50604 Federal Register / Vol. 86, No. 173 / Friday, September 10, 2021 / Rules and Regulations 

Finally, in its discretion, CBP will not 

assert any exemptions with regard to 

accessing or amending an individual’s 

application data in a trusted or registered 

traveler program or accessing their final 

membership determination in the trusted or 

registered traveler programs. 

Exemptions from these particular 

subsections are justified, on a case-by-case 

basis to be determined at the time a request 

is made, for the following reasons: 

(a) From subsection (c)(3) and (4) 

(Accounting for Disclosures) because release 

of the accounting of disclosures could alert 

the subject of an investigation of an actual or 

potential criminal, civil, or regulatory 

violation to the existence of that investigation 

and reveal investigative interest on the part 

of DHS as well as the recipient agency. 

Disclosure of the accounting would therefore 

present a serious impediment to law 

enforcement efforts and/or efforts to preserve 

national security. Disclosure of the 

accounting would also permit the individual 

who is the subject of a record to impede the 

investigation, to tamper with witnesses or 

evidence, and to avoid detection or 

apprehension, which would undermine the 

entire investigative process. When an 

investigation has been completed, 

information on disclosures made may 

continue to be exempted if the fact that an 

investigation occurred remains sensitive after 

completion. 

(b) From subsection (d) (Access and 

Amendment to Records) because access to 

certain records contained in this system of 

records could inform the subject of an 

investigation of an actual or potential 

criminal, civil, or regulatory violation to the 

existence of that investigation and reveal 

investigative interest on the part of DHS or 

another agency. Access to certain records 

could also permit the individual who is the 

subject of a record to impede the 

investigation, to tamper with witnesses or 

evidence, and to avoid detection or 

apprehension. Amendment of certain records 

could interfere with ongoing investigations 

and law enforcement activities. Further, 

permitting amendment to counterintelligence 

records after an investigation has been 

completed would impose an unmanageable 

administrative burden. In addition, 

permitting access and amendment to such 

information could disclose security-sensitive 

information that could be detrimental to 

homeland security. 

(c) From subsection (e)(1) (Relevancy and 

Necessity of Information) because in the 

course of investigations into potential 

violations of federal law, the accuracy of 

information obtained or introduced 

occasionally may be unclear, or the 

information may not be strictly relevant or 

necessary to a specific investigation. In the 

interests of effective law enforcement, it is 

appropriate to retain all information that may 

aid in establishing patterns of unlawful 

activity. 

(d) From subsection (e)(2) (Collection of 

Information from Individuals) because 

requiring that information be collected from 

the subject of an investigation would alert the 

subject to the nature or existence of the 

investigation, thereby interfering with that 

investigation and related law enforcement 

activities. 

(e) From subsection (e)(3) (Notice to 

Subjects) because providing such detailed 

information could impede law enforcement 

by compromising the existence of a 

confidential investigation or reveal the 

identity of witnesses or confidential 

informants. 

(f) From subsections (e)(4)(G), (e)(4)(H), 

and (e)(4)(I) (Agency Requirements) and (f) 

(Agency Rules), because portions of this 

system are exempt from the individual access 

provisions of subsection (d) for the reasons 

noted above, and therefore DHS is not 

required to establish requirements, rules, or 

procedures with respect to such access. 

Providing notice to individuals with respect 

to existence of records pertaining to them in 

the system of records or otherwise setting up 

procedures pursuant to which individuals 

may access and view records pertaining to 

themselves in the system would undermine 

investigative efforts and reveal the identities 

of witnesses, and potential witnesses, and 

confidential informants. 

(g) From subsection (e)(5) (Collection of 

Information) because with the collection of 

information for law enforcement purposes, it 

is impossible to determine in advance what 

information is accurate, relevant, timely, and 

complete. 

(h) From subsection (e)(8) (Notice on 

Individuals) because compliance would 

interfere with DHS’s ability to obtain, serve, 

and issue subpoenas, warrants, and other law 

enforcement mechanisms that may be filed 

under seal and could result in disclosure of 

investigative techniques, procedures, and 

evidence. 

(i) From subsection (g)(1) (Civil Remedies) 

to the extent that the system is exempt from 

other specific subsections of the Privacy Act. 

Lynn Parker Dupree, 

Chief Privacy Officer, U.S. Department of 

Homeland Security. 

[FR Doc. 2021–19472 Filed 9–9–21; 8:45 am] 

BILLING CODE 9111–14–P 

DEPARTMENT OF AGRICULTURE 

Rural Utilities Service 

7 CFR Parts 1735 and 1737 

[RUS–20–TELECOM–0044] 

RIN 0572–AC48 

Implementation of 

Telecommunications Provisions of the 

Agricultural Improvement Act of 2018 

AGENCY: Rural Utilities Service, 

Department of Agriculture (USDA). 

ACTION: Final rule; request for 

comments. 

SUMMARY: The Rural Utilities Service 

(RUS) is issuing a final rule with 

comment to implement statutory 

provisions of the Agriculture 

Improvement Act of 2018 (2018 Farm 

Bill). The intent of this rule is to modify 

existing regulations to include the 

statutory revisions authorized by the 

2018 Farm Bill. 

DATES: 

Effective date: This final rule with 

comment is effective September 10, 

2021. 

Comment date: Comments due on or 

before November 9, 2021. 

ADDRESSES: You may submit comments, 

identified by docket number RUS–20– 

TELECOM–0044 and Regulatory 

Information Number (RIN) number 

0572–AC48 through https://

www.regulations.gov. 

