Establishing Emergency Connectivity Fund To Close the Homework Gap (rule, 86 FR 29136, May 28, 2021)
Summary
A Federal Communications Commission final rule published in the Federal Register on May 28, 2021 (Vol. 86, No. 102), establishing the Emergency Connectivity Fund Program. The Program provides funding for schools and libraries to purchase, during the coronavirus (COVID-19) pandemic, connected devices and broadband connections for use by students, school staff and library patrons. The Commission cites one study estimating that last spring more than 15 million public school students did not have home access to either an internet connection or a device, a divide it calls the "Homework Gap." Support first goes to upcoming purchases, and if funding remains, schools and libraries may seek reimbursement of reasonable costs already incurred. The rule is effective May 28, 2021 and names Johnnay Schrieber as the contact.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“Establishing Emergency Connectivity Fund To Close the Homework Gap (rule, 86 FR 29136, May 28, 2021).”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/establishing-emergency-connectivity-fund-to-close-the-homework-gap-rul-262884579f/
, SHA-256 d0e8903beee6e8577211d75336959b901e57bb19712ff75bbb6834df30dd5e4a.Full text
29136 Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations
FEDERAL COMMUNICATIONS and access to computers were caught in Connectivity Fund Program. The
COMMISSION the ‘‘Homework Gap.’’ One study support provided through this Program
estimates that last spring, more than 15 will first allow eligible schools and
47 CFR Part 54 million public school students did not libraries to seek funding for upcoming
have home access to either an internet purchases of eligible equipment,
[WC Docket No. 21–93; FCC 21–58; FR ID
27313]
connection or a device adequate for including Wi-Fi hotspots, modems,
distance learning, and approximately routers, and connected devices, as well
Establishing Emergency Connectivity nine million of those students lived in as advanced telecommunications and
Fund To Close the Homework Gap households with neither an adequate information services, to meet the remote
connection nor an adequate device for learning needs of students, school staff,
AGENCY: Federal Communications distance learning. The pandemic has and library patrons who would
Commission. only exacerbated the inequities between otherwise lack access to connected
ACTION: Final rule. students who have a broadband devices and broadband connections
connection and those who do not. This sufficient to engage in remote learning
SUMMARY: In this document, the Federal action addresses those inequities, during the upcoming school year. If
Communications Commission helping to provide all students, school additional funding remains available
(Commission) establishes the staff, and library patrons with the basic after the provision of support to eligible
Emergency Connectivity Fund Program tools they need to engage in online schools and libraries for future
(Program) to provide funding for schools learning and in so many other vital purchases of eligible equipment and
and libraries for the purchase, during aspects of our increasingly digital lives. services, the Commission will provide
the coronavirus (COVID–19) pandemic, 2. Today, even as there are hopeful schools and libraries an opportunity to
of connected devices and broadband signs that the pandemic is receding in apply for reimbursement of the
connections for use by students, school this country, many schools and libraries reasonable costs they have already
staff, and library patrons. continue to rely on remote learning and incurred in purchasing eligible
DATES: Effective May 28, 2021. virtual library services as they adapt to equipment and services to meet the
FOR FURTHER INFORMATION CONTACT:
changing circumstances. Schools, with unmet needs of their students, school
Johnnay Schrieber, Wireline assistance from a wide array of Federal, staff, and library patrons who otherwise
Competition Bureau, (202) 418–7400 or state, and local government resources, lacked access to equipment or internet
public interest groups, and internet access services sufficient to engage in
by email at Johnnay.Schrieber@fcc.gov.
service providers, have worked to equip remote learning during the COVID–19
The Commission asks that requests for
millions of students with tablet and pandemic.
accommodations be made as soon as
laptop computers, Wi-Fi hotspots, and 5. The Emergency Connectivity Fund
possible in order to allow the agency to
other forms of broadband connections. Program is separate from the E-Rate
satisfy such requests whenever possible.
Yet millions of students have remained Program, which has long provided
Send an email to fcc504@fcc.gov or call
unconnected to the internet. At the funding for broadband services
the Consumer and Governmental Affairs
same time, the closure of many libraries delivered to and within schools and
Bureau at (202) 418–0530.
means that library patrons who were libraries. In the interest of efficiency and
SUPPLEMENTARY INFORMATION: This is a previously dependent on computer and simplicity, however, the goals and
synopsis of the Commission’s Report internet access at their local libraries measures, rules, and processes the
and Order in WC Docket No. 21–93; lost their primary source of broadband Commission adopts in this document
FCC 21–58, adopted May 10, 2021 and access. Just as schools have attempted to for the Emergency Connectivity Fund
released May 11,2021. Due to the help meet their students’ and staffs’ Program leverage its experience with the
COVID–19 pandemic, the Commission’s connectivity needs, libraries across the E-Rate Program.
headquarters will be closed to the country also have attempted to assist
general public until further notice. The II. Discussion
patrons in meeting their connectivity
full text of this document is available at needs during the pandemic. 6. In adopting rules to govern the
the following internet address: https:// 3. To provide relief from the Emergency Connectivity Fund Program,
www.fcc.gov/document/fcc-launch-717- pandemic, on March 11, 2021, the the Commission recognizes that
billion-connectivity-fund-program-0. American Rescue Plan Act of 2021 (the Congress has directed it to act with
See also the notification titled ‘‘Wireline American Rescue Plan or Act) was haste, conducting a rulemaking within
Competition Bureau Seeks Comment on signed into law. This Report and Order 60 days of the date of enactment of the
Emergency Connectivity Fund for implements section 7402 of the Act, American Rescue Plan. At the same
Educational Connections and Devices which established a $7.171 billion time, the Commission is mindful of the
To Address the Homework Gap During Emergency Connectivity Fund in the latitude Congress has granted it to
the Pandemic,’’ published at 86 FR Treasury of the United States. Section determine what costs are reasonable to
15172 (March 22, 2021). 7402 directed the Federal reimburse, as well as the purpose of the
Communications Commission Fund to address the connectivity needs
I. Introduction of students, school staff, and library
(Commission) to promulgate rules
1. In this Report and Order, the providing for the distribution of funding patrons who would otherwise be unable
Commission establishes the Emergency from the Emergency Connectivity Fund to access educational and library
Connectivity Fund Program (Program) to to eligible schools and libraries for the services during the pandemic. Pursuant
provide funding for schools and purchase of eligible equipment and/or to that authority, and consistent with
libraries for the purchase, during the advanced telecommunications and Congress’ intent, in this Report and
coronavirus (COVID–19) pandemic, of information services for use by students, Order, the Commission moves quickly
connected devices and broadband school staff, and library patrons at to open an application process that
connections for use by students, school locations other than a school or library. allows eligible schools and libraries to
staff, and library patrons. Before the 4. Pursuant to section 7402 of the first seek funding for purchases during
pandemic, millions of students who American Rescue Plan, the Commission the coming school year of eligible
lacked home broadband connections now establishes the Emergency equipment and advanced
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations 29137
telecommunications and information whether the Emergency Connectivity connectivity sufficient to engage in
services to meet the needs of students, Fund Program is successfully achieving remote learning. To measure success in
school staff, and library patrons who these goals. Setting clear goals for the meeting this goal, the Commission
would otherwise lack access to basic Program, with performance measures agrees with commenters that
educational opportunities and library and targets to determine success, will recommend the Commission collects
services. If the demand for these future help focus its efforts as the Commission information about the number of
purchases does not exceed available oversees use of the Emergency connected devices and broadband
funds, the Commission will open an Connectivity Fund to connect and connections that are used to connect
additional application window to allow support students, school staff, and students, school staff, and library
schools and libraries to seek funding for library patrons during the COVID–19 patrons through the Emergency
eligible equipment and broadband pandemic. Connectivity Fund Program and release
internet access services that they this data publicly. The Commission
1. Connecting Students, School Staff,
purchased earlier in the pandemic to directs USAC to release this data as part
and Library Patrons During the
address the needs of students, school of its Open Data project for the
Pandemic
staff, and library patrons who would Emergency Connectivity Fund Program.
otherwise have lacked access to devices 9. The Commission adopts as its first 11. The Commission also appreciates
and services sufficient to meet their goal for the Emergency Connectivity the opportunity the Emergency
remote learning needs. Fund Program helping to meet the need Connectivity Fund Program presents to
7. Based on its experience with the E- for connected devices and broadband gather better, more accurate information
Rate Program, the Commission also internet access services to facilitate about the number of students without
draws on the existing E-Rate rules and remote learning during the COVID–19 connected devices and broadband
processes to provide clear rules and pandemic for students, school staff, and services sufficient to engage in remote
establish quick and easy to understand library patrons. The pandemic has learning and the progress made towards
processes for requesting and receiving caused students, school staff, and closing that Homework Gap. At the
support from the Emergency library patrons nationwide to shift from same time, the Commission recognizes
Connectivity Fund Program, along with in-person instruction to remote learning. that during the pandemic school
appropriate safeguards to protect the For some students and school staff (and districts have been trying to meet the
Program from waste, fraud, and abuse. many library patrons), this shift was needs of their students and staff and
In this way, the Commission seeks to relatively seamless, and education was therefore, they have not collected
maximize the efficiency and able to continue remotely with minimal uniform data sets about their students’
effectiveness of the Emergency disruption. For millions of others, connectivity requirements. As part of
Connectivity Fund Program and focus however, those who lacked (many of the application process, the Commission
limited funding to target the needs of whom continue to lack) necessary will, therefore, collect schools’ and
those students, school staff, and library connected devices and broadband school districts’ best estimates about the
patrons who would otherwise lack services, the transition to remote number of students in their school or
access to connected devices and learning has been filled with barriers. school district who did not have access
broadband connections sufficient to Many school districts have spent scarce to adequate connected devices,
engage in remote learning and virtual resources purchasing devices and broadband connections, or both when
library services during the COVID–19 internet connections for students and the pandemic began; the number of
emergency period. staff to help bridge the gap. And, students who do not currently have
libraries have done the same for library access to adequate connected devices,
A. Performance Goals and Measures patrons. Despite these best efforts, many broadband internet access connections,
8. The Emergency Connectivity Fund schools and libraries nationwide lack or both; and how they expect those
Program will provide funding for adequate funding to ensure that all numbers to change with receipt of
schools and libraries to meet the students, school staff, and library requested Emergency Connectivity Fund
otherwise unmet connectivity needs of patrons are connected and able to fully Program support. Given the pressing
students, school staff, and library participate in remote learning demands on schools, the Commission
patrons during the COVID–19 opportunities. will not dictate specific data collection
pandemic. Based on the record in this 10. The Commission will use two requirements, but instead will ask each
proceeding and its obligations under the metrics to measure the success of the school or school district to describe how
American Rescue Plan, the Commission Emergency Connectivity Fund Program and when they collected the
establishes three goals for the in addressing students’, school staffs’, information that they use for the
Emergency Connectivity Fund Program: and library patrons’ otherwise unmet estimates provided in their responses.
(1) Connecting and facilitating remote need for connected devices and The Commission directs USAC to
learning for students, school staff, and broadband connectivity: (1) The number release this data as part of its Open Data
library patrons who would otherwise of connected devices funded with project for the Emergency Connectivity
lack adequate access to connected Emergency Connectivity Fund support Fund Program.
devices and broadband internet access that are provided to students, school
connectivity during the pandemic; (2) staff, and library patrons who would 2. Efficiently and Effectively Administer
ensuring that the Universal Service otherwise lack access to a device Funding
Administrative Company (USAC) sufficient to enable them to engage in 12. The Commission adopts as its
efficiently and effectively administers remote learning; and (2) the number of second goal to ensure that the
the Emergency Connectivity Fund broadband internet access connections Commission and USAC efficiently and
Program; and (3) providing pricing (including through use of Wi-Fi effectively commit funding and
transparency for eligible equipment and hotspots) funded with Emergency distribute support from the Emergency
services to inform future policy and Connectivity Fund Program support that Connectivity Fund. The $7.17 billion
purchasing decisions. The Commission are provided to students, school staff, Emergency Connectivity Fund must be
also adopts associated performance and library patrons who would quickly made available to meet the
measures and targets to determine otherwise lack access to internet immediate connectivity needs of
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00003 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
29138 Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations
students, school staff, and library new Program, the Commission does not all of the schools, libraries, and
patrons nationwide. To make that yet have enough information to set consortia of schools and libraries that
happen, the Commission and USAC specific invoice review targets. Instead, are eligible for support under the E-Rate
must make the application and the Commission directs the Bureau in Program are also eligible to request and
reimbursement processes simple and consultation with the Office of the receive support through the Emergency
efficient. The Commission will measure Managing Director to work closely with Connectivity Fund Program. In so doing,
success towards this goal in two main USAC on the creation of an invoicing the Commission also adopts for
ways: (1) Speed and ease of the system for the Emergency Connectivity purposes of the Emergency Connectivity
application process and (2) speed and Fund Program that allows Program Fund Program, the same definitions of
ease of the reimbursement process. participants to easily submit invoices ‘‘elementary school,’’ ‘‘secondary
13. Speed and Ease of Application and USAC to promptly review those school,’’ ‘‘library,’’ and ‘‘library
Process. In the first instance, the invoices. consortium’’ as are used in the E-Rate
application process should be easy for rules, with one minor modification
applicants to navigate and to use in 3. Inform Future Purchasing and Policy
explained below. Those definitions are
requesting funding for eligible Decisions Through Pricing
grounded in the definitions of
equipment and services. The Transparency for Eligible Equipment
‘‘elementary school’’ and ‘‘secondary
Commission can measure success in and Services
school’’ in section 254(h)(7) of the
terms of how quickly Emergency 15. The Commission adopts its third Communications Act, as well as the
Connectivity Fund Program applications goal informing future purchasing and limitations on eligibility set forth in
are reviewed, and funds are committed policy decisions through pricing section 254(h)(4) of the
following the close of the filing window. transparency for eligible equipment and Communications Act. The Commission
Consistent with the suggestions of some services. The Commission’s experience also specifies that, as with the E-Rate
commenters, the Commission sets administering and collecting data on the Program, pursuant to section 254(h)(4)
targets for how quickly USAC is able to Emergency Connectivity Fund Program of the Communications Act, the
review applications and release funding will provide valuable information for following entities are not eligible to
commitment decision letters after the future purchasing decisions for schools receive support from the Emergency
filing window closes. Some commenters and libraries. The Commission therefore Connectivity Fund: (1) For-profit
have suggested that the Commission agrees with commenters that argue one schools and libraries; (2) schools and
adopts performance metrics that require crucial aspect of the Emergency libraries with endowments in excess of
USAC to complete its review of Connectivity Fund Program is pricing $50,000,000; (3) libraries whose budgets
applications within 30 days of filing transparency. The Commission thus are not completely separate from any
date, or within 30 days of receiving requires USAC to make the pricing data schools; and (4) library or library
additional information from the from the Emergency Connectivity Fund consortium that are not eligible for
applicant. While it is important that Program publicly available through its assistance from a state library
USAC act expeditiously, the Open Data platform. The publication of administrative agency under the Library
Commission also wants to give USAC this pricing data will allow applicants to Services and Technology Act (LSTA).
sufficient time to do an appropriate review past prices paid by schools and 18. The LSTA was recently amended
review of each application. The libraries across the country for same and to make clear that Tribal libraries are
Commission therefore set its targets similar eligible equipment and services. eligible for support from a state library
having USAC issue funding decision Doing so will put them in a better administrative agency under LSTA.
commitment letters for 50% of the bargaining position when making such Consistent with the those amendments,
workable applications within 60 days of purchases in the future. The and guidance from the Institute of
the close of the first application window Commission directs USAC to make the Museum and Library Services, the
and 70% of the workable applications Emergency Connectivity Fund Program Commission clarifies that Tribal
within 100 days of the close of the first application and pricing data publicly libraries, which are by statute eligible
application filing window. Based on available within 160 days after the first for support from state library
experience with USAC’s issuance of Emergency Connectivity Fund Program administrative agencies under the
funding commitment decision letters in application filing window closes. LSTA, are eligible for support from the
the E-Rate Program, the Commission 16. To measure progress towards this Emergency Connectivity Fund. The
finds that these targets will further the goal, USAC, subject to oversight by the current E-Rate eligibility rules were
goal of quickly having applications Bureau and the Office of Economics and adopted long before the LSTA was
reviewed and funding committed, while Analytics, should conduct or amended and include a citation to an
allowing it to also track USAC’s commission at least one survey of outdated version of that LSTA. Because
performance. participating schools and libraries to this proceeding is focused on the
14. Speed and Ease of Reimbursement determine whether the data implementation of the Emergency
Process. Consistent with suggestions in transparency measures built into the Connectivity Fund, the Commission
the record, the Commission will also Emergency Connectivity Fund Program does not amend the E-Rate rules at this
measure the ease of the reimbursement are enabling program participants to time to reflect the change to the LSTA.
process and USAC’s speed in providing make more cost-effective purchasing 19. The Commission declines to
an invoice submission process for decisions in the future. The Commission extend eligibility for support from the
Program participants and in reviewing will share the results of the survey with Emergency Connectivity Fund Program
invoices that have been submitted. The interested stakeholders and other policy to other entities that are not eligible for
Commission appreciates the suggestion makers, so that it can inform future E-Rate support. The Commission is
of several commenters that the policy decisions. sympathetic to suggestions from
Commission set a target for USAC of commenters that the Commission
reviewing invoices within 30 days of B. Eligible Schools and Libraries expands the list of entities eligible to
submission, but in light of the very short 17. Consistent with Congressional receive funding from the Emergency
time frame under which the direction in section 7402, the Connectivity Fund to include a wide
Commission is adopting rules for this Commission adopts rules providing that variety of public and private institutions
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00004 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations 29139
that have done excellent work helping eligible for support from the Emergency capable of connecting to advanced
students and members of the public gain Connectivity Fund Program: Wi-Fi telecommunications and information
access to broadband internet access hotspots, modems, routers, devices that services,’’ Congress provided the
services and end-user devices during combine a modem and router, and Commission the discretion to include
the pandemic. However, the Act connected devices. The Commission connected devices beyond laptop and
specifies the entities eligible for agrees with those commenters that point tablet computers as long as they are
Emergency Connectivity Fund Program out that air-cards used to connect end- ‘‘similar.’’ Based on the record, the
support and does not authorize the user devices to the internet through Commission excludes desktop
Commission to expand the definition of cellular data services are wireless computers from its definition of
eligible entities. Thus, even when such modems, and as such are eligible for ‘‘connected devices.’’ Although the
institutions are acting in coordination support from the Emergency Commission recognizes the
with schools or libraries, there is no Connectivity Fund Program. The functionality and value of desktop
authority to permit such institutions to Commission finds inapplicable to the computers, the Commission finds that
receive Emergency Connectivity Fund Emergency Connectivity Fund Program desktop computers are not similar to
Program support. Moreover, straying the E-Rate Program’s requirement that laptop computers and tablets because
from the focus of the statute would applicants demonstrate that air cards they lack the portability of laptop and
divert much-needed funding from (and wireless data plans) are more cost- tablet computers, which can be a
schools and libraries in dire need of effective than fixed wireless broadband drawback for many students, school
assistance. services before seeking support for air staff, and library patrons seeking to
20. The Commission clarifies that cards (and wireless data plans). The engage in remote learning. The
eligible schools and libraries do not Commission adopted that requirement Commission also finds it significant that
need to be current E-Rate participants, for the E-Rate Program because schools instead of identifying desktop
but eligible entities, particularly those and libraries require very substantial computers or any other stationary
that have not applied for E-Rate support, bandwidth connections to meet their devices as eligible connected devices
should be prepared to demonstrate on-campus connectivity needs, which in Congress identified a set of portable
eligibility as a school or library under turn would require them to seek E-Rate devices as eligible ‘‘connected devices’’
Program rules eligible for support from support for large numbers of air cards to and gave it discretion to determine
the Emergency Connectivity Fund meet those needs. By contrast, whether other devices are similar to
Program during USAC’s application individual students, school staff, or those portable devices.
review. library patrons do not need enterprise
25. Also, based on the record, the
C. Eligible Equipment and Services level bandwidth, and in some instances
Commission excludes mobile phones,
air cards may be one of the few options
21. The Commission looks to section including smartphones, from its
available to provide connectivity to
7402 of the American Rescue Plan to definition of ‘‘connected device’’
them.
determine what equipment and services 23. Connected Devices. Based on the because they lack the same functionality
are eligible for support from the record, the Commission defines students, school staff, and library
Emergency Connectivity Fund Program. connected devices as laptop computers patrons need to perform necessary
The American Rescue Plan requires that and tablet computers that are capable of remote learning activities, homework, or
the Emergency Connectivity Fund be connecting to advanced research, and thus the Commission does
used for the purchase of eligible telecommunications and information not consider them to be ‘‘similar’’ to
equipment and/or ‘‘advanced services. The Commission expects laptop or tablet computers for the
telecommunications and information connected devices to be Wi-Fi enabled purposes intended by the statute here.
