Connecting Minority Communities Pilot Program

• Published date: 15 June 2021
• Citation: 86 FR 31638
• Record Number: 2021-12454
• Section: Rules and Regulations
• Court: National Telecommunications And Information Administration

31638

Federal Register / Vol. 86, No. 113 / Tuesday, June 15, 2021 / Rules and Regulations

1

See Coronavirus Aid, Relief, and Economic

Security Act, Public Law 116–136, 134 Stat. 281

(Mar. 27, 2020).

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see the Proposed Rule published in the

April 5, 2021, Federal Register at 86 FR

17572. The Congressional Review Act, 5

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Business Regulatory Enforcement

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that before a rule may take effect, the

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by 5 U.S.C. 804(2). This final action will

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List of Subjects in 40 CFR Part 271

Environmental protection,

Administrative practice and procedure,

Confidential business information,

Hazardous waste, Hazardous waste

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Intergovernmental relations, Penalties,

Reporting and recordkeeping

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Dated: June 1, 2021.

Deborah Jordan,

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[FR Doc. 2021–12458 Filed 6–14–21; 8:45 am]

BILLING CODE 6560–50–P

DEPARTMENT OF COMMERCE

National Telecommunications and

Information Administration

47 CFR Part 302

[Docket No. 210608–0124]

RIN 0660–AA36

Connecting Minority Communities

Pilot Program

AGENCY

: National Telecommunications

and Information Administration (NTIA),

Department of Commerce (DOC).

ACTION

: Final rule.

SUMMARY

: The Consolidated

Appropriations Act of 2021 (the ‘‘Act’’)

appropriated $285 million to the

National Telecommunications and

Information Administration (NTIA) to

establish the Connecting Minority

Communities (CMC) Pilot Program. The

CMC Pilot Program will provide grants

to eligible historically Black colleges or

universities (HBCUs); Tribal Colleges or

Universities (TCUs); and Minority-

serving institutions (MSIs) in anchor

communities for broadband internet

access service, equipment, or to hire

information technology personnel to

facilitate educational instruction

including remote instruction, and to

lend or provide equipment to eligible

students or patrons. This final rule

describes NTIA’s programmatic scope,

eligibility criteria, and general

guidelines for the CMC Pilot Program as

authorized by the Act. NTIA will

subsequently publish a Notice of

Funding Opportunity (NOFO) on

www.grants.gov that will provide more

details regarding the CMC eligibility

guidelines, application instructions, and

program requirements.

DATES

: This final rule is effective on

June 15, 2021.

FOR FURTHER INFORMATION CONTACT

:

Scott Woods, Senior Broadband

Program Specialist, telephone: (202)

306–3096, email: SWoods@ntia.gov; or

Francine Alkisswani,

Telecommunications Policy Analyst,

telephone: (202) 482–5560, email:

FAlkisswani@ntia.gov, Office of

Telecommunications and Information

Applications, National

Telecommunications and Information

Administration, U.S. Department of

Commerce, 1401 Constitution Avenue

NW, Room 4878, Washington, DC

20230.

SUPPLEMENTARY INFORMATION

:

Table of Contents

I. Background

II. Statutory Requirements

III. Regulatory Analyses & Notices

I. Background

NTIA, the Executive Branch agency

principally responsible for advising the

President on telecommunications and

information policy issues, launched its

Minority Broadband Initiative (MBI) in

November 2019 as an integral part of

NTIA’s mission and commitment to

expanding broadband internet access

and adoption in America. With the MBI,

NTIA took the lead on minority

stakeholder engagement on broadband

deployment in unserved and

underserved areas of the country

through initially partnering with HBCUs

and TCUs. The Consolidated

Appropriations Act, 2021, Division N,

Title IX, Section 902, Public Law 116–

260, 134 Stat. 1182 (Dec. 27, 2020),

codifies the work of the MBI by

directing NTIA to establish the Office of

Minority Broadband Initiatives,

expanding the Agency’s reach to engage

MSIs, and to promulgate rules

establishing the CMC Pilot Program. The

purpose of the Act is to realize the

potential of HBCU, TCU, and MSI

institutions that will aid in America’s

economic development, growth of social

capital and increased productivity.

NTIA will build and expand upon its

relationships with HBCU, TCU and MSI

institutions to both fulfill the duties of

the Office of Minority Broadband

Initiatives and to implement the CMC

Pilot Program.

Moreover, NTIA’s mission is to foster

robust broadband access, connectivity

and adoption as these are essential

elements to support the nation’s

economic growth and social

advancement. NTIA believes that

broadband is a conduit for economic

development and social opportunities

for U.S. households and a gateway to

increased productivity, growth and

market access for businesses of all sizes.

Yet, many American communities,

households and critical anchor

institutions lack sufficient broadband

connectivity and experience significant

challenges with digital inclusion,

adoption, access and equity, specifically

within vulnerable communities,

communities of color, and with students

at HBCUs, TCUs and MSIs. The COVID–

19 pandemic has exacerbated these

inequities for students, faculty and staff

at HBCUs, TCUs and MSIs.

To address these critical issues,

Congress passed the Act to enhance and

expand certain provisions of the

Coronavirus Aid, Relief, and Economic

Security Act (the ‘‘CARES Act’’).

