Legislature(2021 - 2022)BARNES 124
02/25/2022 09:00 AM House LABOR & COMMERCE
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| Audio | Topic |
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| Presentation: Broadband and the Infrastructure Investment and Jobs Act | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
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| + | TELECONFERENCED | ||
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ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
February 25, 2022
9:04 a.m.
MEMBERS PRESENT
Representative Zack Fields, Co-Chair
Representative Ivy Spohnholz, Co-Chair
Representative Calvin Schrage
Representative Liz Snyder
Representative James Kaufman
Representative Ken McCarty
MEMBERS ABSENT
Representative David Nelson
COMMITTEE CALENDAR
PRESENTATION: BROADBAND AND THE INFRASTRUCTURE INVESTMENT AND
JOBS ACT
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
HALLIE BISSET, Executive Director
Alaska Native Village Corporation Association
Anchorage, Alaska
POSITION STATEMENT: Co-offered a presentation, titled
"Governor's Task Force on Broadband."
CHRISTINE O'CONNOR, Executive Director
Alaska Telecom Association
Anchorage, Alaska
POSITION STATEMENT: Co-offered a presentation, titled
"Governor's Task Force on Broadband."
ANDY BERKE, Special Representative for Broadband
National Telecommunications and Information Administration
U.S. Department of Commerce
Chattanooga, Tennessee
POSITION STATEMENT: Gave a PowerPoint presentation, titled
"Infrastructure Investment and Jobs Act New Funding
Initiatives."
MILES BAKER, Infrastructure Investment Coordinator
Office of the Governor
Anchorage, Alaska
POSITION STATEMENT: Gave a presentation, titled "Bipartisan
Infrastructure Law (BIL): Broadband Investments."
ACTION NARRATIVE
9:04:17 AM
CO-CHAIR IVY SPOHNHOLZ called the House Labor and Commerce
Standing Committee meeting to order at 9:04 a.m.
Representatives Fields, Spohnholz, Kaufman, McCarty, and Schrage
were present at the call to order. Representative Snyder
arrived as the meeting was in progress.
^PRESENTATION: Broadband and the Infrastructure Investment and
Jobs Act
PRESENTATION: Broadband and the Infrastructure Investment and
Jobs Act
9:05:12 AM
CO-CHAIR SPOHNHOLZ announced that the only order of business
would be a presentation on Broadband and the Infrastructure
Investment and Jobs Act.
9:06:19 AM
HALLIE BISSET, Executive Director, Alaska Native Village
Corporation Association, co-presented the PowerPoint, titled
"Governor's Task Force on Broadband" [hard copy included in the
committee packet]. She stated that she chairs the governor's
task force through Administrative Order 322. She stated that
the task force includes 11 voting members and two ex officio
members. She stated that the task force is comprised of 8
tasks, 2 subgroups, and 32 public meetings.
9:07:49 AM
CHRISTINE O'CONNOR, Executive Director, Alaska Telecom
Association, co-presenting the PowerPoint with Ms. Bisset,
stated that the recommendations created on behalf of the task
force parallel the language in the Infrastructure Investment and
Jobs Act (IIJA). She stated that rural Alaska is strongly
represented in the technical subgroup. She asserted that all
Alaskans should have access to robust broadband services, and
policy makers should expand buildout objectives to deploy
infrastructure to meet the needs of underserved locations
throughout Alaska. She pointed out that speeds of 100/20
megabits per second (mbps) are defined as a sufficient broadband
gap, along with latency of less than 100 milliseconds. This
would be sufficient for real-time applications, like two-way
video. She stated that gaps are also defined if data usage is
capped and not comparable to urban markets, or if there is a
lack of reliability. Broadband policy and program analyses
should include data gathering and research to identify where
additional middle-mile capacity is needed to meet established or
potential last-mile service availability. She advised that any
established standards would need to evolve with the growing
demands of technology and consumer usage over time. She
reasoned that IIJA funding is a once-in-a-generation
opportunity, and it is fleeting, and should be taken advantage
of to fill in the gaps. She explained that because of
unparalleled bandwidth, latency, upgradeability, and
reliability, fiberoptic cables should be deployed wherever
feasible and practical to facilitate middle-mile connections.
She added that these fiberoptic cables are likely to last 50
years. She argued that with the scale of the funding from IIJA,
fiberoptics will be possible in places which have not been
considered before; however, flexibility in technology will be
necessary in certain cases.
9:15:46 AM
MS. O'CONNOR pointed out the significant discrepancy in
broadband service available throughout rural areas. She urged
that, with the fast-paced technological evolution, policymakers
should strive to ensure equitable development continues to occur
for access to broadband service. She stated that IIJA calls for
accurate, granular broadband availability with infrastructure
maps. These maps define unserved and underserved areas. She
advised that the [Alaska State Broadband Office] should commit
to the utilization of world class broadband data and mapping
analytics, leveraging available data sources to avoid a
duplication of efforts. She stated that the first data
collection for providers was recently announced and will soon
commence, with data submissions beginning on September 1, 2022.
