[Federal Register Volume 74, Number 74 (Monday, April 20, 2009)]
[Notices]
[Pages 17941-17944]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-9006]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service


Announcement of Grant Application Deadlines and Funding Levels

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of funds availability and solicitation of applications.

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SUMMARY: The United States Department of Agriculture's (USDA) Rural 
Utilities Service (RUS) announces its Community Connect Grant Program 
application window for Fiscal Year (FY) 2009. In addition, RUS 
announces the minimum and maximum amounts for Community Connect grants 
applicable for the fiscal year. The Community Connect Grant Program 
regulations can be found at 7 CFR 1739, subpart A.

DATES: You may submit completed applications for grants on paper or 
electronically according to the following deadlines:
    <bullet> Paper copies must carry proof of shipping no later than 
June 19, 2009 to be eligible for FY 2009 grant funding. Late 
applications are not eligible for FY 2009 grant funding.
    <bullet> Electronic copies must be received by June 19, 2009 to be 
eligible for FY 2009 grant funding. Late applications are not eligible 
for FY 2009 grant funding.

ADDRESSES: You may obtain application guides and materials for the 
Community Connect Grant Program via the Internet at the following Web 
site: http://www.usda.gov/rus/telecom/commconnect.htm. You may also 
request application guides and materials from RUS by contacting the 
appropriate individual listed in section VII of the SUPPLEMENTARY 
INFORMATION section of this notice.
    Submit completed paper applications for grants to the Rural 
Utilities Service, U.S. Department of Agriculture, 1400 Independence 
Ave., SW., Room 2870, STOP 1599, Washington, DC 20250-1599. 
Applications should be marked ``Attention: Director, Broadband 
Division, Rural Utilities Service.''
    Submit electronic grant applications at http://www.grants.gov 
(Grants.gov), following the instructions you find on that Web site.

FOR FURTHER INFORMATION CONTACT: Kenneth Kuchno, Director, Broadband 
Division, Rural Utilities Service, U.S. Department of Agriculture, 
telephone: (202) 690-4673, fax: (202) 690-4389.

SUPPLEMENTARY INFORMATION:

Overview

    Federal Agency: Rural Utilities Service (RUS).
    Funding Opportunity Title: Community Connect Grant Program.
    Announcement Type: Initial announcement.
    Catalog of Federal Domestic Assistance (CFDA) Number: 10.863.
    Dates: You may submit completed applications for grants on paper or 
electronically according to the following deadlines:
    <bullet> Paper copies must carry proof of shipping no later than 
June 19, 2009, to be eligible for FY 2009 grant funding. Late 
applications are not eligible for FY 2009 grant funding.
    <bullet> Electronic copies must be received by June 19, 2009, to be 
eligible for FY 2009 grant funding. Late applications are not eligible 
for FY 2009 grant funding.

Items in Supplementary Information

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

I. Funding Opportunity

    The provision of broadband transmission service is vital to the 
economic development, education, health, and safety of rural Americans. 
The purpose of the Community Connect Grant Program is to provide 
financial assistance in the form of grants to eligible applicants that 
will provide currently unserved areas, on a ``community-oriented 
connectivity'' basis, with broadband transmission service that fosters 
economic growth and delivers enhanced educational, health care, and 
public safety services. Rural Utilities Service will give priority to 
rural areas that it believes have the greatest need for broadband 
transmission services, based on the criteria contained herein.
    Grant authority will be used for the deployment of broadband 
transmission service to extremely rural, lower-income communities on a 
``community-oriented connectivity'' basis.
    The ``community-oriented connectivity'' concept will stimulate 
practical, everyday uses and applications of broadband facilities by 
cultivating the deployment of new broadband transmission services that 
improve economic development and provide enhanced educational and 
health care opportunities in rural areas. Such an approach will also 
give rural communities the opportunity to benefit from the advanced 
technologies that are necessary to achieve these goals. Please see 7 
CFR 1739, subpart A for specifics.
    This notice has been formatted to conform to a policy directive 
issued by the Office of Federal Financial Management (OFFM) of the 
Office of Management and Budget (OMB), published in the Federal 
Register on June 23, 2003. This Notice does not change the Community 
Connect Grant Program regulation (7 CFR 1739, subpart A).

