[Federal Register Volume 72, Number 68 (Tuesday, April 10, 2007)]
[Notices]
[Pages 17820-17828]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-6544]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Rural Utilities Service


Announcement of Funding Availability and Solicitation of 
Applications

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of Funding Availability and Solicitation of 
Applications.

-----------------------------------------------------------------------

SUMMARY: The United States Department of Agriculture (USDA) Rural 
Development administers rural utilities programs through the Rural 
Utilities Service. USDA Rural Development announces its Distance 
Learning and Telemedicine (DLT) grant, combination loan-grant and loan 
program application windows for Fiscal Year (FY) 2007, and a new 
initiative within the combination loan-grant program for the conversion 
of medical recordkeeping systems to emerging electronic formats.
    In addition to announcing the application windows, the Agency 
announces the available funding, and the minimum and maximum amounts 
for DLT grants, combination loan-grants and loans applicable for the 
fiscal year.

DATES: You may submit completed applications for grants on paper or 
electronically according to the following deadlines:
    <bullet> Paper copies must be postmarked and mailed, shipped, or 
sent overnight no later than June 11, 2007 to be eligible for FY 2007 
grant funding. Late or incomplete applications will not be eligible for 
FY 2007 grant funding.
    <bullet> Electronic copies must be received by June 11, 2007 to be 
eligible for FY 2007 grant funding. Late or incomplete applications 
will not be eligible for FY 2007 grant funding.

ADDRESSES: You may obtain copies of the FY 2007 application guides and 
materials for the DLT grant program at the DLT Web site: http://www.usda.gov/rus/telecom/dlt/dlt.htm. For your reference, you may also 
request last year's FY 2006 application guide and materials by 
contacting the DLT Program at (202) 720-0413.
    Submit completed paper applications for grants to the United States 
Department of Agriculture, Rural Development, Telecommunications 
Program, 1400 Independence Ave., SW., Room 2845, STOP 1550, Washington, 
DC 20250-1550. Applications should be

[[Page 17821]]

marked ``Attention: Director, Advanced Services Division.''
    Submit electronic grant applications at http://www.grants.gov 
(Grants.gov), following the instructions you find on that Web site.

FOR FURTHER INFORMATION CONTACT: Director, Advanced Services Division, 
Telecommunications Program, USDA Rural Development, United States 
Department of Agriculture, telephone: (202) 720-0413, fax: (202) 720-
1051.

SUPPLEMENTARY INFORMATION: 

Overview

    Federal Agency: Rural Utilities Service (RUS).
    Funding Opportunity Title: Distance Learning and Telemedicine 
Grants, Combination Loan-grants, and Loans.
    Announcement Type: Initial announcement.
    Catalog of Federal Domestic Assistance (CFDA) Number: 10.855.
    Dates: You may submit completed applications for grants on paper or 
electronically according to the following deadlines:
    <bullet> Paper copies must be postmarked and mailed, shipped, or 
sent overnight no later than June 11, 2007 to be eligible for FY 2007 
grant funding. Late or incomplete applications are not eligible for FY 
2007 grant funding.
    <bullet> Electronic copies must be received by June 11, 2007 to be 
eligible for FY 2007 grant funding. Late or incomplete applications are 
not eligible for FY 2007 grant funding.

Items in Supplementary Information

    I. Funding Opportunity: Brief introduction to the DLT program.
    II. Minimum and Maximum Application Amounts: Projected Available 
Funding.
    III. Eligibility Information: Who is eligible, what kinds of 
projects are eligible, what criteria determine basic eligibility.
    IV. Application and Submission Information: Where to get 
application materials, what constitutes a completed application, how 
and where to submit applications, deadlines, items that are 
eligible.
    V. Application Review Information: Considerations and 
preferences, scoring criteria, review standards, selection 
information.
    VI. Award Administration Information: Award notice information, 
award recipient reporting requirements.
    VII. Agency Contacts: Web, phone, fax, e-mail, contact name.

I. Funding Opportunity

    Distance learning and telemedicine loans and grants are 
specifically designed to provide access to education, training and 
health care resources for people in rural America. The Distance 
Learning and Telemedicine (DLT) Program provides financial assistance 
to encourage and improve telemedicine services and distance learning 
services in rural areas through the use of telecommunications, computer 
networks, and related advanced technologies by students, teachers, 
medical professionals, and rural residents.
    Grants, which are awarded through a competitive process, may be 
used to fund telecommunications-enabled information, audio and video 
equipment and related advanced technologies which extend educational 
and medical applications into rural locations. Grants are made for 
projects where the benefit is primarily delivered to end users that are 
not at the same location as the source of the education or health care 
service.
    As in years past, the FY 2007 grant application guide has been 
changed to reflect recent changes in technology and application trends. 
Details of changes from the FY 2006 application guide are highlighted 
throughout this Notice and described in full in the FY 2007 application 
guide. All applicants must carefully review and exactly follow the FY 
2007 application guide and sample materials when compiling a DLT grant 
application.
    Applications for loans and combination loan-grants are not 
competitively scored. In addition to the items listed for grants, loans 
and combination loan-grants may be used to fund projects where the 
benefit is primarily at the same location as the source of the service. 
Loans and combination loan-grants may also fund construction of 
necessary transmission facilities on a technology-neutral basis. 
Examples of such facilities include satellite uplinks, microwave towers 
and associated structures, T-1 lines, DS-3 lines, and other similar 
facilities. Loan funds may also be used to obtain mobile units and for 
some building construction. Please see 7 CFR part 1703, subparts D, E, 
F and G for specifics.

