Changes, Requirements and Critical Details: Final Broadband Stimulus Opportunity for BIP

The American Recovery and Reinvestment Act of 2009 (ARRA), more commonly known as the Stimulus Act, allocated $7.2 billion for broadband projects. Administrated by the US Department of Agriculture Rural Utilities Service (RUS) Broadband Initiatives Program (BIP) and National Telecommunications and Information Administration (NTIA) Broadband Technology Opportunities Program (BTOP), the first round of funding was announced through a Notice of Funding Availability (NOFA) in July 2009.

On January 15, 2010 RUS announced the final round of broadband stimulus funding. This NOFA makes $2.2 Billion available, including $1.7 billion for Last Mile projects, up to $300 million for Middle Mile projects, up to $100 million for Satellite projects, as well as any funds not committed to Last Mile or Middle Mile and up to $5 Million for Rural Library and Technical Assistance projects. Additionally, $95 Million is kept in reserve and funds may be repooled from one category to another. This paper distills the critical details of the January 15, 2010 RUS NOFA communities and organizations need in order to develop strategies for applying for this final round of funding from BIP.

Additionally, this paper outlines how this round differs from the first round and how it affects applicants.

Key Changes

• Separate BTOP and BIP Applications and Notices of Funding Availability
• Funding for Satellite, Technical Assistance and Rural Library Broadband Projects
• Areas that do not have broadband service of 5 Mbps (up and down combined) lack high-speed broadband and qualify for funding [NOFA p. 6].
• RUS to focus on Last Mile projects while NTIA focuses on Middle Mile. [NOFA p. 6]
• RUS will still fund Middle Mile, but recommends only for current RUS loan or grant recipients
• Eliminated "Last Mile Remote" funding category [NOFA p. 7]
• Created new categories:
• Satellite Project category Satellite Project means any project to provide satellite broadband service to unserved rural premises (including households, businesses, public safety entities, and critical community facilities), either by funding customer-premises equipment, terrestrial equipment, and/or discounted broadband service for at least one year. [NOFA p. 18]
• Rural Library Broadband Projects
• Technical Assistance Projects
• Funding provided as 75/25 grant/loan combinations. Applicants may request more than 75% grant [NOFA p. 8]
• Rural applicants may apply directly to BTOP
• Single-step review process [NOFA p. 11]
• No longer based on census-block data [NOFA p. 13]
• If the NTIA passes on a project that meets BIP's requirements, BIP might consider funding the project [NOFA p. 14]
• Administer may favor applicants that provide certain intervention such as libraries or "persistent poverty counties" [NOFA pps. 14 - 15]
• High Speed Access means high speed broadband service to facilitate rural economic development, or service at the rate of at least 5 Mbps (upstream and downstream combined). [NOFA p. 16]
• Critical community facilities means public facilities that provide community services essential for supporting the safety, health, and well-being of residents, including, but not limited to, emergency response and other public safety activities, hospitals and clinics, libraries and schools. [NOFA p. 16]