[Federal Register Volume 67, Number 201 (Thursday, October 17, 2002)]
[Notices]
[Pages 64298-64306]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-26421]
[[Page 64297]]
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Part VI
Department of Commerce
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National Telecommunications and Information Administration
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Public Telecommunications Facilities Program: Closing Date; Notice
Federal Register / Vol. 67, No. 201 / Thursday, October 17, 2002 /
Notices
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DEPARTMENT OF COMMERCE
National Telecommunications and Information Administration
[Docket No. 000410097-2225-06]
[RIN 0660-ZA11]
Public Telecommunications Facilities Program: Closing Date
AGENCY: National Telecommunications and Information Administration
(NTIA), Commerce.
ACTION: Notice of Closing Date for Solicitation of Television
Applications.
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SUMMARY: Subject to the availability of fiscal year (FY) 2003 funds,
the National Telecommunications and Information Administration (NTIA),
U.S. Department of Commerce, announces the solicitation of applications
for planning and construction grants for public television facilities
under the Public Telecommunications Facilities Program (PTFP).
DATES: Pursuant to 15 CFR 2301.8(b), the NTIA Administrator hereby
establishes the following closing date for the filing of television
applications for PTFP grants. The closing date selected for the
submission of all television applications for FY 2003 is Tuesday,
November 19, 2002. Applications must be received prior to 6 p.m.
Tuesday, November 19, 2002. Applications submitted by facsimile or
electronic means are not acceptable.
ADDRESSES: Application materials may be obtained electronically via the
Internet (http://www.ntia.doc.gov/ptfp). To obtain a printed
application package, submit completed applications, or send any other
correspondence, write to: NTIA/PTFP, Room H-4625, U.S. Department of
Commerce, 1401 Constitution Avenue, NW., Washington, DC 20230.
FOR FURTHER INFORMATION CONTACT: William Cooperman, Director, Public
Broadcasting Division, telephone: (202) 482-5802; fax: (202) 482-2156.
Information about the PTFP can also be obtained electronically via the
Internet (http://www.ntia.doc.gov/ptfp).
SUPPLEMENTARY INFORMATION:
I. Closing Date
In order to assist as many public television stations as possible
in meeting the Federal Communications Commission (FCC) May 2003
deadline to begin digital broadcasting, NTIA announces that all
television applicants for matching grants under the PTFP must file
their applications on or before 6 p.m., Tuesday, November 19, 2002.
Issuance of grants is subject to the availability of FY 2003 funds. At
this time, the Congress is considering the President's request to
appropriate $43.5 million for the PTFP. NTIA intends to divide any
funds appropriated by the Congress into two parts. One portion of the
appropriation will be set aside to fund television applications
submitted in response to this Notice and radio and nonbroadcast
applications submitted in response to a future Notice to be published
by NTIA. A second portion of the appropriation will be set aside to
fund additional phases of multi-phase projects initially funded in FY
2000, FY 2001 and FY 2002. At the appropriate time, notice will be
published in the Federal Register about the final status of funding for
the PTFP. In awarding grants, NTIA will strive to maintain an
appropriate balance between traditional grants and those to stations
converting to digital broadcasting. Information regarding digital
television Broadcast Other projects is included in Section VII of this
document. Section VII also describes revisions of the PTFP Rules which
will be applicable for the FY 2003 Grant Round for television
applications in the Broadcast Other category. The amount of any grants
awarded by NTIA will vary, depending on the approved project. For FY
2002, NTIA awarded $37.4 million in funds to 59 television projects.
The television awards ranged from $21,447 to $1,800,000.
Any applications submitted in response to this Notice which are for
radio or nonbroadcast projects will be returned to the applicant
without review. Applications so returned may be resubmitted at the
appropriate time pursuant to a future Notice establishing a closing
date for radio and nonbroadcast applications. NTIA intends to publish a
Notice announcing the closing date for receipt of radio and
nonbroadcast applications at a later time and anticipates that the
closing date for these applications will be after February 1, 2003.
All television applications will be reviewed as a group according
to the Evaluation Process discussed in Section XI. Because of the FCC
digital conversion deadline, NTIA anticipates that awards for
television digital conversion applications submitted in response to
this Notice will be issued during the second quarter of FY 2003
(January-March 2003). Applications submitted for television replacement
or signal extension projects will be awarded in the fourth quarter of
FY 2003 (July-September 2003) and will compete with applications
submitted in response to the future Notice announcing a closing date
for radio and nonbroadcast applications.
II. Application Forms
All applicants must use the official application form for the FY
2003 grant cycle. This form expires on October 31, 2003, and no
previous versions of the form may be used. Each page of the application
form has the expiration date of 10/31/2003 printed on the bottom line.
To apply for a PTFP grant, an applicant must file an original and five
copies of a timely and complete application on the application form.
Applicants for television projects are requested to supply one
additional copy of their application (an original and six copies), if
this does not create a hardship on the applicant. The current
application form is available on the Internet and will be provided to
applicants as part of the application package upon request.
Notwithstanding any other provision of the law, no person is
required to respond to, nor shall any person be subject to a penalty
for failure to comply with, a collection of information subject to the
requirements of the Paperwork Reduction Act (PRA), unless that
collection displays a currently valid Office of Management and Budget
(OMB) control number. The PTFP application form has been cleared under
OMB control no. 0660-0003.
III. Authority
The Public Telecommunications Facilities Program is authorized by
the Communications Act of 1934, as amended, 47 U.S.C. 390-393, 397-
399(b).
IV. Catalog of Federal Domestic Assistance (CFDA)
CFDA No. 11.550, Public Telecommunications Facilities Program.
