27230 Federal Register / Vol. 61, No. 105 / Thursday, May 30, 1996 / Proposed Rules

1See 47 U.S.C. 390–393, and 397–399b (1988),

The Communications Act of 1934, as amended.

Unless otherwise noted, all statutory citations are

to title 47 of the United States Code.

2See 15 CFR Part 2301, published in the Federal

Register, Vol. 56, No. 226, p. 59168. (November 22,

1991).

DEPARTMENT OF COMMERCE

National Telecommunications and

Information Administration

15 CFR Part 2301

[Docket No. 960524148–6148–01]

RIN 0660–AA09

Public Telecommunications Facilities

Program

AGENCY: National Telecommunications

and Information Administration (NTIA),

Commerce.

ACTION: Notice of proposed rulemaking.

SUMMARY: The National

Telecommunications and Information

Administration (NTIA) is issuing a

Notice of Proposed Rulemaking. This

Notice is intended to clarify and/or

revise the rules and appendix governing

administration of the Public

Telecommunications Facilities Program

(PTFP). The PTFP is authorized to

provide matching grants to plan and

construct public telecommunications

facilities.1

NTIA intends to issue Final Rules

after it has received, evaluated and

addressed public comments on these

Proposed Rules.

DATES: Comments must be filed no later

than the close of business on July 15,

1996.

ADDRESSES: Persons and organizations

interested in commenting on the

Proposed Rules must send three copies

of any comments to: Public

Telecommunications Facilities Program,

NTIA, Department of Commerce, 14th

Street and Constitution Avenue, NW,

Room 4625, Washington, DC 20230.

Attention: Dennis Connors.

FOR FURTHER INFORMATION CONTACT:

Persons desiring further information

regarding the Proposed Rules should

contact Dennis Connors, Public

Telecommunications Facilities Program,

NTIA, DOC, 14th Street and

Constitution Avenue NW., Room 4625,

Washington, DC 20230, telephone (202)

482–5802.

SUPPLEMENTARY INFORMATION: In March

1995, President Clinton issued a

directive to Federal agencies regarding

their responsibilities under his

Regulatory Reform Initiative. This

initiative is part of the National

Performance Review and calls for

immediate, comprehensive regulatory

reform. The President directed that all

agencies undertake an exhaustive

review of all their regulations with an

emphasis on eliminating or modifying

those that are obsolete or otherwise in

need of reform. These Proposed Rules

represent the first step in NTIA’s

response to this directive for the PTFP.

In keeping with the Presidential

directive, NTIA has taken this

opportunity to thoroughly review the

existing 1991 Rules.2 We are proposing

a number of changes discussed below

which simplify or delete requirements.

In order to clarify the rules, we have

removed internal repetition as well as

duplication of requirements set forth for

grantees in other government rules and

regulations.

The change most readily apparent to

those familiar with the 1991 Rules is

that the Proposed Rules have been

completely reorganized to make it easier

for applicants and grantees to

understand the requirements of the

program. Additional headers have been

added and minor language changes

made to increase clarity. However,

unless discussed further below, the

intent of the regulations remains the

same as in the 1991 Rules.

The most significant policy change

contained in the Proposed Rules

includes a complete revision of the

evaluation criteria which formerly was

contained in two sections, § 2301.13

Funding Criteria for Construction

Applications and § 2301.14 Funding

Criteria for Planning Applications. The

Proposed Rules combine both

construction and planning evaluation

criteria into a new § 2301.17. The

Proposed Rules also add a description of

PTFP’s technical evaluation process in

§ 2301.16 and a description of the

selection process used to award grants

in § 2301.18.

Two clarifications have been made in

the funding priorities, which previously

were contained in the Appendix to the

1991 Rules and are now incorporated

into the Proposed Rules at § 2301.4.

NTIA proposes to modify the former

Priority 4, Replacement and

Improvement of Basic Equipment for

Existing Broadcast Stations. Under the

proposed § 2301.(4)(b)(4) NTIA has

redesignated this section as Priority 4,

Improvement of Public Broadcasting

Services and expanded its scope. In

addition to the projects formerly

included under Priority 4, NTIA now

will consider projects to construct

public broadcast stations to address

underserved needs in an area already

served by other public broadcasting

facilities. Under the previous funding

priorities in the Appendix to the 1991

Rules, NTIA considered applications

intended to serve areas already served

by other public broadcasting facilities

within the Special Applications

category while other broadcast projects

were considered within the funding

Priorities. NTIA believes that all

broadcast applications should be

evaluated within the funding priorities.

NTIA continues to believe that the

PTFP’s highest priorities are the

provision of a first signal to a geographic

area (Priority 1), urgent replacement of

equipment at the sole station serving a

geographic area (Priority 2), and first

local origination (Priority 3). Therefore,

projects to construct public broadcast

stations to address underserved needs in

an area already served by other public

broadcasting facilities will be

considered in Priority 4A, where they

will be considered with other

applications from stations in areas

already served by another public

broadcasting facility. The remainder of

Priority 4A and Priority 4B remain

unchanged from the Appendix to the

1991 Rules.

With the proposed revision of Priority

4, all broadcast applications have been

placed within the five funding

priorities. The Special Applications

category therefore will consist solely of

nonbroadcast projects and the language

of the Special Applications category has

been revised at § 2301.(4)(a).

Under § 390 of the Act, NTIA has the

authority to consider applications

which further the delivery of public

telecommunications services to as many

citizens in the United States as possible

by the most efficient and economical

means. NTIA recognizes that the issue

of conversion to advanced digital

technologies is of great importance for

the future viability of public

broadcasting facilities in the United

States. NTIA believes that public

broadcasters must adequately plan for

the transition to advanced digital

technologies and will therefore welcome

applications which will assist in

planning for the digital conversion of

public broadcasting facilities.

The following reviews each section of

the Proposed Rules and compares it

with similar sections in the 1991 Rules.

Section 2301.1 Program Purposes

The new § 2301.1 Program Purposes

replaces § 2301.2 Program Purposes in

the 1991 Rules. This section of the 1991

Rules for the most part repeated the

language contained in § 393(b) of the

Act. NTIA believes that the overall

purposes of the PTFP are better

expressed in § 390 of the Act. This
Federal Register / Vol. 61, No. 105 / Thursday, May 30, 1996 / Proposed Rules 27231

section of the Act, restated in the new

§ 2301.1, now serves as an introduction

to the PTFP Regulations.

Section 2301.2 Definitions

The new § 2301.2 Definitions repeats

for the most part § 2301.1 Definitions in

the 1991 Rules. The definition for the

term ‘‘Non-Federal financial support’’

has been deleted. The term is no longer

used since the requirement to report on

three years of Non-Federal financial

support (§ 2301.5(d)(2)(viii) of the 1991

Rules) has been deleted.

Three new definitions have been

added. A new definition for the term

‘‘planning’’ has been added to

complement the definition for the term

‘‘construction,’’ and a new definition

has been added for ‘‘closing date’’ since

the term is used throughout the

Proposed Rules. Further, the definition

of ‘‘Federal interest period’’ has been

expanded to clarify that limitations on

the use of Federally-funded public

telecommunications facilities, such as

the prohibition on the use PTFP funded

equipment for the broadcast of

advertisements (see § 2301.19(a)(5)) or

the restrictions on sectarian use (see

§ 2301.19(b)) extend for the useful life of

the equipment, whether or not this

period extends beyond the 10 year

Federal interest period. We are also

adopting the definition of ‘‘minorities’’

which was previously set forth in our

policy statement printed in the Federal

Register, Vol. 44, No. 111, p. 33032.

Section 2301.3 Applicant Eligibility

The new § 2301.3 Applicant Eligibility

was contained as a part of §§ 2301.4(a),

(b) and (e) Eligible Organizations and

Projects of the 1991 Final Rules. On

December 22, 1995, NTIA issued a

notice and an amendment to the PTFP

regulations in the Federal Register (60

FR 66491, Dec. 22, 1995) on its policy

with regard to sectarian activities. The

December 22, 1995 Notice revised the

previous § 2301.4 on eligibility. The

revisions outlined in that Notice are

included in the Proposed Rules in

§ 2301.3. The process of obtaining

preliminary eligibility determinations

(§ 2301.3(d)) has been simplified and

much of the prior language specifying

this procedure (§ 2301.4(f) in the 1991

Rules) has been eliminated.

Section 2301.4 Scope of Projects

The new § 2301.4 Scope of Projects

contains the material included in the

Appendix to the 1991 Rules dealing

with Special Applications and

Priorities. This section replaces

§ 2301.4(c) of the 1991 Rules, which for

the most part was another paraphrase of

§ 393(b) of the Act. We believe that it is

more useful to applicants that this new

§ 2301.4 contain the scope of eligible

projects developed by NTIA to achieve

the objectives of § 393(b) of the Act.

Significant changes in § 2301.4(a)

Special Applications and § 2301.4(b)(4)

Priority 4 applications were discussed

earlier in this document.

§ 2301.4(b)(1)(iv) adds language to

clarify how PTFP considers the

presence of AM daytime only stations in

determining the Priority for proposed

FM facilities serving a similar coverage

area. § 2301.4(c) parallels § 2301.3(d) of

the Proposed Rules in permitting

potential applicants to obtain

preliminary eligibility determinations.

§ 2301.4(d) maintains the intent of

§ 2301.4(f)(3) of the 1991 Rules that the

Agency will review all applications after

the closing date and that a preliminary

eligibility determination does not

guarantee that the Agency will accept a

future application.

