points will be awarded for proposed funded service areas that are at least 50 miles from a non-rural area. If at least one proposed funded service area is a minimum of 50 miles from a non-rural area, one point will be awarded. For each additional 50 miles that at least one proposed funded service area is located away from a non-rural area, one additional point will be awarded up to a total of five points.

iv.
Title II Borrowers
(5 points). Five points will be awarded to applications

which are submitted by entities which have borrowed under Title II of the RE Act.

v.
Recovery Act and other governmental collaboration
(5 points). Points will be awarded for cooperation with other governmental development programs as well as coordination with Recovery Act construction projects. Examples include the Department of Energy's Smart Grid, Investment Program, the Department of Housing and Urban Development's Public Housing Capital Fund, the Department of Transportation's Capital Assistance for High Speed Rail Corridors and Intercity Passenger Service program, and other investments where collaboration would lead to greater project efficiencies. In each case, the applicant must convincingly demonstrate that these leveraging efforts are substantive and meaningful. One point will be awarded for each partnered governmental or Recovery Act program that has demonstrated such a partnership is substantive and meaningful up to a maximum of five points.

c. Project Benefits (25 Points)

i.
Performance of the offered service
(10 points). For Last Mile Projects: For wireline projects that are constructed to deliver a minimum of 20 megabit per second service to the household (upstream plus downstream), ten points will be awarded. For wireless projects that are constructed to deliver a minimum of two megabits per second service to the end user (upstream plus downstream), ten points will be awarded. For projects that are a combination of wireline and wireless projects, both of the above standards must be met for the corresponding parts of the network in order to receive the ten points. For Middle Mile Projects: For middle mile projects that are constructed to deliver 100 megabits per second service to all end points in their network, ten points will be awarded.

ii.
Affordability of services offered
(5 points). RUS will evaluate the level of support that is provided and award up to five points for applications that demonstrate that the proposed rates for the broadband service are affordable for the targeted audience. The stronger the level of support that is provided, the higher the number of points that will be awarded.

iii.
Choice of provider
(5 points). Five points will be awarded to applications that propose to construct infrastructure and implement a business plan which would allow more than one provider to serve end users in the proposed funded service area.

iv.
Critical community facilities
(5 points). For applications that are proposing to offer discounted rate packages at least 25 percent lower than the advertised rate packages to all critical community facilities in the proposed funded service area, five points will be awarded.

d. Project Viability (25 Points)

i.
Applicant's organizational capability
(12 points). Up to twelve points will be awarded based on the strength of the project's management team. RUS will evaluate past performance and accomplishments and award points accordingly.

ii.
Community support
(2 points). Up to two points will be awarded if letters of support are received from all communities in the proposed funded service area from the designated community leader.

iii.
Ability to promptly start project
(10 points). Ten points will be awarded if the applicant can provide evidence that the following conditions have been satisfied:

(1) All licenses, franchises and regulatory approvals required to operate the system and provide the proposed services have been received;

(2) That the required contractors and vendors necessary to implement the project are prepared to enter into contracts as soon as funds are made available;

(3) That all required equity contributions have been transferred into the applicant's accounts; and

(4) That the project timeline and milestones are reasonable.

iv.
Disadvantaged small businesses
(1 point). One point will be awarded to applicants that meet the definition of a socially and economically disadvantaged small business concern under section 8(a) of the SBA.

e. Project Budget and Sustainability (25 Points)

i.
Reasonableness of the budget
(5 points). Up to five points will be awarded based on the clarity and reasonableness of the proposed budget.

ii.
Leverage of outside resources
(10 points). Up to ten points will be awarded based on the amount of outside resources contributed to the total financing provided under BIP:

(1) 10 points if this ratio is greater than 100%

(2) 7 points if this ratio is between 100% and 75%

(3) 5 points if this ratio is between 75% and 50%

(4) 3 points if this ratio is between 50% and 25%

(5) 1 point if this ratio is lower than 25%.

iii.
Extent of grant funding
(10 points). Up to ten points will be awarded based on the amount of grants funds requested in relation to the amount of loan funds requested (grant funds/loan funds):

(1) 0 points if grant funds are 100%

(2) 1 point if this ratio is between 100% and 75%

(3) 3 points if this ratio is between 75% and 50%

(4) 5 points if this ratio is lower than 50%

(5) 10 points if this ratio is zero.