II. Award Information

 A. Available Funds

    1. General. The Administrator has determined that the following 
amounts are available for grants in FY 2009 under 7 CFR 1739.2(a).
    2. Grants:
    a. $13,406,000 is available for grants. Under 7 CFR 1739.2, the 
Administrator has established a minimum grant amount of $50,000 and a 
maximum grant amount of $1,000,000 for FY 2009.
    b. Assistance instrument: Rural Development will execute grant 
documents appropriate to the project prior to any advance of funds with 
successful applicants.
    B. Community Connect grants cannot be renewed. Award documents 
specify the term of each award. Applications to extend existing 
projects are welcomed (grant applications must be submitted during the 
application window) and will be evaluated as new applications.

III. Eligibility Information

A. Who is eligible for grants? (See 7 CFR 1739.10.)

    1. Only entities legally organized as one of the following are 
eligible for Community Connect Grant Program financial assistance:
    a. An incorporated organization,
    b. An Indian tribe or tribal organization, as defined in 25 U.S.C. 
450b(b) and (c),

[[Page 17942]]

    c. A State or local unit of government,
    d. A cooperative, private corporation or limited liability company 
organized on a for-profit or not-for-profit basis.
    2. Individuals are not eligible for Community Connect Grant Program 
financial assistance directly.
    3. Applicants must have the legal capacity and authority to own and 
operate the broadband facilities as proposed in its application, to 
enter into contracts and to otherwise comply with applicable federal 
statutes and regulations.

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

    1. Required matching contributions. Please see 7 CFR 1739.14 for 
the requirement. Grant applicants must demonstrate a matching 
contribution, in cash or in kind (new, non-depreciated items), of at 
least fifteen (15) percent of the total amount of financial assistance 
requested. Matching contributions must be used for eligible purposes of 
Community Connect grant assistance (see 7 CFR 1739.12).
    2. To be eligible for a grant, the Project must (see 7 CFR 
1739.11):
    a. Serve a Rural Area where Broadband Transmission Service does not 
currently exist, to be verified by Rural Development prior to the award 
of the grant;
    b. Serve one Community recognized in the latest U.S. Census or the 
latest version of the Rand McNally Atlas;
    c. Deploy Basic Broadband Transmission Service, free of all charges 
for at least 2 years, to all Critical Community Facilities located 
within the proposed Service Area;
    d. Offer Basic Broadband Transmission Service to residential and 
business customers within the proposed Service Area; and
    e. Provide a Community Center with at least ten (10) Computer 
Access Points within the proposed Service Area, and make Broadband 
Transmission Service available therein, free of all charges to users 
for at least 2 years.

C. What is a completed application?

    See paragraph IV.B of this notice for a discussion of the items 
that make up a completed application. You may also refer to 7 CFR 
1739.15 for completed grant application items.

IV. Application and Submission Information

 A. Clarifications to Requirements for FY 2009

    1. Rural Development clarifies that the definition of ``Critical 
Community Facilities'' includes the mandatory Community Center.
    2. For all funding commitments, including all matching fund 
commitments and commitments made by the applicant, that are required to 
complete the Project in addition to the Rural Development grant, 
evidence must be submitted demonstrating that funding arrangements have 
been obtained. If the appropriate funding commitments are not included 
in the application, the application will be deemed ineligible for 
consideration. This evidence must:
    a. Clearly state the name of the entity that is making the 
commitment;
    b. The amount of the commitment; and
    c. The purpose of commitment.
    3. Rural Development clarifies that in order to qualify as eligible 
costs for grant coverage or matching fund contributions, operating 
expenses incurred in providing Broadband Transmission Service to 
Critical Community Facilities for the first 2 years of operation and in 
providing training and instruction must be for the following purposes 
subject to the specified maximum amounts:
    a. Salary for operations manager, not to exceed $30,000 per year.
    b. Salary for technical support staff, not to exceed $30,000 per 
year.
    c. Salary for community center staff, not to exceed $25,000 per 
year.
    d. Bandwidth expenses, not to exceed $25,000 per year.
    e. Training courses on the use of the Internet, not to exceed 
$15,000 per year.
    The operating costs to be funded by the grant or used as matching 
contributions cannot exceed in the aggregate $250,000. No other 
operating expenses are eligible for grant funding or to be considered 
as matching funds.
    4. Community means any incorporated or unincorporated town, 
village, or borough recognized in the latest decennial census as 
published by the Bureau of the Census or in the most recent edition of 
a Rand McNally Atlas that is located in a Rural Area.
    5. Rural Development clarifies that the economic need of the 
applicant's service territory will be based on the median household 
income (MHI) for the Community serviced and the state in which the 
Community is located, as determined by the U.S. Bureau of the Census at 
http://factfinder.census.gov. If the community was qualified using the 
Rand McNally Atlas, the applicant must use the MHI, contained in the 
latest decennial census, of the county in which the Community resides 
as the Community MHI. The economic need will no longer be based on the 
Per Capita Personal Income of the community.

