Legal Alerts and Articles
Broadband Grants Notice of Funds Availability Issued
On July 1, 2009, the Rural Utilities Service ("RUS") of the Department of Agriculture and the National Telecommunications and Information Administration ("NTIA") of the Department of Commerce released a Notice of Funds Availability ("NOFA") announcing the policies and application procedures for the first round of funding for broadband initiatives established pursuant to the American Recovery and Reinvestment Act of 2009 ("Recovery Act"). Pursuant to the Recovery Act, the RUS has established the Broadband Initiatives Program ("BIP"), and the NTIA has established the Broadband Technology Opportunities Program ("BTOP").
Program Summaries
BTOP will make grants available for deploying broadband infrastructure in unserved and underserved areas in the United States. There will be three categories of projects funded by BTOP: (a) broadband infrastructure - projects that deliver broadband service through last mile or middle mile facilities; (b) public computer center - projects that expand publicly accessible computer centers, such as community centers, community colleges and public universities; and (c) sustainable broadband adoption - projects that promote broadband demand, including broadband education, awareness, training, access, etc.
BIP will extend loans, grants, and loan/grant combinations to facilitate broadband deployment in rural areas. Grants are to be used to fund applications proposing to exclusively serve remote, unserved, rural areas. Applications which would serve non-remote or underserved areas would be funded by loans or loan/grant combinations. RUS will favor applications that propose a higher percentage of loan funds, and applicants may request one-hundred percent (100%) loan funding if desired.
All applications to fund broadband infrastructure in service areas which are at least seventy-five (75) percent rural are required to be submitted under BIP. However, applicants may also choose to be considered for BTOP funding, but must complete any additional elements required for BTOP applications. NTIA may make choose to make awards to such programs under BTOP if RUS decides not to fund them under BIP.
Application Timeline and Process
Applications for funding under both BTOP and BIP will be accepted from July 14, 2009 until August 14, 2009. Applicants may submit paper applications in limited circumstances (i.e., applicants with disabilities or if electronic filing would impose a hardship), but will generally be required to submit applications electronically. Electronically filed applications are due by 5:00 pm Eastern time on August 14, 2009.
In order to submit an application, all applicants must have a Dun and Bradstreet Data Universal Numbering System ("DUNS") number, and must also be registered with the Central Contractor Registration ("CCR") database and have a current CCR (CAGE) number. (A DUNS number is needed to register with CCR.) Note that processing times may be associated with obtaining DUNS and CAGE numbers, so these should be obtained ahead of time.
There will be a two step review process for the applications. Applicants that are considered the most highly qualified will advance to the second step of the review, during which additional information will be requested from the applicant. The second step of the review for BTOP applications will, among other things, also allow for evaluation and recommendation by the Governors of each state which would be affected by the applications. Awards will be made on a rolling basis, subject to funding availability, and RUS and NTIA intend to start announcing awards on or about November 7, 2009.
Eligibility and Evaluation Criteria
In order to qualify for funding, applicants (and applications) must meet minimum eligibility criteria including, for example, the following: applicants must be an eligible entity; applications must be fully completed and submitted timely; proposed services must meet the NOFA's definition of broadband; proposed projects must be technically feasible; applicants must commit to non-discrimination and interconnection obligations, among other things. A full list of eligibility criteria can be found in Section V of the NOFA. These are the minimum requirements in order to qualify for funding.
Applications for BIP and BTOP funding will then be scored and evaluated based upon objective criteria grouped into four general categories: (1) project purpose; (2) project benefits; (3) project viability; and (4) project budget and sustainability. Each project category (projects under BIP and the three BTOP project categories discussed above) will have its own specific criteria for scoring and evaluation based upon these four general categories. Each application will be scored against the objective criteria, and not against other applications. All of the application review criteria can be found in Section VII of the NOFA.
Applications
Since there is likely to be potentially significant preparatory work involved, companies interested in applying for funds should commence work on applications immediately. Applications and proposed projects should be reviewed carefully to ensure compliance with eligibility criteria and for maximum conformity with scoring and evaluation criteria.
July 2009