New law will help California leverage federal stimulus funding for broadband in rural areas

Print
SACRAMENTO – Gov. Arnold Schwarzenegger recently signed legislation that will enable the state to compete for billions of dollars in federal broadband funding.


Assembly Bill (AB) 1555, authored by Assemblymen V. Manuel Pérez (D-Coachella) and Felipe Fuentes (D-Sylmar) and co-authored by North Coast State Senator Patricia Wiggins (D – Santa Rosa) and Assemblyman Wesley Chesbro (D – Eureka), increases the number of applicants seeking federal funding for broadband infrastructure projects in areas of California that currently don’t have access to high speed Internet.


Wiggins said the new law makes a small change that “should have a significant impact by increasing opportunities for funding for rural communities to use in conjunction with broadband infrastructure projects, including high speed internet, which offers rural residents access to a range of resources and services.”


More than $7 billion in federal stimulus money is now available for infrastructure projects in such areas. The funds are distributed through competitive grant programs that require a 20 percent match.


According to Assemblyman Perez, the types of providers most likely to initiate projects in remote and rural areas – nonprofit cooperatives and municipalities – are hard pressed to secure that level of match funding.


The new law enacted by AB 1555 expands a definition so that these types of providers are eligible to apply to a state source of funding called the California Advanced Services Fund. The fund has approximately $85 million available to support broadband projects in rural and un-served communities.


By expanding the definition of eligible applicants, these smaller providers can secure the match necessary to make them competitive for federal funds. High speed Internet service is a regular feature of life for many, but not for residents of rural and remote areas.


According to a 2008 California Broadband Task Force Report, 1.4 million mostly rural Californians lack Internet access of any speed.


AB 1555 contains an “urgency” clause, meaning it took effect immediately when the Governor signed it on July 29. Wiggins said legislators approved the bill with the urgency clause in order to allow California communities to apply for funding during the first round of grant making, currently underway.


More information about the broadband funding programs can be found at the following web sites:


California Advanced Services Fund:

http://www.cpuc.ca.gov/PUC/Telco/Information+for+providing+service/announcingcasf.htm


Federal Stimulus programs:

http://www.usda.gov/rus/telecom/

http://www.ntia.doc.gov/broadbandgrants/