Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Rules and Regulations 30573 

EPA-APPROVED MICHIGAN REGULATIONS—Continued 

Michigan 

citation Title 

State 

effective 

date 

EPA approval date Comments 

*******

R 336.1625 .......... Emission of volatile organic 

compound from existing 

equipment utilized in manufacturing synthesized 

pharmaceutical products.

3/29/2017 6/29/2018, [Insert Federal 

Register citation].

R 336.1627 .......... Delivery vessels; vapor collection systems.3/29/2017 6/29/2018, [Insert Federal 

Register citation].

R 336.1628 .......... Emission of volatile organic 

compounds from components of existing process 

equipment used in manufacturing synthetic organic 

chemicals and polymers; 

monitoring program.

3/29/2017 6/29/2018, [Insert Federal 

Register citation].

R 336.1629 .......... Emission of volatile organic 

compounds from components of existing process 

equipment used in processing natural gas; monitoring program.

3/29/2017 6/29/2018, [Insert Federal 

Register citation].

* * * * * * * 

R 336.1632 .......... Emission of volatile organic 

compounds from existing 

automobile, truck, and 

business machine plastic 

part coating lines.

3/29/2017 6/29/2018, [Insert Federal 

Register citation].

R 336.1651 .......... Standards for degreasers ..... 3/29/2017 6/29/2018, [Insert Federal 

Register citation].

R 336.1660 .......... Standards for volatile organic 

compounds emissions 

from consumer products.

3/29/2017 6/29/2018, [Insert Federal 

Register citation].

R 336.1661 .......... Definitions for consumer 

products.

3/29/2017 6/29/2018, [Insert Federal 

Register citation].

* * * * * * * 

Part 9: Emission Limitations and Prohibitions—Miscellaneous 

R 336.1902 .......... Adoption of Standards by 

reference.

12/20/2016 6/29/2018, [Insert Federal 

Register citation].

Only sections (1)(a), (b)(i), (b)(iii), (b)(iv), 

(b)(vii), (b)(viii), (c), (d), (e), (f), (g), (i), (j), 

(k), (l), (m), (n), and (s); (2)(b), (e), and 

(g); (3)(a); (4)(a), (b), (c), (d), (e), (f), (l), 

(m),(o), and (p); (5); (8); and (9). 

* * * * * * * 

* * * * * 

[FR Doc. 2018–13953 Filed 6–28–18; 8:45 am] 

BILLING CODE 6560–50–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 86 

Control of Emissions From New and 

In-Use Highway Vehicles and Engines 

CFR Correction 

■ In Title 40 of the Code of Federal 

Regulations, Parts 82 to 86, revised as of 

July 1, 2017, on page 1134, following 

paragraph (b) of § 86.1917, the section 

heading of § 86.1920 is inserted to read 

as follows: 

§ 86.1920 What in-use testing information 

must I report to EPA? 

* * * * * 

[FR Doc. 2018–14145 Filed 6–28–18; 8:45 am] 

BILLING CODE 1301–00–D 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Part 54 

[WC Docket No. 17–310; FCC 18–82] 

Promoting Telehealth in Rural America 

AGENCY: Federal Communications 

Commission. 

ACTION: Final rule. 

SUMMARY: In this document, the Federal 

Communications Commission (the 

Commission or FCC) addresses the 

current funding shortfall in the Rural 

Health Care (RHC) Program, including 

by raising the annual Program funding 

cap and applying it to the current 


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funding year to fully fund eligible 

funding requests for funding year (FY) 

2017, adjusting the funding cap to 

reflect inflation, and establishing a 

process to carry-forward unused funds 

from past funding years for use in future 

funding years. 

DATES: Effective June 29, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Elizabeth Drogula, elizabeth.drogula@

fcc.gov, Telecommunications Access 

Policy Division, Wireline Competition 

Bureau, (202) 418–1591 or TTY: (202) 

418–0484. 

SUPPLEMENTARY INFORMATION: This is a 

summary of the Commission’s Report 

and Order (R&O) in WC Docket No. 17– 

310; FCC 18–82, adopted on June 19, 

2018, and released on June 25, 2018. 

The full text of this document is 

available for public inspection during 

regular business hours in the FCC 

Reference Center, Room CY–A257, 445 

12th Street SW, Washington, DC 20554, 

or at the following internet address: 

https://docs.fcc.gov/public/ 

attachments/FCC-18-82A1.pdf. 

I. Introduction 

1. Technology and telemedicine have 

assumed an increasingly important role 

in health care delivery, particularly in 

rural and remote areas of the country. 

For Americans living in rural and 

isolated areas, doctor shortages and 

hospital closures are endemic, and 

obtaining access to high-quality health 

care is a constant challenge. Broadband 

greatly changes that equation, however, 

by enabling a wide range of 

telemedicine services—from specialists 

providing consultations via video 

conferencing to radiologists remotely 

reading X-rays via high-speed 

connectivity. Today, the Commission 

takes steps to help ensure that health 

care providers participating in the 

Commission’s RHC Program can 

continue providing these and other 

essential telemedicine services to their 

communities. 

2. In 1996, Congress recognized the 

value of providing rural health care 

providers with ‘‘an affordable rate for 

the services necessary for the provision 

of telemedicine,’’ and the Commission 

established the RHC Program the 

following year. At that time, the 

Commission capped RHC Program 

funding at $400 million annually, and 

for many years, the $400 million 

funding cap was sufficient to fulfill 

Program demand. More recently, 

however, funding requests for highspeed broadband from health care 

providers have outpaced the RHC 

Program funding cap, placing a strain on 

the Program’s ability to increase access 

to broadband for health care providers, 

particularly in rural areas, and foster the 

deployment of broadband health care 

networks. Further, rural health care 

providers face imminent financial 

hardship in FY 2017 due to the 

significant, automatic proration of their 

funding requests pursuant to RHC 

Program rules. These funding 

reductions have forced providers to 

assume additional costs of providing 

critical health care services to their 

communities. 

3. Given rural health care providers’ 

urgent need for funding, the 

Commission takes immediate action in 

the R&O to address the current funding 

shortfall in the RHC Program, including 

by raising the annual Program funding 

cap to $571 million and applying it to 

the current funding year to fully fund 

eligible funding requests for FY 2017. 

The Commission takes this action 

consistent with the goals of ensuring 

that rural health care providers are able 

to get the funding they need from the 

RHC Program. At the same time, the 

Commission is mindful of the need to 

guard against Program waste, fraud, and 

abuse to ensure that this funding is 

being spent appropriately. The 

Commission remains committed to this 

goal and for that reason, have proposed 

and sought comment in this proceeding 

on measures to ensure compliance and 

to reduce waste, fraud, and abuse in the 

RHC Program. 

II. Discussion 

4. In the R&O, the Commission adopts 

measures to address the increased 

demand for funding from the RHC 

Program and thereby promote health 

care delivery and telemedicine in rural 

America. Specifically, the Commission 

(1) increases the annual RHC Program 

funding cap to $571 million and apply 

it to FY 2017; (2) decides to annually 

adjust the RHC Program funding cap to 

reflect inflation, beginning with FY 

2018; and (3) establishes a process to 

carry-forward unused funds from past 

funding years for use in future funding 

years. These actions will provide rural 

health care providers with a sufficient 

and more predictable source of 

universal service funding to deliver vital 

telemedicine services to their 

communities. 

A. Raising the RHC Program Funding 

Cap 

5. Background. In the 2017 NPRM and 

Order (FCC 17–164), the Commission 

sought comment on whether to increase 

the RHC Program’s $400 million annual 

funding cap and how to determine the 

appropriate funding cap level. The 

Commission explained that one metric 

would be to consider what the cap 

would have been if adjusted by inflation 

since its adoption. It therefore sought 

comment on whether to establish a new 

RHC Program funding cap based on the 

expected level had the Commission 

initiated an annual inflation adjustment 

in 1997 using the gross domestic 

product chain-type price index (GDP– 

CPI). The Commission also sought 

comment on whether to apply any 

increased funding cap to FY 2017. 

6. The majority of commenters agree 

that the Commission should raise the 

RHC Program funding cap. Of those 

commenters, most argue that setting the 

cap at $571 million, the level it would 

be had the Program been indexed for 

inflation since its inception, is a 

sufficient and appropriate metric for 

establishing a new funding cap today. 

Some commenters instead argue that the 

cap should be raised beyond $571 

million to account for the expansion of 

eligible services and entities since the 

Program’s inception, as well as 

advances in telehealth capabilities and 

technologies, and increased broadband 

requirements. Other commenters 

contend that the GDP–CPI index does 

not sufficiently represent Program 

demand because the costs of providing 

health care services have historically 

outpaced inflation, or they assert that 

the funding cap should simply be 

doubled to $800 million to account for 

inflation, the increased number of 

eligible entities, and advances in 

technology. 

7. Additionally, some parties assert 

that the Commission’s analysis in 

setting the original cap of $400 million 

was arbitrary or based on incorrect 

estimates of the number of qualifying 

rural health care providers. Despite this, 

these commenters advocate raising the 

annual funding cap based on the 

broadband communications 

requirements for health care providers, 

the increased demand for the services 

that such broadband can support, other 

potential sources of funding of rural 

health care broadband needs, or 

indexing the $400 million cap to GDP– 

CPI. 