 B. Where to Get Application Information

    The application guide, copies of necessary forms and samples, and 
the Community Connect Grant Program regulation are available from these 
sources:
    1. The Internet: http://www.usda.gov/rus/telecom/commconnect.htm, 
or http://www.grants.gov.
    2. The Rural Utilities Service Broadband Division, for paper copies 
of these materials: (202) 690-4673.

C. What constitutes a completed application?

    1. Detailed information on each item required can be found in the 
Community Connect Grant Program regulation and the Community Connect 
Grant Program application guide. Applicants are strongly encouraged to 
read and apply both the regulation and the application guide. This 
Notice does not change the requirements for a completed application for 
any form of Community Connect Grant Program financial assistance 
specified in the Community Connect Grant Program regulation. The 
Community Connect Grant Program regulation and the application guide 
provide specific guidance on each of the items listed and the Community 
Connect Grant Program application guide provides all necessary forms 
and sample worksheets.
    2. Applications should be prepared in conformance with the 
provisions in 7 CFR 1739, subpart A, and applicable USDA regulations 
including 7 CFR parts 3015, 3016, and 3019. Applicants must use the 
Rural Utilities Service Application Guide for this program containing 
instructions and all necessary forms, as well as other important 
information, in preparing their application. Completed applications 
must include the following:
    a. An Application for Federal Assistance. A completed Standard Form 
(SF) 424.
    b. An executive summary of the Project. The applicant must provide 
Rural Development with a general project overview.
    c. Scoring criteria documentation. Each grant applicant must 
address and provide documentation on how it meets each of the scoring 
criteria detailed 7 CFR 1739.17.
    d. System design. The applicant must submit a system design, 
including, narrative specifics of the proposal, associated costs, maps, 
engineering design studies, technical specifications and system 
capabilities, etc.
    e. Scope of work. The scope of work must include specific 
activities and services to be performed under the

[[Page 17943]]

proposal, who will carry out the activities and services, specific 
time-frames for completion, and a budget for all capital and 
administrative expenditures reflecting the line item costs for all 
grant purposes, the matching contribution, and other sources of funds 
necessary to complete the project.
    f. Community-Oriented Connectivity Plan. The applicant must provide 
a detailed Community-Oriented Connectivity Plan.
    g. Financial information and sustainability. The applicant must 
provide financial statements and information and a narrative 
description demonstrating the sustainability of the Project.
    h. A statement of experience. The applicant must provide a written 
narrative describing its demonstrated capability and experience, if 
any, in operating a broadband telecommunications system.
    i. Evidence of legal authority and existence. The applicant must 
provide evidence of its legal existence and authority to enter into a 
grant agreement with RUS and to perform the activities proposed under 
the grant application.
    j. Funding commitment from other sources. If the Project requires 
additional funding from other sources in addition to the Rural 
Utilities Service grant, the applicant must provide evidence that 
funding agreements have been obtained to ensure completion of the 
Project.
    k. Compliance with other federal statutes. The applicant must 
provide evidence of compliance with other federal statutes and 
regulations, including, but not limited to the following:
    (i) 7 CFR part 15, subpart A--Nondiscrimination in Federally 
Assisted Programs of the Department of Agriculture--Effectuation of 
Title VI of the Civil Rights Act of 1964.
    (ii) 7 CFR part 3015--Uniform Federal Assistance Regulations.
    (iii) 7 CFR part 3017--Governmentwide Debarment and Suspension 
(Non-procurement).
    (iv) 7 CFR part 3018--New Restrictions on Lobbying.
    (v) 7 CFR part 3021--Governmentwide Requirements for Drug-Free 
Workplace (Financial Assistance).
    (vi) Certification regarding Architectural Barriers.
    (vii) Certification regarding Flood Hazard Precautions.
    (viii) An environmental report, in accordance with 7 CFR 1794.
    (ix) Certification that grant funds will not be used to duplicate 
lines, facilities, or systems providing Broadband Transmission Service.
    (x) Federal Obligation Certification on Delinquent Debt.
    3. DUNS Number. As required by the OMB, all applicants for grants 
must now supply a Dun and Bradstreet Data Universal Numbering System 
(DUNS) number when applying. The SF-424 contains a field for you to use 
when supplying your DUNS number. Obtaining a DUNS number costs nothing 
and requires a short telephone call to Dun and Bradstreet. Please see 
the Community Connect Web site or Grants.gov for more information on 
how to obtain a DUNS number or how to verify your organization's 
number.

