There was some big news out of today's Senate Commerce Committee oversight hearing on the BIP/BTOP programs, which just ended. Copies of the prepared testimony by the RUS, NTIA and OMB witnesses are attached but, as usual, the best information came out in the oral testimony.
The big news relates to the schedule for making grants under the first NoFA. In his testimony, NTIA Administrator Larry Strickling announced that application processing is proceeding slower than anticipated. As a result, he announced that the first BTOP applications will not be granted until mid-December, and that processing applications under the first NoFA will not be completed until February 2010. RUS Administrator Jonathan Adelstein announced that RUS will begin issuing awards "as soon as possible" but that November 7th date will "slip" and that RUS expects to begin making announcements a month after the initially scheduled November 7th date. During the course of his testimony, Strickling made reference to the upcoming Request for Information regarding the second NoFA, but did not give any indication as to when it will be released. Adelstein noted that it would be released "shortly." During the questioning, Sen. Rockefeller and others again expressed unhappiness with the "remote" definition adopted by RUS. Not surprisingly, Adelstein committed to "completely review" the definition when comments are filed in response to the FRI., and concedes that there are "real problems" with the current definition. In response to concerns raised regarding lack of mapping and funding of areas that are served by private enterprise, Adelstein mentioned that RUS is focusing on funding deployments in unserved areas. Finally, in response to a Rockefeller question regarding the problems stemming from the shotgun marriage of RUS and NTIA, both Administrators identified the reluctance of applicants to seek BIP loans (that stretch dollars), when they can instead secure BTOP grants. Strickling made clear that they will look at this issue in preparing the second NoFA, but also stated that he was not sure they would change the agencies' approaches. Throughout the hearing, Adelstein continued to emphasize the benefits of using loans to leverage the funds available. So, while NTIA is statutorily restricted to 80% grants and no loans, RUS may not take advantage of its flexibility to change the 50%/50% grant-loan split. For further details and to download hearing transcripts: http://www.winog.org/index.php?q=senatecommitteemeeting102809 Feel free to contact me if you have any additional questions (or if you want to get sold on something =) -Charles [cid:image001.jpg@01CA576D.3014ED10]<http://www.ippay.com/> Charles Wu<mailto:c...@ippay.com> President c...@ippay.com<mailto:c...@ippay.com> cell: 773-870-0962 * office: 847-346-0990 x2500 16W235 83rd Street, Suite A, Burr Ridge, IL 60527<http://www.converge-tech.com/www.ippay.com> * tel: 847.346.0990 fax: 847.346.0991
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