services, or both.’’ Section 7402(d)(6) of and able to support video conferencing Numerous commenters, including state
the American Rescue Plan defines platforms and other software necessary education departments, education
eligible equipment as (1) Wi-Fi hotspots, to ensure full participation in remote groups and public interest groups agree
(2) modems, (3) routers, (4) devices that learning. However, recognizing that with excluding mobile phones from the
combine a modem and router, and (5) schools and libraries have had to make definition of connected devices because
connected devices. Wi-Fi hotspot is challenging purchasing decisions to such devices do not sufficiently allow
defined as ‘‘a device that is capable of— equip students, school staff, and library students, school staff, and library
(A) receiving advanced patrons with devices during the patrons to meaningfully participate in
telecommunications and information pandemic, the Commission declines to remote learning activities. In
services; and (B) sharing such services establish minimum screen size or establishing the Emergency
with another connected device through system requirements for the connected Connectivity Fund, Congress intended
the use of Wi-Fi.’’ ‘‘Connected devices’’ devices supported by the Emergency to provide funding for devices that
are defined as laptop computers, tablet Connectivity Fund Program and instead support remote learning. The record
computers, or similar end-user devices rely on schools and libraries to make the demonstrates that while a smartphone
that are capable of connecting to appropriate choices about their needs. may be capable of connecting a student
advanced telecommunications and At the same time, however, the to his or her teacher or supplementing
information services. Section 7402(d)(1) Commission expects connected devices learning, it can limit the student’s
defines ‘‘advanced telecommunications to be accessible to and usable by ability to develop a class presentation or
and information services’’ to mean individuals with disabilities. If people draft a research paper. At least one
advanced telecommunications and with disabilities require connected smartphone vendor shows that some of
information services, as such term is devices to connect to the internet, the its smartphones are capable of being
used in section 254(h) of the Commission expects that schools and made more functional by being
Communications Act. libraries will request such devices to connected to larger display screens for
22. Eligible Equipment. Consistent accommodate disabilities if needed. video conferencing and to peripherals,
with the definitions in section 7402, the 24. By defining connected devices as like a keyboard and mouse. The fact that
Commission adopts rules specifying that ‘‘laptop computers, tablet computers, or some smartphones can be made more
the following types of equipment are similar end-user devices that are functional for educational purposes by
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00005 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
29140 Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations
adding these extra peripherals does not connected devices or Wi-Fi hotspots for internet access connection for off-
persuade the Commission that the Program. campus use by students, school staff, or
smartphones are similar end-user 27. Advanced Telecommunications library patrons.
devices meeting the remote learning and Information Services. Although 29. Dark Fiber and New Networks.
needs of students, school staff, or library section 7402(d)(1) of the American With the one exception for areas where
patrons. The Commission also finds it Rescue Plan defines ‘‘advanced no service is available for purchase, the
significant that the Commission did not telecommunications and information Commission excludes from eligibility
receive a single comment or other filing services’’ by reference to section 254(h) funding for dark fiber and the
from a school or library claiming that of the Communications Act, the construction of new networks, including
they purchased smartphones to use Communications Act does not offer a the construction of self-provisioned
instead of laptops or tablets for their definition of that term. Instead, in the networks. In so doing, the Commission
students, school staff or library patrons context of determining what services agrees with commenters that argue that,
or have found smartphones to be good should receive E-Rate support, the as a general rule, using Emergency
substitutes for tablets or laptop Commission has recognized that section Connectivity Fund Program support to
computers. 254 grants ‘‘the Commission broad and construct new networks or self-
26. The Commission also finds flexible authority to set the list of [E- provisioned networks is inconsistent
unpersuasive the arguments of some Rate supported] services’’ and ‘‘to with Congress’ intent to fund ‘‘the
commenters that smartphones should be design the specific mechanisms of purchase’’ of broadband services to meet
support.’’ As the Commission has students, school staff and library
eligible for Emergency Connectivity
recognized, ‘‘[t]his authority reflects patrons’ immediate needs, rather than
Fund Program support as eligible
Congress’s recognition that technology the construction of networks. As such,
devices because they meet the definition
needs are constantly ‘‘evolving’’ in light the Commission disagrees with those
of a Wi-Fi hotspot, because some
of ‘‘advances in telecommunications commenters that argue that Congress
schools were forced to purchase
and information technologies and intended that the Emergency
smartphones to act as Wi-Fi hotspots
services.’’ As the Commission has done Connectivity Fund be used to support
due to supply chain issues at the start
in the E-Rate context, the Commission everything eligible under the E-Rate
of the pandemic, or because the ability
finds that because the amount of Program’s category one services because
of smartphones to act as Wi-Fi hotspots
available funding is finite, ‘‘the it referenced ‘‘advanced
was mentioned in the legislative history. Commission must make thoughtful telecommunications and information
Section 7402(b) of the American Rescue decisions about what services are not services’’ under section 254(h) of the
Plan tasks the Commission with just permissible to support, but are the Communications Act. The E-Rate
determining whether the costs of most essential to support.’’ Program does not provide funding for
requests for equipment are reasonable, 28. The Commission’s notification, all types of advanced
and even with a cap on the reasonable published March 22, 2021, sought telecommunications and information
support amount for Wi-Fi hotspots, the comment on treating a subset of the services. Instead, over time, the
Commission does not find it reasonable services currently eligible for category Commission has evaluated whether and
to use limited Emergency Connectivity one E-Rate support as eligible under what conditions providing
Fund Program support to reimburse ‘‘advanced telecommunications and funding for various types of advanced
schools and libraries for costly information services’’ for the purposes telecommunications and information
smartphones used as Wi-Fi hotspots, of the Emergency Connectivity Fund services would be both cost-effective
when much less expensive hotspots can Program. Based on the statutory text and further the policy goals of the
serve the same purpose. This is enumerating the equipment eligible for program. For example, when the
particularly true because smartphones the Emergency Connectivity Fund (i.e., Commission chose to make school and
have myriad other functions, such as Wi-Fi hotspots, modems, routers, library self-provisioned networks
cellular voice service, and the devices that combine a modem and a eligible in 2014, it did so subject to
Commission would have to choose router, and connected devices), as well strict competitive bid requirements and
between inappropriately expending as the statutory language allowing cost-effectiveness safeguards to ensure
resources on functions that are not core Emergency Connectivity Fund support that E-Rate funds are only spent on a
educational services that section 7402(a) for the ‘‘purchase’’ of advanced self-provisioned network when it is
of the American Rescue Plan was telecommunications and information demonstrated to be the most cost-
designed to fund, or allowing applicants services, the Commission understands effective option.
to cost allocate eligible and ineligible the legislation to be focused on quickly 30. Here, where the Commission is
portions of smartphones used as Wi-Fi reaching students learning at home primarily relying on local, state, and
hotspots. However, importing cost primarily through commercially Tribal procurement requirements and
allocation requirements into the available internet access services striving to provide a simple application
Emergency Connectivity Fund Program delivered via Wi-Fi hotspots with review process, where it is possible to
is inconsistent with the Commission’s wireless broadband connectivity or via purchase broadband internet access
goals of administrative simplicity and leased modems with fixed broadband services, the Commission thinks that is
fast funding decisions. It would create connectivity, generally delivered from a the most prudent path for meeting the
complexity for the applicants and for local internet service provider. The goals of the Emergency Connectivity
the USAC reviewers and would Commission therefore finds, that, unless Fund Program of quickly getting
inevitably slow down the Emergency there is no internet access service connectivity to students, school staff,
Connectivity Fund application available to purchase in an area, to and library patrons. Moreover, in the
processing. As such, the Commission qualify for funding as advanced Commission’s experience with the E-
agrees with commenters that urge it not telecommunications or information Rate Program and as supported by the
to require cost allocation decisions in services, schools and libraries will only record, planning and executing self-
the Emergency Connectivity Fund be reimbursed for purchasing a provisioned networks is complex and
Program and decline to include commercially available service time-consuming. Although there are
smartphones in the list of eligible providing a fixed or mobile broadband narrow instances where constructing a
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00006 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations 29141
new network is speedy and reasonable, provision a separate network. The educational content outside of school.
and therefore we provide one limited Commission disagrees that the language Therefore, where there are no such
exception, the Commission is not in section 7402 of the American Rescue commercially available broadband
persuaded that on the whole, network Plan should be read to allow funding for internet access services available, the
construction is consistent with or additional, unenumerated equipment Commission will allow schools and
appropriate given the goals of the for network expansion and to use libraries to seek Emergency
Emergency Connectivity Fund Program Emergency Connectivity Fund support Connectivity Fund Program support to
to quickly fund schools and libraries for antennas, cell towers, Citizens Band construct or self-provision networks to
during the pandemic or consistent with Radio Service (CBRS), television white connect students, school staff, and
the statute and section 254(h)(2)(A)’s space (TVWS) base stations, or drone- library patrons during the COVID–19
direction that the Commission create powered internet, and other such emergency period who would otherwise
rules to enhance economically wireless network equipment, except in not be connected to the internet, and the
reasonable access to support advanced the case outlined below. To the extent Commission will not require schools
telecommunications and information schools and libraries expanded their and libraries to engage in competitive
services. This is a short-term program, networks or built new networks to serve bidding. Under those same
designed to give students, school staff, their students or library patrons over the circumstances the Commission will also
and library patrons access to devices last year, such equipment is ineligible allow schools and libraries to seek
and connectivity that is needed now for for reimbursement through the support for the customer premises
remote learning during the COVID–19 Emergency Connectivity Fund Program, equipment needed to receive access to
emergency period. Therefore, the except for the portions of the network educational content through
Commission believes Congress intended that fit into the enumerated list of datacasting. Some schools are already
it to provide funding for a narrower set eligible equipment (i.e., Wi-Fi hotspots, using datacasting and others may have
of commercially available internet modems, routers, or devices that already constructed wireless networks
access services, and doing so provides a combine a modem and router). where there were no commercially
path to offering fast and simple Relatedly, the Commission is focusing available options and cannot go back
application and reimbursement in this document on implementation of and conduct competitive bidding. The
processes for desperately needed section 7402 of the American Rescue Commission also considered requiring
equipment and services. Plan, and therefore, this Order does not competitive bidding for applicants in
31. The Commission recognizes that address requests for action on a petition areas with no commercially available
some schools and libraries have taken to allow schools and libraries to use options, but the timing does not work in
extraordinary steps to connect their their E-Rate-supported networks light of the COVID–19 emergency and
students and patrons since the start of without cost-allocating out the off- upcoming school year.
the pandemic and applaud their campus use during the pandemic.
commitment to connect their students, 34. To reduce the risk of using
school staff, and library patrons. But, by 33. Limited exception for network emergency funding on time-consuming
excluding support for potentially costly construction and/or datacasting where infrastructure construction projects
construction or self-provisioning there is no commercially available better suited for funding from other
projects, the Commission is able to internet access service option. Despite programs, applicants seeking support
satisfy the Congressional goals and this understanding of Congress’ intent to for network construction, including self-
swiftly act to provide much-needed speed funding to schools and libraries provisioned networks, and those
support to more schools and libraries through commercially available seeking support for customer premises
throughout the country. The broadband internet access service equipment used to receive datacasting
Commission thus finds that providing offerings, the Commission provides a services, must therefore demonstrate
support for such network construction limited exception to this finding. The that there were no commercially
in areas with commercially available record reflects the fact that in some available internet access service options
options would be inconsistent with the instances there is simply no sufficient to support remote learning
emergency purposes of the Emergency commercially available internet access from one or a combination of providers.
Connectivity Fund and better addressed service for purchase available to reach For networks already constructed or
through other Commission Universal students, school staff, and library equipment already purchased during
Service Fund Programs or broadband patrons in their homes. In only those the pandemic, applicants must show
efforts that have established competitive limited instances, network construction that services were provided to students,
bidding and cost-effectiveness (including construction of wireless school staff, or library patrons during
safeguards. Adding all such program networks) is the only way to quickly the funding period supported by the
safeguards for areas with commercially bring internet connectivity to these second filing window. For future
available connectivity would be students, school staff, and library construction, they must show that
administratively burdensome and patrons, and the Commission believes construction is completed and services
contrary to the goal to quickly provide that the ‘‘purchase’’ of equipment provided within one year of a funding
access to equipment and connectivity to necessary to make advanced commitment decision. Applicants
students, school staff, and library telecommunications and information seeking support for network
patrons during the pandemic. services functional is consistent with construction or customer premises
32. Some stakeholders agree that Congress’ intent to provide emergency equipment used to receive datacasting
excluding dark fiber and other network connectivity to students, school staff, services must define the geographic area
construction makes sense due to the and library patrons that do not have any that was or will be served and assess the
nature of the emergency, but many seek other internet access options. The estimated number of students and
flexibility and inclusion of additional record also demonstrates that where school staff, or library patrons to be
equipment that may be used, to extend commercially available internet access served. Schools and libraries must be
a school or library’s existing E-Rate- services are not available datacasting able to provide clear evidence
supported broadband service to can help meet students’ remote learning demonstrating how they determined
students’ homes (largely, wirelessly) or needs by providing them with access to that an existing fixed or mobile
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00007 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
29142 Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations
broadband network sufficient to support to use those connections for remote that any components purchased with
remote learning was or is not available learning or library services. The the eligible equipment and necessary for
and that for prospective network approach the Commission takes in this the equipment to operate, such as cords
construction, that they sought service document maximizes available choices and chargers, do not require cost
from existing providers serving the area during this emergency and thus speeds allocation. These minimal costs do not
prior to constructing a new network, Emergency Connectivity Fund Program warrant the expense or time of cost
and that such providers were unable or support to eligible schools and libraries allocation in an emergency program
unwilling to provide services sufficient making good faith efforts to facilitate designed to help students, school staff,
to meet the remote learning needs of remote learning throughout the and library patrons now. The
their students, school staff, or library pandemic. Commission finds this will simplify
patrons. Additionally, when the 36. Installation, Taxes, and Fees. The applications and invoicing, which
Emergency Connectivity Fund Program Commission agrees with commenters ultimately will speed funding to schools
support is sought for future that the Emergency Connectivity Fund and libraries during this emergency.
construction, or for customer premises Program should also cover reasonable Consistent with the E-Rate Program, a
equipment used to receive datacasting costs of the enumerated equipment, manufacturer’s multi-year warranty for a
services, applicants will be required to connected devices, and services, period up to three years that is provided
certify that they sought service from including installation, activation, and as an integral part of an eligible
existing service providers in the initial configuration costs, taxes, and component, without a separately
relevant area and that such providers fees. Such action is consistent with the identifiable cost, may be included in the
were unable or unwilling to provide E-Rate Program and most logically cost of the component, but unbundled
broadband internet access services aligns with Congress’ desire to cover the warranties are ineligible. To further
sufficient to meet the remote learning reimbursement of eligible equipment assist applicants with determining
needs of their students, school staff or and services needed for remote learning eligible equipment and services for the
library patrons. without requiring a complicated cost Emergency Connectivity Fund Program,
allocation of items on participant an eligible services list is included in
35. Minimum Service Standards.
invoices. the full version of this Report and
While the benefits to students, school 37. Other Requests for Eligible Order.
staff, and library patrons of receiving Services and Equipment. Commenters 39. Because the issue was raised in
high speed broadband services that suggest many other types of equipment, the record, the Commission also
include no data caps and low latency services, or software be eligible for clarifies that, consistent with the E-Rate
are well documented in the record, Emergency Connectivity Fund Program Program, schools and libraries may
because of the current emergency and support including cybersecurity tools, contract with any service provider or
the lack of ubiquitous high speed learning management systems, private vendor willing to comply with the
broadband nationwide, the Commission network services, online learning Emergency Connectivity Fund Program
declines to apply minimum service services that support online learning rules, not just eligible
standards to covered services for the platforms, video conferencing telecommunications carriers. The
Emergency Connectivity Fund Program. equipment, and standalone Commission also declines the
As commenters recognize, to do microphones. The Commission does not suggestion of at least one commenter
otherwise would penalize schools, dispute that schools and libraries need that the Commission excludes providers
libraries, students, school staff, and many of the identified products and of broadband services that are not
library patrons in places where slower services, but the Commission believes participating in the Emergency
speed, data capped, and/or high latency they are outside the scope of what Broadband Benefit Program from
services are currently the only Congress directed it to support through providing eligible services in the
affordable options. The Commission the Emergency Connectivity Fund. The Emergency Connectivity Fund Program.
also recognizes that schools and Commission also denies Verizon’s While hundreds of broadband providers
libraries made purchases over the last request to permit the use of Emergency are participating in the Emergency
year based on availability during the Connectivity Fund Program support to Broadband Benefit Program, some are
emergency, but without specific fund Children’s Internet Protection Act not, and the Commission does not want
knowledge of whether such purchases (CIPA) implementation costs. The to penalize schools or libraries for
might be eligible or ineligible for future Commission previously determined that reasons beyond their control.
support, such as from the Emergency E-Rate recipients are statutorily 40. National Security Supply Chain
Connectivity Fund. Moreover, as prohibited from obtaining discounts Restrictions. Finally, the Commission
commenters argue, schools and libraries under the universal service support reminds Emergency Connectivity Fund
are in the best position to know what is mechanism for the purchase or Program participants that, in accord
available and sufficient for their remote acquisition of technology protection with § 54.10 of the Commission’s rules,
learning needs. The Commission measures necessary for CIPA participants are prohibited from using
expects that schools and libraries will compliance. The Commission finds that Federal subsidies to purchase, rent,
make the best decisions to meet the the use of Emergency Connectivity Fund lease, or otherwise obtain any covered
remote learning needs of their students, Program support for implementing CIPA communications equipment or service
school staff, or library patrons. The compliance is similarly statutorily from a company identified as posing a
Commission therefore finds that to barred. national security threat to the integrity
qualify for funding as advanced 38. While the Commission finds it of communications networks or the
telecommunications or information imperative to focus the Emergency communications supply chain. The
services purchased by schools and Connectivity Fund Program on the Commission finds that this prohibition
libraries for off-campus use by students, equipment and services specified by covers Emergency Connectivity Fund
school staff, or library patrons, a service Congress, the Commission also seeks to Program support, consistent with the
must include a fixed or mobile avoid the challenging cost allocation determination that the prohibition
broadband connection that permits application requirements needed in the applies to the Universal Service Fund
students, school staff, or library patrons E-Rate Program and therefore clarify Programs as providing funds for capital
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00008 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations 29143
expenditures necessary for the provision connect their students, school staff, and language in section 7402(a) that eligible
of advanced communications services. library patrons. equipment and services be used at
A list of covered equipment and 43. The Commission expects that in ‘‘locations that include locations other
services was posted on the most instances, the primary off-campus than the school’’ and ‘‘locations that
Commission’s website on March 12, locations where students, school staff, include locations other than the
2021 and will be updated to reflect any and library patrons have been using library.’’ The Commission disagrees
future determinations. eligible equipment and services is and— with this reading of the statutory text.
for the duration of the emergency The primary purpose of the Emergency
D. Service Locations and Per-Location/ period—will be their homes. At the Connectivity Fund is to support off-
Per-User Limitations same time, the record is clear that there campus connectivity for students,
41. The American Rescue Plan are some students, school staff, and school staff, and library patrons that are
requires the Commission to adopt library patrons who cannot receive unable to benefit from existing
regulations providing for the provision broadband service at home, or for other connectivity at their schools or libraries
of support from the Emergency reasons need access at locations other because of the pandemic, an
Connectivity Fund to an eligible school than their homes. For example, interpretation supported by the
or library for the purchase of eligible emphasizing the rural nature of much of legislative history. The Commission
equipment and/or services for use by the Navajo Nation and the important construes the statute in light of that
students, school staff, and library role government ‘‘anchor institutions’’ primary purpose, while not precluding
patrons at locations that include play in Tribal life, the Navajo Nation the likely reality of the need for some
locations other than the school or Telecommunications Regulatory use of the eligible equipment, and
library. While the Act does not impose Commission stresses the need to permit perhaps incidental use of mobile
any explicit restrictions on the number the placement of eligible equipment, services at school and library
of connections or connected devices like Wi-Fi hotspots, wherever students ‘‘locations’’ as well, as long as the
supported by the Fund, it requires that are engaged in educational activities. eligible equipment and services were
reimbursements for eligible equipment Other commenters explain that purchased to provide off-campus access.
