Da 21-1234

DA-21-1234A1 (1).pdf

Protecting National Security Through FCC Programs

DA 21-1234

OMB: 3060-1270

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DA 21-1234
Released: September 30, 2021
WIRELINE COMPETITION BUREAU ANNOUNCES BEST PRACTICES FOR
EQUIPMENT DISPOSAL AND REVISES FCC FORM 5640 CERTIFICATIONS FOR
THE SECURE AND TRUSTED COMMUNICATIONS NETWORKS
REIMBURSEMENT PROGRAM
WC Docket No. 18-89
By this Public Notice, the Wireline Competition Bureau (Bureau) provides guidance and
voluntary best practices regarding the Secure and Trusted Communications Networks Reimbursement
Program (Reimbursement Program) disposal and verification requirements to assist providers of advanced
communications services participating in the Reimbursement Program.1 The Bureau finds that the best
practices set forth in this guidance comply with the requirements in section 1.50004(j) of the
Commission’s rules.2 Reimbursement Program participants are free to choose alternative approaches to
comply with the Reimbursement Program’s disposal and verification requirements. In such instances, the
Commission will review the specific circumstances to determine whether or not the alternative approach
selected by the provider complies with the disposal and verification requirements set forth in section
1.50004(j) of the Commission’s rules.
Separately, pursuant to section 1.108 of the Commission’s rules,3 the Bureau reconsiders and
revises, on its own motion, the certifications contained in FCC Form 5640 Application Request for
Funding Allocation and the Reimbursement Claim Request that the Bureau adopted in the Finalized
Reimbursement Process Public Notice.4 These revised certifications will further protect the
Reimbursement Program against waste, fraud, and abuse. The Bureau also makes minor corrections to

See 47 CFR § 1.50004(j). The rules adopted by the Commission in section 1.50004, and cited herein, contain new
or modified information collection requirements subject to approval from the Office of Management and Budget
(OMB) pursuant to the Paperwork Reduction Act of 1995, Pub. L. 104-13, before becoming effective. Accordingly,
those rule subparts requiring OMB approval are currently denoted as “reserved” in the Electronic Code of Federal
Regulations, eCFR.gov. To find the full text of the adopted rule, see Appx. A to the 2020 Supply Chain Order, as
amended by Appx. A to the 2021 Supply Chain Order. Protecting Against National Security Threats to the
Communications Supply Chain Through FCC Programs, WC Docket No. 18-89, Second Report and Order, 35 FCC
Rcd 14284, 14374-83, Appx. A (2020) (2020 Supply Chain Order); Protecting Against National Security Threats to
the Communications Supply Chain Through FCC Programs, WC Docket No. 18-89, Third Report and Order, FCC
21-86, 2021 WL 3024271, at 49-51, Appx. A (Jul. 14, 2021) (2021 Supply Chain Order).
2

47 CFR § 1.50004(j).

See id. § 1.108.

Wireline Competition Bureau Finalizes Application Filings, Procedures, Cost Catalog, and Replacement List for
the Secure and Trusted Communications Networks Reimbursement Program, WC Docket No. 18-89, Public Notice,
DA 21-947, Appx. A & B (WCB Aug. 3, 2021) (Finalized Reimbursement Process Public Notice).

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certain cost estimates incorrectly identified in the Final Catalog of Eligible Expenses and Estimated Costs
(Cost Catalog) adopted in the Finalized Reimbursement Process Public Notice.5
Background. As required by the Secure and Trusted Communications Networks Act of 2019
(Secure Networks Act), as amended, the Commission established the $1.9 billion Reimbursement
Program to reimburse eligible providers of advanced communications service, with ten million or fewer
customers, for reasonable costs incurred when removing, replacing, and disposing of covered
communications equipment and services from their networks.6 Covered communications equipment and
service for purposes of the Reimbursement Program are currently limited to the equipment and service
produced or provided by Huawei Technologies Company (Huawei) or ZTE Corporation (ZTE), that was
obtained on or before June 30, 2020.7
Disposal and Verification Obligations. In accordance with the Secure Networks Act, the
Commission adopted a rule requiring Reimbursement Program participants to: (1) “dispose of the covered
communications equipment and services in a manner to prevent the equipment or service from being used
in the networks of other advanced communications service providers;” and (2) “retain documentation
demonstrating compliance with this requirement.”8 The disposal, according to the Commission, “must
result in the destruction of the covered communications equipment or service, making the covered
communications equipment or service inoperable permanently,” and participants “must retain
documentation demonstrating compliance with this requirement.”9 The Commission also specifically
prohibited the “transfer of covered communications equipment or service to non-U.S. providers in an
operable state that would allow for use of the equipment or service in another provider’s network, foreign
or domestic.”10 The Commission expected the Bureau to provide participants with additional guidance
with the disposal and verification process.11

See id. at 26, para. 73; id., Appx. C.

Secure Networks Act § 4(a); 47 U.S.C. § 1603(a); see 47 U.S.C. §§ 1603(c), 1608 (stating “‘advanced
communications service’ has the meaning given the term ‘advanced telecommunications capability’ in section 706
of the Telecommunications Act of 1996”); Protecting Against National Security Threats to the Communications
Supply Chain Through FCC Programs, WC Docket No. 18-89, Report and Order, Further Notice of Proposed
Rulemaking, and Order, 34 FCC Rcd 11423, 11475-76, para. 140 (2019) (2019 Supply Chain Order and Further
Notice); 2021 Supply Chain Order at 21, para. 46.
6

2021 Supply Chain Order, 2021 WL 3024271, at 49-51, Appx. A; see generally Protecting Against National
Security Threats to the Communications Supply Chain Through FCC Programs – Huawei Designation, PS Docket
No. 19-351, Order, 35 FCC Rcd 6604 (PSHSB 2020); Protecting Against National Security Threats to the
Communications Supply Chain Through FCC Programs – ZTE Designation, PS Docket No. 19-352, Order, 35 FCC
Rcd 6633 (PSHSB 2020); see 47 CFR § 1.50004(a)(1)-(2) (effective Sept. 30, 2021).
8

Secure Networks Act § 4(d)(7); 47 U.S.C. § 1603(d)(7); 47 CFR § 1.50004(j). The disposal and verification
requirements apply to covered communications equipment and service produced or provided by Huawei and ZTE.
See 47 CFR § 1.50004(a)(1)-(2), (j). Accordingly, other ancillary equipment and service removed in connection
with the removal, replacement, and disposal of the communications equipment produced or provided by Huawei and
ZTE would not be subject to the requirements of section 1.50004(j) of the Commission’s rules. See id. § 1.50004(j).
9

47 CFR § 1.50004(j).

2020 Supply Chain Order, 35 FCC Rcd at 14358, para. 179 (citing Puerto Rico Telecommunications Company
Section 4 Public Notice Reply at 9-10). However, the Commission allowed providers to satisfy the Commission’s
disposal requirements “‘by documenting their transfer of removed equipment to third parties tasked with destruction
or other disposal of the equipment.’” Id. (quoting CCA Section 4 Public Notice Comments at 10).
11

Id.

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Best Practices Overview. Based on comments addressing the disposal process filed in this
docket, presentations from entities with disposal experience,12 and Bureau staff’s review of similar
disposal processes, we identify certain voluntary “best practices,” attached in Appendix A, to help guide
participants as they fulfill their Reimbursement Program disposal and verification obligations.13 These
best practices include procedures to effectuate equipment removal, data destruction, media sanitization,
storage, transportation, physical destruction and recycling, and also cover the selection of certified data
sanitization services, equipment destruction services, and electronic waste (e-waste) recycling services.
The best practices further discuss documentation sufficient to demonstrate compliance, including the use
of detailed equipment inventories, certificates of media disposition, and certificates of destruction. While
the best practices are voluntary, we find that these practices will help companies meet their disposal
obligations efficiently, while also ensuring the safe and secure removal and disposal of covered
communications equipment and services that pose a national security threat consistent with the Secure
Networks Act and the Commission’s rules.
Providers can employ alternative compliance measures, but risk the Commission subsequently
finding that such measures are not in compliance with section 1.50004(j) of its rules. Non-compliance
can result in the assessment of fines and forfeitures by the Commission14 and can also result in additional
enforcement actions provided for in section 1.50005 of the Commission’s rules, including the repayment
of Reimbursement Program funding.15 The Commission directed the Office of Managing Director
(OMD), or a third-party identified by OMD, to prepare a system to conduct audits and field investigations
to ensure Reimbursement Program participants are acting in compliance with the Commission’s rules.16
These audits and field investigations will include the inspection of documentation to verify compliance
with the disposal and verification requirements in section 1.50004(j) of the Commission’s rules.17
Providers participating in the Reimbursement Program are likely to encounter different categories
of covered communications equipment and services. These different categories may pose different
security threats based on their individual capabilities, including processing and/or retaining sensitive
network or customer identifiable information. Therefore, as part of the best practices, we identify
recommended practices for treating covered communications equipment based on the category of
equipment. We understand that it may be more efficient for a destruction company to destroy and recycle
a large amount of equipment at once, for example, by destroying all equipment in a box at one time that
may include a combination of the categories of equipment described below, and we defer to both the
12

See Letter from Jared M. Carlson, Vice President, Government Affairs and Public Policy, Ericsson, to Marlene H.
Dortch, Secretary, FCC, WC Docket No. 18-89, at 1 (filed June 18, 2021) (Ericsson June 18, 2021 Ex Parte)
(requesting “further guidance from the Commission regarding the level of detail required from operators disposing
of equipment”); Comments of Competitive Carriers Association, WC Docket No. 18-89, at 4 (filed Apr. 26, 2021)
(CCA Cost Catalog Public Notice Comments) (requesting “additional detail regarding what information will be
necessary to satisfy [the disposal] documentation requirement”); Letter from Carri Bennet, General Counsel, Rural
Wireless Association, to Marlene H. Dortch, Secretary, FCC, WC Docket No. 18-89 (Jul. 13, 2021) (RWA Jul. 13,
2021 Ex Parte); Letter from Andrew C. McManus, General Manager, Gannon & Scott, to Marlene H. Dortch,
Secretary, FCC, WC Docket No. 18-89 (Aug. 31, 2021) (Gannon & Scott Ex Parte); Letter from Brodie Ehresman,
Director of Marketing and Business Development, Advanced Technology Recycling, to Marlene H. Dortch,
Secretary, FCC, WC Docket No. 18-89 (Sept. 3, 2021) (ATR Ex Parte); Letter from Caressa Bennet et al., Counsel
for Teltech Group, to Marlene H. Dortch, Secretary, FCC, WC Docket No. 18-89 (Sept. 17, 2021) (Teltech Letter).
13

See 47 CFR § 1.50004(j).