1

In the

Act, Congress directed NTIA to provide

grants to eligible recipients in anchor

communities for the purchase of

broadband internet access service or any

eligible equipment, or to hire and train

information technology personnel: (1)

To facilitate educational instruction and

learning, including through remote

instruction; or (2) to operate a minority

business enterprise; or (3) to operate a

tax-exempt organization described in

section 501(c)(3) of the Internal Revenue

Code of 1986, as amended. Through this

CMC Pilot Program, NTIA will directly

address the lack of broadband access,

connectivity, adoption and equity at our

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Federal Register / Vol. 86, No. 113 / Tuesday, June 15, 2021 / Rules and Regulations

2

See Consolidated Appropriations Act, 2021,

Division N, Title IX, Section 902(c)(1)(B), Public

Law 116–260, 134 Stat. 1182 (Dec. 27, 2020).

3

See U.S. Dep’t of Education, List of

Postsecondary Institutions Enrolling Populations

with Significant Percentages of Undergraduate

Minority Students, https://www2.ed.gov/about/

offices/list/ocr/edlite-minorityinst.html (last visited

May 18, 2021).

4

See U.S. Dep’t of Education, Office of

Postsecondary Education, Eligibility Designations

and Applications for Waiver of Eligibility

Requirements, https://www2.ed.gov/about/offices/

list/ope/idues/eligibility.html (last visited May 18,

2021).

5

Several Institutions of Higher Education (IHEs)

will qualify under more than one category in the

table below. Therefore, the total universe of eligible

institutions is not the total number of schools in all

category types.

6

See National Center for Education Statistics,

College Navigator, https://nces.ed.gov/COLLEGE

NAVIGATOR/?s=all&sp=4 (last visited May 18,

2021).

7

See National Center for Education Statistics,

College Navigator, https://nces.ed.gov/COLLEGE

NAVIGATOR/?s=all&sp=8 (last visited May 18,

2021).

nation’s HBCUs, TCUs, and MSIs and in

their surrounding anchor communities.

II. Statutory Requirements

NTIA adopts these rules to establish,

implement, and administer the CMC

Pilot Program. Under the Act, Congress

directed NTIA to promulgate these rules

to establish a method to identify,

determine and verify CMC applicant

eligibility; to identify which eligible

recipients in anchor communities have

the greatest unmet financial needs; and

to ensure that grants under the Pilot

Program are made to eligible recipients

in a manner that best achieves the

purposes of the Pilot Program.

2

Accordingly, NTIA developed the

following methodology and supporting

rationale utilizing information and data

from the agency’s National Broadband

Availability Map (NBAM) and in

consultation with several Federal

agencies including the U.S. Department

of Education (ED), National Center for

Education Statistics (NCES), Minority

Business Development Agency (MBDA)

and the Internal Revenue Service (IRS).

1. Method for identifying and

verifying that an applicant is an HBCU,

TCU, or MSI eligible recipient.

NTIA will analyze available data to

establish program eligibility as follows:

a. Eligible institutions must be

designated in one of the seven

categories delineated by the U.S.

Department of Education as authorized

by the Higher Education Act of 1965.

3

b. Where the school type has been

legislatively defined and a list of

institutions is available from the Federal

government, as is the case for HBCUs

and TCUs, NTIA will use the data/

information provided by the NCES to

verify their historical designation.

c. Where the U.S. Department of

Education provides eligibility criteria,

but does not publish a definitive list of

institutions (for example, Asian

American and Native American Pacific

Islander-serving institution

(AANAPISI), Hispanic-serving

institution (HSI), Predominantly Black

institution (PBI), Alaska Native-serving

institution/Native Hawaiian-serving

institution (ANNH), and Native

American-serving, non-Tribal

institution (NASNTI) designations),

NTIA has defined the universe of

eligible institutions as those institutions

that the U.S. Department of Education

defines as eligible or potentially eligible

in that category within the U.S.

Department of Education’s most

recently released Eligibility Matrix.

4

(Currently the 2020 Eligibility Matrix,

but NTIA will update this approach to

include the U.S. Department of

Education’s 2021 Eligibility Matrix, and

any subsequent Matrix, as applicable,

upon release.)

Accordingly, under this methodology

and rationale, NTIA estimates the

universe of ‘‘eligible’’ recipient

institutions, as of 2020,

5

is as follows:

Type Number

of schools Method

HBCU ............. 102 Most recent NCES list of HBCUs.

6

HSI ................. 501 Defined as eligible or potentially eligible in the most recent Dep’t of Education Eligibility Matrix available, in the

HSI category.

TCU ................ 37 Most recent NCES list of TCUs.

7

ANNH ............. 66 Defined as eligible or potentially eligible in the most recent Dep’t of Education Eligibility Matrix available, in the

ANNH or ANNH F categories.

PBI ................. 104 Defined as eligible or potentially eligible in the most recent Dep’t of Education Eligibility Matrix available, in the

PBI F or PBI A categories.

AANAPISI ...... 336 Defined as eligible or potentially eligible in the most recent Dep’t of Education Eligibility Matrix available, in the

AANAPISI or AANAPISI F categories.