Section 2301.5 Special Consideration

The new § 2301.5 Special

Consideration is based in part on

§ 2301.3 Special Consideration in the

1991 Rules. The section has been

revised to reflect language in the Act

(§ 392(f)). The sentence regarding a

requirement for special consideration of

a minimum 50% level of control of the

applicant by women and minorities has

been deleted.

Section 2301.6 Amount of Federal

Funding

The new § 2301.6 Amount of Federal

Funding is based upon § 2301.16

Amount of the Federal Grant in the

1991 Rules. Several sentences in this

section have been rearranged within the

section to group similar issues and

increase the clarity of the regulation. We

are also taking this opportunity to

clarify PTFP’s position on the level of

matching funds required for broadcast

equipment replacement, improvement

and augmentation projects and to make

it more consistent with treatment of

non-Federal cost share under OMB

Circular A–110 and 15 CFR Part 24. The

new § 2301.6(b)(ii) is a restatement of

NTIA policy previously published on

November 22, 1991 (Fed. Reg. Vo. 56,

No. 226, p. 59191) which indicates the

presumption of 50% Federal

participation for equipment

replacement, improvement and

augmentation projects. New language in

§ 2301.6(b)(2) clarifies NTIA’s existing

policy that obligating funds for

equipment before the closing date is

considered ownership or acquisition of

equipment and is not normally

permitted. However, NTIA will now

consider on a case-by-base basis

inclusion of equipment as matching

funds purchased prior to the closing

date due to unusual circumstances

when a clear and compelling showing is

made. § 2301.6(d) has been revised to

indicate that if a grantee obligates

Federal funds before the project start

date, those costs may be disallowed.

This revision replaces language in the

1991 Rules (§ 2301.23(a)–(c)) which

gave the Department the option of

terminating the entire grant.

Section 2301.7 Eligible and Ineligible

Project Costs

The new § 2301.7 Eligible and

Ineligible Project Costs is based on

§ 2301.17 Items and Costs Ineligible for

Federal funds from the 1991 Rules.

Specific information on the eligible and

ineligible costs has been deleted from

this section. The new language

formalizes a procedure that NTIA has

been following in recent years, which is

to annually publish a list of eligible and

ineligible costs in the Federal Register

as part of the solicitation of

applications. The list will be distributed

as part of the application materials.

§ 2301.7(c) has been revised to reflect

the change noted in the prior section

regarding § 2301.6(b)(2).

Section 2301.8 Submission of

Applications

Section 2301.9 Deferred Applications

Section 2301.10 Applications

Resulting From Catastrophic Damage or

Emergency Situations

The new §§ 2301.8 Submission of

Applications, 2301.9 Deferred

Applications and 2301.10 Applications

Resulting From Catastrophic Damage or

Emergency Situations are all derived

from § 2301.5 Application Procedures in

the 1991 Rules. The former § 2301.5 has

been divided into three sections for

clarity, but the application procedures

contained in the three new sections are

similar to that of the 1991 Rules.

Lengthy sections from the old § 2301.5

regarding the specific requirements to

be submitted in a new or deferred

application have been deleted (e.g.

§§ 2301.5(d)(2)(i–xxii)) and

2301.5(e)(4)(i–xi). Removing the specific

requirements from the Rules will give

NTIA the flexibility of future reductions

in requirements on the application form

to lessen the burden on applicants. For

example, in FY 1997, NTIA will, under

the Proposed Rules, delete the

requirement to submit the three year

report on Non-Federal Financial

Support (Exhibit B) now required by the

1991 Rules and contained in the current

application form. Specific requirements

of the application are now and will
27232 Federal Register / Vol. 61, No. 105 / Thursday, May 30, 1996 / Proposed Rules

continue to be contained in the

application form that will be distributed

as part of application materials.

The Proposed Rules drop the specific

requirement in the 1991 Rules

(§ 2301.5(d)(2)) that an applicant submit

‘‘an original and one copy of the Agency

application form’’ but now specifies at

the new § 2301.8(d) that the applicant

submit ‘‘the number of copies specified

by the Agency.’’ This will permit NTIA

to be flexible, within OMB guidelines,

on the number of applications forms

required in order to complete processing

of the applications in a timely manner.

Two paragraphs from the Additional

Information section in the 1991 Rules

(§ 2301.6(d)(1) and (2)) were relocated to

the new Submission of Applications

section (§ 2301.8(g) and (h)) to notify

potential applicants of the use of Name

Check forms and financial responsibility

determinations in the application

review process. In §§ 2301.8(g) and(h),

the Proposed Rules clarify the uses of

these reports in the application review

process. The new § 2301.8(i) is

Department of Commerce policy.

The new § 2301.10 Applications

Resulting From Catastrophic Damage or

Emergency Situations contains one

significant change from § 2301.5(g) of

the 1991 Rules. Under § 2301.10(a),

NTIA proposes to consider the complete

failure of basic equipment essential to a

station’s continued operation, even if

the failure is not the result of a natural

or manmade disaster, as an emergency

situation which may warrant immediate

consideration of an application.

Section 2301.11 Service of

Applications

The new § 2301.11 Service of

Applications was the former § 2301.7

Service of Applications in the 1991

Rules. Section § 2301.11(c) has been

clarified to indicate that applicants must

notify the State Single Points of Contact

(SPOC) in each state relevant to the

project that an application for funding

has been submitted to PTFP. In the

opening sentence to this section, we

further clarify that the notification to the

SPOC, the FCC and the state

telecommunications agencies need only

be a summary of the application, rather

than the full application required in

prior PTFP Rules. Future application

materials will provide guidance as to

what should be included in the

summary to provide adequate

notification to the requisite agencies

while reducing the notification burden

on all applicants.

Section 2301.12 Federal

Communications Commission

Authorizations

The new § 2301.12 Federal

Communications Commission

Authorizations was the former 2301.8

Federal Communications Commission

in the 1991 Rules. The section contains

a few minor editorial improvements in

(a), (c), and (g) with no change in intent.

Section 2301.13 Public Comments

The new § 2301.13 Public Comments

is based on the former § 2301.11 Public

Comments in the 1991 Rules. Under the

new § 2301.13(a), NTIA intends to

publish a list of all applications

received. This replaces the publishing of

a list of applications accepted for filing

(§ 2301.9(a) contained in the 1991

Rules.) The former listing of

applications accepted for filing was

often incomplete, as determinations of

eligibility were sometimes made after

the publication of the notice. NTIA

believes that publication of a full listing

of applications received can be done

soon after the closing date, and better

serves the public by permitting a longer

period of time for receipt of public

comments. § 2301.13(c) clarifies that

copies of the applications are available

for public inspection in the NTIA

offices. The new § 2301.13(d) has been

modified to clarify that only those

public comments which oppose an

application must be served on the

applicant. § 2301.13(e) clarifies the use

of the public comments.

Section 2301.14 Supplemental

Application Information

The new § 2301.14 Supplemental

Application Information is based on

§ 2301.6 Additional Information from

the 1991 Rules. Paragraph (b)(4) of this

section has been revised to reduce the

burden on applicants. Where the 1991

rules require notification to NTIA of any

changes in the applicants ‘‘board

structure, in the applicant’s 501(c)(3)

status, or in the applicant’s Articles of

Incorporation or Bylaws,’’ the Proposed

Rules only require notification to NTIA

of changes ‘‘that affect the applicant’s

eligibility.’’ In the new organization of

the Proposed Rules, several paragraphs

have been moved into or out of this

section. § 2301.15(f)(1) of the 1991 Rules

was moved into this section and is now

contained in the new § 2301.14(d). As

previously noted, two paragraphs from

the Additional Information section in

the 1991 Rules (§§ 2301.6(d) (1) and (2))

were relocated to the new Submission of

Applications section (§§ 2301.5 (h) and

(i)).

Section 2301.15

Withdrawal of Applications

The new § 2301.15 Withdrawal of

Applications is taken from § 2301.9(g) of

the 1991 Rules and placed in this

separate section for clarity. The section

has been slightly revised with no change

in intent.

Section 2301.16 Technical Evaluation

Process

The new § 2301.16 Technical

Evaluation Process combines elements

from several sections in the 1991 Rules.

The new § 2301.16(a) is based on

§ 2301.13 of the 1991 Rules. §§ 2301.16

(c), (d), and (e) parallel the procedures

currently used by NTIA in the review of

the PTFP applications and are similar to

the information contained in the Notice

of Closing Date for the FY 1996 Grant

Cycle, published in the Federal Register

on February 22, 1996 (FR xxx). The new

§ 2301.16(d) is also based on §§ 2301.12

(b) and (c) of the 1991 Rules.

Section 2301.17 Evaluation Criteria for

Construction and Planning Applications

The new § 2301.17 Evaluation Criteria

for Construction and Planning

Applications is totally new and replaces

§ 2301.13 Funding Criteria for

Construction Applications and

§ 2301.14 Funding Criteria for Planning

Applications in the 1991 Rules. The

new § 2301.17 proposes six broad

criteria upon which the applications

will be evaluated. These are: Project

Objectives, Applicant Qualifications,

Urgency, Financial Qualifications,

Special Consideration, and either

Technical Qualifications (for

construction projects) or Planning

Qualifications (for planning projects).

This new section combines the

evaluation criteria for planning and

construction applications in one place,

reduces redundancy and clarifies the

evaluation criteria. The Agency will

provide each applicant with guidance in

the application materials on the

appropriate type of documentation to

meet each of the evaluation criteria

which reflects the type and priority of

the application being proposed. We

have not assigned a weight to each of

the criterion. In prior years, we have

weighted all criteria equally. We are

soliciting comment on the appropriate

weights to be assigned.

Section 2301.18 Selection Process

The new § 2301.18 Selection Process

is a new section which serves to

distinguish the evaluation factors used

in § 2301.17 from those additional

factors used in the selection of the grant.