‘‘not exceed an amount that the restricting where students, school staff, The Commission also does not believe
Commission determines . . . is and library patrons may use eligible that providing Emergency Connectivity
reasonable.’’ Moreover, Emergency equipment and services could leave the Fund support for equipment or services
Connectivity Fund Program support is most disadvantaged populations, like to be used solely on campus is
provided under section 254(h)(2) of the the unhoused, unconnected, and urge reasonable or sound policy in light of
Communications Act, which requires the Commission not to impose the significant need for off-campus
the Commission to consider what is restrictions on service locations that connectivity brought on by the
technically feasible and economically would exclude these populations. The pandemic and considering that the E-
Commission agrees. Rate Program already provides funding
reasonable when providing support for
44. The Commission therefore will
access to advanced telecommunications to meet students’, school staff, and
permit eligible schools and libraries to
and information services for eligible library patrons’ on-campus connectivity
seek and receive support for the
schools and libraries. Mindful of the needs. To permit limited funding from
purchase of eligible equipment and
importance of maximizing the use of the Emergency Connectivity Fund
services for use by students, school staff,
limited funds, the notification sought Program to be used to support eligible
and library patrons at locations that
comment on whether the Commission equipment and services solely for on-
include, but are not limited to, the
should limit the locations where eligible campus uses would effectively allow
homes of students, school staff, and
equipment and services may be used or library patrons; community centers; schools and libraries to replace
impose per-location or per-user churches; and any other off-campus connections already funded through the
limitations on eligible equipment and locations where they are engaged in E-Rate Program with funding from the
services. The notification also sought remote learning activities. In so doing, Emergency Connectivity Fund and to
comment on the Commission’s authority the Commission seeks to provide use the Fund to purchase every device
to impose such limitations, if any. flexibility to eligible schools and used on campus. The Commission does
42. Eligible Locations. Recognizing libraries to determine the service not believe Congress intended such a
that students, school staff, and library locations that best fit their needs result.
patrons are engaged in remote learning without hampering their ability to 46. In particular, the Commission
activities from a wide variety of off- undertake creative solutions for recognizes the benefit of being able to
campus locations that include, but are connecting students, school staff, and use connected devices—laptops and
not limited to, their homes, the library patrons or disadvantaging certain tablets—funded through this Program at
Commission declines to define or limit vulnerable populations during this schools and libraries as schools and
the specific off-campus locations where unprecedented time. libraries begin to reopen, and the
eligible equipment and services 45. Notwithstanding this broad Commission is sensitive to the need to
supported by the Emergency interpretation of the Act, and pursuant provide some flexibility during this
Connectivity Fund Program may be to its authority under section 7402(b) of uncertain time. If those connected
used during the COVID–19 emergency the Act and section 254(h)(2)(A) of the devices were purchased for the purpose
period. The Commission agrees with Communications Act, the Commission of providing students, school staff, and
commenters that argue that limiting the prohibits schools and libraries from library patrons with devices for off-
off-campus locations where eligible seeking and receiving reimbursement campus use consistent with the rules
equipment and services can be used for eligible equipment and services the Commission adopts in this
would be inconsistent with the broad purchased for use solely at the school or document, the Commission will not
language in the Act. The Commission library. Some commenters suggest that prohibit such on-campus use. Fixed
also agrees with those commenters that the Act may permit funding for eligible wireless and wireline connections
argue that schools and libraries are well equipment and services intended solely purchased with funding from the
positioned to determine where best to for on-campus use, pointing to the Emergency Connectivity Fund may not,
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00009 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
29144 Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations
however, be similarly used on-campus 49. Next, with the exception of fixed limiting support for connected devices
given that these connections are already broadband connections, for which there and Wi-Fi hotspots provided to
eligible for funding under the E-Rate is a one-per-location limit, the students, school staff, and library
Program. While the Commission Commission prohibits schools and patrons to no more than one of each
prohibits the use of funding to purchase libraries from providing more than one such type of equipment per person is
eligible equipment and services used supported connection and more than reasonable. Were the Emergency
solely on campus, the Commission one connected device to a student, Connectivity Fund unlimited, the
remains mindful of the importance of school staff member, or library patron Commission would likely provide
robust school and library networks, and clarify that this limitation shall support for additional equipment. To do
particularly in rural areas, for the apply for the duration of the COVID–19 so under the present circumstances
provision of educational and library emergency period. That is, during the would, however, be inconsistent with
services across the nation. The defined emergency period, the the goal to provide students, school
Commission is committed to continuing Commission will permit eligible schools staff, and library patrons with as many
to provide support for these networks and libraries to request and receive needed devices and broadband services
through the E-Rate Program, and support for no more than one as possible in the near term and prevent
encourage schools and libraries connection and no more than one unnecessary warehousing.
participating in this new Program to connected device for each student, 52. In adopting a per-user limitation
continue to seek support for their on- school staff member, or library patron on these connections and connected
campus connectivity needs through the they serve. devices, the Commission seeks to
E-Rate Program. 50. While commenters generally equitably distribute and maximize the
47. Per-Location/Per-User Limitations. support this approach, some argue that use of limited funds and the number of
To maximize the use of limited funds, there may be instances where more than students, school staff, and library
the Commission imposes certain per- one connected device or connection per patrons served by this Program. To
location and per-user limitations on user may be appropriate. These further ensure requests for support for
applicants seeking support for eligible commenters do not, however, provide connected devices are reasonable, in the
equipment and services under this any specific examples where more than case of a library, the Commission directs
Program. Specifically, the Commission one connected device or connection is USAC to make inquiries if a library or
will not permit an eligible school or necessary; and, the one example offered library system seeks reimbursement for
library to apply for support for more in the record by the American Library more devices than seems reasonable
than one fixed broadband internet Association, the Commission finds based on the size of the library or library
access connection per location. Nor will inapposite. Specifically, the American system.
the Commission provide support for Library Association explains that in 53. To ensure compliance with the
eligible schools and libraries to some cases a parent may request two per-location and per-user limitations the
purchase more than one connected connected devices from a library—one Commission imposes on schools and
device and more than one Wi-Fi hotspot for use of the parent and the other for libraries, and to aid in preventing waste,
per student, school staff member, or use of the child. Because the library in fraud, and abuse, the Commission also
library patron during the COVID–19 this instance is providing each device requires schools and libraries to
emergency period. for use of one, individual user, the document the student(s), school staff
48. Recognizing that Wi-Fi hotspots Commission considers such use member(s), and library patron(s) served
can be easily moved and used in consistent with the per-user limitation at each location. Because the
different locations, while fixed the Commission imposes on schools and Commission expects that many schools
broadband connections are delivered to libraries. As such, the Commission is and libraries are, in the normal course
a specific location, and pursuant to its not persuaded by those commenters that of business, already documenting this
authority under section 7402(b) of the suggest that more than one connection information, the Commission
Act and section 254(h)(2)(A) of the or connected device per user is anticipates that imposing this
Communications Act, the Commission necessary, particularly in light of its requirement for purposes of
first limits support for those costs obligation to limit reimbursements to participating in the Emergency
associated with fixed broadband amounts the Commission finds Connectivity Fund Program will not be
services to one connection per location, reasonable. an additional burden on most
but otherwise refrain from imposing a 51. Nor is the Commission persuaded applicants. Moreover, in requiring
similar per-location limitation on Wi-Fi that limited funding should be used to schools and libraries to collect and
hotspots. The Commission agrees with allow schools and libraries to purchase document this information as detailed
those commenters that suggest that additional connected devices or other below, the Commission acknowledges
while a per-location limitation on fixed equipment beyond the per-user some comments expressing concerns
broadband services is reasonable, a limitation the Commission sets to about protecting the privacy of students
similar limitation on Wi-Fi hotspots account for equipment damage and and library patrons, as well as the
would be impractical since many of the breakage. The notification sought confidentiality of library records, and
Wi-Fi hotspots distributed by schools comment on ‘‘what allowances or asserting that imposing such a
and libraries are insufficient for controls may be necessary to allow requirement on schools and libraries
multiple users and many homes with schools and libraries to remediate such could discourage them from
multiple students, school staff, or issues and how the Commission can participating in the Program. The
library patrons could benefit from more prevent warehousing of unnecessary Commission is mindful of the need to
than one Wi-Fi hotspot. For purposes of equipment and connected devices?’’ safeguard the privacy of students,
the per-location limitation the While the Commission agrees with school staff, and library patrons, and the
Commission imposes on fixed commenters that it is a sensible practice Commission commits to ensuring that, if
broadband services, the Commission for schools and libraries to purchase the Commission or USAC staff needs to
will consider each unit in a multi-tenant some percentage of extra devices in access this information, for example, for
environment (e.g., apartment buildings) preparation for inevitable equipment audit purposes, they will request and
a separate location. breakage, the Commission finds that safeguard the information in accordance
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00010 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations 29145
with the applicable privacy laws and supported services ‘‘primarily for the title of section 7402 of the American
guidance. With this approach, the educational purposes.’’ Educational Rescue Plan, for use by students, school
Commission seeks to balance the need purposes, in turn, are defined as staff, and library patrons. What is more,
to protect limited funds from waste, ‘‘activities that are integral, immediate, such arguments, when taken to an
fraud, and abuse and the privacy of and proximate to the education of extreme, are also an invitation to waste,
students, school staff, and library students’’ in the case of schools and fraud, and abuse.
patrons. activities that are ‘‘integral, immediate, 58. At the same time, the Commission
54. Wi-Fi Hotspots on School Buses and proximate to the provision of is sensitive to the critical need students,
and Bookmobiles. Consistent with its library services to library patrons’’ in school staff, and library patrons have for
decision above regarding eligible the case of libraries. The Commission broadband connections and devices for
locations, the Commission allows takes that same approach here. any number of important and
schools and libraries to use Emergency 56. For purposes of the Emergency productive uses during the COVID–19
Connectivity Fund Program support to Connectivity Fund Program, the pandemic, as well as the need to
purchase Wi-Fi hotspots for school Commission therefore defines provide schools and libraries with as
buses and bookmobiles to provide off- ‘‘educational purposes’’ as activities that much flexibility as possible to meet the
campus broadband services to students, are integral, immediate, and proximate unique remote learning needs of
school staff, and library patrons who to the education of students in the case students, school staff, and library
currently lack sufficient broadband of a school, and activities that are patrons. The Commission also
access. The Commission finds ample integral, immediate, and proximate to recognizes that even the most ardent
support in the record for its action and the provision of library services to student will not be using his or her
agree with those commenters that assert library patrons in the case of a library. connected device and broadband
that deploying Wi-Fi hotspots on And, the Commission requires schools connection to attend classes and do
schools buses or bookmobiles is a cost- and libraries to use eligible equipment schoolwork all day every day, and that
effective means by which to provide and services supported by this Program library patrons use the broadband
much-needed connectivity to those primarily for educational purposes, but services at libraries for an enormous
students, school staff, and library still limit use to students, school staff, variety of purposes. The Commission
patrons in areas with limited options. In and library patrons as intended by therefore finds that it is only reasonable
addition, the Commission is aware that Congress. Because the Commission that schools and libraries be given the
a number of schools and libraries have requires eligible equipment and services flexibility to allow the use of eligible
already undertaken initiatives to equip be used primarily for educational equipment and services for other
school buses and bookmobiles with Wi- purposes, as defined in § 54.500 of its purposes when they are not needed for
Fi hotspots during the COVID–19 rules, in the case of schools, the educational purposes in the first
emergency period and have found such Commission emphasizes that the instance. The Commission concludes
initiatives to be particularly effective. provision of eligible equipment and that requiring that eligible equipment
As such, during the second application services for school staff is limited to and services supported by the
window, schools and libraries will be school staff that will be providing (or Emergency Connectivity Fund Program
able to seek support for these purchases provided) educational services during be used primarily for educational
if made during the relevant time period. the relevant time periods and would purposes strikes the right balance. It
otherwise lack access to connected will ensure that such equipment and
E. Eligible Uses
devices or broadband connections services are first and foremost used to
55. Consistent with the goal of sufficient to facilitate remote learning facilitate remote learning, as intended
funding the connections and devices during the pandemic. by Congress, while also allowing them
needed for remote learning embodied in 57. The Commission recognizes that to be used for other purposes for the
section 7402(a) of the American Rescue some commenters would prefer that benefit of students, school staff, and
Plan and section 254(h)(1)(B) of the schools and libraries be able to use library patrons.
Communications Act, and with the E- eligible equipment and services for any 59. To ensure that connected devices
Rate program, the Commission requires purpose they see fit. At least one supported by this Program are used
that equipment and services supported commenter suggests that the primarily for educational purposes and
by the Emergency Connectivity Fund Commission adopts a presumption that by students, school staff, and library
Program be used primarily for all off-campus use of eligible equipment patrons, the Commission requires
educational purposes. Although the text and services is an ‘‘educational use.’’ schools and libraries to restrict access to
of section 7402 of the American Rescue Others argue that the Commission eligible connected devices to only those
Plan is silent on permitted uses of should allow eligible equipment and students, school staff, and library
equipment and services eligible for services to be used for broader purposes patrons with appropriate credentials.
Emergency Connectivity Fund support, without imposing any constraints or The Miami-Dade County Public
that section of the Act is entitled giving priority to educational uses, Schools, in response to the question in
‘‘Funding for E-Rate Support for including for professional development the notification, confirms in its
Emergency Educational Connections and to support household connectivity comments that it already requires
and Devices.’’ Moreover, it provides that that provides access to a variety of appropriate credentials, and the
the Commission promulgate rules for internet resources, not just educational Commission expects other schools and
the provision of funding consistent with or library resources or limited to the libraries are doing the same. The
sections 254(h)(1)(B) and (2) of the intended users specified in the Act. In Commission thus finds that imposing
Communications Act, and section requesting such expansive uses for such a restriction will not impose an
254(h)(1)(B) of the Communications Act eligible equipment and services, additional burden on most applicants
requires telecommunications carriers to commenters ignore the fact that the and is an important safeguard to ensure
provide services to schools and libraries Congressional reason for establishing that connected devices supported by
for ‘‘educational purposes.’’ As a result, the Emergency Connectivity Fund was this Program are used for their intended
the Commission’s E-Rate rules require to fund emergency educational purpose and by intended users. In
schools and libraries to use E-Rate- connections and devices, as reflected in addition requiring schools and libraries
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00011 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
29146 Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations
to restrict access to the connected section 254(h)(2)(A) of the 63. The Commission recognizes that
devices they provide for use by Communications Act’s direction that in some instances $400 may not be a
students, school staff, and library services be ‘‘technically feasible and reasonable maximum cost for a
patrons helps protect the privacy of economically reasonable,’’ the connected device that meets the needs
those users by limiting access to any Commission adopts reasonable support of some people with disabilities.
information they have stored on such amounts for connected devices and Wi- Applicants may request a waiver of the
devices. Fi hotspots and a framework to reasonable support amount for
60. Recognizing that it may not determine unreasonable costs for other connected devices, if the reasonable cost
always be technically possible to eligible equipment and services to purchase devices for students, school
similarly restrict access for other eligible supported under this Program. staff, or patrons with disabilities is
equipment and eligible services 62. For connected devices and Wi-Fi higher than $400 and the public interest
supported by this Program, the hotspots, the two types of eligible warrants deviation from the general
Commission encourages, but do not equipment for which the Commission rule. The Commission emphasizes that
require, schools and libraries to take the expects to see the most requests for applicants seeking a waiver for this
same approach for the use of other support through the Emergency purpose should demonstrate that the
eligible equipment and services. The Connectivity Fund Program, the additional cost associated with
Commission finds that restricting access Commission adopts per-device caps connected devices for those with
in this way is a best practice and will based on a reasonable support amount, disabilities is necessary to meet the
help ensure that eligible services are up to which an applicant may receive needs of students, school staff, and
provided to students, school staff, and library patrons with disabilities that
support. Adopting these reasonable
library patrons, as provided for by the would otherwise not be met with the
maximum support amounts will provide
Act. purchase of a connected device at the
the simplest review process for
F. Reasonable Support Amount applications requesting these two types $400 reasonable support amount the
of equipment, although applicants will Commission sets for the Program.
61. The Commission next establishes
a range of costs that are presumed be reimbursed based on the actual costs 64. For Wi-Fi hotspots, the
reasonable for eligible connected of the equipment. First, after Commission adopts $250 as a maximum
devices and Wi-Fi hotspots and direct consideration of the record, the reasonable cost for a Wi-Fi hotspot
USAC to limit funding commitments for Commission finds that $400 is a provided by a school or library to a
each type of equipment or device to the reasonable, maximum support amount student, school staff member, or library
maximum amount deemed reasonable. for connected devices. In response to patron, based on advertised costs for
The Commission also establishes an the Remote Learning Public Wi-Fi hotspots. Again, applicants that
application review process for Notification, 86 FR 9309 (Feb. 12, 2021), spend more than $250 per Wi-Fi hotspot
considering the reasonableness of other commenters discussed costs of between may seek $250 in support for such
types of eligible equipment and $160 and $650, and just under $300 for devices. This maximum allowable cost
services. In the E-Rate Program, iPads. Here, stakeholders support a is for the equipment itself, and the
competitive bidding and the reimbursement limit between $300 and Commission expects applicants to
requirement to use price as the primary $750 per device to ensure that the separately seek support for the cost of
factor help ensure cost-effective Emergency Connectivity Fund is not the service provided using the hotspot
purchasing. As discussed in greater used entirely to support a limited device.
detail below, because the Commission is number of expensive connected devices 65. For the other types of eligible
providing support for purchases made and to allow the Program to support the equipment—namely, modems, routers,
during the pandemic without requiring much-needed connectivity for students, and devices that combine modems and
a competitive bidding process, those school staff, and library patrons. One routers—the Commission does not at
protections do not exist here. Moreover, commenter suggests that $500 is more this time have a sufficient record to
schools and libraries purchased these than sufficient to cover the most determine a reasonable maximum
equipment and services, often on short commonly used connected devices, support amount, nor does the
notice and during a time when demand while another representing states across Commission expect to receive requests
was high for tablets, laptops, and Wi-Fi the country determined that $300 per totaling a substantial amount of the
hotspots, and supply chains were device reflects a reasonable allowance Fund. The Commission therefore directs
disrupted leading some schools and based on knowledge of procurements USAC to carefully review the requests
libraries to pay premium prices for over the last year. However, after and identify applications that are out of
needed equipment. At the same time, consideration of the record, $400 is a line with the funding requests of other
the Commission is mindful that the reasonable amount to reimburse for the applicants. The Commission delegates
Emergency Connectivity Fund, while vast majority of the devices suggested in authority to the Bureau to provide
substantial, is insufficient to meet the the record, consistent with limits other guidance to USAC for assessing the
entire need of the nation’s schools and programs have used. The Commission reasonability of those applications based
libraries for eligible devices and also elects a maximum support amount on the universe of requests for
services. Congress therefore directed the of $400 in order to ensure funding is reimbursement for similar equipment
Commission to reimburse 100% of the available equitably, does not and on applicants’ justifications for
costs associated with eligible equipment unintentionally provide more support to their requests. The Commission
and services, ‘‘except that any schools and libraries that had greater recognizes that costs may be higher
reimbursement of a school or library for access to funds, and increases the because of supply chain issues at the
the costs associated with any eligible likelihood of available funds for those start of the pandemic, or geographic
equipment may not exceed an amount schools and libraries with continuing differences, and the Commission
that the Commission determines, with unmet needs. To be clear, applicants expects applicants to be prepared to
respect to the request by the school or that spend more than $400 per explain their selections and costs, as
library for reimbursement, is connected device may seek support of needed, to be eligible for 100%
reasonable.’’ Read in conjunction with $400 for each such device. reimbursement.
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00012 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations 29147
66. Consistent with this approach for libraries based on their square footage, Then, if there are remaining funds after
eligible equipment and the requirements with some adjustments for higher this initial application window, the
under section 254(h)(2)(A) that the poverty or more rural applicants. This is Commission will open a second
Commission provide access to services the basic model used for determining application window for schools and
to the extent technically feasible and the amount of funding provided to libraries to seek funding for eligible
economically reasonable, the schools and libraries that apply for E- equipment and services they previously
Commission also directs USAC to Rate support for internal connections purchased to address the needs of
review applications for commercially (category two services). students, school staff, and library
available advanced telecommunications 70. The Commission agrees with patrons who would otherwise have
and information services and identify commenters that budgets have been a lacked access to the equipment or
the applications with outlying costs. successful approach to funding category services sufficient to engage in these
The Commission delegates authority to two services. The commenters activities during the COVID–19
the Bureau to provide guidance to supporting a similar budget approach pandemic. During this second
USAC on how to determine the for apportioning the Emergency application window, applicants will be
reasonableness of such costs. Based on Connectivity Fund, however, fail to able to submit requests for funding for
the record, the Commission expects that acknowledge that those category two purchases made from March 1, 2020 to
most of the applications for support for budgets were adopted after a lengthy June 30, 2021. However, in
broadband internet access services will rulemaking and analysis of the costs of consideration of the importance of
be for services purchased under bulk deploying internal connections within providing support for unconnected
purchase agreements, and the schools and libraries. While these students, in the event that demand for
Commission expects services to category two budgets do not precisely prospective support in the first window
generally be in the range suggested by meet the costs of each applicant, they appears to be far short of meeting
commenters between $10 and $25 per were established with a goal of meeting current needs, the Commission may
month. every school and library’s need for consider opening a second prospective
67. At the same time, the Commission category two services over the course of window before opening an application
recognizes that not all schools and a five-year budget cycle using available window to fund previously purchased
libraries will be able to benefit from data on the costs and network needs and eligible equipment and services.
such bulk purchasing arrangements and made permanent after careful
72. In adopting this approach, the
pricing for broadband services varies examination of the budget amounts.
widely across its nation based on the Here, the Commission lacks sufficient Commission is particularly cognizant of
availability of competitive options, data or estimates to make such the substantial remaining unmet need
rurality, and other factors. In assessing determinations and instead find for connected devices and broadband
the reasonableness of costs for commenters’ suggested budget levels to internet access services among students,
broadband internet access services, largely be focused on dividing the school staff, and library patrons. The
particularly in rural locations, USAC appropriated funds with slight Commission also recognizes that a
and the Bureau should make use of the differences to account for income or significant amount of other Federal
reasonable comparability benchmarks rurality. Had Congress wished to funding has been made available to
established for the High Cost Universal provide a set amount of funding to each schools to assist with digital learning
Service Support Program. The Bureau school and library in the country, it (although schools have had the option
and the Office of Economics and could have easily done so. Instead, the to use that funding to meet a plethora
Analytics publishes an updated American Rescue Plan clearly states that of other pressing needs as well) through
reasonable comparability benchmark the Commission shall reimburse 100% both the Coronavirus Aid, Relief, and
annually, including Alaska-specific of the costs associated with the eligible Economic Security (CARES) Act last
benchmarks. equipment and services, subject to a year, as well as other provisions of the
68. The Commission is mindful of the determination of what constitutes American Rescue Plan Act. The
many valid concerns expressed in the reasonable equipment costs, and approach the Commission takes in
record that there may be insufficient suggestions that the Commission prioritizing existing unmet need,
funding available for the Emergency implement applicant budgets is simply followed by a funding window
Connectivity Fund Program to fully inconsistent with this direction. providing support for previous
support the emergency connectivity and purchases during the pandemic, is
device needs of all eligible schools and G. Application Process consistent with the suggestion made by
libraries across the nation. In 71. The Commission adopts an those commenters who support
recognition of the concerns that application process that first provides prioritizing future purchases, as well as
reimbursement could be slow or funding to schools and libraries for those who support allowing applicants
uncertain, the Commission aims purchases during the coming school to request support for both past and
throughout this Report and Order to year of eligible equipment and services future purchases. Some other
implement Program rules and processes for use by students, school staff, and commenters support allowing requests
that help applicants easily apply for library patrons who would otherwise only for purchases made after the date
funding and receive support as quickly lack access to eligible equipment or of this Order, others support prioritizing
as possible. services sufficient to engage in remote prior purchases, and still others support
69. The Commission has carefully learning and virtual library services. As opening a single application window
considered, but do not adopt here, the discussed further below, during this providing support for past and future
recommendation made by many first application window, applicants purposes. The Commission recognizes
commenters that instead of imposing will be able to submit requests for that there is some merit to these other
reasonable maximum support amounts funding for purchases made between approaches. In particular, the
by type of eligible equipment and July 1, 2021 and June 30, 2022, which Commission sees the appeal of using the
service, the Commission sets funding aligns with the coming school year and Emergency Connectivity Fund Program
amounts for schools based on the the E-Rate funding year, with which to first reimburse those schools and
number of students in a school, and for schools and libraries are very familiar. libraries that have already paid for
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00013 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
29148 Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations
eligible equipment and services to meet determine the connectivity needs of The Commission includes within this
the needs of their students, school staff, their students and staff. The first window, only eligible equipment
and library patrons by prioritizing past Commission thinks that schools are in ordered by and received, as well as only
purchases. On balance, however, the the best position to determine whether services delivered by June 30, 2022.
