Infrastructure Investment and Jobs Act
The most recent Federal broadband funding programs arise from the Infrastructure Investment and Jobs Act (IIJA). The IIJA will provide generational funding for broadband deployment and be available beginning this year and next from the IIJA.
Broadband Equity, Access, and Deployment
The IIJA contains the Broadband Equity, Access & Deployment program (BEAD). The BEAD program provides grant funding for broadband planning and deployment, mapping, digital equity, and adoption projects and activities. A total of $42.45 billion is funded nationally for this program to be administered by the National Telecommunications and Information Administration (NTIA) and allocated among the states in block grants. The allocation to each eligible state will be based on the proportion of unserved locations in each state, as determined by the Federal Communications Commission’s (FCC) Broadband Location Fabric maps. In late June 2023, the NTIA announced state allocations of BEAD funds based on the FCC broadband mapping, with the State of California receiving an allocation of $1.8 billion.
On April 4, 2024, the NTIA approved the CPUC’s initial proposal volume 1, and on May 9, 2024, the CPUC voted to adopt this proposal as approved by the NTIA.81 Volume 1 focuses on the rules for changing determinations regarding whether a broadband serviceable location is served, unserved or underserved, based on whether it meets the definition of reliable broadband service. The CPUC is preparing to gather feedback on locations eligible for BEAD funding as outlined in Volume 1. The final map for this purpose is to be released at the time this memo was written. The CPUC is also going to have a BEAD Consumer Challenge website and provide data on unserved locations, underserved locations, and CAIs.82 California's 30-day internal Challenge Process, part of the broader 120-day federal BEAD Challenge, began on July 8, 2024, and concluded on August 7, 2024. The federal challenge process continues until November 5, 2024
Volume 2 lays out the objectives, processes, and requirements for coordinating broadband development. California “subgrantee” qualifications and project scoring are detailed in Volume
2. Along with meeting the state’s labor standards, projects must increase workforce readiness, include disadvantaged enterprises, identify hazards and climate risks, and bring down deployment costs and other barriers to broadband development. Funds may be used for deploying or upgrading broadband facilities in unserved or underserved areas and to eligible community anchor institutions; for data collection, broadband mapping, and planning (beyond the planning fund allocation); installing internet and Wi-Fi particularly in multifamily residential buildings; broadband adoption programs and devices; training and workforce development; and other uses including Digital Equity programs. Priorities and specific allowed uses of funds are:
1. Infrastructure for areas without 25/3 Mbps service.
81 BEAD Program (ca.gov)
82 https://register.challenge.cpuc.ca.gov/
2. Infrastructure for areas without 100/20 Mbps service. Then eligible community anchor institutions.
3. Multi-Dwelling Units (MDUs): Installing internet and Wi-Fi infrastructure or providing reduced-cost broadband within a multi-family residential building, prioritizing those with a substantial share of qualified low-income households.
4. Programs for broadband adoption including provision of affordable internet-capable devices.
5. Broadband data collection, broadband mapping, and planning.
The project must result in services that provide at least 100/20 Mbps connections with low latency. Higher speeds will receive priority. There must also be a 25% match from non-federal sources, such as in-kind contributions, unspent COVID relief funds, or provider investment.
Economic Development Administration (EDA) Grants
The EDA periodically offers grant assistance for cities seeking to develop or redevelop key commercial areas or corridors, and publicly owned fiber optic networks are an eligible expense for these funds. Current programs are Planning and Local Technical Assistance83, Research and National Technical Assistance,84 and Public Works and Economic Adjustment Assistance.85 EDA grants typically tie eligibility and competitive scoring criteria to specific job creation or retention, making key development sites or zones prime candidates for EDA funding where high-speed broadband could help attract or retain key employers. EDA’s Notice of Funding Opportunity was released on March 15, 2023, and there is no submission deadline – applications will be accepted on an ongoing basis.
Proposed projects must be consistent with the region’s current Comprehensive Economic Development Strategy, and typically look specifically at employment attraction, retention, and expansion. EDA has funded projects for expansion or enhancement of public facilities with higher quality fiber optic cables and telecommunications infrastructure and broadband infrastructure deployment. Applications are relatively complex and time-consuming to submit and process, and a local match is required, ranging from 20-40%. The City should consider future EDA grants as a possibility, particularly where it aligns with its key economic development areas or major development projects. County and regional level partnerships would likely bolster the City’s projects’ eligibility.
Community Development Block Grants (CDBG)
Federal CDBG grants, administered through the U.S. Department of Housing & Urban Development (HUD), provide annual grant funding to cities and counties for projects that 83 https://www.eda.gov/funding/funding-opportunities/fiscal-year-2021-2023-eda-planning-andlocal-technical-assistance 84 https://www.eda.gov/rnta
85 https://www.eda.gov/funding/funding-opportunities/fiscal-year-2023-public-works-andeconomic-adjustment-assistance
address housing, improved living environments and public infrastructure, and/or economic opportunities, primarily targeting low- to moderate-income households or census blocks. Public broadband infrastructure is an eligible project, provided that it meets program goals (specifically benefitting the low- to moderate-income population). 86 CDBG funds may only be used for projects or purposes identified in the HUD play again. Broadband, internet, and related infrastructure and services are not included in the housing element of the City’s plan. Therefore, may not be possible to use these funds for broadband development. The housing element does mention renovation and inside wiring should be considered an integral element of any property update.