V. Regulations
The applicable Rules for the PTFP were published on November 8,
1996 (61 FR 57966). In accordance with provisions provided in 15 CFR
part 2301, section 2301.26, certain requirements of the PTFP are
modified in this Notice for FY 2003. Copies of the 1996 Rules are
posted on the NTIA Internet site and NTIA will make printed copies
available to applicants upon request. Parties interested in applying
for financial assistance should refer to these rules and to the
authorizing legislation (47 U.S.C. 390-393, 397-399b) for additional
information on the program's goals and objectives, eligibility
criteria, evaluation criteria, and other requirements.
[[Page 64299]]
Applicants sending applications must ensure that the carrier will
be able to guarantee delivery of the application by the Closing Date
and Time. Applicants should be aware that all material sent via the
United States Postal Service (including ``overnight'' or ``Express
Mail'') are subject to delivery delays due to increased mail security
procedures at the Department of Commerce. NTIA will not accept
applications posted on the Closing Date or later and received after the
above deadline. However, if an application is received after the
Closing Date due to (1) carrier error, when the carrier accepted the
package with a guarantee for delivery by the Closing Date, or (2)
significant weather delays or natural disasters, NTIA will, upon
receipt of proper documentation, consider the application as having
been received by the deadline.
Applicants submitting applications by hand delivery are notified
that, due to security procedures in the Department of Commerce, all
packages must be cleared by the Department's security office. Entrance
to the Department of Commerce Building for security clearance is on the
15th Street side of the building. Applicants whose applications are not
received by the deadline are hereby notified that their applications
will not be considered in the current Grant Round and will be returned
to the applicant. See 15 CFR 2301.8(c); but see also 15 CFR 2301.26.
NTIA will also return any application which is substantially
incomplete, or when the Agency finds that either the applicant or
project is ineligible for funding under 15 CFR 2301.3 or 2301.4. The
Agency will inform the applicant of the reason for the return of any
application.
All persons and organizations on the PTFP's mailing list will be
sent a notification of the FY 2003 Grant Round. Copies of the
application forms, Final Rules, Closing Date notification and
application guidelines will be available on the NTIA Internet site:
www.ntia.doc.gov/ptfp. Those not on the mailing list or who desire a
printed copy of these materials may obtain copies by contacting the
PTFP at the telephone and fax numbers, at the Internet site, or at
mailing address listed above. Prospective applicants should read the
Final Rules carefully before submitting applications. Television
applicants whose applications were deferred in FY 2002 will be mailed
information regarding the reactivation of their applications.
Applicants whose television projects were deferred from FY 2002 should
carefully review Section VII. Television Broadcasting and Digital
Conversion, regarding policies which apply to the reactivation of their
applications.
Indirect costs for construction applications are not supported by
this program. The total dollar amount of the indirect costs proposed in
a planning application under this program must not exceed the indirect
cost rate negotiated and approved by a cognizant Federal agency prior
to the proposed effective date of the award.
VI. Radio Broadcasting
NTIA is not accepting applications for radio projects at this time
and will publish a Notice in the Federal Register announcing a Closing
Date for radio applications in the future. NTIA will take great care to
ensure that its funding of radio applications reflects its
responsibilities under 47 U.S.C. 393(c) that ``a substantial amount''
of each year's PTFP funds should be awarded to public radio.
VII. Television Broadcasting and Digital Conversion
The FCC's adoption of the Fifth Report and Order in April 1997
requires that all public television stations begin the broadcast of a
digital signal by May 1, 2003.
This deadline is only seven months from the publication date of
this Notice. In FY 2000, NTIA instituted several new policies regarding
applications for projects to convert public television stations to
digital transmission capability. NTIA believes that the policies worked
well and have permitted PTFP to assist in the digital conversion of
over 200 public television stations. These policies are being continued
for the FY 2003 Grant Round and are included in full in this document.
NTIA recognizes that meeting the FCC's deadline is one of the
greatest challenges facing America's public television stations. Over
350 stations must overcome both technical and financial challenges in
order to complete conversion to digital broadcasting within the FCC's
timetable.
In February, the Administration proposed an appropriation of $43.5
million to the PTFP for FY 2003. This proposal is currently before the
Congress. These funds would primarily be used to assist public
television stations in meeting the FCC's deadline. While these sums are
significant, NTIA anticipates that the majority of funds required to
convert all the nation's public television stations will actually come
from non-federal sources.
For FY 2002, NTIA awarded $36.2 million in funds to 52 projects
which assisted public television stations in the conversion to digital
technologies. The awards ranged from $21,447 to $1,800,000 to assist in
the digital conversion of 97 public television stations.
NTIA has considered how best to distribute digital conversion funds
to public television stations through the PTFP. One of NTIA's goals
during the FY 2003 Grant Round is to ensure that PTFP's administrative
procedures as well as its funds can support public television's needs
in meeting the FCC's deadline. Another of NTIA's goals is to maintain
an acceptable balance between equipment replacement projects and
digital television conversion projects.
NTIA is continuing the following policies/procedures instituted
during the FY 2000 grant cycle which will assist public television
stations in the application for and use of PTFP funds for digital
conversion projects.
These policies/procedures are summarized here and then are
discussed fully in parts A through G later in this section.
(A) Digital Television Conversion Projects and Digital Equipment
Replacement
NTIA has established a ``Digital TV List'' which includes the
equipment eligible for PTFP funding under the Broadcast Other category.
NTIA will also use the ``Digital TV List'' for most television
equipment replacement projects and will modify the way it views
television replacement applications.
(B) Multi-Year Funding
NTIA will accept applications under the Broadcast Other category
for phased projects requesting funding for up to three years and which
are intended to enable all of the applicant's public television
stations to meet the FCC's digital broadcasting deadline.
(C) Effective Date for Expenditure of Local Matching Funds
Applicants for digital conversion projects in the Broadcast Other
category may include eligible equipment from the Digital TV List in
their projects when that equipment is purchased with non-federal funds
after July 1, 1999.
