ing and which is itemized in the "List of Transmission Apparatus" maintained and published by the Commissioner. Copies of the list may be obtained by writing to the U.S. Commissioner of Education, Department of Health, Education, and Welfare, Washington, D.C. 20202.

(t) "Closed circuit" means a system for the distribution of electronic signals by a means other than broadcasting.

(u) "Interconnection" means the use of microwave equipment, boosters, translators, repeaters, communication space satellites, or other apparatus or equipment for the transmission and distribution of television or radio programs to noncommercial educational broadcasting stations.

(v) "Regional plan" means an organized design for the dispersion of noncommercial educational broadcasting facilities within a geographical area not otherwise specifically defined by either State boundaries or the broadcast contours of an individual noncommercial educational broadcast station.

(w) "Service area" means:

(1) in the case of television broadcasting, that area included within the station's predicted Grade B contour;

(2) in the case of AM radio broadcasting, that area included within the station's predicted 500 microvolt contour; and

(3) in the case of FM radio broadcasting, that area included within the station's predicted 1 millivolt contour.

(x) "Situated in any State" means, with respect to a noncommercial educational broadcast station and all transmission apparatus resulting from a projeet associated with such station, situated (irrespective of physical location) in the State in which the channel occupied or applied for is assigned by the FCC, unless the Commissioner, in light of all the pertinent facts and circumstances of a particular case, specifically determines otherwise.

(y) "Fair-market value" means the price arrived at by a seller who is willing to sell, and a buyer who is willing to buy, where both parties are freely negotiating in good faith. Criteria used to establish fair-market value include: (1) The price at which a like item (model, age, and condition) has changed hands; (2) in the case of a donation, the donor's purchase price or cost of manufacture, less reasonable allowance for depreciation due to use and age; (3) the catalog

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or other established price of a new item of the same type, less reasonable allowance for depreciation due to use and age; or (4) appraisal, satisfactory to the United States, made by one or more qualified, impartial appraisers.

§ 60.4 Eligible applicants.

(a) Applications for Federal financial assistance under this part for an educational television project may be submitted by:

(1) An agency or officer responsible for the supervision of public elementary or secondary education or public higher education within a State, or within a political subdivision thereof;

(2) A State educational television agency;

(3) A college or university deriving its support in whole or in part from tax revenues; or

(4) A nonprofit foundation, corporation or association which is organized primarily to engage in or encourage noncommercial educational television broadcasting and is eligible to receive a license from the FCC for a noncommercial educational television broadcasting station pursuant to the rules and regulations of the FCC in effect on April 12, 1962; or

(5) A municipality which owns and operates a facility used only for noncommercial educational broadcasting.

(b) Applications for Federal financial assistance under this part for an educational radio project may be submitted by:

(1) An agency or officer responsible for the supervision of public elementary or secondary education or public higher education within a State, or within a political subdivision thereof;

(2) A State educational radio agency; (3) A college or university deriving its support in whole or in part from tax revenues; or

(4) A nonprofit foundation, corporation or association which is organized primarily to engage in or encourage noncommercial educational radio broadcasting and is eligible to receive a license from the FCC, or meets the requirements of subparagraph (4) of paragraph (a) of this section and is also organized primarily to engage in or encourage such radio broadcasting and is eligible for such a license for such a radio station; or

(5) A municipality which owns and operates a facility used only for noncommercial educational broadcasting.

An application for Federal financial assistance under this part must be filed with the Commissioner by the applicant and contain such information with respect to the project and related noncommercial educational broadcasting activities of the applicant as the Commissioner may deem necessary. The application shall be executed by an official or representative of the applicant duly authorized to make such application and to provide the required assurances. The Commissioner may request an applicant to file such additional information, documents, written statements, justification and exhibits as he may deem necessary. The applicant may submit, on his initiative, amendments or additional information relevant to his application. § 60.6

FCC authorization.

(a) In any case where the project requires an authorization or authorizations from the FCC, the applicant must file with the Commissioner a copy of each FCC application and any amendments thereto.

(b) If the FCC returns, dismisses or denies an application required for the project or any part thereof, the Commissioner may return the application for Federal financial assistance to the applicant.

§ 60.7 Service of applications.

(a) Each applicant shall promptly serve a copy of his application, and each amendment thereto, for Federal financial assistance under this part upon each of the following:

(1) The Secretary, Federal Communications Commission, Washington, D.C. 20554; and

(2) The State educational television or radio agency, if any, in the State in which the channel associated with the project is assigned by the FCC, or, if the channel in question is assigned jointly to communities in different States, upon the State educational television or radio agency, if any, in each of such States.

(b) Each applicant must also give written notice of the filing of his application, and each amendment thereto, to the State educational broadcast agency, if any, in any State, any part of which is within the service area of the proposed broadcast station unless such agency has been served in accordance with paragraph (a) of this section.

§ 60.8

Acceptance of applications.