2. BTOP Broadband Infrastructure, Public Computer Center, and Sustainable Broadband Adoption Projects

a. General

The evaluation criteria for BTOP projects will be the same across the BTOP project categories except: i. Under the Project Benefits section, different evaluation criteria and scoring methodologies are applied to each project category; ii. the Technical Feasibility criterion under the Project Viability heading is subdivided between Sustainable Broadband Adoption projects and all other BTOP project categories; and iii. the Sustainability criterion under the Budget and Sustainability heading is similarly subdivided between Sustainable Broadband Adoption projects and all other BTOP project categories. These variations are detailed in the descriptions of the evaluation criteria below.

b. Project Purpose (30 Points)

i.
Fit with statutory purposes.
Applications will be evaluated with respect to each of BTOP's statutory purposes.
39

Reviewers will consider, relative to each purpose, whether the applicant is addressing a compelling problem of the sort that the statute is intended to resolve, whether the applicant has offered an effective solution to that problem, and whether the proposed solution is of broad significance and includes developments that can be replicated to improve future projects. Additional consideration will be given to projects located partially or wholly unserved or underserved areas

of a state as described by the state submission in the State Broadband Data and Development Grant Program or as otherwise determined by NTIA. Additional consideration will also be given to applicants that address more than one statutory purpose and project category (
e.g.
, Broadband Infrastructure, Public Computer Centers, or Sustainable Broadband Adoption) in a convincing manner.

39

See
Recovery Act § 6001(b), 123 Stat. at 512-13 (to provide broadband access to unserved areas; to provide improved broadband access to underserved areas; to provide broadband access, education, and support to community anchor institutions, or organizations and agencies serving vulnerable populations, or job-creating strategic facilities located in state- or federally designated economic development areas; to improve access to, and use of, broadband service by public safety agencies; and to stimulate the demand for broadband, economic growth, and job creation).

ii.
Recovery Act and other governmental collaboration.
Applicants will be evaluated on their collaboration with Recovery Act or other federal or state development programs that leverage the impact of the proposed project. Examples include the Department of Energy's Smart Grid Investment Program, the Department of Housing and Urban Development's Public Housing Capital Fund, the Department of Transportation's Capital Assistance for High-Speed Rail Corridors and Intercity Passenger Service program, and other investments where collaboration would lead to greater project efficiencies. In each case, the applicant must convincingly demonstrate that these leveraging efforts are substantive and meaningful.

iii.
Enhanced service for health care delivery, education, and children.
Reviewers will assess the depth and breadth of the project's ability to enhance broadband service for health care delivery, education, and children as contemplated by the Recovery Act.
40

Projects would need to demonstrate that they go beyond providing access to broadband to include more robust educational, health care, or related broadband service delivery.

40

See id.
§ 6001(h)(2)(C), 123 Stat. at 515.

iv.
Socially and economically disadvantaged small businesses.
Reviewers will grant consideration to applicants that certify they meet the statutory definition of a socially and economically disadvantaged small business concern, or that have established agreements in principle to contract with socially and economically disadvantaged businesses that meet that definition.

c. Project Benefits (25 Points)

Reviewers will evaluate the various benefits that the proposed project will provide. This criterion will be focused primarily on measuring the benefits of the proposed project. Due to the broad scope of the three project categories and the expected diversity of proposed projects, the specific elements to be evaluated under this heading vary from one project category to another, as described below.

i. BTOP Broadband Infrastructure Last Mile Projects

(1)
Cost-effectiveness.
Applications will be scored on the project's cost-efficiency based on the ratio of the total cost of the project to households passed.