47 U.S.C. § 503; 47 CFR § 1.80.

47 U.S.C. § 1606; 47 CFR § 1.50005.

2020 Supply Chain Order, 35 FCC Rcd at 14362, para. 193; see 47 U.S.C. § 1603(e) (directing the Commission to
“take all necessary measures to avoid waste, fraud, and abuse with respect to the [Reimbursement] Program”); 47
CFR § 1.50004(o) (subjecting Reimbursement Program recipients to “audits and other investigations to evaluate
compliance with the statutory and regulatory requirements for the Reimbursement Program”).
17

See 47 U.S.C. 1603(e); 47 CFR § 1.50004(j), (n).

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provider and the destruction company as to the most efficient process to achieve the required disposal
obligation.
The categories are organized by level of risk, starting with equipment posing the highest risk,
based on whether the equipment retains or processes data. 18 Category 1 equipment is equipment that
processes and retains data. Category 2 equipment is equipment that processes but does not retain data.
Category 3 equipment is equipment that does not retain or process data. For category 1 equipment, we
recommend the provider sanitize any media, followed by physical destruction and then recycling.19 For
category 2 equipment, we recommend physical destruction and then recycling.20 For category 3
equipment, we recommend recycling this equipment.21 We will consider category 3 equipment as
“inoperable” if permanently dismantled from other communications equipment and services and it is
unable to be reconnected to any other communications equipment. Reimbursement Program participants
are encouraged to retain certain documentation, based on the categories of covered communications
equipment, including certificates of media disposition and certificates of destruction, which will help
participants and the Bureau verify compliance with their disposal and verification obligations.
Guidance is also provided on selecting certified disposal services and e-waste recyclers. If using
a third party, the Bureau recommends using a company that provides complete asset management
solutions, from removal to destruction, including transportation and chain of custody tracking to avoid the
potential for misplaced or lost equipment containing sensitive information. Providers may utilize one
company for the entire disposal and recycling process, or different companies for different aspects of the
disposal and recycling process based upon the categories of covered communications equipment outlined
above.22 Because the Commission in the 2020 Supply Chain Order prohibited the transfer of operable
covered communications equipment or service to non-U.S. providers, we recommend providers use U.S.
disposal companies that conduct the disposal process on U.S. soil.23. Equipment is still considered
operable until it is properly disposed.
In particular, we recommend providers use a U.S. disposal company registered with the U.S.
Department of State’s Directorate of Defense Trade Controls pursuant to the International Traffic in Arms
Regulations (ITAR).24 We agree with Advanced Technology Recycling that “utilizing ITAR processing
guidelines is an ideal mechanism to ensure sensitive electronics as outlined in the [Secure Networks Act]
are properly disposed of in a manner that protects national security.”25 While the covered
communications equipment may not fall within the scope of ITAR,26 we find that an ITAR-registered
While section 1.50004(j) of the Commission’s rules apply to covered communications equipment and service, we
expect Reimbursement Program participants, to the extent they are disposing of non-covered communications
equipment and service, to do so in an environmentally responsible manner.
18

Category 1 equipment examples include Mobility Management Entity and Home Subscriber Server equipment,
which process and retain network and customer proprietary data.
20

Category 2 equipment examples include Antenna Array Units, Radio Units, Baseband Units, and Control Units.

Category 3 equipment examples include cables, brackets, cabinets, and miscellaneous components.

See 2020 Supply Chain Order, 35 FCC Rcd at 14358, para. 179.

Id.

See 22 CFR § 122.1 et seq. (ITAR registration and certification requirements); see generally 22 CFR §§ 120-130;
U.S. Dept. of State, Directorate of Defense Trade Controls, The International Traffic in Arms Regulations,
https://www.pmddtc.state.gov/ddtc_public?id=ddtc_kb_article_page&sys_id=%2024d528fddbfc930044f9ff621f961
987 (last visited Sept. 17, 2021).
25

ATR Ex Parte at *2.

The U.S. Department of State’s Directorate of Defense Trade Controls (DDTC) offers a tool to help users
determine whether an article is subject to ITAR. See DDTC, https://www.pmddtc.state.gov/ddtc_public?id=ddtc_
public_portal_dt_order_of_review (last visited Sept. 17, 2021).

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disposal company will likely have the procedures in place and the facilities necessary to effectively
handle the safe and secure destruction of covered communications equipment, including the most
sensitive equipment.27 We find that, based on the record, ITAR-registered companies likely can provide
complete asset management services, including tracking equipment, maintaining records, and
documentation and certifying destruction.28 According to Advanced Technology Recycling, “ITAR
registered service providers must follow strict disposal guidelines to ensure scrap materials generated
throughout the disposal process remain on U.S. soil and be processed exclusively by U.S. persons.”29
ITAR-registered companies are required to maintain records concerning manufacture, acquisition, and
disposition of defense articles, including technical data, subject to ITAR,30 and are subject to civil and
criminal penalties for violations.31 According to Advanced Technology Recycling and Gannon & Scott,
ITAR-registered companies may also hold e-waste recycling or other certifications and provide media
sanitization services, allowing for a one-stop disposal facility to handle the disposal of different categories
of equipment according to the best practices outlined in Appendix A.32
We agree with Teltech Group that through the disposal process we should “consider
environmental issues” so that the covered communications equipment “do not create environmental
problems.”33 Accordingly, the Bureau recommends for providers to recycle covered communications
equipment to ensure the secure and environmentally responsible disposal of equipment as recommended
by the Environmental Protection Agency (EPA).34 Consistent with EPA guidelines, the Bureau
recommends utilizing electronic waste (e-waste) recyclers that are certified by either the Responsible
Recycling (R2) Standard for Electronics Recyclers or the e-Stewards Standard for Responsible Recycling
and Reuse of Electronic Equipment (e-Stewards).35 As noted above, ITAR-registered companies may
also hold R2 and e-Stewards certifications. For example, according to Advanced Technology Recycling,
as an ITAR-registered disposal company, disposal processes are “carried out … at R2 certified and ITAR
registered facilities.”36
27

See ATR Ex Parte at *2; Gannon & Scott Ex Parte.

See Wireline Competition Bureau Seeks Comment on a Report and Preliminary Cost Catalog and Replacement
List to Help Providers Participate in the Supply Chain Reimbursement Program, WC Docket No. 18-89, Public
Notice, 36 FCC Rcd 5770, 5848, Appx. A at 71 (WCB 2021) (Cost Catalog Public Notice) (“ITAR registered
recyclers are in a position to effectively track individual items, facilitate secure logistics, provide complete
destruction services, maintain records, provide documentation and certification of destruction.”); ATR Ex Parte at
*2-8; see also Gannon & Scott Ex Parte at 1.
29

ATR Ex Parte at *2.

See 22 CFR § 122.5(a).

See id. § 127.3.

See ATR Ex Parte at *2 (noting that “[u]nder ITAR regulations,” disposal processes are “carried out by
authorized and vetted U.S. persons, at R2 certified and ITAR registered facilities”); Gannon & Scott Ex Parte.
32

Teltech Group Letter at 4.

EPA, Certified Electronics Recyclers, https://www.epa.gov/smm-electronics/certified-electronics-recyclers (last
visited Sept. 27, 2021).
35

Id.; E-Stewards, e-Stewards, http://e-stewards.org/ (last visited Sept. 27, 2021); SERI, R2,
https://sustainableelectronics.org/r2/ (last visited Sept. 27, 2021); see Ericsson June 18, 2021 Ex Parte at 1 (noting
that Ericsson holds its recycling partners to R2 and EPA standards). This is consistent with the Commission leaving
open the possibility of participants utilizing third-party certified electronic recyclers as encouraged by
COMSovereign. See 2020 Supply Chain Order at 14358, para. 179 n.516 (citing COMSovereign Section 4 Public
Notice Comments at 10); see also id. at 14358, para. 179 (agreeing with the Competitive Carriers Association
(CCA) that program participants could satisfy their disposal obligations “‘by documenting the transfer of removed
equipment to third parties tasked with destruction or other disposal of the equipment’”).
36

ATR Ex Parte at *1-2.