II. Maximum and Minimum Amount of Applications; Projected Available 
Funding

    Under 7 CFR 1703.124, the Administrator has determined the maximum 
amount of an application for a grant in FY 2007 is $500,000 and the 
minimum amount of a grant is $50,000. The anticipated amount available 
to fund grant awards in FY 2007 is $15 million.
    The USDA Rural Development will make awards and execute documents 
appropriate to the project prior to any advance of funds to successful 
applicants.
    Combination loan-grants will be offered at a loan-to-grant ratio of 
9:1, i.e. $9 in loan to $1 in grant. Under 7 CFR 1703.133, the maximum 
amount of an application for a combination loan-grant in FY 2007 is $20 
million and the minimum amount of a combination loan-grant is $50,000. 
For this program, the Administrator has determined that $45,000,000 in 
loans, paired with $5,000,000 in grants, for a total of $50,000,000, 
will be available.
    For projects that are for electronic medical records systems, 
combination loan-grants will be offered at a special rate. The loan-to-
grant ratio for the special ratio combination loan-grant program will 
be 4:1, i.e. $4 in loan to $1 in grant. Under 7 CFR 1703.133, the 
Administrator has determined that maximum amount of a special ratio 
combination loan-grant application is $1 million, and the minimum 
amount is $50,000. For this special ratio program, $20,000,000 in loans 
will be paired with $5,000,000 in grants, for a total available of 
$25,000,000.
    The Administrator has determined that $62,900,000 will be available 
for DLT loans. Under 7 CFR 1703.143, the maximum amount of an 
application for a loan in FY 2007 is $20 million and the minimum amount 
of a loan is $50,000.
    DLT grants, combination loan-grants and loans cannot be renewed. 
Award documents specify the term of each award. Applications to extend 
existing projects are welcomed (grant applications must be submitted 
during the application window) and will be evaluated as new 
applications.

III. Eligibility Information

A. Who is eligible for grants, combination loan-grants, and loans? (See 
7 CFR 1703.103.)

    1. Only entities legally organized as one of the following are 
eligible for DLT financial assistance:
    a. An incorporated organization or partnership,
    b. An Indian tribe or tribal organization, as defined in 25 U.S.C. 
450b (b) and (c),
    c. A state or local unit of government,
    d. A consortium, as defined in 7 CFR 1703.102, or
    e. Other legal entity, including a private corporation organized on 
a for-profit or not-for-profit basis.
    2. Individuals are not eligible for DLT program financial 
assistance directly.
    3. Electric and telecommunications borrowers under the Rural 
Electrification Act of 1936 (7 U.S.C. 950aaa et seq.) are not eligible 
for grants

[[Page 17822]]

or combination loan-grants, but are eligible for loans.

B. What are the basic eligibility requirements for a project?

    1. Required matching contributions for grants: See 7 CFR 
1703.125(g) and the FY 2007 application guide for information on 
required matching contributions.
    a. Grant applicants must demonstrate matching contributions, in 
cash or in kind (new, non-depreciated items), of at least fifteen (15) 
percent of the total amount of financial assistance requested. Matching 
contributions must be used for eligible purposes of DLT grant 
assistance (see 7 CFR 1703.121, paragraphs IV.G.1.b of this Notice and 
the FY 2007 application guide).
    b. Greater amounts of eligible matching contributions may increase 
an applicant's score (see 7 CFR 1703.126(b)(4), paragraph V.B.2.d of 
this notice, and the FY 2007 application guide).
    c. Applications that do not provide evidence of the required 
fifteen percent match which helps determine eligibility will be 
declared ineligible and returned. See paragraphs IV.G.1.c and V.B.2.d 
of this Notice, and the FY 2007 application guide for specific 
information on documentation of matching contributions.
    d. Applications that do not document all matching contributions are 
subject to budgetary adjustment by USDA Rural Development, which may 
culminate in rejection of an application as ineligible due to 
insufficient match.
    3. The DLT loan, combination loan-grant and grant programs are 
designed to flow the benefits of distance learning and telemedicine to 
residents of rural America (see 7 CFR 1703.103(a)(2)). Therefore, in 
order to be eligible, applicants must:
    a. Operate a rural community facility; or
    b. Deliver distance learning or telemedicine services to entities 
that operate a rural community facility or to residents of rural areas, 
at rates calculated to ensure that the benefit of the financial 
assistance is passed through to such entities or to residents of rural 
areas.
    4. Rurality.
    a. All projects proposed for DLT grant assistance must meet a 
minimum rurality threshold, to ensure that benefits from the projects 
flow to rural residents. The minimum eligibility score is 20 points. 
Please see Section IV of this notice, 7 CFR 1703.126(a)(2), and the FY 
2007 application guide for an explanation of the rurality scoring and 
eligibility criterion.
    b. Each application must apply the following criteria to each of 
its end-user sites, and hubs that are also proposed as end-user sites, 
in order to determine a rurality score. The rurality score is the 
average of all end-user sites' rurality scores.

