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Virginia and Louisiana Each Release BEAD Implementation Plans, Volume Two

Outlines subgrant processes and application scoring criteria.

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Photo of Tamarah Holmes

WASHINGTON, August 25, 2023 – Virginia became the first state to release volume two of its Broadband Equity Access and Deployment program for public comment last week, followed closely by Louisiana on Friday.  

The two states seem to be in a contest for “first in the nation” status in implementation of the signature program $42.5 billion program for broadband infrastructure under the Infrastructure Investment and Jobs Act of 2021. Louisiana was the first state to publicly release its five-year and digital equity plans in May and which released it initial proposal volume two on Friday. Many states are looking to Virginia and Louisiana to pave the way forward in designing BEAD program subgrants and answer questions on how to allocate broadband serviceable locations and how to score applications. 

Dr. Tamarah Holmes, Virginia’s state broadband officer, has said that the state is on an accelerated timeline for deployment of EBAD funds. It was the first to release the first volume of its initial proposal, due within 180 days of receiving allocation announcements in late June.  

Initial proposal volume one outlines how the state will run their state challenge process, which builds on the Federal Communications Commission’s national broadband map. Volume two details the state’s subgrant program. Once approved, states will have access to at least 20 percent of allocated funds. 

Virginia’s initial proposal, volume two, outlined the state’s vision for closing the digital divide, addressing adoption issues and enhancing economic growth and job creation. It hopes to complete construction of BEAD funded projects by 2027 and 2028 and increase adoption of the federal broadband subsidy program American Connectivity Program and invest all BEAD money by the end of 2024. 

The state’s selection process for BEAD will begin accepting pre-applications form applicants over a 60-day period. Pre-applications must include high level information about the applicant and a statement of qualification for building broadband to unserved and underserved areas of the state.  

After the pre application submission deadline, Virginia will publish defined application areas to conflict project areas so that no two applicants are proposing to serve the same locations. Applicants will be required to propose to serve all locations in an application area when submitting applications, “the Office of Broadband will not entertain proposals which do not seek to provide broadband access to all locations within a defined application area.” 

Full applications are due 90 days prior the publishing of application areas, which the state office will review and announce. It will also publish a timeline of the process on the office website.  

Scoring for BEAD applications will be 45 percent the most cost-efficient proposal, evaluated by the total funding requested to provide broadband access to a defined application area. 20 percent of the score will be based on affordability, referring the applicant’s commitment to provide the most affordable total price to customer for 1 Gigabit symmetrical speed. If the service package is at or below $100 per month, the applicant will receive full credit for this section. 

Fair labor practices will take up 10 percent of project scoring. Applicants must demonstrate plans to comply with federal labor and employment laws or produce a record of compliance to these laws. Speed to deployment consists of 5 percent of the score in which providers are scored based on the timeline they produce. The remaining 20 percent is given to local and tribal coordination efforts. 

“It is firmly expected that funding available under the BEAD program will address all unserved, underserved and community anchor institutions that lack broadband access,” read Virginia’s plan. 

Louisiana emphasizes a ‘sense of urgency’

Louisiana’s initial proposal volume two draft outlined that its goal is to provide reliable internet to all residents with a “sense of urgency.” Accordingly, the state will be looking for funded projects to be constructed and executed in the next five years. 

The state differs from Virginia in the way it plans to execute its subgrant process and score project applications. Although it will organize the eligible locations in the state into a set of predefined areas, prospective subgrantees will have “wide flexibility” to define their proposed project areas, Louisiana proposes. Proposals can be submitted in the form of groups of project areas as defined by the state. 

Higher cost locations will be paired with more desirable eligible locations within each designated area to ensure that providers are equally as competitive for these hard-to-reach areas. 

ConnectLA will release pre-qualification requirements to interested prospective subgrantees as well as a list of proposed predefined areas, after which subgrantees can provide required financial, operational, managerial and technical qualifications. Prospective subgrantees will be notified after this window whether they have been deemed qualified to participate in the program. They will then submit round one applications.  

Applications will be analyzed to identify any overlap between applications. Any project that brings fiber to the home that does not overlap with any other application will be awarded at the funding level requested, read the proposal. Round two applications will then commence.  

Louisiana proposes to rate applications on a point system. Out of a score of 200 possible points, projects will be awarded based on the percentage of maximum available funds requested for a total project area and the percentage of improvement over reference service pricing. It will rank out of 100 possible points a holistic score on fair labor practices based on compliance record. 

Additionally, it plans to allocate points to an applicant for enforceable deployment plans faster than 48 months, including economically challenged areas, committing to designated areas that lack resiliency infrastructure, affirmative support from tribal and local stakeholders. It will provide 50 points for fiber to the home projects.  

Scoring varies significantly from Virginia’s plan. But both prioritize meeting unserved needs, fair labor practices and affordability. Initial proposals are open for a 30-day comment period. 

Contributing Reporter Teralyn Whipple, who joined Broadband Breakfast in 2022, studied marketing at Brigham Young University. She has reported extensively on broadband infrastructure, investments and deployment. She has also headed marketing campaigns for several small companies.

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$113 Million in Broadband Grants Aim to Empower Colorado’s Local Providers

All but one of the awardees are Colorado-based internet service providers.

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Photo of Highway 160 in Colorado TKN from Defense Visual Information Distribution.

WASHINGTON, January 4, 2024 – Colorado on Wednesday tentatively granted more than $113.5 million in broadband expansion awards to 13 applicants to connect nearly 19,000 homes and businesses across southwest Colorado. 

All but one of the awardees are Colorado-based internet service providers and municipal network operators. The other, Visionary Communications, offers service across two additional states, Montana and Wyoming. 

