Some Caution CPUC on $750M Local Loan Program
Require transparency for California’s $750 million broadband loan loss reserve fund (BLLRF) for infrastructure deployment financing by localities, nonprofits and tribes, said the California Emerging Technology Fund. The California Public Utilities Commission received comments Friday on the program from the…
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state’s $6 billion broadband law. “There needs to be a lot more clarity and transparency on the scope and use of BLLRF in the broadband context,” CETF commented in docket R.20-08-021. "Given the amount of public funds being continuously appropriated by BLLRF to assist eligible applicants that may have no prior experience in broadband deployment, network operations and maintenance,” CETF suggests creating “a peer review panel comprised of finance experts … to evaluate independently the BLLRF final proposal and publish an annual report.” Use BLLRF "when and where there is no private capital investment to be leveraged in the public interest,” said CETF: Applicants should have the same rules as applicants of other California Advanced Services Fund broadband programs, including that all projects reach last-mile unserved households, CETF said. The California Cable and Telecommunications Association urged the CPUC to require local government transparency, including separate financing and accounting from other municipal finances. “Otherwise, the BLLRF may end up abetting unscrupulous financial practices such as those seen in Burlington, Vermont’s experience with municipal broadband, which resulted in substantial taxpayer losses.” Target funds to areas lacking 25 Mbps download and 3 Mbps upload speeds, or at least prioritize areas without 100/20 Mbps, and keep a “level playing field to fund recipients and their competitors,” CCTA said. The state cable association bristled at CPUC references to "redlining," saying its members meet state and federal legal obligations to serve all households within service areas “without regard to race or income." Also, "references to the presence or absence of competition appear irrelevant to making funding decisions for an account that should be focused on connecting those without high-speed broadband service in the first place,” CCTA said. The CPUC plans to vote Thursday on rules for a $2 billion last-mile federal funding account established by the same state law (see 2203290041).