[Senate Hearing 117-]
[From the U.S. Government Publishing Office]
COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES APPROPRIATIONS FOR
FISCAL YEAR 2023
----------
TUESDAY, FEBRUARY 1, 2022
U.S. Senate,
Subcommittee of the Committee on Appropriations,
Washington, DC.
The subcommittee met at 2:30 p.m., in room SD-192, Dirksen
Senate Office Building, Hon. Jeanne Shaheen (Chair) presiding.
Present: Senators Shaheen, Leahy, Reed, Coons, Schatz,
Manchin, Van Hollen, Moran, Murkowski, Collins, Boozman,
Capito, Hagerty, and Braun.
DEPARTMENT OF COMMERCE
opening statement of senator jeanne shaheen
Senator Shaheen. Good afternoon, everyone. Hopefully you
are all awake. Madam Secretary, so nice to have you join us
today.
And let me just point out that we are going to be taking
questions in order of seniority. We have got a hybrid, so we
may have some folks coming virtually, but we are going to do it
in order of seniority. And that way we don't have to worry
about when people signed on to the virtual screen. So very nice
to be here with my Ranking Member, Senator Moran; and with the
Chairman of the Appropriations Committee, Senator Leahy, and my
neighbor, so nice of you to join us this afternoon.
The Subcommittee on Commerce, Justice, Science, and Related
Agencies will officially come to order. And we welcome everyone
to today's hearing.
I had a chance last week, when I was in New Hampshire, to
meet with the New Hampshire Municipal Association, to hear from
towns all over the State about their pressing infrastructure
needs. And I am sure it will come as no surprise to anyone here
that the list communities have is very long, but at the top of
that list is access to reliable, affordable Internet.
And New Hampshire, like in every other State around the
country, you can't fully participate in American life without
reliable, high-speed Internet. Just ask the parent of any
school-aged child about navigating schools during the pandemic,
ask any small business owner, or anyone trying to schedule a
visit with their local doctor.
The pandemic lay bare what has been true, that broadband,
like water and electricity, is a necessity. And I know that we
all heard stories from families in our States about having to
go to McDonald's to get access to the Internet because their
kids couldn't get access for school.
By some estimates, more than 40 million Americans don't
have access to broadband. Those without access are
disproportionately low-income individuals, and in a country
like the United States, this just should not be the case.
In November, the President signed into law the
Infrastructure Investment and Jobs Act, a landmark bill that
invests $65 billion to expand broadband in our country. And of
that amount, nearly $50 billion will be administered by the
National Telecommunications and Information Administration, or
NTIA, within the Department of Commerce, and under the
jurisdiction of this subcommittee, a fortunate occurrence for
all of the Members of the subcommittee, and one that my Ranking
Member pointed out to me very early.
Together, these programs will be used to deploy broadband
to unserved and underserved locations, create more low-cost
broadband service options, install middle-mile infrastructure,
and address the digital equity and inclusion needs in our
community. I think it is worth pausing to note that this bill's
passage is due in no small part to the tireless work of many of
the Members of this subcommittee. In particular, our Ranking
Member, Senator Moran, as well as Senators Manchin, Collins,
Coons, Murkowski, Graham, and Capito, I think all deserve
recognition as they all participated in the group effort to
negotiate this law.
I especially like to thank Senator Collins who led the
bipartisan broadband working group with me.
And also would be remiss not to thank you, Madam Secretary,
because without your leadership, and your consistent engagement
with us, we would not be here today. So thank you very much.
There is still so much more work to do, as we all know, and
as you can expect, my colleagues and I on the subcommittee are
eager to see this money get out the door and to our States. We
know the release of the Federal Communications Commision's
broadband maps. I recognize that is not within your direct
control, but we look forward to hearing an update from you
about the mapping process and when you think those will be
ready.
Beyond questions of timing, I have also heard questions
from my State about the difficulty in navigating so many
Federal and State broadband initiatives. These programs often
overlap and they have different requirements. Cities and towns
across New Hampshire are looking for assurances that there will
be effective coordination amongst States and the various
Federal agencies administering broadband programs. That
coordination will be very important to serve more people and
stretch our dollars further.
We also know that creating low-cost options for reliable,
high-speed Internet is crucial. We look forward to hearing how
the Department plans to work with States to develop these
proposals as mandated by the Bipartisan Infrastructure Law.
These challenges are just the tip of the iceberg, but I
would like you, Madam Secretary, to know that we on the
subcommittee stand ready to assist the Department as it
executes these investments. We all know the stakes. Effectively
managed it is no exaggeration to say that these investments
will transform the lives of tens of millions of Americans.
Madam Secretary, we know you understand the stakes as well, and
we very much look forward to your testimony this afternoon.
With that, let me recognize the Ranking Member, Senator
Moran, for his opening remarks.
opening statement of senator jerry moran
Senator Moran. Senator Shaheen, thank you. Thank you very
much for convening this hearing. It is timely. I am pleased
that we are doing this in advance of the decisions that NTIA
and the Department of Commerce will make, as they execute the
authorities that we have granted them in the bipartisan bill.
And I appreciate, always, when I see an appropriation
subcommittee and an appropriations committee engaged in
overseeing the activities of the agencies in departments that
we fund.
And Secretary Raimondo, I welcome you to this, your first
appearance before the CJS Subcommittee in 2022, and I look
forward to working with you in this New Year. I think your
insight as a Governor, a former Governor, is something that
will be of great value in this particular arena. But in many
aspects of the job you hold at the Department of Commerce.
The Infrastructure Investment and Jobs Act gives the
Department authority over $48 billion in taxpayer dollars for
broadband programs. These programs cover everything from
enabling States to connect unserved areas, to furthering
connectivity for Tribes, to strengthening the backbone of
infrastructure that will make our goal of increasing access
possible.
The Department is at the forefront of this once-in-a-
generation investment. And I really do hope that this is the
time in which we are done saying, this is the moment in which
we are going to get speed and interconnectivity to places that
are underserved and unserved in this country. We cannot
continue to have new programs, additional billions of dollars
over, and over, and over again, while our constituents, while
America waits for the valuable use of the Internet.
Despite the significant funding allocated for broadband
deployment, it will still be a challenge to meet those goals.
We must make certain that Federal funds are well coordinated,
and do not contribute to overbuilding of existing networks
while some Americans would continue to lack access to broadband
altogether. I hear often from Kansas broadband providers about
the various challenges facing them when it comes to deployment.
One provider told me recently that a group of 19 families
in rural Ellsworth County, Kansas, have been asking for service
to be built out to their farms for years, with the promise that
they would subscribe to that service. Unfortunately, the area
remains a ``pending'' location under the FCC's Rural Digital
Opportunity Fund. The RDOF highlights the challenges that when
we pass legislation, it still doesn't mean that broadband shows
up in places across our States.
It highlights the challenges that States face on working to
plan to reach the unserved, and they wait upon updated maps and
attempts to navigate the myriad of broadband programs that the
Chair mentioned.
I recently had a conversation with Stanley Adams, he is the
director of the Kansas Office of Broadband Development.
Implementation of these programs is going to be an enormous
challenge. My goal in having a conversation with him, and our
conversation with you today, is to see if we can't get those on
the ground involved with those who are making decisions about
how the deployment should occur.
Having said all those challenges, I am excited about this
opportunity. A significant reason I asked Kansans to give me
the chance to represent them was a belief in rural America. And
one of the components of taking care of rural America to see
that it has a bright future is the access to broadband.
Fundamentally, the Department needs to be a partner, and
NTIA must work to understand the situation on the ground in
Kansas, and in each State. NTIA will play a significant role in
certifying that families across rural Kansas, and other rural
areas, maybe, those are words that are written on a piece of
paper; it is rural Kansas, but it is also many other places
that we wouldn't consider rural. The core parts of cities in
Kansas and across the country are in desperate need of
broadband as well.
We know that each State will have its own unique problems.
The challenges in Kansas might be different than the challenges
in New Hampshire, but whatever those differences are, Senator
Shaheen and I will overcome. And we will see that our goal of
broadband access is the same.
Both NTIA and States will need to ensure they have the
right people to provide expertise, ensure an effective,
complete build out, and oversee the significant investments for
the day. A lot of work to be done, NTIA I am sure will be
challenged by the scope and scale, but all of this must be done
right, and that resource is applied appropriately and
effectively.
Please know that I stand ready to work with you as we
connect the Nation. I thank you for being here today.
Senator Shaheen. Thank you, Senator Moran.
Chairman Leahy, would you like to make any remarks before I
call on the secretary?
Senator Leahy. No. I am just--I am interested in hearing
it. I am one of those who live in a rural area, on a dirt road,
5 miles from our State Capitol Building. And through our days
of my broadband, I pay the highest amount, now that there is--
there are actually some days it works, not often, but some
days, and are mainly because the company doesn't give a damn
about ``last-mile'' stuff. But we will get into that.
Senator Shaheen. Okay. I thought maybe you were here to
give us an update that we have an agreement on Omnibus. No.
Senator Leahy. I will tell you about that after.
[Laughter.]
Senator Shaheen. Okay. All right; Secretary Raimondo.
STATEMENT OF GINA RAIMONDO, SECRETARY, DEPARTMENT OF
COMMERCE
Secretary Raimondo. Good afternoon. Good afternoon, Chair
Shaheen, Ranking Member Moran, Members of the Committee, thank
you for having me. I am looking forward to this discussion, and
it is nice to see you all in person.
As the Chair said, very eloquently, too many families all
across America can't afford the cost of broadband service, or
as the Chairman just said, they live in areas that don't have
access to high-speed Internet. And gaps in broadband mean gaps
in opportunity, fewer opportunities to learn, and work from
home, to visit the doctor, to stay connected with family and
friends.
Achieving an equitable future means ensuring that all
homes, all businesses, have high-quality connections at
affordable prices, and that users have the devices and digital
skills they need for meaningful use. The truth is, our economy
cannot fully recover unless all Americans can fully
participate.
That is exactly why President Biden set an ambitious goal
when he entered office. That goal is crystal clear. Connect
every American through affordable, reliable, high-speed
broadband.
I, too, would like to thank the Members of this Committee,
both Democrat and Republican, who worked with us to negotiate
the broadband provisions of the Bipartisan Infrastructure Law.
I specifically want to thank you Madam Chair, Senator
Manchin, Senator Collins, Senator Murkowski, and every member
of the Committee. I have worked with each and every one of you
to negotiate this. And I cannot thank you enough for your
cooperation, and making this a reality, because of your work
and your commitment, bipartisanship, this law provides $65
billion to deliver reliable, high-speed Internet to every
American, lower the cost of Internet, and close the digital
divide.
Of those funds, as Ranking Member Moran said, $48.2 billion
are allocated to the Commerce Department's National
Telecommunications and Information Administration, NTIA.
Specifically, that law provides: $42.5 billion for the
Broadband Equity, Access & Deployment Program, which I will
refer to as BEAD in this testimony; $2 billion for Tribal
broadband grants; $2.75 billion from the Digital Equity Act,
and $1 billion specifically for middle-mile connections to
build the high-speed backbone.
Our goal at the Commerce Department is to make certain,
that at the end of our work, every single household, small
business, farm, family, and student in America has access to
affordable, reliable, high-speed broadband. And we are focused
on getting this done right, and giving States the flexibility
they need to ensure that this benefits everyone in their State.
As the Ranking Member mentioned, I am a former Governor,
and I live this. I live this. The needs of Rhode Island for
broadband are different than Kansas or New Hampshire, or Maine,
or Vermont, or Delaware, or West Virginia, it is different. And
so, we have to have flexibility to get the job done. In many
rural communities there is no broadband, no fiber, it doesn't
exist. So, in that case, our task ahead is to lay the
infrastructure and ensure people, in even the most rural
corners of the country, can get online.
In urban areas, it is a different set of challenges. On
Tribal lands, a different set of challenges. So the way we are
administering this program is with great flexibility, and the
law, as conceived, has built-in flexibility to allow us to
address each State's specific needs. If I deliver no other
message today, I want to be clear there is--we do not have a
one-size-fits-all approach, because I don't believe that would
be successful.
We are going to work hand-in-glove very closely with your
States to fund projects that will make the greatest impact and
achieve universal broadband access and affordability. This
unprecedented investment, in closing the digital divide,
requires input from a wide range of voices to assist our design
and implementation of the new grant programs. I cannot say this
enough, stakeholder engagement is absolutely vital to getting
this done.
And thanks to the historic and bipartisan investments that
you have made and enabled, we are moving towards our goal of
connecting all Americans to affordable, high-speed broadband.
We all know that for our economy, businesses, and workers to be
competitive in the 21st century economy, we have to get this
done.
So, like many of you, I am eager to work with you. That
Ranking Member Moran is exactly right; this will not be easy,
this is detail-oriented, this is a complicated implementation
hurdle. We, together, in partnership with States, and Tribes,
and stakeholders we will get this done, and fundamentally close
the digital divide in America. So thank you.
[The statement follows:]
Prepared Statement of Secretary Gina Raimondo
Chair Shaheen, Ranking Member Moran, and members of the
Subcommittee, thank you for the opportunity to discuss the broadband
funding in the Infrastructure Investment and Jobs Act, better known as
the Bipartisan Infrastructure Law.
Too many families can't afford the cost of broadband service, and
too many families live in areas where they can't access high-speed
Internet.
Gaps in access mean gaps in opportunity: fewer opportunities to
learn and work from home, remotely visit doctors, or stay connected
with family and friends. Achieving an equitable future means ensuring
that all homes and businesses have high-quality connections at
affordable prices, and that users have the devices and digital skills
needed for meaningful use.
Our economy cannot fully recover unless all Americans can fully
participate.
This is why President Biden set an ambitious goal when he entered
office: connecting every American through affordable, reliable, high-
speed broadband.
I want to thank the many members of this committee--both Democrat
and Republican--who worked with us to negotiate the broadband
provisions of the Bipartisan Infrastructure Law, specifically you,
Madam Chair, Sen. Manchin, Sen. Collins, and Sen. Murkowski.
I'm proud that the broadband provisions of the bill ultimately
helped it to pass with significant bipartisan support.
Thanks to your work, the Bipartisan Infrastructure Law provides $65
billion to deliver reliable, high-speed Internet to every American,
lower the price of Internet service, and help close the digital divide.
Of those funds, $48.2 billion is allocated to Commerce's National
Telecommunications and Information Administration.
Specifically, the law provides:
--$42.45 billion for the Broadband Equity, Access & Deployment
Program (BEAD). The program will award grants to states and
territories to fund high-speed affordable broadband for
households and businesses that currently lack access to such
services.
--$2 billion for Tribal broadband grants, tripling the funding for
NTIA's existing Tribal Broadband Connectivity Program.
--$2.75 billion to fund the Digital Equity Act. This provides NTIA
with funding for three grant programs to promote digital
inclusion and equity for communities that lack the skills,
technologies, and support needed to take advantage of broadband
connections.
--$1 billion for middle-mile connections to build a high-speed
backbone to help reduce the cost to serve households,
businesses, and anchor institutions.
Today, I'm grateful for the opportunity to update you on our
progress as we prepare to launch these programs in a little more than
100 days.
We want to ensure that broadband deployment is successful and
affordable in every corner of the country, in every type of community,
and for your constituents.
Our goal at the Commerce Department is to make sure that every
small business, farm, family, and student in America has access to
affordable, reliable, high-speed broadband.
