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Thursday,

July 9, 2009

Part III

Department ofAgriculture

Rural Utilities Service

Department ofCommerceNational Telecommunications andInformation Administration

Broadband Initiatives Program; Broadband

Technology Opportunities Program;Notice


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33104 Federal Register / Vol. 74, No. 130 / Thursday, July 9, 2009 / Notices

DEPARTMENT OF AGRICULTURE

Rural Utilities Service

RIN 0572ZA01

Broadband Initiatives Program

DEPARTMENT OF COMMERCE

National Telecommunications andInformation Administration

RIN 0660ZA28

Broadband Technology OpportunitiesProgram

AGENCIES: Rural Utilities Service (RUS),Department of Agriculture, and NationalTelecommunications and InformationAdministration (NTIA), Department ofCommerce.

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

SUMMARY

: RUS and NTIA announcegeneral policy and applicationprocedures for broadband initiativesestablished pursuant to the AmericanRecovery and Reinvestment Act of 2009(Recovery Act). RUS is establishing theBroadband Initiatives Program (BIP)which may extend loans, grants, andloan/grant combinations to facilitate

broadband deployment in rural areas.NTIA is establishing the BroadbandTechnology Opportunities Program(BTOP) which makes available grantsfor deploying broadband infrastructurein unserved and underserved areas inthe United States, enhancing broadbandcapacity at public computer centers, andpromoting sustainable broadbandadoption projects. In facilitating theexpansion of broadbandcommunications services andinfrastructure, both programs willadvance the objectives of the RecoveryAct to spur job creation and stimulatelong-term economic growth andopportunity.

DATES: Applications will be acceptedbetween July 14, 2009, at 8 a.m. EasternTime (ET) until August 14, 2009, at 5p.m. ET.

Application Submission: Theapplication packages for electronic andpaper submissions will be available athttp://www.broadbandusa.gov.

Electronic submissions: Electronicsubmissions of applications will allowfor the expeditious review of anapplicants proposal consistent with thegoals of the Recovery Act. As a result,all applicants requesting more than $1million in assistance (in the form ofgrants, loans, or a combination of grantsand loans) must file their applicationelectronically. Applicants whose

authorized representatives areindividuals with disabilities, however,may submit a paper applicationirrespective of the funding size of theirrequest.1 In addition, applicants whoare requesting less than $1 million inassistance may forego the electronicfiling requirement if filing electronicallywould impose a hardship on the

applicant. Electronic applications mustbe submitted by 5 p.m. ET on August14, 2009. The government electronicapplication system will provide a dateand time stamped confirmation numberthat will serve as proof of submission.

Paper submissions: Applicantsrequesting less than $1 million inassistance (in the form of grants, loans,or a combination of grants and loans)may file their applications in a paperformat if filing electronically wouldimpose a hardship on the applicants.Applicants whose authorizedrepresentatives are individuals with

disabilities may file their applications ina paper format irrespective of thefunding size of their request. To theextent that applicants use electronicword processing software to createpaper submissions, they should includein their filing, to the extent possible, anelectronic copy of the paper applicationon an appropriate media such as a CD.This will assist the agencies inprocessing paper applications. Papersubmissions must be postmarked nolater than August 14, 2009, or hand-delivered no later than 5 p.m. ET onAugust 14, 2009, to the addresses listedin the SUPPLEMENTARY INFORMATION in

this NOFA.Contact Information: For general

inquiries regarding BIP, contact David J.Villano, Assistant AdministratorTelecommunications Program, RuralUtilities Service, U.S. Department ofAgriculture (USDA), e-mail:[email protected]: (202) 6900525. For general inquiries regardingBTOP, contact Anthony Wilhelm,Deputy Associate Administrator,Infrastructure Division, Office ofTelecommunications and InformationApplications, NationalTelecommunications and Information

Administration, U.S. Department ofCommerce (DOC), email:[email protected], telephone: (202)4822048. For inquiries regarding BIPand BTOP compliance requirements,including applicable federal rules andregulations protecting against fraud,waste and abuse, [email protected] BIPand [email protected]. You may obtain additional

1See Rehabilitation Act of 1973 508, 29 U.S.C.794d.

information regarding applications forBIP via the Internet at http://www.usda.gov/rus/telecom/and forBTOP at http://www.ntia.doc.gov/broadbandgrants/.

Authority: This notice is issuedpursuant to the American Recovery andReinvestment Act of 2009, Public Law1115, 123 Stat. 115 (2009) and theRural Electrification Act of 1936, 7U.S.C. 901 et seq.

SUPPLEMENTARY INFORMATION:

Catalog of Federal DomesticAssistance (CFDA) Number: BroadbandInitiatives Program (BIP)10.787;Broadband Technology OpportunitiesProgram (BTOP)11.557.

Additional Items in SupplementaryInformation

I. Overview: Describes the purposes of theRecovery Act, the broadband goals of theRecovery Act, and the establishment of BIPand BTOP.

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

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

IV. Award Information: Describes fundingavailability, grant and loan terms, asapplicable, and other award information.

V. Eligibility Information for BIP andBTOP: Establishes eligibility criteria,eligibility factors, eligible and ineligiblecosts, and other eligibility requirements.

VI. Application and SubmissionInformation: Provides information regardinghow to apply, application materials, and theapplication process.

VII. Application Review Information:Establishes the evaluation criteria forapplication review.

VIII. Anticipated Announcement andAward Dates: Identifies the initialannouncement date for certain awards, andprovides other information regarding BIP andBTOP.

IX. Award Administration Information:Provides award notice information,administrative and national policyrequirements, terms and conditions, andother reporting requirements for awardrecipients.

X. Other Information: Sets forth guidanceon funding, compliance with various laws,confidentiality, discretionary awards, andauthorized signatures.

I. Overview

On February 17, 2009, PresidentObama signed the American Recoveryand Reinvestment Act of 2009 (RecoveryAct) into law.2 The essential goal of theRecovery Act is to provide a directfiscal boost to help lift our Nation fromthe greatest economic crisis in ourlifetimes and lay the foundation for

2American Recovery and Reinvestment Act of2009, Public Law 1115, 123 Stat. 115 (2009).
http:///reader/full/http://www.broadbandusa.govmailto:[email protected]:[email protected]:[email protected]:[email protected]://www.usda.gov/rus/telecomhttp:///reader/full/http://www.ntia.doc.govhttp:///reader/full/http://www.broadbandusa.govmailto:[email protected]:[email protected]:[email protected]:[email protected]://www.usda.gov/rus/telecomhttp:///reader/full/http://www.ntia.doc.gov


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33105Federal Register / Vol. 74, No. 130 / Thursday, July 9, 2009 / Notices

future growth. 3 Accordingly, theRecovery Act identifies five overallpurposes: A. To preserve and create jobsand promote economic recovery; B. toassist those most impacted by therecession; C. to provide investmentsneeded to increase economic efficiency

by spurring technological advances inscience and health; D. to invest in

transportation, environmentalprotection, and other infrastructure thatwill provide long-term economic

benefits; and E. to stabilize state andlocal government budgets.4 TheRecovery Act further instructs thePresident and the heads of federaldepartments and agencies to manageand expend Recovery Act funds toachieve these five purposes,commencing expenditures andactivities as quickly as possibleconsistent with prudent management. 5

Consistent with the purposesdescribed above, the Recovery Act

provides RUS and NTIA with $7.2billion to expand access to broadbandservices in the United States. In sodoing, it recognizes the growingimportance of access to broadbandservices to economic development andto the quality of life of all Americans.Specifically, the Recovery Act tasksRUS, NTIA, and the FederalCommunications Commission (FCC)with leading the federal governmentsefforts to begin the process ofsignificantly expanding the reach andquality of broadband services.

RUS, NTIA, and the FCC have worked

closely to leverage the authorities andresources provided in the Recovery Actto develop a coordinated federalgovernment approach to addressing thechallenge of rapidly expanding theaccess and quality of broadband servicesacross the country. Each agency bringsunique skills and resources to thiseffort. RUS has been the federalgovernment leader in bringingtelecommunications to rural Americafor decades. NTIA has experience inawarding technology-related grantsthrough the Technology OpportunitiesProgram and serves as the Presidents

principal advisor ontelecommunications and informationpolicies.6 And NTIA and the FCCtogether are responsible for thedevelopment of federaltelecommunications policy.

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

4Recovery Act 3(a), 123 Stat. at 11516.5See id. 3(b), 123 Stat. at 116.6See Technology Opportunities Program, http://

www.ntia.doc.gov/otiahome/top/index.html; NTIAOrganization Act of 1992, 47 U.S.C. 901 et seq.

