Federal Register / Vol. 80, No. 57 / Wednesday, March 25, 2015 / Proposed Rules 15715 

To implement these provisions, 

Maryland amended Regulation .01 

under COMAR 26.11.01 (General 

Administrative Provisions) and 

Regulations .01 and .02 under COMAR 

26.11.17 (Nonattainment Provisions for 

Major New Sources and Major 

Modifications). The general definitions 

at COMAR 26.11.01.01 were amended to 

add definitions of ‘‘PM2.5’’ and ‘‘PM2.5

emissions.’’ COMAR 26.11.17 contains 

the preconstruction requirements for 

new major stationary sources and major 

modifications locating in nonattainment 

areas. The definitions of ‘‘regulated NSR 

pollutant’’ and ‘‘significant’’ under 

COMAR 26.11.17.01 were amended. 

The amended definitions require that 

sources account for the condensable 

fraction of PM10 and PM2.5, require that 

NOX and SO2 be regulated as precursors 

to PM10 and PM2.5, and establish 

significant emission rates (SERs) for 

PM2.5 and its precursors. COMAR 

26.11.17.02 was revised to specify that 

all of the major nonattainment NSR 

preconstruction requirements of the 

chapter are applicable to new major 

stationary sources and major 

modifications that are major for PM2.5 or 

its precursors. COMAR 26.11.17.02 was 

also revised to clarify that in addition to 

the requirements of that chapter, the 

Prevention of Significant Deterioration 

(PSD) requirements of COMAR 

26.11.04.16 may also apply to sources 

locating in nonattainment areas. 

III. Proposed Action 

EPA’s review of this material 

indicates that the proposed revisions 

comply with the nonattainment NSR 

program requirements of the CAA and 

its implementing regulations (including 

the 2008 NSR PM2.5 Rule) that are 

applicable in Maryland at this time. 

EPA is therefore proposing to approve 

MDE’s August 22, 2013 submittal as a 

revision to the Maryland SIP. EPA is 

soliciting public comments on the 

issues discussed in this document. 

These comments will be considered 

before taking final action. 

IV. Incorporation by Reference 

In this proposed action, the EPA is 

proposing to include in a final EPA rule, 

regulatory text that includes 

incorporation by reference. In 

accordance with requirements of 1 CFR 

51.5, the EPA is proposing to 

incorporate by reference amendments to 

Regulation .01 under COMAR 26.11.01 

(General Administrative Provisions) and 

Regulations .01 and .02 under COMAR 

26.11.17 (Nonattainment Provisions for 

Major New Sources and Major 

Modifications). The EPA has made, and 

will continue to make, these documents 

generally available electronically 

through www.regulations.gov and/or in 

hard copy at the appropriate EPA office 

(see the ADDRESSES section of this 

preamble for more information). 

V. Statutory and Executive Order 

Reviews 

Under the CAA, the Administrator is 

required to approve a SIP submission 

that complies with the provisions of the 

CAA and applicable Federal regulations. 

42 U.S.C. 7410(k); 40 CFR 52.02(a). 

Thus, in reviewing SIP submissions, 

EPA’s role is to approve state choices, 

provided that they meet the criteria of 

the CAA. Accordingly, this action 

merely approves state law as meeting 

Federal requirements and does not 

impose additional requirements beyond 

those imposed by state law. For that 

reason, this proposed action: 

• Is not a ‘‘significant regulatory 

action’’ subject to review by the Office 

of Management and Budget under 

Executive Order 12866 (58 FR 51735, 

October 4, 1993); 

• does not impose an information 

collection burden under the provisions 

of the Paperwork Reduction Act (44 

U.S.C. 3501 et seq.); 

• is certified as not having a 

significant economic impact on a 

substantial number of small entities 

under the Regulatory Flexibility Act (5 

U.S.C. 601 et seq.); 

• does not contain any unfunded 

mandate or significantly or uniquely 

affect small governments, as described 

in the Unfunded Mandates Reform Act 

of 1995 (Pub. L. 104–4); 

• does not have Federalism 

implications as specified in Executive 

Order 13132 (64 FR 43255, August 10, 

1999); 

• is not an economically significant 

regulatory action based on health or 

safety risks subject to Executive Order 

13045 (62 FR 19885, April 23, 1997); 

• is not a significant regulatory action 

subject to Executive Order 13211 (66 FR 

28355, May 22, 2001); 

• is not subject to requirements of 

Section 12(d) of the National 

Technology Transfer and Advancement 

Act of 1995 (15 U.S.C. 272 note) because 

application of those requirements would 

be inconsistent with the CAA; and 

• does not provide EPA with the 

discretionary authority to address, as 

appropriate, disproportionate human 

health or environmental effects, using 

practicable and legally permissible 

methods, under Executive Order 12898 

(59 FR 7629, February 16, 1994). 

In addition, this proposed rule, relating 

to Maryland’s nonattainment NSR 

program, does not have tribal 

implications as specified by Executive 

Order 13175 (65 FR 67249, November 9, 

2000), because the SIP is not approved 

to apply in Indian country located in the 

state, and EPA notes that it will not 

impose substantial direct costs on tribal 

governments or preempt tribal law. 

List of Subjects in 40 CFR Part 52 

Environmental protection, Air 

pollution control, Carbon monoxide, 

Incorporation by reference, 

Intergovernmental relations, Lead, 

Nitrogen dioxide, Ozone, Particulate 

matter, Reporting and recordkeeping 

requirements, Sulfur oxides, Volatile 

organic compounds. 

Authority: 42 U.S.C. 7401 et seq. 

Dated: March 9, 2015. 

William C. Early, 

Acting Regional Administrator, Region III. 

[FR Doc. 2015–06729 Filed 3–24–15; 8:45 am] 

BILLING CODE 6560–50–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Parts 1 and 73 

[AU Docket No. 15–3; DA 15–25] 

Auction of FM Broadcast Construction 

Permits Scheduled for July 23, 2015; 

Comment Sought on Competitive 

Bidding Procedures for Auction 98 

AGENCY: Federal Communications 

Commission. 

ACTION: Proposed rule; proposed auction 

procedures; comment sought. 

SUMMARY: The Wireless 

Telecommunications and Media 

Bureaus (the Bureaus) announce the 

auction of certain FM broadcast 

construction permits. This document 

also seeks comment on competitive 

bidding procedures for Auction 98. 

DATES: Comments are due on or before 

April 1, 2015, and reply comments are 

due on or before April 8, 2015. Bidding 

for construction permits in Auction 98 

is scheduled to begin on July 23, 2015. 

ADDRESSES: Interested parties may 

submit comments to the Auction 98 

Request for Comment by any of the 

following methods: 

• FCC’s Web site: Federal 

Communication Commission’s 

Electronic Comment Filing System 

(ECFS): http://fjallfoss.fcc.gov/ecfs2/. 