We're focused on getting this done right and giving states the
flexibility they need to ensure this benefits everyone.
In Rhode Island, where I come from the challenge there is less
about physical broadband infrastructure and more about ensuring
affordability. It does no good to live in a location where broadband is
available if you can't afford to get it.
Many rural communities, on the other hand, have no broadband. Our
task ahead is to lay the infrastructure and ensure people in even the
most rural corners of our country can get online.
Essentially: it doesn't make sense to address Kansas challenges
with Rhode Island solutions. That's why the law has built-in
flexibility to address each states' specific needs.
Under the law, each state will get a minimum of $100 million, and
the remaining money will be allocated by need, based primarily on the
number of unserved households.
States will be given initial planning funds that they can use to
develop a five-year action plan, in collaboration with local and
regional entities, to cover everyone in their state.
We're going to work with your states to fund projects that will
make the greatest impact and achieve universal broadband access.
This unprecedented investment in closing the digital divide also
requires input from a wide range of voices to assist our design and
implementation of the new grant programs.
Stakeholder engagement is critical to getting this right.
Over the past 2 months, NTIA has held three virtual, public
listening sessions to help inform the development and implementation of
the broadband programs in the law. We've met with state and local
governments, non-profit and civic organizations, higher education
institutions, and industry.
Last month, NTIA issued a request for comment to gain further input
into the program design, policy issues, and other implementation
considerations for the programs launching this year. Comments are due
on February 4.
This work builds on prior broadband programs, including the three
grant programs funded by the bipartisan Consolidated Appropriations Act
for fiscal year 2021.
The largest of these is the Tribal Broadband Connectivity Program
(TBCP), which will award nearly $1 billion to expand broadband access
and adoption on Tribal lands.
We received nearly 300 applications from across the country ? from
large infrastructure projects to small Internet-adoption programs. The
requests amount to more than $5 billion in funds--a strong signal of
the intense need for broadband investments in Native American, Alaska
Native, and Native Hawaiian communities.
As I mentioned, the Bipartisan Infrastructure Law appropriated an
additional $2 billion for the TBCP. Last month, NTIA conducted a Tribal
Consultation to receive input on this funding.
The Connecting Minority Communities Pilot Program will direct $268
million toward expanding broadband access and connectivity to eligible
Historically Black Colleges or Universities, Tribal Colleges or
Universities, minority-serving institutions, and nearby anchor
communities.
NTIA has received over 200 applications, resulting in more than
$833 million in funding requests for the purchase of broadband Internet
service and equipment, among other project goals.
Finally, the Broadband Infrastructure Program will direct $288
million in grant funding toward the deployment of broadband
infrastructure.
NTIA received over 230 applications, totaling more than $2.5
billion in funding requests across 49 states and U.S. territories.
We expect to make the awards for this program later this month.
Thanks to the historic and bipartisan investments you have made,
we're moving towards our goal of connecting all Americans to
affordable, high-speed broadband.
We know that for our economy, businesses, and workers to be
competitive in the 21st century economy, we need to get this done.
I'm eager to work with you in the months ahead and look forward to
answering your questions about the vital work being done at the
Department of Commerce to close the digital divide.
Thank you.
Senator Shaheen. Well, thank you very much, Madam
Secretary. We will now have a round of 5-minute questions. And
as I said, we will go in seniority order on the Committee, with
some people coming virtually. I will begin.
As we all referenced in our opening statements, this is
funding that we want to see get out the door. And the timing is
really going to be dependent on a number of things, but you
mentioned the Broadband Equity Access and Deployment, the BEAD
Program, which is really dependent on the creation of those FCC
maps. And the concern that we have in New Hampshire is not just
when that is going to happen, but also how accurate those maps
are going to be.
And I can tell you, previous maps that we have seen in our
State, and I am sure everybody has a similar story, have not
been accurate. They have not shown where the dead spots are,
and where the coverage really needs to be.
So can you speak at all--recognizing that this is not your
direct area of responsibility--but can you speak to what is
happening with the FCC, in completing those maps, because so
much of what needs to happen depends on when we get those and
how accurate they are going to be?
BROADBAND EQUITY ACCESS DEPLOYMENT (BEAD) MAPPING
Secretary Raimondo. Yes. So as you say, the maps are vital.
I mean, Senator Moran mentioned over-building. The mission
here, as explicitly laid out in the statute, is to prioritize
the unserved. At the end of this, shame on us, on me, if there
is any one unserved left. So, the maps will tell us who is
unserved and who is underserved. And that is why we can't
deploy any of this money until we have the accurate maps.
As you say, this is in the purview of the FCC. I will tell
you we are in constant communication with the FCC. I have
spoken with the Chairwoman myself, I have met with her. Alan
Davidson, newly confirmed--thank you--is already in contact
with her.
They represent that probably summer, you know, this summer,
they will have the maps. I will say this, I do have confidence
they will be, more accurate than in the past. The past, they
have been broad by census tract, these are down to the
household, and we are incorporating our census data from the
Commerce Department into the maps. But for a more detailed
answer, I would refer you to the Chairwoman of the FCC.
Senator Shaheen. Thank you. I appreciate that. Obviously
one of the other aspects of that is what the challenge process
might be, if there is concern about accuracy. Can you speak to
what the Department is thinking about in terms of any kind of a
challenged process for those?
Secretary Raimondo. I think that--you know, again, that
this really is in the FCC's purview. Our role is take the maps,
run it through the statutory formula, get the State allocation,
and then run the program. But I think there will have to be
some, you know, challenge process simply because, as I said
before, we do have to listen to every stakeholder, and it is
$65 billion.
Senator Shaheen. Mm-hmm.
Secretary Raimondo. Like, I have told my team yes, you have
to go fast, but you really have to get it right.
Senator Shaheen. Well, thank you. I appreciate that. As I
said in my opening remarks, sort of jokingly, but it was
serious, because in drafting this legislation we did choose the
NTIA to lead the program because of its crucial coordination
role with other Federal agencies, and particular with the FCC,
with the USDA, NTIA maintains regular contact with States
through their State broadband offices.
So how does the NTIA plan to address those coordination
issues? And can you assure States that there will be some
opportunity for input as you are developing these plans?
Secretary Raimondo. Yes, absolutely. So a few thoughts: It
is true, as you say, the USDA has some money here, Interior
does, Treasury does, we do. Our goal is to the extent possible,
have NTIA be like a one-stop shop. We cannot be asking
Governors, and mayors, and Tribal leaders to deal with the
alphabet soup of government. We have to make it easy. So the
way we plan to do this is we are going to have a single-point
person at NTIA in charge of every State, one person. So I know
when I want to know everything about New Hampshire, I go to the
New Hampshire person.
Right now we are in the middle of intense stakeholder
engagement. In fact, we have a request for comment, which is
open right now. I spent the weekend with the Governors at the
Governors Association, the weekend before with the mayors at
the Conference of Mayors, we are doing everything we know how
to do to encourage robust stakeholder engagement. The last
thing I will say is, the way this is going to work is every
State has to give us a State plan, which will be made public.
We are requiring them in that plan to lay out all the Federal
monies they are using for broadband so we can see it all in one
place.
Senator Shaheen. Great. Thank you. I am out of time; I have
lots more questions, but I know that many of my colleagues will
get to those.
So Senator Moran.
Senator Moran. Chair, thank you.
Secretary Raimondo, let me talk about the funding formula.
The initial Broadband Equity, Access, and Deployment (BEAD)
Program has an initial $100 million to each State, followed by
an amount to be determined by unserved areas in the State, the
purpose of the formula is to provide the States with the most
unserved areas with the most funding, something I fully agree
with.
One issue that I foresee is the uncertainty regarding
whether currently unserved areas are still going to be
considered unserved, if a separate Federal broadband program
like the FCC's Rural Digital Opportunity Fund has awarded
funding for those areas, but a network has not yet been built
out, creates the risk that some States could lose out on a
significant of money as RDOF awards cover broad swaths of some
of those--some of our States.
The risk is compounded if previously identified projects
ultimately fail--fails to deliver the money, RDOF money. So a
concern I raise with you is: Does RDOF, where they intend to go
but have not gone, does that eliminate that area from being
unserved? Will there be--maybe there is a response from you
before I go on. Maybe it is just an issue to raise with you.
Secretary Raimondo. Yes. Yes. So you are saying RDOF is
supposed to have covered these areas hasn't yet, will they be
counted as served in the map?
Senator Moran. Right; if those areas or those States get
left out, because RDOF may do something.
Secretary Raimondo. Yes.
Senator Moran. And hasn't done something. And I guess if
the--if the word is they may do something, it is also they may
not do something.
Secretary Raimondo. Right, right.
Senator Moran. We need to make sure that those broad swaths
of areas of States across the country are not excluded.
BEAD FUNDING
Secretary Raimondo. I understand. First of all, I agree
fully and completely. Again, my job is to make sure everyone is
covered at the end of this. By the way, this is exactly why we
are doing so much stakeholder engagement, and why we are
obsessed with getting to people on the ground, which is what I
told the Governors. I have to look into this and talk to the
FCC and get back to you. And I promise you I will do that. My
staff will follow up with you.
By the way, it is exactly the sort of excruciating detail
that we are in the middle of figuring out, which is why these
engagements and request for comment are so important.
Senator Moran. It is a reason I am so pleased Senator
Shaheen has called this hearing now.
Secretary Raimondo. Yes. Yes, yes.
Senator Moran. Instead of after the fact.
Secretary Raimondo. Yes. I would say many of the policy
decisions, of which there are many, we are in the process of
figuring out how to implement, and that is why we are doing
this request for comment now. So I will follow up.
Senator Moran. Somewhat related to that, my comment and
your follow up is, does the Department plan to calculate the
funding allocations to States using any criteria beyond the
size of the unserved population?
Secretary Raimondo. So the formula is, as you know in the
statute, unserved, there is a 10 percent set aside for places
that are hard to reach, and that are expensive, so that is
additional on top of--on top of the formula. And then we have
the digital equity grants on top of that, and then the middle
mile on top of that.
Senator Moran. I think my--my question just to plan in your
mind is, do I need to be concerned, or that there is some
definition of unserved beyond unserved, and maybe we will see
how that, I mean----
Senator Murkowski. Alaska.
Senator Moran. Alaska, just totally unserved, right?
Senator Murkowski. But it is one State, you know. Okay,
yes.
FUNDING ASSISTANCE TO STATES
Senator Moran. So we want to make sure that unserved means
that really it is unserved. Let me, before I lose my time, and
I hope to have an opportunity to ask some additional questions.
I am going to tell you the Kansas Broadband Development
Office--and that is the person that I think will be your point
person in Kansas--they have a staff of two, and their ability
to have the resources necessary early on to do their job is
important.
The law outlines that--how these offices can receive an
initial amount of funding, and dictates that the Department
aids these offices throughout the process of applying for a
grant and executing the program. Any explanation on what the
department already plans to do to support State broadband
offices during deployment? And how can NTIA allocate its
resources to prepare to meet what will be a significant demand
for technical assistance from the States?
Secretary Raimondo. Yes. Thirty-six States have broadband
offices, and they vary significantly in quality. The good news
is NTIA has a long history of working with these States, and
has a pretty good feel for who needs more technical assistance.
The way we are going to do this program is we are aiming
towards a May 16 Notice of Funding Opportunity. After that the
State has to give us a letter of intent that they want to
participate. Then there is a $5 million planning grant, and
that will then begin heavy technical assistance. And if you are
telling me, Kansas only has a couple of people I would think
that $5 million and heavy technical assistance will help shore
them up.
Senator Moran. But they are very high quality people.
Secretary Raimondo. I am sure they are. Yes.
Senator Moran. Thank you. Thank you, Madam Chair.
Secretary Raimondo. I will be happy to follow up. And we
are out of time. I would like to visit with you, and get the
details of this.
Senator Moran. Wonderful. Thank you.
Senator Shaheen. Thank you. Senator Leahy.
Senator Leahy. Thank you, Chair Shaheen.
Governor--I keep finding myself calling you governor. Madam
Secretary, I am delighted to have you here. I think you heard
that--in your State, and actually every one of us heard in our
States during the pandemic, with schools being closed, work
being done remotely, and all that. Then we had in just 1-year's
time, we had probably a 10- or 15-year change in society on how
we needed broadband.
We have a system in Vermont called Communications Union
Districts, CUDs, which allows communities near each other to
band together, so they can identify, they can finance, and
fulfill local broadband infrastructure needs. And currently 206
Vermont municipalities belong to one or more of these CUDs,
which is 64 percent of the State's populations, and is 91
percent of the unserved locations.
And it has been seen as a pretty good model of how you
create a community-owned entity to deliver broadband. Now, how
can these Vermont CUDs benefit from the broadband provisions in
the infrastructure law? And I ask that because you have rural
areas that do not have extensive financial histories. How can
they plug in and be able to use these new programs?
BEAD FUNDING TO VERMONT
Secretary Raimondo. Thank you. So as I said in the
beginning, the reason this program is structured this way is
because there is no one size fits all. And in rural Vermont we
are going to have to have a different solution than in urban
Rhode Island. Nonprofits, municipally-owned co-ops or utilities
are all eligible for these funds.
So your State will have to put together a State plan, which
we will have to approve, and based on what you are saying, it
sounds like though the Communications Union Districts would be
included in the State plan, and depending on the details, could
be eligible for funding.
We are trying to encourage competition, so we are asking
every State to have a competitive process. We are requiring
every provider who gets money to deliver an affordable plan.
And I think in a lot of rural places, it will be the, you know,
co-ops and municipalities that get the money.
Senator Leahy. Yes. I look at the fact. On the many, many,
many, many, many times that my broadband service is not
working, I can get in the car and drive 5 miles to my office in
Montpelier and have perfect broadband. But not everybody can do
that. If you are a child home from school, you can't.
Inaccurate broadband maps have hindered our ability to build
out our broadband infrastructure for years, if not decades.
We tried to update our data map. Would your Department
consider devising a mechanism that allows States to harmonize
data maps? So States like Vermont don't lose any strategic
advantage, use money with confidence by utilizing State maps
that already exist?
Secretary Raimondo. Well, I would say this. Now States
should be looking at their maps, you know, getting ready,
getting their teams ready, making sure the permitting in the
State doesn't get in the way, but the maps that we have to use
will be the FCC-produced maps.
Senator Leahy. Well, we should talk more about that,
because I want to make sure that these are accurate everywhere.
I mean, whether it is obviously in Rhode Island, in New
Hampshire, or Vermont, or Kansas, or anywhere else, because you
have the last-mile broadband infrastructure that is a
significant obstacle. And most our rural areas lack adequate
access.
The $65 billion made broadband available, including $42.5
billion for State broadband deployment, we need coordination of
maps. I don't expect you to have the magic answer right now,
but coordination of maps that work, and everything else, and
some way of facilitating this last mile.
Secretary Raimondo. Mm-hmm.
Senator Leahy. As I said, I can drive five miles from my
office, and have something that works every time. But if you
are a child in school, and what not, or an employee or
something like that, you can't do that.
Secretary Raimondo. Yes. I agree fully and completely. And
hopefully, you know, the reality is in a lot of these places it
hasn't made economic sense for the ISPs to do that, and that is
the whole point of using this money to make sure the last mile
is covered everywhere. So I will look forward to following up
with you.
Senator Leahy. Thank you. Well, we will continue to work
with your office. And again, it is a delight to see you here.
