[OPLINLIST] Fwd: The Emergency Connectivity Fund (ECF)

[Don Yarman]

Lorrie Germann has a good synopsis of the Emergency Connectivity Fund and
the forthcoming FCC rules. See below.

                                  —DY


---------- Forwarded message ---------
Hello E-Rate Community,

As many of you have heard, the American Rescue Plan Act of 2021 includes
the Emergency Connectivity Fund (ECF) which will provide over $7 billion in
additional E-rate funding.
As of right now, we have more questions than answers, but here’s what we do
and do not know about the new “ECF” program:

The new legislation requires the FCC to implement regulations within 60
days (i.e., by May 10th). The FCC issued a Public Notice (DA 21‑317
<https://ohio-k12.help?mailpoet_router&endpoint=track&action=click&data=WyI1NjM0IiwiMWZiM2Y0IiwiNjYiLCIzMzA2ZWEyM2ExNjIiLGZhbHNlXQ>)
with a request for comments that were due April 5th and reply comments due
April 23rd.

   - The program will fund purchases of eligible equipment and/or advanced
   telecommunications and information services for students, school staff, and
   library patrons at locations other than the schools or libraries, i.e.,
   off-campus. Eligible equipment is defined to mean:


   - Wi-Fi hotspots defined as devices utilizing the standard 802.11 (or
   successor) networking protocol. Arguably, these could be individual
   single-user hotspots or multi-user community hotspots.
   - Modems and/or routers.
   - Connected devices (laptops, tablets, or similar end-user devices).

We would expect that the FCC’s ECF program regulations will include more
details in the form of an ECF eligible services list.

   - Total funding for the program, including small set-asides for
   oversight and administration, is $7.171 billion. Unlike other E-rate
   funding, the ECF funding will come from the U.S. Treasury, not the
   Universal Service Fund (“USF”). This means that ECF funding will not put
   additional upward pressure on the already historically high USF
   contribution factor.
   - Administratively, ECF funding remains available through September 30,
   2030. Actual ECF funding, however, is for eligible products services
   procured during the pandemic and up to one fiscal year thereafter. For
   example, if the COVID-19 emergency period ends some time during the
   2021-2022 fiscal year, ECF funding would continue through FY 2022 ending
   June 30, 2023 (perhaps September 30, 2023 for non-recuring expenses).

The ECF legislation is silent with regard to retroactive funding. We expect
this issue to be addressed in the FCC rulemaking. Unlike traditional E-rate
funding with discounts of 20-90%, the ECF legislation calls for the
reimbursement of 100% of the costs for eligible equipment and services with
the provision that reimbursements “may not exceed an amount that the
Commission determines…is reasonable.” This provision is difficult to
interpret and is being left to the FCC. It could mean only that the price
of any particular product or service must be “reasonable” in the same sense
that E-rate rules have always required cost-effectiveness. But it might
also mean that the amount of funding available to any specific applicant
must be “reasonable.” In this sense, the FCC might allocate total available
funding on the basis of rural/urban locale and/or NSLP eligibility,
essentially establishing Category 2-like budgets for each applicant.

   - Once the FCC’s ECF rules are released in early May, we expect USAC to
   initiate a special ECF application cycle perhaps waiving, or at least
   simplifying, traditional competitive bidding requirements.



*Please rest assured that I will share the information as it is received
from the FCC and will schedule webinars to make sure everyone is aware of
the rules and application process.*



Stay tuned!!

Lorrie

*Lorrie Germann*
State E-Rate Coordinator
On behalf of the Ohio Department of Education
lorrie.germann at education.ohio.gov
www.ohio-k12.help/erate
*Office:* 740-223-2420
*Cell:* 740-253-1153
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