Additionally, to aid in achievingRecovery Act objectives, on March 10,2009, RUS, NTIA, and the FCC co-sponsored a public meeting to initiatepublic outreach about the currentavailability of broadband service in theUnited States and ways in which theavailability of broadband services could

be expanded.7 The March 10 meeting

was followed by the release of a Requestfor Information (RFI) and six days ofadditional public meetings and fieldhearings during March.8 The meetingsand hearings included nearly 120panelistsincluding representativesfrom consumer and public interestgroups, state and local governments,tribal governments, minority andvulnerable populations, industry,academia, and other institutionswhoprovided comment on how to makeRUSs and NTIAs broadband initiativeseffective, equitable, and efficient.9

In response to the RFI and the public

meetings, RUS and NTIA received over1,000 comments from institutions andindividuals.10RUS and NTIA receivedcomments on multiple issuessurrounding BIP and BTOP, includinghow the terms broadband, unservedarea, and underserved area should

be defined, resulting in the definitionsand program requirements announcedin this NOFA. These comments playeda crucial role in formulating thestructure of the RUS and NTIA

broadband programs. For furtherdiscussion and explanation of theagencies reliance on the public

comments in the policy decisionsinvolved in BIP and BTOP, see theattached Policy Justification found inthe Appendix at the end of this NOFA.

RUS and NTIA Recovery Actprograms implement new authorities.Specifically, the Recovery Act expandsRUSs existing authority to make loansand provides new authority to makegrants to facilitate broadbanddeployment in rural areas. The RecoveryAct appropriates $2.5 billion of budgetauthority for RUS to extend loans, loan/grant combinations, and grants toprojects where at least 75 percent of anRUS-funded area is in a rural area thatlacks sufficient access to high speed

broadband service to facilitate ruraleconomic development. RUS has

7SeeJoint Notice of Public Meeting, 74 FR 8914(Feb. 27, 2009).

8SeeJoint Request for Information and Notice ofPublic Meetings, 74 FR 10716 (Mar. 12, 2009).

9Agendas, transcripts, and presentations fromeach meeting are available on NTIAs Web site at:http://www.ntia.doc.gov/broadbandgrants/meetings.html.

10Comments may be viewed on NTIAs Web siteat: http://www.ntia.doc.gov/broadbandgrants/comments.

developed BIP to fund broadbandinfrastructure in qualifying areas.11

The Recovery Act also appropriates$4.7 billion to NTIA to provide grantsfor broadband initiatives throughout theUnited States, including unserved andunderserved areas.12NTIA is tasked tospur job creation, stimulate long-termeconomic growth and opportunity, and

narrow gaps in broadband deploymentand adoption. The NTIA program istitled BTOP. Consistent with itsappropriation, BTOP is divided intothree categories of projects: BroadbandInfrastructure, Public Computer Centers,and Sustainable Broadband Adoption.

Applications to fund broadbandinfrastructure projects in areas whichare at least 75 percent rural are requiredto be submitted to RUS forconsideration under BIP. If suchapplicants intending to serve rural areasalso choose to be considered for BTOPfunding, then they must complete the

additional elements required of BTOPinfrastructure applicants. NTIA maymake awards to such applications NTIAdetermines to be meritorious after RUShas reviewed the application anddetermined not to fund it. All otherapplications for BroadbandInfrastructure projects, as well asapplications for Public ComputerCenters or Sustainable BroadbandAdoption projects, must be submitted toNTIA for consideration under BTOP.

The purpose of this NOFA is todescribe the availability of the BIP andBTOP funds and set forth the

application requirements for thoseentities wishing to participate in one ormore of the Recovery Acts broadbandprograms. Applicants may submitprojects that fit within one or morecategories. Each application will becompared against objective criteria todetermine whether an award iswarranted.

In order to balance the burdens onapplicants versus the needs of theagencies to efficiently evaluateapplications, RUS and NTIA havedeveloped a two-step applicationprocess. In step one, the goal is to createa pool of viable and potentially fundableapplications. Step two is to fullyvalidate the submissions in step one andidentify the most highly qualifiedapplications for funding.

Rapid disbursement of the fundsavailable under this program isimportant because of the short timeframes imposed by the Recovery Act.Additionally, a commitment totransparency in the award process and

11 See Recovery Act div. A, tit. I, 123 Stat. at 118.12See id. div. A, tit. II, 123 Stat. at 128.
http://www.ntia.doc.gov/otiahome/top/index.htmlhttp:///reader/full/individuals.10http:///reader/full/individuals.10http://www.ntia.doc.gov/broadbandgrantshttp://www.ntia.doc.gov/broadbandgrantshttp:///reader/full/areas.11http:///reader/full/areas.11http:///reader/full/areas.12http:///reader/full/areas.12http://www.ntia.doc.gov/otiahome/top/index.htmlhttp:///reader/full/individuals.10http://www.ntia.doc.gov/broadbandgrantshttp://www.ntia.doc.gov/broadbandgrantshttp:///reader/full/areas.11http:///reader/full/areas.12


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rigorous reporting requirements willhelp ensure accountability.

Approximately $4 billion of programlevel funding has been allocated to thisNOFA by RUS and NTIA. Theremaining funds will be made availableunder subsequent NOFAs. Therequirements for subsequent NOFAsmay differ from this NOFA to better

achieve the agencies priorities.II. Funding Opportunity Description

A. BIP

1. BIP Objectives

The Recovery Act expands RUSsexisting authority to make loans andprovides new authority to make grantsfor the purpose of facilitating broadbanddeployment in rural communities.Specifically, the Recovery Act requiresthat 75 percent of a funded area be ina rural area that lacks sufficient accessto high speed broadband service tofacilitate economic development.Because of the short time framesimposed by the Recovery Act, therequirements outlined in this NOFAwill be used to govern programimplementation.

Under BIP, RUS will award grants,loans, and loan/grant combinations for

broadband infrastructure. Grants underBIP are to be used to fund applicationsproposing to exclusively serve remote,unserved, rural areas. BIP loan andloan/grant combination funds are to beused to provide funding to applicationsproposing to serve non-remote andunderserved rural areas. Projects which

include non-remote and remote areaswill be funded by loans or loan/grantcombinations. The size of the grantportion of any loan/grant combinationaward is determined by the applicant,

but cannot exceed the amount of theloan portion of the award. RUS willfavor applications that propose a higherpercentage of loan funds. Applicantsmay request 100 percent loan funding.RUS will seek to make the extension of

broadband infrastructure into difficult-to-serve areas affordablea keyobjective of BIP fundingthroughsubstantial grant funds and attractive

loan terms with reasonable securityrequirements.The Recovery Act establishes the

rapid disbursement of the funds as animportant priority for the BIP program.However, the program also must beadministered judiciously to ensureresponsible use of public funds. To

balance these two objectives, RUS willfavor funding projects that cancommence construction promptly anddemonstrate technical and financialfeasibility, organizational capacity, andcompliance with other Administration

priorities. A commitment totransparency in the award process andrigorous reporting requirements willhelp ensure accountability.

2. BIP Priorities

The Recovery Act requires that 75percent of a BIP-funded area be in arural area that lacks sufficient access to

high speed broadband service tofacilitate rural economicdevelopment.13 Additionally, theRecovery Act mandates that priority begiven to projects which: a. Give endusers a choice of providers; b. Serve thehighest proportion of rural residentsthat lack access to broadband service;c. Are projects of current or former RUS

borrowers (Title II borrowers); andd. Are fully funded and ready to startonce Recovery Act funding is received.BIP application scoring criteria awardsprojects that implement thesepriorities.14

3. BIP Application and SelectionProcess

RUS has adopted a two-phaseapplication process. Step one of theapplication process requires thesubmission of the information describedin section VI.D.1.a. This informationwill be evaluated by RUS forcompleteness and eligibility. Ineligibleand incomplete applications will berejected. Eligible applications will beevaluated and ranked based on theapplicable scoring criteria described insection VII. The highest scoringapplications will be invited to

participate in step two of theapplication process by submitting theadditional documentation described insection VI.D.1.b. to further support theapplicants representations made in stepone of the application process. If theadditional documentation does notadequately verify the first submission,then the application will be rejected.