§§ 2301.18 (a) and (b) parallel the

procedures currently used by NTIA in
Federal Register / Vol. 61, No. 105 / Thursday, May 30, 1996 / Proposed Rules 27233

the selection of the PTFP applications

for funding and are similar to the

information contained in the Notice of

Closing Date for the FY 1996 Grant

Cycle, published in the Federal Register

on February 22, 1996 (Fed. Reg. Vol. 61,

No. 36, p. 6912). The new § 2301.18(c)

is the same as § 2301.8(h) of the 1991

Rules. The new §§ 2301.16 (d) and (e)

are based on § 2301.15 (a) and (b) of the

1991 Rules.

Section 2301.19 General Conditions

Attached to the Federal Award

The new § 2301.19 General

Conditions Attached to the Federal

Award is the first of several new

sections which are derived from

§ 2301.22 Conditions Attached to the

Federal Award in the 1991 Rules. The

new § 2301.19 combines, in order, the

following paragraphs from § 2301.22 of

the 1991 Rules, (b)(1), (2), (3), (16), (4),

(5), (11), and 2301.22(d). The remainder

of § 2301.22 in the 1991 Rules has been

included in other sections as discussed

below or deleted as unnecessary. The

new § 2301.19(c) is based on

§ 2301.23(c)(1) of the 1991 rules with

the last two sentences of the new

§ 2301.19(c) added for clarity.

Section 2301.20 Schedules and

Reports

The new § 2301.20 Schedules and

Reports is based on §§ 2301.22(b) (8)

and (12) Conditions Attached to the

Federal Grant in the 1991 Rules. These

two paragraphs have been given their

own section for clarity. Several

adjoining paragraphs, including

§§ 2301.22(b) (9)–(11) and (13)–(17)

have been deleted as unnecessary as

they are redundant with other sections

of the Proposed Rules or restate other

law or OMB circulars.

Section 2301.21 Payment of Federal

Funds

The new § 2301.21 Payment of

Federal Funds is based on § 2301.18

Payment of the Federal Grant of the

1991 Rules. § 2301.18(c) was removed

from this section of the 1991 Rules and

was relocated to the new § 2301.20(c) as

more appropriate.

Section § 2301.22 Protection,

Acquisition and Substitution of

Equipment

The new § 2301.22 Protection,

Acquisition and Substitution of

Equipment, is based on §§ 2301.22(a)

and 2301.22(b)(7) of the 1991 Rules.

Several portions of these paragraphs

have been deleted as redundant with

other sections of the Proposed Rules.

The new § 2301.22 includes several

changes designed to provide the Agency

with flexibility in administering the

program and to lessen the regulatory

impact on grantees. These changes deal

with the conditions under which a

grantee is required to provide evidence

of liens, insurance and leases sufficient

to protect the Federal government’s 10

year reversionary interest in the PTFP

funded equipment. The 1991 Rules do

not provide NTIA with any flexibility in

requiring these items. The Proposed

Rules discuss the requirements that a

grantee protect the Federal

government’s interest in PTFP funded

equipment by obtaining insurance,

having sufficient lease/ownership rights

to property, and securing the Federal

interest by a lien. However, the

Proposed Rules delete specific ways that

these items must be documented to the

Agency. For example, the new

§ 2301.22(a) reduces a prior ‘‘The

grantee shall’’ in the 1991 Rules

(§ 2301.18(a)) to the lesser ‘‘The Agency

may require a grantee to’’ provide liens

within 90 days after a grant award is

received. Language reflecting this

approach also appears in

§§ 2301.22(g)(4), 2301.23((b)(8) and

2301.25(b). Likewise, specific

requirements for an attorney’s letter of

certification on property lease/

ownership right is also deleted from the

regulations. NTIA would like to explore

alternate ways to protect the Federal

interest which will reduce the burden

on grantees. We are therefore proposing

to revise these sections of the Proposed

Rules to permit this future flexibility.

The new § 2301.22(e) replaces

§ 2301.22(c) of the 1991 Rules. NTIA is

proposing to delete several restrictions

on the lease of equipment, specifically

the former § 2301.22(c)(1), which

required that the lease be for ‘‘not less

than the (10) years,’’ and § 2301.22(c)(2),

which limited the cost of the lease to

‘‘not be more than the total of the nonFederal share of the matching funds.’’

NTIA believes that these statements

were overly restrictive and now

proposes to consider any lease that is to

the ‘‘benefit to the Federal government’’

(new § 2301.22(e)(1)).

The new §§ 2301.22 (f)–(h) are based

on § 2301.23 (c) and (d) Grant

Suspension, Terminations and

Transfers in the 1991 Rules and have

been revised for clarity.

Section 2301.23 Completion of

Projects

The new § 2301.23 Completion of

Projects is based on § 2301.20

Completion of Projects in the 1991

Rules. Several paragraphs have been

renumbered and minor changes have

been made in §§ 2301.23(a)(4) and (b)(1)

to improve clarity. The requirement in

§ 2301.23(b)(4) to provide a copy of the

insurance policy has been dropped

inasmuch as the same paragraph

requires that the grantee must certify its

insurance coverage. Paragraph

§ 2301.24(c) was contained in § 2301.18

in the 1991 Rules and is more

appropriate in this section. This

sentence has been revised to clarify that

the project completion date is usually

the date on which the project period

expires unless the grantee certifies in

writing prior to the project period

expiration date that the project is

complete.

Section 2301.24 Final Federal

Payment

The new § 2301.24 Final Federal

Payment is a revision of § 2301.16(d) of

the 1991 Rules. This paragraph was

given its own section in the Proposed

Rules for clarity. The language of the

section has been simplified without

changing the intent.

Section 2301.25 Retention of Record

and Annual Status Reports

The new § 2301.25 Retention of

Records and Annual Status Reports is

based on § 2301.19 Retention of Records

and § 2301.21 Annual Status Reports for

Construction Projects in the 1991 Rules.

The section was shortened and the

language retained notifies applicants

and grantees of NTIA’s basic record

keeping requirements. Further

information on records retention will be

included in materials sent to grantees at

the time an award is made. The detailed

procedural information that is required

in the annual status report has been

deleted from the proposed rule and will

be provided to grantees at the time a

project is closed out.

Section 2301.26 Waivers

The new § 2301.26 Waivers is based

on § 2301.25 Waivers in the 1991 Rules.

A sentence was added to clarify the

Administrator’s waiver authority.

One significant section of the 1991

Rules has been deleted in its entirety.

This is § 2301.10 Appeals. Applicants

are given the opportunity to request a

preliminary determination of eligibility,

and are provided written notice. The

Appeals process was rarely used.

We are also taking this opportunity to

restate several long standing PTFP

policies which were published in the

preambles of previous PTFP rules. The

following policies remain in effect:

Evidence of Tax-Exempt Status

Applicants who are eligible for a

Section 501(c)(3) exemption from the

IRS or the equivalent exemption from

the Commonwealth of Puerto Rico must
27234 Federal Register / Vol. 61, No. 105 / Thursday, May 30, 1996 / Proposed Rules

submit a copy of that exemption.

Applicants who are ineligible for

Section 501(c)(3) exemption but who

can demonstrate nonprofit status by

showing an applicable State tax

exemption will be considered on a caseby-case basis. They must submit: (a)

evidence of their State tax-exempt

status; (b) citation to, and a copy of, the

State statutory provisions governing that

exemption; and (c) a brief statement

explaining why they lack a Section

501(c)(3) exemption. (Fed. Reg. Vol. 44,

No. 104, p. 30899)

Equipment Which Becomes Obsolete

Before the end of the 10 Year Period of

Federal Interest

In the case of equipment which

become obsolete or wears out before the

10-year period of Federal interest

expires, we will permit the trade-in or

sale of the equipment and application of

the remaining portion of the 10-year

period to the new equipment. (Fed. Reg.

Vol. 44, No. 104, p. 30910)

Selection of Priority

In preparing the narrative portions of

its application, each applicant should

state under which priority it desires

NTIA to consider its application. In

doing so, each applicant makes sure that

its application contains sufficient

documentation to justify its

qualification under the selected priority.

NTIA will then evaluate the application

with the selected priority unless the

Agency determines that the priority

selected by the applicant is not

supported by the documentation

provided. Each applicant will be

notified of any change in the priority

under which its application is to be

considered. Such notifications will be in

writing and will not be subject to

appeal. (Fed. Reg. Vol. 47, No. 228, p.

53653)

Award of Deferred Applications

The Administrator retains the

discretion to award grants to deferred

applications at any time where the

Administrator can determine with

reasonable certainty that the particular

project is exceptionally meritorious (on

the basis of the Agency’s preliminary

determination of all other applications

within the priority) and that the Agency

would fund the project after completing

the evaluation of all the application in

the priority (on the basis of the Agency’s

prior experience in making grants.)

Under this process, the Agency will be

able to fund applications that the

Agency had deferred in the prior year

because of technical problems (such as

the inability to obtain the necessary FCC

authorizations) which have since been

eliminated. (Fed. Reg. Vol. 47. No. 50,

p. 11232.)

Support for Salary Expenses

NTIA regards its primary mandate to

be funding the acquisition of equipment

and only secondarily the funding of

salary expenses, even when allowed by

law. Moreover, NTIA notes that the

competition for PTFP funding remains

intense. To ensure that PTFP monies are

distributed as effectively as possible in

this competitive atmosphere, NTIA

must weigh carefully its support for any

project cost not directly involved with

the purchase of equipment.

Therefore, NTIA generally will not

fund salary expenses, including staff

installation costs, pre-application legal

and engineering fees, and preoperational expenses of new entities.

