Second Reading of SF4942 including items related to broadband grant fund transfer and federal application

The MN Senate General Orders for April 25, 2024 reports…

S.SF. No. 4942: (SENATE AUTHORS: FRENTZ; Companion to H.F. No. 4975) A bill for an act relating to state government; authorizing supplemental agriculture appropriations; providing broadband appropriation transfer authority; making policy and technical changes to agriculture provisions; establishing and modifying agriculture programs; requiring an application for federal broadband aid; modifying appropriations to the Office of Cannabis Management and the Department of Health; modifying fees assessed by the Department of Commerce; adding the Minnesota Consumer Data Privacy Act; adding and modifying consumer protection provisions; appropriating money for energy, utilities, environment, and climate; requiring utilities to accept an individual taxpayer identification number when new customers apply for utility service; allowing public utilities providing electric service to propose goals for fuel-switching improvement achievements to the commissioner of commerce; modifying the commercial property assessed clean energy program; making technical changes to various provisions governing or administered by the Department of Commerce; requiring reports; appropriating money; amending Minnesota Statutes 2022, sections 17.116, subdivision 2; 17.133, subdivision 1; 18C.70, subdivision 5; 18C.71, subdivision 4; 18C.80, subdivision 2; 28A.10; 31.94; 32D.30; 41B.047, subdivision 1; 45.0135, subdivision 7; 62Q.73, subdivision 3; 116J.396, by adding a subdivision; 216B.098, by adding a subdivision; 216B.16, subdivisions 6c, 8; 216B.2402, subdivision 10, by adding a subdivision; 216B.2403, subdivisions 2, 3, 5, 8; 216B.241, subdivisions 2, 11, 12; 216C.10; 216C.435, subdivisions 3a, 3b, 4, 10, by adding subdivisions; 216C.436, subdivisions 1, 4, 7, 8, 10; 325E.21, by adding a subdivision; Minnesota Statutes 2023 Supplement, sections 17.055, subdivision 3; 17.133, subdivision 3; 18C.425, subdivision 6; 35.155, subdivision 12; 41B.0391, subdivisions 1, 2, 4, 6; 116C.779, subdivision 1; 144.197; 216C.08; 216C.09; 216C.435, subdivision 8; 216C.436, subdivisions 1b, 2; 325E.21, subdivision 1b; 342.72; Laws 2023, chapter 43, article 1, section 2, subdivisions 1, 2, 3, 4, 5; Laws 2023, chapter 63, article 9, sections 5; 10; 15, subdivision 4; 20; proposing coding for new law in Minnesota Statutes, chapters 13; 58B; 62J; 216C; proposing coding for new law as Minnesota Statutes, chapter 325O; repealing Minnesota Statutes 2022, section 34.07.

DATE D-PG OFFICIAL STATUS
03/13/2024 12195 Introduction and first reading
03/13/2024 Referred to State and Local Government and Veterans
04/11/2024 13655 Withdrawn and re-referred to Energy, Utilities, Environment, and Climate
04/18/2024 14300a Comm report: To pass as amended and re-refer to Finance
04/24/2024 Comm report: To pass as amended
04/24/2024 Second reading

 

Update on House bills related to broadband grant requirements and fund distribution

The Journal of the House (April 24, 2024) updates two items related to broadband. I have tried to pull out the pertinent information from the Reports of Standing Committees and Divisions.

  • At the very highest level the first item would give DEED and the Office of Broadband Development more authority for spending the money available for broadband grants.
  • The second would give unserved areas priority over underserved areas looking for broadband grants. It reserves a percent of funds for projects that agree to implement the workforce best practices, which includes prevailing wage and 80 hours of training. They also specify similar goals for BEAD funding; however, the Office of Broadband Development can eschew rules if that adhering to them would present the state from getting federal funding. The bill also recommends a standards for a safety-qualified underground telecommunications installer certification program.

ARTICLE 4 BROADBAND

Section 1. Minnesota Statutes 2022, section 116J.396, is amended by adding a subdivision to read:

Subd. 4. Transfer. The commissioner may transfer up to $5,000,000 of a fiscal year appropriation between the border-to-border broadband program, low density population broadband program, and the broadband line extension program to meet demand. EFFECTIVE DATE. This section is effective the day following final enactment.

Sec. 2. BROADBAND DEVELOPMENT; APPLICATION FOR FEDERAL FUNDING; APPROPRIATION.

(a) The commissioner of employment and economic development must prepare and submit an application to the United States Department of Commerce requesting State Digital Equity Capacity Grant Funding made available under Public Law 117-58, the Infrastructure Investment and Jobs Act.

