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GAO reviewed the Department of Agriculture (USDA), Rural Utilities Service's new rule entitled "Rural eConnectivity Program." GAO found that the rule (1) establishes the Rural eConnectivity Program; and (2) describes the eligibility requirements, the application process, and the criteria that will be used by USDA to assess applicants' creditworthiness, and outlines the application process.







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B-333051
March 15, 2021
The Honorable Debbie Stabenow
Chairwoman
The Honorable John Boozman
Ranking Member
Committee on Agriculture, Nutrition, and Forestry
United States Senate
The Honorable David Scott
Chairman
The Honorable Glenn Thompson
Republican Leader
Committee on Agriculture
House of Representatives
Subject: Department of Agriculture,
Rural Utilities Service: Rural eConnectivity Program
Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a
major rule promulgated by the Department of Agriculture (USDA), Rural Utilities Service,
entitled ?Rural eConnectivity Program? (RIN 0572-AC51).  We received the rule on March
2, 2021.  It was published in the Federal Register as a final rule, request for
comments on February 26, 2021.  86 Fed. Reg. 11603.  The stated effective date of
the rule is April 27, 2021.
According to USDA, this final rule establishes the Rural eConnectivity Program. 
USDA states that the Rural eConnectivity Program provides loans, grants, and loan/grant
combinations to facilitate broadband deployment in rural areas.  According to USDA,
this rule describes the eligibility requirements, the application process, and the criteria
that will be used by USDA to assess applicants? creditworthiness, and outlines the
application process.  USDA states that it is also seeking comments on the final
rule.
The Congressional Review Act (CRA) requires a 60-day delay in the effective date of a
major rule from the date of publication in the Federal Register or receipt of the
rule by Congress, whichever is later.  5 U.S.C. § 801(a)(3)(A).  This final rule
was published in the Federal Register on February 26, 2021.  86 Fed. Reg.
11603.  The Senate received the rule on March 5, 2021.  167 Cong. Rec. S1457
(daily ed. Mar. 10, 2021).  The Congressional Record does not yet reflect when
the House of Representatives received the rule.  The rule has a stated effective date
of April 27, 2021.  Therefore, this final rule does not have the required 60-day delay
in its effective date.
Enclosed is our assessment of USDA?s compliance with the procedural steps required by
section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule.  If you have
any questions about this report or wish to contact GAO officials responsible for the
evaluation work relating to the subject matter of the rule, please contact Shari Brewster,
Assistant General Counsel, at (202) 512-6398.
Shirley A. Jones
Managing Associate General Counsel
Enclosure
cc:  Michele Brooks
  Director, Regulations Management Division
  Rural Development Innovation Center
  Department of Agriculture
ENCLOSURE
REPORT UNDER 5 U.S.C. § 801(a)(2)(A) ON A
MAJOR RULE
ISSUED BY THE
DEPARTMENT OF AGRICULTURE,
RURAL UTILITIES SERVICE ENTITLED  ?RURAL
ECONNECTIVITY PROGRAM?  (RIN: 0572-AC51)
(i) Cost-benefit analysis
The Department of Agriculture (USDA), Rural Utilities Service, estimated the cost of
this final rule, calculated as the annual information collection burden occurring in the
year of application and award under the program, and applying the 3 percent and 7 percent
discount rates, to be $11,416,205.  USDA also estimated the annualized administrative
cost to the federal government to administer the program to be $5,495,802.  USDA also
identified, as the main economic impact of this rule, the potential annual transfer
associated with $550,000,000 in authorized funding.
According to USDA, because of the significant changes to program operation, any estimate
of the benefits would be speculative and based on the projected increase in the number of
applications.  Therefore, USDA described qualitative benefits of this rule, including:
 rural communities? access to remote learning and virtual healthcare services through
availability of affordable high speed internet in rural areas; potential economic benefits
of connected agriculture technologies within the agriculture industry; economic benefits
and improvements in quality of life from availability of telework in rural areas; and a
boost to local rural economies.
(ii) Agency actions relevant to the Regulatory Flexibility Act (RFA), 5 U.S.C. §§
603-605, 607, and 609
USDA certified that this final rule will not have a significant economic impact on a
substantial number of small entities as defined in the Act.
(iii) Agency actions relevant to sections 202-205 of the Unfunded Mandates Reform Act
of 1995, 2 U.S.C. §§ 1532-1535
USDA determined that this final rule is not subject to the requirements of the Act
because it contains no federal mandates for state, local, and tribal governments or the
private sector.  
(iv) Other relevant information or requirements under acts and executive
orders
Administrative Procedure Act, 5 U.S.C. §§ 551 et seq.
According to USDA, the Rural eConnectivity Program was previously implemented by issuing
Funding Opportunity Announcements (FOA).  On December 14, 2018, USDA published the
round one FOA.  83 Fed. Reg. 64315.  On December 12, 2019, USDA published the
round two FOA, with a request for comments.  84 Fed. Reg. 67913.  USDA stated it
received comments on the round two FOA from six respondents, including one company, three
internet/television associations, one state board, and one individual.  USDA
summarized and responded to key comments from each respondent in the final rule.  In
addition, USDA is seeking comments on this final rule to be submitted on or before April
27, 2021.
Paperwork Reduction Act (PRA), 44 U.S.C. §§ 3501-3520
USDA determined this final rule contains information collection requirements (ICR) under
the Act and stated that the ICR has been submitted to the Office of Management and Budget
(OMB) for approval under OMB Control Number 0572?0152.  According to USDA, the total
annual burden for the ICR is estimated to be 156,005 hours and the total annual cost is
estimated to be $11,416,205.   
Statutory authorization for the rule
USDA promulgated this final rule pursuant to sections 901 et seq., 950aaa et
seq., 950cc, and 1981(b)(4) of title 7, United States Code.
Executive Order No. 12866 (Regulatory Planning and Review)
USDA determined that this final rule is significant under the Order and stated that it
was reviewed by OMB. 
Executive Order No. 13132 (Federalism)
USDA determined that this final rule does not have any substantial direct effect on
states, on the relationship between the national government and the states, or on the
distribution of power and responsibilities among the various levels of government. 
USDA further determined that this rule does not impose substantial direct compliance costs
on states and local governments.




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