NTIA will support such costs only when

the applicant demonstrates that

exceptional need exists or that

substantially greater efficiency would

result from the use of staff installation

instead of contractor installation.

As regards the installation of

transmission equipment, NTIA strongly

favors the use of either manufacturer or

professional contractor personnel and

commonly funds these costs. NTIA

believes that the value of transmission

equipment and the complicated nature

of its installation require expertise

beyond that normally found on station

staffs.

NTIA will rarely support requests for

assistance for the installation of studio

and test equipment, whether that

installation is by staff or by contract

employees. Such installation is

normally of minimum difficulty, and

the associated installation costs should

be absorbed in the recipient’s normal

operating budget. Again, NTIA will take

into account demonstrations of

exceptional need. (Fed. Reg. Vol. 56, No.

226, p. 59172)

It has been determined that this rule

is not significant for purposes of

Executive Order (E.O.) 12866.

A Regulatory Flexibility Analysis is

not required under The Regulatory

Flexibility Act (5 U.S.C. 601 et seq.)

because the rules were not required to

be promulgated as proposed rules before

issuance as final rules by § 553 of the

Administrative Procedures Act (5 U.S.C.

553) or by any other law. This rule does

not contain policies with Federalism

implications sufficient to warrant

preparation of a Federalism assessment

under Executive Order 12612.

The Department has determined that

these rules will not significantly affect

the quality of the human environment.

Therefore, no draft or final

Environmental Impact Statement has

been or will be prepared.

Notwithstanding any other provision of

law, no person is required to respond to

nor shall a person be subject to a

penalty for failure to comply with a

collection of information subject to the

requirements of the Paperwork

Reduction Act unless that collection of

information displays a currently valid

OMB Control Number.

The Office of Management and Budget

has approved the information collection

requirements contained in these rules

pursuant to the Paperwork Reduction

Act under OMB Control Nos. 0660–

0003, 0660–0001 and 0605–0001. The

public reporting burden for the

application requirements vary from 16

hours to 200 hours with an estimated

average of 125 hours per application,

including associated exhibits; the

reporting and record keeping burden for

the grant monitoring reports vary from

1 to 24 hours depending on the

respective requirement; and, the

reporting burden for the name-check

form (CD–346) is estimated at 15

minutes. These estimates include the

time for reviewing instructions,

searching existing data sources,

gathering and maintaining the data

needed, and completing and reviewing

the collections of information. Send

comments regarding these burden

estimates, or any other aspects of the

collections of information, including

suggestions for reducing this burden, to

the Office of Policy and Coordination

and Management, NTIA, U.S.

Department of Commerce, Washington,

D.C. 20230; and to the Office of

Information and Regulatory Affairs,

Office of Management and Budget,

Washington, D.C. 20503 (Attention:

NTIA Desk Officer).

(Catalogue of Federal Domestic Assistance

No. 11.550)

List of subjects in 15 CFR Part 2301

Administrative procedure, Grant

programs—communications, Reporting

requirements, Telecommunications.

Larry Irving,

Administrator.

Part 2301 of Title 15, Code of Federal

Regulations, is proposed to be revised to

read as follows:

PART 2301—PUBLIC

TELECOMMUNICATIONS FACILITIES

PROGRAM

Subpart A—General

Sec.

2301.1 Program purposes.

2301.2 Definitions.
Federal Register / Vol. 61, No. 105 / Thursday, May 30, 1996 / Proposed Rules 27235

Subpart B—Application Requirements

2301.3 Applicant eligibility.

2301.4 Scope of projects.

2301.5 Special consideration.

2301.6 Amount of Federal funding.

2301.7 Eligible and ineligible project costs.

2301.8 Submission of applications.

2301.9 Deferred applications.

2301.10 Applications resulting from

catastrophic damage or emergency

situations.

2301.11 Service of applications.

2301.12 Federal Communications

Commission authorizations.

2301.13 Public comments.

2301.14 Supplemental application

information.

2301.15 Withdrawal of applications.

Subpart C: Evaluation and Selection

Process

2301.16 Technical evaluation.

2301.17 Evaluation criteria for construction

and planning applications.

2301.18 Selection process.

Subpart: D: Post-Award Requirements

2301.19 General conditions attached to the

Federal Award.

2301.20 Schedules and reports.

2301.21 Payment of Federal funds.

2301.22 Protection, acquisition and

substitution of equipment.

Subpart E: Completion of Projects

2301.23 Completion of projects.

2301.24 Final Federal payment.

2301.25 Retention of records and annual

status reports.

Subpart F: Waivers

2301.26 Waivers.

Authority: The Public

Telecommunications Financing Act of 1978,

as amended, 47 U.S.C. §§ 390–393 (Act).

(Catalog of Federal Domestic Assistance No.

11.550)

Subpart A—General

§ 2301.1 Program Purposes.

Pursuant to section 390 of the Act,

(The Communications Act of 1934, as

amended), the purpose of the Public

Telecommunications Facilities Program

(PTFP) is to assist, through matching

grants, in the planning and construction

of public telecommunications facilities

in order to achieve the following

objectives:

(a) Extend delivery of public

telecommunications services to as many

citizens in the United States as possible

by the most efficient and economical

means, including the use of broadcast

and nonbroadcast technologies;

(b) Increase public

telecommunications services and

facilities available to, operated by, and

owned by minorities and women; and

(c) Strengthen the capability of

existing public television and radio

stations to provide public

telecommunications services to the

public.

§ 2301.2 Definitions.

Act means Part IV of Title III of the

Communications Act of 1934, 47 U.S.C.

390–393 and 397–399b, as amended.

Administrator means the Assistant

Secretary for Communications and

Information of the United States

Department of Commerce who is also

Administrator of the National

Telecommunications and Information

Administration.

Agency means the National

Telecommunications and Information

Administration of the United States

Department of Commerce.

Broadcast means the distribution of

electronic signals to the public at large

using television (VHF or UHF) or radio

(AM or FM) technologies.

Closing date means the date which

the Administrator sets as the deadline

for the receipt of applications during a

grant cycle.

Construction (as applied to public

telecommunications facilities) means

acquisition (including acquisition by

lease), installation, and improvement of

public telecommunications facilities

and preparatory steps incidental to any

such acquisition, installation or

improvement.

Department means the United States

Department of Commerce.

FCC means the Federal

Communications Commission.

Federal interest period means the

period of time during which the Federal

government retains a reversionary

interest in all facilities constructed with

Federal grant funds. This period begins

with the purchase of the facilities and

continues for ten (10) years after the

official completion date of the project.

Although OMB Circular A–110

§§ ll.33 and ll.34 and 15 CFR

24.31 and 24.32, specify that the Federal

government maintains a reversionary

interest in the facilities for as long as the

facilities are needed for the originally

authorized purpose, PTFP’s authorizing

statute (47 U.S.C. 392(g)) limits the

reversionary period for ten years for

purposes of this program. However,

Federal limitations on the use of the

facilities survive for the useful life of the

facilities whether or not this period

extends beyond the ten year Federal

interest period.

Minorities means American Indians,

Alaska Natives, Asian or Pacific

Islanders, Hispanics, and Blacks, not of

Hispanic Origin.

Nonbroadcast means the distribution

of electronic signals by a means other

than broadcast technologies. Examples

of nonbroadcast technologies are

Instructional Television Fixed Service

(ITFS), satellite systems, and coaxial or

fiber optic cable.

Noncommercial educational

broadcast station or public broadcast

station means a television or radio

broadcast station that is eligible to be

licensed by the FCC as a noncommercial

educational radio or television

broadcast station and that is owned

(controlled) and operated by a state, a

political or special purpose subdivision

of a state, public agency or nonprofit

private foundation, corporation,

institution, or association, or owned

(controlled) and operated by a

municipality and transmits only

noncommercial educational, cultural or

instructional programs.

Noncommercial telecommunications

entity means any enterprise that is

owned (controlled) and operated by a

state, a political or special purpose

subdivision of a state, a public agency,

or a nonprofit private foundation,

corporation, institution, or association;

and that has been organized primarily

for the purpose of disseminating audio

or video noncommercial educational,

cultural or instructional programs to the

public by means other than a primary

television or radio broadcast station,

including, but not limited to, coaxial

cable, optical fiber, broadcast

translators, cassettes, discs, satellite,

microwave or laser transmission.

Nonprofit (as applied to any

foundation, corporation, institution, or

association) means a foundation,

corporation, institution, or association,

no part of the net earnings of which

inures, or may lawfully inure, to the

benefit of any private shareholder or

individual.

Operational cost means those

approved costs incurred in the

operation of an entity or station such as

overhead labor, material, contracted

services (such as building or equipment

maintenance), including capital outlay

and debt service.

Planning (as applied to public

telecommunications facilities) means

activities to form a project for which

PTFP construction funds may be

obtained.

Pre-operational costs means all

nonconstruction costs incurred by new

public telecommunications entities

before the date on which they began

providing service to the public, and all

nonconstruction costs associated with

the expansion of existing stations before

the date on which such expanded

capacity is activated, except that such

costs shall not include any portion of

the salaries of any personnel employed

by an operating public

telecommunications entity.
27236 Federal Register / Vol. 61, No. 105 / Thursday, May 30, 1996 / Proposed Rules

PTFP means the Public

Telecommunications Facilities Program,

which is administered by the Agency.

PTFP Director means the Agency

employee who recommends final action

on public telecommunications facilities

applications and grants to the

Administrator.

Public telecommunications entity

means any enterprise which is a public

broadcast station or noncommercial

telecommunications entity and which

disseminates public

telecommunications services to the

public.