NASNTI .......... 32 Defined as eligible or potentially eligible in the most recent Dep’t of Education Eligibility Matrix available, in the

NASNTI or NASNTI F categories.

2. Method for identifying and

mapping areas or anchor communities

that are within a 15-mile radius of each

eligible HBCU, TCU, or MSI and that

meet the estimated median annual

household income of not more than 250

percent of the poverty line.

To identify those areas surrounding a

qualifying institution in which the

‘‘estimated median annual household

income is not more than 250 percent of

the poverty line,’’ NTIA will use median

household income estimates from the

most recent U.S. Census Bureau’s

American Community Survey (ACS) for

each census tract falling wholly or

partially within the applicable area (so

long as corresponding poverty threshold

data is also available for that time

period, to ensure comparison of similar

datasets). Census tracts are the smallest

geographic units for which median

household income estimates are

available, enabling more precise

identification of the eligible areas

defined in the statute. Currently, the

most recent available data estimates are

from 2015–2019. For each relevant

census tract, NTIA will compare the

median household income estimate

with the most recent poverty thresholds

published by the Census Bureau (so

long as corresponding household

income data is also available for that

time period, as discussed above).

Currently, the most recent available data

is from 2019. NTIA will use the

weighted average poverty threshold that

corresponds to the mean household size

in each tract. If the mean household size

is between two whole numbers, NTIA

will round up to the next whole number

to determine the applicable weighted

average poverty threshold. This will

help to ensure that the program’s

eligibility standards include as many

communities in need as possible. If the

median household income of a census

tract does not exceed 2.5 times the

applicable weighted average poverty

threshold, that tract will be considered

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8

See U.S. Census Bureau, Poverty Thresholds,

https://www.census.gov/data/tables/time-series/

demo/income-poverty/historical-poverty-

thresholds.html (last visited May 18, 2021).

9

As defined under 47 CFR part 54, subpart E, or

any successor regulations.

10

As that term is defined in section 312(g) of the

Higher Education Act of 1965 (20 U.S.C. 1058(g)).

part of the anchor community. These

data sets have a small margin of error

that may affect the potential eligibility

of particular census tracts, and data gaps

may exist. NTIA will address this

margin of error and an applicant’s

submission of its own data to support

eligibility in the program’s NOFO. A

further breakdown of NTIA’s approach

is as follows:

a. The 250 percent threshold will be

determined for household size based on

the most recent poverty thresholds

available from the U.S. Census Bureau,

so long as household size data for that

time period is also available.

8

b. The 250 percent poverty threshold

by household size will then be applied

to the average household size in each

census tract according to the most

recent American Community Survey

data available, so long as poverty

threshold data for that time period is

also available.

c. Utilizing capabilities within the

NBAM platform, a 15-mile buffer will be

drawn around each eligible institution

as described above.

d. A digital overlay will be used to

select all census tracts for each anchor

community boundary. If any part of a

census tract falls within the boundary,

NTIA will include that entire census

tract in order to avoid excluding

potentially eligible communities. The

median household income in each

anchor community census tract will be

compared to the 250 percent poverty

threshold as defined above to determine

if the anchor community tract does not

exceed the prescribed poverty

threshold.

3. Method to determine a comparable

maximum distance for TCU anchor

community located on land held in trust

by the United States is statistically

comparable to anchor communities

defined as not more than 15 miles from

an HBCU, TCU or MSI.

In the Act, Congress also directed that

NTIA may establish, in consultation

with the Secretary of the Interior, a

separate anchor community boundary

for those Tribal schools located on land

held in trust by the United States, if

NTIA can ensure that each anchor

community that is established is

statistically comparable to other anchor

communities within the CMC Pilot

Program. After consultation with the

Secretary of the Interior and upon

review of the applicable data and

information for the purposes of CMC

Pilot Program consideration, NTIA will

apply this standard as follows: For

TCUs located on land held in trust by

the United States that are also located

within a reservation, the boundary of

the reservation on which the TCU falls

will be substituted for the 15-mile buffer

to create an Area of Interest (AOI) for

each institution. These AOIs will be

used to define the institution’s anchor

community boundary.

4. Method to identify which eligible

recipients have the greatest unmet

financial need. NTIA has interpreted

that this requirement refers to both the

‘‘eligible institution’’ and the ‘‘students

that attend the eligible institutions’’ and

therefore, for ease of application, will

analyze the student need data.

Accordingly, to determine which

eligible recipients have students with

the greatest unmet financial needs, each

applying eligible institution must

provide the following information in

their application for funding (or as

much of the information as is

reasonably available to the institution),

to include any supplementary

information to explain the data:

(i) Student population size;

(ii) Number and percentage of

students that are eligible to receive

Federal Pell Grants;

(iii) Number and percentage of

students that receive other need-based

financial aid from the Federal

government, a State, or that institution;

(iv) Number and percentage of

students that qualify as low-income

consumers;

9

(v) Number and percentage of

students that are low-income

individuals;

10

and

(vi) Number and percentage of

students that have been approved to

receive unemployment insurance

benefits under any Federal or State law

since March 1, 2020.