(D) Subpriorities for Digital Conversion Projects
NTIA is creating three Subpriorities to aid in the processing of
digital conversion applications.
(E) Funding Levels for Television Projects
NTIA has revised the presumption of funding from 50% Federal share
for
[[Page 64300]]
most television projects to 40%. For digital television conversion
applications, NTIA has established simplified procedures so stations
can qualify for hardship grants up to a 67% Federal share, and will
provide incentives for applicants who request only 25% Federal funding.
(F) Use of CPB Funds
Applicants may use CPB funds as part of their local non-federal
match in cases of clear and compelling need.
(G) Partnerships; Urgency
NTIA encourages partnerships with commercial as well as
noncommercial organizations and clarifies its consideration of urgency
for digital conversion applications. NTIA believes that digital
conversion applications should be afforded high urgency when they
document time-sensitive partnerships, time-sensitive funding
opportunities, or which include the replacement of equipment required
to maintain existing service.
NTIA intends to remain responsive to the equipment replacement
needs of public television stations. NTIA's balancing of equipment
replacement and digital conversion applications is discussed in the
following sections.
In order to assist public television stations in meeting the FCC's
deadline and to facilitate a station's raising non-federal matching
funds required for digital conversion projects, NTIA is modifying its
application procedures in the following areas.
(A) Digital Television Conversion Projects and Digital Equipment
Replacement
For FY 2003, NTIA will support the equipment necessary for a public
television station to comply with the FCC's deadline. This includes
equipment required for digital broadcast of programs produced locally
in analog format as well as the broadcast of digital programming
received from national sources. NTIA is posting on its Internet site a
listing of transmission and distribution equipment (as contained in the
``Digital TV List'') which is eligible for PTFP digital television
conversion funding. Printed copies of this list are also available from
PTFP at the address shown in the Addresses section of this document.
This list was developed in conjunction with the Public Broadcasting
Service and is similar to equipment lists PTFP used during last year's
Grant Round. The Digital TV List includes transmission equipment
(transmitters, antennas, STLs, towers, etc.) as well as distribution
equipment located in a station's master control (routing switchers,
video servers, PSIP generators, digital encoders, etc.). Applications
seeking funding for the equipment necessary to meet the FCC's deadline
will be placed in the Broadcast Other category.
NTIA believes that many stations must replace obsolete equipment in
order to complete their digital conversion projects. NTIA is continuing
its revised policies to permit the replacement of obsolete equipment as
part of digital conversion projects. If the conversion to digital
transmission includes the urgent replacement of an existing item of
equipment, the application will be considered as a Broadcast Other,
rather than as replacement under Priorities 2 or 4. Replacement of
existing equipment then is a normal part of a digital conversion
application.
If the purpose of an application is just for replacement of
urgently needed equipment, even though the equipment is drawn from the
Digital TV List, the application will be classified as a Priority 2 or
4, as appropriate.
Any application which includes equipment replacement as a
justification for the urgency criterion should submit documentation of
downtime or other evidence in support of the urgency evaluation
criterion as contained in Sec. 2301.17 of the PTFP Final Rules. The
need to replace current equipment in order to maintain existing
services will, in many cases, strengthen the urgency criterion of a
digital conversion application.
Because of the requirement that all public television stations
begin digital broadcasts, all public television applications, whether
submitted for Priority 2, Priority 4 or the Broadcast Other category,
should include the station's comprehensive plan for digital conversion
to meet the FCC's deadline and explain how the requested equipment is
consistent with that plan. If the applicant is still developing its
plan for digital conversion, the application should address how the
requested equipment will be consistent with the overall objective of
converting the facility for digital broadcasting. Failure to provide
detailed information on the applicant's proposed or existing digital
conversion plan will place a television application at a competitive
disadvantage during the evaluation of the technical qualification
criterion as described in 15 CFR 2301.17 of the PTFP Rules.
NTIA calls applicants' attention to the fact that television
production equipment is not included on the Digital TV List but will be
found on other equipment lists posted on the NTIA Internet site or
available from NTIA by mail. NTIA notes that while a television station
must use digital transmission and distribution equipment to begin
digital broadcasting, digital production equipment is not required to
meet the FCC's deadline. As the FCC deadline approaches, NTIA has
reluctantly concluded that, with the funds available to it in FY 2003,
it cannot fund television production equipment at the same level as it
has prior to the institution of these new digital conversion policies
in FY 2000. Television production equipment will continue to be
eligible for PTFP funding under Priority 2 and Priority 4, as
appropriate. However, for the FY 2003 Grant Round NTIA will fund
television production equipment replacement applications only for those
projects that present a ``clear and compelling'' case for the urgency
of such replacement. NTIA anticipates funding television production
replacement projects in FY 2003, though fewer than before this change
in policy.
When making the final selection of awards under the procedures of
Sec. 2301.17, NTIA will take care to ensure that there is an
acceptable balance between projects awarded for equipment replacement
projects and those awarded for digital conversion projects. Further,
NTIA will consider as part of this balance those stations in the
Broadcast Other category (1) which request digital conversion projects
and (2) which also include elements of equipment replacement. NTIA will
not fund applications in the Broadcast Other category requesting
digital conversion to the exclusion of those Broadcast Other
applications which include documentation supporting equipment
replacement as part of their urgency justification. Further, in making
funding decisions for FY 2003, NTIA will limit its support of
television replacement applications for production equipment to those
applications which present a ``clear and compelling'' justification for
funding during the current Grant Round.
A complete listing of equipment eligible for funding during the FY
2003 Grant Round is posted on the NTIA Internet site and printed copies
are available from PTFP.