Commission finds that doing so would their students and staff have devices 77. The Commission finds that a 45-
not be the best use of public funds and broadband services sufficient to day application window will provide
because it would create a risk that the meet their remote learning needs, and sufficient time for schools and libraries
Commission would have insufficient the Commission recognizes that they are to apply for reimbursement. The
funding available to provide support for making such decisions in the midst of Commission considered the suggestion
connected devices and broadband a pandemic. The Commission, therefore, of some commenters that a 30-day
internet access services for students, will not impose any specific metrics or application filing window would be
school staff, and library patrons who process requirements on those sufficient, but the Commission is
otherwise will not have access to determinations, but the Commission mindful that this is a new program, the
devices and connectivity sufficient to expects schools to take reasonable application window will be open during
meet their remote learning needs during measures to determine need, avoid the summer, and school staff have much
the coming school year. Adopting a duplicating support provided by other to do to get schools ready for the
single funding window for past and programs such as the Emergency upcoming school year. The Commission
future purchases creates the same risk, Broadband Benefit Program, and also considered suggestions that the
and imposes substantial administrative document need to the extent they do not filing window be longer, but this is an
burdens on schools and libraries and on already do so. ‘‘emergency’’ program. Closing the
USAC. 75. The Commission recognizes that window after 45 days will allow USAC
73. As discussed above, section libraries do not usually inquire about to quickly size demand, review
7402(a) requires that the Commission the needs of their patrons before applications, and release funding
promulgates rules for the provision of providing services. They do, however, commitment decision letters—ensuring
support under sections 254(h)(1)(B) and typically have acceptable use policies that funding from the Emergency
(h)(2) of the Communications Act. governing patron use of library Connectivity Fund will begin to flow to
Section 254(h)(2) of the computers and Wi-Fi hotspots. To eligible applicants within a short period
Communications Act, in turn, requires ensure that libraries are providing of time.
the Commission to consider what is eligible equipment and services to 78. Additional Application Filing
technically feasible and economically patrons with unmet needs, the Windows. If demand does not exceed
reasonable when providing support for Commission therefore requires that on a available funds for the first application
advanced telecommunications and going forward basis before providing a period and the Commission does not
information services. Given this library patron with eligible equipment open a second prospective window, the
statutory direction, as well as the or services, for which the library is Commission delegates authority to the
limited funding available under the seeking Emergency Connectivity Fund Bureau to direct USAC to open
Emergency Connectivity Fund Program, support, the library must provide the additional application filing windows
the Commission therefore finds it patron a copy of an eligible use policy, until the funds are exhausted or the
reasonable to prioritize support to which explains that the equipment or emergency period ends, whichever is
connect those students, school staff, and service is intended for library patrons earlier. The Commission recognizes that
library patrons that would otherwise who do not otherwise have access to there will be a point at which the
lack sufficient connectivity to benefit equipment or services sufficient to meet administrative costs to applicants and
from remote learning this coming school the patron’s educational needs. On a USAC of opening an application process
year. In so doing, the Commission is going forward basis, the Commission for a relatively small amount of
also mindful of the purpose of the Fund also requires that the library patron sign remaining funds is not cost-effective
and Congress’ intent to address the and return a statement that the library and delegate authority to the Bureau,
connectivity needs of students, school patron would otherwise lack access to after consultation with the Office of the
staff, and library patrons who would equipment or services sufficient to meet Managing Director and USAC, to
otherwise be unable to access the patron’s educational needs if not for determine when that point has been
educational and library services due to the use of the equipment or service reached.
the pandemic. being provided by the library. 79. In setting a start date for purchases
74. To ensure that funding is focused 76. Initial Emergency Connectivity that are reimbursable through the
on unmet need, the Commission will Fund Program Application Filing Emergency Connectivity Fund Program
require schools to certify, as part of their Window. To speed the availability of in the second application filing
funding application, that they are only funds to schools and libraries during the window, the Commission agrees with
seeking support for eligible equipment public health emergency, the commenters that urge the Commission
provided to students and school staff Commission directs USAC to open an to use March 1, 2020 as the starting date
who would otherwise lack access to initial 45-day Emergency Connectivity for the Emergency Connectivity Fund
connected devices sufficient to engage Fund Program filing window as soon as Program. Although January 27, 2020 is
in remote learning. The Commission practicable. During this initial the date the Secretary of Health and
will also require schools to certify, as Emergency Connectivity Fund Program Human Services retroactively
part of their funding application, that filing window, eligible schools and determined that a public health
they are only seeking support for libraries may apply for funding for the emergency existed as a result of COVID–
eligible services provided to students purchase of eligible equipment and 19 pursuant to section 319 of the Public
and school staff who would otherwise services made between July 1, 2021 and Health Service Act, and section 7402
lack broadband services sufficient to June 30, 2022 and provided during that states that its regulations should provide
engage in remote learning. This should time period to students, school staff and for the provision of support for
not be an onerous burden, as the record library patrons who still lack access to purchases ‘‘during a COVID–19
shows that many school districts have adequate connected devices, other emergency period,’’ the Commission
conducted needs assessments to eligible equipment or eligible services. views that language as giving it
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00014 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations 29149
discretion to determine the appropriate without the knowledge of whether such leverage the existing E-Rate application,
funding period for purchases made expenses would be reimbursed. While i.e., FCC Form 471 (Description of
during the COVID–19 emergency such expenses will still be reviewed to Services Ordered and Certification
period. While some commenters suggest ensure the costs were reasonable, the Form) and other E-Rate processes to the
using July 1, 2020 as a start date for Commission is convinced that the extent feasible for the Emergency
eligibility for Emergency Connectivity Commission can rely on the local, state, Connectivity Fund Program. Schools
Fund support for administrative ease, and Tribal procurement requirements as and libraries are already familiar with
the Commission agrees with those a check on unreasonable spending. For these processes and will be able to
commenters that argue that it will be purchases made after the date of this apply more easily than if an entirely
fairer to applicants that acted quickly, Report and Order, some stakeholders new system is developed using different
once they became aware of the looming recommend a streamlined competitive forms and processes. The Commission
pandemic, to use March 1, 2020 as the bidding approaches, ranging from just also expects that leveraging E-Rate
starting date based on when schools minor modifications to the E-Rate processes and forms will likely reduce
began sending students home because of competitive bidding rules to a shortened administrative costs and delays in the
the pandemic. As the Remote Learning 14-day competitive bidding window. Emergency Connectivity Fund Program
Coalition points out, every state in the Given the emergency nature of this and ensure that Emergency Connectivity
nation began closing schools in March funding, as well as the ability of the Fund Program support is quickly
2020. Given the statutory goal of Commission to review and reject the released to schools and libraries.
meeting the need of students, school requests for unreasonable costs, the 84. Prioritization. In the event that
staff, and library patrons for Commission is convinced that demand exceeds available funds during
connectivity during the pandemic, compliance with local, state, and Tribal any Emergency Connectivity Fund
allowing reimbursement for purchases procurement regulations will Program application filing window, the
made beginning on the first day of the sufficiently safeguard the Program for Commission will prioritize requests
month when schools began to close future purchases and decline to adopt a based on applicants’ E-Rate Program
because of the pandemic helps ensure streamlined competitive bidding discount rate for category one services,
that the Commission provides support process for the Emergency Connectivity adjusted to provide a five percent bump
that is tied to needs arising from the Fund Program.
up for rural schools and libraries. Those
pandemic. 82. The Commission also clarifies that
schools and libraries entitled to a higher
80. Competitive Bidding schools and libraries may seek support
Requirements. The Commission allows from the Emergency Connectivity Fund discount will receive funding ahead of
eligible schools and libraries to seek Program for the purchase of eligible those entitled to a lower discount rate.
reimbursement for the cost of eligible services and equipment using existing In the event there is insufficient funding
equipment and services purchased bulk purchase programs or sponsored to meet the need at a particular discount
without having conducted a service agreements, so long as doing so rate, the Commission will prioritize
Commission-mandated competitive is consistent with the relevant local, within the discount rate based on the
bidding process for purposes of the state and Tribal procurement percentage of free and reduced lunch
Emergency Connectivity Fund. Based on regulations. Unlike the traditional E- eligible students, consistent with the
the record, the Commission concludes Rate Program, which funds broadband rules for the E-Rate Program.
that it is appropriate in light of the connectivity to a single school or Commenters suggest using assorted
emergency, rather than adopting an district of schools and therefore variations on the E-Rate discount matrix
Emergency Connectivity Fund generally only funds service from the or a set-aside to reflect need in rural or
competitive bidding process, to require single most cost-effective service Tribal areas, or special education
schools and libraries seeking funding provider, the Emergency Connectivity programs and services. Adjusting the
from the Emergency Connectivity Fund Fund Program is aimed at connecting discount matrix to increase the
to certify that they have complied with numerous students, school staff, and likelihood of rural schools and libraries
all applicable local, state, and Tribal library patrons at their homes or other receiving funding in the event that
procurement requirements with respect locations, and therefore a school district demand exceeds available funds, will
to both previous purchases and future or library system appropriately may provide a more equitable geographic
purchases and contracts. This requires have agreements with multiple service distribution of available funds,
schools and libraries that are not subject providers to offer connectivity. At the particularly in light of the higher cost of
to public procurement rules to follow same time, the Commission declines to residential broadband services in many
their own procurement process and adopt the suggestion made by at least rural areas and the extraordinary
rules, such as those that may be one commenter that the Commission circumstances of the pandemic. The
included in a written charter. requires school districts to select Commission declines suggestions that
81. For purchases that have already multiple existing providers, or set the Commission provides a prorated
been made and contracts that have requirements for solicitation, finding amount of funding to all applicants that
already been executed, it is impractical that flexibility is appropriate under the apply for support, finding instead that
to attempt to impose Commission- circumstances. The Commission also prioritizing by the discount rates
specific competitive bidding or other reminds applicants that only eligible provides a better method to prioritize
contract restrictions on such purchases, schools and libraries may seek the needs of high poverty and rural
and the Commission is also persuaded reimbursement for such costs, and schools and libraries. The Commission
that compliance with local, state, and therefore a non-profit organization or finds that the approach the Commission
Tribal procurement requirements offer other entity that arranged for such bulk adopts in this document balances the
significant protections against waste, purchases is not eligible for goal of targeting funding to the students,
fraud and abuse. Schools and libraries reimbursement through the Emergency school staff, and library patrons with the
have been asked to take incredible steps Connectivity Fund Program. greatest need with the goal of
at great cost this year in order to 83. Leveraging E-Rate Processes and maximizing administrative efficiency by
facilitate remote learning and keep their Forms. As commenters strongly support, adjusting existing E-Rate Program
communities connected, and they did so the Commission directs USAC to standards rather than creating whole
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00015 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
29150 Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations
new processes just for the Emergency 88. Although the Commission allows related to their reimbursement request
Connectivity Fund Program. applicants to request that their service (including, for example, contracts and
providers submit invoices for payment asset inventories).
H. Invoicing and Reimbursement 90. Leveraging Existing E-Rate
from the Emergency Connectivity Fund,
Process Invoicing Forms. To further streamline
the Commission does not require service
85. As discussed above, one of the providers to accept that responsibility. the invoicing process and reduce
goals the Commission adopts for the At this juncture, the Commission burdens on applicants, the Commission
Program is to efficiently and effectively expects that applicants and service directs USAC to leverage the existing E-
administer funding, which will be providers may have already entered into Rate invoicing forms to the extent
measured in part by the speed and ease contracts for much of the eligible feasible for the Emergency Connectivity
of the reimbursement process. equipment and services to be purchased Fund Program. Because the Commission
Consistent with that goal, the in the coming school year, and service allows applicants and service providers
Commission establishes a streamlined providers would not have entered into to submit reimbursement requests, the
invoicing process for applicants and those contracts expecting to have Commission expects USAC to use, to
service providers to submit requests for responsibility for invoicing the the extent possible, the FCC Form 472
reimbursement, leveraging existing E- Emergency Connectivity Fund Program. (Billed Entity Applicant Reimbursement
Rate forms to reduce administrative At the same time, if requested to do so (BEAR) Form) and FCC Form 474
burdens where possible, while by the school or library, some service (Service Provider Invoice (SPI) Form)
providing effective safeguards against providers may be willing to invoice the for this purpose. As detailed below, the
waste, fraud, and abuse. Federal Government rather than the Commission will require participants to
86. Submission of Reimbursement school or library for payment. The make certain certifications on the form
Requests. As part of this streamlined Commission therefore concludes on to protect against waste, fraud, and
process, the Commission allows balance that allowing both options for abuse. By leveraging existing E-Rate
applicants and service providers to submission of Emergency Connectivity forms, the Commission expects to save
submit requests for reimbursement. The Fund Program reimbursement requests participants time needed to familiarize
Commission agrees with those is an efficient and effective way to themselves with new forms and reduce
commenters that explain allowing both ensure that applicants are actually able administrative costs.
to purchase the eligible equipment and 91. Invoicing Deadline. The
applicant and service provider invoicing
services. For administrative simplicity, notification sought comment on
options is the most efficient and direct
applicants must specify at the establishing a short window for schools
way to get much needed funding to and libraries to file invoices and
eligible schools and libraries. The application stage whether the applicant
reimbursement requests and sought
Commission sees no reason not to send or service provider will be doing the
comment on what the shortest possible
the actual funds to the service provider invoicing. If an applicant indicates that
invoice filing window would be that
where the applicant and service the service provider will be doing the
would not impose undue burden on
provider have both consented to that invoicing, the applicant will have to
applicants. In order to allow the
approach and the applicant can show submit evidence of the service
Commission to de-obligate committed
that the contractual obligation exists. As provider’s willingness to do so.
funds for use by other schools and
part of the invoicing process, applicants 89. Documentation. To protect against libraries, the Commission directs USAC
and service providers must provide waste, fraud, and abuse of the Fund, the to start accepting requests for
required certifications, along with any Commission will require applicants and reimbursement within 15 days of the
necessary documentation to support service providers to submit, along with first wave of commitments in the first
their requests. The Commission clarifies their reimbursement requests, invoices application filing window. The
that applicants may use consultants and detailing the items purchased. Invoices Commission permits applicants and
service providers to assist with the must support the amounts requested in service providers to submit
preparation of their reimbursement the application form and reimbursement reimbursement requests and invoices for
requests to the extent necessary, but any request. The Commission agrees with prior and prospective purchases for 60
fees associated with such assistance are commenters that suggest submission of days from the date of the funding
not eligible for funding under the invoices with reimbursement requests is commitment decision letter; a revised
Program. sufficient in most instances and will funding commitment decision letter
87. In addition, the Commission is help expedite review of reimbursement approving a post-commitment change or
also sympathetic to concerns raised by requests and the disbursement of funds. a successful appeal of a previously
commenters that applicants may not be While the Commission will not require denied or reduced funding commitment;
able to cover the upfront costs applicants and service providers to or service delivery date, whichever is
associated with eligible equipment and submit other supporting documentation later. That is half the time provided in
services. The Commission therefore will at the time they submit their the E-Rate Program, but necessary to
allow applicants who have entered into reimbursement requests, as discussed ensure that the Commission can identify
contractual arrangements or are further below and pursuant to its unspent funds and make them available
otherwise legally obligated to purchase document retention requirements, all to other applicants as quickly as
eligible equipment and services from participants must certify receipt/ possible. Commenters agree that a
their service provider, to submit delivery of eligible equipment and shorter invoicing period is reasonable
requests for reimbursement before they services and that only eligible and recommend an invoicing window of
have paid for the requested equipment equipment and services were invoiced, between 60 and 90 days. The
and services. Applicants must pay their as well as retain and provide upon Commission finds that 60 days strikes
service provider within 30 days after request by USAC, Commission staff, or the correct balance.
receipt of funds and will be required to any other authorized Federal entity with
certify compliance and provide oversight authority over Federal I. Payment Administration
verification of payment to the service financial assistance and/or the Federal 92. While USAC will be administering
provider. response to the pandemic, all records the Emergency Connectivity Fund
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00016 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations 29151
Program as permitted under section SAM will be able to receive Connectivity Fund, the Commission
7402(c)(2)(A) of the American Rescue reimbursement from the Emergency designates USAC as the Administrator
Plan, and pursuant to the terms of the Connectivity Fund Program. Applicants of the Emergency Connectivity Fund
Memorandum of Understanding and service providers that are already Program. The Commission will use
between the Commission and USAC registered with SAM do not need to re- USAC’s services to review and approve
that authorizes the use of USAC for the register with that system in order to applications for funding, recommend
administration of the Emergency receive payment from the Emergency funding commitments, issue funding
Connectivity Fund Program, the Connectivity Fund Program. Applicants commitment decision letters, review
Commission must authorize the who are not already registered with requests for reimbursement and invoices
payments from the Emergency SAM may still participate in the and recommend payment of funds, as
Connectivity Fund prior to the Emergency Connectivity Fund Program, well as other administration-related
disbursement of those funds by the apply for funding, and receive program duties. Commenters that addressed the
United States Department of Treasury. commitments. However, active SAM issue overwhelmingly support using
In this Report and Order, the registration is required for an applicant USAC and its processes for the efficient
Commission provides guidance on steps or service provider to receive a payment and effective administration of the
participants must be prepared to take to from the Emergency Connectivity Fund Emergency Connectivity Fund Program,
ensure timely payment of Program. To assist participants who are and the Commission agrees that USAC’s
reimbursement claims from the Fund, as not registered with SAM, the experience administering the E-Rate
well as processes used to ensure proper Commission directs USAC to provide Program and other Commission
payment. information and guidance to pandemic response programs makes
93. FCC Red Light Rule. To implement participants regarding the SAM USAC uniquely situated to be the
the requirements of the Debt Collection registration process. Furthermore, administrator of the Emergency
Improvement Act of 1996, the Program recipients may be subject to Connectivity Fund Program.
Commission established what is further FFATA/DATA Act reporting 97. In designating USAC as
commonly referred to as the ‘‘red light requirements to the extent that awardees Administrator of the Emergency
rule.’’ Under the red light rule, the subaward the payments they receive Connectivity Fund Program, the
Commission will not take action on from the Program, as defined by Commission adopts the same
applications or other requests by an FFATA/DATA Act regulations. requirements for USAC as are currently
entity that is found to owe debts to the Recipients may be required to submit provided in § 54.702(c)–(d) of its rules
Commission until full payment or data on those subawards. governing USAC’s duties as
resolution of that debt. If the delinquent 95. Do Not Pay. Pursuant to the Administrator of the Universal Service
debt remains unpaid or other requirements of the Payment Integrity Support Programs. In so doing, among
arrangements have not been made Information Act of 2019, the other things, the Commission prohibits
within 30 days of being notified of the Commission is required to ensure that a USAC from making policy, interpreting
debt, the Commission will dismiss any thorough review of available databases unclear statutes or rules relied upon to
pending applications. If an Emergency with relevant information on eligibility implement and administer the
Connectivity Fund participant is occurs to determine program or award Emergency Connectivity Fund Program,
currently on red light, it will need to eligibility and prevent improper or interpreting the intent of Congress.
satisfy or make arrangements to satisfy payments before the release of any 98. In its administration of the
any debts that it owes to the Federal funds. To meet this Program, the Commission also directs
Commission before its application can requirement, the Commission and USAC to comply with, on an ongoing
be processed. USAC will make full use of the Do Not basis, all applicable laws and Federal
94. System for Award Management Pay system administered by the U.S. Government guidance on privacy and
(SAM) Registration. All applicants that Treasury’s Bureau of the Fiscal Service. information security standards and
intend to participate and all service If a check of the Do Not Pay system requirements, such as the Privacy Act,
providers that elect to submit requests results in a finding that an Emergency relevant provisions in the Federal
for reimbursement in the Emergency Connectivity Fund Program applicant or Information Security Modernization Act
Connectivity Fund Program must also service provider should not be paid, the of 2014, National Institute of Standards
register with the System for Award Commission will not issue any funding and Technology publications, and
Management (SAM). SAM is a web- commitments or issue disbursements. Office of Management and Budget
based, government-wide application The Emergency Connectivity Fund guidance.
that collects, validates, stores, and Program participant is responsible for 99. Universal Service Fund Program
disseminates business information working with the relevant agency to audits have been successful in helping
about the Federal Government’s correct its information in the Do Not Pay participants become compliant with the
partners in support of Federal awards, system before its Emergency Commission’s rules and in protecting
grants, and electronic payment Connectivity Fund Program application the funds from waste, fraud, and abuse.
processes. Registration in the SAM is processed and Program payments can The Commission therefore reminds
provides the Commission with an be issued. Emergency Connectivity Fund Program
authoritative source of information participants including schools, libraries,
necessary to provide funding to J. Designating USAC as the consortia, and service providers, that
applicants and to ensure accurate Administrator of the Emergency similar to the E-Rate and other
reporting pursuant to the Federal Connectivity Fund Program Universal Service Fund Programs, they
Funding Accountability and 96. Pursuant to the authority granted shall be subject to audits and other
Transparency Act of 2006, as amended in section 7402(c)(2)(A) of the American investigations to evaluate their
by the Digital Accountability and Rescue Plan, and the terms of the compliance with the statutory and
Transparency Act of 2014 (collectively, Memorandum of Understanding regulatory requirements for the
Transparency Act or FFATA/DATA between the Commission and USAC Emergency Connectivity Fund Program.