B. BTOP

1. BTOP Objectives

Section 6001 of the Recovery Actestablishes a national broadband servicedevelopment and expansion program to

promote five core purposes:a. To provide access to broadbandservice to consumers residing inunserved areas of the country;

b. To provide improved access tobroadband service to consumersresiding in underserved areas of thecountry;

c. To provide broadband access,education, awareness, training,equipment, and support to community

13 Id. div. A, tit. I, 123 Stat. at 118. 14 Id. at 11819.

anchor institutions (e.g., schools,libraries, medical facilities), ororganizations and agencies servingvulnerable populations (e.g., low-income, unemployed, aged), or job-creating strategic facilities located instate- or federally designated economicdevelopment areas;

d. To improve access to, and use of,

broadband service by public safetyagencies; and

e. To stimulate the demand forbroadband, economic growth, and jobcreation.15

The Recovery Act provides $4.7billion to NTIA for BTOP, to be awardedby September 30, 2010, whichrepresents a significant investment toadvance President Obamas national

broadband strategy.16Of this amount, atleast $200 million will be madeavailable for competitive grants forexpanding public computer centercapacity. In addition, at least $250million will be available for competitivegrants for innovative programs toencourage sustainable adoption of

broadband services. Up to $350 millionis available from the Recovery Act tofund the State Broadband Data andDevelopment Grant Program authorized

by the Broadband Data ImprovementAct 17 and to support the developmentand maintenance of a nationwide

broadband map for use by policymakersand consumers. A forthcoming NOFAwill outline policies and procedures forthe State Broadband Data andDevelopment Grant Program.

BTOP funds are available through

three categories of eligible projects:Broadband Infrastructure, PublicComputer Centers, and SustainableBroadband Adoption.18The BroadbandInfrastructure category consists of twocomponentsLast Mile and MiddleMileand will fund projects to deliver

broadband access to unserved andunderserved areas. The PublicComputer Center category will fundprojects that expand public access to

broadband service and enhancebroadband capacity at entities, such ascommunity colleges and publiclibraries, that permit the public to usethese computing centers.19TheSustainable Broadband Adoptioncategory will fund innovative projectsthat promote broadband demand,including projects focused on providing

broadband education, awareness,training, access, equipment or support,

15See id. 6001(b), 123 Stat. at 51213.16See id. div. A, tit. II, 123 Stat. at 128.17Public Law 110385, 122 Stat. 4096 (to be

codified at 47 U.S.C. 1301 et seq.).18See Recovery Act div. A, tit. II, 123 Stat. at 128.19 Id. div. A, tit. II & 6001(b)(3), 123 Stat. at 128,

51213.
http:///reader/full/priorities.14http:///reader/full/priorities.14http:///reader/full/creation.15http:///reader/full/creation.15http:///reader/full/strategy.16http:///reader/full/strategy.16http:///reader/full/Adoption.18http:///reader/full/Adoption.18http:///reader/full/centers.19http:///reader/full/centers.19http:///reader/full/priorities.14http:///reader/full/creation.15http:///reader/full/strategy.16http:///reader/full/Adoption.18http:///reader/full/centers.19


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particularly among vulnerablepopulation groups where broadbandtechnology has traditionally beenunderutilized.20

The Recovery Act also recognizes thevaluable role that the states andterritories can play in implementingBTOP, and permits NTIA to consult

with them in identifying unserved andunderserved areas within their bordersand in allocating grant funds for projectsin or affecting their jurisdictions.21

Consistent with the Recovery Act, NTIAhas consulted with the FCC on thisNOFA.

2. BTOP Priorities

All projects funded under BTOP mustadvance one or more of the fivestatutory purposes outlined above. Theprogram is designed to extend

broadband access to unserved areas,improve access to underserved areas,

and expand broadband access to a widerange of institutions and individuals,including vulnerable populations. Itwill seek to serve the highest priorityneeds for federal investmentparticularly projects that offer thepotential for economic growth and jobcreation, and provide benefits toeducation, health care, and publicsafety. The program will support viable,sustainable, and scalable projects. NTIAwill favor proposals that satisfy thepublic-interest objectives specified inthe statute and detailed in this NOFA.These projects can serve as models for

future investors once economicconditions improve.

NTIA expects to distribute grantsacross geographic areas addressing thesevarious public purposes. It will issueawards on a technologically neutral

basis, and expects to support projectsemploying a range of technologies (e.g.,fixed and mobile wireless, fiber,satellite). In making these awards, NTIAwill also take into considerationwhether an applicant is a socially andeconomically disadvantaged small

business concern as defined undersection 8(a) of the Small Business Act

(SBA) (15 U.S.C. 637(a)(4)).22

Finally, itis also important to highlight the desireof the Recovery Act to extend non-discrimination and networkinterconnection obligations onawardees. In particular, the RecoveryAct directs NTIA to impose contractualconditions on BTOP grants that would,at a minimum, adhere to the principles

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

21 Id. 6001(c), 123 Stat. at 513.22See id. 6001(h)(3), 123 Stat. at 51415.

contained in the FCCs broadbandpolicy statement.23

3. BTOP Application and SelectionProcess

NTIA will employ a two-stepapplication review process. First,however, NTIA will conduct an initialscreen of applications to determine

whether an application meets themandatory threshold requirements, suchas application completeness, set forth insection V.C. of this NOFA. These aremandatory threshold requirements thatqualify an application for furtherreview. Applicants that fail to meet anyof the eligibility factors will be notifiedin writing of the reason for the rejection.Subsequent to this initial screening,applications will proceed to the stepone review process. The applicationswill receive at least three independentreviews (by a three-member reviewpanel) against the eligibility factors as

well as against the evaluation criteriaprovided in this NOFA. This reviewpanel will be comprised of at least threepeer/expert reviewers who havedemonstrated subject-matter expertise.No consensus advice will be given bythe reviewers. Each reviewer willindependently score the application,and reviewer scores will be averaged.Based on these scores, applications thatare considered the most highly qualifiedwill advance to the step two, duediligence, review for furtherconsideration. All other applicationswill be rejected, and the applicants will

be notified in writing of the reason forthe rejection.

In step two of the review process, theremaining applicants will be asked tosubmit additional information, asappropriate, such as more detailed plansor supporting documents 24 to furthersubstantiate the representations made intheir application.

The supplemental information will bereviewed and analyzed by NTIA staffwith the support of externalengineering, business, and subject-matter experts to evaluate theconsistency of the applications with thesupporting documents and ensure

applications merit awards. Applicantswhose supporting documents do notadequately substantiate therepresentations in their application may

be rejected, and the applicants will benotified in writing of the reason for therejection. Upon completion of its duediligence, NTIA program staff willcomplete its analysis of each application

by assigning a rating based on its

23 Id. 6001(j), 123 Stat. at 515.24See infra section VI.D.1.b. for more details

regarding the required additional information.

consistency with the representationsmade in the application. This rating will

be based on a five-point scale (15),with a five representing the highestconsistency and conformity with theinformation already provided,especially on technical and budgetconsiderations.

All states will be provided an

opportunity to make recommendationsconcerning the allocation of funds forqualifying projects in or affecting theindividual states during step two of theBTOP application process, regardless oftheir participation in the StateBroadband Data and Development GrantProgram. During step two of the BTOPapplication process, the Governorsoffice of each state will receive a list ofthe applications under consideration.States may provide a list andprioritization of recommended projects,along with an explanation of why theselected proposals meet the greatest

needs of the state. States are stronglyencouraged to provide mapping andplanning data to support theirrecommendations. States participatingin the State Broadband Data andDevelopment Grant Program may relyon their submission under that programto fulfill this request. All states willhave 20 calendar days from the date ofnotification to submit to NTIA theirrecommendations.

Upon completion of the step tworeview, NTIA reserves the right todiscuss with the applicant specificmodifications to the application toresolve any differences that may exist

between the applicants original requestand what NTIA is willing to fund. Notall applicants contacted will necessarilyreceive a BTOP award. The Director ofBTOP (BTOP Director) will then prepareand present a package of recommendedgrant awards to the AssociateAdministrator for the Office ofTelecommunications and InformationApplications (OTIA AssociateAdministrator) for review and approval.The BTOP Directors recommendationsand the OTIA Associate Administratorsreview and approval will take intoaccount the following selection factors:

a. The Evaluation Criteria Reviewscore of the peer/expert reviewers;b. The Due Diligence Review rating of

the federal reviewers and the analysis ofNTIA program staff;

c. Satisfaction of the programspurpose and priorities as described inthe section entitled ProgramDescription (e.g., considering whetherthe applicant is a socially andeconomically disadvantaged small

business concern; ensuring that servicefor health care delivery, education, andchildren is enhanced to the greatest
http:///reader/full/underutilized.20http:///reader/full/underutilized.20http:///reader/full/jurisdictions.21http:///reader/full/jurisdictions.21http:///reader/full/637(a)(4)).22http:///reader/full/637(a)(4)).22http:///reader/full/statement.23http:///reader/full/statement.23http:///reader/full/underutilized.20http:///reader/full/jurisdictions.21http:///reader/full/637(a)(4)).22http:///reader/full/statement.23


