3792 Federal Register / Vol. 75, No. 14 / Friday, January 22, 2010 / Notices 

1American Recovery and Reinvestment Act of 

2009, Pub. L. No. 111–5, 123 Stat. 115 (2009) 

(Recovery Act). 

2Statement on Signing the American Recovery 

and Reinvestment Act of 2009, Daily Comp. of Pres. 

Doc., 2009 DCPD No. 00088, at 1 (Feb. 17, 2009), 

http://fdsys.gpo.gov/fdsys/pkg/DCPD-200900088/ 

pdf/DCPD-200900088.pdf. 

3Recovery Act sec. 3(a), 123 Stat. at 115–16. 

4See id. Sec. 3(b), 123 Stat. at 116. 

DEPARTMENT OF COMMERCE 

National Telecommunications and 

Information Administration 

[Docket No. 0907141137–0024–06] 

RIN 0660–ZA28 

Broadband Technology Opportunities 

Program 

AGENCY: National Telecommunications 

and Information Administration (NTIA), 

U.S. Department of Commerce. 

ACTION: Notice of Funds Availability 

(NOFA) and solicitation of applications. 

SUMMARY: NTIA announces general 

policy and application procedures for 

the Broadband Technology 

Opportunities Program (BTOP or 

Program) that the agency established 

pursuant to the American Recovery and 

Reinvestment Act of 2009 (Recovery 

Act). BTOP provides grants for 

deploying broadband infrastructure in 

unserved and underserved areas of the 

United States, enhancing broadband 

capacity at public computer centers, and 

promoting sustainable broadband 

adoption projects. In facilitating the 

expansion of broadband 

communications services and 

infrastructure, BTOP advances the 

objectives of the Recovery Act to spur 

job creation and stimulate long-term 

economic growth and opportunity. 

DATES: All applications for funding 

BTOP projects must be submitted 

between February 16, 2010, at 8 a.m. 

Eastern Standard Time (EST) and March 

15, 2010, at 5 p.m. Eastern Daylight 

Time (EDT). 

ADDRESSES: The application packages 

for electronic submissions will be 

available at http:// 

www.broadbandusa.gov. See 

SUPPLEMENTARY INFORMATION for more 

details. 

FOR FURTHER INFORMATION CONTACT: For 

general inquiries regarding BTOP or 

questions regarding this NOFA, contact 

Anthony Wilhelm, Director, BTOP, 

Office of Telecommunications and 

Information Applications, National 

Telecommunications and Information 

Administration, U.S. Department of 

Commerce (DOC), 1401 Constitution 

Avenue, NW., HCHB, Room 4887, 

Washington, DC 20230; Help Desk email: BroadbandUSA@usda.gov, Help 

Desk telephone: 1–877–508–8364. 

Additional information regarding BTOP 

may be obtained at http:// 

www.ntia.doc.gov/broadbandgrants/. 

For inquiries regarding BTOP 

compliance requirements, including 

applicable Federal rules and regulations 

protecting against fraud, waste, and 

abuse, contact 

btopcompliance@ntia.doc.gov. 

Additional information regarding 

compliance for BTOP may be obtained 

at http://www.broadbandusa.gov/ 

compliance.htm. 

Authority: This notice is issued pursuant 

to the American Recovery and Reinvestment 

Act of 2009, Pub. L. 111–5, 123 Stat. 115 

(2009). 

SUPPLEMENTARY INFORMATION: 

Electronic submissions: Electronic 

submissions of applications will allow 

for the expeditious review of an 

applicant’s proposal consistent with the 

goals of the Recovery Act. As a result, 

all applicants are required to submit 

their applications electronically at 

https://applyonline.broadbandusa.gov. 

The electronic application system will 

provide a date-and-time-stamped 

confirmation number that will serve as 

proof of submission. Please note that 

applications will not be accepted via 

paper, facsimile machine transmission, 

electronic mail, or other media format. 

Applicants, however, may request a 

waiver of these filing instructions 

pursuant to Section X.N. of this NOFA. 

Catalog of Federal Domestic 

Assistance (CFDA) Number: Broadband 

Technology Opportunities Program 

(BTOP)—11.557. 

Additional Items in Supplementary 

Information 

I. Overview: Describes the broadband 

initiatives in the Recovery Act, the first 

round of funding, and an overview of the 

next round of funding. 

II. Funding Opportunity Description: 

Provides a more thorough description of 

BTOP and the funding priorities. 

III. Definitions: Sets forth the key statutory 

terms and other terms used in BTOP. 

IV. Award Information: Describes funding 

availability, grant terms, as applicable, and 

other award information. 

V. Eligibility Information and General 

Program Requirements: Establishes eligibility 

criteria, eligible and ineligible costs, and 

general program requirements. 

VI. Application and Submission 

Information: Provides information regarding 

how to apply, application materials, and the 

application process. 

VII. Application Review Information: 

Establishes the evaluation criteria for 

application review. 

VIII. Anticipated Announcement and 

Award Dates: Identifies the initial 

announcement date for certain awards and 

provides other information regarding BTOP. 

IX. Award Administration Information: 

Provides award notice information, 

administrative and national policy 

requirements, terms and conditions, and 

other reporting requirements for award 

recipients. 

X. Other Information: Sets forth guidance 

on funding, compliance with various laws, 

confidentiality, discretionary awards, and 

authorized signatures. 

I. Overview 

A. American Recovery and 

Reinvestment Act of 2009 (Recovery 

Act) 

On February 17, 2009, President 

Obama signed the Recovery Act into 

law.1 The essential goal of the Recovery 

Act is to provide a ‘‘direct fiscal boost 

to help lift our Nation from the greatest 

economic crisis in our lifetimes and lay 

the foundation for future growth.’’ 2

Accordingly, the Recovery Act identifies 

five overall purposes: To preserve and 

create jobs and promote economic 

recovery; to assist those most impacted 

by the current economic recession; to 

provide investments needed to increase 

economic efficiency by spurring 

technological advances in science and 

health; to invest in transportation, 

environmental protection, and other 

infrastructure that will provide longterm economic benefits; and to stabilize 

State and local government budgets.3

The Recovery Act further instructs the 

President and the heads of Federal 

departments and agencies to manage 

and expend Recovery Act funds to 

achieve these five purposes, 

‘‘commencing expenditures and 

activities as quickly as possible 

consistent with prudent management.’’ 4

Consistent with the purposes 

described above, the Recovery Act 

provides the U.S. Department of 

Agriculture’s Rural Utilities Service 

(RUS) and the National 

Telecommunications and Information 

Administration (NTIA) with $7.2 billion 

to expand access to broadband services 

in the United States. In so doing, the 

Recovery Act recognizes the growing 

importance of access to broadband 

services to economic development and 

to the quality of life of all Americans. 

The Recovery Act provides $4.7 

billion to NTIA to establish the 

Broadband Technology Opportunities 

Program (BTOP or Program) and directs 

that these funds be awarded by 

September 30, 2010. This amount 

represents a significant investment to 

advance President Obama’s national 

broadband strategy. Of these funds, at 

least $200 million will be made 

available for competitive grants for 


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Federal Register / Vol. 75, No. 14 / Friday, January 22, 2010 / Notices 3793 

5Pub. L. 110–385, 122 Stat. 4096 (to be codified 

at 47 U.S.C. 1301 et seq.). 

6See State Broadband Data and Development 

Grant Program, Notice of Funds Availability and 

Solicitation of Applications, 74 FR 32545 (July 8, 

2009). 

7Notice of Funds Availability and Solicitation of 

Applications, 74 FR 33104 (July 9, 2009). 

8White House Press Release, Vice President 

Biden Kicks Off $7.2 Billion Recovery Act 

Broadband Program (December 17, 2009), available 

at http://www.whitehouse.gov/the-press-office/vicepresident-biden-kicks-72-billion-recovery-actbroadband-program. Department of Commerce 

Press Release, Commerce Secretary Gary Locke 

Announces $7.5 Million Investment to Increase 

Broadband Access in Los Angeles (January 13, 

2010), available at http://www.commerce.gov/ 

newsroom/pressreleases_factsheets/prod01_008797. 

9 Joint Request for Information (RFI), 74 FR 58940 

(Nov. 16, 2009). 

10See Recovery Act Div. A, Tit. II, 123 Stat. at 

128. 

11 Id. Div. A, Tit. II & sec. 6001(b)(3), 123 Stat. at 

128, 512–13. 

12 Id. Div. A, Tit. II & sec. 6001(b)(5), 123 Stat. at 

128, 513. 

expanding public computer center 

capacity; at least $250 million will be 

made available for competitive grants 

for innovative programs to encourage 

sustainable adoption of broadband 

services; and up to $350 million will be 

made available to fund the State 

Broadband Data and Development Grant 

Program (Broadband Mapping Program) 

authorized by the Broadband Data 

Improvement Act.5 The Broadband 

Mapping Program is designed to support 

the development and maintenance of a 

nationwide broadband map for use by 

policymakers and consumers.6

B. Round One 

In response to the first Notice of 

Funds Availability (First NOFA), RUS 

and NTIA received almost 2,200 

applications requesting nearly $28 

billion in funding for proposed 

broadband projects reaching all States, 

five territories, and the District of 

Columbia.7 When including about $10.5 

billion in matching funds committed by 

the applicants, these applications 

represent more than $38 billion in 

proposed broadband projects. RUS and 

NTIA received applications from a 

diverse range of parties, including: 

State, tribal, and local governments; 

nonprofits; industry; small businesses; 

community anchor institutions such as 

libraries, universities, community 

colleges, and hospitals; public safety 

organizations; and other entities in 

rural, suburban, and urban areas. Parties 

submitted more than 830 applications 

jointly to RUS’s Broadband Initiatives 

Program (BIP) and NTIA’s BTOP, 

requesting nearly $12.8 billion in 

infrastructure funding. NTIA received 

an additional 260 infrastructure 

applications that sought only BTOP 

funding, requesting more than $5.4 

billion in grants for broadband 

infrastructure projects in unserved and 

underserved areas. Parties submitted 

more than 360 applications to NTIA 

requesting more than $1.9 billion in 

grants from BTOP for public computer 

center projects. In addition, parties filed 

more than 320 applications with NTIA 

requesting nearly $2.5 billion in grants 

from BTOP for projects that promote 

sustainable demand for broadband 

services. 

On December 17, 2009, NTIA 

announced the first set of awards out of 

the $1.6 billion that was allocated for 

the first round of funding. These 

awards, as well as additional awards 

announced by Secretary Locke on 

January 13, 2010, totaled approximately 

$137 million for investments in ten 

broadband projects benefitting ten 

States.8 Of these awards, $119 million 

was dedicated for Middle Mile projects; 

$15.9 million for Public Computer 

Center projects; and $2.4 million for 

Sustainable Broadband Adoption 

projects. Additional awards will be 

announced on a rolling basis. 

C. Round Two 

1. Funding Process 

The purpose of this NOFA is to 

describe the availability of BTOP funds 

for the second round of funding and set 

forth the application requirements for 

those entities wishing to participate in 

the Program. Applicants are permitted 

to apply to one or more of the project 

categories. Each application will be 

screened for initial eligibility. Those 

eligible applications that satisfy the 

statutory purposes and funding 

priorities will be prioritized and 

evaluated against objective evaluation 

criteria to determine whether an award 

may be merited. Applications that 

satisfy the BTOP priorities and score 

highly when evaluated against the 

objective evaluation criteria will 

advance to the due diligence stage of 

review, where NTIA may request 

additional information and adjustments 

to the proposal. From this pool of 

applications, NTIA will select awardees 

based on the selection factors. NTIA 

anticipates completing this round of 

funding as quickly as possible to 

maximize the stimulative effect of the 

Recovery Act. NTIA also is committed 

to transparency and fairness in the 

award process and will require rigorous 

reporting to ensure prudent stewardship 

of taxpayer funds. 

2. Request for Information (RFI) 

To prepare for this round of funding, 

on November 10, 2009, RUS and NTIA 

released a second joint request for 

information seeking public comment on 

ways to enhance the applicant 

experience through targeted revisions to 

the First NOFA.9 RUS and NTIA 

received approximately 225 comments 

from institutions and individuals on a 

wide range of topics, and these 

comments have played an important 

role in developing this NOFA. For 

further discussion and explanation of 

NTIA’s reliance on the public comments 

in the policy decisions involved in 

BTOP, see the attached Policy 

Justification found in the Appendix at 

the end of this NOFA. 

3. Project Categories 

For this round of funding, NTIA will 

award grants in three categories of 

eligible projects: Comprehensive 

Community Infrastructure (CCI), Public 

Computer Centers (PCC), and 

Sustainable Broadband Adoption 

(SBA).10 The CCI category will focus on 

Middle Mile broadband infrastructure 

projects that offer new or substantially 

upgraded connections to community 

anchor institutions, especially 

community colleges. The PCC category 

will help expand public access to 

broadband service and enhance 

broadband capacity at entities that 

permit the public to use these 

computing centers, such as community 

colleges and public libraries.11 The SBA 

category will fund innovative projects 

that promote broadband demand, 

including projects focused on providing 

broadband education, awareness, 

training, access, equipment, or support, 

particularly among vulnerable 

population groups that traditionally 

have underutilized broadband 

technology.12

NTIA plans to award all remaining 

BTOP grants funded by the Recovery 

Act in this round of funding. 

Approximately $2.6 billion of programlevel funding has been allocated to this 

NOFA by NTIA. NTIA intends to award 

approximately $2.35 billion for CCI 

projects, at least $150 million for PCC 

projects, and at least $100 million for 

SBA projects. 

4. Changes From the First NOFA 

Based on the comments received in 

response to the second RFI and the 

experience gained from administering 

the first round of funding, NTIA is 

making a number of changes to the 

Program. The goals of these changes are 

to increase efficiency, sharpen the 

Program’s funding focus, and improve 

the applicant experience. 

In the first round, RUS and NTIA 

issued a joint BIP/BTOP NOFA to 


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3794 Federal Register / Vol. 75, No. 14 / Friday, January 22, 2010 / Notices 

13See id. Sec. 6001(b), 123 Stat. at 512–13. 

promote coordination between these 

programs. The agencies gave applicants 

the option to file a single application for 

infrastructure projects for both 

programs. For the second round of 

funding, RUS and NTIA have decided to 

issue separate NOFAs for BIP and BTOP 

to better promote each agency’s distinct 

objectives. The joint application process 

was burdensome for some applicants. 

Therefore, RUS and NTIA have 

eliminated the option of allowing 

applicants to file a single, joint BIP/ 

BTOP application in the second funding 

round in favor of separate applications. 

NTIA has sought to bring further 

leverage to Federal funds by giving 

additional consideration to projects that 

propose to contribute a non-Federal cost 

share/match that equals or exceeds 30 

percent of the total eligible costs of the 

project. 

In addition, NTIA is adopting a 

‘‘comprehensive communities’’ approach 

to award BTOP grants for infrastructure 

projects that emphasize Middle Mile 

broadband capabilities and new or 

substantially upgraded connections to 

community anchor institutions to 

maximize the benefits of BTOP funds. In 

adopting this approach, NTIA has 

restructured the Broadband 

Infrastructure category of the First 

NOFA into the CCI category for this 

second round of funding. 

Further, NTIA has implemented other 

targeted changes to several Program 

provisions. In particular, NTIA has 

reduced the number of BTOP’s 

eligibility factors to just three criteria— 

eligible entities, fully completed 

application, and matching—which will 

be used to determine whether an 

application is eligible for consideration. 

NTIA has further streamlined the 

eligibility review by removing the 

budget reasonableness and technical 

feasibility factors from the eligibility 

requirements, because these categories 

are more effectively evaluated during 

the expert review and due diligence 

phases of application consideration. 

NTIA also has changed the number of 

expert reviewers from at least three to at 

least two in order to make the expert 

review process as efficient as possible, 

without impacting the rigor of review. 

NTIA will review CCI applications 

according to the priorities established in 

Section II.B. Additionally, NTIA has 

clarified the process for requesting 

waivers from several key statutory and 

programmatic obligations, including the 

matching fund requirement, Last Mile 

coverage obligation, and restriction on 

the sale or lease of project assets. 

With respect to the application, NTIA 

will now collect the information most 

essential to project review in the 

application itself, with the option to 

collect additional data during the due 

diligence review, as needed. In addition, 

NTIA has made numerous adjustments 

to the online application system to 

streamline the intake of information and 

reduce applicant burden. In particular, 

NTIA has reduced the overall number of 

attachments to the applications. It also 

has separated the BTOP infrastructure 

application from the BIP infrastructure 

application and separated the PCC 

application from the SBA application. 

Moreover, it has eliminated the 

proposed funded service area mapping 

tool and modified the service area 

delineations from Census blocks to 

Census tracts and block groups. NTIA 

also has made it easier for applicants 

filing applications in multiple project 

categories to link these applications, in 

furtherance of NTIA’s focus on 

comprehensive communities. 

II. Funding Opportunity Description 

A. Statutory Purposes 

Section 6001 of the Recovery Act 

establishes a national broadband service 

development and expansion program to 

promote five core purposes: 

a. To provide access to broadband 

service to consumers residing in 

unserved areas of the country; 

b. To provide improved access to 

broadband service to consumers 

residing in underserved areas of the 

country; 

c. To provide broadband education, 

awareness, training, access, equipment, 

and support to: (i) Schools, libraries, 

medical and healthcare providers, 

community colleges and other 

institutions of higher learning, and other 

community support organizations; (ii) 

organizations and agencies that provide 

outreach, access, equipment, and 

support services to facilitate greater use 

of broadband services by vulnerable 

populations (e.g., low-income, 

unemployed, aged); or (iii) job-creating 

strategic facilities located in State- or 

Federally-designated economic 

development zones; 

d. To improve access to, and use of, 

broadband service by public safety 

agencies; and 

e. To stimulate the demand for 

broadband, economic growth, and job 

creation.13

B. BTOP Priorities 

All projects funded under BTOP must 

advance one or more of the five 

statutory purposes outlined above. The 

Program is designed to extend 

broadband access to unserved areas, 

improve access to underserved areas, 

and expand broadband access to a wide 

range of institutions and individuals, 

including vulnerable populations. It 

will seek to serve the highest priority 

needs for Federal investment— 

particularly projects that offer the 

potential for economic growth and job 

creation. The Program will support 

viable, sustainable, and scalable 

projects. 

1. Comprehensive Community 

Infrastructure Projects 

a. Background 

In the first funding round, NTIA 

solicited Broadband Infrastructure 

applications in two categories, Last Mile 

and Middle Mile. Last Mile projects 

were defined as any infrastructure 

project the predominant purpose of 

which is to provide broadband service 

to end users or end-user devices. Middle 

Mile projects were defined as any 

broadband infrastructure project that 

does not predominantly provide 

broadband service to end users or to 

end-user devices and that may include 

interoffice transport, backhaul, Internet 

connectivity, or special access. Middle 

Mile projects funded to date in Round 

One also included expanding and 

enhancing broadband services for 

community anchor institutions such as 

schools, libraries, colleges and 

universities, medical and healthcare 

providers, public safety entities, and 

other community support organizations. 

Recognizing the significant 

importance of Middle Mile 

infrastructure to improving broadband 

capabilities for consumers residing in 

unserved and underserved areas of the 

nation, NTIA has awarded a significant 

portion of funds in the first round of 

funding to Middle Mile projects, 

particularly those that connect a 

significant number of community 

anchor institutions. Such projects 

provide substantial benefits, including 

enhancing broadband service for 

community anchor institutions, 

facilitating the development of Last Mile 

broadband services in unserved and 

underserved areas, and promoting 

economic growth. 

b. CCI Funding Priorities 

In this round of funding, NTIA seeks 

to focus on Middle Mile projects by 

adopting a ‘‘comprehensive 

communities’’ approach to awarding 

BTOP infrastructure grants. Under this 

approach, priority will be given to CCI 

projects that include a Middle Mile 

component and satisfy certain 


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Federal Register / Vol. 75, No. 14 / Friday, January 22, 2010 / Notices 3795 

14Consistent with the terms of the Recovery Act, 

in this funding round NTIA will not fund Middle 

Mile projects in areas that RUS has already funded 

with Middle Mile awards made through BIP. 

15See Department of Commerce (DOC) Grants and 

Cooperative Agreements Interim Manual (Grants 

Manual), ch. 8, secs. B.1.c. and B.3 (June 21, 2007) 

(available at http://oam.ocs.doc.gov/GMD_updateddoc.html). 

16 15 U.S.C. 637(a)(4). NTIA sought the Small 

Business Administration’s approval to adopt a $40 

million alternative small business size standard for 

BTOP. The Small Business Administration issued a 

letter approving the use of this alternative size 

standard of $40 million to define a small business 

concern for purposes of BTOP. 

17See infra Section VII.A.1. 

18Consistent with the terms of the Recovery Act, 

in this funding round NTIA will not fund Last Mile 

projects in areas that RUS has already funded with 

Last Mile awards made through BIP. 

19See Recovery Act sec. 6001(j), 123 Stat. at 515. 

20See National Economic Council, Recovery Act 

Investments in Broadband: Leveraging Federal 

Dollars to Create Jobs and Connect America (Dec. 

2009), available at http://www.whitehouse.gov/ 

sites/default/files/20091217-recovery-actinvestments-broadband.pdf. 

additional considerations.14 This 

prioritization will be used for the 

sequencing of applications for the 

objective merit review performed by 

expert reviewers.15 In particular, the 

highest priority for merit review will be 

given to CCI applications that satisfy all 

of the criteria below. Note that the 

application evaluation process will 

continue to consider additional factors, 

including, for example, the degree to 

which the projects will benefit 

consumers residing in unserved or 

underserved areas, the participation of 

an Indian Tribe or socially and 

economically disadvantaged small 

business concern as defined under 

Section 8(a) of the Small Business Act 

(as modified by NTIA’s adoption of an 

alternative small business concern size 

standard for use in BTOP),16 and the 

ability of a project to leverage funding 

from another Recovery Act program or 

other State or Federal development 

program.17 In order of importance, the 

CCI priority criteria are set forth as 

follows: 

(1) Projects that will deploy Middle 

Mile broadband infrastructure with a 

commitment to offer new or 

substantially upgraded service to 

community anchor institutions. Those 

projects proposing to serve a significant 

number of community anchor 

institutions that have expressed a 

demand or indicated a need for access 

or improved access to broadband service 

will receive higher priority; 

(2) Projects that will deploy Middle 

Mile broadband infrastructure and 

incorporate a public-private partnership 

among government, non-profit and forprofit entities, and other key community 

stakeholders, particularly those that 

have expressed a demand or indicated 

a need for access or improved access to 

broadband service; 

(3) Projects that will deploy Middle 

Mile broadband infrastructure with the 

intent to bolster growth in economically 

distressed areas; 

(4) Projects that will deploy Middle 

Mile broadband infrastructure with a 

commitment to serve community 

colleges that have expressed a demand 

or indicated a need for access or 

improved access to broadband service; 

(5) Projects that will deploy Middle 

Mile broadband infrastructure with a 

commitment to serve public safety 

entities that have expressed a demand 

or indicated a need for access or 

improved access to broadband service; 

(6) Projects that will deploy Middle 

Mile broadband infrastructure that 

includes (i) a Last Mile infrastructure 

component in unserved or underserved 

areas; or (ii) commitments or nonbinding letters of intent from one or 

more Last Mile broadband service 

providers.18 For Last Mile infrastructure 

components in rural areas, however, the 

additional costs of the Last Mile 

component used to offer service to 

residential consumers and noncommunity anchor institutions may not 

exceed more than 20 percent of the total 

eligible costs of the project; and 

(7) Projects that will deploy Middle 

Mile broadband infrastructure and 

propose to contribute a non-Federal cost 

match that equals or exceeds 30 percent 

of the total eligible costs of the project. 

To the extent that a CCI applicant 

with a Middle Mile component does not 

address all of the criteria set forth above 

(i.e., criteria (1)–(7)), NTIA will 

prioritize those applications remaining 

for merit review in the order that they 

satisfy the most highly-ranked criteria 

(i.e., applications satisfying criteria (1)– 

(6) will be sequenced for merit review, 

then applications satisfying (1)–(5), then 

(1)–(4), then (1)–(3), then (1)–(2) 

respectively, and, finally, applications 

that satisfy only the first criterion). All 

other CCI applicants with a Middle Mile 

component, that is, those that do not 

satisfy the first criterion identified 

above, will be next in priority for merit 

review. 

c. ‘‘Comprehensive Communities’’ Policy 

Rationale 

The ‘‘comprehensive communities’’ 

approach, with its focus on the 

deployment of Middle Mile broadband 

facilities and the provision of new or 

substantially upgraded connections to 

community anchor institutions as its 

centerpiece, will provide a number of 

benefits to the public and taxpayers. 

