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Federal Register / Vol. 86, No. 173 / Friday, September 10, 2021 / Rules and Regulations The addition of public notice filing and response requirements at 1735.23.
The notice will allow existing service providers to respond to pending applications before the agency that propose to provide broadband service outside of their territory that receives federal universal support.
New reporting requirements at 1735.24. These new requirements ensure similar data is reported and collected across multiple USDA
broadband programs to improve oversight and integrity.
Removal of refinancing language at 1735.52 that is now duplicative due to the changes at 1735.21.
Changes to 7 CFR part 1737, PreLoan Policies and Procedures Common to Insured and Guaranteed Telecommunications Loans include multiple changes to 1737.22 to include the removal of the requirement for a certified copy of a certificate of convenience and necessity as that certificate is no longer required due to
changes implemented by the 2018 Farm Bill.
Additional application information was added to 1737.22c and e for loans involving refinancing. This additional information is necessary to ensure that the loans to be refinanced meet the criteria set forth in this regulation and the funding opportunity announcement that opens a funding window.
Changes at 1737.90 to include language allowing obligation but not disbursal of funds, under certain circumstances, prior to the completion of historical or other types of review identified during the environmental review. This change allows for obligation of funds so awardees know that funds will be available while still maintaining the integrity of the environmental review process.
Amendments and Comparison to the Current Regulation The Telecommunications Program and the organizations that apply for its funding face significant challenges
putting in place projects that can deliver and maintain robust, affordable telecommunication services to rural consumers. These challenges include rapidly evolving technology, competition, and the ever-present higher costs of serving rural areas. The final rule will implement statutory changes required by the 2018 Farm Bill, as well as minor conforming changes that will update and/or correct existing regulatory citations, data speeds and other program provisions to ensure they are in line with the required statutory changes. The changes are expected to create greater program transparency and ensure program rules are clear and consistent.
Table 1 below shows which sections of the regulations were changed due to the statutory authority contained in the 2018 Farm Bill and those changes where RUS is exercising discretion to improve program clarity. If the sections of the regulations are not specifically stated within the table, no changes were made to those sections.

TABLE 1STATUTORY AND DISCRETIONARY CHANGES TO THE REGULATIONS
Section of regulation
2018 Farm Bill requirement
Revision
Discretionary
7 CFR Part 1735General Policies, Types of Loans, Loan RequirementsTelecommunications Program 1735.1

General Statement

1735.2 Definitions
1735.10 General
1735.12

Nonduplication

1735.21
1735.22

Refinancing Loans
Loan Security

1735.23 Public Notice
1735.24 Additional Reporting Requirements.
1735.51 Required Findings
1735.52 Findings Required for Particular Loan Purposes.

Paragraph that entities applying under this part could be eligible for grant funds under 7 CFR 1738.101 added.
Retail Broadband service definition added
Updated terminology for 911 service added
Language on guaranteed fees removed
Certificate of Convenience and Necessity requirement was removed
Outdated broadband speeds were removed
Updated with new RUS refinancing authorities
Year 2000 system compliance language was removed
Paragraph citation errors corrected
New public notice requirements and timeframe added
New reporting requirements and policies added

X

X
X
X X
X
X
X

X

X
X

Certificate of Convenience and Necessity requirement removed
Duplicative refinancing language removed

X

X

7 CFR Part 1737Pre-Loan Policies and Procedures Common to Insured and Guaranteed Telecommunications Loans 1737.22
tion.

jbell on DSKJLSW7X2PROD with RULES

1737.90
ments.

Supplemental
Informa-

Loan Approval Require-

Certificate of Convenience and Necessity requirement removed

X

Refinancing requirements updated
Public Notice requirements added
Language added to allow obligations prior to environmental reviews being complete if related to specific broadband equipment.

X
X X

List of Subjects
7 CFR Part 1737

7 CFR Part 1735

Loan programs-communications, Reporting and recordkeeping requirements, Rural areas, Telephone.

Loan programs-communications, Reporting and recordkeeping requirements, Rural areas, Telephone.

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For reasons set forth in the preamble, 7 CFR parts 1735 and 1737 are amended as follows:

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PART 1735GENERAL POLICIES, TYPES OF LOANS, LOAN
REQUIREMENTS
TELECOMMUNICATIONS PROGRAM
1. The authority citation for part 1735
continues to read as follows:

E:FRFM10SER1.SGM

10SER1