------------------------------------------------------------------------
                                                                   DLT
          Criterion               Character        Population     points
------------------------------------------------------------------------
Exceptionally Rural Area.....  Area not within  <= 5000........       45
                                an Urbanized
                                Area or Urban
                                Cluster.
Rural Area...................  Area in an       > 5000 and <=         30
                                Urban Cluster.   10,000.
Mid-Rural Area...............  Area in an       >10,000 and <=        15
                                Urban Cluster.   20,000.
Urban Area...................  Area in an       > 20,000.......        0
                                Urbanized Area
                                or Urban
                                Cluster.
------------------------------------------------------------------------

    c. The rurality score is one of the competitive scoring criteria 
applied to grant applications.
    4. Projects located in areas covered by the Coastal Barrier 
Resources Act (16 U.S.C. 3501 et seq.) are not eligible for financial 
assistance from the DLT Program. Please see 7 CFR 1703.123(a)(11), 7 
CFR 1703.132(a)(5), and 7 CFR 1703.142(b)(3).
    C. See Section IV of this Notice and the FY 2007 application guide 
for a discussion of the items that make up a complete application. For 
requirements of completed applications you may also refer to 7 CFR 
1703.125 for grant applications, 7 CFR 1703.134 for combination loan-
grant applications, and 7 CFR 1703.144 for loan applications. The FY 
2007 application guide provides specific, detailed instructions for 
each item that constitutes a complete application. The Agency strongly 
emphasizes the importance of including every required item (as 
explained in the FY 2007 application guide) and strongly encourages 
applicants to follow the instructions exactly, using the examples and 
illustrations in the FY 2007 application guide. Applications which do 
not include all items that determine project eligibility and applicant 
eligibility by the application deadline will be returned as ineligible. 
Applications that do not include all items necessary for scoring will 
be scored as is. Please see the FY 2007 application guide for a full 
discussion of each required item and for samples and illustrations.

IV. Application and Submission Information

A. Where To Get Application Information

    FY 2007 application guides, copies of necessary forms and samples, 
and the DLT Program regulation are available from these sources:
    1. The Internet: http://www.usda.gov/rus/telecom/dlt/dlt.htm.
    2. The DLT Program for paper copies of these materials: (202) 720-
0413.

B. What's new for FY 2007?

    1. For DLT Grants, USDA Rural Development clarifies end-user 
identification for portable and residential end-user projects such as 
ambulance and home health care applications. A simplified method of 
calculating rurality and National School Lunch Program (NSLP) scores 
for these applications will eliminate the need for identification and 
scoring of every community an applicant serves. Past applications from 
these applicants have contained hundreds of pages of community 
identification and scoring supporting documents. This was burdensome 
for applicants and increased the possibility of end-user site 
inconsistency, a cause of ineligibility for some in the FY 2006 DLT 
grant program.
    2. For DLT Combination loan grants, USDA Rural Development adds a 
special ratio combination loan-to-grant funding program to address the 
growing lag in implementation of electronic medical records systems in 
rural hospitals and healthcare networks. The new ratio is available 
only to projects whose entire cost is directly attributable to the 
conversion to or extension of an electronic medical records system.
    3. The standard rate DLT Combination loan-grant program adopts a 
new funding ratio of $9 loan for each $1 grant, to simplify post-grant 
administration.

[[Page 17823]]

    4. For DLT rurality scoring, a new measurement tool is used to 
improve accuracy and consistency of scoring. Rurality scoring is now 
referenced to the U.S. Census current Urbanized Area and Urban Cluster 
designations. This will prevent scoring anomalies caused by 
jurisdictional peculiarities of different states.

C. What constitutes a completed application?

    1. For DLT Grants:
    a. Detailed information on each item in the table in paragraph 
IV.C.1.f. of this Notice can be found in the sections of the DLT 
Program regulation listed in the table, and the DLT grant application 
guide. Applicants are strongly encouraged to read and apply both the 
regulation and the application guide.
    (1) When the table refers to a narrative, it means a written 
statement, description or other written material prepared by the 
applicant, for which no form exists. USDA Rural Development recognizes 
that each project is unique and requests narratives to allow applicants 
to explain their request for financial assistance.
    (2) When documentation is requested, it means letters, 
certifications, legal documents or other third-party documentation that 
provide evidence that the applicant meets the listed requirement. For 
example, to confirm Enterprise Zone (EZ) designations, applicants use 
various types of documents, such as letters from appropriate government 
bodies and copies of appropriate USDA Web pages. Leveraging 
documentation sometimes includes letters of commitment from other 
funding sources. In-kind matches must be items essential to the project 
and documentation from the donor must demonstrate the relationship of 
each item to the project's function. Evidence of legal existence is 
sometimes proven by submitting articles of incorporation. None of the 
foregoing examples is intended to limit the types of documentation that 
may be submitted to fulfill a requirement. DLT Program regulations and 
the application guide provide specific guidance on each of the items in 
the table.
    b. The DLT application guide and ancillary materials provide all 
necessary forms and sample worksheets.
    c. While the table in paragraph IV.C.1.f of this Notice includes 
all items of a completed application, USDA Rural Development may ask 
for additional or clarifying information for applications which, as 
submitted by the deadline, appear to clearly demonstrate that they meet 
eligibility requirements.
    d. Submit the required application items in the order provided in 
the FY 2007 application guide. The FY 2007 application guide specifies 
the format and order of all required items. Applications that are not 
assembled and tabbed in the order specified prevent timely 
determination of eligibility. Given the high volume of program 
interest, incorrectly assembled applications will be returned as 
ineligible.
    e. DUNS Number. As required by the OMB, all applicants for grants 
must supply a Dun and Bradstreet Data Universal Numbering System (DUNS) 
number when applying. The Standard Form 424 (SF-424) contains a field 
for you to use when supplying your DUNS number. Obtaining a DUNS number 
costs nothing and requires a short telephone call to Dun and 
Bradstreet. Please see http://www.grants.gov/RequestaDUNS for more 
information on how to obtain a DUNS number or how to verify your 
organization's number.
    f. Compliance with other Federal statutes. The applicant must 
provide evidence of compliance with other federal statutes and 
regulations, including, but not limited to the following:
    (i) 7 CFR part 15, subpart A--Nondiscrimination in Federally 
Assisted Programs of the Department of Agriculture--Effectuation of 
Title VI of the Civil Rights Act of 1964.
    (ii) 7 CFR part 3015--Uniform Federal Assistance Regulations.
    (iii) 7 CFR part 3017--Governmentwide Debarment and Suspension 
(Non-procurement).
    (iv) 7 CFR part 3018--New Restrictions on Lobbying.
    (v) 7 CFR part 3021--Governmentwide Requirements for Drug-Free 
Workplace
    g. Table of Required Elements of a Completed Grant Application.