(a) Applications tendered for filing with the Commissioner will be given a preliminary examination. Those found to be complete or substantially complete will be accepted for filing. Applications which are not substantially complete or which are determined to be substantially not in accordance with the provisions of this part will not be accepted for filing and will be returned to the applicant: Provided, That, within 30 days of such return, the applicant may file with the Commissioner a petition pursuant to § 60.22. Acceptance of an application for filing will not preclude subsequent return or disapproval of the application if it is found to be not in accordance with the provisions of this part, or if the applicant fails to file any additional information or documents requested by the Commissioner.

(b) Applications proposing projects which require authorization or authorizations from the FCC will not be accepted for filing by the Commissioner until after the FCC has accepted for filing the necessary application or applications to the FCC for such authorization or authorizations.

§ 60.9 Assurances required.

No project will be approved unless the applicant has given assurances acceptable to the Commissioner:

(a) That;

(1) The applicant meets the requirements of eligibility set forth in § 60.4;

(2) The applicant's organic or corporate powers include the authority to construct and operate noncommercial educational broadcast facilities, and to receive Federal funds for such construction;

(b) That in the case of a nonprofit foundation, corporation or association eligible under § 60.4, the applicant is so organized as to be reasonably representative of the educational, cultural, and civic groups in the community to be served, and free from such control by a single private entity (either through membership on its board of directors, source of funds, or otherwise) as would prevent or restrict it from serving overall community needs or interests;

(c) That the transmission apparatus to be acquired and installed under the project will be owned by the applicant;

(d) That the operation of the noncommercial educational broadcast fa

cilities will be under the control of the applicant or a person qualified under § 60.4 to be an applicant;

(e) That sufficient funds will be available when needed:

(1) To meet the non-Federal share of the cost of the project;

(2) To acquire all land and to construct and install all facilities, structures and equipment, in addition to the transmission apparatus included in the project, necessary to place the proposed noncommercial educational broadcast facilities in operation; and

(3) To operate and maintain the noncommercial educational broadcast facilities;

(f) That all non-Federal financial sources available for the project have been taken into account, and that the non-Federal share stated by the applicant as being available for use in the project is the maximum contribution available from such sources;

(g) That the transmission apparatus to be acquired and installed under the project will be used primarily for educational broadcasting purposes and only incidentally for other educational purposes by means of closed circuit;

(h) That, in the case of an application for an educational radio project;

(1) There has been comprehensive planning for educational broadcasting facilities and services in the area the applicant proposes to serve, and the applicant has participated in such planning; and

(2) The applicant will make the most efficient use of the frequency assigned to him by the FCC.

§ 60.10 Comments on applications.

(a) The Commissioner will publish notice in the FEDERAL REGISTER of the acceptance for filing of each application and of the receipt of each amendment which substantially affects an application.

(b) Within 30 calendar days from the date on which notice is published in the FEDERAL REGISTER of the acceptance for filing of an application (and within 10 calendar days from the date on which notice is published in the FEDERAL REGISTER of the receipt of an amendment) any State educational television and/or radio agency and any other interested person may file comments with the Commissioner in support of or in opposition to the application or amendment, setting forth the grounds for such support or

In acting on applications and carrying out his other responsibilities under the Act and this part, the Commissioner may consult with the Corporation and other agencies, organizations and institutions administering programs which may be effectively coordinated with Federal assistance provided under the Act and this part.

§ 60.12 Processing of applications.

(a) With respect to applications accepted for filing pursuant to § 60.7, the Commissioner may at any time (1) defer action on all applications or on groups of application; (2) institute priorities for the consideration and approval of applications; (3) establish and announce "cut-off" dates for the filing of applications when he deems it necessary for the efficient administration of the program; and (4) establish temporary limitations on the maximum amount of Federal grants which may be approved for projects situated in each of the several States, if in his judgment such action would assist in promoting equitable distribution of such Federal grants throughout the several States.

(b) The Commissioner may, prior to the approval of any application or group of applications under this part, obtain and consider the advice and recommendations of a panel of competent specialists who are not employees of the Federal government and who are not employed by or associated with any applicant having an application under review at that time.

§ 60.13 Criteria for priority of applications.

In order to achieve the objectives of section 392(d) of the Act, the Commissioner, in determining whether to approve an application for a Federal grant in whole or in part and the amount of

such grant, or whether to defer action on such an application, will consider the following factors (not listed in any order of priority):

(a) Whether the project will result in the activation of a new noncommercial educational broadcasting station;

(b) The area and population which will receive a new noncommercial educational broadcasting service as a result of the project;

(c) The hours during which the noncommercial educational broadcasting

station will operate;

(d) The general and special educational and cultural needs of the area for noncommercial educational broadcasting service as well as the need for local outlets for the origination of noncommercial educational broadcasting programs; the extent to which those needs are being or will be met by existing or proposed noncommercial educational broadcasting stations; and the extent to which the project is necessary to meet those needs;

(e) The extent to which the project will contribute to meeting the needs for noncommercial educational broadcasting in the State;

(f) The extent to which provision has been made for the cooperation and participation of educational, cultural and community service agencies, institutions and organizations within the service area of the station;

(g) The extent to which any proposed interconnection of noncommercial educational broadcasting stations is necessary to provide new or improved noncommercial educational broadcast service;

(h) The cost of the project and of the various components thereof in relation to the objectives to be achieved;

(i) The extent to which the various items of transmission apparatus proposed are necessary to, and capable of achieving the objectives of, the project;

(j) How quickly the applicant can be expected to complete the project;

(k) The provisions of any relevant statewide or regional noncommercial educational broadcast plans;

(1) Whether the transmission apparatus will be used for noncommercial educational broadcasting on a reserved channel;

(m) The extent to which non-Federal funds will be used to meet the total cost of the project;

(n) The extent to which the noncommercial educational broadcasting station associated with the project will contribute to the improvement of quality in noncommercial educational broadcasting in the nation; and

(o) The recommendations, if any, of the State educational television or radio agency as defined in § 60.3(g).

