Coming Attractions The RUS Broadband Pilot Christopher A. McLean - - PowerPoint PPT Presentation

E-connectivity Pilot Program

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Coming Attractions The RUS Broadband Pilot

Christopher A. McLean Acting Administrator Rural Utilities Service

Oct 10, 2018

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A Sequel to the $500 + million FY 2018 Blockbuster Hit that featured a cast of 13 Infrastructure Loans ($427 million) 2 Broadband Loans ($24 million) 146 DLT Grants ($28.5 million) 22 Community Connect Grants ($27.4 million)

From The Producers of Title II and Title IV

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Adapted from the Original – The FY 18 Omnibus Appropriations Act

One-time appropriation of $600 million for a “new broadband loan and grant pilot program”

• 1. USDA may offer loans, grants or loan/grant combo
• 2. To be eligible for funding, projects must serve rural areas:
• Where households lack sufficient access to broadband service of 10mbps/1mbps

(this speed is an eligibility threshold, not a build-to speed)

• Not served by an entity that received a broadband loan from the Rural Utilities Service
• With populations of 20,000 or less
• 3. Timing:
• USDA is “directed to expedite program delivery methods”
• No deadline to expend funds

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Rural area - any area not located within: (1) a city, town, or incorporated area that has a population of greater than 20,000 inhabitants; or (2) an urbanized area contiguous and adjacent to a city or town that has a population of greater than 50,000 inhabitants Eligible service area - proposed funded service area where 90% of the households to be served do not have sufficient access to broadband Lacking sufficient access to broadband - no existing service to the household at 10 mbps download /1 mpbs upload service

The Setting for the Story

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Following the Script

• 1. Follow legal requirements
• 2. Ensure USDA is a good steward of taxpayer money

ü Customer-oriented process and products ü Efficient, effective administration ü Due diligence in reviewing applications, for projects with solid engineering, business plans, and management

• 3. Stretch federal funds as far as possible

ü Leverage existing structures (physical and organizational) ü Seek projects with others’ “skin in the game” (matching funds from other sources) ü Avoid using funds to “overbuild” existing service that is 10 mbps/1mbps or greater

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Complex Characters

• 1. Broadband service characteristics?
• How to define “sufficient access” to broadband at rural households, and should affordability be a

factor?

• How much “speed” is needed and how can we best measure that at the household?
• How do rural American citizens and businesses most want to use broadband?
• So, what kind of service/performance should be built with the Pilot funds?

(aiming to require a reasonable minimum “build-out” speed, yet motivate optimal infrastructure)

• 2. Best ways to reduce private-sector risk, and financial constraints of

underserved communities?

• Loans with low interest rate and long-term payback period?
• How much should be grants versus loans?
• How to encourage partnerships?
• 3. Amount of time in the application window?
• Enable reasonable time for customers to assemble applications
• Spread out evaluation workload for USDA staff

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The Story Board

Set up

• perations

Gather public input

• 1. Open for

Business

ü Eligibility ü Score based

• n criteria

ü Evaluate project engineering & business plan ü Clear environmental approvals

Review Applications Announce Funding Awards

• Contract for
• utsourced

execution

• Create, test, and

publish web application portal

• Formal

public comment

• Website

feedback form

• 1. Publish Notice
• f Funding

Availability (includes details

• f product
• fferings,

eligibility, scoring criteria, etc.)

• 2. Provide

Technical Assistance

• 3. Begin accepting

applications

OMB Approval

• Funding

aspects

Formal Rulemaking & Regulations are NOT required

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• Federal Register for formal comments
• Web portal for basic feedback

(in development, will be published soon)

• Events:
• Stakeholder meetings
• Webinars
• Outreach

July 27 - September 10 Reviewing Now

Promotional Events

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You’ll be Invited to the Premiere!

Thank You Christopher A. McLean christopher.mclean@usda.gov