------------------------------------------------------------------------
                                             REQUIRED items
                               -----------------------------------------
       Application item         Grants (7 CFR 1703.125
                                   and CFR 1703.126)         Comment
------------------------------------------------------------------------
SF-424 (Application for         Yes...................  Completely
 Federal Assistance form).                               filled out.
Executive Summary.............  Yes...................  Narrative.
Objective Scoring Worksheet...  Yes...................  RUS worksheet.
Rural Calculation Table.......  Yes...................  RUS worksheet.
National School Lunch Program   Yes...................  RUS worksheet;
 Determination.                                          must include
                                                         source
                                                         documentation.
EZ/EC or Champion Communities   Yes...................  Documentation.
 designation.
Documented Need for Services/   Yes...................  Narrative &
 Benefits Derived from                                   documentation,
 Services.                                               if necessary.
Innovativeness of the Project.  Yes...................  Narrative &
                                                         documentation.
Budget........................  Yes...................  Table or
                                                         spreadsheet;
                                                         Recommend using
                                                         the RUS format.
Leveraging Evidence and         Yes...................  RUS worksheet
 Funding Commitments from All                            and source
 Sources.                                                documentation.
Financial Information/          Yes...................  Narrative.
 Sustainability.
System/Project Cost             Yes...................  Narrative &
 Effectiveness.                                          documentation.
Telecommunications System Plan  Yes...................  Narrative &
                                                         documentation;
                                                         maps or
                                                         diagrams, if
                                                         appropriate.
Proposed Scope of Work........  Yes...................  Narrative or
                                                         other
                                                         appropriate
                                                         format.
Statement of Experience.......  Yes...................  Narrative 3-
                                                         page, single-
                                                         spaced limit.
Consultation with the USDA      Yes...................  Documentation.
 State Director, Rural
 Development.
Application conforms with       Yes...................  Documentation.
 State Strategic Plan per USDA
 State Director, Rural
 Development, (if plan exists).
        Certifications
Equal Opportunity and           Yes...................  Recommend using
 Nondiscrimination.                                      the RUS sample
                                                         form.

[[Page 17824]]

 
Architectural Barriers........  Yes...................  Recommend using
                                                         the RUS sample
                                                         form.
Flood Hazard Area Precautions.  Yes...................  Recommend using
                                                         the RUS sample
                                                         form.
Uniform Relocation Assistance   Yes...................  Recommend using
 and Real Property Acquisition                           the RUS sample
 Policies Act of 1970.                                   form.
Drug-Free Workplace...........  Yes...................  Recommend using
                                                         the RUS sample
                                                         form.
Debarment, Suspension, and      Yes...................  Recommend using
 Other Responsibility Matters--                          the RUS sample
 Primary Covered Transactions.                           form.
Lobbying for Contracts,         Yes...................  Recommend using
 Grants, Loans, and                                      the RUS sample
 Cooperative Agreements.                                 form.
Non Duplication of Services...  Yes...................  Recommend using
                                                         the RUS sample
                                                         form.
Environmental Impact/Historic   Yes...................  Recommend using
 Preservation Certification.                             the RUS sample
                                                         form.
Federal Obligations on          Yes...................  Recommend using
 Delinquent Debt.                                        the RUS sample
                                                         form.
Evidence of Legal Authority to  Yes...................  Recommend using
 Contract with the Government                            the RUS sample
 (documentation).                                        form.
Evidence of Legal Existence     Yes...................  Recommend using
 (documentation).                                        the RUS sample
                                                         form.
Supplemental Information (if    Optional..............  Narrative,
 any).                                                   documentation
                                                         or other
                                                         appropriate
                                                         format.
------------------------------------------------------------------------

    2. For combination loan-grant and loan applications:
    a. Detailed information on each item in the table in paragraph 
IV.C.2.f. of this Notice can be found in the sections of the DLT 
Program regulation listed in the table, and the DLT application guide. 
Applicants are strongly encouraged to read and apply both the 
regulation and the application guide.
    (1) When the table refers to a narrative, it means a written 
statement, description or other written material prepared by the 
applicant, for which no form exists. USDA Rural Development recognizes 
that each project is unique and requests narratives to allow applicants 
to explain their request for financial assistance.
    (2) When documentation is requested, it means letters, 
certifications, legal documents or other third party documentation that 
provide evidence that the applicant meets the listed requirement. For 
example, evidence of legal existence is sometimes proven by applicants 
who submit articles of incorporation. This example is not intended to 
limit the types of documentation that may be submitted to fulfill a 
requirement. DLT program regulations and the application guide provide 
specific guidance on each of the items in the table.
    b. The DLT application guide and ancillary materials provide all 
necessary forms and sample worksheets.
    c. While the table in paragraph IV.C.2.f. of this Notice includes 
all items of a completed application for each program, USDA Rural 
Development may ask for additional or clarifying information.
    d. Submit the required application items in the listed order.
    e. DUNS Number. As required by the OMB, all applicants for 
combination loan-grants must supply a Dun and Bradstreet Data Universal 
Numbering System (DUNS) number when applying. The Standard Form 424 
(SF-424) contains a field for you to use when supplying your DUNS 
number. Obtaining a DUNS number costs nothing and requires a short 
telephone call to Dun and Bradstreet. Please see the DLT Web site or 
Grants.gov for more information on how to obtain a DUNS number or how 
to verify your organization's number.
    f. Table of required items in a combination loan-grant or loan 
application:

------------------------------------------------------------------------
                                              REQUIRED items
                                ----------------------------------------
        Application item          Combination loan/
                                    grants (7 CFR            Loans
                                      1703.134)
------------------------------------------------------------------------
Completed SF-424 (Application    Yes................  Yes.
 for Federal Assistance form).
Executive Summary (narrative)..  Yes................  Yes.
Rural Calculation Table........  Yes................  Yes.
Budget (table or other           Yes................  Yes.
 appropriate format).
Financial Information/           Yes................  Yes.
 Sustainability (narrative).
Pro Forma Financial Data         Yes................  Yes.
 (documentation).
Ability to execute a note with   Yes................  Yes.
 maturity greater than 1 year
 (documentation).
Budget.........................  Yes................  Yes.
Revenue/expense reports and      Yes                  Yes
 balance sheet (documentation:    [bs<pound><script-   [bs<pound><script
 table or other appropriate       l1[bs<pound><scrip   -1[bs<pound><scri
 format.                          t].                  p].
Balance sheet (table or other    Yes[bs<pound><scrip  Yes
 appropriate format) for a        t]2[bs<pound><scri   [bs<pound><script
 partnership, corporation,        p].                  -2[bs<pound><scri
 company, other entity; or                             p].
 consortia of such entities
 (documentation)..
Property list (collateral/       Yes................  Yes.
 adequate security
 (documentation)).

[[Page 17825]]

 
Depreciation Schedule..........  Yes................  Yes.
Revenue source(s) for each hub   Yes................  Yes.
 and end-user site
 (documentation)..
Economic analysis of rates--if   Yes................  Yes.
 applicant proposes to provide
 services for another entity.
Telecommunications System Plan   Yes................  Yes.
 (narrative & documentation;
 maps or diagrams, if
 appropriate.
Scope of Work (narrative or      Yes................  Yes.
 other appropriate format).
Statement of Experience          Yes................  Yes.
 (narrative 3-page, single-
 spaced limit..
        Certifications:
*Equal Opportunity and           All Yes............  All Yes.
 Nondiscrimination.
*Architectural Barriers
*Flood Hazard Area Precautions
*Uniform Relocation Assistance
 and Real Property
Acquisitions Policies Act of
 1970
*Drug Free Workplace
*Debarment, Suspension, and
 Other Responsibility Matters--
 Primary Covered Transactions
*Lobbying for Contracts,
 Grants, Loans, and Cooperative
 Agreements
*Non-Duplication of Services
*Environmental Impact/Historic
 Preservation Certification
*Environmental Impact/Historic
 Preservation Questionnaire
*Federal Obligations on
 Delinquent Debt
Evidence of Legal Authority to   Yes................  Yes.
 Contract with the Government
 (documentation).
Evidence of Legal Existance      Yes................  Yes.
 (documentation)..
Supplemental Information (if     Optional...........  Optional.
 any) (narrative, documentation
 or other appropriate format.).
------------------------------------------------------------------------

D. How many copies of an application are required?

    1. Applications submitted on paper.
    a. Submit the original application and two (2) copies to USDA Rural 
Development.
    b. Submit one (1) additional copy to the state government single 
point of contact (SPOC) (if one has been designated) at the same time 
as you submit the application to the Agency. See http://www.whitehouse.gov/omb/grants/spoc.html for an updated listing of State 
government single points of contact.
    2. Electronically submitted applications. USDA Rural Development 
cannot accept loan applications electronically at this time. Only 
grants and combination loan-grants may be requested electronically.
    a. The additional paper copies are not necessary if you submit the 
application electronically through Grants.gov.
    b. Submit one (1) copy to the state government single point of 
contact (if one has been designated) at the same time as you submit the 
application to the Agency. See http://www.whitehouse.gov/omb/grants/spoc.html for an updated listing of State government single points of 
contact.