§ 60.14 Amount of Federal grant entitle

ment.

(a) Subject to the provisions of paragraphs (b) and (c) of this section, the Federal grant entitlement shall be an amount determined by the Commissioner, which in no case shall exceed 75 percent of the amount which he determines to be the total reasonable and necessary cost of the project. Such cost shall include the following:

(1) The purchase price of transmission apparatus (or fair-market value of donated transmission apparatus) to be acquired in the project; and

(2) Other costs related to the acquisition and installation of transmission apparatus in the project and to planning therefor, including the cost of engineering, legal, and other services.

(b) Project costs shall not include the value of:

(1) Transmission apparatus owned by the applicant prior to acceptance by the Commissioner for filing of the application, and services related thereto;

(2) Transmission apparatus to the extent acquired or installed by donation from the United States or with Federal funds provided from sources other than under this part; and

(3) Transmission apparatus previously acquired or installed by a person other than the applicant by donation from the United States, or with Federal funds pursuant to this part or any other provision of law.

(c) The total amount of the Federal grant entitlement may not exceed the amount reasonable and necessary to meet the monetary cost of the transmission apparatus and personnel services in the project which are not donated. § 60.15 Action on application.

(a) After consideration of the application, any comments and replies filed by interested parties and any other relevant

(1) Approve the application and estimate the amount of the Federal grant entitlement; or

(2) Deny approval of the application, in whole or in part, and set forth in writing, the grounds and reasons therefor, provided that such denial shall not become final until 30 calendar days from the date of such denial, within which time the applicant may file with the Commissioner a petition for reconsideration pursuant to § 60.22, unless the right to file such a petition is waived in writing by the applicant.

(b) The approval, in whole or in part, of an application shall not become final until the applicant complies with all relevant requirements imposed by this part, and with such additional conditions imposed on the Federal grant as the Commissioner may deem necessary to insure full compliance with the provisions and objectives of the Act and in any case where the Commissioner approves, in whole or in part, any application which requires an authorization or authorizations from the FCC, such approval will not become effective unless and until the FCC grants the required authorizations and such grant or grants become final.

(c) Upon the Commissioner's approval or denial, in whole or in part, of an application, the Commissioner will inform:

(1) The applicant;

(2) Each State educational television or radio agency, if any, in any State, any part of which lies within the service area of the applicant's broadcast station; and (3) The FCC.

§ 60.16 Revocation of grant.

(a) Approval of an application may be revoked by the Commissioner on the following grounds:

(1) Final action by the FCC revoking a construction permit required for such project, denying an application for extension or modification of such construction permit, or denying an application for a construction permit to replace such required construction permit; or denying an application for a license to cover the construction permit; or

(2) Forfeiture of a construction permit required for a project for which a grant has been approved; or

(3) Failure of the applicant to complete the project within a reasonable period of time, or to use the Federal

funds for the purposes for which granted; provided, that within 30 calendar days from the date of receipt of notice of such revocation, the applicant may file with the Commissioner a petition for reconsideration pursuant to § 60.22.

(b) If approval of an application is revoked pursuant to the provisions of this section, no further Federal funds will be paid to the applicant, and the Commissioner will take such steps as may be deemed necessary to protect the Federal financial interests.

§ 60.17

Conditions of Federal grant.

In addition to any other conditions imposed by law or determined by the Commissioner to be reasonably necessary to fulfill the purpose of the Federal grant, each Federal grant shall be subject to the condition that the applicant shall:

(a) Use the Federal grant funds for the purposes for which the Federal grant was made and for the items of transmission apparatus and other expenditure items specified in the application for inclusion in the project, except that the grantee may substitute other items where necessary or desirable to carry out the purpose of the project and provided that such substitutions will not result in an increase in grant entitlement and are approved by the Commissioner;

(b) Promptly complete the project and place the noncommercial educational broadcast facilities into operation;

(c) Maintain, during construction of the project and for 10 years after completion of the project, protection against common hazards through adequate insurance coverage or other equivalent undertakings; except that, to the extent the applicant follows a different policy of protection with respect to its other property, the applicant may extend such policy to transmission apparatus acquired and installed under the project;

(d) Provide qualified engineering supervision and inspection of the project to insure that the completed project is consistent with the approved application and good engineering practice.

(e) Employ adequate methods of obtaining a competitive basis for the acquisition and installation of transmission apparatus included in the project either by appropriate public advertising or by circularizing three or more competitive vendors, and that the award of