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The best practices also provide guidance on disposal verification documentation. We recommend
providers retain shipping or transportation documentation, including detailed inventories supported by an
affidavit, dates, locations, transportation service provider name, and means of transportation. These may
be kept individually or as part of a larger asset management solution.37 Reimbursement Program
participants are encouraged to retain documentation, including certificates of media disposition and
certificates of destruction, that will help participants and the Bureau verify compliance with their disposal
and verification obligations. These recommendations reflect input received from the Rural Wireless
Association, Teltech Group, and the Competitive Carriers Association on the importance of tracking the
removal and destruction of covered equipment and on clarifying the “level of detail any documentation
will need to contain to be compliant.”38
In sum, these best practices will help ensure the security of sensitive data processed or retained by
the covered equipment, including network and customer proprietary information, from unauthorized
access. These best practices will also help participants comply with the requirements of section
1.50004(j) of the Commission’s rules, to ensure that covered communications equipment and service that
pose an unacceptable risk to the national security of the United States or the security and safety of United
States persons is made inoperable and recycled in an environmentally safe manner.
Prospective-Only Guidance. The Rural Wireless Association asserts that some of its “members
have already completed the destruction of, or are in the process of disposing of,” covered communications
equipment.39 Providers of advanced communications services that have already removed and disposed of
covered communications equipment or services could not have known the best practices provided in
Appendix A. Accordingly, we will take this into account when evaluating compliance with section
1.50004(j) for disposal occurring prior to the release of these best practices. We expect providers have
acted reasonably, however, in carrying out the safe and secure disposal of covered communications
equipment and have retained sufficient documentation to verify the disposal efforts taken.40 To the extent
that covered communications equipment is still in a provider’s custody and not destroyed, providers are
encouraged to follow the disposal guidance provided herein going forward.
Reimbursement Program Certifications. Additionally, the Bureau, on its own motion pursuant to
section 1.108 of the Commission’s rules,41 hereby reconsiders and revises the certifications contained in
the FCC Form 5640 Application Request for Funding Allocation and the Reimbursement Claim
Request.42 These revised certifications, included in Appendix B, are consistent with the certifications
37

See Teltech Letter at 2 (describing how an asset management solution was used to decommission a Huawei
network).
CCA Cost Catalog Public Notice Comments at 4; see RWA Jul. 13, 2021 Ex Parte at 1 (noting Teltech Group’s
asset management capabilities to track equipment by “location, serial numbers and a multitude of granular levels”);
ATR Ex Parte at *8 (recommending “only ITAR registered companies that can establish a secure chain of custody
from the originating customers location all the way to an ITAR approved processing facilities be utilized”); Teltech
Letter at 4 (noting Teltech’s asset management tool, TAM 2.0, which purports to provide clients with tracking
capabilities for “Huawei and ZTE equipment removed from U.S. carrier networks throughout the reverse logistics
life-cycle”).
38

Letter from Carri Bennet, General Counsel, RWA, to Marlene H. Dortch, Secretary, FCC, WC Docket No. 18-89,
at 1 (Sept. 14, 2021) (RWA Sept. 14, 2021 Ex Parte).
40

This is consistent with language in the 2020 Supply Chain Order, whereby the Commission applauded providers
for proactively taking steps to increase the security of their networks by proactively removing and replacing covered
communications equipment prior to the establishment and funding of the Reimbursement Program. 2020 Supply
Chain Order, 35 FCC Rcd at 14340, para. 130. For those companies that proactively began the process, the
Commission allowed them to be reimbursed for reasonable costs incurred as part of their removal, replacement, and
disposal.
41

See 47 CFR § 1.108.

See Finalized Reimbursement Process Public Notice, Appx. A & B.

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recently employed for other funding programs implemented by the Commission and will further protect
the Reimbursement Program from waste, fraud, and abuse. 43
The Commission directed the Bureau to “create one or more forms to be used by entities to claim
reimbursement from the Reimbursement Program, to report on their use of money disbursed and the
status of their construction efforts, and for any other Reimbursement Program-related purposes.”44 The
Commission also delegated authority to the Bureau to “adopt the necessary policies and procedures
relating to allocations, draw downs, payments, obligations, and expenditures of money from the
Reimbursement Program to protect against waste, fraud, and abuse . . . .”45 In the Reimbursement Process
Public Notice, the Bureau sought comment on the proposed information fields for FCC Form 5640,
including the form certifications required by applicants.46 The Bureau finalized the FCC Form 5640
Application Request for Funding Allocation and Reimbursement Claim Request in the Finalized
Reimbursement Process Public Notice.47
The Bureau, on its own motion, now reconsiders and revises these FCC Form 5640 certifications.
The revised certifications largely track the substance of the prior certifications that were derived from the
Secure Networks Act and the Commission’s rules.48 However, to further protect the Reimbursement
Program from waste, fraud, and abuse and to align the certifications with other recently implemented
funding programs by the Commission, we have added additional certifications.49 For example, we now
explicitly require certifying officials to certify that they are authorized to certify on behalf of the
applicant. The certifying official must also acknowledge that any false, fictitious, or fraudulent
information or statement, or the omission of any material fact on the form or any other documents
submitted may subject the participant to fine or forfeiture under the Communications Act,50 fine or
imprisonment under Title 18 of the United States Code,51 or liability under the False Claims Act.52 The
Bureau also requires certifying officials to acknowledge that failure to comply with the statute, rules, and
orders governing the Reimbursement Program could result in civil and criminal prosecution by law
enforcement authorities. The certifying official must further certify that the applicant will not use
Reimbursement Program funds for any portion of expenses that have been or will be reimbursed by other
43

See 47 U.S.C. § 1603(e); see also FCC, Emergency Broadband Benefit, https://www.fcc.gov/broadbandbenefit
(last visited Aug. 27, 2021); 47 CFR § 54.1608(e)(12)-(15) (requiring an officer of a provider participating in the
Commission’s Emergency Broadband Benefit Program to certify as part of each request for reimbursement: “that the
provider neither received nor paid kickbacks,” “information contained in this form is true, complete, and accurate,”
“the officer is aware that any false, fictitious, or fraudulent information, or the omission of any material fact, may
subject the officer to criminal, civil, or administrative penalties for fraud, false statements, false claims, or
otherwise,” and “[n]o service costs or devices sought for reimbursement have been waived, paid, or promised to be
paid by another entity, including any federal program.”).
44

2020 Supply Chain Order, 35 FCC Rcd at 14358, para. 180.

47 CFR § 1.50004(p).

Wireline Competition Bureau Seeks Comment on Secure and Trusted Communications Networks Reimbursement
Program Application Filings and Process, WC Docket No. 18-89, Public Notice, DA 21-607 (WCB May 24, 2021)
(Reimbursement Process Public Notice).
47

Finalized Reimbursement Process Public Notice, Appx. A & B; see FCC, Wireline Competition Bureau Finalizes
Application Filings, Procedures, Cost Catalog, and Replacement List for the Secure and Trusted Communications
Networks Reimbursement Program, 86 Fed. Reg. 48521 (Aug. 31, 2021) (effective date of September 30, 2021).
48

See 47 U.S.C. § 1603(d)(4); 47 CFR § 1.50004(a)(3), (c)(iii), (c)(v).

See id. § 1603(e)(1) (“The Commission shall take all necessary steps to avoid waste, fraud, and abuse with respect
to the Program.”).
49

See 47 U.S.C. §§ 502, 503(b), 1606.

See 18 U.S.C. §§ 1001, 286-287, 1343.

See 31 U.S.C. §§ 3729-3733, 3801-3812.

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sources of state or federal funding. This certification, in particular, is aimed at protecting against the
receipt and use of duplicative funding from different state and federal sources. Finally, certifying
officials will also need to certify that no “kickbacks” (i.e., money or anything of value) were paid or
received by the participant from a contractor or vendor in connection with the Reimbursement Program.53
Collectively, the revised and added certifications provide additional notice to certifying officials and
applicants as to potential civil and criminal penalties for violating Reimbursement Program requirements
and will strengthen the Commission’s ability to investigate and hold applicants accountable for rule
violations and fraudulent conduct.
These revised certifications will become effective immediately upon publication in the Federal
Register, pursuant to section 553(d)(3) of the Administrative Procedure Act.54 We find good cause exists
for an expedited effective date to ensure these certifications can be included in the forms necessary for the
expeditious opening of the Reimbursement Program filing window, which is now scheduled to occur on
October 29, 2021.55 An expedited effective date will further assist the Commission in speedily addressing
the pressing national security concerns that prompted the establishment this Reimbursement Program.
Cost Catalog Corrections. Finally, the Bureau corrects cost estimates incorrectedly identified in
the Cost Catalog adopted on August 3, 2021 in the Finalized Reimbursement Process Public Notice.56
Since the release of the Cost Catalog on August 3, 2021, the Bureau was made aware of a few instances
where the cost estimate identified in that version of the Cost Catalog was listed incorrectly. Specifically,
the average cost estimate reported for items 2.1.2 and, 2.2.3 was inaccurate given the range of cost
estimates reported. In addition, the low-end cost range for item 5.16.5 was incorrectly listed as
$1,7687.17 instead of $17,687.17. The average cost estimate for item 5.16.5 is, however, correct.
Separately, the final version of the Cost Catalog incorrectly included a costs estimate for item 5.1.4
regarding “Participation for FCC Rulemaking” even though the Bureau explicitly called for the removal
of this item in the Finalized Reimbursement Process Public Notice.57 Accordingly, we will make these
corrections to the Cost Catalog and publish a corrected version on the Commission’s website.58
Paperwork Reduction Act. This document does not contain any new information collection(s)
subject to the Paperwork Reduction Act of 1995 (PRA), Public Law 104-13. The Commission has
separately sought and obtained approval, per the PRA, from the Office of Management and Budget
(OMB) for the information collection requirements contained in the 2020 Supply Chain Order from
which the rules and obligations discussed herein, where applicable, are derived.59 Therefore, this
document does not contain any new or modified information collection burden for small business

See 41 U.S.C. § 8701(2) (“kickback” means “any money, fee, commission, credit, gift, gratuity, thing of value, or
compensation of any kind that is provided to a prime contractor, prime contractor employee, subcontractor, or
subcontractor employee to improperly obtain or reward favorable treatment in connection with a prime contract or a
subcontract relating to a prime contract.”); 42 U.S.C. § 1320a-7b.
53

5 U.S.C. § 553(d)(3) (“The required publication or service of a substantive rule shall be made not less than 30
days before its effective date, except . . . as otherwise provided by the agency for good cause found and published
with the rule.”).
54

See Wireline Competition Bureau Announces Application Filing Window for the Secure and Trusted
Communications Networks Reimbursement Program – Filing Window Opens October 29, 2021, Public Notice, DA
21-1207 (WCB Sept. 27, 2021).
56

See Finalized Reimbursement Process Public Notice at 26, para. 73; id., Appx. C.