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population of users; improve access toand use by public safety; ensuring thatthe greatest broadband speed isprovided to the greatest population ofusers as set forth in the Recovery Act;providing broadband access toconsumers in unserved areas; improving

broadband service in underservedareas);

d. The geographic distribution of theproposed grant awards and diversity ofpopulations served (e.g., ensuring that,to the extent practical, NTIA award notless than one grant in each state as setforth in the Recovery Act);

e. The range of technologies and usesof the technologies employed by theproposed grant awards;

f. Avoidance of redundancy, conflictswith the initiatives of other federalagencies, including Department ofAgriculture loan and grant programs for

broadband services, and, to the extentpractical, avoidance of unjust

enrichment;25

g. The availability of funds; andh. If applicable, the recommendations

of states, including, but not limited to,such recommendations as described intheir application for the StateBroadband Data and Development GrantProgram or as subsequently provided toNTIA either on its own or along withthe submission of state-level broadbandmaps.26

Upon approval by the OTIA AssociateAdministrator, the BTOP Directorsrecommendation will then be presentedto the Selecting Official, the Assistant

Secretary of NTIA. The AssistantSecretary selects the applications forgrant awards, taking into considerationthe BTOP Directors recommendationsand the degree to which the applicationpackage, taken as a whole, satisfies theselection factors described above andthe programs stated purposes andpriorities as set forth in section II.B ofthis NOFA. Awards will be made on arolling basis subject to the availability offunds.

III. Definitions

The terms and conditions provided inthis NOFA are applicable to and for

purposes of this NOFA only. Theseterms, conditions, and definitions maychange in subsequent NOFAs issuedregarding BIP and BTOP.

25Recovery Act 6001(h)(2)(D), 123 Stat. at 515.26Consistent with Recovery Act, the application

for the State Broadband Data and DevelopmentGrant Program will provide participating states theopportunity to identify unserved and underservedareas in their state. In their Mapping Grantapplication, states may also make recommendationsconcerning the allocation of funds for projects in oraffecting the individual states at the time the statesubmits its Mapping Grant application.

Administratormeans the RUSAdministrator, or the Administratorsdesignee.

Applicantmeans an entity requestingapproval of an award under this NOFA.

Assistant Secretarymeans theAssistant Secretary for Communicationsand Information, NationalTelecommunications and Information

Administration, Department ofCommerce, or the Assistant Secretarysdesignee.

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

Awardmeans a grant, loan, or loan/grant combination made under thisNOFA by either RUS or NTIA.

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

BIPmeans the Broadband InitiativesProgram, administered by the RUS,under the Recovery Act.

Borrowermeans the recipient of a

RUS loan under this NOFA.Borrower/grantee means the recipient

of a RUS loan/grant combination underthis NOFA.

Broadbandmeans providing two-waydata transmission with advertisedspeeds of at least 768 kilobits persecond (kbps) downstream and at least200 kbps upstream to end users, orproviding sufficient capacity in amiddle mile project to support theprovision of broadband service to endusers.

BTOPmeans the BroadbandTechnology Opportunities Program,

administered by NTIA, under theRecovery Act.Build-outmeans the construction or

improvement of facilities andequipment as specified in theapplication.

Composite economic life means theweighted (by dollar amount of eachclass of facility in the loan) averageeconomic life of all classes of facilitiesfinanced by a BIP loan.

Community anchor institutions meansschools, libraries, medical andhealthcare providers, public safetyentities, community colleges and otherinstitutions of higher education, andother community support organizationsand agencies that provide outreach,access, equipment and support servicesto facilitate greater use of broadbandservice by vulnerable populations,including low-income, unemployed,and the aged.

Critical community facilities meanspublic facilities that provide communityservices essential for supporting thesafety, health, and well-being ofresidents, including, but not limited to,emergency response and other public

safety activities, hospitals and clinics,libraries and schools.

Current ratio means the BIPapplicants current assets divided by thecurrent liabilities; all financial terms aredefined by GAAP.

Economic life means the estimateduseful service life of an asset asdetermined by RUS in connection with

awards made under BIP.Forecast periodmeans the time periodused by RUS and NTIA to determine ifan application is financially feasible.Financial feasibility of an application is

based on five-year projections.GAAPmeans generally accepted

accounting principles.Grant agreementmeans the agreement

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

Grant funds mean federal fundsprovided pursuant to a grant made

under this NOFA.Grantee means the recipient of a grant

under this NOFA.Last Mile projectmeans any

infrastructure project the predominantpurpose of which is to provide

broadband service to end users or end-user devices (including households,

businesses, community anchorinstitutions, public safety entities, andcritical community facilities).

Last Mile Non-Remote projectmeansany broadband infrastructure project (orgroup of projects) that is not exclusivelya last mile remote area project, and that

provides broadband service to the enduser or end-user devices in a servicearea eligible for BIP funding.

Last Mile Remote Area projectmeansany broadband infrastructure projectthat provides broadband service to theend user or to end-user devices only ina remote area(s) eligible for BIP funding.

Loan means any loan made under thisNOFA by RUS.

Loan contractmeans the loanagreement between RUS and the

borrower, including all amendmentsthereto, available for review at http://www.broadbandusa.gov.

Loan documents mean the loan

contract, note(s), and securityinstrument between the borrower andRUS and any associated documentspertaining to the loan.

Loan/grantmeans any loan/grantcombination made under this NOFA byRUS.

Loan/grant contractmeans the loan/grant contract between RUS and the

borrower/grantee, including allamendments thereto available at http://www.broadbandusa.gov.

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

Middle Mile projectmeans abroadband infrastructure project thatdoes not predominantly provide

broadband service to end users or toend-user devices, and may includeinteroffice transport, backhaul, Internet

connectivity, or special access.Pre-application expense means any

reasonable expense incurred after therelease of this NOFA to prepare anapplication, including engineering costsand accountant/consultant fees.

Proposed funded service area meansthe area (either in all or part of anexisting service area or a new servicearea) where the applicant is requestingBIP or BTOP funds to provide

broadband service pursuant to thisNOFA.

Public computer centermeans a place,including but not limited to community

colleges, libraries, schools, youthcenters, employment service centers,Native American chapter houses,community centers, senior centers,assistive technology centers for peoplewith disabilities, community healthcenters, and Neighborhood NetworkCenters in public housingdevelopments, that provide broadbandaccess to the general public or a specificvulnerable population, such as low-income, unemployed, aged, children,minorities and people with disabilities.

RE Actmeans the RuralElectrification Act of 1936, as amended

(7 U.S.C. 901 et seq.).Recovery Actmeans the AmericanRecovery and Reinvestment Act of 2009,Public Law No. 1115, 123 Stat. 115(2009).

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

Rural area means any area, asconfirmed by the latest decennialcensus of the Bureau of the Census,which is not located within: 1. A city,town, or incorporated area that has apopulation of greater than 20,000inhabitants; or 2. an urbanized areacontiguous and adjacent to a city ortown that has a population of greaterthan 50,000 inhabitants. For purposes ofthe definition of rural area, an urbanizedarea means a densely populatedterritory as defined in the latestdecennial census of the U.S. CensusBureau.

Security documentmeans anymortgage, deed of trust, securityagreement, financing statement, or otherdocument that RUS determines isnecessary to perfect its interest in thesecurity for a loan or loan/grant.

Service area means the entire areawithin which a service provider eitheroffers or intends to offer broadbandservice and may include the proposedfunded service area.

State means, for purposes of BTOP, astate or political subdivision thereof, theDistrict of Columbia, or a territory orpossession of the United States.

TIER means times interest earnedratio. TIER is the ratio of a BIPapplicants net income (after taxes) plus(adding back) interest expense, alldivided by interest expense (existingand any new interest expense includingthe interest expense associated with theproposed loan); all financial terms aredefined by GAAP.

Underserved area means a proposedfunded service area, composed of one ormore contiguous census blocks 27

meeting certain criteria that measure theavailability of broadband service andthe level of advertised broadbandspeeds. These criteria conform to thetwo distinct components of theBroadband Infrastructure category ofeligible projectsLast Mile and MiddleMile. Specifically, a proposed fundedservice area may qualify as underservedfor last mile projects if at least one of thefollowing factors is met, though thepresumption will be that more than onefactor is present: 1. No more than 50percent of the households in theproposed funded service area haveaccess to facilities-based, terrestrial

broadband service at greater than theminimum broadband transmissionspeed (set forth in the definition of

broadband above); 2. No fixed or mobilebroadband service provider advertisesbroadband transmission speeds of atleast three megabits per second(mbps) downstream in the proposedfunded service area; or 3. The rate of

broadband subscribership for theproposed funded service area is 40percent of households or less. Aproposed funded service area mayqualify as underserved for Middle Mileprojects if one interconnection pointterminates in a proposed funded servicearea that qualifies as unserved orunderserved for Last Mile projects.

