As House GOP leaders ask the Government Accountability Office to audit the U.S. Department of Agriculture (USDA) ReConnect program because of concerns federal funds are being used to “overbuild,” Democratic leaders in the House and Senate have filed legislation that aims to build broadband infrastructure on a national-scale.

The Accessible, Affordable Internet for All Act is a bill that harkens back to when the federal government – through FDR’s Rural Electrification Administration, established in 1935, and the Rural Electrification Act, passed by Congress in 1936 – invested in local cooperatives and brought electricity to the abundance of Americans still living in candle-lit homes without electrically-powered refrigerators.

The proposed legislation may well frame the Democratic agenda on broadband moving forward, as the Biden administration enters the White House in January. It’s a bold bill that has garnered the support of a who’s-who of broadband experts and advocacy organizations from Public Knowledge, the National Consumer Law Center and New America Foundation’s Open Technology Institute to the Benton Institute for Broadband and Society, the Electronic Frontier Foundation, and the National Digital Inclusion Alliance.

Breaking it Down

There’s a lot to unpack in this bill, which is why we are publishing a series of posts exploring the major sections contained in the proposed legislation. This first installment is the 30,000-foot view. Forthcoming posts will examine the legislative details where the devil – or the better angels – can be found.

A pair of broadband bills in Pennsylvania (one of which has been signed into law by the governor, and the other having passed one chamber) represent a collective step forward for broadband by updating regulations and establishing a broadband grant program so as to promote network expansion in rural and unserved parts of the state of Pennsylvania.

Fewer Restrictions, More Money

The first is House Bill 2438 [pdf], which allows electric cooperatives to use existing easements for an affiliate to deliver broadband service without re-negotiating with property owners. The bill also allows cable companies to use cooperative-owned poles with permission and in accordance with existing rates and regulations. It’s designed to make it faster, cheaper, and easier to bring Internet access to rural parts of the state. 

Johnstown Area Regional Industries entrepreneurial coach Blake Fleegle said of the legislation: 

Every county in our region is looking at bringing high-dollar earners to our region. Employers are finding people can be just as effective working in Johnstown as they would be in Washington, D.C., or Pittsburgh. But they need to connect, and that's where broadband comes into play.

Chad Carrick, President and CEO of REA Energy Cooperative, likewise welcomed the legislation while emphasizing the role electric co-ops will play in the state: 

It may be hard for some to believe, but there is a good 40% of Indiana and Cambria counties that either don't have broadband Internet access or it's not up to snuff, according to our surveys to our membership.

2438 passed the state House in June, the Senate at the end of October, and was signed into law by the governor at the end of last month. 

As the nation’s eyes are riveted on the political divide in Georgia and the implications it has for the balance of power in the U.S. Senate, many state residents are also keeping an eye on the digital divide in the Peach State with an aim to expand broadband service to rural residents.

Georgia’s not-for-profit, member-owned electric membership cooperatives (EMCs) are promoting a new “Georgia Solution” to bring more broadband connectivity to the state’s rural regions.

That’s what the statewide trade association representing Georgia’s 41 electric cooperatives is calling its unique “roll out the red carpet” initiative as they hope to lure private Internet Service Providers (ISPs) to expand broadband service now that state lawmakers passed the Georgia Broadband Opportunity Act during the 2020 Georgia General Assembly.

The law, signed by Governor Brian Kemp in August, authorizes the Georgia Public Service Commission (PSC) to set “rates, terms, and conditions for pole attachments between communications service providers and electric membership corporations and their broadband affiliates.”

Filed on October 23 with the state’s PSC to consider for approval, the “Georgia Solution,” aims to entice private ISPs with two “generous and unprecedented offers” -- the “One Buck Deal” and the “Georgia One-Touch-Make-Ready Program.”

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Two-Part “Georgia Solution”

Almost 54,000 electric cooperative residents will see the benefits of a statewide law change in Maryland after a summer filled with changes. After a state vote to allow deregulation, Choptank Electric, which serves member owners across nine counties in Maryland’s Eastern Shore, voted in August to become member-regulated so that the cooperative can pursue broadband projects in a part of the state that has long suffered from poor or no connectivity options. 