Follow the instructions for submitting 

comments. 

• Mail: FCC Headquarters, 445 12th 

Street SW., Room TW–A325, 

Washington, DC 20554. 

• People With Disabilities: To request 

materials in accessible formats for 

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15716 Federal Register / Vol. 80, No. 57 / Wednesday, March 25, 2015 / Proposed Rules 

people with disabilities (braille, large 

print, electronic files, or audio format), 

send an email to FCC504@fcc.gov or call 

the Consumer & Governmental Affairs 

Bureau at 202–418–0530 (voice), 202– 

418–0432 (TTY). 

For detailed instructions for 

submitting comments, see the 

SUPPLEMENTARY INFORMATION section of 

this document. 

Initial Paperwork Reduction Act of 

1995 Analysis: 

This document does not contain 

proposed information collection 

requirements subject to the Paperwork 

Reduction Act of 1995, Public Law 104– 

13. In addition, therefore, it does not 

contain any proposed information 

collection burden for small business 

concerns with fewer than 25 employees, 

pursuant to the Small Business 

Paperwork Relief Act of 2002, Public 

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

FOR FURTHER INFORMATION CONTACT: 

Wireless Telecommunications Bureau, 

Auctions and Spectrum Access Division: 

For auction legal questions: Lynne 

Milne or Howard Davenport at (202) 

418–0660; for general auction questions: 

Jeff Crooks at (202) 418–0660 or Sue 

Sterner at (717) 338–2868. 

Media Bureau, Audio Division: For 

FM service rules questions: Lisa Scanlan 

or Tom Nessinger at (202) 418–2700. 

SUPPLEMENTARY INFORMATION: This is a 

summary of the Auction 98 Request for 

Comment in AU Docket No. 15–3, DA 

15–25, released on March 16, 2015. The 

complete text of this document, 

including any attachment, is available 

for public inspection and copying from 

8:00 a.m. to 4:30 p.m. Eastern Time (ET) 

Monday through Thursday or from 8:00 

a.m. to 11:30 a.m. ET on Fridays in the 

FCC Reference Information Center, 445 

12th Street SW., Room CY–A257, 

Washington, DC 20554. The Auction 98 

Request for Comment and related 

documents also are available on the 

Internet at the Commission’s Web site: 

http://wireless.fcc.gov/auctions/98/, or 

by using the search function for AU 

Docket No. 15–3 on the Commission’s 

ECFS Web page at http://www.fcc.gov/

cgb/ecfs/. 

All filings in response to the Auction 

98 Request for Comment must refer to 

AU Docket No. 15–3. The Bureaus 

strongly encourage interested parties to 

file comments electronically, and 

request that an additional copy of all 

comments and reply comments be 

submitted electronically to the 

following address: auction98@fcc.gov. 

• Electronic Filers: Comments may be 

filed electronically using the Internet by 

accessing the Federal Communication 

Commission’s Electronic Comments 

Filing System (ECFS): http://

fjallfoss.fcc.gov/ecfs2/. Follow the 

instructions for submitting comments. 

• Paper Filers: Parties who choose to 

file by paper must file an original and 

one copy of each filing. Filings can be 

sent by hand or messenger delivery, by 

commercial overnight courier or by firstclass or overnight U.S. Postal Service 

mail. All filings must be addressed to 

the Commission’s Secretary Attn: WTB/ 

ASAD, Office of the Secretary, Federal 

Communications Commission (FCC). 

All hand-delivered or messengerdelivered paper filings for the 

Commission’s Secretary must be 

delivered to the FCC Headquarters at 

445 12th Street SW., Room TW–A325, 

Washington, DC 20554. The filing hours 

are 8:00 a.m. to 7:00 p.m. Eastern Time 

(ET). All hand deliveries must be held 

together with rubber bands or fasteners. 

Any envelopes and boxes must be 

disposed of before entering the building. 

Commercial overnight mail (other than 

U.S. Postal Service Express Mail and 

Priority Mail) must be sent to 9300 East 

Hampton Drive, Capitol Heights, MD 

20743. U.S. Postal Service first-class, 

Express, and Priority mail must be 

addressed to 445 12th Street SW., 

Washington, DC 20554. 

I. Construction Permits in Auction 98 

1. Auction 98 will offer 131 

construction permits in the FM 

broadcast service. The construction 

permits to be auctioned are for 113 new 

FM allotments, including 18 

construction permits that were offered 

but not sold or were defaulted upon in 

prior auctions. Attachment A of the 

Auction 98 Request for Comment lists 

the specific vacant FM allotments, along 

with the reference coordinates for each 

vacant FM allotment. These comprise 

FM channels added to the Table of FM 

Allotments, 47 CFR 73.202(b), and 

designated for use in the indicated 

communities. 

2. Under established Commission 

policies, an applicant may apply for any 

vacant FM allotment listed in 

Attachment A of the Auction 98 Request 

for Comment. If two or more short-form 

applications (FCC Form 175) specify a 

construction permit for the same FM 

allotment in Auction 98, mutual 

exclusivity exists for auction purposes, 

and even if only one applicant is 

qualified to bid for a particular 

construction permit in Auction 98, that 

applicant is required to submit a bid in 

order to obtain that construction permit. 

Any applicant that submits a short-form 

application for Auction 98, but fails to 

become a qualified bidder for any 

reason, including a failure to timely 

submit an upfront payment, will retain 

its status as an applicant in Auction 98 

and will remain subject to the rules 

prohibiting certain communications. 

II. Due Diligence 

3. Each potential bidder is solely 

responsible for investigating and 

evaluating all technical and marketplace 

factors that may have a bearing on the 

value of the construction permits for 

broadcast facilities that it is seeking in 

this auction. Each bidder is responsible 

for assuring that, if it wins a 

construction permit, it will be able to 

build and operate facilities in 

accordance with the Commission’s 

rules. The FCC makes no 

representations or warranties about the 

use of this spectrum for particular 

services. Each applicant should be 

aware that an FCC auction of FM station 

construction permits represents an 

opportunity to become an FCC 

permittee in the broadcast service, 

subject to certain conditions and 

regulations. These conditions include, 

but are not limited to, the condition that 

FCC licenses and other authorizations 

(whether awarded through competitive 

bidding or otherwise) are subject to the 

authority of the FCC, under the 

Communications Act of 1934, as 

amended, to modification through 

rulemaking and adjudicative 

proceedings. An FCC auction does not 

constitute an endorsement by the FCC of 

any particular service, technology, or 

product, nor does an FCC construction 

permit or license constitute a guarantee 

of business success. 

