Legislature(2023 - 2024)BELTZ 105 (TSBldg)
02/01/2024 01:30 PM Senate COMMUNITY & REGIONAL AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| SB161 | |
| SJR13 | |
| Presentation(s): Alaska Broadband Update | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 161 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| *+ | SJR 13 | TELECONFERENCED | |
| + | TELECONFERENCED |
^PRESENTATION(S): ALASKA BROADBAND UPDATE
PRESENTATION(S): ALASKA BROADBAND UPDATE
[Contains discussion of SB 140.]
2:14:42 PM
CHAIR DUNBAR reconvened the meeting and announced a presentation
from the Alaska Broadband Office (ABO).
2:14:59 PM
THOMAS LOCHNER, Director, Alaska Broadband Office, Department of
Commerce, Community and Economic Development, Anchorage, Alaska,
delivered an update on the Office and answered questions. He
said it has been a year since he first addressed the committee.
He said a lot has happened in the last year, and there are many
exciting developments to share today. He described his work
history and experience, stating it provided him with a
comprehensive knowledge of all aspects of telecommunications.
MR. LOCHNER emphasized that permitting takes three to four
years, while the actual build only takes about six months. He
said that ABO is doing everything possible to expedite the
permitting process because the State only has four years to
complete these mega projects, with a potential 50-year
extension. He stressed the need for ABO to be efficient as
possible in everything it does.
2:19:08 PM
MR. LOCHNER advanced to slide 2. The slide showed an expanded
ABO organizational structure from the previous year and outlined
the following organizational partners:
Division of Community and Regional Affairs
• Grant Administration
• Mapping Analytics and Data Resources
Department of Natural Resources
• Office of Project Management and Permitting
• Mining, Land and Water
Department of Transportation and Public Facilities
• Project Coordination
• Permitting
Department of Environmental Conservation
• Permitting
2:20:12 PM
MR. LOCHNER moved to slide 3, stating this slide from last year
was included to provide context. He explained that the
Infrastructure Investment and Jobs Act (IIJA) had two items that
provided funding through the states. He said that Alaska is
passing its funds through to subgrantees. This slide shows last
years two federal IIJA items and amounts:
[Original punctuation provided.]
Infrastructure Investment and Jobs Act (IIJA)
NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION
(NTIA) BROADBAND FUNDING PROGRAMS
Broadband Equity, Access, and
Digital Equity Act (DE): Deployment (BEAD):
$2,750,000,000 $42,450,000,000
2:20:58 PM
MR. LOCHNER moved to slide 4 to discuss the Digital Equity Act.
He said there are three tranches of funding that will go to
improve the broadband experience of eight covered populations.
The tranches of funding and covered populations are listed
below:
[Original punctuation provided.]
Digital Equity Digital Inclusion Digital Literacy
ALLOCATED 2.75 BILLION FOR ALL STATES AND TERRITORIES
• Planning Grants: $60 Million Alaska Awarded $567,800
• Capacity Grants: $1.44 Billion Alaska's Award: TBD
• Competitive Grants: $1.25 Billion Alaska's Award: TBD
COVERED POPULATIONS
• Individuals with a Language Barrier
• Incarcerated Individuals
• Individuals with Disabilities
• Individuals in Low-Income Households
• Aging Individuals
• Veterans
• Individuals who are Members of a Racial or Ethnic
Minority
• Individuals who Reside in Rural Areas
2:22:28 PM
MR. LOCHNER moved to slide 5, stating Alaska received over $1
billion in BEAD funding. He praised Alaska's congressional
delegation, whose educational efforts significantly influenced
the National Telecommunications and Information Administration's
(NTIA) perspective on the five allocations outlined in the
Notice of Funding Opportunity (NOFO). This advocacy resulted in
a doubling of Alaska's allocation, giving the state the highest
allocation on a per capita basis. He reviewed slide 5:
[Original punctuation provided.]
