Utilizing $813 million to Connect Tennessee
Episode Description
Paige Shapiro, Tennessee’s federal program officer, gives our listeners a BEAD status update, including Tennessee’s required filings and an estimated timeline for the disbursement of the state’s $813 million allocation.
Transcript
Transcripts have been lightly edited for clarity and readability.
Intro: The following program is brought to you by the Tennessee Broadband Association. Lead Tennessee Radio, conversations with the leaders moving our state forward. We look at the issues shaping Tennessee’s future: rural development, public policy, broadband, healthcare, and other topics impacting our communities.
Carrie Huckeby: Hello everyone. I’m Carrie Huckeby with the Tennessee Broadband Association. Paige Shapiro is here this morning talking to me on this episode of Lead Tennessee Radio. Paige is NTIA’s federal program officer for the state of Tennessee, and she sat down with me about a year ago, if you can believe it, Paige, a year.
Paige Shapiro: That’s impossible to believe.
Carrie Huckeby: I know. Where did it go? To talk about BEAD and digital equity. There’s been a lot of activity in the last year, so I wanted her to come back because I know a lot has happened. $813 million, to be exact, announced a few months ago is Tennessee’s allocation. So there’s many wheels turning in the NTIA and at the state broadband office. So welcome, Paige. Like you said, hard to believe a year has gone by.
Paige Shapiro: Yes. Thank you so much. I’m excited to be here. And excited that you all had me back.
Carrie Huckeby: Well, of course, we talked last November, and you were fairly new to NTIA. So what’s the last year look like for you and your role? Tell us some of the highlights, the successes and even some of the challenges.
Paige Shapiro: Yes. So it has been a year of learning and meeting new people. I’ve really enjoyed my time at NTIA. You know, completing the five year action plan was a really big highlight, working with the state broadband office to get that finished and working with all of you all to write the content for that. We also partnered, so the state broadband office, partnered with the University of Tennessee’s Public Service Institute, and they came beside us to help write our digital opportunity plan and our initial proposal. And that partnership has been really fun. And then, probably my favorite part about this job is I’ve done several speaking engagements with industry groups, like the Tennessee Broadband Association. And I’ve been invited to do tours and listening sessions to just learn from those who have been in the industry a lot longer than I have. And that’s been a really helpful and also enjoyable experience. You know, just there are so many great people that work in this industry in Tennessee. As far as challenges, just like with any governmental entity, you know, the red tape can be challenging, but to work with such a wonderful group of people that can help you get through and really collaborate and not throw up their hands and say, “Oh, this is just so difficult.” But really being able to come alongside in partnership to find solutions has – it’s been difficult, but it’s been really interesting work.
Carrie Huckeby: Well, it’s a great industry to be in, so I can imagine just having a year of networking with everyone and learning has probably been a great part of the job. And, as you said, we did really appreciate you coming to the TNBA and doing some breakout sessions and some panels because we always learn from you, Paige.
Paige Shapiro: Good. That’s what I want to hear.
Carrie Huckeby: Okay, well, the $813 million allocation for Tennessee is a huge opportunity, of course. And NTIA isn’t just saying, “Here’s the money. Do with it what you will and build a network.” There’s a checklist, and it requires in the beginning stages that you meet with the communities. And I’m sure UT was very helpful in that part. And meeting with communities and stakeholders, talking to marginalized communities. And as you said, developing that five year plan and those initial proposals. NTIA has some high bar objectives in addition to reaching the unserved and underserved areas. Tell us a little bit about why NTIA felt that these other items were important to include, you know, other things besides just get out there and build that network?