Instructions: All submissions received 

must include the Agency name and 

docket number or RIN for this 

rulemaking. All comments received will 

be posted without change to https://

www.regulations.gov, including any 

personal information provided. 

Docket: For access to the docket to 

read background documents or 

comments received, go to https://

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: For 

general inquiries, contact Laurel 

Leverrier, Assistant Administrator 

Telecommunications Program, Rural 

Utilities Service, U.S. Department of 

Agriculture (USDA), email: 

laurel.leverrier@usda.gov, telephone: 

(202) 720–9556. 

SUPPLEMENTARY INFORMATION: 

Executive Orders 12866 and 13563 

Executive Orders 12866 and 13563 

direct agencies to assess all costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches to maximize net benefits 

(including potential economic, 

environmental, public health, and safety 

advantages; distributive impacts; and 

equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. This rule 

has been determined to be significant 

and was reviewed by the Office of 

Management and Budget (OMB) under 

Executive Order 12866. In accordance 

with Executive Order 12866, the Agency 

conducted a Regulatory Impact 

Analysis, outlining the costs and 

benefits of implementing this program 

in rural America. The complete analysis 

is available in Docket No. RUS–20– 

TELECOM–0044. The following is a 

summary discussion of the Analysis: 

This final rule does not directly 

address any specific market failure. The 

Agency is publishing this rulemaking 

action to codify the mandatory changes 


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outlined in the 2018 Farm Bill. Many of 

the benefits provided by these 

mandatory changes include: 

(1) Providing new information 

regarding grant eligibility in conjunction 

with the Farm Bill Broadband Program 

covered under 7 CFR part 1738; 

(2) General language clarifications and 

duplication removals; 

(3) Providing information for, or the 

removals of, specific service 

requirements; 

(4) Changes in program financing 

thresholds to conform to the 2018 Farm 

Bill requirements; 

(5) Additional application 

information to ensure criteria are met; 

(6) New reporting requirements that 

ensure similar data is reported and 

collected across multiple USDA 

broadband programs to improve 

oversight and integrity; and 

(7) Changes in language to ensure that 

programs can meet funding deadlines 

while still maintaining the integrity of 

the environmental review process. 

These changes are expected to result 

in great transparency from the Agency 

and increased financing opportunities 

for providers of rural 

telecommunications services. 

Telecommunications services are having 

a profound effect on the Nation’s 

economy, its strength and its growth by 

reducing the barriers of distance, 

remoteness, and time. 

Congressional Review Act 

Pursuant to the Congressional Review 

Act (5 U.S.C. 801 et seq.), the Office of 

Information and Regulatory Affairs has 

designated this rule as not being a major 

rule, as defined by 5 U.S.C. 804(2). 

Executive Order 12988, Civil Justice 

Reform 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. The Agency has determined 

that this rule meets the applicable 

standards provided in section 3 of the 

Executive order. In addition, all state 

and local laws and regulations that 

conflict with this rule will be 

preempted. No retroactive effect will be 

given to this rule. 

Executive Order 12372, 

Intergovernmental Consultation 

This final rule has been excluded 

from the scope of Executive Order 

12372 (Intergovernmental Consultation), 

which may require a consultation with 

state and local officials. See 

‘‘Department Programs and Activities 

Excluded from Executive Order 12372,’’ 

50 FR 47034 (Nov. 14, 1985). 

Administrative Procedures Act 

The Administrative Procedures Act 

(APA) exempts from notice and 

comment requirements rules ‘‘relating to 

agency management or personnel or to 

public property, loans, grants, benefits, 

or contracts’’ (5 U.S.C.553(a)(2)). The 

Rural Telecommunications Program 

provides loans to borrowers at interest 

rates and on terms that are more 

favorable than those generally available 

from the private sector. RUS borrowers, 

as a result of obtaining Federal 

financing, receive economic benefits 

under the loan program. Based on this, 

any changes to the program fall under 

this exemption. 

Regulatory Flexibility Act Certification 

The Regulatory Flexibility Act (5 

U.S.C. 601–602) (RFA) generally 

requires an agency to prepare a 

regulatory flexibility analysis of any rule 

subject to notice and comment 

rulemaking requirements under the 

APA or any other statute. As outlined 

above, this rule is not subject to the 

APA under 5 U.S.C. 553(a)(2). 

Environmental Impact Statement 

This final rule has been reviewed in 

accordance with 7 CFR part 1970 

(‘‘Environmental Policies and 

Procedures’’). The Agency has 

determined that (i) this action meets the 

criteria established in 7 CFR 1970.53(f); 

(2) no extraordinary circumstances 

exist; and (iii) the action is not 

‘‘connected’’ to other actions with 

potentially significant impacts, is not 

considered a ‘‘cumulative action’’ and is 

not precluded by 40 CFR 1506.1. 

Therefore, the Agency has determined 

that the action does not have a 

significant effect on the human 

environment, and therefore neither an 

Environmental Assessment nor an 

Environmental Impact Statement is 

required. 

Catalog of Federal Domestic Assistance 

The Catalog of Federal Domestic 

Assistance (CFDA) number assigned to 

the Telecommunications Infrastructure 

Loans & Guarantees Program is 10.851. 

The Catalog is available on the internet 

at https://beta.sam.gov/. The 

Government Publishing Office (GPO) 

prints and sells the CFDA to interested 

buyers. For information about 

purchasing the Catalog of Federal 

Domestic Assistance from GPO, call the 

Superintendent of Documents at (202) 

512–1800 or toll free at (866) 512–1800, 

or access GPO’s online bookstore at 

https://bookstore.gpo.gov. 