The city should consider adopting Provider Choice Ordinances that create a supportive environment for broadband expansion and the effective use of CDBG grant funds87 . By ensuring residents and businesses have the right to choose among multiple service providers, these ordinances address disparities in access, particularly in underserved communities. This alignment with the goals of CDBG funding, improving infrastructure and benefiting low and moderate-income residents, provides a strong foundation for securing and utilizing grant money to enhance broadband infrastructure citywide.
OPPORTUNISTIC DEVELOPMENT
Opportunistic broadband development involves creating and seeking out situations in which network assets can be deployed economically. Capital project coordination, including “Dig Once,” joint build, and open trench policies, are key tactics. Development conditioning, permitting, and zoning are aspects of opportunistic broadband development. Generally, clear standards and open systems ensure opportunities are effectively cultivated and capitalized on.
Coordination requires advanced planning, an appointed “curator” to collect, organize, manage, and share information about projects in the ROW, and cooperation of public and private entities that regularly operate in public. All participating parties—including private ISPs—benefit from an effective ROW coordination. It positions the City to capitalize on existing assets more effectively and develop new ones.
Projects that involve linear excavation or other construction in the public ROW are the most common type of opportunity for cost-effective network expansion. Conduit and/or fiber cable can be added to power, traffic, water, wastewater, gas, cable, telephone, etc., improvements at a fraction of the cost for a “lone build.” Dig once policies ensure all infrastructures are deployed together. Open trench policies require anyone working in the ROW to accommodate others.
Activities such as the Department of Public Works’ bi-monthly “Substructure Meetings” and the planned redevelopment of the SR 710 transportation corridor “stub” are prime opportunities to include broadband in planning at the earliest stages. The state’s Middle-Mile Broadband Infrastructure (MMBI) network may be a joint build or similar opportunity for Duarte since the 86 https://www.hudexchange.info/resource/4891/cdbg-broadband-infrastructure-faqs/ 87 Duarte Broadband Access and Connectivity Infrastructure Assessment: Broadband Policy Assessment Memo
MMBI will run past the City and is under budgetary pressure. Duarte’s installed base of conduit, fiber, and poles can be powerful levers for further development when managed as an integrated infrastructure.
Broadband Standards & Conditions
Requirements for fiber/conduit to be placed concurrent with development, in developer agreements, through the entitlement process, and as conditions of project approval ensures faster, more efficient development of access and distribution infrastructure, including inside wiring and wireless edge/customer premise equipment. Design standards, guidelines for deployment, and specifications ensure the infrastructure is consistent across various developers. These requirements and standards are to be defined for the range of network infrastructure assets and with consideration of all relevant stakeholders, public and private.
PRIVATE INVESTMENT
Two key factors should be considered for private investment in broadband. The first is the extent to which public investment is needed as a catalyst, particularly in underserved areas or for future purposes. The second consideration is the extent of private ownership vis-a-via public ownership. On one extreme, local government can directly subsidize private providers, paying for their assets without any public obligations. In contrast, there are local governments with fiber-to-the-premises that they essentially lease to private companies that handle all operations, management, customer relations, etc. In between, long-term capital leases are considered lessee assets for financial purposes and generate substantial upfront revenue for the lessor, in this case, the City of Duarte.
REVENUE FROM SERVICES
Possibly the best way to fund broadband development is with funds from broadband service fees. This funding option has no borrowing costs, no interest payments, and can be used for digital inclusion, economic development, and other public purposes as deemed appropriate.
Significant investment in equipment, network engineering, and staff would be necessary to provide services for a fee on an open basis. Generally, revenue-funded development fits with an incremental, opportunistic, phased approach, developing infrastructure, and providing services first in low-cost areas for high-value customers and then using revenue from those customers to fund additional buildout. This is essentially the private sector approach, which avoids high-cost areas with low-income customers, so is unlikely to close gaps unless done in a very intentional manner, for that particular purpose.
Technology Enterprise Fund
Duarte may decide to monetize certain city assets, for example streetlight poles for 5G infrastructure placement. Lease fees realized from monetized assets can be reserved for broadband invest, separate from the General Fund, by collecting these in a Technology Enterprise Fund. This fund can be dedicated to city investments in new City/public technology,
conduit placement in joint trench opportunity, including forward-facing initiatives such as smart city devices deployed with private wireless assets, and planned for in its own right. The random nature of joint trench/dig once opportunities means cities need a dedicated funding source outside of the normal budgeting process to take advantage of open trenches to deploy assets.
Dedicating any revenues received leasing or licensing use of City assets for antennas, cell towers, or other connectivity, including conduit occupancy, dark fiber IRUs,88 or transport services ensures resources for broadband development will be available on an ongoing, sustainable basis.
88 IRU is “indefeasible rights of use,” which is what lessees get under long-term capital lease of dark fiber.
12.Nutrition Labels
Charter (Spectrum)
Figure 54. Charter (Spectrum) broadband label89
89 https://www.spectrum.com/phx/buy/products
Frontier
Figure 55. Frontier Internet Plans
Figure 56. Frontier 500M broadband label90
90 https://internet.frontier.com/buy/plan-package/
Figure 57. Frontier 1G Broadband Label91
91 https://internet.frontier.com/buy/plan-package/
Figure 58. Frontier 2G Broadband Label92
92 https://internet.frontier.com/buy/plan-package/
Figure 59. Frontier 5G Broadband Label93
93 https://internet.frontier.com/buy/plan-package/
Fixed Wireless (FWA) Providers
Verizon
Figure 60. Verizon Fixed Wireless Broadband Label94
94 https://www.verizon.com/sales/home/progressiveplan.html
T-Mobile
Figure 61. T-Mobile Fixed Wireless Broadband Label95
95 https://www.t-mobile.com/home-internet/plans