8. Discussion. The Commission 

concludes that raising the RHC Program 

funding cap is necessary to address 

current and future demand for 

supported services by health care 

providers. Raising the funding cap to 

$571 million responds to the significant 

increase in RHC Program demand 

resulting from the expansion of eligible 

services and entities since the Program’s 

creation, as well as the advances in 

technology that often require higher 

bandwidth (e.g., higher-speed 

bandwidth, less latency, and diverse 


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routing) than was contemplated by the 

Commission when it established a $400 

million cap for the Program in 1997. 

The Commission also finds that 

increasing the funding cap to what it 

would have been if indexed annually for 

inflation since the inception of the 

Program, using the GDP–CPI index, 

ensures that RHC Program funding is 

sufficient to meet current demand, 

while also minimizing the increased 

costs of funding, which are imposed on 

USF contributors and generally passed 

on to consumers. In addition, adjusting 

the funding cap to account for inflation 

over the past 20 years maintains the 

purchasing power in today’s dollars that 

health care providers held when the 

RHC Program was first instituted. On 

these bases, the Commission raises the 

RHC Program annual funding cap from 

$400 million to $571 million. 

9. The Commission disagrees with 

those commenters who advocate 

doubling the RHC Program funding cap 

to $800 million at this time. The $171 

million increase in the annual funding 

cap exceeds the current demand of $521 

million, and commenters fail to provide 

reliable data justifying a $400 million 

increase. Moreover, the Commission 

believes that adopting such a substantial 

increase at this time is especially 

imprudent given the concerns in this 

proceeding about whether potential 

waste in the RHC Telecommunications 

Program has contributed to reaching the 

cap sooner than anticipated and what 

steps the Commission should take to 

reduce such waste. 

10. Accordingly, the Commission 

concludes that increasing the cap to 

$571 million strikes the appropriate 

balance between ensuring adequate 

funding for vital telehealth services 

while minimizing the burden placed on 

USF contributors and consumers. As 

necessary, the Commission will assess 

the need for any future increases in the 

cap to ensure that the RHC Program is 

sufficiently funded to achieve the 

Program’s goals of increasing access to 

broadband for health care providers, 

particularly in rural areas, and fostering 

the deployment of broadband health 

care networks. For these reasons, the 

Commission is not persuaded by the 

arguments submitted by SHLB, ACS, 

and others that raising the cap to $571 

million is insufficient to address RHC 

Program demand. By raising the cap by 

$171 million and taking the other steps 

discussed in this R&O (i.e., indexing the 

cap to reflect inflation and adopting a 

carry-forward process for unused 

funding), the Commission is addressing 

the substantial increase in RHC Program 

demand. 

11. The Commission is also 

unpersuaded by AT&T’s arguments that 

until the Telecommunications Program 

is fundamentally reformed, it is 

premature to consider increasing the 

annual RHC Program funding cap. In 

light of the current funding shortfall in 

the RHC Program, the Commission 

believes that raising the funding cap to 

$571 million now is necessary to ensure 

that sufficient funding is available for 

eligible health care providers to 

maintain their current network 

connections and telehealth services, and 

to provide additional certainty as health 

care providers consider their future 

bandwidth needs. The Commission 

does, however, agree with AT&T and 

other commenters that managing waste, 

fraud, and abuse in the RHC Program is 

essential to ensuring efficient Program 

disbursements, and that the 

Commission should consider additional 

measures to ensure Program 

compliance. For that very reason, the 

2017 NPRM and Order proposed and 

sought comment on measures to control 

outlier costs and reform support 

calculations in the Telecommunications 

Program, improve competitive bidding, 

and establish more effective oversight of 

the RHC Program. 

12. In addition to raising the annual 

RHC Program funding cap, the 

Commission addresses the immediate 

needs of participating health care 

providers by applying the increased cap 

to the current funding year (FY 2017). 

Given the significant financial hardship 

faced by rural health care providers due 

to the scarcity of Program funding and 

the substantial proration of FY 2017 

funding requests, it is incumbent on the 

Commission to make available the 

additional funding in this funding year. 

This decision will eliminate the need to 

prorate the amount of qualified FY 2017 

funding requests and relieve rural 

health care providers of burdensome 

service cost increases resulting from the 

required proration. 

13. None of the commenters who 

support raising the annual funding cap 

oppose applying the funding cap to FY 

2017. In the 2017 NPRM and Order, the 

Commission sought comment on 

whether to raise the funding cap, and 

whether the funding cap should be 

increased for FY 2017 to address the 

financial distress that can result from 

the proration of funding requests. The 

Commission anticipated that demand 

would exceed the funding cap in FY 

2017, potentially at a level requiring a 

deeper proration than required in FY 

2016, and recognized that the ‘‘proration 

that comes with capped funding may be 

especially hard on small, rural 

healthcare providers with limited 

budgets. . . .’’ USAC has since 

announced and applied a significant 

proration factor for FY 2017, and the 

hardship anticipated by the Commission 

has been reflected in petitions for relief 

and correspondence filed in the RHC 

Program dockets. The Commission 

concludes that the public health 

consequences that could result from 

rural health care providers receiving 

reduced funding as a result of the 

proration of their funding requests in FY 

2017 weighs in favor of increasing the 

FY 2017 RHC Program cap to the $571 

million level as adopted by this R&O. 

14. By taking this action, the 

Commission makes significant funding 

available to issue commitments for the 

full amount approved for FY 2017 

funding requests prior to proration. The 

Commission directs USAC to collect the 

additional funds needed to fully fund 

FY 2017 demand over the next two 

quarters in accordance with the 

standard process for calculating and 

announcing the quarterly contribution 

factor to reduce the impact on 

ratepayers. The Commission further 

directs USAC to take any other steps 

necessary to reverse the proration of 

approved FY 2017 funding requests, 

consistent with this R&O. 

B. Instituting an Annual Inflation 

Adjustment 

15. Background. In addition to 

whether and how to raise the RHC 

Program annual funding cap, in the 

2017 NPRM and Order, the Commission 

sought comment on whether the cap 

should be adjusted annually for 

inflation. The Commission noted that 

other universal service support 

mechanisms use the GDP–CPI inflation 

index to adjust funding caps, and 

inquired whether the RHC Program cap 

should also be adjusted annually on the 

same basis. Commenters that support 

raising the RHC Program funding cap to 

the level that it would be had it been 

indexed for inflation using GDP–CPI 

since the inception of the Program also 

support adjusting the cap for inflation in 

future funding years. 

16. Discussion. The Commission 

adopts a rule that, beginning in FY 

2018, the RHC Program funding cap will 

be adjusted annually for inflation using 

the GDP–CPI inflation index. By itself, 

raising the cap does not create the 

flexibility necessary to ensure that rural 

health care providers have affordable 

access to telecommunications and 

broadband services in the event of 

future price inflation. Accordingly, the 

Commission must also institute an 

annual inflation adjustment to ensure 

that the RHC Program maintains 

consistent purchasing power without 


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unreasonably increasing the size of the 

USF and increasing the USF 

contribution charges that are ultimately 

passed through to consumers. 

17. The Commission concludes that it 

is appropriate to rely upon the GDP–CPI 

index for the RHC Program’s inflation 

adjustment. There is no index that 

specifically examines the cost of 

services funded under the RHC 

Program. Given that GDP–CPI is the 

same index the Commission uses to 

inflation-adjust the E-Rate Program cap, 

the high-cost loop support mechanism 

cap, and in other contexts to estimate 

inflation of carrier costs, the 

Commission concludes that it is 

reasonable to use the GDP–CPI to 

approximate the impact of inflation on 

RHC Program supported services. In the 

event of periods of deflation, the 

Commission will maintain the prioryear cap to maintain predictability. 

18. To compute the annual inflation 

adjustment, the percentage increase in 

the GDP–CPI from the previous year 

will be used. The increase shall be 

rounded to the nearest 0.1 percent. The 

increase in the inflation index will then 

be used to calculate the maximum 

amount of funding for the next RHC 

Program funding year which runs from 

July 1 to June 30. When the calculation 

of the yearly average GDP–CPI is 

determined, the Wireline Competition 

Bureau (Bureau) will publish a Public 

Notice in the Federal Register within 60 

days announcing any increase in the 

annual funding cap based on the rate of 

inflation. For FY 2018, based on GDP– 

CPI, the RHC Program funding cap will 

be $581 million. 

C. Adopting a Carry-Forward Process for 

the RHC Program 

19. Background. In the 2017 NPRM 

and Order, the Commission sought 

comment on whether to allow unused 

funds committed in one funding year to 

be carried forward to a subsequent 

funding year. In fact, in the 

accompanying Order (FCC 17–164), the 

Commission directed that unused funds 

from prior years be carried forward to 

reduce the effect of proration for certain 

health care providers in FY 2017. All 

those who commented on this issue 

supported the proposal that unused 

funds be carried forward for use in 

subsequent years. 

20. Discussion. The Commission finds 

that, beginning in FY 2018, unused 

funds may be carried forward from 

previous years for use in subsequent 

funding years. Unused funds are the 

difference between the amount of funds 

collected, or made available for that 

particular funding year, and the amount 

of funds disbursed or to be disbursed for 

that funding year. Funds carried 

forward from one funding year may be 

rolled over to multiple funding years 

until ultimately committed and 

disbursed. Considering the high demand 

for RHC Program funding, the 

Commission concludes that this action 

is consistent with the goals of the RHC 

Program, aligns the RHC Program with 

the E-Rate Program’s carry-forward 

process, and is in the public interest. 