(b) The amount awarded to Minnesota pursuant to the application submitted under paragraph (a) is appropriated to the commissioner of employment and economic development for purposes of the commissioner’s Minnesota Digital Opportunity Plan.”

Delete the title and insert:

“A bill for an act relating to state government; authorizing supplemental agriculture appropriations; modifying appropriations; providing broadband appropriation transfer authority; making policy and technical changes to agriculture provisions; establishing and modifying agriculture programs; requiring an application for federal broadband aid; requiring reports; appropriating money; amending Minnesota Statutes 2022, sections 3.7371, subdivisions 2, 3, by adding subdivisions; 17.133, subdivision 1; 18B.01, by adding a subdivision; 18B.26, subdivision 6; 18B.28, by adding a subdivision; 18B.305, subdivision 2; 18B.32, subdivisions 1, 3, 4, 5; 18B.33, subdivisions 1, 5, 6; 18B.34, subdivisions 1, 4; 18B.35, subdivision 1; 18B.36, subdivisions 1, 2; 18B.37, subdivisions 2, 3; 18C.005, subdivision 33, by adding subdivisions; 18C.115, subdivision 2; 18C.215, subdivision 1; 18C.221; 18C.70, subdivision 5; 18C.71, subdivision 4; 18C.80, subdivision 2; 18D.301, subdivision 1; 28A.10; 28A.21, subdivision 6; 31.74; 31.94; 32D.30; 41B.039, subdivision 2; 41B.04, subdivision 8; 41B.042, subdivision 4; 41B.043, subdivision 1b; 41B.045, subdivision 2; 41B.047, subdivision 1; 116J.396, by adding a subdivision; 223.17, subdivision 6; 232.21, subdivisions 3, 7, 11, 12, 13; Minnesota Statutes 2023 Supplement, sections 17.055, subdivision 3; 17.133, subdivision 3; 17.134, by adding a subdivision; 18C.421, subdivision 1; 18C.425, subdivision 6; 18K.06; 41A.19; Laws 2023, chapter 43, article 1, sections 2; 4; proposing coding for new law in Minnesota Statutes, chapters 18B; 18C; repealing Minnesota Statutes 2022, sections 3.7371, subdivision 7; 34.07; Minnesota Rules, parts 1506.0010; 1506.0015; 1506.0020; 1506.0025; 1506.0030; 1506.0035; 1506.0040.”

With the recommendation that when so amended the bill be re-referred to the Committee on Ways and Means.

The report was adopted


ARTICLE 8

BROADBAND AND PIPELINE SAFETY

Section 1. Minnesota Statutes 2022, section 116J.395, subdivision 6, is amended to read:

Subd. 6. Awarding grants. (a) In evaluating applications and awarding grants, the commissioner shall give priority to applications that are constructed in areas identified by the director of the Office of Broadband Development as unserved.

(b) In evaluating applications and awarding grants, the commissioner may give priority to applications that:

(1) are constructed in areas identified by the director of the Office of Broadband Development as underserved;

(2) offer new or substantially upgraded broadband service to important community institutions including, but not limited to, libraries, educational institutions, public safety facilities, and healthcare facilities;

(3) facilitate the use of telehealth and electronic health records;

(4) serve economically distressed areas of the state, as measured by indices of unemployment, poverty, or population loss that are significantly greater than the statewide average;

(5) provide technical support and train residents, businesses, and institutions in the community served by the project to utilize broadband service;

(6) include a component to actively promote the adoption of the newly available broadband services in the community;

(7) provide evidence of strong support for the project from citizens, government, businesses, and institutions in the community;

(8) provide access to broadband service to a greater number of unserved or underserved households and businesses; or

(9) leverage greater amounts of funding for the project from other private and public sources.

(c) The commissioner shall endeavor to award grants under this section to qualified applicants in all regions of the state. 104TH DAY] WEDNESDAY, APRIL 24, 2024 14265

(d) No less than the following percentages of the total border-to-border broadband grant funds awarded in the year indicated shall be reserved for applicants that agree to implement the workforce best practices as defined in paragraph (e):

(1) 50 percent in 2024;

(2) 60 percent in 2025; and

(3) 70 percent in 2026 and thereafter.

The applicant’s agreement to implement the workforce best practices as defined in paragraph (e) must be an express condition of providing the grant in the grant agreement.