‘‘Comprehensive communities’’ projects 

can leverage resources and better ensure 

sustainable community growth and 

prosperity. These projects also can 

create consumer demand and lay the 

foundation for the ultimate provision of 

reasonably priced end-user broadband 

services in unserved and underserved 

communities. Open and 

nondiscriminatory CCI projects funded 

by BTOP will enable other service 

providers to serve the community.19

Once Middle Mile facilities are built, 

the costs of providing services to a 

broad array of end users are reduced. 

Much like the interstate highways that 

link together the nation’s roads and 

streets, Middle Mile broadband facilities 

play a critical role in the healthy 

functioning of the nation’s broadband 

infrastructure and are a necessary 

foundation for the ultimate provision of 

affordable end-user broadband services 

in unserved and underserved 

communities. 

Expanding Middle Mile broadband 

service not only enhances the 

availability and affordability of end-user 

broadband connectivity for consumers 

and businesses, it also increases the 

effectiveness of community anchor 

institutions in fulfilling their missions. 

Schools, libraries, colleges and 

universities, medical and healthcare 

providers, public safety entities, and 

other community support organizations 

increasingly rely on high-speed Internet 

connectivity to serve their 

constituencies and their communities. 

Expanding broadband capabilities for 

community anchor institutions will 

result in substantial benefits for the 

entire community, delivering improved 

education, healthcare, and economic 

development. 

CCI projects are also job-intensive and 

pave the way for a ripple effect of 

economic development throughout the 

communities they touch. Focusing the 

awards in this funding round on CCI 

projects that provide high-speed Middle 

Mile networks to connect community 

anchor institutions, including 

community colleges, or benefit 

consumers residing in unserved or 

underserved areas will maximize the 

benefits of Recovery Act dollars and lay 

a foundation for economic development 

for years to come.20

d. Relationship to BIP 

Although BIP and BTOP no longer 

will offer a joint application, RUS and 

NTIA continue to collaborate to 

maximize the impact of available 

Federal funding, to best leverage the 

experience and expertise of each 

agency, and to avoid geographic overlap 


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21Recovery Act Tit. I, 123 Stat. at 118. 22Recovery Act sec. 6001(c), 123 Stat. at 513. 

in projects funded by the two agencies 

(as required by the Recovery Act).21 To 

accomplish these objectives, NTIA 

strongly recommends that CCI 

applicants that are currently RUS loan 

or grant recipients as well as any CCI 

applicant whose project will include a 

Last Mile service area that is at least 75 

percent rural apply to BIP for funding. 

Applications from such applicants will 

not be viewed favorably by NTIA and 

will not be a funding priority. 

e. Exclusive Last Mile Projects 

As explained above, priority will be 

given to CCI projects that include a 

Middle Mile component. While a CCI 

project may exclusively contain a Last 

Mile component, it will only be 

considered for merit review and funding 

after all projects with a Middle Mile 

component have been considered. 

2. Public Computer Centers (PCC) 

In this funding round, consistent with 

the Recovery Act, NTIA will fund PCC 

projects. These projects provide 

broadband access to the general public 

or a specific vulnerable population and 

must either create or expand a public 

computer center or improve broadband 

service or connections at a public 

computer center, including those at 

community colleges, that meets a 

specific public need for broadband 

service. PCC projects are a logical 

complement to CCI projects, because 

they are uniquely positioned to serve 

many members of a community with 

computer equipment, computer 

training, job training, and access to job 

and educational resources that might 

not otherwise be available. 

3. Sustainable Broadband Adoption 

(SBA) 

Consistent with the Recovery Act and 

the promotion of BTOP’s five core 

objectives, NTIA also will fund SBA 

projects. The SBA program is designed 

to fund innovative projects that promote 

broadband demand, especially among 

vulnerable population groups where 

broadband technology traditionally has 

been underutilized. Broadband 

technology has reshaped the way our 

nation functions, and NTIA recognizes 

that broadband adoption projects strive 

to ensure that as much of the population 

as possible has opportunities, abilities, 

and resources to thrive in today’s 

society. With projects focusing on 

broadband awareness, access, training, 

and education, barriers to broadband 

adoption can be overcome, fostering 

educational and business opportunities 

and a more competitive country as a 

whole. NTIA, therefore, seeks SBA 

projects that, after establishing a 

subscribership baseline in a given 

community, demonstrate a clear ability 

to measure and sustain the expected 

increase in broadband adoption without 

ongoing Federal grant assistance, so that 

the nation will continue to see the 

benefits of these projects well after the 

period of performance for the grant 

award has ended. 

C. Application Review and the Selection 

Process 

1. Initial Review 

NTIA will conduct an initial review of 

applications to determine whether they 

meet the eligibility requirements set 

forth in Section V.A. through V.C. of 

this NOFA. These requirements are 

mandatory, and applicants that fail to 

meet them will not have their 

applications considered further. 

2. Scoring Applications 

Subsequent to this initial eligibility 

review, applications will be separated 

into the three project categories. For 

PCC and SBA projects, applications will 

receive an Evaluation Criteria Review 

score by at least two objective expert 

reviewers who may be Federal 

employees or non-Federal persons. For 

CCI projects, program staff will 

prioritize the applications for the 

Evaluation Criteria Review based on the 

BTOP priorities set forth in Section II.B., 

and then the applications will be 

evaluated in priority order by at least 

two objective expert reviewers who may 

be Federal employees or non-Federal 

persons. No consensus advice will be 

provided by the non-Federal expert 

reviewers. 

Reviewers will be selected based on 

their expertise in: (i) Analyzing a 

business or organizational model 

pursuant to BTOP purposes; (ii) 

designing, funding, constructing, or 

operating broadband networks or public 

computer centers; (iii) broadbandrelated outreach, training, or education; 

(iv) innovative programs to increase the 

demand for broadband services; or (v) 

other broadband-related functions or 

activities. Reviewers will evaluate 

applications against the evaluation 

criteria provided in this NOFA and 

independently score each application. 

Reviewer scores will be averaged and 

NTIA will establish thresholds that will 

be used to determine which 

applications are considered ‘‘highly 

qualified.’’ Highly qualified applications 

may be considered further for an award 

by NTIA Program staff and given a ‘‘due 

diligence’’ review. For CCI projects, 

priority in due diligence processing will 

be given to applications that best 

conform to BTOP priorities as expressed 

in Section II.B.1.b of this NOFA. 

3. State and Tribal Consultation 

The Recovery Act authorizes NTIA to 

consult with States, territories, 

possessions, and the District of 

Columbia (‘‘States’’) regarding the 

identification of unserved and 

underserved areas within their borders 

and the allocation of grant funds to 

projects in or affecting their State.22

After the application deadline, NTIA 

will invite each State, via its Governor, 

to provide input on those geographic 

areas within the State for which NTIA 

should give priority in selecting projects 

for funding. States may, if they wish, 

comment on specific BTOP applications 

that propose to serve areas within their 

jurisdiction, regardless of the size or 

geographic scope of the project and, at 

their discretion, provide an explanation 

for why certain applications meet the 

greatest needs of the State. NTIA also 

will extend the invitation to tribal 

entities to comment upon applications 

that propose to serve tribal communities 

in an effort to fund projects that best 

meet the needs of their tribal lands. 

NTIA will share data that are 

available on the publicly searchable 

application database with each relevant 

State and tribe. States and tribes that 

wish to review additional information 

regarding applications proposing to 

serve areas within their jurisdiction may 

request such information from 

applicants directly. States and tribes 

will not be required to rank or comment 

on BTOP applications in order for 

applications affecting their areas to 

receive funding. The input of States and 

tribes is consultative in nature and, 

while extremely valuable, constitutes 

only one among several factors the 

Selecting Official, the Assistant 

Secretary, weighs when evaluating 

applications. States or tribes will not 

have the ability to veto any particular 

project. States and tribes will have no 

less than 20 calendar days from the date 

of notification to submit their comments 

to NTIA. NTIA will make the comments 

of the States and tribes publicly 

available at http:// 

www.broadbandusa.gov. Accordingly, 

States and tribes should not include in 

their comments to NTIA any 

information that is deemed confidential 

and proprietary. 

4. Due Diligence Review 

During due diligence review, 

applicants may be asked to submit 

additional information, as appropriate, 


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23See Recovery Act sec. 6001(e)(3), 123 Stat. at 

514. 

24Recovery Act sec. 6001(h)(2)(D), 123 Stat. at 

515. 

25Consistent with the Recovery Act, the 

Broadband Mapping Program provides participating 

States the opportunity to identify unserved and 

underserved areas in their State. 

26This definition is derived from regulations 

adopted by the Economic Development 

Administration, U.S. Department of Commerce, 

regarding the Public Works and Economic 

Development Act of 1965, as amended. See 13 CFR 

301.3. 

to clarify or to further substantiate the 

representations made in their 

applications. The supplemental 

information, along with all information 

submitted with the application, will be 

reviewed and analyzed by NTIA 

Program staff to confirm eligibility and 

evaluate the applications with respect to 

general Program requirements, the 

appropriate Federal share of the project, 

evaluation criteria, and selection factors. 

Applicants whose supporting 

documents are not timely filed or who 

do not adequately substantiate the 

representations in their applications 

may be rejected. NTIA may, at its 

discretion, request supplemental 

documentation before deciding to reject 

such applications and re-evaluate the 

application package based on all of the 

information presented. 

At any time during the application 

review process, NTIA reserves the right 

to discuss with the applicant specific 

modifications to the application to 

resolve any differences that may exist 

between the applicant’s original request 

and NTIA’s determination of eligible 

costs and funding priorities, including, 

for example, the right to adjust the 

Federal share of the project. Note that it 

is NTIA’s intent to fund only the portion 

of the project that satisfies Program 

purposes and is justified based on an 

analysis of anticipated costs and 

revenues. Specifically, pursuant to the 

Recovery Act requirement that 

applicants demonstrate that a project 

would not have been implemented 

during the grant period without Federal 

assistance, NTIA may seek to adjust the 

amount of funds made available for the 

Federal share of the project to a level 

warranted based on this ‘‘but for’’ test.23

Not all applicants contacted necessarily 

will receive a BTOP award. Upon 

completion of due diligence, NTIA 

Program staff will summarize their 

analysis for each application reviewed. 

5. The Selection Process 

The Director of BTOP (BTOP Director) 

will prepare and present a package or 

packages of recommended grant awards 

to the Associate Administrator for the 

Office of Telecommunications and 

Information Applications (OTIA 

Associate Administrator), or his/her 

designee, for review and approval. The 

BTOP Director’s recommendations and 

the OTIA Associate Administrator’s 

review and approval will consider the 

following selection factors: 

a. The Evaluation Criteria Review 

score of the objective expert reviewers; 

b. The analysis of NTIA Program staff; 

c. Satisfaction of the statutory 

purposes and BTOP priorities set forth 

in Section II.; 

d. The extent to which the nonFederal cost match equals or exceeds 30 

percent of the total eligible costs of the 

project; 

e. The geographic distribution of the 

proposed grant awards (e.g., ensuring 

that, to the extent practical, NTIA 

awards not less than one grant in each 

State as set forth in the Recovery Act); 

f. The range of technologies and uses 

of the technologies employed by the 

proposed grant awards; 

g. Avoidance of redundancy, 

duplication, and conflicts with the 

initiatives of other Federal agencies, 

including Department of Agriculture 

loan and grant programs for broadband 

services, applicable universal service 

programs authorized by the Federal 

Communications Commission, and, to 

the extent practical, avoidance of unjust 

enrichment; 24

h. The availability of funds; 

i. If applicable, the comments of 

States, including, but not limited to, 

such comments as described in their 

application for the Broadband Mapping 

Program or as subsequently provided to 

NTIA either on their own or along with 

the submission of State-level broadband 

maps; 25 and 

j. If applicable, the comments of tribal 

entities. 

Upon approval of the OTIA Associate 

Administrator or designee, the BTOP 

Director’s recommendations then will 

be presented to the Selecting Official. 

The Assistant Secretary selects the 

applications for grant awards, taking 

into consideration the BTOP Director’s 

and the OTIA Associate 

Administrator’s, or his or her designee’s, 

recommendations and the degree to 

which the application package, taken as 

a whole, satisfies the selection factors 

described above and the Program’s 

statutory purposes and priorities as set 

forth in Sections II of this NOFA. 

Awards will be made on a rolling basis 

subject to the availability of funds. 

Unsuccessful applicants will be notified 

in writing. 

III. Definitions 

The terms and conditions provided in 

this NOFA are applicable to and for 

purposes of this NOFA only. 

Applicant means an entity requesting 

approval of an award under this NOFA. 

Assistant Secretary means the 

Assistant Secretary for Communications 

and Information, National 

Telecommunications and Information 

Administration, Department of 

Commerce, or the Assistant Secretary’s 

designee. 

Award means a grant made under this 

NOFA by NTIA. 

Awardee means a grantee. 

Broadband means providing two-way 

data transmission with advertised 

speeds of at least 768 kilobits per 

second (kbps) downstream and at least 

200 kbps upstream to end users, or 

providing sufficient capacity in a 

Middle Mile project to support the 

provision of broadband service to end 

users. 

BTOP means the Broadband 

Technology Opportunities Program, 

administered by NTIA, under the 

Recovery Act. 

Build-out means the construction or 

improvement of facilities and 

equipment as specified in the 

application. 

Community anchor institutions means 

schools, libraries, medical and 

healthcare providers, public safety 

entities, community colleges and other 

institutions of higher education, and 

other community support organizations 

and agencies that provide outreach, 

access, equipment, and support services 

to facilitate greater use of broadband 

service by vulnerable populations, 

including low-income, the unemployed, 

and the aged. 

Comprehensive Community 

Infrastructure (CCI) project means an 

infrastructure project that focuses 

primarily on providing new or 

substantially upgraded connections to 

community anchor institutions. 

Economically distressed area means 

an area that has: (i) A per capita income 

of 80 percent or less of the national 

average; and (ii) an unemployment rate 

that is, for the most recent 24-month 

period for which data are available, at 

least one percent greater than the 

national average unemployment rate.26

Forecast period means the time period 

used by NTIA to determine if an 

application is financially feasible. 

Financial feasibility of an application is 

based on eight-year projections. 

GAAP means generally accepted 

accounting principles. 

Grant agreement means the agreement 

between NTIA and the grantee for grants 

awarded under this NOFA, including 


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27A Census block group is a cluster of Census 

blocks having the same first digit of their four-digit 

identifying numbers within a Census tract. A 

Census block group is the next level above Census 

block in the geographic hierarchy. 

28Census tracts are small, relatively permanent 

statistical subdivisions of a county. Census tracts 

are delineated for most metropolitan areas (MAs) 

and other densely populated counties by local 

Census statistical areas committees following 

Census Bureau guidelines (more than 3,000 Census 

tracts have been established in 221 counties outside 

MAs). Census tracts usually have between 2,500 

and 8,000 persons and, when first delineated, are 

designed to be homogeneous with respect to 

population characteristics, economic status, and 

living conditions. Census tracts do not cross county 

boundaries. The spatial size of Census tracts varies 

widely depending on the density of settlement. 

Census tract boundaries are delineated with the 

intention of being maintained over a long time so 

that statistical comparisons can be made from 

Census to Census. However, physical changes in 

street patterns caused by highway construction, 

new development, or other reasons may require 

occasional revisions; Census tracts occasionally are 

split due to large population growth, or combined 

as a result of substantial population decline. See the 

Census Bureau’s Web site at http://www.census.gov 

for more detailed information on its data gathering 

methodology. 

29 15 U.S.C. 637(a)(4) (as modified by the Small 

Business Administration’s approval of NTIA’s 

request to adopt an alternative small business 

concern size standard for use in BTOP). 

30 Implementing Guidance for Reports on Use of 

Funds Pursuant to the American Recovery and 

Reinvestment Act of 2009 (OMB M–09–21 June 22, 

2009), available at http://www.whitehouse.gov/ 

omb/assets/memoranda_fy2009/m09–21.pdf. 

31 25 U.S.C. 450b(e). 

any amendments thereto, setting forth 

the binding terms and conditions 

relating to Federal funding under BTOP. 

Sample grant agreements are available 

for review at http:// 

www.broadbandusa.gov or http:// 

www.ntia.doc.gov. 

Grant funds means Federal funds 

provided pursuant to a grant made 

under this NOFA. 

Grantee means the prime recipient of 

a grant under this NOFA. 

Last Mile means those components of 

a CCI project that provide broadband 

service to end-user devices through an 

intermediate point of aggregation. That 

is, in most cases, the Last Mile 

connection goes from the end-user 

device through an intermediate point of 

aggregation (i.e., a remote terminal, fiber 

node, wireless tower, or other 

equivalent access point) to a primary IP 

routing entity in a centralized facility 

(i.e., in the central office, the cable 

headend, the wireless switching station, 

or other equivalent centralized facility). 

The Last Mile also includes equivalent 

services that, solely because of close 

proximity between the customer and 

centralized facility, are routed directly 

to the centralized facility. The Last Mile 

will terminate at, and include, the 

initial customer-facing router or 

aggregation switch in the centralized 

facility (e.g., a DSLAM, CMTS, RNC, or 

equivalent) that is utilized to deliver 

Last Mile broadband service. 

Last Mile service area means the 

service area of a Last Mile component of 

a CCI project, composed of one or more 

contiguous Census block groups 27 or 

tracts,28 where the applicant is 

requesting BTOP funds to provide 

broadband service to end-user devices 

through an intermediate point of 

aggregation and terminating at the 

initial customer-facing router or 

aggregation switch in the centralized 

facility used to deliver the Last Mile 

broadband service. 

Middle Mile means those components 

of a CCI project that provide broadband 

service from one or more centralized 

facilities, (i.e., the central office, the 

cable headend, the wireless switching 

station, or other equivalent centralized 

facility) to an Internet point of presence. 

The Middle Mile includes, among other 

things, the centralized facilities and all 

of the equipment in those facilities, 

except for any equipment that would 

qualify as part of a Last Mile component 

as defined in this NOFA. 

Middle Mile service area means the 

project service area, composed of one or 

more contiguous Census block groups or 

tracts, where the applicant is requesting 

BTOP funds to provide broadband 

service from one or more centralized 

facilities, (i.e., the central office, the 

cable headend, the wireless switching 

station, or other equivalent centralized 

facility) to an Internet point of presence. 

Pre-application expense means any 

reasonable expense incurred after the 

release of this NOFA up to the issuance 

of the grant award from NTIA to prepare 

an application. These expenses include 

engineering costs, accountant or other 

consultant fees, and costs related to 

developing the proposal. Lobbying costs 

and contingency fees are not included 

as pre-application expenses. 

Proposed funded service area means 

the total service area of a CCI project 

where broadband service will be 

provided. 

Public computer center means a place, 

including but not limited to community 

colleges, libraries, schools, youth 

centers, employment service centers, 

Native American chapter houses, 

community centers, senior centers, 

assistive technology centers for people 

with disabilities, community health 

centers, and Neighborhood Network 

Centers in public housing 

developments, that provide broadband 

access to the general public or a specific 

vulnerable population, such as lowincome, unemployed, aged, children, 

minorities, and people with disabilities. 

Recipient means any entity that 

receives Recovery Act funds directly 

from the Federal government (including 

Recovery Act funds received through a 

grant) other than an individual. This 

includes a State that receives Recovery 

Act funds. 

Recovery Act means the American 

Recovery and Reinvestment Act of 2009, 

Pub. L. 111–5, 123 Stat. 115 (2009). 

Rural area means any area, as 

confirmed by the latest decennial 

Census of the U.S. Census Bureau, that 

is not located within: (i) A city, town, 

or incorporated area that has a 

population of greater than 20,000 

inhabitants; or (ii) an urbanized area 

contiguous and adjacent to a city or 

town that has a population of greater 

than 50,000 inhabitants. For purposes of 

the definition of rural area, an urbanized 

area means a densely populated 

territory as defined in the latest 

decennial Census of the U.S. Census 

Bureau. 

Socially and Economically 

Disadvantaged Small Business Concern 

means a firm, together with its 

controlling interests and affiliates, with 

average gross revenue not exceeding $40 

million for the preceding three years, 

and that meets the definition of a 

socially and economically 

disadvantaged small business concern 

under the Small Business Act.29

State means, for purposes of BTOP, a 

State or political subdivision thereof, 

the District of Columbia, or a territory or 

possession of the United States. 

Sub-recipient means an entity that 

expends Recovery Act funds received 

through a subaward from a recipient to 

carry out a Federal program but does not 

include an individual who is a 

beneficiary of such a program.30

Tribe means an Indian tribe that has 

the meaning given that term in Section 

4(e) of the Indian Self-Determination 

and Education Assistance Act.31

Underserved area means a Last Mile 

or Middle Mile service area, where at 

least one of the following factors is met: 

(i) No more than 50 percent of the 

households in the Last Mile or Middle 

Mile service area have access to 

facilities-based, terrestrial broadband 

service at greater than the minimum 

broadband transmission speed (set forth 

in the definition of broadband above); 

(ii) no fixed or mobile terrestrial 

broadband service provider advertises to 

residential end users broadband 

transmission speeds of at least three 

megabits per second (‘‘Mbps’’) 

downstream in the Last Mile or Middle 

Mile service area; or (iii) the rate of 

terrestrial broadband subscribership for 

the Last Mile or Middle Mile service 

area is 40 percent of households or less. 


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32See supra note 6. 

33Recovery Act sec. 6001(d)(2), 123 Stat. at 513. 

34 Id. Sec. 6001(d)(3), 123 Stat. at 513. 

35See 74 FR at 33134 (July 9, 2009). 

36Recovery Act sec. 6001(e)(1)(C), 123 Stat. at 

513; 74 FR at 33110. 

37See id. sec. 6001(f), 123 Stat. at 514. 

An underserved area may include 

individual Census block groups or tracts 

that on their own would not be 

considered underserved. The 

availability of or subscribership rates for 

satellite broadband service is not 

considered for the purpose of 

determining whether an area is 

underserved. 

Unserved area means a Last Mile or 

Middle Mile service area where at least 

90 percent of the households lack access 

to facilities-based, terrestrial broadband 

service, either fixed or mobile, at the 

minimum broadband transmission 

speed (set forth in the definition of 

broadband above). An unserved area 

may include individual Census block 

groups or tracts that on their own would 

not be considered unserved. A 

household has access to broadband 

service if the household readily can 

subscribe to that service upon request. 

The availability of or subscribership 

rates for satellite broadband service is 

not considered for the purpose of 

determining whether an area is 

unserved. 

IV. Award Information 

A. General 

Approximately $2.6 billion in budget 

authority has been set aside for funding 

opportunities under this NOFA. 

Publication of this NOFA does not 

obligate NTIA to award any specific 

project or obligate all of the available 

funds. Based on Round 1 experience, 

NTIA expects this grant round to be 

very competitive. During Round 1, RUS 

and NTIA received approximately 2,200 

applications collectively requesting 

nearly $28 billion in Federal funds. 

B. Funding Limits 

Approximately $2.6 billion is 

available to be awarded under this 

NOFA, which NTIA anticipates will be 

allocated in the following categories: 

a. Approximately $2.35 billion will be 

made available for CCI projects; 

b. At least $150 million will be made 

available for PCC projects; and 

c. At least $100 million will be made 

available for SBA projects. 

C. Repooling 

Subject to the statutory thresholds set 

forth in the Recovery Act, NTIA retains 

the discretion to divert funds from one 

category of projects to another. 

D. Unused Funds 

Funds remaining from the initial 

round of funding due to BTOP funding 

priorities or any other reason, and 

unused funds not awarded under the 

Broadband Mapping Program, may be 

used to augment the BTOP funding 

categories established above.32 NTIA 

reserves the right to reopen the 

application window or release 

subsequent NOFAs to ensure that all 

funds are awarded by September 30, 

2010. 

E. Award Amount 

Given NTIA’s Round 1 experience, 

NTIA expects to make awards within 

the following funding ranges. These 

ranges are not required minimums and 

maximums, but applicants requesting 

amounts for projects outside of these 

ranges must provide a reasoned 

explanation for the variance in their 

project size. 

CCI: $5 million–$150 million 

PCC: $500,000–$15 million 

SBA: $500,000–$15 million 

F. Award Period 

All awards under BTOP must be made 

no later than September 30, 2010.33

While the completion time will vary 

depending on the complexity of the 

project, grant recipients must 

substantially complete projects 

supported by this Program no later than 

two years, and projects must be fully 

completed no later than three years, 

following the date of issuance of the 

grant award.34

G. Type of Funding Instrument 

The funding instrument will be a 

grant. 

V. Eligibility Information for BTOP 

Applicants must satisfy the eligibility 

requirements set forth below in Sections 

V.A. through V.C. to qualify for funding. 

Applicants failing to comply with these 

requirements will not be considered for 

an award. 