Unserved area means a proposedfunded service area, composed of one ormore contiguous census blocks, whereat least 90 percent of households in the

27Census blocks are the smallest geographic areasfor which the U.S. Bureau of the Census collectsand tabulates decennial census data. Census blocksare formed by streets, roads, railroads, streams andother bodies of water, other visible physical andcultural features, and the legal boundaries shownon Census Bureau maps. Census data at this levelserve as a valuable source for small-area geographicstudies. See the Census Bureaus Web site athttp://www.census.govfor more detailedinformation on its data gathering methodology.

proposed funded service area lackaccess to facilities-based, terrestrial

broadband service, either fixed ormobile, at the minimum broadbandtransmission speed (set forth in thedefinition of broadband above). Ahousehold has access to broadbandservice if the household can readilysubscribe to that service upon request.

IV. Award Information

A. Available Funds for BIP

1. General

Approximately $2,400,000,000 inprogram level funding has been setaside for funding opportunities underthis NOFA.

2. Funding Limits

Award amounts under this NOFA willbe limited as follows:

a. Last Mile Projects

Up to $1,200,000,000 is available forLast Mile projects. These projects mayconsist of Remote Area projects or Non-Remote projects. Up to $400,000,000 isavailable for grants for Remote Areaprojects. Up to $800,000,000 is availablefor loans or loan/grant combinations forNon-Remote projects.

b. Middle Mile Projects

Up to $800,000,000 is available forloans or loan/grant combinations forMiddle Mile projects.

3. Repooling

For categories that do not receive

applications that request the fullamount of allocated funds, excess fundsmay be directed to another category atRUSs discretion. Additionally, if RUSdoes not make awards in the fullamount allocated to a category, RUSmay, at its discretion, direct such excessfunds to another category.

4. National Reserve

Up to $325,000,000 is available for anational reserve. These funds may beused to augment the BIP fundingcategories established above, or remainunused for subsequent NOFAs. In any

event, all funds will be awarded no laterthan September 30, 2010.

5. Unused Funds

Funds made available but not used forthis NOFA may be directed tosubsequent NOFAs.

6. Award Period

All awards under BIP must be madeno later than September 30, 2010. Whilethe completion time will varydepending on the complexity of theproject, award recipients must
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substantially complete projectssupported by this program no later thantwo years, and projects must be fullycompleted no later than three years,following the date of issuance of theaward.

7. Type of Funding Instrument

The funding instruments for BIP will

be a grant, loan, and loan/grantcombination.

B. Available Funds for BTOP

1. General

Up to $1,600,000,000 in budgetauthority has been set aside for fundingopportunities under this NOFA.Publication of this NOFA does notobligate NTIA to award any specificproject or obligate all or any parts of anyavailable funds, although the RecoveryAct indicates that the AssistantSecretary shall award at least one grantin each state to the extent practical by

September 30, 2010.28

2. Funding Limits

Up to $1.4 billion is available to beawarded under this NOFA and will beallocated in the following categories:

a. Broadband Infrastructure projectswill be awarded no greater than $1.2

billion;b. Public Computer Center projects

will be awarded no greater than $50million; and

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

3. RepoolingSubject to the statutory thresholds set

forth in the Recovery Act, NTIA retainsthe discretion to divert funds from onecategory of projects to another.

4. National Reserve

Up to $200 million is available for anational reserve. These funds may beused to augment the BTOP fundingcategories established above, or remainunused for subsequent NOFAs. In anyevent, all funds will be awarded no laterthan September 30, 2010.

5. Unused Funds

Funds not awarded under this NOFAmay be used to fund subsequentNOFAs.

6. Award Period

All awards under BTOP must be madeno later than September 30, 2010.29

While the completion time will varydepending on the complexity of theproject, grant recipients must

28Recovery Act 6001(h)(1), 123 Stat. at 514. 29 Id. 6001(d)(2), 123 Stat. at 513.

substantially complete projectssupported by this program no later thantwo years, and projects must be fullycompleted no later than three years,following the date of issuance of thegrant award.30

7. Type of Funding Instrument

The funding instrument for BTOP will

be a grant.V. Eligibility Information for BIP andBTOP

A. In General

Applicants must satisfy the followingeligibility requirements to qualify forfunding.

B. Eligible Entities

1. Applicant Organization

The following entities are eligible toapply for assistance:

a. States, local governments, or anyagency, 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 EducationAssistance Act (25 U.S.C. 450b));

e. A native Hawaiian organization;f. A non-profit foundation, a non-

profit corporation, a non-profitinstitution, or a non-profit association;

g. Other non-profit entities;h. For-profit corporations;i. Limited liability companies; andj. Cooperative or mutual

organizations.

2. BTOP Public Interest Finding

Section 6001(e)(1)(C) of the RecoveryAct authorizes the Assistant Secretary tofind by rule that it is in the publicinterest for any entity not otherwiseencompassed by section 6001(e)(1) to beeligible for a BTOP grant to the extentthat such finding will promote thepurposes of BTOP in a technologicallyneutral 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 bysection 6001(e)(1)(B)) that are willing topromote the goals of the Recovery Actand comply with the statutoryrequirements of BTOP to be eligible fora grant. By adopting this broadapproach, the Assistant Secretaryintends to invite a diverse group ofapplicants to participate in BTOP and toexpand broadband capabilities in atechnologically neutral manner.31

30 Id. 6001(d)(3), 123 Stat. at 513. 31 Id. 6001(e)(1)(C), 123 Stat. at 513.

C. Application Eligibility Factors

The following eligibility factorsestablish basic requirements that allapplicants must comply with in order to

be eligible for an award. Applicantsfailing to comply with theserequirements will not have theirapplications considered. This sectionlists eligibility factors (a) shared by BIPand all three BTOP project categories;(b) shared by BIP and BTOP BroadbandInfrastructure projects; (c) that applyonly to BIP projects; and (d) that applyonly to the three BTOP projectcategories.

1. Eligibility Factors Common to All BIPand BTOP Applicants

a. Fully Completed Application

Applicants must submit a completeapplication and provide all supportingdocumentation required for theapplication.

b. Timely CompletionA project is eligible only if the

application demonstrates that theproject can be substantially completedwithin two years of the date of issuanceof the grant, loan, or loan/grant awardand finished within three years of thedate of the award. For BIP, a project isconsidered substantially completewhen an awardee has received 67percent of its award funds. For BTOP,a project is considered substantiallycomplete when the awardee has met 67percent of the project milestones andreceived 67 percent of its award funds.

2. Additional Factors Applicable to BIPand BTOP Broadband InfrastructureApplicants

a. Broadband Service

All Broadband Infrastructureapplicants must propose to offer servicemeeting the definition of Broadband asdefined herein.

b. Technical Feasibility

Only projects that RUS and NTIAdetermine to be technically feasible will

be eligible for an award under thisNOFA. At minimum, applicants will be

required to submit a system design andproject timeline, certified by aprofessional engineer, for any projectrequesting funds over $1 million.

c. Nondiscrimination andInterconnection

All Broadband Infrastructure (bothBIP and BTOP) applicants, must committo the following Nondiscrimination andInterconnection Obligations: i. Adhereto the principles contained in the FCCsInternet Policy Statement (FCC 05151,adopted August 5, 2005); ii. not favor
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any lawful Internet applications andcontent over others; iii. display anynetwork management policies in aprominent location on the serviceproviders web page and provide noticeto customers of changes to these policies(awardees must describe any businesspractices or technical mechanisms theyemploy, other than standard best efforts

Internet delivery, to allocate capacity;differentiate among applications,providers, or sources; limit usage; andmanage illegal or harmful content); iv.connect to the public Internet directly orindirectly, such that the project is not anentirely private closed network; and v.offer interconnection, where technicallyfeasible without exceeding current orreasonably anticipated capacitylimitations, on reasonable rates andterms to be negotiated with requestingparties. This includes both the ability toconnect to the public Internet andphysical interconnection for the

exchange of traffic. Applicants mustdisclose their proposed interconnection,nondiscrimination, and networkmanagement practices with theapplication.

All these requirements shall besubject to the needs of law enforcementand reasonable network management.Thus, awardees may employ generallyaccepted technical measures to provideacceptable service levels to allcustomers, such as caching andapplication-neutral bandwidthallocation, as well as measures toaddress spam, denial of service attacks,illegal content, and other harmful

activities. In addition to providing therequired connection to the Internet,awardees may offer managed services,such as telemedicine, public safetycommunications, and distance learning,which use private network connectionsfor enhanced quality of service, ratherthan traversing the public Internet.