Thank you very much.
Secretary Raimondo. Thank you.
Senator Shaheen. Thank you, Senator Leahy.
Senator Murkowski.
Senator Murkowski. Thank you, Madam Chair.
Welcome Madam Secretary. Good to see you. Thank you for all
you are doing, and for being so responsive on so many of the
issues that we have had discussions about. So you are talking
about the mapping and the last mile, as we have had many
discussions in Alaska. So much of our concern is with the
middle-mile infrastructure.
Secretary Raimondo. Mm-hmm.
BEAD FUNDING TO ALASKA
Senator Murkowski. And you know, we have got good support
within the infrastructure bill, a billion to deploy middle-mile
projects. So we are excited about that. But a couple of
questions on that, one specific to the mapping. I have got a
little bit of concern about the mapping requirements versus the
timeliness of getting funds out the door.
Everyone wants to get the money out the door, but making
sure that we have actually accurate maps I think is going to be
critical, particularly for us in ensuring the intent of the law
to serve the unserved before the underserved is met.
And so it is going to take a little bit of time to do it
right. We understand the urgency, but what I am hoping is that
we can get some assurance that NTIA is going to be sensitive to
the diverse needs that we have in different States to get to
the right solutions here. And you know, maybe this requires a
little bit of flexibility, a little bit of interagency
coordination, but we would hope that you are understanding some
of the challenges that we face in a State like Alaska.
Secretary Raimondo. Yes, I do. I mean, you and I have
spoken about this. Alaska is unique, having said that most of
all these States are, but I understand the massive geography,
the difficult topography, not that many people. We are not
going to put the money out before we have the maps.
Senator Murkowski. Okay.
Secretary Raimondo. We won't, we can't. You know, as I
said, there will be the $5 million planning grant, and we will
get to work, but we can't let the money flow until we have the
maps.
Senator Murkowski. And I appreciate what you have shared,
but I also know that I am going to have people back home that
are going to be panicked, because they are going to see other
regions of the country that might be receiving awards first and
figure, wait, we are going to get left behind again. What we
want to be able to assure is, we are moving with urgency, we
are doing--we are getting the accuracy that we need for this
mapping, and again, we are paying attention to this middle
mile.
Secretary Raimondo. Yes, I understand. Well, we will do
more stakeholder engagement. I mean, I think there is no
substitute for communication, and continuing to communicate
with the message that you say. I will say that, you mentioned
there is the billion dollar set aside for middle mile, which is
true, but Alaska can choose to spend its BEAD money on middle
mile as well. So if the Alaska broadband plan identifies middle
mile as the biggest problem, I would expect they will use much
of their BEAD money to build out middle mile. Plus, like you
said, the middle mile.
Senator Murkowski. Yes. Let me turn to Tribal broadband,
and the connectivity program. I am going to submit for the
record, a letter that the Alaska delegation sent to you, Madam
Secretary, regarding the Alaska-based projects that are under
consideration for the Tribal Broadband Connectivity.
[The information follows:]
Senator Murkowski. You mentioned that there was $980
million in funding. This program had over $5 billion in
application by the deadline last September. We have got an
additional $2 billion in funding through the infrastructure
bill, but obviously the need is extraordinary out there.
So I am hoping that you can answer just a few procedural
questions here: With the additional $2 billion that is coming
for the Tribal Broadband Connectivity Program (TBCP), do
projects that have already been approved for funding that
haven't yet received any money, do they need to resubmit their
applications? And if so, how are you communicating that with
folks? Do you additional staff that you have added? How are
you--how are you letting people know about the availability
here?
TRIBAL CONNECTIVITY FUNDING PROCESS
Secretary Raimondo. So we are still figuring out the
specific answer to your question, which is: Do they have to
reapply?
Senator Murkowski. Right.
Secretary Raimondo. I think there is a lot of sense in
making them not reapply, for the reasons that you said, but we
are going through it, and I will have an answer shortly. We
think we are going to have to hire over a hundred people at
NTIA to administer all of these programs. And as you said,
there will be a single point person on Alaska. So we will have
to stay in close touch with them.
But you are right. I mean, I will say this. The $2 billion
maps with the $1 billion. So the money is for the same kinds of
things.
Senator Murkowski. Right.
Secretary Raimondo. And so we are looking hard at saying,
you don't have to reapply, and doing it on a rolling basis,
which is what we are doing with the $1 billion.
Senator Murkowski. That would be helpful if we can just be
in contact on that. And I am assuming that you are coordinating
with other Federal agencies, whether it is USDA, or others.
Secretary Raimondo. Yes.
Senator Murkowski. Or others, who have also got broadband
funding. As again, we had a lot of Tribal set aside, so how we
are working to make sure that everybody is in sync, is
important.
Secretary Raimondo. Yes. Yes. Thank you. We have, so you
know Mitch Landrieu is working in the White House. We have a
task force on exactly this. I meet regularly with Tom Vilsack
and Deb Haaland, our teams do, to do what you are saying.
Senator Murkowski. Super, thank you. Thank you, Madam
Chair.
Senator Shaheen. Thank you. Senator Reed.
Senator Reed. Thank you, Madam Chair. Welcome, Madam
Secretary.
Along with the funding for broadband programs themselves,
in the Infrastructure Act, we set aside funds for administering
the programs. In fact, your response to Senator Murkowski about
how many people you are going to have to hire, underscores
that. But if we have to live under a full year continuing
resolution, how might this affect the roll out of the program?
FUNDING UNDER A CR
Secretary Raimondo. Yes, thank you for the question. So in
this particular program I don't think that there will be huge
disruption because the program has been funded, $45 billion for
the entire program. I will say, though, I appreciate the
question because it would be very significantly disruptive to
much of the rest of the work that the Department does, and work
that you all care about.
So--we wouldn't receive additional funding to support next-
generation of weather, climate, and space, weather satellites,
I know you all care about climate change deeply. We wouldn't
have additional money for the desperately needed cybersecurity
upgrades that the Department needs, and to mature cybersecurity
practices across the Department, we wouldn't have the money to
support the 2022 economic census, the absence of which could
reduce the census quality, which has great impact. We wouldn't
have the money to improve the National Weather Service's
Integrated Dissemination Program, which delivers forecasts,
watch, and warning information for public emergencies.
So it would be very significant and disruptive to things
that, in some cases are, you know, lifesaving, when it comes to
predicting these severe weather events.
Senator Reed. Well, thank you, Madam Secretary. There are
multiple aspects of broadband. One is the technical aspect of
having access to it. The other issue is being able to pay for
it. And we realize in communities like Central Falls, and
Olneyville, and I could list too many more.
AFFORDABLE CONNECTIVITY PROGRAM AND DIGITAL EQUITY GRANTS
Secretary Raimondo. Now he is talking my language.
Senator Reed. I know, I know. So how can programs like the
Affordable Connectivity Program, and the Digital Equity grants
created by the Act help low-income families get connected, and
make the most of these connections?
Secretary Raimondo. Thank you for asking the question.
Affordability is just as important as access, because what good
is it to have broadband in your neighborhood if you can't
afford it? What good is it, if it is in the Community of
Central Falls, but there is no hookup to your, you know,
housing subsidized high rise? It is no good.
So we are very serious about affordability. First of all,
every plan, every single ISP who receives any money from this
must certify to us that they offer a low-cost plan. And we are
going to define low-cost plan in a way to make sure it is
really low cost. Now, the FCC has the affordability program
that you mentioned, which is a $30 voucher.
Senator Reed. Mm-hmm.
Secretary Raimondo. So as we define low cost, we know that
means ``free'' for some people, so we are going to be looking
at that $30 number. We are going to work very closely with the
FCC to get that affordability program working, or encouraging
States to advertise it. And then on top of that, as you say,
there are the Digital Equity grants, I think in a place like
Rhode Island, which I happen to know very well, pretty much
everyone has fiber. You know, there is no rural Rhode Island,
so----
Senator Reed. Block Island.
Secretary Raimondo. Okay, Block--fair enough, fair enough.
But, you know, relative to Maine or Kansas. But in any event, I
think the money will be used for providing hookups to the
apartment building, providing computers for kids, providing
laptops, providing digital literacy skills; and so, I think all
of that goes to affordability in a way that will make sure this
is not just accessible, but affordable.
STATE PREPARATION FOR FUNDING
Senator Reed. Finally, quickly, what should the States and
other entities that are going to be beneficiaries to the
program, what should they be doing now for successful
applications?
Secretary Raimondo. Yes. They should be shoring up their
broadband offices. You know, every State should be looking at
their broadband office. They should be looking at their
permitting policies to make sure that we can smoothly lay the
fiber and do the construction work we need to, they should be
thinking about job training programs. We are going to have to
train a lot of people.
We think we are going to create over 100,000 jobs across
the country with this. They should be doing stakeholder
engagement, you know, going to Block Island and finding out
what really are the issues. And they should be talking to us,
calling us to ask questions so we can provide technical
assistance.
Senator Reed. Thank you, Madam Secretary. Thank you, Madam
Chair.
Senator Shaheen. Thank you, Senator Reed.
Senator Collins.
Senator Collins. Thank you. Madam Chair. First of all,
Madam Secretary, welcome.
Secretary Raimondo. Yes.
Senator Collins. And I want to reiterate my appreciation
for your extraordinarily hard work with Senator Shaheen, and
myself, as well as other Members of the Committee, as we
finalized the broadband provisions of the Bipartisan
Infrastructure Bill last year. I think the three of us spent
endless hours negotiating, and it was indeed a pleasure to work
with you.
The State of Maine is ready to go. And the obstacle is an
issue that is already been brought up by Senator Shaheen, and
others. And that is that the FCC must complete its overhaul of
the broadband coverage maps. And that is really important
because the current, woefully inadequate FCC maps, would lead
to an inaccurate allocation of funding, and overbuild building.
The reason I am concerned, and signed a letter that the
Ranking Member, Senator Moran, circulated is that the Treasury
Department, which has jurisdiction over of the American Rescue
Plan broadband money recently issued a final rule that removed
a requirement that the funds be targeted to unserved and
underserved areas. Can you give us an insurance today that
Federal funds that we provided through the Bipartisan
Infrastructure Bill will be prioritized to unserved, and then
underserved areas?
FUNDING PRIORITY: THE UNSERVED AND THE UNDERSERVED
Secretary Raimondo. I can. The Bipartisan Infrastructure
Law which, as you say, we worked hard to negotiate, provides a
crystal-clear framework to prioritize unserved then
underserved. And so, yes, that is the way we will do it. Also,
I share, you know, you mentioned overbuilding. I mean, it is
vital that we first get broadband to everybody, and we are
going to do that so that we don't run the risk of, quote/
unquote, ``overbuilding and running out of money.''
Senator Collins. Thank you. There are two other issues not
directly related to this hearing, but under your jurisdiction,
that you probably will not be surprised that I am going to
bring up to you today. One has to do with the duties and
tariffs on softwood lumber. In November of last year the
Commerce Department, approximately, doubled the final duty
rates on imported softwood lumber from Canada, increasing the
rate to 17.9 percent. And that applied to sales made in 2019.
Just yesterday, Commerce announced an 11.64 preliminary
duty rate for sales made in 2020. Now, that is a reduction in
tariff rates, but I am still concerned that these high rates
will hurt a lot of home building in Maine, and Maine
businesses, many of which work very closely with their Canadian
partners at sawmills right across the border.
And it obviously also affects the availability of
affordable housing for millions of Americans. We used to have a
Softwood Lumber Agreement with Canada. It expired in 2015. What
is the Commerce Department doing to restart those negotiations
to bring stability to this market, help make homebuilding more
affordable for Americans, and reduce tensions with Canada?
Secretary Raimondo. Yes. Thank you for the question. I am
not surprised. I admire your advocacy. So, in this regard, the
Commerce Department's role is relatively limited in so far as
the assessment of these duties is largely, you know, formulaic
and mathematical. And we operate in a quasi-judicial capacity,
applying the formula to assess the duties.
I have, you know, reached out to USTR after our last
conversation. And you know, do support efforts to find a more
lasting solution to this problem, because as you say, you know,
whatever we do with the AD/CVD cases, it is temporary.
Senator Collins. I know my time has expired. I do hope we
will do a second round.
Senator Moran. I don't have control over that but I, too,
hope we do, because I have some tariff questions to ask myself.
And maybe, Senator Collins, we can talk to the Chairwoman and
see if we can have our trade ambassador in front of the
Committee before long as well.
Senator Coons.
Senator Coons. And thank you, Senator Moran. As you can
tell, Madam Secretary, this is a wonderfully collaborative
Committee that has gotten a lot of good work done under the
leadership of both parties. Over the last couple of years, it
has been a real joy to serve on this subcommittee. I am
grateful for your focused and effective leadership of the
Department at this moment of historic investment, in making
sure that Americans, Delawareans, Rhode Islanders, many others,
have access to broadband. Like the State of Rhode Island,
Delaware has areas that, I would argue, are genuinely rural,
like Block Island.
We have about 11,600 Delaware families that have no access
to Internet services broadband at all, but we also have
significant urban areas where affordability is the key issue. I
look forward to staying in contact with you. You raised a
number of issues, permitting, and the permitting process in
rural areas, skills for installers, servicers, and so forth,
and how we are going to update that, and making sure that
between what the Department does, and what FCC does, that we
produce a result that is genuinely affordable.
Let me just briefly ask. Do you think making structural
investments that reduce cost, rather than providing monthly
value vouchers is going to be important to ensuring
affordability for the long term?
ENSURING LONG TERM AFFORDABILITY
Secretary Raimondo. I do. I think it is a combination. As I
said, affordability is non-negotiable because if it is $100 a
month for broadband, it might as well not exist. You can't
afford it. I think it is hard to generalize because it is
different in every place.
Senator Coons. Yes.
Secretary Raimondo. So in some places affordability,
fundamentally means laying the fiber and, you know, subsidizing
the companies to lay the fiber in places that it doesn't exist,
so that it will be affordable.
Senator Coons. I look forward to working with you on that.
I couldn't agree more with our President's statement that the
economy can't fully recover until all Americans can fully
participate. As you know, developing a critical technology like
broadband, making progress towards 5G, and some day 6G,
requires voluntary standard-setting activities, and the
patents, and robust IP protection that underlie them to
encourage investment in R&D.
I want to make sure we aren't taking steps that would
weaken the patent system. We have worked well together on
advancing a balanced nominee to run the patent and trademark
office. USPTO, NIST, and DOJ Antitrust have recently published
a proposed revision to the existing policy on remedies for
standard essential patents that I think harms our national
security interest, global competitiveness, and threatens to
harm the patent system.
I hope you can commit that we will ensure participation by
Senate-confirmed leadership at NIST and PTO, and adequate
consideration of these sort of balance of equities moving
forward. Is that your inclination, Madam Secretary?
Secretary Raimondo. Absolutely. You and I have discussed
this. These are complicated and vital issues. I am hopeful very
soon we will have the Senate-confirmed Head of the USPTO.
Senator Coons. Me too.
Secretary Raimondo. And I think she will be terrific
engaging with us to figure this out.
Senator Coons. Thank you, Madam Secretary. Let me, last
point if I can. I am really excited that the House is taking up
their version of the U.S. Innovation and Competition Act. I
think getting the Innovation and Competition Act out of the
Senate with a robust bipartisan vote was one of the most
significant things we did last year.
Secretary Raimondo. Mm-hmm.