Public telecommunications facilities

means apparatus necessary for

production, interconnection, captioning,

broadcast, or other distribution of

programming, including but not limited

to studio equipment, cameras,

microphones, audio and video storage

or processors and switchers, terminal

equipment, towers, antennas,

transmitters, remote control equipment,

transmission line, translators,

microwave equipment, mobile

equipment, satellite communications

equipment, instructional television

fixed service equipment, subsidiary

communications authorization

transmitting and receiving equipment,

cable television equipment, optical fiber

communications equipment, and other

means of transmitting, emitting, storing,

and receiving images and sounds or

information, except that such term does

not include the buildings to house such

apparatus (other than small equipment

shelters that are part of satellite earth

stations, translators, microwave

interconnection facilities, and similar

facilities).

Public telecommunications services

means noncommercial educational and

cultural radio and television programs,

and related noncommercial

instructional or informational material

that may be transmitted by means of

electronic communications.

Sectarian means that which has the

purpose or function of advancing or

propagating a religious belief.

State includes each of the fifty states,

the District of Columbia, the

Commonwealth of Puerto Rico, the

Virgin Islands, Guam, American Samoa,

and the Northern Mariana Islands.

System of public telecommunications

entities means any combination of

public telecommunications entities

acting cooperatively to produce, acquire

or distribute programs, or to undertake

related activities.

Subpart B—Application Requirements

§ 2301.3 Applicant eligibility.

(a) To apply for and receive a PTFP

Construction or Planning Grant, an

applicant must be:

(1) A public or noncommercial

educational broadcast station;

(2) A noncommercial

telecommunications entity;

(3) A system of public

telecommunications entities;

(4) A nonprofit foundation,

corporation, institution, or association

organized primarily for educational or

cultural purposes; or,

(5) A state, local, or Indian tribal

government (or agency thereof), or a

political or special purpose subdivision

of a state.

(b) An applicant whose proposal

requires an authorization from the FCC

must be eligible to receive such

authorization.

(c) If an applicant does not meet the

eligibility requirements of this section,

the application may be rejected and

returned without further consideration.

(d) An applicant may request a

preliminary determination of eligibility

any time prior to the closing date.

§ 2301.4 Scope of projects.

An eligible applicant may file an

application with the Agency for a

planning or construction grant. To

achieve the objectives set forth at 47

U.S.C. 393(b), the Agency has developed

the following categories. Each

application shall be identified as a

broadcast or nonbroadcast project and

must fall within at least one of the

following categories:

(a) Special applications. NTIA

possesses the discretionary authority to

recommend awarding grants to eligible

nonbroadcast applicants whose

proposals are so unique or innovative

that they do not clearly fall within the

priorities listed in paragraph (b) of this

section. Innovative projects submitted

under this category must address

demonstrated and substantial

community needs (e.g., service to the

blind or deaf and nonbroadcast projects

offering educational or instructional

services).

(b) Priorities. (1) Priority 1—Provision

of Public Telecommunications Facilities

for First Radio and Television Signals to

a Geographic Area. Within this category,

NTIA establishes three subcategories:

(i) Priority 1A. Projects that include

local origination capacity. This

subcategory includes the planning or

construction of new facilities that can

provide a full range of radio and/or

television programs, including material

that is locally produced. Eligible

projects include new radio or television

broadcast stations, new cable systems,

or first public telecommunications

service to existing cable systems,

provided that such projects include

local origination capacity.

(ii) Priority 1B. Projects that do not

include local origination capacity. This

subcategory includes projects such as

increases in tower height and/or power

of existing stations and construction of

translators, cable networks, and repeater

transmitters that will result in providing

public telecommunications services to

previously unserved areas.

(iii) Priority 1C. Projects that provide

first nationally distributed

programming. This subcategory

includes projects that provide satellite

downlink facilities to noncommercial

radio and television stations that would

bring nationally distributed

programming to a geographic area for

the first time.

(iv) Priority 1 and its subcategories

apply only to grant applicants proposing

to plan or construct new facilities to

bring public telecommunications

services to geographic areas that are

presently unserved, i.e., areas that do

not receive public telecommunications

services (It should be noted that

television and radio are considered

separately for the purposes of

determining coverage. In reviewing

applications from FM stations that

propose to serve, or that already serve,

areas covered by AM-daytime only

stations, PTFP will evaluate the amount

of service provided via the AM-daytime

only station in determining whether the

FM proposal qualifies for a Priority 1 or

Priority 2, as appropriate.)

(v) An applicant proposing to plan or

construct a facility to serve a

geographical area that is presently

unserved should indicate the number of

persons who would receive a first

public telecommunications signal as a

result of the proposed project.

(2) Priority 2—Replacement of Basic

Equipment of Existing Essential

Broadcast Stations.

(i) Projects eligible for consideration

under this category include the urgent

replacement of obsolete or worn out

equipment at ‘‘essential stations’’ (i.e.,

existing broadcast stations that provide

either the only public

telecommunications signal or the only

locally originated public

telecommunications signal to a

geographical area).

(ii) To show that the urgent

replacement of equipment is necessary,

applicants must provide documentation

indicating excessive downtime, or a

high incidence of repair (i.e., copies of

repair records, or letters documenting
Federal Register / Vol. 61, No. 105 / Thursday, May 30, 1996 / Proposed Rules 27237

non-availability of parts). Additionally,

applicants must show that the station is

the only public telecommunications

station providing a signal to a

geographical area or the only station

with local origination capacity in a

geographical area.

(iii) The distinction between Priority

2 and Priority 4 is that Priority 2 is for

the urgent replacement of basic

equipment for essential stations. Where

an applicant seeks to ‘‘improve’’ basic

equipment in its station (i.e., where the

equipment is not ‘‘worn out’’), or where

the applicant is not an essential station,

NTIA would consider the applicant’s

project under Priority 4.

(3) Priority 3—Establishment of a First

Local Origination Capacity in a

Geographical Area.

(i) Projects in this category include

the planning or construction of facilities

to bring the first local origination

capacity to an area already receiving

public telecommunications services

from distant sources through translators,

repeaters, or cable systems,

(ii) Applicants seeking funds to bring

the first local origination capacity to an

area already receiving some public

telecommunications services may do so,

either by establishing a new (and

additional) public telecommunications

facility, or by adding local origination

capacity to an existing facility. A source

of a public telecommunications signal is

distant when the geographical area to

which the source is brought is beyond

the grade B contour of the origination

facility.

(4) Priority 4—Improvement of Public

Broadcasting Services:

(i) Projects eligible for consideration

under this category are intended to

improve the delivery of public

broadcasting services to a geographic

area. These projects include the

establishment of a public broadcast

facility to serve a geographic area

already receiving public

telecommunications services, projects

for the replacement of basic obsolete or

worn-out equipment at existing public

broadcasting facilities and the

upgrading of existing origination or

delivery capacity to current industry

performance standards (e.g.,

improvements to signal quality, and

significant improvements in equipment

flexibility or reliability). As under

Priority 2, applicants seeking to replace

or improve basic equipment under

Priority 4 should show that the

replacement of the equipment is

necessary by including in their

applications data indicating excessive

downtime, or a high incidence of repair

(such as documented in repair records).

Within this category, NTIA establishes

two subcategories:

(ii) Priority 4A.

(A) Applications to replace urgently

needed equipment from public

broadcasting stations that do not meet

the Priority 2 criteria because they do

not provide either the only public

telecommunications signal or the only

locally originated public

telecommunications signal to a

geographic area. NTIA will also

consider applications that improve as

well as replace urgently needed

production-related equipment at public

radio and television stations that do not

qualify for Priority 2 consideration but

that produce, on a continuing basis,

significant amounts of programming

distributed nationally to public radio or

television stations.

(B) The establishment of public

broadcasting facilities to serve a

geographic area already receiving public

telecommunications services. The

applicant must demonstrate that it will

address underserved needs in an area

which significantly differentiates its

service from what is already available in

its service area.

(C) The acquisition of satellite

downlinks for public radio stations in

areas already served by one or more fullservice public radio stations. The

applicant must demonstrate that it will

broadcast a program schedule that does

not merely duplicate what is already

available in its service area.

(D) The acquisition of the necessary

items of equipment to bring the

inventory of an already-operating

station to the basic level of equipment

requirements established by PTFP. This

is intended to assist stations that went

on the air with a complement of

equipment well short of what the

Agency considers as the basic

complement.

(iii) Priority 4B. The improvement

and non-urgent replacement of

equipment at any public broadcasting

station.

(5) Priority 5 Augmentation of

Existing Broadcast Stations. Projects in

this category would equip an existing

station beyond a basic capacity to

broadcast programming from distant

sources and to originate local

programming.

(i) Priority 5A. Projects to equip

auxiliary studios at remote locations, or

to provide mobile origination facilities.

An applicant must demonstrate that

significant expansion in public

participation in programming will

result. This subcategory includes mobile

units, neighborhood production studios,

or facilities in other locations within a

station’s service area that would make

participation in local programming

accessible to additional segments of the

population.

(ii) Priority 5B. Projects to augment

production capacity beyond basic level

in order to provide programming or

related materials for other than local

distribution. This subcategory would

provide equipment for the production of

programming for regional or national

use. Need beyond existing capacity

must be justified.

(c) An applicant may request a

preliminary determination of whether a

proposed project fits within at least one

of the categories listed in this section

any time prior to the closing date.

(d) All applications will be reviewed

after the closing date. If an application

does not fall within one of the listed

categories, it may be rejected and

returned without further consideration.

§ 2301.5 Special consideration.