Broadband Equity, Access, and Deployment
ALLOCATED $42.45 BILLION
FOR ALL
STATES AND TERRITORIES
Alaska's Allocation: $1,017,139,672.42
DISBURSEMENTS OF ALASKA'S ALLOCATION
Grants will be based on percentage of locations that
are:
• 1st Priority -- Unserved - less than 25Mbps/3Mbps
• 2nd Priority -- Underserved - less than 100Mbps/20Mbps
and
• 3rd Priority -- Unserved Community Anchor Institutions -
less than 1Gbps/1Gbps
2:23:46 PM
SENATOR GIESSEL asked if this is the money the legislature is
attempting to appropriate in Senator Hoffman's bill.
MR. LOCHNER answered that he believes so but deferred the
question to Ms. Heist.
CHAIR DUNBAR invited Ms. Heist to put herself on the record to
answer whether the BEAD allocation pertains to SB 140, sometimes
called the "bag" bill.
2:24:23 PM
ERIN HEIST, Operations Manager, Administrative Services
Division, Department of Commerce, Community and Economic
Development (DCCED), Juneau, Alaska, answered questions during
the update on the Alaska Broadband Office. She said that she is
not certain about that specific bill. The governor's FY2025
budget includes this full allocation as a capital item.
MR. LOCHNER followed up, stating the funding is not part of the
bag bill.
2:25:01 PM
MR. LOCHNER concluded his comments on slide 5.
2:25:38 PM
MR. LOCHNER moved to slide 6, which showed a map and stats from
one year ago. He explained that the initial Federal
Communications Commission (FCC) map was missing about 70
communities. The second version improved, and the third version
is still better, though not perfect. ABO is working with the FCC
to identify every broadband serviceable location accurately.
Slide 6 provided the following statistics:
[Original punctuation provided.]
Understanding of Broadband Landscape 1 Year Ago
Percentage
Alaska of Total
Communities Communities
Served (green) 112 28.9
Projects(blue) 80 20.6
Underserved (purple) 12 3.1
Unserved (reddish pink) 184 47.4
Sum Total 388
2:26:35 PM
MR. LOCHNER moved to slide 7, which provided an overview of what
ABO has done over the last year:
[Original punctuation provided.]
Understanding the Broadband Landscape
Alaska Broadband Office Activities
• In partnership with many Alaskans, the ABO developed
and submitted the State of Alaska Digital Equity
Plan making the State to be eligible for an
allocation of the $1.44 billion Digital Equity
Capacity Grant funds.
• The ABO developed and submitted the State of Alaska
BEAD, Initial Proposal Volume 1 Challenge Process
and are in the final approval process giving
Alaskans a voice in where the infrastructure will be
built.
• The ABO developed and submitted the State of Alaska
BEAD, Initial Proposal Volume 2 Grant Program and
are in the curing stage of the process.
2:27:58 PM
MR. LOCHNER moved to slide 8, giving an overview of what changed
in the past year:
Understanding the Broadband Landscape (cont.)
What has Changed in the Past Year
• The Federal Communications Commission (FCC) Mapping
updated from R1 (missing nearly 70 communities
completely) to R3.2 (all communities represented but
still not perfect). Maps are updated every 6 months.
• The NTIA has determined the Served, Underserved and
Unserved Locations in Alaska and published them in
the National Broadband Availability Map (NBAM).
• The NTIA has determined the High-Cost (no funding
match required) and Non-High-Cost Areas (25% funding
match required) based on Census Block Groups.
• The ABO has evaluated the ultra-remote locations
within the Non-High-Cost Areas (will be asking for a
waiver for the 25% funding match).
2:28:42 PM
MR. LOCHNER advanced to slide 9, The National Broadband
Availability Map (NBAM)/ABO Map: High-Cost (red) and Non-High-
Cost. He explained that the Non-High-Cost Areas are shown in a
lighter color on the map and require a 25 percent match. In many
areas, ABO considered whether residents would have the means to
contribute a 25 percent match of a $10,000,000 project. After
considering the matter, ABO is prepared to request a waiver in
certain areas to secure 100 percent funding. The High-Cost
areas, shown in red on the map, received an automatic waiver,
meaning NTIA will fund 100 percent of the project costs.
2:29:33 PM
CHAIR DUNBAR asked whether a formal waiver process is provided
for in statute, and whether the federal government has been
amenable to those waivers.
