Legislature(2023 - 2024)SENATE FINANCE 532

02/24/2023 09:00 AM Senate FINANCE


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09:01:41 AM Start
09:02:36 AM Presentation: Update on Broadband Equity, Access, and Deployment (bead) in Alaska
10:01:22 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Update on Broadband Equity, Access, and
Deployment (BEAD) in Alaska
Thomas Lochner, Director, Alaska Broadband Office
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                     February 24, 2023                                                                                          
                         9:01 a.m.                                                                                              
                                                                                                                                
9:01:41 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  Hoffman   called  the  Senate   Finance  Committee                                                                    
meeting to order at 9:01 a.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Donny Olson, Co-Chair                                                                                                   
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Click Bishop                                                                                                            
Senator Jesse Kiehl                                                                                                             
Senator Kelly Merrick                                                                                                           
Senator David Wilson                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Thomas   Lochner,   Director,   Alaska   Broadband   Office,                                                                    
Department of Commerce,  Community and Economic Development;                                                                    
Senator Cathy Giessel.                                                                                                          
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
PRESENTATION:  UPDATE  ON   BROADBAND  EQUITY,  ACCESS,  AND                                                                    
DEPLOYMENT (BEAD) IN ALASKA                                                                                                     
                                                                                                                                
Co-Chair Hoffman discussed the agenda.                                                                                          
                                                                                                                                
^PRESENTATION:  UPDATE  ON  BROADBAND  EQUITY,  ACCESS,  AND                                                                  
DEPLOYMENT (BEAD) IN ALASKA                                                                                                   
                                                                                                                                
9:02:36 AM                                                                                                                    
                                                                                                                                
THOMAS   LOCHNER,   DIRECTOR,   ALASKA   BROADBAND   OFFICE,                                                                    
DEPARTMENT OF COMMERCE,  COMMUNITY AND ECONOMIC DEVELOPMENT,                                                                    
introduced himself and discussed  his background. He relayed                                                                    
that  he had  24  years'  experience in  telecommunications,                                                                    
including work with the  Anchorage Telephone Utility, Alaska                                                                    
Communications, and  the Arctic Slope  Telephone Association                                                                    
Cooperative.  He  had  experience in  engineering,  finance,                                                                    
marketing aspects  of telecommunications,  as well  as urban                                                                    
and rural areas. He had been  selected to be the director of                                                                    
the Alaska  Broadband Office  (ABO) the  previous September.                                                                    
He  discussed  a  presentation  entitled  "Alaska  Broadband                                                                    
Office Update," (copy on file).                                                                                                 
                                                                                                                                
Mr.   Lochner   looked  at   slide   2,   which  showed   an                                                                    
organizational  chart  of  ABO, including  the  Division  of                                                                    
Community  and Regional  Affairs  (DCRA)  grants staff.  The                                                                    
office   was  made   up   of   himself,  an   administrative                                                                    
specialist, and  a tribal liaison.  There was  an affiliated                                                                    
senior  project manager  from  the  Department of  Commerce,                                                                    
Community and  Economic Development  (DCCED). He  noted that                                                                    
the office was looking for  a connectivity manager and would                                                                    
also have  the opportunity to  take advantage of  DCRA grant                                                                    
staff.                                                                                                                          
                                                                                                                                
9:04:25 AM                                                                                                                    
                                                                                                                                
Mr. Lochner  spoke to slide  3, which  showed a list  of the                                                                    
Broadband Advisory  Board members. He mentioned  the passage                                                                    
of HB  363 sponsored  by Representative Bryce  Edgmon, which                                                                    
established ABO and created  the Broadband Parity Adjustment                                                                    
Fund,  and  established  the  statewide  Broadband  Advisory                                                                    
Board. He noted that the  board was diverse and experienced,                                                                    
and  would  be  solicited  to  help  with  some  aspects  of                                                                    
projects  in  development  related to  labor  and  equipment                                                                    
costs.                                                                                                                          
                                                                                                                                
Mr. Lochner  referenced slide 4,  "Infrastructure Investment                                                                    
and Jobs Act                                                                                                                    
                                                                                                                                
     NATIONAL    TELECOMMUNICATIONS    AND   I    NFORMATION                                                                    
     ADMINISTRATION (NTIA) PROGRAMS                                                                                             
                                                                                                                                
     Digital Equity (DE): $640,000,000                                                                                          
                                                                                                                                
     Broadband Equity, Access and Deployment (BEAD):                                                                            
     $42,000,000,000                                                                                                            
                                                                                                                                
Mr.  Lochner  relayed that  the  funding  for ABO  would  be                                                                    
passed through with the exception  of a small administrative                                                                    
costs and  came from the Infrastructure  Investment and Jobs                                                                    
Act (IIJA). There were small  administrative fees that would                                                                    
come to  the state, and the  rest of the funding  would be a                                                                    
pass-through to entities to administer grants.                                                                                  
                                                                                                                                
Mr. Lochner  turned to  slide 5,  "Infrastructure Investment                                                                    
and Jobs Act  So Far                                                                                                            
                                                                                                                                
     NTIA PLANNING GRANT AWARDS TO ALASKA                                                                                       
                                                                                                                                
     DE Planning Grant: $567,800                                                                                                
     Develop the DE Plan due September 30, 2023                                                                                 
                                                                                                                                
     BEAD Planning Grant: $5,000,000                                                                                            
     Develop the BEAD Program                                                                                                   
                                                                                                                                