Id. at 29, para. 81.

See FCC, Protecting Against National Security Threats to the Communications Supply Chain Through FCC
Programs, http://www.fcc.gov/supplychain (last visited Sept. 27, 2021).
59

See Notice of Office of Management and Budget Action for OMB Control No. 3060-1270 (approved Sept. 8,
2021), https://www.reginfo.gov/public/do/DownloadNOA?requestID=348935.

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concerns with fewer than 25 employees, pursuant to the Small Business Paperwork Relief Act of 2002,
Public Law 107-198.60
Final Regulatory Flexibility Certification. The Regulatory Flexibility Act of 1980, as amended
(RFA), requires that an agency prepare a regulatory flexibility analysis for notice and comment
rulemakings, unless the agency certifies that “the rule will not, if promulgated, have a significant
economic impact on a substantial number of small entities.” 61 The RFA generally defines the term “small
entity” as having the same meaning as the terms “small business,” “small organization,” and “small
governmental jurisdiction.”62 In addition, the term “small business” has the same meaning as the term
“small business concerns” under the Small Business Act.63 A “small business concern” is one that: (1) is
independently owned and operated; (2) is not dominant in its field of operation; and (3) satisfies any
additional criteria established by the Small Business Administration (SBA).64 The Commission prepared
Initial Regulatory Flexibility Analyses (IRFAs) in connection with the 2020 Supply Chain Declaratory
Ruling and Second Further Notice and the 2021 Supply Chain Third Further Notice.65 The Commission
sought written public comment on the proposals in the 2020 Supply Chain Declaratory Ruling and
Second Further Notice and the 2021 Supply Chain Third Further Notice, including comments on the
IRFAs. No comments were filed addressing the IRFAs. The Commission included Final Regulatory
Flexibility Analyses (FRFAs) in connection with the 2020 Supply Chain Order and the 2021 Supply
Chain Order.66
This Public Notice establishes provides: (1) voluntary guidance on complying with the
Reimbursement Program’s disposal and verification requirements; (2) revises the certifications associated
with the FCC Form 5640 application filings; and (3) corrects cost estimates identified in the Cost Catalog
that were listed incorrectly. These actions flow from the proposals set forth in the 2020 Supply Chain
Declaratory Ruling and Second Further Notice and the 2021 Supply Chain Third Further Notice and
discussed in the IRFAs accompanying those Notices, and are consistent with the requirements established
in the 2020 Supply Chain Order and the 2021 Supply Chain Order and addressed in the FRFAs
accompanying those orders. Accordingly, no changes to our earlier analyses are required.
We have determined that the impact on the entities affected by the requirements contained in this
Public Notice will not be significant. The effect of these measures is to establish for the benefit of those
entities, including small entities, the procedures for filing an application consistent with existing rules, to
participate in the Reimbursement Program to obtain funding support to remove from their networks,
replace, and dispose of communications equipment and service considered a national security risk.
60

See 44 U.S.C. § 3506(c)(4).

5 U.S.C. § 603. The RFA, 5 U.S.C. §§ 601-612, has been amended by the Small Business Regulatory
Enforcement Fairness Act of 1996 (SBREFA), Public L. No. 104-121, Title II, 110 Stat. 857 (1996).
62

5 U.S.C. § 605(b).

Id. § 601(6).

Id. § 601(3) (incorporating by reference the definition of ““small-business concern” in the Small Business Act, 15
U.S.C. § 632). Pursuant to 5 U.S.C. § 601(3), the statutory definition of a small business applies “unless an agency,
after consultation with the Office of Advocacy of the SBA and after opportunity for public comment, establishes one
or more definitions of such term which are appropriate to the activities of the agency and publishes such
definition(s) in the Federal Register.”
64

Protecting Against National Security Threats to the Communications Supply Chain Through FCC Programs, WC
Docket No. 18-89, Declaratory Ruling and Second Further Notice of Proposed Rulemaking, 35 FCC Rcd 7821
(2020) (2020 Supply Chain Declaratory Ruling and Second Further Notice); Protecting Against National Security
Threats to the Communications Supply Chain Through FCC Programs, WC Docket No. 18-89, Third Further Notice
of Proposed Rulemaking, FCC 21-26 (Feb. 22, 2021) (2021 Supply Chain Further Notice).
66

2020 Supply Chain Order, 35 FCC Rcd at 14385, Appx. B (Final Regulatory Flexibility Analysis); 2021 Supply
Chain Order, Appx. B (Final Regulatory Flexibility Analysis).

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Report to Congress. The Commission has determined, and the Administrator of the Office of
Information and Regulatory Affairs, Office of Management and Budget, concurs, that these modified
certification requirements are non-major under the Congressional Review Act, 5 U.S.C. § 804(2). The
Bureau will send a copy of this Public Notice to Congress and the Government Accountability Office
pursuant to 5 U.S.C. § 801(a)(1)(A).
Additional Information. For additional information about the Reimbursement Program
application and filing process, interested parties should review the Finalized Reimbursement Process
Public Notice and visit the Reimbursement Program webpage: https://www.fcc.gov/supplychain.
Questions specific to the Reimbursement Program or application process should be directed to the
Reimbursement Program Fund Administrator by emailing [email protected] or by calling (202)
418-7540 from 9:00 AM ET to 5:00 PM ET, Monday through Friday, except for Federal holidays. For
further information regarding this Public Notice, please contact [email protected].
- FCC -

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APPENDIX A

SECURE AND TRUSTED COMMUNICATIONS
NETWORKS REIMBURSEMENT PROGRAM

DISPOSAL PROCESS GUIDANCE
AND BEST PRACTICES
September 30, 2021

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Table of Contents
I. INTRODUCTION ............................................................................................................................ 1
II. THE DISPOSAL PROCESS ............................................................................................................. 2
A. Introduction to the Disposal Process ............................................................................................ 2
B. Removal, Storage, and Transportation of Covered Communications Equipment .......................... 3
C. Identifying the Appropriate Disposal Process .............................................................................. 3
D. Media Sanitization ...................................................................................................................... 6
E. Equipment Destruction................................................................................................................ 6
F. Selecting a Certified Electronic Waste Recycler .......................................................................... 7
III. DOCUMENTATION DEMONSTRATING COMPLIANCE ............................................................ 9
IV. CONCLUSION............................................................................................................................... 10

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INTRODUCTION

1.
The Secure and Trusted Communications Networks Act of 2019 (Secure Networks Act),
as amended, directed the Federal Communications Commission (Commission) to establish the Secure and
Trusted Communications Networks Reimbursement Program (Reimbursement Program).1 The
Commission established the Reimbursement Program in the 2020 Supply Chain Order.2 The
Reimbursement Program is intended to reimburse providers of advanced communications services with
10 million or fewer customers for costs incurred in the removal, replacement, and disposal of covered
communications equipment and services deemed to pose an unacceptable risk to the national security of
the United States or the security and safety of United States persons.3 For purposes of the Reimbursement
Program, “covered communications equipment and services” means any communications equipment or
services produced or provided by Huawei Technologies Company (Huawei) or ZTE Corporation (ZTE)
that was obtained by providers on or before June 30, 2020.4
2.
The Secure Networks Act called for the Commission to adopt regulations requiring the
removal of all covered communications equipment or services “from the network of the recipient in order
to prevent such equipment or services from being used in the networks of providers of advanced
communications service.”5 The Commission interpreted this provision as “requiring the destruction of the
equipment or service by the recipient so as to make the equipment or service inoperable and incapable of
use.”6 The Commission thus adopted section 1.50004(j) of its rules in the 2020 Supply Chain Order,
which states as follows:
Reimbursement program recipients must dispose of the covered communications
equipment or service in a manner to prevent the equipment or service from being used in
the networks of other providers of advanced communications service. The disposal must
result in the destruction of the covered communications equipment or service, making the
covered communications or service inoperable permanently. Reimbursement Program
recipients must retain documentation demonstrating compliance with this requirement.7
The Commission said, in adopting this rule, that it expected Wireline Competition Bureau (Bureau) “to
provide additional guidance to help participants with the disposal and verification process.”8
Accordingly, the Bureau hereby provides the following guidance and suggested best practices to help
guide Reimbursement Program participants through the disposal and verification process.

Secure and Trusted Communications Networks Act of 2019, Pub. L. No. 116-124, § 4, 134 Stat. 158 (2020)
(codified as amended at 47 U.S.C. §§ 1601–1609) (Secure Networks Act), amended by, Consolidated
Appropriations Act, 2021, Pub. L. No. 116–260, § 901, 134 Stat. 1182 (2020).
2

Protecting Against National Security Threats to the Communications Supply Chain Through FCC Programs, WC
Docket No. 18-89, Second Report and Order, 35 FCC Rcd 14284, 14330-68, paras. 106-208 (2020) (2020 Supply
Chain Order); see 47 CFR § 1.50004 et seq. The Commission’s rules for the Reimbursement Program adopted in
the 2020 Supply Chain Order were subsequently revised in the 2021 Supply Chain Order. See Protecting Against
National Security Threats to the Communications Supply Chain Through FCC Programs, WC Docket No. 18-89,
Third Report and Order, FCC 21-86, 2021 WL 3024271 (Jul. 14, 2021) (2021 Supply Chain Order).
3

47 U.S.C. § 1603.

See 2021 Supply Chain Order at 8-17, paras. 18-36

Secure Networks Act § 4(d)(7); 47 U.S.C. § 1603(d)(7).