NTIA will analyze the submitted

information for each of these criteria

and will develop an assessment of each

institution’s student body-based unmet

financial needs. These assessments will

be compared across all submitted

applications during the merit review

phase and program eligibility

determinations will be made based on

an evaluation of the data provided and

accompanying explanatory information.

Final recommendations for project

approval and grant funding will be

made for those eligible anchor

institutions that have demonstrated the

highest unmet financial need.

5. Method for verifying that a

designated Minority Business Enterprise

(MBE) or a 501(c)(3) organization

applying as a member of the consortium

is an eligible entity.

NTIA will require that a consortium

applicant that is an MBE self-certify that

it is an MBE-designated entity. For

consortium applicants that claim tax

exempt status, NTIA will utilize the

Internal Revenue Service’s 501(c)(3)

certification portal/database to verify

the organization’s 501(c)(3) status.

As required by section 902(c)(1) of the

Act, we are including all eligibility

requirements in the program rules

below in §§ 302.3–302.6. Further,

§ 302.5 addresses the interagency

coordination required by section

902(c)(3) of the Act.

III. Regulatory Analyses and Notices

Executive Order 12866 (Regulatory

Policies and Procedures)

This rule has been determined to be

significant under of Executive Order

12866, and therefore has been reviewed

by the Office of Management and

Budget (OMB).

Administrative Procedure Act

The effective date of this final rule is

the date of publication in the Federal

Register. The Administrative Procedure

Act’s rulemaking requirements,

including the requirement to engage in

a notice and comment process and the

30-day delay in effective date for

substantive rules, do not apply here as

this rule concerns grants. See 5 U.S.C.

553(a)(2).

Regulatory Flexibility Act

This final rule is not subject to the

requirements of the Regulatory

Flexibility Act, as NTIA was not

required to publish a notice of proposed

rulemaking or provide an opportunity

for notice and public comment prior to

publication of this final rule. See 5

U.S.C. 601(2), 603, 604. Accordingly, no

Regulatory Flexibility Analysis is

required, and none has been prepared.

Executive Order 13132 (Federalism)

This final rule does not contain

policies having federalism implications

requiring preparations of a Federalism

Summary Impact Statement.

Executive Order 12988 (Civil Justice

Reform)

This rulemaking has been reviewed

under Executive Order 12988, Civil

Justice Reform, as amended by

Executive Order 13175. NTIA has

determined that the final rule meets the

applicable standards provided in

section 3 of the Executive Order to

minimize litigation, eliminate

ambiguity, and reduce burden.

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Executive Order 12372

(Intergovernmental Consultation)

Applications under this program are

subject to Executive Order 12372,

‘‘Intergovernmental Review of Federal

Programs,’’ which requires

intergovernmental consultation with

State and local officials. Non-TCU

applicants are required to submit a copy

of their applications to their designated

State Single Point of Contact (SPOC)

offices. See 7 CFR part 3015, subpart V.

NTIA respects the sovereignty of

Tribal nations and the various arms of

Tribal governments, including

institutions of higher education. TCUs

will be encouraged to consult with the

Tribal entity through which they are

chartered, to promote collaboration and

a unified approach to addressing the

mission of the CMC Pilot Program.

Executive Order 12630

This final rule does not contain

policies that have takings implications.

Executive Order 13175 (Consultation

and Coordination With Indian Tribes)

NTIA has analyzed this final rule

under Executive Order 13175 and has

determined that the action would not

have a substantial direct effect on one or

more Indian Tribes, would not impose

substantial direct compliance costs on

Indian Tribal governments, and would

not preempt Tribal law. Therefore, a

Tribal summary impact statement is not

required.

Paperwork Reduction Act

This document does not contain new

collection-of-information requirements

subject to the Paperwork Reduction Act.

Unfunded Mandates Reform Act

This final rule contains no federal

mandates (under the regulatory

provision of Title II of the Unfunded

Mandates Reform Act of 1995) for State,

local, and Tribal governments or the

private sector. The program is voluntary

and applicants that meet all eligibility

requirements could receive grant funds.

Thus, this rulemaking is not subject to

the requirements of sections 202 and

205 of the Unfunded Mandates Reform

Act of 1995.

National Environmental Policy Act

NTIA has reviewed this rulemaking

action for the purposes of the National

Environmental Policy Act. NTIA has

determined that this final rule would

not have a significant impact on the

quality of the human environment.

List of Subjects in 47 CFR Part 302

Broadband, Grant Programs, internet,

Telecommunications.

Dated: June 9, 2021.

Evelyn Remaley,

Acting Assistant Secretary of Commerce for

Communications and Information, National

Telecommunications and Information

Administration.

■In consideration of the foregoing, the

National Telecommunications and

Information Administration,

Department of Commerce, adds 47 CFR

part 302 to read as follows:

PART 302—CONNECTING MINORITY

COMMUNITIES PILOT PROGRAM

Sec.

302.1 Purpose.

302.2 Definitions.

302.3 Who may apply.

302.4 Application requirements.

302.5 Approval and award.

302.6 Distribution of grant funds.

302.7 Eligible uses for grant funds.

302.8 Continuing compliance.

302.9 Financial and administrative

requirements.