E. How and Where To Submit an Application

    Grant and combination loan-grant applications may be submitted on 
paper or electronically.
    1. Submitting applications on paper.
    a. Address paper applications to the Telecommunications Program, 
USDA Rural Development, United States Department of Agriculture, 1400 
Independence Ave., SW., Room 2845, STOP 1550, Washington, DC 20250-
1550. Applications should be marked ``Attention: Director, Advanced 
Services Division.''
    b. Paper grant applications must show proof of mailing or shipping 
by the deadline consisting of one of the following:
    (i) A legibly dated U.S. Postal Service (USPS) postmark;
    (ii) A legible mail receipt with the date of mailing stamped by the 
USPS; or
    (iii) A dated shipping label, invoice, or receipt from a commercial 
carrier.
    c. Due to screening procedures at the Department of Agriculture, 
packages arriving via regular mail through the USPS are irradiated, 
which can damage the contents and delay delivery to the DLT Program. 
USDA Rural Development encourages applicants to consider the impact of 
this procedure in selecting their application delivery method.
    2. Electronically submitted applications.
    a. Applications will not be accepted via fax or electronic mail.
    b. Electronic applications for grants and combination loan-grants 
will be accepted if submitted through the Federal government's 
Grants.gov initiative at http://www.grants.gov.
    c. How to use Grants.gov.
    (i) Grants.gov contains full instructions on all required 
passwords, credentialing and software.
    (ii) Central Contractor Registry. Submitting an application through 
Grants.gov requires that you list your organization in the Central 
Contractor Registry (CCR). Setting up a CCR listing takes up to five 
business days, so the Agency strongly recommends that you obtain your 
organization's DUNS number and CCR listing well in advance of the 
deadline specified in this notice.
    (iii) Credentialing and authorization of applicants. Grants.gov 
will also require some credentialing and online authentication 
procedures. These procedures may take several business days to 
complete, further emphasizing the need for early action by applicants 
to complete the sign-up, credentialing and authorization procedures at 
Grants.gov before you submit an application at that Web site.
    (iv) Some or all of the CCR and Grants.gov registration, 
credentialing and authorizations require updates. If you have 
previously registered at Grants.gov to submit applications 
electronically, please ensure that your registration, credentialing and 
authorizations are up to date well in advance of the grant application 
deadline.
    d. USDA Rural Development encourages applicants who wish to apply 
through Grants.gov to submit their applications in advance of the 
deadlines.

[[Page 17826]]

    e. If a system problem occurs or you have technical difficulties 
with an electronic application, please use the customer support 
resources available at the Grants.gov Web site.

F. Deadlines

    1. Paper grant applications must be postmarked and mailed, shipped, 
or sent overnight no later than June 11, 2007 to be eligible for FY 
2007 grant funding. Late applications, applications which do not 
include proof of mailing or shipping as described in paragraph IV.E.b., 
and incomplete applications are not eligible for FY 2007 grant funding.
    2. Electronic grant applications must be received by June 11, 2007 
to be eligible for FY 2007 funding. Late or incomplete applications 
will not be eligible for FY 2007 grant funding.
    G. Intergovernmental Review. The DLT grant program is subject to 
Executive Order 12372, ``Intergovernmental Review of Federal 
Programs.'' As stated in paragraph IV.D.1. of this Notice, a copy of a 
DLT grant application must be submitted to the state single point of 
contact if one has been designated. Please see http://www.whitehouse.gov/omb/grants/spoc.html to determine whether your state 
has a single point of contact.

H. Funding Restrictions

    1. Eligible purposes.
    a. For grants, end-user sites may receive financial assistance; hub 
sites (rural or non-rural) may also receive financial assistance if 
they are necessary to provide DLT services to end-user sites. Please 
see 7 CFR 1703.101(h).
    b. To fulfill the policy goals laid out for the DLT Program in 7 
CFR 1703.101, the following table lists purposes for financial 
assistance and whether each purpose is generally considered to be 
eligible for the form of financial assistance. Please consult the FY 
2007 application guide and the regulations (7 CFR 1703.102 for 
definitions, in combination with the portions of the regulation cited 
in the table) for detailed requirements for the items in the table. 
USDA Rural Development strongly recommends that applicants exclude 
ineligible items from the grant and match portions of grant application 
budgets. However, some items ineligible for funding or matching 
contributions may be vital to the project. USDA Rural Development 
encourages applicants to document those costs in the application's 
budget. Please see the FY 2007 application guide for a recommended 
budget format, and detailed budget compilation instructions.

----------------------------------------------------------------------------------------------------------------
                                                                   Combination  loan-
                                                Grants                   grants                   Loans
----------------------------------------------------------------------------------------------------------------
Lease or purchase of eligible DLT      Yes, equip. only.......                        Yes.
 equipment and facilities.
Acquire instructional programming....  Yes....................                        Yes.
Technical assistance, develop          Yes, up to 10% of the       Yes, up to 10% of the financial assistance.
 instructional programming,             grant.
 engineering or environmental studies.
                                      --------------------------------------------------------------------------
Medical or education equipment or                                         Yes.
 facilities necessary to the project.
                                      --------------------------------------------------------------------------
Vehicles using distance learning or    No.....................                        Yes.
 telemedicine technology to deliver
 services.
Teacher-student links located at the   No.....................  Yes, if part of a broader DLT network that meets
 same facility.                                                          other eligible program purposes.
Links between medical professionals    No.....................  Yes, if part of a
 located at the same facility.                                   broader DLT network
                                                                 that meets other
                                                                 eligible program
                                                                 purposes.
Site development or building           No.....................      Yes, if the activity meets other program
 alteration.                                                                        purposes.
Land of building purchase............  No.....................      Yes, if the activity meets other program
                                                                                    purposes.
Building Construction................  No.....................      Yes, if the activity meets other program
                                                                                    purposes.
Acquiring telecommunications           No.....................   Yes, if other telecommunications carriers will
 transmission facilities.                                         not install in a reasonable time period and at
                                                                   an economically viable cost to the project.
                                      --------------------------------------------------------------------------
Salaries, wages, benefits for medical                                      No.
 or educational personnel.
Salaries or administrative expenses                                        No.
 of applicant or project.
                                      --------------------------------------------------------------------------
Recurring project costs or operating        No (equipment & facility leases are not      Yes, for the first two
 expenses.                                          recurring project costs)              years after approval
                                                                                          (equipment & facility
                                                                                          leases are not
                                                                                          recurring project
                                                                                          costs).
                                      --------------------------------------------------------------------------
Equipment to be owned by the LEC or    No.....................                        Yes.
 other telecommunications service
 provider, if the provider is the
 applicant.
                                      --------------------------------------------------------------------------
Duplicative distance learning or                                           No.
 telemedicine services.
Any project that for its success,                                          No.
 depends on additional DLT financial
 assistance or other financial
 assistance that is not assured.
Application Preparation Costs........                                      No.
                                      --------------------------------------------------------------------------
Other project costs not in regulation                         No                         Yes, for the first two
                                                                                          years of operation.