4. An applicant should perform its 

due diligence research and analysis 

before proceeding, as it would with any 

new business venture. In particular, the 

Bureaus strongly encourage each 

potential bidder to review all 

underlying Commission orders, such as 

the specific Report and Order amending 

the FM Table of Allotments and 

allotting the FM channel(s) on which it 

plans to bid. A Report and Order 

adopted in an FM allotment rulemaking 

proceeding may include anomalies such 

as site restrictions or expense 

reimbursement requirements. 

Additionally, each potential bidder 

should perform technical analyses and/ 

or refresh any previous analyses to 

assure itself that, should it become a 

winning bidder for any Auction 98 

construction permit, it will be able to 

build and operate facilities that will 

fully comply with all applicable 

technical and legal requirements. The 

Bureaus strongly encourage each 

applicant to inspect any prospective 

transmitter sites located in, or near, the 

service area for which it plans to bid; 

confirm the availability of such sites; 

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and familiarize itself with 47 CFR 

1.1301–1.1319. 

5. The Bureaus strongly encourage 

each applicant to conduct its own 

research prior to Auction 98 in order to 

determine the existence of pending 

administrative or judicial proceedings, 

including pending allocation 

rulemaking proceedings that might 

affect its decisions regarding 

participation in the auction. The 

Bureaus strongly encourage participants 

in Auction 98 to continue such research 

throughout the auction. These due 

diligence considerations are not an 

exhaustive list of steps that should be 

undertaken prior to participating in this 

auction. As always, the burden is on the 

potential bidder to determine how much 

research to undertake, depending upon 

the specific facts and circumstances 

related to its interests. 

III. Bureaus Seek Comment on Auction 

Procedures 

A. Auction Structure 

6. Simultaneous Multiple Round 

Auction Design. The Bureaus propose to 

auction all construction permits 

included in Auction 98 using the 

Commission’s standard simultaneous 

multiple-round auction format. This 

type of auction offers every construction 

permit for bid at the same time and 

consists of successive bidding rounds in 

which eligible bidders may place bids 

on individual construction permits. 

Typically, bidding remains open on all 

construction permits until bidding stops 

on every construction permit. The 

Bureaus seek comment on this proposal. 

7. Bidding Rounds. Auction 98 will 

consist of sequential bidding rounds, 

each followed by the release of round 

results. The initial bidding schedule 

will be announced in a public notice to 

be released at least one week before the 

start of the auction. Details on viewing 

round results, including the location 

and format of downloadable round 

results files, will be included in the 

same public notice. 

8. The Commission will conduct 

Auction 98 over the Internet using the 

Commission’s Integrated Spectrum 

Auction System (FCC Auction System). 

Bidders will also have the option of 

placing bids by telephone through a 

dedicated Auction Bidder Line. The 

toll-free telephone number for the 

Auction Bidder Line will be provided to 

qualified bidders prior to the start of the 

auction. 

9. The Bureaus propose to retain the 

discretion to change the bidding 

schedule in order to foster an auction 

pace that reasonably balances speed 

with the bidders’ need to study round 

results and adjust their bidding 

strategies. Under this proposal, the 

Bureaus may change the amount of time 

for the bidding rounds, the amount of 

time between rounds, or the number of 

rounds per day, depending upon 

bidding activity and other factors. The 

Bureaus seek comment on this proposal. 

Commenters on this issue should 

address the role of the bidding schedule 

in managing the pace of the auction, 

specifically discussing the tradeoffs in 

managing auction pace by bidding 

schedule changes, by changing the 

activity requirements or bid amount 

parameters, or by using other means. 

10. Stopping Rule. To complete the 

auction within a reasonable time, the 

Bureaus propose to employ a 

simultaneous stopping rule approach for 

Auction 98, which means all 

construction permits remain available 

for bidding until bidding stops on every 

construction permit. Specifically, 

bidding will close on all construction 

permits after the first round in which no 

bidder submits any new bid, applies a 

proactive waiver, or, if bid withdrawals 

are permitted in this auction, withdraws 

any provisionally winning bid which is 

a bid that would become a final winning 

bid if the auction were to close in that 

given round. Thus, unless the Bureaus 

announce alternative procedures, the 

simultaneous stopping rule will be used 

in this auction, and bidding will remain 

open on all construction permits until 

bidding stops on every construction 

permit. Consequently, it is not possible 

to determine in advance how long the 

bidding in this auction will last. 

11. Further, the Bureaus propose to 

retain the discretion to exercise any of 

the following options during Auction 

98. (1) Use a modified version of the 

simultaneous stopping rule that would 

close the auction for all construction 

permits after the first round in which no 

bidder applies a waiver, withdraws a 

provisionally winning bid (if 

withdrawals are permitted in this 

auction), or places any new bid on a 

construction permit for which it is not 

the provisionally winning bidder, which 

means that, absent any other bidding 

activity, a bidder placing a new bid on 

a construction permit for which it is the 

provisionally winning bidder would not 

keep the auction open under this 

modified stopping rule. (2) Use a 

modified version of the simultaneous 

stopping rule that would close the 

auction for all construction permits after 

the first round in which no bidder 

applies a waiver, withdraws a 

provisionally winning bid (if 

withdrawals are permitted in this 

auction), or places any new bid on a 

construction permit that is not FCC 

held, which means that, absent any 

other bidding activity, a bidder placing 

a new bid on a construction permit that 

does not already have a provisionally 

winning bid (an FCC-held construction 

permit) would not keep the auction 

open under this modified stopping rule. 

(3) Use a modified version of the 

simultaneous stopping rule that 

combines (1) and (2). (4) Declare the 

auction will end after a specified 

number of additional rounds (special 

stopping rule). If the Bureaus invoke 

this special stopping rule, they will 

accept bids in the specified final 

round(s), after which the auction will 

close. (5) Keep the auction open even if 

no bidder places any new bid, applies 

a waiver, or withdraws any 

provisionally winning bid (if 

withdrawals are permitted in this 

auction). In this event, the effect will be 

the same as if a bidder had applied a 

waiver. The activity rule will apply as 

usual, and a bidder with insufficient 

activity will either lose bidding 

eligibility or use a waiver. 

12. The Bureaus propose to exercise 

these options only in certain 

circumstances, for example, where the 

auction is proceeding unusually slowly 

or quickly, there is minimal overall 

bidding activity, or it appears likely that 

the auction will not close within a 

reasonable period of time or will close 

prematurely. Before exercising these 

options, the Bureaus are likely to 

attempt to change the pace of the 

auction. For example, the Bureaus may 

adjust the pace of bidding by changing 

the number of bidding rounds per day 

and/or the minimum acceptable bids. 

The Bureaus proposed to retain the 

discretion to exercise any of these 

options with or without prior 

announcement during the auction. The 

Bureaus seek comment on these 

proposals. 

13. Information Relating to Auction 

Delay, Suspension or Cancellation. 