A. Eligible Entities 

1. Applicant Organization 

The following entities are eligible to 

apply for funding: 

a. States, local governments, or any 

agency, subdivision, instrumentality, or 

political subdivision thereof; 

b. The District of Columbia; 

c. A territory or possession of the 

United States; 

d. An Indian tribe (as defined in 

Section 4 of the Indian SelfDetermination and Education 

Assistance Act (25 U.S.C. 450b)); 

e. A native Hawaiian organization; 

f. A non-profit foundation, a nonprofit corporation, a non-profit 

institution, or a non-profit association; 

g. Other non-profit entities; 

h. For-profit corporations; 

i. Limited liability companies; and 

j. Cooperative or mutual 

organizations. 

2. BTOP Public Interest Finding 

Section 6001(e)(1)(C) of the Recovery 

Act authorizes the Assistant Secretary to 

find by rule that it is in the public 

interest for any entity not otherwise 

encompassed by Section 6001(e)(1) to be 

eligible for a BTOP grant to the extent 

that such finding will promote the 

purposes of BTOP in a technology 

neutral manner. Consistent with the 

rationale set forth in the First NOFA,35

the Assistant Secretary found it to be in 

the public interest to permit for-profit 

corporations and non-profit entities (not 

otherwise encompassed by Section 

6001(e)(1)(B)) that are willing to 

promote the goals of the Recovery Act 

and comply with the statutory 

requirements of BTOP to be eligible for 

a grant. By adopting this broad 

approach, the Assistant Secretary 

intended to invite a diverse group of 

applicants to participate in BTOP and to 

expand broadband capabilities in a 

technology neutral manner.36 NTIA will 

continue to permit these same entities to 

apply for funding in this next round of 

awards. 

B. Fully Completed Application 

All applications will be evaluated 

initially to ensure that they are fully 

complete, certified, and contain all 

supporting documentation. 

C. Cost Share/Matching 

1. Matching Requirement 

In general, awardees under BTOP are 

required by statute to provide matching 

funds of at least 20 percent toward the 

total eligible costs of the project unless 

the Assistant Secretary grants a waiver. 

For costs to be eligible to meet matching 

requirements, they first must be 

allowable under the grant program. 

Eligible cost concepts are discussed in 

more detail in Section V.E. of this 

NOFA. Applicants must document in 

their application their capacity to 

provide matching funds. NTIA will 

provide up to 80 percent of the total 

eligible costs of the project, unless the 

applicant petitions the Assistant 

Secretary for a waiver of the matching 

requirement and that waiver is granted 

based on the applicant’s demonstration 

of financial need, as discussed below.37

Generally, Federal funds may not be 

used as a cost match except as provided 


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38See Uniform Administrative Requirements for 

Grants and Agreements with Institutions of Higher 

Education, Hospitals, Other Nonprofit, and 

Commercial Organizations, 15 CFR 14.23(a)(5); see 

also Uniform Administrative Requirements for 

Grants and Cooperative Agreements to State and 

Local Governments, 24 CFR 24.24(b)(1). 

39See 15 CFR 14.23(a), 24.24(a). 

40See supra Section II.C.4. 

41See supra note 23. 

42Nothing herein shall be construed to affect the 

jurisdiction of the FCC with respect to such matters. 

by Federal statute.38 In-kind 

contributions, including third party inkind contributions, are non-cash 

donations to a project that may count 

toward satisfying the non-Federal 

matching requirement of a project’s total 

budgeted costs. In-kind contributions 

must be allowable project expenses. 

Such contributions may be accepted as 

part of an applicant’s matching costs 

when such contributions meet certain 

criteria.39

Applicants that propose to provide a 

cost match that is all cash will be given 

additional favorable consideration in 

the application review process. 

Additionally, applicants will be given 

favorable consideration in the selection 

process by proposing to contribute a 

non-Federal cost match that equals or 

exceeds 30 percent of the total eligible 

costs of the projects. CCI applicants are 

strongly encouraged to not request more 

Federal funding than they require to 

make the project financially feasible and 

sustainable.40

2. Petition for Waiver 

In requesting a waiver of the matching 

requirement, an applicant should fully 

explain and document its inability to 

provide the required 20 percent 

matching share of the eligible costs of 

the proposed project. In demonstrating 

financial need, the applicant should 

submit: (1) Documents that include the 

applicant’s assets, liabilities, operating 

expenses, and revenues from any 

existing operations; (2) denial of 

funding from a public or private lending 

institution; or (3) any other documents 

that demonstrate financial need. Mere 

statements of financial need without 

supporting documentation will not be 

viewed favorably. The petition for 

waiver and documentation must be set 

forth clearly in the application. The 

Assistant Secretary will evaluate the 

information provided in support of the 

petition and may increase the Federal 

share if financial need is demonstrated. 

D. General Program Requirements 

1. Timely Completion 

Applicants must demonstrate that the 

project can be substantially completed 

within two years of the start date of the 

grant award and fully completed no 

later than three years following the date 

of issuance of the grant award. A BTOP 

project is considered ‘‘substantially 

complete’’ when a grantee has met 67 

percent of the project milestones and 

received 67 percent of its award funds. 

In evaluating compliance with this 

factor, NTIA will consider the planned 

start date of the project; the 

reasonableness of the project timeline 

and associated milestones; whether the 

applicant will be able to secure all 

licenses, franchises, and regulatory 

approvals required to complete the 

project; whether the applicant will be 

able to meet all environmental 

requirements; and whether the required 

contractors and vendors necessary to 

implement the project are prepared to 

enter into contracts as soon as the funds 

are made available. 

In view of the urgent need for 

additional economic stimulus, however, 

NTIA strongly encourages applicants to 

fully complete their projects within the 

two-year time period from the date of 

issuance of the award. 

2. Demonstration That Project Could 

Not Be Implemented ‘‘But For’’ Federal 

Grant Assistance 

Grant applicants must provide 

documentation that the project would 

not have been implemented during the 

grant period without Federal grant 

assistance.41 This documentation may 

consist of, but is not limited to, such 

items as a denial of funding from a 

public or private lending institution, a 

current fiscal year budget that shows the 

lack of available revenue options for 

funding the project, or a business case 

that demonstrates that the project would 

not be economically feasible without 

grant financing. 

3. Additional Requirements Applicable 

to Comprehensive Community 

Infrastructure Applicants 

a. Broadband Service 

All CCI applicants must propose to 

offer service meeting the definition of 

broadband as defined in Section III. 

b. Nondiscrimination and 

Interconnection 

All CCI applicants must commit to the 

following Nondiscrimination and 

Interconnection Obligations: 42

(i) Adhere to the principles contained in 

the FCC’s Internet Policy Statement 

(FCC 05–151, adopted August 5, 2005) 

or any subsequent ruling or statement; 

(ii) not favor any lawful Internet 

applications and content over others; 

(iii) display any network management 

policies in a prominent location on the 

service provider’s Web page and 

provide notice to customers of changes 

to these policies (awardees must 

describe any business practices or 

technical mechanisms they employ, 

other than standard best efforts Internet 

delivery, to allocate capacity; 

differentiate among applications, 

providers, or sources; limit usage; and 

manage illegal or harmful content); (iv) 

connect to the public Internet directly or 

indirectly, such that the project is not an 

entirely private closed network; and (v) 

offer interconnection, where technically 

feasible without exceeding current or 

reasonably anticipated capacity 

limitations, at reasonable rates and 

terms to be negotiated with requesting 

parties. This includes both the ability to 

connect to the public Internet and 

physical interconnection for the 

exchange of traffic. Applicants must 

disclose their proposed interconnection, 

nondiscrimination, and network 

management practices with the 

application. 

All these requirements shall be 

subject to the needs of law enforcement 

and reasonable network management. 

Thus, awardees may employ generally 

accepted technical measures to provide 

acceptable service levels to all 

customers, such as caching (including 

content delivery networks) and 

application-neutral bandwidth 

allocation, as well as measures to 

address spam, denial of service attacks, 

illegal content, and other harmful 

activities. In evaluating the 

reasonableness of network management 

techniques, NTIA will be guided by any 

applicable rules or findings established 

by the FCC, whether by rulemaking or 

adjudication. 

In addition to providing the required 

connection to the Internet, awardees 

may offer managed services, such as 

telemedicine, public safety 

communications, distance learning, and 

virtual private networks, that use 

private network connections for 

enhanced quality of service rather than 

traversing the public Internet. 

An awardee may satisfy the 

requirement for interconnection by 

negotiating in good faith with all parties 

making bona fide requests. The awardee 

and requesting party may negotiate 

terms such as business arrangements, 

capacity limits, financial terms, and 

technical conditions for 

interconnection. If the awardee and 

requesting party cannot reach 

agreement, they may voluntarily seek an 

interpretation by the FCC of any FCC 

rules implicated in the dispute. If an 

agreement cannot be reached within 90 

days, the party requesting 

interconnection may notify NTIA in 


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43Note that the changes made to this section from 

the First NOFA are meant to clarify, and not 

change, applicants’ obligations. 44See infra Section VII.A.1. 

45For example, there is a set of Federal principles 

for determining eligible or allowable costs. 

Allowability of costs will be determined in 

accordance with the cost principles applicable to 

the entity incurring the costs. Thus, allowability of 

costs incurred by State, local or Federallyrecognized Indian tribal governments is determined 

in accordance with the provisions of OMB Circular 

A–87, ‘‘Cost Principles for State, Local and Indian 

Continued 

writing of the failure to reach 

satisfactory terms with the awardee. The 

90-day limit is to encourage the parties 

to resolve differences through 

negotiation. 

With respect to non-discrimination, 

those who believe an awardee has failed 

to meet the non-discrimination 

obligations should first seek action at 

the FCC of any FCC rules implicated in 

the dispute. If the FCC chooses to take 

no action, those seeking recourse may 

notify NTIA in writing about the alleged 

failure to adhere to commitments of the 

award. 

These conditions apply to the 

awardee and will remain in effect for 

the life of the awardee’s Federally 

funded facilities and equipment used in 

the project. These conditions will not 

apply to any existing network 

arrangements or to non-awardees using 

the network. Note, however, that the 

awardee may negotiate contractual 

covenants with other broadband service 

providers engaged to deploy or operate 

the network facilities and pass these 

conditions through to such providers. 

Awardees that fail to accept or comply 

with the terms listed above may be 

considered in default of their grant 

agreements. NTIA may exercise all 

available remedies in the event of a 

default, including suspension of award 

payments or termination of the award.43

c. Last Mile Coverage Obligation 

i. Service Obligation 

An applicant for a CCI project that 

includes a Last Mile component must 

identify the Last Mile service area(s) 

selected for the project. There is a 

presumption that the applicant will 

provide service to the entire Last Mile 

service area(s). 

ii. Petition for Waiver 

An applicant may petition for a 

waiver of the Last Mile Coverage 

Obligation if it provides a reasoned 

explanation as to why providing service 

or coverage for the entire Last Mile 

service area is extremely burdensome 

for the applicant. In considering 

whether providing service or coverage is 

extremely burdensome, the applicant 

must explain whether there are any 

legal, technical, or financial 

impediments to covering each Census 

block group or tract. Mere statements 

regarding the burden to serve an area 

without supporting documentation will 

not be viewed favorably. The petition 

for waiver and documentation must be 

set forth clearly in the application. 

Applicants may be permitted to serve 

less than an entire Census block group 

or tract under certain conditions. For 

example, an applicant might request to 

be relieved of this requirement if the 

Census block group or tract exceeds 100 

square miles or more or is larger than 

the applicant’s authorized operating 

territory (e.g., it splits a rural incumbent 

local exchange carrier’s (ILEC’s) study 

area or exceeds the boundaries of a 

wireless carrier’s licensed territory). 

Where applicable, an applicant seeking 

a waiver also should include 

information regarding the characteristics 

of the Last Mile service area (e.g., data 

showing whether broadband services 

already are available in the proposed 

unserved territory by more than one 

service provider or information 

regarding terrain, acreage, population, 

etc.) and costs (e.g., pro forma financial 

projections or estimated applicant cost/ 

burden to provide broadband service to 

the remainder of the area). 

d. Announcement of Proposed Funded 

Service Areas 

In the interests of promoting 

transparency and strengthening the 

selection process, NTIA will post an 

announcement identifying each CCI 

application it has received, along with 

a list of the Census block groups or 

tracts that each infrastructure applicant 

has proposed to serve through its 

project, at http:// 

www.broadbandusa.gov. The posting of 

this announcement will provide existing 

broadband service providers with a 15- 

day window voluntarily to submit to 

NTIA information about the broadband 

services they currently offer in their 

respective service territories by Census 

block group or tract. If an existing 

broadband service provider submits a 

response outside of the 15-day period, 

NTIA may not consider this information 

in its evaluation of an applicant’s Last 

Mile or Middle Mile service area(s). 

NTIA will consider the comments of 

existing broadband service providers as 

a factor in its evaluation of the 

applicant’s Last Mile or Middle Mile 

service area(s) 44 provided that they 

include the following information, some 

of which will be made public: (1) The 

name of the company providing 

information on its broadband service 

offerings; (2) a summary describing the 

information the provider has presented 

to NTIA; (3) the number of households 

and businesses that have access to 

broadband service in the provider’s 

service territory by Census block group 

or tract; (4) the type of broadband 

services the provider offers in its service 

territory by Census block group or tract 

and the technology used to provide 

those services, including, for wireless 

carriers, the spectrum that is used; 

(5) the prices at which the broadband 

services are offered; (6) the speed of the 

broadband services that are offered; (7) 

the number of subscribers that the 

provider currently has for each of the 

broadband services it offers in its 

service territory by Census block group 

or tract; and (8) optionally, a list of the 

provider’s Points of Presence (POPs) in 

or near Census block groups or tracts 

listed by the announcement. 

The information submitted by an 

existing broadband service provider 

relating to items (3) through (8) 

enumerated above will be treated as 

proprietary and confidential to the 

extent permitted under applicable law. 

The information described in items (1) 

and (2) above, which includes the 

identity of the company submitting 

information and a summary of its 

response, will be made publicly 

available. NTIA will post at http:// 

www.broadbandusa.gov a list of the 

Census block groups or tracts in which 

existing broadband service providers 

have indicated that they provide 

broadband service. NTIA may consider 

any information submitted by existing 

broadband service providers as relevant 

to its prioritization and review of CCI 

applications and as part of its evaluation 

of the merits of a highly qualified CCI 

application. NTIA will contact the 

applicant as necessary for additional 

information to evaluate the unserved or 

underserved status of its Last Mile or 

Middle Mile service area(s), if 

applicable, and may take other data, 

such as existing State broadband maps 

and FCC Form 477 data, into account 

during this examination. 

E. Funding Restrictions—Eligible and 

Ineligible Costs 

1. General 

Grant funds that NTIA awards may 

not necessarily be used to pay for all of 

the costs that the grant recipient incurs 

in carrying out the project. Specifically, 

grant funds must be used only to pay for 

eligible costs. Eligible costs are 

consistent with the cost principles 

identified in the applicable OMB 

circulars 45 and in the grant program’s 


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Tribal Governments.’’ The allowability of costs 

incurred by nonprofit organizations is determined 

in accordance with the provisions of OMB Circular 

A–122, ‘‘Cost Principles for Non-Profit 

Organizations.’’ The allowability of costs incurred 

by institutions of higher education is determined in 

accordance with the provisions of OMB Circular A– 

21, ‘‘Cost Principles for Educational Institutions.’’ 

The allowability of costs incurred by hospitals is 

determined in accordance with the provisions of 

Appendix E of 45 CFR part 74, ‘‘Principles for 

Determining Costs Applicable to Research and 

Development under Grants and Contracts with 

Hospitals.’’ The allowability of costs incurred by 

commercial organizations and those nonprofit 

organizations listed in Attachment C to Circular A– 

122 is determined in accordance with the 

provisions of the Federal Acquisition Regulation 

(FAR) at 48 CFR part. 31. See 15 CFR 14.27 and 

24.22 (governing the Department of Commerce’s 

implementation of OMB requirements). 

46BTOP CCI applicants and PCC applicants will 

be directed to revise SF–424A (for non-construction 

projects) or SF–424C (for construction projects). 

SBA applicants will be directed to revise SF–424A 

(for non-construction projects). 

47See http://oam.ocs.doc.gov/docs/ 

DOC%20IDC%20Ext%20Policy.v6.doc. 

48These facilities and equipment may include, for 

example, but are not limited to, the costs associated 

with complying with all applicable legal 

requirements, such as the Communications 

Assistance for Law Enforcement Act (CALEA). See 

infra Section X.P. 

authorizing legislation. In addition, 

costs must be reasonable, allocable, 

necessary to the project, and conform to 

GAAP. For CCI projects, eligible costs 

are generally capital expenses, and not 

operating expenses. An applicant 

proposing to use any portion of the 

grant funds for any ineligible cost will 

be instructed to revise its proposed 

budget to remove such costs prior to the 

award of a grant.46 A more detailed 

discussion of the eligible and ineligible 

costs that are applicable to each BTOP 

project category is set forth in the 

following sections. 

In general, a project will incur both 

direct and indirect costs. Direct and 

indirect costs may be reimbursed from 

grant funds provided that they fall 

within the approved eligible cost 

categories discussed below. 

a. Direct Costs of a BTOP Project 

Direct costs are those that are directly 

related and traceable to the cost of the 

project being supported. Direct costs of 

a project may be charged to the award 

if they are allowable costs and are 

included within approved budget 

categories. 

b. Indirect Costs of a BTOP Project 

NTIA has the discretion to consider 

indirect costs as eligible expenses under 

BTOP. For CCI projects, reasonable 

indirect costs associated with the 

construction, deployment, or 

installation of facilities and equipment 

used to provide broadband service as 

described in Section V.E.2. will be 

considered eligible provided that they 

are included as a line item in the 

applicant’s budget and the applicant has 

established, or commits to apply for, an 

approved indirect cost rate. For PCC and 

SBA projects, reasonable indirect costs 

associated with eligible project activities 

as detailed in Sections V.E.3. and V.E.4. 

will be considered eligible costs 

provided they are included as a line 

item in the applicant’s budget and the 

applicant has established, or commits to 

apply for, an approved indirect cost 

rate. The process for establishing an 

indirect cost rate with the DOC is 

described in a document entitled 

‘‘General Indirect Cost Rate Program 

Guidelines for Grantee Organizations’’ 

and can be found on the Department of 

Commerce Web site.47 Applicants that 

do not have an approved indirect cost 

rate will have 90 days from the award 

start date to apply to have a rate 

established. 

2. Eligible and Ineligible Costs for BTOP 

Comprehensive Community 

Infrastructure Projects 

a. Eligible Costs for Comprehensive 

Community Infrastructure Projects 

Grant funds may be used to pay for 

the following expenses: 

i. To fund the construction or 

improvement of all facilities required to 

provide broadband service; 48

ii. To fund the cost of long-term leases 

(for terms greater than one year) of 

facilities required to provide broadband 

service, including indefeasible right-ofuse (IRU) agreements; 

iii. To fund reasonable preapplication expenses in an amount not 

to exceed five percent of the award. Preapplication expenses, which include 

expenses related to preparing an 

application, may be reimbursed if they 

are incurred after the publication date of 

this NOFA and prior to the date of 

issuance of the grant award from NTIA, 

except that lobbying costs and 

contingency fees are not reimbursable 

from BTOP funds; 

iv. To fund reasonable indirect costs 

consistent with the principles outlined 

in Section V.E.1. of this NOFA; and 

v. Undertaking such other projects 

and activities as the Assistant Secretary 

finds to be consistent with the purposes 

for which the Program is established. 

b. Ineligible Costs for Comprehensive 

Community Infrastructure Projects 

Grant funds may not be used for any 

of the following purposes: 

i. To fund operating expenses of the 

applicant; 

ii. To fund costs incurred prior to the 

date on which the application is 

submitted, with the exception of eligible 

pre-application expenses; 

iii. To fund an acquisition of an 

affiliate, including the acquisition of the 

stock of an affiliate; 

iv. To fund the purchase or lease of 

any vehicle other than those used 

primarily in construction or system 

improvements; 

v. To fund the merger or 

consolidation of entities; or 

vi. To fund costs incurred in 

acquiring spectrum as part of an FCC 

auction or in a secondary market 

acquisition. 

3. Eligible and Ineligible Costs for 

Public Computer Center Projects 

a. Eligible Costs for Public Computer 

Center Projects 

Projects under this category are aimed 

at expanding broadband access and 

capacity at community anchor 

institutions, organizations serving 

vulnerable populations, or job-creating 

strategic facilities located in State- or 

Federally-designated economic 

development areas as well as 

stimulating broadband demand, 

economic growth, and job creation. 

Grantees may use BTOP funding to 

expand public computer center capacity 

by: 

i. Acquiring broadband-related 

equipment, instrumentation, networking 

capability, hardware and software, and 

digital network technology for 

broadband services, including the 

purchase of word processing software, 

computer peripherals, such as mice and 

printers, and computer maintenance 

services and virus-protection software; 

ii. Developing and providing training, 

education, support, and awareness 

programs or web-based resources, 

including reasonable compensation for 

qualified instructors, technicians, 

managers, and other employees 

essential for these types of programs; 

iii. Facilitating access to broadband 

services, including, but not limited to, 

making public computer centers 

accessible to the disabled; 

iv. Installing or upgrading broadband 

facilities on a one-time, capital 

improvement, basis in order to increase 

broadband capacity; 

v. Constructing, acquiring, or leasing 

a new facility, provided that the 

applicant explains why it is necessary to 

construct, acquire, or lease a new 

facility to facilitate public access to 

broadband services or expand computer 

center capacity; 

vi. Funding reasonable indirect costs 

consistent with the principles outlined 

in Section V.E.1. of this NOFA; 

vii. Undertaking such other projects 

and activities as the Assistant Secretary 


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49 15 CFR 14.24(b), 24.25(g). 

50 15 CFR 14.2(aa), 24.25(b). Program income 

includes, among other things, income from fees for 

services performed, from the use or rental of real 

or personal property acquired with grant funds, and 

from the sale of commodities or items fabricated 

under a grant agreement. 15 CFR 14.2(aa), 24.25(a). 

In general, costs incident to the generation of 

program income may be deducted from gross 

income to determine program income, provided 

these costs have not been charged to the award. 15 

CFR 14.25(f), 24.25(c). 

51 15 CFR 14.25(h), 24.25(h). 

52See, e.g., 2 CFR 215.24; 15 CFR 14.24, 24.25. 

53 ‘‘To enable timeliness of awards, agencies 

should engage in aggressive outreach to potential 

applicants to begin application planning activities, 

including the process of Central Contractor 

Registration (CCR) and obtaining a Dun and 

Bradstreet Universal Numbering System (DUNS) 

number.’’ Updating Implementing Guidance for the 

American Recovery and Reinvestment Act of 2009 

(OMB M–09–15 April 3, 2009), available at 

http://www.whitehouse.gov/omb/assets/ 

memoranda_fy2009/m09-15.pdf. 

finds to be consistent with the purposes 

for which the Program is established; 

and 

viii. Paying for reasonable preapplication expenses in an amount not 

to exceed five percent of the award. Preapplication expenses, which include 

expenses related to preparing an 

application, may be reimbursed if they 

are incurred after the publication date of 

this NOFA and prior to the date of 

issuance of the grant award from NTIA, 

except that lobbying costs and 

contingency fees are not reimbursable 

from BTOP funds. 

While some of the costs associated 

with the activities enumerated above 

may be properly classified as operating 

expenses, an applicant should describe 

in its application how it intends to 

cover the operating expenses of the 

project after the grant period expires. 

b. Ineligible Costs for Public Computer 

Center Projects 

BTOP grant funds may not be used to 

fund purchases that are not used 

predominantly for expanding public 

access to broadband service or 

enhancing broadband capacity at public 

computer center locations. 

4. Eligible and Ineligible Costs for 

Sustainable Broadband Adoption 

Projects 

a. Eligible Costs for Sustainable 

Broadband Adoption Projects 

Projects under this category are aimed 

at providing broadband education, 

awareness, training, access, equipment, 

and support in order to stimulate 

sustainable adoption of broadband 

services by individuals, households, 

and community anchor institutions. In 

this context, sustainable means 

adoption (i.e., subscription to 

broadband service) that the consumer or 

institution can and will continue to pay 

for after the award period. Grantees may 

use BTOP funding for innovative 

programs that encourage sustainable 

adoption of broadband services by: 

i. Acquiring broadband-related 

equipment, instrumentation, networking 

capability, hardware and software, and 

digital network technology for 

broadband services; 

ii. Developing and providing training, 

education, support, and awareness 

programs, as well as web-based content 

that is incidental to the program’s 

purposes, and includes reasonable 

compensation for qualified instructors 

for these types of programs; 

iii. Conducting broadband-related 

public education, outreach, support, 

and awareness campaigns; 

iv. Implementing programs to 

facilitate greater access to broadband 

service, devices, and equipment; 

v. Funding reasonable indirect costs 

consistent with the principles outlined 

in Section V.E.1. of this NOFA; 

vi. Undertaking such other projects 

and activities as the Assistant Secretary 

finds to be consistent with the purposes 

for which the Program is established; 

and 

vii. Paying for reasonable preapplication expenses in an amount not 

to exceed five percent of the award. Preapplication expenses, which include 

expenses related to preparing an 

application, may be reimbursed if they 

are incurred after the publication date of 

this NOFA and prior to the date of 

issuance of the grant award from NTIA, 

except that lobbying costs and 

contingency fees are not reimbursable 

from BTOP funds. 