In accordance with section 392(f) of

the Act, the Agency will give special

consideration to applications that foster

ownership of, operation of, and

participation in public

telecommunications entities by

minorities and women. The special

consideration element is provided as

one of several funding criteria contained

in the regulations, specifically, at 15

CFR section 2301.17(b)(6).

§ 2301.6 Amount of Federal funding.

(a) Planning grants. The Agency may

provide up to one hundred (100)

percent of the funds necessary for the

planning of a public

telecommunications construction

project.

(b) Construction grants. (1) A Federal

grant for the construction of a public

telecommunications facility may not

exceed seventy-five (75) percent of the

amount determined by the Agency to be

the reasonable and necessary cost of

such project.

(i) Seventy-five (75) percent Federal

funding will be the general presumption

for projects to activate stations or to

extend service.

(ii) Fifty (50) percent Federal funding

will be the general presumption for the

replacement, improvement or

augmentation of equipment. A showing

of extraordinary need (i.e. small

community-licensee stations or a station

that is licensed to a large institution

[e.g., a college or university]

documenting that it does not receive

direct or in-kind support from the larger

institution), or an emergency situation

will be taken into consideration as

justification for grants of up to 75% of

the total project cost for such proposals.
27238 Federal Register / Vol. 61, No. 105 / Thursday, May 30, 1996 / Proposed Rules

(2) Since the purpose of the PTFP is

to provide financial assistance for the

acquisition of public

telecommunications facilities, Total

Project Costs do not normally include

the value of eligible apparatus owned or

acquired by the applicant prior to the

closing date. Inclusion of equipment

purchased prior to the closing date will

be considered on a case-by-case basis

only when clear and compelling

justifications are provided to PTFP.

Obligating funds—either in whole or in

part—for equipment before the closing

date is considered ownership or

acquisition of equipment. In like

manner, accepting title to donated

equipment prior to the closing date is

considered ownership or acquisition of

equipment.

(c) No part of the grantee’s matching

share of the eligible project costs may be

met with funds:

(1) Paid by the Federal government,

except where the use of such funds to

meet a Federal matching requirement is

specifically and expressly authorized by

the relevant Federal statute, or

(2) Supplied to an applicant by the

Corporation for Public Broadcasting,

except upon a clear and compelling

showing of need.

(d) No funds from the Federal share

of the total project cost may be obligated

until the award period start date. If an

applicant or recipient obligates

anticipated Federal Award funds before

the start date, the Department may

refuse to offer the award or, if the award

has already been granted, disallow those

costs of the grant. After the closing date,

the applicant may, at its own risk,

obligate non-Federal matching funds for

the acquisition of proposed equipment.

§ 2301.7 Eligible and ineligible project

costs.

(a) Each year the Agency reviews its

list of eligible and ineligible equipment,

supplies, and costs. The list is

published in the Federal Register as

part of the solicitation for applications

and a copy is provided with every

application package for PTFP grants.

(b) All broadcast equipment that a

grantee acquires under this program

shall be of professional broadcast

quality. An applicant proposing to

utilize nonbroadcast technology shall

propose and purchase equipment that is

compatible with broadcast equipment

wherever the two types of apparatus

interface.

(c) Total project costs do not include

the value of eligible apparatus owned or

acquired by the applicant prior to the

closing date unless approved by PTFP

on a case-by-case basis in writing

pursuant to § 2301.6(b)(2).

§ 2301.8 Submission of applications.

(a) Applications can be obtained from

the following address: Public

Telecommunications Facilities Program,

NTIA/DOC, 14th Street and Constitution

Avenue NW., Room H–4625,

Washington, DC 20230.

(b) The Administrator shall select and

publish in the Federal Register a closing

date by which applications for funding

in a current fiscal year are to be filed.

(c) All applications, whether mailed

or hand delivered, must be received by

the Agency at the address listed in the

annual Federal Register announcement

requesting applications at or before 5:00

p.m. on the closing date. Applications

received after the closing date shall be

rejected and returned without further

consideration.

(d) A complete application must

include all of the information required

by the Agency application materials and

must be submitted in the number of

copies specified by the Agency.

(e) Each copy of the Agency

application must contain an original

signature of an officer of the applicant

who is legally authorized to sign for the

applicant.

(f) Applicants must certify whether

they are delinquent on any Federal debt.

(g) Applicants may be required to

submit Name Check forms (Form CD–

346) which may be used to ascertain

background information on key

individuals associated with potential

grantees as part of the application, per

Department Pre-Award Administrative

Requirements and Policies.

(h) Applicant organizations may also

be subject to a responsibility

determination by the Department which

may include, but not be limited to

reviews of financial and other business

activities. Responsibility determinations

are intended to ascertain whether

potential grantee organizations or their

key personnel have been involved in or

are facing any matters that might

significantly and negatively impact on

their business honesty, financial

integrity and/or ability to successfully

perform the proposed grant activities.

(i) Unsatisfactory performance by the

applicant under prior Federal awards

may result in the application not being

funded.

§ 2301.9 Deferred applications.

(a) An applicant may reactivate an

application deferred by the Agency

during the prior year if the applicant has

not substantially changed the stated

purpose of the application.

(b) An applicant may reactivate a

deferred application only during the

two consecutive years following the

application’s initial filing with the

Agency.

(c) To reactivate a deferred

application, the applicant must file an

updated application, whether mailed or

hand delivered, at or before 5:00 p.m. on

the closing date.

(d) An updated application must

include all of the information required

by the Agency application materials and

must be submitted in the number of

copies specified by the Agency.

(e) Deferred applications that are

resubmitted under this section and

contain substantial changes will be

considered as new applications.

(f) All deferred applications may be

subject to a determination of eligibility

during subsequent grant cycles.

§ 2301.10 Applications resulting from

catastrophic damage or emergency

situations.

(a) An application may be filed with

a request for a waiver of the closing

date, as provided in § 2301.26, when an

eligible broadcast applicant suffers

catastrophic damage to the basic

equipment essential to its continued

operation as a result of a natural or

manmade disaster, or as the result of

complete equipment failure, and is in

dire need of assistance in funding

replacement of the damaged equipment.

(b) The request for a waiver must set

forth the circumstances that prompt the

request and be accompanied by

appropriate supporting documentation.

(c) A waiver will be granted only if it

is determined that the applicant either

carried adequate insurance or had

acceptable self-insurance coverage.

(d) Applications filed and accepted

pursuant to this section must contain all

of the information required by the

Agency application materials and must

be submitted in the number of copies

specified by the Agency.

(e) The application will be subject to

the same evaluation and selection

process followed for applications

received in the normal application

cycle, although the Administrator may

establish a special timetable for

evaluation and selection to permit an

appropriately timely decision.

§ 2301.11 Service of applications.

On or before the closing date all new

or deferred applicants must serve a

summary copy of the application on the

following agencies:

(a) In the case of an application for a

construction grant for which FCC

authorization is necessary, the

Secretary, Federal Communications

Commission, 1919 M Street, N.W.,

Washington, DC 20554;

(b) The state telecommunications

agency(-ies), if any, having jurisdiction
Federal Register / Vol. 61, No. 105 / Thursday, May 30, 1996 / Proposed Rules 27239

over the development of broadcast and/

or nonbroadcast telecommunications in

the state(s) and the community(-ies) to

be served by the proposed project; and

(c) The state office established to

review applications under Executive

Order 12372, as amended by Executive

Order 12416, in all states where

equipment requested in the application

will be located and where the state has

established such an office and wishes to

review these applications.

§ 2301.12 Federal Communications

Commission authorizations.

(a) Each applicant whose project

requires FCC authorization must file an

application for that authorization on or

before the closing date. NTIA

recommends that its applicants submit

PTFP-related FCC applications to the

FCC at least 60 days prior to the PTFP

closing date. The applicant should

clearly identify itself to the FCC as a

PTFP applicant.

(b) In the case of FCC authorizations

where it is not possible or practical to

submit the FCC license application with

the PTFP application, such as C-band

satellite uplinks, low power television

stations and translators, remote pickups,

studio-to-transmitter links, and Very

Small Aperture Terminals, a copy of the

FCC application as it will be submitted

to the FCC, or the equivalent

engineering data, must be included in

the PTFP application.

(c) Applications requesting C-band

downlinks are not required to submit

the FCC application or equivalent

engineering data as part of the PTFP

application. When such a project is

funded, however, grantees will be

required to submit evidence of FCC

registration of the C-band downlink

prior to the release of Federal funds.

(d) Any FCC authorization required

for the project must be in the name of

the applicant for the PTFP grant.

(e) If the project is to be associated

with an existing station, the FCC

operating authority for that station must

be current and valid.

(f) For any project requiring new

authorization(s) from the FCC, the

applicant must file a copy of each FCC

application and any amendments with

the Agency.

(g) If the applicant fails to file the

required FCC application(s) by the

closing date, or if the FCC returns,

dismisses, or denies an application

required for the project or any part

thereof, or for the operation of the

station with which the project is

associated, the Agency may reject and

return the application.

(h) No grant will be awarded until

confirmation has been received from the

FCC that any necessary authorization

will be issued.

§ 2301.13 Public comments.

(a) After the closing date, the Agency

will publish a list of all applications

received.

(b) The applicant shall make a copy

of its application available at its offices

for public inspection during normal

business hours.

(c) A copy of the application will be

available in the PTFP offices for public

inspection during normal business

hours.

(d) Any interested party may file

comments with the Agency supporting

or opposing an application and setting

forth the grounds for support or

opposition. Any opposing comments

must contain a certification that a copy

of the comments has been delivered to

the applicant. Comments must be sent

to the address listed in § 2301.8(a).

(e) The Agency shall incorporate all

comments from the public and any

replies from the applicant in the

applicant’s official file for consideration

during the evaluation of the application.