2:29:50 PM
MR. LOCHNER replied that the federal government indicated it is
amenable to those waivers. ABO listed the waivers in the grant
program and description, Initial Proposal, Volume II. Although
the federal government liked the waivers, they requested that
ABO submit them after the grant program. He expressed his
anticipation for submitting the waivers on a case-by-case basis
as the applications come in.
2:30:34 PM
MR. LOCHNER moved to slide 10, The NBAM/ABO Map: Bethel Area
Detail. He said that NTIA gave the Bethel Native Corporation an
award to build fiber to and within Bethel. This development will
change the dot color on the map to light blue, indicating a
project. He pointed out that ABO needs to provide 100Mbps to
the communities outlined in orange and is evaluating the
appropriate technology, noting fiber is not a feasible option
due to remoteness. He said microwave, low earth orbit (LEO)
satellite, or geosynchronous (GEO) satellite technologies would
most likely serve these communities.
2:32:14 PM
MR. LOCHNER moved to slide 11, The NBAM/ABO Map: Anchorage.
Despite the classification Anchorage has as a "served"
community, the map displayed pockets of "underserved" locations
within the municipality. He pointed out specific areas of
"unserved" locations, too, such as Rabbit Creek, Bear Valley,
and Post Road. He emphasized that part of the ABO Internet
charter is to provide Internet to all. All communities will be
served.
2:33:04 PM
SENATOR GIESSEL commented that she will tell the residents of
Rabbit Creek that there is hope on the horizon, and the same
applies to Rainbow Valley.
2:33:23 PM
MR. LOCHNER continued speaking to slide 11, stating that ABO
would request waivers for the areas on the map outlined in
lighter-colored polygons. It is foreseeable that residents
getting a 75 cents on the dollar subsidy will have better means
to build in dense population areas within Anchorage. He said
that is not the case outside these dense population areas.
2:33:58 PM
MR. LOCHNER moved to slide 12, which showed a timeline chart
divided into two main categories: the Grant Program Approval
Process and the Running of the Grant Program. He reviewed these
two categories on slide 12, BEAD Milestone Dates & ABO Timeline:
Grant Program Approval Process (Initial Proposal Volume 2)
There are four 30-day segments from February 2024 to May 30,
2024.
- Public Review of BSLs
- Challenge Period
- ISP Rebuttal Period
- ABO Mediate Period
Running of the Grant Program (Final Proposal)
This category pertained to two periods:
Interested Parties Application Period
• Grant Opportunities Posted June 2024
• This 120-day grant period ran from June to the end of
September.
• Grant Applications Due October 2024
Alaska Broadband Office Application Review and Grading
• 90-day review and grading period
• Grant awards announced January 2025
2:36:57 PM
MR. LOCHNER moved to slide 13 and compared the financial and
operational considerations of four common technologies: fiber,
microwave, low earth orbit (LEO) satellite, and geosynchronous
(GEO) satellite. He said a positive outcome of House Bill 363
(ch. 52, SLA 22) was the implementation of the Statewide
Broadband Advisory Board and the Technical Working Group. The
Statewide Broadband Advisory Board convenes monthly to provide
advice to ABO. The Technical Working Group evaluates
technologies and prioritizes them based on their usefulness for
the Alaskan experience. The chart on slide 13 reads:
[Original punctuation provided.]
Comparison of Technologies
Fiber
Consideration - Financial
1
Initial CapEX $1.5 to $2.8 Billion
Ongoing O&M $84 Million/Year (est.)
Services Cost $99.00 - $10,000/Month
Consideration - Operational
Residential Service Ready Yes: Optimal
Medical Service Ready Yes: Optimal
Weather Impacted No
Useful Life 25 Years
Capacity (Terabits/second) 30
Synchronous Service Yes
Meets FCC's Proposed
100/100Mbps Service Yes
Latency 2 60 ms
Oversubscription Needed 1:1 to 5:1
1. Statewide build
Microwave
Consideration - Financial
2
Initial CapEX ~$0.4 to $1.5 Million/Site
Ongoing O&M $150 to $250
Thousand/Site/year
Services Cost $99.00 - $10,000/Month
Consideration - Operational
Residential Service Ready Yes: Optimal
Medical Service Ready Yes: Optimal
Weather Impacted Yes
Useful Life 5 Years
Capacity (Terabits/second) 0.01
Synchronous Service Yes
Meets FCC's Proposed
100/100Mbps Service Yes
Latency 40 60 ms
Oversubscription Needed 10:1 to 20:1
2. Microwave site needed every 30 60 miles
Low Earth Orbit (LEO) Satellite
Consideration - Financial
Initial CapEX $1.4 to $3.0 Billion
3
Ongoing O&M $500 Million/Year (est.)
