Allocates $7 billion to increase broadband deployment
- $2.5 billion for grants, loans, and loan guarantees for broadband infrastructure from Department of Agriculture's Rural Utilities Service (RUS)
  - RUS program likely to be based upon rules for current grant/loan programs
- $4.35 billion for grants through the National Telecommunications and Information Administration (NTIA) pursuant to a new Broadband Technology Opportunities Program (BTOPs)
  - BTOPs may be very similar to original Technology Opportunities Program (TOP)
  - NTIA expected to define parameters of BTOPs in town hall meetings
NTIA will fund up to 80% of a project, or more depending on “financial need.”
All awards must be made by the end of FY 2010, and projects must be “substantially complete” within two years of date of award
Each state must get at least one grant, “to the extent practical” (expected to be unlikely)
Purpose of BTOPs is to provide broadband access in “unserved” areas and improve access in “underserved” areas.
- “Unserved” and “underserved” not yet specifically defined
Other goals include improving broadband use by public safety organizations, schools and libraries, healthcare providers, other community organizations as well as agencies serving low-income, unemployed, and the elderly
BTOP also designed to create jobs in certain areas and stimulate broadband demand, economic growth, and job creation
To be considered, all application must show:
- Explanation of how funds will be used and sources of funding not provided by NTIA
- How funds will be used to carry out the BTOPs purposes, including showing that project could not have been implemented without grant
- That applicant is capable of carrying out project and in compliance with federal, state, and local law
NTIA will consider whether project will:
- Increase affordability of and subscribership to service to greatest number of users in area
- Provide greatest broadband speed possible to greatest number of users
- Enhance service for health care delivery, education, or children
States likely to play a role in the selection process
Partnerships with government/non-profit/community organizations may be favored
RUS’s current programs supporting broadband deployment (below) may be model for ARRA program
- Telephone infrastructure loan program
- Rural Broadband Access Loan Program
- Community Connect Grant Program
- Individuals and partnerships are not eligible
- Entities serving more than 2 percent of U.S. telephone lines are not eligible.
At least 75% of the area served by projects receiving funding must be in rural areas “without sufficient access to high speed broadband service” as determined by Secretary of Agriculture
Priority will be given to applications that:
- Include projects that can be completed and which begin promptly
- Provide service to the most rural residents without broadband service
- Deliver a choice of more than one service provider
- Demonstrate all project elements will be fully funded
- Involve borrowers or former borrowers under Title II of the Rural Electrification Act of 1936
Terms in ARRA not yet defined:
- “broadband”
- “unserved”/“underserved”
- “rural”
- “public interest”
How RUS and NTIA choose to define these terms will drastically impact applicant eligibility
Recommended when filling out application:
- Focus on the economic need and rural deployment of proposed service area, once “rural” definition has been established
- Develop strategic plan tailored to BTOPs’ purposes
- Focus on projects that can be implemented and deployed quickly
- Propose safeguards to ensure appropriate use of funds
- Verify compliance with unjust enrichment requirement and other conditions to grant
- Demonstrate ability to fund at least 20% of the project, and sources of funding
- Submit cost-study estimates, engineering plans, and proposed build-out schedules to residential households and small businesses, if required
- Be prepared to present financial information that may be required for RUS grants.