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1 1 (July 3, 2019)

handle is hein.crs/govbaeq0001 and id is 1 raw text is: The ReConnect Broadband Pilot Program Congress established the Rural e-Connectivity Pilot Program (also known as ReConnect) in the FY2018 appropriations act. ReConnect is a rural broadband pilot program that provides loan and grant funding to eligible entities to deploy broadband internet service in eligible rural areas. The U.S. Department of Agriculture's (USDA) Rural Utilities Service (RUS) administers ReConnect. On April 23, 2019, RUS began accepting applications for ReConnect funding. Program Authority In the Consolidated Appropriations Act, 2018 (P.L. 115- 141, Division B, §779), Congress provided $600 million for the Secretary of Agriculture to conduct a new broadband loan and grant pilot program. In the Consolidated Appropriations Act, 2019 (P.L. 116-6, Division B, §762), Congress provided an additional $550 million for ReConnect. FY2018 and FY2019 appropriated amounts are to remain available until expended. ReConnect does not exist in statute. Congress has authorized the program only in annual agriculture appropriations bills. Program Eligibility and Requirements In December 2018, RUS published a Funding Opportunity Announcement (FOA) for the first round of ReConnect funding. Three funding categories are available under this FOA: 100% loans, 50% loan/50% grant combinations, and 100% grants. According to the FOA, up to $200 million is available for each of the three funding categories. The maximum amounts that applicants can request are $50 million for a loan, $50 million for a loan/grant combination (loan and grant amounts must be equal), or $25 million for a grant. ReConnect funding may be used for * construction or improvement of facilities required to provide broadband service; * terrestrial-based facilities for satellite broadband service; * reasonable pre-application expenses in an amount not to exceed 5% of the award; and * acquisition and upgrade of an existing system that does not currently provide sufficient access to broadband. (Acquisitions are eligible only for 100% loans, and acquisition costs can comprise only 40% of the award amount.) Entities eligible to apply for funding include state or local governments, territories or possessions of the United States, Indian tribes, nonprofit entities, for-profit corporations, limited liability companies, and cooperative or mutual organizations. Eligible Service Areas Applicants for ReConnect funding must define a Proposed Funded Service Area (PFSA)-an area where the applicant proposes to provide broadband service. Applicants must propose to build a network capable of providing broadband service to all premises in the PFSA at minimum speeds of 25 megabits per second (Mbps) download and 3 Mbps upload (known as 25/3 Mbps). The PFSA must be a rural area-defined as a city, town, or incorporated area with a population of 20,000 or fewer and not adjacent to a city or town with a population of greater than 50,000. The PFSA does not need to be contiguous and may include gaps to remove areas that already have sufficient broadband access. With some exceptions, an entity may not use ReConnect funding to overbuild or duplicate broadband expansion efforts made under previous RUS broadband loans and grants. To be eligible for a loan or a loan/grant combination, at least 90% of households in the PFSA must lack access to broadband service of at least 10/1 Mbps. To be eligible for a grant, 100% of households in the PFSA must lack access to broadband service of at least 10/1 Mbps. RUS expects to use multiple approaches to determine what areas have existing broadband service at speeds of at least 10/1 Mbps. RUS has stated that their staff will use data from the Federal Communications Commission's Fixed Broadband Deployment Map and that staff will conduct site visits to PFSAs to validate broadband speeds. In addition, RUS plans to publish a public notice for each ReConnect funding application received. Existing service providers may respond to the public notice and provide RUS with information on the number of customers in the PFSA who currently purchase broadband service at speeds of at least 10/1 Mbps. Evaluation Criteria According to the FOA, RUS will evaluate applications based on criteria that include the rurality of the PFSA, the proposed broadband speeds the applicant will provide, and the inclusion of tribal lands in the PFSA. RUS will also favor applications if the state where the PFSA is located has a broadband plan that has been updated in the past five years, does not restrict utilities from delivering broadband service, and commits to expediting right-of-way and environmental permitting. Other criteria include the number of farms, businesses, health care centers, educational facilities, and critical community facilities to which the applicant proposes to provide broadband service. https:I/crsreports.conc -- -q S July 3, 2019

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