An awardee may satisfy therequirement for interconnection bynegotiating in good faith with all partiesmaking a bona fide request. Theawardee and requesting party maynegotiate terms such as businessarrangements, capacity limits, financial

terms, and technical conditions forinterconnection. If the awardee andrequesting party cannot reachagreement, they may voluntarily seek aninterpretation by the FCC of any FCCrules implicated in the dispute. If anagreement cannot be reached within 90days, the party requestinginterconnection may notify RUS orNTIA in writing of the failure to reachsatisfactory terms with the awardee. The90-day limit is to encourage the partiesto resolve differences throughnegotiation.

With respect to non-discrimination,those who believe an awardee has failedto meet the non-discriminationobligations should first seek action atthe FCC of any FCC rules implicated inthe dispute. If the FCC chooses to takeno action, those seeking recourse maynotify RUS or NTIA in writing about thealleged failure to adhere tocommitments of the award.

Entities that successfully reach anagreement to interconnect with a systemfunded under BIP may not use thatinterconnection agreement to provideservices that duplicate servicesprovided by projects funded byoutstanding telecommunications loansmade under the RE Act. Further,interconnection may not result in a BIP-funded facility being used for ineligiblepurposes under the Recovery Act.

These conditions will apply for thelife of the awardees facilities used inthe project and not to any existingnetwork arrangements. The conditionsapply to any contractors orsubcontractors of such awardeesemployed to deploy or operate thenetwork facilities for the infrastructureproject. Recipients that fail to accept orcomply with the terms listed above may

be considered in default or breach oftheir loan or grant agreements. RUS andNTIA may exercise all availableremedies to cure the default.

d. Last Mile Coverage Obligation

An applicant for a Last MileBroadband Infrastructure project mustidentify the census block(s) selected forthe project and provide documentationsupporting the applicantsdetermination that the proposed fundedservice area is either unserved orunderserved. There is a presumptionthat the applicant will provide serviceto the entire territory of each census

block included in the proposed fundedservice area, unless the applicant files awaiver and provides a reasonedexplanation as to why providingcoverage for an entire census block is

infeasible. Applicants may be permittedto serve less than an entire census blockunder certain conditions. For example,an applicant might request to berelieved of this requirement if thecensus block exceeds 100 square milesor more or is larger than the applicantsauthorized operating territory, e.g., itsplits a rural incumbent local exchangecarriers (ILECs) study area or exceedsthe boundaries of a wireless carrierslicensed territory.

3. Additional Factors for BIP

a. Eligible Service Area

A project is eligible only if theapplicant demonstrates that at least 75percent of the proposed funded servicearea qualifies as a rural area withoutsufficient access to broadband service tofacilitate rural economic development.32

For the purposes of this NOFA, RUS hasdetermined that without sufficient

broadband access shall mean withoutaccess to broadband, as defined herein.Furthermore, RUS has determined thatonly rural areas which are unserved orunderserved, as defined herein, shallqualify as areas without sufficientaccess to broadband service. Therefore,to qualify for BIP funding, projects mustserve at least 75 percent unserved orunderserved rural areas.

b. Overlapping Service Areas

RUS will not fund more than oneproject to serve any given geographicarea. If more than one applicationwould serve any overlapping geographicarea, the application with the highestscore will be funded; other applicationsfor the same area will be rejected intheir entirety unless RUS, in itsdiscretion, determines that the extent ofthe overlap is de minimis.

c. Fully Funded

A project is eligible only if, afterapproval of the grant, loan, or loan/grantcombination, all project costs can befully funded. To demonstrate this,applicants must include with the

application evidence of all funding,other than the RUS award, necessary tosupport the project, such as bankaccount statements or firm letters ofcommitment from equity participants orother lenders documenting the timelyavailability of funds.

d. Financial Feasibility andSustainability

Only projects that RUS determines tobe financially feasible and/orsustainable will be eligible for an awardunder this NOFA.

Loans: A project funded by a loan or

loan/grant combination is financiallyfeasible when the applicant is able togenerate sufficient revenues to cover itsexpenses, has sufficient cash flow toservice its debts and obligations as theycome due, and meet the minimumTimes Interest Earned Ratio (TIER)requirement of one by the end of theforecast period, as determined by RUS.

Grants: A project funded by a grant isfinancially sustainable when theapplicant is able to generate a minimum

32See id. div. A, tit. I, 123 Stat. at 118.
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current ratio of one by the end of theforecast period and can demonstrate apositive cash balance for each year ofthe 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 forBTOP.33

b. Cost Sharing/Matching

Awardees under BTOP will berequired to provide matching funds of atleast 20 percent toward the total eligibleproject cost. Applicants must documenttheir capacity to provide matchingfunds. NTIA will provide up to 80percent of total eligible project costs,unless the applicant petitions theAssistant Secretary for a waiver of thematching requirement and that waiver isgranted by the Assistant Secretary basedon the applicants demonstration offinancial need.34 In requesting such awaiver, an applicant should fullyexplain and document its inability toprovide the required 20 percent share ofthe cost of its proposed project. Anapplicant should submit completefinancial documentation supporting itsneed for a waiver of the matchingrequirement. These documents shouldinclude the applicants assets, liabilities,operating expenses and revenues fromany existing operations, and any otherdocuments that will demonstratefinancial need and sustainability,including such items as a denial of

funding from a public or private lendinginstitution. The Assistant Secretary willevaluate the information provided insupport of the petition and may increasethe federal share if financial need isdemonstrated.

Generally, federal funds may not beused as matching funds except asprovided by federal statute.35In-kindcontributions, including third party in-kind contributions, are non-cashdonations to a project that may counttoward satisfying the non-federalmatching requirement of a projects total

budget. In-kind contributions must be

allowable project expenses. Suchcontributions may be accepted as part ofan applicants matching when suchcontributions meet certain criteria.36

33See id. 6001(b), 123 Stat. at 51213.34See id. 6001(f), 123 Stat. at 514.35See Uniform Administrative Requirements for

Grants and Agreements with Institutions of HigherEducation, Hospitals, Other Non-profit, andCommercial Organizations, 15 CFR 14.23(a)(5); seealso Uniform Administrative Requirements forGrants and Cooperative Agreements to State andLocal Governments, 24 CFR 24.24(b)(1).

36See 15 CFR 14.23(a), 24.24(a).

Applications that propose to providematching funds of greater than 20percent and that are all cash will begiven additional favorable considerationin step one of the application reviewprocess.

c. Demonstration That Project Could NotBe Implemented but for Federal Grant

AssistanceGrant applicants must provide

documentation that the project wouldnot have been implemented during thegrant period without federal grantassistance. This documentation mayconsist of, but is not limited to, suchitems as a denial of funding from apublic or private lending institution,denial of a funding request from RUS fora loan or loan/grant combination, acurrent fiscal year budget that shows thelack of available revenue options forfunding the project, or a business casethat demonstrates that the project wouldnot be economically feasible withoutgrant financing.

d. Reasonableness of Project Budget

A project will only be eligible if itdemonstrates that its budget isappropriate to the proposed technicaland programmatic solutions, its costsare reasonable and eligible consistentwith the principles outlined in sectionV.D below, and that the allocation offunds will be sufficient to complete thetasks outlined in the project plan.

D. Eligible Cost Purposes

1. General

Award funds must be used only topay for eligible costs. Eligible costs areconsistent with the cost principlesidentified in the applicable OMBcirculars 37 and in the grant or the loan/

37For example there is a set of federal principlesfor determining eligible or allowable costs.Allowability of costs will be determined inaccordance with the cost principles applicable tothe entity incurring the costs. Thus, allowability ofcosts incurred by state, local or federally-recognizedIndian tribal governments is determined inaccordance with the provisions of OMB CircularA87, Cost Principles for State, Local and IndianTribal Governments. The allowability of costsincurred by non-profit organizations is determined

in accordance with the provisions of OMB CircularA122, Cost Principles for Non-ProfitOrganizations. The allowability of costs incurredby institutions of higher education is determined inaccordance with the provisions of OMB CircularA21, Cost Principles for EducationalInstitutions. The allowability of costs incurred byhospitals is determined in accordance with theprovisions of Appendix E of 45 CFR pt. 74,Principles for Determining Costs Applicable toResearch and Development under Grants andContracts with Hospitals. The allowability of costsincurred by commercial organizations and thosenon-profit organizations listed in Attachment C toCircularA122 is determined in accordance with theprovisions of the Federal Acquisition Regulation

grant programs authorizing legislation.In addition, costs must be reasonable,allocable, necessary to the project, andcomply with the funding statuterequirements. Any application thatproposes to use any portion of theaward funds for any ineligible cost will

be rejected.