C. How Many Copies of an Application Are Required?

    1. Applications submitted on paper: Submit the original application 
and two (2) copies to Rural Development.
    2. Electronically submitted applications: The additional paper 
copies are not necessary if you submit the application electronically 
through Grants.gov.

 D. How and Where to Submit an Application

    Grant applications may be submitted on paper or electronically.
    1. Submitting applications on paper.
    a. Address paper applications for grants to the Rural Utilities 
Service, U.S. Department of Agriculture, 1400 Independence Ave., SW., 
Room 2868, STOP 1599, Washington, DC 20250-1599. Applications should be 
marked ``Attention: Director, Broadband Division, Rural Utilities 
Service.''
    b. Paper applications must show proof of mailing or shipping 
consisting of one of the following:
    (i) A legibly dated U.S. Postal Service (USPS) postmark;
    (ii) A legible mail receipt with the date of mailing stamped by the 
USPS; or
    (iii) A dated shipping label, invoice, or receipt from a commercial 
carrier.
    c. Due to screening procedures at the Department of Agriculture, 
packages arriving via the USPS are irradiated, which can damage the 
contents. Rural Development encourages applicants to consider the 
impact of this procedure in selecting their application delivery 
method.
    2. Electronically submitted applications.
    a. Applications will not be accepted via facsimile machine 
transmission or electronic mail.
    b. Electronic applications for grants will be accepted if submitted 
through the Federal government's Grants.gov initiative at http://www.grants.gov.
    c. How to use Grants.gov:
    (i) Navigate your Web browser to http://www.grants.gov.
    (ii) Follow the instructions on that Web site to find grant 
information.
    (iii) Download a copy of the application package.
    (iv) Complete the package off-line.
    (v) Upload and submit the application via the Grants.gov Web site.
    d. Grants.gov contains full instructions on all required passwords, 
credentialing and software.
    e. RUS encourages applicants who wish to apply through Grants.gov 
to submit their applications in advance of the deadline.
    f. If a system problem occurs or you have technical difficulties 
with an electronic application, please use the customer support 
resources available at the Grants.gov Web site.

E. Deadlines

    1. Paper applications must be postmarked and mailed, shipped, or 
sent overnight no later than June 19, 2009 to be eligible for FY 2009 
grant funding. Late applications are not eligible for FY 2009 grant 
funding.
    2. Electronic grant applications must be received by June 19, 2009 
to be eligible for FY 2009 funding. Late applications are not eligible 
for FY 2009 grant funding.

F. Funding Restrictions

1. Eligible Grant Purposes
    Grant funds may be used to finance:
    a. The construction, acquisition, or leasing of facilities, 
including spectrum, to deploy Broadband Transmission Service to all 
participating Critical Community Facilities and all required facilities 
needed to offer such service to residential and business customers 
located within the proposed Service Area;
    b. The improvement, expansion, construction, or acquisition of a 
Community Center that furnishes free access to broadband Internet 
service, provided that the Community Center is open and accessible to 
area residents before, during, and after normal working hours and on 
Saturday or Sunday. Grant funds provided for such costs shall not 
exceed the greater of five percent (5%) of the grant amount requested 
or $100,000;
    c. End-User Equipment needed to carry out the Project;
    d. Operating expenses incurred in providing Broadband Transmission 
Service to Critical Community Facilities for the first 2 years of 
operation and in providing training and instruction; and