Senator Coons. And I am particularly pleased, the House
version includes $52 billion in the CHIPS for America Fund,
which would be a key boost to manufacturing, and our capacity
to do advanced manufacturing for semiconductors. Can you just
briefly help us understand, in a concrete and direct way, how
the passage of that bill by the Congress, and the enactment of
it, by signing into law by the President, will actually improve
our ability to compete with China and strengthen our
manufacturing base here at home?
CHIP MANUFACTURING IN AMERICA
Secretary Raimondo. Yes. Thank you. I cannot overstate how
important it is. Right now the United States of America does
not produce on our shores, any leading edge, more sophisticated
semiconductors, zero. We rely upon Taiwan for 65 percent of
those.
I mean, need I say more? Those are the CHIPS we need in
military equipment, high-end computing, communications
equipment, and we are utterly dependent on one company in
Taiwan.
Senator Coons. Mm-hmm.
Secretary Raimondo. So I am out of time. We could go on
extensively. I won't. It is a huge national security need, and
I am very hopeful the House passes it this week.
Senator Coons. I appreciate your clarity.
Secretary Raimondo. And I hope it is bipartisan.
Senator Coons. I hope so too. I look forward to working
with you on it. And I appreciate your clarity. Thank you.
Senator Moran. Senator Boozman is next, followed by Senator
Capito, but I would guess that they are--I don't think they are
on--appearing by technology. So I call on Senator Hagerty.
Senator Hagerty. Well, thank you, Ranking Member Moran. I
appreciate that. And Secretary Raimondo, it is good to see you
here; thank you for being here today.
Broadband deployment is very important to my home State of
Tennessee, particularly in our rural areas. And I know that my
colleagues have had many discussions with you about that. I
would like to shift then to another area that is related to
that, and it has to do with our competitiveness with respect to
chip technology. And I hear a great deal about our chip
shortage at home.
I think that you are an advocate of making certain that we
are competitive in that arena. And what I would like to speak
with you about is the Federal regulatory burden that has to do
with permitting chip manufacturing here in the United States.
My colleagues have passed legislation that has put a
significant amount of money in place to support manufacturing,
but the process itself is something that is quite concerning to
me.
When I learned about the chip manufacturing shortage, I
actually undertook to call the leaders of chip manufacturers
around the world. Some of them came to see me, others just
spoke with me by phone, but when I asked them what stands in
the way of manufacturing here in the United States, one of the
greatest obstacles is the timeline for permitting here in
America.
And as I talked to them about it, they underscored the fact
that the rate of technology development in their industry is so
rapid that they can't accommodate a long Federal regulatory
permitting timeline. And I have a feeling that you probably
feel the same way about this, that you would like to see us
have a more concise, predictable, and effective regulatory
process. Is that correct?
Secretary Raimondo. Yes. So I certainly agree with you that
we need to have a hard look at permitting, because in many
cases for these sophisticated projects, it could take years and
we don't have years.
Senator Hagerty. Mm-hmm.
Secretary Raimondo. So I am interested to learn more and do
more on how we can, as you say, streamline the process.
Senator Hagerty. I think we have a great opportunity to
work together. I heard the same thing about the process being
denominated in years, and again, the rate of technology
development just doesn't accommodate that. It makes us not
competitive with these projects here in America.
Secretary Raimondo. Exactly.
Senator Hagerty. So I have very recently introduced
legislation with Senator King, and with Senator Portman, to
expand the existing FAST-41 permitting process. It is a Federal
permitting coordination program, and we expanded it to cover
key technologies, including semiconductors, chips.
I think that the FAST-41 Program has been successful
improving the Federal agency permitting process for
infrastructure projects. And it was recently made permanent in
the infrastructure bill just passed. And my bill will allow for
key technologies, like semiconductor manufacturing, to fall
into that same framework, and using the existing Federal
program that is in place to help then, deal with the permitting
process.
That bill just recently passed the Senate unanimously, 99
of my colleagues joined me; so I am hopeful that it will pass
the House very soon, and that we will get it to the President's
desk for signature.
So I would love to get your commitment, Secretary, to take
a look at the legislation that we are--that we are passing, and
hopefully get your involvement in making it effective.
Secretary Raimondo. Yes. I do commit to looking at it. It
sounds very interesting. I share the concern for the problem,
and I will look at it and get back to you.
Senator Hagerty. Yes. I appreciate that. And I think we
will find some great opportunity to make some real improvements
here for America. On a related topic, in December of 2020, the
Commerce Department took an important step to protect our U.S.
national security, and our economic security. When it added
China's Semiconductor Manufacturing Corporation, SMIC is how it
is usually called, to the Commerce Department's entity list.
COMMERCE DEPARTMENT ENTITIES' LIST
That is the list that restricts foreign entities from
accessing certain key U.S. technologies, as you know. The
Chinese Communist Party considers SMIC to be one of China's
national champion companies. SMIC has got very close ties to
the Chinese Military, moreover SMIC and Huawei, reportedly,
maybe teaming up to build a $10 billion chip fab facility.
Other Federal departments have noted that companies
continue to export important U.S. technologies to SMIC, because
the entities' list restrictions on SMIC are phrased too
narrowly.
In October of 2021, Reuters reported that the Commerce
Department disclosed to Congress 188 licenses valued at nearly
$42 billion that were green-lighted for semiconductor
manufacturing were for SMIC.
And yesterday, Senator Cotton and I sent a letter to you
urging your department to close the loophole, to broaden the
parameters so that we can shut this loophole down. And I would
look forward to working with you on getting those loopholes
closed, to ensure that the entity listings really accomplish
their intended purpose, and prevent Chinese Military access to
our key technology. So I would ask you to work with us to deal
with these foreign suppliers that may be undercutting the
situation.
Secretary Raimondo. May I reply, yes?
Senator Shaheen. Please.
Secretary Raimondo. So I haven't seen the letter, but I
will read it.
Senator Hagerty. I understand. Yes.
Secretary Raimondo. And get back to you.
Senator Hagerty. Mm-hmm.
Secretary Raimondo. I share your deep, deep concern with
doing everything we can to deny China our technologies; in
fact, since I have been Secretary, we have added 81 new Chinese
companies to the entity list, and they are effective. You know,
in the time that we have put Huawei on the entity list, their
revenue has been down by 30 percent.
Senator Hagerty. Mm-hmm.
Secretary Raimondo. So I am out of time. I will look at it,
your letter, and you know, get back to you.
Senator Hagerty. Thank you for looking at that with us. I
think we have some room to improve there. And I think if you
look at these two steps that we have discussed, making it
easier to permit chip manufacturing here in America, and making
it tougher for China to access our technology will have a very
significant impact on the national security.
Secretary Raimondo. Excellent. Thank you.
Senator Hagerty. Thank you.
Senator Shaheen. Thank you. Senator Schatz.
SUBMARINE CABLES FOR CONNECTIVITY
Senator Schatz. Thank you, Chair. Thank you, Secretary, for
being here. I know that you understand the unique
communications challenges that Hawaii, in particular, faces. We
are the most isolated, populated place on the planet. And of
course we rely on submarine cables for connectivity to the rest
of the country, and the rest of the world. But also we rely on
submarine cables for connectivity within the State. And that is
an important distinction to make, as we think about definitions
in the infrastructure bill and elsewhere.
And that is why Congress made sure that submarine cables
are an eligible expense for middle-mile broadband in the
Infrastructure Bill. Can I count on you to work with NTIA and
my office to meet Hawaii's broadband needs, which are
understandably different, but sometimes take 3 or 4 extra
minutes to explain?
[Laughter.]
Secretary Raimondo. Absolutely, yes. In fact, I was with
Governor Ige this weekend. I spoke to the Governors about
broadband, and he brought this up specifically, and I expect
that this will be in Hawaii's plan through the BEAD, you know,
process. But absolutely we will work with them.
TRIBAL CONNECTIVITY FUNDING
Senator Schatz. Thank you very much. As Chairman of Indian
Affairs, I appreciate that the department has been working hard
to implement the first round of funding for the Tribal
broadband connectivity program, but there are still challenges
in pushing the money out quickly enough, and with the
flexibility needed for the unique needs on the ground. What
have you learned from the first round? And what can Congress do
to ensure that funds in this coming round are issued as quickly
as possible?
Secretary Raimondo. Yes. Thank you for the question. And I
acknowledge that we are a little bit behind on those Tribal
deadlines, but as I said to the Chair, our mantra is, ``Get it
right.'' What have we learned? We learned that we had to cure
about 70 percent of the initial applications from Tribal
communities, which means a lot of technical assistance, and
that takes time.
And so, we do that, we have learned how to do it, but it
does take time, and we want to make sure if everyone is going
to participate, we want to give the Tribes a chance to get the
money, which means we have to help them improve their
proposals.
Secondly, we have learned that you have to really do
stakeholder engagement because the needs and conditions in
Tribes are just different. And so, we have to get out in front
of it and listen even more. I will also say, on a personal
level, I have learned just how heartbreaking this is. 50
percent of people on Tribal lands have no broadband, and I have
heard people tell me stories of a teacher having to get in her
car and drive school worksheets once a week to the kids,
because otherwise they couldn't go to school at all. So we are
very deeply committed to it.
Senator Schatz. Thank you. And I think a couple of
thoughts. First, Tribal consultation, consultation with native
peoples, because the people of Hawaii are not a federally
recognized Tribe, but still have trust obligations under--under
Federal law. But Native consultation is the key principle here,
and it could be turned into a kind of TA, and that is fine. But
it does seem to me that the consultation on the frontend is
both logistically smart, but it is also consistent with Federal
policy, which is to enable Tribal consultation, and the sort
of, ``nothing about me without me'' and understanding that some
of these Tribes have extraordinary resources, and no problem to
apply for a Federal grant.
Secretary Raimondo. Yes, yes, yes.
Senator Schatz. Some of them don't. Some of them, the
librarian is the sheriff, is the--you know, and people are
trying their very best to do multiple jobs in extraordinarily
difficult circumstances. So I appreciate your attention to
that.
COASTAL RESILIENCE AND HABITAT FUNDING
Let me finish with NOAA. I really appreciate your passion
for oceans. We share that passion, only one of us is from the
Ocean State. And so I really appreciate the work you are
willing to do. The Infrastructure Bill has $1.3 billion over 5
years for Coastal Resilience and Habitat Funding.
If you can just give me a couple of thoughts about how you
are thinking about that? And then specifically, to the extent
that it is infrastructure, how you are going to work with DOT,
and the Army Corps, and think through, you know, green
infrastructure, not as a slogan but as, for instance, a better
coastal inundation prevention strategy, than some of the stuff
that the Army Corps is doing in the first instance.
And that this idea of ecosystem services is not some pie-
in-the-sky, you know, conservationist term, it is actually a
pretty smart way to manage risk if we do it right. So could you
give me your thoughts on that?
Secretary Raimondo. I mean, you said it much better than I
ever could. And in this respect, we have the 18 programs
related to costal resiliency, which are vastly oversubscribed,
well run through our existing NOAA offices, hugely
oversubscribed. So, this additional money we plan to run
through the existing NOAA program offices and meet the need
that previously has gone unmet.
We are targeting, you know, summer to start getting this
money out the door, but it is intended to do what you said. You
know, and I did see this in Rhode Island. Like, resiliency, and
adaptation, and planning is--you know, communities know how to
do it. They do--they need our help and our money to do it.
Senator Schatz. Thank you very much.
Senator Shaheen. Thank you, Senator Schatz.
Senator Manchin would like to ask questions, right now he
is still in an energy hearing, but both Senators Collins,
Moran, and myself have expressed an interest in a second round.
So we will go ahead with that. And when Senator Manchin comes
on, we will go to him for questions.
JOB CREATION FOR INFRASTRUCTURE PROGRAMS
I would like to pick up first on the workforce question,
because you pointed out you are going to need to hire over a
hundred people just in NTIA to administer the infrastructure
programs. So I have heard that in New Hampshire, as we are--as
communities are thinking about how to make better use of the
funding that is coming in from the infrastructure proposal. And
as we think about how do we get all of the workers who are
going to execute the BEAD Program: How are we going to get the
small businesses that are going to provide the ISP companies
that we are going to need?
So can you talk a little bit about your thinking on this?
And how you see us being able to ramp up to do that; because in
States like New Hampshire, that is a huge challenge?
Secretary Raimondo. So let me try to answer it and make
sure I am answering that question. As I said earlier we--our
number suggests, we think we can create between 100,000 and
200,000 jobs in deploying the $65 billion. And that is across
the map, you know, construction jobs, technician, technical
jobs, everything that you have said.
As a result, we are allowing for flexibility for States to
use their BEAD money to do, for example, apprenticeships, job
training, recruiting, for exactly this reason. So we are
encouraging States, and the digital equity money as well, the
additional money. So we are encouraging States when they are
putting together their plan, it is not just about laying fiber,
it is about: What are the workforce needs that you will have?
And what are the, you know, worker training and other
initiatives that you are going to invest in, in order to meet
those needs?
Senator Shaheen. And are you going to be providing any kind
of guidance, modeling, examples, and how do you envision
working with the SBA, for example, who is going to be
important, I would think, in helping some of those small
businesses to develop, who can actually be in charge of hiring
the workers to do the deployment.
Secretary Raimondo. Yes. So again, I keep saying technical
assistance, but I can't say it enough. I mean, this is going to
be very important. We are hiring 120 people in NTIA to do just
this program. That is in addition to what they already have,
that is in addition to the other resources in Commerce. We are
going to have to really, in a very hands-on, granular way, work
with States, absolutely provide them support. We are having
community of practice meetings, we are sharing best practices,
we are going to loop in the Labor Department, and offer
guidance and help with, how to do apprenticeship programs, et
cetera. We have already started to do that, but it is that,
that will be a huge--that is what we have to do.
Senator Shaheen. I am really pleased to hear that because I
think that is going to be one of the biggest challenges of this
program.
Secretary Raimondo. Yes. By the way, I will say, I think
there is a huge opportunity here for women and people of color,
because if you look at who traditionally does these kinds of
jobs----
Senator Shaheen. Oh, absolutely.
Secretary Raimondo. It is disproportionately, not women and
people of color. And so deploying this much money, and creating
over 100,000 jobs, it is also about equity, and I am passionate
about this piece of the work.
MAXIMIZING FUNDING EFFICIENCY FOR LOCAL GOVERNMENTS
Senator Shaheen. Great. That is great to hear. I talked
about talking to our Municipal Association in New Hampshire,
and one of the questions that I got was, and I think maybe you
and I talked about this a little bit, but that is how States
local governments can maximize efficiency as they are looking
at the funding that is coming in.
For example, we have a lot of communities that are going to
be using the water and sewer money, they are going to be
looking for the broadband money, they are going to be looking
for transportation funding. And for a lot of those, they are
going to traverse the same route.
Secretary Raimondo. Mm-hmm.
Senator Shaheen. So their question was: How can we
coordinate those activities so that we know the money is coming
so we can plan to do? If there are pipes and lines going to a
certain area so that we can plan to do that digging all at
once.
Secretary Raimondo. Yes. So this is a real challenge. As I
said, the President has a task force which is led by Mitch
Landrieu. We meet weekly trying to coordinate on our end to
avoid exactly what you are talking about. And you know, as I
say, we are already meeting weekly, we are reaching out, we are
trying to make it one-stop shop, I don't think there is a
silver bullet on this. I think it is about being vigilant and
in constant communication with these States.