Pursuant to 47 CFR 1.2104(i), the 

Bureaus propose that they may delay, 

suspend, or cancel Auction 98 in the 

event of a natural disaster, technical 

obstacle, administrative or weather 

necessity, evidence of an auction 

security breach or unlawful bidding 

activity, or for any other reason that 

affects the fair and efficient conduct of 

competitive bidding. The Bureaus will 

notify participants of any such delay, 

suspension or cancellation by public 

notice and/or through the FCC Auction 

System’s announcement function. If the 

auction is delayed or suspended, the 

Bureaus may, in their sole discretion, 

elect to resume the auction starting from 

the beginning of the current round or 

from some previous round, or cancel the 

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15718 Federal Register / Vol. 80, No. 57 / Wednesday, March 25, 2015 / Proposed Rules 

auction in its entirety. Network 

interruption may cause the Bureaus to 

delay or suspend the auction. The 

Bureaus emphasize that they will 

exercise this authority solely at their 

discretion, and not as a substitute for 

situations in which bidders may wish to 

apply activity rule waivers. The Bureaus 

seek comment on this proposal. 

B. Auction Procedures 

14. Upfront Payments and Bidding 

Eligibility. The Bureaus have delegated 

authority and discretion to determine an 

appropriate upfront payment for each 

construction permit being auctioned, 

taking into account such factors as the 

efficiency of the auction process and the 

potential value of similar construction 

permits. The upfront payment is a 

refundable deposit made by each bidder 

to establish eligibility to bid on 

construction permits. Upfront payments 

that are related to the specific 

construction permits being auctioned 

protect against frivolous or insincere 

bidding and provide the Commission 

with a source of funds from which to 

collect payments owed at the close of 

the auction. With these considerations 

in mind, the Bureaus propose the 

upfront payments set forth in 

Attachment A of the Auction 98 Request 

for Comment. The Bureaus seek 

comment on the upfront payments 

specified in Attachment A of the 

Auction 98 Request for Comment. 

15. The Bureaus further propose that 

the amount of the upfront payment 

submitted by a bidder will determine its 

initial bidding eligibility in bidding 

units. The Bureaus propose to assign 

each construction permit a specific 

number of bidding units, equal to one 

bidding unit per dollar of the upfront 

payment listed in Attachment A of the 

Auction 98 Request for Comment. The 

number of bidding units for a given 

construction permit is fixed and does 

not change during the auction as prices 

change. A bidder may place bids on 

multiple construction permits, provided 

that the total number of bidding units 

associated with those construction 

permits does not exceed the bidder’s 

current eligibility. A bidder cannot 

increase its eligibility during the 

auction; it can only maintain its 

eligibility or decrease its eligibility. 

Thus, in calculating its upfront payment 

amount and hence its initial bidding 

eligibility, an applicant must determine 

the maximum number of bidding units 

on which it may wish to bid (or hold 

provisionally winning bids) in any 

single round, and submit an upfront 

payment amount covering that total 

number of bidding units. The Bureaus 

request comment on these proposals. 

16. Activity Rule. In order to ensure 

that the auction closes within a 

reasonable period of time, an activity 

rule requires bidders to bid actively 

throughout the auction, rather than wait 

until late in the auction before 

participating. A bidder’s activity in a 

round will be the sum of the bidding 

units associated with any construction 

permits upon which it places bids 

during the current round and the 

bidding units associated with any 

construction permits for which it holds 

provisionally winning bids. Bidders are 

required to be active on a specific 

percentage of their current bidding 

eligibility during each round of the 

auction. Failure to maintain the 

requisite activity level would result in 

the use of an activity rule waiver, if any 

remain, or a reduction in the bidder’s 

eligibility for the next round of bidding, 

possibly curtailing or eliminating the 

bidder’s ability to place additional bids 

in the auction. The Bureaus seek 

comment on these proposals. 

17. The Bureaus propose to divide the 

auction into at least two stages, each 

with a different activity requirement. 

Under this proposal, a bidder desiring to 

maintain its current bidding eligibility 

would be required to be active on 

bidding units associated with 

construction permits representing at 

least 80 percent of its current bidding 

eligibility in each round of the first stage 

of the auction. During Stage One, a 

bidder’s reduced eligibility for the next 

round would be calculated by 

multiplying the bidder’s current round 

activity level by five-fourths (5/4). The 

Bureaus propose to advance the auction 

to the next stage by announcement 

during the auction. A bidder desiring to 

maintain its current bidding eligibility 

would be required to be active in each 

round of the second stage of Auction 98 

on 95 percent of its current bidding 

eligibility. During Stage Two, a bidder’s 

reduced eligibility for the next round 

would be calculated by multiplying the 

bidder’s current round activity by 

twenty-nineteenths (20/19). If the 

Bureaus implement a stage with an 

activity requirement other than 80 

percent or 95 percent, the Bureaus 

propose to calculate a bidder’s reduced 

eligibility for the next round by 

multiplying the bidder’s current round 

activity by the reciprocal of the activity 

requirement. Failure to maintain the 

requisite activity level will result in the 

use of an activity rule waiver, if any 

remain, or a reduction in the bidder’s 

eligibility for the next round of bidding, 

possibly curtailing or eliminating the 

bidder’s ability to place additional bids 

in the auction. The Bureaus seek 

comment on these activity 

requirements. 

18. The Bureaus retain the discretion 

to change stages unilaterally by 

announcement during the auction and 

to change the activity requirements 

during the auction. For example, the 

Bureaus could decide to add an 

additional stage with a higher activity 

requirement, not to transition to Stage 

Two if the Bureaus believe the auction 

is progressing satisfactorily under the 

Stage One activity requirement, or to 

transition to Stage Two with an activity 

requirement that is higher or lower than 

the 95 percent proposed for Stage Two 

in the Auction 98 Request for Comment. 

19. Activity Rule Waivers and 

Reducing Eligibility. When a bidder’s 

activity in the current round is below 

the required minimum level, it may 

preserve its current level of eligibility 

through an activity rule waiver. An 

activity rule waiver applies to an entire 

round of bidding, not to a particular 

construction permit. Activity rule 

waivers can be either proactive or 

automatic. Activity rule waivers are 

principally a mechanism for a bidder to 

avoid the loss of bidding eligibility in 

the event that exigent circumstances 

prevent it from bidding in a particular 

round. 

20. The FCC Auction System assumes 

that a bidder that does not meet the 

activity requirement would prefer to use 

an activity rule waiver (if available) 

rather than lose bidding eligibility. 

Therefore, the system will automatically 

apply a waiver at the end of any bidding 

round in which a bidder’s activity is 

below the minimum required unless (1) 

the bidder has no activity rule waiver 

remaining or (2) the bidder overrides the 

automatic application of a waiver by 

reducing eligibility, thereby meeting the 

activity requirement. If a bidder has no 

waiver remaining and does not satisfy 

the required activity level, the bidder’s 

current eligibility will be permanently 

reduced, possibly curtailing or 

eliminating the ability to place 

additional bids in the auction. 

