The state is nearing a final decision for how to distribute $2
billion of last-mile broadband infrastructure funds. A
preliminary decision adopted earlier this month addressed
questions like how much will go to projects in each county, what
types of organizations are eligible, and what kinds of
affordability requirements the state will attach to the funded
projects.
One of the main points of interest for counties is how the funds
will be divided geographically. SB 156 requires the $2 billion to
be split evenly between projects in rural and urban counties but
did not define those terms. Within each of those designations, SB
156 further requires awards to be divided based mostly on the
share of unserved households in each county.
While these requirements will ensure that the funds benefit
residents in all areas of the state, it is inevitable that any
single factor will fail to direct funds proportionate to their
need.
CSAC filed comments with the California Public Utilities
Commission (CPUC) urging them to keep in mind the inequities
their final formula will create and to intentionally use future
funds to correct them.
CSAC also encouraged the CPUC to prioritize applications from
counties. Unlike traditional internet service providers, counties
are accustomed to providing infrastructure based on need instead
of profitability. The proposed decision provides a bonus, which
CSAC supports, for applications made by or in coordination with
local agencies, Tribes, nonprofits, and cooperatives.
The proposed decision also creates a system of ministerial review
for applications that meet certain criteria. While this will help
get funds out to projects more quickly, the criteria effectively
exclude applications from counties. CSAC requested the CPUC
either explicitly allow counties to use the ministerial review
process or otherwise expedite applications from counties.
Affordability is another important piece of the proposed
decision. Because access to broadband is meaningless if it is not
affordable, CSAC supports the requirement for grantees to
participate in the federal ACP, which subsidizes monthly
broadband services for low-income households, and other
affordability components of the decision.
The final decision will be adopted as early as next month and the
CPUC will begin accepting applications after that. The federal
funds must be obligated by the end of 2024 and spent with work
completed by the end of 2026.
