Local Challenges Seen in Stimulus Program, Strickling Tells NARUC
Some stimulus projects continue to face issues like environmental assessment, wage requirements and the procurement process, NTIA Administrator Larry Strickling said at the National Association of Regulatory Utility Commissioners meeting Wednesday. But many projects are well under way and some major construction is expected this summer, he said.
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Environmental assessment and wage requirements have been the main issues at the local level, Strickling said in an interview after his speech. It’s the grant recipients’ responsibility to conduct environmental assessment so they have to work with various state and local agencies, he said. Additionally, as construction begins, some grant recipients may have to deal with issues like pole attachment, he said, urging state commissions to be responsive if grantees run into problems and seek help. But the problems are “nothing systematic,” he said, saying they won’t present a unique problem to the overall stimulus program. The agency is also working hard with the Congress to make sure it would provide the funding needed, he said: “It’s gotta come from the Congress."
NTIA is pushing all the recipients to get their environmental assessment work done in time to take advantage of the full construction season this summer, Strickling said in his remarks. It’s important that “we get a lot of significant construction done this summer” but overall, the projects have a three-year deadline to be completed, he said: “It’s a long-term investment.” NTIA grant officers each have a portfolio of 10 to 15 projects they're responsible for and are in touch with grantees on a regular basis, Strickling said. The goal is to make sure all the projects are on time and on budget and “we are well underway to see that happen,” he said.
Meanwhile, Wisconsin state officials are returning a $23 million stimulus grant, saying there were too many strings attached. The grant would expand broadband in schools, libraries and government agencies in 380 Wisconsin communities and in rural areas. State taxpayers would have been on the hook for the entire $23 million if the state could not meet the grant’s precise requirements, said Mike Huebsch, secretary of the state Department of Administration, in a memo. “We are disappointed that this project will not be implemented and the people of Wisconsin will not realize the intended benefits,” Strickling told us. “Wisconsin, like all of our grantees, was subject to the same laws and requirements that are in place to safeguard taxpayers’ investments in these projects,” he said. The grantee hasn’t drawn down federal funds and they are now prohibited from doing so, according to NTIA. Funds will be returned to the U.S. Treasury.
NTIA seeks to work with NARUC and state commissions in mapping and stimulus efforts, Strickling said. But the broadband challenge can’t be solved entirely with a limited funding, he said. With the current economic condition, it’s unlikely to see another round of government funding for general broadband expansion other than the $5 billion for an upgrade to 4G wireless announced by President Obama, he said (CD Feb 11 p1). The stimulus funded networks are open networks meaning even incumbent carriers can come in and use the network, he said. “We would hope to see incumbents flourish from this program” just as much as the providers that have received grants, he said. In addition to mapping grants, funding is going to states to evaluate Lifeline and Link-Up programs to determine what level of subsidy is reasonable to drive adoption, he said.