Unfunded Mandates 

This rule contains no federal 

mandates (under the regulatory 

provisions of Title II of the Unfunded 

Mandates Reform Act of 1995) for state, 

local, and tribal governments or the 

private sector. Therefore, this rule is not 

subject to the requirements of sections 

202 and 205 of the Unfunded Mandates 

Reform Act of 1995. 

E-Government Act Compliance 

Rural Development is committed to 

complying with the E-Government Act 

of 2002, which requires Government 

agencies in general to provide the public 

the option of submitting information or 

transacting business electronically to 

the maximum extent possible. 

Executive Order 13132, Federalism 

The policies contained in this rule do 

not have any substantial direct effect on 

states, on the relationship between the 

National Government and the states, or 

on the distribution of power and 

responsibilities among the various 

levels of government. Nor does this rule 

impose substantial direct compliance 

costs on state and local governments. 

Therefore, consultation with the states 

is not required. 

Executive Order 13175, Consultation 

and Coordination With Indian Tribal 

Governments 

This rule has been reviewed in 

accordance with the requirements of 

Executive Order 13175, ‘‘Consultation 

and Coordination with Indian Tribal 

Governments.’’ Executive Order 13175 

requires Federal agencies to consult and 

coordinate with Tribes on a 

government-to-government basis on 

policies that have Tribal implications, 

including regulations, legislative 

comments or proposed legislation, and 

other policy statements or actions that 

have substantial direct effects on one or 

more Indian Tribes, on the relationship 

between the Federal Government and 

Indian Tribes, or on the distribution of 

power and responsibilities between the 

Federal Government and Indian Tribes. 

Broadband programs in general have 

a significant impact on Tribes. These 

specific statutory provisions, however, 

were predominantly mandatory, leaving 

very few areas for discretion for Tribal 

consultation and guidance. The primary 

areas of discretion were: (1) Removing 

guarantee fee language, (2) correcting a 

citation, (3) removing obsolete year 2000 

compliance information and (4) 

removing a duplicative refinancing 

section. 

USDA has held a series of Tribal 

consultations conducted by USDA Rural 

Development and USDA Office of Tribal 


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50606 Federal Register / Vol. 86, No. 173 / Friday, September 10, 2021 / Rules and Regulations 

Relations regarding tribal broadband. 

The consultations included 

consultations on (1) tribal broadband 

specifically (both at the national level 

and numerous regional and state level 

tribal consultations), (2) the USDA 

ReConnect broadband program, (3) 

participation with Department of 

Commerce NTIA on the Tribal 

Broadband Connectivity Program, and 

on (4) Executive Order 13985, 

‘‘Advancing Racial Equity and Support 

for Underserved Communities Through 

the Federal Government’’ (1/20/21). 

Through these consultations, the USDA 

compiled the following Tribal 

government requested ‘‘Tribal 

Broadband Principles’’ which were 

considered and used where applicable 

in drafting this regulation: 

• Require Tribal resolution. Require 

any new or legacy applicant for USDA 

funds proposing to serve Tribal lands to 

have a Tribal resolution of support to 

qualify for eligibility. 

• Increase flexibility. Read any 

ambiguous statutory requirements and 

limitations as broadly as possible and in 

favor of Tribes in light of our trust 

obligations. 

• Narrow duplication definition. 

Read ‘‘duplication’’ limitations as 

broadly and as flexibly as possible when 

working with Tribal nations to ensure 

their eligibility for USDA programs to 

serve their own lands. 

• All self-certification. Tribal nations 

must be the certifiers of whether they 

are being served/are underserved or 

other similar requirements. 

• Enforce compliance with Tribal 

laws. Include a requirement of 

compliance with Tribal laws and 

regulations in the sections of loan and 

grant agreements that require 

compliance with state and local laws. 

Enforce the terms of Federal loan and 

grant agreements which require 

compliance with local (including tribal) 

laws and regulatory bodies. 

Civil Rights Impact Analysis 

The Rural Development’s Civil Rights 

Office reviewed this rule in accordance 

with USDA Regulation 4300–4, ‘‘Civil 

Rights Impact Analysis,’’ to identify any 

major civil rights impacts the rule might 

have on program participants on the 

basis of age, race, color, national origin, 

sex, or disability. The Rural 

Development’s Civil Rights Office 

worked with the RUS program offices to 

compile program descriptions, data, and 

outreach activities strategies for the 

subject program. The Rural 

Development’s Civil Rights Office 

assessed civil rights implications and 

impacts of eligibility criteria, methods 

of administration, and other 

requirements associated with the final 

rule including strategies to eliminate, 

alleviate, or mitigate (where applicable) 

civil rights impacts identified in the 

Civil Rights Impact Analysis. The Rural 

Development’s Civil Rights Office agrees 

to monitor the implementation of all 

civil rights strategies that were 

instituted in connection with this final 

rule, evaluate their effectiveness, and 

take follow-up action where civil rights 

impacts may ensue. 

Information Collection and 

Recordkeeping Requirements 

The Information Collection and 

Recordkeeping requirements contained 

in this rule have been approved under 

OMB Control Number 0572–0079 and 

submitted for approval under OMB 

Control Number 0572–0154. 

Background 

Rural Development is a mission area 

within the USDA comprising the Rural 

Utilities Service, Rural Housing Service, 

and Rural Business/Cooperative Service. 

Rural Development’s mission is to 

increase economic opportunity and 

improve the quality of life for all rural 

Americans. Rural Development meets 

its mission by providing loans, loan 

guarantees, grants, and technical 

assistance through more than 40 

programs aimed at creating and 

improving housing, business, and 

infrastructure throughout rural America. 