And now, somebody asked: What can Governors be doing now?
This was my message to Governors: Like, figure out how we
change permitting now. Or we don't want to be ripping up the
same road 3 times in a year. You live that as Governor too. So
we are asking Governors to start planning now to avoid some of
these issues.
Senator Shaheen. Thank you.
Senator Braun.
GOVERNMENT SPENDING
Senator Braun. Thank you, Madam Chair. Good to have this
discussion. I know when I travel, all the 92 counties in
Indiana, I hear three themes constantly, workforce, we are not
here to talk about that, affordable housing, and rural
broadband. And that is not to mention what I think is probably
the biggest issue we should be grappling with. And it is the
high cost of health care, because in running my own company, it
was the thing that ended up coming into the C-suite because it
never seems to get any better.
I think that is because we got a very uncompetitive health
care industry. Let us focus here. Let us focus on
appropriations. Let us put a little context into the whole idea
of appropriating.
Since I joined the Senate we have appropriated more dollars
outside of the appropriations process in this Committee than
within it. This includes more than $3.8 trillion we spent on a
bipartisan COVID bill, $1.9 trillion on ARPA. Additionally, the
Infrastructure Bill increased discretionary spending by $415
billion over the previous highway funding baseline, adding a
net deficit of $256 billion.
Put this in context, when it came through '08/'09, we spent
$800 to $900 billion. And that was a real systemic, economic
issue. And that seems like chump change in this day and age. I
think the process is broken. We don't do regular order. I mean,
we are talking about continuing resolutions because we have not
had the ability and the political will to get this done by
September 30 of 2021.
I mean, it is a system that has just gone completely out of
control. And I will put one other doozy in there. Just a little
over 3 years ago, we were $18 trillion in debt, now we are
nearly 30. And I think the American public needs to realize
that coming out of World War II, the highest percentage of debt
we had ever taken on as a country. We were savers. We were in
investors. We paid all of that off and built the interstate
highway system.
That seems like a big story of fiction now when we have
built in a trillion, now close to $1.5 trillion structural
deficits, largely driven by the gimmick of the biggest things
we spend money on here, would be not on discretionary, but non-
discretionary. Social Security, Medicare, Medicaid, other
things we so kind of ingeniously put on autopilot and don't do
budgeting regular order anymore.
What do you think needs to be done? We need rural
broadband. We would be much smarter block-granting that to the
States, because do you know what they do? They have balanced
budget amendments. Do you know what they do? I was on the
Budget, or on Ways and Means, and Roads and Transportation in
Indiana for 3 years, you always make your ends meet because you
are either statutorily, or by constitution, have to do it.
I would like your opinion, not on broadband. How do you get
this back into balance, when in my 3 years here, so many people
come to this institution wanting more, and don't even realize
that the worst news is down the road? When the Medicare Trust
Fund goes completely bust in 4-and-a-half years, after paying
into it since the '60s, Social Security in 10 or 11 years,
actuarially we have known it all, we have no political will.
I think someone in this room told me that in one of our
first budget meetings that is what we lack mostly. I would like
your opinion. You are in the midst of it. We are feeling no
current pain. How do we get this institution back into a
respectable place where people can count on it in the long run?
Secretary Raimondo. Well thank you, Senator. I would say,
as a Governor, I had to balance the budget every year, and run
a State every year, and balance the budget. And so I have had
that experience. I will also say 2008/2009, the economy
struggled, people really struggled for 10 years after that. I
was a Governor in the wake of that. And for years we had to
make cuts because that stimulus wasn't quite big enough. And so
that is why President Biden has really been leaning forward to
say let us make investments.
The issue that I am here to talk about, broadband, I don't
think of it as spending money, I think about it as investing. I
used to run a business too. These are investments, whether you
are investing in roads, or bridges, in broadband, childcare so
women can work. These are productivity-enhancing GDP, improving
worker, enabling investments. I am all for accountability, I am
all for responsibility, I am all for transparency, but I do
think we need to invest in growth.
Senator Braun. Real quickly, because time has expired, not
by much, we generally go beyond this. But you are correct, a
return on a tangible investment makes sense, but you have got
to remember what it is driving our current deficits would not
be for tangible investments like infrastructure that you are
referring to.
When you start making the argument that an intangible
investment is somehow part of what we need to do. That is more
what I would call, spending. You need to do some of that. The
thing that kept your State's finances in order was probably
your good stewardship along with some really good guardrails.
And until we have that here, your job is going to be very
tough. Future generations, I think, have a lot to worry about,
about what this looks like 5 to 10 years down the road. Thank
you.
Secretary Raimondo. Thank you.
Senator Shaheen. Thank you, Senator Braun.
Senator Van Hollen.
COMPETITION AND AFFORDABILITY
Senator Van Hollen. Thank you, Madam Chair.
Welcome Madam Secretary, and thanks for your good work.
Secretary Raimondo. Nice to see you.
Senator Van Hollen. Nice to see you. And we appreciated in
Maryland, Deputy Secretary Graves' recent visit to Baltimore.
Secretary Raimondo. Yes.
Senator Van Hollen. Where he met with Maryland's four
HBCUs. All of them have applied for the Connecting Minority
Communities Pilot Program, and we are working with them on
those applications. We are also pleased that he joined us in
Howard County where their Economic Development Authority put
together a consortium that is a finalist in the Build Back
Better Regional Challenge, to create a cybersecurity focused
workforce pipeline. So thank you for the Department's attention
on all of these ongoing efforts.
And I was listening to your testimony, thank you for the
work you are doing on the broadband front, high speed Internet.
The State of Maryland is already using $300 million from the
American Rescue Plan for that purpose around the State, as are
a number of our municipalities, including Baltimore City.
But the additional funds in the Infrastructure
Modernization Program will help us all finish the job. And I
wanted to delve a little bit more into the affordability part
of access to high-speed Internet, because we know you need a
tablet, you need a reliable connection, but you need to be able
to afford it.
Secretary Raimondo. Mm-hmm.
Senator Van Hollen. And in many places in Maryland, a
community might have a single provider where services are just
unaffordable at the end of the day. You have monopoly provider,
no competition, and the prices are too high for many families.
And the middle-mile program can, I think, help relieve that
issue. And I heard you in response to Senator Murkowski's
question; make the point that a State could choose other
resources in the BEAD Program for that purpose. Is that right?
Secretary Raimondo. Yes, absolutely, yes.
Senator Van Hollen. Right. And would you agree that if we
are going to invest billions of dollars in building out our
broadband infrastructure, that at the end of the day it does
have to be affordable for everybody so that we are not having
to come back, and provide new, fresh subsidies so people can
afford the service?
Secretary Raimondo. Absolutely. Yes. As I have said
earlier, affordability is core, it is of no use to you or your
family to have Internet for $80 a month, $100 a month, and we
are going to have to look at this. We are requiring competition
in every--in every State plan--in every State they have to have
competition. We are hoping that the money we are providing,
which could be to utilities, co-ops, middle-mile providers,
nonprofits will encourage more competition.
We are requiring everyone--every ISP provider who gets any
of this must provide an affordable plan. So that is key. You
are not going to get anything if you don't prove to us you have
an affordable plan. And then finally we will be working with
the FCC and their affordability program. It used to be the EBB,
the Affordable Connectivity Program, which is $30 a month to,
you know, combine our efforts with their efforts.
Senator Van Hollen. Well thank you, Madam Secretary. Your
response sort of anticipated my next question. So these funds
will be available to all entities, to nonprofit entities, to
public entities, the private entities in order to create
competition. And what, for example, let us say a private entity
was going to receive some of these funds, a condition of
receiving these funds would be to agree upfront to affordable
prices being charged?
Secretary Raimondo. Yes. They will not be eligible to
receive any of this money unless they first prove to us, NTIA,
that they are going to be offering an affordable plan.
GRANT AND STAKEHOLDER ENGAGEMENT
Senator Van Hollen. Thank you, Madam Secretary. My last
question just relates to the NTIA grants, and the BEAD Grants.
As you know, they are channeled through States. You were a
Governor. You know that sometimes municipalities or counties in
Maryland feel that they are not at the table when the State
makes those decisions.
Secretary Raimondo. Mm-hmm.
Senator Van Hollen. Can you provide some assurances that
the monies that flow through the States, and sub-granted to
counties that--that counties and municipalities will be engaged
up front in that process. That it is to say, a coordinated
process, not a top-down process.
Secretary Raimondo. Yes. Yes, I can. I have also lived
that. We are requiring a lengthy, extensive stakeholder
engagement, and requiring States to prove to us, and show us
exactly what that stakeholder engagement was. So first they get
a planning grant, and with that planning grant, they have to do
a certain amount of stakeholder engagement, including with
municipalities, including with consumer advocates, including
with ISPs. And we are going to be the arbiter of whether it was
enough engagement.
Senator Van Hollen. Thank you. Thank you, Madam Secretary.
Senator Shaheen. Thank you. Senator Capito.
Senator Capito. Thank you, Madam Chair. And thank you for
being with us here today, and thank you for your constant
communication with me. Personally, as this was developing, I am
obviously really excited about it.
SERVICE CONCERNS
About 10 days ago, I launched a project through my office
called Share Your Story. And I asked, in anticipation of all
the money coming into the State, and some of the misspent funds
from the BTOP Program in 2009.
Secretary Raimondo. Mm-hmm, mm-hmm.
Senator Capito. Don't want to make that mistake again. I
think you and I talked about that. So amazingly, I have got 902
stories.
Secretary Raimondo. That is great.
Senator Capito. These are from people all over the State of
West Virginia that are talking about where their issues are
with their broadband service. We have heard from schools, we
have heard from a school superintendent who can't even conduct
business at his own home. He has to go back to the school in
the middle of the night if something comes up with the school
system; businesses, but mostly individuals. They fall into a
packet of unserved, yes, so you think: Well, how are they
contacting you? Maybe the service at work, or something like
that.
Secretary Raimondo. Mm-hmm.
Senator Capito. Underserved or service promised
undelivered, you know, certain speeds promised, you are paying
for this but you are not getting it. And other things are sort
of regional, where certain areas that are more rural, or less
populous, have less service, or less availability. And then
some providers, who will remain unnamed, were highlighted in
this. So I am planning to use this to----
Secretary Raimondo. You can tell me later who they were.
Senator Capito. Pardon.
Secretary Raimondo. You could tell me later who those
providers were.
Senator Capito. I can tell you. And so I am planning to use
this data that we are re-contacting everybody, and use this
with my Broadband Council to help them fulfill their mapping as
they are moving out, because I was surprised, it was such an
overwhelming response, and very pleased. So it is called
www.capito.senate.gov/shareyourstories.
TIMELINE FOR SERVICE MAPS
And so I want to talk about something just really detail
here, oriented. You said maps by the summer, in your comments--
your written statement--you said that: We are prepared to
launch these programs in a little more than 100 days, because
as we get to share our stories, people are saying: Yes, you
have talked about how you are going to get us broadband, when
is this coming, because there is such an appetite?
Secretary Raimondo. Mm-hmm. Yes, yes, yes.
Senator Capito. So could you line out a little bit more of
the timeline?
Secretary Raimondo. Yes.
Senator Capito. Just briefly. Yes.
Secretary Raimondo. So first of all, we would like to get
the info from you to Share Your Stories.
Senator Capito. We will.
Secretary Raimondo. Because as I said, we are deep into
stakeholder engagement at the moment.
Senator Capito. Good.
Secretary Raimondo. So listen, this will be a challenge
because this is the way it is going to work. Right now we are
doing our request for comment trying to get what we can.
Senator Capito. Yes.
Secretary Raimondo. We are charging towards the goal of
second week of May, third week of May, to put out the Notice of
Funding Opportunity. So that is kind of the starting gate for
the States.
Senator Capito. Okay.
Secretary Raimondo. Mid-May starting gate, apply. They will
let us know if they want to apply. I am sure they all will.
Then we are going to provide them with a $5 million planning
grant, but the--and then they start working on their State
plan. And it will take them time, it will take them months to
do their State plan. They have to do stakeholder engagement
that takes months. I was with the Governors the other day--
Senator Capito. Does the stakeholder engagement have to
begin in May? Can they be doing that now?
Secretary Raimondo. They should be doing it now, but they
can do it now. They can do it now, yes, they can and they
should.
Senator Capito. Okay. Forms the document and--
Secretary Raimondo. Exactly, exactly. But, you know, I was
with the Governors on Saturday, and they are like: We are ready
to go now. We want our money now. I am like--
Senator Capito. Right.
Secretary Raimondo [continuing]. Respectfully you're not.
Have you checked this box on permitting? Have you checked this
box on building out your broadband office? Have you really done
consultation with the Tribes, and the ISPs, and the
municipalities; but here is the nut of it, Senator. We need the
FCC to produce the maps--
Senator Capito. Right.
Secretary Raimondo [continuing]. Before we can even run the
formula to figure out how much money every State has.
Senator Capito. Right.
Secretary Raimondo. And I don't know. I mean, the FCC
Chairwoman testified to June, they are telling us summer. I
hope it is summer, and if it is, then we can get to work
thereafter.
Senator Capito. Yes. I mean, obviously sooner, and the
sooner the better, you know that. I mean, you know the--but we
want to do it right. We want to do it accurately.
I know there have been a lot of questions on this, and
certainly in the Share Our Stories I saw this, and I alluded to
it. There are areas that are sort of in the fine line of
underserved and unserved. They may have availabilities but it
is a--you know, a $200 a month satellite availability that in
the mountains of West Virginia, a lot of times people are
getting kicked off or other things.
Secretary Raimondo. Mm-hmm.
Senator Capito. So I was supposing that you were going to
be planning for those gray areas. I think Senator Moran was
sort of getting to that in his question.
Secretary Raimondo. Yes. So you know, we look at the
speeds, below 25/3 is unserved.
Senator Capito. Right.
Secretary Raimondo. Below 120 is underserved. We are also
going to rely on the Governors in the local broadband offices.
Senator Capito. Mm-hmm.
Secretary Raimondo. I mean, they know. They know.
Senator Capito. Right.
Secretary Raimondo. In West Virginia, you know.
Senator Capito. Right.
Secretary Raimondo. Where is it spotty? Where is it
insufficient? And so that is why we are asking these States to
put together plans. And we are relying on the States to tell
us: Hey, I don't care what your maps say. I am telling you this
cluster has poor service. And that is why we want to use our
money to connect this cluster, or run fiber there.
Senator Capito. Yes.
Secretary Raimondo. And a lot of what you are talking
about, those technologies, they probably need fiber--
Senator Capito. Right.
Secretary Raimondo [continuing]. Which is what we are doing
here so it is high quality.
Senator Capito. Right. All right; I think my time is up,
unfortunately. I had about 20 more questions.
Senator Shaheen. Thank you. Senator Moran.
Senator Manchin. Hello.
Senator Shaheen. Senator Manchin.
Senator Manchin. Right. I think it is my turn.
Senator Shaheen. We didn't know you were--
Senator Manchin. Is it?
Senator Shaheen. We didn't know you were on.
Senator Manchin. I just left the other meeting to come here
to be on this, and it is such an important issue. And I heard
Shelley talking some things, and I can take it at the same
level, but you know, we have a lot of concerns. So is it my
turn?
Senator Shaheen. Yes.
Senator Manchin. Okay.
Senator Shaheen. Wait a minute, before you start. Let us
see if we can figure out what is going on with the system.