Mr. Lochner  explained that the  state had  already received                                                                    
two of the small administrative  fees, which were listed. He                                                                    
detailed  that   the  state   was  working   with  partners,                                                                    
primarily with the Rasmuson Foundation, to write the plan.                                                                      
                                                                                                                                
9:07:01 AM                                                                                                                    
                                                                                                                                
Mr. Lochner  considered slide 6,  "Digital Equity    Digital                                                                    
Inclusion  Digital Literacy                                                                                                     
                                                                                                                                
     COVERED POPULATIONS                                                                                                        
                                                                                                                                
    • Households at/or below 150% of the Poverty Level                                                                          
     • Aging Individuals                                                                                                        
     • Incarcerated Individuals                                                                                                 
     • Veterans                                                                                                                 
       Individuals with Disabilities                                                                                            
     • Individuals with a Language Barrier                                                                                      
     • Individuals who are Members of a Racial or Ethnic                                                                        
     Minority                                                                                                                   
     • Individuals who Reside in Rural Areas                                                                                    
                                                                                                                                
     FUNDING                                                                                                                    
     • Planning Grants: $60 Million         Alaska Awarded                                                                      
     $567,800                                                                                                                   
     • Capacity Grants: $240 Million  Alaska's Award: TBD                                                                       
     • Competitive Grants: $1.25 Billion  Alaska's Award:                                                                       
     TBD                                                                                                                        
                                                                                                                                
Mr. Lochner  detailed that the  competitive grants  were for                                                                    
anyone in the state or  nation to apply. He anticipated that                                                                    
various state agencies would apply  for the grant funding to                                                                    
engage in digital equity training.                                                                                              
                                                                                                                                
Co-Chair  Hoffman asked  if Mr.  Lochner  would be  covering                                                                    
other funds that had been  awarded directly and not going to                                                                    
the state  in order  to get  a better  picture of  the funds                                                                    
available for broadband construction.                                                                                           
                                                                                                                                
Mr. Lochner answered in the  affirmative. He relayed that he                                                                    
would  provide  a sum  total  number  of funding  and  would                                                                    
identify projects.  He noted  that he  would not  be listing                                                                    
the projects in his presentation.                                                                                               
                                                                                                                                
Co-Chair  Hoffman asked  Mr. Lochner  to provide  his office                                                                    
with the  information at a  later time for  dissemination to                                                                    
members. He  thought it was  important for the  committee to                                                                    
have  a   high-level  view  of   what  was   happening  with                                                                    
broadband,  and  not  just what  was  happening  with  state                                                                    
funding.                                                                                                                        
                                                                                                                                
Mr.  Lochner displayed  slide 7,  "Broadband Equity,  Access                                                                    
and Deployment                                                                                                                  
                                                                                                                                
     ALLOCATED $42 BILLION FOR ALL STATES AND TERRITORIES                                                                       
     • $100 Million Minimum Allocation per state                                                                                
     • High-Cost Allocation (10% of $42B) = High-Cost in                                                                        
     Alaska / High-Cost total for US                                                                                            
     • Remaining Funds = Unserved in Alaska / Unserved                                                                          
     total US                                                                                                                   
                                                                                                                                
     DISBURSEMENTS OF ALASKA'S ALLOCATION                                                                                       
     Grants will be based on percentage of locations that                                                                       
     are:                                                                                                                       
     • Unserved - less than 25Mbps/3Mbps                                                                                        
     • Underserved - less than 100Mbps/20Mbps and                                                                               
     • Unserved Community Anchor Institutions - less than                                                                       
     1Gbps/1Gbps                                                                                                                
                                                                                                                                
Co-Chair  Hoffman asked  if when  discussing  high costs  in                                                                    
Alaska,  Mr.  Lochner was  referring  to  the high  cost  of                                                                    
construction, the high cost of  operations, or the high cost                                                                    
of subscriptions.                                                                                                               
                                                                                                                                
Mr. Lochner  related that  the high-cost  allocation formula                                                                    
had not  been determined yet.  He thought the high  cost was                                                                    
for the  building and the service.  He was not privy  to how                                                                    
the   calculation   was   being  developed.   The   National                                                                    
Telecommunication and Information  Administration (NTIA) had                                                                    
selected  a  company  called  Cost  Quest  to  work  on  the                                                                    
formula,  and   the  office  had   been  working   with  the                                                                    
Congressional delegation  to ensure the proper  cost factors                                                                    
were accounted for in Alaska.                                                                                                   
                                                                                                                                
9:11:07 AM                                                                                                                    
                                                                                                                                
Senator  Bishop  mentioned   184  unserved  and  underserved                                                                    
communities and mentioned that the  previous year there were                                                                    
individuals testifying  about internet bills that  were $400                                                                    
to $900 dollars  per month during the  Covid-19 pandemic. He                                                                    
asked  if  there was  a  goal  to  drive  down the  cost  of                                                                    
household internet.                                                                                                             
                                                                                                                                
Mr. Locher  affirmed that affordability  was one of  the key                                                                    
functions of the program.                                                                                                       
                                                                                                                                
Mr. Lochner  continued to address  slide 7. He  relayed that                                                                    
disbursements  would go  first to  unserved locations  which                                                                    
had less than  25 megabits per second  (MBPS) download speed                                                                    
and less than 3 MBPS upload  speed. He noted that home usage                                                                    
generally had  more usage downloading  from the  internet as                                                                    
opposed  to uploading.  The  second  level of  disbursements                                                                    
would go  to under-served locations, which  reached 100 MBPS                                                                    
of download speed.  If there was leftover  funding, it would                                                                    
go to underserved anchor institutions.                                                                                          
                                                                                                                                
