Goto Section: 54.506 | 54.511 | Table of Contents
FCC 54.507
Revised as of October 2, 2015
Goto Year:2014 |
2016
§ 54.507 Cap.
(a) Amount of the annual cap. The aggregate annual cap on federal universal
service support for schools and libraries shall be $2.25 billion per funding
year, of which $1 billion per funding year will be available for the
category two services, as described in § 54.502(a)(2), unless demand for
category one services is higher than available funding.
(1) Inflation increase. In funding year 2010 and subsequent funding years,
the $2.25 billion funding cap on federal universal service support for
schools and libraries shall be automatically increased annually to take into
account increases in the rate of inflation as calculated in paragraph (a)(2)
of this section.
(2) Increase calculation. To measure increases in the rate of inflation for
the purposes of this paragraph (a), the Commission shall use the Gross
Domestic Product Chain-type Price Index (GDP-CPI). To compute the annual
increase as required by this paragraph (a), the percentage increase in the
GDP-CPI from the previous year will be used. For instance, the annual
increase in the GDP-CPI from 2008 to 2009 would be used for the 2010 funding
year. The increase shall be rounded to the nearest 0.1 percent by rounding
0.05 percent and above to the next higher 0.1 percent and otherwise rounding
to the next lower 0.1 percent. This percentage increase shall be added to
the amount of the annual funding cap from the previous funding year. If the
yearly average GDP-CPI decreases or stays the same, the annual funding cap
shall remain the same as the previous year.
(3) Public notice. When the calculation of the yearly average GDP-CPI is
determined, the Wireline Competition Bureau shall publish a public notice in
the Federal Register within 60 days announcing any increase of the annual
funding cap based on the rate of inflation.
(4) Filing window requests. At the close of the filing window, if requests
for category one services are greater than the available funding, the
Administrator shall shift category two funds to provide support for category
one services. If available funds are sufficient to meet demand for category
one services, the Administrator, at the direction of the Wireline
Competition Bureau, shall direct the remaining additional funds to provide
support for category two requests.
(5) Amount of unused funds. All funds collected that are unused shall be
carried forward into subsequent funding years for use in the schools and
libraries support mechanism in accordance with the public interest and
notwithstanding the annual cap. The Chief, Wireline Competition Bureau, is
delegated authority to determine the proportion of unused funds, if any,
needed to meet category one demand, and to direct the Administrator to use
any remaining funds to provide support for category two requests. The
Administrator shall report to the Commission, on a quarterly basis, funding
that is unused from prior years of the schools and libraries support
mechanism.
(6) Application of unused funds. On an annual basis, in the second quarter
of each calendar year, all funds that are collected and that are unused from
prior years shall be available for use in the next full funding year of the
schools and libraries mechanism in accordance with the public interest and
notwithstanding the annual cap as described in this paragraph (a).
(b) Funding year. A funding year for purposes of the schools and libraries
cap shall be the period July 1 through June 30.
(c) Requests. The Administrator shall implement an initial filing period
that treats all schools and libraries filing an application within that
period as if their applications were simultaneously received. The initial
filing period shall begin and conclude on dates to be determined by the
Administrator with the approval of the Chief of the Wireline Competition
Bureau. The Administrator shall maintain on the Administrator's Web site a
running tally of the funds already committed for the existing funding year.
The Administrator may implement such additional filing periods as it deems
necessary.
(d) Annual filing requirement. Schools and libraries, and consortia of such
eligible entities shall file new funding requests for each funding year no
sooner than the July 1 prior to the start of that funding year. Schools,
libraries, and eligible consortia must use recurring services for which
discounts have been committed by the Administrator within the funding year
for which the discounts were sought. Implementation of non-recurring
services may begin on April 1 prior to the July 1 start of the funding year.
The deadline for implementation of non-recurring services will be September
30 following the close of the funding year. An applicant may request and
receive from the Administrator an extension of the implementation deadline
for non-recurring services if it satisfies one of the following criteria:
(1) The applicant's funding commitment decision letter is issued by the
Administrator on or after March 1 of the funding year for which discounts
are authorized;
(2) The applicant receives a service provider change authorization or
service substitution authorization from the Administrator on or after March
1 of the funding year for which discounts are authorized;
(3) The applicant's service provider is unable to complete implementation
for reasons beyond the service provider's control; or
(4) The applicant's service provider is unwilling to complete installation
because funding disbursements are delayed while the Administrator
investigates their application for program compliance.
(e) Long term contracts. If schools and libraries enter into long term
contracts for eligible services, the Administrator shall only commit funds
to cover the pro rata portion of such a long term contract scheduled to be
delivered during the funding year for which universal service support is
sought.
