SB 325

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 1) is a fixed wireless service or wired service and 2) 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 adds that, in order to not be an unserved area, Internet service

must be available and reliable, and provided at no less than actual download speeds

of 100 megabits per second and upload speeds of 20 megabits per second. The bill

also allows PSC to adjust those speed standards every two years by rule if it

determines there is good cause to do so in order to align with changes in technology

and actual market conditions, in which case it must publish the adjusted speed

thresholds on its website.

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 applicants to participate in the FCC's Affordable Connectivity

Program or any federally mandated successor program. Under the bill, the criteria

must give priority to projects with at least 40 percent matching funds and higher

priority to projects with more than 40 percent matching funds. The bill changes a

requirement under current law that the criteria prioritize projects in a large

geographic area to projects in a geographic area that is difficult to connect. The bill

specifies that the criteria must give priority to projects that are capable of offering

service at actual download speeds of 100 megabits per second or greater and upload

speeds of 100 megabits per second or greater, and higher priority to projects capable

of exceeding the minimum speeds just described.

Current law requires PSC to consider certain factors when evaluating an

application under the broadband expansion grant program. This bill adds that PSC

must consider whether the applicant offers a low-cost broadband service option in

order to be eligible for funding under the federal Broadband Equity, Access, and

Deployment program or participates in the FCC's Affordable Connectivity Program

or any federally mandated successor program.

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

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