[Federal Register Volume 76, Number 176 (Monday, September 12, 2011)]
[Rules and Regulations]
[Pages 56091-56094]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-23152]
========================================================================
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.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 76, No. 176 / Monday, September 12, 2011 /
Rules and Regulations
[[Page 56091]]
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Part 1735
RIN 0572-AC24
Expansion of 911 Access; Telecommunications Loan Program
AGENCY: Rural Utilities Service, USDA.
ACTION: Interim rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: The Rural Utilities Service (RUS) is amending its regulations
to implement the Expansion of 911 as authorized by section 6107 of the
Food, Conservation, and Energy Act of 2008 (2008 Farm Bill). This
amendment will codify the Secretary's authority to make loans in five
areas of eligibility to expand or improve 911 access and integrated
emergency communications systems in rural areas for the
Telecommunications Loan Program.
DATES: This rule is effective on September 12, 2011. Comments must be
submitted on or before November 14, 2011.
ADDRESSES: Submit comments by either of the following methods:
Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow instructions for submitting comments.
Postal Mail/Commercial Delivery: Please send your comment
addressed to Michele Brooks, Director, Program Development and
Regulatory Analysis, USDA--Rural Utilities Service, 1400 Independence
Avenue, STOP 1522, Room 5159, Washington, DC 20250-1522.
Other Information: Additional information about the Agency and its
programs is available on the Internet at http://www.rurdev.usda.gov/index.html.
FOR FURTHER INFORMATION CONTACT: David Villano, Assistant
Administrator, Telecommunications Program, USDA--Rural Utilities
Service, 1400 Independence Avenue, SW., STOP 1590, Room 5151-S,
Washington, DC 20250-1590. Telephone number: (202) 720-9554, Facsimile:
(202) 720-0810.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This rule has been determined to be not significant for the
purposes of Executive Order 12866, and therefore, has not been reviewed
by the Office of Management and Budget.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance (CFDA) number assigned
to this program is 10.851, Rural Telephone Loans and Loan Guarantees.
The Catalog is available on the Internet at http://www.cfda.gov.
Executive Order 12372
This rule is excluded from the scope of Executive Order 12372,
Intergovernmental Consultation, which may require a consultation with
State and local officials. See the final rule related notice entitled,
``Department Programs and Activities Excluded from Executive Order
12372'' (50 FR 47034).
Information Collection and Recordkeeping Requirements
The information collection and recordkeeping requirements contained
in this rule are approved under OMB control number 0572-0079. This rule
contains no additional information collection or recordkeeping
requirements under OMB control number 0572-0079 that would require
approval under the Paperwork Reduction Act of 1955 (44 U.S.C. chapter
35).
National Environmental Policy Act Certification
The Agency has determined that this rule will not significantly
affect the quality of the human environment as defined by the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). Therefore,
this action does not require an environmental impact statement or
assessment.
Regulatory Flexibility Act Certification
The Regulatory Flexibility Act (5 U.S.C. 601-612) (RFA) generally
requires an agency to prepare a regulatory flexibility analysis of any
rule subject to notice and comment rulemaking requirements under the
Administrative Procedure Act or any other statute unless the Agency
certifies that the rule will not have an economically significant
impact on a substantial number of small entities. Small entities
include small businesses, small organizations, and small governmental
jurisdictions.
In compliance with the RFA, the Agency has determined that this
action, while mostly affecting small entities, will not have a
significant economic impact on a substantial number of these small
entities. The Agency made this determination based on the fact that
this regulation only impacts those who choose to participate in the
program. Small entity applicants will not be affected to a greater
extent than large entity applicants.
Executive Order 12988
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. The Agency has determined that this rule meets the
applicable standards provided in Sec. 3 of the Executive Order. In
addition, all state and local laws and regulations that are in conflict
with this rule will be preempted, no retroactive effort will be given
to this rule, and, in accordance with Sec. 212(e) of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 6912(e)),
administrative appeal procedures, if any, must be exhausted before an
action against the Department or its agencies may be initiated.
Unfunded Mandates
This rule contains no Federal mandates (under the regulatory
provisions of Title II of the Unfunded Mandates Reform Act of 1995) for
State, local, and Tribal governments for the private sector. Thus, this
rule is not subject to the requirements of Sec. Sec. 202 and 205 of
the Unfunded Mandates Reform Act of 1995.