Administered through the Advance Colorado Broadband Grant Program, the awards were funded by the Treasury Department’s Capital Projects Fund. The program saw fierce competition, receiving 112 applications seeking a combined total of over $642 million across 47 counties.

Clearnetworx emerged as a major victor, securing $25.3 million for five projects. Based in Montrose, Colorado, the locally owned and operated fiber and wireless service provider arose in 2012 to address the region’s broadband scarcity.

Clearnetworx has been granted awards to install fiber along Highway 160 and Highway 184 in Montezuma County. This development coincides with the Colorado Transportation Commission’s recent approval of a fee schedule that allows broadband service providers to install fiber along the state’s roadways at reduced rates. Under the revised fiber access fee structure, broadband providers in rural counties such as Montezuma will gain access to some of the most competitive rates in the region, priced at $0.03 per foot.

Close on its heels, Maverix Broadband, is in line to win $25.1 million, aiming to deploy fiber-to-the-home services across Gilpin, Boulder, Chaffee, and Saguache counties, and Kiowa city, extending coverage to 731 locations in a city of 725 residents.

Fort Collins Connexion, a municipal broadband utility, secured $10.8 million for four projects serving 1,409 locations in Larimer County. Meanwhile, another municipal network operator, Loveland Pulse, is slated to receive $3.2 million to extend fiber connectivity to three service areas.

The Southern Ute Indian Tribe secured $8.5 million to serve 557 locations within the Southern Ute Reservation, marking a significant step in enhancing connectivity.

The recipients are committing over $42 million in additional funds towards the project’s costs – a total $155.5 million investment. 

Additionally, more funding from the Capital Projects Fund is designated for the Ridge View campus in rural Colorado. This initiative aims to establish a supportive residential community to aid in overcoming homelessness, ensuring long-term housing stability, and fostering successful reintegration into preferred communities.

The awards are set for finalization following an ongoing challenge process.

The state is committed to connecting 99 percent of Colorado’s households to “adequate” broadband by 2027. Today, over 90 percent of Colorado’s households and businesses have access to internet with 100 * 20 Megabits per second service, according to state data.

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Funding

Florida Announces $13 Million for Broadband Devices

The money will allow community centers to loan devices like laptops and routers.

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Photo by Shannon McGee

WASHINGTON, January 4, 2024 – Florida announced on Wednesday $13 million in grant funding for devices through its Digital Connectivity Technology Program.

Counties, municipalities, non-profits, and organizations serving high-poverty areas can apply for grants until March 4. The funds can be used to make devices like laptops and routers available for loan at local community centers, or to equip those community centers with connectivity equipment and devices.

The money comes from the Treasury Department’s Capital Projects Fund, a $10 billion pandemic response that provides states money for expanding broadband infrastructure and other connectivity projects. About $9 billion of that has been awarded so far.

Florida received an additional $247 million in CPF funds for its Broadband Infrastructure Program, which the state awarded in July. Those projects are expected to get broadband 59,000 homes, businesses, farms, and community centers. 

CPF rules require new infrastructure funded by the program to deliver speeds of at least 100 * 100 Megabits per second (Mbps), but most projects funded by the state are expected to provide up to 1 * 1 Gigabit per second (Gbps).

The state will hold a webinar on the Digital Connectivity Technology Program’s application process on January 10.

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Funding

In Year-End Message, FCC Chairwoman Urges Affordable Connectivity Funding

The low-income internet subsidy could run out of funding as early as April 2024.

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Photo of FCC Chairwoman Jessica Rosenworcel from December 2022

WASHINGTON, December 29, 2023 – Federal Communications Commission Chairwoman Jessica Rosenworcel again called for Congress to fund the Affordable Connectivity Program.

In a year in review note published Friday, Rosenworcel touted the FCC’s efforts to promote the ACP, which provides a $30 monthly internet discount to low-income households. She noted the more than $77 million in ACP outreach grants – money for organizations to advertise the program and get eligible households enrolled –  the Commission awarded in 2023 and the 7 million new households that signed up for the program, bringing the total to more than 22 million.

“But our progress here cannot slow down – we need help from Congress to keep this groundbreaking program going,” she wrote.

The ACP was set up with a $14.6 billion allocation from the Infrastructure, Investment and Jobs Act. About $3.6 billion of that remains, according to a monitoring tool developed by the advocacy group Institute for Local Self-Reliance. Rosenworcel testified to the Senate in September that the Commission expects that money to dry up as early as April 2024.

Republican leaders on the House and Senate commerce committees expressed some skepticism about the program in a December 18 letter to Rosenworcel, calling the ACP “wasteful” because many enrolled low-income households were able to subscribe to broadband before receiving the subsidy. The FCC’s estimates put the number at 78 to 80,  Rosenworcel testified at a November House oversight hearing, but she noted the figures are not exact, as providers are not required to collect that information when someone enrolls.

President Joe Biden asked Congress in October for $6 billion to keep the fund afloat through 2024. Bipartisan groups of lawmakers and broadband industry groups have also pushed for Congress to refund the program, saying it will be an important tool for closing the digital divide and ensuring low-income subscribers stay online.

Providers who build new infrastructure with money from the Infrastructure Act’s $42.5 billion Broadband Equity, Access and Deployment program will be required to participate in the ACP, which experts have said would help stabilize revenue for ISPs who build in the hard-to-serve areas targeted by BEAD.

Rep. Yvette Clarke, D-New York, hinted at introducing a bill before the new year to address the impending ACP shortfall during the FCC oversight hearing, but the legislation has not yet materialized.

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