Allison Ellis, Director of Regulatory Policy for Ericsson, answers five questions about Broadband Technologies and Opportunity Program (BTOP) grants administered by the National Telecommunications and Information Administration (NTIA), as well as Broadband Initiatives Program (BIP) grants, loans, and grant/loan combos administered by the Department of Agriculture’s Rural Utilities Service (RUS).
1. WHAT ARE THE HIGHLIGHTS OF THE RECENTLY ANNOUNCED NoFA?
On July 1, NTIA and RUS released a Notification of Funds Availability, or NoFA, announcing the evaluation criteria for stimulus funds applications. Through this NoFA,
$4 billion in funds ($2.4 billion RUS, $1.6 billion NTIA) are available for award. Remaining funds will be made available in subsequent NoFAs, which may have different requirements.
Applications must be submitted between July 14 and August 14, 2009. The application for BTOP and BIP funds will be available beginning July 7 at the government’s new Broadband USA Web site.
NTIA and RUS intend to announce awards starting November 7, 2009 and release funds within 30 days after that.
2. HOW WILL APPLICATIONS BE EVALUATED?
Applications for projects will not be evaluated in comparison to one another but rather will be evaluated according to four criteria:
1. Purpose
2. Benefits
3. Viability
4. Budget and sustainability
Though slightly different for BTOP applications and BIP applications, generally, applications will be evaluated in two steps:
1. Applications will be reviewed for completeness and eligibility (in the case of BTOP, three experts will independently score the application) to create a pool of viable and potentially fundable applications
2. Applicants will be invited to provide more detailed project information to identify the most highly qualified applications
For BTOP applications, in Step 2, states will have the opportunity to make recommendations concerning the allocation of funds. More details about application criteria and the evaluation process are at the Broadband USA Web site.
3. NTIA BTOP OR RUS BIP: HOW DO CUSTOMERS CHOOSE?
Many projects will be fundable under either the BTOP or the BIP programs but can only be funded by one source. Applications to fund projects which are at least 75% rural (in other words, where at least 75% of the population does not have broadband access) must be submitted to RUS. They may also be funded under BTOP but will face additional application requirements. BTOP and BIP funds will be distributed to projects that fulfill each program’s statutory priorities.
BTOP is intended for unserved and underserved areas, and to help facilitate broadband mapping, use, and adoption. Funds are available for three project categories:
1. Broadband Infrastructure, including last mile and middle mile broadband service
2. Public Computer Centers that expand public access to broadband
3. Sustainable Broadband Adoption, defined as innovative projects including training, equipment, and education (especially of vulnerable populations) that promote broadband demand
Network speed will also be an important component of a successful application. (Broadband is defined as two-way data transmission with advertised speeds of at least 768 kbps downstream and at least 200 kbps upstream to end users.) Also note that the BTOP program will have a 20% private funding requirement that will be waived only in extraordinary cases.
BIP grants will be available for applications that propose to exclusively serve remote, unserved, truly rural areas. BIP loans and loan/grant combos will be available for projects serving non-remote and underserved rural areas. Projects that propose a higher percentage of loan funds and that can begin quickly — as well as those of former borrowers, those that will deliver end-users a choice of more than one service provider, and those that provide service to the highest proportion of residents — will be more favorably considered.
4. WHAT SHOULD APPLICANTS KNOW ABOUT ‘BUY AMERICAN’ PROVISONS?
The NTIA has announced “a limited programmatic waiver exception to the Buy American requirements of ARRA” covering certain broadband equipment/network components used in BTOP projects:
1. Switching equipment necessary to establish a broadband communications path between two points
2. Equipment that routes data packets through a broadband network
3. Transport equipment for providing interconnection within the broadband provider’s network
4. Customer premises and end-user equipment that connects to a broadband network
5. Billing and operations systems that are used to manage and operate a broadband network or offer a broadband service
RUS has also issued a waiver that mirrors NTIA’s waiver.
Note that the above-listed items do not include fiber-optic cables, cell towers, and other facilities that are produced in the United States in sufficient quantities to be reasonably available as end products. Waivers will be available on a case-by-case basis.
The Buy American obligation for cables and towers applies only to public works and public buildings. Completely private projects do not need to obtain a waiver to use iron, steel, and manufactured goods produced outside of the U.S. Public-private partnerships are considered to be public projects.
5. BEYOND THE BUZZWORD, WHAT IS ‘SUSTAINABILTY?’
For purposes of completing the application for funds, think of sustainability in its economic context. Projects must be substantially completed within two years of the grant issuance date and fully completed within three years. In addition, funds cannot be applied to ongoing system maintenance and support. However, don’t underestimate the importance of sustainability in the “sustainable resources” context. If your project demonstrates responsible use of natural resources, then certainly include that in your application. A wireless network that uses more energy efficient network components is a good example.