The Agricultural Improvement Act of 

2018 (2018 Farm Bill) made mandatory 

changes to the Rural Telephone Loan 

Program administered by the 

Telecommunications Program of the 

Rural Utilities Service. 

These modifications to the program’s 

regulations will allow RUS to fully 

implement the requirements of the 2018 

Farm Bill. RUS is also taking the 

opportunity to make minor changes to 

the program regulations that will update 

or correct existing regulatory citations, 

data speeds, and other program 

provisions to bring them in line with the 

statutory changes required by the 2018 

Farm Bill. 

Changes to 7 CFR part 1735 ‘‘General 

Policies, Types of Loans, Loan 

Requirements—Telecommunications 

Program’’ include: 

Adding paragraph (d) to § 1735.1. The 

addition of paragraph (d) provides 

notice to applicants that they may be 

eligible to receive grant assistance 

through Title VI which is governed by 

7 CFR part 1738. The Agency 

determined this was the most effective 

way to provide this information. 

The addition of a definition of Retail 

Broadband Service to § 1735.2. The 

definition provides information to the 

public on what the Agency considers 

‘‘retail broadband service’’ for the 

purposes of this part. 

Clarifying, at § 1735.10(a)(2)(ii), that 

multiuse networks that provide critical 

transportation-related services are 

considered integrated interoperable 

emergency communications and 

therefore are an eligible loan purpose. 

Removing the requirement for a 

certificate of convenience and necessity 

from § 1735.12. While necessary when 

the program was implemented, the 

prevalence of services at this time and 

changes to state regulatory bodies has 

rendered the certificate meaningless for 

Agency purposes. The Agency also 

expanded the authority of the RUS 

Administrator, at § 1735.12(a), to 

determine non-duplication of services. 

Previously the Administrator only made 

that determination for states in which 

there was no regulatory body. This 

change will reduce the burden on 

applicants and aid in streamlining the 

application process. Clarification 

regarding non-duplication verification 

for existing borrowers is provided by the 

Agency, at § 1735.12(b). 

Modifying the criteria at § 1735.12(c) 

to remove specific transmission and 

reception rates and require coverage as 

described in § 1735.11 for local area 

exchanges. These changes remove 

outdated terminology, create a single 

requirement which reduces confusion 

and creates consistency for all 

applicants. 

Changing the thresholds, at § 1735.21, 

regarding refinancing to conform to 

2018 Farm Bill requirements. Prior to 

the 2018 Farm Bill, the Agency was only 

able to refinance non-RUS loans as long 

as no more than 40 percent of the new 

loan was used for refinancing. The 2018 

Farm Bill removed the 40 percent cap 

and extended the ability to refinance 

100 percent of non-RUS and RUS debt. 

Refinancing limits will be published in 

the funding opportunity announcement 

opening an application window and 

based on amounts that are authorized 

for a given fiscal year. However, the 

Agency is considering limiting 

refinancing of non-RUS loans to 50 

percent of the total loan amount while 

allowing 100 percent refinancing of 

existing RUS loans. Additional 

information was added to this section to 

provide information on loans eligible for 

refinancing as well as maximum 

amortizations. 

Modifications to § 1735.22(f), (g), and 

(i) to remove outdated references to year 

2000 compliant systems and correct an 

incorrect reference that was carried 

forward from a previous version of the 

regulation, respectively. 


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The addition of public notice filing 

and response requirements at § 1735.23. 

The notice will allow existing service 

providers to respond to pending 

applications before the agency that 

propose to provide broadband service 

outside of their territory that receives 

federal universal support. 

New reporting requirements at 

§ 1735.24. These new requirements 

ensure similar data is reported and 

collected across multiple USDA 

broadband programs to improve 

oversight and integrity. 

Removal of refinancing language at 

§ 1735.52 that is now duplicative due to 

the changes at § 1735.21. 

Changes to 7 CFR part 1737, ‘‘PreLoan Policies and Procedures Common 

to Insured and Guaranteed 

Telecommunications Loans’’ include 

multiple changes to § 1737.22 to include 

the removal of the requirement for a 

certified copy of a certificate of 

convenience and necessity as that 

certificate is no longer required due to 

changes implemented by the 2018 Farm 

Bill. 

Additional application information 

was added to § 1737.22(c) and (e) for 

loans involving refinancing. This 

additional information is necessary to 

ensure that the loans to be refinanced 

meet the criteria set forth in this 

regulation and the funding opportunity 

announcement that opens a funding 

window. 

Changes at § 1737.90 to include 

language allowing obligation but not 

disbursal of funds, under certain 

circumstances, prior to the completion 

of historical or other types of review 

identified during the environmental 

review. This change allows for 

obligation of funds so awardees know 

that funds will be available while still 

maintaining the integrity of the 

environmental review process. 

Amendments and Comparison to the 

Current Regulation 

The Telecommunications Program 

and the organizations that apply for its 

funding face significant challenges 

putting in place projects that can deliver 

and maintain robust, affordable 

telecommunication services to rural 

consumers. These challenges include 

rapidly evolving technology, 

competition, and the ever-present 

higher costs of serving rural areas. The 

final rule will implement statutory 

changes required by the 2018 Farm Bill, 

as well as minor conforming changes 

that will update and/or correct existing 

regulatory citations, data speeds and 

other program provisions to ensure they 

are in line with the required statutory 

changes. The changes are expected to 

create greater program transparency and 

ensure program rules are clear and 

consistent. 

