Sec.  36.605   Calculation of safety net additive.

   (a) “Safety net additive support.” A rural incumbent local exchange carrier
   shall receive safety net additive support if it satisfies the conditions set
   forth in paragraph (c) of this section. Safety net additive support is
   support available to rural telephone companies, as conditioned in paragraph
   (c) of this section, in addition to support calculated pursuant to  Sec. 36.631.
   Safety net additive support shall not be available to rural telephone
   companies for exchange(s) that are subject to  Sec. 54.305 of this chapter.

   (b) Calculation of safety net additive support: Safety net additive support
   is equal to the amount of capped support calculated pursuant to this subpart
   F in the qualifying year minus the amount of support in the year prior to
   qualifying for support subtracted from the difference between the uncapped
   expense adjustment for the study area in the qualifying year minus the
   uncapped expense adjustment in the year prior to qualifying for support as
   shown in the following equation: Safety net additive support = (Uncapped
   support in the qualifying year−Uncapped support in the base year)−(Capped
   support in the qualifying year−Amount of support received in the base year).

   (c) Operation of safety net additive support: (1) In any year in which the
   total carrier loop cost expense adjustment is limited by the provisions of
    Sec. 36.603 a rural incumbent local exchange carrier shall receive safety net
   additive support as calculated in paragraph (b) of this section, if in any
   study area, the rural incumbent local exchange carrier realizes growth in
   end of period Telecommunications Plant in Service (TPIS), as prescribed in
    Sec. 32.2001 of this chapter, on a per loop basis, of at least 14 percent more
   than the study area's TPIS per loop investment at the end of the prior
   period.

   (2) If paragraph (c)(1) of this section is met, the rural incumbent local
   exchange carrier must notify the Administrator; failure to properly notify
   the Administrator of eligibility shall result in disqualification of that
   study area for safety net additive, requiring the rural incumbent local
   exchange carrier to again meet the eligibility requirements in paragraph
   (c)(1) of this section for that study area in a subsequent period.

   (3) Upon completion of verification by the Administrator that the study area
   meets the stated criterion in paragraphs (a), (b), (c) of this section, the
   Administrator shall:

   (i) Pay to any qualifying rural telephone company, safety net additive
   support for the qualifying study area in accordance with the calculation set
   forth in paragraph (b) of this section; and

   (ii) Continue to pay safety net additive support in any of the four
   succeeding years in which the total carrier loop expense adjustment is
   limited by the provisions of  Sec. 36.603. Safety net additive support in the
   succeeding four years shall be the lesser of:

   (A) The sum of capped support and the safety net additive support received
   in the qualifying year; or

   (B) The rural telephone company's uncapped support.

   [ 66 FR 30086 , June 5, 2001, as amended at  66 FR 65856 , Dec. 21, 2001]

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