(B) Multi-Year Funding
NTIA anticipates that it will take many public television licensees
several years to complete their digital conversion projects. The time
required to complete a digital conversion project will be determined by
several factors. In some instances, it will take a station several
years to raise the local funds
[[Page 64301]]
required to complete the project. Even if a station has accumulated all
the funds required for its digital conversion project, the technical
complexity of some projects (such as the construction of a 1,000-foot
tower) will probably require several years to complete. Finally, many
public television licensees operate several stations and are,
therefore, responsible for the conversion of multiple broadcast
facilities.
NTIA recognizes that the construction period for many of these
digital conversion projects must, of necessity, be longer than the
typical one to two years of the usual PTFP grant. Further, NTIA
acknowledges that, with the funds available for award, the PTFP would
be unable to fully fund more than a few of the digital conversion
applications it could receive in FY 2003.
Therefore, for FY 2003, the PTFP will accept construction
applications within the Broadcast Other category for digital television
conversion projects which propose multi-year funding. Because of the
FCC's approaching deadline, NTIA encourages applicants for digital
conversion projects to file multi-year applications. NTIA anticipates
that, in the early years of a multi-year project, applicants will
request dissemination equipment necessary to meet the FCC's digital
transmission requirement. Applicants including non-dissemination
equipment in FY 2003 as part of their multi-year application should
justify their need.
Applicants may submit project plans and budgets for up to three
years. A multi-year application must contain the applicant's entire
digital conversion plan. The plan must be divided into severable
phases, with a budget request for each phase of the project. The
application must identify the Federal funds requested for each phase.
Only one phase of the project will be funded in any grant cycle. Once a
project is approved, applicants will not be required to compete each
year for funding of subsequent phases. Funding of subsequent phases
will be at the sole discretion of the Department of Commerce and will
depend on satisfactory performance by the recipient and the
availability of funds to support the continuation of the project(s).
Projections based on previous experience indicate availability of
between $10 million and $20 million to support multi-year digital
television projects in FY 2003. The exact level of funding available
for multi-year awards will be determined by NTIA after a review of
applications submitted for multi-year awards and those radio,
television and distance learning applications requesting a regular
award.
NTIA believes that multi-year funding for digital television awards
has significant benefits for both public television licensees and NTIA.
[sbull] Submission of a multi-year application particularly should
help applicants which must convert multiple broadcast transmitters.
NTIA understands that many stations have already begun to raise
significant non-federal funds with which they can begin to implement
their digital conversion plans. Upon submission of a multi-year
application, an applicant could begin spending its local match--at its
own risk. An applicant, therefore, might be able to complete a portion
of its digital conversion project using its local non-federal funds for
which Federal matching funds may not be available for several years.
(For example, a future phase of a statewide project might be the
conversion of two repeater stations; one might be constructed with
available non-federal funds, the second constructed if Federal funds
are received). Applicants are cautioned, however, that while
expenditure of the local match is permitted, PTFP Rules (2301.6(d))
prohibit a grantee from obligating funds from the eventual Federal
share of an award before a grant is actually awarded.
[sbull] NTIA believes that a multi-year award will reduce the
administrative burden on both grantees and the PTFP. Grant recipients
will submit only one application to cover the multiple years of their
award, saving both the grantee and the PTFP the administrative tasks
required to process applications during the annual Grant Round.
[sbull] Multi-year applications and awards will also assist both
NTIA and public broadcasting licensees in the advance planning required
to complete the conversion of almost 350 television facilities.
[sbull] By issuing multi-year grants, NTIA would be able to fund
the initial phases of more digital conversion projects with the monies
available in FY 2003 than if PTFP funded fewer entire digital
conversion plans.
NTIA believes that multi-year funding through the Broadcast Other
category also is appropriate for projects which include urgent
replacement of equipment, since, as noted earlier, most television
equipment replacement requests can be viewed as one phase of a
station's conversion to digital broadcasting.
Applications which are reactivated for the FY 2003 Grant Round must
comply with the guidelines included in this notice, including the
funding levels for television projects discussed later in this
document.
Applicants submitting projects for consideration under the
Broadcast Other category have a choice and may request either multi-
year funding or a single-year grant. However, applications submitted
for consideration under Priority 2 or Priority 4 may only request a
single-year grant for a project, as in the past.
(C) Effective Date for Expenditure of Local Matching Funds for Digital
Conversion Projects
NTIA recognizes that many public television stations have begun to
raise significant non-federal funds for their digital conversion
projects. State or local governments may have appropriated funds to
initiate digital conversion projects that, by local law, must be
expended during the fiscal year in which they are awarded. Public
television licensees that have raised significant non-federal funds may
desire to take advantage of unique opportunities (such as partnering
with other stations to share broadcast antennas or towers). Some
stations may be anxious to begin digital conversion projects with long
lead times for completion, or may desire to begin digital broadcasting
on the same timetable as commercial stations in their market. Within
the limitations of Federal regulations, NTIA supports efforts
undertaken by public television stations which bring the benefits of
digital television broadcasting to their communities as quickly as
possible.
In order to facilitate the raising of non-federal funds for digital
television projects and to also permit stations to begin construction
of their digital facilities as soon as possible, NTIA is revising
section Sec. 2301.6(b)(2) of the PTFP Final Rules. This section states
that ``Inclusion of equipment purchased prior to the closing date will
be considered on a case-by-case basis only when clear and compelling
justification is provided to PTFP.''
NTIA will publish a final rule shortly to modify Sec. 2301.6(b)(2)
to state the following: If eligible equipment for a Broadcast Other
project was purchased with non-federal funds after July 1, 1999, NTIA
will permit the applicant to include this equipment in a PTFP
application. This date was selected to coincide with the beginning of
the 2000 fiscal year used by many state and local governments and was
announced at the beginning of this digital television conversion
initiative in the Notice of Availability of Funds for the FY 2000 PTFP
grant cycle (64 FR 72225-72234). NTIA also anticipates that July 1,
1999
[[Page 64302]]
will be the effective date in the FY 2004 and FY 2005 Grant Rounds for
the expenditure of non-federal funds for projects in the Broadcast
Other category. Applicants who desire to use equipment purchased prior
to July 1, 1999 as part of their local match must submit a ``clear and
compelling justification'' supporting their request.