[[Page 17827]]

 
Cost of facilities providing distance                         No                         Yes, financial
 learning broadcasting (amount).                                                          assistance directly
                                                                                          proportional to the
                                                                                          distance learning
                                                                                          portion of use.
                                      --------------------------------------------------------------------------
Reimburse applicants of others for                                         No.
 costs incurred prior to USDA RURAL
 DEVELOPMENT receipt of completed
 application.
----------------------------------------------------------------------------------------------------------------

    c. Discounts. The DLT Program regulation has long stated that 
manufacturers' and service providers' discounts are not eligible 
matches. The Agency will not consider as eligible any proposed match 
from a vendor, manufacturer, or service provider whose products or 
services will be used in the DLT project as described in the 
application. In recent years, the Agency has noted a trend of vendors, 
manufacturers and other service providers offering their own products 
and services as in-kind matches for a project when their products or 
services will also be purchased with either grant or cash match funds 
for that project. Such activity is a discount and is therefore not an 
eligible match. Similarly, if a vendor, manufacturer or other service 
provider proposes a cash match (or any in-kind match) when their 
products or services will be purchased with grant or match funds, such 
activity is a discount and is not an eligible match. The Agency 
actively discourages such matching proposals and will adjust budgets as 
necessary to remove any such matches, which may reduce an application's 
score or result in the application's ineligibility due to insufficient 
match.
    d. For special ratio combination loan-grant applications, the only 
eligible purpose is for the conversion to electronic medical records 
systems, or for the extension of an existing electronic medical records 
system to a new rural location.
    2. Eligible Equipment & Facilities. Please see 7 CFR 1703.102 for 
definitions of eligible equipment, eligible facilities and 
telecommunications transmission facilities as used in the table above. 
In addition, the FY 2007 application guide supplies a wealth of 
information and examples of eligible and ineligible items.
    3. Apportioning budget items. Many DLT applications propose to use 
items for a blend of specific DLT project purposes and other purposes. 
USDA Rural Development will now fund such items, if the applicants 
attribute the proportion (by percentage of use) of the costs of each 
item to the project's DLT purpose or to other purposes to enable 
consideration for a grant of the portion of the item that is for DLT 
usage. See the FY 2007 application guide for detailed information on 
how to apportion use and apportioning illustrations.

V. Application Review Information

A. Special Considerations or Preferences

    1. American Samoa, Guam, Virgin Islands, and Northern Mariana 
Islands applications are exempt from the matching requirement up to a 
match amount of $200,000 (see 48 U.S.C. 1469a; 91 Stat. 1164).
    2. 7 CFR 1703.112 directs that USDA Rural Development 
Telecommunications Borrowers receive expedited consideration of a loan 
application or advance under the Rural Electrification Act of 1936 (7 
U.S.C. 901-950aa, et seq.) if the loan funds in question are to be used 
in conjunction with a DLT grant, loan, or combination loan-grant (See 7 
CFR 1737 for loans and 7 CFR 1744 for advances).

B. Criteria

    1. Grant application scoring criteria (total possible points: 235). 
See 7 CFR 1703.125 for the items that will be reviewed during scoring, 
and 7 CFR 1703.126 for scoring criteria.
    2. Grant applications are scored competitively subject to the 
criteria listed below.
    a. Need for services proposed in the application, and the benefits 
that will be derived if the application receives a grant (up to 55 
points).
    (i) Up to 45 of the 55 possible points under this criterion are 
available to all applicants. Points are awarded based on the required 
narrative crafted by the applicant. USDA Rural Development encourages 
applicants to carefully read the cited portions of the Program 
regulation and the FY 2007 application guide for full discussions of 
this criterion.
    (ii) Up to 10 of the possible 55 possible points are to recognize 
economic need not reflected in the project's National School Lunch 
Program (NSLP) score, and can be earned only by applications whose 
overall NSLP eligibility is less than 50%. To be eligible to receive 
points under this, the application must include an affirmative request 
for consideration of the possible 10 points, and compelling 
documentation of reasons why the NSLP eligibility percentage does not 
represent the economic need of the proposed project beneficiaries.
    b. Rurality of the proposed service area (up to 45 points).
    c. Percentage of students eligible for the NSLP in the proposed 
service area (objectively demonstrates economic need of the area) (up 
to 35 points).
    d. Leveraging resources above the required matching level (up to 35 
points). Please see paragraph III.B of this Notice for a brief 
explanation of matching contributions.
    e. Level of innovation demonstrated by the project (up to 15 
points).
    f. System cost-effectiveness (up to 35 points).
    g. Project overlap with Empowerment Zone, Enterprise Communities or 
Champion Communities designations (up to 15 points).