[[Page 17944]]

    e. The purchase of land, buildings, or building construction needed 
to carry out the Project.
 2. Ineligible Grant Purposes
    a. Grant funds may not be used to finance the duplication of any 
existing Broadband Transmission Service provided by another entity.
    b. Facilities financed with grant funds cannot be utilized, in any 
way, to provide local exchange telecommunications service to any person 
or entity already receiving such service.
    3. Please see 7 CFR 1739.3 for definitions, 7 CFR 1739.12 for 
eligible grant purposes, and 7 CFR 1739.13 for ineligible grant 
purposes

V. Application Review Information

A. Criteria

    1. Grant applications are scored competitively and subject to the 
criteria listed below.
    2. Grant application scoring criteria (total possible points: 100) 
See 7 CFR 1739.17 for the items that will be reviewed during scoring 
and for scoring criteria.
    a. The rurality of the Project (up to 40 points);
    b. The economic need of the Project's Service Area (up to 30 
points); and
    c. The ``community-oriented connectivity'' benefits derived from 
the proposed service (up to 30 points).

B. Review Standards

    1. All applications for grants must be delivered to Rural 
Development at the address and by the date specified in this notice 
(see also 7 CFR 1739.2) to be eligible for funding. Rural Development 
will review each application for conformance with the provisions of 
this part. Rural Development may contact the applicant for additional 
information or clarification.
    2. Incomplete applications as of the deadline for submission will 
not be considered. If an application is determined to be incomplete, 
the applicant will be notified in writing and the application will be 
returned with no further action.
    3. Applications conforming with this part will then be evaluated 
competitively by a panel of Rural Development employees selected by the 
Administrator of Rural Development Utilities Program, and will be 
awarded points as described in the scoring criteria in 7 CFR 1739.17. 
Applications will be ranked and grants awarded in rank order until all 
grant funds are expended.
    4. Regardless of the score an application receives, if Rural 
Development determines that the Project is technically or financially 
infeasible, Rural Development will notify the applicant, in writing, 
and the application will be returned with no further action.

C. Selection Process

    Grant applications are ranked by final score. Rural Development 
selects applications based on those rankings, subject to the 
availability of funds.

VI. Award Administration Information

A. Award Notices

    Rural Development recognizes that each funded project is unique, 
and therefore may attach conditions to different projects' award 
documents. Rural Development generally notifies applicants whose 
projects are selected for awards by faxing an award letter. Rural 
Development follows the award letter with a grant agreement that 
contains all the terms and conditions for the grant. An applicant must 
execute and return the grant agreement, accompanied by any additional 
items required by the grant agreement.

B. Administrative and National Policy Requirements

    The items listed in paragraph IV.B.2.k of this notice, and the 
Community Connect Grant Program regulation, application guide and 
accompanying materials implement the appropriate administrative and 
national policy requirements.

C. Reporting

    1. Performance reporting. All recipients of Community Connect Grant 
Program financial assistance must provide annual performance activity 
reports to Rural Development until the project is complete and the 
funds are expended. A final performance report is also required; the 
final report may serve as the last annual report. The final report must 
include an evaluation of the success of the project. See 7 CFR 1739.19.
    2. Financial reporting. All recipients of Community Connect Grant 
Program financial assistance must provide an annual audit, beginning 
with the first year a portion of the financial assistance is expended. 
Audits are governed by United States Department of Agriculture audit 
regulations. Please see 7 CFR 1739.20.

VII. Agency Contacts

    A. Web site: http://www.usda.gov/rus/commconnect.htm. This Web site 
maintains up-to-date resources and contact information for the 
Community Connect Grant Program.
    B. Phone: 202-690-4673.
    C. Fax: 202-690-4389.
    D. Main point of contact: Kenneth Kuchno, Director, Broadband 
Division, Rural Development Utilities Program, U.S. Department of 
Agriculture.

    Dated: April 2, 2009.
James R. Newby,
Acting Administrator, Rural Utilities Service.
[FR Doc. E9-9006 Filed 4-17-09; 8:45 am]
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