Feds offer tips on how to get broadband stimulus

HOW TO GET IT

Applicants can apply to both the USDA and NTIA separately for different parts of the same project, but they can’t get paid twice for the same thing, officials said.

One important distinction between how the USDA and the NTIA will distribute funds is that USDA grants require 75% of the area served by an approved project to be a “rural” area without sufficient broadband. The NTIA, meanwhile, will address both “unserved” and “underserved” areas, though the government hasn’t yet defined those terms and is seeking public comment now on how to do that. The act also includes grant money to be distributed to the states for broadband mapping to help identify those unserved and underserved areas.

The definition of such key terms are just a few of the crucial but so far unanswered questions regarding how the government will award stimulus funds. Still to be determined is how the government will quantify “innovation,” a characteristic officials said will be rewarded.

In addition to looking for projects that bring the highest broadband speeds to the largest number of users, the act gives the organizations a wide range of criteria to consider – for example, a preference for projects that give users a choice of providers and those that are expandable in the future. The government will weigh whether a project enhances service for health care, education and children, and it will consider whether the applicant is a “socially and economically disadvantaged small business.”

The government is also seeking comment on how to measure, demonstrate and consider “in-kind contributions” of funding from local and other governments and nonprofit organizations that could be used to maximize the scope of a particular broadband project and thus increase its chances for receiving grant money.

Because a wide range of criteria will be considered and awards given to proposals promising the most “bang for the buck,” officials suggested collaboration among applicants.

“The act does say we want to get as much [broadband] to as many users as possible,” said Bernadette McGuire-Rivera, associate administrator for NTIA. “I would really encourage people to get out and cooperate in applications, aggregate demand. I don't think we have a decision [on] whether, just because simply you're a group of people it's going to be better than someone that's not a group, but I would encourage people to get together and put applications together.”

Seifert even suggested taking a holistic look at other parts of the stimulus act when writing grants. “One thing we're also trying to do…is…leverage the other broadband-based programs in the recovery act,” he said. “There is smart grid, there is Department of Transportation money going out, so the thought has been if you come forward with a proposal and you don't have to dig the trench twice, that shows efficiency and effectiveness…We want you to think about how to utilize all aspects -- the health, IT, there are a number of different programs within the recovery act.”

However, he also pointed out that the statute requires that funding apply to projects that would not have proceeded if not for federal assistance.

“That’s not a mushy rule,” Seifert said. “That’s a hard and fast rule in the statute, and we’re going to pay attention to that.”

At today’s meeting, one audience member, from Mid-Atlantic Broadband Cooperative, which owns a large network in Virginia, said, “We have 6 million of non-federal matching dollars ready to go today. I have tower contractors, fiber contractors. We're ready to award contracts.  If we award those contracts prior to any federal grant award in NTIA or RUS, will those still be considered matching funds?”

The NTIA’s McGuire-Rivera replied, “That is a real good question, and if it were one of our existing grant programs, it wouldn't be, so we are going to go back and check on that for you. Don't give up hope.”