(f) Rules of distribution. When the filing period described in paragraph (c)
of this section closes, the Administrator shall calculate the total demand
for both category one and category two support submitted by applicants
during the filing period. If total demand for the funding year exceeds the
total support available for category one or both categories, the
Administrator shall take the following steps:
(1) Category one. The Administrator shall first calculate the demand for
category one services for all discount levels. The Administrator shall
allocate the category one funds to these requests for support, beginning
with the most economically disadvantaged schools and libraries, as
determined by the schools and libraries discount matrix in § 54.505(c).
Schools and libraries eligible for a 90 percent discount shall receive first
priority for the category one funds. The Administrator shall next allocate
funds toward the requests submitted by schools and libraries eligible for an
80 percent discount, then for a 70 percent discount, and shall continue
committing funds for category one services in the same manner to the
applicants at each descending discount level until there are no funds
remaining.
(2) Category two. The Administrator shall next calculate the demand for
category two services for all discount categories as determined by the
schools and libraries discount matrix in § 54.505(c). If that demand exceeds
the category two budget for that funding year, the Administrator shall
allocate the category two funds beginning with the most economically
disadvantaged schools and libraries, as determined by the schools and
libraries discount matrix in § 54.505(c). The Administrator shall allocate
funds toward the category two requests submitted by schools and libraries
eligible for an 85 percent discount first, then for a 80 percent discount,
and shall continue committing funds in the same manner to the applicants at
each descending discount level until there are no category two funds
remaining.
(3) To the extent that there are single discount percentage levels
associated with “shared services” under § 54.505(b)(4), the Administrator
shall allocate funds to the applicants at each descending discount level
(e.g., 90 percent, 89 percent, then 88 percent) until there are no funds
remaining.
(4) For both paragraphs (f)(1) and (2) of this section, if the remaining
funds are not sufficient to support all of the funding requests within a
particular discount level, the Administrator shall allocate funds at that
discount level using the percentage of students eligible for the National
School Lunch Program. Thus, if there is not enough support to fund all
requests at the 40 percent discount level, the Administrator shall allocate
funds beginning with those applicants with the highest percentage of NSLP
eligibility for that discount level by funding those applicants with 19
percent NSLP eligibility, then 18 percent NSLP eligibility, and shall
continue committing funds in the same manner to applicants at each
descending percentage of NSLP until there are no funds remaining.
(f) Rules of distribution. When the filing period described in paragraph (c)
of this section closes, the Administrator shall calculate the total demand
for both category one and category two support submitted by applicants
during the filing period. If total demand for the funding year exceeds the
total support available for category one or both categories, the
Administrator shall take the following steps:
(1) Category one. The Administrator shall first calculate the demand for
category one services for all discount levels. The Administrator shall
allocate the category one funds to these requests for support, beginning
with the most economically disadvantaged schools and libraries, as
determined by the schools and libraries discount matrix in § 54.505(c).
Schools and libraries eligible for a 90 percent discount shall receive first
priority for the category one funds. The Administrator shall next allocate
funds toward the requests submitted by schools and libraries eligible for an
80 percent discount, then for a 70 percent discount, and shall continue
committing funds for category one services in the same manner to the
applicants at each descending discount level until there are no funds
remaining.
(2) Category two. The Administrator shall next calculate the demand for
category two services for all discount categories as determined by the
schools and libraries discount matrix in § 54.505(c). If that demand exceeds
the category two budget for that funding year, the Administrator shall
allocate the category two funds beginning with the most economically
disadvantaged schools and libraries, as determined by the schools and
libraries discount matrix in § 54.505(c). The Administrator shall allocate
funds toward the category two requests submitted by schools and libraries
eligible for an 85 percent discount first, then for a 80 percent discount,
and shall continue committing funds in the same manner to the applicants at
each descending discount level until there are no category two funds
remaining.
(3) To the extent that there are single discount percentage levels
associated with “shared services” under § 54.505(b)(4), the Administrator
shall allocate funds to the applicants at each descending discount level
(e.g., 90 percent, 89 percent, then 88 percent) until there are no funds
remaining.
(4) For both paragraphs (f)(1) and (2) of this section, if the remaining
funds are not sufficient to support all of the funding requests within a
particular discount level, the Administrator shall allocate funds at that
discount level using the percentage of students eligible for the National
School Lunch Program. Thus, if there is not enough support to fund all
requests at the 40 percent discount level, the Administrator shall allocate
funds beginning with those applicants with the highest percentage of NSLP
eligibility for that discount level by funding those applicants with 19
percent NSLP eligibility, then 18 percent NSLP eligibility, and shall
continue committing funds in the same manner to applicants at each
descending percentage of NSLP until there are no funds remaining.
[ 79 FR 49201 , Aug. 19, 2014, as amended at 80 FR 5990 , Feb. 4, 2015]
Effective Date Note: At 79 FR 49201 , Aug. 19, 2014, § 54.507 was revised.
However, paragraph (d) of this section contains information collection and
recordkeeping requirements and will not become effective until approval has
been given by the Office of Management and Budget.
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Goto Section: 54.506 | 54.511
Goto Year: 2014 |
2016
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