A State Law and a Membership Vote

The process unfolded earlier this year, when representatives for the co-op spoke with the legislature in Annapolis about offering broadband to its members. State law at the time meant that electric utilities were regulated by the Public Service Commission, which prevented them from entering the broadband space. 

The Eastern Shore sits across Chesapeake Bay, with 450,000 people living across its nine counties. Driven by a lack of connectivity options and a desire for economic development, area legislators submitted HB 999, which drew support from dozens of businesses, 1,200 current Choptank customers, and a number of local governments. The “Rural Broadband for the Eastern Shore Act of 2020” [pdf] passed the state legislature on May 8th, 2020, and freed the co-op from regulation by the Public Service Commission. Talbot County resident Pamela Keeton testified to the Senate Finance Committee:

The bottom line is, no one wants to pay taxes and no one wants to spend money, so we’re left with no Internet service.

Last December we wrote about Connecticut’s long-awaited victory by court affirmation in the fight to let its cities attach to utility poles at no cost in pursuit of spurring municipal broadband efforts. A similar effort seems to have stalled in its neighbor to the north, with HD 4492 languishing in the Massachusetts Legislature’s Telecommunications, Utilities and Energy Committee. 

The bill, “An Act To Establish Municipal Access To Utility Poles Located In Municipal Rights-Of-Way,” is simple. It modifies Chapter 166, Section 22a of the state’s General Laws to eliminate pole attachment fees for cities working to build broadband networks to reach “unserved or underserved areas” (as defined by the Massachusetts Broadband Institute (MBI)), shifting the expense instead to the current pole owner(s). John Barrett introduced the bill and two dozen fellow legislators co-signed it. It calls for: 

Notwithstanding any provision of law to the contrary, for the purpose of safeguarding access to infrastructure essential to public health, safety and welfare, an owner of a shared-use pole and each entity attaching to that pole is responsible for that owner's or entity's own expenses for make-ready work to accommodate a municipality's attaching its facilities to that shared-use pole: a) For a governmental purpose consistent with the police power of the municipality; or b) For the purpose of providing broadband service to an unserved or underserved area.

Up in the Air

Over the summer, Oregon took a second swing at revising its state Universal Service Fund program by passing SB 1603, a bill which will create a larger rural broadband development fund by including retail wireless and VoIP service (in addition to traditional telephone service) in the fees it collects to bring basic connectivity services to unconnected parts of the state. The new law lowers the current tax rate on telecommunications service provider's gross revenue (from 8.5% to 6%) but dramatically broadens the collection base, which will bring in needed dollars to expand broadband access to state residents without it in coming years. The move comes on the heels of the state’s move to establish a Broadband Office in 2018 to “to promote access to broadband services for all Oregonians in order to improve the economy and quality of life.”

Nuts and Bolts

SB 1603, which passed the state legislature on June 26 and was signed into law on July 7, directs the Oregon Business Development Department  (OBDD) to transfer up to $5 million of the funds collected each year to a broadband fund for rural development projects, administered by the OBDD. While the amount that will be collected remains unknown at the moment, it will no doubt represent a significant boost: the current mechanism for funding rural information infrastructure projects — the Rural Broadband Capacity Pilot Program — received 25 applications for almost $5 million in requested funding, but was only able to grant $500,000, or 10%. SB 1603 caps the money to be collected by the Oregon Universal Service Fund at $28 million annually.

As a result of SB1603, Oregonians can expect the average cell phone bill would go up by about $4 a year, and those with landline telephone service will see an annual decrease of $12 a year. Some VoIP providers had contributed willingly prior to the bill — that voluntary opt-in is removed.

For those in research, policy, community support, and the host of interrelated spaces who are hard at work to make sure that everyone in the country who wants to get online can, expanding broadband is a two-fold problem: that of broadband availability, and that of broadband adoption. 