Table 1 below shows which sections 

of the regulations were changed due to 

the statutory authority contained in the 

2018 Farm Bill and those changes where 

RUS is exercising discretion to improve 

program clarity. If the sections of the 

regulations are not specifically stated 

within the table, no changes were made 

to those sections. 

TABLE 1—STATUTORY AND DISCRETIONARY CHANGES TO THE REGULATIONS

Section of regulation Revision 2018 Farm Bill 

requirement Discretionary 

7 CFR Part 1735—General Policies, Types of Loans, Loan Requirements—Telecommunications Program 

§ 1735.1 General Statement ......... Paragraph that entities applying under this part could be eligible for 

grant funds under 7 CFR 1738.101 added.

X ........................

§ 1735.2 Definitions ....................... Retail Broadband service definition added ............................................... X ........................

§ 1735.10 General ......................... Updated terminology for 911 service added ............................................. X ........................

Language on guaranteed fees removed ................................................... ........................ X 

§ 1735.12 Nonduplication .............. Certificate of Convenience and Necessity requirement was removed ..... X ........................

Outdated broadband speeds were removed ............................................ X ........................

§ 1735.21 Refinancing Loans ........ Updated with new RUS refinancing authorities ........................................ X ........................

§ 1735.22 Loan Security ................ ‘‘Year 2000’’ system compliance language was removed ........................ ........................ X 

Paragraph citation errors corrected .......................................................... ........................ X 

§ 1735.23 Public Notice ................. New public notice requirements and timeframe added ............................ X ........................

§ 1735.24 Additional Reporting 

Requirements.

New reporting requirements and policies added ...................................... X ........................

§ 1735.51 Required Findings ........ Certificate of Convenience and Necessity requirement removed ............ X ........................

§ 1735.52 Findings Required for 

Particular Loan Purposes.

Duplicative refinancing language removed ............................................... ........................ X 

7 CFR Part 1737—Pre-Loan Policies and Procedures Common to Insured and Guaranteed Telecommunications Loans 

§ 1737.22 Supplemental Information.Certificate of Convenience and Necessity requirement removed ............ X ........................

Refinancing requirements updated ........................................................... X ........................

Public Notice requirements added ............................................................ X ........................

§ 1737.90 Loan Approval Requirements.Language added to allow obligations prior to environmental reviews 

being complete if related to specific broadband equipment.

X ........................

List of Subjects 

7 CFR Part 1735 

Loan programs-communications, 

Reporting and recordkeeping 

requirements, Rural areas, Telephone. 

7 CFR Part 1737 

Loan programs-communications, 

Reporting and recordkeeping 

requirements, Rural areas, Telephone. 

For reasons set forth in the preamble, 

7 CFR parts 1735 and 1737 are amended 

as follows: 

PART 1735—GENERAL POLICIES, 

TYPES OF LOANS, LOAN 

REQUIREMENTS— 

TELECOMMUNICATIONS PROGRAM 

■ 1. The authority citation for part 1735 

continues to read as follows: 


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50608 Federal Register / Vol. 86, No. 173 / Friday, September 10, 2021 / Rules and Regulations 

Authority: 7 U.S.C. 901 et seq., 1921 et 

seq., and 6941 et seq. 

Subpart A—General 

■ 2. Amend § 1735.1 by adding 

paragraph (d) to read as follows: 

§ 1735.1 General statement. 

* * * * * 

(d) Entities applying for a loan under 

this part may be eligible to receive a 

grant under 7 CFR 1738.101, for a 

portion of the project providing retail 

broadband service. 

■ 3. Amend § 1735.2 by adding, in 

alphabetical order, the definition of 

‘‘Retail broadband service’’ to read as 

follows: 

§ 1735.2 Definitions. 

* * * * * 

Retail broadband service means any 

technology identified by the 

Administrator as having the capacity to 

provide transmission facilities that 

enable the subscriber to receive a 

minimum level of service equal to at 

least a downstream transmission 

capacity of 25 megabits per second 

(Mbps) and an upstream transmission 

capacity of 3 Mbps. The agency may 

change the minimum transmission 

capacity by way of notice in the Federal 

Register. The minimum transmission 

capacity may be higher than 25 Mbps 

downstream and 3 Mbps upstream but 

cannot be lower. 

* * * * * 

Subpart B—Loan Purposes and Basic 

Policies 

■ 4. Amend § 1735.10 by: 

■ a. Revising paragraph (a)(2)(ii); 

■ b. Removing paragraph (e); and 

■ c. Redesignating paragraphs (f) and (g) 

as paragraphs (e) and (f), respectively. 

The revision reads as follows: 

§ 1735.10 General. 

(a) * * * 

(2) * * * 

(ii) Integrated interoperable 

emergency communications, including 

multiuse networks that provide critical 

transportation-related information 

services in addition to emergency 

communications services; 

* * * * * 

■ 5. Amend § 1735.12 by: 

■ a. Revising paragraph (a) and (b); 

■ b. Removing paragraphs (c)(2) and (3); 

■ c. Redesignating paragraphs (c)(4) 

through (12) as paragraphs (c)(2) 

through (10), respectively; and 

■ d. Revising newly redesignated 

paragraph (c)(5). 

The revisions read as follows: 

§ 1735.12 Nonduplication. 

(a) A loan will not be made unless the 

Administrator determines that no 

duplication of lines, facilities, or 

systems already providing reasonably 

adequate services shall result from such 

a loan. 