Mr.  Lochner referenced  a term  called  "donut holes,"  and                                                                    
mentioned the  Rabbit Creek  area as an  example of  an area                                                                    
that  was  unserved  within Anchorage.  The  area  would  be                                                                    
addressed   fourth  after   the   three  groups   previously                                                                    
discussed.                                                                                                                      
                                                                                                                                
Co-Chair Hoffman asked  if Mr. Lochner had a map  or list of                                                                    
communities in  the state that  fell within the  category of                                                                    
unserved.                                                                                                                       
                                                                                                                                
Mr.  Lochner  affirmed  that  he  had  a  list  of  unserved                                                                    
communities in a forthcoming slide.                                                                                             
                                                                                                                                
9:14:33 AM                                                                                                                    
                                                                                                                                
Mr. Lochner  spoke to slide  8, "NTIA Milestone Dates  & ABO                                                                    
Timeline," and  explained that the dark  grey arrows denoted                                                                    
benchmarks from  NTIA. The  first item  was the  awarding of                                                                    
the  grant. He  relayed that  after receiving  the grant  in                                                                    
November 2022, the broadband office  had 270 days to come up                                                                    
with  a five-year  action plan.  The plan  did not  describe                                                                    
what  would be  done with  the funding,  but rather  what it                                                                    
would take to build out all  of the state. He continued that                                                                    
the process was underway and there  was a goal to submit the                                                                    
plan  to  NTIA by  June  15,  prior  to NTIA  funding  being                                                                    
released on June 30.                                                                                                            
                                                                                                                                
Co-Chair Hoffman  asked what involvement the  advisory board                                                                    
had in developing the plan.                                                                                                     
                                                                                                                                
Mr. Lochner  shared that the  advisory boards   primary role                                                                    
would be  to review  the plan  before submission.  The board                                                                    
would have a larger in  the initial proposal that kicked off                                                                    
on June 30.                                                                                                                     
                                                                                                                                
Senator Kiehl asked  about the timeline for  mapping who was                                                                    
served and at what speed.                                                                                                       
                                                                                                                                
Mr.  Lochner  cited  that the  process  was  called  "fabric                                                                    
mapping," and had  been ongoing. The first  iteration of the                                                                    
fabric  mapping was  dropped by  the Federal  Communications                                                                    
Commission (FCC)  on June  30, 2022.  The telecommunications                                                                    
providers and the state had  an opportunity to challenge the                                                                    
results,  and  had done  so.  The  second iteration  of  the                                                                    
fabric mapping had  been released on December  30, and there                                                                    
had been a  significant outcry. He explained  that it looked                                                                    
like NTIA was going to  be making funding decisions using an                                                                    
FCC  map  that  had  a   little bit  of  a  disconnect.   He                                                                    
continued that  the FCC map was  a beta map and  would still                                                                    
be revised  over time. He had  heard that NTIA was  going to                                                                    
make a  decision based on  the map, which had  known issues.                                                                    
He cited  that the broadband  office continued to  work with                                                                    
both agencies  to ensure that all  the broadband serviceable                                                                    
locations  (houses and  small  businesses)  that were  valid                                                                    
were on the map to be included in the funding allocation.                                                                       
                                                                                                                                
9:18:44 AM                                                                                                                    
                                                                                                                                
Senator Kiehl thought  it would not make a  difference if an                                                                    
entire community was unserved. He  asked how much a delay of                                                                    
the correct map would affect the rest of the plan.                                                                              
                                                                                                                                
Mr.  Lochner relayed  that the  delay in  the map  would not                                                                    
affect the plan but would affect the funding.                                                                                   
                                                                                                                                
Co-Chair Hoffman asked Mr. Lochner to expand.                                                                                   
                                                                                                                                
Mr. Lochner discussed the allocation  based on percentage of                                                                    
unserved areas  or houses. He  asserted that the  office was                                                                    
working  closely  to  ensure   that  every  single  unserved                                                                    
broadband-serviceable location was recognized  by the FCC to                                                                    
fairly optimize the funding allocated on June 30.                                                                               
                                                                                                                                
Mr. Lochner  continued to address  slide 8. He  related that                                                                    
once the  allocation was  made, ABO had  180 days  to submit                                                                    
the  initial proposal,  which would  indicate how  the grant                                                                    
funds would  pass through to subgrantees  to build, operate,                                                                    
and maintain  the systems. He  continued that  the broadband                                                                    
office  was agnostic  to  the applicants  and  was not  just                                                                    
focused on telecommunications. He  asserted that anyone that                                                                    
could  show  longevity,  sustainability,  and  affordability                                                                    
into the future  to apply for the grants. He  noted that the                                                                    
office  was on  a  very aggressive  schedule  to submit  the                                                                    
proposal to NTIA on July 31, which was 149 days early.                                                                          
                                                                                                                                
Mr. Lochner  related that once  the plan was  approved, NTIA                                                                    
would release at  least 20 percent of the funds  so that the                                                                    
ABO  could  release  the  funds   to  the  subgrantees.  The                                                                    
subgrantees would  have to  be in  communities that  were 80                                                                    
percent unserved in total.  Additionally, the communities as                                                                    
a  whole would  need to  be at  150 percent  of the  poverty                                                                    
line. Once  the approval  was done,  the final  proposal for                                                                    
running  the grant  program would  start, and  would include                                                                    
the  process  for  selecting subgrantees.  After  the  final                                                                    
proposal was submitted,  NTIA would release the  rest of the                                                                    
funding. He  shared that  he was not  aware of  the timeline                                                                    
for the final proposal, but  estimated it would be early the                                                                    
following year.                                                                                                                 
                                                                                                                                