The first of these relates to the problem of making sure that federal and state legislation and the policies that go with them work towards building the infrastructure and creating the competitive markets that result in reliable, low-cost, high-speed Internet access for all. The second of these — broadband adoption — relates to the collection of obstacles that keep people offline even after an Internet connection is available up to their door. Cost remains one of the most problematic, but there are others as well. 

The onset of the coronavirus pandemic this year has made overcoming these challenges more important and immediately pressing than ever, and the National Digital Inclusion Alliance (NDIA) has initiated a program to help: one-on-one, phone-based support from locally trained people across a range of digital inclusion services call the Digital Navigator Model. 

The concept was developed last April, and the completed Digital Navigator Model, developed by NDIA along with partners and allies, was released this August. Its purpose, from the press release:

The COVID-19 pandemic has created a sudden, massive public need for trustworthy digital inclusion services. Millions of Americans need support from digital inclusion programs: to get connected with affordable home internet, find affordable computing devices, and learn basic digital skills. “Digital Navigators” is an adaptation of traditional digital inclusion programming to this new reality, providing one-to-one dedicated support via phone service.

HB 13, a law moving through the Ohio state legislature, creates the state’s first-ever residential broadband expansion program in order to address an access gap faced by hundreds of thousands of households across the state. Unfortunately, it bars municipally owned networks and electric cooperatives from participating in the $20 million pot of funds aimed at extending Internet access to areas with significant connectivity challenges. 

How It Would Work

The bill — titled “Establish Residential Broadband Expansion Program” — passed the Ohio House of Representatives on June 11 of this year, and takes aim at addressing last-mile connections and bringing more Ohioans online. If passed, it would create a $20 million fund and effect regulatory changes to provide subsidies for private entities in the state to extend their networks and connect more people. 

HB 13 establishes a number of conditions that have to be cleared for projects to be eligible. First, areas included can’t already include projects that have gotten money from the federal programs like Connect America Fund or the FCC's upcoming Rural Digital Opportunity Fund taking place this fall. 

Second, the bill establishes a score mechanism that privileges areas that are unserved and underserved. Projects addressing unserved areas top the list: it defines the latter as lacking access to download speeds of 10 Megabits per second (Mbps) and upload speeds of 1 Mbps. The bill then favors “Tier 2” projects (which provide a minimum of 25/3 Mbps service) to either unserved areas or to “Tier 1” areas (those where download speeds come in between 10 Mbps and 25 Mbps and upload speeds are between 1 Mbps and 3 Mbps). 

Finally, HB 13 provides extra consideration for projects aimed at “distressed areas,” projects that can demonstrate in-kind or other financial contributions that have already been approved, those that utilized public Rights-of-Way, and those that demonstrate advantages in terms of the speed of the buildout or future scalability.

Problem Provisions and Vague Definitions

Cooperatives have been doing a lot over the last few months to advance connectivity efforts around the country. That trend is continuing in Virginia, where Prince George Electric Cooperative (PGEC) and Northern Neck Electric Cooperative (NNEC) have announced partnerships with utility provider Dominion Energy to expand broadband access to thousands living and working in rural areas in the state. 

The two projects represent over nearly $32 million in total investment, with money coming from the counties, the electric cooperatives, the investor-owned utility, and the state. 

Innovative Partnerships 

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The first-of-its-kind agreement between PGEC and Dominion Energy was originally announced last February, and aimed at a combined 6,700 residents in Surry County. Dominion will serve as the middle-mile provider, and is already installing fiber as part of upgrades to its grid management. It will lease that fiber to RURALBAND, PGEC’s broadband subsidiary, which will then be responsible for building last-mile connections to homes and businesses and acting as the retail service provider. 2,200 of those receiving Fiber-to-the-Home (FTTH) connections will be existing customers of PGEC, with the other 4,500 customers of Dominion. In total, the project is projected to cost between $16 and $18 million. 

“This partnership brings rural Surry County into the modern communications age, bridging a vital utility gap through reliable high-speed broadband services to residents and businesses, essential to Surry’s social and economic prosperity,” said Surry’s Acting County Administrator Melissa Rollins in a press release.