(e) An applicant for a grant under this section is considered to implement workforce best practices only if the applicant can demonstrate that:

(1) there is credible evidence of support for the application and the applicant’s workforce needs on the project for which the grant is provided from one or more labor, labor-management, or other workforce organizations that have a track record of representing and advocating for workers or recruiting, training, and securing employment for people of color, Indigenous people, women, or people with disabilities in the construction industry; and

(2) all laborers and mechanics performing construction, installation, remodeling, or repairs on the project sites for which the grant is provided:

(i) are paid the prevailing wage rate as defined in section 177.42, subdivision 6, and the applicant and all of its construction contractors and subcontractors agree that the payment of prevailing wage to such laborers and mechanics is subject to the requirements and enforcement provisions under sections 177.27, 177.30, 177.32, 177.41 to 177.435, and 177.45, which the commissioner of labor and industry shall have the authority to enforce; or

(ii) receive from their employer:

(A) at least 80 hours of skills training annually, of which at least 40 hours must consist of hands-on instruction;

(B) employer-paid family health insurance coverage; and

(C) employer-paid retirement benefit payments equal to no less than 15 percent of the employee’s total taxable wages.

(f) In the event that the commissioner does not receive enough qualified applications to achieve the standards under paragraph (d), the commissioner shall consult with prospective applicants and labor and workforce organizations under paragraph (e), clause (1), to solicit additional qualified applications.

Sec. 2. [116J.3991] BROADBAND, EQUITY, ACCESS, AND DEPLOYMENT (BEAD).

Subdivision 1. Implementation. The commissioner shall implement a Broadband, Equity, Access, and Deployment (BEAD) Program that prioritizes applicants for state funding that demonstrate the following:

(1) commitment by the applicant to robust training programs with established requirements that are tied to uniform wage scales, job titles, and relevant certifications or skill codes

(2) use of a directly employed workforce, as opposed to a subcontracted workforce, to perform broadband placing, splicing, and maintenance work. Public entity applicants may meet this requirement by use of a directly employed workforce or committing to contract with an Internet service provider that will use a directly employed workforce;

(3) commitment to implement workforce best practices under section 116J.395, subdivision 6, paragraph (e), on the project or projects for which the applicant seeks public funding; and

(4) commitment to retaining a locally based workforce and establishing programs to promote training and hiring pipelines for underrepresented communities.

Subd. 2. Project evaluation. In projects funded by the BEAD Program, the criteria under subdivision 1 and section 116J.395, subdivision 6, paragraph (e), shall receive a priority point allocation in the point scheme for project applications, such that these criteria shall, together with points awarded for labor law compliance, constitute no fewer than 25 points of the evaluation scheme, out of 100. No fewer than 20 points must be based on an applicant’s forward-looking commitments regarding implementation of workforce best practices and other commitments listed in this section.

Subd. 3. Disclosures. Applicants’ disclosures responding to the criteria in subdivision 1 and section 116J.395, subdivision 6, paragraph (e), must be publicly available on the department website, and all workforce commitments made under this section and section 116J.395 shall become enforceable, certified commitments and conditions of the grant.

Subd. 4. Workforce plan data. (a) Grantees in projects funded by the program under this section and section 116J.395 are required to provide in biannual reports information on their workforce, including:

(1) whether the workforce will be directly employed by the grantee or the Internet service provider or whether work will be performed by a subcontracted workforce;

(2) the entities that the contractor plans to subcontract with in carrying out the proposed work, if any, and the entity employing the workforce in each job title;

(3) the job titles and size of the workforce, including the number of full-time equivalent positions that are required to carry out the proposed work over the course of the project;

(4) for each job title required to carry out the proposed work, a description of wages, benefits, applicable wage scales including overtime rates, and a description of how wages are calculated; and

(5) any other workforce plan information as determined by the commissioner.

(b) Following an award, the workforce plan and the requirement to submit ongoing workforce reports shall be incorporated as material conditions of the contract with the department and become enforceable, certified commitments. The commissioner must conduct regular reviews to assure compliance and take appropriate measures for enforcement.

Subd. 5. Failure to meet requirements or falsification of data. If successful applicants fail to meet the program requirements under this section, or otherwise falsify information regarding such requirements, the commissioner shall investigate the failure and issue an appropriate action, up to and including a determination that the applicant is ineligible for future participation in broadband grant programs funded by the department.

Subd. 6. Federal grant requirements. The commissioner shall have authority not to enforce or apply any requirement of this section to the extent that the requirement would prevent the state from receiving federal broadband grant funding.

Sec. 3. [181.912] UNDERGROUND TELECOMMUNICATIONS INFRASTRUCTURE.