2020 Supply Chain Order, 35 FCC Rcd at 14357-58, paras. 178.

47 CFR § 1.50004(j).

2020 Supply Chain Order, 35 FCC Rcd at 14358, para. 179; see id. at 14357-58, paras. 178-179.

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II.

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THE DISPOSAL PROCESS
A.

Introduction to the Disposal Process

3.
These best practices address how covered communications equipment or services should
be securely stored, documented, and transported throughout the disposal and verification process. These
best practices also cover how equipment or services should be categorized, sanitized, destroyed, and
recycled. Although voluntary, the Bureau believes that the best practices set forth in this guidance would
comply with the requirements set forth in section 1.50004(j) of the Commission’s rules. The Bureau will
consider Reimbursement Program participant’s disposal and verification methods reasonable and in
compliance with section 1.50004(j) of the Commission’s rules if the best practices are followed.
Reimbursement Program participants are not, however, required to follow these best practices and may
employ alternative compliance measures. For providers undertaking a different disposal process, the
Commission will review the specific circumstances but may find that the processes do not comply with
the disposal and verification requirements contained in section 1.50004(j) of the Commission’s rules.
4.
Non-compliance can result in the assessment of fines and forfeitures by the Commission.9
In addition, non-compliance can result in additional enforcement actions provided for in section 1.50005
of the Commission’s rules, which includes the repayment of Reimbursement Program funding.10 The
Office of Managing Director (OMD), or a third-party identified by OMD, will conduct audits and field
investigations to ensure Reimbursement Program participants are acting in compliance with the
Commission’s rules.11 These audits and field investigations will include the inspection of documentation
to verify compliance with the disposal and verification requirements in section 1.50004(j) of the
Commission’s rules.12
5.
In considering these best practices, we emphasize that the disposal and verification
requirements contained in section 1.50004(j) of the Commission’s rules only apply to “covered”
communications equipment and services.13 For purposes of the Reimbursement Program, including the
disposal and verification requirements, the Commission has interpreted “covered” communications
equipment and service to mean equipment and services produced or provided by Huawei and ZTE that
was obtained by the provider on or before June 30, 2020.14 Further, the Commission has stated that
“covered” communications equipment and service includes “all equipment or services used in fixed and
mobile broadband networks, provided they include or use electronic components.”15 To the extent
providers are removing and disposing of other equipment and services that are not considered covered
communications equipment and services, and thus not subject to section 1.50004(j) of the Commission’s
rules, we would expect such providers to dispose and recycle their non-covered equipment and services in
an environmentally responsible manner.

47 U.S.C. § 503; 47 CFR § 1.80.

47 U.S.C. § 1606; 47 CFR § 1.50005.

Id. § 1.50004(o).

2020 Supply Chain Order, 35 FCC Rcd at 14362, para. 193; 47 CFR § 1.50004(j), (n); see 47 U.S.C. § 1603(e).

47 CFR § 1.50004(j).

See 2021 Supply Chain Order at 10, para. 23; id. at 14, para. 31 (“By revising the scope of equipment and services
eligible for reimbursement, we provide clarity to providers of advanced communications service as to the
expectations for participation in the Reimbursement Program and assurance as to what costs associated with the
removal, replacement, and disposal of covered equipment and services they can expect to be reimbursed, if
accepted.”).
15

Id. at 8, para. 20 (emphasis added); see also 2020 Supply Chain Order, 35 FCC Rcd at 14309, para. 52 (“We
believe that all equipment or services that include or use electronic components can be reasonably considered
essential to broadband networks . . . .”).

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6.
Disposal Best Practices Overview. The disposal process begins with the removal of the
covered communications equipment or service from Reimbursement Program participants’ networks.
The equipment should be carefully inventoried and sorted into different categories for destruction or
recycling based on the equipment’s underlying capabilities and whether the equipment contains network
or customer identifiable information. Any equipment that processes and retains data such as network or
customer identifiable information should also go through media sanitization before destruction.16 All
equipment that can be recycled should be tracked and shipped directly to a certified electronic waste (ewaste) recycler. Reimbursement Program participants should retain certificates of media disposition and
certificates of destruction for all equipment that processes and retains data long-term. Maintaining
detailed documentation of the disposal process from removal to destruction or recycling of the equipment
is essential to demonstrating compliance with the Reimbursement Program’s disposal requirements.17
B.

Removal, Storage, and Transportation of Covered Communications Equipment

7.
Throughout the removal process, covered communications equipment should be carefully
inventoried, and securely stored and shipped. The equipment should be handled in a secure manner
throughout the entire removal, replacement, and disposal process. During the removal process the
Reimbursement Program participant should maintain a detailed and comprehensive inventory of all
covered communications equipment removed from their networks. If the removal of the covered
communications equipment spans multiple days, the Reimbursement Program participant should maintain
a log detailing what equipment was removed each day from each site. After removal, if the covered
communications equipment cannot be immediately transferred to a certified disposal service or e-waste
recycler, the Reimbursement Program participant should store the equipment in a secure manner. Once
the equipment is ready to ship, the Reimbursement Program participant should select a disposal company
with an in-house freight capacity, individual freight carriers with experience handling freight for sensitive
equipment, or asset management vendors that use secure shipping methods to transfer the equipment. If a
delay occurs between the arrival of the equipment at the disposal service or e-waste recycler and the
processing of the equipment, the Reimbursement Program participant should ensure that the disposal
service or e-waste recycler store the equipment in a secure manner until destruction or recycling. The
Reimbursement Program participant should be able to show a clean chain of custody from its site to the
disposal company or recycler.
C.

Identifying the Appropriate Disposal Process

8.
The purpose of the disposal process is to ensure that all covered Huawei and ZTE
communications equipment is removed from the providers’ networks and rendered permanently
“inoperable.”18 Making communications equipment and services inoperable will prevent the reuse of
such equipment and service, or any component of the equipment or service, in another provider’s
network, thus preventing the introduction of an increased security risk in another provider’s network. In
the 2020 Supply Chain Order, the Bureau clarified that the Secure Networks Act did not “permit the
transfer of covered communications equipment or service to non-U.S. providers in an operable state” as a
means of disposing of the covered equipment.19 Reimbursement Program participants are thus prohibited
from transferring any covered equipment in an operable state outside of the United States including for

See Wireline Competition Bureau Seeks Comment on a Report and Preliminary Cost Catalog and Replacement
List to Help Providers Participate in the Secure and Trusted Communications Networks Reimbursement Program,
WC Docket No. 18-89, Public Notice, DA 21-355, Attach. 1 at 70-72 (WCB Mar. 25, 2021) (Cost Catalog Public
Notice); see generally 47 U.S.C. § 222 (discussing the responsibility of the provider to “protect the confidentiality of
proprietary information” including customer information).
17

See 2020 Supply Chain Order, 35 FCC Rcd at 14358, paras. 179; 47 CFR § 1.50004(j).

See 2020 Supply Chain Order, 35 FCC Rcd at 14357-58, paras. 178-79; 47 CFR § 1.50004(j).

2020 Supply Chain Order, 35 FCC Rcd at 14358, para. 179.

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recycling or destruction purposes.20 Proper disposal of covered equipment should render the equipment
permanently inoperable on any network, foreign or domestic.21
9.
The disposal process will vary depending on the underlying nature and capabilities of the
equipment.22 The Bureau suggests that covered communications equipment be sorted into three
categories for the disposal process, with higher expectations of destruction for Categories 1 and 2 due to
the capabilities of that equipment. Category 1 includes equipment that processes and retains network or
customer identifiable information long-term.23 Category 2 includes equipment that processes data but
does not retain any network or customer identifiable information. Category 3 includes equipment that has
no data processing or retention capacity.
Table 1 – Categorization of Covered Equipment for Disposal
Categorization: Suggested Minimum
Steps for Disposal:

Equipment Criteria:

Illustrative Examples:

Category 1

Equipment
necessitating: (1)
media sanitization, (2)
destruction, and (3)
recycling.

Equipment that processes
and retains data.

• Mobility Management
Entity (MME);
• Home Subscriber
Server (HSS).24

Category 2

Equipment
necessitating: (1)
destruction and (2)
recycling.

Equipment that processes
data but does not retain
data.

• Antenna Array Units
(AAU);
• Radio Units (RU);
• Baseband Units
(BU/BBU);
• Control Units (CU).

Category 3

Equipment
necessitating: (1)
recycling.

Equipment or components
that do not have data
processing capabilities.