21. Additionally, as in the E-Rate 

Program, the Commission will require 

USAC to provide quarterly estimates to 

the Commission regarding the amount 

of unused funds that will be available 

for carryover in subsequent years. This 

requirement codifies USAC’s existing 

reporting practice and reporting cycle. 

The quarterly estimate will also provide 

stakeholders of the RHC Program with 

general notice regarding the estimated 

amount of unused funds that may be 

made available in the subsequent year. 

22. Further, the Commission will 

make unused funds available annually 

in the second quarter of each calendar 

year for use in the next full funding year 

of the RHC Program. Based on the 

estimates provided by USAC, the 

Commission will announce a specific 

amount of unused funds from prior 

funding years to be carried forward to 

increase available funding for future 

funding years. This unused funding may 

be used to commit to eligible services in 

excess of the annual funding cap in the 

event demand in a given year exceeds 

the cap, or it may be used to reduce 

collections for the RHC Program in a 

year when demand is less than the cap. 

The Bureau will announce the 

availability and amount of carryover 

funds during the second quarter of the 

calendar year. 

23. Finally, the Commission finds it is 

in the public interest to carry forward 

unused funds for disbursement on an 

annual basis. Distribution of unused 

funds on an annual basis allows USAC 

to refine its calculation of available 

funds over four reporting quarters as the 

funding year progresses. The 

Commission also believes that the 

timing of this process provides certainty 

regarding when unused funds will be 

carried forward for use in the RHC 

Program with minimal disruption to the 

administration of the Program. 

III. Procedural Matters 

A. Paperwork Reduction Act Analysis 

24. This document contains no new 

information collection requirements 

subject to the Paperwork Reduction Act 

of 1995 (PRA), Public Law 104–13. In 

addition, the Commission notes that 

pursuant to the Small Business 

Paperwork Relief Act of 2002, Public 

Law 107–198, see 44 U.S.C. 3506(c)(4), 

it previously sought specific comments 

on how the Commission might further 

reduce the information collection 

burden for small business concerns with 

fewer than 25 employees. The 

Commission describes impacts that 

might affect small businesses, which 

includes most business with fewer than 

25 employees, in the Final Regulatory 

Flexibility Analysis (FRFA). 

B. Congressional Review Act 

25. The Commission will send a copy 

of the R&O to Congress and the 

Government Accountability Office, 

pursuant to the Congressional Review 

Act, see 5 U.S.C. 801(a)(1)(A). 

C. Regulatory Flexibility Act 

26. The Regulatory Flexibility Act of 

1980 (RFA) requires that an agency 

prepare a regulatory flexibility analysis 

for notice and comment rulemakings, 

unless the agency certifies that ‘‘the rule 

will not, if promulgated, have a 

significant economic impact on a 

substantial number of small entities.’’ 

Accordingly, we have prepared a Final 

Regulatory Flexibility Analysis (FRFA) 

concerning the possible impact of the 

rule changes contained in the R&O on 

small entities. The Commission will 

send a copy of the R&O, including the 

FRFA below, in a report to be sent to 

Congress and the Government 

Accountability Office pursuant to the 

Small Business Regulatory Enforcement 

Fairness Act of 1996. In addition, the 

Commission will send a copy of the 

R&O, including the FRFA, to the Chief 

Counsel for Advocacy of the Small 

Business Administration. A copy of the 

R&O and FRFA (or summaries thereof) 

will also be published in the Federal 

Register. 

D. Final Regulatory Flexibility Analysis 

27. As required by the Regulatory 

Flexibility Act of 1980, as amended 

(RFA), an Initial Regulatory Flexibility 

Analysis (IRFA) of the possible 

significant economic impact on a 

substantial number of small entities by 

the policies and rules was incorporated 

into the 2017 Notice of Proposed 

Rulemaking. Written comments were 

requested on this IRFA. This present 

FRFA conforms to the RFA. 

1. Need for, and Objectives of, the 

Report and Order 

28. Through the R&O, the 

Commission seeks to improve the Rural 

Health Care (RHC) Program’s capacity to 

distribute telecommunications and 

broadband support to health care 

providers—especially small, rural 


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health care providers—in the most 

equitable, effective, efficient, clear, and 

predictable manner as possible. 

Telemedicine has become an 

increasingly vital component of health 

care delivery to rural Americans and, in 

Funding Year (FY) 2016, for the first 

time in the RHC Program’s twenty-year 

history, and then again in FY 2017, 

demand for support exceeded the $400 

million annual cap which necessitated 

reduced, pro rata distribution of 

support. In light of the significance and 

scarcity of RHC Program support, the 

Commission adopts several measures to 

most effectively meet health care 

providers’ needs while responsibly 

stewarding the RHC Program’s limited 

funds. Specifically, the Commission 

adopts rules that: (1) Raise the annual 

RHC Program funding cap to $571 

million to apply to FY 2017; (2) adjust 

the annual RHC Program funding cap 

for inflation; and (3) establish a 

mechanism to carry-forward unused 

funds from past funding years for use in 

future funding years. 

2. Summary of Significant Issues Raised 

by Public Comments in Response to the 

IRFA 

29. There were no comments filed 

that specifically addressed the rules and 

policies proposed in the IRFA. 

3. Response to Comments by the Chief 

Counsel for Advocacy of the Small 

Business Administration 

30. The Chief Counsel did not file any 

comments in response to the proposed 

rules in this proceeding. 

4. Description and Estimate of the 

Number of Small Entities to Which the 

Rules Will Apply 

31. The RFA directs agencies to 

provide a description of and, where 

feasible, an estimate of the number of 

small entities that may be affected by 

the proposed rules, if adopted. The RFA 

generally defines the term ‘‘small 

entity’’ as having the same meaning as 

the terms ‘‘small business,’’ ‘‘small 

organization,’’ and ‘‘small governmental 

jurisdiction.’’ In addition, the term 

‘‘small business’’ has the same meaning 

as the term ‘‘small business concern’’ 

under the Small Business Act. A small 

business concern is one that: (1) Is 

independently owned and operated; (2) 

is not dominant in its field of operation; 

and (3) satisfies any additional criteria 

established by the Small Business 

Administration (SBA). 

32. Small Businesses, Small 

Organizations, Small Governmental 

Jurisdictions. The Commission’s actions, 

over time, may affect small entities that 

are not easily categorized at present. 

The Commission therefore describes 

here, at the outset, three broad groups of 

small entities that could be directly 

affected herein. First, while there are 

industry specific size standards for 

small businesses that are used in the 

RFA, according to data from the SBA’s 

Office of Advocacy, in general a small 

business is an independent business 

having fewer than 500 employees. These 

types of small businesses represent 99.9 

percent of all businesses in the United 

States, which translates to 28.8 million 

businesses. 

33. Next, the type of small entity 

described as a ‘‘small organization’’ is 

generally ‘‘any not-for-profit enterprise 

which is independently owned and 

operated and is not dominant in its 

field.’’ Nationwide, as of August 2016, 

there were approximately 356,494 small 

organizations based on registration and 

tax data filed by nonprofits with the 

Internal Revenue Service (IRS). 

34. Finally, the small entity described 

as a ‘‘small governmental jurisdiction’’ 

is defined generally as ‘‘governments of 

cities, counties, towns, townships, 

villages, school districts, or special 

districts, with a population of less than 

fifty thousand.’’ U.S. Census Bureau 

data from the 2012 Census of 

Governments indicate that there were 

90,056 local governmental jurisdictions 

consisting of general purpose 

governments and special purpose 

governments in the United States. Of 

this number, there were 37,132 General 

purpose governments (county, 

municipal and town or township) with 

populations of less than 50,000 and 

12,184 Special purpose governments 

(independent school districts and 

special districts) with populations of 

less than 50,000. The 2012 U.S. Census 

Bureau data for most types of 

governments in the local government 

category show that the majority of these 

governments have populations of less 

than 50,000. Based on this data the 

Commission estimates that at least 

49,316 local government jurisdictions 

fall in the category of ‘‘small 

governmental jurisdictions.’’ 

35. Small entities potentially affected 

by the reforms adopted herein include 

eligible non-profit and public health 

care providers and the eligible service 

providers offering them services, 

including telecommunications service 

providers, Internet Service Providers 

(ISPs), and vendors of the services and 

equipment used for dedicated 

broadband networks. 

a. Health Care Providers 

36. Offices of Physicians (except 

Mental Health Specialists). This U.S. 

industry comprises establishments of 

health practitioners having the degree of 

M.D. (Doctor of Medicine) or D.O. 

(Doctor of Osteopathy) primarily 

engaged in the independent practice of 

general or specialized medicine (except 

psychiatry or psychoanalysis) or 

surgery. These practitioners operate 

private or group practices in their own 

offices (e.g., centers, clinics) or in the 

facilities of others, such as hospitals or 

health maintenance organization (HMO) 

medical centers. The SBA has created a 

size standard for this industry, which is 

annual receipts of $11 million or less. 

According to 2012 U.S. Economic 

Census, 152,468 firms operated 

throughout the entire year in this 

industry. Of that number, 147,718 had 

annual receipts of less than $10 million, 

while 3,108 firms had annual receipts 

between $10 million and $24,999,999. 

Based on this data, the Commission 

concludes that a majority of firms 

operating in this industry are small 

under the applicable size standard. 

37. Offices of Physicians, Mental 

Health Specialists. The U.S. industry 

comprises establishments of health 

practitioners having the degree of M.D. 