(D) Subpriorities for Digital Conversion Projects
As almost 350 public television stations are required to convert to
digital broadcasting, NTIA anticipates a significant increase in the
number of applications in the Broadcast Other category for digital
conversion projects. In order to process these applications in an
orderly manner and to provide guidance to potential applicants for the
FY 2003 Grant Round, NTIA will divide the Broadcast Other category into
three subpriorities; Broadcast Other--A; Broadcast Other--B, and
Broadcast Other--C.
These three divisions are intended to reflect the priorities NTIA
has used in the evaluation of traditional broadcast applications and to
place a premium on projects either to assist stations providing sole
service, to encourage cooperative efforts among different stations, or
to support licensees facing the requirement to convert multiple
transmission facilities in several television markets. NTIA notes that
in the past it has been able to fund applications each year in most if
not all of the five traditional broadcast Priorities and anticipates
that it will be able to fund applications in FY 2003 in most if not all
of the subpriorities under the Broadcast Other category.
NTIA will assign the following applications for conversion of
public broadcasting facilities to advanced digital technologies at the
first subpriority level within the Broadcast Other category. These
applications will receive equal consideration as subpriority A.
--A single applicant providing the sole service in an area unserved by
a digital public television signal. This reflects PTFP's funding
priority for equipment replacement projects for sole service stations
(PTFP Priority 2).
--Cooperative applications by two or more licensees for the first
digital public television service to an area. This is intended to
encourage cooperation and efficiencies among stations in overlap
markets (as listed by CPB) in constructing digital facilities. It would
provide stations in overlap markets the opportunity, if they work
collaboratively, to be eligible for the highest priority in funding
within this category.
--A statewide staged plan for the conversion of multiple stations,
whether a state network, or other appropriate statewide organization,
or a staged plan from a licensee with stations in several markets. This
is intended to encourage licensees that must convert multiple stations
and also to encourage groups of stations to work collaboratively in
developing a digital conversion project.
NTIA will assign the following applications for conversion of
public broadcasting facilities to advanced digital technologies at the
second subpriority level within the Broadcast Other category. These
applications will receive equal consideration as subpriority B.
--An applicant in a multi-PTV station market providing first public
television service in an area. An applicant in a multi-PTV station
market who chooses to file separately, rather than in conjunction with
another licensee in the same area, receives a second priority for
funding.
--A cooperative application by two or more licensees in an area already
served by a digital public television station. The application is given
a priority over Broadcast Other--C to encourage efficiency and
cooperation. Since this is not the first service in the area, it is
given a second priority.
NTIA will assign the following applications for conversion of
public broadcasting facilities to advanced digital technologies at the
third subpriority level within the Broadcast Other category. These
applications will receive equal consideration as subpriority C.
--Individual applicants proposing a second digital public television
service in an area already receiving a digital public television
signal. This reflects PTFP's funding priority for equipment replacement
applications in served areas (Priority 4).
--All other public television digital conversion applications.
(E) Funding Levels for Television Projects
The policy for PTFP support of equipment replacement applications
has long been the presumption of a 50% Federal share, although
applicants are permitted to submit justification for a Federal grant of
up to 75% of project costs. Those policies are contained in Sec.
2301.6(b) of the PTFP Final Rules.
In reviewing the projected costs to convert all the public
television stations in the country, NTIA has concluded that it cannot
continue its 50% presumption of Federal funding for television
equipment replacement or digital conversion projects. At the same time,
NTIA believes that many public television facilities will be unable to
raise 50% of the project costs. A significant number of stations may
need Federal funding of up to a 67% of a project's cost, or even up to
the legal maximum of 75% of a project's cost, in order for them to meet
the FCC's deadline.
In order to ensure that sufficient Federal funds are available to
support the conversion of the nation's public television stations, NTIA
is establishing a new policy regarding the presumed Federal funding
level for television equipment. As noted earlier in this section, NTIA
recognizes that equipment on the PTFP Digital TV List may be included
in either Broadcast Other digital conversion applications or in
Priority 2 or Priority 4 equipment replacement applications. In order
to treat all applicants equitably, NTIA's new policy will be the
presumption of a 40% Federal share of the eligible project costs for
television equipment for digital conversion or equipment replacement,
improvement or augmentation projects. This 40% presumption will apply
whether the application requests consideration under the two equipment
replacement priorities (Priority 2 or 4) or under the digital
conversion category (Broadcast Other). As noted earlier, NTIA will fund
the replacement of production equipment upon a showing of clear and
compelling need. However, since the deadline for digital conversion is
rapidly approaching and Federal funds are limited, NTIA will fund
replacement of production equipment at the same level of Federal
support as digital conversion or equipment replacement projects. The
presumption of a 40% Federal share will extend to all television
projects to replace or upgrade equipment. However, because of the
emphasis NTIA places on the extension of broadcast services to unserved
areas, NTIA has retained the 75% level of Federal funding applications
proposing new television facilities in Priority 1 (Sec. 2301.4(b)(1)).
As already noted, NTIA recognizes that many small stations,
primarily in rural areas, will be unable to raise even a 50% local
share of the funds required for their PTFP projects. NTIA has long
permitted stations to request more than the standard level of Federal
support upon a showing of ``extraordinary need'' per Sec.