Executive Order 13132, Federalism
The policies contained in this rule do not have any substantial
direct effect on states, on the relationship between the national
government and the states, or on the distribution of power and
responsibilities among the various levels of government. Nor does this
rule impose substantial direct compliance costs on state and local
governments. Therefore, consultation with the states is not required.
[[Page 56092]]
Executive Order 13175, Consultation and Coordination With Indian Tribal
Governments
Over the last year, the Agency has conducted extensive Tribal
consultations related to the implementation of the Substantially
Underserved Trust Area (SUTA) provisions of the 2008 Farm Bill. During
those consultations all RUS programs were discussed. Expanded emergency
communications capabilities were among the issues brought up in the
consultations. A specific regulation on SUTA is being prepared. Tribal
entities are fully eligible to apply for financing under this provision
and nothing under this regulation would affect SUTA eligibility.
The policies contained in this rule do not impose substantial
unreimbursed compliance costs on Indian Tribal governments or have
Tribal implications that preempt Tribal law.
E-Government Act Compliance
The Agency is committed to the E-Government Act, which requires
Government agencies in general to provide the public the option of
submitting information or transacting business electronically to the
maximum extent possible.
Discussion of Interim Rule
This interim rule codifies section 6107 of the 2008 Farm Bill.
Section 6107 amended the Rural Electrification Act of 1936 (7 U.S.C.
940e) to allow for the financing of facilities to expand emergency 911
access in rural areas. The statutory language is very prescriptive,
defining eligible entities, financing purposes, and loan terms and
security requirements. As such, the amendments to 7 CFR part 1735
simply incorporate those statutory requirements within the regulatory
framework prescribing requirements for the telecommunications loan
programs. Therefore, it is not necessary to issue a proposed rule since
the codification represents a strict implementation of the statutory
requirements.
Background
A. Introduction
The Agency improves the quality of life in rural America by
providing investment capital for deployment of rural telecommunications
infrastructure. Financial assistance is provided to rural utilities;
municipalities; commercial corporations; limited liability companies;
public utility districts; Indian Tribes; and cooperative, nonprofit,
limited-dividend, or mutual associations. In order to achieve the goal
of increasing economic opportunity in rural America, the Agency
finances infrastructure that enables access to a seamless, nationwide
telecommunications network. With access to the same advanced
telecommunications networks as its urban counterparts, especially
broadband networks designed to accommodate distance learning, telework,
and telemedicine, rural America will eventually see improving
educational opportunities, health care, economies, safety and security,
and ultimately higher employment. The Agency shares the assessment of
Congress, State and local officials, industry representatives, and
rural residents that broadband service is a critical component to the
future of rural America and modern emergency communications
capabilities are critical to the safety and security of all Americans.
The Agency is committed to ensuring that rural America will have access
to affordable, reliable, telecommunications and broadband services and
to provide a healthy, safe, and prosperous place to live and work.
B. Regulatory History
Following the September 11, 2001, attacks on the United States,
significant Congressional attention was placed on weaknesses in the
nation's emergency communications capabilities. The ability of rural
communities, carriers and emergency responders to keep up with changing
communications technologies was and continues to be a concern of
emergency response professionals. Interoperability, which is the
ability of emergency responders from various agencies and jurisdictions
to communicate with each other, is also a pressing national need.
In 2002, the Congress gave the RUS statutory authority to ``to
expand or improve 911 access and integrated emergency communications
systems in rural areas'' in section 315 of the RE Act (6102 of the 2002
Farm Security and Rural Investment Act of 2002). No regulations were
ever proposed to implement that section.
In 2008, the Congress re-authorized section 315 of the RE Act and
added language to further define eligible loan purposes. It also
clarified that projects could be funded from appropriations made to the
RUS telecommunications program.
In 2011, the President launched a major initiative to use wireless
4G technology to create a nation-wide interoperable emergency
communications network. The plan contemplates using dual-use 4G
wireless technologies in rural areas to address public safety and
private sector communications needs.