While some of the costs associated 

with the activities enumerated above 

may be properly classified as operating 

expenses, an applicant should describe 

in its application how it intends to 

cover the operating expenses of the 

project after the grant period expires, if 

appropriate. 

b. Ineligible Costs for Sustainable 

Broadband Adoption Projects 

BTOP grant funds may not be used for 

expenses or purchases that are not used 

predominantly for the provision of 

broadband education, awareness, 

training, access, equipment, and 

support. Additionally, costs associated 

with constructing or leasing broadband 

facilities and infrastructure are not 

eligible. 

F. Use of Program Income 

Grantees are required to account for 

any Program income directly generated 

by projects financed in whole or in part 

with Federal funds. Given the Recovery 

Act’s objectives to spur job creation and 

stimulate long-term economic growth 

and opportunity, projects funded by 

BTOP grants are expected to 

demonstrate convincingly the ability to 

be sustained beyond the funding period. 

While grant funds are intended to cover 

the capital costs of a project as part of 

the Recovery Act’s effort to stimulate 

the economy, grant recipients for all 

grant programs are expected to present 

projects that will sustain long-term 

growth and viability. 

Any Program income generated by a 

project funded by BTOP during the 

grant period shall be retained by the 

grant recipient and shall be used in one 

or more of the following ways: (1) 

Added to the funds committed to the 

project by NTIA and the recipient to 

conduct additional activities that will 

further eligible project objectives, 

including (a) reinvestment in project 

facilities, (b) funding BTOP compliance 

costs, and (c) paying operating expenses 

of the project; or (2) used to finance the 

non-Federal share of the project.49

Program income means gross income 

earned by the recipient that is either 

directly generated by a supported 

activity or earned as a result of the 

award during the funding period.50

Grant recipients shall have no obligation 

to the Federal government regarding 

Program income earned after the end of 

the project period.51 However, the 

Federal government retains an interest 

in property in the event that it is sold, 

consistent with the guidance outlined in 

Section IX.C. of this NOFA and in 

applicable DOC regulations.52

VI. Application and Submission 

Information 

A. Request for Application Package 

Complete application packages, 

including required Federal forms and 

instructions, will be available at http:// 

www.broadbandusa.gov. Additional 

information for BTOP can be found in 

the Application Guidelines at http:// 

www.broadbandusa.gov. This Web site 

will be updated regularly. 

B. Registration 

1. Central Contractor Registration (CCR) 

All applicants are required to have a 

current registration in the CCR database 

prior to receiving an award. Online CCR 

registration is available at http:// 

www.ccr.gov/StartRegistration.aspx. 

Applicants without a current CCR are 

encouraged to register as soon as 

possible after the release of this 

NOFA.53


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54 Id. 55Recovery Act Tit. I, 123 Stat. at 128. 

56Specifically, NTIA is required to create an 

application database that includes at least a list of 

each entity that has applied for a BTOP grant, a 

description of each application, and the status of 

each application. Recovery Act sec. 6001(i)(5), 123 

Stat. at 515. After award, NTIA is required to make 

certain additional information available about the 

grants (e.g., the name of each entity receiving funds, 

the purpose for which the entity is receiving funds, 

and the quarterly reports). Id. 

2. DUNS Number 

All applicants should obtain a Dun 

and Bradstreet Data Universal 

Numbering System (DUNS) number as 

soon as possible after the release of this 

NOFA.54 Applicants can receive a 

DUNS number at no cost by calling the 

dedicated toll-free DUNS number 

request line at 1–866–705–5711 or via 

the Internet at http:// 

www.dunandbradstreet.com. 

C. Choosing the Proper Agency and 

Category for an Application 

1. Broadband Infrastructure 

a. Choosing BIP or BTOP 

Applicants that are eligible for both 

BIP and BTOP have the option to apply 

to either agency for funding for a 

project. However, applicants should 

apply to only one agency for a given 

project. NTIA strongly recommends that 

applicants that are current RUS loan or 

grant recipients, as well as any 

applicant whose project is for a Last 

Mile area that is at least 75 percent 

rural, should apply to BIP for funding. 

This recommendation is necessary to 

improve the efficiency of both BIP and 

BTOP and to leverage the core expertise 

of the agencies. The agencies will 

coordinate to identify potential service 

area overlaps, and will resolve such 

conflicts in the manner that best 

satisfies the statutory objectives of both 

programs. 

b. Transferability 

Under this NOFA, the Assistant 

Secretary may refer to RUS any CCI 

application that NTIA has determined 

not to fund but that may be consistent 

with BIP requirements. 

c. Comprehensive Community 

Infrastructure 

Applications for CCI projects should 

provide a broadband infrastructure 

solution that addresses the major needs 

of communities the project intends to 

serve. Priority will be given to projects 

that include a Middle Mile component. 

The project should meet the significant 

needs of the community, which in the 

first instance should include providing 

broadband service to community anchor 

institutions, such as community 

colleges, schools, libraries, medical and 

healthcare providers, community 

support organizations, and public safety 

entities. CCI projects should be 

technically feasible, sustainable, and 

scalable, and address BTOP’s priority 

needs, including offering substantial 

economic, educational, healthcare, and 

public safety benefits relative to the 

costs of providing service. NTIA will 

give strong preference to CCI 

applications that satisfy each of the 

priorities set forth in Section II.B. 

To the extent that a CCI project 

contains a Last Mile component in rural 

areas, the additional costs of offering 

service to residential consumers and 

non-community anchor institutions may 

not exceed more than 20 percent of the 

total eligible costs of the project. 

Additionally, the applicant must 

demonstrate the cost reasonableness and 

effectiveness of the Last Mile 

component of its project. Specifically, 

applicants must ensure that this aspect 

of the proposal yields total eligible 

project costs that are less than $10,000 

per household or per subscriber, unless 

the applicant can demonstrate why it 

should be permitted to exceed this 

ceiling. NTIA will look more favorably 

upon applications with lower costs per 

household or per subscriber. 

2. Public Computer Centers 

Applications for PCC projects must 

expand public computer center 

capacity, including at community 

colleges and public libraries.55 They 

must provide broadband access or 

improve broadband access to the general 

public or a specific vulnerable 

population, such as low-income, 

unemployed, aged, children, minorities, 

and people with disabilities. Projects 

must create or expand a public 

computer center meeting a specific 

public need for broadband service, 

including, but not limited to, education, 

employment, economic development, 

and enhanced service for healthcare 

delivery, children, and vulnerable 

populations. As described below, NTIA 

will consider information related to the 

demographics, size, and scope of the 

populations to be served, as well as the 

capacity of and the training provided by 

the proposed centers. 

3. Sustainable Broadband Adoption 

Applications for SBA projects should 

demonstrate a sustainable increase in 

demand for and subscribership to 

broadband services. Projects should 

meet a specific public need for 

broadband service, including, but not 

limited to, education, employment, 

economic development, and enhanced 

service for healthcare delivery, children, 

and vulnerable populations. Projects 

should describe the barriers to adoption 

in a given area, especially among 

vulnerable populations, and propose an 

innovative and persuasive solution to 

achieve increased adoption. Applicants 

might show how variations on one or 

more proven demand stimulation 

strategies—such as awareness-building, 

development of relevant content, and 

demand aggregation—would promote 

sustainable adoption. NTIA expects a 

high degree of verification that will 

demonstrate the effectiveness of various 

approaches to building sustainable 

broadband adoption, including market 

research and surveys. 

D. Contents of the Application 

1. Comprehensive Community 

Infrastructure Applications 

A complete CCI application will 

include the elements listed below. As 

required by the Recovery Act, NTIA is 

required to make certain information 

about applications available in a 

publicly accessible database.56 Thus, 

NTIA will publicly display application 

elements containing such information 

on the applicant database at http:// 

www.broadbandusa.gov. See Section 

X.J. for a discussion of NTIA’s treatment 

of confidential materials. 

The following application elements 

will be publicly displayed on the 

applicant database: 

a. The identity of the applicant and 

general applicant and project 

information; 

b. An executive summary of the 

project; 

c. Information regarding the proposed 

funded service area; and 

d. The Federal grant request and cost 

match. 

The following elements will not be 

included in the publicly accessible 

applicant database: 

a. A description of the applicant’s 

nondiscrimination, interconnection, and 

network management plans; 

b. Details on local community 

involvement and partnerships with 

government, community, and 

community anchor institutions, and 

involvement of socially and 

economically disadvantaged small 

business concerns (SDB) as defined in 

Section III of this NOFA; 

c. A description of how the applicant 

will advance the objectives of the 

Recovery Act, as well as the specific 

objectives of BTOP; 

d. A description of the proposed 

service offerings, including the pricing 

of the services and information on 

available services in the area; 


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Federal Register / Vol. 75, No. 14 / Friday, January 22, 2010 / Notices 3805 

e. Technical details of the proposed 

project; 

f. A timeline for the implementation 

of the project, including key milestones 

for implementation of the project, 

preparations, and risk factors; 

g. Information regarding the 

organization’s capacity and readiness; 

h. Details on the project budget and 

funding, including the level of need for 

Federal funding, details on other 

Federal funding received by the 

applicant, and information regarding 

matching funds; 

i. Pro forma financial analysis related 

to the sustainability of the project across 

an eight-year forecast period; 

j. Completion of the Environmental 

Questionnaire; and 

k. The following supplemental 

attachments as applicable: 

i. Historical financial statements and 

Certified Public Accountant (CPA) 

audits if applicable; 

ii. Proposed service offerings; 

iii. Competitor data; 

iv. Network diagram and system 

design; 

v. Maps of the proposed service areas; 

vi. Build out timeline; 

vii. Management team resumes and 

organization chart; 

viii. List of community anchor 

institutions; 

ix. Governance and key partnerships; 

x. Pro forma financial projections and 

subscriber estimates; and 

xi. Authorized Organization 

Representation and Compliance and 

Assurance Certification. 

2. Public Computer Centers 

Applications 

A complete PCC application will 

include the elements listed below. As 

noted above, NTIA is required by the 

Recovery Act to make certain 

information about applications available 

in a publicly accessible database. Thus, 

NTIA will publicly display application 

elements containing such information 

on the applicant database at http:// 

www.broadbandusa.gov. See Section 

X.J. for a discussion of NTIA’s treatment 

of confidential materials. 

The following application elements 

will be publicly displayed on the 

applicant database: 

a. The identity of the applicant and 

general applicant and project 

information; 

b. An executive summary of the 

project; and 

c. The Federal grant request and cost 

match. 

The following elements will not be 

included in the publicly accessible 

applicant database: 

a. A description of how the applicant 

will advance the objectives of the 

Recovery Act, as well as the specific 

objectives of BTOP; 

b. A summary of the viability of the 

project; 

c. Proposed budget and sustainability 

information; 

d. Completion of an environmental 

checklist or the Environmental 

Questionnaire; and 

e. The following supplemental 

attachments: 

i. Governance and key partnerships; 

ii. Historical financial statements, as 

applicable; 

iii. Public center detail; 

iv. Management team resumes and 

organization chart; 

v. SF–424 budget; 

vi. Detailed budget; and 

vii. Authorized Organization 

Representative and Compliance and 

Assurance Certification. 

3. Sustainable Broadband Adoption 

Applications 

A complete SBA application will 

include the elements listed below. As 

noted above, NTIA is required by the 

Recovery Act to make certain 

information about applications available 

in a publicly accessible database. Thus, 

NTIA will publicly display application 

elements containing such information 

on the applicant database at http:// 

www.broadbandusa.gov. See Section 

X.J. for a discussion of NTIA’s treatment 

of confidential materials. 

The following elements will be 

publicly displayed on the applicant 

database: 

a. The identity of the applicant and 

general applicant and project 

information; 

b. An executive summary of the 

project; and 

c. The Federal grant request and cost 

match. 

The following elements will not be 

included in the publicly accessible 

applicant database: 

a. A description of how the applicant 

will advance the objectives of the 

Recovery Act, as well as the specific 

objectives of BTOP; 

b. A summary of the viability of the 

project; 

c. Proposed budget and sustainability 

information; 

d. Completion of an environmental 

checklist and applicable certifications; 

and 

e. The following supplemental 

attachments: 

i. Governance and key partnerships; 

ii. Historical financial statements, as 

applicable; 

iii. Management team resumes and 

organization chart; 

iv. SF–424 budget; 

v. Detailed budget; and 

vi. Authorized Organization 

Representative and Compliance and 

Assurance Certification. 

4. Supplementary Information Requests 

for Due Diligence 

As discussed in Section II.C. above, 

those applications that are considered to 

be most highly qualified (i.e., receiving 

the highest scores) will advance to due 

diligence and will be processed with 

priority given to projects that best 

conform with the statutory purposes 

and program priorities described in 

Section II. In due diligence, applicants 

may be asked to submit additional 

information, as appropriate, to clarify or 

to further substantiate the 

representations made in their 

application and allow Federal staff to 

evaluate fully the proposed project with 

respect to the eligibility factors, general 

Program requirements, evaluation 

criteria, and selection factors specified 

in this NOFA. Due diligence applies to 

all three categories of projects. 

E. Filing Instructions 

Electronic submissions of 

applications will allow for the 

expeditious review of an applicant’s 

proposal consistent with the goals of the 

Recovery Act. As a result, all applicants 

are required to submit their applications 

electronically at https:// 

applyonline.broadbandusa.gov. The 

electronic application system will 

provide a date-and-time-stamped 

confirmation number that will serve as 

proof of submission. Please note that 

applications will not be accepted via 

paper, facsimile machine transmission, 

electronic mail, or other media format. 

Applicants, however, may request a 

waiver of these filing instructions 

pursuant to Section X.N. of this NOFA. 

F. Submission Dates and Times 

All applications for funding BTOP 

projects must be submitted between 

February 16, 2010, at 8 a.m. Eastern 

Standard Time (EST) and March 15, 

2010, at 5 p.m. Eastern Daylight Time 

(EDT). 

G. Authorization 

As required by Section IX.C.5.a. of 

this NOFA, all applicants will be 

required to submit a certification by an 

Authorized Organization Representative 

at the time the application is submitted 

for filing. 

H. Material Representations 

The application, including all 

certifications and assurances, and all 

forms submitted as part of the 

application will be treated as a material 


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3806 Federal Register / Vol. 75, No. 14 / Friday, January 22, 2010 / Notices 

57See Recovery Act sec. 6001(b), 123 Stat. at 512– 

13 (stating the purposes of the program are to 

provide broadband access to unserved areas; to 

provide improved broadband access to underserved 

areas; to provide broadband access, education, and 

support to community anchor institutions, or 

organizations and agencies serving vulnerable 

populations, or job-creating strategic facilities 

located in State- or Federally-designated economic 

development areas; to improve access to, and use 

of, broadband service by public safety agencies; and 

to stimulate the demand for broadband, economic 

growth, and job creation). 

58See id. sec. 6001(h)(2)(C), 123 Stat. at 515. 

59 15 U.S.C. 637(a)(4) (as modified by the Small 

Business Administration’s approval of NTIA’s 

request to adopt an alternative small business 

concern size standard for use in BTOP). 

representation of fact upon which NTIA 

will rely in awarding grants. 

I. Material Revisions 

An applicant shall not be permitted to 

make any material revision to its 

application after the submission 

deadline. NTIA may request or accept 

clarifications, revisions or submissions 

for completeness that are non-material. 

VII. Application Review Information 

A. Evaluation Criteria 

The evaluation criteria used by expert 

reviewers to review and analyze BTOP 

applications are grouped into four 

categories: (1) Project Purpose; (2) 

Project Benefits; (3) Project Viability; 

and (4) Project Budget and 

Sustainability. Each application will be 

evaluated against the following 

objective criteria, and not against other 

applications. 

1. Comprehensive Community 

Infrastructure 

a. Project Purpose (20 Points) 

i. Fit with Statutory Purposes. 

Applications will be evaluated with 

respect to each of BTOP’s statutory 

purposes.57 Reviewers will consider, 

relative to each purpose, whether the 

applicant is addressing a compelling 

problem of the sort that the statute is 

intended to resolve, whether the 

applicant has offered an effective 

solution to that problem, and whether 

the proposed solution is of broad 

significance and includes developments 

that can be replicated to improve future 

projects. Additional consideration also 

will be given to applicants that address 

more than one statutory purpose and 

project category (e.g., CCI, PCC, or SBA) 

in a convincing manner. Reviewers also 

will consider the ability of the project to 

enhance broadband service for 

healthcare delivery, education, and 

children as contemplated by the 

Recovery Act.58

ii. Fit with BTOP Priorities. 

Applications will be evaluated with 

respect to each of the BTOP Priorities 

and factors set forth in Section II.B. 

Reviewers will consider the priorities 

assigned for CCI projects, and additional 

consideration will be given for projects 

that satisfy more priorities. Additional 

consideration will be given to 

applicants satisfying the factors used to 

assess whether the application meets 

Program objectives. 

iii. Potential for Job Creation. The 

application will be scored on the 

project’s potential to create jobs, 

particularly jobs created directly by the 

project. Reviewers will assess the 

methodology used to calculate job 

estimates, the number and quality of the 

jobs created, and how the project 

balances job creation with cost 

efficiency. 

iv. Recovery Act and Other 

Governmental Collaboration. Applicants 

will be evaluated on their collaboration 

with Recovery Act or other State or 

Federal development programs that 

leverage the impact of the proposed 

project. Examples include the 

Department of Energy’s Smart Grid 

Investment Program, the Department of 

Health and Human Services’ Beacon 

Community Cooperative Agreement 

Program, the Department of Housing 

and Urban Development’s Public 

Housing Capital Fund, the Department 

of Transportation’s Capital Assistance 

for High Speed Rail Corridors and 

Intercity Passenger Service program, 

and other investments where 

collaboration would lead to greater 

project efficiencies. In each case, the 

applicant must convincingly 

demonstrate that these leveraging efforts 

are substantive and meaningful. 

v. Indian Tribes and Socially and 

Economically Disadvantaged Small 

Businesses. Reviewers will grant 

consideration to applicants that are 

Indian tribes or that certify that they 

meet the statutory definition of a 

socially and economically 

disadvantaged small business concern 

(as modified by the Small Business 

Administration’s approval of NTIA’s 

request to adopt an alternative small 

business concern size standard for use 

in BTOP), or that have established 

agreements to partner or contract with 

Indian tribes or socially and 

economically disadvantaged 

businesses.59

b. Project Benefits (20 Points) 

i. Level of Need in the Proposed 

Funded Service Area. Applications will 

be scored on the level of need for the 

proposed network in the proposed 

funded service area. Reviewers will 

consider whether there are service 

providers already present in all or part 

of the area, as well as the pricing, 

coverage, and available capacity of those 

providers. Reviewers also will consider 

what proportion of the projected end 

users are located in unserved or 

underserved areas and may take into 

account any comments submitted by 

existing broadband service providers in 

response to the announcement 

described in Section V.D.3.d. of this 

NOFA in making this evaluation. 

Reviewers may consider other details 

that are pertinent to determining the 

degree of need for the project in the 

area(s) (e.g., unemployment rates or 

median income levels). In addition, 

reviewers also will consider applicants’ 

explanation of why their proposed 

project is well-suited to address the 

needs of the proposed funded service 

area(s). 

ii. Impact on the Proposed Funded 

Service Area(s). Applications will be 

scored on how great an impact they 

would have on the proposed funded 

service area(s). Reviewers will consider 

the extent to which the proposed project 

will comprehensively meet, whether 

directly or indirectly, the key broadband 

needs of the communities within the 

proposed funded service area, 

particularly the need for Middle Mile 

capacity. This should include 

consideration of services for the 

community anchor institutions in the 

area(s), and access, transport, and 

wholesale services for other broadband 

service providers. Reviewers should 

give particular weight to services 

provided to community anchor 

institutions, especially those in 

unserved and underserved areas, as well 

as any community colleges within the 

proposed funded service area, whether 

or not they are located in unserved and 

underserved areas. Reviewers may take 

into account any comments submitted 

by existing broadband service providers 

in response to the announcement 

described in Section V.D.3.d. of this 

NOFA in making the evaluation of a 

proposed funded service area as 

unserved or underserved, as applicable. 

Reviewers also should consider the 

extent to which the project will provide, 

directly or indirectly, residential and 

business broadband services within the 

proposed funded service area(s). 

iii. Network Capacity and 

Performance. Applicants will be 

evaluated on the ability of the proposed 

network to provide sufficient capacity, 

as well as scalability, to meet the 

comprehensive needs of the 

communities in the proposed funded 

service area(s). The Middle Mile 

components of the network should 

provide capacity sufficient to serve the 


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Federal Register / Vol. 75, No. 14 / Friday, January 22, 2010 / Notices 3807 

60See Recovery Act sec. 6001(b), 123 Stat. at 512– 

13 (stating the purposes of the program are to 

provide broadband access to unserved areas; to 

provide improved broadband access to underserved 

areas; to provide broadband access, education, and 

support to community anchor institutions, or 

organizations and agencies serving vulnerable 

populations, or job-creating strategic facilities 

located in State- or Federally-designated economic 

development areas; to improve access to, and use 

of, broadband service by public safety agencies; and 

to stimulate the demand for broadband, economic 

growth, and job creation). 

61See id. sec. 6001(h)(2)(C), 123 Stat. at 515. 

anticipated Last Mile networks, 

community anchor institutions, and 

public safety entities, and the number of 

end users served by them, as projected 

by the applicant, taking into 

consideration the nature of the services 

for which these institutions and end 

users are likely to seek to utilize the 

network. Applications that include Last 

Mile components also will be evaluated 

on the extent to which the advertised 

speed for the network’s highest offered 

speed tier exceeds the minimum speed 

requirement for broadband service (768 

kbps downstream and 200 kbps 

upstream). Networks with higher enduser speeds will receive greater 

consideration. Proposed networks with 

high latency will be viewed 

unfavorably. Applicants may gain 

additional consideration if the applicant 

can demonstrate a clear and affordable 

upgrade path for the network. 

iv. Affordability of Services Offered. 

Projects will be evaluated on the pricing 

of the services offered compared to 

existing broadband services in the 

proposed funded service area(s) or 

based on nationwide averages. 

Applicants should demonstrate that this 

pricing is competitive and affordable to 

their target markets. However, pricing 

levels also should be reasonable and 

market-based, so as to maximize the 

efficient use of Federal grant funds. 

v. Nondiscrimination, 

Interconnection, and Choice of Provider. 

Applications will be scored on the 

extent to which the applicant commits 

to exceeding the minimum requirements 

for interconnection and 

nondiscrimination established in 

Section V.D.3. of this NOFA. Additional 

consideration will be given for 

displaying the network’s 

nondiscrimination and interconnection 

policies in a prominent location on the 

service provider’s Web page, and 

providing notice to customers of 

changes to these policies. Additional 

consideration will be given to 

applicants that commit to offering 

wholesale access to network elements 

and project facilities at reasonable rates 

and terms. Additional consideration 

also will be given to applicants that 

commit to binding private arbitration of 

disputes concerning the awardees’ 

interconnection obligations as explained 

in Section V.D.3. of this NOFA. 

Reviewers also will consider whether 

the application proposes to construct 

infrastructure and implement a business 

plan that would allow more than one 

provider to serve end users in the 

proposed funded service area(s). 

Reviewers also may consider other 

factors to assess the degree of openness 

of the network. 

c. Project Viability (30 Points) 

i. Technical Feasibility of the 

Proposed Project. Applications will be 

scored on the comprehensiveness and 

appropriateness of the technical 

solution and the clarity, level of detail, 

coherence, and cost-effectiveness of the 

system designs. 

ii. Applicant’s Organizational 

Capability. Reviewers will assess 

whether the applicant has the 

organizational capability necessary to 

undertake and complete the project. 

Reviewers will consider the years of 

experience and expertise of the project 

management team and the past track 

record of the organization with projects 

of a similar size and scope, as well as 

the organization’s capacity and 

readiness. 

iii. Level of Community Involvement 

in the Project. Reviewers will evaluate 

linkages to unaffiliated organizations in 

the project area (from the public, nonprofit, and private sectors), particularly 

community anchor institutions and 

public safety organizations, as an 

ongoing and integral part of the project 

planning and operation. Applicants 

should demonstrate that each linkage is 

substantial and meaningful. 

d. Project Budget and Sustainability (30 

Points) 

i. Reasonableness of the Budget. 