302.10 Closeout.

302.11 Waiver authority.

302.12 Program termination.

Authority: Consolidated Appropriations

Act, 2021, Division N, Title IX, section 902,

Pub. L. 116–260, 134 Stat. 1182 (Dec. 27,

2020).

§ 302.1 Purpose.

This part establishes uniform

application, approval, award, financial

and administrative requirements for the

Connecting Minority Communities pilot

program authorized under Division N,

Title IX, section 902, of the

Consolidated Appropriations Act, 2021.

§ 302.2 Definitions.

As used in this part—

Anchor Community means any area

that—

(1) Except as provided in the

definition of Certain Tribal Colleges or

Universities below, is not more than 15

miles from a historically Black college

or university, a Tribal College or

University, or a Minority-serving

institution; and

(2) Has an estimated median annual

household income (based on U.S.

Census Bureau American Community

Survey data) of not more than 250

percent of the poverty line, as that term

is defined in section 673(2) of the

Community Services Block Grant Act

(42 U.S.C. 9902(2)). NTIA will use data

from the most recent time period for

which both household income and

poverty line data are available.

Certain Tribal Colleges or Universities

means, with respect to a Tribal College

or University that is located on land

held in trust by the United States, the

Assistant Secretary, in consultation with

the Secretary of the Interior, may

establish a different maximum distance

for the purposes of designating an

anchor community if the Assistant

Secretary is able to ensure that, in

establishing that different maximum

distance, each anchor community that is

established as a result of that action is

statistically comparable to other anchor

communities described in the definition

of Anchor Community in this section.

After consultation with the Secretary of

the Interior and review of the relevant

statistical data, the Assistant Secretary

has determined that, for TCUs located

on land held in trust by the United

States that are also located within a

reservation, the boundary of the

reservation on which the TCU falls will

be substituted for the 15-mile buffer to

create an Area of Interest (AOI) for each

institution. These AOIs will be used to

define the institution’s anchor

community boundary.

Assistant Secretary means the

Assistant Secretary of Commerce for

Communications and Information, and

Administrator of the National

Telecommunications and Information

Administration (NTIA).

Broadband internet access service has

the meaning given the term in 47 CFR

8.1(b), or any successor regulation.

Commission means the Federal

Communications Commission.

Connected device means a laptop

computer, tablet computer, or similar

device that can connect to broadband

internet access service.

Director means the Director of the

Office.

Eligible equipment means—

(1) A Wi-Fi hotspot;

(2) A modem;

(3) A router;

(4) A device that combines a modem

and router;

(5) A connected device; or

(6) Any other equipment used to

provide access to broadband internet

access service.

Eligible recipient means—

(1) A historically Black college or

university;

(2) A Tribal College or University;

(3) A Minority-serving institution; or

(4) A consortium that is led by a

historically Black college or university,

a Tribal College or University, or a

Minority-serving institution and that

also includes—

(i) A Minority Business Enterprise; or

(ii) An organization described in

section 501(c)(3) of the Internal Revenue

Code of 1986 and exempt from tax

under section 501(a) of such Code.

Historically Black college or

university has the meaning given the

term ‘‘part B institution’’ in section 322

of the Higher Education Act of 1965 (20

U.S.C. 1061).

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Minority-serving institution means

any of the following:

(1) An Alaska Native-serving

institution, as that term is defined in

section 317(b) of the Higher Education

Act of 1965 (20 U.S.C. 1059d(b)).

(2) A Native Hawaiian-serving

institution, as that term is defined in

section 317(b) of the Higher Education

Act of 1965 (20 U.S.C. 1059d(b)).

(3) A Hispanic-serving institution, as

that term is defined in section 502(a) of

the Higher Education Act of 1965 (20

U.S.C. 1101a(a)).

(4) A Predominantly Black institution,

as that term is defined in section 371(c)

of the Higher Education Act of 1965 (20

U.S.C. 1067q(c)).

(5) An Asian American and Native

American Pacific Islander-serving

institution, as that term is defined in

section 320(b) of the Higher Education

Act of 1965 (20 U.S.C. 1059g(b)).

(6) A Native American-serving, non-

Tribal institution, as that term is defined

in section 319(b) of the Higher

Education Act of 1965 (20 U.S.C.

1059f(b)).

Minority Business Enterprise has the

meaning given the term in 15 CFR

1400.2, or any successor regulation.

Office means the Office of Minority

Broadband Initiatives established

pursuant to the Consolidated

Appropriations Act, 2021, Division N,

Title IX, section 902(b)(1).

Tribal College or University has the

meaning given the term in section

316(b) of the Higher Education Act of

1965 (20 U.S.C. 1059c(b)).

Wi-Fi means a wireless networking

protocol based on Institute of Electrical

and Electronics Engineers standard

802.11, or any successor standard.

Wi-Fi hotspot means a device that is

capable of—

(1) Receiving broadband internet

access service; and

(2) Sharing broadband internet access

service with another device through the

use of Wi-Fi.

§ 302.3 Who may apply.