[Discussion off the record.]
Senator Shaheen. Joe, you are on.
Senator Manchin. Okay. Okay, Jeanne, thank you so much. I
appreciate. I know, I know that we thought we had hooked up,
but anyway.
INSUFFICIENT MAPPING AND COVERAGE
Let me just, Secretary Raimondo, thank you for being here.
Let me take you back a ways, on how this all came about. In
October 2016, I brought Chairman Wheeler, because they kept
telling us we were covered. I know Shelly has gone over. We
both have been on top of this and trying to make this work
because I couldn't figure out why they were saying: Oh no, your
maps are covered, your maps are good. You are covered in this
area.
So I brought Chairman Wheeler to Tucker County and we were
brought at the vocational school and he said--he was there, and
it was showing that we had good coverage in this area with the
maps that the FCC had.
So I told him at that time, I said: Why don't you go back
to your office and check to see if you have any message, or
whatever, and just use any phone you want to, or any carrier,
because it is shown that we have good coverage here. And it
brought to light that he knew something was wrong. And I said--
I said, Mr. Chairman, this is happening all over our State.
So we started these tests, and we started challenging every
school, every area, and it was unbelievable. I know Shelly's
office has done the same. It is just unbelievable the response
that we received. And we start pushing, and pushing, and
pushing these maps. Then they said they couldn't pay for the
maps, and they didn't. Really it was reluctant to fix--to
upgrade these maps.
Well, rural America was getting left behind, rural West
Virginia and Appalachia was definitely left behind. So we put
some things in this piece of legislation as we were working the
Infrastructure Bill, the Bipartisan Infrastructure Bill, to
make sure that we wouldn't get left behind this time. And we
said that these areas that have no coverage whatsoever ought to
be the highest priority. And I just wanted to make sure that we
are on track, and that you are all coordinating it with the
FCC, is on track to make sure that is where the first
assistance is going to go, and the highest need that there is
in the country is in the areas that have no coverage
whatsoever.
And Secretary, it came more to light during the--basically
this pandemic, than any time before. I had kids that couldn't
do their homework, they fell behind. Rural America fell behind
faster and further than any part of our country. We had,
basically, our veterans who couldn't do telehealth. We had
doctors who weren't getting reimbursed because they couldn't do
telehealth. They were doing everything by normal landlines or
cell service. So we had to get a waiver in order for them to
get reimbursed for telephone health, if you will.
So it has been a cadre of problems that we have had, but it
is said that basically there are at least 258,000 West
Virginians without broadband access, but we have had estimates
as high as 900,000, which is 50 percent of our population does
don't have connectivity, or not dependable connectivity.
So the only thing I can say: What steps are you taking in
the short term to make sure that these needs are going to be
met? And how can I help you?
Secretary Raimondo. Yes. Thank you, Senator. Okay, shall I
just go?
Senator Manchin. I have you, yes. Secretary, you are on, I
have you. I have you clear.
Secretary Raimondo. Okay. Well, it is great to see you,
albeit on a screen.
Senator Shaheen. Senator Manchin, I think you need to mute.
Try it again.
Secretary Raimondo. Okay. It is nice to see you. And it is
heartbreaking to listen to you talk. It is outrageous and
heartbreaking, and I am determined to work with you to make
sure every single person in West Virginia, every household,
every small business has high quality broadband, when we are
done with this work.
Yes, I will commit to you that this is an initiative by its
design, which is prioritizing unserved and underserved; you
know, underserved is maybe technically they have service, but
it is poor quality service. That is the explicit focus. That is
the priority. And that is where we are going to go, to the
unserved and the underserved.
And the reason we are setting this up so that the States
are in the lead is I am a firm believer that the States know,
in some cases, address by address, school by school, where the
dead spots are. And so, we are relying upon State broadband
offices, and mayors, and county commissioners, and Governors to
put together a plan to, you know, tell us what they think is
required in their State to provide excellent, high quality,
affordable broadband.
I also will say, and I mix that----
Senator Manchin. And if I can just----
Secretary Raimondo. Oh. Go ahead.
FCC MAPPING COMPLETION
Senator Manchin. Can I just chime in one time, real quick?
Basically, the FCC, Chairman Rosenworcel, how are you all
connected with her making sure, and what timeline does she have
on her maps? How are they doing on the maps, because we have
been speaking, and everything, trying to stay on top, and make
sure she has the necessary funds, and also the resources, and
help in the urgency that needs to be done, because we can't do
a thing without that?
Secretary Raimondo. Yes. No, no, believe me, she hears from
me often. I have met with her. Alan Davidson has met with her.
We are in constant, constant communication. She is saying
summer we will have the maps, and so we are going to continue
to work with her to make sure we get them as soon as we can,
but even more important that they are accurate.
Senator Manchin. Do you know what I would ask you to do? It
might help, help you all determine where the need is the
greatest, and how you can best deliver the services there, and
funding is--as for best practices, every State has some areas
that have an area of best practice. We have a co-op that is
probably one of the better ones, not only in our State, but
probably in the country.
And if we can mimic that, and use their expertise in what
they have found, we could, hopefully, be a little bit quicker
in getting the services to the people in West Virginia. We have
a higher cost of getting service in a rural area. So basically
we have 10 percent, I think there was a 10 percent upcharge on
that.
Secretary Raimondo. Mm-hmm.
Senator Manchin. That would allow for the higher cost in
the more expensive, mountainous areas, the more rugged terrain,
if you would. These are the type of things I think we can
accelerate that. And if the State could let us know how they
are cooperating with you, and if our State of West Virginia is
working with you with their Broadband Council, using the best
practices, giving you some ideas of how we can accelerate that.
But until the maps come back, they can tell you what is not
covered right now, but I am hoping the maps are going to be
accurate enough to show you where the need is.
Secretary Raimondo. Yes, absolutely. We will work with your
State. I will keep all of you apprised as to how it is going
with your States. I would ask you to keep me apprised, how you
think it is going. You are correct, there is a 10 percent set
aside for high-cost areas, which are areas which are more
expensive than the average unserved area.
And I expect, whether it is West Virginia, Alaska, a lot of
your communities will be eligible for that plus-up, to take
into account just how expensive it is to lay fiber in these
areas.
Senator Shaheen. Thank you very much, Senator Manchin.
We will now, I think the status is we are into the second
round of questions. Everyone has had their first round. And I
have had my second round. So I will turn it over to Senator
Moran for his second round.
Senator Moran. Chair, thank you.
Secretary Raimondo, thank you for the conversation we had
earlier. I welcome the chance to have further discussions, as
you suggested, in regard to RDOF, and what FCC may be doing
that may eliminate or reduce the likelihood of many States
accessing the funds from the Department of Commerce.
And I think you have said this, but I am going to ask this
question just so that you can say yes one more time and then I
can find it in the record, if I have to come back to it.
[Laughter.]
COMMITMENT TO UNSERVED AREAS
Senator Moran. Will you commit that the Department of
Commerce will ensure unserved areas have access to quality
broadband service before investments are made in areas with
existing service?
Secretary Raimondo. I will. Here is my commitment. I commit
that at the end of this, every person in Kansas will have
access to high quality, affordable broadband. And so I commit
to ensuring that we are not going to spend money adding
duplicative service in places before making sure that everyone
who is unserved and underserved is covered.
Senator Moran. A more useful answer than a yes or no
response. Thank you.
Senator Shaheen. Be careful, Madam Secretary, because that
means every State in the country is going to want that same
commitment.
Senator Moran. I believe that commitment was made to
Kansans.
[Laughter.]
Secretary Raimondo. No, look. I can hear my staff saying,
be careful, but here is the situation. This money is explicitly
prioritizing unserved and underserved. That doesn't mean some
of the money won't go to places that already have coverage. And
by the way, that competition will bring down prices, and that
is not a bad thing. But what I will commit to you is, we are
not going to spend money, quote/unquote ``overbuilding'' until,
first, we are certain that everyone who is unserved and
underserved has coverage. That is the whole point of the
program.
Senator Moran. I might point out to my colleagues, any of
them who care on this topic the way I do, the legislation that
we passed altered the formula for the U.S. Department of
Agriculture, it used to be 90 percent, some RAN provision in
previous legislation that 90 percent had to be spent in places
that there were no service. And we lowered that to 50 percent
which troubled me, but we were unsuccessful in altering it, to
return it.
OPERATIONS AND MAINTENANCE
Let me ask just a couple of questions beyond this topic.
Operations and maintenance, it has become clear to me. I think
I was slow to recognize this. The money that we generally
spend, almost without exception is to build out the
infrastructure for broadband, but there is very few resources,
maybe some at the FCC that are for operations, and maintenance.
So what I have discovered with my rural carriers, my rural
telephone companies, when they build out these subsidy dollars,
this assistance to help them accomplish that, gets the
infrastructure in place, but still it is too expensive to
provide the service on an ongoing basis. And I don't think
anything in this legislation directs the Department of Commerce
to assist in those operation and maintenance costs.
But I would just raise this issue for you, Madam Secretary,
there is still something else that may get us the
infrastructure in place, but then it be still unaffordable on
an ongoing basis. And there may be something between what--I
think it is at USF that may be helpful in this regard, but that
may take some coordination between rural development, FCC, and
the Department of Commerce to pay attention to one more--it
would be sad if we got the infrastructure in place, but still
remained unaffordable to provide the service throughout the
future years.
Secretary Raimondo. Yes. I will look into that, and I
appreciate it. I mean, obviously the hope here is that we are
providing an enormous amount of money to help defray the cost
of laying the broadband and the infrastructure. And we are
requiring the providers who receive the money to guarantee a
low-cost plan.
Having said that, I hear what you are saying. I will also
say this, please be involved in creating your State's plan. So
whether it is overbuilding, or making sure we get to everybody
who is, you know, not covered, or has poor service that is why
we are designing this. You and your Governor, and you know, the
mayors know Kansas better than we ever will. So I will come to
you before we approve the plan, and we will welcome your
feedback?
Senator Moran. That is good advice for all of us to get
fully engaged in what is going on in our home States. As I
said, we had outreach to our Director of Broadband Services at
our Department of Commerce, and we need to make sure that we
stay engaged, not just with that moment.
Secretary Raimondo. Yes.
Senator Moran. But into the ongoing process. As Senator
Collins led the way, let me mention tariffs. You and I, and you
have been very care--kind in your hosting an event for us to
bring folks who are having difficulties as a result of the
tariffs, and high lumber prices, steel price is another
example. I want to add a third one to the list that I have
talked to you about previously.
And I certainly share Senator Collins' concern about
softwood lumber, and housing prices, and the consequence, at a
time in which supply chain is so limited, it seems to me that
tariffs ought not to be one more burden in the cost or
availability of materials in this country.
RISING COST OF FERTILIZER
The one I would raise for you is fertilizer. AG commodity
prices are higher, as everything is higher these days, so the
price of wheat, cattle, corn, soybeans, and all the things that
we produce in Kansas are up, but so, in an overwhelming way,
are the input costs necessary to produce that wheat, cattle,
and corn. One of the most important components is fertilizer,
and fertilizer is generally made from phosphates, and from
natural gas, both which are skyrocketing in price.
So there is not profitability in agriculture, despite what
you might see about the price that a farmer or rancher might
receive for what he or she raises, but we have placed, the
previous administration, placed tariffs, countervailing duties
on phosphate imports from Morocco.
And its preliminary decisions, you have continued that, and
I would again, highlight that a time in which the demand for
fertilizer and feeding the world, we just met with the U.S.
Food Service Ambassador today. The demand for food, the need
for food around the globe is huge and compelling. And what we
can do to make sure that we produce more and feed more people
is really important. And we also need to see something in the
line of profitability for those who product that food.
Secretary Raimondo. Yes.
Senator Moran. Thank you. My time has expired.
Secretary Raimondo. So I hear you, and I am very sensitive
to this, and it is exacerbated now, like with the overall
inflation, and then the supply chain challenges, generally, so
I will look at that. I will look at that. As I say, I have very
little degrees of freedom on these countervailing duty cases.
I have been--I am very pleased that I was able to negotiate
the end of the steel and aluminum tariffs, the 232 tariffs with
the EU, and I am hard at work trying to do the same with
Japanese, and the U.K., because I agree with you, the tariffs
on these imports, at an inflationary time can be difficult. But
I owe you a better answer and that will--
Senator Moran. Excuse me for not complementing you, thank
you for the--with regard to steel and aluminum.
And Madam Secretary, I need to depart to speak on the
Senate Floor.
Secretary Raimondo. Yes.
Senator Moran. I thank you for your time today.
Secretary Raimondo. Thank you, Senator.
Senator Shaheen. Thank you, Senator Moran. Senator Collins.
Senator Collins. Thank you very much, Madam Chair.
RIGHT WHALE REGULATIONS
Madam Secretary, Secretary, I know that you realized that
you would not be leave here today, without us having yet
another discussion about NOAA's right whale regulations. As you
are well aware the entire Maine delegation, our Governor, the
Maine Department of Marine Resources, all agree that his rule
is overly burdensome, unfairly targets the Maine lobster
industry, and will not achieve the goal of saving the right
whale.
In fact, NOAA's own data show that Maine's lobster industry
has never been linked to the death of a right whale. A Federal
judge in Maine was able to block the NOAA regulations for a
time, and remarked that the regulations were based on what he
called markedly thin evidence.
And that certainly summarizes how we feel. Yet, NOAA
proceeded to close more than 950 square miles of productive
ocean area to lobster fishing. And that closure went through
until yesterday, it just reopened today. And now we are finding
that the gear conversion that is required is simply not
available.
An AP story entitled, ``Worries grow as deadline for whale-
friendly gear draws near'', quotes the Maine Department of
Marine Resources as receiving numerous complaints that there
simply isn't a sufficient supply of approved ropes, or plastic
links that are required by the new NOAA regulations.
I would mention that over the years the Maine lobster
industry has greatly reduced the amount of rope that it uses,
and they have always been great stewards of the environment,
and that is why this is particularly frustrating. So the Maine
delegation along with the Governor has asked for a delay in the
implementation of the gear conversion requirements from May 1
to July 1.
That would save the industry more than $7 million in lost
fishing time, and we believe it would have no, or negligible
impact on risk reduction. The overall scarcity of this gear is
making it virtually impossible for many lobstermen to find it.
It is just simply not available. So with the implementation
date still at May 1, and that is coming up quickly, lobstermen
are struggling to find the compliant gear in the marketplace.
Will NOAA reconsider delaying the requirement?
Secretary Raimondo. So thank you for the question. And as I
have said to you before, I take this very seriously, and I
admire the way you keep with it. We have thousands of people in
Rhode Island who make a living as commercial fishermen, and I
know it is more than just a living. It has often been in their
family for generations. They did it, their father did it, their
grandfather did it, so it is a culture, it is a way of life,
and it is a living. And I understand that, and want to work
with you to find the solution.
I wish I had an easy solution here. NOAA is not permitted
on its own to change the date from May 1 to July 1. I have
looked into it, and under the APA we don't have that ability
to, on our own, change the date.
I will tell you my Head of Fisheries, Janet Coit, I have
directed her to be on this, and she is talking to the
Commissioner in Maine almost daily. She spoke with him today, I
received an update. She will be speaking with him tomorrow. We
are trying to help locate the gear, as well as provide as much
flexibility and assistance as we can.