• Cables;
• Brackets, cabinets;

See id. Reimbursement Program participants, however, may transfer the recycled raw materials derived from
destroyed, inoperable, equipment outside the United States.
21

2020 Supply Chain Order, 35 FCC Rcd at 14358, para. 179; see 47 CFR § 1.50004(j).

See generally Cost Catalog Public Notice, 36 FCC Rcd at 5847-49, Attach. 1 at 70-72 (making the distinction
between sensitive and non-sensitive covered communications equipment).
23

See generally 47 U.S.C. § 222; Cybersecurity and Infrastructure Security Agency, Supply Chain Risks for
Information and Communication Technology (Dec. 2018), https://www.cisa.gov/sites/default/files/publications/19_
0424_cisa_nrmc_supply-chain-risks-for-information-and-communication-technology.pdf (listing improper disposal
of information and communication technology as a supply chain risk).
24

MME manages the “control plane” and “signaling related to mobility and security.” HSS is a database containing
user and subscriber information that supports “mobility management, call and session setup, user authentication and
access authorization.” Frédéric Firmin, 3rd Generation Partnership Project (3GPP), The Evolved Packet Core,
https://www.3gpp.org/technologies/keywords-acronyms/100-the-evolved-packet-core#:~:text=Basically%
2C%20the%20HSS%20(for%20Home,user%20authentication%20and%20access%20authorization (last visited Aug.
10, 2021); see Magnus Olsson, et al., EPC and 4G Packet Networks, Ch. 10 (2nd Ed. 2013); Wireline Competition
Bureau Finalizes Application Filings, Procedures, Cost Catalog, and Replacement List for the Secure and Trusted
Communications Networks Reimbursement Program, WC Docket No. 18-89, Public Notice, DA 21-947, Appx. C at
19, § 3.1.0 (WCB Aug. 3, 2021) (Finalized Reimbursement Process Public Notice) (listing enhanced packet core
(EPC) cost categories for MME and HSS including a range of estimated costs).

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Categorization: Suggested Minimum
Steps for Disposal:

Equipment Criteria:

DA 21-1234

Illustrative Examples:
• miscellaneous
components.25

10.
Category 1 is comprised of all covered communications equipment that “poses an
unacceptable risk to the national security of the United States or the security and safety of United States
persons” and should be disposed of under a heightened standard. 26 This includes all equipment that
processes and retains network, proprietary, or customer identifiable information,27 or other information
that poses an unacceptable risk to the security and safety of United States persons. Because such
equipment retains data, we recommend all data on Category 1 equipment should first be wiped clean of
any data, i.e., sanitized, before securely destroying. By destroying, equipment should be shredded or
pulverized and the byproduct smelted down to its raw materials by a disposal company registered with the
U.S. Department of State’s Directorate of Defense Trade Controls (DDTC) pursuant to the International
Traffic in Arms Regulations (ITAR).28 A certificate of media disposition29 and a certificate of
destruction should be retained to provide assurance that Category 1 equipment was properly destroyed.
To the extent that equipment exists that combines multiple functionalities falling in more than one
category, e.g. equipment includes components falling in both Category 1 and 2, then the equipment
should be destroyed in accordance with the guidelines set out for Category 1.
11.
Category 2 is comprised of all electronic covered communications equipment that
processes data but does not retain data, particularly network or customer identifiable information. This
type of equipment raises an increased concern if it, or any component of it, are reused in another
provider’s network. Accordingly, we recommend that Category 2 equipment be destroyed (e.g.,
disintegrate, pulverize, melt, and incinerate), and the byproduct (i.e., inoperable component parts or raw
materials) recycled by a certified e-waste recycler. Most covered electronic communications equipment
will likely fall under Category 2. A certificate of destruction should be retained to provide assurance that
the equipment was properly destroyed.
12.
Category 3 is comprised of all covered communications equipment that does not have the
capacity to retain or process data. Examples of equipment that falls under Category 3 could conceivably
include, but is not limited to, cabinets and equipment racks to the extent such communications equipment
includes an “electronic component.” Because this type of covered communications equipment lacks the
ability to retain or process data, there is less of a concern of introducing a new security risk if reused in
another provider’s network. We therefore adjust the disposal process best practices accordingly to merely
recommend that such equipment be recycled by a certified e-waste recycler. We do not, however, find
total destruction of this category of equipment necessary to prevent the reintroduction of a security risk
25

This disposal guidance applies only to covered communications equipment and service, i.e., communications
equipment produced or provided by Huawei or ZTE that includes or uses electronic components.
26

See Secure Network Act § 2(b); 47 U.S.C. § 1601(b).

See 47 U.S.C. § 222 (requirements for telecommunications carriers to protect customer proprietary information).

See Letter from Andrew C. McManus, General Manager, Gannon & Scott, to Marlene H. Dortch, Secretary, FCC,
WC Docket No. 18-89 (Aug. 31, 2021) (Gannon & Scott Ex Parte); Letter from Brodie Ehresman, Director of
Marketing and Business Development, Advanced Technology Recycling, to Marlene H. Dortch, Secretary, FCC,
WC Docket No. 18-89 (Sept. 3, 2021) (ATR Ex Parte); see generally 22 CFR §§ 120-130; U.S. Dept. of State,
Directorate of Defense Trade Controls, The International Traffic in Arms Regulations, https://www.pmddtc.state.
gov/ddtc_public?id=ddtc_kb_article_page&sys_id=%2024d528fddbfc930044f9ff621f961987 (last visited Sept. 17,
2021).
29

See supra note 32.

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into another providers network. Accordingly, a certificate of destruction is not necessary for Category 3
equipment. We will consider such equipment as “inoperable” if permanently dismantled from other
communications equipment and services and it is unable to be reconnected to any other communications
equipment. We understand that it may be more efficient for a destruction company to destroy and recycle
a large amount of equipment at once, for example, by destroying all equipment in a box at one time that
may include a combination of the categories equipment described below, and defer to both the provider
and destruction company as to the most efficient process to achieve the required disposal obligation.
D.

Media Sanitization

13.
We recommend all Category 1 covered communications equipment be sanitized before
its destruction or recycling to prevent unauthorized access to information contained on the media.
Sanitization should occur in accordance with the National Institutes of Standards and Technology (NIST)
Special Publication 800-88 Revision 1, Guidelines for Media Sanitization (NIST Media Sanitization
Guidelines).30 At a minimum, media sanitization should include processes to clear (i.e., overwrite data),
purge data rendering recovery infeasible, or destroy media (e.g., pulverize, incinerate, etc.).31 Media
sanitization renders the underlying data irretrievable. After the digital media is securely sanitized, the
remaining equipment should be physically destroyed and the byproduct recycled by a certified e-waste
recycler. Following sanitization and consistent with NIST Media Sanitization Guidelines, we recommend
for a certificate of media disposition to be completed to document each piece of electronic media that is
sanitized.32
E.

Equipment Destruction

14.
To ensure the proper destruction of covered equipment, we recommend choosing a
qualified U.S. disposal company that can perform destruction services and provide sufficient
documentation evidencing the destruction of the equipment. At a minimum, the disposal company should
be able to provide the Reimbursement Program participant with a certificate of destruction. The
Commission prohibited the transfer of operable covered communications equipment or service to nonU.S. providers. Providers cannot transfer the covered communications equipment or service to facilities
located outside the United States because equipment that has not yet been disposed of is still operable.
Thus, we recommend providers use U.S. disposal companies that conduct the disposal process on U.S.
soil.33 In choosing a qualified disposal company, we recommend selecting vendors that are certified to
provide complete asset management solutions, from removal to destruction, including transportation and
chain of custody tracking. Reimbursement Program participants should select disposal vendors that are
certified by reputable standards-setting bodies, particularly those that require registration and subject
providers to audit, to comply with their disposal obligations under the Reimbursement Program.
15.
We recommend Reimbursement Program participants use companies registered with the
U.S. Department of State’s Directorate of Defense Trade Controls (DDTC) pursuant to the International
Traffic in Arms Regulations (ITAR). While the covered communications equipment may or may not fall
within the scope of ITAR, we find that an ITAR-registered disposal company will likely have the
procedures in place and the facilities necessary to effectively handle the safe and secure destruction of
covered communications equipment, including the most sensitive equipment.34 ITAR-registered
30

Richard Kissel, et al., National Institute of Standards and Technology (NIST), U.S. Dept. of Commerce,
Guidelines for Media Sanitization, Special Publication 800-88 Rev. 1 (Dec. 2014), https://nvlpubs.nist.gov/nistpubs/
SpecialPublications/NIST.SP.800-88r1.pdf (NIST Media Sanitization Guidelines).
31

See id. at 8-9, § 2.5.

See id. at 22-23, § 4.8; id. at 56, Appx. G, Sample Certificate of Media Sanitization Form.

See 2020 Supply Chain Order, 35 FCC Rcd at 14358, para. 179.

The DDTC offers a tool to help users determine whether an article is subject to ITAR. See DDTC,
https://www.pmddtc.state.gov/ddtc_public?id=ddtc_public_portal_dt_order_of_review (last visited Sept. 17, 2021).

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companies are required to maintain records concerning manufacture, acquisition, and disposition of
defense articles, including technical data, subject to ITAR,35 and are subject to civil and criminal penalties
for violations.36 Moreover, According to ex parte submissions in this docket from ITAR-registered
companies Advanced Technology Recycling and Gannon & Scott,37 ITAR-registered disposal companies
may also hold an e-waste recycling certification and be able provide media sanitization services, allowing
for a one-stop disposal facility to handle the disposal of different categories of equipment and able to
provide the necessary documentation for providers to verify compliance with section 1.50004(j) of the
Commission’s rules.
F.

Selecting a Certified Electronic Waste Recycler

16.
If Reimbursement Program participants do not have the disposal vendor destroy and
recycle all their covered communications equipment, the Bureau recommends Reimbursement Program
participants use certified electronic recyclers endorsed by the Environmental Protection Agency (EPA) to
ensure that equipment is disposed of in a secure and environmentally responsible manner. 38 Certified
electronic (e-waste) recyclers are subject to auditing by an independent accreditation body and held to
strict quality standards.39 Improper disposal of e-waste raises the risk of both environmental and public
health harms.40 Moreover, incomplete destruction of covered communications equipment jeopardizes
national security by risking the possibility of equipment or its components being re-sold or transferred out
of the United States.41 For e-waste disposal, EPA guidelines recommend the use of recyclers certified by
either: (1) Responsible Recycling (R2) Standard for Electronics Recyclers; or (2) e-Stewards Standard for
Responsible Recycling and Reuse of Electronic Equipment (e-Stewards).42 Certifications issued by R2 or
e-Stewards provide standards for e-waste disposal that are environmentally responsible and offer

See 22 CFR § 122.5(a).

