CPUC Weighs 'ACP-Type' Subsidy as Calif. Officials Report Broadband Progress
The California Public Utilities Commission is mulling ways it can support broadband adoption in the wake of the federal affordable connectivity (ACP) program ending, Communications Division Director Rob Osborn said during the California Broadband Council’s meeting Tuesday. The state is making significant progress advancing its broadband-for-all goals, reported Scott Adams, deputy director of the California Department of Technology (CDT) broadband and digital literacy office.
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“We're now looking at ways for [California] LifeLine to provide an ACP-type subsidy,” said Osborn. “So, stay tuned for more on that.” Osborn acknowledged that the legislature would have to change state law for LifeLine to fund stand-alone broadband because the California Moore Act requires the program to support voice service. One option under consideration is running a pilot program to "test the waters [and] get providers on board offering a service,” said Osborn: However, “a pilot is inherently limited in terms of the timeline."
Meanwhile, the CPUC is trying to spur more people to enroll for state LifeLine by creating a customer portal that would let participants join, get qualified and choose a provider directly, said Osborn. In addition, the CPUC plans to vote soon on a proposed decision that would allow people to register for LifeLine without having to provide social security numbers, he said. The commission has delayed voting on the proposal multiple times but might adopt it at the Nov. 7 meeting (see 2410150033).
Adams reported success working with the FCC to promote ACP and noted that many California entities are continuing broadband adoption work without the program. "There's a significant gap in [ACP’s] absence," acknowledged the CDT official. "We need to continue to move forward until a replacement comes -- if it comes at all.”
Many companies have maintained affordably priced offers since ACP ended, noted California Emerging Technology Fund CEO Sunne McPeak, a broadband council member. But she raised concerns that providers have not yet committed to offering the plans beyond this year.
California state Sen. Steven Bradford (D) said he’s “really concerned” about the state’s delay in distributing dollars to his constituents in Los Angeles County. Even though it’s one of the largest unserved areas of the state -- and funds have been available -- the CPUC delayed voting on awarding dollars there until Nov. 7 this year, he said. “I'm concerned that ... lower income and minority communities will not be given their fair share of these investment dollars.”
Osborn responded that the CPUC strives to find the best data as it considers its priorities. However, one challenge is that the agency’s programs are applicant-driven, meaning it needs applicants to apply for areas before it can send grants there, he said.
The CPUC is on track to utilize all its federal funding account (FFA) money and meet deadlines for the broadband equity, access and deployment (BEAD) program, said Osborn, answering an earlier question from Bradford. Likewise, for CDT’s Middle-Mile Broadband Initiative, said MMBI Deputy Director Mark Monroe, “We already have all of our federal funds encumbered and under contract .... and we anticipate having all middle file funds liquidated by the end of 2026.”
The CPUC has awarded more than $600 million of about $2 billion available through the FFA program, said Osborn. The awards so far cover 30 counties and have gone to a variety of entities including tribes and county organizations, he said. The CPUC official said 40 of 60 awarded projects will connect to the MMBI. He added that the commission has recommended an additional $157 million in grant awards that would cover three more counties. The CPUC plans to start accepting BEAD applications in Q1 2025, said Osborn. But first, the agency needs NTIA approval of challenge process results that it plans to submit Nov. 4, he said. The agency expects that federal clearance in mid- to late December, he said. The commission’s final BEAD plan is due to NTIA in October 2025.
To ensure timely deployment, California continues working with local jurisdictions to provide guidance and best practices to prepare for incoming last-mile projects, said Adams. Monroe said that CDT has enough funding to reach all the FFA grant locations that plan to connect to the MMBI. As of Sept. 30, more than 1,800 miles of the middle-mile network was under construction, which is about 19% of the total planned network, he said. CDT expects about 3,000 miles to be under construction by year-end, he said.