(b) Existing borrowers that apply to 

upgrade existing facilities in their 

existing service area are exempt from 

the non-duplication requirement in 

paragraph (a) of this section. 

(c) * * * 

(5) The LEC’s network is capable of 

providing retail broadband service as 

defined in § 1735.2 to any subscriber 

location. 

* * * * * 

■ 6. Revise § 1735.21 to read as follows: 

§ 1735.21 Refinancing loans. 

(a) Any new direct or guaranteed loan 

authority provided under the RE Act 

may be used to refinance an outstanding 

obligation of the applicant on another 

loan made under Titles II and VI of the 

RE Act, or on a non-RUS loan if that 

loan would have been for eligible 

telecommunications purposes under the 

RE Act provided that: 

(1) The applicant is current with its 

payments on the RUS loan(s) to be 

refinanced; and 

(2) The amortization period for that 

portion of the loan request that will be 

needed for refinancing will not exceed 

the remaining amortization period for 

the loan(s) to be refinanced. If multiple 

notes are being refinanced, an average 

remaining amortization period will be 

calculated based on the weighted dollar 

average of the notes being refinanced. 

(b) The amount that can be refinanced 

will be included in the funding 

opportunity announcement that will 

open a funding window based on the 

funds authorized for any given fiscal 

year. 

■ 7. Amend § 1735.22 by revising 

paragraphs (f), (g), and (i) to read as 

follows: 

§ 1735.22 Loan security. 

* * * * * 

(f) RUS makes loans only if the 

borrower’s entire system, including the 

facilities to be constructed with the 

proceeds of the loan, is economically 

feasible, as determined by RUS. 

(g) For purposes of determining 

compliance with TIER requirements, 

unless a borrower whose existing 

mortgage contains TIER maintenance 

requirements notifies RUS in writing 

differently, RUS will apply the 

requirements described in paragraph (h) 

of this section to the borrower regardless 

of the provisions of the borrower’s 

existing mortgage. 

* * * * * 

(i) Nothing in this section shall affect 

any rights of supplemental lenders 

under the RUS mortgage, or other 

creditors of the borrower, to limit a 

borrower’s TIER requirement to a level 

above that established in paragraph (h) 

of this section. 

* * * * * 

■ 8. Add § 1735.23 to read as follows: 

§ 1735.23 Public notice. 

(a) Applications for funding request in 

which the applicant will provide retail 

broadband service, the Agency’s 

mapping tool will include the following 

information from each application, and 

will be displayed for the public: 

(1) The identity of the applicant; 

(2) A description of the project that 

can deliver retail broadband service; 

(3) A map of the areas to be served, 

the proposed funded service area 

(PFSA), including identification of the 

associated census blocks; 

(4) The amount and type of funding 

requested; 

(5) The status of the application; and 

(6) The estimated number and 

proportion of households and 

businesses in the proposed funded 

service area without fixed retail 

broadband service, whether terrestrial or 

wireless, excluding mobile and satellite 

service. 

(b) For funding requests outside an 

area where the applicant receives 

Federal universal service support, the 

public notice filing referenced under 

paragraph (a) of this section will accept 

public notice responses from existing 

service providers with respect to retail 

broadband service already being 

provided in the PFSA for 45 calendar 

days on the Agency’s web page. Existing 

service providers are requested to 

submit the following information 

through the Agency’s mapping tool: 

(1) The number of residential and 

business customers within the PFSA 

currently purchasing broadband at the 

minimum threshold, the rates of data 

transmission being offered, and the cost 

of each level of broadband service 

charged by the existing service provider; 

(2) The number of residential and 

business customers within the 

applicant’s service area receiving voice 

and video services and the associated 

rates for these other services; 

(3) A map showing where the existing 

service provider’s services coincide 

with the applicant’s service area using 

the Agency’s mapping tool; and 

(4) Test results for the service area in 

question for a minimum of at least the 


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prior three months demonstrating that 

the asserted level of broadband is being 

provided. The test results shall be for 

different times of the day. 

(c) The Agency may contact service 

providers that respond under paragraph 

(b) of this section to validate their 

submission, and so responding service 

providers should be prepared to: 

(1) Provide additional information 

supporting that the area in question has 

sufficient access to broadband service; 

(2) Have a technician on site during 

the field validation by RUS staff; 

(3) Run on site tests with RUS 

personnel being present, if requested; 

and 

(4) Provide copies of any test results 

that have been conducted in the last six 

months and validate the information 

submitted in the public notice response 

months. 

(d) If no broadband service provider 

submits information pursuant to a 

pending application or if the existing 

provider does not provide the 

information requested under paragraphs 

(b) and (c) of this section, RUS will 

consider the extent of broadband service 

using any other data available through 

reasonable efforts, including utilizing 

the National Telecommunications and 

Information Administration’s National 

Broadband Availability Map and the 

Federal Communications Commission 

broadband availability map. That may 

include the agency conducting field 

validations so as to locate facilities in 

the application service area and 

determine, to the extent possible, if 

those facilities can provide the 

minimum threshold of broadband. 

Notwithstanding, conclusive evidence 

as to the existence of the level of 

broadband will be taken only through 

the public notice process. As a result, 

the Agency highly recommends that 

existing service providers in a PFSA 

submit public notice response to ensure 

that their service is considered in the 

determination of eligibility on an 

application. 

(e) The Agency will notify 

respondents who are existing service 

providers whether their public notice 

response was accepted or not and allow 

for an opportunity to respond. 

(f) The information submitted by an 

existing service provider under 

paragraphs (b) and (c) of this section 

will be treated as proprietary and 

confidential and not subject to 

disclosure, pursuant to 7 U.S.C. 

