Implementation of Telecommunications Provisions of the Agricultural Improvement Act of 2018
| Published date | 17 March 2022 |
| Record Number | 2022-05496 |
| Section | Rules and Regulations |
| Court | Rural Utilities Service |
Federal Register, Volume 87 Issue 52 (Thursday, March 17, 2022)
[Federal Register Volume 87, Number 52 (Thursday, March 17, 2022)]
[Rules and Regulations]
[Pages 15031-15032]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-05496]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 87, No. 52 / Thursday, March 17, 2022 / Rules
and Regulations
[[Page 15031]]
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
[Docket Number RUS-20-TELECOM-0044]
7 CFR Parts 1735 and 1737
RIN 0572-AC48
Implementation of Telecommunications Provisions of the
Agricultural Improvement Act of 2018
AGENCY: Rural Utilities Service, USDA.
ACTION: Final rule; confirmation.
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SUMMARY: The Rural Utilities Service, a Rural Development agency of the
United States Department of Agriculture (USDA), hereinafter referred to
as ``RUS'' or ``the Agency,'' published in the Federal Register on
September 10, 2021, a final rule with request for comments. This
document presents the opportunity for the Agency to provide its
responses to the public comments received on the final rule and to
confirm the final rule as published.
DATES: March 17, 2022.
FOR FURTHER INFORMATION CONTACT: Laurel Leverrier, Assistant
Administrator, Telecommunications Program, Rural Utilities Service,
U.S. Department of Agriculture, email: [email protected],
telephone (202) 720-9556.
SUPPLEMENTARY INFORMATION: The RUS published a final rule with request
for comments in the Federal Register on September 10, 2021 at 86 FR
50604. The final rule modified existing regulations to implement
statutory provisions of the Agriculture Improvement Act of 2018 (2018
Farm Bill).
The comment period on the final rule closed November 9, 2021.
Comments were received from five respondents. The comments provided and
Agency responses are as follows:
Respondent One
Respondent one is an individual that offered general comments on
the importance of connectivity and how it can benefit rural areas and
farmers.
Agency Response: Thank you for your comment.
Respondent Two
Respondent two is a small company located in Kansas that started up
specifically to offer broadband service with a grant through a COVID-19
response program. The company had to take on additional debt in order
to expand their service and have provided general comments on their
experience with providing service to a small area and the challenges
they continue to face. They ``would like to see refinancing limits to
100 percent loans and 50 percent for non-RUS loans.'' They express the
need for easier access to capital for network upgrades.
Agency Response: Thank you for your comment.
Respondent Three
Respondent three is an organization that represents its member
telecommunications companies and advocates on their behalf. They
provided a general discussion on the changes made to the regulation and
offered the following: ``The proposed rules for implementing the
changes to the Rural Telephone Loan Program represent a good faith and
commendable effort to carry out the will of Congress expressed in the
2018 Farm Bill, and USDA has the benefit of decades of experience (and
countless success stories) at RUS in supporting rural telecom and
coordinating with other federal programs. As RUS begins administering
the revamped program, however, it will be important to recommit to such
efforts, including identifying where providers are receiving USF or
other program support to deploy to at least the RUS broadband standard,
and limiting future USDA awards in those areas to the recipients of
support or funding from these other programs instead of duplicating the
existing network and putting scarce federal resources at risk.''
As part of their concern for identifying where existing providers
are located, they recommended adding to Sec. 1735.12 on nonduplication
``that such loan will not results in duplication of lines, facilities,
or systems that are obligated to be built in the area in question to
provide reasonably adequate services under other programs administered
by the Agency or any other federal Agency.''
Agency Response: The Agency supports the respondent's comment and
the Agency meets with other federal agencies that support the
deployment of broadband facilities on a regular basis. We appreciate
your suggestion and will keep it under consideration for a future
change to the regulation. As the Agency works with our other federal
partners, we will develop an overall strategy that ensures the most
efficient use of all federal dollars allocated to providing broadband
service.
Respondent Four
Respondent four is an existing Native American RUS borrower that
has been in operation over 60 years. They have outstanding loans in the
telecommunications and broadband programs. They ``strongly support the
included federal rule amendments and urge their expeditious
implementation by the RUS.'' In support of and relating to these
changes, the company offered a detailed summary of their existing
operations and their hard work in providing modern, state-of-the-art
telecommunications services to its customers. Their broadband
penetration ``sits at approximately 58 percent and while the company
understands the importance of making its broadband services more
affordable, it has been unable to reduce its pricing given financial,
cost recovery needs. As a small company providing broadband and voice
services over a large, remote, and thinly populated area, the company
faces significant cost recovery challenges.'' In recognition of their
cost recovery and price affordability concerns, they have been in
discussions with the Agency on extensions, revised loan terms or full
refinancing options.
As to implementation of the final rule and issuance of the
referenced funding opportunity announcement, ``the borrower urges RUS
to move swiftly in its process, issuing the required public notice at
the earliest opportunity. Furthermore, the company requests that the
RUS in making funds available for refinancing establish a process for
receiving and reviewing applications that fairly takes into account the
interest of the company and other service providers.''
In its summary, the borrower ``urges the RUS to sufficiently
clarify within the released Notice of Funding
[[Page 15032]]
Opportunity the differences in the informational requirements, review
processes and the estimated timelines that will apply with respect to
the RUS review of refinance applications vs. original loan
applications. Also, given the informational requirements and steps
necessary for full review and final action by the RUS should not be as
extensive for refinance applications, the borrower encourages the RUS
to implement a timeline for its acceptance and review of refinance
applications that is different than, and much shorter, that the
timelines will be established for the submittal, review and action on
applications for new infrastructure loans.''
Agency response: The Agency is in the final phase of the funding
announcement to open the Infrastructure Program to the new refinancing
opportunities. The funding announcement will include the requirements
that need to be satisfied to receive the refinancing. Applications will
be processed as soon as they are submitted.
Respondent Five
Respondent five is a national trade association that represents
small, rural telecommunications providers across rural America. Many of
the rural location exchange carriers they represent have a long-
standing relationship with the Agency going back more than 75 years.
The respondent ``supports RUS' efforts that streamline the Loan Program
and eliminate unnecessary requirements so that the Program operates
more efficiently. In addition, the respondent supports some of the more
substantive changes made to the Loan Program rules. Specifically,
creating a minimum retail broadband service speed standard of 25/3 Mbps
will help ensure rural areas are not left behind more populated areas
when it comes to broadband service. In addition, broader loan
restructuring and refinancing authority will allow RUS borrowers to
take advantage of better interest rates. Finally, the creation of a
public notice requirement for loan applications will help ensure funds
are not used to duplicate existing networks; however, RUS should
strengthen this provision by directly contacting incumbent service
providers to let them know of a submitted application.''
Agency response: The Agency believes that the public notice
requirements, set out by statute, sufficiently put incumbent service
providers on notice that an application has been submitted under any
program at USDA for retail broadband assistance.
The Agency did not receive any significant adverse comments during
the public comment period on the final rule, and therefore confirms the
rule without change.
Christopher A. McLean,
Acting Administrator, Rural Utilities Service.
[FR Doc. 2022-05496 Filed 3-16-22; 8:45 am]
BILLING CODE 3410-15-P