9:22:53 AM                                                                                                                    
                                                                                                                                
Mr. Lochner  looked at slide 9,  "Required Broadband Service                                                                    
Level for BEAD Funding                                                                                                          
                                                                                                                                
     Unserved:                                                                                                                  
     • 25 Mbps Download Bandwidth (Watching a video)                                                                            
     • 3 Mbps Upload Bandwidth (Posting a picture)                                                                              
     Underserved:                                                                                                               
     • 25 Mbps Download Bandwidth, but cannot reach 100                                                                         
     Mbps                                                                                                                       
    • 3 Mbps Upload Bandwidth, but cannot reach 20 Mbps                                                                         
     Served:                                                                                                                    
     • 100 Mbps Download Bandwidth                                                                                              
     • 20 Mbps Upload Bandwidth                                                                                                 
                                                                                                                                
Mr.  Lochner  addressed  slide 10,  "Evaluation  of  Current                                                                    
Status of Broadband," which showed  a map of Alaska that was                                                                    
based on  telecommunication providers rates  in communities.                                                                    
In every single case, the locations were on fiber systems.                                                                      
                                                                                                                                
Mr.  Lochner advanced  to slide  11, "Evaluation  of Current                                                                    
Status of  Broadband," which showed  the same map  of Alaska                                                                    
as the  previous slide, and  noted that the orange  lines on                                                                    
the map showed the fiber systems in the state.                                                                                  
                                                                                                                                
Co-Chair Hoffman  considered the  orange line going  to Nome                                                                    
and asked  about Quintillion, which  he did not think  was a                                                                    
provider.                                                                                                                       
                                                                                                                                
Mr.  Lochner realized  that Quintillion  was a  retailer and                                                                    
wholesaler.                                                                                                                     
                                                                                                                                
Mr.  Lochner  looked at  slide  12,   Evaluation of  Current                                                                    
Status of  Broadband," which showed  the same map  of Alaska                                                                    
as the previous slide with  the addition of light blue lines                                                                    
on  the map  that  showed microwave  systems, which  offered                                                                    
some broadband.  The systems  were robust  and did  not meet                                                                    
NTIAs    threshold  of   100/20,  so   the  locations   were                                                                    
considered unserved.                                                                                                            
                                                                                                                                
Co-Chair Stedman asked about the  four fiber optic lines and                                                                    
asked if  there were  any pigtails off  the lines  that were                                                                    
not  attached  so that  they  could  be run  into  Southeast                                                                    
Alaska.  He noted  that the  Southeast part  of the  map was                                                                    
hard  to  see.  He  commented  that  there  were  a  lot  of                                                                    
microwave  present   in  Southeast.  He  commented   on  the                                                                    
complexity of Prince of Wales Island.                                                                                           
                                                                                                                                
Co-Chair   Hoffman  agreed.   He  thought   a  map   of  the                                                                    
communities  that were  unserved  and  underserved would  be                                                                    
important for  the community. He  asked Mr. Lochner  for the                                                                    
information.                                                                                                                    
                                                                                                                                
Mr.  Lochner   did  not   have  a   list  included   in  the                                                                    
presentation, but  affirmed that  the list  was posted  on a                                                                    
website and he could send the information to the committee.                                                                     
                                                                                                                                
Co-Chair Stedman asked for the list in Excel.                                                                                   
                                                                                                                                
Mr. Lochner affirmed that the list was in Excel.                                                                                
                                                                                                                                
9:26:25 AM                                                                                                                    
                                                                                                                                
Mr. Lochner  showed slide 13, "Evaluation  of Current Status                                                                    
of Broadband,"  which showed the  same map of Alaska  as the                                                                    
previous  slide but  for blue  pins  that indicated  federal                                                                    
projects. The  projects were primarily through  NTIA through                                                                    
the Tribal  Broadband Connectivity Program, and  through the                                                                    
U.S.  Department of  Agricultures   Reconnect and  Community                                                                    
Connect programs.  The sum total  of projects  identified by                                                                    
the blue pins  was about $750 million.  He mentioned various                                                                    
projects in different parts of  the state. He thought it was                                                                    
good  to  see  the   programs  in  partnership  with  Native                                                                    
organizations as well as telecommunication providers.                                                                           
                                                                                                                                
Co-Chair Hoffman  asked if  the projects  in blue  were both                                                                    
unserved and underserved communities.                                                                                           
                                                                                                                                
Mr.  Lochner  answered  affirmatively  and  noted  that  the                                                                    
communities  would be  considered served  once the  projects                                                                    
were completed.                                                                                                                 
                                                                                                                                
Mr.  Lochner referenced  slide  14,  "Evaluation of  Current                                                                    
Status of  Broadband," which showed  the same map  of Alaska                                                                    
as the  previous slide,  with the  addition of  another blue                                                                    
line showing  the fiber  and microwave  that would  be added                                                                    
once the projects were complete.                                                                                                
                                                                                                                                
Co-Chair Hoffman asked  if Mr. Lochner could  provide a list                                                                    
of projects mentioned earlier,  including when the contracts                                                                    
would be completed.                                                                                                             
                                                                                                                                
Mr.  Lochner relayed  that  he  had access  to  the list  of                                                                    
programs  but  did  not  completion  data  from  the  Native                                                                    
organizations or telecommunications providers.                                                                                  
                                                                                                                                
