Doug Dawson (CCG) is one of the smartest broadband guys I know. Doug is going to be working on a series of blog posts on BEAD (Broadband Equity, Access, and Deployment) funding the applications. If you are thinking about BEAD funding, or you want to keep an eye on things, I recommend following his blog. I might not post about each edition in her series but today he starts with an outline of the issues he may be diving into soon… (my quote below is abridged)
- The Grants Draw a Firm Technology Line.
This includes only fiber-optics, cable company hybrid-fiber coaxial technology, DSL, and fixed wireless service supported by licensed spectrum. Every other technology does not count as broadband in terms of defining areas eligible for the grants. The NOFO means that grants can be used to overbuild areas served by satellite broadband or by WISPs using unlicensed spectrum – regardless of the speeds being provided.
- The Grants Are Complicated.
These are going to be the most complicated broadband grants ever – more complicated even than ReConnect grants.
- The Grants Add a Lot of Cost to Projects.
Some of the big ones include environmental and historical preservation studies; prevailing wages for grants over $5 million; bank letters of credit and a legal opinion on the lines of credit; construction contractors must certify commitments to workforce development, including participation in apprenticeship programs; buy America requirements that will drive up the cost of materials; heavy-duty reporting requirements that layer on work after taking the grant.
- The Grants Are Clearly Stacked Against New ISPs.
This is ironic because the rules as written by Congress and alluded to throughout the NOFO talk about favoring what the NOFO calls non-traditional broadband providers like non-profits, electric cooperatives, local governments, public utility districts, and Tribes.
- The Grants Want to See Skin in the Game.
While grants can be as high as 75%, the NTIA expects States to award grants to applicants that ask for the lowest amount of grant funding.
- There are Some Gotchas In the Financial Requirements.
[To start] an applicant must get a bank letter of credit just to apply for the grant – something that’s expensive and not easy for many entities to get.
- This is Going to Overwhelm State Broadband Offices.
The complexity of the grant rules will overwhelm most state grant offices, which are often newly staffed.
- Penalties for Non-performance.
Penalties against non-performing grant recipients can include the imposition of additional award conditions, payment suspension, award suspension, grant termination, de-obligation/clawback of funds, and debarment of organizations and/or personnel from using future federal funds.
West Central Tribune reports…
Elected officials from Kandiyohi County and representatives from Charter Communications symbolically broke ground Monday on an $800,000 project that Charter said will bring broadband internet service to more than 170 rural, unserved homes and small businesses.
The event in New London Township was also a celebration of the partnerships between local elected officials and Charter Communications that made the project possible.
The agreement between Kandiyohi County and Charter Communications includes nearly $240,000 in American Rescue Plan Act funding that was secured by the county, along with more than $563,000 in private investment from Charter.
Minneapolis Star Tribune reports…
Lawmakers set the state’s two-year budget last session and there are no requirements for them to do anything this year, but Republicans remain steadfast in pushing for permanent tax cuts to give some of the surplus back to Minnesotans. Democrats have favored smaller one-time tax rebates and credits.
“While we’re open to finding common ground in public safety and education, maybe broadband and some other areas, we also remain focused on putting money back in the pockets of Minnesotans,” said Senate Majority Leader Jeremy Miller, R-Winona.
The governor and top legislative leadership shuttled in and out of meetings all last week, tight-lipped about what they were discussing behind closed doors. Most of the public discussion took place in joint committee meetings between the House and Senate, where the two parties aired the differences in their plans.
I have been out of town but scanning the Conference Committee last Thursday and trying to catch up on the MN Leg notes, it’s looks like broadband is still in discussion. Right now the Senate has $110 million in federal funds to broadband, while the House is looking at $25 from General Funds. So it will be interesting where the common ground will be.
The Duluth News Tribune posts a letter to the editor…
I read with interest the May 9 News Tribune article “ St. Louis County signs on to Rice Lake broadband project .” I hope that included in the $3,800-per-household cost is a requirement for internet providers serving the area to hook up interested homeowners. Otherwise the county will have wasted taxpayer dollars to decorate telephone poles with expensive black cable for the residents to admire from across the road.
Almost two years ago a similar project in the rural, far east end of Duluth resulted in just that. Fiber optic cable strung from telephone poles ready to connect to homes. However, two years later, the only internet provider “servicing” this part of Duluth has yet to even contact residents about connecting their internet service to this fiber optic line — tantalizingly close, yet impossibly far away. Were taxpayer dollars used for this project as well? Who knows, as our local elected politicians have shown no interest in exploring this issue. Getting fiber optic cable into rural communities is a great political talking point. However, it seems that politicians really don’t care if the cable is actually used.
Many of us living in rural areas, in frustration, have abandoned the promise of fiber optic internet and turned instead to Starlink high-speed satellite internet for a fraction of the $3,800-per-household cost our county just approved for the Rice Lake project. I hope that the county commissioners were smart enough to make sure this massive amount of money promised for this project will have the intended result of gaining high-speed internet access for our rural friends and neighbors. But from my experience, I am skeptical.
I understand the frustration – but I think it rest more in the follow though and follow up than on the investment.