She continued that once the Federal Communications Commission
(FCC) releases the maps, a review process will take place to
further improve accuracy of the maps.
9:19:22 AM
MS. BISSET, chair of the policy subgroup, advised that to
receive IIJA funding and provide leadership in the state's
efforts to ensure the expansion of broadband access, an office
for broadband deployment will need to be established. The state
should also establish a broadband advisory board to provide
guidance to the office. The board should represent many
interests, including local, Tribal, education, health, business,
and the public. The office of broadband deployment would also
be responsible for strengthening relationships with Tribes,
because, in addition to money granted through IIJA, Tribal money
has been set aside for broadband. The newly formed office would
work closely with Tribal governments, consortia, and other
Alaska Native entities to identify ways to collaboratively
address the gaps across the state, leverage available resources,
and ensure equitable development. She continued that additional
priority should be given to broadband-infrastructure projects,
including support for local workforce development. She urged
policymakers to recognize affordability as an important element
in defining the gaps in the broadband infrastructure.
Policymakers should also recognize that affordability is driven
by underlying costs associated with Alaska's unique environment.
She pointed out policymakers should recognize that partnerships
between service providers and the state and federal programs are
important in achieving affordable service delivery to end users.
9:23:48 AM
MS. BISSET, in recognition of the scale of the investment
necessary to bring adequate broadband infrastructure into every
Alaska community, stated that policymakers should create a
broadband parity adjustment, much like the Power Cost
Equalization Program, which would support equitable broadband
costs across Alaska's high-rate areas as compared with those in
low-rate communities.
9:24:22 AM
ANDY BERKE, Special Representative for Broadband, National
Telecommunications and Information Administration, U.S.
Department of Commerce, delivered a PowerPoint presentation,
titled "Infrastructure Investment and Jobs Act New Funding
Initiatives" [hard copy included in the committee packet]. He
shared that Chattanooga, Tennessee, the first "gig city", put in
a fiber optic network which reached every home and business for
600 miles. He relayed the president's goal of connecting every
American to affordable broadband. He added that this is a
bipartisan effort. He gave an overview of IIJA, which includes
Broadband Equity, Access and Deployment (BEAD), digital equity
programs, Tribal connectivity technical amendments, and middle-
mile broadband infrastructure.
MR. BERKE detailed that $65 billion is in the broadband portion
of IIJA, and of this about $42.5 billion is allocated for
infrastructure planning and implementation through the BEAD
program. Two Tribal awards have already been made in Alaska,
with more expected. He stated that the new connections will
have 100/20 mbps, with fiberoptics providing the fastest
available connectivity. He stated that eligible entities must
provide at least a 25 percent match to meet requirements, unless
a waiver is granted. He related that $2.75 billion is allocated
in the funding pool, with $60 million of this used for the State
Digital Equity Planning Grant Program. This program prioritizes
people with high needs like veterans, incarcerated individuals,
people with disabilities, rural communities, and others. He
noted that $1.44 billion will be used to implement grants, with
$1.25 billion created once state implementation grants are
awarded. By mid-May states will begin awarding state capacity
grants. He said $1 billion is allocated to the middle-mile
grant program, which supports the expansion of networks. He
emphasized the necessity for affordability for Americans. He
reiterated that the president is focused on the promise to
ensure every American has an affordable broadband connection.
9:34:05 AM
MR. BERKE agreed with Representative Sponholz that Alaska is a
substantial geographic piece of the country with unique
conditions. He stated that FCC oversees the maps, and the
number of unserved or underserved individuals in the state will
determine the amount of funding. Every state starts with $100
million, and the formula comes into play after the FCC maps are
submitted. He added that ensuring the accuracy of the maps is
essential to procure the correct amount of funding to serve
everyone.
MR. BERKE, responding to a committee question, stated that for
anyone who is building a network, there needs to be an
affordable plan. He reiterated that there will be a mid-May
rollout of this program.
9:44:55 AM
MR. BERKE, responding to a committee question, said provisions
will be made for the affordability of building the
infrastructure.
CO-CHAIR SPOHNHOLZ noted the hyper-rural communities in Alaska
will be the most expensive in the country to reach with
broadband technology. She argued that people have lived in
these areas for 10,000 years and should have basic access to the
equity of broadband.
MR. BERKE responded that she has made an important point about
remoteness in Alaska, and he will relay this information. He
reassured that people in his office understand the challenges
ahead and noted that there will be some places across the U.S.
which exhibit extremely difficult geography.