21. A bidder with insufficient activity 

may wish to reduce its bidding 

eligibility rather than use an activity 

rule waiver. If so, the bidder must 

affirmatively override the automatic 

waiver mechanism during the bidding 

round by using the reduced eligibility 

function in the FCC Auction System. In 

this case, the bidder’s eligibility is 

permanently reduced to bring it into 

compliance with the activity 

requirement specified for that stage of 

the auction. Reducing eligibility is an 

irreversible action; once eligibility has 

been reduced, a bidder will not be 

permitted to regain its lost bidding 

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Federal Register / Vol. 80, No. 57 / Wednesday, March 25, 2015 / Proposed Rules 15719 

eligibility, even if the round has not yet 

closed. 

22. Under the proposed simultaneous 

stopping rule, a bidder may apply an 

activity rule waiver proactively as a 

means to keep the auction open without 

placing a bid. If a bidder proactively 

applies an activity rule waiver (using 

the apply waiver function in the FCC 

Auction System) during a bidding round 

in which no bids are placed or 

withdrawn (if bid withdrawals are 

permitted in this auction), the auction 

will remain open and the bidder’s 

eligibility will be preserved. An 

automatic waiver applied by the FCC 

Auction System in a round in which 

there are no new bids, withdrawals (if 

bid withdrawals are permitted in this 

auction), or proactive waivers will not 

keep the auction open. A bidder cannot 

apply a proactive waiver after bidding 

in a round, and applying a proactive 

waiver will preclude it from taking any 

other bidding-related action in that 

round, including placing bids or 

withdrawing bids (if bid withdrawals 

are permitted in this auction). Applying 

a waiver is irreversible; once a proactive 

waiver is submitted, it cannot be 

unsubmitted, even if the round has not 

yet closed. 

23. The Bureaus propose that each 

bidder in Auction 98 be provided with 

three activity rule waivers that may be 

used at the bidder’s discretion during 

the course of the auction. The Bureaus 

seek comment on this proposal. 

24. Reserve Price or Minimum 

Opening Bids. Normally, a reserve price 

is an absolute minimum price below 

which an item will not be sold in a 

given auction. The Bureaus do not 

propose to establish separate reserve 

prices for the construction permits to be 

offered in Auction 98. 

25. A minimum opening bid is the 

minimum bid price set at the beginning 

of the auction below which no bids are 

accepted. Because it is an effective 

bidding tool for accelerating the 

competitive bidding process, the 

Bureaus propose to establish minimum 

opening bid amounts for Auction 98 

determined by taking into account the 

type of service and class of facility 

offered, market size, population covered 

by the proposed broadcast facility, and 

recent broadcast transaction data. 

Attachment A of the Auction 98 Request 

for Comment lists a proposed minimum 

opening bid amount for each 

construction permit available in 

Auction 98. The Bureaus seek comment 

on the minimum opening bid amounts 

specified in Attachment A of the 

Auction 98 Request for Comment. 

26. If commenters believe that these 

minimum opening bid amounts will 

result in unsold construction permits, 

are not reasonable amounts, or should 

instead operate as reserve prices, they 

should explain why this is so and 

comment on the desirability of an 

alternative approach. The Bureaus ask 

commenters to support their claims 

with valuation analyses and suggested 

amounts or formulas for reserve prices 

or minimum opening bids. In 

establishing the minimum opening bid 

amounts, the Bureaus particularly seek 

comment on factors that could 

reasonably have an impact on valuation 

of the broadcast spectrum, including the 

type of service and class of facility 

offered, market size, population covered 

by the proposed FM broadcast facility, 

and any other relevant factors. 

27. Bid Amounts. The Bureaus 

propose that, if the bidder has sufficient 

eligibility to place a bid on a particular 

construction permit in a round, an 

eligible bidder will be able to place a 

bid on that construction permit in any 

of up to nine different amounts. Under 

this proposal, the FCC Auction System 

interface will list the acceptable bid 

amounts for each construction permit. If 

there are duplicate bid amounts due to 

rounding, the FCC Auction System will 

omit the duplicates and will list fewer 

than nine acceptable bid amounts for 

the construction permit. 

28. The first of the acceptable bid 

amounts is called the minimum 

acceptable bid amount. The minimum 

acceptable bid amount for a 

construction permit will be equal to its 

minimum opening bid amount until 

there is a provisionally winning bid for 

the construction permit. After there is a 

provisionally winning bid for a 

construction permit, the minimum 

acceptable bid amount will be a certain 

percentage higher. That is, the FCC will 

calculate the minimum acceptable bid 

amount by multiplying the 

provisionally winning bid amount times 

one plus the minimum acceptable bid 

percentage. If, for example, the 

minimum acceptable bid percentage is 

10 percent, the minimum acceptable bid 

amount will equal (provisionally 

winning bid amount) * (1.10), rounded 

using the Commission’s standard 

rounding procedures for auctions as 

described in the Auction 98 Request for 

Comment. If bid withdrawals are 

permitted in this auction, in the case of 

a construction permit for which the 

provisionally winning bid has been 

withdrawn, the minimum acceptable 

bid amount will equal the second 

highest bid received for the construction 

permit. 

29. The FCC will calculate the eight 

additional bid amounts using the 

minimum acceptable bid amount and a 

bid increment percentage. The first 

additional acceptable bid amount equals 

the minimum acceptable bid amount 

times one plus the bid increment 

percentage, rounded. If, for example, the 

bid increment percentage is 5 percent, 

the calculation is (minimum acceptable 

bid amount) * (1 + 0.05), rounded, or 

(minimum acceptable bid amount) * 

1.05, rounded; the second additional 

acceptable bid amount equals the 

minimum acceptable bid amount times 

one plus two times the bid increment 

percentage, rounded, or (minimum 

acceptable bid amount) * 1.10, rounded; 

etc. The Bureaus will round the results 

using the Commission’s standard 

rounding procedures for auctions. 

30. For Auction 98, the Bureaus 

propose to use a minimum acceptable 

bid percentage of 10 percent. This 

means that the minimum acceptable bid 

amount for a construction permit will be 

approximately 10 percent greater than 

the provisionally winning bid amount 

for the construction permit. To calculate 

the additional acceptable bid amounts, 

the Bureaus proposed to use a bid 

increment percentage of 5 percent. The 

Bureaus seek comment on these 

proposals. 

31. The Bureaus retain the discretion 

to change the minimum acceptable bid 

amounts, the minimum acceptable bid 

percentage, the bid increment 

percentage, and the number of 

acceptable bid amounts if the Bureaus 

determine that circumstances so dictate. 

Further, the Bureaus retain the 

discretion to do so on a constructionpermit-by-construction-permit basis. 