Act). Only those applicants and service that authorizes the use of USAC for the If the Commission determines that
providers that are actively registered in administration of the Emergency USAC should administer program
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00017 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
29152 Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations
audits for the Emergency Connectivity 102. Congress enacted CIPA as part of services, or E-Rate support for internal
Fund Program, the Commission will the Consolidated Appropriations Act of connections. This is true even if the
direct USAC to perform such audits 2001, amending section 254 of the student or library patron does not use
pursuant to the Commission and Communications Act. CIPA requires a internet access services provided by the
USAC’s respective roles and school or library ‘‘having’’ internet- school or library. This conclusion
responsibilities in the Memorandum of connected computers and receiving E- follows from the statutory text: CIPA
Understanding. Rate funding for internet access, internet applies to a school or library ‘‘having’’
100. The Commission also provides a service, or internal connections to computers and requires the entity to
path for recourse to parties aggrieved by comply with, and certify its compliance certify compliance as to ‘‘its’’
decisions issued by USAC. Specifically, with, specific internet safety computers. Both words indicate that
the Commission adopts the appeals and requirements for ‘‘its’’ computers, CIPA is triggered by ownership of a
waiver request rules that govern USAC’s including the adoption and enforcement device, not the location where the
administration of the Universal Service of an internet Safety Policy that device is used or temporarily possessed.
Support Programs, including the E-Rate includes the operation of a technology The Commission disagrees with the
Program. The Commission finds these protection measure. Schools, but not suggestion that CIPA applicability is
existing processes sufficient to provide libraries, must also provide education narrowly limited to school- or library-
a meaningful review of decisions issued about appropriate online behavior owned computers within a school or
by USAC and the Commission regarding including cyberbullying. library building. While the drafters of
the Emergency Connectivity Fund 103. Many commenters support the CIPA may have been primarily focused
Program. However, the Commission applicability of CIPA requirements in on computers within schools or
makes one modification for the the context of the Emergency libraries, that is because of the
Emergency Connectivity Fund Program Connectivity Fund Program, while circumstances at the time, and the plain
appeal and waiver rules and provide a others raised concerns regarding the language of the statute is not so limited.
30-day timeframe to request the review potential challenges of implementing It reaches the use of devices owned by
of an action by USAC, or to request the CIPA compliance on services and schools and libraries, regardless of
review of a decision by USAC or a devices that are outside of the whether the device is used off-campus,
waiver of the Commission’s rules. The applicant’s direct control. The including use of such devices by
Commission makes this change because Commission rejects the argument made students in their homes.
this is a short-term emergency program by at least two commenters that CIPA 105. Second, the Commission
and to help provide faster timeframes does not apply to the Emergency concludes that CIPA does not apply to
for issuing appeal and waiver decisions. Connectivity Fund Program because the the use of computers owned by a school
American Rescue Plan does not or library including those laptop
K. Children’s Internet Protection Act
explicitly cite to the CIPA provisions in computers or tablet computers
101. The Commission finds that the section 254 of the Communications Act. purchased with support from the
obligations of the Children’s Internet Section 7402(a) of the American Rescue Emergency Connectivity Fund Program,
Protection Act (CIPA), which apply to Plan requires that the Emergency if the purchasing entity does not also
schools and libraries having computers Connectivity Fund is to be made receive Emergency Connectivity Fund
with internet access that seek E-Rate available under section 254(h)(1)(B) and or E-Rate discounted internet access or
funding for internet access, internet (2), and CIPA requirements apply to internet services, or E-Rate discounted
service, or internal connections under eligible entities having computers with internal connections—or network
section 254(h)(1)(b) of the internet access that seek funding for equipment for internet access, internet
Communications Act also apply to internet access, and internet service, service, or internal connections. Here
schools and libraries making certain and internal connections under the too, the Commission’s conclusion
purchases through the Emergency same provision, section 254(h)(1)(B). follows from the plain text of the
Connectivity Fund Program. Therefore, as discussed further in this statute. CIPA prohibits a school or
Specifically, the Commission concludes section, the Commission concludes that library from ‘‘receiv[ing] services at
that CIPA applies to the use of school CIPA requirements extend to eligible discount rates’’ unless it complies with
or library owned computers, including entities having computers with internet CIPA. CIPA also makes clear that this
laptop and tablet computers, if the access that seek support for internet prohibition does not apply to a school
school or library accepts Emergency access or internet service through the or library that receives discounted
Connectivity Fund or E-Rate support for Emergency Connectivity Fund pursuant services ‘‘only for purposes other than
internet access or internet services, or E- to section 254(h)(1)(B). Few the provision of internet access, internet
Rate support for internal connections. commenters, however, analyzed service, or internal connections.’’ The
The Commission also concludes that whether CIPA’s applicability might Commission has construed these
CIPA does not apply where schools or depend on which equipment and provisions to mean that CIPA ‘‘applies
libraries have purchased advanced services a school or library purchases [only] to entities receiving internet
telecommunications and information through the Emergency Connectivity access, internet service, or internal
services through the Emergency Fund Program. And the Commission connections’’ under section 254(h).
Connectivity Fund Program to be used concludes that such an analysis is Thus, there is no statutory basis for
only in conjunction with student-, necessary, given the unique text and requiring CIPA compliance from a
school staff- or patron-owned structure of CIPA. school or library that does not receive
computers. As explained below, these 104. First, the Commission concludes those services through E-Rate or the
conclusions reflect the fact that section that CIPA applies to the use of any Emergency Connectivity Fund—even if
7402(a) of the American Rescue Plan computers owned by a school or library, it purchases laptop computers or tablet
expressly provides that Emergency including those purchased with computers through the Emergency
Connectivity Fund support is to be Emergency Connectivity Fund support Connectivity Fund.
made available pursuant to section if the school or library receives 106. Third and finally, the
254(h)(1)(B) and (2) of the Emergency Connectivity Fund or E-Rate Commission concludes that CIPA does
Communications Act. support for internet access or internet not apply to the use of third-party
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00018 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations 29153
owned devices, even if the school or L. Protections Against Waste, Fraud, about missing, lost, or damaged
library receives Emergency Connectivity and Abuse equipment.
Fund or E-Rate support for internet 110. For the Emergency Connectivity
access or internet services, or E-Rate 108. The Commission takes seriously Fund Program, the asset inventory for
support for internal connections. This its obligation to be a careful steward of devices provided to individuals, must
interpretation flows from the statute. A the Emergency Connectivity Fund, and include the following information: (a)
school or library does not ‘‘hav[e]’’ to protect the Program from waste, Device type (i.e., laptop, tablet, mobile
fraud, and abuse. The Commission is hotspot, modem/router); (b) device
student-, school staff- or patron-owned
committed to ensuring the integrity of make/model; (c) equipment serial
devices, nor would it make sense for a
the Emergency Connectivity Fund number; (d) the name of the person to
school or library to certify that those
Program and will pursue instances of whom the device was provided; and (e)
devices are ‘‘its’’ devices for purposes of
waste, fraud, or abuse under its own the dates the device was loaned out and
CIPA compliance. Moreover, when read
procedures and in cooperation with law returned to the school or library. The
in conjunction with section 254(h)(5) enforcement agencies. The specific inventory for devices not provided to
and (6), section 254(l) is meant to apply procedures identified below regarding individual students, school staff, or
only to a school’s or library’s asset inventory requirements, document library patrons, but used to provide
computers—and not to the delivery of retention requirements, the prohibition service to multiple eligible users, for
services for a student’s, school staff’s or on gifts, certifications, audits, and example, a Wi-Fi hotspot used to
library patron’s personal computer. treatment of eligible equipment are tools provide service on a school bus, must
Schools and libraries are free to decide at the Commission’s disposal to protect include the following information: (a)
whether to allow the use of third-party the Emergency Connectivity Fund and Device type (i.e., laptop, tablet, mobile
devices on their own networks or the to ensure the limited funding is used for hotspot, modem/router); (b) device
broadband connections purchased for its intended purposes to support and make/model; (c) equipment serial
use by their students, school staff, and enable remote learning for students, number; (d) the name of the school or
library patrons and to adopt measures to school staff, and library patrons library employee responsible for that
protect or limit the use of those nationwide. device; and (e) the dates the device was
connections by students, school staff or in service.
library patrons using their own devices 1. Device and Service Inventory 111. The Commission further requires
to access those connections. Requirements Emergency Connectivity Fund Program
participants to maintain a record of
107. CIPA Certifications. In 109. The Commission requires services purchased with Emergency
recognition of the long history of CIPA Emergency Connectivity Fund Program Connectivity Fund support. This record
compliance in the E-Rate application participants to maintain inventories of of services must include the following
process, the Commission finds that an devices and services purchased with information: (a) Type of service
Emergency Connectivity Fund applicant Program support. Commenters are very provided (i.e., DSL, cable, fiber, fixed
need not complete additional CIPA supportive of requiring Emergency wireless, satellite, mobile wireless); (b)
compliance certifications if it has Connectivity Fund Program participants broadband plan details, including:
already certified its CIPA compliance to maintain device and service Upload and download speeds and
for E-Rate support for the relevant inventories, which are also required in monthly data cap; (c) the name(s) of the
funding year (i.e., has certified its the E-Rate Program. Requiring eligible person(s) to whom the service was
compliance in an FCC Form 486 or FCC entities to keep and maintain provided; and for fixed broadband
Form 479). To the extent an applicant inventories for eligible equipment and service; (d) the service address, and (e)
for Emergency Connectivity Fund services purchased through the the installation date of service: And (f)
Program support has not already Emergency Connectivity Fund Program the last date of service (as applicable).
certified its CIPA compliance for E-Rate ensures that schools and libraries know The inventory for service not provided
applications, these applicants will be where the Emergency Connectivity to an individual student, school staff
required to certify either (1) that it is in Fund-supported equipment and services member, or library patron, but used to
are located and that they are being used provide service to multiple eligible
compliance with CIPA requirements
consistent with the same requirement in users must include the following
under section 254(h) and (l); (2) that it
the E-Rate Program. The Commission is information: (a) Type of service
is undertaking the actions necessary to
sympathetic to concerns expressed by provided (i.e., DSL, cable, fiber, fixed
comply with CIPA requirements; or (3)
some commenters that keeping track of wireless, satellite, mobile wireless); (b)
if applicable, that the requirements of equipment in the homes of students and
CIPA do not apply, because the broadband plan details, including:
library patrons is more difficult than Upload and download speeds and
applicant is not receiving discounted maintaining an inventory list of monthly data cap; and (c) the name of
internet access, internet services, or equipment in a school or library. The the school or library employee
internal connections. The Commission Commission acknowledges the fact that responsible for the service; (d) a
concludes that its approach will best some loss of equipment as a result of description of the intended service area;
ensure full accountability and students, school staff, or library patrons and for fixed broadband service; (e) the
compliance on the part of all schools breaking or losing the equipment or service address; (f) the installation date
and libraries, while minimizing moving out of the area and not returning of service, and (g) the last date of service
administrative burdens and costs for it, and other similar scenarios is to be (as applicable).
applicants and the Commission. To expected and is not per se evidence of
streamline the application and waste, fraud and abuse by the 2. Document Retention Requirements
reimbursement process, the CIPA applicants. However, it is the obligation 112. The Commission also adopts
certifications will be included on the of schools and libraries to keep track of records retention rules for the
FCC Form 471 that will be used for the and document the devices and other Emergency Connectivity Fund Program.
Emergency Connectivity Fund Program equipment that they distribute, and that Specifically, the Commission requires
and will not be on a separate FCC form. includes documenting information Emergency Connectivity Fund Program
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00019 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
29154 Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations
participants to retain records related to recognizes that many schools and parties will be able to seek a waiver of
their participation in the Program libraries may have taken advantage of the gift rules, following the sunset of
sufficient to demonstrate compliance free or discounted connections and this exception. The Commission finds
with all Program rules for at least 10 devices offered by service providers that this approach protects the integrity
years from the last date of service or over the course of the pandemic as a of the procurement of purchases
delivery of equipment. This 10-year result of the waiver of the E-Rate gift through the Emergency Connectivity
document retention requirement is rule granted by the Bureau last year. Fund Program without unnecessarily
consistent with the document retention That waiver currently enables service burdening applicants or hindering
requirement in the E-Rate Program, and providers to offer and provide, and beneficial partnerships between
many commenters were supportive of schools and libraries to solicit and participating service providers, schools,
conforming the document retention accept improved broadband connections and libraries that support remote
requirements of the two programs. or equipment for remote learning learning efforts during these
Doing so allows E-Rate participants to through June 30, 2021. Moreover, it is unprecedented times.
rely on their existing retention polices impractical to try to impose restrictions
4. Certifications
and mitigates the confusion that on activity that occurred before
different retention periods might create. Congress established the Emergency 116. As an additional measure to
Some commenters supported a shorter Connectivity Fund. safeguard the Emergency Connectivity
document retention period, explaining 114. Therefore, the Commission Fund from waste, fraud, and abuse, the
that the emergency nature of the adopts gift restrictions for the Commission requires participants to
Emergency Connectivity Fund Program Emergency Connectivity Fund Program provide several certifications as part of
makes the 10-year document retention that take into account that waiver. The the application and invoicing processes.
period too long. The Commission finds gift restrictions the Commission adopts The Commission has found, and
some of the shorter suggested document for the Program prohibit eligible schools participants largely agree, that the use of
retention periods of only one or two and libraries receiving support through certifications are a key compliance
years inadequate to protect the integrity the Emergency Connectivity Fund mechanism to protect the limited funds
of the Fund—as they would not provide Program, including their employees, from waste, fraud, and abuse. All
sufficient time to uncover and officers, representatives, agents, certifications must be made subject to
investigate instances of waste, fraud, independent contractors, and the provisions against false statements
and abuse. Although the Commission individuals who are on the governing contained in the Communications Act
has adopted shorter document retention boards, from soliciting or accepting any and Title 18 of the United States Code.
periods for both the Emergency gift or other thing of value from a 117. Compliance with Local, State,
Broadband Benefit Program and the service provider participating in or and Tribal Procurement Requirements
COVID–19 Telehealth Program, the seeking to participate in the Emergency Certification. To streamline and
Commission notes that Emergency Connectivity Fund Program. promote an efficient application process
Connectivity Fund Program support Participating service providers are without adopting competitive bidding
may be available through September 30, likewise prohibited from offering or requirements for the Emergency
2030 and given the size of the fund, providing any gift or other thing of Connectivity Fund Program, applicants
$7.17 billion, a longer document value to eligible entities, including their will be required to certify as part of the
retention period is reasonable for this employees, officers, representatives, FCC Form 471 that they have complied
Program. On balance, the Commission agents, independent contractors, and with all applicable local, state, and
finds that a 10-year period is individuals who are on the governing Tribal procurement requirements for
appropriate for the Emergency boards. any equipment and services purchased,
Connectivity Program, because it allows 115. In light of the extraordinary or that will be purchased, with
the Commission the ability to protect needs of schools and libraries to meet Emergency Connectivity Fund Program
the integrity of the Emergency the remote learning needs of students, support. Schools and libraries that are
Connectivity Fund Program and is school staff, and library patrons during not subject to public procurement
consistent with the document retention the pandemic, and the existing partial requirements must certify that that have
requirements for the E-Rate Program. waiver of the gift rule in the E-Rate complied with their own procurement
Participants are further required to program, the Commission provides an processes and requirements, such as
present this information upon request to exception in the Emergency those included in a written charter.
the Commission or its delegates, Connectivity Fund Program gift rule that Complying with local, state, and Tribal
including USAC, as well as to the allows service providers to offer and procurement rules is an important
Commission’s Office of Inspector provide, and applicants to solicit and safeguard to ensure that costs for
General. accept, broadband connections, devices, eligible equipment and services are
networking equipment, or other things reasonable and cost-effective. If
3. Gift Rule of value that are directly related to applicants are unable or unwilling to
113. In balancing the longstanding addressing the pandemic-related needs certify that they have complied with
goal of fair and open procurement of of students, school staff, and library local, state, or Tribal procurement
eligible equipment and services, with patrons through June 30, 2022. The requirements, they will not receive
the efforts made to date by schools and Commission provides this limited support from the Emergency
libraries and service providers to meet exception for the Emergency Connectivity Fund Program. The
remote learning needs during the Connectivity Fund Program through the Commission recognizes this may cause
pandemic, the Commission agrees with end of June 2022 with the hope that by hardship for certain schools and
commenters that gift restrictions should the end of this coming school year, the libraries, but given the importance of
apply to the Emergency Connectivity pandemic-related needs of schools and protecting the Emergency Connectivity
Fund Program. As AT&T explains, not libraries for broadband connections, Fund Program, the Commission must
applying the gift rule ‘‘could devices and networking equipment will ensure applicants are compliant with
compromise fair and open have, for the most part, been met. local, state, or Tribal procurement
procurement.’’ The Commission Should that not be the case, affected requirements to receive commitments
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00020 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations 29155
and reimbursements through the the donor specified that the gift was to library for payment. There was
Program. be used for the type of equipment or widespread agreement that such actions
118. Duplicate Funding Certification. services at issue, the applicant cannot to address non-usage would be overly
To avoid duplicative funding, protect seek to use the Emergency Connectivity burdensome on both the service
against waste, fraud, and abuse, and to Fund Program as a second source of providers and the applicants.
stretch the limited support available funding for the same equipment or 123. Based on the record, the
through the Emergency Connectivity service. But, if the school or library Commission finds that the better course
Fund Program, the Commission will not simply used general funds it had will be to have applicants certify on
provide support from the Fund for available to it as the result of gifts or requests for reimbursement (i.e., the
eligible equipment and services that donations, it can seek reimbursement of invoicing form) that the equipment and
have already been reimbursed through the cost of the equipment or services services are being primarily used for
other Federal pandemic relief programs from the Emergency Connectivity Fund educational purposes by students,
(e.g., CARES Act, Emergency Broadband Program. school staff, or library patrons and both
Benefit Program, or other provisions of 121. To implement this prohibition on applicants and service providers are not
the American Rescue Plan); state requesting or receiving duplicative willfully or knowingly requesting
programs specifically targeted to funding, the Commission will require reimbursement for equipment or
providing funding for eligible applicants to certify, on the application services that are not being used.
equipment and services; other external for funding and on the invoicing form Participants should take reasonable
sources of funding or gifts specifically that they are not seeking Emergency actions to monitor and track the usage
targeted to providing funding for Connectivity Fund support or of equipment and services that are
eligible equipment and services. For reimbursement for eligible equipment or purchased and reimbursed through the
example, if a student’s household is services that have been purchased and Emergency Connectivity Fund, for
receiving support from the Emergency reimbursed with other Federal example, requiring their service
Broadband Benefit Program for pandemic-relief funding (e.g., CARES providers to provide monthly reports or
broadband internet access connectivity, Act, Emergency Broadband Benefit other information on data use. The
the student would not be eligible for Program, Emergency Connectivity Fund Commission adopts these measures to
broadband connectivity under the Program); targeted state funding; other ensure that the equipment and services
Emergency Connectivity Fund Program. external sources of targeted funding or purchased through the Emergency
Commenters are supportive of adopting targeted gifts; or eligible for discounts Connectivity Fund Program are being
this limitation to stretch the limited through the schools and libraries used for educational purposes and to
funds. universal service support mechanism or prevent wasteful spending for unused
119. However, the Commission also other universal service support services, and determine the certification
agrees with commenters that argue mechanisms. The Commission takes this requirement strikes a fair balance
schools and libraries should be able to action to ensure that the limited between the burdens on applicants and
request reimbursement for a portion of Emergency Connectivity Fund Program service providers to monitor non-usage
the costs of eligible equipment and support will be used for its intended and the need to protect the Emergency
services if they received funding from purposes and if the eligible equipment Connectivity Fund Program from
another source for only a portion of the and services were reimbursed through wasteful non-usage.
costs of that equipment or services. For other Federal funds or other sources 124. Additional Certification
example, the California Public Utilities targeted for those purposes, the Requirements. The Commission also
Commission (CPUC) explains that it applicants should not be seeking requires participants when submitting
established the California Teleconnect funding through the Emergency requests for reimbursement (i.e.,
Fund Distance Learning Discount in Connectivity Fund Program. invoicing forms) to provide several
March 2020 to provide a 50% discount 122. Non-Usage Certification. In order additional certifications. Participants
on monthly recurring charges for mobile to ensure that the Emergency will also certify that they are seeking
data services (hotspots) to qualifying K– Connectivity Fund Program makes the funding only for eligible equipment and
12 schools, libraries, and other best use of limited funding, the services. In addition, consistent with the
community-based organizations. The notification sought comment on asset and service inventories and
Commission agrees that the schools and whether service providers providing records retention requirements
libraries that received 50% discounts monthly services reimbursed through discussed above, participants will be
through this Program should still be the Emergency Connectivity Fund required to certify that they maintain an
able to seek reimbursement through the should be required to report and asset inventory, an inventory of services
Emergency Connectivity Fund Program validate usage of the supported services. provided, and data regarding fixed
for the portion of the costs that were not The notification also sought comment broadband services. Participants will
covered by the CPUC’s program. The on whether, if there is non-usage during also be required to certify that they will
Commission therefore makes clear that a service month, service providers retain all program records for 10 years
schools and libraries may request and should be required to notify the school following the last date of service, as well
receive reimbursement for the portion of or library regarding the non-usage, and as to their agreement to participate in
the costs of eligible equipment and to remove the cost for any non-used audits and other post-commitment
services that were not covered through service from the invoice provided to the reviews as may be required.
other sources of funding. school or library for that service month.