(Doctor of Medicine) or D.O. (Doctor of 

Osteopathy) primarily engaged in the 

independent practice of psychiatry or 

psychoanalysis. These practitioners 

operate private or group practices in 

their own offices (e.g., centers, clinics) 

or in the facilities of others, such as 

hospitals or HMO medical centers. The 

SBA has established a size standard for 

businesses in this industry, which is 

annual receipts of $11 million dollars or 

less. The U.S. Economic Census 

indicates that 8,809 firms operated 

throughout the entire year in this 

industry. Of that number 8,791 had 

annual receipts of less than $10 million, 

while 13 firms had annual receipts 

between $10 million and $24,999,999. 

Based on this data, the Commission 

concludes that a majority of firms in this 

industry are small under the applicable 

standard. 

38. Offices of Dentists. This U.S. 

industry comprises establishments of 

health practitioners having the degree of 

D.M.D. (Doctor of Dental Medicine), 

D.D.S. (Doctor of Dental Surgery), or 

D.D.S. (Doctor of Dental Science) 

primarily engaged in the independent 

practice of general or specialized 

dentistry or dental surgery. These 

practitioners operate private or group 

practices in their own offices (e.g., 

centers, clinics) or in the facilities of 

others, such as hospitals or HMO 

medical centers. They can provide 

either comprehensive preventive, 

cosmetic, or emergency care, or 

specialize in a single field of dentistry. 

The SBA has established a size standard 


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for that industry of annual receipts of 

$7.5 million or less. The 2012 U.S. 

Economic Census indicates that 115,268 

firms operated in the dental industry 

throughout the entire year. Of that 

number 114,417 had annual receipts of 

less than $5 million, while 651 firms 

had annual receipts between $5 million 

and $9,999,999. Based on this data, the 

Commission concludes that a majority 

of business in the dental industry are 

small under the applicable standard. 

39. Offices of Chiropractors. This U.S. 

industry comprises establishments of 

health practitioners having the degree of 

D.C. (Doctor of Chiropractic) primarily 

engaged in the independent practice of 

chiropractic. These practitioners 

provide diagnostic and therapeutic 

treatment of neuromusculoskeletal and 

related disorders through the 

manipulation and adjustment of the 

spinal column and extremities, and 

operate private or group practices in 

their own offices (e.g., centers, clinics) 

or in the facilities of others, such as 

hospitals or HMO medical centers. The 

SBA has established a size standard for 

this industry, which is annual receipts 

of $7.5 million or less. The 2012 U.S. 

Economic Census statistics show that in 

2012, there were 33,940 firms operated 

throughout the entire year. Of that 

number 33,910 operated with annual 

receipts of less than $5 million per year, 

while 26 firms had annual receipts 

between $5 million and $9,999,999. 

Based on that data, the Commission 

concludes that a majority of 

chiropractors are small. 

40. Offices of Optometrists. This U.S. 

industry comprises establishments of 

health practitioners having the degree of 

O.D. (Doctor of Optometry) primarily 

engaged in the independent practice of 

optometry. These practitioners examine, 

diagnose, treat, and manage diseases 

and disorders of the visual system, the 

eye and associated structures as well as 

diagnose related systemic conditions. 

Offices of optometrists prescribe and/or 

provide eyeglasses, contact lenses, low 

vision aids, and vision therapy. They 

operate private or group practices in 

their own offices (e.g., centers, clinics) 

or in the facilities of others, such as 

hospitals or HMO medical centers, and 

may also provide the same services as 

opticians, such as selling and fitting 

prescription eyeglasses and contact 

lenses. The SBA has established a size 

standard for businesses operating in this 

industry, which is annual receipts of 

$7.5 million or less. The 2012 Economic 

Census indicates that 18,050 firms 

operated the entire year. Of that 

number, 17,951 had annual receipts of 

less than $5 million, while 70 firms had 

annual receipts between $5 million and 

$9,999,999. Based on this data, the 

Commission concludes that a majority 

of optometrists in this industry are 

small. 

41. Offices of Mental Health 

Practitioners (except Physicians). This 

U.S. industry comprises establishments 

of independent mental health 

practitioners (except physicians) 

primarily engaged in (1) the diagnosis 

and treatment of mental, emotional, and 

behavioral disorders and/or (2) the 

diagnosis and treatment of individual or 

group social dysfunction brought about 

by such causes as mental illness, 

alcohol and substance abuse, physical 

and emotional trauma, or stress. These 

practitioners operate private or group 

practices in their own offices (e.g., 

centers, clinics) or in the facilities of 

others, such as hospitals or HMO 

medical centers. The SBA has created a 

size standard for this industry, which is 

annual receipts of $7.5 million or less. 

The 2012 U.S. Economic Census 

indicates that 16,058 firms operated 

throughout the entire year. Of that 

number, 15,894 firms received annual 

receipts of less than $5 million, while 

111 firms had annual receipts between 

$5 million and $9,999,999. Based on 

this data, the Commission concludes 

that a majority of mental health 

practitioners who do not employ 

physicians are small. 

42. Offices of Physical, Occupational 

and Speech Therapists and 

Audiologists. This U.S. industry 

comprises establishments of 

independent health practitioners 

primarily engaged in one of the 

following: (1) Providing physical 

therapy services to patients who have 

impairments, functional limitations, 

disabilities, or changes in physical 

functions and health status resulting 

from injury, disease or other causes, or 

who require prevention, wellness or 

fitness services; (2) planning and 

administering educational, recreational, 

and social activities designed to help 

patients or individuals with disabilities, 

regain physical or mental functioning or 

to adapt to their disabilities; and (3) 

diagnosing and treating speech, 

language, or hearing problems. These 

practitioners operate private or group 

practices in their own offices (e.g., 

centers, clinics) or in the facilities of 

others, such as hospitals or HMO 

medical centers. The SBA has 

established a size standard for this 

industry, which is annual receipts of 

$7.5 million or less. The 2012 U.S. 

Economic Census indicates that 20,567 

firms in this industry operated 

throughout the entire year. Of this 

number, 20,047 had annual receipts of 

less than $5 million, while 270 firms 

had annual receipts between $5 million 

and $9,999,999. Based on this data, the 

Commission concludes that a majority 

of businesses in this industry are small. 

43. Offices of Podiatrists. This U.S. 

industry comprises establishments of 

health practitioners having the degree of 

D.P.M. (Doctor of Podiatric Medicine) 

primarily engaged in the independent 

practice of podiatry. These practitioners 

diagnose and treat diseases and 

deformities of the foot and operate 

private or group practices in their own 

offices (e.g., centers, clinics) or in the 

facilities of others, such as hospitals or 

HMO medical centers. The SBA has 

established a size standard for 

businesses in this industry, which is 

annual receipts of $7.5 million or less. 

The 2012 U.S. Economic Census 

indicates that 7,569 podiatry firms 

operated throughout the entire year. Of 

that number, 7,545 firms had annual 

receipts of less than $5 million, while 

22 firms had annual receipts between $5 

million and $9,999,999. Based on this 

data, the Commission concludes that a 

majority of firms in this industry are 

small. 

44. Offices of All Other Miscellaneous 

Health Practitioners. This U.S. industry 

comprises establishments of 

independent health practitioners 

(except physicians; dentists; 

chiropractors; optometrists; mental 

health specialists; physical, 

occupational, and speech therapists; 

audiologists; and podiatrists). These 

practitioners operate private or group 

practices in their own offices (e.g., 

centers, clinics) or in the facilities of 

others, such as hospitals or HMO 

medical centers. The SBA has 

established a size standard for this 

industry, which is annual receipts of 

$7.5 million or less. The 2012 U.S. 

Economic Census indicates that 11,460 

firms operated throughout the entire 

year. Of that number, 11,374 firms had 

annual receipts of less than $5 million, 

while 48 firms had annual receipts 

between $5 million and $9,999,999. 

Based on this data, the Commission 

concludes that the majority of firms in 

this industry are small. 

45. Family Planning Centers. This 

U.S. industry comprises establishments 

with medical staff primarily engaged in 

providing a range of family planning 

services on an outpatient basis, such as 

contraceptive services, genetic and 

prenatal counseling, voluntary 

sterilization, and therapeutic and 

medically induced termination of 

pregnancy. The SBA has established a 

size standard for this industry, which is 

annual receipts of $11 million or less. 

The 2012 Economic Census indicates 

that 1,286 firms in this industry 


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operated throughout the entire year. Of 

that number 1,237 had annual receipts 

of less than $10 million, while 36 firms 

had annual receipts between $10 

million and $24,999,999. Based on this 

data, the Commission concludes that the 

majority of firms in this industry are 

small. 

46. Outpatient Mental Health and 

Substance Abuse Centers. This U.S. 

industry comprises establishments with 

medical staff primarily engaged in 

providing outpatient services related to 

the diagnosis and treatment of mental 

health disorders and alcohol and other 

substance abuse. These establishments 

generally treat patients who do not 

require inpatient treatment. They may 

provide a counseling staff and 

information regarding a wide range of 

mental health and substance abuse 

issues and/or refer patients to more 

extensive treatment programs, if 

necessary. The SBA has established a 

size standard for this industry, which is 

$15 million or less in annual receipts. 

The 2012 U.S. Economic Census 

indicates that 4,446 firms operated 

throughout the entire year. Of that 

number, 4,069 had annual receipts of 

less than $10 million while 286 firms 

had annual receipts between $10 

million and $24,999,999. Based on this 

data, the Commission concludes that a 

majority of firms in this industry are 

small. 