The Bureaus also retain the discretion to 

limit (a) the amount by which a 

minimum acceptable bid for a 

construction permit may increase 

compared with the corresponding 

provisionally winning bid, and (b) the 

amount by which an additional bid 

amount may increase compared with 

the immediately preceding acceptable 

bid amount. For example, the Bureaus 

could set a $10,000 limit on increases in 

minimum acceptable bid amounts over 

provisionally winning bids. Thus, if 

calculating a minimum acceptable bid 

using the minimum acceptable bid 

percentage results in a minimum 

acceptable bid amount that is $12,000 

higher than the provisionally winning 

bid on a construction permit, the 

minimum acceptable bid amount would 

instead be capped at $10,000 above the 

provisionally winning bid. The Bureaus 

seek comment on the circumstances 

under which the Bureaus should 

employ such a limit, factors the Bureaus 

should consider when determining the 

dollar amount of the limit, and the 

tradeoffs in setting such a limit or 

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changing other parameters, such as 

changing the minimum acceptable bid 

percentage, the bid increment 

percentage, or the number of acceptable 

bid amounts. If the Bureaus exercise this 

discretion, they will alert bidders by 

announcement in the FCC Auction 

System during the auction. 

32. Provisionally Winning Bids. 

Provisionally winning bids are bids that 

would become final winning bids if the 

auction were to close in that given 

round. At the end of a bidding round, 

the FCC Auction System determines a 

provisionally winning bid for each 

construction permit based on the 

highest bid amount received. If identical 

high bid amounts are submitted on a 

construction permit in any given round 

(i.e., tied bids), the FCC Auction System 

will use a random number generator to 

select a single provisionally winning bid 

from among the tied bids. (The FCC 

Auction System assigns a random 

number to each bid when the bid is 

entered. The tied bid with the highest 

random number wins the tiebreaker.) 

The remaining bidders, as well as the 

provisionally winning bidder, can 

submit higher bids in subsequent 

rounds. However, if the auction were to 

end with no other bids being placed, the 

winning bidder would be the one that 

placed the provisionally winning bid. If 

the construction permit receives any 

bids in a subsequent round, the 

provisionally winning bid again will be 

determined by the highest bid amount 

received for the construction permit. 

33. A provisionally winning bid will 

be retained until there is a higher bid on 

the construction permit at the close of 

a subsequent round, unless the 

provisionally winning bid is withdrawn 

(if bid withdrawals are permitted in this 

auction). The Bureaus remind bidders 

that provisionally winning bids count 

toward a bidder’s activity level for 

purposes of the activity rule. 

34. Bid Removal and Bid Withdrawal. 

For Auction 98, the Bureaus propose the 

following bid removal procedures. 

Before the close of a bidding round, a 

bidder has the option of removing any 

bid that bidder placed in that round. By 

removing a selected bid in the FCC 

Auction System, a bidder may 

effectively unsubmit any bid placed 

within that round. In contrast to the bid 

withdrawal provisions, a bidder 

removing a bid placed in the same 

round is not subject to a withdrawal 

payment. Once a round closes, a bidder 

may no longer remove a bid. The 

Bureaus seek comment on this bid 

removal proposal. 

35. The Bureaus also seek comment 

on whether bid withdrawals should be 

permitted in Auction 98. When 

permitted in an auction, bid 

withdrawals provide a bidder with the 

option of withdrawing bids placed in 

prior rounds that have become 

provisionally winning bids. A bidder 

may withdraw its provisionally winning 

bids using the withdraw bids function 

in the FCC Auction System. A bidder 

that withdraws its provisionally 

winning bid(s), if permitted in this 

auction, is subject to the bid withdrawal 

payment provisions of 47 CFR 1.2104(g) 

and 1.2109. 

36. Based on guidance provided by 

the Commission in several competitive 

bidding rulemaking proceedings and on 

the experience of the Bureaus with past 

auctions of FM broadcast construction 

permits, the Bureaus propose to prohibit 

bidders from withdrawing any bid after 

the close of the round in which the bid 

was placed. The Bureaus make this 

proposal in light of the site-specific 

nature and wide geographic dispersion 

of the permits available in this auction, 

which suggests that potential applicants 

for this auction may have fewer 

incentives to aggregate permits through 

the auction process (as compared with 

bidders in many auctions of wireless 

licenses). Thus, the Bureaus believe that 

it is unlikely that bidders will have a 

need to withdraw bids in this auction. 

Bid withdrawals also could encourage 

insincere bidding and the use of 

withdrawals for anti-competitive 

strategic purposes. The Bureaus also 

remain mindful that bid withdrawals, 

particularly those made late in this 

auction, could result in delays in 

licensing new FM stations and attendant 

delays in the offering of new broadcast 

service to the public. The Bureaus seek 

comment on their proposal to prohibit 

bid withdrawals in Auction 98. 

C. Post-Auction Payments 

37. Interim Withdrawal Payment 

Percentage. A bidder that withdraws a 

bid during an auction is subject to a 

withdrawal payment equal to the 

difference between the amount of the 

withdrawn bid and the amount of the 

winning bid in the same or a subsequent 

auction. However, if a construction 

permit for which a bid has been 

withdrawn does not receive a 

subsequent higher bid or winning bid in 

the same auction, the FCC cannot 

calculate the final withdrawal payment 

until that construction permit receives a 

higher bid or winning bid in a 

subsequent auction. In such cases, when 

that final withdrawal payment cannot 

yet be calculated, the FCC imposes on 

the bidder responsible for the 

withdrawn bid an interim bid 

withdrawal payment, which will be 

applied toward any final bid withdrawal 

payment that is ultimately assessed. 

38. The amount of the interim bid 

withdrawal payment may range from 

three percent to twenty percent of the 

withdrawn bid amount. If bid 

withdrawals are allowed in Auction 98, 

the Bureaus propose that the interim bid 

withdrawal payment be 20 percent of 

the withdrawn bid, the maximum 

interim bid withdrawal payment 

percentage allowed by 47 CFR 

1.2104(g)(1). The Bureaus request 

comment on using twenty percent for 

calculating an interim bid withdrawal 

payment amount in Auction 98. 

Commenters advocating the use of bid 

withdrawals should also address the 

percentage of the interim bid 

withdrawal payment. 

39. Additional Default Payment 

Percentage. Any winning bidder that 

defaults or is disqualified after the close 

of an auction (i.e., fails to remit the 

required down payment within the 

prescribed period of time, fails to 

submit a timely long-form application, 

fails to make full and timely final 

payment, or is otherwise disqualified) is 

liable for a default payment under 47 

CFR 1.2104(g)(2). This default payment 

consists of a deficiency payment equal 

to the difference between the amount of 

the Auction 98 bidder’s winning bid 

and the amount of the winning bid the 

next time a construction permit 

covering the same spectrum is won in 

an auction, plus an additional payment 

equal to a percentage of the defaulter’s 

bid or of the subsequent winning bid, 

whichever is less. 