(a) Eligible recipient. To apply for a

CMC grant under this part, an applicant

must be an eligible recipient in an

anchor community as defined in

§ 302.2. NTIA will rely on the following

sources of information to determine

whether an applicant is an eligible

recipient:

T

ABLE

1

TO

P

ARAGRAPH

(a)

Type NTIA Validation method

Historically Black College or University (HBCU) Most recent NCES list of HBCUs.

Hispanic-Serving Institution (HSI) ....................... Defined as eligible or potentially eligible in the most recent Dep’t of Education Eligibility Matrix

available, in the HSI category.

Tribal College or University (TCU) ..................... Most recent NCES list of TCUs.

Alaska Native and Native Hawaiian (ANNH) ..... Defined as eligible or potentially eligible in the most recent Dep’t of Education Eligibility Matrix

available, in the ANNH or ANNH F categories.

Predominantly Black Institution (PBI) ................. Defined as eligible or potentially eligible in the most recent Dep’t of Education Eligibility Matrix

available, in the PBI F or PBI A categories.

Asian American and Native American Pacific Is-

lander-Serving Institution (AANAPISI). Defined as eligible or potentially eligible in the most recent Dep’t of Education Eligibility Matrix

available, in the AANAPISI or AANAPISI F categories.

Native American-Serving Non-Tribal Institution

(NASNTI). Defined as eligible or potentially eligible in the most recent Dep’t of Education Eligibility Matrix

available, in the NASNTI or NASNTI F categories.

(b) Eligibility for consortia members.

For consortium applications led by

eligible recipients described in

paragraph (a) of this section, NTIA will

require that any Minority Business

Enterprise (MBE) consortium member

self-certify that it is a MBE-designated

entity. For consortium members that

claim tax-exempt status, NTIA will

utilize the Internal Revenue Service’s

501(c)(3) certification portal/database to

verify the consortium member’s tax-

exempt status.

§ 302.4 Application requirements.

(a) Contents for an application. An

application for funds for the Connecting

Minority Communities Pilot Program

must consist of the following

components:

(1) Project narrative. The project

narrative should describe a clearly

defined project that best achieves the

purposes of the CMC Pilot Program. The

project narrative must demonstrate that

every project, activity, and cost listed in

the application meets the eligible use

requirements in § 302.7. The project

narrative should include the following

information:

(i) Project justification. Please

describe the primary goals of your

project, a description of the community

needs and challenges that your

proposed project will address and who

will directly benefit from your project,

including the institution, the anchor

community, students, minority business

enterprises and/or tax-exempt non-

profit organizations. The HBCU, TCU, or

MSI applicant must include the

following information (or as much of the

information as is reasonably available to

the institution), to include any

supplementary information to explain

the data:

(A) Student population size;

(B) Number and percentage of

students that are eligible to receive

Federal Pell Grants;

(C) Number and percentage of

students that receive other need-based

financial aid from the Federal

Government, a State, or that institution;

(D) Number and percentage of

students that qualify as low-income

consumers for the purposes of the

program carried out under 47 CFR part

54, subpart E, or any successor

regulations;

(E) Number and percentage of

students that are low-income

individuals as that term is defined in

section 312(g) of the Higher Education

Act of 1965 (20 U.S.C. 1058(g)); and

(F) Number and percentage of

students that have been approved to

receive unemployment insurance

benefits under any Federal or State law

since March 1, 2020.

(ii) Project activities. Please provide

details about the specific grant-funded

activities you plan to carry out; who

will plan, implement, and manage your

project, including the lead organization

and principal partner organizations; and

a project schedule, including significant

milestones that describe when and in

what sequence your project activities

will occur.

(iii) Project results. Please provide a

description of your project’s intended

results and how you plan to evaluate the

benefits of your project. Please describe

proposed metrics, what data you plan to

collect, and the evaluation

methodologies.

(2) Project budget. A project budget

for all proposed projects and activities

to be funded by the grant funds must be

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reasonable and the allocation of funds

must sufficient to complete the tasks

outlined in the project narrative. Budget

clarity and cost effectiveness are

essential. The budget is a description of

the resources the applicant proposes to

use to complete the project in the time

period that the applicant specifies. The

budget should include the cost of all

items needed to complete the project.

The administrative requirements, cost

principles, and audit requirements

listed in 2 CFR part 200, the Uniform

Administrative Requirements, Cost

Principles, and Audit Requirements for

Federal Awards, will be incorporated

into each award.

(3) Budget narrative. The application

must include a budget narrative that

clearly relates each of the activities the

applicant proposes in the Project

Narrative to the relevant section of the

Project Budget.

(b) Due dates—application deadline.

The applicant must submit the

completed application by the

application deadline provided in the

Notice of Funding Opportunity, which

will be subsequently published by NTIA

and publicly accessible at

www.grants.gov. Failure to meet the

application deadline will generally

preclude the applicant from receiving

consideration for a grant award.

§ 302.5 Approval and award.

(a) NTIA will review each application

for compliance with the requirements of

this part.

(b) NTIA may request additional

information from the applicant, with

respect to any of the application

submission requirements of § 302.4,

prior to making a recommendation for

an award. Failure to submit such

additional information may preclude

the applicant from further consideration

for award.