950cc(b)(3). 

(g) For all applications that are 

approved, the following information 

will be made available to the public: 

(1) The information provided in 

paragraph (a) of this section; 

(2) Each annual report required under 

§ 1735.24 will be redacted to protect any 

proprietary information; and 

(3) Such other information as the 

Administrator of the RUS deems 

sufficient to allow the public to 

understand the assistance provided. 

■ 9. Add § 1735.24 to read as follows: 

§ 1735.24 Additional reporting 

requirements. 

(a) Entities receiving financial 

assistance from RUS that are used for 

retail broadband must submit annual 

reports for 3 years after project 

completion. The reports must include 

the following information: 

(1) The purpose of the financing, 

including new equipment and capacity 

enhancements that support high-speed 

broadband access for educational 

institutions, health care providers, and 

public safety service providers 

(including the estimated number of end 

users who are currently using or 

forecasted to use the new or upgraded 

infrastructure); and 

(2) The progress towards fulfilling the 

objectives for which the assistance was 

made, including: 

(i) The number of service points that 

will receive new broadband service, 

existing network improvements, and 

facility upgrades resulting from the 

federal assistance; 

(ii) The speed of the broadband 

services; 

(iii) The average price of the most 

subscribed tier of retail broadband 

service in each PFSA; 

(iv) The number of new subscribers 

generated from the project; and 

(v) Complete, reliable, and precise 

geolocation information that indicates 

the location of new broadband service 

that is being provided or upgraded 

within the service territory supported by 

the grant, loan, or loan guarantee. 

(b) A notice will be published on the 

Agency’s website that will include each 

annual broadband improvement report, 

redacted as appropriate to protect any 

proprietary information in the report. 

Subpart E—Basic Requirements for 

Loan Approval 

■ 10. Amend § 1735.51 by revising 

paragraph (c) to read as follows: 

§ 1735.51 Required findings. 

* * * * * 

(c) Nonduplication or certificate 

requirement. The borrower shall 

provide RUS with satisfactory evidence 

to enable the Administrator to 

determine that no duplication of 

telephone service shall result from a 

particular loan. 

§ 1735.52 [Amended] 

■ 11. Amend § 1735.52 by removing 

paragraph (a) and removing the 

paragraph (b) designation and heading. 

PART 1737—PRE-LOAN POLICIES 

AND PROCEDURES COMMON TO 

INSURED AND GUARANTEED 

TELECOMMUNICATIONS LOANS 

■ 12. The authority citation for part 

1737 continues to read as follows: 

Authority: 7 U.S.C. 901 et seq., 1921 et 

seq.; Pub. L. 103–354, 108 Stat. 3178 (7 

U.S.C. 6941 et. seq.). 

Subpart C—The Loan Application 

■ 13. Amend § 1737.22 by: 

■ a. Removing paragraph (a)(13); 

■ b. Redesignating paragraphs (a)(14) 

through (20) as paragraphs (a)(13) 

through (19), respectively; 

■ c. Designating the text of newly 

redesignated paragraph (a)(19) as 

paragraph (a)(19)(i); 

■ d. Designating the undesignated 

paragraph following newly designated 

paragraph (a)(19)(i) as paragraph 

(a)(19)(ii); 

■ e. In newly designated paragraph 

(a)(19)(ii), removing ‘‘(a)(19)’’ and 

adding ‘‘(a)(18)’’ in its place; 

■ f. Revising paragraphs (b) introductory 

text, (c) introductory text, and (c)(3); 

■ g. Redesignating paragraph (d) as 

paragraph (e); and 

■ h. Adding a new paragraph (d) and 

paragraph (f). 

The revisions and additions read as 

follows: 

§ 1737.22 Supplementary information. 

* * * * * 

(b) The following must be submitted 

by borrowers seeking subsequent loans: 

* * * * * 

(c) For borrowers requesting funds for 

construction or refinancing, in addition 

to the information included in 

paragraphs (a) and (b) of this section, 

the following must be submitted: 

* * * * * 

(3) Justification for refinancing and 

evidence that the underlying loan to be 

refinanced would have been eligible for 

RUS financing under the RE Act. 

(d) Loan requests whose sole purpose 

is to refinance loans under Titles II and 

VI of the RE Act must submit the 

following: 

(1) Certified financial statements for 

the last 3 years. 

(2) Five-year financial projections 

consisting of Income Statement, Balance 

Sheet, and Cash Flow Statement. 

(3) A ‘‘Certification Regarding 

Lobbying’’ for loans, or a ‘‘Statement for 

Loan Guarantees and Loan Insurance’’ 


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for loan guarantees, and when required, 

an executed Standard Form LLL, 

‘‘Disclosure of Lobbying Activities,’’ 

(see section 319, Pub. L. 101–121 (31 

U.S.C. 1352)). 

(4) Executed copy of Form AD–1047, 

‘‘Certification Regarding Debarment, 

Suspension, and Other Responsibility 

Matters—Primary Covered 

Transactions.’’ 

(5) Borrower’s determination of loan 

maturity. 

(6) A statement that the borrower is or 

is not delinquent on any Federal debt, 

such as income tax obligations or a loan 

or loan guarantee from another Federal 

agency. If delinquent, the reasons for the 

delinquency must be explained and 

RUS will take such explanation into 

consideration in deciding whether to 

approve the loan. RUS Form 490, 

‘‘Application for Telephone Loan or 

Guarantee,’’ contains a section for 

providing the required statement and 

any appropriate explanation. 