Co-Chair   Hoffman  thought   it  was   important  to   have                                                                    
information about when the state would be connected.                                                                            
                                                                                                                                
Mr. Lochner  agreed that the  information was  important for                                                                    
the state.  He noted that each  of the programs had  a fixed                                                                    
timeline  that could  provide an  estimate  of a  completion                                                                    
date.                                                                                                                           
                                                                                                                                
Mr.  Lochner  turned to  slide  15,  "Evaluation of  Current                                                                    
Status of  Broadband," which showed  the same map  of Alaska                                                                    
as the previous slide, with unserved areas.                                                                                     
                                                                                                                                
9:29:56 AM                                                                                                                    
                                                                                                                                
Co-Chair   Olson  asked   about   the   status  of   working                                                                    
relationships  between  smaller   tribal  entities  and  big                                                                    
corporations such as GCI.                                                                                                       
                                                                                                                                
Mr. Lochner  could only  speak to the  grants that  would be                                                                    
coming  out of  the Broadband  Equity Access  and Deployment                                                                    
(BEAD) Program.                                                                                                                 
                                                                                                                                
Co-Chair Olson had been made  aware that there had been some                                                                    
attempt to  make it  so some smaller  entities did  not have                                                                    
the access to access the funds being discussed.                                                                                 
                                                                                                                                
Mr. Lochner  stated "that  is not  true." He  emphasized the                                                                    
importance of ensuring  that were not just  capital up front                                                                    
without  economics to  continue. He  had worked  with tribal                                                                    
broadband  connectivity   with  other   Native  organization                                                                    
programs. He  mentioned a  project in  the Interior  with an                                                                    
operational cost of -2400 percent  margin. He discussed cost                                                                    
negotiations and  small communities banding together  for an                                                                    
economy of scale.                                                                                                               
                                                                                                                                
Co-Chair Olson  thought what Mr. Lochner  described involved                                                                    
an  area   with  more  affluence   in  comparison   to  less                                                                    
advantaged areas such as in the Yukon-Kuskokwim area.                                                                           
                                                                                                                                
9:33:18 AM                                                                                                                    
                                                                                                                                
Co-Chair  Olson  asked  if Mr.  Lochner  was  familiar  with                                                                    
Alaska Tribal Spectrum.                                                                                                         
                                                                                                                                
Mr. Lochner answered yes.                                                                                                       
                                                                                                                                
Co-Chair Olson  understood that  the Alaska  Tribal Spectrum                                                                    
was  trying  to  access  some federal  funding  to  try  and                                                                    
provide smaller communities with internet systems.                                                                              
                                                                                                                                
Mr.  Lochner  relayed  that  the  office  encouraged  Alaska                                                                    
Tribal Spectrum  to submit  grant opportunities  within BEAD                                                                    
funding.  He relayed  that the  office  would encourage  all                                                                    
comers to submit a proposal.                                                                                                    
                                                                                                                                
Mr.  Lochner considered  slide  16,   Evaluation of  Current                                                                    
Status of  Broadband," which showed  the same map  of Alaska                                                                    
as  the previous  slide.  He discussed  the  charter of  the                                                                    
broadband office.                                                                                                               
                                                                                                                                
Mr.  Lochner   displayed  slide   17,  "Network   Ideas  for                                                                    
Underserved/Unserved Locations,"  which showed the  same map                                                                    
of Alaska as the previous slide.                                                                                                
                                                                                                                                
Co-Chair Hoffman asked how many  villages were listed on the                                                                    
map.                                                                                                                            
                                                                                                                                
Mr. Lochner  answered that there  were 196  villages listed,                                                                    
with 184 unserved and 12 underserved.                                                                                           
                                                                                                                                
Mr.  Lochne r  relayed that  part of  the notice  of funding                                                                    
opportunity  that was  received stated  that in  as much  as                                                                    
possible the  state had to  (in its grant  program) leverage                                                                    
the infrastructure that was already in place.                                                                                   
                                                                                                                                
Mr.  Lochner  highlighted  slide   18,  "Network  Ideas  for                                                                    
Underserved/Unserved Locations,"  which showed the  same map                                                                    
of  Alaska  as  the  previous slide  with  the  addition  of                                                                    
microwave and fiber infrastructure.                                                                                             
                                                                                                                                
9:35:38 AM                                                                                                                    
                                                                                                                                
Mr.  Lochner   looked  at  slide  19,   "Network  Ideas  for                                                                    
Underserved/Unserved Locations,"  which showed the  same map                                                                    
of Alaska  as the previous  slide with the addition  of pink                                                                    
marks denoting  ABO network ideas.  He did not want  to call                                                                    
it a   network design   but thought  the proposed  system to                                                                    
serve  all  the  unserved   and  underserved  locations  was                                                                    
reasonable.  The office  had posted  the map  and a  list of                                                                    
projects (a capital model) with  the ability for individuals                                                                    
to change inputs.                                                                                                               
                                                                                                                                
Co-Chair  Hoffman  mentioned  that  NTIA  grants  to  Native                                                                    
entities, and asked  if the grants were taken  off the list,                                                                    
if there  was map  illustrating communities still  not being                                                                    
provided service.                                                                                                               
                                                                                                                                