(2)
Performance of the offered service.
Applications will be scored for the extent to which the advertised speed for the network's highest offered speed tier exceeds the minimum speed requirement for broadband service (768 kbps downstream and 200 kbps upstream). Networks will be graded on a sliding scale with higher end-user speeds receiving a higher score. Proposed networks with high latency will be viewed unfavorably. Applicants may gain additional consideration if the applicant can demonstrate a clear and affordable upgrade path for the network.

(3)
Affordability of services offered.
Projects will be evaluated on the pricing of the services offered compared to existing broadband services in the proposed funded service area. If there are no existing broadband services in the proposed funded service area, projects will be evaluated on the ability of the applicant to convincingly demonstrate that their proposed pricing is appropriate for the service area.

(4)
Nondiscrimination, interconnection, and choice of provider.
Applications will be scored on the extent to which the applicant commits to exceeding the minimum requirements for interconnection and nondiscrimination established in section V.C.2.b. of this NOFA. Additional consideration will be given for displaying the network's nondiscrimination and interconnection policies in a prominent location on the service provider's Web page, and providing notice to customers of changes to these policies. Additional consideration will be given to applicants that commit to offering wholesale access to the project facilities at reasonable rates and terms. Additional consideration will also be given to applicants that commit to binding private arbitration of disputes concerning the awardees' interconnection obligations as explained above in section V.C.2.b of this NOFA. Reviewers will also consider whether the application proposes to construct infrastructure and implement a business plan which would allow more than one provider to serve end users in the proposed funded service area.

ii. BTOP Broadband Infrastructure Middle Mile Projects

For purposes of evaluating BTOP Middle Mile projects, applicants should define the area that will directly benefit from the project, including the community anchor institutions and end users that may receive broadband service through the proposed middle mile network.

(1)
Impact on the area.
Applications will be scored on how great an impact they would have on the area. Reviewers will consider the number of end-points and points of interconnection the network will offer and the proposed connections to last mile networks, community anchor institutions, or public safety entities, as well as the projected number of new end users served by those proposed connections.

(2)
Level of need in the area.
Applications will be scored on the level of need for a middle mile network in the area. Reviewers will consider whether there are middle mile providers already present in all or part of the area, as well as the pricing and available capacity of those providers. Reviewers will also consider what proportion of the network's end-points, points of interconnection, and projected end users are located in unserved or underserved areas. In addition, reviewers will also consider applicants' explanation of why their proposed project is well-suited to address the needs of the area.

(3)
Network capacity.
Applicants will be evaluated on the capacity of the network. The network should provide capacity sufficient to serve the anticipated last mile networks, community anchor institutions, and public safety entities, and the number of end users served by them, as projected by the applicant, taking into consideration the nature of the services that these institutions and end users are likely to seek to utilize the network for. Reviewers will give additional consideration to projects that will be scalable to meet the future needs of the area.

(4)
Affordability of services offered.
Projects will be evaluated on the pricing of the services offered compared to existing broadband services in the proposed funded service area. If there are no existing broadband services in the proposed funded service area, projects will be evaluated on the ability of the applicant to convincingly demonstrate that their proposed pricing for middle mile services is appropriate for the proposed funded service area.

(5)
Nondiscrimination, interconnection, and choice of provider.
Applications will be scored on the extent to which the applicant commits to exceeding the minimum requirements for interconnection and nondiscrimination established in

section V.C.2.b. of this NOFA. Additional consideration will be given for displaying the network's nondiscrimination and interconnection policies in a prominent location on the service provider's web page, and providing notice to customers of changes to these policies. Additional consideration will be given to applicants that commit to offering wholesale access to network components and services such as wavelength or fibers at reasonable rates and terms. Additional consideration will also be given to applicants that commit to binding private arbitration of disputes concerning the awardees' interconnection obligations as explained above in section V.C.2.b of this NOFA. Reviewers will also consider whether the application proposes to construct infrastructure and implement a business plan which would allow more than one provider to serve end users in the proposed funded service area.

iii. BTOP Public Computer Center Projects

(1)
Availability to the public

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3AE9-16268. Public record. Not legal advice.