Emergency Request for Approval Letter

August 3, 2020
TO: Julie Hewitt
Senior Desk Officer
Office of Management and Budget
THROUGH: Ruth Brown
USDA Information Collection Officer
FROM: Michele Brooks
Director, Regulations Management Division
Innovation Center, Rural Development, USDA

JEANNE
JACOBS

Digitally signed by
JEANNE JACOBS
Date: 2020.08.03
15:25:16 -04'00'

SUBJECT: Request for Emergency Approval of a New Information Collection Request
Special Authority to Enable Funding of Broadband and Smart Utility Facilities
Across Select Rural Development Programs (Smart Utility)
The Rural Utilities Service, Rural Business-Cooperative Service, and Rural Housing Service,
agencies that comprise the Rural Development (RD) Mission Area (Agencies) within the United
States Department of Agriculture, is requesting emergency review and approval of a new
information collection for the Special Authority to Enable Funding of Broadband and Smart
Utility Facilities Across Select Rural Development Programs (Smart Utility) final rule. The
Agencies are expecting to publish the final rule in the Federal Register by September 15, 2020.
The U.S. Department of Agriculture Secretary Perdue has indicated that implementation of
the Sec. 6210, “Smart Utility Authority for Broadband” of the 2018 Farm Bill, is a priority for
publication prior to the close of the FY 2020. If publication of this authority is delayed, rural
businesses and families, already severely impacted due to the economic impact of the COVID-19
pandemic, may continue to suffer from a decline in educational opportunities, inadequate health
care, depressed economies, and high unemployment. Projects funded under the 2018 Farm Bill
special Smart Utility authority, can play a vital role in the economic recovery created by time,
distance, location, and lack of resources, which has been severely compounded by the COVID19 pandemic. In lieu of the compressed deadline to the end of fiscal year 2020, Rural
Development, USDA is requesting that OMB approve this information collection no later than
September 8, 20

On December 20, 2018, Congress passed The Agricultural Improvement Act of 2018 (2018
Farm Bill) (Pub. L. 115-334). In Section 6210, “Smart Utility Authority for Broadband” of the
2018 Farm Bill, Congress provided for special use of funding from other RD programs for
broadband deployment. The provision granted the Secretary of Agriculture the discretion to
allow recipients of grants, loans, or loan guarantees under RD programs to use not more than 10
percent of such funding to finance broadband infrastructure in areas not served by the minimum
acceptable level of broadband service which will not result in competitive harm to a current RD
loan, grant, or loan guarantee. The provision clarified that the new authority was supplemental to
existing authorities to finance rural infrastructure and not a limitation on those authorities stating
that nothing in the smart utility section shall be construed to limit the ability of any borrower to
finance or deploy services authorized by the 2018 Farm Bill.
Approval of an emergency approval for this new collection is important because the “Smart
Utility” authority will not be able to be implemented, as the use of normal clearance procedures
is likely to prevent the collection of information from applicants which, in turn, will have
negative consequences on the intended recipients and government. The 60-day notice for
comments is included in the final rule and comments on the “Smart Utility” information
collection request is requested in order to submit the regular request to obtain a 3-year approval
from OMB after receiving the 6-month OMB emergency approval. Due to the need to consider
comments received and then issue another notice for the Federal Register for an additional thirty
days of comment, the Agencies would not be able to complete the information collection
process. Failure to collect proper information from borrowers could hinder the government’s
recovery of such loans, result in improper determinations of assistance, increase legal costs to
the borrower as well as encumber customer service and, ultimately, slow the deployment of
broadband to unserved and under-served rural areas. Please note that after the 60-day comment
period closes, RD will submit the collection package for a 3-year approval addressing any
comments received.
Should you have any questions, please do not hesitate to contact Michele Brooks, Director,
Regulations Management Division, Innovation Center, Rural Development by telephone at (202)
690-1078 or by email at [email protected]. or MaryPat Daskal, Management Analyst,
Regulations Management Division, Innovation Center, Rural Development by telephone at (202)
720-7853.
Thank you in advance for your quick review and response to us.

Attachments