Rural areas face significant challenges in deploying emergency
communications systems. The 911 Program Office housed within the
National Transportation Safety Administration specifically noted that
``(r)ural and Tribal 911 centers face special challenges. They
typically serve areas that are large geographically but less-densely
populated than urban areas. Because it may take first responders longer
to reach the scene of an emergency, call-takers in public safety
answering points (PSAPs) serving rural areas may be required to stay on
the phone longer with callers or provide more extensive emergency
instruction to callers until help arrives. And in medical emergencies,
hospitals are often farther away which results in extended transport
times, making the ambulance unavailable for other calls in its response
area in areas that may have very limited coverage. The responder
resources are typically limited in rural areas which can be quickly
overwhelmed in disasters or large-scale incidents. The program office
went on to observe that ``supporting rural PSAPs is vitally important,
particularly because it may take longer for help to arrive in rural
areas, and the call-taker may make an even bigger difference in the
outcome of an emergency situation.'' (see http://www.911.gov/911-issues/challenges.html )
The sixty-minute period immediately following a traumatic injury,
like an injury resulting from a car crash is known as the ``golden
hour.'' The risks of death or permanent injury increase dramatically if
medical attention is not given within that first hour. In rural
America, distance and sparse population work against the quick
discovery and treatment of injuries resulting from an individual or
mass emergency. In rural areas the ability to reach a person in
distress can be the difference between life and death or recovery and
disability.
Congress twice enacted section 315 to give the RUS flexible
financial tools to help rural communities, service providers and
governmental entities address their emergency communications needs. By
giving clear loan authority to the agency, RUS would have the tools to:
(a) Leverage public and private resources to speed the rural deployment
of a dual-use public safety/commercial wireless network; (b) address
homeland security communications needs along America's rural
international borders; (c) finance enhanced 911 capabilities for
carriers and communities to precisely locate a
[[Page 56093]]
rural wireless call to 911; and (d) to finance next-generation 911
upgrades, which would allow citizens to contact 911 via text message or
send to emergency responders cell phone photos or short videos of a
crime scene or accident location. The E911 location accuracy
requirements pose unique challenges for rural wireless carriers. The
new authority would give the Agency clear authority to finance wireless
upgrades which relate to public safety and security, even if it does
not finance the entire wireless communications systems.
Without this authority, RUS would be very limited in its ability to
make financing available to address specific rural emergency
communications needs. Without this authority, the RUS
telecommunications statute would generally prohibit the Agency from
financing municipal investments.
As a loan program which must meet the rigorous financial and
engineering feasibility requirements, the Agency expects no impact on
its subsidy rate.
RUS has conducted extensive Tribal consultations in 2010 and 2011
related to implementation of new authorities for substantially
underserved trust areas. Through those consultations, the Agency had
discussions with Tribal leaders on the entire portfolio of RUS
programs. This authority could be useful in addressing some of the
emergency communications needs raised by Tribal leaders in some of
those discussions. Tribal areas are among the regions of the United
States with the least connectivity to 911 and other emergency
communications systems.
The regulation would simply codify the authority contained in
section 315 of the RE Act.
C. Rule Changes
The amendment to 7 CFR Part 1735 implements section 315 of the
Rural Electrification Act of 1936 (RE Act) as provided in section 6107
of the Food, Conservation, and Energy Act of 2008 by clarifying that
the expansion of 911 access & integrated interoperable emergency
communications systems are eligible purposes of the RE Act.
Section 6107 of the Food, Conservation, and Energy Act of 2008
added section 315 of RE Act to clearly authorize the RUS to make loans
for the following purposes:
(1) 911 access;
(2) Integrated interoperable emergency communications, including
multiuse networks that provide commercial or transportation information
services in addition to emergency communications services;
(3) Homeland security communications;
(4) Transportation safety communications; or
(5) Location technologies used outside an urbanized area.
The provision also clarified that the Agency could consider State
or local 911 fees to be security for a loan under this section and that
loans may be made in certain circumstances to an emergency
communication equipment provider to accomplish the purposes of this
section where a State or municipality may be prohibited from incurring
debt.
List of Subjects in 7 CFR Part 1735
Loan programs--communications, Reporting and recordkeeping
requirements, Rural areas, Telephone.