Subdivision 1. Definitions. For the purposes of this section:

(1) “directional drilling” means a drilling method that utilizes a steerable drill bit to cut a bore hole for installing underground utilities;

(2) “safety-qualified underground telecommunications installer” means a person who has completed underground utilities installation certification under subdivision 3;

(3) “underground telecommunications utilities” means buried broadband, telephone and other telecommunications transmission, distribution and service lines, and associated facilities; and

(4) “underground utilities” means buried electric transmission and distribution lines, gas and hazardous liquids pipelines and distribution lines, sewer and water pipelines, telephone or telecommunications lines, and associated facilities.

Subd. 2. Installation requirements. The installation of underground telecommunications infrastructure that is located within ten feet of existing underground utilities or that crosses said utilities must be performed by safety-qualified underground telecommunications installers as follows:

(1) the location of existing utilities by hand or hydro excavation or other accepted methods must be performed by a safety-qualified underground telecommunications installer;

(2) where telecommunications infrastructure is installed by means of directional drilling, the monitoring of the location and depth of the drill head must be performed by a safety-qualified underground telecommunications installer; and

(3) no less than two safety-qualified underground telecommunications installers must be present at all times at any location where telecommunications infrastructure is being installed by means of directional drilling.

Subd. 3. Certification Standards. (a) The commissioner of labor and industry shall approve standards for a safety-qualified underground telecommunications installer certification program that requires a person to:

(1) complete a 40-hour initial course that includes classroom and hands-on instruction covering proper work procedures for safe installation of underground utilities, including:

(i) regulations applicable to excavation near existing utilities;

(ii) identification, location, and verification of utility lines using hand or hydro excavation or other accepted methods;

(iii) response to line strike incidents;

(iv) traffic control procedures;

(v) use of a tracking device to safely guide directional drill equipment along a drill path; and

(vi) avoidance and mitigation of safety hazards posed by underground utility installation projects;

(2) demonstrate knowledge of the course material by successfully completing an examination approved by the commissioner; and

(3) complete a four-hour refresher course within three years of completing the original course and every three years thereafter in order to maintain certification.

(b) The commissioner must develop an approval process for training providers under this subdivision, and may suspend or revoke the approval of any training provider that fails to demonstrate consistent delivery of approved curriculum or success in preparing participants to complete the examination.

Sec. 4. Minnesota Statutes 2022, section 216B.17, is amended by adding a subdivision to read:

Subd. 9. Telecommunications and cable communications systems. (a) The commission has authority under this section to investigate, upon complaint or on its own motion, conduct by or on behalf of a telecommunications carrier, telephone company, or cable communications system provider that impacts public utility or cooperative electric association infrastructure. If the commission finds that the conduct damaged or unreasonably interfered with the function of the infrastructure, the commission may take any action authorized under sections 216B.52 to 216B.61 with respect to the provider.

(b) For purposes of this subdivision:

(1) “telecommunications carrier” has the meaning given in section 237.01, subdivision 6;

(2) “telephone company” has the meaning given in section 237.01, subdivision 7; and

(3) “cable communications system provider” means an owner or operator of a cable communications system as defined in section 238.02, subdivision 3.

Sec. 5. Minnesota Statutes 2022, section 299J.01, is amended to read: [The rest of the bill is focused on pipelines]

Nobles County to contribute $35,000 toward Lismore broadband project

The Worthington Globe reports on the Lismore Coop’s MN broadband grant application and Nobles County’s support. It’s an interesting glimpse at all of the moving pieces involved in the application…

The Nobles County Board of Commissioners agreed to financially support Lismore Cooperative Telephone Company’s “Fiber to Home” broadband project and include the community of Bigelow in the project. The project aims to expand broadband access throughout the county.

Project director Chris Koneche of Finley Engineering said the project has seen its share of progress in recent months.

“We really appreciate working with you guys all these years,” he told the board. “We’ve made tremendous strides. The most recent win has been with the USDA Connect Round Four program. I think that’s about a $28 million project that would cover the vast majority of the rural areas in the county with fiber.”

However, Konechne said they were initially unable to include Bigelow in the project due to application restrictions.

“Because of the eligibility restrictions and the sporting criteria in that Round Four application, we didn’t think it would be a wise decision to put the city of Bigelow in that application. That application scores things on rurality … we would have lost or been graded lower in that category with USDA. Additionally, we would’ve had some challenge work with the speeds that Frontier was claiming at the time. For those two reasons and due to the size of it… when you look at this potential project with a budget of somewhere around $675,000, we didn’t think it was really worth the risk to a $28 million project to put that in there.”