Services Cost $99.00 to $10,000/Month
Consideration - Operational
Residential Service Ready Yes: Optimal
Medical Service Ready No: Occasional Poor
Satellite Coverage
Weather Impacted Yes
Useful Life 5 Years
Capacity (Terabits/second) 3
Synchronous Service No
Meets FCC's Proposed
100/100Mbps Service No
Latency 40 60 ms
Oversubscription Needed 20:1 to 100:1
3. Replacement of LEO satellites every 5 years
Geosynchronous (GEO) Satellite
Consideration - Financial
Initial CapEX $150 to $250 Million
Ongoing O&M $100 to $350 Thousand/Year
(est.)
Services Cost $99.00 - $10,000/Month
Consideration - Operational
Residential Service Ready Yes: Optimal
Medical Service Ready No: High Latency
Weather Impacted Yes
Useful Life 20 Years
Capacity (Terabits/second) 0.15
Synchronous Service No
Meets FCC's Proposed
100/100Mbps Service No
Latency 600 800 ms
Oversubscription Needed 20:01
2:38:17 PM
MR. LOCHNER moved to slide 14. He said the Digital Equity Plan
requires that installed broadband is useful and safe and does
not cause further problems for the users of the eight-covered
populations. He said the plan is robust and has specific key
performance indicators. Slide 14 reads:
[Original punctuation provided.]
Understanding the Digital Equity Need
• State of Alaska Digital Equity Plan completed by the
January 28, 2024 deadline
• The plan will be a key feature in the Digital Equity
Capacity Grant Notice of Funding Opportunity.
• The plan was developed through a statewide Digital
Equity outreach by the Rasmuson Foundation, Alaska
Federation of Natives, Alaska Municipal League, and
many other non-profits and individuals.
2:39:04 PM
MR. LOCHNER moved to slide 15, stating that ABO had 196
listening sessions and sometimes hosted multiple sessions within
a community to engage with the eight covered populations:
[Original punctuation provided.]
Digital Equity - Outreach
In 2022 and 2023 there were 196 Digital Equity
Listening Sessions to reach the Covered Populations in
the following communities:
Akiachak, Akiak, Alakanuk, Ambler, Anchorage, Bethel,
Chitina, Cooper Landing, Cordova, Crooked Creek,
Dillingham, Eagle River/Chugiak, Eureka, Fairbanks,
Galena, Gambell, Glacier View (virtual), Healy, Homer,
Houston, Hydaburg, Juneau, Kake, Kasigluk, Kenai,
Ketchikan, Klawock, Kobuk, Kodiak, Kongiganak,
Kotzebue, Kwethluk, Lake Louise/Eureka, Lime Village,
Manokotak, McGrath, Mekoryuk, Nanwalek, Napakiak,
Napaskiak, Nenana, Newtok, Nome, Noorvik, North Pole,
Palmer, Pilot Station, Point Lay, Quinhagak, Russian
Mission, Saint Mary's, Savoonga, Seldovia, Seward,
Sitka, Sleetmute, Soldotna, Talkeetna, Teller, Tok,
Toksook Bay, Tununak, Tyonek, Unalaska, Utqiagvik,
Valdez, Wasilla, Wrangell, Yakutat
2:39:35 PM
MR. LOCHNER moved to slide 16, showing a chart of key
performance indicators (KPIs) for the eight covered populations
and the NTIA-required areas. ABO extracted this chart directly
from its Digital Equity Plan, and the numbers serve as reference
points. Slide 16 reads:
[Original punctuation provided.]
Understanding the Digital Equity Need
Matrix of Key Performance Indicators (KPI) to Requirements
a.