(c) When making grant awards, NTIA

will coordinate with other Federal

agencies, including the Commission, the

National Science Foundation, and the

Department of Education, to ensure the

efficient expenditure of Federal funds,

including by preventing multiple

expenditures of Federal funds for the

same purpose.

(d) The Assistant Secretary will

recommend to the National Institute of

Standards and Technology (NIST),

Grants Management Division, approval

of grant awards to qualifying applicants.

NIST, serving as the Grants Office for

the CMC grant program, will then issue

grant awards in writing to the successful

applicants.

§ 302.6 Distribution of grant funds.

(a) Funding allocation. Except as

provided in paragraph (b) of this

section—

(1) In general. (i) Grant funds for each

eligible recipient that meets the

eligibility and/or certification

requirements set forth in § 302.3 will be

allocated to the applicants with the

greatest unmet financial needs, based on

evaluation of the following data

provided by the applicant (including

any supplementary information

provided to explain the data) or by other

Federal agencies:

(A) Student population size;

(B) Number and percentage of

students that are eligible to receive

Federal Pell Grants;

(C) Number and percentage of

students that receive other need-based

financial aid from the Federal

Government, a State, or that eligible

recipient;

(D) Number and percentage of

students that are qualifying low-income

consumers for the purposes of the

program carried out under 47 CFR part

54, subpart E, or any successor

regulations;

(E) Number and percentage of

students that are low-income

individuals as that term is defined in

section 312(g) of the Higher Education

Act of 1965 (20 U.S.C. 1058(g)); and

(F) Number and percentage of

students that have been approved to

receive unemployment insurance

benefits under any Federal or State law

since March 1, 2020.

(ii) Upon submission, NTIA will

assess each institution’s student body-

based unmet financial needs. These

assessments will be compared across all

submitted applications during the merit

review phase and program eligibility

determinations will be made based on

an evaluation of the data provided and

any accompanying explanatory

information. Final recommendations for

project approval and grant funding will

generally be made for those eligible

anchor institutions that have

demonstrated the greatest unmet

financial need.

(2) Historically Black colleges or

universities set-aside. In accordance

with the requirement set forth in the

Consolidated Appropriations Act, 2021,

at least 40 percent of the grant funds

awarded pursuant to the CMC Pilot

Program will be set aside for

distribution to qualifying historically

Black colleges or universities.

(3) Student support set-aside. In

accordance with the requirement set

forth in the Consolidated

Appropriations Act, 2021, at least 20

percent of grant funds awarded

pursuant to the CMC Pilot Program will

be set aside for eligible HBCUs, TCUs

and MSIs to provide broadband internet

access service or eligible equipment to

their students.

(b) Additional notices of funding

opportunity. Grant funds that are not

distributed under paragraph (a) of this

section may be made available to

applicants through subsequent Notices

of Funding Opportunity, which will be

published by NTIA and publicly

accessible via www.grants.gov.

§ 302.7 Eligible uses for grant funds.

(a) Eligible uses. In general and

subject to the more specific uses listed

in paragraphs (a)(1) through (3) of this

section, grant funds awarded to HBCUs,

TCUs or MSIs may be used as

appropriate to facilitate educational

instruction and learning, including

through remote instruction; and grant

funds awarded to consortia including

Minority Business Enterprises (MBEs) or

Tax-Exempt Organizations may be used

to operate that MBE or Tax-Exempt

Organization. Grant funds awarded

under this part may only be used for the

following purposes:

(1) The purchase of broadband

internet access service, including the

installation or upgrade of broadband

facilities on a one-time, capital

improvement, basis in order to increase

or expand broadband capacity and/or

connectivity at the eligible institution;

(2) The purchase or lease of eligible

equipment and devices for student or

patron use, subject to any restrictions

and prohibited uses identified in

paragraph (d) of this section; and

(3) To hire and train information

technology personnel who are a part of

the eligible anchor institution, MBE or

Tax-Exempt Organization.

(b) Student priority for the provision

of broadband services, devices, and

equipment. The HBCUs, TCUs or MSI

applicant must certify that if it receives

a grant under this part to provide

broadband internet access service or

eligible equipment to students that it

will, as a condition of that grant,

prioritize students in need, in

accordance with the following criteria:

(1) Students who are eligible to

receive Federal Pell Grants;

(2) Students who receive any other

need-based financial aid from the

Federal Government, a State, or the

eligible recipient;

(3) Students who are qualifying low-

income consumers for the purposes of

the program carried out under 47 CFR

part 54, subpart E, or any successor

regulations;

(4) Students who are low-income

individuals as that term is defined in

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section 312(g) of the Higher Education

Act of 1965 (20 U.S.C. 1058(g)); or

(5) Students who have been approved

to receive unemployment insurance

benefits under any Federal or State law

since March 1, 2020.

(c) Prioritization of students and

patrons without equipment and/or

broadband access. Any recipient that

lends or provides eligible equipment to

students or patrons must prioritize the

lending or providing of such equipment

or devices to students or patrons that

the recipient believes do not have access

to such equipment.

(d) Prohibited uses. The sale or

transfer of any portion of the grant-

funded equipment for a thing (including

a service) of value during the life of

equipment is prohibited. Recipients are

required to comply with the property

standards, including the use and

disposition requirements, contained in 2

CFR 200.311 through 200.316, and with

the terms and conditions set forth in the

grant award.