Mr.  Locher affirmed  that slide  19  was the  map with  the                                                                    
information  being discussed.  The communities  were not  on                                                                    
the map  after being awarded  from NTIA. He pointed  out the                                                                    
villages of  the North Slope  had been removed due  to being                                                                    
served.  Additionally, Point  Lay,  Kaktovik, and  Anaktuvuk                                                                    
Pass had also been removed.                                                                                                     
                                                                                                                                
Co-Chair Hoffman asked if there  were 196 communities on the                                                                    
map.                                                                                                                            
                                                                                                                                
Mr. Lochner answered affirmatively.                                                                                             
                                                                                                                                
Co-Chair Stedman  asked for an  idea of how much  faster the                                                                    
communities would  be than  if they  went with  Starlink. He                                                                    
asked for a comparison.                                                                                                         
                                                                                                                                
Mr.  Lochner relayed  that an  upcoming slide  would address                                                                    
the  topic.  He  shared  that one  of  the  primary  grading                                                                    
categories  for the  grants was  affordability. The  grading                                                                    
category  defined   affordable   as one  gigabyte  over  one                                                                    
gigabyte,  and NTIA  had indicated  affordable one  gigabyte                                                                    
over  one  gigabyte  service  was  no  more  than  $150.  He                                                                    
addressed Starlink, which was  a solid service in Southeast.                                                                    
He thought there were fewer satellites in Alaska.                                                                               
                                                                                                                                
Co-Chair  Hoffman   mentioned  that  satellites   went  over                                                                    
Southeast Alaska much more frequently than over Barrow.                                                                         
                                                                                                                                
Mr. Lochner  clarified that  he had  meant there  were fewer                                                                    
Starlink satellites in the Interior.                                                                                            
                                                                                                                                
9:39:42 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman asked Mr. Lochner  to explain why Southeast                                                                    
received   microwave   services   while  other   areas   had                                                                    
intermittent Starlink  service and  were looking  forward to                                                                    
fiber, which was most likely much faster.                                                                                       
                                                                                                                                
Mr.  Lochner  relayed  that the  primary  band  of  Starlink                                                                    
satellites went up to the 60th parallel.                                                                                        
                                                                                                                                
Co-Chair  Hoffman  asked which  community  was  at the  60th                                                                    
parallel.                                                                                                                       
                                                                                                                                
Mr. Locher  specified that Adak  was well covered,  and some                                                                    
of  the   southern  parts  of  Southeast.   The  reason  the                                                                    
remainder  of Southeast  was served  well, there  was enough                                                                    
view of the satellites.                                                                                                         
                                                                                                                                
Co-Chair  Hoffman asked  if it  was  fair to  say that  more                                                                    
satellites were planned for communities  farther North to be                                                                    
added by Starlink.                                                                                                              
                                                                                                                                
Mr. Lochner relayed that he  had met with Starlink two weeks                                                                    
previously,  and had  learned the  company planned  for more                                                                    
 group 2  satellites over the Interior and northern Alaska.                                                                     
                                                                                                                                
Co-Chair  Hoffman   asked  about   the  timeframe   for  the                                                                    
additional Starlink satellites.                                                                                                 
                                                                                                                                
Mr. Lochner  had not  learned about  the timeline  but would                                                                    
endeavor to learn the information.                                                                                              
                                                                                                                                
Co-Chair Hoffman  asked Mr. Lochner to  provide a comparison                                                                    
between  microwave and  fiber  services, understanding  that                                                                    
Starlink was microwave.                                                                                                         
                                                                                                                                
Mr.  Lochner  used the  analogy  that  Starlink was  a  fast                                                                    
helicopter  with  a  limited capacity.  He  described  space                                                                    
lasers  which connected  the satellites  to make  the system                                                                    
 fiber-like.  He  discussed the  lower orbit of  3,000 miles                                                                    
high of  satellites versus geo-synchronous  satellite orbits                                                                    
about  34,000 miles  up. At  lower speeds  satellites had  a                                                                    
fiber-like  performance if  they  were  numerous enough  for                                                                    
continuous service. Fiber was more  like a bullet train with                                                                    
unlimited length. Fiber had low  latency and could grow on a                                                                    
single fiber.  He summarized  that fiber  had an  ability to                                                                    
grow in  a way  that satellite  and microwave  currently did                                                                    
not.  He  offered  the caveat  that  ten  years  previously,                                                                    
satellites were slower.                                                                                                         
                                                                                                                                
9:44:00 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman  used  the   analogy  of  a  snow  machine                                                                    
compared to  a dogsled, and  then compared  to a car  on the                                                                    
road  system.  He  thought  many   people  saw  Starlink  as                                                                    
something   much  improved   over   current  services,   but                                                                    
eventually  when fiber  was  available it  would  be a  much                                                                    
improved option  for many people that  wanted faster speeds,                                                                    
particularly in medical and educational fields.                                                                                 
                                                                                                                                
Mr. Locher  thought Co-Chair Hoffman  used a  great analogy.                                                                    
He  thought  Starlink  was  a  good  product.  He  mentioned                                                                    
satellitemap.space,  which  showed  the  position  of  every                                                                    
Starlink and Oneweb satellite over Alaska in real time.                                                                         
                                                                                                                                
Mr. Lochner  addressed slide  20, "BEAD  Next Steps    Five-                                                                    
Year Action Plan                                                                                                                
                                                                                                                                
     Work with Communities, Tribes, Village & Regional                                                                          
     Corporations, AFN, AML, Industry, and others to                                                                            
     develop and submit a Five-Year Action Plan.                                                                                
                                                                                                                                