Affordability of access to
fixed and wireless
broadband technology
KPI Reference numbers from the
State of Alaska Digital Equity Plan
1. Individuals with a Language Barrier 2.3.1.
2. Incarcerated Individuals 2.4.2.(B)
3. Individuals with Disabilities 2.3.1.
4. Individuals in Low-Income 2.3.1.
Households
5. Aging Individuals 2.3.1.
6. Veterans 2.3.1.
7. Racial and Ethnic Minorities 2.3.1.
8. Individuals Primarily Living in Rural 2.3.1.
Areas
2:39:41 PM
b.
The online accessibility
and inclusivity of public
resources and services
KPI Reference numbers from the
State of Alaska Digital Equity Plan
1. Individuals with a Language Barrier 2.3.5.
2. Incarcerated Individuals 2.3.5.
3. Individuals with Disabilities 2.3.5.
4. Individuals in Low-Income 2.3.5.
Households
5. Aging Individuals 2.3.5.
6. Veterans 2.3.5.
7. Racial and Ethnic Minorities 2.3.5.
8. Individuals Primarily Living in Rural 2.3.5.
Areas
c.
Digital Literacy
KPI Reference numbers from the
State of Alaska Digital Equity Plan
1. Individuals with a Language Barrier 2.3.4.
2. Incarcerated Individuals 2.4.2.(B)
3. Individuals with Disabilities 2.3.4.
4. Individuals in Low-Income 2.3.4.
Households
5. Aging Individuals 2.3.4.
6. Veterans 2.3.4.
7. Racial and Ethnic Minorities 2.3.4.
8. Individuals Primarily Living in Rural 2.3.4.
Areas
2:39:44 PM
d.
Awareness of, and the
use of, measures to
secure the online with
respect to, an individual
KPI Reference numbers from the
State of Alaska Digital Equity Plan
1. Individuals with a Language Barrier 2.3.2.
2. Incarcerated Individuals N/A
3. Individuals with Disabilities 2.3.2.
4. Individuals in Low-Income 2.3.2.
Households
5. Aging Individuals 2.3.2.
6. Veterans 2.3.2.
7. Racial and Ethnic Minorities 2.3.2.
8. Individuals Primarily Living in Rural 2.3.2.
Areas
e.
Availability and affordability
of consumer devices and
technical support for those
devices
KPI Reference numbers from the
State of Alaska Digital Equity Plan
1. Individuals with a Language Barrier 2.3.3.
2. Incarcerated Individuals 2.4.2(C)
3. Individuals with Disabilities 2.3.3.
4. Individuals in Low-Income 2.3.3.
Households
5. Aging Individuals 2.3.3.
6. Veterans 2.3.3.
7. Racial and Ethnic Minorities 2.3.3.
8. Individuals Primarily Living in Rural 2.3.3.
Areas
2:40:35 PM
MR. LOCHNER moved to slide 17, which provided estimates for the
Digital Equity Milestone Dates and the ABO Timeline:
• End of January 2024
State of Alaska Digital Equity Plan completed
• End of March 2024
NTIA Publishes Digital Equity Capacity Grant Notice of Funding
Opportunity (NOFO) (estimated)
and
State responds to the Digital Equity Capacity Grant NOFO to
develop subgrants (estimated timeline)
• Beginning of June 2024
NTIA Publishes Digital Equity Competitive Grant NOFO
(estimated)
and
Public responds to Digital Equity Competitive Grants NOFO
(estimated timeline)
• Beyond June 2024
Further updates to the calendar post availability of the
Capacity Grant NOFO
2:41:19 PM
MR. LOCHNER moved to slide 18 to discuss workforce development,
which is the key feature of both the BEAD and Digital Equity
Programs:
[Original punctuation provided.]
BEAD and Digital Equity -- Workforce Development
The ABO is engaging and partnering with a broad range
of entities to develop an Alaska Broadband Workforce
Development Plan that will intersect both the BEAD
Program and the Digital Equity Plan.
The plan identifies three goals and five strategies.