Based on a scoring system, Lismore Cooperative Telephone Company Secretary Mark Loosbrock said that in order to obtain a higher level of eligibility for the 30% grant, financial support in addition to a letter of support was recommended.

Second round of Line Extension awards announced

From the Office of Broadband Development

The Office of Broadband Development announced the second round of Line Extension Connection Program awards on a rolling basis beginning March 29, 2024, and ending April 22, 2024. This second round of the program awarded $3,584,040.13 to expand wired broadband delivering at least 100 Mbps download and 100 Mbps upload, to 482 locations across 25 counties. Internet providers carrying out the projects matched $1,490,990.67 for a total investment of $5,075,030.80.

Provider Locations Grant Amount
Access Networks 15 $153,225.00
Arvig Tekstar 69 $543,244.99
Consolidated Tel Co (CTC) 147 $808,700.00
Farmers Mutual Tel Co. 1 $3,800.00
Federated REA 2 $8,169.72
Federated Telephone Coop 5 $58,200.00
Garden Valley Tel 17 $198,972.51
JTN 15 $68,398.23
Mediacom 25 $625,000.00
Meeker Vibrant 33 $202,423.82
Midco Midcontinent Comm. 136 $601,417.00
MLEC Mille Lacs Electric Coop 1 $17,946.00
Savage Communications (SCI) 10 $182,766.86
SE MN WIFI 2 $38,000.00
Sytek 4 $73,776.00
15 482 $3,584,040.13

Round 2 Line Extension Awards by County

County Locations
Aitkin 4
Anoka 17
Becker 55
Big Stone 1
Carver 9
Cass 2
Chippewa 1
Crow Wing 93
Dakota 17
Hennepin 27
Itasca 5
Kandiyohi 23
Mahnomen 17
Martin 2
Meeker 10
Morrison 7
Otter Tail 14
Pine 4
Scott 15
St. Louis 31
Stearns 16
Stevens 1
Swift 3
Todd 41
Washington 67
25 482

 

How Bevcomm is working on MN State Grants in Faribault County?

The Faribault County Register reports on Bevcomm’s plans for the current round of MN State grants. It is an interesting look at how the sausage is funded…

Bill Eckles, president and CEO of Bevcomm, attended the Faribault County Economic Development Board meeting in Frost on Tuesday, April 16 to update the board on the latest broadband grant news.

“First of all, thank you for the last grant you gave us to help us secure the grant to get fiber optic to the Minnesota Lake area,” Eckles said. “Construction should begin soon on that project.”

He also had news regarding the next grant program.

“We were somewhat surprised when the state opened up another round of broadband grants this soon,” Eckles admitted. “Things are changing at the state which will make things more difficult in the future.”

Eckles went on to explain Bevcomm’s plans.

“They have 550 homes in the rural Blue Earth and Wells area that still do not have fiber,” he said. “It is a $7.1 million project to do the work to serve these homes. This is the last round of grants under the current rules and Bevcomm will be applying for a grant which would cover 25 percent of the cost with Bevcomm covering the remainder.”

Eckles told board members the process of seeking the grant is similar to the previous times Bevcomm applied for grants.

“That is why I’m here to see if the EDA would be willing to contribute a $5,000 grant to Bevcomm. We do this because it gives us points on our application when we show the community supporting us,” Eckles commented. “Of course, if we do not get the grant from the state then we do not get the money from the EDA.”

Eckles also informed the board that Bevcomm could have applied for a state broadband grant which would have covered 50 percent of the cost of the $7.1 million project.

“We have a better chance of getting approved by only asking for a 25 percent grant,” he offered. “The grant will not be awarded until later summer or fall and it is a two-year program to get all of the work done to bring fiber to the homes.”

MN Seante hears SF5366: fund transfers in broadband budget

Yesterday the Senate Committee on Agriculture, Broadband, and Rural Development discussed SF5366 – Putnam: Broadband supplemental appropriations and transfers
Governor’s supplemental broadband budget. (I have written about this bill before and have been following the House version HF5231.) They deciced to lay the bill over.

Presentation:

Supplemental budget proposal isn’t asking for more money but asks for permission to shift money among Border to Border, Low Density and Line Extension grant programs based on needs. The areas that are unserved are the hardest and most expensive areas to reach. We need to spend/allocate the state grants so we can take areas-to-be-served off the maps that define eligibility for federal funds. They want to make awards after July 1, 2024.