Paige Shapiro: Absolutely. So it’s always important to start with the statute. So we received our funding through the bipartisan infrastructure law. And this is truly a historic amount of funding. NTIA wanted to be sure that we were great stewards of those taxpayer dollars, and that we spent it in the right ways. So of course, like you mentioned, we wanted to be sure that we engaged historically left out communities. And we want to be sure that we heard from industry and those with internet service that wasn’t serving their needs and those that didn’t have it at all, that we are actually solving the problem in ways that will last us for literally a generation. So we talk about this as once in a generation funding. And we really want this infrastructure investment to carry us through, you know, this generation. And so we’re really focusing on, you know, making sure that our networks are resilient and making sure that, you know, we are going to have good paying jobs that come out of this funding in the communities where we’re building the infrastructure, where it doesn’t currently exist. So, you know, it’s so much more than a network. It really is making sure that people have access to the infrastructure they need to thrive, making sure that people have access to jobs that can help support their families, making sure that our industry can sustain the investment long term. So that is the purpose for having such a high bar, is we really want to be sure that at the end of this, we can step back and say, “We did it.”
Carrie Huckeby: Yes, it’s all about connectivity. We want everyone to be connected. And part of that challenge, I think, is digital equity and affordability. And we have talked about that quite a bit. It’s an important piece for the adoption to ensure that as many as possible are connected. The ACP program is managed by the FCC, and funds were appropriated so that there was a $30 credit given, I think, to consumers that qualify. And I know our broadband providers have really pushed that over the last few years to get that out there and educate their consumers. NTIA is requiring providers to participate in an ACP, but we all know the rumors, and we all know the talk that the program may not be funded next year, and that may go away. If the fund does go away, and of course, there’s also rumors that it’ll be covered by something else, and those appropriations will come to keep that program going. But if it were to go away, what happens to NTIA’s requirement that providers have a low cost option? You know, is the ideal that that $30 is the low cost rate or, you know, will you be able to determine what that low cost rate is per company or region or something like that? Talk about that just a little bit.
Paige Shapiro: Yes. So the low cost service option is a requirement of the bipartisan infrastructure law. So even if the Affordable Connectivity Program goes away, which we are very confident that our colleagues at the Federal Communications Commission are working to ensure the integrity of that program. So I want to be sure that I say that. But if the ACP did go away and wasn’t refunded, providers would still be required to offer that low cost service option per the law. That said, the state broadband office in their initial proposal is putting together what Tennessee’s low cost service option will look like. Tennessee, in their initial proposal, is also creating a contingency plan that will help providers understand that if ACP does go away, here is the next step in the process of what providing that low cost option will look like. So if ACP goes away, it likely will not look the same. But I will say, number one, Tennessee has not yet submitted that initial proposal with that suggestion to NTIA. So we have not yet reviewed it, and it is not approved. And then also no plan is firm and unchanging and approved until it’s approved. So there’s quite the process on the NTIA side. And our assistant secretary, Secretary Davidson, is reviewing every single plan, and the low cost option is one of the many things that he’s making sure makes sense for not only industry, but the citizens of our state.
Carrie Huckeby: Well, as we said in the introduction, there are a lot of wheels turning. So and a lot of pieces to this huge puzzle. So, I know that there’s a lot of things being figured out and considered. In the checklist probably gets longer instead of shorter, right?
Paige Shapiro: Yes, absolutely. And I just want to flag for you all that your state broadband office is incredible and is doing a wonderful job advocating what is best for you all as the industry, as well as what it means to be a resident in Tennessee and making sure that this funding is accessible and sustainable. So when you get the opportunity, you should definitely thank Taylre Beaty and her team because they’re doing a really good job trying to make this work for everyone.
Carrie Huckeby: 100% agree. They do a great job there, and we’re very fortunate to have Taylre and her team. They’ve been great to work with, for sure. So the question I get asked a lot from our associate members and platinum members, is when can we expect this to happen? What’s a realistic date to see funding awarded and projects started? Louisiana just announced the great news that their BEAD plan was approved by NTIA. That’s great news for them. They’ve done a lot of work. So what’s the next step for Louisiana? And when these plans are approved, what kind of timeline is the state looking at to actually submit start submitting applications or receive funding?
Paige Shapiro: Yes. So I am not Louisiana’s FPO, as you know.
Carrie Huckeby: True, true.
Paige Shapiro: But no, it’s helpful because I did want to highlight that every state is a bit on its own trajectory and its own timeline.
Carrie Huckeby: Okay.