2. Eligible and Ineligible Costs for BIPand BTOP Infrastructure Projects

a. Eligible Infrastructure AwardExpenses

Award funds may be used to pay forthe following expenses:

i. To fund the construction orimprovement of all facilities required toprovide broadband service, and for BIPonly, including facilities required forproviding other services over the samefacilities;

ii. To fund the cost of leasing facilitiesrequired to provide broadband service ifsuch lease qualifies as a capital lease

under GAAP. Award funds may be usedto fund the cost of the capital lease forno more than the first five years after thedate of the first advance of award funds;

iii. To fund reasonable pre-application expenses in an amount notto exceed five percent of the award. Pre-application expenses may bereimbursed if they are incurred after thepublication date of this NOFA and priorto the date on which the application issubmitted to RUS or NTIA; and

iv. For BTOP only undertaking suchother projects and activities as theAssistant Secretary finds to be

consistent with the purposes for whichthe program is established.

b. Ineligible Award Expenses

Award funds may not be used for anyof the following purposes:

i. To fund operating expenses of theproject, including fixed and recurringcosts of a project;

ii. To fund costs incurred prior to thedate on which the application issubmitted, with the exception of eligiblepre-application expenses;

iii. To fund an acquisition, includingthe acquisition of the stock of anaffiliate, or the purchase or acquisition

of any facilities or equipment of anaffiliate;

iv. To fund the purchase or lease ofany vehicle other than those usedprimarily in construction or systemimprovements;

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

vi. To fund merger or consolidation ofentities; and

(FAR) at 48 CFR pt. 31. See 15 CFR 14.27, 24.22(governing the Department of Commercesimplementation of OMB requirements).
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vii. To fund costs incurred inacquiring spectrum as part of an FCCauction or in a secondary marketacquisition.

3. Eligible and Ineligible Costs forPublic Computer Centers andSustainable Broadband Adoption

a. General

Grantees for BTOP funds under thesetwo project categories are required toshow how such funding serves thestated purposes of: i. Providing

broadband education, awareness,training, access, equipment, and supportto community anchor institutions (e.g.,schools, libraries, medical andhealthcare providers, communitycolleges and other institutions of highereducation, and other communitysupport organizations), or organizationsand agencies serving vulnerablepopulations (e.g., low-income,unemployed, aged), or job-creatingstrategic facilities located in state- orfederally-designated economicdevelopment areas; ii. improving accessto, and use of, broadband service bypublic safety agencies; and iii.stimulating the demand for broadband,economic growth, and job creation.

b. Eligible Costs for Public ComputerCenters

Grantees may use BTOP fundingunder this project category to expandcomputer center capacity by:

i. Acquiring broadband-relatedequipment, instrumentation, networking

capability, hardware and software, anddigital network technology for

broadband services;ii. Developing and providing training,

education, support and awarenessprograms or web-based resources;

iii. Facilitating access to broadbandservices, including, but not limited to,making public computer centersaccessible to the disabled; and

iv. Undertaking such other projectsand activities as the Assistant Secretaryfinds to be consistent with the purposesfor which the program is established.

c. Eligible Costs for SustainableBroadband Adoption

Grantees may use BTOP fundingunder this project category to encouragesustainable adoption of broadbandservices by:

i. Acquiring broadband-relatedequipment, hardware and software, anddigital network technology for

broadband services;ii. Developing and providing training,

education, support and awarenessprograms or web-based content;

iii. Conducting broadband-relatedpublic education, outreach, support andawareness campaigns;

iv. Implementing innovative programsto facilitate greater access to broadbandservice, devices, and equipment; and

v. Undertaking such other projectsand activities as the Assistant Secretaryfinds to be consistent with the purposes

for which the program is established.d. Ineligible Costs for Public ComputerCenters and Sustainable BroadbandAdoption

BTOP grant funds may not be used tofund purchases that are not usedpredominantly for the provision of

broadband education, awareness,training, access, equipment and support.

E. Use of Program Income

Grantees are required to account forany program income directly generated

by projects financed in whole or in partwith federal funds. Given the Recovery

Acts objectives to spur job creation andstimulate long-term economic growthand opportunity, projects funded by BIPand BTOP grants are expected toconvincingly demonstrate the ability to

be sustained beyond the funding period.While grant funds are intended to coverthe capital costs of a project as part ofthe Recovery Acts effort to stimulatethe economy, grant recipients for allgrant programs are expected to presentprojects that will sustain long-termgrowth and viability.

For purposes of BIP and BTOP, anyprogram income generated by a

proposed project during the grant periodshall be retained by the grant recipientand shall be added to the fundscommitted to the project by RUS orNTIA and the recipient. The grantrecipient should use program income tofurther eligible project objectives,including reinvestment in projectfacilities. Program income means grossincome earned by the recipient that iseither directly generated by a supportedactivity, or earned as a result of theaward during the funding period. Grantrecipients shall have no obligation tothe federal government regardingprogram income earned after the end ofthe project period. However, the federalgovernment retains an interest inproperty in the event that it is sold,consistent with the guidance outlined insection IX of this NOFA.38

VI. Application and SubmissionInformation

A. Request for Application Package

Complete application packages,including required federal forms and

382 CFR 215.24; 15 CFR 14.24, 24.25.

instructions, will be available at http://www.broadbandusa.gov. Additionalinformation for BIP and BTOP can befound in the Application Guidelines athttp://www.broadbandusa.gov. ThisWeb site will be updated regularly.

B. Registration

1. DUNS Number

All applicants must supply a Dun andBradstreet Data Universal NumberingSystem (DUNS) number. Applicants canreceive a DUNS number at no cost bycalling the dedicated toll-free DUNSnumber request line at 18667055711or via the Internet at http://www.dunandbradstreet.com.

2. Central Contractor Registration (CCR)

All applicants must provide a CCR(CAGE) number evidencing currentregistration in the Central ContractorRegistration (CCR) database. If theapplicant does not have a current CCR

(CAGE) number, the applicant mustregister in the CCR system available athttp://www.ccr.gov/StartRegistration.aspx.

C. Choosing the Proper Agency andCategory for an Application

1. Broadband Infrastructure

a. Choosing BIP or BTOP BroadbandInfrastructure

i. Applications for Rural Areas. Allapplications to fund broadbandinfrastructure in proposed fundedservice areas which are at least 75

percent rural are required to besubmitted to RUS for considerationunder BIP. If such applicants alsochoose to be considered for BTOPfunding, they must complete theadditional elements required of BTOPinfrastructure applicants. RUS willconsider all applications for projects inproposed funded service areas whichare at least 75 percent rural inaccordance with the BIP proceduresoutlined in this NOFA. If the applicantalso chooses to be considered underBTOP, NTIA will review theseapplications using its own objective

evaluation criteria and in accordancewith BTOP procedures outlined in thisNOFA. NTIA may make awards withrespect to such applications NTIAdetermines to be meritorious after RUShas reviewed the application anddetermined not to fund it. RUS andNTIA have adopted these applicationprocedures to reflect the fact thatCongress, in the Recovery Act, intendedthat RUS focus its activities on ruralareas and mandated that NTIA fundingcould not be applied in the same areafunded by RUS under the Recovery Act.
http:///reader/full/www.broadbandusa.govhttp:///reader/full/http://www.broadbandusa.govhttp:///reader/full/www.dunandbradstreet.comhttp:///reader/full/http://www.ccr.govhttp:///reader/full/www.broadbandusa.govhttp:///reader/full/http://www.broadbandusa.govhttp:///reader/full/www.dunandbradstreet.comhttp:///reader/full/http://www.ccr.gov


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ii. Applications for All Other Areas.All applications to fund broadbandinfrastructure projects in proposedfunded service areas that are less than75 percent rural must be submitted toNTIA for consideration under BTOP.Submissions to BIP of such applicationswill be rejected.

b. BIP Broadband InfrastructureCategories

i. Last Mile Remote Area

Applications for Last Mile RemoteArea projects must predominantlyprovide broadband directly to thepremise or to end users withincompletely remote areas, as definedherein. The BIP Program will considerapplications for grant funds up to 100percent. For grants receiving greaterthan 80 percent of eligible costs, theAdministrator must determine that theawardee has a specific financial needthat justifies funding greater than 80

percent.

ii. Last Mile Non-Remote Projects

Applications for Last Mile Non-Remote Area projects mustpredominantly provide broadbanddirectly to the premise or to end usersthat are not exclusively within remoteareas, as defined herein. Last Mile Non-Remote Area projects may encompass

both remote and non-remote areas, andwill be awarded scoring points forremote areas within the application.Only those applications for loans orloan/grant combinations whose total

proposed funded service area contains75 percent or more unserved orunderserved rural areas, as definedherein, will be considered for BIPfunding.

