Agenda - Council Work Session - 03/08/2022

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Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations 4421 projects that will achieve last-mile Recipients must require providers to Other commenters argued against connections—whether by focusing participate in or provide access to these Treasury's encouragement,remarking directly on funding last-mile projects or programs through the life of the ACP. that private businesses have a robust by ensuring that funded middle-mile This requirement will no longer apply track record of serving hard-to-reach projects have commitments in place to once the SLFRF-funded broadband customers. These commenters argued support new and/or improved last-mile infrastructure is no longer in use. that commercial providers have greater service. Furthermore,Treasury also recognizes technical and operational expertise in Affordability the importance of affordable broadband deploying and operating broadband access for all consumers beyond those networks and may be able to construct The interim final rule encouraged that are low income.As part of their broadband networks with greater recipients to consider ways to integrate project selection process,recipients are efficiency.Additionally, some affordability options into their program encouraged to consult with the commenters argued that providing what design but did not require recipients to community on the general affordability they considered an unfair competitive take particular actions. The interim final needs of the target markets in the advantage for government-or rule also provided that assisting proposed service area.Additionally, community-owned or operated households with internet access and recipients are encouraged to require that networks may hurt consumers over digital literacy is an eligible use of services provided by a broadband time. SURF funds under sections infrastructure project include at least Treasury Response:The final rule 602(c)(1)(A) and 603(c)(1)(A)to respond one low-cost option offered without maintains the interim final rule's to the negative economic impacts of data usage caps at speeds that are encouragement for recipients to COVID-19. sufficient for a household with multiple prioritize support for broadband Public Comment:Many commenters users to simultaneously telework and networks owned,operated by,or suggested that Treasury provide engage in remote learning. Treasury will affiliated with local governments, recipients with a broader set of tools to require recipients to report speed, nonprofits,and cooperatives,given that tackle what the commenters pricing,and any data allowance these networks have less pressure to characterized as an affordability crisis in information as part of their mandatory generate profits and a commitment to the broadband sector. As noted above, reporting to Treasury. serve entire communities.344 This some commenters proposed that Further,Treasury is clarifying that, as encouragement provides flexibility for Treasury consider affordability when a response to the public health and recipients to select providers that best determining whether an area is negative economic impacts of the fit their needs,while noting the critical unserved or underserved by broadband. pandemic,recipients may provide role that networks owned,operated, or Some commenters indicated that the households and communities impacted affiliated with local governments and final rule should allow for the by the pandemic with subsidies to help community organizations can play in construction of broadband networks in pay for internet service, digital literacy providing sufficient coverage,affordable access, or increased competition in the low-income neighborhoods including programs,broadband adoption broadband sector. low-cost or no-cost gap networks, even programs,and device programs that in areas with existing service at the provide discounted or no-cost devices Duplication of Efforts and Resources speeds required under the interim final for low-income households to access the public Comment:Some commenters rule. Other commenters voiced support internet. For further discussion of this raised concerns that Treasury's for direct subsidies to low-income eligible use category, see the section encouragement in the interim final rule communities to afford broadband internet Assistance in Assistance to that recipients avoid funding projects in service,which would provide Households in Public Health and locations with an existing agreement to additional incentives for providers to Negative Economic Impacts. provide service that reliably delivers serve these communities. 100/20 Mb s b December 31, 2024 was TreasuryResponse:In response to Public Networks p y p P too restrictive. Commenters noted that many commenters that highlighted the The interim final rule encouraged many plans do not always lead to a importance of affordability in providing recipients to prioritize support for local successful and complete deployment,as meaningful access to necessary networks owned, operated,or affiliated issues may arise that prevent such broadband infrastructure,the final rule with local governments,nonprofits,and infrastructure from deploying on time or provides additional requirements to cooperatives. at all, and that several existing federal address the affordability needs of low- Public Comment:Many commenters grants were designed and awarded income consumers in accessing voiced their support for Treasury's before the onset of the COVID-19 broadband networks funded by SURF. encouragement that recipients work pandemic and do not meet the critical Recipients must require the service with governmental or community broadband needs highlighted by the provider for a completed broadband entities to establish local networks, pandemic. Other commenters argued infrastructure investment project that arguing that they have been shown to that Treasury's encouragement to avoid provides service to households to: effectively provide broadband access to duplication of resources should be • Participate in the Federal areas that would otherwise be left with strengthened,as investing in areas with Communications Commission's (FCC) unaffordable or insufficient service. existing agreements would be an Affordable Connectivity Program(ACP); These commenters suggested that, since inefficient duplication of efforts. or these entities are less driven by Treasury Response:Given the final • Otherwise provide access to a financial returns to investment than rule's revised requirements on eligible broad-based affordability program to private providers,in some areas for investment,this low-income consumers in the proposed circumstances they may be able to service area of the broadband provide robust service at a lower price 344 The Executive Office of the President, infrastructure that provides benefits to as compared to private providers,along Community-Based Broadband Solutions(January households commensurate with those with potentially increasing local 2015),https://obamawhitehouse.archives.gov/sites/default/files/dots/community-based broadband provided under the ACP. competition in a service area. report by_exec utive_office_of the_president.pdf.