LTD Broadband, the largest potential recipient of federal (RDOF) funding for broadband, has been in the news a lot because they (and the communities where they applied to provide service) are in limbo as they wait to hear if they do indeed get the funding. I’m trying not to duplicate the story too much – but did want to add the local respective from the Timbejay…
LTD was a moderately-sized internet provider going into the 2020 FCC auction, with about 100 employees serving about 18,000 customers in six states, mostly in Minnesota.
But LTD walked away from that auction as the largest awardee in the nation, winning service area development bids worth $1.32 billion in federal funding to build broadband infrastructure for nearly 530,000 residents in 15 states.
That winning bid included nearly all of the federally eligible tracts in the North Country outside of already established broadband providers such as Midco and Frontier Communications. Because the Minnesota Border-to-Border Broadband Development initiative will not give state subsidies for development in FCC-designated tracts, LTD’s FCC funding gives them a virtual lock on otherwise unprofitable development in these areas.
Paul Bunyan Communications was forced to eliminate numerous potential service locations from its broadband project for Cook because they were in FCC tracts awarded to LTD, and PBC could not use its Border-to-Border grant to pay for extending its service to those areas.
Greenwood Township is an area awarded to LTD in the FCC auction and an example of how the award can affect future development. The township has the option to wait for LTD to build its broadband network there, and the FCC monies make it a viable economic venture for LTD. Township officials have been working with another company to explore possibilities for getting service faster than they might through LTD, but cost is a serious issue. Greenwood is like all of the other tracts in the FCC auction in that companies have found the expense of serving them to be cost prohibitive without government subsidies. LTD is the only company qualified to receive subsidies for a project in Greenwood right now.
However, if the ETC designation for LTD is revoked by the PUC, they would be declared in default of their agreement with the FCC and lose access to those funds. Other companies could then step up to compete for alternative funding to build out service, according to information provided to the Timberjay on Tuesday by FCC spokesperson Anne Veigle.
Here’s a shortlist of opportunities:
The NTIA reports…
Today, U.S. Commerce Secretary Gina M. Raimondo will visit Durham, N.C., to announce the launch of the Biden-Harris Administration’s Internet for All initiative, which will invest $45 billion to provide affordable, reliable, high-speed internet for everyone in America by the end of the decade. The initiative will be administered and implemented by the U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA).
The Internet for All initiative will build internet infrastructure, teach digital skills, and provide necessary technology to ensure that everyone in America – including communities of color, rural communities, and older Americans – has the access and skills they need to fully participate in today’s society.
The Internet for All programs launched today with three Notices of Funding Opportunity:
- Broadband Equity, Access, and Deployment (BEAD) Program ($42.5 billion)
- Enabling Middle Mile Broadband Infrastructure Program ($1 billion)
- State Digital Equity Act program ($1.5 billion)
They are hosting a series of webinars on the funds, starting May 16.
There’s not much to say about the resource (Stronger Together: Federal funding and planning strategies designed to promote sustainable economic development in rural America) so I’ll borrow from the document itself…
Together, the U.S. Department of Commerce Economic Development Administration (EDA) and the U.S. Department of Agriculture Rural Development (USDA RD) are pleased to offer this joint planning resource guide, designed to help you eliminate barriers and encourage collaboration among your stakeholders.
It is a series of super useful tables. More of a reference work than a coffee top (or even night stand) book. It would be easy to spur conversation based on the info or get follow up information.
The Fairmont Sentinel reports…
Ceylon City Council held its May meeting on Tuesday. It began with a phone message from CEDA’s Kelly Wilken which discussed the responses to the broadband project. The council had read the sealed bids that had been opened at a previous meeting. The LTD Company was one of the bidders and discussion was held about the FCC questioning their capabilities to do broadband to more than 100,000 in Minnesota. The Federated REA bid was also discussed. The council liked the fact that the FREA has been reliable in the town and that they are a more local company with a good business reputation. The council approved beginning contract negotiations with FREA concerning the broadband in Ceylon. They scheduled a meeting for negotiations for May 26th. This will give FREA a time to round out their contract proposal.
I assume the funding is coming from their Small Cities Coronavirus Community Development Block Grant Program award.
From a speech from FCC Chairwoman Rosenworcel to the National Coalition for Technology in Education and Training as summarized by the Benton Institute for Broadband and Society...
For more than two decades, E-Rate has provided vital support to help connect schools and libraries to high-speed, modern communications all across the country. It got its start as part of the Telecommunications Act of 1996. Over 25 million children take the bus to school every day. In rural areas that ride can be long. It can easily be an hour to school and an hour to return home at the end of the day. It’s good for young people to spend some time daydreaming, decompressing, and talking to friends, but wouldn’t it be nice if kids had the option of using this time to connect for homework? The good news is we have a workable, common-sense solution. We can connect our school buses and make them Wi-Fi-enabled—think of it as Wi-Fi on wheels. I am proposing a plan to my colleagues to make Wi-Fi on school buses eligible for E-Rate support. This is not a far leap to make. It’s both consistent with the law and the history of the program. After all, for many years E-Rate supported the use of communications for school buses—like wireless phones used by drivers—when shepherding students to and from school.
