SB 365

This bill makes various changes to the broadband expansion grant program.

Current law requires the Public Service Commission to administer the

broadband expansion grant program, under which PSC designates as “underserved”

areas of the state that are served by fewer than two broadband service providers and

awards grants to eligible applicants for the purpose of constructing broadband

infrastructure in underserved areas. This bill changes the purpose of the grant

program to constructing broadband infrastructure in “unserved areas.” Under

current law, “unserved areas” are areas not served by an Internet service provider

(ISP) that is a fixed wireless service or wired service and that provides service at

actual speeds of at least 20 percent of the upload and download speeds for advanced

telecommunications capability as designated by the Federal Communications

Commission. The bill changes the speed standard for an unserved area to be at least

actual download speeds of 100 megabits per second and upload speeds of 20 megabits

per second.

Current law requires PSC to establish criteria for evaluating applications and

awarding grants under the broadband expansion grant program and requires that

the criteria give priority to projects meeting various standards, such as including

matching funds and involving public-private partnerships. Under the bill, the

criteria must require that projects serve unserved areas. The bill specifies that the

criteria must prioritize projects with 50 percent or more matching funds and projects

that are capable of offering service with either combined download speeds and

upload speeds of 900 megabits per second or greater, or download speeds of 450

megabits per second or greater and upload speeds of 450 megabits per second or

greater. When evaluating a grant application, the bill requires PSC to consider all

federal broadband grant program project areas related to the proposed project. The

bill prohibits PSC from awarding grants for projects that do not include at least 40

percent matching funds or for projects that are not capable of offering download

speeds of 100 megabits per second or greater and upload speeds of 20 megabits per

second or greater (minimum download and upload speeds).

The bill adds a procedure by which an ISP in or near to a project area proposed

in an application for a broadband expansion grant may challenge the awarding of

that grant. An ISP may challenge the grant if that ISP currently provides or will

complete construction to provide broadband service to that area at minimum

download and upload speeds or if that ISP commits to completing construction of

broadband infrastructure and providing broadband service to that area at minimum

download and upload speeds no later than 24 months after the date grants are made

for the grant cycle under which the application was submitted. The bill requires PSC

to evaluate the challenge and prohibits it from funding the project if it determines

as credible the challenging ISP's commitment to provide broadband service that

meets the requirements.