With American Rescue Plan funds flowing into state government coffers, about a third of the nation’s 50 states have announced what portion of their Rescue Plan dollars are being devoted to expanding access to high-speed Internet connectivity.

The federal legislation included $350 billion for states to spend on water, sewer, and broadband infrastructure, though everything we have seen suggests that the vast majority of that will not go to broadband. There is also another $10 billion pot of rescue plan funds, called the Capital Projects Fund, that mostly must be used to expand access to broadband.

Laboratories of Broadband-ification 

As expected, each state is taking their own approach. California is making a gigantic investment in middle-mile infrastructure and support for local Internet solutions while Maryland is making one of the biggest investments in municipal broadband of any other state in the nation. And although Colorado does not prioritize community-driven initiatives, state lawmakers there have earmarked $20 million for Colorado’s two federally-recognized Indian tribes to deploy broadband infrastructure with another $15 million devoted to boosting telehealth services in the state.     

Undoubtedly, individual states’ funding priorities vary. Some states may be relying on previously allocated federal investments to boost broadband initiatives and/or have been persuaded the private sector alone will suffice in solving its connectivity challenges. And in some states, such as Illinois, Minnesota, and Maine, lawmakers have prioritized using state funds to support broadband expansion efforts while other states may be waiting on the infrastructure bill now making its way through Congress before making major broadband funding decisions.

As of this writing, 17 states have earmarked a portion of their Rescue Plan money (totaling about $7.6 billion) to address the digital divide within their borders. Those states are Arizona, Arkansas, California, Colorado, Delaware, Hawaii, Indiana, Kentucky, Maine, Maryland, Montana, Missouri, Virginia, Tennessee, Vermont, Washington, and Wisconsin.

Snapshot

Maine broadband authority redefines statewide broadband as symmetrical 100/100 Mbps connection

California Legislature and Governor reach $5.25 billion agreement on statewide middle-mile network

New Hampshire matching grant initiative aiming to promote partnerships signed by Governor

The State Scene 

Maine

The Maine Senate recently enrolled a bill (L.D. 1432) amending the Municipal Gigabit Broadband Access Fund to only allow communities, municipalities, and regional utilities access to grants through the program. The bill became law without State Governor Janet Mills’ signature on June 24. 

The legislation removes limits placed on the number of grants able to be awarded per project, but limits the amount of funds that may be distributed per project to 50 percent of total costs. The bill, aiming to support the deployment of municipal gigabit fiber optic networks, also requires the ConnectMaine (ConnectME) Authority to establish minimum upload and download speed definitions to foster widespread availability of symmetric high-speed Internet access, beginning in 2025. 

Last Tuesday, residents of three coastal Maine communities - Camden, Rockport, and Thomaston - voted to support Town Meeting articles authorizing each town's Select Boards to enter an interlocal agreement establishing the MidCoast Internet Development Corporation (MIDC), a nonprofit regional broadband utility in the Penobscot Bay Region of MidCoast Maine.

The type of regional utility the communities are seeking to establish is a broadband network utilizing an open-access model, in which the fiber infrastructure is municipally-owned, the maintenance of the network is managed by an outside firm, and private Internet Service Providers (ISPs) provide retail service to end-users. The ultimate goal of MIDC is to build an open-access, Fiber-to-the-Home (FTTH) network to provide universal Internet access across any towns which vote to sign onto MIDC’s interlocal agreement.

More than nine communities located in Knox and Waldo County formed the MidCoast Internet Coalition earlier this year, to indicate their support of establishing the MIDC regional utility district. Now, the towns which form the MidCoast Internet Coalition (Northport, Lincolnville, Hope, Camden, Rockport, Rockland, Thomaston, South Thomaston, Union, and Owls Head) are voting in phases to sign onto an interlocal agreement, legally recognizing the public utility under Maine law.

The Searsport Broadband Committee is pushing forward with a plan to bring a Fiber-to-the-Home (FTTH) network to town residents. The committee hopes to hold a special town meeting soon, where residents will be asked to vote on a bond to pay for it. 

Searsport, Maine (pop. 2,600), known for being “the home of famous sea captains” and the “Antique Capital of Maine,” is certainly not an antique when it comes to the town's perspective on the necessity of broadband and the long-term benefits that come from investing in fiber. 

“There’s a saying, ‘it’s future-proof,’” Searsport Town Manager James Gillway told the Bangor Daily News. “It’s so far ahead of what copper wire does. It’ll give us better connectivity, and we would run it, own it, like any other utility. That way, we can control the cost. We can be super competitive.”

The town recently put out an informational booklet to educate residents on what this network would look like. 

The network is estimated to cost between $2.5 million and $3 million, with the town seeking state grants to help cover some of the costs. Residents will have the option to subscribe for $60 to $70/month with speeds going up to 1 Gigabit per second (Gbps). Early news coverage suggests the town would contract with Axiom Technologies of Machias to be the Internet Service Provider (ISP).

Like many communities we’ve been covering over the course of the pandemic, working from home and distance learning has really put a spotlight on the need for fast, reliable Internet access in Searsport. 

The town received a $13,000 grant that it applied for back in July 2020 to help boost it’s free public downtown Wi-Fi, which the town believes will “set [them] apart and make [them] more of a destination then a rest stop or pass through town.”