Reviewers will evaluate the 

reasonableness of the budget based on 

its clarity, level of detail, 

comprehensiveness, appropriateness to 

the proposed technical and 

programmatic solutions, the 

reasonableness of its costs, and whether 

the allocation of funds is sufficient to 

complete the tasks outlined in the 

project plan. To the extent that a CCI 

project includes a Last Mile component, 

the cost per household or cost per 

subscriber should not exceed $10,000. 

Additional consideration will be given 

to applicants that present cost per 

household or cost per subscriber 

proposals below the $10,000 maximum 

based on a sliding scale. 

ii. Sustainability of the Project. 

Applicants must convincingly 

demonstrate the ability of the project to 

be sustained beyond the funding period. 

Reviewers will consider business plans, 

market projections, third-party funding 

commitments, and other data as may be 

appropriate to the nature of the 

applicant and the proposed project. 

iii. Leverage of Outside Resources. 

Reviewers will consider whether the 

applicant has demonstrated the ability 

to provide, from non-Federal sources, 

funds required to meet or exceed the 20 

percent matching funds requirement 

unless a waiver of that requirement has 

been requested. Additional 

consideration will be given to 

applicants that provide a cost match of 

30 percent or greater of the total eligible 

costs of a project. Reviewers also will 

evaluate whether the applicant has 

tailored the proportion of Federal 

funding to the level that is necessary to 

make the project economically feasible 

and sustainable. Reviewers will give 

additional consideration to proposals 

that provide cash matches. For purposes 

of this evaluation, applicants that have 

received a full or partial waiver of the 

cost-matching requirement will be 

treated as having provided a 20 percent 

non-cash match. 

2. BTOP Public Computer Center 

Projects 

a. Project Purpose (20 Points) 

i. Fit with Statutory Purposes. 

Applications will be evaluated with 

respect to each of BTOP’s statutory 

purposes.60 Reviewers will consider, 

relative to each purpose, whether the 

applicant is addressing a compelling 

problem of the sort that the statute is 

intended to resolve, whether the 

applicant has offered an effective 

solution to that problem, and whether 

the proposed solution is of broad 

significance and includes developments 

that can be replicated to improve future 

projects. Additional consideration also 

will be given to applicants that address 

more than one statutory purpose and 

project category (e.g., CCI, PCC, or SBA) 

in a convincing manner. Reviewers also 

will consider the ability of the project to 

enhance broadband service for 

healthcare delivery, education, and 

children as contemplated by the 

Recovery Act.61

ii. Potential for Job Creation. The 

application will be scored on the 

project’s potential to create jobs, 

particularly for jobs created directly by 

the project. Reviewers will assess the 

methodology used to calculate job 

estimates, the number and quality of the 

jobs created, and how the project 

balances job creation with cost 

efficiency. 


erowe on DSK5CLS3C1PROD with NOTICES2
3808 Federal Register / Vol. 75, No. 14 / Friday, January 22, 2010 / Notices 

62See Recovery Act sec. 6001(b), 123 Stat. at 512– 

13 (stating the purposes of the program are to 

provide broadband access to unserved areas; to 

provide improved broadband access to underserved 

areas; to provide broadband access, education, and 

support to community anchor institutions, or 

organizations and agencies serving vulnerable 

populations, or job-creating strategic facilities 

located in State- or Federally-designated economic 

development areas; to improve access to, and use 

of, broadband service by public safety agencies; and 

to stimulate the demand for broadband, economic 

growth, and job creation). 

63See id. sec. 6001(h)(2)(C), 123 Stat. at 515. 

iii. Recovery Act and Other 

Governmental Collaboration. Applicants 

will be evaluated on their collaboration 

with Recovery Act or other State or 

Federal development programs that 

leverage the impact of the proposed 

project. Examples include the 

Department of Energy’s Smart Grid 

Investment Program, the Department of 

Housing and Urban Development’s 

Public Housing Capital Fund, and other 

investments where collaboration would 

lead to greater project efficiencies. In 

each case, the applicant must 

convincingly demonstrate that these 

leveraging efforts are substantive and 

meaningful. 

iv. Indian Tribes and Socially and 

Economically Disadvantaged Small 

Businesses. Reviewers will grant 

consideration to applicants that are 

Indian tribes or certify that they meet 

the statutory definition of a socially and 

economically disadvantaged small 

business concern (as modified by the 

Small Business Administration’s 

approval of NTIA’s request to adopt an 

alternative small business concern size 

standard for use in BTOP), or that have 

established agreements in principle to 

partner or contract with Indian tribes or 

such socially and economically 

disadvantaged businesses. 

b. Project Benefits (20 Points) 

i. Availability to the Public. 

Applications will be scored on the 

availability of the computer center to 

the public. Reviewers will consider the 

capacity of the computer center, its 

hours of availability, any membership or 

usage fees charged, restrictions on 

usage, the proportionality of the 

computer center’s capacity and hours of 

availability to the population the 

applicant proposes to serve, public 

outreach, and the computer center’s 

accessibility to persons with disabilities, 

accounting for both the physical 

accessibility of the facility and the 

accessibility of the computer equipment 

and software. 

ii. Training and Educational 

Programs Offered. Applicants will be 

scored on the availability, accessibility, 

and quality of training and educational 

programs offered through the computer 

center. Reviewers will consider the 

degree to which the programs meet the 

documented needs of the community. 

iii. Availability and Qualifications of 

Consulting and Teaching Staff. 

Applications will be evaluated on the 

strength of the consulting and teaching 

staff at the computer center. Reviewers 

will consider the qualifications and 

training required of such staff as well as 

whether the number of available staff is 

sufficient for the capacity of the 

computer center. 

iv. Projects in Community Colleges. 

Reviewers will grant consideration to 

applicants that will create computer 

centers in community colleges, 

especially where the applicant can 

demonstrate that such computer centers 

will deliver substantive benefits to the 

college’s core mission. 

c. Project Viability (30 Points) 

i. Technical Feasibility of the 

Proposed Project. Applications will be 

scored on the comprehensiveness and 

appropriateness of the technical 

solution and the clarity, level of detail, 

and coherence of the system designs. 

ii. Applicant’s Organizational 

Capability. Reviewers will assess 

whether the applicant has the 

organizational capability necessary to 

undertake and complete the project. 

Reviewers will consider the years of 

experience and expertise of the project 

management team, and the past track 

record of the organization with projects 

of a similar size and scope, as well as 

the organization’s capacity and 

readiness. 

iii. Level of Community Involvement 

in the Project. Reviewers will evaluate 

linkages to unaffiliated organizations in 

the project area (from the public, 

nonprofit, and private sectors), 

particularly community anchor 

institutions and public safety 

organizations, as an ongoing and 

integral part of the project planning and 

operation. Applicants should 

demonstrate that each linkage is 

substantial and meaningful. 

d. Project Budget and Sustainability (30 

Points) 

i. Reasonableness of the Budget. 

Reviewers will evaluate the 

reasonableness of the budget based on 

its clarity, level of detail, 

comprehensiveness, appropriateness to 

the proposed technical and 

programmatic solutions, the 

reasonableness of its costs, and whether 

the allocation of funds is sufficient to 

complete the tasks outlined in the 

project plan. 

ii. Sustainability of the Project. 

Applicants must convincingly 

demonstrate the ability of the project to 

be sustained beyond the funding period. 

Reviewers will consider past 

performance of the applicant, 

community and institutional support for 

the project, third-party funding 

commitments, and other data as may be 

appropriate to the nature of the 

applicant and the proposed project. 

iii. Leverage of Outside Resources. 

Reviewers will consider whether the 

applicant has demonstrated the ability 

to provide, from non-Federal sources, 

funds required to meet or exceed the 20 

percent matching funds requirement 

unless a waiver of that requirement has 

been requested. Reviewers also will give 

additional consideration to proposals 

that provide cash matches. For purposes 

of this evaluation, applicants that have 

received a full or partial waiver of the 

cost-matching requirement will be 

treated as having provided a 20 percent 

non-cash match. 

3. BTOP Sustainable Broadband 

Adoption Projects 

a. Project Purpose (20 Points) 

i. Fit with Statutory Purposes. 

Applications will be evaluated with 

respect to each of BTOP’s statutory 

purposes.62 Reviewers will consider, 

relative to each purpose, whether the 

applicant is addressing a compelling 

problem of the sort that the statute is 

intended to resolve, whether the 

applicant has offered an effective 

solution to that problem, and whether 

the proposed solution is of broad 

significance and includes developments 

that can be replicated to improve future 

projects. Additional consideration also 

will be given to applicants that address 

more than one statutory purpose and 

project category (e.g., CCI, PCC, or SBA) 

in a convincing manner. Reviewers will 

also consider the ability of the project to 

enhance broadband service for 

healthcare delivery, education, and 

children as contemplated by the 

Recovery Act.63

ii. Potential for Job Creation. The 

application will be scored on the 

project’s potential to create jobs, 

particularly jobs created directly by the 

project. Reviewers will assess the 

methodology used to calculate job 

estimates, the number and quality of the 

jobs created, and how the project 

balances job creation with cost 

efficiency. 

iii. Recovery Act and Other 

Governmental Collaboration. Applicants 

will be evaluated on their collaboration 

with Recovery Act or other State or 

Federal development programs that 

leverage the impact of the proposed 


erowe on DSK5CLS3C1PROD with NOTICES2
Federal Register / Vol. 75, No. 14 / Friday, January 22, 2010 / Notices 3809 

64The DOC Pre-Award Notification was 

published in the Federal Register on February 11, 

2008. 73 FR 7696. 

project. Examples include the 

Department of Energy’s Smart Grid 

Investment Program, the Department of 

Housing and Urban Development’s 

Public Housing Capital Fund, the 

Department of Transportation’s Capital 

Assistance for High Speed Rail 

Corridors and Intercity Passenger 

Service program, and other investments 

where collaboration would lead to 

greater project efficiencies. In each case, 

the applicant must convincingly 

demonstrate that these leveraging efforts 

are substantive and meaningful. 

iv. Indian Tribes and Socially and 

Economically Disadvantaged Small 

Businesses. Reviewers will grant 

consideration to applicants that are 

Indian tribes or that certify that they 

meet the statutory definition of a 

socially and economically 

disadvantaged small business concern 

(as modified by the Small Business 

Administration’s approval of NTIA’s 

request to adopt an alternative small 

business concern size standard for use 

in BTOP), or that have established 

agreements in principle to partner or 

contract with Indian tribes or such 

socially and economically 

disadvantaged businesses. 

b. Project Benefits (20 Points) 

i. Number of New Subscribers. 

Applications will be scored on the 

number of new broadband subscribers 

and other regular users the project will 

generate. Reviewers will take into 

consideration both the overall number 

of new subscribers and users and the 

proportion that these new subscribers 

and users represent of the number of 

non-subscribers and non-users in the 

relevant area. Reviewers also will 

consider the applicant’s plan to 

effectively track and measure the 

benefits generated by the project. 

ii. Cost Per New User. Applications 

will be evaluated on the costeffectiveness of the program. Reviewers 

will consider the cost per projected new 

subscriber or other regular user, taking 

into account the applicant’s explanation 

of why the approach selected is a costeffective approach given the particular 

circumstances of the project. 

iii. Innovation. Applications will be 

evaluated on the degree to which the 

project demonstrates replicable new 

ideas, approaches, and methods to 

encourage sustainable broadband 

adoption. 

iv. Support for Vulnerable 

Populations. Reviewers will evaluate 

applications on their level of support for 

vulnerable populations. In this regard, 

reviewers will assess both the numbers 

of people in vulnerable populations 

likely to be affected by the project as 

well as the steps that the applicant 

plans to take to engage and address the 

specific needs of those populations. 

c. Project Viability (30 Points) 

i. Operational Feasibility of the 

Proposed Project. Reviewers will assess 

the operational details of the project. 

Applicants will be scored on the clarity 

and detail of their project plan and how 

convincing the rationale behind the 

plan is. 

ii. Applicant’s Organizational 

Capability. Reviewers will assess 

whether the applicant has the 

organizational capability necessary to 

undertake and complete the project. 

Reviewers will consider the years of 

experience and expertise of the project 

management team and the past track 

record of the organization with projects 

of a similar size and scope, as well as 

the organization’s capacity and 

readiness. 

iii. Level of Community Involvement 

in the Project. Reviewers will evaluate 

linkages to unaffiliated organizations in 

the project area (from the public, nonprofit, and private sectors), particularly 

community anchor institutions and 

public safety organizations, as an 

ongoing and integral part of the project 

planning and operation. Applicants 

should demonstrate that each linkage is 

substantial and meaningful. 

d. Project Budget and Sustainability (30 

Points) 

i. Reasonableness of the Budget. 

Reviewers will evaluate the 

reasonableness of the budget based on 

its clarity, level of detail, 

comprehensiveness, appropriateness to 

the proposed technical and 

programmatic solutions, the 

reasonableness of its costs, and whether 

the allocation of funds is sufficient to 

complete the tasks outlined in the 

project plan. 

ii. Sustainability of the Project 

Impact. Reviewers will consider 

whether the increases in broadband 

adoption rates in the project area caused 

by the project will be sustained beyond 

the conclusion of the project. 

iii. Leverage of Outside Resources. 

Reviewers will consider whether the 

applicant has demonstrated the ability 

to provide, from non-Federal sources, 

funds required to meet or exceed the 20 

percent matching funds requirement 

unless a waiver of that requirement has 

been requested. Reviewers also will give 

additional consideration to proposals 

that provide cash matches. For purposes 

of this evaluation, applicants that have 

received a full or partial waiver of the 

cost-matching requirement will be 

treated as having provided a 20 percent 

non-cash match. 

VIII. Anticipated Announcement and 

Award Dates 

NTIA intends to announce BTOP 

Round 2 awards on a rolling basis 

starting in June 2010. All grants will be 

awarded by September 30, 2010. 

IX. Award Administration Information 

A. Award Notices 

Applicants will be notified in writing 

by the Department of Commerce’s (DOC) 

Grants Officer if their application is 

selected for an award. The DOC’s Grants 

Officer notification will come from 

either the National Institute for 

Standards and Technology (NIST) or the 

National Oceanic and Atmospheric 

Administration (NOAA), both of which 

function as Grants Offices for the BTOP 

Program. If the application is selected 

for funding, the DOC’s Grants Officer 

will issue the grant award (Form CD– 

450), which is the authorizing financial 

assistance award document, either 

electronically if from NOAA or in 

writing if from NIST. By signing the 

Form CD–450, the awardee agrees to 

comply with all award provisions, 

terms, and conditions. The awardee 

must sign and return the Form CD–450 

to NIST or submit the executed form to 

NOAA by electronic means without 

modification within 30 days of receipt. 

If an applicant is awarded funding, 

neither the DOC nor NTIA is under any 

obligation to provide any additional 

future funding in connection with that 

award or to make any future award(s). 

Amendment of an award or to extend 

the period of performance is at the 

discretion of the DOC and of NTIA. 

B. Administrative Requirements 

Administrative and national policy 

requirements for BTOP grant funding, 

inter alia, are contained in the PreAward Notification Requirements for 

Grants and Cooperative Agreements 

(DOC Pre-Award Notification),64 as 

amended. All BTOP applicants are 

required to comply with all applicable 

provisions set forth in the DOC PreAward Notification. 

C. Award Terms and Conditions 

1. Scope 

Awardees and subrecipients are 

required to comply with the obligations 

set forth in the Recovery Act and the 

requirements established herein. Any 

obligation that applies to the awardee 


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65Note that certain equipment is exempt from 

obligations to the Federal government and may be 

used and sold at the awardee’s will. See 15 CFR 

14.34(g), 24.32. 66See, e.g., 15 CFR 14.32–14.34; 15 CFR 24.31– 

24.32. 

67Note that Section 1515 of the Recovery Act also 

authorizes the Inspector General to examine records 

and interview officers and employees of the grantee 

and other entities regarding the award of funds. See 

Recovery Act sec. 1515, 123 Stat. at 289. 

68See Department of Commerce Pre-Award 

Notification (Feb. 11, 2008) available at http://oam.

ocs.doc.gov/docs/GRANTS/GCA_manual.pdf. 

69See Department of Commerce Financial 

Assistance Standard Terms and Conditions (Mar. 8, 

2009) available at http://oamweb.osec.doc.gov/

docs/GRANTS/DOC%2OSTCsMAR08Rev.pdf. 

70See U.S. Department of Commerce American 

Recovery and Reinvestment Act Award Terms (Apr. 

9, 2009) available at http://oam..ocs..doc.gov/docs/ 

ARRA%20DOC%20Award%20Terms%20Final%

205-20-09PDF.doc.pdf. 

71See, e.g., Recovery Act sec. 1512(c), 123 Stat. 

at 287; 2 CFR part 176; OMB, Interim Final 

Guidance for Federal Financial Assistance, 74 FR 

18449 (Apr. 23, 2009); Implementing Guidance for 

Reports on Use of Funds Pursuant to the American 

Recovery and Reinvestment Act of 2009 (OMB M– 

09–21 June 22, 2009), available at http:// 

www.whitehouse.gov/omb/assets/ 

memoranda_fy2009/m09-21.pdf. 

72See infra Section X.V.1. 

shall extend for the life of the awardfunded facilities. 

2. Sale or Lease of Project Assets 

a. Restriction on Assets 

The sale or lease of any portion of the 

award-funded broadband facilities or 

equipment during the life of the 

facilities or equipment is prohibited, 

except as provided herein. Nothing in 

this section is meant to limit CCI 

awardees from leasing facilities to 

another service provider for the 

provision of broadband services, nor is 

this section meant to restrict a transfer 

of control of the awardee.65 Awardees 

are required to comply with all 

applicable regulations regarding the 

disposition of real property and 

equipment.66

b. Petition for Waiver 

NTIA will consider a petition for 

waiver of the above restriction if: (a) The 

transaction is for adequate 

consideration; (b) the purchaser or 

lessee agrees to fulfill the terms and 

conditions relating to the project after 

such sale or lease; and (c) the 

transaction would be in the best 

interests of those served by the project. 

The petition for waiver may be 

submitted at any time during the life of 

the award-funded facilities and 

equipment, and it must include 

supporting documentation and 

justification regarding why the petition 

should be granted. 

3. Access to Records for Audits, Site 

Visits, Monitoring, and Law 

Enforcement Purposes 

The Inspector General of the DOC, or 

any of his or her duly authorized 

representatives, and NTIA 

representatives, or any of their duly 

authorized representatives, shall have 

access to and the right to inspect the 

broadband system and any other 

property funded by the grant, any and 

all books, records, accounts, invoices, 

contracts, leases, payrolls, time sheets, 

canceled checks, statements, and other 

documents, papers, and records of the 

parties to a grant, including their 

subsidiaries, if any, whether written, 

printed, recorded, produced, or 

reproduced by any electronic, 

mechanical, magnetic, or other process 

or medium, in order to make audits, 

inspections, site visits, excerpts, 

transcripts, copies, or other 

examinations as authorized by law. An 

audit of an award may be conducted at 

any time.67

4. Broadband Data Collection 

All CCI awardees that offer Internet 

access service to the public for a fee 

must agree to participate in the State 

Broadband Data and Development Grant 

Program pursuant to the BDIA and 

Section 6001(l) of the Recovery Act. 

5. Certifications 

a. The applicant must certify that he 

or she is the duly Authorized 

Organization Representative (AOR) and 

has been authorized to submit the 

application on its behalf. 

b. The AOR must certify that he or she 

has examined the application, that all of 

the information and responses in the 

application, including certifications, 

and forms submitted, all of which are 

part of the grant application, are 

material representations of fact and are 

true and correct to the best of his or her 

knowledge; that the entity(ies) that is 

requesting grant funding pursuant to 

this application as well as any 

subgrantees and subcontractors will 

comply with the terms, conditions, 

purposes, and Federal requirements of 

the grant program; that no kickbacks 

were paid to anyone; and that false, 

fictitious, or fraudulent statements or 

claims on this application are grounds 

for denial or termination of a grant 

award, and/or possible punishment by a 

fine or imprisonment as provided in 18 

U.S.C. 1001 and civil violations of the 

False Claims Act. 

c. The AOR must certify that the 

entity(ies) he or she represents have and 

will comply with all applicable Federal, 

State, and local laws, rules, regulations, 

ordinances, codes, orders, and 

programmatic rules and requirements 

relating to the project. The AOR must 

acknowledge that failure to do so may 

result in rejection or deobligation of the 

grant or loan award. The AOR must 

acknowledge that failure to comply with 

all Federal and program rules could 

result in civil or criminal prosecution by 

the appropriate law enforcement 

authorities. 

d. The AOR must certify that the 

entity(ies) he or she represents has and 

will comply with all applicable 

administrative and Federal statutory, 

regulatory, and policy requirements set 

forth in the Department of Commerce 

Pre-Award Notification; 68 the DOC 

Financial Assistance Standard Terms 

and Conditions; 69 the DOC American 

Recovery and Reinvestment Act Award 

Terms (April 9, 2009); 70 and any 

Special Award Terms and Conditions 

that are included by the Grants Officer 

in the award. 

e. The AOR must certify that any 

funds awarded to the entity(ies) he or 

she represents as a result of this 

application will not: (a) Result in any 

unjust enrichment as a result of support 

for non-recurring costs through another 

Federal program for service in the area 

that would be served by the project 

described in this application; (b) 

duplicate any funds such entity(ies) 

receive under Federal universal service 

support programs administered by the 

Universal Service Administration 

Corporation (USAC); or (c) duplicate 

any funds such entity(ies) receive 

through grant or loan programs 

administered by RUS. 

f. The AOR must certify that the 

entity(ies) he or she represent has 

secured access to pay at least 20 percent 

of the total project cost or has petitioned 

the Assistant Secretary for a waiver of 

the matching requirement. 

D. Reporting Requirements 

1. General Recovery Act Requirements 

Any grant awarded under this NOFA 

shall be subject to the applicable 

statutes and regulations regarding 

reporting on Recovery Act funds.71 If 

Recovery Act funds are combined with 

other funds to fund or complete projects 

and activities, Recovery Act funds must 

be accounted for separately from other 

funds. Recipients of funds under this 

NOFA also must comply with the 

accounting requirements as established 

or referred to in this NOFA. For a 

complete list of the reporting 

requirements, see http:// 

www.FederalReporting.gov.72


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73See id. sec. 6001(i)(1)–(2), 123 Stat. at 515. 

74 Id. sec. 6001(i)(1), 123 Stat. at 515. 

75See supra Section V.D. 

76Recovery Act sec. 6001(d)(3), 123 Stat. at 513. 77 DOC Grants Manual, ch. 11, sec. B. 

2. BTOP-Specific Reporting 

Requirements 

In addition to the general Recovery 

Act reporting requirements, BTOP 

award recipients also must report to 

NTIA on the information requested 

below.73 The information requested will 

vary depending on the type of project 

being funded. Pursuant to the Recovery 

Act, NTIA will make these reports 

available to the public.74

a. All BTOP Award Recipients 

All BTOP award recipients must 

report on: 

i. The progress in achieving the 

project goals, objectives, and milestones 

as set forth in their applications; 

ii. Expenditure of grant funds and the 

amount of remaining grant funds; and 

iii. The amount of non-Federal 

investment being added to complete the 

project. 

If a recipient is permitted by NTIA to 

complete its project after two years, then 

it must specifically state in the 

applicable quarter when it has met 67 

percent of its milestones and received 

67 percent of its award funds.75

Reaching these thresholds will indicate 

that the recipient has ‘‘substantially 

completed’’ its project consistent with 

the Recovery Act.76

b. Comprehensive Community 

Infrastructure Award Recipients 

Recipients receiving CCI grants must 

report on the following: 

i. The terms of any interconnection 

agreements entered into during the 

reporting period; 

ii. Any traffic exchange relationships 

(e.g., peering) and terms; 

iii. Any broadband equipment 

purchases; 

iv. The total and peak utilization of 

access links; 

v. The total and peak utilization of 

interconnection links to other networks; 

vi. Internet protocol address 

utilization and IPv6 implementation; 

vii. Any changes or updates to 

network management practices; 

viii. Any average end-user and Middle 

Mile megabit per second increases; 

ix. The total market potential for 

households, businesses, and community 

anchor institutions in the area served; 

x. The number of households and 

businesses passed, subscribing to 

broadband service, subscribing to new 

broadband service, and receiving 

improved access; 

xi. The number and type of 

community anchor institutions passed, 

subscribing to broadband service, 

subscribing to new broadband service, 

and receiving improved access; 

xii. The advertised and averaged 

broadband speeds; 

xiii. The number of existing network 

miles deployed, new network miles 

deployed, and new network miles 

leased; 

xiv. For projects with a Middle Mile 

component, the ‘‘cost per mile,’’ ‘‘cost 

per household,’’ and, if applicable, ‘‘cost 

per tower’’ to offer broadband service; 

xv. For projects with a Last Mile 

component, the ‘‘cost per household’’ 

and ‘‘cost per subscriber’’ to offer 

broadband service; and 

xvi. The price of the broadband 

services. 

c. Public Computer Center Award 

Recipients 

Recipients receiving PCC grants must 

report on the following: 

i. The number of new and upgraded 

public computer centers; 

ii. The number of new and upgraded 

workstations available to the public; 

iii. The total hours of operation per 

week that the public computer center(s) 

is open; 

iv. The speed of broadband to the 

public computer center(s); 

v. The primary uses of the public 

computer center(s); 

vi. The average number of users per 

week in the public computer center(s); 

vii. The total hours per week of 

training provided at the public 

computer center(s); 

viii. The number and cost of any 

broadband equipment deployed; and 

ix. The total project cost per 

workstation. 

d. Sustainable Broadband Adoption 

Award Recipients 

Recipients receiving SBA grants must 

report on the following: 

i. The technology being fostered; 

ii. Efforts to aggregate demand for 

each location, including the role of the 

local community; 

iii. The increase in the number of 

households, businesses, and community 

anchor institutions subscribing to 

broadband service, and the methodology 

used to measure the increase; 

iv. The number and type of awareness 

campaigns provided, including the total 

number of individuals reached; 

v. The number and cost of any 

broadband customer premises 

equipment or end-user devices 

deployed; 

vi. The total market potential for 

households, businesses, and community 

anchor institutions in the area served; 

and 

vii. Other program elements as 

proposed by the applicant and agreed to 

by NTIA. 

