FCC Working on Specifics for New Repacking Funds; More Details Expected by NAB 2018, Attorneys Say
The FCC could release some basic plans about disbursement of new repacking reimbursement funds approved by Congress (see 1803230038) by the April 7 NAB Show, broadcast attorneys and industry officials told us. The agency will have to create new procedures and issue documents such as cost catalogs for reimbursing radio, low-power TV (LPTV) and translators, so any information would likely be very preliminary, they said. The addition of $350 million could also affect the upcoming second allocation of reimbursement funds for full-power stations, attorneys said.
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“Preparation of the rulemaking proceedings to determine eligible costs and refund procedures is already underway,” an FCC Incentive Auction Task Force spokesman said.
The FCC wouldn’t comment on how the cash infusion will affect the second allocation, but IATF Chair Jean Kiddoo told public TV groups that more money from Congress would change how the agency doles out the funds (see 1802270039). A recent public notice announcing the timing of the second allocation (see 1803080049) said the amount allocated would be based on repacking cost estimates made at the time it was issued, so the agency likely hadn’t settled on a number when the bill authorizing more repacking funds was approved. Broadcast attorneys said it could mean an increase in the funds allocated.
Directing reimbursement funds of up to $50 million to radio and up to $150 million for LPTV and translators will likely be a more involved process, attorneys said. Since payback plans for those industries weren’t part of the original auction plans, “the FCC is going to have to do something,” said Fletcher Heald broadcast attorney Peter Tannenwald.
The FCC wouldn’t comment on how such procedures will be created, but attorneys said it’s possible it will involve a rulemaking and comment periods. The refund plan for full-power broadcasters involved notice and comment periods for the procedures, timing and the catalog of eligible expenses. The legislation authorizing the funds gives the FCC a year to create the process, attorneys said. The FCC could also have a rulemaking on what to do with the bill’s $50 million for consumer education, attorneys said, though others thought the agency might not need to.
Since the repacking is only in the preliminary stages and the additional funding only a week old, the funding hasn’t had much concrete effect on the radio or LPTV industries yet, broadcasters said. Radio broadcasters are encouraged they won’t have to “expend funds they never expected to need,” Cromwell Group President Bayard Walters said in an interview. LPTV stations are pleased to have the help, but have to wait for more information before they can take actions such as placing orders for new equipment, LPTV Spectrum Rights Coalition Director Mike Gravino said. The upcoming LPTV displacement window is unlikely to be affected by the additional reimbursement funds, LPTV officials said.
The news of the extra money hasn’t led to an uptick in orders for repacking-related equipment, said Christine Zuba, Dielectric sales executive. Activity in that area is already high because of approaching repacking deadlines, and broadcasters have been ordering new equipment despite uncertainty about how much they’ll be reimbursed, she said. NAB has been pushing so hard to get the additional funding that many broadcasters have long expected it to arrive, one attorney said. It was “baked-in” to the repacking process already, he said.