Paige Shapiro: But if you look at Louisiana, Tennessee will follow a very similar path. So right now, Tennessee has submitted its volume one, which really focuses on here is how we are going to run the state challenge process. And as a reminder, I know that you all know this, and I’ve said it a million times in the last year, but our state challenge process really helps the state finalize which broadband serviceable locations are eligible to receive BEAD funding. So the state challenge process is incredibly important, and I hope that you all are planning to participate in that. So all of that said, so right now Tennessee’s volume one is under review with NTIA. After that volume one is approved, Tennessee will get ready to run the state challenge process. And so you’re going to see based on your timeline, it will start somewhere around late January to mid February, somewhere in that window. And it will run for 75 days. So on December 20th, the state broadband office is submitting their initial proposal, volume two.
Paige Shapiro: What the volume two communicates is how the state of Tennessee will run the BEAD subgrantee process. And so while Tennessee is getting its state challenge process ready and running that state challenge process, NTIA will be reviewing our volume two. After the volume two is approved, the state will have one year to run its subgrantee process, award subgrantees, do everything that they need to do to complete their final proposal. The final proposal will be submitted to NTIA for review, and then money goes out and projects can start. So we’re talking about, you know, shovels in the ground. The exact timeline of what that looks like, I know that what you asked me for at the beginning was a date, and that’s just really difficult to determine, because it really depends on, you know, how quickly the state can turn around NTIA’s feedback and how quickly NTIA can get through review. So there’s a lot of things at play when you’re funding 56 states, but I will say that if you look, the earliest that we’re going to be shovels in the ground is 2025 at the very, very earliest. When in 2025 is hard to say.
Carrie Huckeby: That’s completely understandable. I know a lot of people have said that it would look, you know, it would be 2025 to 2026, depending on when those reports and things were approved. So you know, I think that 2025 mark is what is in everyone’s head, sometime that year. So that’s good. It’s, you know, it’s a goal and a target, for sure.
Paige Shapiro: Yes. And I will say that again, your state broadband office is trying to get it done as quickly as possible. They want to ensure that every Tennessean is connected as quickly as possible. They know the urgency of the issue, and so they’re doing everything they can to collaborate and get feedback, but also move through the process.
Carrie Huckeby: Well, as you said earlier, too, it’s an historical infrastructure bill and appropriation, the funding. You certainly want, the urgency is there, but you certainly want to do it right.
Paige Shapiro: Exactly.
Carrie Huckeby: You can definitely respect the time that it takes to pull all those pieces together. And speaking of time, so when, let’s say we’re looking at 2025 and people are putting shovels in the ground or our providers are doing that. When the project starts, there’s a requirement to complete within four years. And since there are concerns, you know, we’ve had a lot of conversations about workforce, supply chain, permitting, environmental studies, just Mother Nature on our own. How flexible do you see NTIA being with deadlines or delay requests? Is that something that you’re, you know, looking into the future and know that’s going to be something you’re going to be challenged with?
Paige Shapiro: Yes. So we absolutely understand that these challenges that we have identified, and probably some challenges that we haven’t yet identified, will absolutely present themselves. And NTIA has been incredibly proactive and trying to head these off as much as we can. So, you know, there’s been a lot of work with industry, nonprofits, you know, experts in the field to help us make sure that we’re doing everything we can to prevent these delays from happening. That said, there are 56 states and territories who are trying to do very similar projects at one time. And so when these different delays occur, and they could look very different in states, right? So in some states the construction window is very small of when you can actually construct just because again of the weather. So, you know, they may experience a different delay than Tennessee, for example. And so NTIA, I like to say that NTIA is reasonable. We are reasonable people. And so I think that as those present themselves in the future years, you know, I wish I had a crystal ball. I wish I could tell you exactly what was going to happen. But I feel confident that NTIA will work with states to make sure that we ultimately meet our goal of internet for all.
Carrie Huckeby: That makes sense. It’s certainly will be different putting up a network in North Dakota than it will be in Tennessee.
Paige Shapiro: Right.
Carrie Huckeby: And also workforce wise, you know, where the availability is. So I can certainly see having to look at every one of those 56 territories differently. Recently, I saw the announcement that NTIA made some changes to the letter of credit requirement. I know in the beginning there were lots of questions about that, and maybe some concerns. Was that change made due to the feedback from the states or other reasons? And are there any other items that NTIA is evaluating that could change before, you know the final decisions are done?