120. The Commission agrees, to an The notification further sought 5. Audits
extent, with commenters that argue that comment on whether service providers 125. As the Commission has for all
if applicants were able to pay for should also be required to certify that the Universal Service Fund Programs,
eligible equipment and services through they have notified the school or library the Commission considers audits in the
a financial gift or donation, that they regarding any non-usage during a Emergency Connectivity Fund Program
should be allowed to also seek service month and have removed to be an important tool in ensuring
reimbursement through the Emergency charges from such non-usage from the compliance, and identifying instances of
Connectivity Fund in some situations. If invoices submitted to the school or waste, fraud, and abuse. Every dollar
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00021 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
29156 Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations
lost to waste, fraud, and abuse is supported equipment and/or services. that devices and other equipment
funding that does not go to provide USAC and Commission staff will abide loaned to students, school staff, and
devices or connectivity to students, by all applicable Federal and state library patrons and installed off-campus
school staff, or library patrons. Not privacy laws. The Commission also will likely have a shorter average life
surprisingly, commenters are largely directs USAC and Commission staff to cycle than equipment installed and
supportive of establishing audit take into account the importance of maintained on school or library
procedures for the Emergency protecting the privacy of students, premises.
Connectivity Fund Program. To that school staff and library patrons, to 129. The Commission considers but
end, the Commission delegates design requests for information from reject suggestions that the Commission
authority to the Office of the Managing schools and libraries that minimize the ‘‘should not prohibit the sale, resale, or
Director to develop and implement an need to produce information that might transfer of the purchased equipment for
audit process for participants that reveal personally identifiable anything of value despite the current E-
complies with the requirements and information, and to work with auditors Rate Program rules so long as any such
procedures of the Emergency to accept anonymized or deidentified proceed or value be employed for
Connectivity Fund Program. The Office information in response to requests for educational or library purposes.’’
of the Managing Director may obtain the information wherever possible. If Congress has authorized the use of
assistance of third parties, including but anonymized or deidentified information billions of dollars for purchase of
not limited to USAC, in carrying out regarding the students, school staff, and specific types of equipment, and the
this effort. library patrons is not sufficient for Commission thinks permitting schools
126. In developing audit auditors’ or investigative purposes, the and libraries to trade in that equipment
requirements, the Office of the auditors or investigators may request to fund other programs or services
Managing Director should be mindful of that the school or library obtain consent would be inconsistent with Congress’
the emergency nature of the pandemic of the parents or guardians, for students, intent.
and the intended use for eligible and the consent of the school staff 130. The Commission hopes and
equipment and services purchased with member or library patron to have access expects that the useful life of much of
Emergency Connectivity Fund Program to this personally identifiable the eligible equipment purchased
support. Specifically, Emergency information or explore other legal through the Emergency Connectivity
Connectivity Fund participants shall be options for obtaining personally Fund Program will extend beyond the
subject to audits and other identifiable information. In the event COVID–19 emergency period, and that
investigations to evaluate compliance consent is not available, the schools and libraries can continue to
with the statutory and regulatory Commission recognizes that the auditors use the equipment as the pandemic
requirements for the Emergency may need to use other procedures or recedes. At the same time, the
Connectivity Fund, including what take different actions to determine if Commission recognizes that needs may
equipment and services may be there is any evidence of waste, fraud or change over the next few years. To that
purchased using support from the abuse in the Emergency Connectivity end, commenters urge the Commission
Emergency Connectivity Fund, and how Fund Program. to provide schools and libraries the
the equipment and services may be flexibility to determine how such
used. Funding recipients are required to 6. Treatment of Eligible Equipment equipment should be treated after the
maintain documentation sufficient to During and After the COVID–19 pandemic ends. The Commission agrees
demonstrate their compliance with Emergency Period with commenters that argue that schools
program rules for ten years after the last 128. In order to protect against waste, and libraries are in the best position to
date of delivery of services or connected fraud, and abuse in the Emergency determine the best use of their
devices supported through the Connectivity Fund Program, and equipment. The Commission therefore
Emergency Connectivity Fund Program. consistent with the current E-Rate rules, allows participating schools and
Upon request, Emergency Connectivity the Commission prohibits schools and libraries to use the equipment after the
Fund Program participants must submit libraries from selling, reselling, or emergency period for such purposes as
documents sufficient to demonstrate transferring equipment funded through the school or library considers
compliance with Program rules. the Emergency Connectivity Fund appropriate, provided that the
Additionally, schools and libraries Program in consideration of money for equipment be used for educational
participating in the Emergency three (3) years after its purchase. The purposes. The Commission finds this
Connectivity Fund Program, may be Commission concludes that eligible approach will provide schools and
subject to other audit processes equipment purchased with Emergency libraries the flexibility to account for the
including audits by the Office of Connectivity Fund Program support that limited lifespan of eligible equipment,
Inspector General, and certain schools has been in use for at least three years while simultaneously combating
and libraries participating in the will be considered obsolete. Obsolete potential waste, fraud, and abuse.
Emergency Connectivity Fund Program equipment may be resold or transferred
in consideration of money or any other M. Cost-Effectiveness Analysis
that meet the thresholds for being
audited under the Single Audit Act are thing of value, disposed of, donated, or 131. The American Rescue Plan
subject to a single audit that contains traded. This approach is consistent with requires the Commission to take action
the FCC compliance supplement for the section 254(h)(3) of the by May 10, 2021 to promulgate rules for
Emergency Connectivity Fund Program. Communications Act, which applies to the provision of support from the
127. The Commission is also mindful the E-Rate Program, and the existing E- Emergency Connectivity Fund to
of the privacy concerns raised regarding Rate Program rules, which prohibit sale, schools and libraries for specified
providing personally identifiable resale or transfer of E-Rate-supported equipment and services. The
information to USAC or Commission equipment for five years. The Commission has no discretion to
staff about the individual (e.g., student, Commission adopts this shorter three- diverge from statutory direction and
school staff member, or library patron) year time frame for the Emergency thus a conventional cost benefit
that is receiving and using the Connectivity Fund, because the analysis, which would seek to
Emergency Connectivity Fund- Commission agrees with commenters determine whether the costs of the
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00022 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations 29157
required actions exceed their benefits, is Service Fund Programs to the efficient and effective management of
not directly called for. Instead, the Emergency Connectivity Fund Program the Emergency Connectivity Fund
Commission considers whether the participants. The Commission will Program. Finally, the Commission
actions the Commission takes in this withhold Emergency Connectivity Fund provides that the Office of the Managing
document are the most cost-effective Program support from participants Director is required to consult with the
means to implement this legislation, found to be in violation of the Program Bureau on any policy matters affecting
recognizing that these actions are rules, if appropriate, and will also seek the Emergency Connectivity Fund
designed to mitigate a crisis and require to recoup improperly disbursed funds, Program, consistent with § 0.91(a) of the
swift action. in addition to appropriate enforcement Commission’s rules. The Office of the
132. In that regard, because eligible penalties. The Commission thinks T- Managing Director, in coordination with
schools and libraries are already very Mobile’s concern that an ‘‘unduly strict the Bureau, may issue additional
familiar with the E-Rate Program, by approach to enforcement’’ could directions to USAC and Emergency
leveraging, to the extent feasible, discourage participation in the Program Connectivity Fund Program participants
existing E-Rate rules and processes to and undermine the goals of the Program in furtherance of the decisions reached
provide support from the Emergency is misplaced. The rules the Commission here.
Connectivity Fund Program, the adopts in this document are 136. The Commission directs the
Commission is adopting the most cost- straightforward and consistent with the Bureau, as well as the Commission’s
effective means currently at its disposal goals of the statute, and the Commission Consumer and Governmental Affairs
for timely implementation of the does not think a safe harbor to protect Bureau (CGB), to conduct outreach to
legislative direction. Those rules have against good faith errors is warranted. educate eligible schools and libraries
been developed through a series of Instead, the Commission finds that these about the Emergency Connectivity Fund
careful, and iterative rulemaking enforcement mechanisms sufficiently Program, and to coordinate, as
proceedings, and are well understood. balance the need for widespread necessary, with Congressional offices,
The alternative of devising new participation in the Emergency other Federal agencies, and state, local
approaches would lengthen the process Connectivity Fund Program with the and Tribal governments. The
of implementation and, given that they importance of maintaining the Commission also directs USAC to
would need to be developed quickly Program’s integrity and protecting the develop and implement a
and without the degree of scrutiny Program from waste, fraud, and abuse. communications strategy, under the
usually applied, they would be prone to oversight of the Bureau, in coordination
unintended consequences. Further, a O. Delegations to the Bureau and the with CGB, to provide training and
new process would require the Office of Managing Director information necessary for schools and
benefiting schools and libraries to deal 134. The Commission delegates libraries to successfully participate in
with the unfamiliar, increasing the time authority to the Bureau, in consultation the Emergency Connectivity Fund
and effort they would necessarily with the Office of the Managing Program and provide support to
expend exactly when both those things Director, to implement the decisions students, school staff, and library
come at a premium, and increasing the reached here. Those implementing patrons who lack adequate access to
likelihood of error. The Commission decisions may include providing connected devices and broadband
also finds that limiting funding to additional detail and specificity to the connections necessary for remote
schools which certify that they are using requirements of the Program to conform learning. At the suggestion of several
support from the Emergency with the decisions in this Report and stakeholder groups, the Commission
Connectivity Fund Program to satisfy Order, thus ensuring the efficient also directs USAC to engage with
otherwise unmet needs for connectivity functioning of this Program. external users for the testing of any new
or for devices of students or staff make 135. In addition, the Commission systems for the Emergency Connectivity
its actions more cost-effective than other delegates financial oversight of this Fund Program. Outreach, education,
alternatives. program to the Commission’s Managing and engagement with eligible schools
Director and direct the Office of the and libraries will be an important tool
N. Enforcement Managing Director to work in in ensuring the Emergency Connectivity
133. The notification sought comment coordination with the Bureau to ensure Fund Program meets its goals of
on imposing administrative forfeitures that all financial aspects of the program providing connected devices and
and other penalties on Emergency have adequate internal controls. These broadband connections to students,
Connectivity Fund Program participants duties fall within the Office of the school staff, and library patrons that
found to be in violation of the Program Managing Director’s current delegated otherwise would lack sufficient access
rules and requirements. The record authority to ensure that the Commission and be unable to engage in remote
supports the application of the operates in accordance with Federal learning and virtual library services.
Commission’s existing enforcement financial statutes and guidance. Such 137. The Commission recognizes that,
powers, including imposing financial oversight must be consistent once implementation of the Emergency
administrative forfeitures and other with the rules adopted in this Report Connectivity Fund Program begins, the
penalties on participating providers that and Order. The Office of the Managing Bureau or USAC may encounter
violate the Program rules and Director performs this role with respect unforeseen issues or problems with the
requirements, to protect the integrity of to USAC’s administration of the administration of the Program that will
the Emergency Connectivity Fund Commission’s Universal Service need to be resolved. To promote
Program, thus the Commission Programs, the COVID–19 Telehealth maximum effectiveness and smooth
concludes it is appropriate to use the Program, and the Emergency Broadband administration of the Emergency
Commission’s existing, statutorily Benefit Program, and the Commission Connectivity Fund Program, the
permitted enforcement powers for the anticipates that the Office of the Commission delegates this authority to
Program. The Commission also finds it Managing Director will leverage existing Bureau staff to address and resolve such
appropriate to apply the Commission’s policies and procedures, to the extent issues related to the administration of
suspension and debarment rules practicable and consistent with the the Emergency Connectivity Fund
currently applicable to the Universal American Rescue Plan, to ensure the Program provided that doing so is
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00023 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
29158 Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations
consistent with the decisions the herein are impracticable, unnecessary, 2, 135 Stat. 4, this Report and Order is
Commission reaches here in this or contrary to the public interest, and adopted and shall become effective May
document. therefore this Report and Order will 28, 2021.
become effective upon publication in 144. It is further ordered that,
III. Procedural Matters
the Federal Register pursuant to 5 pursuant to the authority contained in
138. Administrative Procedure Act U.S.C. 808(2). The Commission will section 808(2) of the Congressional
Exception. The Commission finds good send a copy of this Report and Order to Review Act, 5 U.S.C. 808(2), and 5
cause exists for making the rules the Congress and the Government U.S.C. 553(d), this Report and Order
Commission adopts in this document Accountability Office pursuant to 5 shall become effective May 28, 2021.
effective May 28, 2021. The U.S.C. 801(a)(1)(A). 145. It is further ordered, that
Administrative Procedure Act (APA) 141. Paperwork Reduction Act. This pursuant to the authority contained in
provides that with a showing of ‘‘good document contains new or revised section 7402, Title VII of the American
cause,’’ an agency is permitted to make information collection requirements Rescue Plan Act, 2021, Public Law 117–
rules effective before 30 days after subject to the Paperwork Reduction Act 2, 135 Stat. 4, part 54 of the
publication in the Federal Register. ‘‘In of 1995 (PRA), 44 U.S.C. 3501–3521. It Commission’s rules, 47 CFR part 54, is
determining whether good cause exists, was submitted to the Office of amended as set forth below, and such
an agency should ‘balance the necessity Management and Budget (OMB) for rule amendments shall be effective May
for immediate implementation against review and emergency processing 28, 2021.
principles of fundamental fairness pursuant to section 3507(j) of the PRA, 146. It is further ordered that the
which require that all affected persons 44 U.S.C. 3507(j). On May 20, 2021, Commission shall send a copy of this
be afforded a reasonable amount of time OMB has approved, for a period of six Report and Order to the Congress and
to prepare for the effective date of its months, the information collection the Government Accountability Office
ruling.’ ’’ As a general matter, the requirements contained in 47 CFR pursuant to the Congressional Review
Commission believes that the APA 54.1710(a)–(b), 54.1711(a)–(b), 54.1714, Act, see 5 U.S.C. 801(a)(1)(A).
requirements are an essential and 54.1715. Under 5 CFR part 1320, an
component of its rulemaking process. In agency may not conduct or sponsor a List of Subjects in 47 CFR Part 54
this case, however, because of the collection of information unless it Communications common carriers,
unprecedented nature of this pandemic displays a current, valid OMB Control Internet, Libraries, Reporting and
and the need for immediate action, the Number. No person shall be subject to recordkeeping requirements, Schools,
Commission finds there is good cause to any penalty for failing to comply with Telecommunications.
make the Program rules effective May a collection of information subject to the Federal Communications Commission.
28, 2021. Waiting an additional 30 days Paperwork Reduction Act that does not Marlene H. Dortch,
to make this relief available ‘‘would display a current, valid OMB Control Secretary.
undermine the public interest by Number. The OMB Control Number is
delaying’’ Congress’ intent to quickly 3060–1286. The forgoing notice is Final Rules
provide resources to eligible schools required by the Paperwork Reduction of For the reasons set forth above, part
and libraries to provide the greatly 1995, Public Law 104–13, October 1, 54 of title 47 of the Code of Federal
needed connectivity and connected 1995, and 44 U.S.C. 3507. The March Regulations is amended as follows:
devices to enable students, school staff, 22, 2021 notification sought specific
and library patrons to fully engage in comment on how the Commission may PART 54—UNIVERSAL SERVICE
remote learning during the COVID–19 reduce the information collection
emergency period. burden on small business concerns with ■ 1. The authority for part 54 continues
139. Regulatory Flexibility Act. The fewer than 25 employees pursuant to 44 to read as follows:
Regulatory Flexibility Act of 1980, as U.S.C. 3506(c)(4). Authority: 47 U.S.C. 151, 154(i), 155, 201,
amended (RFA), requires that an agency 142. Late-Filed Comments. The 205, 214, 219, 220, 229, 254, 303(r), 403,
prepare a final regulatory flexibility Commission notes there were several 1004, 1302, and 1601–1609, unless otherwise
analysis ‘‘whenever an agency comments filed in this proceeding after noted.
promulgates a final rule under [5 U.S.C. the April 5, 2021 comment deadline. In ■ 2. Add subpart Q to read as follows:
553], after being required by that section the interest of having as complete and
or any other law to publish a general accurate record as possible, and because Subpart Q—Emergency Connectivity
notice of proposed rulemaking.’’ The the Commission would be free to Fund
Commission finds good cause that the consider the substance of those filings
notice and public procedure on the rule as part of the record in any event, the Sec.
adopted herein are impracticable, 54.1700 Terms and definitions.
Commission will accept the late-filed 54.1701 Eligible recipients.
unnecessary, or contrary to the public comments and waive the requirements 54.1702 Emergency Connectivity Fund
interest, and thus no final regulatory of 47 CFR 1.46(b), and have considered eligible equipment and services.
flexibility analysis is required. them in this Report and Order. This 54.1703 Emergency Connectivity Fund
140. Congressional Review Act. The does not apply to late-filed comments competitive bidding requirements.
Commission has determined, and the that are prohibited under the 54.1704 Emergency Connectivity Fund gift
Administrator of the Office of Commission’s ex parte rules as modified restrictions.
Information and Regulatory Affairs, in this proceeding by the Wireline 54.1705 Emergency Connectivity Fund
Office of Management and Budget Competition Bureau in a Public Notice eligible uses.
(OMB), concurs, that the regulations 54.1706 Emergency Connectivity Fund
dated April 30, 2021. service locations.
implementing the Emergency
IV. Ordering Clauses 54.1707 Emergency Connectivity Fund
Connectivity Fund Program are a ‘‘major reasonable support amounts.
rule’’ under the Congressional Review 143. Accordingly, it is ordered that, 54.1708 Emergency Connectivity Fund cap
Act, 5 U.S.C. 804(2). The Commission pursuant to the authority contained in and requests.
finds for good cause that notice and section 7402, Title VII of the American 54.1709 Availability period of the
public procedure on the rules adopted Rescue Plan Act, 2021, Public Law 117– Emergency Connectivity Fund.
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00024 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations 29159
54.1710 Emergency Connectivity Fund day or residential school, including a (m) Wi-Fi hotspot. A ‘‘Wi-Fi hotspot’’
requests for funding. public elementary charter school, that is a device that is capable of receiving
54.1711 Emergency Connectivity Fund provides elementary education, as advanced telecommunications and
requests for reimbursement. determined under state law. information services, and sharing such
54.1712 Duplicate support.
54.1713 Treatment, resale, and transfer of (h) Library. A ‘‘library’’ includes: services with another connected device
equipment. (1) A public library; through the use of Wi-Fi.
54.1714 Audits, inspections, and (2) A public elementary school or
§ 54.1701 Eligible recipients.
investigations. secondary school library;
54.1715 Records retention. (3) A Tribal library; (a) Schools. (1) Only schools meeting
54.1716 Children’s internet Protection Act (4) An academic library; the statutory definition of ‘‘elementary
certifications. (5) A research library, which for the school’’ or ‘‘secondary school’’ as
54.1717 Administrator of the Emergency
purpose of this section means a library defined in § 54.1700, and not excluded
Connectivity Fund. under paragraph (a)(2) or (3) of this
54.1718 Appeal and waiver requests. that:
(i) Makes publicly available library section shall be eligible for support
§ 54.1700 Terms and definitions. services and materials suitable for under this subpart.
scholarly research and not otherwise (2) Schools operating as for-profit
(a) Advanced telecommunications
available to the public; and businesses shall not be eligible for
and information services. ‘‘Advanced
(ii) Is not an integral part of an support under this subpart.
telecommunications and information (3) Schools with endowments
services’’ are services, as such term is institution of higher education; and
(6) A private library, but only if the exceeding $50,000,000 shall not be
used in section 254(h) of the eligible for support under this subpart.
Communications Act, 47 U.S.C. 254(h). state in which such private library is
(b) Libraries. (1) Only libraries eligible
(b) Billed entity. A ‘‘billed entity’’ is located determines that the library
for assistance from a state library
the entity that remits payment to service should be considered a library for the
administrative agency under the Library
providers for equipment and services purposes of this paragraph (h).
Services and Technology Act and not
rendered to eligible schools and (i) Library consortium. A ‘‘library
excluded under paragraph (b)(2) or (3)
libraries. consortium’’ is any local, statewide,
of this section shall be eligible for
(c) Connected devices. ‘‘Connected regional, or interstate cooperative
support under this subpart.
devices’’ are laptop computers or tablet association of libraries that provides for
(2) A library’s eligibility for
computers that are capable of the systematic and effective
Emergency Connectivity Fund support
connecting to advanced coordination of the resources of schools,
shall depend on its funding as an
telecommunications and information public, academic, and special libraries
independent entity. Only libraries
services. Connected devices do not and information centers, for improving
whose budgets are completely separate
include desktop computers or services to the clientele of such
from any schools (including, but not
smartphones. libraries. For the purposes of this
limited to, elementary and secondary
(d) Consortium. A ‘‘consortium’’ is subpart, references to library will also
schools, colleges, and universities) shall
any local, statewide, regional, or refer to library consortium.
be eligible for support as libraries under
interstate cooperative association of (j) National school lunch program.
this subpart.
schools and/or libraries eligible for The ‘‘national school lunch program’’ is
(3) Libraries operating as for-profit
Emergency Connectivity Fund support a program administered by the U.S.
businesses shall not be eligible for
that seeks funding for eligible services Department of Agriculture and state
support under this subpart.
on behalf of some or all of its members. agencies that provides free or reduced-
(c) Consortia. For consortia,
A consortium may also include health price lunches to economically-
reimbursement through the Emergency
care providers eligible under subpart G disadvantaged children. A child whose
Connectivity Fund shall apply only to
of this part, and public sector family income is between 130 percent
the portion of eligible equipment and
(governmental) entities, including, but and 185 percent of applicable family
services purchased by eligible schools
not limited to, state colleges and state size income levels contained in the
and libraries and used by students,
universities, state educational nonfarm poverty guidelines prescribed
school staff, or library patrons as
broadcasters, counties, and by the Office of Management and
provided for by this subpart.
municipalities, although such entities Budget is eligible for a reduced-price
are not eligible for support. lunch. A child whose family income is § 54.1702 Emergency Connectivity Fund
(e) COVID–19 emergency period. The 130 percent or less of applicable family eligible equipment and services.