Numerous towns located in a region of southeastern Maine dubbed “Paddler’s Paradise” by outdoor adventurers and watersports fans are exploring more collaborative ways to improve local Internet connectivity. The Greater Portland Council of Governments (GPCOG) recently issued a request for proposal [pdf] on behalf of several towns located in the Sebago Lakes region of Cumberland County, Maine. Proposals are due May 31st. 

GPCOG, in partnership with Cumberland County, the Community Concepts Finance Corporation, and the Northern Forest Center, is seeking technical assistance to coordinate a regional, multi-town approach to better broadband.

Upon embarking on individual, citywide approaches to improve Internet access, the towns of Bridgton, Denmark, Fryeburg, Harrison, Naples, Raymond, Sebago and Standish recognized that a regional approach would improve efficiency and speed efforts. 

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(See chart, right, which details the preliminary, planning stages that have been completed by communities, and which they have yet to address.)

The coalition is interested in selecting one or more broadband consultants to coordinate the individualized approaches of each of the towns. Consultants will be tasked with combining and building upon the assets of each to develop a regional proposal for a faster and more coordinated buildout of networks. 

Read the full RFP here [pdf]. 

Goals of the Proposal

Snapshot

Nebraska Senate rejects amendment supporting municipal broadband in spending plan

Michigan Governor vetoes bill granting private ISPs property tax exemptions

Montana, Iowa and Maine channel Rescue Plan funds towards new broadband grant initiatives

The State Scene

Nebraska

The Nebraska Senate approved a plan to spend $40 million over the next two years on expanding rural access to high-speed Internet by a unanimous vote on Tuesday, but only after an amendment to L.B. 388 that would have allowed municipalities to offer retail broadband services was rejected.

State Sen. Justin Wayne introduced the amendment, saying that “broadband should be considered a critical infrastructure need and that private telecommunications companies have not stepped up to serve the whole state,” the Lincoln Journal Star reports.

Wayne urged Nebraska Senators “to look to Nebraska's history of public power as a model, as well as to the example of other states that are allowing cities to offer broadband.” The amendment ultimately failed by a vote of 20-24. Wayne assured fellow Senators that he will reintroduce the amendment in the future. 

The bill marked the first time the Nebraska Legislature has suggested using state tax dollars to fund broadband deployment. As it was submitted to Gov. Pete Ricketts for his signature, the bill would annually allocate, until funds run out, $20 million in grants to projects that increase access to high-speed broadband in unserved regions of Nebraska. It would prioritize projects in regions which lack access to Internet service with speeds of at least 25 Megabits per second (Mbps) download/3 Mbps upload. Grant recipients would be required to deploy networks capable of providing service of at least 100/100 Mbps within 18 months. 

Michigan

Snapshot

Washington Governor pledges to sign Public Broadband Act

Maine hearing will reveal State Legislature’s willingness to introduce competition to incumbent ISPs

California bill amended to remove bond initiative backing public infrastructure projects of local communities 

The State Scene

Washington

Two pieces of legislation aimed at expanding public broadband authority, H.B. 1336 and S.B. 5383, have been delivered to Washington Gov. Jay Islee to consider signing into law. Rep. Drew Hansen, the primary sponsor of H.B. 1336 recently told GeekWire that he “expects the governor to sign both.”

H.B. 1336 would give Washington’s cities, towns, counties, district ports and Public Utility Districts (PUDs) unrestricted authority to provide Internet services directly to end-users, while S.B. 5383, as a result of a series of amendments, deals largely with what information PUDs and ports have to provide to the state broadband office before offering service in unserved regions. 

There will be a meeting between the governor and the sponsors of the two bills on Thursday, which will likely determine their fate. Although arguments about how the two bills will interplay are continuing throughout the halls of the State Legislature in Olympia, the prevailing legal interpretation is that the finalized versions of the bills do not conflict. If both bills are signed, and discrepancies are later discovered to be an issue, it will prompt the State Legislature to convene in the future to standardize differences between the legislation. 

Born in Orono, Maine, the poet Frances Laughton Mace’s most notable verses were published in 1854 as a hymn entitled “Only Waiting.” Over a century and a half later, residents in her native town – and in the neighboring community of Old Town just four miles up the road – might be inclined to hum a line or two. Not because they are getting religion, but because of the wait in getting Fiber-to-the-Home (FTTH) Internet connectivity.

After a decade of hopeful planning, disappointing setbacks, design work, and putting out multiple RFPs to move the project forward, the nonprofit OTO Fiber Corporation is on the verge of lighting up a six-mile fiber network this summer. With three miles of fiber deployed in Orono, a town of 11,000 residents and home to the University of Maine’s flagship campus, and the other half covering a portion of Old Town, the budding network will provide FTTH service to a limited number of residences and businesses in both towns. It’s a pilot project that, if successful, will serve as a core network which can eventually be extended to cover the entirety of both communities.

“It’s taken us forever to get to this point it seems. We started this process ten years ago and we are still slogging our way through while we’ve seen other communities zip ahead,” Belle Ryder, Orono Assistant Town Manager and President of OTO Fiber, told us this week. “It is really, really, really hard for communities relying on volunteers to pull off the feat of building and operating these networks.”

Ryder wasn’t complaining or exasperated. She was just being candid about the process she and her colleagues at OTO Fiber are committed to see through to the finish. The slog she is referring to goes back a decade when Orono was in the process of putting together a comprehensive development plan.

Families and Fiber, Fits and Starts

With just about half of the town’s population made up of college students living in off-campus apartments and the other half made up of residents 60 and older, “we really needed to draw families back,” Ryder explained.