§ 2301.14 Supplemental application

information.

(a) The Agency may request from the

applicant any additional information

that the Agency deems necessary to

clarify the application. Applicants must

provide to the Agency additional

information that the Agency requests

within fifteen (15) days of the date of

the Agency’s notice. Applicants must

submit a copy of the requested

information for each copy of the

application submitted by the Closing

Date.

(b) Applicants must immediately

provide to the Agency information

received after the closing date that

materially affects the application,

including:

(1) State Single Point of Contact and

State Telecommunications Agency

comments on applications;

(2) FCC file numbers and changes in

the status of FCC applications necessary

for the proposed project;

(3) Changes in the status of proposed

local matching funds, including

notification of the passage (including

reduction or rejection) of a proposed

state appropriation or receipt (or denial)

of a proposed substantial matching gift;

(4) Changes that affect the applicant’s

eligibility under § 2301.3;

(5) Changes in the status of proposed

production, participation, or

distribution agreements (if relevant to

the proposed project);

(6) Changes in lease or site rights

agreements; and

(7) Complete failure of major items of

equipment for which replacement costs

have been requested or changes in the

status of the need for the equipment

requested.

(c) Applicants must place copies of

any additional information submitted to

the Agency in the copy of the

application made available for public

inspection pursuant to § 2301.13.

(d) Applicants may not contact the

Department to discuss the merits of an

application when it is under review.

§ 2301.15 Withdrawal of applications.

(a) Applicants may request

withdrawal of an application from

consideration for funding without

affecting future consideration.

Withdrawn applications will be

returned by the Agency.

(b) A request that the Agency defer an

application for consideration in a

subsequent year will be treated as a

request for withdrawal.

Subpart C: Evaluation and Selection

Process

§ 2301.16 Technical evaluation.

(a) In determining whether to approve

or defer a construction or planning grant

application, in whole or in part, and the

amount of such grant, the Agency will

evaluate all the information in the

application file.

(b) PTFP grants are awarded on the

basis of a competitive review process.

The evaluation of the applications is

based upon the evaluation criteria

provided under § 2301.17.

(c) The competitive review process

may include the following: evaluation

by PTFP staff; technical assessment by

engineers; an evaluation by outside

reviewers, all of whom have

demonstrated expertise in either public

broadcasting or distance learning; and

rating by a national advisory panel,

composed of representatives of major

national public radio and television

organizations.

(d) In acting on applications and

carrying out other responsibilities under

the Act, the Agency shall consult (as

appropriate) with the FCC, the

Corporation for Public Broadcasting,

state telecommunications agencies,

public broadcasting agencies,

organizations, and other agencies

administering programs that may be

coordinated effectively with Federal

assistance provided under the Act; and,

the state office established to review

applications under Executive Order

12372, as amended by Executive Order

12416,

(e) Based upon the evaluation criteria

contained in § 2301.17, the PTFP
27240 Federal Register / Vol. 61, No. 105 / Thursday, May 30, 1996 / Proposed Rules

program staff will prepare summary

evaluations. These will incorporate the

outside reviewers’ recommendations,

engineering assessments, and program

staff evaluations.

§ 2301.17 Evaluation criteria for

construction and planning applications.

(a) For each application that is filed

in a timely manner by an eligible

applicant, is materially complete, and

proposes an eligible project, the Agency

will consider the following factors:

(1) Project Objectives: The degree to

which the application documents that

the proposed project fulfills the

objectives and specific requirements of

one or more of the categories set forth

in § 2301.4.

(2) Applicant Qualifications:

Documentation that the applicant has or

will have sufficient qualified staff to

complete the project, operate and

maintain the facility, and provide

services of professional quality.

(3) Urgency: Documentation that

justifies funding the proposed project

during the current grant cycle.

(4) Financial Qualifications:

Documentation reflecting the

applicant’s ability to provide nonFederal funds required for the project,

including funds for the local match and

funds to cover any ineligible costs

required for completion of the project;

to ensure long-term financial support for

the continued operation of the facility

during the Federal interest period; to

adequately justify the need for Federal

funds in excess of fifty (50) percent of

total project costs (see § 2301.6(b)(ii)), if

requested for equipment replacement,

improvement, or augmentation projects;

and, in the case of planning, provide

non-Federal support and resources (if

proposed by the applicant), including

matching or in-kind support for the

project.

(5)(i) Technical Qualifications

(construction applicants only):

Documentation that the eligible

equipment requested is necessary to

achieve the objectives of the project;

that the proposed costs reflect the most

efficient use of Federal funds in

achieving project objectives; that the

equipment requested meets current

industry performance standards (and

FCC standards, if appropriate); that the

condition of existing equipment justifies

its prompt replacement; and that an

evaluation of alternative technologies

has been completed that justifies the

selection of the requested technology

(where alternative technologies are

possible).

(ii) Planning Qualifications (planning

applicants only): Documentation : of the

feasibility of the proposed planning

process and timetable for achieving the

expected results; that costs proposed

reflect the most efficient use of Federal

funds; that the applicant has sufficient

qualified staff or consultants to

complete the planning project with

professional results; and that an

evaluation of alternative technologies

will be incorporated into the plan, if

appropriate.

(6) Special Consideration:

Documentation of the extent to which

broadcast applications would increase

minority and women’s ownership of,

operation of, and participation in public

telecommunications entities, as stated

in § 2301.5

(b) The Agency will provide each

applicant with guidance in the

application materials on the type of

documentation necessary to meet each

of the above evaluation criteria.

§ 2301.18 Selection process.

(a) The PTFP Director will consider

the summary evaluations prepared by

program staff, rank the applications, and

present recommendations to the

Selecting Official, the NTIA

Administrator, taking into account the

following selection factors:

(1) The program staff evaluations,

including the outside reviewers.

(2) The scope of projects set forth at

§ 2301.4.

(3) Whether the application is for

broadcast or a nonbroadcast project.

(4) The geographic distribution of the

proposed grant awards.

(5) The availability of funds.

(b) The Administrator makes final

award selections taking into

consideration the Director’s

recommendations and the degree to

which the slate of applications, taken as

a whole, satisfies the program’s stated

purposes set forth at § 2301.1.

(c) No grant will be awarded until

confirmation has been received from the

FCC that any necessary authorization

will be issued.

(d) After final award selections have

been made, the Agency will notify the

applicant of one of the following

actions:

(1) Selection of the application for

funding, in whole or in part;

(2) Deferral of the application for

subsequent consideration;

(3) Rejection of the application with

an explanation and the reason, if an

applicant is not eligible or if the

proposed project does not fall within at

least one of the categories enumerated at

§ 2301.4; or,

(4) Return of applications that were

deferred by the Agency after

consideration during three grant cycles.

(e) The Agency will notify the

following organizations of those

applications selected for funding:

(1) The state educational

telecommunications agency(-ies), if any,

in any state any part of which lies

within the service area of the applicant’s

facility;

(2) The FCC; and,

(3) The Corporation for Public

Broadcasting and, as appropriate, other

public telecommunications entities.

Subpart D—Post-Award Requirements

§ 2301.19 General conditions attached to

the Federal award.

(a) During the project award period

and the remainder of the Federal

interest period, the grantee must:

(1) Continue to be an eligible

organization as described in § 2301.3;

(2) Obtain and continue to hold any

necessary FCC authorization(s);

(3) Use the Federal funds for which

the grant was made for the equipment

and other expenditure items specified in

the application for inclusion in the

project, except that the grantee may

substitute other items where necessary

or desirable to carry out the purpose of

the project if approved in advance by

the agency in writing. These changes

include but are not limited to the

following:

(i) Costs (including planning costs),

(ii) Essential specifications of the

equipment,

(iii) The engineering configuration of

the project,

(iv) Extensions of the approved grant

award period, and

(v) Transfers of a grant award to a

successor in interest, pursuant to

§ 2301.19(c).

(4) Use the facilities and any monies

generated through the use of the

facilities primarily for the provision of

public telecommunications services and

ensure that the use of the facilities for

other than public telecommunications

purposes does not interfere with the

provision of the public

telecommunications services for which

the grant was made;

(5) Not make its facilities available to

any person for the broadcast or other

transmission intended to be received

directly by the public, of any

advertisement, unless such broadcast or

transmission is expressly and

specifically permitted by law or

authorized by the FCC; and

(6) State when advertising for bids for

the purchase of equipment that the

Federal government has an interest in

facilities purchased with Federal funds

under this program that begins with the

purchase of the facilities and continues
Federal Register / Vol. 61, No. 105 / Thursday, May 30, 1996 / Proposed Rules 27241

for ten (10) years after the completion of

the project.

(b) During the period in which the

grantee possesses or uses the Federally

funded facilities, the grantee may not

use or allow the use of the Federally

funded equipment for purposes the

essential thrust of which are sectarian

for the useful life of the equipment even

when this extends beyond the ten (10)

year Federal interest period.

(c) If necessary to further the purpose

of the Act, the Agency may reassign a

grant to a successor in interest or

subsidiary corporation of a grantee in

cases where a similar operational entity

remains in control of the grant and the

original objectives of the grant remain in

effect. Each party must provide, in

writing, its assent to the substitution.

Any substituted party must meet the

eligibility requirements.

§ 2301.20 Schedules and Reports.

(a) Within thirty (30) calendar days of

the award date the grantee shall submit

to the Agency, in duplicate, a

construction schedule or a revised

planning timetable that will include the

information requested in the grant terms

and conditions in the award package.