40. Defaults weaken the integrity of 

the auction process and may impede the 

deployment of service to the public, and 

an additional twenty percent default 

payment will be more effective in 

deterring defaults than the three percent 

used in some earlier auctions. Moreover, 

a twenty percent additional default 

payment amount is consistent with the 

percentage used in recent auctions of 

FM permits. Based on the nature of the 

service and the construction permits 

being offered, the Bureaus propose for 

Auction 98 an additional default 

payment of twenty percent of the 

relevant bid. The Bureaus seek comment 

on this proposal. 

IV. Ex Parte Rules 

41. This proceeding has been 

designated as a permit-but-disclose 

proceeding in accordance with the 

Commission’s ex parte rules. Persons 

making oral ex parte presentations are 

reminded that memoranda summarizing 

the presentations must contain 

summaries of the substance of the 

presentations and not merely a listing of 

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the subjects discussed. More than a oneor two-sentence description of the views 

and arguments presented is generally 

required. Other provisions pertaining to 

oral and written ex parte presentations 

in permit-but-disclose proceedings are 

set forth in 47 CFR 1.1206(b). 

V. Supplemental Regulatory Flexibility 

Analysis 

42. Consistent with the Regulatory 

Flexibility Act of 1980, as amended 

(RFA), as well as the Bureaus’ 

obligations to small businesses under 47 

U.S.C. 309(j)(3)(B) and 309(j)(4)(D), the 

Bureaus have prepared this additional 

analysis to supplement the 

Commission’s Initial and Final 

Regulatory Flexibility Analyses 

completed in the underlying notices of 

proposed rulemaking and orders, 

including the Broadcast First Report 

and Order and associated competitive 

bidding orders, which are hereby 

incorporated by reference. This analysis 

addresses any possible incremental 

significant economic impact on small 

entities by the competitive bidding 

procedures proposed in the Auction 98 

Request for Comment implementing 

such rulemaking orders. The Bureaus 

request written public comments on this 

supplemental analysis. Comments must 

be filed on or before April 1, 2015, and 

reply comments are due on or before 

April 8, 2015, and must be identified as 

responses to this supplemental analysis. 

The Bureaus will send a copy of the 

Auction 98 Request for Comment, 

including this supplemental analysis, to 

the Chief Counsel for Advocacy of the 

Small Business Administration (SBA). 

43. Need for, and Objectives of, the 

Proposed Competitive Bidding 

Procedures. The Auction 98 Request for 

Comment seeks comment on proposed 

procedures to govern Auction 98, an 

auction of 131 FM radio station 

construction permits. This process is 

intended to implement the 

Commission’s duty under 47 U.S.C. 

309(j)(3)(e)(i) to provide notice of and 

adequate time for potential applicants to 

comment on proposed auction 

procedures. The objective is to promote 

the efficient and fair administration of 

the competitive bidding process for all 

Auction 98 participants, including small 

businesses. 

44. The Auction 98 Request for 

Comment seeks comment on proposed 

procedures for conducting Auction 98, 

including: (1) Use of a simultaneous 

multiple-round auction format, 

consisting of sequential bidding rounds 

with a simultaneous stopping rule (with 

discretion to exercise alternative 

stopping rules under certain 

circumstances); (2) A specific minimum 

opening bid amount for each 

construction permit proposed to be 

offered in Auction 98; (3) A specific 

upfront payment amount for each 

construction permit; (4) Establishment 

of a bidder’s initial bidding eligibility in 

bidding units based on that bidder’s 

upfront payment through assignment of 

a specific number of bidding units for 

each construction permit; (5) Use of an 

activity rule that would require bidders 

to bid actively during the auction rather 

than waiting until late in the auction 

before participating; (6) Use of different 

activity requirements in two stages of 

the auction, with the Bureaus retaining 

discretion to change the activity 

requirement during the auction; (7) 

Provision of three activity rule waivers 

for each bidder to allow it to preserve 

bidding eligibility during the course of 

the auction; (8) Use of minimum 

acceptable bid amounts and bid 

increments, along with a proposed 

methodology for calculating such 

amounts, with the Bureaus retaining 

discretion to change their methodology 

if circumstances dictate; (9) A procedure 

for breaking ties if identical high bid 

amounts are submitted on a permit in a 

given round; (10) Bid removal 

procedures; (11) Whether to permit bid 

withdrawals; (12) Establishment of an 

interim bid withdrawal percentage of 20 

percent of the withdrawn bid in the 

event the Bureaus allow bid 

withdrawals in Auction 98; and (13) 

Establishment of an additional default 

payment of 20 percent under 47 CFR 

1.2104(g)(2) in the event that a winning 

bidder defaults or is disqualified after 

the auction. 

45. Description and Estimate of the 

Number of Small Entities to which 

Specified Auction 98 Procedures Will 

Apply. 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 

rules proposed in that rulemaking 

proceeding, 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 which: (1) Is independently 

owned and operated; (2) is not 

dominant in its field of operation; and 

(3) satisfies any additional criteria 

established by the SBA. Moreover, the 

SBA has created a small business size 

standard of $38.5 million or less in 

annual receipts for establishments 

primarily engaged in broadcasting aural 

programs. The size data provided by the 

SBA, however, does not enable the 

Bureaus to make a meaningful estimate 

of the number of small entities who may 

participate in Auction 98. 

46. The specific procedures on which 

comment is sought in the Auction 98 

Request for Comment will affect directly 

all applicants participating in Auction 

98. The number of entities that may 

apply to participate in Auction 98 is 

unknown. Based on the numbers of 

applicants in prior FM auctions, the 

Bureaus estimate that the number of 

applicants for Auction 98 may range 

from approximately 175 to 260. This 

estimate is based on the number of 

applicants who filed short-form 

applications to participate in previous 

auctions of FM radio station 

construction permits (exclusive of 

closed auctions). In the eight open FM 

broadcast auctions held to date, an 

average of 1.98 short-form applications 

were filed per construction permit 

offered, with a median of 1.365 

applications per permit. If those figures 

apply to Auction 98, the number of 

applicants may range between 179 and 

259. The Bureaus recognize, however, 

that the actual number of applicants for 

Auction 98 could vary significantly as 

any individual’s or entity’s decision to 

participate may be affected by a number 

of factors beyond the Commission’s 

control. 

47. The Bureaus are unable to 

accurately develop an estimate based on 

the number of small entities that 

applied to participate in prior broadcast 

auctions because that information is not 

collected from applicants for broadcast 

auctions in which bidding credits are 

not based on an applicant’s size (as is 

the case in auctions of licenses for 

wireless services). Potential applicants 

in Auction 98 may include existing 

holders of broadcast station 

construction permits or licenses, as well 

as non-licensees. The Bureaus note, 

however, that the Commission has 

recently estimated that 97 percent of 

radio broadcasters met the SBA’s prior 

definition of small business concern, 

based on annual revenues of $7 million. 