9:49:08 AM
MILES BAKER, Infrastructure Investment Coordinator, Office of
the Governor, gave a presentation, titled "Bipartisan
Infrastructure Law (BIL): Broadband Investments," [hard copy
included in the committee packet]. Putting broadband spending
in context, he said IIJA totals $1 trillion, with 43 percent
designated for the reauthorization of existing programs,
including those related to transportation and public works, for
example. He said that $550 billion in new spending addresses
broadband infrastructure and affordability, making up about 12
percent or $65 billion in spending. This would ensure that
broadband would be passed to American households through
subsidies. He continued that the National Telecommunications
and Information Administration (NTIA) will use $42.8 billion to
establish grant programs, provide detailed technical guidance,
and oversee plan approval; the Federal Communications Commission
(FCC) will use $14.8 billion to develop "broadband location
fabric" mapping which will inform formula funding, administer
affordability subsidy, and regulate internet access equity; and
the U.S. Department of Agriculture (USDA), through its rural
utilities service, will use $2 billion for distance learning,
telemedicine, and the broadband program.
10:00:50 AM
MR. BAKER showed the three agencies represented, including NTIA,
USDA, and FCC. He pointed out that the FCC portion of the
funding has an important role through its mapping program.
Within NTIA, there are four programs including the BEAD grant
program. The $100 million will be allocated per state as an
initial grant, then the high-cost area formula distribution will
be calculated, and, in Alaska, the formula distribution will be
based on unserved locations relative to the rest of the United
States. Unserved, underserved, and institutions including
public schools, libraries, multi-family homes, medical
facilities, higher education facilities, and some nonprofit
community-support organizations will qualify as anchor
institutions. Most of Alaska is in a high-cost area. He
pointed out that the Enabling Middle Mile Infrastructure Program
will help to connect the grid to the "backbone." The objective
of the Digital Equity Act is to ensure everyone, no matter how
remote, would receive a minimum threshold of internet access and
speed. The Tribal Broadband Connectivity Program has been
allocated $2 billion; however, grant applications have exceeded
the allotment by three times.
10:10:45 AM
MR. BAKER, in response to a question about state-matching funds,
addressed an appropriation bill which would make sure the state
is positioned to capture federal matching requirements for
broadband. He discussed creating a broadband office within the
Department of Commerce, Community, and Economic Development. He
added that the office would have three employees. In accordance
with the timelines, if there are significant delays in the
federal process, general funds may be needed to support the
project in the meantime. He stated that the exact numbers are
currently not available regarding state-matching funds. The
Department of Transportation and Public Facilities and the
Department of Environmental Conservation would be the most
impacted by infrastructure dollars. These departments will be
looking at the resource needs which would be covered with IIJA
money.
10:17:54 AM
MS. O'CONNOR, responding to a committee question about future
expectations and advancements, stated that IIJA currently
requires 100/20 mbps; however, this can be upgraded in regard to
the demands of ever-advancing technology.
10:19:14 AM
MS. BISSET added that there are over 200 communities in Alaska
that are "unserved" by broadband.
10:22:55 AM
MR. BAKER, responding to a committee question, stated that IIJA
funding is scalable to newer and higher speed services. He
advised that the federal legislation is highly prescriptive on
what the state would need to develop, and the state would need
to submit its plans to the federal government before funding
would flow. He stated that plans should work towards preventing
obsolescence, and the [new commerce] coordination office would
do the outreach and create a plan which would be determined by
policy.
10:26:57 AM
MR. BAKER, responding to a committee question about what is
currently needed from the legislature, stated that authority on
the budget side would be needed to start the [new] commerce
coordination office. This is required to receive the federal
dollars. He laid out that a letter of intent must be filed, and
a regional advisory committee must be put together to do
outreach coordination between all the local governments. He
mentioned that the money listed on slide 4 has been appropriated
by the U.S. Congress.
10:30:45 AM
MR. BAKER said the broadband office will be responsible for
planning activities including research, data collection,
developing a long-term budget, outreach communication, technical
assistance with partners, and community training. These are
eligible activities under the initial planning funding listed on
slide 5. Once Alaska's plan has been approved, 2 percent of the
total amount the state eventually receives from the BEAD program
allocation can be used to administer the state's program. The
notice of funding opportunity will likely occur in mid-May,
after which a letter of intent will be filed, and a 5-year plan
will be developed. After FCC publishes the fabric map, an
advisory board, regional planning committees, and public
outreach programs will be implemented to accomplish accurate
mapping of broadband service. He remarked that the state has
already submitted comments to NTIA about BEAD concerning
Alaska's unique challenges and opportunities, which are listed
on slide 8.
10:39:49 AM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
10:40 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 02.25.2022 NTIA overview IIJA and Broadband.pdf |
HL&C 2/25/2022 9:00:00 AM |
Broadband and IIJA in Alaska |
| 02.25.2022 Gov Task Force on Broadband.pdf |
HL&C 2/25/2022 9:00:00 AM |
Broadband and IIJA in Alaska |
| 02.04.22 Ltr State of Alaska NTIA Comment.pdf |
HL&C 2/25/2022 9:00:00 AM |
Broadband and the Infrastructure Investment and Jobs Act in Alaska |
| 2022 02 25 OOG Broadband HL&C.pdf |
HL&C 2/25/2022 9:00:00 AM |