For reasons set out in the preamble, Chapter XVII, Title 7 of the
Code of Federal Regulation is amended as follows:
PART 1735--GENERAL POLICIES, TYPES OF LOANS, LOAN REQUIREMENTS--
TELECOMMUNICATIONS PROGRAM
0
1. The authority citation for part 1735 continues to read as follow:
Authority: 7 U.S.C. 901 et seq., 1921 et seq., 6941 et seq.
Subpart B--Loan Purposes and Basic Policies
0
2. Amend Sec. 1735.10 by revising paragraph (a) and adding paragraph
(g) to read as follows:
Sec. 1735.10 General.
(a) Loans made or guaranteed by the Administrator of RUS will be
made in conformance with the Rural Electrification Act of 1936 (RE
Act), as amended (7 U.S.C. 901 et seq.), and 7 CFR chapter XVII. RUS
provides borrowers with specialized and technical accounting,
engineering, and other managerial assistance in the construction and
operation of their facilities when necessary to aid in the development
of rural telephone service and to protect loan security. The Rural
Utilities Service (RUS) makes loans to:
(1) Furnish and improve telephone service in rural areas; and
(2) To finance facilities and equipment which expand, improve or
provide:
(i) 911 access;
(ii) Integrated interoperable emergency communications, including
multiuse networks that provide commercial or transportation information
services in addition to emergency communications services;
(iii) Homeland security communications;
(iv) Transportation safety communications; or
(v) Location technologies used outside an urbanized area.
* * * * *
(g) For the purpose of paragraph (a)(2) of this section, rural
areas means any area, as confirmed by the latest decennial census of
the Bureau of the Census, which is not located within:
(1) A city, town, or incorporated area that has a population of
greater than 20,000 inhabitants; or
(2) An urbanized area contiguous and adjacent to a city or town
that has a population of greater than 50,000 inhabitants, for the
purpose of the definition of rural areas in this section, an urbanized
area means a densely populated territory as defined in the latest
decennial census of the U.S. Census Bureau.
0
3. Amend Sec. 1735.12 by adding paragraph (g) to read as follows:
Sec. 1735.12 Nonduplication.
* * * * *
(g) RUS shall consider the following criteria for loans made for
the purposes described in Sec. 1735.10(a)(2):
(1) In making a preliminary assessment and a credit decision, the
RUS will take into consideration the extent to which the emergency
communications capability or emergency communications benefits already
exist in the affected area and the need expressed by the proposed user
of the emergency communications technology.
(2) The RUS will not consider an application to finance an upgrade
of 911 capabilities or other emergency communications capability by
different providers serving the same geographic area to be
automatically duplicative. For example, RUS will generally not consider
an application from two competing wireless carriers to upgrade their
E911 capabilities in overlapping geographic territories to be
duplicative, however the carrier's competitive situation will be a
relevant consideration in evaluating the ability of a service provider
to repay their loan.
(3) Duplication considerations will be reviewed on the basis of the
emergency communications benefit; the Agency encourages applicants to
fully embrace interoperability to maximize the impact of RUS financed
investments. In the case of dual or multi-use technologies, the extent
to which the proposed non-emergency communications benefits are
available from other providers within the proposed service area will be
[[Page 56094]]
considered in determining loan feasibility.
0
4. Amend Sec. 1735.14 by adding paragraph (a)(4) to read as follows:
Sec. 1735.14 Borrower eligibility.
(a) * * *
(4) For purposes of Sec. 1735.10(a)(2):
(i) Any entity eligible to borrow from the RUS;
(ii) State or local governments;
(iii) Indian Tribes (as defined in Sec. 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b); or
(iv) An emergency communications equipment provider that in the
sole discretion of RUS offers adequate security for a loan where the
State or local government that has jurisdiction over the proposed
project is prohibited by law from acquiring debt.
* * * * *
0
5. Amend Sec. 1735.22 by redesignating paragraphs (c) through (i) as
paragraphs (d) through (j), and adding new paragraph (c) to read as
follows:
Sec. 1735.22 Loan security.
* * * * *
(c) The RUS will consider Government-imposed fees related to
emergency communications (including State or local 911 fees) which are
pledged to the repayment of a loan as security.
* * * * *
Dated: August 26, 2011.
Jessica Zufolo,
Acting Administrator, Rural Utilities Service.
[FR Doc. 2011-23152 Filed 9-9-11; 8:45 am]
BILLING CODE P