Paige Shapiro: Great question. So as you all know, the letter of credit was in our notice of public funding, and we knew from the beginning that there may be additional flexibility that was needed when we put that in there. So the purpose of the letter of credit was really to ensure that those states and territories could evaluate whether BEAD applicants had the financial capacity to deliver the network. And that is required by the statute, by the way. So this is not something that NTIA layered. This is in the bipartisan infrastructure law.
Carrie Huckeby: Okay.
Paige Shapiro: Well, we recognized immediately that some prospective subgrantees may be able to demonstrate their capabilities using methods other than the letter of credit. And so we put a waiver opportunity in place. However, we heard concerns from stakeholders everywhere that the letter of credit would maybe have an adverse effect on small and medium internet service providers. And in addition, some smaller women-owned and minority-owned businesses didn’t necessarily have the relationships that they needed with the qualified financial institutions. So instead of allowing everyone to submit the one off waiver process, we created a conditional waiver process that gave more structure to the other ways that subgrantees could meet the letter of credit requirements.
Paige Shapiro: So we knew from the beginning, when we wrote the NOFO that things like this were going to happen. We listened to industry and business owners, and we changed what we could. And we gave the flexibility that we could to still be in compliance with the law. And this just happened to be something where we had the ability to do that. Right now, I do not know if there are other things, like letter of credit, that are being considered, but I do know that NTIA continues to solicit and receive feedback from our stakeholders. So if there is a risk that you all see or something’s really not working for you, then we encourage you to tell NTIA, so we can be flexible within, you know, our means. We can’t just go rewrite the bipartisan infrastructure law, but we can do things like what we did with letter of credit.
Carrie Huckeby: Yes. And I think from the beginning that it’s been good to NTIA to open up, and the broadband offices, to open up the conversations so that we can give feedback about the concerns, and that in some cases, there can be a workaround or another solution like the letter of credit. And in some instances there may not be. From the beginning, we’ve understood that one size does not fit all. And that’s why you as the FPO works with the state of Tennessee to represent our interests versus putting all 56 territories in the same basket. So I think that’s been a good piece of this. Is the internet for all website the best way to stay up to date on all that’s going on, Paige, if there is a good way to keep up with all the wheels turning right now?
Paige Shapiro: So the internet for all website is a wonderful resource. Highly encourage you all to look there. I would also say to make sure that you’re signed up for the broadband office’s newsletter. Right now, they’re putting out a lot of great content as it relates to their CPF programs. But soon we’re really going to be turning toward the BEAD program. So I would absolutely keep up with Taylre and her team that way, if you’re not already. And then the last resource I would point you to is the Broadband USA website. Where the internet for all is really focused on the consumer, Broadband USA has a lot of technical assistance for broadband providers. And there’s actually a great technical assistance hub on the Broadband USA website, so you can access that for your more specific questions and needs.
Carrie Huckeby: Great. I will add those to our TNBA email newsletters so that our members know what those resources are and where to go to find answers to their questions. Is there anything else, Paige, that’s important you want to add that maybe we didn’t cover or talk about?
Paige Shapiro: No, I don’t think so. Maybe the only thing I would add is I continue to be available as a resource for your members. And if they have questions, they can always reach out to you or contact me directly. I really want to be someone who can provide answers. I’m not going to say quick answers because sometimes that is not an option. But if you have questions, I am happy to advocate to try to get you faster and accurate answers for questions. So just continue to use me as a resource as well.
Carrie Huckeby: We will, and we appreciate you being available, Paige, for those emails and phone calls. And I know you’ll agree, won’t you, to come back in a year?
Paige Shapiro: Oh please. I would love to come back.
Carrie Huckeby: All right. Fantastic. My guest has been Paige Shapiro, Tennessee’s federal program officer with the US Department of Commerce. You’ve been listening to Lead Tennessee Radio, produced by the Tennessee Broadband Association, cooperative and independent companies connecting our state’s rural communities and beyond with world class broadband.