Alaska Workforce Development Plan Goals:
1. Increase the number of Alaskans qualified to fill
broadband construction and operations occupations,
2. Develop a diverse and inclusive regional broadband
industry workforce, and
3. Strengthen and expand post-deployment capacity for
residents to learn about and navigate education,
training, and career opportunities, including self-
employment, available using high-speed broadband
access.
2:42:52 PM
MR. LOCHNER moved to slide 19, which lists five workforce
development strategies:
[Original punctuation provided.]
BEAD and Digital Equity -- Workforce Development (cont.)
Alaska Broadband Workforce Development Plan Strategies:
1. Implement the Broadband Workforce Development Plan
and build a sustainable, standards-based program,
with a focus on public-private partnerships to
produce a highly skilled and technically trained
workforce that can meet industry labor supply
challenges,
2. Build on the existing construction industry training
and workforce efforts,
3. Increase career awareness and information about
telecommunications occupations and employment,
4. Increase education and training programs that
prepare students and adults for apprenticeship and
entry-level employment in telecommunications
occupations, and
5. Put in place recruitment, training, and employment
efforts focused on historically underrepresented
groups.
2:43:08 PM
CHAIR DUNBAR asked whether the ABO workforce development plan is
funded.
MR. LOCHNER replied that a percentage of the $1 billion BEAD
funding is available for implementing workforce development and
improvement, and some funding is available to cover
administrative fees.
CHAIR DUNBAR commented that is good to hear.
2:43:58 PM
CHAIR DUNBAR sought confirmation that though federal dollars
fund these mega projects in Alaska, the State will not own them.
Instead, the State has grants for entities like GCI, Cordova
Telecom Cooperative, and nonprofits. He expressed his
understanding that, ultimately, those entities will own these
assets.
MR. LOCHNER replied that is correct.
Chair Dunbar remarked that the State is essentially granting
these entities natural monopolies in each area. He inquired
about the long-range plan to prevent these entities from
engaging in price gouging after the federal government funds the
building of their assets.
MR. LOCHNER replied that is a significant challenge. He said
short of legislative action, there is not a function within the
Alaska Broadband Office (ABO) to prevent it.
2:45:13 PM
CHAIR DUNBAR sought confirmation that these entities are not
regulated like utilities.
MR. LOCHNER replied that broadband was regulated before it was
deregulated seven years ago. Legislative action is required to
change the status of broadband regulation.
2:45:32 PM
SENATOR GRAY-JACKSON drew attention to Digital Equity Outreach
on slide 15 and asked about the digital outreach efforts in the
eastern Aleutians. She noted that she did not see the Akutan and
King Salmon communities on the list.
MR. LOCHNER replied that he would get back to the committee on
that. He stated that ABO reached out to Atka, Adak, and several
of the Aleutians East communities, not on the digital equity
side but on the BEAD side. ABO generally conducted outreach via
Zoom or during events when residents traveled to town for the
Alaska Federation of Natives (AFN) convention and other
conferences.
2:46:59 PM
There being no further business to come before the committee,
Chair Dunbar adjourned the Senate Labor and Commerce Standing
Committee meeting at 2:46 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 161 - FN DCCED; Community and Regional Affairs.pdf |
SCRA 2/1/2024 1:30:00 PM |
SB 161 |
| SJR 13 Testimony Delivered 11-8-2023.pdf |
SCRA 2/1/2024 1:30:00 PM |
SJR 13 |
| SJR 13 Sponsor Statement.pdf |
SCRA 2/1/2024 1:30:00 PM |
SJR 13 |
| SJR 13 Support 2023 AFN Resolution.pdf |
SCRA 2/1/2024 1:30:00 PM |
SJR 13 |
| SJR 13 Version A.pdf |
SCRA 2/1/2024 1:30:00 PM |
SJR 13 |
| AK GOV Letter re AMLT.pdf |
SCRA 2/1/2024 1:30:00 PM |
SJR 13 |
| SJR 13 DCCED_DCRA MLT Presentation to SCRA 2023-04-20.pdf |
SCRA 2/1/2024 1:30:00 PM |
SJR 13 |
| Senate Community & Regional Affairs Alaska Broadband Office Presentation 2.1.2024.pdf |
SCRA 2/1/2024 1:30:00 PM |
Alaska Broadband Office - DCCED |