§ 302.8 Continuing compliance.

(a) The applicant must certify that it

has complied with the required

statutory and programmatic conditions

in submitting its application.

(b) A grant recipient must submit on

an annual basis, 30 days after the end

of each Federal fiscal year in which

grant funds are available, a certification

regarding compliance and use of CMC

grant funds as outlined in § 302.7.

(c) Where a recipient knowingly

provides false or inaccurate information

in its certification related use of CMC

grant funds, the recipient shall—

(1) Not be eligible to receive the grant

under this part;

(2) Return any grant awarded under

this part during the time that the

certification was not valid; and

(3) Not be eligible to receive any

subsequent grants under this part.

§ 302.9 Financial and administrative

requirements.

(a) General. The requirements of 2

CFR part 200, the Uniform

Administrative Requirements, Cost

Principles, and Audit Requirements for

Federal Awards, govern the

implementation and management of

grants awarded under this part. Awards

issued pursuant to this program will

also be subject to the Department of

Commerce Standard Terms and

Conditions for Financial Assistance

Awards that are in effect on the date of

the award. The current version, dated

November 12, 2020, is accessible at:

https://www.commerce.gov/sites/

default/files/2020-11/

DOC%20Standard%20Terms%

20and%20Conditions%20-

%2012%20November

%202020%20PDF_0.pdf. Awards issued

pursuant to this program may also be

subject to specific award conditions as

authorized by 2 CFR 200.208.

(b) Reporting requirements—(1)

Performance reports. Each grant

recipient shall submit semi-annual and

annual performance reports to NTIA,

following the procedures of 2 CFR

200.329. Semi-annual performance

reports are due within 30 calendar days

after the reporting period. Annual

performance reports are due within 90

calendar days after the reporting period,

except when a final report is required

under § 302.10.

(2) Financial reports. Each recipient

shall submit quarterly financial reports

to NTIA and the National Institute of

Standards and Technology (NIST),

following the procedures of 2 CFR

200.328, within 30 calendar days after

the reporting period, except when a

final financial report is required under

§ 302.10.

(c) Audit requirements. All CMC grant

awards are subject to audit in

accordance with 2 CFR part 200, subpart

F and the Department of Commerce

Financial Assistance Standard Terms

and Conditions. Specifically, 2 CFR part

200, subpart F, adopted by the

Department of Commerce through 2 CFR

1327.101 requires any non-federal entity

(as defined in 2 CFR 200.1) that expends

Federal awards of $750,000 or more in

the recipient’s fiscal year to conduct a

single or program-specific audit in

accordance with the requirements set

out in subpart F. Additionally, unless

otherwise specified in the terms and

conditions of the award, entities that are

not subject to subpart F of 2 CFR part

200 (e.g., commercial entities) that

expend $750,000 or more in DOC funds

during their fiscal year must submit to

the Grants Officer either: A financial

related audit of each DOC award or

subaward in accordance with Generally

Accepted Government Auditing

Standards; or a project specific audit for

each award or subaward in accordance

with the requirements contained in 2

CFR 200.507. Applicants are reminded

that NTIA, NIST, the Department of

Commerce Office of Inspector General,

or another authorized Federal agency

may conduct an audit of an award at

any time.

§ 302.10 Closeout.

(a) Expiration of the right to incur

costs. The right to incur programmatic

costs under this part will expire at the

end of the period of performance. The

right to incur closeout costs under this

part will expire at the end of the 120-

day closeout period, unless this period

is extended in writing by the Grants

Officer.

(b) Final submissions. Within 120

calendar days after the completion of

projects and activities funded under this

part, but in no event later than the

closeout period expiration date

identified in paragraph (a) of this

section, each grant recipient must

submit—

(1) A final financial report to NTIA/

NIST, following the procedures of 2 CFR

200.344(a); and

(2) A final performance report to

NTIA/NIST, following the procedures of

2 CFR 200.344(a).

(c) Disposition of unexpended

balances. Any funds that remain

unexpended after closeout shall cease to

be available to the recipient and shall be

returned to the Federal Government.

§ 302.11 Waiver authority.

It is the general intent of NTIA not to

waive any of the provisions set forth in

this part. However, under extraordinary

circumstances and when it is in the best

interest of the Federal government,

NTIA, upon its own initiative or when

requested, may waive the provisions in

this part. Waivers may only be granted

for requirements that are discretionary

and not mandated by statute or other

applicable law. Any request for a waiver

must set forth the extraordinary

circumstances for the request.

§ 302.12 Program termination.

Except with respect to the report

required under the Consolidated

Appropriations Act, 2021, Division N,

Title IX, section 902(c)(7), and the

authority of the Secretary of Commerce

and the Inspector General of the

Department of Commerce described in

section 902(c)(8), the CMC Pilot

Program, including all reporting

requirements under section 902, shall

terminate on the date on which the

amounts made available to carry out the

CMC Pilot Program are fully expended.

[FR Doc. 2021–12454 Filed 6–14–21; 8:45 am]

BILLING CODE 3510–60–P

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