1. Federal Stimulus Funding, Broadband and America’s Libraries Hosted by The American Library Association Washington Office The Bill & Melinda Gates Foundation

2. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries The ARRA – an Overview

3. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries International Speed and Price Comparison 3

4. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries United States Broadband Subscribership: 2002-2008 4

5. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries BB Subscriber Growth: US/Europe 5

6. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries Foreign Government Investments in Broadband Japan announced e-Japan in 2000, u-Japan in 2006, focused on fiber deployment. Sweden spent $800M to build municipal broadband, now investing more in fiber. 2009: Australia spending AUS$43B (US$30B) to build a nationwide fiber to the home network; Greece announces $2.7B plan to build fiber connections to 2 M homes (open access) 6

7. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries Broadband Funding in the American Recovery and Reinvestment Act (ARRA) $7.2 Billion NTIA RUS Broadband Technology Opportunities Program (BTOP) Dept. of Commerce $4.7 B Distance Learning, Telemedicine and Broadband Program [?] Dept. of Agriculture $2.5 B 7

8. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries 4 Pots of BTOP Funding $ 200 Million (minimum) $ 250 Million (minimum) $ 350 Million (maximum) $ ~3.75 Billion Expanding public computer center capacity Stimulate broadband demand and usage Broadband Mapping Broadband Deployment Grants 8 NTIA may use about $150 Million for Administrative Expenses and Audits

9. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries Five BTOP Purposes (1) provide access to broadband service to consumers residing in unserved areas of the United States; (2) provide improved access to broadband service to consumers residing in underserved areas of the United States; (4) improve access to, and use of, broadband service by public safety agencies; (5) stimulate the demand for broadband, economic growth, and job creation. 9

10. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries Five BTOP Purposes (cont’d) (3) provide broadband education, awareness, training, access, equipment, and support to— (A) schools, libraries, medical and healthcare providers, community colleges and other institutions of higher education, and other community support organizations and entities to facilitate greater use of broadband service by or through these organizations; (B) organizations and agencies that...[service] low- income, unemployed, aged, and otherwise vulnerable populations; and (C) job-creating strategic facilities located within a State-designated economic zone... 10

11. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries Notes about Purpose #3: Promotes both deployment and use; Is not limited to unserved/underserved areas (in other words, urban and suburban libraries are eligible); Can include “equipment” (Computers? Routers? Inside wire?) Can include “education” and “training” 11

12. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries Statutory BTOP Grant Rules (selected) All awards must be made before Sept. 30, 2010. 20% match using non-federal funds required (unless waived for “financial need”); Must be “substantially complete” within 2 years; (no funding for operating expenses?) NTIA shall “consider” whether applications increase affordability, serve greatest number of people with greatest speed, and improve health care; Must comply with non-discrimination and network interconnection. 12

13. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries RUS Broadband Program Criteria (Selected) Loans, loan guarantees or grants At least 75% of each project’s service territory must be a rural area w/o sufficient high-speed broadband; Preference for former RUS borrowers; Preference for applications permitting a choice of multiple service providers. 13

14. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries Selected Comments Cable: AT&T: Microsoft: Concerned about subsidizing their competition; funding should stimulate demand and use. Concerned about subsidizing competition; funding should go to schools, libraries and hospitals. Funding should go to schools, libraries and hospitals; anchor institutions will provide greatest bang for the buck. 14

15. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries Selected Comments Local Gov’ts: Consumer Organizations: K-12 Schools EDUCAUSE Suggests priorities for anchor institutions (schools, libraries); no deference to states. Emphasize affordability, adoption strong non-discrimination. In-kind contributions should satisfy 20% match; to the classroom. Suggests priority for “middle mile” extensions of existing state networks. 15

16. NTIA & RUS What to Expect Based on What We Know

17. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries NTIA – Mission and Experience “Principal advisor to the President on telecommunications and information policy.” Also federal spectrum manager. PTFP DTV Coupons Public Safety Interoperability ENHANCE 9-1-1 grants TOP –Demonstration of “innovative” applications –Public safety, telemedicine, community networking –$15 million to $45 million

18. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries RUS – Mission and Experience Mission: Rural development a community at a time Well established constituency – RLECs Telecommunications loans (60+years) –Communities of 5,000 or less DL/Telemedicine grants (16 years) –Communities of 20,000 or less Broadband loans (8 years) –Communities of 20,000 or less Community Connect grants (8 years) –Communities of 20,000 or less

19. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries Differences NTIA –Focus: Urban, suburban, rural and international –Innovative technologies Spectrum management ITS Lab in Boulder, Colorado –Commerce Committee oversight RUS –Rural focus –Established constituency to protect –Specific engineering and financial expertise –Agriculture Committee oversight

20. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries NTIA Application Procedures TOP: –8 page narrative –Peer reviewed PTFP: –Peer reviewed –Coordination with FCC DTV: –Outsourced –Direct consumer contact Interoperability: –Deferred to DHS ENHANCE 9-1-1 Grants: –Deferred to DOT –Established a state formula grant process

21. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries RUS Application Procedures Community Connect grants: –One community at a time –Objective scoring criteria –Many pages, many federal forms including standard budget forms –Very strict existing service test Broadband loans: –First come – first serve –Volumes in boxes –12 month review common –Strict non-duplication test DL/Telemedicine grants: –End-user equipment only – No transmission covered –Many pages, many federal forms including standard budget forms –Objective scoring criteria

22. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries ARRA – Creating the Odd Couple? White House desire for close coordination & common application procedures Trumping ARRA Statute requirements –NTIA: Multiple purposes Role of states –RUS: Overlay on existing programs Creating “choice among carriers”

23. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries Key Issues to Watch For Effect of: –RUS non-duplication rule –New 75% “not sufficient broadband available” rule Role of states Policy agendas – e.g., interconnection and non-discrimination One application or common application

24. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries On the Ground—Things to Watch for

25. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries E-rate and BB Stimulus Funds In general, E-rate funded telecommunications services are for: Commercially available leased wide area network services (recurring services) In general, broadband stimulus funds are for: Infrastructure development and expansion (non- recurring services)

26. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries NTIA/BTOP Grant Limitations In awarding grants, the Asst. Secretary shall consider whether an application to deploy infrastructure in an area… Will, if approved, not result in “unjust enrichment” as a result of support for non-recurring costs through another Federal program for service in the area…

27. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries Things to Watch/Do Now Watch for official notices and be familiar with ongoing activities –www.ntia.doc.gov/broadbandgrantswww.ntia.doc.gov/broadbandgrants –http://www.usda.gov/rus/http://www.usda.gov/rus/ Know and understand the comments made by others in your state –http://broadbandcensus.com/2009/04/the- broadbandcensuscom-list-of-ntia-comments/http://broadbandcensus.com/2009/04/the- broadbandcensuscom-list-of-ntia-comments/ General stimulus information and reporting –http://www.recovery.govhttp://www.recovery.gov

28. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries Things to Watch/Do Now Know who else is applying for funds in your state –Are they competition or potential partners? –Are they part of an initiative coordinated by your Governor’s office? Is it possible for you to participate in the Governor’s initiative? –Is the “competition” applying for the same purpose you are, e.g. Purpose 3 vs. Purpose 1 and 2?

29. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries Things to Watch/Do Now Start Collecting Data Do you have a Needs Assessment? Document meetings, participants, and geographic coverage Document any evidence of planning Have a “Plan B” and make certain you can adjust to specific program guidelines

30. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries Things to Watch/Do Now Pay close attention to any project evaluation scoring Can you clearly articulate your Project Purpose? Have you developed a plan for sustainability? Can you define realistic, measurable outcomes?

31. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries Matching Funds What is the source of your 20% match? –Don’t count on a waiver being approved given the competition for funds. –Are there other non-Federal programs from which you can obtain matching funds? –Do you have project partners that can contribute to the match requirements? –Both Cash and In-kind contributions have been allowed in previous NTIA programs.

32. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries Match May be Limited to Project Statutory language appears to limit Federal share and matching share to the Project (DOC, Title VI, Sec. 6001 (f)). Previous TOP program: “With respect to in-kind donations, it is essential to remember that an item which is not eligible for federal support cannot be included as a match.” Example: Project Manager vs. On-going costs Non-Discounted portion of E-rate as match? (Unlikely)

33. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries Can BTOP funds be used to match E- rate Non-discounted portion? (Unlikely) That, notwithstanding any other provision of law, no entity that receives telecommunications services at preferential rates under section 254(h) of the Act (47 U.S.C. 254(h)) … may use funds under a grant under this heading to cover any costs of the entity that would otherwise be covered by such preferential rates or such assistance, as the case may be…

34. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries Project Management Likely to be significant reporting requirements –plan for adequate staffing to manage project and file reports (likely quarterly.) Can your project realistically be completed in 24 months? –Develop Timeline

35. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries Be prepared for: Quick turnaround on application period—45-60 days If online application process is available/required, don’t wait until the deadline to apply –Potential problems for sluggish submission and site overload

36. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries Be Prepared: Do you have a DUNS number? Do you have an indirect cost rate? Does your state require intergovernmental review of Federal programs? (E.O. 12372) –State SPOC contacts: http://www.whitehouse.gov/omb/grants/spoc.html

37. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries John Windhausen jwindhausen@telepoly.com Greg Rohde glr@e-copernicus.com Linda Schatz lschatz@edtechstrategies.net

38. May 12, 2009Federal Stimulus Funding, Broadband and America’s Libraries Hosted by The American Library Association Washington Office The Bill & Melinda Gates Foundation