47. HMO Medical Centers. This U.S. 

industry comprises establishments with 

physicians and other medical staff 

primarily engaged in providing a range 

of outpatient medical services to the 

HMO subscribers with a focus generally 

on primary health care. These 

establishments are owned by the HMO. 

Included in this industry are HMO 

establishments that both provide health 

care services and underwrite health and 

medical insurance policies. The SBA 

has established a size standard for this 

industry, which is $32.5 million or less 

in annual receipts. The 2012 U.S. 

Economic Census indicates that 14 firms 

in this industry operated throughout the 

entire year. Of that number, 5 firms had 

annual receipts of less than $25 million, 

while 1 firm had annual receipts 

between $25 million and $99,999,999. 

Based on this data, the Commission 

concludes that approximately one-third 

of the firms in this industry are small. 

48. Freestanding Ambulatory Surgical 

and Emergency Centers. This U.S. 

industry comprises establishments with 

physicians and other medical staff 

primarily engaged in (1) providing 

surgical services (e.g., orthoscopic and 

cataract surgery) on an outpatient basis 

or (2) providing emergency care services 

(e.g., setting broken bones, treating 

lacerations, or tending to patients 

suffering injuries as a result of 

accidents, trauma, or medical 

conditions necessitating immediate 

medical care) on an outpatient basis. 

Outpatient surgical establishments have 

specialized facilities, such as operating 

and recovery rooms, and specialized 

equipment, such as anesthetic or X-ray 

equipment. The SBA has established a 

size standard for this industry, which is 

annual receipts of $15 million or less. 

The 2012 U.S. Economic Census 

indicates that 3,595 firms in this 

industry operated throughout the entire 

year. Of that number, 3,222 firms had 

annual receipts of less than $10 million, 

while 289 firms had annual receipts 

between $10 million and $24,999,999. 

Based on this data, the Commission 

concludes that a majority of firms in this 

industry are small. 

49. All Other Outpatient Care Centers. 

This U.S. industry comprises 

establishments with medical staff 

primarily engaged in providing general 

or specialized outpatient care (except 

family planning centers, outpatient 

mental health and substance abuse 

centers, HMO medical centers, kidney 

dialysis centers, and freestanding 

ambulatory surgical and emergency 

centers). Centers or clinics of health 

practitioners with different degrees from 

more than one industry practicing 

within the same establishment (i.e., 

Doctor of Medicine and Doctor of Dental 

Medicine) are included in this industry. 

The SBA has established a size standard 

for this industry, which is annual 

receipts of $20.5 million or less. The 

2012 U.S. Economic Census indicates 

that 4,903 firms operated in this 

industry throughout the entire year. Of 

this number, 4,269 firms had annual 

receipts of less than $10 million, while 

389 firms had annual receipts between 

$10 million and $24,999,999. Based on 

this data, the Commission concludes 

that a majority of firms in this industry 

are small. 

50. Blood and Organ Banks. This U.S. 

industry comprises establishments 

primarily engaged in collecting, storing, 

and distributing blood and blood 

products and storing and distributing 

body organs. The SBA has established a 

size standard for this industry, which is 

annual receipts of $32.5 million or less. 

The 2012 U.S. Economic Census 

indicates that 314 firms operated in this 

industry throughout the entire year. Of 

that number, 235 operated with annual 

receipts of less than $25 million, while 

41 firms had annual receipts between 

$25 million and $49,999,999. Based on 

this data, the Commission concludes 

that approximately three-quarters of 

firms that operate in this industry are 

small. 

51. All Other Miscellaneous 

Ambulatory Health Care Services. This 

U.S. industry comprises establishments 

primarily engaged in providing 

ambulatory health care services (except 

offices of physicians, dentists, and other 

health practitioners; outpatient care 

centers; medical and diagnostic 

laboratories; home health care 

providers; ambulances; and blood and 

organ banks). The SBA has established 

a size standard for this industry, which 

is annual receipts of $15 million or less. 

The 2012 U.S. Economic Census 

indicates that 2,429 firms operated in 

this industry throughout the entire year. 

Of that number, 2,318 had annual 

receipts of less than $10 million, while 

56 firms had annual receipts between 

$10 million and $24,999,999. Based on 

this data, the Commission concludes 

that a majority of the firms in this 

industry are small. 

52. Medical Laboratories. This U.S. 

industry comprises establishments 

known as medical laboratories primarily 

engaged in providing analytic or 

diagnostic services, including body 

fluid analysis, generally to the medical 

profession or to the patient on referral 

from a health practitioner. The SBA has 

established a size standard for this 

industry, which is annual receipts of 

$32.5 million or less. The 2012 U.S. 

Economic Census indicates that 2,599 

firms operated in this industry 

throughout the entire year. Of this 

number, 2,465 had annual receipts of 

less than $25 million, while 60 firms 

had annual receipts between $25 

million and $49,999,999. Based on this 

data, the Commission concludes that a 

majority of firms that operate in this 

industry are small. 

53. Diagnostic Imaging Centers. This 

U.S. industry comprises establishments 

known as diagnostic imaging centers 

primarily engaged in producing images 

of the patient generally on referral from 

a health practitioner. The SBA has 

established size standard for this 

industry, which is annual receipts of 

$15 million or less. The 2012 U.S. 

Economic Census indicates that 4,209 

firms operated in this industry 

throughout the entire year. Of that 

number, 3,876 firms had annual receipts 

of less than $10 million, while 228 firms 

had annual receipts between $10 

million and $24,999,999. Based on this 

data, the Commission concludes that a 

majority of firms that operate in this 

industry are small. 

54. Home Health Care Services. This 

U.S. industry comprises establishments 

primarily engaged in providing skilled 

nursing services in the home, along with 


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a range of the following: Personal care 

services; homemaker and companion 

services; physical therapy; medical 

social services; medications; medical 

equipment and supplies; counseling; 24- 

hour home care; occupation and 

vocational therapy; dietary and 

nutritional services; speech therapy; 

audiology; and high-tech care, such as 

intravenous therapy. The SBA has 

established a size standard for this 

industry, which is annual receipts of 

$15 million or less. The 2012 U.S. 

Economic Census indicates that 17,770 

firms operated in this industry 

throughout the entire year. Of that 

number, 16,822 had annual receipts of 

less than $10 million, while 590 firms 

had annual receipts between $10 

million and $24,999,999. Based on this 

data, the Commission concludes that a 

majority of firms that operate in this 

industry are small. 

55. Ambulance Services. This U.S. 

industry comprises establishments 

primarily engaged in providing 

transportation of patients by ground or 

air, along with medical care. These 

services are often provided during a 

medical emergency but are not 

restricted to emergencies. The vehicles 

are equipped with lifesaving equipment 

operated by medically trained 

personnel. The SBA has established a 

size standard for this industry, which is 

annual receipts of $15 million or less. 

The 2012 U.S. Economic Census 

indicates that 2,984 firms operated in 

this industry throughout the entire year. 

Of that number, 2,926 had annual 

receipts of less than $15 million, while 

133 firms had annual receipts between 

$10 million and $24,999,999. Based on 

this data, the Commission concludes 

that a majority of firms in this industry 

are small. 

56. Kidney Dialysis Centers. This U.S. 

industry comprises establishments with 

medical staff primarily engaged in 

providing outpatient kidney or renal 

dialysis services. The SBA has 

established assize standard for this 

industry, which is annual receipts of 

$38.5 million or less. The 2012 U.S. 

Economic Census indicates that 396 

firms operated in this industry 

throughout the entire year. Of that 

number, 379 had annual receipts of less 

than $25 million, while 7 firms had 

annual receipts between $25 million 

and $49,999,999. Based on this data, the 

Commission concludes that a majority 

of firms in this industry are small. 

57. General Medical and Surgical 

Hospitals. This U.S. industry comprises 

establishments known and licensed as 

general medical and surgical hospitals 

primarily engaged in providing 

diagnostic and medical treatment (both 

surgical and nonsurgical) to inpatients 

with any of a wide variety of medical 

conditions. These establishments 

maintain inpatient beds and provide 

patients with food services that meet 

their nutritional requirements. These 

hospitals have an organized staff of 

physicians and other medical staff to 

provide patient care services. These 

establishments usually provide other 

services, such as outpatient services, 

anatomical pathology services, 

diagnostic X-ray services, clinical 

laboratory services, operating room 

services for a variety of procedures, and 

pharmacy services. The SBA has 

established a size standard for this 

industry, which is annual receipts of 

$38.5 million or less. The 2012 U.S. 

Economic Census indicates that 2,800 

firms operated in this industry 

throughout the entire year. Of that 

number, 877 has annual receipts of less 

than $25 million, while 400 firms had 

annual receipts between $25 million 

and $49,999,999. Based on this data, the 

Commission concludes that 

approximately one-quarter of firms in 

this industry are small. 

58. Psychiatric and Substance Abuse 

Hospitals. This U.S. industry comprises 

establishments known and licensed as 

psychiatric and substance abuse 

hospitals primarily engaged in 

providing diagnostic, medical treatment, 

and monitoring services for inpatients 

who suffer from mental illness or 

substance abuse disorders. The 

treatment often requires an extended 

stay in the hospital. These 

establishments maintain inpatient beds 

and provide patients with food services 

that meet their nutritional requirements. 