     Outreach:                                                                                                                  
     • Digital Equity Inclusion and External Engagement                                                                         
     Process                                                                                                                    
     • Alignment with Other Statewide Social / Economic /                                                                       
     Infrastructure Plans                                                                                                       
                                                                                                                                
     Network:                                                                                                                   
     • Broadband Service Needs                                                                                                  
     • Asset Inventory                                                                                                          
     • Deployment Barriers & Obstacle Identification                                                                            
     • Comprehensive High-Speed Internet Plan                                                                                   
                                                                                                                                
     Logistical:                                                                                                                
     • Outline of Broadband Office, Employees, Consultants                                                                      
     & Contractors, Program Work, and Anticipated Technical                                                                     
     Assistance & Capacity Needs                                                                                                
     • Broadband Funding Identification (Federal, State,                                                                        
     Local & Tribal Providers) and Broadband Affordability                                                                      
     Data                                                                                                                       
                                                                                                                                
Mr.   Lochner  explained   that   the   notice  of   funding                                                                    
opportunity   had  required   13   items,   which  ABO   had                                                                    
categorized and combined into 8  items to reduce repetition.                                                                    
He  referenced  boxes with  a  green  mark that  showed  the                                                                    
completion  progress   for  each  category.   He  referenced                                                                    
increasing   outreach  and   ensuring  tribal   consultation                                                                    
regarding digital  equity for the five-year  action plan. He                                                                    
noted  that the  five-year action  plan was  based upon  the                                                                    
digital equity  outcomes. He commented on  the importance of                                                                    
digital equity in the BEAD exercise.                                                                                            
                                                                                                                                
9:47:06 AM                                                                                                                    
                                                                                                                                
Senator Bishop  asked if  there were  enough people  to meet                                                                    
the deadlines.                                                                                                                  
                                                                                                                                
Mr. Lochner  answered "yes." and  detailed that  in addition                                                                    
to sufficient staff, ABO had engaged consultants.                                                                               
                                                                                                                                
Senator Bishop acknowledged a potential  eight years of work                                                                    
for the five years of  funding due to supply constraints and                                                                    
workforce  issues,  which  could   slow  projects  down.  He                                                                    
mentioned that federal highways had  a true-up each year, by                                                                    
which funding  that was  not allocated  by other  states was                                                                    
put  in  a  pot   and  redistributed  annually.  Alaska  had                                                                    
historically been at the forefront  of being able to capture                                                                    
unspent  federal highway  dollars. He  pondered that  such a                                                                    
redistribution  could   happen  if  other  states   did  not                                                                    
allocate all of their funding.                                                                                                  
                                                                                                                                
Co-Chair Hoffman mentioned the  five-year plan, and asked if                                                                    
the state would be providing  updates or reports on progress                                                                    
on an  annual or  semi-annual basis.  He thoguht  five years                                                                    
could pass quickly.                                                                                                             
                                                                                                                                
Mr.   Lochner   relayed   that   there   was   a   reporting                                                                    
functionality to the NTIA that was very robust.                                                                                 
                                                                                                                                
Co-Chair  Hoffman   asked  about   the  timeframe   for  the                                                                    
reporting.                                                                                                                      
                                                                                                                                
Mr. Lochner said "semi-annual."                                                                                                 
                                                                                                                                
Co-Chair Hoffman asked for the dates of the reports.                                                                            
                                                                                                                                
Mr. Lochner thought  the dates were based on  the start date                                                                    
and would be every six months.                                                                                                  
                                                                                                                                
Mr. Lochner  commented on  the map on  slide 19.  He relayed                                                                    
that  there  were  several  applications  out  to  different                                                                    
agencies.  He mentioned  the  Tribal Broadband  Connectivity                                                                    
Program (phase 3), the Middle  Mile Infrastructure Fund, and                                                                    
the  United  States   Department  of  Agriculture  Reconnect                                                                    
(round  4 and  round 5).  He  thought there  may be  several                                                                    
communities  on  the map  that  would  become connected.  He                                                                    
cited the price  of $1.88 billion for the idea  ABO had come                                                                    
up with.                                                                                                                        
                                                                                                                                
9:50:43 AM                                                                                                                    
                                                                                                                                
Mr. Lochner advanced  to slide 21, "BEAD Next  Steps - Grant                                                                    
Criteria - Initial Proposal                                                                                                     
                                                                                                                                
     Primary Criteria: Fixed 75% of Scoring from Notice of                                                                      
     Funding Opportunity:                                                                                                       
     • Efficient Use of BEAD Funding  How big is the                                                                            
     match?                                                                                                                     
     • Affordability     1Gbps/1Gbps affordable consumer                                                                        
     product                                                                                                                    
     • Fair Labor Practices  Can and will Subgrantees                                                                           
     comply with Federal labor and employment laws?                                                                             
                                                                                                                                
     Secondary Criteria: Will the work be completed by a                                                                        
     set date?                                                                                                                  
                                                                                                                                
     All Other Criteria:                                                                                                        
     • Network Design                                                                                                           
     • Operating Costs       Sustainable, Affordable and                                                                        
     Scalable                                                                                                                   
     • Native Bidders                                                                                                           
     • Carrier Neutral and Fair Pricing Practices                                                                               
                                                                                                                                
Mr. Lochner  discussed the  work completion  criteria, which                                                                    
was  required  but  not specified.  He  explained  that  the                                                                    
office  would  get  advice  from   the  advisory  board.  He                                                                    
reiterated Senator  Bishop's point  that projects  in Alaska                                                                    
could experience  challenges with supply chains  or weather.                                                                    
He did not anticipate the  timing being a large criteria. He                                                                    
explained that there were scoring items and gating items.                                                                       
                                                                                                                                
