By Autumn Shelton, West Virginia Press Association
CHARLESTON, W.Va. – Kelly Workman, director of the state’s Office of Broadband, provided an update on the Broadband Equity, Access, and Deployment (BEAD) program during Monday’s interim meeting of the legislative Joint Standing Committee on Technology and Infrastructure.
According to Workman, the state is set to receive $1.2 billion from the federal BEAD program to provide high speed broadband access for underserved and unserved locations.
The state’s initial funding proposal, Volume 1, went out in Fall 2023, Workman said.
“At this point we are awaiting our approval,” she continued, adding that once the proposal is approved, the state can begin the 90-day challenge process. The challenge process will provide local governments, service providers and non-profit organizations the opportunity to challenge locations that are eligible for BEAD funding.
Once the challenge process is complete, estimated to be in March 2024, the state can begin “rolling out application procedures and set grant application deadlines,” Workman said. The state will select the final projects to be submitted to the National Telecommunications and Information Administration (NTIA) by Fall 2024.
Volume 2 of the initial funding proposal also went out in Fall 2023, but revisions still must be made, Workman added, noting that this was the “more technical” of the proposals and included mapping data.
“We are completing final revisions and hope to have these in place in the next few weeks,” she said.
Through the mapping process, Workman noted that the state has identified 168,000 locations that are eligible for BEAD funding.
A funding proposal for the Digital Equity Act, which is separate from the BEAD program, has also been submitted. Although there has been no word yet on how much the state could receive from this source, Workman said estimates range from $5 million-$15 million.
All of the progress on the proposals can be found at broadband.wv.gov, she added.
Additionally, Workman discussed issues the legislature should consider as the programs are rolled out.
“The BEAD 25% match is a real concern for our companies that are now heavily leveraged and working to expand broadband in our most rural areas,” Workman said. “This 25% match is in addition to the letter of credit.”
She also said that pole attachments are the “most significant cause of delay on our ARPA (American Rescue Plan Act) projects. We have 22 projects that are currently in the pole attachment process. There are others that will follow shortly thereafter.”
Workman said the Office of Broadband is working with utility pole owners, such as FirstEnergy and American Electric Power.
Following Workman’s presentation, Del. Paul Espinosa, R-Jefferson, asked for more information regarding the 25% match.
Workman responded that larger companies often have greater access to capital, while smaller and regional companies must apply for a letter of credit. Many of the providers in West Virginia participated in the Federal Communications Commission’s (FCC) Rural Digital Opportunity Fund (RDOF) so that a greater variety of them could be involved.
“FCC RDOF requires a letter of credit over the life of the program,” Workman stated. As part of that, the WV Economic Development Authority offered broadband loan insurance to ensure those letters of credit.
The 25% match is a requirement on many federal programs, she noted.
“When you have just this multitude of programs and projects with a 25% match requirement or a letter of credit requirement, access to capital is a concern that we heard in our meetings with those small and regional companies in particular.”
Del. Jim Butler, R-Mason, asked if the Office of Broadband communicates broadband information with county commissioners, and what, if anything, legislators do to help.
Workman stated, “I think as we go forward in 2024 we want to make an effort to communicate with our counties better than we are today.”
She added that work is also needed to get information out to the residents of West Virginia.
Del. Keith Marple, R-Harrison, asked about progress being made by the Harrison Rural Electric Association.
“They represent about five or six counties, parts of it, they got a federal grant two, three years ago and said they were unable to find a contractor because of Covid,” Marple stated. “They are beginning work now. Do they report to your agency or are you aware of their progress?”
Workman said that the Office of Broadband regularly checks in to monitor progress, and it is her understanding that they are moving forward.
“I don’t know the details of that particular project,” Workman said. “I did mention that pole attachments are really our top concern right now. It’s a significant source of delay and increasing costs as we try to roll out projects throughout West Virginia. That project and the ARPA projects are a prelude of what’s to come in the BEAD program, and those projects are a fraction of the historic investment into West Virginia. So, the time is now to address the pole attachment issues. We are continuing to work, primarily, with FirstEnergy and the Public Service Commission to try to work through those details. But, it is a very significant concern.”
Lastly, in response to questioning, Workman said that Space X’s Starlink internet availability “is not considered a reliable broadband service technology under the BEAD program” and will not affect FCC mapping.