(b) During the project period of this

grant, the grantee shall submit

performance reports, in duplicate, on a

calendar year quarterly basis for the

period ending March 31, June 30,

September 30, and December 31, or any

portions thereof. The Quarterly

Performance Reports should contain the

following information:

(1) A comparison of actual

accomplishments during the reporting

period with the goals and dates

established in the Construction or

Planning Schedule for that reporting

period;

(2) A description of any problems that

have arisen or reasons why established

goals have not been met;

(3) Actions taken to remedy any

failures to meet goals; and

(4) Construction projects must also

include a list of equipment purchased

during the reporting period compared

with the equipment authorized. This

information must include manufacturer,

make and model number, brief

description, number and date of the

items purchased, and cost.

§ 2301.21 Payment of Federal funds.

(a) The Department will not make any

payment under an award, unless and

until the recipient complies with all

relevant requirements imposed by this

Part. Additionally:

(1) The Department will not make any

payment until it receives confirmation

that the FCC has granted any necessary

authorization;

(2) The Department may not make any

payment under an award unless and

until all special award conditions stated

in the award documents that condition

the release of Federal funds are met; and

(3) An agreement to share ownership

of the grant equipment (e.g., a joint

venture for a tower) must be approved

by the Agency before any funds for the

project will be released.

(b) As a general matter, the Agency

expects grantees to expend local

matching funds at a rate at least equal

to the ratio of the local match to the

Federal grant as stipulated in the grant

award.

§ 2301.22 Protection, acquisition and

substitution of equipment.

(a) To assure that the Federal

investment in public

telecommunications facilities funded

under the Act will continue to be used

to provide public telecommunications

services to the public during the Federal

interest period, the Agency may require

a grantee to:

(1) Execute and record a document

establishing that the Federal

government has a priority lien on any

facilities purchased with funds under

the Act during the period of continuing

Federal interest. The document shall be

recorded where liens are normally

recorded in the community where the

facility is located and in the community

where the grantee’s headquarters are

located; and

(2) File a certified copy of the

recorded lien with the Administrator

ninety (90) days after the grant award is

received.

(b) The grantee shall maintain

protection against common hazards

through adequate insurance coverage or

other equivalent undertakings, except

that, to the extent the applicant follows

a different policy of protection with

respect to its other property, the

applicant may extend such policy to

apparatus acquired and installed under

the project. The grantee shall purchase

flood insurance (in communities where

such insurance is available) if the

facilities will be constructed in any area

that has been identified by the Secretary

of Health and Human Services as having

special flood hazards.

(c) The grantee shall not dispose of or

encumber its title or other interests in

the equipment acquired under this grant

during the Federal interest period.

(d) The grantee shall demonstrate that

the grantee has obtained appropriate

title or lease satisfactory to protect the

Federal interest to the site or sites on

which apparatus proposed in the project

will be operated. The grantee must have

the right to occupy, construct, maintain,

operate, inspect, and remove the project

equipment without impediment to

assure the sufficient continuity of

operation of the facility; and nothing

must prevent the Federal government

from entering the property and

reclaiming or securing PTFP-funded

property.

(e) The Agency will allow the

acquisition of facilities by lease;

however, the following requirements

apply:

(1) The lease must be of benefit to the

Federal government;

(2) The actual amount of the lease

must not be more than the outright

purchase price would be; and

(3) The lease agreement must state

that in the event of anticipated or actual

termination of the lease, the Federal

government has the right to transfer and

assign the leasehold to a new grantee for

the duration of the lease contract.

(f) Transfer of equipment. Where the

grant equipment is no longer needed for

the original purposes of the project, the

Agency may transfer the equipment to

the Federal government or an eligible

third party, in accordance with Office of

Management and Budget guidelines.

(g) Transfer of Federal interest to

different equipment. The Agency may

transfer the Federal interest in PTFPfunded equipment to other eligible

equipment presently owned or to be

purchased by the grantee with nonFederal monies, provided the following

conditions are met:

(1) If the Federal interest is to be

transferred to other equipment presently

owned or to be purchased by a grantee,

the Federal interest in the new

equipment must be at least equal to the

Federal interest in the original

equipment.

(2) Equipment previously funded by

PTFP that is within the Federal interest

period may not be used in a transfer

request as the designated equipment to

which the Federal interest is to be

transferred.

(3) The same item can be used only

once to substitute for the Federal

interest. However, the Federal interest

in several items of equipment from

different grants may be transferred to a

single item if the request for all such

transfers is submitted at the same time.

(4) A lien on equipment transferred to

the Federal interest may be required by

PTFP and must be recorded in

accordance with § 2301.23(b)(8). A copy

of the lien document must be filed with

the PTFP within sixty (60) days of the

date of approval of the transfer of

Federal interest.
27242 Federal Register / Vol. 61, No. 105 / Thursday, May 30, 1996 / Proposed Rules

(h) Termination by buy-out. A grantee

may terminate the Federal revisionary

interest in a PTFP grant by buying out

the Federal interest with non-Federal

monies. Buy-outs may be requested at

any time.

Subpart E—Completion of Projects

§ 2301.23 Completion of projects.

(a) Upon completion of a planning

project, the grantee must promptly

provide to the Administrator two copies

of any report or study conducted in

whole or in part with funds provided

under this program by sending the

copies to the Agency.

(1) This report shall meet the goals

and objectives for which the grant is

awarded and shall follow the written

instructions and guidance provided by

the Agency. The grant award goals and

objectives are stated in the planning

narrative as amended and are

incorporated by reference into the

award agreement.

(2) The Agency shall review this

report for the extent to which those

goals and objectives are addressed and

met, for evidence that the work

contracted for under the grant award

was in fact performed, and to determine

whether the written instructions and

guidance provided by the Agency, if

any, were followed.

(3) If the Agency determines that the

report fails to address or meet any grant

award goals or objectives, or if there is

no evidence that the work contracted for

was in fact performed, or if this report

clearly indicates that the written

instructions and guidance provided by

the Agency, if any, were disregarded,

then the Agency may pursue remedial

action.

(4) An unacceptable final report may

result in the disallowance of claimed

costs and the establishment of an

account receivable by the Department.

(b) Upon completion of a construction

project, the grantee must:

(1) Certify that the grantee has

acquired, installed, and begun operating

the project equipment in accordance

with the project as approved by the

Agency, and has complied with all

terms and conditions of the grant as

specified in the Grant Award document;

(2) Certify that the grantee has

obtained any necessary FCC

authorizations to operate the project

apparatus following the acquisition and

installation of the apparatus and

document the same;

(3) Certify and document that the

facilities have been acquired, that they

are in operating order, and that the

grantee is using the facilities to provide

public telecommunications services in

accordance with the project as approved

by the Agency;

(4) Certify that the grantee has

obtained adequate insurance to protect

the Federal interest in the project in the

event of loss through casualty;

(5) Certify, if not previously provided,

that the grantee has acquired all

necessary leases or other site rights

required for the project;

(6) Certify, if appropriate, that the

grantee has qualified for receipt of funds

from the Corporation for Public

Broadcasting;

(7) Provide a complete and accurate

final inventory of equipment acquired

under the project and a final accounting

of all project expenditures, including

non-equipment costs (e.g., installation

costs); and

(8) Execute and record a final priority

lien, if required by PTFP, reflecting the

completed project and assuring the

Federal government’s reversionary

interest in all equipment purchased

under the grant project for the duration

of the Federal interest period.

(c) When an applicant completes a

construction project, the Agency will

assign a completion date that the

Agency will use to calculate the

termination date of the Federal interest

period. The completion date will

usually be the date on which the project

period expires unless the grantee

certifies in writing prior to the project

period expiration date that the project is

complete and in accord with the terms

and conditions of the grant, as required

under § 2301.23(b)(1). If the PTFP

Director determines that the grantee

improperly certified the project to be

complete, the PTFP Director will amend

the completion date accordingly.

§ 2301.24 Final Federal payment.

If the total allowable, allocable, and

reasonable costs incurred in completing

the planning or construction project are

less than the total project award

amount, the Agency shall reduce the

amount of the final Federal share on a

pro rata basis. If, however, the actual

costs incurred in completing the project

are more than the estimated total project

costs, then in no case will the final

Federal funds paid exceed the initial

grant award.

§ 2301.25 Retention of records and annual

status reports.

(a) All grantees shall keep intact and

accessible all records specified in Office

of Management and Budget Circular A–

110 (for educational institutions,

hospitals, and nonprofit organizations),

or 15 CFR part 24 (for State and Local

Governments), and 15 CFR part 29a

(Audit Requirements for State and Local

Governments) or 15 CFR part 29b (Audit

Requirements for Institutions of Higher

Education and Other Nonprofit

Organizations), as appropriate.

(b) Recipients of construction grants:

(1) Are required to submit an Annual

Status Report for each grant project that

is in the Federal interest period. The

Reports are due no later than April 1 in

each year of the period. Information

about what is to be included in the

Annual Status Report is supplied to

grant recipients at the time grants are

closed out.

(2) Shall retain an inventory of the

equipment for the duration of the ten

year Federal interest period and shall

mark project apparatus in a permanent

manner to assure easy and accurate

identification and reference to inventory

records. The marking shall include the

PTFP grant number and an inventory

number assigned by the grantee.

(3) May also be required to take

whatever steps may be necessary to

ensure that the Federal government’s

reversionary interest continues to be

protected for the 10-year period by

recording, when and where required, a

lien continuation statement and

reporting that fact in the Annual Status

Report.

Subpart F: Waivers

§ 2301.26 Waivers.

For good cause shown, the

Administrator may waive the

regulations adopted pursuant to section

392(e) of the Act. Waivers may only be

granted for regulatory requirements that

are discretionary and not statutorily

mandated.

[FR Doc. 96–13572 Filed 5–29–96; 8:45 am]

BILLING CODE 3510–60–P