Substantially Underserved Trust Areas (SUTA) Webinar

1. Substantially Underserved Trust Areas (SUTA) Webinar Section 6105 of the Food, Conservation & Energy Act of 2008 (2008 Farm Bill) September 22, 2010 Phone Bridge: 1-800-857-5051 Participant Code: 1752644 Press *1 To Ask a Question

2. Agenda • Opening Prayer • Loris Taylor, Executive Director, Native Public Media • Welcome Remarks • Jonathan Adelstein, Administrator, Rural Utilities Service • Consultation Process • Janie Hipp, Senior Advisor for Tribal Affairs, USDA • Preliminary Questions • SUTA and RUS Slide Presentation • Tedd Buelow, Native American Coordinator, USDA Rural Development • Jessica Zufolo, Deputy Administrator, Rural Utilities Service • SUTA and RUS Questions • Consultation • Closing Remarks and Next Steps - Jessica Zufolo Press *1 To Ask a Question

3. Why Have We Gathered? We are seeking your considerations! The Secretary, in consultation with local governments and Federal agencies, may implement an initiative to identify and improve the availability of eligible programs in communities in SUTA.

4. The provision allows the Secretary to: • Determine if there are Substantially Underserved Trust Areas (SUTA) that are not benefiting from RUS Programs • High-Need for benefits of the program must be determined first • Once the need is documented the Secretary MAY employ three optional programmatic tools and must ensure the Financial Feasibility of any Loans

5. What is a Substantially Underserved Trust Area? Not Completely Defined A community in ‘trust land’ (as defined in section 3765 of title 38, United States Code) with respect to which the Secretary determines has a high need for the benefits of an eligible program. • We have direction on Trust Lands that are covered (Our next Slide) • High Need areas for benefits of the Program will need to be determined by the Secretary

6. Who is Covered? Trust Areas Defined The term ‘‘trust land’’ means any land that is: • Held in trust by the United States for Native Americans; • Subject to restrictions on alienation imposed by the United States on Indian lands (including native Hawaiian homelands); • Owned by a Regional Corporation or a Village Corporation; • As such terms are defined in section 3(g) and 3(j) of the Alaska Native Claims Settlement Act, respectively (43 U.S.C. 1602(g), (j)); or • On any island in the Pacific Ocean if such land is, by cultural tradition, communally-owned land, as determined by the Secretary. Trust Areas Definition for SUTA Cites Title 38 Section 3765 (Department of Veterans Affairs)

7. What is a High-Need Area for Benefits of the Program? Helping the Secretary Make this Determination? • SUTA discussion question • Economic statistics and considerations • Levels of service • Lack of financing available • Health and safety considerations • Etc…

8. Specific SUTA Provisions for RUS Programs Three optional programmatic tools: • May make loans and loan guarantees with interest as low as 2 percent and with extended repayment terms • May waive non-duplication restrictions, matching fund requirements, or credit support requirements from any loan or grant program administered by RUS • Only for construction, acquisition or improvements of infrastructure • May give highest priority to designated projects in SUTA • Stipulation – Shall make loans that are financially feasible and that provide program benefits to SUTA

9. What Programs are Covered? • SUTA Provision amends the Rural Electrification Act (REA) • Affects Rural Utility Service (RUS) Programs Only • RUS Provides Infrastructure in Rural Development Programs • Rural Electrification Loans and Guaranteed Loans, including High Cost Energy Grants • Water & Waste Disposal Loans, Guaranteed Loans and Grants • Telecommunications Infrastructure Loans & Guaranteed Loans • Distance Learning and Telemedicine Loans & Grants • Broadband Loans and Guaranteed Loans • Funding for SUTA was not appropriated in the Farm Bill

10. Water and Environmental Programs • Water and Environmental Programs (WEP) provides loans, grants and loan guarantees for drinking water, sanitary sewer, solid waste and storm drainage facilities in rural areas and cities and towns of 10,000 or less. • Public bodies, non-profit organizations and recognized Indian tribes may qualify for assistance. • WEP also makes grants to nonprofit organizations to provide technical assistance and training to assist rural communities with their water, wastewater, and solid waste problems.

11. Telecommunication Programs • USDA'S Rural Utilities Service provides programs to finance rural America's telecommunications infrastructure. • The Telecommunications Infrastructure program provides loans to finance traditional telecommunications infrastructure in rural communities nationwide. • The Broadband Loan program provides loans to fund the costs of constructing, improving and acquiring facilities to provide broadband service to eligible rural communities. • The Distance Learning and Telemedicine program brings electronic educational resources to rural schools and improves health care delivery in rural America. • The Community Connect Grant program provides financial assistance to eligible applicants that will provide broadband in unserved areas to provide public safety services and foster economic growth.

12. Electric Programs • Providing reliable, affordable electricity is essential to the economic well-being and quality of life for all of the nation's rural residents. • Loans and loan guarantees finance the construction of electric distribution, transmission, and generation facilities, including system improvements and replacement • Loans and loan guarantees finance can also finance demand side management, energy conservation programs, and on-grid and off-grid renewable energy systems. • Loans are available to corporations, states, territories, their subdivisions and agencies, municipalities, people's utility districts, tribal utilities, and cooperative, non-profit, limited-dividend or mutual associations and other entities that provide retail or power supply service to eligible rural areas or supply the power needs of distribution borrowers in rural areas. • High Energy Cost Grants – Grants to areas that have average household energy greater than 275% of national average.

13. SUTA - Next Steps • Prepare Summaries of Consultation • Confirm and Document SUTA Needs • Develop Implementation Strategy • Improve Services to Substantially Underserved Trust Areas Press *1 To Ask a Question

14. Comments and Questions Tedd BuelowNative American CoordinatorUSDA Rural Development 202-690-1681Tedd.Buelow@wdc.usda.gov More Information SUTA Website: www.rurdev.usda.gov/suta.html RUS: www.rurdev.usda.gov/Utilities_Assistance.html Press *1 To Ask a Question

15. - SUTA Consultation -Press *1 To Ask a Question

16. The provision allows the Secretary to: • Determine if there are Substantially Underserved Trust Areas (SUTA) that are not benefiting from RUS Programs • High-Need for benefits of the program must be determined first • Once the need is documented the Secretary MAY employ three optional programmatic tools and must ensure the Financial Feasibility of any Loans Press *1 To Ask a Question

17. Specific SUTA Provisions for RUS Programs Three optional programmatic tools: • May make loans and loan guarantees with interest as low as 2 percent and with extended repayment terms • May waive non-duplication restrictions, matching fund requirements, or credit support requirements from any loan or grant program administered by RUS • Only for construction, acquisition or improvements of infrastructure • May give highest priority to designated projects in SUTA Press *1 To Ask a Question