IATF Still Determining Method of LPTV Reimbursement
The FCC hasn’t determined the exact method it will use to allocate repacking reimbursement funds to low-power TV stations, said Media Bureau Chief Engineer Jeff Neumann Wednesday during a webinar on the reimbursement process for LPTV, translator and FM stations affected by the repacking. Each station in the full-power and Class A TV station repacking process was initially allotted the same percentage of their estimated costs, but it’s not clear if that method will be used for LPTV, Neumann said. Media Bureau and Incentive Auction Task Force (IATF) officials didn’t provide specifics about when reimbursement funds will start going out. Neumann said it will be “well after” the Oct. 15 deadline for eligible stations to submit reimbursement forms and initial expenses.
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The reimbursement process for LPTV, FM and translators will be broadly similar to the ongoing full-power version, IATF Deputy Chair Hillary DeNigro said. That reimbursement effort has dispersed over $700 million, she said. Similar to what it did in full-power version, the agency will first take in expense estimates from broadcasters, and then determine an initial allocation based on total expenses, number of eligible stations and service involved, DeNigro said. The 2018 Reimbursement Expansion Act directs $150 million to reimburse LPTV/translator stations and $50 million for FM stations. Stations would then be able to draw on that initial allocation for reimbursement. In the full-power repacking, additional tranches of reimbursement allocation followed the initial allocation as the funds were drawn down.
It’s not surprising that LPTV broadcasters don’t have a clear picture of how their initial allocation will play out, a broadcast attorney told us. Full-power broadcasters faced similar uncertainty at the start of their reimbursement process, the lawyer noted. LPTV, FM and translators affected by repacking costs can begin submitting invoices but won’t be reimbursed until the initial allocation is determined, IATF officials said.
Only costs for the repacking are eligible for reimbursement, and only some broadcasters are eligible to receive those funds, the IATF said. LPTV stations have to have been operating for at least two hours a day for nine months between April 2016 and 2017 and filed a displacement application, while FM stations have to be able to show the degree to which TV station repacking disrupted their operations. That degree of documentation wasn’t required of full-powers, another industry lawyer noted.
Outlets seeking reimbursement are to use the IATF’s cost catalog to estimate their expenses, IATF officials said. The catalog isn’t “exhaustive,” and broadcasters can seek reimbursement for costs not specifically mentioned, the IATF said. Broadcasters can later modify their estimates as more information becomes available or additional costs are identified, said Neumann. “A lot of times, folks will be purchasing things either at power levels, or particular specifications, that were not specified in the catalog, or they'll be buying something else entirely." Stations can also purchase upgraded equipment and be partially reimbursed, the IATF said.
Information from the webinar and FAQs about reimbursement will be available on the FCC’s website, the IATF said. Statute requires that broadcasters complete their repacking-caused work and close out their reimbursement process by July 2023, DeNigro said.