2301.6(b)(ii) of the PTFP Rules. NTIA will permit applicants to qualify
[[Page 64303]]
for hardship funding and receive up to a 67% Federal share of their
project costs. An applicant can qualify for up to a 67% Federal funding
by certifying that it is unable to match at least 60% of the eligible
project costs, and either (a) by providing documentation that its
average annual cash revenue for the previous four years is $2 million
or less, or (b) by providing documentation that the eligible project
costs are greater than the applicant's average annual cash revenue for
the previous four years.
In addition, NTIA will continue to permit any applicant to provide
justification that it has an ``extraordinary need'' for Federal funding
up to the legal limit of 75% of eligible project costs.
In order to gather additional funds to award to stations which
qualify under the hardship criteria, NTIA encourages financially able
applicants to request a smaller share of Federal funds for digital
equipment projects than the standard 40%. NTIA will add three
additional points to the application evaluations from the independent
review panel for applicants who request no more than 25% Federal
funding. This provision will give extra credit to applications already
highly reviewed, and, based on NTIA's previous experience, this extra
credit is often sufficient to move highly rated applications into the
range for funding.
However, when making the final selection of awards, NTIA will take
care to ensure that there is an acceptable balance between projects
awarded to stations requesting a 25% Federal share and those requesting
a higher Federal share. NTIA will not fund applications requesting a
25% Federal share to the exclusion of applications meeting the hardship
criteria or to the exclusion of those requesting the standard 40%
Federal share.
(F) Use of CPB Funds
Under the PTFP Rules, NTIA has limited the use of CPB funds for the
non-federal share of PTFP projects to circumstances of ``clear and
compelling need'' (15 CFR 2301.6(c)(2)). NTIA recognizes that it will
be difficult for many public television stations to raise the funds
required to meet the FCC's digital broadcasting deadline. Therefore,
NTIA continues its past policy that applicants may submit justification
under this section for the use of CPB funds as part of their local
match. Any request for the use of CPB funds must be accompanied by a
statement regarding any limitations that CPB has placed on the
expenditure of those funds.
(G) Partnerships, Urgency
As discussed earlier in this section, part (D) on New
Subpriorities, NTIA encourages efforts which promote efficiency within
the public television system in order to save both current conversion
costs and future operating costs. NTIA, therefore, also encourages
public television stations to partner with commercial entities when
this is in the best interests of the public station and the Federal
government. In cases of public television partnerships with commercial
entities, the PTFP project will be limited to the public television
station's ownership share or use rights in the equipment. NTIA believes
that such partnerships with commercial organizations comply with
current PTFP regulations and PTFP has funded several projects for joint
use of towers and broadcast antennas.
The urgency of an application is one of the criteria under which
all PTFP applications are evaluated. (The evaluation criteria are
listed in Sec. 2301.17 of the PTFP Rules). NTIA suggests that there
are at least three situations in which Broadcast Other applications may
present high degrees of urgency. As we have just noted, applications
containing proposals for joint use/ownership partnerships with other
organizations may demonstrate a high urgency due to a time-sensitive
opportunity. NTIA encourages these applicants to document the time-
sensitive nature of the partnership opportunity in their response to
the urgency criterion.
NTIA also recognizes that some applicants may be presented with
time-sensitive funding opportunities and, therefore, encourages these
applicants to document the time-sensitive nature of these funding
opportunities in their response to the urgency criterion. Finally, as
already noted, NTIA expects that some applications will request urgent
replacement of existing equipment as part of a Broadcast Other
application. NTIA encourages such applicants to provide documentation
of their need to replace their equipment during the current Grant
Round. This documentation might include maintenance logs, letters from
manufacturers, reports from independent engineers, photos, etc.
NTIA will instruct the panels evaluating the FY 2003 Broadcast
Other applications that they should award the highest score under the
urgency criterion to those applications which fully justify and
document either (1) the time sensitive nature of partnerships, (2) the
time sensitive nature of funding opportunities, or (3) the need for
equipment replacements that must be accomplished during this Grant
Round in order to maintain existing services.
VIII. Distance Learning and Nonbroadcast Projects
NTIA is not accepting applications for nonbroadcast projects at
this time and will publish a Notice in the Federal Register announcing
a Closing Date for nonbroadcast applications in the future.
As discussed in Section VII of this document, NTIA anticipates
that, in FY 2003, it will receive numerous digital conversion
applications in the Broadcast/Other category. NTIA recognizes that, due
to the multi-channel capability of digital television, distance
learning components may well be a part of a digital conversion
application. NTIA will, therefore, consider such broadcast distance
learning proposals under the subpriorities established in Section VII.
If NTIA determines that a broadcast distance learning project is not
part of a digital conversion application, NTIA will evaluate the
application pursuant to Sec. Sec. 2301.4(b)(6) and 2301.17 when all
television applications are evaluated for possible funding during the
fourth quarter of FY 2003.
IX. Eligible and Ineligible Costs
Eligible equipment for the FY 2003 Grant Round includes the
apparatus necessary for the production, interconnection, captioning,
broadcast, or other distribution of programming, including but not
limited to studio equipment; audio and video storage, processing, and
switching equipment; 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; and optical fiber communications equipment.
A complete listing of equipment eligible for funding during the FY
2003 Grant Round is posted on the NTIA Internet site and printed copies
are available from PTFP.
Other Costs
(1) Construction Applications: NTIA generally will not fund salary
expenses, including staff installation costs, and pre-application legal
and engineering fees. Certain ``pre-operational expenses'' are eligible
for funding. (See 15 CFR 2301.2.) Despite this provision, NTIA regards
its primary mandate to be funding the acquisition of equipment
[[Page 64304]]
and only secondarily funding of salaries. A discussion of this issue
appears in the PTFP Final Rules under the heading Support for Salary
Expenses in the introductory section of the document.