So let us continue to work on it, a bit more, to see if we
can alleviate the supply chain issues, and just continue to
kind of work on that problem in the weeks ahead. And I will
call you and keep you apprised.
Senator Collins. Thank you. This is a terrible problem for
our State, and it just seems so unfair when our lobster men and
women are not the problem. Ship strikes are a problem. There
are some problems with Canadian snow crab gear, for example.
But were not the problem, and as you have rightly said,
lobstering is an iconic industry in our State, it is a way of
life, it is multi-generational, our lobstermen and women have
always been extremely sensitive to the environment, and good
stewards of the resource, and is extremely frustrating.
Secretary Raimondo. I share the frustration. It is
complicated as you know, with the subject of a lawsuit, and
there is not a simple solution, but I will commit to you to
stay on it, and see if we can do everything we can to help the
lobstermen.
Senator Collins. Thank you. Thank you, Madam Chair.
Senator Shaheen. Thank you, Senator Collins. The New
Hampshire lobster industry also appreciates that.
Madam Secretary, today we had 14 Members of our Committee
here. That is, I think, a record for a hearing, and it speaks
to the interest and urgency people feel about broadband and how
that funding gets done, and how we get help for our community.
So thank you for your commitment, and for your efforts to
ensure that this program works as well as humanly possible.
Secretary Raimondo. Mm-hmm.
ADDITIONAL COMMITTEE QUESTIONS
Senator Shaheen. If there are no further questions this
afternoon, senators may submit additional questions for the
official hearing record. We request the Department of Commerce
responses to those questions within 30 days.
[The following questions were not asked at the hearing, but
were submitted to the Department for response subsequent to the
hearing:]
Questions Submitted to Hon. Gina Raimondo
Questions Submitted by Senator Patrick Leahy
Question 1. Under Section 60102 of the Infrastructure Investment
and Jobs Act (IIJA), which establishes a grant program for broadband
deployment, any actions or decisions taken by the Assistant Secretary
of Commerce for Communications and Information are exempt from the
requirements of certain laws. That includes the entirety of Chapter 5
of the United States Code, which contains the Freedom of Information
Act (FOIA). This is problematic, as this effectively means that tens of
billions of taxpayer dollars are not subject to the public scrutiny and
transparency provided by FOIA.
Do you agree it is problematic to entirely exempt such a
significant program supported by billions in taxpayer dollars from the
requirements of the Freedom of Information Act? Would the Department be
receptive of legislative amendments to address this exemption as
currently written in the law? Does the Department have any
justification for requiring such a sweeping exemption, which clearly
runs afoul of the intent of Congress in enacting the Freedom of
Information Act?
Answer. The Department and NTIA intend to run the Broadband Equity,
Access, and Deployment (BEAD) Program transparently and with
accountability, including making information publicly accessible so
that the public can track how each State is spending BEAD funding and
monitor their State's progress. We, along with States and subgrantees,
each have a critical role to play in ensuring that the BEAD Program is
implemented in a manner that reflects transparency, accountability, and
oversight sufficient to, among other things, minimize the opportunity
for waste, fraud, and abuse; ensure that grant recipients under the
Program use grant funds to further the overall purpose of the Program
in compliance with the requirements of the Infrastructure Investment
and Jobs Act (IIJA), the Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards set forth at 2
C.F.R. Part 200, and other applicable laws and regulations; and to
allow the public to understand and monitor grants and subgrants awarded
under the Program. We take these responsibilities seriously and are
happy to work with the Committee on this matter.
______
Questions Submitted by Senator Jerry Moran
Question 1. There are many different broadband programs already in
existence across the Federal government, including those at the FCC and
the Department of Agriculture. Because of this, many states have a
patchwork of ongoing projects. Coordination between Federal agencies is
critical to help maximize the return on broadband investments.
Coordination with the FCC is particularly important, as it is currently
preparing the maps that will determine the allocation of funds. This
coordination is essential to reach the unserved, and to ensure that we
do not overbuild where broadband already exists.
How often are you in touch with the FCC and other Federal entities
to coordinate efforts, and to ensure the funds will go to the
communities the law intended them to go?
Will you commit to me that you will work to prevent the
overbuilding of existing networks to the greatest degree possible?
Answer. Last June, NTIA, FCC, and the Department of Agriculture
(USDA) signed a Memorandum of Understanding (MOU) that commits our
respective agencies to coordinate resources and leverage data to
appropriately identify areas of need. I have personally spoken with
Chairwoman Rosenworcel, and my staff, NTIA Administrator Alan Davidson,
and the staff at NTIA are in regular communication with leadership and
staff at the FCC, Treasury, USDA, and other agencies that fund
broadband deployment.
The IIJA lays out a clear framework for states to fund broadband
infrastructure projects, which requires prioritizing unserved
locations, then underserved locations, and then community anchor
institutions.
Question 2. You know as well as anyone, given your Department's
work on supply chains, that companies in every corner of the economy
are struggling to acquire critical materials. This issue will be even
more acute for broadband deployment. Given the significant amount of
funding that will be going out the door in a short timeframe, many
companies will be competing for the same materials and equipment.
That concern is particularly important with respect to electronic
processors, or semiconductors. The Department of Commerce has taken the
lead on the issue of semiconductor shortages, and has recently
completed a comment period regarding ongoing semiconductor shortages.
What can the Department do to alleviate broadband equipment
availability concerns in advance of these programs dispersing funding?
Do you believe that semiconductor shortages will impact the
deployment of broadband, and what can be done to mitigate any potential
shortages in the broadband space specifically, to ensure there are not
deployment delays?
Secretary Raimondo, does the Department envision offering supply
chain waivers, similar to those offered under BTOP?
Answer. In the short term, we will work with industry to explore
options for alleviating broadband equipment availability concerns. In
the long term, we must take steps to ensure a resilient and secure
supply chain for critical materials and semiconductor chips, including
continued assistance to firms expanding their semiconductor
manufacturing investments in the United States. The microchip supply
chain is a concern across many sectors. I continue to strongly support
the Bipartisan Innovation Act, including appropriations for the CHIPS
for America Act to establish programs that incentivize competitive U.S.
semiconductor manufacturing and contribute to U.S. economic and
national security.
The Administration is committed to faithfully implementing the
IIJA, including the law's Build America, Buy America provisions. Since
his first day in office, President Biden has relentlessly focused on an
industrial strategy to revitalize our manufacturing base, strengthen
critical supply chains, and position U.S. workers and businesses to
compete and lead globally in the 21st century. The Commerce Department
will consider waiving these requirements only where the acquisition of
domestic components would be inconsistent with the public interest,
their cost would be unreasonable, or the relevant materials or products
are not mined, produced, or manufactured in the United States in
sufficient and reasonably available commercial quantities and of a
satisfactory quality.
Question 3. I believe that Federal programs should not fund
overlapping networks. However, I am also concerned that some states may
lose out on funding, based on how prior Federal programs cover
currently unserved areas of those states.
The IIJA lays out a methodology for allocating funds to states
under the BEAD program: an initial $100 million, followed by an amount
determined the number of unserved areas in a state. The purpose of the
formula is to provide the states with the most unserved areas the most
funding, something I agree with.
However, one issue that I foresee is uncertainty regarding whether
currently unserved areas are still going to be considered ``unserved''
if a separate Federal broadband program, like FCC's RDOF, has awarded
funding for those areas, but a network has not yet been built out. This
risk is compounded if a previously-identified project ultimately fails
to deliver. This creates a serious risk that some states could lose out
on a significant amount of funding, as RDOF awards cover broad swaths
of some states.
Will the Department of Commerce consider areas that are ``covered''
under another Federal program, but do not currently have access to
broadband, as unserved, for the purposes of the funding calculation and
allocation?
Will the Department have a process by which states can revisit the
number of unserved in their states if other broadband Federal programs
fail to build out their commitments and then leave people and
communities behind?
Answer. NTIA will allocate funds according to the statute which
provides that the determination of whether a location is unserved for
allocation purposes is determined in accordance with the broadband DATA
maps. Section 60102(h)(2) does, however, require eligible entities to
``ensure a transparent, evidence-based, and expeditious challenge
process under which a unit of local government, nonprofit organization,
or other broadband service provider can challenge a determination made
by the eligible entity in the initial proposal as to whether a
particular location or community anchor institution within the
jurisdiction of the eligible entity is eligible for the grant funds,
including whether a particular location is unserved or underserved.''
NTIA has the opportunity and the obligation to review the results of
that challenge process.
NTIA is also working with other Federal agencies to coordinate
broadband investment programs (e.g., the FCC's Rural Digital
Opportunity Fund and the Capital Projects Fund), to best ensure that
affordable, reliable, high speed broadband is deployed to every
serviceable location in the United States.
Question 4. During the hearing, you expressed an understanding that
flexibility, when it comes to the type of broadband technology used in
deployment, will be necessary to make certain all unserved areas of the
country ultimately are served.
Can you please confirm this understanding, and explain the
necessity of ensuring technology neutrality when it comes to covering
all unserved areas with broadband?
Answer. There is no ``one-size-fits-all'' approach to broadband
deployment given each state's unique challenges, and NTIA will ensure
that the states have flexibility in identifying technical solutions. In
many cases, the best solution will be fiber. But we will consider any
technology that will meet America's broadband needs, consistent with
the requirements set out in the IIJA.
Question 5. The IIJA mandates that states certify to the Assistant
Secretary that they will ensure coverage of unserved areas prior to any
investment in underserved or other areas.
How will this certification work, and how will the Department of
Commerce ensure that all unserved areas within a state will be served
prior to further investments in other areas?
Answer. The IIJA lays out a clear framework for states to fund
broadband infrastructure projects, which requires prioritizing unserved
locations, then underserved locations, and then community anchor
institutions. NTIA will adhere to that framework, including by
requiring each state to certify that the state will ensure coverage of
broadband service to all unserved locations within the state or
territory.
Question 6. In addition to equipment supply chain issues,
telecommunications workers will also be in extremely high demand. There
is an existing shortage of telecommunications workers now, so this
increased demand could also lead to delays in deployment.
The Telecommunications Skilled Workforce Act, which I helped
introduce with Senator Thune, was incorporated into the IIJA and would
establish an interagency group--led by the Federal Communications
Commission (FCC) and Department of Labor--to analyze the shortage and
make official recommendations for increasing the number of
telecommunications workers.
What is the Department of Commerce doing to help address this need?
Answer. In order to build out broadband to every corner of the
country, we are going to need a highly skilled, diverse workforce that
can safely do their jobs. The Department of Commerce is participating
in the Telecommunications Workforce Interagency Group, as established
in the IIJA, along with the FCC, the Department of Labor, and the
Department of Education. The working group held its first meeting in
March and the Department looks forward to collaborating with our agency
partners to identify the current and future needs of the
telecommunications industry workforce.
In addition, NTIA will engage in outreach and technical assistance
activities to help states, territories, and their political
subdivisions prepare to seek funding and plan for use of funds through
the BEAD Program, by encouraging coordination with states'
telecommunications workforce development plans.
Question 7. The IIJA and the American Rescue Plan provide
significant funding for broadband deployment and other infrastructure
investments. Those bills also encourage the use of Advanced Digital
Construction Management Systems to expedite the utilization, execution,
and oversight of projects funded under those acts. It is my
understanding that the Route 6/10 Interchange Reconstruction project in
Providence, which is the largest in RIDOT history, is using this
technology.
What steps has the Department has taken to facilitate the
utilization of these project management technologies?
Answer. NTIA is developing a robust technical assistance plan to
allow states to learn from each other about best practices. NTIA will
evaluate whether to include Advanced Digital Construction Management
Systems as one element of the project management technical assistance.
Question 8. The need to address ever-evolving cybersecurity threats
as part of every state broadband plan is critical.
Can you assure me that broadband funding applications that are
submitted to you will demonstrate they have taken cybersecurity
considerations into account with details on how grant funds will secure
these connections?
What steps will NTIA take to ensure the proposed cybersecurity
measures in each plan are adequate?
Answer. I agree that addressing cybersecurity challenges in the
state broadband plans is critical. Supporting industry's capabilities
to respond to cybersecurity and privacy risks is one of my top
priorities as Commerce Secretary.
Section 60102(b)(4)(B) of the IIJA requires NTIA to provide
technical and other assistance to states ``regarding cybersecurity
resources and programs available through Federal agencies, including
the Election Assistance Commission, the Cybersecurity and
Infrastructure Security Agency, the Federal Trade Commission, and the
National Institute of Standards and Technology.'' Further, section
60102(g)(1)(B) of the IIJA requires that every BEAD Program subgrantee
``shall comply with prudent cybersecurity and supply chain risk
management practices, as specified by the Assistant Secretary, in
consultation with the Director of the National Institute of Standards
and Technology and the Commission.'' NTIA staff has engaged with
colleagues at NIST and the Commission and will ensure that the BEAD
Program incorporates appropriate and prudent cybersecurity and supply
chain risk management practices.
In addition, in the Request for Comment issued on February 4, 2022,
NTIA asked stakeholders what guidance or requirements should be
required for network reliability and availability, cybersecurity,
resilience, and other related topics. Based on those responses, we are
reviewing existing guidance--including those developed by the
Department through NIST--to ensure that cybersecurity practices are
addressed through the Notice of Funding Opportunity.
Question 9. USDA's latest rules for their ReConnect program
includes changes to how they will score applications to their program,
including awarding more points to broadband providers who commit to
``net neutrality'' standards. Reflecting the lack of bipartisan
agreement on net neutrality, IIJA includes nothing regarding favoring
broadband providers who adhere to net neutrality commitments in the
law.
Please describe the metrics that NTIA will use to assist in
evaluating the plans that States will submit to be approved.
Will you commit to me that the Department of Commerce will not take
it upon itself to issue rules that are contrary to the bipartisan
spirit of the IIJA, and specifically that the Department of Commerce
will not favor providers who commit to adhere to net neutrality
provisions?
Answer. The IIJA requires the Assistant Secretary to determine
whether the initial and final grant proposals filed by the states
propose to use BEAD Program funds for the purposes listed in section
60102(f) of the IIJA and in a manner that is in the public interest and
effectuates the purposes of the IIJA. My focus is on deploying
reliable, affordable high-speed broadband to all Americans.
______
Questions Submitted by Senator Lisa Murkowski
Question 1. Middle Mile: In Alaska, middle mile infrastructure--the
network that connects local networks to high speed network service
providers--is one of our biggest obstacles to ensuring reliable and
affordable Internet throughout the State. For example, we've had folks
visit in the past promising Wi-Fi access to every student throughout an
entire school--but access for an entire school in a remote area isn't
usually the problem. We have made big strides in securing the equipment
for end-users--like laptops in schools--but the middle mile is what we
lack.
I advocated for substantial funding in IIJA--$1 billion in total--
to deploy middle mile projects. How will this program be administered
and what is your expected timeline to start receiving public input on
this issue?
Answer. NTIA intends to issue a Notice of Funding Opportunity by
May 16, 2022, that will provide guidance to applicants on how to
participate in the Middle Mile Grant Program. NTIA expects to complete
its review, selection of successful applicants, and award processing
early in 2023.
Question 2. Grants to States: Alaska has incredibly unique
challenges when it comes to large distances, difficult terrain,
challenging topography, extreme weather, and small populations in
remote areas. As a result, it is essential that there not be a one size
fits all approach to deployment and that States be given flexibility in
determining how grants are awarded.