iii. Broadband Infrastructure MiddleMile Projects

Applications for Middle Mile projectsmust connect at least two pointswithout predominantly providing

broadband service to the premise or endusers, and must be capable of bringing

broadband service to eligible serviceareas. The BIP program will consideronly those applications for loans and

loan/grant combinations whose totalproposed funded service area benefits atleast 75 percent or more unserved orunderserved rural areas, as definedherein.

c. BTOP Broadband InfrastructureCategories

i. Last Mile

For the purposes of BTOP grant funds,applications for Last Mile projects must

be for unserved or underserved areasand have the predominant purpose to

provide broadband service to end usersor end-user devices (including homes,

businesses, schools, libraries, medicaland health care providers, communitysupport organizations, public safetyentities, vulnerable populations andother institutions and individuals).Highly responsive Last Mile projectsshould be technically feasible,

sustainable, and scalable, and addressBTOPs priority needs, includingoffering substantial economic,educational, health care, and publicsafety benefits relative to the costs ofproviding service.

iii. Middle Mile

For the purposes of BTOP grant funds,applications for Middle Mile projectsmust be for unserved or underservedareas and have a predominant purposeother than providing broadband serviceto end users or to end-user devices andmay include interoffice transport,

backhaul, Internet connectivity, orspecial access. Highly responsiveMiddle Mile projects should betechnically feasible, sustainable, andscalable and offer substantial benefits tounserved and underserved areas relativeto the costs of providing service.

2. BTOPPublic Computer Centers

For the purposes of BTOP grant funds,applicants requesting a Public ComputerCenter grant must have a project thatprovides broadband access to thegeneral public or a specific vulnerablepopulation, such as low-income,unemployed, aged, children, minorities

and people with disabilities. Projectsmust create or expand a publiccomputer center meeting a specificpublic need for broadband service,including but not limited to education,employment, economic development,and enhanced service for health-caredelivery, children, and vulnerablepopulations. As described below, NTIAwill consider information related to thedemographics, size and scope of thepopulations to be served, as well as thecapacity of the proposed centers.

3. BTOPSustainable BroadbandAdoption

Applications for SustainableBroadband Adoption projects shoulddemonstrate a sustainable increase indemand for and subscribership to

broadband services. Projects shouldmeet a specific public need for

broadband service, including, but notlimited to, education, employment,economic development, and enhancedservice for health-care delivery,children, and vulnerable populations.Projects should describe the barriers toadoption in a given area, especially

among vulnerable populations, andpropose an innovative and persuasivesolution to encourage adoption.Applicants might show how variationson one or more proven demandstimulation strategysuch asawareness-building, development ofrelevant content, and demandaggregationwould promote

sustainable adoption.

D. Contents of the Application

1. BIP and BTOP BroadbandInfrastructure Project Applications

a. Requirements for Step One of theApplication Process

A complete application will includethe following:

i. The identity of the applicant andgeneral applicant and projectinformation including:

(1) A description of the project thatwill be made public consistent with therequirements of the Recovery Act;

(2) The Congressional Districtsaffected by the project;

(3) The estimated dollar amount of thefunding request;

ii. Verification that the applicationmeets certain eligibility factors,including submission of a completeapplication with all supplementaldocumentation, commitment tosubstantial completion of the projectwithin two years and project completionwithin three years of the award date,demonstration that the project istechnically feasible, that the applicantwill provide broadband service meeting

the definition in this NOFA, that theapplicant agrees to comply with thenondiscrimination and interconnectionobligations in this NOFA, and that theapplicant agrees to comply with the lastmile coverage obligations in this NOFA;for BIP only, that at least 75% of theproposed funded service area is a ruralarea, that the project will be fullyfunded, and that the project isfinancially feasible; and for BTOP only,demonstration that the project advancesat least one of BTOPs five statutorypurposes, commitment to or a waiver forthe cost matching requirement,

demonstration that a project could notbe completed in the grant period but forfederal funding, and that the budget isreasonable and all costs are eligible;

iii. An executive summary of theproject, including but not limited to theopportunity the proposed system seeksto address; a description of the proposedfunded service area; number ofhouseholds and businesses passed;number of community anchorinstitutions, public safety entities andcritical community organizations to bepassed and/or involved in the project;


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proposed service offerings; how non-discrimination and interconnectionrequirements will be met; the type of

broadband system to be deployed;qualifications of the applicant; overallinfrastructure cost of the broadbandsystem; subscriber projections; and thenumber of jobs the project is expectedto create or save;

iv. A description of the proposedfunded service area, including: (1) Amap; (2) data describing the geographyand demographics of the proposedfunded service area, includinginformation as to whether the proposedfunded service area is unserved orunderserved; (3) names of the censusdesignated communities andidentification of areas not within acensus designated community withinthe proposed funded service area; (4)information as to whether thecommunities and areas identified inclause (3) are rural or non-rural, remote

and unserved, underserved or served;(5) the methodology for making theabove classifications; (6) whether theapplicant is seeking a waiver fromproviding less than 100% coverage ofany census block; and; (7) for middlemile projects, identification of the lastmile areas to be served;

v. A description of the proposedservice offerings, and the associatedpricing plan, that the applicant proposesto offer, as well as the advertised pricesof service offerings by competitors inthe same area; a description of theapplicants nondiscrimination,interconnection, and network

management plans; an explanation ofwhy the proposed service offerings areaffordable; and for BTOP only, anestimate of the cost of the project perhousehold;

vi. The technology type; a descriptionof the system design used to deliver the

broadband service; a network diagram,which must be certified by aprofessional engineer if the fundingrequest exceeds $1,000,000; whether theapplicant is seeking a waiver of the BuyAmerica provision; and whether theproject allows more than one providerto serve end users;

vii. A timeline including keymilestones for implementation of theproject, including a constructionschedule, certified by a professionalengineer if the funding request exceeds$1,000,000, which identifies potentialchallenges and establishes the viabilityof the project timeline and associatedmilestones for build-out to the census

blocks, households, businesses,community anchor institutions, andpublic safety entities identified in theproposal; a list of all required licensesand regulatory approvals needed for the

proposed project; and how much theapplicant will rely on contractors orvendors to deploy the network facilities;

viii. Resumes of key managementpersonnel, a description of theorganizations readiness to manage a

broadband services network, and anorganizational chart showing any parentorganizations and/or subsidiaries and

affiliates;ix. A legal opinion (as set forth in the

application) that: (1) Addresses theapplicants ability to enter into theaward documents; (2) describes allpending litigation matters; and (3) forloan and loan/grant combinations,addresses the applicants ability topledge security as required by the awarddocuments;

x. Partnerships with public, non-profit, and private sector groups andcollaboration with other state andfederal development programsincluding other Recovery Act programs;

xi. An itemized budget of theinfrastructure costs of the proposedproject, including if applicable, the ratioof loans to grants, and any other sourceof outside funding, especially any otherRecovery Act funds under other federalprograms, and an explanation of thereasonableness of the unit price andtotal number of units required for theproject;

xii. Pro Forma financial analysisrelated to the sustainability of theproject, including subscriber estimatesand proposed service offerings inaddition to broadband Internet access;annual financial projections including

balance sheets, income statements, andcash flow statements and supportingassumptions for a five-year forecastperiod as applicable; and a list ofcommitted sources of capital funding;

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

xiv. Certifications required in theapplication;

xv. For BIP applicants only:(1) A self-scoring sheet, analyzing the

objective scoring criteria set forth in thisNOFA;

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

(3) Evidence that the applicant is asocially and economicallydisadvantaged small business concern(SDB) as defined under section 8(a) ofthe SBA.

xvi. For BTOP applicants only:(1) A description of how the applicant

will advance the objectives of theRecovery Act, as well as the specificobjectives of BTOP, (a) to provide accessto broadband service to consumers

residing in unserved areas of thecountry; (b) to provide improved accessto broadband service to consumersresiding in underserved areas of thecountry; (c) to provide broadbandaccess, education, awareness, training,equipment, and support to communityanchor institutions (e.g., schools,libraries, medical facilities), or

organizations and agencies servingvulnerable populations (e.g., low-income, unemployed, aged), or job-creating strategic facilities located instate or federally designated economicdevelopment areas; (d) to improveaccess to, and use of, broadband service

by public safety agencies; and (e) tostimulate the demand for broadband,economic growth, and job creation;

(2) A demonstration of need for grantfunding, including documentationdemonstrating that a project w

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