(2) Planning Applications. (a) Eligible: Salaries are eligible
expenses for all planning grant applications, but should be fully
described and justified within the application. Planning grant
applicants may lease office equipment, furniture and space, and may
purchase expendable supplies under the terms of 47 U.S.C. 392 (c). (b)
Ineligible: Planning grant applications cannot include the cost of
constructing or operating a telecommunications facility.
(3) Audit Costs. Audits shall be performed in accordance with audit
requirements contained in Office of Management and Budget Circular A-
133, Audits of States, Local Governments, and Non-Profit Organizations,
revised June 30, 1997. OMB Circular A-133 requires that non-profit
organizations, government agencies, Indian tribes and educational
institutions expending $300,000 or more in federal funds during a one-
year period conduct a single audit in accordance with guidelines
outlined in the circular. Applicants are reminded that other audits may
be conducted by the Office of Inspector General.
NTIA recognizes that most of its grant recipients are divisions of
state and local governments or are public broadcasting facilities, all
of which routinely conduct annual audits. In order to make the maximum
amount of monies available for equipment purchases and planning
activities, NTIA will, therefore, fund audit costs only in exceptional
circumstances.
X. Notice of Applications Received
In accordance with 15 CFR 2301.13, NTIA will publish a listing of
all applications received by the Agency. The listing will be placed on
the NTIA Internet site and NTIA also will make this information
available by mail upon request. The address of the NTIA Internet site
is: www.ntia.doc.gov/ptfp. Listing an application merely acknowledges
receipt of an application to compete for funding with other
applications. This listing does not preclude subsequent return of the
application for the reasons discussed under the Dates section above, or
disapproval of the application, nor does it assure that the application
will be funded. The listing will also include a request for comments on
the applications from any interested party.
XI. Evaluation Process
See 15 CFR 2301.16 for a description of the Technical Evaluation
and 15 CFR 2301.17 for the Evaluation Criteria.
XII. Selection Process
Based upon the above cited evaluation criteria, the PTFP program
staff prepares summary recommendations for the PTFP Director. These
recommendations incorporate outside reviewers rankings and
recommendations, engineering assessments, and input from the National
Advisory Panel, State Single Point of Contacts and state
telecommunications agencies. Staff recommendations also consider
project impact, the cost/benefit of a project and whether review panels
have consistently applied the evaluation criteria. The PTFP Director
will consider the summary recommendations prepared by program staff,
will recommend the funding order of the applications, and will present
recommendations to the OTIA (Office of Telecommunications and
Information Applications) Associate Administrator for review and
approval of the recommended slate. The PTFP Director recommends the
funding order for applications in three categories: ``Recommended for
Funding,'' ``Recommended for Funding if Funds Available,'' and ``Not
Recommended for Funding.'' See 15 CFR 2301.18 for a description of the
selection factors retained by the Director, OTIA Associate
Administrator, and the Assistant Secretary for Communications and
Information, the NTIA Administrator.
Upon review and approval by the OTIA Associate Administrator, the
Director's recommendations will then be presented to the Selection
Official, the NTIA Administrator. The NTIA Administrator selects the
applications for possible grant award 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 15 CFR 2301.1(a) and (c). Prior to award, applications may
be negotiated between PTFP staff and the applicant to resolve whatever
differences might exist between the original request and what PTFP
proposes to fund. Some applications may be dropped from the proposed
slate due to lack of FCC licensing authority, an applicant's inability
to make adequate assurances or certifications, or other reasons.
Negotiation of an application does not ensure that a final award will
be made. The PTFP Director recommends final selections to the NTIA
Administrator applying the same factors as listed in 15 CFR 2301.18.
The Administrator then makes the 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 in 15 CFR 2301.1(a) and (c).
XIII. Disposition of Unsuccessful Applications
PTFP will retain unsuccessful applications through the Closing Date
of the FY 2004 grant cycle. Applicants may reactivate their
unsuccessful applications pursuant to Sec. 2301.9 of the PTFP Rules.
Unsuccessful applications not reactivated by the Closing Date of the
next grant cycle will be destroyed.
XIV. Project Period
Planning grant award periods customarily do not exceed one year,
whereas construction grant award periods for grants in the five
broadcast Priorities and nonbroadcast Special Applications category
commonly range from one to two years. Phases of multi-year construction
projects funded in the Broadcast Other category would commonly be
awarded for a one to two year period with the expectation that
subsequent phases would be funded dependent on the availability of
Federal funds. Although these time frames are generally applied to the
award of all PTFP grants, variances in project periods may be based on
specific circumstances of an individual proposal.
XV. NTIA Policies on Procedural Matters
Based upon NTIA's experience during the PTFP 2002 Grant Round, NTIA
has determined that it is in the best interest of NTIA and applicants
to continue recent policies regarding three procedural matters. The
following policies are applicable only to the FY 2003 PTFP Grant Round
and resulting awards.
Applications Resulting From Catastrophic Damage or Emergency Situations
Section 2301.10 provides for submission of applications resulting
from catastrophic damage or emergency situations. NTIA would like to
clarify its implementation of this provision. While the intent of this
Notice is to address FY 2003 television applications, applicants for
radio or television projects may submit applications resulting from
catastrophic damage or emergency situations.
[[Page 64305]]
For FY 2003 PTFP applicants, 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 significant equipment failure, and is in dire need of
assistance in funding replacement of the damaged equipment, it may file
an emergency application for PTFP funding at any time. NTIA limits this
request to equipment essential to a station's continued operation such
as transmitters, towers, antennas, STLs or similar equipment which, if
the equipment failed, would result in a complete loss of service to the
community.
When submitting an emergency application, the applicant should
describe the circumstances that prompt the request and should provide
appropriate supporting documentation. NTIA requires that applicants
claiming significant failure of equipment will document the
circumstances of the equipment failure and demonstrate that the
equipment has been maintained in accordance with standard broadcast
engineering practices.