We need to authorize DEED Commissioner to access/allocate federal funds. Specifically, the recently allocated $12 million from the Digital Equity funds. The next step is to apply for those funds through capacity grants from the feds. MN is also expecting $65 million for broadband deployment.

Questions:

How much money do you want to transfer?
Up to $5 million based on applications received. We get some excellent proposals and look at match. It will just depends on the grants we see.

What area has the greatest need?
The red areas on the map in the presentation are the least served.

Does MN work with neighboring states for federal dollars?
Our broadband grants go to broadband providers, so they are in the better position to partner. But we are working with states to learn together and partnering more with tribal areas.

EVENT April 15: MN Senate to discuss SF5366: shifting funds to/from Border to Border, Low Density and Line Extension grant

On April 15, the Senate Committee on Agriculture, Broadband, and Rural Development will discuss SF 5366 – Putnam: Broadband supplemental appropriations and transfers
Governor’s supplemental broadband budget. (I’ve also been following the House version HF5231.)

Monday, April 15th, 2024 03:00 PM
Committee on Agriculture, Broadband, and Rural Development
Chair: Sen. Aric Putnam
Location: 1150 Minnesota Senate Bldg.

Agenda

Call to Order

SF 5365 – Putnam: Agricultural provisions modifications and appropriation
Governor’s supplemental agriculture budget.

SF 5366 – Putnam: Broadband supplemental appropriations and transfers
Governor’s supplemental broadband budget.

SF 3955 – Putnam: Agricultural growth, research and innovation program base funding increase
Omnibus agriculture finance bill.

You can view this hearing on the Senate Schedule.

Here’s the text as introduced:

A bill for an act
relating to broadband; making supplemental appropriations and transfers relating
to broadband; amending Minnesota Statutes 2022, section 116J.396, by adding a
subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 116J.396, is amended by adding a subdivision
to read:

Subd. 4.

Transfer.

The commissioner may transfer up to $5,000,000 of a fiscal year
appropriation between the border-to-border broadband program, low density population
broadband program, and the broadband line extension program to meet demand.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 2. BROADBAND DEVELOPMENT; APPLICATION FOR FEDERAL
FUNDING; APPROPRIATION.

(a) The commissioner of employment and economic development must prepare and
submit an application to the United States Department of Commerce requesting State Digital
Equity Capacity Grant Funding made available under Public Law 117-58, the Infrastructure
Investment and Jobs Act.

(b) The amount awarded Minnesota from paragraph (a) is appropriated to the
commissioner of employment and economic development for purposes of the commissioner’s
Minnesota Digital Opportunity Plan.

State Historic Preservation Office (SHPO) presentation from Office of Broadband Development

Here are the slides, videos and some notes from today’s webinar on  State Historic Preservation Office (SHPO) and how to interact with them for your broadband deployment proposals.

Update from Office of Broadband Development

  • Current grant round deadline is May 10, 1pm.
  • Digital Equity Plan was approved by NTIA. Identifies areas to support in the State. Awarded $12M.
  • BEAD volumes 1 and 2 are in process.

Presentation from State Historic Preservation Office (SHPO) – how to review historic preservation issue using SHPO and Dep pf Admin portals

Questions:

We have an archeologist, but a new guy says he can do phase 1A and get it reviewed. Is that true or do we need to do it all?
Grant times are strict. We say do all of the fieldwork so as not to waste time. Generally the desktop assessment is not sufficient.

Timeframes – is there a deadline for SHPO to respond?
Not in state statute. Federal deadline is 30 and we try but we simply have too much work. We say it takes 30-60 days.

What are common mistakes?
People miss the cover letter. It helps us hugely – especially if you address your intentions.
Need to understand that cemetery or tribal burial area – are sacred. Try to avoid them.
Tell us as much about the deployment plan as you can so that we can understand the implications of having to make certain charges.

Where can we find past surveys?
We wish – but no plan here

If we are only working on highway do we need to do a review?
Yes.

What’s your take on pole replacement?
It hasn’t come up with broadband.

Drop locations – we don’t normally go to customer location. Is that OK?
We are looking at recommendations on this too. We think it’s the mainline that are important at this point. Some drops have been issues because they go through cemeteries – but usually private cemeteries.

Is review necessary with arial construction?
If you’re putting in new poles – it’s necessary. We haven’t seen many like that.

How about replacing poles?
Yes that needs to be reviewed – if it gets State funding.

If we’re using existing pole, but going over land, do we need to do a review?
No, not if there’s no ground disturbance. Actually sounds like this hasn’t been decided.