They have an organized staff of 

physicians and other medical staff to 

provide patient care services. 

Psychiatric, psychological, and social 

work services are available at the 

facility. These hospitals usually provide 

other services, such as outpatient 

services, clinical laboratory services, 

diagnostic X-ray services, and 

electroencephalograph services. The 

SBA has established a size standard for 

this industry, which is annual receipts 

of $38.5 million or less. The 2012 U.S. 

Economic Census indicates that 404 

firms operated in this industry 

throughout the entire year. Of that 

number, 185 had annual receipts of less 

than $25 million, while 107 firms had 

annual receipts between $25 million 

and $49,999,999. Based on this data, the 

Commission concludes that more than 

one-half of the firms in this industry are 

small. 

59. Specialty (Except Psychiatric and 

Substance Abuse) Hospitals. This U.S. 

industry consists of establishments 

known and licensed as specialty 

hospitals primarily engaged in 

providing diagnostic, and medical 

treatment to inpatients with a specific 

type of disease or medical condition 

(except psychiatric or substance abuse). 

Hospitals providing long-term care for 

the chronically ill and hospitals 

providing rehabilitation, restorative, and 

adjustive services to physically 

challenged or disabled people are 

included in this industry. These 

establishments maintain inpatient beds 

and provide patients with food services 

that meet their nutritional requirements. 

They have an organized staff of 

physicians and other medical staff to 

provide patient care services. These 

hospitals may provide other services, 

such as outpatient services, diagnostic 

X-ray services, clinical laboratory 

services, operating room services, 

physical therapy services, educational 

and vocational services, and 

psychological and social work services. 

The SBA has established a size standard 

for this industry, which is annual 

receipts of $38.5 million or less. The 

2012 U.S. Economic Census indicates 

that 346 firms operated in this industry 

throughout the entire year. Of that 

number, 146 firms had annual receipts 

of less than $25 million, while 79 firms 

had annual receipts between $25 

million and $49,999,999. Based on this 

data, the Commission conclude that 

more than one-half of the firms in this 

industry are small. 

60. Emergency and Other Relief 

Services. This industry comprises 

establishments primarily engaged in 

providing food, shelter, clothing, 

medical relief, resettlement, and 

counseling to victims of domestic or 

international disasters or conflicts (e.g., 

wars). The SBA has established a size 

standard for this industry, which is 

annual receipts of $32.5 million or less. 

The 2012 U.S. Economic Census 

indicates that 541 firms operated in this 

industry throughout the entire year. Of 

that number, 509 had annual receipts of 

less than $25 million, while 7 firms had 

annual receipts between $25 million 

and $49,999,999. Based on this data, the 

Commission concludes that a majority 

of firms in this industry are small. 

b. Providers of Telecommunications and 

Other Services 

i. Telecommunications Service 

Providers 

61. Incumbent Local Exchange 

Carriers (LECs). Neither the Commission 

nor the SBA has developed a small 

business size standard specifically for 

incumbent local exchange services. The 

closest applicable NAICS Code category 


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is Wired Telecommunications Carriers 

and under the SBA size standard, such 

a business is small if it has 1,500 or 

fewer employees. U.S. Census Bureau 

data for 2012 indicate that 3,117 firms 

operated during that year. Of this total, 

3,083 operated with fewer than 1,000 

employees. Consequently, the 

Commission estimates that most 

providers of incumbent local exchange 

service are small businesses that may be 

affected by our actions. According to 

Commission data, one thousand three 

hundred and seven (1,307) Incumbent 

Local Exchange Carriers reported that 

they were incumbent local exchange 

service providers. Of this total, an 

estimated 1,006 have 1,500 or fewer 

employees. Thus, using the SBA’s size 

standard the majority of Incumbent 

LECs can be considered small entities. 

62. Interexchange Carriers (IXCs). 

Neither the Commission nor the SBA 

has developed a definition of small 

entities specifically applicable to 

providers of IXCs. The closest NAICS 

Code category is Wired 

Telecommunications Carriers and the 

applicable size standard under SBA 

rules consists of all such companies 

having 1,500 or fewer employees. U.S. 

Census Bureau data for 2012 indicate 

that 3,117 firms operated during that 

year. Of that number, 3,083 operated 

with fewer than 1,000 employees. 

According to internally developed 

Commission data, 359 companies 

reported that their primary 

telecommunications service activity was 

the provision of interexchange services. 

Of this total, an estimated 317 have 

1,500 or fewer employees. 

Consequently, the Commission 

estimates that the majority of 

interexchange service providers that 

may be affected are small entities. 

63. Competitive Access Providers. 

Neither the Commission nor the SBA 

has developed a definition of small 

entities specifically applicable to 

competitive access services providers 

(CAPs). The closest applicable 

definition under the SBA rules is Wired 

Telecommunications Carriers and under 

the size standard, such a business is 

small if it has 1,500 or fewer employees. 

U.S. Census Bureau data for 2012 

indicate that 3,117 firms operated 

during that year. Of that number, 3,083 

operated with fewer than 1,000 

employees. Consequently, the 

Commission estimates that most 

competitive access providers are small 

businesses that may be affected by these 

actions. According to Commission data 

the 2010 Trends in Telephone Report, 

dated September 2010, 1,442 CAPs and 

competitive local exchange carriers 

(competitive LECs) reported that they 

were engaged in the provision of 

competitive local exchange services. Of 

these 1,442 CAPs and competitive LECs, 

an estimated 1,256 have 1,500 or few 

employees and 186 have more than 

1,500 employees. Consequently, the 

Commission estimates that most 

providers of competitive exchange 

services are small businesses. 

64. Wired Telecommunications 

Carriers. The U.S. Census Bureau 

defines this industry as ‘‘establishments 

primarily engaged in operating and/or 

providing access to transmission 

facilities and infrastructure that they 

own and/or lease for the transmission of 

voice, data, text, sound, and video using 

wired communications networks. 

Transmission facilities may be based on 

a single technology or a combination of 

technologies. Establishments in this 

industry use the wired 

telecommunications network facilities 

that they operate to provide a variety of 

services, such as wired telephony 

services, including VoIP services, wired 

(cable) audio and video programming 

distribution, and wired broadband 

internet services. By exception, 

establishments providing satellite 

television distribution services using 

facilities and infrastructure that they 

operate are included in this industry.’’ 

The SBA has developed a small 

business size standard for Wired 

Telecommunications Carriers, which 

consists of all such companies having 

1,500 or fewer employees. U.S. Census 

data for 2012 show that there were 3,117 

firms that operated that year. Of this 

total, 3,083 operated with fewer than 

1,000 employees. Thus, under this size 

standard, the majority of firms in this 

industry can be considered small. 

65. Wireless Telecommunications 

Carriers (except Satellite). This industry 

comprises establishments engaged in 

operating and maintaining switching 

and transmission facilities to provide 

communications via the airwaves. 

Establishments in this industry have 

spectrum licenses and provide services 

using that spectrum, such as cellular 

services, paging services, wireless 

internet access, and wireless video 

services. The appropriate size standard 

under SBA rules is that such a business 

is small if it has 1,500 or fewer 

employees. For this industry, U.S. 

Census Bureau data for 2012 shows that 

there were 967 firms that operated for 

the entire year. Of this total, 955 firms 

had employment of 999 or fewer 

employees and 12 had employment of 

1,000 employees or more. Thus, under 

this category and the associated size 

standard, the Commission estimates that 

the majority of wireless 

telecommunications carriers (except 

satellite) are small entities. 

66. The Commission’s own data— 

available in its Universal Licensing 

System—indicate that, as of October 25, 

2016, there are 280 Cellular licensees 

that will be affected by these actions. 

The Commission does not know how 

many of these licensees are small, as the 

Commission does not collect that 

information for these types of entities. 

Similarly, according to internally 

developed Commission data, 413 

carriers reported that they were engaged 

in the provision of wireless telephony, 

including cellular service, Personal 

Communications Service (PCS), and 

Specialized Mobile Radio (SMR) 

Telephony services. Of this total, an 

estimated 261 have 1,500 or fewer 

employees, and 152 have more than 

1,500 employees. Thus, using available 

data, the Commission estimates that the 

majority of wireless firms can be 

considered small. 

67. Wireless Telephony. Wireless 

telephony includes cellular, personal 

communications services, and 

specialized mobile radio telephony 

carriers. The closest applicable SBA 

category is Wireless 

Telecommunications Carriers (except 

Satellite) and the appropriate size 

standard for this category under the 

SBA rules is that such a business is 

small if it has 1,500 or fewer employees. 

For this industry, U.S. Census Bureau 

data for 2012 show that there were 967 

firms that operated for the entire year. 

Of this total, 955 firms had fewer than 

1,000 employees and 12 firms has 1,000 

employees or more. Thus, under this 

category and the associated size 

standard, the Commission estimates that 

a majority of these entities can be 

considered small. According to 

Commission data, 413 carriers reported 

that they were engaged in wireless 

telephony. Of these, an estimated 261 

have 1,500 or fewer employees and 152 

have more than 1,500 employees. 

Therefore, more than half of these 

entities can be considered small. 

68. Satellite Telecommunications. 

This category comprises firms 

‘‘primarily engaged in providing 

telecommunications services to other 

establishments in the 

telecommunications and broadcasting 

industries by forwarding and receiving 

communications signals via a system of 

satellites or reselling satellite 

telecommunications.’’ Satellite 

telecommunications service providers 

include satellite and earth station 

operators. The category has a small 

business size standard of $32.5 million 

or less in average annual receipts, under 

SBA rules. For this category, U.S. 