Mr. Lochner showed slide 22, "Contact Information                                                                               
                                                                                                                                
     Thomas Lochner                                                                                                             
     Director                                                                                                                   
     thomas.lochner@alaska.gov                                                                                                  
     (907) 269-4048                                                                                                             
                                                                                                                                
     Lisa Von Bargen                                                                                                            
     Sr. Project Manager                                                                                                        
     lisa.vonbargen@alaska.gov                                                                                                  
     (907) 660-7877                                                                                                             
                                                                                                                                
     Melissa M. Kookesh                                                                                                         
     Tribal Liaison                                                                                                             
     melissa.kookesh@alaska.gov                                                                                                 
     (907) 465-6466                                                                                                             
                                                                                                                                
     Anessa Feero                                                                                                               
     Administrative Specialist                                                                                                  
     anessa.feero@alaska.gov                                                                                                    
     (907) 269-8159                                                                                                             
                                                                                                                                
9:53:09 AM                                                                                                                    
                                                                                                                                
Senator  Bishop asked  Mr. Locher  to  repeat his  statement                                                                    
related to concurrence.                                                                                                         
                                                                                                                                
Mr. Lochner relayed that it  was important to ensure that an                                                                    
affected village believed in and supported projects.                                                                            
                                                                                                                                
Co-Chair  Hoffman mentioned  the  Broadband Advisory  Board,                                                                    
which he thought  seemed large. He asked if the  board had a                                                                    
meeting schedule for the following year.                                                                                        
                                                                                                                                
Mr. Lochner  relayed that  the organizational  meeting would                                                                    
                                 st                                                                                             
take place  the week of March  21.  The board  was currently                                                                    
working to establish a meeting time.                                                                                            
                                                                                                                                
Co-Chair  Hoffman  asked  if a  meeting  location  had  been                                                                    
identified.                                                                                                                     
                                                                                                                                
Mr. Lochner thought the meeting would be held virtually.                                                                        
                                                                                                                                
Co-Chair Hoffman commented on  the complexity of the subject                                                                    
matter.  He  thought  the  goal was  to  get  every  Alaskan                                                                    
connected with  the desired service. He  mentioned the issue                                                                    
brought  up  by  Co-Chair  Olson and  used  the  example  of                                                                    
building a car and then having  to pay for gas. He commented                                                                    
on  the broad  spectrum of  users and  the many  reasons the                                                                    
state   had  unserved   and   underserved  communities.   He                                                                    
commented high energy costs in  the communities and pondered                                                                    
how the communities would afford ongoing costs.                                                                                 
                                                                                                                                
Mr. Lochner cited  that there were two ways; as  part of its                                                                    
evaluation,  ABO would  have  a   target affordable  number                                                                     
that  would  be  between  $75 and  $150.  He  mentioned  the                                                                    
Affordable  Connectivity   Program,  which  offered   a  $75                                                                    
subsidy  for  every  internet  household  depending  on  the                                                                    
bandwidth/speed. He discussed criteria for the program.                                                                         
                                                                                                                                
Co-Chair Hoffman  thought the  affordability was  a critical                                                                    
component,  and  hoped that  areas  of  the state  with  low                                                                    
population density would be connected.                                                                                          
                                                                                                                                
9:57:32 AM                                                                                                                    
                                                                                                                                
Co-Chair  Olson  considered  the   board  of  directors  and                                                                    
observed that  there was only  one name  of a person  not on                                                                    
the road system.  He asked about the length of  the term for                                                                    
board members.                                                                                                                  
                                                                                                                                
Mr.  Lochner  relayed that  members  were  appointed by  the                                                                    
governors  Office of Boards and  Commissions and would serve                                                                    
a three-year term.                                                                                                              
                                                                                                                                
Mr.  Lochner   relayed  that  the   Affordable  Connectivity                                                                    
Program   was  available   currently,  and   ABO  encouraged                                                                    
everyone to take advantage of the program.                                                                                      
                                                                                                                                
Co-Chair Hoffman  thought the committee would  be interested                                                                    
in an update from ABO on at least an annual basis.                                                                              
                                                                                                                                
Co-Chair  Hoffman discussed  the  agenda  for the  following                                                                    
Monday. He noted that the  three committee co-chairs had met                                                                    
the  previous  day,  and  noted  that  there  was  a  marked                                                                    
increase  in   Covid-19  in   the  building.   Starting  the                                                                    
following  week, the  committee members  and staff  would be                                                                    
required to test  weekly. He commented on  the importance of                                                                    
the committee to the legislative process.                                                                                       
                                                                                                                                
Co-Chair  Stedman noted  that the  co-chairs would  like the                                                                    
tests  to  be completed  by  9  o'clock  in the  morning  on                                                                    
Mondays.                                                                                                                        
                                                                                                                                
Co-Chair Hoffman relayed that there  had been concern by the                                                                    
support staff and members' staff,  and thought the increased                                                                    
testing was an important step for the committee.                                                                                
                                                                                                                                
ADJOURNMENT                                                                                                                   
10:01:22 AM                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:01 a.m.                                                                                         

Document Name Date/Time Subjects
022423 AK Broadband Office Presentation S FIN 02-24-23.pdf SFIN 2/24/2023 9:00:00 AM
022423 DCCED-ABO Response to 02-24-23 S FIN 03-16-23.pdf SFIN 2/24/2023 9:00:00 AM