Losing ACP impacts low income households, broadband providers and interest in grants

Route Fifty reports that losing Affordable Connectivity Program (ACP) may cause households to lose broadband access…

Congress and President Joe Biden may have touted that people of all incomes would be able to afford the broadband being built with $42.5 billion from the 2021 infrastructure act. But a decision by lawmakers last week is casting uncertainty on that promise.

The concerns from some state broadband officials stem from the fact that Congress did not include funding to preserve the Affordable Connectivity Program, or ACP, as part of the package of spending bills it passed to avoid a government shutdown.

The Federal Communications Commission has said the program, which provides a $30-a-month subsidy to low-income households to pay for internet access, will now end April 30.

That’s not news. They look at an added dimension of losing ACP too; states have built broadband programs based on providers have access to ACP for their customers…

According to state broadband officials in Michigan, Vermont and Pennsylvania, its termination could not only impact the 23 million households on the program, but also those who live in areas where broadband is being built out.

In Michigan, for instance, the state wants to require broadband companies receiving grants under the Broadband Equity, Access and Deployment, or BEAD, program to charge lower-income people no more than $30 a month. Had Congress not ended the program, broadband being created through the BEAD program would have essentially been free for low-income households participating in the ACP.

Minnesota has similar language in their grants – the snippet below is from the most recent Border to Border grant applications

Grantee and any other service provider for a completed Border to Border Broadband Infrastructure project will participate in federal programs that provide low-income consumers with subsidies on broadband internet access services. Grantee agrees that it will allow eligible subscribers in the service area identified in Grantee’s application in Exhibit B to utilize the Federal Communications Commission’s Affordable Connectivity Program (ACP) for the duration of ACP or its successor until the date the Broadband Infrastructure Project funded by this award is no longer in use.

The State has been backed into offering a pig in a poke and applicants are being asked to buy into it. Both are put in a bad position by the end of ACP. We don’t know what a successor program might look like. Will it be attractive enough to allow more people sign up? of recouping costs of building broadband is “take rate” and if it’s too expensive, providers will lose customers and the take rate will be lower. Will it cost providers too much money?  And can you start a new venture without knowing the specifics of a segment of your costs and customer base?

Route Fifty concludes…

Eric Frederick, Michigan’s chief connectivity officer, noted in an interview with Route Fifty that about a third of the state’s households who now have internet access rely on that ACP. Without the subsidy, he estimated that a quarter or a third of the households in the areas where broadband service is being built out under BEAD may struggle to afford it.

“Without the subsidy, I know we’re gonna lose folks,” Frederick said. “It’s not going to be affordable.”

Broadband bills related to broadband deployment (HF4626 & HF4659) discussed in MN House Committee

Today the House Labor and Industry Finance and Policy Committee heard more about:

  • HF4626 (Tabke) Federal pipeline inspection rules modified for individuals performing construction or maintenance work, prevailing wage exemption for broadband workers repealed, and technical corrections made.
  • HF4659 (Berg) Broadband industry installer safety standards required, and Broadband Equity, Access, and Deployment Program implemented.

HF4626 was laid over for possible inclusion. HF4659 was laid over for possible inclusion.

HF4626 (Tabke) Federal pipeline inspection rules modified for individuals performing construction or maintenance work, prevailing wage exemption for broadband workers repealed, and technical corrections made.

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MN Bill introduced: HF5231 on shifting funds to/from Border to Border, Low Density and Line Extension grant

HF 5231 (Vang) was introduced and r-referred to Agriculture Finance and Policy.

Short Description: Supplemental appropriations and transfers relating to broadband made.

It will be discussed in the House Committee on Agriculture Finance and Policy on Thursday, April 4, 2024 from 1 p.m. to 2:30 p.m. in the State Office Building, Basement Hearing Room. The hearing may also be viewed on the House webcast schedule page

Here’s description as introduced…

A bill for an act
relating to broadband; making supplemental appropriations and transfers relating
to broadband; amending Minnesota Statutes 2022, section 116J.396, by adding a
subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. 

Minnesota Statutes 2022, section 116J.396, is amended by adding a subdivision
to read:

Subd. 4. 

Transfer.

The commissioner may transfer up to $5,000,000 of a fiscal year
appropriation between the border-to-border broadband program, low density population
broadband program, and the broadband line extension program to meet demand.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 2. BROADBAND DEVELOPMENT; APPLICATION FOR FEDERAL
FUNDING; APPROPRIATION.

(a) The commissioner of employment and economic development must prepare and
submit an application to the United States Department of Commerce requesting State Digital
Equity Capacity Grant Funding made available under Public Law 117-58, the Infrastructure
Investment and Jobs Act.