3. Reporting Deadlines 

All reports are due ten days after the 

quarter in which the award was issued 

ends and, unless otherwise noted, each 

quarter thereafter until a final report is 

made at the end of three years or sooner 

depending on when the project is 

completed. The final report should 

summarize the recipient’s quarterly 

filings and State whether the project’s 

goals have been satisfied. Pursuant to 

OMB Guidelines, Recovery Act reports 

should be submitted electronically to 

http://www.FederalReporting.gov. The 

BTOP-specific reports should be sent to 

NTIA. 

If the recipient fails to submit an 

acceptable quarterly report or audited 

financial statement within the 

timeframe designated in the grant 

award, NTIA may take appropriate 

actions, including suspension of 

payments, suspension of award, or 

termination.77 Additional information 

regarding reporting requirements will be 

specified at the time the award is 

issued. 

X. Other Information 

A. Funding Rounds 

This is the second of two announced 

funding rounds. NTIA does not 

anticipate further funding rounds, 

although it reserves the right to release 

a subsequent NOFA to ensure that all 

BTOP funds are awarded by September 

30, 2010. 

B. Discretionary Awards 

The government is not obligated to 

make any award as a result of this 

announcement, and will fund only 

projects that are deemed likely to 

achieve the Program’s goals and for 

which funds are available. 

C. Third Party Beneficiaries 

BTOP is a discretionary grant program 

that is not intended to and does not 

create any rights enforceable by third 

party beneficiaries, except subrecipients or subcontractors. 

D. Limitation on Expenditures 

The Recovery Act imposes an 

additional limitation on the use of funds 

expended or obligated from 

appropriations made pursuant to its 

provisions. Specifically, for purposes of 

this NOFA, funds appropriated or 

otherwise made available under the 

Recovery Act may not be used by any 

State or local government, or any private 


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78 Id. sec. 1604, 123 Stat. at 303. 

79 In addition, there are documents relating to 

NEPA and NHPA requirements that have been 

developed specifically for BTOP that are outlined 

more fully in the BTOP Grant Guidance. 

80Recovery Act sec. 1606, 123 Stat. at 303. 

81See OMB, Interim Final Guidance for Federal 

Financial Assistance, 74 FR 18449. 

82See Recovery Act sec. 6001(i)(5), 123 Stat. at 

515. 

83 60 FR 66491 (Dec. 22, 1995). 

entity, for any casino or other gambling 

establishment, aquarium, zoo, golf 

course, or swimming pool.78

E. Recovery Act Logo 

All projects that are funded by the 

Recovery Act shall display signage that 

features the Primary Emblem 

throughout the construction phase. The 

signage should be displayed in a 

prominent location on site. Some 

exclusions may apply. The Primary 

Emblem should not be displayed at a 

size less than six inches in diameter. 

F. Environmental and National Historic 

Preservation Requirements 

Awarding agencies are required to 

analyze the potential environmental 

impacts, as required by the National 

Environmental Protection Act (NEPA) 

and the National Historic Preservation 

Act (NHPA), for applicant proposals and 

awardee projects seeking Recovery Act 

funding.79 All CCI applicants and PCC 

applicants with projects containing 

construction and/or ground disturbing 

activities are required to complete the 

Environmental Questionnaire in the 

application and to submit all other 

required environmental documentation 

as necessary. All PCC applicants with 

projects that do not contain construction 

and/or ground disturbing activities and 

all SBA applicants are required to 

complete the DOC Environmental 

Checklist in the application. 

It is the applicant’s responsibility to 

obtain all necessary Federal, State, and 

local governmental permits and 

approvals necessary for the proposed 

work to be conducted. Applicants are 

expected to design their projects so that 

they minimize the potential for adverse 

impacts on the environment. Applicants 

also will be required to cooperate with 

NTIA in identifying feasible measures to 

reduce or avoid any identified adverse 

environmental impacts of their 

proposed projects. The failure to do so 

may be grounds for not making an 

award. Applications will be reviewed to 

ensure that they contain sufficient 

information to allow agency staff to 

conduct a NEPA analysis so that 

appropriate NEPA documentation can 

be submitted to NTIA, along with the 

recommendation for funding of the 

selected applications. 

If additional information is required 

after an application is accepted for 

funding, funds can be withheld by NTIA 

under a special award condition 

requiring the awardee to submit 

additional environmental compliance 

information sufficient for the agency to 

make an assessment of any impacts that 

a project may have on the environment. 

G. Davis-Bacon Wage Requirements 

Pursuant to Section 1606 of the 

Recovery Act, any project using 

Recovery Act funds requires the 

payment of not less than the prevailing 

wages ‘‘at rates not less than those 

prevailing on projects of a character 

similar in the locality as determined by 

the Secretary of Labor,’’ in accordance 

with 40 U.S.C. 3142(b), for ‘‘all laborers 

and mechanics employed by contractors 

and subcontractors on projects funded 

directly by or assisted in whole or in 

part by and through the Federal 

Government.’’ 80 With respect to the 

labor standards specified in this section, 

the Secretary of Labor shall have the 

authority and functions set forth in 

Reorganization Plan Numbered 14 of 

1950 (64 Stat. 1267; 5 U.S.C. App.) and 

Section 3145 of Title 40, United States 

Code. 

H. Financial and Audit Requirements 

To maximize the transparency and 

accountability of funds authorized 

under the Recovery Act, all applicants 

are required to comply with the 

applicable regulations set forth in 

OMB’s Interim Final Guidance for 

Federal Financial Assistance.81

Recipients that expend $500,000 or 

more of Federal funds during their fiscal 

year are required to submit an 

organization-wide financial and 

compliance audit report. The audit must 

be performed in accordance with the 

U.S. Government Accountability 

Office’s Government Auditing 

Standards, located at http:// 

www.gao.gov/govaud/ybk01.htm, and 

OMB Circular A–133, Audits of States, 

Local Governments, and Nonprofit 

Organizations, located at http:// 

www.whitehouse.gov/omb/circulars/ 

a133/a133.html . For-profit awardees 

must comply with the Program specific 

audit requirements set forth in OMB 

Circular A–133, Subpart B, § __.235. 

Awardees are responsible for ensuring 

that sub-recipient audit reports are 

received and for resolving any audit 

findings. 

I. Deobligation 

NTIA reserves the right to deobligate 

awards made under this NOFA to 

recipients that demonstrate an 

insufficient level of performance, or 

wasteful or fraudulent spending, and to 

award these funds competitively to new 

or existing applicants. 

J. Confidentiality of Applicant 

Information 

Applicants are encouraged to identify 

and label any confidential and 

proprietary information contained in 

their applications. NTIA will protect 

confidential and proprietary 

information from public disclosure to 

the fullest extent authorized by 

applicable law, including the Freedom 

of Information Act, as amended (5 

U.S.C. 552), the Trade Secrets Act, as 

amended (18 U.S.C. 1905), and the 

Economic Espionage Act of 1996 (18 

U.S.C. 1831 et seq.). Applicants should 

be aware, however, that the Recovery 

Act requires substantial transparency. 

For example, NTIA is required to make 

publicly available on the Internet a list 

of each entity that has applied for a 

grant, a description of each application, 

the status of each application, the name 

of each entity receiving funds, the 

purpose for which the entity is receiving 

the funds, each quarterly report, and 

other information regarding awardees.82

K. Policy on Sectarian Activities 

NTIA encourages applications from 

faith-based organizations. On December 

22, 1995, NTIA issued a Notice in the 

Federal Register on its policy with 

regard to sectarian activities. Under 

NTIA’s policy, while religious activities 

cannot be the essential thrust of a grant, 

an application will be eligible for a grant 

under the Program where sectarian 

activities are only incidental or 

attenuated to the overall project purpose 

for which funding is requested.83

L. Disposition of Unsuccessful 

Applications 

Applications accepted for review for 

BTOP will be retained for two years, 

after which they will be destroyed. 

M. State Certifications 

With respect to funds made available 

under the Recovery Act to State or local 

governments for infrastructure 

investments, the governor, mayor, or 

other chief executive, as appropriate, 

must certify that the infrastructure 

investment has received the full review 

and vetting required by law and that the 

chief executive accepts responsibility 

that the infrastructure investment is an 

appropriate use of taxpayer dollars. This 

certification must include a description 

of the investment, the estimated total 

cost, and the amount of funds to be 


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84See Recovery Act sections 1511, 1526, 123 Stat. 

at 287, 293. 

85 Id. sec. 1605, 123 Stat. at 303. 

86See 74 FR 31402 (July 1, 2009). 

87See 2 CFR part 176. 

used, and must be posted on the 

recipient’s Web site and linked to 

http://www.recovery.gov. A State or 

local agency may not receive 

infrastructure investment funding from 

funds made available under the 

Recovery Act unless this certification is 

made and posted.84

N. Waiver Authority 

It is the general intent of NTIA not to 

waive any of the provisions set forth in 

this NOFA. However, under 

extraordinary circumstances and when 

it is in the best interest of the Federal 

government, NTIA, upon its own 

initiative or when requested by an 

applicant, may waive any of the 

provisions in this NOFA. Waivers may 

only be granted for requirements that 

are discretionary and not mandated by 

statute or other applicable law. Any 

request for a waiver must set forth the 

extraordinary circumstances for the 

request and be submitted with the 

application. 

With respect to requests for waiver of 

Section VI.E. (filing instructions), 

further information regarding the 

procedures for seeking such waivers 

will be made available in the Grant 

Guidance. 

O. Compliance With Applicable Laws 

Any recipient of funds under this 

NOFA shall be required to comply with 

all applicable Federal and State laws, 

including but not limited to: (i) The 

nondiscrimination and equal 

employment opportunity requirements 

of Title VI of the Civil Rights Act of 

1964, as amended (42 U.S.C. 2000e et 

seq., 7 CFR pt. 15); (ii) Section 504 of 

the Rehabilitation Act (29 U.S.C. 794 et 

seq.; 7 CFR part 15b); (iii) the Age 

Discrimination Act of 1975, as amended 

(42 U.S.C. 6101 et seq.; 45 CFR part 90); 

(iv) the Architectural Barriers Act of 

1968, as amended (42 U.S.C. 4151 et 

seq.); (v) the Uniform Federal 

Accessibility Standards (UFAS) 

(Appendix A to 41 CFR subpart 101– 

19.6); and (vi) the Council on 

Environmental Quality Regulations for 

Implementing the Procedural Provisions 

of NEPA, and certain related Federal 

environmental laws, statutes, 

regulations, and Executive Orders found 

in 7 CFR part 1794. 

P. Communications Laws 

Awardees, and in particular, CCI 

awardees, will be required to comply 

with all applicable Federal and State 

communications laws and regulations as 

applicable, including, for example, the 

Communications Act of 1934, as 

amended (47 U.S.C. 151 et seq.); the 

Telecommunications Act of 1996, as 

amended (Pub. L. 104–104, 110 Stat. 56 

(1996)); and the Communications 

Assistance for Law Enforcement Act (47 

U.S.C. 1001 et seq.) (CALEA). For 

further information, see http:// 

www.fcc.gov. 

Q. Buy American Notice 

1. General Prohibition and Waiver 

None of the funds appropriated or 

otherwise made available by the 

Recovery Act may be used for the 

construction, alteration, maintenance, or 

repair of a public building or public 

work (as such terms are defined in 2 

CFR 176.140) unless all of the iron, 

steel, and manufacturing goods used in 

the project are produced in the United 

States.85 On July 1, 2009, the 

Department of Commerce published a 

notice in the Federal Register stating 

that the Secretary of Commerce had 

determined that applying the Buy 

American provision for the use of 

certain broadband equipment in public 

BTOP projects would be inconsistent 

with the public interest.86

As explained below, to the extent that 

an applicant wishes to use broadband 

equipment or goods that are not covered 

by the Secretary’s waiver, it may seek an 

additional waiver on a case-by-case 

basis as part of its application for 

Recovery Act funds. 

2. OMB Buy American Notice 

Requirement 

Pursuant to OMB guidance on the 

Recovery Act,87 NTIA is required to 

provide notice as prescribed in 2 CFR 

176.170. 

§ 176.170 Notice of Required Use of 

American Iron, Steel, and Manufactured 

Goods (covered under International 

Agreements)—Section 1605 of the 

American Recovery and Reinvestment Act 

of 2009. 

When requesting applications or 

proposals for Recovery Act programs or 

activities that may involve construction, 

alteration, maintenance, or repair of a 

public building or public work, and 

involve iron, steel, and/or manufactured 

goods covered under international 

agreements, the agency shall use the 

notice described in the following 

paragraphs in the solicitation: 

(a) Definitions. Designated country 

iron, steel, and/or manufactured goods, 

foreign iron, steel, and/or manufactured 

goods, manufactured goods, public 

building and public work, and steel, as 

used in this provision, are defined in 2 

CFR 176.160(a). 

(b) Requests for determinations of 

inapplicability. A prospective applicant 

requesting a determination regarding the 

inapplicability of Section 1605 of the 

American Recovery and Reinvestment 

Act of 2009 (Pub. L. 111–5) (Recovery 

Act) should submit the request to the 

award official in time to allow a 

determination before submission of 

applications or proposals. The 

prospective applicant shall include the 

information and applicable supporting 

data required by 2 CFR 176.160(c) and 

(d) in the request. If an applicant has not 

requested a determination regarding the 

inapplicability of Section 1605 of the 

Recovery Act before submitting its 

application or proposal, or has not 

received a response to a previous 

request, the applicant shall include the 

information and supporting data in the 

application or proposal. 

(c) Evaluation of project proposals. If 

the Federal Government determines that 

an exception based on unreasonable 

cost of domestic iron, steel, and/or 

manufactured goods applies, the Federal 

Government will evaluate a project 

requesting exception to the 

requirements of Section 1605 of the 

Recovery Act by adding to the estimated 

total cost of the project 25 percent of the 

project cost if foreign iron, steel, or 

manufactured goods are used based on 

unreasonable cost of comparable 

domestic iron, steel, or manufactured 

goods. 

(d) Alternate project proposals. 

(1) When a project proposal includes 

foreign iron, steel, and/or manufactured 

goods, other than designated country 

iron, steel, and/or manufactured goods, 

that are not listed by the Federal 

Government in this Buy American 

notice in the request for applications or 

proposals, the applicant may submit an 

alternate proposal based on use of 

equivalent domestic or designated 

country iron, steel, and/or manufactured 

goods. 

(2) If an alternate proposal is 

submitted, the applicant shall submit a 

separate cost comparison table prepared 

in accordance with paragraphs 2 CFR 

176.160(c) and (d) for the proposal that 

is based on the use of any foreign iron, 

steel, and/or manufactured goods for 

which the Federal Government has not 

yet determined an exception applies. 

(3) If the Federal Government 

determines that a particular exception 

requested in accordance with 2 CFR 

176.160(b) does not apply, the Federal 

Government will evaluate only those 

proposals based on use of the equivalent 

domestic or designated country iron, 


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88Exec. Order No. 12,866, 58 FR 51735 (Sept. 30, 

1993). 

89Exec. Order No. 13,132, 64 FR 43255 (Aug. 4, 

1999). 

90Recipients who fail to submit reports pursuant 

to Section 1512(c) of the Recovery Act are 

considered to be non-compliant. Non-compliant 

recipients, including those who are persistently late 

or negligent in their reporting obligations, are 

subject to Federal action, up to and including the 

termination of Federal funding or the ability to 

receive Federal funds in the future. Memorandum 

for the Heads of Executive Departments and 

Agencies re: Improving Compliance in Recovery 

Act Recipient Reporting (OMB M–10–05 November 

30, 2009), available at http://www.whitehouse.gov/ 

omb/assets/memoranda_2010/m10-05.pdf. 

91Recovery Act sec. 1512(c), 123 Stat. at 287. 

92 Id. 

steel, and/or manufactured goods, and 

the applicant shall be required to 

furnish such domestic or designated 

country items. 

R. Executive Order 12866 

This notice has been determined to be 

‘‘economically significant’’ under 

Executive Order 12866.88 The Recovery 

Act appropriates $4.7 billion to NTIA 

for broadband grants and other 

purposes. Awards must be made no 

later than September 30, 2010. In 

accordance with Executive Order 12866, 

NTIA updated its economic analysis, 

which was completed for the first round 

of funding and outlined the costs and 

benefits of implementing BTOP, to 

reflect the changes made to the Program 

for the second round of funding. The 

complete analyses are available from 

NTIA upon request. 

S. Executive Order 13132 

It has been determined that this notice 

does not contain policies with 

Federalism implications as that term is 

defined in Executive Order 13132.89

T. Administrative Procedure Act 

Statement 

This NOFA is being issued without 

advance rulemaking or public comment 

under the Administrative Procedure Act 

of 1946, as amended (5 U.S.C. 553) 

(APA). The APA has several exemptions 

to rulemaking requirements. Among 

them is an exemption for ‘‘good cause’’ 

found at 5 U.S.C. 553(b)(B), which 

allows effective government action 

without rulemaking procedures where 

withholding the action would be 

‘‘impracticable, unnecessary, or contrary 

to the public interest.’’ 

The DOC has determined, consistent 

with the APA, that making these funds 

available under this NOFA for 

broadband development, as mandated 

by the Recovery Act, is in the public 

interest. Given the emergency nature of 

the Recovery Act and the extremely 

short time period within which all 

funds must be obligated, withholding 

this NOFA to provide for public notice 

and comment would unduly delay the 

provision of benefits associated with 

these broadband initiatives and be 

contrary to the public interest. 

For the same reasons, NTIA finds 

good cause under 5 U.S.C. 553(d)(3) to 

waive the 30-day delay in effectiveness 

for this action. Because notice and 

opportunity for comment are not 

required pursuant to 5 U.S.C. 553(d)(3) 

or any other law, the analytical 

requirements of the Regulatory 

Flexibility Act of 1980, as amended (5 

U.S.C. 601 et seq.) are inapplicable. 

Therefore, a regulatory flexibility 

analysis is not required and has not 

been prepared. 

U. Congressional Review Act 

NTIA has submitted this NOFA to the 

Congress and the Government 

Accountability Office under the 

Congressional Review of Agency 

Rulemaking Act (Congressional Review 

Act), 5 U.S.C. 801 et seq. It has been 

determined that this NOFA is a ‘‘major 

action’’ within the meaning of the Act 

because it will result in an annual effect 

on the economy of $100,000,000 or 

more. This NOFA sets out the 

administrative procedures for making 

grants totaling approximately $2.6 

billion to implement a nationwide 

broadband initiative to expand the reach 

and quality of broadband services in the 

United States. 

With funds made available through 

the Recovery Act, BTOP will provide a 

total of $4.7 billion through NTIA to 

provide broadband grants throughout 

the United States for unserved and 

underserved communities, to increase 

public computer center capacity, and to 

encourage sustainable adoption of 

broadband services. The Recovery Act 

provides that BTOP awards must be 

made no later than September 30, 2010. 

Moreover, projects funded under the 

Program must be substantially 

completed no later than two years 

following the date of issuance of the 

award. A 60-day delay in implementing 

this NOFA pursuant to the 

Congressional Review Act would 

hamper NTIA’s mission to provide 

expeditiously assistance to eligible 

entities to begin and complete projects 

within the statutory requirements of the 

Recovery Act. 

Thus, NTIA finds good cause under 5 

U.S.C. 808(2) that prior notice and 

public procedure are impracticable, 

unnecessary, and contrary to the public 

interest. To the extent that NTIA 

provided a 60-day delay in effectiveness 

pursuant to the Congressional Review 

Act, NTIA would not be able to execute 

the statutory duties required by the 

Recovery Act in a timely manner. This 

finding is consistent with the objectives 

of the Recovery Act, which specifically 

provides clear preferences for rapid 

agency action and quick-start activities 

designed to spur job creation and 

economic benefit. Accordingly, this 

NOFA shall take effect upon publication 

in the Federal Register. 

V. Paperwork Reduction Act 

1. Reporting and Registration 

Requirement Under Section 1512(c) of 

the Recovery Act 

The Recovery Act requires the 

recipient of an award to complete 

projects or activities that are funded 

under the Recovery Act and to report on 

the use of Recovery Act funds provided 

through the award.90 Information from 

these reports will be made available to 

the public. The recipient shall submit 

its first report no later than 10 calendar 

days after the end of the initial calendar 

quarter in which the recipient receives 

the assistance award funded in whole or 

in part by the Recovery Act.91

Thereafter, the recipient shall submit 

reports no later than the tenth day after 

the end of each calendar quarter.92 The 

recipient and its sub-recipients must 

maintain current registrations in the 

CCR (http://www.ccr.gov) at all times 

during which they have active Federal 

awards funded with Recovery Act 

funds. A DUNS number is one of the 

requirements for registration in the CCR. 

The recipient shall report the 

information described in Section 

1512(c) of the Recovery Act using the 

reporting instructions and data elements 

that will be provided online at http:// 

www.FederalReporting.gov unless the 

information is pre-populated. 

2. NTIA’s Additional Paperwork 

Reduction Act Analysis 

Copies of all forms, regulations, and 

instructions referenced in this NOFA 

may be obtained from NTIA. Data 

furnished by the applicants will be used 

to determine eligibility for Program 

benefits. Furnishing the data is 

voluntary; however, the failure to 

provide data could result in Program 

benefits being withheld or denied. 

The collection of information is vital 

to NTIA to ensure compliance with the 

provisions of this NOFA and to fulfill 

the requirements of the Recovery Act. In 

summary, the collection of information 

is necessary in order to implement the 

Program. 


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93See 74 FR at 33107. 

94See 74 FR 58940, 58941 (Nov. 16, 2009). 

95See, e.g., RVW, Inc. at 1 (Nov. 30, 2009); Merit 

Network at 1 (Nov. 30, 2009); City of Grover Beach 

at 1 (Nov. 30, 2009); Nemont Tel. Coop. at 1 (Nov. 

30, 2009). 

96See, e.g., Hous. Opportunities & Concepts at 1 

(Nov. 25, 2009); Wireless Internet Serv. Providers 

Ass’n (WISPA) at 3–6 (Nov. 30, 2009). 

97See, e.g., Nemont Tel. Coop. at 1; Mont. Indep. 

Telecomms. Sys. at 3 (Nov. 30, 2009); Nat’l Rural 

Telecomms. Coop. & DigitalBridge Commc’ns at 2 

(Nov. 30, 2009). 

98See, e.g., Fla.’s Heartland REDI at 1–2 (Nov. 30, 

2009); Am. Library Ass’n at 5–6 (Nov. 30, 2009); 

Wis. Dep’t of Pub. Instruction at 2 (Nov. 30, 2009); 

Sch., Health, & Libraries Broadband Coal. at 8 (Nov. 

30, 2009). 

99See, e.g., Commonwealth of Pa. at 1–3 (Nov. 25, 

2009); WISPA at 3–6; E. Or. Telecom at 1 (Nov. 19, 

2009). 

100See, e.g., Ctr. for Soc. Inclusion at 2 (Nov. 30, 

2009); Rural Broadband Corp. at 11–13 (Nov. 30, 

2009); Commonwealth of Pa. at 1–3. 

101See, e.g., Penasco Valley Tel. Coop. at 2 (Nov. 

30, 2009). 