See id. § 127.3.

See ATR Ex Parte at *2; Gannon & Scott Ex Parte.

EPA, Certified Electronics Recyclers, https://www.epa.gov/smm-electronics/certified-electronics-recyclers (last
visited Jun. 18, 2021).
39

See id.

See e.g., Damian Carrington, $10bn of precious metals dumped each year in electronic waste, says UN, The
Guardian (Jul. 22, 2020), https://www.theguardian.com/environment/2020/jul/02/10bn-precious-metals-dumpedeach-year-electronic-waste-un-toxic-e-waste-polluting. For a comprehensive overview of e-waste statistics, laws,
and the impact on the environment and human health in the year 2020, see generally Vanessa Forti, et al., United
Nations University, United Nations Institute for Training and Research, SCYCLE Programme, International
Telecommunication Union, and International Solid Waste Association, The Global E-waste Monitor 2020:
Quantities, flows and the circular economy potential (2020), https://globalewaste.org/proxy/?publication=/v1/file/
271/The-Global-E-waste-Monitor-2020-Quantities-flows-and-the-circular-economy-potential.zip.
41

See generally 2020 Supply Chain Order, 35 FCC Rcd at 14358, para. 179. Using recyclers that have not been
certified increases the risk of improper disposal or potential fraud. See United States Attorney’s Office District of
Colorado, Executive Recycling Company And Executives Sentenced For Fraud And International Environmental
Crimes (Jul. 23, 2013), https://www.justice.gov/usao-co/pr/executive-recycling-company-and-executives-sentencedfraud-and-international (recycling company executives fraudulently exported e-waste overseas after making
representations that the waste would be disposed of in compliance with EPA standards and U.S. law).
42

The EPA assessed the standards that both e-Stewards and R2 certified recyclers are held to without making any
determinations of which program is more successful. EPA, Frequent Questions about the Implementation Study of
R2 and e-Stewards Certification Programs, https://www.epa.gov/smm-electronics/frequent-questions-aboutimplementation-study-r2-and-e-stewards-certification#external%206 (last visited Jun. 20, 2021).

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responsible asset management.43 Reimbursement Program participants may elect to choose a certified
recycler with other certifications in addition to R2 or e-Stewards certifications.44 Recyclers can also hold
certifications from third party standards-setting bodies that independently audit practices such as, for
example, companies certified compliant with International Organization for Standardization (ISO) 14001
standards for environmental management systems, including certification and audit processes, consistent
with statutory and regulatory requirements.45 e-Stewards standards, for example, incorporate certain ISO
14001 standards.46
17.
R2. R2 certified recyclers are issued certification through the certifying body Sustainable
Electronics Recycling International (SERI) and are subject to auditing to ensure compliance with SERI’s
standards.47 R2 offers recyclers who provide data destruction services and provides environmentally
responsible recycling services.48 There are over 600 R2-certified recycling facilities, including
refurbishers, brokers, and warehouse sites, operating in the United States which Reimbursement Program
participants can locate on R2’s webpage.49
18.
E-Stewards. Recyclers certified by e-Stewards receive certification through the Basal
Action Network (BAN) and are subject to auditing to ensure compliance with BAN’s standards.50 EStewards provides data destruction services and environmentally responsible recycling services.51 There
are over 1,400 e-Stewards-certified recyclers operating in the United States, including recycling,
refurbishing, and consumer drop-off sites, which Reimbursement Program participants can locate on eSteward’s webpage.52
19.
Alaska and Hawaii. We acknowledge there are no R2 or e-Stewards certified recyclers
operating in Hawaii or Alaska so Reimbursement Program participants operating in these areas will need
to find alternative reliable e-waste recycling partners or will need to securely transport covered equipment
to a State where an R2- or e-Stewards-certified recycler is located.
43

See generally EPA, Certified Electronics Recyclers, https://www.epa.gov/smm-electronics/certified-electronicsrecyclers (last visited Jun. 18, 2021); Letter from Jared M. Carlson, Vice President, Government Affairs and Public
Policy, Ericsson, to Marlene H. Dortch, Secretary, FCC, WC Docket No. 18-89, at 1 (filed June 18, 2021) (Ericsson
June 18, 2021 Ex Parte).
44

See EPA, Certified Electronics Recyclers, https://www.epa.gov/smm-electronics/certified-electronics-recyclers
(last visited Jun. 18, 2021); Ericsson June 18, 2021 Ex Parte at 1.
45

See ISO, Certification & Conformity, https://www.iso.org/conformity-assessment.html (last visited Aug. 13,
2021); ISO, ISO 14001: Key Benefits, https://www.iso.org/files/live/sites/isoorg/files/store/en/PUB100372.pdf (last
visited Aug. 13, 2021); see also Ericsson June 18, 2021 Ex Parte at 1 (Ericsson requires its recycling providers to
follow certain standards including ISO 9001 and ISO 14001). As of 2019, there were 3,671-certified ISO 14001
providers in the United States. See ISO, ISO Survey 2019, https://www.iso.org/the-iso-survey.html (last visited Aug.
13, 2021).
46

See e-Stewards, Frequently Asked Questions: Consumer Questions, http://e-stewards.org/faq/?choice=consumer
(last visited Aug. 11, 2021).
47

SERI, About SERI, https://sustainableelectronics.org/about-story-and-mission/ (last visited Jun. 18, 2021).

SERI, R2 Business Solutions, https://sustainableelectronics.org/business-solutions/#telecom (last visited Jun. 18,
2021).
49

SERI, Find R2 Certified Facilities, https://sustainableelectronics.org/find-an-r2-certified-facility/ (last visited
Aug. 11, 2021).
50

e-Stewards, The e-Stewards Story, http://e-stewards.org/about-us/the-e-stewards-story/ (last visited Jun. 20, 2021).

e-Stewards, What’s the e-Stewards Standard?, http://e-stewards.org/learn-more/for-enterprises/overview/whatsthe-e-stewards-standard/ (last visited Jun. 20, 2021).
52

See e-Stewards, Find a Recycler, http://e-stewards.org/find-a-recycler/ (last visited Aug. 12, 2021).

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DOCUMENTATION DEMONSTRATING COMPLIANCE

20.
Documentation. The Secure Networks Act authorized the Commission to undertake
“regular audits and reviews of reimbursements”53 and engage in “random field investigations”54 in order
to ensure that Reimbursement Program participants are complying with the requirements of the
Reimbursement Program.55 In the 2020 Supply Chain Order, the Bureau advised Reimbursement
Program participants to “retain all documentation related to their requests for funding reimbursement for
actual expenses incurred” for a period of ten years. 56 Thus, “[r]egardless of the method of disposal or
destruction, [the Commission] require[s] participants to retain detailed documentation to verify
compliance with this requirement.”57
21.
Reimbursement Program participants should retain documentation for each step of the
removal, replacement, and disposal process.58 The Bureau suggests that Reimbursement Program
participants retain documentation for each step of the disposal process providing clear documentation of
the process from the removal of the equipment to the final destruction and recycling. As a best practice,
certificates of destruction should be retained to document the destruction of all covered communications
equipment that processes data or has the ability to retain information.59 As a best practice, a certificate of
destruction should contain at least the following information: manufacturer of the equipment, model,
serial number, media sanitization information (if applicable), source of the equipment (i.e.,
Reimbursement Program participant/specific cell site), categorization of the equipment (i.e., Category 1,
2, or 3), type of destruction method, destruction equipment used, information of the person(s) completing
the destruction process including name, title, date, location, and contact information.60
22.
Similarly, certificates of media disposition should be retained for all equipment that is
subject to data sanitization before the destruction and recycling of the physical equipment.61 The NIST
Media Sanitization Guidelines suggest that the following information should be included on certificates of
disposition: manufacturer of equipment, model, serial number, media type, media source (i.e.,
Reimbursement Program participant/specific cell site), categorization of the equipment, type of
sanitization method, sanitization tool, method of verification for sanitization, post-sanitization destination,
and information of the person who completed the sanitization and verification including name, title, date,
location, and contact information.62
23.
As a best practice, Reimbursement Program participants should maintain a “chain of
custody” for removed covered communications equipment awaiting destruction or recycling.63 Each time
53

Secure Networks Act § 4(e)(3)(a); 47 U.S.C. § 1603(e)(3)(a).

Secure Networks Act § 4(e)(3)(b); 47 U.S.C. § 1603(e)(3)(b).

Secure Networks Act § 4(e)(3); 47 U.S.C. § 1603(e)(3).

2020 Supply Chain Order, 35 FCC Rcd at 14361, para. 192.

Id. at 14358, para. 179.

See id.

See supra section II.B.

These guidelines are based on the NIST Media Sanitization Guidelines at 22-23, § 4.8.

NIST provides detailed guidelines of what information should be recorded in a certificate of media sanitization
and an example certificate of media sanitization. See NIST Guidelines for Media Sanitization at 16-23, § 4. For an
example certificate of media sanitization, see NIST Media Sanitization Guidelines at 56, Appx. G.
62

Id. at 22-23.

See Cost Catalog Public Notice, 36 FCC Rcd at 5849, Appx. A at 72 (“Once the sensitive equipment is removed
and documented at the site, a secure ‘chain of custody’ will need to be kept until the equipment arrives, and is
verified, at the certified recycler”).