A quick note for folks who want to watch in real time – the Conference Committee is meeting this afternoon and the event will be livestreamed. I will try to watch and capture the broadband discussions; the schedule is subject to change with little warning.
Here’s the info from the MN Leg site…
Location: Remote Hearing
Chair: Rep. Mike Sundin
I. Review of agriculture-related funding provisions that are contained in both bills
II. Review of selected House only agriculture provisions
– MDA IT
– Beginning Farmer Tax Credit
– Bioincentives language
– Hunger relief initiative
– Farm down payment initiative
III. Review of selected Senate only agriculture items (if time allows)
– ACRRA maximum reimbursement/payment increase
– Regulated animal exemptions modified
– Compensation to Certain White-tailed Deer Farmers
– Certain solar energy systems allowed in agricultural preserves
IV. Adoption of same agriculture language items (if time allows)
*House holds the gavel.
* HF4366 / SF4019 Omnibus agriculture, housing and broadband bill.
House conferees: Sundin, Hausman, Howard, Vang, Theis
Senate conferees: Westrom, Draheim, Dornink, Pratt, Dziedzic
Meeting material will be posted on the House Agriculture Committee page https://www.house.leg.state.mn.us/committees/home/92001
This remote hearing may be viewed via the House webcast schedule page: https://www.house.leg.state.mn.us/htv/schedule.asp All events are closed-captioned.
To provide feedback on digital accessibility of meeting information, please submit comments through the Minnesota Legislature Accessibility & Usability Comment Form. If you require an accommodation, please contact John Howe at: John.Howe@house.mn or by leaving a message at 651-296-3208. Please do not contact him with questions about the substance of the meeting agenda. To learn more about requesting an accommodation, please visit the FAQs for Disability Access.
Written comment (PDF file format) submitted to email@example.com and firstname.lastname@example.org by noon on May 11, 2022 will be posted and shared with members.
CC spreadsheet comparison.pdf
Ag appropriations articles side-by-side.pdf
Ag Articles side-by-side.pdf
MN Realtors Written Comment on Housing.pdf
HF4366 SameSimDiff (AgOnly).pdf
HOM Written Comment on Housing.pdf
AARP Written Comment on Broadband .pdf
I reported on this meeting yesterday, but here’s the official word from Session Daily…
The committee received a walkthrough of HF4366, which includes differences of $180 million in housing appropriation changes in fiscal year 2023 and $185 million in the next biennium. Differences in agriculture and broadband appropriation changes are $76.4 million in fiscal year 2023 and $7.8 million in the following biennium.
Here’s the detail related to broadband…
The House would appropriate $25 million from the General Fund to the Border-to-Border Broadband Fund account as a one-time transfer in fiscal year 2023. The bill would increase the percentage of the grants to cover 75% of a project from the current 50% and would establish that grants to a single project cannot exceed $10 million, double the current level.
Establishment of a pilot program to provide broadband service to unserved and underserved areas of the state is included in the Senate bill. So is seeking to use federal funding, with a grant application program to the U.S. Department of the Treasury requesting that $110.7 million of Minnesota’s capital projects fund be allocated for grants.
[MORE: View a side-by-side comparison of the broadband portion]
I mentioned this over the weekend and I suspect there will be more article but this has the potential to be a big deal so I’ll likely post them all.
Two trade groups have filed a petition with the Minnesota Public Utilities Commission saying LTD Broadband will waste taxpayer time — and money — in the company’s bid to provide high speed broadband to roughly 160,000 people in the state.
The trade groups (MTA and MREA) say…
“Public funding is essential to bring broadband to unserved and underserved areas of rural Minnesota,” says the filing submitted by the Minnesota Telecom Alliance and the Minnesota Rural Electric Association. “But public dollars are limited, making it essential that those who obtain public funding can be counted on to deliver broadband to those areas as intended. The record will show that LTD cannot.”
Corey Hauer, the CEO of LTD Broadband, described the petition as a nuisance given the PUC has already approved the company. He said LTD can grow rapidly to meet the challenge of deploying a massive network of fiber-optic cable, despite having little experience building fiber, and will disrupt the industry like Elon Musk did with SpaceX and Tesla.
“The truth LTD Broadband is exposing is that deploying rural fiber is easier, faster and cheaper than the party line touted by some of our rural … competitors,” Hauer said.
What could happen…
If the PUC sides with the coalition of telecom providers and electric cooperatives, it would be the latest in a string of defeats for LTD Broadband across the country — and another reversal for a company that shocked the broadband industry by winning $1.32 billion in subsidies in 15 states from one of the country’s largest efforts to bring high-speed internet to rural areas.
Today the following was held:
Conference Committee on HF4366
HF4366 (Sundin/Westrom) Omnibus agriculture, broadband and housing supplemental finance and policy bill.
– Introductory comments.
– Walk through of side-by-sides and spreadsheet by nonpartisan House and Senate staff.
– Agency comments.
I have captured the moments related to broadband. Nothing surprising. And now the plan is for House and Senate to meet separately to decide what they can agree on easily and what will require more discussion. Then they will meet to try to come to an agreement.