(b) The amount awarded Minnesota from paragraph (a) is appropriated to the
commissioner of employment and economic development for purposes of the commissioner’s
Minnesota Digital Opportunity Plan.

More information on MN Broadband grant to Woodstock Communications for Hatfield (Pipestone County)

Pipestone Star reports

Woodstock Communications has been awarded a $1,612,932 broadband grant for a project that would provide fiber optic internet in the Hatfield area. The grant was among $50 million in grants to expand broadband access to an estimated 8,900 homes and businesses throughout Minnesota that were announced on March 5.

“We are excited for the grant area,” said Woodstock Communications General Manager Terry Nelson.

He said the company planned to start the designing, engineering, and permitting processes this summer, and that construction could start in the spring of 2025. He plans to update the Pipestone County Commissioners on the project at their March 26 meeting and hoped to have more information at that time.

The project is estimated to cost $2,150,576, which will be paid for with the grant and a $537,644 local match. The Pipestone County Commissioners voted in October to provide $268,822 for the project, which would cover half of the local match, contingent upon Woodstock Communications receiving the grant to cover 75 percent of the cost.

According to the grant award announcement from the Minnesota Department of Employment and Economic Development, there are 116 total passings in the project area, consisting of 32 unserved households, three unserved businesses and 47 unserved farms. The project will also service 24 under served households, two under served businesses and eight under served farms, according to the announcement.

More on MN Broadband grants in Pine and Aitkin Counties

Moose Lake Star Gazette reports

The state has recently awarded a $3.6 million grant to expand broadband internet service in currently unserved or underserved portions of Pine and Aitkin counties.

The grant has been issued by the Minnesota Department of Employment and Economic Development’s Office of Broadband Development. Officials indicate the funding will allow Savage Communications Inc. to deliver high-speed service to 1,069 locations within the townships of Barry, Finlayson, Hinckley, Kettle River, Norman, Partridge, Pine Lake, Sturgeon Lake, and Wagner, and the city of Rutledge. DEED said SCI plans to offer initial internet speeds of 1 Gbps download and 1 Gbps upload. Farms and businesses are in the project area, as are three township halls.

“It’s great to see more local sites that have lacked access to high-speed internet soon will receive upgraded service,” Dotseth said. “It’s imperative, in today’s electronic age, for residents and businesses in our area to have access to reliable high-speed internet so we can at least be on par with other parts of the state and the world instead of being at a disadvantage.”

The SCI company currently provides service to over 40 communities throughout East Central and Northern Minnesota. Pine County is contributing $75,000 toward the project, which is estimated to cost $7.3 million, DEED said.

Mankato Free Press support MN Broadband Grants (Blue Earth, Faribault, Waseca Brown and Cottonwood counties)

Mankato Free Press posts a positive editorial on the MN Broadband grants, especially those in Blue Earth, Faribault, Waseca Brown and Cottonwood counties.

Thumbs up to more counties in south-central Minnesota getting broadband access.

The projects are thanks to state funding from the Legislature and Gov. Tim Walz.

Blue Earth, Faribault, Waseca Brown and Cottonwood counties’ businesses are among area recipients of more than $50 million in grants to expand broadband access in the state.

The grants will expand broadband access to an estimated 8,900 homes and businesses.

Twenty-four broadband expansion projects will receive grants from the Department of Employment and Economic Development’s Office of Broadband Development.

Easton Telephone Company in Blue Earth and Faribault counties received $435,838 and Hanson Communications in Brown and Cottonwood counties received $395,138 from the Border-to-Border program. Bevcomm Inc. in Waseca County received $4,385,444 from the Low Population Density program.

Slowly, but steadily the state’s rural areas have seen improved broadband access through federal, state and local funding.

More information on Nuvera’s MN Broadband grant in Goodhue County

The Republican Eagle reports

The Minnesota Department of Employment and Economic Development has awarded Nuvera Communications Inc. a $1.9 million grant through the Office of Broadband to bring fiber broadband to unserved and underserved areas in Goodhue County.

And more on the network…

The DEED grant funds will go towards the total project cost of $2.5 million and the remainder of the funding will come from a local match provided by Nuvera and Goodhue County. The project will build fiber service west of White Rock and reach Bell Creek, Cannon Falls, Leon, and Vasa Township areas. There are 86 households, 41 farms, and 9 businesses in the buildout area. …

The grant funds come from DEED’s Low Population Density Program which provides grants to companies building broadband in areas of the state with low population and high broadband deployment costs.