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covered communications equipment is removed from a site the Reimbursement Program participant
should make a detailed inventory of all items removed from the site. This inventory should be dated by
the date of removal and include how the items are being destroyed, where the equipment is being shipped,
and the means of transportation to the recyclers. If the removal process spans a period of several days or
weeks, then the inventory should include what equipment was removed each day. This documentation
could take the form of short affidavits by the removal workers detailing the equipment they removed from
the site each day. If the equipment is stored for any period of time before being transported to the
disposal facility the program participant should retain documentation showing that the equipment was
securely stored. This documentation could include receipts for storage facilities, affidavits attesting to the
storage conditions, and photographic or video documentation.
24.
For covered communications equipment being shipped or deposited at recyclers,
Reimbursement Program participants should retain the shipping or transportation documentation. This
documentation should include a detailed inventory of the equipment being shipped supported by an
affidavit, the date of shipment, the destination, the name of the transportation service, and documentation
showing that the shippers used a secure means of transportation. The Reimbursement Program
participant should also retain detailed documentation throughout the destruction and recycling phase of
the disposal process. This documentation should include the initial contract with the vendor,64 an
inventory of all recycled and destroyed equipment, and certificates of media disposition and equipment
destruction when applicable. If equipment is stored at the recyclers before it is destroyed the
Reimbursement Program participant should retain documentation that indicates the length of time the
equipment was stored and evidence that the equipment was stored in a secure manner. This could include
contractual specifications that the equipment be stored securely, affidavits of the recyclers, and
photographic or video documentation.
IV.

CONCLUSION

25.
These recommended best practices will help ensure the security of sensitive data
processed or retained on the covered communications equipment including network and customer
proprietary information from unauthorized access. These best practices will also help Reimbursement
Program participants in complying with the requirements of section 1.50004(j) of the Commission’s rules,
to ensure covered communications equipment and service, posing an unacceptable risk to the national
security of the United States or the security and safety of United States persons, are made inoperable and
recycled in an environmentally safe manner.
***

If the initial contract with the vendor is insufficient to show that a certified recycler was used, the Reimbursement
Program participant should also retain documentation showing that a certified recycler was used for the final
disposal after data or equipment destruction.

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APPENDIX B
Revised Certifications for FCC Form 5640: SCRP Application Request for Funding Allocation,
Section 1.50004(c) (Part C):
By checking the box and providing the electronic signature where indicated below, the Certifying Official
on behalf of the Applicant certifies under penalty of perjury that:
1. The Certifying Official is authorized to submit this request for funding allocation on behalf of the
above-named Applicant and, based on information known to me or provided to me by employees
responsible for the information being submitted, the information set forth in this request for
funding allocation has been examined and is true, accurate, and complete. The Certifying
Official acknowledges that any false, fictitious, or fraudulent information or statement, or the
omission of any material fact on this or on any other documents submitted by the Applicant may
subject the Applicant and the undersigned to punishment by fine or forfeiture under the
Communications Act (47 U.S.C. §§ 502, 503(b), 1606), or fine or imprisonment under Title 18 of
the United States Code (18 U.S.C. § 1001, §§ 286-287, and § 1343), or can lead to liability under
the False Claims Act (31 U.S.C. §§ 3729-3733, and §§ 3801-3812).
2. The Applicant will comply with the statute, rules, and orders governing the Reimbursement
Program, including but not limited to allocations, draw downs, payments, obligations and
expenditures of money, and the Certifying Official acknowledges that failure to be in compliance
and remain in compliance with those statutes, rules, and orders may result in the denial of
funding, cancellation of funding commitments, and/or recoupment of past disbursements. The
Certifying Official acknowledges that failure to comply with the statute, rules, and orders
governing the Reimbursement Program could result in civil or criminal prosecution by law
enforcement authorities.
3. The Applicant as of the date of submission of this application has developed a specific plan and
timeline for the permanent removal, replacement, and disposal of covered communications
equipment or service.
4. If the application is approved, and then starting from the approval date of the application, the
Applicant: (1) will not purchase, rent, lease or otherwise obtain covered communications
equipment or service published by the Commission under 47 U.S.C. § 1601(a), using
reimbursement funds (including funds derived from private sources) and (2) in developing and
tailoring risk management practices, will consult and consider the standards, guidelines, and best
practices set forth in the cybersecurity framework developed by the National Institute of
Standards and Technology.
5. The Applicant’s cost estimates claimed as eligible for reimbursement were made in good faith
and are limited to only the portion of the costs that will be reasonably incurred for the removal,
replacement, and disposal of covered equipment and services in accordance with the Secure and
Trusted Communications Networks Act of 2019, as amended, Pub. L. 116-124 § 4 (47 U.S.C. §
1603) and the Commission’s rules (47 CFR § 1.50004).
6. The Applicant will use all money received from the Reimbursement Program only for expenses
eligible for reimbursement in accordance with the Reimbursement Program rules, orders, and
statute (47 U.S.C § 1603).
1

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7. The Applicant will file all required documentation for its expenses.
8. The Applicant will not use Reimbursement Program funds for any portion of expenses that have
been or will be reimbursed by other sources of funding (e.g., Federal pandemic relief funding
such as the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Emergency
Broadband Benefit Program, or other provisions of the American Rescue Plan; targeted state
funding; other external sources of targeted funding; or other universal service support
mechanisms).
9. The Applicant will maintain detailed records, including receipts, of all costs claimed as eligible
for reimbursement for a period of ten years.
10. The Applicant recognizes that it may be subject to an audit, inspection or investigation pursuant
to its request for funding allocation, that it will retain for ten years any and all records related to
its participation in the program as required by 47 CFR § 1.50004(n), and will make such records
and equipment purchased with Reimbursement Program reimbursement available at the request
of any representative (including any auditor) appointed by the Commission and its Office of
Inspector General, or any local, state, or Federal agency with jurisdiction over the entity.
11. No kickbacks, as defined in 41 U.S.C. § 8701 and/or 42 U.S.C. § 1320a-7b, were paid or received
by the Applicant to anyone in connection with the Reimbursement Program.

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Revised Certifications for FCC Form 5640: SCRP Reimbursement Claim Request, Section
1.50004(g) (Part G):
By checking the box and providing the electronic signature where indicated below, the Certifying Official
on behalf of the Applicant certifies under penalty of perjury that:
1. The Certifying Official is authorized to submit this request for reimbursement on behalf of the
Applicant and, based on information known to me or provided to me by employees responsible
for the information being submitted, the information set forth in this request for reimbursement
has been examined and is true, accurate, and complete, and the expenditures, disbursements and
cash receipts are for the purposes and objectives set forth in the terms and conditions of the
Federal award. The Certifying Official acknowledges that any false, fictitious, or fraudulent
information or statement, or the omission of any material fact on this request for reimbursement
or on any other document submitted by the Applicant may subject the Applicant and the
undersigned to punishment by fine or forfeiture under the Communications Act (47 U.S.C. §§
502, 503(b), 1606), or fine or imprisonment under Title 18 of the United States Code (18 U.S.C. §
1001, §§ 286-287, and § 1343), or can lead to liability under the False Claims Act (31 U.S.C. §§
3729-3733, and §§ 3801-3812).
2. The Applicant is in compliance with the statute, rules, and orders governing the Reimbursement
Program, including but not limited to allocations, draw downs, payments, obligations and
expenditures of money, and the Certifying Official acknowledges that failure to be in compliance
and remain in compliance with those statutes, rules, and orders may result in the denial of
funding, cancellation of funding commitments, and/or recoupment of past disbursements. The
Certifying Official acknowledges that failure to comply with the statute, rules, and orders
governing the Reimbursement Program could result in civil or criminal prosecution by law
enforcement authorities.
3. The Applicant has filed all required documentation for its expenses to be reimbursable under the
Reimbursement Program rules.
4. The amounts claimed for reimbursement are limited to only the portion of the costs that were or
will be reasonably incurred for the removal, replacement, and disposal of covered
communications equipment and services in accordance with the Secure and Trusted
Communications Networks Act of 2019, as amended, Pub. L. 116-124 § 4 (47 U.S.C. § 1603) and
the Commission’s rules (47 CFR § 1.50004).
5. The Applicant as of the date of this submission has developed a specific plan and timeline for the
permanent removal, replacement, and disposal of covered communications equipment or service.
6. The Applicant: (1) will not purchase, rent, lease or otherwise obtain covered communications
equipment or service published by the Commission under 47 U.S.C. § 1601(a), using
reimbursement funds (including funds derived from private sources) and (2) in developing and
tailoring risk management practices, will consult and consider the standards, guidelines, and best
practices set forth in the cybersecurity framework developed by the National Institute of
Standards and Technology.
7. The Applicant will not use Reimbursement Program funds for any portion of expenses that have
been or will be reimbursed by other sources of funding (e.g., Federal pandemic relief funding
3

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such as the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Emergency
Broadband Benefit Program, or other provisions of the American Rescue Plan; targeted state
funding; other external sources of targeted funding; or other universal service support
mechanisms).
8. The Applicant recognizes that it may be subject to an audit, inspection or investigation pursuant
to its request for reimbursement, that it will retain for ten years any and all records related to its
participation in the program as required by 47 CFR § 1.50004(n), and will make such records and
equipment purchased with Reimbursement Program reimbursement available at the request of
any representative (including any auditor) appointed by the Administrator, the Commission and
its Office of Inspector General, or any local, state, or Federal agency with jurisdiction over the
entity.
9. No kickbacks, as defined in 41 U.S.C. § 8701 and/or 42 U.S.C. § 1320a-7b, were paid or received
by the Applicant to anyone in connection with the Reimbursement Program.

File Type	application/pdf
File Title	Public Notice Paragraph TOC.dot
Author	Christopher Koves
File Modified	2021-09-30
File Created	2021-09-30