Amended legislation would put CPUC in charge of broadband stimulus funding

As the Sacramento Bee reported Tuesday, California -- embarrassed by its extensive patchwork of broadband black holes in a state that prides itself as an information technology leader and the home of Silicon Valley -- is angling for $1 billion of the $7.2 billion in broadband infrastructure subsidies in the federal economic stimulus package.

Undecided however is which California entity would be in charge of doling out the money -- assuming the two federal agencies administering the funds ultimately decide by next month to channel it through the states rather than accepting funding applications directly.

Would it be Gov. Arnold Schwarzenegger's chief information officer as the governor initially suggested? The California Public Utilities Commission? Or the California Emerging Technologies Fund, a nonprofit to increase broadband deployment and adoption formed and funded as a condition of recent telco M&A activity?

Legislation pending in the California Assembly was amended May 5 reflecting the recommendation of the state Legislative Analyst that the CPUC be in charge of the stimulus funding. You can link to the measure, AB 1012, here.

California seeks $1 billion in broadband stimulus funding

Here's a story in today's Sacramento Bee on California's desire to get $1 billion of the $7.2 billion earmarked for broadband infrastructure build out in the American Recovery and Reinvestment Act signed into law in February.

Your blogger -- walking his talk in urging local empowerment and action to fill in broadband black holes -- is quoted. Sunne Wright McPeak, president and CEO of the nonprofit California Emerging Technology Fund, is also quoted.

California PUC sets March 23 public meeting re broadband funding in federal stimulus act

The Schwarzenegger administration is preparing to request some of the $7.2 billion earmarked for broadband telecommunications infrastructure subsidies and loans in the recently enacted federal economic stimulus legislation.

The governor's office has asked the California Public Utilities Commission as well as the nonprofit California Emerging Technology Fund (CETF) to get stakeholder input on how best to use the CETF and the CPUC's California Advanced Services Fund (CASF) as vehicles to "quickly target initial federal stimulus funds toward California." The goal is also to determine how to leverage California’s existing broadband programs to assist applicants seeking federal funding available for broadband infrastructure in the stimulus bill.

The CPUC has set a public hearing for March 23 in San Francisco.
"We seek input from a broad spectrum of interests, including broadband providers, public agencies, and consumer groups," the CPUC's notice states.

California broadband nonprofit hopes for share of federal economic stimulus dollars

The California Emerging Technology Fund (CETF), a San Francisco-based nonprofit that helps fund projects to improve broadband access in California using $60 million in seed funding provided by AT&T and Verizon as a condition of the telcos' recent M&A activity, is hoping to get additional funding from the federal economic stimulus legislation.

Expected to be finalized this month, the legislation calls for between $6 billion and $9 billion (House and Senate versions of the legislation, respectively) in grants, loans and tax credits to fund the build out of wireline and wireless broadband telecommunications infrastructure. The administration of President Barack Obama has characterized the broadband stimulus funding as a down payment toward the administration's overall goal of providing universal access to broadband throughout the U.S.

"We want California to be poised to take optimum advantage of the stimulus package," CETF President and CEO Sunne Wright McPeak said at the CETF's Sacramento Regional Broadband Roundtable hosted today by the Sacramento Area Council of Governments as well as several other local institutions. "We want this region to be well deployed."

If it receives federal stimulus funding this year, CETF's role subsidizing the deployment of broadband infrastructure could overshadow that of the California Public Utilities Commission. The CPUC's $100 million California Advanced Services Fund provides a 40 percent match to subsidize broadband infrastructure build out but has not attracted the level of interest hoped for by regulators.

The 3-hour roundtable discussion was attended by about 70 people representing a wide variety of individuals and organizations with an interest in expanding broadband access, applications and adoption.

El Dorado County was well represented by Carol Anne Ogdin representing El Dorado County Supervisor Ray Nutting, Woodrow Deloria of the El Dorado County Transportation Commission, Jason Harm of the El Dorado County Office of Education, Tom Straling of the El Dorado County IT Department and your blogger.

I was pleased at McPeak's obvious zeal to get broadband infrastructure deployed as quickly as possible to enable the various applications and associated beneficial impacts discussed at the event including reducing transportation demand through telework and online commerce -- a clear benefit in this era of constrained transportation funding and strapped county budgets -- and allowing remote medical consultations for individuals living in rural areas who lack easy access to medical providers and specialists. McPeak and her staff clearly understand a salient point raised by Ogdin: that it's far cheaper (and greener) to move bytes than bodies.