‘‘COVID–19 emergency period’’ has the size income levels contained in the (a) Eligible equipment. For the
meaning given the term in title VII, nonfarm income poverty guidelines purposes of this subpart, the following
section 7402(d)(5), Public Law 117–2 prescribed by the Office of Management shall be considered equipment eligible
(the American Rescue Plan Act). and Budget is eligible for a free lunch. for Emergency Connectivity Fund
(f) Educational purposes. For (k) Secondary school. A ‘‘secondary support:
purposes of this subpart, activities that school’’ means a secondary school as (1) Wi-Fi hotspots;
are integral, immediate, and proximate defined in 20 U.S.C. 7801, a non-profit (2) Modems;
to the education of students in the case institutional day or residential school, (3) Routers;
of a school, or integral, immediate, and including a public secondary charter (4) Devices that combine a modem
proximate to the provision of library school, that provides secondary and a router; and
services to library patrons in the case of education, as determined under state (5) Connected devices.
a library, qualify as ‘‘educational law except that the term does not (b) Eligible services. (1) For purposes
purposes.’’ include any education beyond grade 12. of this subpart, except as provided in
(g) Elementary school. An (l) Wi-Fi. ‘‘Wi-Fi’’ is a wireless paragraph (b)(2) of this section, services
‘‘elementary school’’ means an networking protocol based on Institute eligible for Emergency Connectivity
elementary school as defined in 20 of Electrical and Electronics Engineers Fund support shall be commercially-
U.S.C. 7801, a non-profit institutional standard 802.11. available fixed or mobile broadband
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00025 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
29160 Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations
internet access services, including those independent contractors of such entities § 54.1705 Emergency Connectivity Fund
available for purchase by schools and involved on behalf of such school, eligible uses.
libraries through bulk purchasing library, or consortium with the Eligible equipment and services
arrangements. Emergency Connectivity Fund Program, purchased with Emergency Connectivity
(2) For eligible entities unable to including individuals who prepare, Fund support must be used primarily
provide students, school staff, or library approve, sign or submit Emergency for educational purposes, as defined in
patrons commercially-available fixed or Connectivity Fund Program § 54.1700.
wireless broadband internet access applications, or other forms related to
services, services eligible for Emergency § 54.1706 Emergency Connectivity Fund
the Emergency Connectivity Fund
service locations.
Connectivity Fund support shall Program, or who prepare bids,
include the reasonable costs of communicate, or work with Emergency (a)(1) Eligible schools and libraries
construction of new networks, including Connectivity Fund Program service can request and receive support for the
self-provisioned networks included in providers, Emergency Connectivity purchase of eligible equipment and
the Emergency Connectivity Fund Fund Program consultants, or with the services for use by:
eligible services list; and/or the Administrator, as well as any staff of (i) In the case of a school, students
reasonable costs of customer premises such entities responsible for monitoring and school staff at locations other than
equipment to receive datacasting compliance with the Emergency the school; and
services. Connectivity Fund Program; and (ii) In the case of a library, patrons of
the library at locations other than the
§ 54.1703 Emergency Connectivity Fund (ii) The term ‘‘service provider’’ library.
competitive bidding requirements. includes all individuals who are on the (2) Service locations may include, but
A school, library, or consortium governing boards of such an entity (such are not limited to, homes, community
seeking to participate in the Emergency as members of the board of directors), centers, churches, school buses,
Connectivity Fund must comply with and all employees, officers, bookmobiles, and any other off-campus
all applicable state, local, or Tribal representatives, agents, or independent locations where students, school staff,
procurement requirements for all contractors of such entities. and library patrons are engaged in
equipment and services supported by (3) The restrictions set forth in this remote learning activities.
the Emergency Connectivity Fund. paragraph (a) shall not be applicable to (b) Eligible schools and libraries
the provision of any gift, gratuity, favor, cannot request and receive support from
§ 54.1704 Emergency Connectivity Fund entertainment, loan, or any other thing the Emergency Connectivity Fund for
gift restrictions. of value, to the extent given to a family the purchase of eligible equipment and
(a) Gift restrictions. (1) Subject to member or a friend working for an services for use solely at the school or
paragraphs (a)(3) and (4) of this section, eligible school, library, or consortium library during the COVID–19 emergency
an eligible school, library, or consortium that includes an eligible school or period. However, some use of eligible
that includes an eligible school or library, provided that such transactions: equipment, as defined in § 54.1700, and
library may not directly or indirectly (i) Are motivated solely by a personal eligible mobile services, purchased for
solicit or accept any gift, gratuity, favor, relationship; off-campus may be used at the school or
entertainment, loan, or any other thing (ii) Are not rooted in any service library is permitted.
of value from a service provider provider business activities or any other (c) Emergency Connectivity Fund
participating in or seeking to participate business relationship with any such support for eligible equipment and
in the Emergency Connectivity Fund eligible school, library, or consortium; services is limited to no more than one
Program. No such service provider shall and fixed broadband internet access
offer or provide any such gift, gratuity, connection per location, and one
favor, entertainment, loan, or other (iii) Are provided using only the
donor’s personal funds that will not be connected device and one Wi-Fi hotspot
thing of value except as otherwise device per student, school staff member,
provided in this section. Modest reimbursed through any employment or
business relationship. or library patron. For purposes of the
refreshments not offered as part of a per-location limitation imposed on fixed
meal, items with little intrinsic value (4) Any service provider may make
broadband internet access services in
intended solely for presentation, and charitable donations to an eligible
this paragraph (c), each unit in a multi-
items worth $20 or less, including school, library, or consortium that
tenant environment is a separate
meals, may be offered or provided, and includes an eligible school or library in
location for purposes of this paragraph
accepted by any individuals or entities the support of its programs as long as
(c).
subject to this subpart, if the value of such contributions are not directly or
these items received by any individual indirectly related to Emergency § 54.1707 Emergency Connectivity Fund
does not exceed $50 from any one Connectivity Fund procurement reasonable support amounts.
service provider per funding year. The activities or decisions and are not given Except as provided elsewhere in this
$50 amount for any service provider by service providers to circumvent subpart, in providing support from the
shall be calculated as the aggregate Emergency Connectivity Fund Program Emergency Connectivity Fund, the
value of all gifts provided during a rules in this subpart. Commission shall reimburse 100% of
funding year by the individuals (b) COVID–19 pandemic exception. the costs associated with the eligible
specified in paragraph (a)(2)(ii) of this Any service provider may offer and equipment and/or services, except that
section. provide, and any applicant may solicit any reimbursement of for the costs
(2) For purposes of this paragraph (a): and accept, broadband connections, associated with any eligible equipment
(i) The terms ‘‘school, library, or devices, networking equipment, or other or service may not exceed a reasonable
consortium’’ include all individuals things of value directly related to support amount as provided in
who are on the governing boards of such addressing remote learning needs of paragraphs (a) and (b) of this section.
entities (such as members of a school students, school staff, and library (a) Support amounts are limited up to
committee), and all employees, officers, patrons due to the COVID–19 pandemic $400 for connected devices and up to
representatives, agents, consultants or through June 30, 2022. $250 for Wi-Fi hotspots.
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00026 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations 29161
(b) The Wireline Competition Bureau lack connected devices and/or appears to be far short of meeting
is delegated authority to provide broadband internet access services current needs, the Commission may
guidance to the Administrator to assess sufficient to engage in remote learning. consider opening a second prospective
the reasonableness of requests for other All schools and libraries filing an window before opening an application
eligible equipment or services, application within that the initial filing window to fund previously purchased
including those identified by the period will have their applications eligible equipment and services. If
Administrator as containing costs that treated as if they were simultaneously demand does not exceed available funds
are inconsistent with other requests. received. The initial filing period shall after the close of the second filing
conclude after 45 days. If demand does window, the Wireline Competition
§ 54.1708 Emergency Connectivity Fund
cap and requests. not exceed available funds for the first Bureau may direct the Administrator to
filing window, the Wireline open additional filing windows until
(a) Cap. (1) The Emergency
Competition Bureau will direct the the funds are exhausted or the
Connectivity Fund shall have a cap of
Administrator to open a second emergency period ends, whichever is
$7,171,000,000.
(2) $1,000,000 to remain available application window for schools and earlier.
until September 30, 2030, for the libraries to seek funding for eligible (c) Rules of distribution. (1) When the
Inspector General of the Commission to equipment and services schools and filing window(s) described in paragraph
conduct oversight of support provided libraries previously purchased to (b) of this section closes, the
through the Emergency Connectivity address the needs of students, school Administrator shall calculate the total
Fund. staff, and library patrons who would demand for support submitted by
(3) Not more than 2% of the cap, or otherwise have lacked access to the applicants during the filing window. If
approximately $143,420,000, shall be equipment or services sufficient to total demand exceeds the total support
used by the Commission and the engage in these activities during the available, the Administrator shall
Administrator for administration of the COVID–19 pandemic. During this allocate funds to these requests for
Emergency Connectivity Fund. second application window, applicants support, beginning with the most
(b) Requests. The Administrator shall will be able to submit requests for economically disadvantaged schools
implement an initial filing window, funding for purchases made from March and libraries, as determined by the
covering funding for purchases made 1, 2020 to June 30, 2021. However, in schools and libraries category one
between July 1, 2021 and June 30, 2022 consideration of the importance of discount matrix in § 54.505(c) adjusted
for eligible equipment and services providing support for unconnected to provide a five percent increase for
provided to students, school staff, and students, in the event that demand for rural schools and libraries, as shown in
library patrons who would otherwise prospective support in the first window the following matrix.
TABLE 1 TO PARAGRAPH (c)(1)
Emergency connectivity fund
prioritization matrix
% of students eligible for National School Lunch Program Discount level
Urban Rural
< 1 ................................................................................................................................................................ 20 30
1–19 ............................................................................................................................................................. 40 55
20–34 ........................................................................................................................................................... 50 65
35–49 ........................................................................................................................................................... 60 75
50–74 ........................................................................................................................................................... 80 85
75–100 ......................................................................................................................................................... 90 95
(2) Schools and libraries eligible for a § 54.1709 Availability period of the eligible services for the eligible school,
95 percent discount shall receive first Emergency Connectivity Fund. library, or consortium and shall include
priority for the funds. The The Emergency Connectivity Fund that person’s certification under penalty
Administrator shall next allocate funds was established by Congress in the of perjury that:
toward the requests submitted by United States Treasury through an (i) ‘‘I am authorized to submit this
schools and libraries eligible for an 90 appropriation of $7.171 billion, to application on behalf of the above-
percent discount, then for a 85 percent remain available until September 30, named applicant and that based on
discount, and shall continue committing 2030.
information known to me or provided to
funds in the same manner to the § 54.1710 Emergency Connectivity Fund me by employees responsible for the
applicants at each descending discount requests for funding. data being submitted, I hereby certify
level until there are no funds remaining. (a) Filing of the FCC Form 471. An that the data set forth in this application
If the remaining funds are not sufficient eligible school, library, or consortium has been examined and is true, accurate
to support all of the funding requests that includes an eligible school or and complete. I acknowledge that any
within a particular discount level, the library seeking to receive Emergency false statement on this application or on
Administrator shall allocate funds at Connectivity Fund support for eligible other documents submitted by this
that discount level using the percentage equipment and services under this applicant can be punished by fine or
of students eligible for the National subpart shall submit a completed FCC forfeiture under the Communications
School Lunch Program. Form 471 to the Administrator. Act (47 U.S.C. 502, 503(b)), or fine or
(1) The FCC Form 471 shall be signed imprisonment under Title 18 of the
by the person authorized to order United States Code (18 U.S.C. 1001), or
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00027 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
29162 Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations
can lead to liability under the False library patrons who have signed and services sufficient to meet the remote
Claims Act (31 U.S.C. 3729–3733).’’ returned a statement that the library learning needs of their students, school
(ii) ‘‘In addition to the foregoing, this patron would otherwise lack access to staff, or library patrons.
applicant is in compliance with the equipment or services sufficient to meet (3) All information submitted as part
rules and orders governing the the patron’s educational needs if not for of an FCC Form 471 application shall be
Emergency Connectivity Fund Program, the use of the equipment or service treated as public and non-confidential
and I acknowledge that failure to be in being provided by the library. by the Administrator.
compliance and remain in compliance (ix) The school, library, or consortia is (b) Service substitution. (1) A request
with those rules and orders may result not seeking Emergency Connectivity by an applicant to substitute equipment
in the denial of funding, cancellation of Fund support or reimbursement for or service for one identified on its FCC
funding commitments, and/or eligible equipment or services that have Form 471 must be in writing.
recoupment of past disbursements. I been purchased and reimbursed in full (2) The Administrator shall approve
acknowledge that failure to comply with with other Federal pandemic-relief such written request where:
the rules and orders governing the funding, targeted state funding, other (i) The equipment or service has the
Emergency Connectivity Fund Program external sources of targeted funding or same functionality; and
could result in civil or criminal targeted gifts, or eligible for discounts (ii) This substitution does not violate
prosecution by law enforcement from the schools and libraries universal any contract provisions or state, local, or
authorities.’’ service support mechanism or other Tribal procurement law.
(iii) ‘‘By signing this application, I universal service support mechanism. (3) In the event that an equipment or
certify that the information contained in (x) The applicant or the relevant service substitution results in a change
this application is true, complete, and student, school staff member, or library in the amount of support, support shall
accurate, and the projected patron has received the equipment and be based on the lower of either the price
expenditures, disbursements and cash services for which funding is sought. for the equipment or service for which
receipts are for the purposes and (xi) The equipment and services the support was originally requested or the
objectives set forth in the terms and school, library, or consortium purchases price of the new, substituted equipment
conditions of the Federal award. I am using Emergency Connectivity Fund or service. Reimbursement for
aware that any false, fictitious, or support will be used primarily for substitutions shall only be provided
fraudulent information, or the omission educational purposes and will not be after the Administrator has approved a
of any material fact, may subject me to sold, resold, or transferred in written request for substitution.
criminal, civil or administrative consideration for money or any other (c) Mixed eligibility equipment and
penalties for fraud, false statements, thing of value, except as allowed by services. If equipment or service
false claims or otherwise. (U.S. Code § 54.1713. includes both ineligible and eligible
Title 18, sections 1001, 286–287 and (xii) The school, library, or components, the applicant must remove
1341 and Title 31, sections 3729–3730 consortium will create and maintain an the cost of the ineligible components of
and 3801–3812).’’ equipment and service inventory as the equipment or service from the
(iv) The school meets the statutory required by § 54.1715. request for funding submitted to the
definition of ‘‘elementary school’’ or (xiii) The school, library, or Administrator.
‘‘secondary school’’ as defined in consortium has complied with all
§ 54.1700, does not operate as for-profit program rules and acknowledge that § 54.1711 Emergency Connectivity Fund
businesses, and does not have failure to do so may result in denial of requests for reimbursement.
endowments exceeding $50 million. discount funding and/or recovery of (a) Submission of request for
(v) The library or library consortia funding. reimbursement (FCC Form 472 or FCC
eligible for assistance from a State (xiv) The applicant recognizes that it Form 474). Emergency Connectivity
library administrative agency under the may be audited pursuant to its Fund Program reimbursement for the
Library Services and Technology Act of application, that it will retain for ten costs associated with eligible equipment
1996, does not operate as for-profit years any and all records related to its and/or services shall be provided
businesses, and their budgets are application, and that, if audited, it shall directly to an eligible school, library,
completely separate from any school produce shall records at the request of consortium that includes an eligible
(including, but not limited to, any representative (including any school or library, or service provider
elementary and secondary schools, auditor) appointed by a state education seeking reimbursement from the
colleges, and universities). department, the Administrator, the Emergency Connectivity Fund Program
(vi) The school, library, or consortia Commission and its Office of Inspector upon submission and approval of a
listed on the FCC Form 471 application General, or any local, state, or Federal completed FCC Form 472 (Billed Entity
has complied with all applicable state, agency with jurisdiction over the entity. Applicant Reimbursement Form) or a
local, or Tribal local laws regarding (xv) No kickbacks, as defined in 41 completed FCC Form 474 (Service
procurement of services for which U.S.C. 8701 and/or 42 U.S.C. 1320a–7b, Provider Invoice) to the Administrator.
support is being sought. were paid or received by the applicant (1) The FCC Form 472 shall be signed
(vii) The school or school consortium to anyone in connection with the by the person authorized to submit
listed on the FCC Form 471 application Emergency Connectivity Fund. requests for reimbursement for the
is only seeking support for eligible (2) Applicants seeking support for eligible school, library, or consortium
equipment and/or services provided to new network construction or end-user and shall include that person’s
students and school staff who would equipment for datacasting services certification under penalty of perjury
otherwise lack connected devices and/ through the Emergency Connectivity that:
or broadband services sufficient to Fund must also certify under penalty of (i) ‘‘I am authorized to submit this
engage in remote learning. perjury that they sought service from request for reimbursement on behalf of
(viii) The library or library consortium existing service providers in the the above-named school, library or
listed on the FCC Form 471 application relevant area and that such service consortium and that based on
is only seeking support for eligible providers were unable or unwilling to information known to me or provided to
equipment and/or services provided to provide broadband internet access me by employees responsible for the
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00028 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations 29163
data being submitted, I hereby certify Connectivity Fund consistent with the communications equipment or service
that the data set forth in this request for requirements set out in § 54.1707. previously purchased, rented, leased, or
reimbursement has been examined and (vii) The school, library, or otherwise obtained, as required by
is true, accurate and complete. I consortium is not seeking Emergency § 54.10.
acknowledge that any false statement on Connectivity Fund reimbursement for (2) The FCC Form 474 shall be signed
this request for reimbursement or on eligible equipment and/or services that by the person authorized to submit
other documents submitted by this have been purchased and reimbursed in requests for reimbursement for the
school, library or consortium can be full with other Federal pandemic relief service provider and shall include that
punished by fine or forfeiture under the funding (e.g., the Coronavirus Aid, person’s certification under penalty of
Communications Act (47 U.S.C. 502, Relief, and Economic Security (CARES) perjury that:
503(b)), or fine or imprisonment under Act, Emergency Broadband Benefit (i) ‘‘I am authorized to submit this
Title 18 of the United States Code (18 Program, or other provisions of the request for reimbursement on behalf of
U.S.C. 1001), or can lead to liability American Rescue Plan), targeted state the above-named service provider and
under the False Claims Act (31 U.S.C. funding, other external sources of that based on information known to me
3729–3733).’’ targeted funding, or targeted gifts or or provided to me by employees
(ii) ‘‘In addition to the foregoing, the eligible for discounts from the schools responsible for the data being
school, library or consortium is in and libraries universal service support submitted, I hereby certify that the data
compliance with the rules and orders mechanism or other universal service set forth in this request for
governing the Emergency Connectivity support mechanisms. reimbursement has been examined and
Fund Program, and I acknowledge that (viii) The equipment and services the is true, accurate and complete. I
failure to be in compliance and remain school, library, or consortium purchased acknowledge that any false statement on
in compliance with those rules and using Emergency Connectivity Fund this request for reimbursement or on
orders may result in the denial of support will be used primarily for other documents submitted by this
funding, cancellation of funding educational purposes as defined in school, library or consortium can be
commitments, and/or recoupment of § 54.1700 and that the authorized punished by fine or forfeiture under the
past disbursements. I acknowledge that person is not willfully or knowingly Communications Act (47 U.S.C. 502,
failure to comply with the rules and requesting reimbursement for 503(b)), or fine or imprisonment under
equipment or services that are not being Title 18 of the United States Code (18
orders governing the Emergency
used. U.S.C. 1001), or can lead to liability
Connectivity Fund Program could result
(ix) The equipment and services the under the False Claims Act (31 U.S.C.
in civil or criminal prosecution by law school, library, or consortium purchased 3729–3733).’’
enforcement authorities.’’ will not be sold, resold, or transferred in (ii) ‘‘In addition to the foregoing, the
(iii) ‘‘By signing this request for consideration for money or any other service provider is in compliance with
reimbursement, I certify that the thing of value, except as allowed by the rules and orders governing the
information contained in this request for § 54.1713. Emergency Connectivity Fund Program,
reimbursement is true, complete, and (x) The school, library, or consortium and I acknowledge that failure to be in
accurate, and the expenditures, recognizes that it may be subject to an compliance and remain in compliance
disbursements and cash receipts are for audit, inspection or investigation with those rules and orders may result
the purposes and objectives set forth in pursuant to its request for in the denial of funding, cancellation of
the terms and conditions of the Federal reimbursement, that it will retain for ten funding commitments, and/or
award. I am aware that any false, years any and all records related to its recoupment of past disbursements. I
fictitious, or fraudulent information, or request for reimbursement, and will acknowledge that failure to comply with
the omission of any material fact, may make such records and equipment the rules and orders governing the
subject me to criminal, civil or purchased with Emergency Connectivity Emergency Connectivity Fund Program
administrative penalties for fraud, false Fund reimbursement available at the could result in civil or criminal
statements, false claims or otherwise. request of any representative (including prosecution by law enforcement
(U.S. Code Title 18, sections 1001, 286– any auditor) appointed by a state authorities.’’
