Broadband Deployment Hindered by Environmental, Historic Preservation Hurdles, Say NTIA, RUS Administrators

Subcommittee Ranking Member Anna Eshoo, D-Calif., plans say the solution to address any challenges with NTIA Broadband Technology Opportunities Program funding is “not to attack the overall merits of the program.” “Instead, rigorous oversight by NTIA, RUS and the Inspector General of these respective agencies is necessary to ensure projects remain on track and achieve their intended goals.” A Republican memo released Monday said majority members continue to be concerned that the federal agencies responsible for managing broadband stimulus funds aren’t using taxpayer dollars efficiently (CD Feb 26 p11).

NTIA Administrator Larry Strickling plans to say that a host of complications related to weather, environmental and historic preservation approvals and the creation of FirstNet will delay some of the projects funded by what’s also called the stimulus act. Strickling said he expects a majority of the remaining projects to be complete by Sept. 30, but he acknowledged that “approximately” 15 percent of the BTOP projects “may require additional time.” Nevertheless, he'll testify that recipients of NTIA broadband funds have “exceeded” their 2012 performance goals and are “well on their way to meeting or exceeding their 2013 targets as well.” So “notwithstanding project delays caused by environmental reviews, complex procurements and severe weather, program progress remains strong with over 70 percent of NTIA’s Recovery Act funding expended,” he'll say.

Strickling will defend the NTIA’s oversight procedures and tell lawmakers the agency proactively identifies “issues as early in the process as possible and resolves them promptly.” He'll say the agency works closely with the Commerce Department’s Office of Inspector General to prevent waste, fraud and abuse of taxpayer dollars “by implementing these programs in the most responsible and efficient manner possible.” Strickling will also tout the successes that NTIA’s broadband funding has had in “priming the pump” for business investments in communities throughout the country, building a more precise map of broadband data and promoting digital literacy in American households.

Acting Administrator John Padalino will say RUS continues to face challenges related to its funding of broadband projects for rural areas, but that its work is essential to expand Americans’ access to broadband. It’s “not easy” to develop solutions to deploying broadband infrastructure across difficult terrain, sparsely populated areas and limited access to a skilled workforce, he'll say. RUS will continue to target $3.5 billion in stimulus funds towards rural areas and those with the greatest need of service, he'll tell lawmakers.

Some rural broadband deployment projects could take as long as five years to build out due to “significant consultation” related to environmental and historic preservation compliance procedures, Padalino will say. The majority committee memo said Republicans are concerned that many of the stimulus projects won’t be completed by Sept. 30. Padalino will say the pace of construction for the total 297 broadband infrastructure projects “continues to exceed the pace of reimbursement,” said his prepared testimony. The agency has awarded $1.5 billion in funding to 116, or less than half of the infrastructure projects, which are now partially operational or have been completed, he'll say. Another $2.6 billion of construction awards projects have been completed or are actively being worked on, he'll say. The agency has also disbursed $86 million for four satellite broadband service programs and has fully disbursed funds for all 19 of the program’s technical assistance awards, his testimony said.

Spending delays stemming from environmental assessments, local permitting and other requirements may result in missed deadlines for many broadband deployment projects related to the stimulus act, said advance testimony of Ann Eilers. She’s the principal assistant inspector general for audit and evaluation at the Department of Commerce’s Office of the Inspector General. Eilers will recommend that agencies continue their oversight of the program and monitor sub-recipients of federal broadband funds to ensure that project costs are reasonable and program goals are achieved. She'll caution that FirstNet’s deployment could place additional requirements on NTIA and could impact its oversight of some BTOP projects.

Colorado Telecommunications Association Executive Vice President Peter Kirchhof slammed EAGLE-Net for overbuilding networks in regions of the state already served by broadband providers while “largely ignoring Western slope communities,” said his advance testimony. “This project was never intended just for unserved or underserved areas but rather to build a government owned and operated duplicate network to serve as many government entities as possible.” He'll urge lawmakers to ensure that taxpayer dollars are not used to duplicate rural broadband deployment in Colorado and urge EAGLE-Net to reallocate its remaining funds to areas of the state where it’s “badly needed.” Kirchhof will describe how EAGLE-Net deployed a broadband communications facility at an 11-student elementary school in Agate, Colo., which is already served by two other broadband providers funded with federal money. EAGLE-Net also deployed a broadband fiber connection to a 140-student elementary school in Flagler, where two federally funded fiber connections already exist, he'll say.

FairPoint Communications Vermont President Michael Smith will ask lawmakers to focus on broadband overbuilding in New England. The broadband stimulus is “not working as effectively and efficiently as it should be and the programs I am familiar with actually undercut the efforts of private sector broadband infrastructure investment,” he'll say. He said the $33 million broadband award that went to the Vermont Telecommunications Authority and its private partner Sovernet was a “waste of taxpayers’ money” that “simply overbuilds existing privately funded, middle-mile networks.” Smith will detail other stimulus projects that he said overbuild existing networks in New Hampshire and Maine and fail to provide broadband services to businesses and customers whose need is the greatest. Joe Freddoso, CEO of North Carolina broadband provider MCNC, and Bruce Abraham, a board member of the North Georgia Network, will offer testimonials about how federal funds to deploy broadband infrastructure in their states resulted in more connectivity, jobs and revenue for previously underserved communities.