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Federal Register / Vol. 86, No. 37 / Friday, February 26, 2021 / Rules and Regulations
the financial feasibility of the award, and detailed information about the competitive pressures on an applicant within its entire service area is extremely important in making a financial decision on an award.
The following two comments apply to clarifying and narrowing the requirement to submit network diagrams to facilities involved in the proposed project:
Narrow the requirement to submit a network diagram only to the projects set forth in the application and any existing network elements that would be leveraged to support such new network facilities.
Agency response: Complete network diagrams are required to ensure the capabilities of the entire system.
Clarify that applicants may provide a general narrative description in lieu of a diagram with respect to the remainder of their network.
Agency response: Complete network diagrams are required to ensure the capabilities of the entire system.
Consider allowing providers to propose budgets rather than using RUSs online capital investment workbook.
Agency response: The capital investment workbook was developed to ensure consistency in comparing all applications and that all necessary information is submitted to demonstrate that all requirements can be satisfied.
Consider securities filings and other publicly available information to confirm applicants financial viability.
Agency response: The proposed regulation now has options for publicly traded companies.
The following two comments apply to simplifying changes to the application and evaluation criteria.
Remove discrepancy between fiber to the home FTTH and hybrid coaxial fiber HFC network designsawarding points for symmetrical speeds affords significant advantages to FTTH versus HFC and it is inconsistent with technology neutral.
Agency response: There are no discrepancies between using these types of technologies. Under the proposed regulation, scoring criteria will now be established prior to opening an application window. Points for bandwidth capability may or may not be used.
Allow applications to be supported by in-house engineers on the same terms as it permits program awardees to support particular construction projects with inhouse engineering staff. Requiring use of an external, certified engineer adds unnecessary cost and complexity.

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Agency response: There are currently procedures in place that allow awardees to use in-house engineering services.
The following comments apply to terms and conditions:
Consider modifying the financial restrictions on grant recipients. The financial restrictions that the grant and security agreement impose impede the ability of financially stable providers to engage in commonplace transactions necessary for their business if they participate in the program at the parent level.
Agency response: The Agency has been using the current award documents for a number of years, and these agreements ensure that program requirements will be satisfied. However, that said, the Agency is unaware of any provisions in the grant agreement that would impede participants from conducting normal business transactions. This concern has not been raised to the Agency before.
Consider narrowing the Right of Inspection to documents relating to the RUS-Funded project.
Agency Response: The Agencys right to inspect documents is already limited to the RUS project and any agreements or documents that are directly related to the project.
The following comments apply to allowing greater flexibility in contracting and vendor selection:
Offer awardees the option to proceed with their regular contracting and construction processes without requiring RUS approval for each process.
Agency response: In order to ensure that federal law is being followed with respect to environmental law and the uniform federal grant requirements at 2
CFR 200, especially with respect to bidding, the Agency must impose certain contracting and construction procedures.
Consider capping contributions to a given project, which would cause the grantee to bear the risk of running over budget.
Agency response: Given the large amount of federal investment in these projects, and the need for broadband facilities in rural America, awardees must covenant that the project will be finished with their own funds if necessary, otherwise the federal investment will have been wasted.
Narrow the current construction procedures requirement that applicants obtain RUS approval before contracting with an affiliate.
Agency response: The Agencys approval to contract with affiliates ensures that an awardee is not paying more than necessary.

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Respondent Four For the current and future rounds, we strongly recommend that state and county fairgrounds be included within the definition of essential community facilities. In California, fairgrounds continue to be essential in supporting the safety, health and well-being of residentsserving as evacuation centers and shelters during fires and floods. Of Californias 77 fairgrounds, 36 47
percent of all fairs in the state have been activated as evacuation centers, fire camps, and animal shelters providing direct emergency response and public safety activities. Sufficient access to broadband connectivity at these locations is critical to provide individuals and families impacted by emergencies essential access to communication, banking and other services. Allowing state and county fairground eligibility as essential community facilities is a priority for our state to extend overall broadband connectivity and better prepares for future emergencies. A list of their fairgrounds with the addresses and coordinates was provided.
Agency response: The Agency will take this under consideration. The proposed regulation allows scoring criteria to be established at the time an application window is opened. Essential community facilities may or may not be used in future funding rounds.
Respondent Five Over many years, RUS, which administers programs that provide infrastructure or infrastructure improvements to rural communities, has served with distinction through oversight from the USDA. Providing economic incentives to allow for broadband deployment in rural areas through the Rural eConnectivity program seems to be an appropriate use of federal funds.
Agriculture plays an important part in the American economy. Today, production and consumption occur practically simultaneously so a lack of good broadband service quickly turns to no service whatsoever. This program, which relies on an interplay of effort, may help to bring stable, permanent and dependable service and give an opportunity to aid in molding and directing a public enticement that recognizes the importance of farming;
including small business enterprises to every branch of industry and commerce in the country.
This grant program, if implemented with checks and balances for compliance, has an advantage in that it affords an added means of raising funds
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