287 and 1341 and Title 31, sections education department, the (iii) ‘‘By signing this request for
3729–3730 and 3801–3812).’’ Administrator, the Commission and its reimbursement, I certify that the
(iv) The funds sought in the request Office of Inspector General, or any local, information contained in this request for
for reimbursement are for eligible state, or Federal agency with reimbursement is true, complete, and
equipment and/or services that were jurisdiction over the entity. accurate, and the expenditures,
purchased or ordered in accordance (xi) No kickbacks, as defined in 41 disbursements and cash receipts are for
with the Emergency Connectivity Fund U.S.C. 8701 and/or 42 U.S.C. 1320a–7b, the purposes and objectives set forth in
Program rules and requirements in this were paid or received by the applicant the terms and conditions of the Federal
subpart and received by either the to anyone in connection with the award. I am aware that any false,
school, library, or consortium, or the Emergency Connectivity Fund. fictitious, or fraudulent information, or
students, school staff, or library patrons (xii) No Federal subsidy made the omission of any material fact, may
as appropriate. available through a program subject me to criminal, civil or
(v) The portion of the costs eligible for administered by the Commission that administrative penalties for fraud, false
reimbursement and not already paid for provides funds to be used for the capital statements, false claims or otherwise.
by another source was either paid for in expenditures necessary for the provision (U.S. Code Title 18, sections 1001, 286–
full by the school, library, or of advanced communications services 287 and 1341 and Title 31, sections
consortium, or will be paid to the has been or will be used to purchase, 3729–3730 and 3801–3812).’’
service provider within 30 days of rent, lease, or otherwise obtain, any (iv) The funds sought in the request
receipt of funds. covered communications equipment or for reimbursement are for eligible
(vi) The amount for which the school, service, or maintain any covered equipment and/or services that were
library, or consortium is seeking communications equipment or service, purchased or ordered in accordance
reimbursement from the Emergency or maintain any covered with the Emergency Connectivity Fund
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00029 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
29164 Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations
Program rules and requirements in this Connectivity Fund prior to paying their (b) Inspections and investigations.
subpart and received by either the service provider(s) must also provide Schools, libraries, consortia, and service
school, library, or consortium, or by verification of payment to the service providers shall permit any
students, school staff, or library patrons, provider(s) within 30 days of receipt of representative (including any auditor)
as appropriate. funds. appointed by a state education
(v) The amount for which the service (c) Reimbursement and invoice department, the Administrator, the
provider is seeking reimbursement from processing. The Administrator shall Commission and its Office of Inspector
the Emergency Connectivity Fund is accept and review requests for General, or any local, state, or Federal
consistent with the requirements set reimbursement and invoices subject to agency with jurisdiction over the entity
forth in § 54.1707. the invoice filing deadlines provided in to enter their premises to conduct
(vi) The service provider is not paragraph (d) of this section. inspections for compliance with the
willfully or knowingly requesting (d) Invoice filing deadline. Invoices statutory and regulatory requirements in
reimbursement for services that are not must be submitted to the Administrator this subpart of the Emergency
being used. within 60 days from the date of the Connectivity Fund.
(vii) The service provider is not funding commitment decision letter; a (c) Production of records for audits,
seeking Emergency Connectivity Fund revised funding commitment decision
inspections, and investigations. Where
reimbursement for eligible equipment letter approving a post-commitment
necessary for compliance with Federal
and/or services for which it has already change or a successful appeal of
or state privacy laws, Emergency
been paid. previously denied or reduced funding;
(viii) The service provider recognizes Connectivity Fund participants may
or service delivery date, whichever is
that it may be subject to an audit, produce records regarding students,
later.
inspection, or investigation pursuant to school staff, and library patrons in an
its request for reimbursement, that it § 54.1712 Duplicate support. anonymized or deidentified format.
will retain for ten years any and all Entities participating in the When requested by the Administrator or
records related to its request for Emergency Connectivity Fund may not the Commission, as part of an audit or
reimbursement, and will make such seek Emergency Connectivity Fund investigation, schools, libraries, and
records and equipment purchased with support or reimbursement for eligible consortia must seek consent to provide
Emergency Connectivity Fund equipment or services that have been personally identification information
reimbursement available at the request purchased with or reimbursed in full from a student who has reached the age
of any representative (including any from other Federal pandemic-relief of majority, the relevant parent/guardian
auditor) appointed by a state education funding, targeted state funding, other of a minor student, or the school staff
department, the Administrator, the external sources of targeted funding or member or library patron prior to
Commission and its Office of Inspector targeted gifts, or eligible for discounts disclosure.
General, or any local, state, or Federal from the schools and libraries universal
§ 54.1715 Records retention.
agency with jurisdiction over the entity. service support mechanism or other
(ix) No kickbacks, as defined in 41 universal service support mechanisms. (a) Equipment and service inventory
U.S.C. 8701 and/or 42 U.S.C. 1320a–7b, requirements. Schools, libraries, and
§ 54.1713 Treatment, resale, and transfer consortia shall keep asset and service
were paid or received by the applicant of equipment.
to anyone in connection with the inventories as follows:
(a) Prohibition on resale. Eligible (1) For each connected device or other
Emergency Connectivity Fund.
equipment and services purchased with
(x) No Federal subsidy made available piece of equipment provided to an
Emergency Connectivity Fund support
through a program administered by the individual student, school staff member,
shall not be sold, resold, or transferred
Commission that provides funds to be or library patron, the asset inventory
in consideration of money or any other
used for the capital expenditures must identify:
thing of value, except as provided in
necessary for the provision of advanced (i) The device or equipment type (i.e.
paragraph (b) of this section.
communications services has been or (b) Disposal of obsolete equipment. laptop, tablet, mobile hotspot, modem,
will be used to purchase, rent, lease, or Eligible equipment purchased using router);
otherwise obtain, any covered Emergency Connectivity Fund support (ii) The device or equipment make/
communications equipment or service, shall be considered obsolete if the model;
or maintain any covered equipment are at least three years old. (iii) The device or equipment serial
communications equipment or service, Obsolete equipment may be resold or number;
or maintain any covered transferred in consideration of money or
communications equipment or service (iv) The full name of the person to
any other thing of value, disposed of, whom the device or other piece of
previously purchased, rented, leased, or donated, or traded.
otherwise obtained, as required by equipment was provided; and
§ 54.10. § 54.1714 Audits, inspections, and (v) The dates the device or other piece
(b) Required documentation. Along investigations. of equipment was loaned out and
with the submission of a completed FCC (a) Audits. Schools, libraries, returned to the school or library, or the
Form 472 or a completed FCC Form 474, consortia, and service providers shall be date the school or library was notified
an eligible school, library, consortium subject to audits and other that the device or other piece of
that includes an eligible school or investigations to evaluate their equipment was missing, lost, or
library, or service provider seeking compliance with the statutory and damaged.
reimbursement from the Emergency regulatory requirements in this subpart (2) For each connected device or other
Connectivity Fund must submit for the Emergency Connectivity Fund, piece of eligible equipment not
invoices detailing the items purchased including those requirements pertaining provided to an individual student,
or ordered to the Administrator at the to what equipment and services are school staff member, or library patron,
time the FCC Form 472 or FCC Form purchased, what equipment and but used to provide service to multiple
474 is submitted. Applicants that seek services are delivered, and how eligible users, the asset inventory must
payment from the Emergency equipment and services are being used. contain:
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00030 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations 29165
(i) The device type or equipment type Office of Inspector General, or any local, or internet service funded through the
(i.e. laptop, tablet, mobile hotspot, state, or Federal agency with Federal universal service support
modem, router); jurisdiction over the entity. When mechanism for schools and libraries or
(ii) The device or equipment make/ requested by the Administrator or the the Emergency Connectivity Fund are
model; Commission, schools, libraries, and not subject to the requirements in 47
(iii) The device or equipment serial consortia must seek consent to provide U.S.C. 254(h) and (l), but must indicate,
number; personally identification information pursuant to the certification
(iv) The name of the school or library from a student who has reached the age requirements in paragraph (c) of this
employee responsible for that device or of majority, the relevant parent/guardian section, that they are not receiving
equipment; and of a minor student, or the school staff support for such services or that the
(v) The dates the device or equipment member or library patron prior to connected devices do not use internet
was in service. disclosure. access or internet service funded
(3) For services provided to through the Federal universal service
individual students, school staff, or § 54.1716 Children’s Internet Protection support mechanism for schools and
library patrons, the service inventory Act certifications. libraries or the Emergency Connectivity
must contain: (a) Definitions—(1) School. For the Fund.
(i) The type of service provided (i.e., purposes of the certification (c) Certifications required under 47
DSL, cable, fiber, fixed wireless, requirements of this section, school U.S.C. 254(h) and (1). (1) An Emergency
satellite, mobile wireless); means school, school board, school Connectivity Fund applicant need not
(ii) The service plan details, including district, local education agency or other complete additional Children’s Internet
upload and download speeds and authority responsible for administration Protection Act (CIPA) compliance
monthly data cap; of a school. certifications if the applicant has
(iii) The full name of the person(s) to (2) Library. For the purposes of the already certified its CIPA compliance
whom the service was provided; certification requirements of this for the relevant funding year (i.e., has
(iv) The service address (for fixed section, library means library, library certified its compliance in an FCC Form
broadband service only); board or authority responsible for 486 or FCC Form 479).
(v) The installation date of the service administration of a library. (2) Emergency Connectivity Fund
(for fixed broadband service only); and (3) Billed entity. Billed entity is applicants that have not already
(vi) The last date of service, as defined in § 54.1700. In the case of a certified their CIPA compliance for an
applicable (for fixed broadband service consortium, the billed entity is the lead E-Rate application for the relevant
only). member of the consortium. funding year (i.e., have not completed a
(4) For services not provided to an (4) Connected devices. Connected FCC Form 486 or FCC Form 479), will
individual student, school staff member, devices are defined in § 54.1700. be required to certify:
or library patron, but used to provide (b) Who is required to make (i) That they are in compliance with
service to multiple eligible users, the certifications? (1) A school or library CIPA requirements under sections
service inventory must contain: that receives support for internet access, 254(h) and (l);
(i) The type of service provided (i.e., internet service, or internal connections (ii) That they are undertaking the
DSL, cable, fiber, fixed wireless, services under the Federal universal actions necessary to comply with CIPA
satellite, mobile wireless); service support mechanism for schools requirements as part of their request for
(ii) The service plan details, including and libraries, or internet access or support through the Emergency
upload and download speeds and internet service through the Emergency Connectivity Fund; or
monthly data cap; Connectivity Fund, must make such (iii) If applicable, that the
(iii) The name of the school or library certifications as described in paragraph requirements of CIPA do not apply,
employee responsible for the service; (c) of this section. The certifications because the applicant is not receiving
(iv) A description of the intended required and described in paragraph (c) support for internet access, internet
service area; of this section must be made in each service, or internal connections under
(v) The service address (for fixed funding year. the Federal universal service support
broadband service only); (2) A school or library that receives mechanism for schools and libraries or
(vi) The installation date of the support for connected devices through internet access or internet service
service (for fixed broadband service the Emergency Connectivity Fund and through the Emergency Connectivity
only); and uses internet access or internet service Fund, or the connected devices do not
(vii) The last date of service, as funded through the Federal universal use internet access or internet service
applicable (for fixed broadband service service support mechanism for schools funded through the Federal universal
only). and libraries or through the Emergency support mechanism for schools and
(b) Records retention. All Emergency Connectivity Fund must make the libraries or the Emergency Connectivity
Connectivity Fund participants shall certifications as described in paragraph Fund.
retain records related to their (c) of this section. The certifications (d) Failure to provide certifications—
participation in the program sufficient required and described in paragraph (c) (1) Schools and libraries. A school or
to demonstrate compliance with all of this section must be made in each library that knowingly fails to submit
program rules in this subpart for at least funding year. certifications as required by this section
ten (10) years from the last date of (3) Schools and libraries that are not shall not be eligible for support through
service or delivery of equipment. receiving support for internet access, the Emergency Connectivity Fund until
(c) Production of records. All internet service, or internal connections such certifications are submitted.
Emergency Connectivity Fund under the Federal universal service (2) Consortia. A billed entity’s
participants shall present such records support mechanism for schools and knowing failure to collect the required
upon request any representative libraries; internet access or internet certifications from its eligible school
(including any auditor) appointed by a service through the Emergency and library members or knowing failure
state education department, the Connectivity Fund; or connected to certify that it collected the required
Administrator, the Commission and its devices that do not use internet access certifications shall render the entire
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00031 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
29166 Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations
consortium ineligible for support § 54.1717 Administrator of the Emergency generated by or resulting from its role in
through the Emergency Connectivity Connectivity Fund. administering the support mechanisms,
Fund. (a) The Universal Service if its participation in administering the
Administrative Company is appointed Emergency Connectivity Fund ends. If
(3) Reestablishing eligibility. At any
the permanent Administrator of the its participation in administering the
time, a school or library deemed
Emergency Connectivity Fund and shall Emergency Connectivity Fund ends, the
ineligible for equipment and services
be responsible for administering the Administrator shall be subject to close-
under the Emergency Connectivity Fund
Emergency Connectivity Fund. out audits at the end of its term.
because of failure to submit (b) The Administrator shall be
certifications required by this section responsible for reviewing applications § 54.1718 Appeal and waiver requests.
may reestablish eligibility for support by for funding, recommending funding (a) Parties permitted to seek review of
providing the required certifications to commitments, issuing funding Administrator decision. (1) Any party
the Administrator and the Commission. commitment decision letters, reviewing aggrieved by an action taken by the
(e) Failure to comply with the invoices and recommending payment of Administrator must first seek review
certifications—(1) Schools and libraries. funds, as well as other administration- from the Administrator.
A school or library that knowingly fails related duties. (2) Any party aggrieved by an action
to comply with the certifications (c) The Administrator may not make taken by the Administrator under
required by this section must reimburse policy, interpret unclear provisions of paragraph (a)(1) of this section may seek
any funds and support received under statutes or rules, or interpret the intent review from the Federal
of Congress. Where statutes or the Communications Commission as set
the Emergency Connectivity Fund for
Commission’s rules in this subpart are forth in paragraph (b) of this section.
the period in which there was (3) Parties seeking waivers of the
noncompliance. unclear, or do not address a particular
situation, the Administrator shall seek Commission’s rules in this subpart shall
(2) Consortia. In the case of guidance from the Commission. seek relief directly from the Commission
consortium applications, the eligibility (d) The Administrator may advocate and need not first file an action for
for support of consortium members who positions before the Commission and its review from the Administrator under
comply with the certification staff only on administrative matters paragraph (a)(1) of this section.
requirements of this section shall not be relating to the Emergency Connectivity (b) Filing deadlines. (1) An affected
affected by the failure of other school or Fund. party requesting review of a decision by
library consortium members to comply (e) The Administrator shall create and the Administrator pursuant to paragraph
with such requirements. maintain a website, as defined in § 54.5, (a)(1) of this section shall file such a
on which applications for services will request within thirty (30) days from the
(3) Reestablishing compliance. At any
be posted on behalf of schools and date the Administrator issues a
time, a school or library deemed decision.
libraries.
ineligible for support through the (f) The Administrator shall provide (2) An affected party requesting
Emergency Connectivity Fund for the Commission full access to the data review by the Commission pursuant to
failure to comply with the certification collected pursuant to the administration paragraph (a)(2) of this section of a
requirements of this section and that has of the Emergency Connectivity Fund. decision by the Administrator under
been directed to reimburse the program (g) The administrator shall provide paragraph (a)(1) of this section shall file
for support received during the period performance measurements pertaining such a request with the Commission
of noncompliance may reestablish to the Emergency Connectivity Fund as within thirty (30) days from the date of
compliance by complying with the requested by the Commission by order the Administrator’s decision. Further,
certification requirements under this or otherwise. any party seeking a waiver of the
section. Upon submittal to the (h) The Commission shall have the Commission’s rules under paragraph
Commission of a certification or other authority to audit all entities reporting (a)(3) of this section shall file a request
appropriate evidence of such remedy, data to the Administrator regarding the for such waiver within thirty (30) days
the school or library shall be eligible for Emergency Connectivity Fund. When from the date of the Administrator’s
support through the Emergency the Commission, the Administrator, or initial decision, or, if an appeal is filed
Connectivity Fund. any independent auditor hired by the under paragraph (a)(1) of this section,
Commission or the Administrator, within thirty days from the date of the
(f) Waivers based on state or local
conducts audits of the participants of Administrator’s decision resolving such
procurement rules and regulations and
the Emergency Connectivity Fund, such an appeal.
competitive bidding requirements.
audits shall be conducted in accordance (3) In all cases of requests for review
Waivers shall be granted to schools and filed under paragraphs (a)(1) through (3)
with generally accepted government
libraries when the authority responsible auditing standards. of this section, the request for review
for making the certifications required by (i) The Commission shall establish shall be deemed filed on the postmark
this section cannot make the required procedures to verify support amounts date. If the postmark date cannot be
certifications because its state or local provided by the Emergency determined, the applicant must file a
procurement rules or regulations or Connectivity Fund and may suspend or sworn affidavit stating the date that the
competitive bidding requirements delay support amounts if a party fails to request for review was mailed.
prevent the making of the certification provide adequate verification of the (4) Parties shall adhere to the time
otherwise required. The waiver shall be support amounts provided upon periods for filing oppositions and
granted upon the provision, by the reasonable request from the replies set forth in § 1.45 of this chapter.
authority responsible for making the Administrator. (c) General filing requirements. (1)
certifications on behalf of schools or (j) The Administrator shall make Except as otherwise provided in this
libraries, that the schools or libraries available to whomever the Commission section, a request for review of an
will be brought into compliance with directs, free of charge, any and all Administrator decision by the Federal
the requirements of this section before intellectual property, including, but not Communications Commission shall be
the close of the relevant funding year. limited to, all records and information filed with the Federal Communications
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00032 Fmt 4701 Sfmt 4700 E:\FR\FM\28MYR2.SGM 28MYR2
Federal Register / Vol. 86, No. 102 / Friday, May 28, 2021 / Rules and Regulations 29167
Commission’s Office of the Secretary in (4) If a request for review filed review of decisions issued by the
accordance with the general pursuant to paragraphs (a)(1) through (3) Administrator.
requirements set forth in part 1 of this of this section alleges prohibitive (2) The Federal Communications
chapter. The request for review shall be conduct on the part of a third party, Commission shall conduct de novo
captioned ‘‘In the Matter of Request for such request for review shall be served review of requests for review of
Review by (name of party seeking on the third party consistent with the
decisions by the Administrator that
review) of Decision of Universal Service requirement for service of documents
Administrator’’ and shall reference the involve novel questions of fact, law, or
set forth in § 1.47 of this chapter. The
applicable docket numbers. third party may file a response to the policy; provided, however, that the
(2) A request for review pursuant to request for review. Any response filed Commission shall not conduct de novo
paragraphs (a)(1) through (3) of this by the third party shall adhere to the review of decisions issued by the
section shall contain: time period for filing replies set forth in Wireline Competition Bureau under
(i) A statement setting forth the § 1.45 of this chapter and the delegated authority.
party’s interest in the matter presented requirement for service of documents (f) Emergency Connectivity Fund
for review; set forth in § 1.47 of this chapter. disbursements during pendency of a
(ii) A full statement of relevant, (d) Review by the Wireline request for review and Administrator
material facts with supporting affidavits
Competition Bureau or the Commission. decision. When a party has sought
and documentation;
(1) Requests for review of Administrator review of an Administrator decision
(iii) The question presented for
review, with reference, where decisions that are submitted to the under paragraphs (a)(1) through (3) of
appropriate, to the relevant Federal Federal Communications Commission this section, the Commission shall not
Communications Commission rule, shall be considered and acted upon by process a request for the reimbursement
Commission order, or statutory the Wireline Competition Bureau; of eligible equipment and/or services
provision; and provided, however, that requests for until a final decision has been issued
(iv) A statement of the relief sought review that raise novel questions of fact, either by the Administrator or by the
and the relevant statutory or regulatory law, or policy shall be considered by the Federal Communications Commission;
provision pursuant to which such relief full Commission. provided, however, that the
is sought. (2) An affected party may seek review Commission may authorize
(3) A copy of a request for review that of a decision issued under delegated disbursement of funds for any amount
is submitted to the Federal authority by the Wireline Competition
of support that is not the subject of an
Communications Commission shall be Bureau pursuant to the rules set forth in
appeal.
served on the Administrator consistent part 1 of this chapter.
[FR Doc. 2021–10804 Filed 5–27–21; 8:45 am]
with the requirement for service of (e) Standard of review. (1) The
documents set forth in § 1.47 of this Wireline Competition Bureau shall BILLING CODE 6712–01–P
chapter. conduct de novo review of request for
VerDate Sep<11>2014 20:28 May 27, 2021 Jkt 253001 PO 00000 Frm 00033 Fmt 4701 Sfmt 9990 E:\FR\FM\28MYR2.SGM 28MYR2
File and source
- File
- FR-2021-05-28_2021-10804.pdf
- Size
- 476,656 bytes
- SHA-256
- d0e8903beee6e8577211d75336959b901e57bb19712ff75bbb6834df30dd5e4a
- Our copy
- FR-2021-05-28_2021-10804.pdf
- Original
- www.govinfo.gov