(7) Any other supporting data 

required by the Administrator. 

* * * * * 

(f) For all applications that request 

funding for retail broadband as defined 

in 7 CFR 1735.2, the application must 

include all information required for the 

public notice as stated in 7 CFR 

1735.23(a). 

* * * * * 

Subpart J—Final Loan Approval 

Procedures 

■ 14. Amend § 1737.90 by revising 

paragraph (a)(6) to read as follows: 

§ 1737.90 Loan approval requirements. 

(a) * * * 

(6) All environmental review 

requirements must be met in accordance 

with 7 CFR part 1970. The Agency may 

obligate, but not disperse, funds under 

the program pursuant to 7 U.S.C. 950cc– 

1, before the completion of the 

otherwise required environmental, 

historical, or other types of reviews if 

the Secretary of Agriculture determines 

that subsequent site-specific review 

shall be adequate and easily 

accomplished for the location of towers, 

poles, or other broadband facilities in 

the service area of the awardee without 

compromising the project or the 

required reviews. 

* * * * * 

Christopher A. McLean, 

Acting Administrator, Rural Utilities Service. 

[FR Doc. 2021–19319 Filed 9–9–21; 8:45 am] 

BILLING CODE 3410–15–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2021–0780; Project 

Identifier AD–2021–00916–E; Amendment 

39–21728; AD 2021–19–10] 

RIN 2120–AA64 

Airworthiness Directives; International 

Aero Engines, LLC Turbofan Engines 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule; request for 

comments. 

SUMMARY: The FAA is adopting a new 

airworthiness directive (AD) for certain 

International Aero Engines, LLC (IAE) 

PW1122G–JM, PW1124G1–JM, 

PW1124G–JM, PW1127G1–JM, 

PW1127GA–JM, PW1127G–JM, 

PW1129G–JM, PW1130G–JM, 

PW1133GA–JM, and PW1133G–JM 

model turbofan engines. This AD was 

prompted by a root cause analysis of an 

event involving an uncontained failure 

of a high-pressure turbine (HPT) disk 

that resulted in high-energy debris 

penetrating the engine cowling on an 

Airbus Model A321–231 airplane, 

powered by IAE V2533–A5 model 

turbofan engines. This AD requires 

removing certain HPT 1st-stage and HPT 

2nd-stage disks from service. The FAA 

is issuing this AD to address the unsafe 

condition on these products. 

DATES: This AD is effective September 

27, 2021. 

The FAA must receive comments on 

this AD by October 25, 2021. 

ADDRESSES: You may send comments, 

using the procedures found in 14 CFR 

11.43 and 11.45, by any of the following 

methods: 

• Federal eRulemaking Portal: Go to 

https://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: (202) 493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE, 

Washington, DC 20590. 

• Hand Delivery: Deliver to Mail 

address above between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. 

Examining the AD Docket 

You may examine the AD docket at 

https://www.regulations.gov by 

searching for and locating Docket No. 

FAA–2021–0780; or in person at Docket 

Operations between 9 a.m. and 5 p.m., 

Monday through Friday, except Federal 

holidays. The AD docket contains this 

final rule, any comments received, and 

other information. The street address for 

the Docket Operations is listed above. 

FOR FURTHER INFORMATION CONTACT: 

Mark Taylor, Aviation Safety Engineer, 

ECO Branch, FAA, 1200 District 

Avenue, Burlington, MA 01803; phone: 

(781) 238–7229; fax: (781) 238–7199; 

email: Mark.Taylor@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

On March 18, 2020, an Airbus Model 

A321–231 airplane, powered by IAE 

V2533–A5 model turbofan engines, 

experienced an uncontained HPT 1ststage disk failure that resulted in highenergy debris penetrating the engine 

cowling. Based on a preliminary 

analysis of this event, on March 21, 

2020, the FAA issued Emergency AD 

2020–07–51 (followed by publication in 

the Federal Register on April 13, 2020, 

as a Final Rule, Request for Comments 

(85 FR 20402)), which requires the 

removal from service of certain HPT 1ststage disks installed on IAE V2522–A5, 

V2524–A5, V2525–D5, V2527–A5, 

V2527E–A5, V2527M–A5, V2528–D5, 

V2530–A5, and V2533–A5 model 

turbofan engines. 

Pratt & Whitney (PW) determined that 

the failure of the V2533–A5 model 

turbofan engine was due to an 

undetected subsurface material defect in 

an HPT disk that may affect the life of 

the part. In June 2021, PW expanded its 

root cause analysis to include a review 

of records for all other IAE and PW 

engines that contain parts of similar 

material. 

On July 29, 2021, PW provided its 

PW1100G analysis results to the FAA. 

PW’s analysis identified a different 

population of HPT 1st-stage and HPT 

2nd-stage disks installed on IAE 

PW1122G–JM, PW1124G1–JM, 

PW1124G–JM, PW1127G1–JM, 

PW1127GA–JM, PW1127G–JM, 

PW1129G–JM, PW1130G–JM, 

PW1133GA–JM, and PW1133G–JM 

model turbofan engines that are also 

affected by the unsafe condition in AD 

2020–07–51 and require removal from 

service. This condition, if not 

addressed, could result in uncontained 

HPT disk failure, release of high-energy 

debris, damage to the engine, damage to 

the airplane, and loss of the airplane. 

The FAA is issuing this AD to address 

the unsafe condition on these products. 

FAA’s Determination 

The FAA is issuing this AD because 

the agency has determined the unsafe 

condition described previously is likely 

to exist or develop in other products of 

the same type design. 


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