102See, e.g., Vantage Point Solutions at 10–11 

(Nov. 30, 2009); Nat’l Educ. Broadband Serv. Ass’n 

at 3 (Nov. 30, 2009); Internet2 at 26–27 (Nov. 30, 

2009); Rural Broadband Corp. at 6. 

The following estimates are based on 

the average over the first three years the 

Program is in place. 

Comprehensive Community 

Infrastructure 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average 225 hours per 

response. 

Respondents: States, local 

governments, and any agency, 

subdivision, instrumentality, or political 

subdivision thereof; the District of 

Columbia; a territory or possession of 

the United States; an Indian tribe (as 

defined in Section 4 of the Indian SelfDetermination and Education 

Assistance Act (25 U.S.C. 450b)); a 

native Hawaiian organization; a 

nonprofit foundation, a non-profit 

corporation, a non-profit institution, or 

a non-profit association; other nonprofit entities; for-profit corporations; 

limited liability companies; and 

cooperative or mutual organizations. 

Estimated Number of Respondents: 

1,394. 

Estimated Number of Responses per 

Respondent: 1.27. 

Estimated Number of Responses: 

1,770. 

Estimated Total Annual Burden 

(hours) on Respondents: 398,250. 

Public Computer Center 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average 128 hours per 

response. 

Respondents: States, local 

governments, and any agency, 

subdivision, instrumentality, or political 

subdivision thereof; the District of 

Columbia; a territory or possession of 

the United States; an Indian tribe (as 

defined in Section 4 of the Indian SelfDetermination and Education 

Assistance Act (25 U.S.C. 450b)); a 

native Hawaiian organization; a nonprofit foundation, a non-profit 

corporation, a non-profit institution, or 

a non-profit association; other nonprofit entities; for-profit corporations; 

limited liability companies; and 

cooperative or mutual organizations. 

Estimated Number of Respondents: 

472. 

Estimated Number of Responses per 

Respondent: 1.23. 

Estimated Number of Responses: 581. 

Estimated Total Annual Burden 

(hours) on Respondents: 74,368. 

Sustainable Broadband Adoption 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average 151 hours per 

response. 

Respondents: States, local 

governments, and any agency, 

subdivision, instrumentality, or political 

subdivision thereof; the District of 

Columbia; a territory or possession of 

the United States; an Indian tribe (as 

defined in Section 4 of the Indian SelfDetermination and Education 

Assistance Act (25 U.S.C. 450b)); a 

native Hawaiian organization; a nonprofit foundation, a non-profit 

corporation, a non-profit institution, or 

a non-profit association; other nonprofit entities; for-profit corporations; 

limited liability companies; and 

cooperative or mutual organizations. 

Estimated Number of Respondents: 

382. 

Estimated Number of Responses per 

Respondent: 1.4. 

Estimated Number of Responses: 535. 

Estimated Total Annual Burden 

(hours) on Respondents: 80,785. 

The grant application forms for BTOP 

CCI, PCC, and SBA projects and the 

subsequent data collection will be 

submitted to OMB for review under the 

Paperwork Reduction Act of 1995. OMB 

control numbers will be assigned and 

published in separate Federal Register 

notices. Notwithstanding any other 

provision of law, no person is required 

to respond to, nor shall any person be 

subject to a penalty for failure to comply 

with a collection of information subject 

to the Paperwork Reduction Act unless 

that collection displays a currently valid 

OMB Control Number. 

W. Recovery Act 

Additional information about the 

Recovery Act is available at http:// 

www.Recovery.gov. 

X. Authorized Signatories 

Only authorized grant officers can 

bind the Government to the expenditure 

of funds. 

Appendix to Notice of Funds 

Availability—Broadband Technology 

Opportunities Program Policy 

Justification 

Streamlining the Application 

During the initial round of funding, 

applicants had a choice to complete a 

Broadband Infrastructure application, a 

Public Computer Center (PCC) application, or 

a Sustainable Broadband Adoption (SBA) 

application, depending on the type of project 

being proposed. Those applicants considered 

highly qualified after completing Step One of 

the review process were required to submit 

additional information during the Step Two 

‘‘due diligence’’ review to substantiate the 

representations provided in the 

application.93 During the initial round of 

funding, some stakeholders, especially those 

applicants completing the Broadband 

Infrastructure application, stated that 

completing the initial application was overly 

burdensome due to the type and amount of 

questions asked and the number of 

attachments required. RUS and NTIA 

tentatively concluded that the application 

process should be streamlined and invited 

public comment in the RFI.94

Commenters generally support the current 

two-step review process and the level of 

information and supporting documentation 

that NTIA requires.95 Only a small minority 

of commenters suggest doing away with the 

two-step review process in favor of a 

simplified one-step process modeled after 

NTIA’s Technologies Opportunities 

Program.96 Additionally, while a minority of 

commenters advocate increasing the 

information requirements of Step One in 

order to validate the legitimacy of 

applications,97 most commenters urge that 

NTIA require less information initially and 

defer the collection of supplementary budget 

and financial information until the Step Two 

due diligence review.98 Commenters also 

argue that applicants should not be required 

to obtain engineering certifications,99

environmental reviews,100 or antenna sites 

and backhaul facilities 101 until Step Two. To 

minimize the burden of the application and 

review process, commenters recommend that 

NTIA increase the amount of time available 

to applicants to submit due diligence 

materials.102

NTIA concludes that it will modify aspects 

of the two-step review process to collect the 

most essential information upfront in the 

application, with the option to collect 

additional data during the due diligence 

review, as needed. 

Commenters also offer numerous technical 

changes that would help streamline the 

application submission process during this 

round of funding. Commenters recommend 

that the Easygrants® System be tested for 


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103 See, e.g., Tex. A&M at 1 (Nov. 29, 2009); City 

of Grover Beach at 1. 

104See, e.g., City of Seattle at 3 (Nov. 30, 2009); 

Penasco Valley Tel. Coop. at iv, 3; City of N.Y. at 

3 (Nov. 30, 2009). 

105See, e.g., Rural Broadband Now! at 5 (Nov. 30, 

2009); Nat’l Educ. Broadband Serv. Ass’n at 4 (Nov. 

30, 2009); Mid-Rivers Commc’ns at 3–4 (Dec. 1, 

2009). 

106See, e.g., Mass. Executive Office of Hous. and 

Econ. Dev. at 5 (Nov. 30, 2009); NATOA at 20 (Nov. 

30, 2009). 

107See, e.g., FiberTower Corp. at 3–4 (Nov. 30, 

2009); Cal. Broadband Coop. at 3 (Nov. 30, 2009). 

108See, e.g., Ass’n of Commc’ns Engineers at 1– 

2 (Nov. 30, 2009); WHRO–TV at 1 (Nov. 30, 2009). 

109See, e.g., Hostos Cmty. Coll. at 1 (Nov. 30, 

2009); City of Philadelphia at 4 (Nov. 30, 2009); 

Broadband Satellite Commenters at 10 (Nov. 30, 

2009). 

110See, e.g., NCTH-Cleartalk at 1 (Nov. 21, 2009); 

Commonwealth of Pa. at 4; Satellite Indus. Ass’n at 

4 (Nov. 30, 2009); New Am. Found. at 21 (Nov. 30, 

2009). 

111See, e.g., Montgomery County at 2 (Nov. 30, 

2009); Oakland County at 1 (Nov. 30, 2009); City 

of N.Y. at 2; City of San Francisco at 3 (Nov. 30, 

2009). 

112See, e.g., Open Range Commc’ns at 4 (Nov. 30, 

2009); Ctr. of Soc. Inclusion at 2; Harris Corp at iii 

(Nov. 30, 2009). 

113See, e.g., John Staurulakis, Inc. at 14 (Nov. 30, 

2009); Rural Broadband Corp. at 7. 

114See 74 FR at 58941. 

115See, e.g., Mass. Executive Office of Hous. and 

Econ. Dev. at 3–4; Am. Library Ass’n at 7. 

116See, e.g., TCA at 1–2 (Nov. 30, 2009). 

117See, e.g., XO Commc’ns at 2 (Nov. 30, 2009); 

TCA at 1–2. 

118See, e.g., Tex. Statewide Tel. Coop. at 5 (Nov. 

25, 2009). 

119See, e.g., Vantage Point Solutions at 5–7; Rural 

Cmty. Assistance P’ship at 2 (Nov. 19, 2009); RVW 

Inc. at 2; Mid-Rivers Commc’ns at 6–7 (Dec. 1, 

2009); S.D. Telecomms. Ass’n at 5, 11 (Nov. 30, 

2009). 

120See, e.g., Mid-Rivers Commc’ns at 6. 

121See, e.g., Nat’l Rural Telecomms. Coop. & 

DigitalBridge Commc’ns Corp. at 6–7 (Nov. 30, 

2009). 

122See, e.g., John Staurulakis, Inc. at 18; TCA at 

1–2. 

123See, e.g., E. Shore of Va. Broadband Auth. at 

2 (Nov. 30, 2009). 

124See, e.g., Penasco Valley Tel. Coop. at 5. 

125See, e.g., TransWorld Network at 3 (Nov. 24, 

2009). 

126See, e.g., Mid-Rivers Commc’ns at 6. 

stability and usability 103 and modified to 

accept alternative documents, such as 

graphical project timelines.104 Multiple 

respondents advocate improving the 

mapping tool by creating separate versions 

for Last Mile and Middle Mile applications 

or by allowing applicants to submit mapping 

data in a number of different forms, 

including computer-aided design (CAD) or 

geographic information system (GIS) 

format.105

Commenters suggest achieving consistency 

between the application forms and guidance 

materials 106 and eliminating redundant 

questions, particularly those duplicating the 

Executive Summary requirements.107

Commenters also suggest that eliminating or 

altering a number of attachments, including 

the engineering certification 108 and financial 

documentation,109 would significantly 

improve the applicant experience. 

NTIA agrees with commenters that the 

application process can be more userfriendly. Accordingly, it makes numerous 

adjustments to the online application system 

to streamline the intake of information and 

reduce applicant burden. These steps include 

separating the BTOP infrastructure 

application from the BIP infrastructure 

application, consistent with the independent 

administration of the BIP and BTOP 

programs, separating the PCC application 

from the SBA application, as well as 

eliminating the requirement to use the 

mapping tool to create proposed funded 

service areas. NTIA also makes it easier for 

applicants filing applications in multiple 

project categories to link these applications 

in furtherance of NTIA’s focus on 

comprehensive communities. NTIA further 

simplifies the application requirements, 

including eliminating the submission of an 

engineering certification form with the initial 

application. 

A majority of the commenters advocate 

abandoning Census blocks in favor of other 

means of specifying proposed funded service 

areas.110 Commenting municipalities and 

cities unanimously express their 

dissatisfaction with the use of Census block 

data, citing it as a cumbersome method of 

reporting proposed funded service area 

designations.111 Multiple commenters offer 

zip codes, city boundaries, or even latitude 

and longitude coordinates as less 

burdensome alternatives for applicants.112

Several commenters propose using Census 

tract data as a less burdensome alternative to 

Census block data, in part because broadband 

service providers are already required to 

report their subscriber and demographic 

information according to Census tracts in 

order to file FCC Form 477.113

NTIA agrees with commenters that 

requiring applicants to provide proposed 

funded service areas by Census block data is 

overly burdensome, especially when 

applicants could use other methods to 

indicate these areas. In this funding round, 

NTIA will instead require applicants to 

indicate their proposed funded service area 

using Census block groups or Census tracts. 

Relationship Between BIP and BTOP 

Because the Recovery Act prohibits a 

project from receiving funding from NTIA in 

areas where RUS has funded a project, the 

First NOFA required applicants whose 

proposed funded service areas were at least 

75 percent rural to submit infrastructure 

applications to RUS for consideration under 

BIP, with the option of additional 

consideration under BTOP. The First NOFA 

provided that NTIA would not fund such an 

application unless RUS had declined to fund 

it. In response to informal comments from 

stakeholders during the initial round of 

funding, the agencies’ RFI invited public 

comment on whether the agencies should 

continue to require that these kinds of rural 

infrastructure applications be submitted to 

RUS first or whether the agencies should 

permit applicants to file largely rural 

applications directly to NTIA without also 

having to submit them to RUS.114

The majority of commenters agree that 

rural applicants should be permitted to apply 

directly to NTIA for BTOP grants without 

being required first to apply to RUS for BIP 

loans or grants.115 The most widely cited 

rationale was the needless burden imposed 

on applicants to provide the additional 

financial analysis required by the RUS loan 

application for rural projects that do not 

qualify as remote and unserved or are not 

viable with only 50 percent grant funding.116

Commenters also cite the inefficiency of 

requiring RUS to review proposals that are 

not even viable for BIP.117

A majority of commenters favor the 

continued use of a common BIP–BTOP 

application to avoid the duplicative effort of 

completing multiple applications.118 A few 

of these commenters favor maintaining the 

approach taken in the initial round of 

funding that required concurrent joint 

applications and reserving to RUS the first 

option to fund eligible proposals.119 The 

chief benefit adduced in support of this 

position is RUS’s expertise in evaluating 

rural applications so as to avoid redundant 

awards to ‘‘active’’ RUS borrowers.120

Commenters further recommend that the 

agencies implement a ‘‘check box’’ by which 

an applicant may request immediate 

consideration by NTIA because its rural 

project requires more than a 50 percent grant 

to be viable or seeks to address one of NTIA’s 

broadband objectives 121 and allow 

applicants to produce only one financial 

analysis to demonstrate an ability to support 

either a 50 percent contribution (as required 

for BIP) or a 20 percent contribution (as 

required for BTOP) to a project.122

In this funding round, RUS and NTIA 

conclude that applicants that are eligible for 

both BIP and BTOP have the option to apply 

to either agency for funding for the same 

project, but applicants should apply to only 

one agency for a given project. Applicants 

who are current RUS borrowers or grantees, 

applicants who are proposing a Last Mile 

service area that is 75 percent or more rural, 

or applicants whose Last Mile component (to 

residential consumers and non-community 

anchor institutions) exceeds 20 percent of 

total eligible project costs are strongly 

encouraged to apply to RUS for funding 

under BIP. 

Mindful of the statutory prohibition against 

duplicative funding, several parties suggest 

that RUS and NTIA might coordinate their 

funding determinations to leverage Federal 

resources most efficiently and effectively by 

having NTIA fund only grants and RUS fund 

only loans for rural projects; 123 awarding 

preference for BIP loans to applicants that 

apply to RUS first; 124 considering projects 

that are 75 percent rural for BTOP grant-only 

financing to leverage existing infrastructure 

and cooperative relationships (e.g., wireless 

network via rural electric cooperative); 125

and avoiding the appearance of duplicative 

funding by not funding in areas where BIP 

loans are active or have been recently 

approved.126

NTIA is in accord with the views of 

commenters who point out that the agencies 

are statutorily prohibited from funding 


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127See 74 FR at 58942. 

128 Id. 

129See, e.g., Stratum Broadband at 8 (Nov. 14, 

2009). 

130See, e.g., Fairpoint Commc’ns at 5 (Nov. 30, 

2009). 

131See, e.g., Nat’l Rural Telecomms. Coop. and 

DigitalBridge Commc’ns Corp. at 8. 

132See, e.g., New Am. Found. at 8. 

133See, e.g., Commonwealth of Pa. at 5. 

134See, e.g., Nat’l Ass’n of State Chief Info. 

Officers at 2 (Nov. 30, 2009). 

135See, e.g., Forest County Potawatomi at 2 (Nov. 

30, 2009). 

136See, e.g., Motorola at 6 (Nov. 30, 2009); Rural 

Broadband Now! at 8. 

137See 74 FR at 58942. 

138 Id. 

139See, e.g., The Bill & Melinda Gates Found. at 

1–2 (Nov. 30, 2009); Media Alliance at 2 (Nov. 25, 

2009); Pub. Broad. Serv. at 1–5 (Nov. 30, 2009); 

Mass. Executive Office of Hous. and Econ. Dev. at 

6; Mid Am. Reg’l Council at 2; Corp. for Educ. 

Initiatives in Cal. at 1 (Nov. 28, 2009); Am. Library 

Ass’n at 3. 

140See, e.g., Motorola at 8–9; Mass. Executive 

Office of Hous. and Econ. Dev. at 6–7. 

141See, e.g., Nat’l Educ. Broadband Serv. Ass’n at 

11; Corp. for Educ. Initiatives in Cal. at 1. 

142See, e.g., Mayo Clinic at 3 (Nov. 24, 2009). 

143See, e.g., City of N.Y. at 2, City of Philadelphia 

at 4–6 (Nov. 30, 2009); Sch., Health, & Libraries 

Broadband Coal. at 18. 

144See, e.g., The Bill & Melinda Gates Found. at 

1. 

145See, e.g., Hot Springs Greater Learning Found. 

at 3 (Nov. 30, 2009); The Bill & Melinda Gates 

Found. at 1; Corp. for Educ. Initiatives in Cal. at 1. 

146See, e.g., The Bill & Melinda Gates Found. at 

1; Corp. for Educ. Initiatives in Cal. at 1; Am. 

Library Ass’n at 3; Nat’l Educ. Broadband Serv. 

Ass’n at 5–6. 

147See, e.g., Hot Springs Greater Learning Found. 

at 2; The Bill & Melinda Gates Found. at 1; Nat’l 

Rural Telecomms. Coop. & DigitalBridge Commc’ns 

Corp. at 9. 

148See, e.g., Mayo Clinic at 2; Univ. of Cal. Davis 

Med. Sys. at 2 (Nov. 30, 2009); Wash. State Law and 

Justice Org. at 3. 

149See, e.g., Media Alliance at 2; Pub. Broad. 

Serv. at 1–5; Corp. for Educ. Initiatives in Cal. at 

1. 

150See, e.g., Towerstream at 3–4 (Nov. 30, 2009); 

Asian Am. Justice Ctr., League of United Latin Am. 

Citizens, Minority Media & Telecomms. Council, 

Nat’l Urban League & One Econ. Corp. at 5 (Nov. 

30, 2009). 

151See, e.g., One Econ. Corp. at 4. 

152See, e.g., Towerstream at 2; Open Range 

Commc’ns at 6; Utopian Wireless at 7. 

153See, e.g., Towerstream at 2; Telecom Transp. 

Mgmt. at 7; Internet2 at 24–25. 

projects in the same area and that such 

duplicative funding would be wasteful and 

inconsistent with the objectives of the 

Recovery Act. Thus, as in the first funding 

round, RUS and NTIA will not fund 

infrastructure projects in the same service 

area. The agencies will coordinate to identify 

potential service area overlaps and will 

resolve such conflicts in the manner that best 

satisfies the statutory objectives of both 

programs. 

Transparency and Confidentiality 

Consistent with the Administration’s 

policy and the Recovery Act’s objective to 

ensure greater transparency in government 

operations, RUS and NTIA invited public 

comment on whether the agencies should 

permit greater access, consistent with 

applicable Federal laws and regulations, to 

certain applicant information by other 

applicants, policymakers, and the public, 

including State and tribal governments.127 In 

the RFI, the agencies tentatively concluded 

that the application’s Executive Summary 

should be made publicly available in this 

round of funding.128

The overwhelming majority of commenters 

support the RFI’s tentative recommendation 

to make the Executive Summary available to 

the public, but differ as to how much 

applicant information should be made 

public.129 The majority of these commenters 

recommend that applicants be permitted to 

designate trade secrets, financial projections, 

and other proprietary information as 

confidential.130 The majority of commenters 

caution, however, that should confidentiality 

protections not be provided, applicants 

would hold back critical information needed 

for an adequate review of the applications.131

A minority of commenters support making 

the entire application public and available 

online without confidentiality protections.132

Some States propose a compromise position 

whereby NTIA would publish expanded 

Executive Summaries disclosing pertinent 

facts (targeted area, type of technology used, 

project cost and revenue projections) and 

withhold only proprietary or patented 

technology from public disclosure.133

NTIA agrees with commenters who 

advocate more transparency throughout the 

application and evaluation processes. During 

this funding round, NTIA will post an 

announcement identifying each 

infrastructure application received, along 

with a list of the Census block groups or 

tracts that each application proposes to serve 

through its project, in addition to the 

information it is required to publicly disclose 

pursuant to the Recovery Act. 

States advocate full access to entire 

applications, including mapping data, for 

purposes of State consultation.134 Similarly, 

tribal commenters recommend that, due to 

historic preservation and tribal sovereignty 

concerns, NTIA and RUS timely alert 

relevant tribes about applications that 

propose to serve their tribal lands.135 In 

addition, several commenters contend that 

transparency should extend to the public 

notice comment and State consultation 

processes by making comments from existing 

service providers and State and tribal entities 

public.136

NTIA is sensitive to the needs of States and 

tribes when reviewing applications that 

propose to serve areas within their 

jurisdictions. NTIA will share with each 

relevant State and tribe applicants’ data that 

are available on the publicly searchable 

database. Additional information may be 

requested directly from applicants by each 

State or tribe. In addition, NTIA will make 

the comments of the States and tribes 

available on the publicly searchable database, 

with the exception of any confidential 

information that the comments may contain. 

NTIA also will make certain information 

submitted by existing broadband service 

providers publicly available as part of the 

announcement process for applicants’ 

proposed funded service areas. 

Funding Priorities and Comprehensive 

Communities 

During the initial round of funding, RUS 

and NTIA allocated a total of $4 billion in 

funding for various project categories, 

including Last Mile infrastructure, Middle 

Mile infrastructure, Public Computer Center, 

and Sustainable Broadband Adoption 

projects. In response to numerous 

suggestions concerning how the NOFA could 

be modified to ensure that Recovery Act 

funds make the greatest possible impact, the 

agencies’ RFI invited commenters to provide 

quantitative estimates of the projected 

benefits of adopting a more targeted funding 

approach during this round of funding.137

NTIA and RUS also expressly requested 

comment on whether the agencies should 

focus on or limit funding to projects that will 

deliver Middle Mile infrastructure facilities 

into a group of communities and connect key 

anchor institutions within those 

communities.138

Approximately one-third of commenters 

who address the funding priorities section of 

the RFI recommend targeting community 

anchor institutions for special consideration 

in this round of funding.139 These 

commenters suggest that certain institutions, 

such as public safety agencies,140 educational 

institutions,141 and health service 

providers,142 should receive greater funding 

priority in order to reflect their impact on 

economic development and their greater 

need for or use of broadband services. Many 

commenters advocating more targeted 

funding for community anchor institutions 

suggest that they should not need to meet the 

unserved/underserved criteria in order to 

qualify for funding.143 One commenter 

suggests an entirely separate application 

track for community anchor institutions.144

Supporters of this targeted funding approach 

agree that any definition of community 

anchor institutions should include K–12 

schools,145 libraries,146 higher education 

facilities,147 and healthcare facilities.148 In 

addition to these entities, which were 

explicitly noted as priorities in the NOFA for 

the initial round of funding, some 

commenters suggest that NTIA use a more 

expansive definition of community anchor 

institution that encompasses public access 

media, performance spaces, and other 

community organizations.149 Commenters 

also suggest focusing increased funding to 

small businesses 150 and public housing.151

A handful of organizations disagree that 

any one application type should be explicitly 

targeted for funding, even if it proposes to 

connect community anchor institutions or 

serve a ‘‘vulnerable’’ population.152 In 

particular, these dissenting commenters 

advance the opinion that while community 

anchor institutions should be eligible for 

funding, they are not necessarily any more 

meritorious than other eligible entities.153

NTIA agrees with commenters that stress 

the importance of connecting broadband to 

community anchor institutions. Schools, 


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154See, e.g., Sch., Health, & Libraries Coal. at 15; 

Am. Library Ass’n at 8; Corp. for Educ. Initiatives 

in Cal. at 1. 

155See, e.g., S. C. Broadband Coal. at 3 (Nov. 30, 

2009); Mayo Clinic at 3; Univ. of Cal. Davis Med. 

Sys. at 2. 

156See, e.g., The Bill & Melinda Gates Found. at 

5; Mass. Executive Office of Hous. and Econ. Dev. 

at 7. 

157See, e.g., Sch., Health, & Libraries Broadband 

Coal. at 17; Am. Library Ass’n at 8. 

158See, e.g., Nat’l Telecomms. Coop. Ass’n at 4 

(Nov. 30, 2009); Mont. Indep. Telecomms. Sys. at 

4; Nat’l Pub. Broadband at 1 (Nov. 25, 2009); City 

of N.Y. at 4–5. 

159See, e.g., Commonwealth of Pa. at 9; RVW, Inc 

at 2. 

160FCC Identifies Critical Gaps in Path to Future 

Universal Broadband, News Release (Nov. 18, 

2009). 

161See, e.g., The Bill & Melinda Gates Found. at 

6–7 (public libraries); May Clinic at 3 

(telemedicine); Motorola at 8–9 (public safety). 

162See, e.g., NTCH-Cleartalk at 1; Spacenet, Inc. 

at 6 (Nov. 30, 2009); Rural Broadband Now! at 6– 

7. 