Moreover, the SBA has since increased 

that revenue threshold to $38.5 million. 

Based on this assessment, the Bureaus 

conclude that nearly all of Auction 98 

applicants will likely meet the SBA’s 

definition of a small business concern. 

48. Legal Basis. The Commission has 

established a framework of competitive 

bidding rules pursuant to which it has 

conducted auctions since the inception 

of the auction program in 1994 and 

would conduct Auction 98. The basis 

for those rules is found in various 

statutory provisions, including 47 

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U.S.C. 154(i), 301, 302, 303(e), 303(f), 

303(r), 304, 307 and 309(j). The 

Commission has directed the Bureaus, 

under delegated authority, to seek 

comment on a variety of auctionspecific procedures prior to the start of 

each auction. 

49. Description of Projected 

Reporting, Recordkeeping, and Other 

Compliance Requirements. In the 

Auction 98 Request for Comment, the 

Bureaus do not propose to implement 

any new reporting requirements, 

recordkeeping requirements or any 

other compliance requirements. Any 

individual or entity seeking to 

participate in an auction must submit a 

short-form application (FCC Form 175). 

The information collected on FCC Form 

175 is used by the Bureaus to determine 

if an applicant is legally, technically, 

and financially qualified to participate 

in a Commission auction. Additionally, 

if an applicant applies for status as a 

new entrant auction participant 

pursuant to Commission rules, the 

Commission uses information collected 

on FCC Form 175 to determine whether 

the applicant is eligible for the status 

requested. If an applicant is a winning 

bidder, it is required to submit a more 

detailed long-form application (such as 

an FCC Form 301 for an FM station), 

including any showings to demonstrate 

its eligibility for new entrant status it 

may have claimed. This two-phased 

process helps minimize reporting and 

compliance requirements for auction 

applicants. 

50. Steps Taken to Minimize 

Significant Economic Impact on Small 

Entities, and Significant Alternatives 

Considered. The RFA requires an 

agency to describe any significant 

alternatives beneficial to small entities 

considered in reaching a proposed 

approach, which may include the 

following four alternatives (among 

others): (1) Establishment of differing 

compliance or reporting requirements or 

timetables that take into account the 

resources available to small entities; (2) 

clarification, consolidation, or 

simplification for small entities of 

compliance and reporting requirements; 

(3) use of performance, rather than 

design, standards; and (4) an exemption 

for small entities. 

51. The Bureaus propose a number of 

specific procedures to govern an auction 

of 131 FM radio station construction 

permits, which are summarized above 

in this supplemental analysis. Based on 

experience in conducting numerous 

auctions since the program’s inception 

in 1994, the Commission has taken steps 

to minimize the impact of its auction 

procedures on small businesses. For 

example, following consideration of any 

comments submitted in response to the 

Auction 98 Request for Comment, the 

Bureaus will release a public notice to 

provide detailed guidance for potential 

applicants on how to complete a shortform application, participate in the 

auction, and comply with the various 

competitive bidding requirements 

applicable to all Auction 98 applicants. 

52. The Commission designed the 

auction application process to minimize 

reporting and compliance requirements 

for applicants, including small business 

applicants. In the first part of the 

Commission’s two-phased auction 

application process, parties desiring to 

participate in an auction file 

streamlined, short-form applications in 

which they certify under penalty of 

perjury as to their qualifications. 

Eligibility to participate in bidding is 

based on an applicant’s short-form 

application and certifications, as well as 

its upfront payment. In the second 

phase of the process, winning bidders 

file a more comprehensive long-form 

application. Thus, a small business 

which fails to become a winning bidder 

does not need to file a long-form 

application and provide the additional 

showings and more detailed 

demonstrations required of a winning 

bidder. 

53. The Commission provides a 

number of resources through which 

potential auction participants, including 

small entities, may seek clarification of 

or guidance on complying with 

competitive bidding rules and 

procedures, reporting requirements, and 

the FCC’s auction system. An FCC 

Auctions Hotline provides access to 

Commission staff for information about 

the auction process and procedures. The 

FCC Auctions Technical Support 

Hotline is another resource which 

provides technical assistance to 

applicants, including small business 

entities, on issues such as access to or 

navigation within the electronic FCC 

Form 175 and use of the FCC’s auction 

system. These hotlines are generally 

accessible during regular business 

hours. Commission staff also produces a 

web-based, interactive online tutorial 

for each auction which potential 

applicants, including small businesses, 

may access to familiarize themselves 

with auction procedures, filing 

requirements and other matters related 

to an auction. Once posted, the online 

tutorial remains available for reference 

and is accessible anytime. 

54. The Bureaus also make various 

databases and other sources of 

information, including the Media 

Bureau’s Consolidated Database System, 

the Auctions program Web sites, and 

copies of Commission decisions, 

available to the public without charge, 

providing a low-cost mechanism for 

small businesses to conduct research 

prior to and throughout the auction. 

Prior to and at the close of Auction 98, 

the Bureaus will post public notices on 

the Auctions Web site, which articulate 

auction procedures and deadlines. The 

Bureaus make this information easily 

accessible and without charge to benefit 

all Auction 98 applicants, including 

small businesses, by lowering their 

administrative costs to comply with the 

Commission’s competitive bidding 

rules. 

55. Prior to the start of bidding in 

each auction, all auction applicants are 

given an opportunity to become familiar 

with auction procedures and the 

bidding system by participating in a 

mock auction. Further, the Commission 

intends to conduct Auction 98 

electronically over the Internet using its 

web-based auction system that 

eliminates the need for qualified bidders 

to be physically present in a specific 

location. Qualified bidders also have an 

option to place bids by telephone. These 

mechanisms are made available to 

facilitate participation in Auction 98 by 

all applicants, including small business 

entities. Moreover, the adoption of 

bidding procedures in advance of the 

auction, consistent with statutory 

directive, is designed to ensure that the 

auction will be administered 

predictably and fairly for all 

participants, including small 

businesses. 

56. Federal Rules that May Duplicate, 

Overlap, or Conflict with the Procedures 

for which Comment is Solicited. None. 

These proposed procedures for the 

conduct of Auction 98 constitute the 

more specific implementation of the 

competitive bidding rules contemplated 

by Parts 1 and 73 of the Commission’s 

rules and the underlying rulemaking 

orders, including the Broadcast First 

Report and Order and associated 

competitive bidding orders, and are 

fully consistent therewith. 

Federal Communications Commission. 

Gary D. Michaels, 

Deputy Chief, Auctions and Spectrum Access 

Division, WTB. 

[FR Doc. 2015–06864 Filed 3–24–15; 8:45 am] 

BILLING CODE 6712–01–P 

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