NTIA will grant an award only if it determines that (1) the
emergency satisfies this policy, and (2) the applicant either carried
adequate insurance or had acceptable self-insurance coverage.
Applications filed and accepted for emergency applications 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.
NTIA will evaluate the application according to the evaluation
criteria set forth in Sec. 2301.17(b). The PTFP Director takes into
account program staff evaluations (including the outside reviewers) the
availability of funds, the type of project and broadcast priorities set
forth at Sec. 2301.4(b), and whether the applicant has any current
NTIA grants. The Director presents recommendations to the Office of
Telecommunications and Information Applications (OTIA) Associate
Administrator for review and approval. Upon approval by the OTIA
Associate Administrator, the Director's recommendation will be
presented to the Selecting Official, the NTIA Administrator. The NTIA
Administrator makes final award selections taking into consideration
the Director's recommendation and the degree to which the application
fulfills the requirements for an emergency award and satisfies the
program's stated purposes set forth at Sec. 2301.1(a) and (c).
Service of Applications
FY 2003 PTFP applicants are not required to submit copies of their
PTFP applications to the FCC, nor are they required to submit copies of
the FCC transmittal cover letters as part of their PTFP applications.
NTIA routinely notifies the FCC of projects submitted for funding which
require FCC authorizations.
FY 2003 PTFP applicants for distance learning projects are not
required to notify every state telecommunications agency in a potential
service area. Many distance learning applications propose projects
which are nationwide in nature. NTIA, therefore, believes that the
requirement to provide a summary copy of the application in every state
telecommunications agency in a potential service area is unduly
burdensome to applicants. NTIA, however, does expect that distance
learning applicants will notify the state telecommunications agencies
in the states in which they are located.
FCC Authorizations
For the FY 2003 PTFP Grant Round, applicants may submit
applications to the FCC after the closing date, but do so at their own
risk. Applicants are urged to submit their FCC applications with as
much time before the PTFP closing date as possible. No grant will be
awarded for a project requiring FCC authorization until confirmation
has been received by NTIA from the FCC that the necessary authorization
will be issued.
For FY 2003 PTFP applications, since there is no potential for
terrestrial interference with Ku-band satellite uplinks, grant
applicants for Ku-band satellite uplinks may submit FCC applications
after a PTFP award is made. Grant recipients for Ku-band satellite
uplinks will be required to document receipt of FCC authorizations to
operate the uplink prior to the release of Federal funds.
For FY 2003 PTFP applications, NTIA may accept FCC authorizations
that are in the name of an organization other than the PTFP applicant
in certain circumstances. Applicants requiring the use of FCC
authorizations issued to another organization should discuss in the
application Program Narrative why the FCC authorization must be in the
other organization's name. NTIA believes that such circumstances will
be rare and, in its experience, are usually limited to authorizations
such as those for microwave interconnections or satellite uplinks.
As noted above, for FY 2003 PTFP applications, NTIA does not
require that the FCC applications be filed by the closing date. While
NTIA is permitting submission of FCC applications after the closing
date, applicants are reminded that they must continue to provide copies
of FCC applications, as they were filed or will be filed, or equivalent
engineering data, in the PTFP application so NTIA can properly evaluate
the equipment request. These include applications for permits,
construction permits and licenses already received for (1) construction
of broadcast station, (including a digital broadcasting facility) or
translator, (2) microwave facilities, (3) ITFS authorizations, (4) SCA
authorizations, and (5) requests for extensions of time.
For those applicants whose projects require authorization by the
FCC, information about FCC filing procedures can be found on the
Internet at: www.fcc.gov.
XVI. Intergovernmental Review
Applicants should note that they must continue to comply with the
provisions of Executive Order 12372, ``Intergovernmental Review of
Federal Programs.'' The Executive Order requires applicants for
financial assistance under this program to file a copy of their
application with the Single Points of Contact (SPOC) of all states
relevant to the project. Applicants are required to provide a copy of
their completed application to the appropriate SPOC on or before the
Closing Date. Applicants are encouraged to contact the appropriate SPOC
well before their PTFP closing date. A listing of the state SPOC
offices may be found with the PTFP application materials at the NTIA
Internet site. A list of the SPOC offices is available from NTIA (see
the Addresses section above).
XVII. Other Requirements
The Department of Commerce Pre-Award Notification Requirements for
Grants and Cooperative Agreements contained in the Federal Register
notice of October 1, 2001 (66 FR 49917), are applicable to this
solicitation, unless stated otherwise in this notice. However, please
note that the Department of Commerce will not implement the
requirements of Executive Order 13202 (66 FR 49921), pursuant to
guidance issued by the Office of Management and Budget in light of a
court opinion which found that the Executive Order was not legally
authorized. See Building and Construction Trades Department v.
Allbaugh, 172 F. Supp. 2d 138 (D.D.C. 2001). This decision is currently
on appeal. When the case is resolved, the Department will provide
further
[[Page 64306]]
information on implementation of Executive Order 13202.
XVIII. Executive Order 12866
It has been determined that this notice is a ``not significant''
rule under Executive Order 12866.
XIX. Executive Order 13132
It has been determined that this notice does not contain policies
with Federalism implications as that term is defined in EO 13132.
XX. Regulatory Flexibility Analysis
Because notice and comment are not required under 5 U.S.C. 553, or
any other law, for this notice related to public property, loans,
grants, benefits or contracts, 5 U.S.C. 553(a), Regulatory Flexibility
Analysis is not required and has not been prepared for this notice. 5
U.S.C. 601 et seq.
Bernadette McGuire-Rivera,
Associate Administrator, Office of Telecommunications and Information
Applications.
[FR Doc. 02-26421 Filed 10-16-02; 8:45 am]
BILLING CODE 3510-60-P