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30582 Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Rules and Regulations 

Census Bureau data for 2012 shows that 

there were a total of 333 firms that 

operated for the entire year. Of this 

total, 299 firms had annual receipts of 

less than $25 million. Consequently, the 

Commission estimates that the majority 

of satellite telecommunications 

providers are small entities. 

69. All Other Telecommunications. 

The ‘‘All Other Telecommunications’’ 

category is comprised of establishments 

that are primarily engaged in providing 

specialized telecommunications 

services, such as satellite tracking, 

communications telemetry, and radar 

station operation. This industry also 

includes establishments primarily 

engaged in providing satellite terminal 

stations and associated facilities 

connected with one or more terrestrial 

systems and capable of transmitting 

telecommunications to, and receiving 

telecommunications from, satellite 

systems. Establishments providing 

internet services or voice over internet 

protocol (VoIP) services via clientsupplied telecommunications 

connections are also included in this 

industry. The SBA has developed a 

small business size standard for ‘‘All 

Other Telecommunications,’’ which 

consists of all such firms with gross 

annual receipts of $32.5 million or less. 

For this category, U.S. Census Bureau 

data for 2012 show that there were 1,442 

firms that operated for the entire year. 

Of these firms, a total of 1,400 had gross 

annual receipts of less than $25 million 

and 42 firms had gross annual receipts 

of $25 million to $49, 999,999. Thus, the 

Commission estimates that a majority of 

‘‘All Other Telecommunications’’ firms 

potentially affected by our action can be 

considered small. 

ii. Internet Service Providers 

70. Internet Service Providers 

(Broadband). Broadband internet 

service providers include wired (e.g., 

cable, DSL) and VoIP service providers 

using their own operated wired 

telecommunications infrastructure fall 

in the category of Wired 

Telecommunication Carriers. Wired 

Telecommunications Carriers are 

comprised of establishments primarily 

engaged in operating and/or providing 

access to transmission facilities and 

infrastructure that they own and/or 

lease for the transmission of voice, data, 

text, sound, and video using wired 

telecommunications networks. 

Transmission facilities may be based on 

a single technology or a combination of 

technologies. The SBA size standard for 

this category classifies a business as 

small if it has 1,500 or fewer employees. 

U.S. Census Bureau data for 2012 show 

that there were 3,117 firms that operated 

that year. Of this total, 3,083 operated 

with fewer than 1,000 employees. 

Consequently, under this size standard, 

the majority of firms in this industry can 

be considered small. 

71. Internet Service Providers (NonBroadband). Internet access service 

providers such as Dial-up internet 

service providers, VoIP service 

providers using client-supplied 

telecommunications connections and 

internet service providers using clientsupplied telecommunications 

connections (e.g., dial-up ISPs) fall in 

the category of All Other 

Telecommunications. The SBA has 

developed a small business size 

standard for All Other 

Telecommunications, which consists of 

all such firms with gross annual receipts 

of $32.5 million or less. For this 

category, U.S. Census Bureau data for 

2012 show that there were 1,442 firms 

that operated for the entire year. Of 

these firms, a total of 1,400 had gross 

annual receipts of less than $25 million. 

Consequently, under this size standard, 

a majority of firms in this industry can 

be considered small. 

iii. Vendors and Equipment 

Manufacturers 

72. Vendors of Infrastructure 

Development or ‘‘Network Buildout.’’ 

The Commission has not developed a 

small business size standard specifically 

directed toward manufacturers of 

network facilities. There are two 

applicable SBA categories in which 

manufacturers of network facilities 

could fall and each have different size 

standards under the SBA rules. The 

SBA categories are ‘‘Radio and 

Television Broadcasting and Wireless 

Communications Equipment’’ with a 

size standard of 1,250 employees or less 

and ‘‘Other Communications Equipment 

Manufacturing’’ with a size standard of 

750 employees or less.’’ U.S. Census 

Bureau data for 2012 show that for 

Radio and Television Broadcasting and 

Wireless Communications Equipment 

firms 841 establishments operated for 

the entire year. Of that number, 828 

establishments operated with fewer than 

1,000 employees, 7 establishments 

operated with between 1,000 and 2,499 

employees and 6 establishments 

operated with 2,500 or more employees. 

For Other Communications Equipment 

Manufacturing, U.S. Census Bureau data 

for 2012 show that 383 establishments 

operated for the year. Of that number, 

379 firms operated with fewer than 500 

employees and 4 had 500 to 999 

employees. Based on this data, the 

Commission concludes that the majority 

of Vendors of Infrastructure 

Development or ‘‘Network Buildout’’ are 

small. 

73. Telephone Apparatus 

Manufacturing. This industry comprises 

establishments primarily engaged in 

manufacturing wire telephone and data 

communications equipment. These 

products may be standalone or boardlevel components of a larger system. 

Examples of products made by these 

establishments are central office 

switching equipment, cordless 

telephones (except cellular), PBX 

equipment, telephones, telephone 

answering machines, LAN modems, 

multi-user modems, and other data 

communications equipment, such as 

bridges, routers, and gateways.’’ The 

SBA size standard for Telephone 

Apparatus Manufacturing is all such 

firms having 1,250 or fewer employees. 

According to U.S. Census Bureau data 

for 2012, there were a total of 266 

establishments in this category that 

operated for the entire year. Of this 

total, 262 had employment of under 

1,000, and an additional 4 had 

employment of 1,000 to 2,499. Thus, 

under this size standard, the majority of 

firms can be considered small. 

74. Radio and Television 

Broadcasting and Wireless 

Communications Equipment 

Manufacturing. This industry comprises 

establishments primarily engaged in 

manufacturing radio and television 

broadcast and wireless communications 

equipment. Examples of products made 

by these establishments are: 

Transmitting and receiving antennas, 

cable television equipment, GPS 

equipment, pagers, cellular phones, 

mobile communications equipment, and 

radio and television studio and 

broadcasting equipment. The SBA has 

established a small business size 

standard for this industry of 1,250 

employees or less. U.S. Census Bureau 

data for 2012 show that 841 

establishments operated in this industry 

in that year. Of that number, 828 

establishments operated with fewer than 

1,000 employees, 7 establishments 

operated with between 1,000 and 2,499 

employees and 6 establishments 

operated with 2,500 or more employees. 

Based on this data, the Commission 

concludes that a majority of 

manufacturers in this industry are 

small. 

75. Other Communications 

Equipment Manufacturing. This 

industry comprises establishments 

primarily engaged in manufacturing 

communications equipment (except 

telephone apparatus, and radio and 

television broadcast, and wireless 

communications equipment). Examples 

of such manufacturing include fire 


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detection and alarm systems 

manufacturing, Intercom systems and 

equipment manufacturing, and signals 

(e.g., highway, pedestrian, railway, 

traffic) manufacturing. The SBA has 

established a size for this industry as all 

such firms having 750 or fewer 

employees. U.S. Census Bureau data for 

2012 show that 383 establishments 

operated in that year. Of that number, 

379 operated with fewer than 500 

employees and 4 had 500 to 999 

employees. Based on this data, the 

Commission concludes that the majority 

of Other Communications Equipment 

Manufacturers are small. 

5. Description of Projected Reporting, 

Recordkeeping, and Other Compliance 

Requirements for Small Entities 

76. There are no new or different 

reporting, recordkeeping, or other 

compliance requirements adopted in 

this R&O that would likely financially 

impact either large or small entities, 

including health care providers and 

service providers. 

6. Steps Taken To Minimize the 

Significant Economic Impact on Small 

Entities, and Significant Alternatives 

Considered 

77. The RFA requires an agency to 

describe any significant, specifically 

small business, alternatives that it has 

considered in reaching its proposed 

approach, which may include the 

following four alternatives (among 

others): ‘‘(1) The establishment of 

differing compliance or reporting 

requirements or timetables that take into 

account the resources available to small 

entities; (2) the clarification, 

consolidation, or simplification of 

compliance and reporting requirements 

under the rule for such small entities; 

(3) the use of performance rather than 

design standards; and (4) an exemption 

from coverage of the rule, or any part 

thereof, for such small entities.’’ 

78. In the R&O, the Commission 

increases available funding for all 

eligible RHC Program entities including 

small entities. Specifically, the 

Commission increases RHC Program 

support, and thereby increases support 

available for rural, mostly small, health 

care providers, by: (1) Increasing the 

RHC Program support cap to $571 

million to apply to FY 2017; (2) 

prospectively increasing the $571 

million RHC Program support cap via 

inflation using the Gross Domestic Price 

Chain-type Price Index (GDP–CPI) in FY 

2018 and beyond; and (3) ‘‘carrying 

forward’’ unused funds committed in 

one funding year into subsequent 

funding years. 

79. In the R&O, the Commission 

carefully balanced the significant 

financial hardship faced by rural health 

care providers due to the otherwise 

scarcity of funding and the public 

health consequences that could result 

from lack of broadband service with the 

increase in funding needed to meet the 

new cap. The Commission considered 

and rejected arguments to double the 

cap or to increase it beyond the $571 

million adopted in the R&O. The 

increased cap, indexed to inflation, and 

the carry forward of unused funds will 

make more funding available to eligible 

health care providers including small 

entities, while minimizing the amount 

of funds that are needed to be collected. 