163See, e.g., NATOA at 12 (Nov. 30, 2009). 

164See, e.g., Inst. for Local Self-Reliance (ILSR) at 

3 (Nov. 30, 2009). 

165See, e.g., Forest County Potawatomi at 3. 

166See, e.g., CBN Connect at 2; City of San 

Francisco at 3; The Bill & Melinda Gates Found. at 

2. 

167See, e.g., Asian Am. Justice Ctr., League of 

United Latin Am. Citizens, Minority Media and 

Telecomms. Council, Nat’l Urban League, and One 

Econ. Group at 5–6. 

168See, e.g., City of San Francisco at 3; The Bill 

& Melinda Gates Found. at 2; Corp. for Educ. 

Initiatives in Cal. at 1. 

169But see, e.g., Stratum Broadband at 12. 

170See, e.g., City of N.Y. at 7; New Am. Found. 

at 20–21; Telecomms. Indus. Ass’n at 8 (Nov. 30, 

2009); San Jose Hispanic Chamber of Commerce at 

2 (Nov. 30, 2009); City of Chicago at 7; Broadband 

Satellite Commenters at 15 (Nov. 30, 2009); Nat’l 

Rural Telecomms. Coop. & DigitalBridge Commc’ns 

Corp. at 11. 

171See, generally, E. Or. Telecom at 2; N.Y. State 

Ass’n of Counties at 2 (Nov. 30, 2009); City of N.Y. 

at 2. 

172See, e.g., Towerstream at 3–4; City of N.Y. at 

2; San Jose Hispanic Chamber of Commerce at 2; 

FiberTower Corp. at 8–9. 

173See, e.g., New Am. Found. at 10; Telecomms. 

Indus. Ass’n at 14; Am. Library Ass’n at 15. 

174See, e.g., San Jose Hispanic Chamber of 

Commerce at 3; Digital Impact Group at 2; Trace 

Ctr., Univ. of Wis. at 1–3; Broadband for the Deaf 

& Hard of Hearing at 4. 

175See, e.g., Digital Impact Group at 2; State of 

Mich. at 11; City of Phoenix at 3. 

176See, e.g., Montgomery County, Md. at 2–3; 

NATOA at 6–7; Mid Am. Reg’l Council at 1. 

177See, e.g., Cricket Commc’ns at 7–8; Cmtys. 

Connect Network at 1–2; City of Philadelphia at 

6–7. 

178See, e.g., Flow Mobile at 12; City of Seattle at 

9–11; Inst. for Local Self-Reliance at 4; City of 

Portland, Or. at 2; City of Houston at 3; Wireless 

libraries, colleges and universities, medical 

and healthcare providers, public safety 

entities, and other community support 

organizations increasingly rely on Internet 

connectivity to serve their constituencies and 

their communities. Expanding broadband 

capabilities for community anchor 

institutions will result in substantial benefits 

for the entire community, delivering 

improved education, healthcare, and 

economic development. Broadband 

connections to these facilities will not only 

enhance their services and effectiveness, but 

can also provide potential points of 

interconnection for Last Mile service directly 

to homes and businesses. For these reasons, 

NTIA focuses funding in this NOFA towards 

projects that connect community anchor 

institutions. 

To leverage connections to community 

anchor institutions, a number of commenters 

explicitly support the prioritization of 

Comprehensive Communities.154 Many 

supporters of a Middle Mile comprehensive 

community priority in this round of funding 

suggest that Middle Mile funding should be 

contingent upon a commitment from a Last 

Mile provider.155 A smaller handful of 

commenters note that cooperation among 

Middle Mile and Last Mile providers should 

be encouraged but not required.156 In 

opposition, some commenters argue that it 

may be too onerous for community anchor 

institutions such as schools and hospitals to 

obtain a Last Mile commitment.157

The minority of commenters who voice 

skepticism towards a Comprehensive 

Community approach to funding worry about 

the threat a Middle Mile priority would pose 

to the funding of Last Mile projects.158 In 

addition to the relationship between Middle 

Mile and Last Mile projects, many 

commenters oppose the creation of set-asides 

for one type of application.159

NTIA agrees with commenters that support 

targeting the funding available in this round 

towards comprehensive communities with an 

emphasis on projects that emphasize Middle 

Mile broadband capabilities. Preliminary 

findings by the FCC’s National Broadband 

Plan Task Force indicate that broadband 

service in unserved and underserved areas of 

the United States is limited due to 

insufficient capacity and to significantly 

higher costs of deploying Middle Mile 

services in some areas.160 NTIA finds that the 

cost of Middle Mile service, particularly in 

unserved and underserved areas, stifles 

broadband expansion for those that need it 

most. Insufficient Middle Mile broadband 

service not only limits the availability and 

affordability of end-user broadband 

connectivity for consumers and businesses, 

but it also diminishes the effectiveness of 

community anchor institutions in fulfilling 

their missions.161

For these reasons, NTIA seeks to focus on 

these types of projects by adopting a 

‘‘comprehensive communities’’ approach to 

awarding BTOP infrastructure grants, which 

prioritizes Middle Mile projects integrated 

with community anchor institutions, 

including community colleges, or Last Mile 

service providers as a means of maximizing 

the leverage of taxpayer investments. 

Commenters put forth a number of key 

criteria that NTIA should consider in its 

evaluation of Comprehensive Community 

projects, including cost effectiveness,162

technology approaches,163 the size of the 

matching funds,164 and support from 

community anchor institutions.165 Most 

commenters suggest evaluating projects 

based on the extent to which the applicant 

proposes to connect institutions that serve a 

vulnerable population group,166 such as a 

historically black university or an institution 

serving primarily to Hispanic groups.167 A 

smaller number of commenters suggest that 

NTIA evaluate the number of community 

anchor institutions connected by the 

project.168 The proposal to use sustainability 

and public-private partnerships as potential 

criteria for evaluating Comprehensive 

Communities did not receive much 

support.169

NTIA agrees with many of the criteria 

suggested by commenters to evaluate 

Comprehensive Community Infrastructure 

projects. Evaluation criteria in this funding 

round will prioritize applications that 

include a Middle Mile component and 

demonstrate commitments to serve 

community anchor institutions, including 

community colleges, and incorporate publicprivate partnerships and public safety 

entities, along with the other project 

priorities and additional factors that are set 

forth in Section II. of this NOFA. 

Program Definitions—‘‘Unserved’’ and 

‘‘Underserved’’ 

More than seventy commenters offer 

suggestions for clarifying the definitions of 

‘‘unserved’’ and ‘‘underserved’’ used in the 

First NOFA. Many of these commenters 

contend that the current definitions are too 

restrictive and recommend that NTIA craft a 

broader standard.170 A common concern 

among these commenters is that the current 

broadband penetration thresholds included 

in the definitions exclude many worthy 

projects located in urban areas.171

A substantial number of commenters 

advocate applying the definitions of 

‘‘unserved’’ and ‘‘underserved’’ differently to 

different types of applicants.172 Several 

commenters request that community anchor 

institutions 173 and projects that propose to 

serve vulnerable communities,174 no matter 

where they are located, be exempt from 

having to meet the unserved or underserved 

definitions. A few commenters suggest that 

NTIA use different definitions depending on 

whether an applicant applies as an 

Infrastructure, PCC, or SBA project.175

Several commenters recommend that the 

socioeconomic status of an area be 

considered in determining whether that area 

is unserved or underserved. Specifically, 

several commenters express concern with 

using Census blocks to define an unserved or 

underserved area in the previous round and 

recommend that NTIA require applicants to 

use socioeconomic and demographic data 

instead to identify unserved and underserved 

areas.176 Many commenters also suggest that 

the underserved and unserved definitions 

consider the effects of poverty on adoption, 

especially as it relates to the affordability of 

broadband in an area, and evaluate projects 

that propose to address these adoption 

barriers more positively.177

Finally, several commenters suggest that 

NTIA use actual guaranteed speeds as 

opposed to advertised speeds to determine 

whether an area is considered 

underserved.178 Commenters are divided 


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Commc’ns Ass’n Int’l at 5–8; NATOA at 10–11; City 

of Tacoma at 3; E. Shore of Va. Broadband Auth. 

at 3. 

179See, e.g., Commonwealth of Pa. at 13; Wireless 

Internet Serv. Providers at 13. 

180See, e.g., Flow Mobile at 12; City of Seattle at 

6–7; Am. Cable Ass’n at 13–14; E. Shore of Va. 

Broadband Auth. at 3; Alcatel Lucent at 2–3. 

181 74 FR at 33122. 

182See 74 FR at 58943–44. 

183See, e.g., Flow Mobile at 14; Spacenet at 7; 

Mass. Executive Office of Hous. and Econ. Dev. at 

8. 

184See, e.g., City of Chicago at 3; CONXX at 15; 

Rural Broadband Now! at 8; NATOA at 17. 

185See, e.g., Am. Cable Ass’n at 14–16; CONXX 

at 15; U.S. Telecom at 26; Univ. of Ark. Med. Serv. 

at 5; Stratum Broadband at 21–22. 

186See, e.g., New Am. Found. at 23; Inst. for Local 

Self-Reliance at 5; Merit Network at 8–9; Am. Fiber 

Sys. at 3; City of Grover Beach at 12. 

187See, e.g., Stratum Broadband at 22; NTCH– 

Cleartalk at 1; Am. Fiber Sys. at 3; City of Grover 

Beach at 12; CONXX at 15. 

188See, e.g., New Am. Found. at 23; Flow Mobile 

at 14; City of Grover Beach at 12. 

189See, e.g., Merit Network at 8–9; Open Range 

Commc’ns at 9; Stratum Broadband at 22; 

Commonwealth of Pa. at 13; Fairpoint Commc’ns. 

190See, e.g., Loudoun County, Va., OpenBand 

Multimedia, LLC & Roadstar Internet, Inc at 7; 

CONXX at 15. 

191See, e.g., Found. Telecomms. at 1. 

192 74 FR at 58944. 

193See, e.g., Tex. Statewide Tel. Coop. at 12; New 

Am. Found. at 23; Vantage Point Solutions at 10; 

Eng’g Ass’n at 4; Harris Corp. at iv; CONXX at 16; 

City of San Francisco at 1; Am. Fiber Sys. at 4; E. 

Shore of Va. Broadband Auth. at 5; Mid-Rivers 

Commc’ns at 10; Commonwealth of Pa. at 14. 

194See, e.g., Earthlink and New Edge Network at 

2; Stratum Broadband at 23–24. 

195 Id. 

196See, e.g., Earthlink and New Edge Network at 

2. 

197See, e.g., Stratum Broadband at 23–24. 

198See, e.g., United Tribes Technical Coll. at 1. 

199See, e.g., City of Phoenix at 3. 

whether NTIA should eliminate the 

provision that defined a service area as 

underserved or unserved if certain broadband 

speeds were unavailable, with some 

commenters recommending that speed be 

eliminated as a criterion,179 but many more 

recommending that available speeds remain 

a focus for defining unserved and 

underserved areas.180

NTIA disagrees with commenters in a 

variety of respects. The First NOFA provided 

very specific definitions of what constitutes 

an unserved and underserved area for BTOP 

purposes. In NTIA’s review of applications 

submitted by private companies, community 

anchor institutions, and other stakeholders in 

the first funding round, NTIA does not 

believe that its definitions proved to be 

overly restrictive or hindered applicants from 

applying. Additionally, NTIA finds that, for 

purposes of consistency between the two 

rounds of funding as well as between BTOP 

and the Broadband Mapping Program, the 

definitions of unserved and underserved 

should remain largely unchanged. NTIA has, 

however, removed the requirement that 

infrastructure projects connecting 

community anchor institutions, including 

community colleges, must be located in 

unserved or underserved areas. The 

Comprehensive Community Infrastructure 

project category will consider whether a 

proposed funded service area is unserved or 

underserved as an additional factor giving an 

application more priority in scoring. For all 

of these reasons, NTIA decides against 

substantially revising its definitions of 

unserved and underserved. 

Announcement of Applicants’ Proposed 

Funded Service Areas 

The First NOFA allowed existing 

broadband service providers an opportunity 

to comment on an applicant’s assertions that 

its proposed funded service areas are 

unserved or underserved.181 During the 

initial round of funding, some stakeholders 

suggested that this rule may reduce 

incentives for applicants to participate in BIP 

and BTOP because of the risk that their 

applications may be disqualified from 

funding on the basis of information 

submitted by existing broadband service 

providers that they have no means to 

substantiate or rebut. The RFI sought 

comment on whether alternative verification 

methods could be established that would be 

fairer to both applicants and challengers, 

what type of information should be collected 

from the entity questioning the service area, 

and what information should be subject to 

public disclosure.182

Numerous commenters request a more 

transparent and defined process in which the 

agencies describe the procedures and criteria 

used to determine whether an applicant’s 

proposed funded service area is unserved or 

underserved and make data submitted during 

the announcement process available to the 

public.183 Further, to assuage concern that an 

application may be disqualified from funding 

based on information submitted during the 

announcement process, many respondents 

suggest that applicants be provided an 

opportunity to review and rebut the 

comments that existing broadband service 

providers submit.184 In addition, many 

commenters suggest that data should be 

collected from a number of sources before 

NTIA renders a final determination as to 

whether broadband is already available, such 

as FCC Form 477 data.185

Commenters also provide suggestions as to 

what type of information should be gathered 

from existing broadband service providers 

seeking to submit comments. Commenters 

overwhelmingly urge NTIA to require that 

broadband service providers demonstrate 

that available broadband claims are based on 

actual speed 186 and coverage,187 which is 

independently verifiable and not simply as 

advertised.188 Further, a majority of 

commenters request that incumbents provide 

detail at the Census block level 

corresponding with the application.189 Some 

respondents propose that NTIA require 

existing broadband service providers who 

comment on an application’s proposed 

funded service area to supply the names and 

addresses of current subscribers within the 

designated area 190 or prove coverage by 

posting coverage availability on their Web 

site at all times.191

For this round of funding, NTIA will post 

an announcement identifying each CCI 

application it has received, along with a list 

of the Census block groups or tracts that each 

infrastructure application has proposed to 

serve through its project at http:// 

www.broadbandusa.gov for a 15-day period. 

The announcement will provide existing 

broadband service providers with an 

opportunity to voluntarily submit to NTIA 

information about the broadband services 

that they currently offer in their respective 

service territories by Census block group or 

tract. If an existing broadband service 

provider submits a response outside the 15- 

day period, the information may not be 

considered by NTIA in its evaluation of an 

applicant’s Last Mile or Middle Mile service 

area(s) as unserved or underserved, as 

applicable. 

NTIA will consider such comments 

provided they include the information set 

forth in Section V.D.3 of the NOFA, some of 

which will be made public. 

NTIA adopts this method of evaluating the 

unserved or underserved status of applicants’ 

proposed funded service area as a means to 

improve the analysis and minimize the 

burden on applicants and commenters. NTIA 

also departs from the evaluation process that 

RUS will use in that it will no longer use the 

RUS mapping tool to have applicants and 

commenters draw service area maps or 

require existing broadband service providers 

to submit comments on each proposed 

funded service area specified in an 

application. As a result of these process 

enhancements, NTIA believes it can expedite 

the time period in which existing service 

providers have to submit their comments 

from 30 days to 15 days. This expedited 

schedule will allow NTIA to begin its 

evaluation of the unserved or underserved 

status of applications that enter due diligence 

much more quickly than in the previous 

round of funding. 

Interconnection and Nondiscrimination 

Requirements 

In the RFI, NTIA and RUS invited public 

comment on whether the interconnection 

and nondiscrimination requirements for 

infrastructure applicants in the initial round 

of funding should be changed.192

Commenters generally suggest that NTIA 

maintain the same rules as those of the First 

NOFA with no modification to their scope or 

application.193

However, several commenters suggest 

modifying the scope and application of the 

nondiscrimination and interconnection 

requirements.194 Commenters suggest minor 

adjustments that could be made to these 

requirements in order to advance certain 

market efficiencies,195 including requiring 

grantees to provide fully functional and 

comprehensive operations support systems 

and associated Application Programming 

Interfaces for their wholesale services 196 and 

for NTIA to rephrase the network 

management and managed service exceptions 

in order to encourage companies to provide 

shared managed services.197 Some 

commenters also request that certain 

applicants such as tribes 198 and 

municipalities 199 be exempt from the 

NOFA’s nondiscrimination and 


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3820 Federal Register / Vol. 75, No. 14 / Friday, January 22, 2010 / Notices 

200See, e.g., Merit Networks at 9 (suggesting a 

balancing test when applying the 

nondiscrimination and interconnection 

requirements). 

201See, e.g., Org. for the Promotion & 

Advancement of Small Telecomms. Companies at 

7–8; Indep. Tel. and Telecomms. Alliance at 10. 

202See, e.g., ADTRAN at 4–5; Telecomms. Indus. 

Ass’n at 18; Indep. Tel. and Telecomms. Alliance 

at 10; Open Range Commc’ns at 10–11; U.S. 

Telecom at 32. 

203See, e.g., ADTRAN at 2; Telecomms. Indus. 

Ass’n at 18; U.S. Telecom at 31–33. 

204See, e.g., Indep. Tel. and Telecomms. Alliance 

at 10; Open Range Commc’ns at 10–11; ADTRAN 

at 4–5. 

205See, e.g., ADTRAN at 4–5. 

206See, e.g., AT&T at 17–18; State of S.D. at 1; 

AzulStar at 4. 

207See, e.g., AT&T at 17–18. 

208See, e.g., State of S.D. at 1; AzulStar at 4. 

209See, e.g., AT&T at 18. 

210See, e.g., Stratum Broadband at 24; Alaska 

Commc’ns Sys. at 7–8; AT&T at 18–19; U.S. 

Telecom at 33–34; CONXX at 16. 

211 Id. 

212See 74 FR at 58944. 

213See, e.g., KeyOn Commc’ns at 3; Commc’ns 

Finance Ass’n at 1. 

214See 74 FR at 58944. 

215See, e.g., Cricket Commc’ns at 12; Stratum 

Broadband at 12; Flow Mobile at 15. 

216Eng’g Ass’n, Inc. at 4; E. Shore of Va. 

Broadband Auth. at 5; Canby Telecom at 1; MidRivers Commc’ns at 10. 

217See, e.g., KeyOn Commc’ns at 3; E. Shore of 

Va. Broadband Auth. at 5; Native Broadband 

Satellite at 8; Alaska Commc’ns Sys. at 8; Cricket 

Commc’ns at 12; Cal. Broadband Coop. at 5. 

218See, e.g., Rural Broadband Now at 9. 

219See, e.g., U.S. Telecom at 37–38. 

220See, e.g., Dixie Tech. Funding Agency at 15. 

221See, e.g., Monte R Lee & Co. at 8. 

222See, e.g., Senior Broadband/Internet Adoption 

Collaborative at 10. 

223See, e.g., Internet2 at 26–27. 

224See, e.g., TransWorld Network at 5. 

interconnection requirements.200 In 

opposition, some commenters request that 

the requirements be applied to every 

applicant, regardless of the nature of the 

entity.201

Commenters express concern that NTIA’s 

requirements would not mirror the rules that 

are ultimately adopted in the Federal 

Communications Commission’s (FCC) 

ongoing rulemaking proceeding regarding a 

Free and Open Internet.202 These 

commenters argue that if the requirements 

applicable to BTOP applicants are 

inconsistent with those faced by other service 

providers, then these additional 

nondiscrimination obligations will prove 

burdensome or duplicative for broadband 

service providers receiving grant funds.203

Commenters suggest that NTIA declare a 

sunset date for these requirements either 

when the FCC finalizes its network neutrality 

rules or at another reasonably foreseeable 

date.204 Commenters also recommend that 

NTIA declare that compliance with the FCC 

rules would be sufficient to meet the 

requirements of BTOP.205

A few commenters oppose the First 

NOFA’s nondiscrimination and 

interconnection requirements altogether.206

These commenters argue that the scope of 

these requirements chilled participation in 

the Program during the initial round of 

funding 207 and that the requirements 

conflicted with a private company’s ability to 

manage its own network.208 Commenters also 

argue that the current approach to the 

requirements would pose an oversight 

problem for NTIA and RUS and recommend 

that compliance be left up to the grant 

recipients.209

A few commenters also recommend that 

NTIA clarify its interconnection 

requirements in order to minimize cost and 

controversy.210 These commenters are 

especially concerned that the interconnection 

and nondiscrimination rules during the 

initial round of funding were unclear as 

applied to contractors or subcontractors.211

NTIA agrees with commenters that support 

maintaining the consistency of the 

interconnection and nondiscrimination 

requirements across the two rounds of 

funding. Leaving the requirements 

unchanged from the initial round of funding 

will help to facilitate the administration of 

the grants awarded during the first and 

second rounds and avoid imposing differing 

nondiscrimination and interconnection 

standards on recipients. Accordingly, NTIA 

has decided against making any significant 

revisions to this section. Any changes made 

to this section from the First NOFA are 

intended only to clarify and not change the 

applicants’ obligations. 

Sale of Project Assets 

Section IX.C.2 of the NOFA generally 

prohibits the sale or lease of award-funded 

broadband facilities, unless the sale or lease 

meets certain conditions. Specifically, the 

agencies may approve a sale or lease if it is 

for adequate consideration, the purchaser 

agrees to fulfill the terms and conditions 

relating to the project, and either the 

applicant includes the proposed sale or lease 

in its application as part of its original 

request for grant funds or the agencies waive 

this provision for any sale or lease occurring 

after the tenth year from the date the grant, 

loan, or loan/grant award is issued.212 Some 

stakeholders have suggested that this ‘‘tenyear holding rule’’ is overly restrictive and is 

a barrier to participation in BIP and BTOP.213

The agencies invited public comment on 

whether and how this section should be 

revised to adopt a more flexible approach 

toward awardee mergers, consistent with 

USDA and DOC regulations, while still 

ensuring that awardees are not receiving 

excessive profit from the sale of awardfunded assets.214

The clear majority of forty-seven parties 

who filed comments on the NOFA’s 

conditions on the post-award sale or lease of 

project assets support a relaxation of these 

conditions.215 Only a few commenters 

support retention of the rules.216 Most 

commenters agree that the prohibitions on 

the sale or lease of project facilities are 

unreasonably broad because they fail to 

provide flexibility for the government to 

consent to a reasonable lease or sale during 

the first ten years. One commenter voices a 

concern shared by many that the conditions 

restricting post-award sales or leases may 

inhibit obtaining funding for the project, 

explaining that ‘‘the 10-year prohibition on 

the sale of the funded assets also seems to 

cause a ‘chilling effect’ in terms of capital 

raising by applicants and may have caused 

many potential broadband providers to avoid 

BIP/BTOP entirely.’’ 217

Commenters supporting greater flexibility 

regarding the sale of assets recommend the 

following revisions: The second NOFA 

should allow the government to approve the 

sale or lease of project assets on a case-bycase basis; 218 the agencies should remove the 

10-year limit and focus on unjust 

enrichment; 219 clarify that the project assets 

mean only those assets which are purchased 

directly from grant funds awarded and not 

* * * equipment or services purchased 

* * * with ‘‘matching funds;’’ 220 relax rules 

so that the agencies may approve sales, ‘‘as 

long as the successor agrees to the obligations 

of the program;’’ 221 allow for accelerated 

depreciation of assets; 222 restrictions should 

not apply to IRUs or leases to research and 

education networks; 223 and modify the 

policy to accommodate the sale or lease to 

accommodate the normal five-year 

replacement cycle of broadband 

equipment.224

NTIA agrees with the majority of 

commenters proposing to relax restrictions 

on the post-award sale or lease of project 

assets and revises this section accordingly. 

As a result, awardees may petition for a 

waiver authorizing the sale or lease of assets 

at any time during the life of the awardfunded facilities and shall include 

supporting documentation and justification 

regarding why the petition should be granted. 

Dated: January 15, 2010. 

Lawrence E. Strickling, 

Assistant Secretary for Communications and 

Information. 

[FR Doc. 2010–1097 Filed 1–19–10; 11:15 am] 

BILLING CODE 3510–60–P 

DEPARTMENT OF AGRICULTURE 

Rural Utilities Service 

RIN 0572–ZA01 

Broadband Initiatives Program 

AGENCY: Rural Utilities Service, 

Department of Agriculture. 

ACTION: Notice of Funds Availability 

(NOFA) and solicitation of applications. 

SUMMARY: The Rural Utilities Service 

(RUS) announces its general policy and 

application procedures for the second 

round of funding under the broadband 

initiatives (the Second Round NOFA) 

established pursuant to the American 

Recovery and Reinvestment Act of 2009 

(Recovery Act) for the Broadband 

Initiatives Program (BIP) which 

provides loans, grants, and loan/grant 

combinations to facilitate broadband 

deployment in rural areas. In facilitating 

the expansion of broadband 


erowe on DSK5CLS3C1PROD with NOTICES2