C. Grant Review Standards

    1. In addition to the scoring criteria that rank applications 
against each other, USDA Rural Development evaluates grant applications 
for possible awards on the following items, according to 7 CFR 
1703.127:
    a. Financial feasibility.
    b. Technical considerations. If the application contains flaws that 
would prevent the successful implementation, operation or 
sustainability of a project, USDA Rural Development will not award a 
grant.
    c. Other aspects of proposals that contain inadequacies that would 
undermine the ability of the project to comply with the policies of the 
DLT Program.
    2. Applications which do not include all items that determine 
project eligibility and applicant eligibility by the application 
deadline will be returned as ineligible. Applications that do not 
include all items necessary for scoring will be scored as is. Please 
see the FY 2007 application guide for a full

[[Page 17828]]

discussion of each required item and for samples and illustrations. The 
USDA Rural Development will not request missing items that affect the 
application's score.
    3. The FY 2007 grant application guide specifies the format and 
order of all required items. Applications that are not assembled and 
tabbed in the order specified. Incorrectly assembled applications will 
be returned as ineligible.
    4. Most DLT grant projects contain numerous project sites. USDA 
Rural Development requires that site information be consistent 
throughout an application. Sites must be referred to by the same 
designation throughout all parts of an application. USDA Rural 
Development has provided a site worksheet that requests the necessary 
information, and can be used as a guide by applicants. USDA Rural 
Development strongly recommends that applicants complete the site 
worksheet, listing all requested information for each site. 
Applications without consistent site information will be returned as 
ineligible.
    5. DLT grant applications which have non-fixed end-user sites, such 
as ambulance and home health care services, are now scored using a 
simplified scoring method that finds the relative rurality of the 
applicant's service area. See the FY 2007 application guide for 
specific guidance on this method of scoring. When an application 
contains non-fixed sites, it must be scored using the non-fixed site 
scoring method.

D. Selection Process

    1. Grants. Applications are ranked by final score, and by 
application purpose (education or medical). USDA Rural Development 
selects applications based on those rankings, subject to the 
availability of funds. USDA Rural Development may allocate grant awards 
between medical and educational purposes, but is not required to do so. 
In addition, USDA Rural Development has the authority to limit the 
number of applications selected in any one state, or for one project, 
during a fiscal year. See 7 CFR 1703.127.
    2. Combination loan-grants and loans.
    a. Combination loan-grant applications and loan applications are 
evaluated on the basis of technical, financial, economic and other 
criteria.
    b. USDA Rural Development evaluates applications' financial 
feasibility using the following information. Please see paragraph 
IV.C.2. of this Notice for the items that constitute a completed 
combination loan-grant or loan application. Also, see 7 CFR part 1703 
subpart F for combination loan-grants and 7 CFR part 1703 subpart G for 
loans:
    (1) Applicant's financial ability to complete the project;
    (2) Project feasibility;
    (3) Applicant's financial information;
    (4) Project sustainability;
    (5) Ability to repay the loan portion of a combination loan-grant, 
including revenue sources;
    (6) Collateral for which the applicant has perfected a security 
interest; and
    (7) Adequate security for a loan or the loan portion of a 
combination loan-grant.
    (c) USDA Rural Development also evaluates the following project and 
application characteristics:
    (1) Services to be provided by the project.
    (2) Project cost.
    (3) Project design.
    (4) Rurality of the proposed service area. Please see paragraph 
III.B.4. of this Notice for information on determining rurality.
    (5) Other characteristics.
    d. Selection process. Based on the review standards listed above 
and in the DLT Program regulation, USDA Rural Development will process 
successful combination loan-grant and loan applications on a first-in, 
first-out basis, dependent upon the availability of funds. Please see 7 
CFR 1703.135 for combination loan-grant application processing and 
selection; and 7 CFR 1703.145 for loan application processing and 
selection.

VI. Award Administration Information

A. Award Notices

    USDA Rural Development generally notifies applicants whose projects 
are selected for awards by faxing an award letter. USDA Rural 
Development follows the award letter with an agreement that contains 
all the terms and conditions for the grant, combination loan-grant or 
loan. USDA Rural Development recognizes that each funded project is 
unique, and therefore may attach conditions to different projects' 
award documents. An applicant must execute and return the agreement, 
accompanied by any additional items required by the agreement, within 
the number of days shown in the selection notice letter.

B. Administrative and National Policy Requirements

    The items listed in Section IV of this notice, and the DLT Program 
regulation, FY 2007 application guide and accompanying materials 
implement the appropriate administrative and national policy 
requirements.

C. Reporting

    1. Performance reporting. All recipients of DLT financial 
assistance must provide annual performance activity reports to USDA 
Rural Development until the project is complete and the funds are 
expended. A final performance report is also required; the final report 
may serve as the last annual report. The final report must include an 
evaluation of the success of the project in meeting DLT Program 
objectives. See 7 CFR 1703.107.
    2. Financial reporting. All recipients of DLT financial assistance 
must provide an annual audit, beginning with the first year a portion 
of the financial assistance is expended. Audits are governed by United 
States Department of Agriculture audit regulations. Please see 7 CFR 
1703.108.
    3. Record Keeping and Accounting The loan, or grant contract will 
contain provisions relating to record keeping and accounting 
requirements.

VII. Agency Contacts

    A. Web site: http://www.usda.gov/rus/telecom/dlt/dlt.htm. The DLT 
Web site maintains up-to-date resources and contact information for DLT 
programs.
    B. Phone: 202-720-0413.
    C. Fax: 202-720-1051.
    D. E-mail: dltinfo@usda.gov.
    E. Main point of contact: Orren E. Cameron III, Director, Advanced 
Services Division, Telecommunications Program, Rural Development, 
United States Department of Agriculture.

    Dated: March 13, 2007.
James M. Andrew,
Administrator, Rural Utilities Service.
[FR Doc. E7-6544 Filed 4-9-07; 8:45 am]
BILLING CODE 3410-15-P