No commenters proposed significant 

small business alternatives. 

7. Report to Congress 

80. The Commission will send a copy 

of the R&O, including this FRFA, in a 

report to be sent to Congress pursuant 

to the Congressional Review Act. In 

addition, the Commission will send a 

copy of the R&O, including this FRFA, 

to the Chief Counsel for Advocacy of the 

SBA. A copy of the R&O and FRFA (or 

summaries thereof) will also be 

published in the Federal Register. 

E. Effective Date of Report and Order 

81. The Commission finds good cause 

to make the rule changes herein 

effective June 29, 2018, pursuant to 

section 553(d) of the Administrative 

Procedure Act. Agencies determining 

whether there is good cause to make a 

new rule or rule revision take effect less 

than 30 days after Federal Register 

publication must balance the necessity 

for immediate implementation against 

principles of fundamental fairness that 

require that all affected persons be 

afforded a reasonable time to prepare for 

the effective date of the new rule. 

Making these rule changes effective June 

29, 2018 enables eligible health care 

providers to benefit from the increased 

funding cap for FY 2017, thereby 

avoiding the financial hardship caused 

by the proration of their funding 

commitments and the potential public 

health crises that could result. As noted 

earlier, the current reduction in funding 

may impede the ability of rural health 

care providers to provide essential 

health care services in their rural 

communities, or require them to scale 

back service offerings or quality, and 

these consequences could be 

particularly severe for small, rural 

health care providers with limited 

budgets. 

82. Further, making these rule 

changes effective upon publication will 

not burden contributors or RHC Program 

participants. As a practical matter, 

contributors pass through their 

contribution obligations to their end 

users by a line item on the end user’s 

invoice, which they update quarterly 

based on the contribution factor. The 

additional funding required by the R&O 

to be applied to FY 2017 will be 

collected over the next two quarters in 

accordance with our regular course of 

business for calculating and announcing 

the quarterly contribution factor, thus 

requiring no additional or different 

administrative burden on contributors. 

No additional time is needed for 

affected parties to prepare for the rules’ 

effectiveness because USAC and 

interested parties have already applied 

for and processed the requests for 

funding for the current RHC Program 

year (FY 2017). Additionally, the rule 

change to increase the funding cap 

enables eligible health care providers to 

benefit from increased funding in the 

current funding year and does not oblige 

them to take any particular action. The 

rule changes that index the funding cap 

to inflation and carry forward unused 

funds do not impose any additional 

requirement on RHC Program 

participants and will be implemented 

by Commission staff and USAC during 

FY 2018. Thus, the Commission finds 

good cause to make these rule changes 

effective June 29, 2018. 

IV. Ordering Clauses 

83. Accordingly, it is ordered that, 

pursuant to sections 4(i) through (j), 

201(b), and 254 of the Communications 

Act of 1934, as amended, 47 U.S.C. 

154(i) through (j), 201(b), 254, the 

Report and Order is adopted. 

84. It is furthered ordered that part 54 

of the Commission’s rules, 47 CFR part 

54, is amended, and such rules shall 

become effective June 29, 2018. 

85. It is further ordered that, pursuant 

to the authority contained in sections 1 

through 4 and 254 of the 

Communications Act of 1934, as 

amended, 47 U.S.C. 151 through 154 

and 254, and pursuant to § 1.3 and of 

the Commission’s rules, 47 CFR 1.3, that 

§ 54.675 of the Commission’s rules, 47 

CFR 54.675, is waived to the extent 

provided herein. 

86. It is further ordered that, pursuant 

to the authority contained in sections 1 

through 4 and 254 of the 

Communications Act of 1934, as 

amended, 47 U.S.C. 151 through 154 

and 254, the petitions for waiver filed 

by Schools, Health, and Libraries 

Broadband Coalition filed on April 3, 

2018, Advanced Data Solutions (on 

behalf of Frontier Community Services, 

Central Peninsula Hospital, Cordova 

Community Medical Center, Camai 


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30584 Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Rules and Regulations 

Community Health Center, IHS/ABQ 

Alamo Health Center and Kenaitze 

Indian Tribe) filed on May 15, 2018, 

Bristol Bay Area Health Corporation 

filed on April 2, 2018, and Council of 

Athabascan Tribal Government filed on 

April 9, 2018 are dismissed as moot. 

87. It is further ordered that, pursuant 

to 5 U.S.C. 801(a)(1)(A), the Commission 

shall send a copy of the Report and 

Order to Congress and to the 

Government Accountability Office 

pursuant to the Congressional Review 

Act. 

88. It is further ordered that the 

Commission’s Consumer and 

Governmental Affairs Bureau, Reference 

Information Center, shall send a copy of 

the Report and Order, including the 

Final Regulatory Flexibility Analysis, to 

the Chief Counsel for Advocacy of the 

Small Business Administration. 

Federal Communications Commission. 

Katura Jackson, 

Federal Register Liaison Officer, Office of the 

Secretary. 

List of Subjects in 47 CFR Part 54 

Communications common carriers, 

Health facilities, internet, 

Telecommunications. 

Final Rule 

For the reasons discussed in the 

preamble, the Federal Communications 

Commission amends 47 CFR part 54 as 

follows: 

PART 54—UNIVERSAL SERVICE 

■ 1. The authority citation for part 54 

continues to read as follows: 

Authority: 47 U.S.C. 151, 154(i), 155, 201, 

205, 214, 219, 220, 254, 303(r), 403, and 1302 

unless otherwise noted. 

■ 2. Amend § 54.675 by revising 

paragraph (a) to read as follows: 

§ 54.675 Cap. 

(a) Amount of the annual cap. The 

aggregate annual cap on federal 

universal service support for health care 

providers shall be $571 million per 

funding year, of which up to $150 

million per funding year will be 

available to support upfront payments 

and multi-year commitments under the 

Healthcare Connect Fund. 

(1) Inflation increase. In funding year 

2018 and the subsequent funding years, 

the $571 million cap on federal 

universal support in the Rural Health 

Care Program shall be automatically 

increased annually to take into account 

increases in the rate of inflation as 

calculated in paragraph (a)(2) of this 

section. 

(2) Increase calculation. To measure 

increases in the rate of inflation for the 

purposes of this paragraph (a), the 

Commission shall use the Gross 

Domestic Product Chain-type Price 

Index (GDP–CPI). To compute the 

annual increase as required by this 

paragraph (a), the percentage increase in 

the GDP–CPI from the previous year 

will be used. For instance, the annual 

increase in the GDP–CPI from 2017 to 

2018 would be used for the 2018 

funding year. The increase shall be 

rounded to the nearest 0.1 percent by 

rounding 0.05 percent and above to the 

next higher 0.1 percent and otherwise 

rounding to the next lower 0.1 percent. 

This percentage increase shall be added 

to the amount of the annual funding cap 

from the previous funding year. If the 

yearly average GDP–CPI decreases or 

stays the same, the annual funding cap 

shall remain the same as the previous 

year. 

(3) Public notice. When the 

calculation of the yearly average GDP– 

CPI is determined, the Wireline 

Competition Bureau shall publish a 

public notice in the Federal Register 

within 60 days announcing any increase 

of the annual funding cap based on the 

rate of inflation. 

(4) Amount of unused funds. All 

funds collected that are unused shall be 

carried forward into subsequent funding 

years for use in the Rural Health Care 

Program in accordance with the public 

interest and notwithstanding the annual 

cap. The Administrator shall report to 

the Commission, on a quarterly basis, 

funding that is unused from prior years 

of the Rural Health Care Program. 

(5) Application of unused funds. On 

an annual basis, in the second quarter 

of each calendar year, all funds that are 

collected and that are unused from prior 

years shall be available for use in the 

next full funding year of the Rural 

Health Care Program in accordance with 

the public interest and notwithstanding 

the annual cap as described in this 

paragraph (a). 

* * * * * 

[FR Doc. 2018–14073 Filed 6–28–18; 8:45 am] 

BILLING CODE 6712–01–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 215, 217, and 243 

[Docket DARS–2016–0026] 

RIN 0750–AI99 

Defense Federal Acquisition 

Regulation Supplement: Undefinitized 

Contract Action Definitization (DFARS 

Case 2015–D024) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD is issuing a final rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to provide a more transparent 

means of documenting the impact of 

costs incurred during the undefinitized 

period of an undefinitized contract 

action on allowable profit. 

DATES: Effective June 29, 2018. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Mark Gomersall, telephone 571–372– 

6176. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD published a proposed rule in the 

Federal Register at 81 FR 73007 on 

October 21, 2016, to amend the DFARS 

to provide a more transparent means of 

documenting the impact of costs 

incurred during the undefinitized 

period of an undefinitized contract 

action (UCA), and to recognize when 

contractors demonstrate efficient 

management and internal cost control 

systems through the submittal of a 

timely, auditable proposal in 

furtherance of definitization of a UCA. 

In some cases, DoD contracting 

personnel have not documented their 

consideration of the reduced risk to the 

contractor of costs incurred during the 

undefinitized period of a UCA. While 

such costs generally present very little 

risk to the contractor, the contracting 

officer should consider the reasons for 

any delays in definitization in making 

their determination of the appropriate 

assigned value for contract type risk. 

II. Discussion and Analysis 

Two respondents submitted public 

comments in response to the proposed 

rule. DoD reviewed the public 

comments in the development of this 

final rule. An analysis of the comments 

is provided as follows: 


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