Do you agree that proposals should be evaluated without a
preference for a certain technology, but rather on their affordability,
speed, reliability, capacity, and the amount of people that will be
reached?
Answer. There is no ``one-size-fits-all'' approach to broadband
deployment given each State's unique challenges, and NTIA will ensure
that the States have flexibility in identifying technical solutions. In
many cases, the best solution will be fiber. But we will consider any
technology that will best meet America's broadband needs now and in the
future, consistent with the requirements set out in the IIJA.
You stated that out of over $42 billion, each State will receive
$100 million and then the rest of the funds will be distributed
``primarily on the number of underserved households.'' This concerns me
because Alaska has a small population, yet broadband deployment to our
underserved populations is prohibitively expensive due to our large
State and challenging environments. How will you ensure that Alaska is
fully covered and not left out due to having a small population?
Answer. The IIJA incorporates a 10 percent set aside for high-cost
areas in the BEAD Program that should help address this concern.
Specifically, to support high-cost deployment areas, $4,160,100,000
will be allocated among the States by dividing the number of unserved
locations in high-cost areas in the State by the total number of high-
cost areas in the United States; and multiplying the quotient by the
amount made available for the set aside.
Question 3. I would like to follow up on my question I asked during
your testimony regarding the Tribal Broadband Connectivity Program
(TBCP). You stated that your Department, and more specifically NTIA was
still working out the details for how it will administer the additional
$2 billion in funding from IIJA. Whether or not applicants will need to
re-apply or if new projects will be eligible. Or if applicants can re-
apply to be more competitive. I would like an update on your thoughts
on this and your timelines for making a decision and implementing this
next tranche of funds for TBCP.
Additionally, some projects may be less competitive in one program,
such as this one, but more competitive in, say, the provisions for
middle mile. As NTIA reviews Tribal connectivity grant applications,
how are you coordinating with other Federal agencies, such as USDA,
that also received broadband funding? How is NTIA participating in a
whole-of-government approach to broadband deployment and adoption on
tribal lands? Should people submit for more than one of these programs?
Answer. Meeting the goal of connecting everyone in America with
reliable, affordable, high-speed Internet will require a ``whole of
government'' approach that includes close coordination among Federal,
State, and community actors. We are in regular communication with our
interagency colleagues and the White House Infrastructure Task Force to
ensure full coordination. NTIA, FCC, and USDA signed an MOU in June
2021 that documents their commitment to coordinate resources and
leverage data from each to appropriately identify areas of need,
including on Tribal lands.
NTIA anticipates using a portion of the $2 billion to ensure that
the stronger applications submitted in response to the first TBCP
Notice of Funding Opportunity (NOFO) get funded. NTIA then anticipates
using the remaining funds to issue a second NOFO that will provide an
opportunity to Tribes, Alaska Native Corporations and other eligible
applicants that did not have an opportunity to file an application
during the first NOFO, as well as providing an opportunity for
applicants that were not funded under the first NOFO to reapply.
Can you speak to projects being granted on a truly ``technology
neutral'' basis? Especially in more remote areas, we need to ensure
we're getting creative with how to affordably and efficiently get more
broadband access to the most people in the most remote areas in the
most rapid manner. Communities in extreme rural Alaska should not
continue to be left completely behind.
Answer. As noted in answer to your earlier question, there is no
``one-size-fits-all'' approach to broadband deployment given each
State's unique challenges, and NTIA will ensure that the States have
flexibility in identifying technical solutions. In many cases, the best
solution will be fiber. But we will consider any technology that will
meet best America's broadband needs now and in the future, consistent
with the requirements set out in the IIJA.
______
Questions Submitted by Senator John Boozman
Question 1. One of the challenges with updating the national
broadband maps is that existing providers report advertised speeds
instead of actual speeds to the FCC. An issue that, at present, seems
likely to be carried over to the new FCC broadband data and maps.
However, simply advertising 100/20 is not sufficient to be able to
claim that 100/20 is actually being provided to the customer.
Advertised speeds are likely to be the basis of the new FCC data,
which can be challenged but may be a lengthy process. Will NTIA work to
ensure states have the flexibility to utilize state broadband data or
to seek verification or challenge claims of existing levels of service
where necessary to ensure communities are not left behind? How will
NTIA evaluate applicants' speed delivery capabilities?
Answer. NTIA, in implementing the BEAD Program, will be required to
use the FCC's updated broadband maps that the Commission is creating as
part of the Broadband DATA Act. These first of their kind maps will
show which locations have broadband service and will be used to
determine which locations are unserved.
Section 60102(h)(2) of the IIJA requires states to establish a
process to challenge deficiencies in those maps. It requires that each
state ``ensure a transparent, evidence-based, and expeditious challenge
process under which a unit of local government, nonprofit organization,
or other broadband service provider can challenge a determination made
by the eligible entity in the initial proposal as to whether a
particular location or community anchor institution within the
jurisdiction of the eligible entity is eligible for the grant funds,
including whether a particular location is unserved or underserved.''
NTIA has the opportunity and the obligation to review the results of
that challenge process.
In addition, NTIA is already working with states to help them
understand and participate in the FCC mapping processes, share mapping
best practices, and provide other mapping support. The objective is to
get states thinking about how best to leverage their state process to
ensure that communities are not left behind. This type of technical
assistance will continue throughout the BEAD Program.
Question 2. The USDA Reconnect broadband grant program includes
criteria against which grant applicant ISPs are scored. However, in
that program, no consideration is given (or points awarded in the
``scoring'' system) for the cost of the build proposed by an applicant.
For example, Applicant A may propose to build an area for $12 million,
whereas Applicant B may propose to build the same area for $10 million.
If Applicant A scores higher than Applicant B, it's likely that the
government will spend $2 million more than necessary to subsidize
broadband availability in that area. Does Commerce/NTIA plan to adopt
the same scoring rules as the USDA, or will it adopt different rules to
ensure the most efficient use of taxpayer dollars?
Answer. My objective is to make sure these Federal dollars go as
far as possible and help to accomplish the President's goal of
connecting all Americans. As a result, we will be working with the
states to ensure that we are maximizing the value of Federal support
for these projects. Each state faces unique circumstances--there is no
``one size fits all'' solution to broadband deployment. As such,
successful execution of the BEAD Program demands close collaboration
between NTIA, as the program administrator, and the states who will
have significant flexibility when choosing how to fund broadband
deployments. I have directed NTIA to engage in early and clear
communication during all phases of the process to help the states
ensure that the subgrantees they choose are well equipped to deliver
affordable, reliable, high-speed broadband at every location within
their jurisdictions.
Question 3. Madam Secretary, I'm interested in how you are
prioritizing investments in ``future proof'' broadband networks,
especially those that use optical fiber. The magnitude of funding
warrants serious consideration of how each grant applicant will
contribute or fit in to the larger telecommunications ecosystem. We
want to encourage diverse participation amongst a level playing field.
We must also prioritize deployment of networks and technologies that
will deliver the highest value broadband performance to Americans--that
means fast, low latency, reliable, scalable, stands the test of time,
something that has cost effective maintenance.
As you shape and administer broadband funding through the Broadband
Equity, Access, and Deployment program, what can you do to ensure that
the applicants and technologies being prioritized are of the highest
quality and value for the American people?
How are you considering the long-term viability of these broadband
investments?
Answer. There is no ``one-size-fits-all'' approach to broadband
deployment given each State's unique challenges, and NTIA will ensure
that the States have flexibility in identifying technical solutions. In
many cases, the best solution will be fiber. But we will consider any
technology that will meet America's broadband needs, consistent with
the requirements set out in the IIJA.
Question 4. Some previous Federal broadband programs have awarded
support to serve rural areas at speeds/levels of latency never before
made available in real-world conditions.
Congress made clear that NTIA must properly vet applicants. Will
NTIA adopt objective standards by which applicants for funding will be
vetted, before being invited to participate in the Broadband Equity,
Access, and Deployment program, to ensure that they have the capability
necessary to perform?
Answer. Section 60102(g)(2) of the IIJA obligates states to, among
other things, ensure that any prospective subgrantee is capable of
carrying out activities funded by the subgrant in a competent manner in
compliance with all applicable Federal, State, and local laws; has the
financial and managerial capacity to meet the commitments of the
subgrantee under the subgrant, the requirements of the Program, and
such requirements as may be further prescribed by the Assistant
Secretary; and has the technical and operational capability to provide
the services promised in the subgrant in the manner contemplated by the
subgrant award. NTIA will work with the states regarding specific
showings that states must, at a minimum, require from prospective
subgrantees.
Question 5. Recently, the Treasury issued final rules for
distribution of ARPA funds that States are required or encouraged to
incorporate into their downstream rules for issuing grants. One of
those rules encourages that the States, in turn, require ISP grantees
to include at least one low-cost service option without data usage caps
and at ``sufficient'' speeds (not defined any more specifically). Isn't
it likely that this rule will negatively affect ISPs if existing
customers downgrade to the new ``affordable'' plan? Further, isn't this
effectively rate regulation through executive branch rule-making? Will
there be a similar rule in the BEAD program? Does Commerce/NTIA endorse
this sort of coercive rate regulation by executive fiat?
Answer. The IIJA expressly provides that nothing in the BEAD
statute should be construed to authorize NTIA to regulate the rates
charged for broadband service. The IIJA does require subgrantees
selected to deploy broadband networks with BEAD Program funds to offer
not less than one low-cost broadband service option for eligible
subscribers and requires that this low-cost option is to be defined by
each state in consultation with NTIA and subject to the Assistant
Secretary's approval.
Question 6. In addition, Treasury rules require the states to
require ISP grantees to opt-in to the ACP program which as defined by
the FCC is a voluntary program for ISPs to participate in. The Final
Rules recently released for the ACP program requires ISPs to enroll all
eligible customers into the program without regard for any previous
credit history, or unpaid past-due balance, the participant may have
with the carrier. An ISP is allowed to disconnect an ACP customer for
non-payment after 90 days but as stated previously, the provider cannot
deny a household re-enrollment on past or present past-due balances.
Simply put, a provider will be required to re-activate a customer--
potentially on day 91--regardless of whether they have resolved their
past due balance. Why should a carrier have to agree to carry past-due
balances, carried forward or incurred in the future, and do so
indefinitely in order to participate in closing the digital divide
through a Federal grant? Does Commerce/NTIA believe this is a
reasonable burden to place on ISPs who we're relying on to deploy these
dollars and get the fiber in the ground?
Answer. The Affordable Connectivity Program (ACP) is administered
by the FCC and is an important component of the overall effort to
ensure that all Americans have access to affordable, reliable, high-
speed broadband service.
______
Questions Submitted by Senator Shelley Moore Capito
Question 1. While the broadband programs authorized and funded
under the IIJA represent the greatest one-time investment ever in
closing the digital divide, we still have the monumental task of making
sure the money is spent in the right places.
To ensure that we direct dollars to where they are needed most,
rather than overbuilding in already well-served areas, are you
committed to using updated, verifiable maps that will help ensure that
initial project awards aren't directed to areas that already have
broadband service?
On that same note, multiple Federal agencies, such as the Federal
Communications Commission, the Department of Agriculture, the Treasury
Department, and your own agency, also spend billions of dollars to
support broadband deployment. What steps will the Commerce Department
take to ensure that monies from the recently passed infrastructure law
are not allocated to projects that would just overbuild on existing
broadband networks?
Answer. NTIA, in implementing the BEAD Program, will be required to
use the FCC's updated broadband maps that the Commission is creating as
part of the Broadband DATA Act. These first of their kind maps will
show which locations have broadband service and will be used to
determine which locations are unserved.
The IIJA lays out a clear framework for States to fund broadband
infrastructure projects, which requires prioritizing unserved
locations, then underserved locations, and then community anchor
institutions. NTIA will require that States faithfully adhere to that
framework.
Question 2. Recently I, along with Ranking Member Moran and a
number of my senate colleagues, sent letters to both the Department of
Treasury and USDA to express concern over steps they have made to give
``extra points'' to non-profit, municipal, and cooperative providers
when deciding on broadband funding recipients. My concern is that these
measures could hurt commercial-community-based providers with a proven
track record of successfully deploying Internet in rural areas.
Does the Department of Commerce plan to adopt a similar ``points
system'' in their decisionmaking in disbursing funds?
Answer. Each State faces unique circumstances--there is no ``one
size fits all'' solution to broadband deployment. As such, successful
execution of the BEAD Program demands close collaboration between NTIA,
as the program administrator, and the States, who will have significant
flexibility when choosing how to fund broadband deployments. I have
directed NTIA to engage in early and clear communication during all
phases of the process to help the States ensure that the subgrantees
they choose are well equipped to deliver affordable, reliable, high-
speed broadband at every location within their jurisdictions.
Question 3. In your written testimony, you said that the National
Telecommunications and Information Administration (NTIA) has held three
virtual, public listening sessions to help inform the development and
implementation of the broadband program in the law over the past 2
months.
Can you provide some examples of the entities you have already met
with and provide what information is exchanged during these sessions
from the Department?
Are you willing to provide a list of all entities to the
subcommittee that have participated in the listening sessions you refer
to in your testimony?
Answer. We are committed to a robust outreach engagement and
outreach strategy to ensure we hear from diverse stakeholders from
across the country. We are also leveraging strong relationships with
State broadband leaders to gather State input to inform our program
design. NTIA is meeting twice a month with the State broadband leaders
cohort and convened 108 participants representing 50 States and
territories on March 1-2 for a robust two-day summit. NTIA had 1,250
people registered for its first public listening session, which was
held in December. It provided an overview of the new broadband grant
programs authorized and funded by the IIJA. The second session focused
on the Request for Comments on broadband programs in the IIJA. Over 800
people registered for this session. The third session focused on the
BEAD Program. Nearly 700 people registered for this session. Each of
these sessions are posted on the BroadbandUSA website. Since the
hearing, two additional listening sessions occurred, on the Enabling
Middle Mile Broadband Infrastructure program (664 registrants) and
Digital Equity Act programs (636 registrants). Each of these sessions
provided the opportunity for attendees to provide live feedback and
input regarding the session topic via verbal or written comments. The
full recording, transcript, and PowerPoint presentations for each of
these sessions are on the BroadbandUSA website under Events-Past
Events. Registrants included a broad cross-section of stakeholders such
as: local and State governments; Tribal governments; regional councils
and organizations; colleges and universities; private-sector companies;
community and public interest organizations; national associations
representing a variety of stakeholder types; and members of the general
public.
In addition, NTIA's Office of Internet Connectivity and Growth is
holding weekly office hours to meet with both large and small
organizations, including individual States and territories, community
and public interest groups Internet service providers, local government
staff and officials, regional councils, colleges, individual Internet
service providers (ISPs) as well as national associations representing
ISPs, State and local government, etc.
Question 4. Your written testimony seems to emphasize affordability
over connectivity.
Are you prioritizing connections over affordability or
affordability over connections regarding the Broadband Equity, Access,
and Deployment Program (BEAD)?
Answer. The BEAD Program seeks to provide access to affordable,
reliable, high-speed broadband service to all Americans. The IIJA lays
out a clear framework for States to fund broadband infrastructure
projects, which requires prioritizing unserved locations, then
underserved locations, and then community anchor institutions. NTIA
will require that States faithfully adhere to that framework.
Question 5. The Broadband Technology Opportunities Program (BTOP),
an approximately $4 billion grant program administered by NTIA in 2009,
was a disaster in West Virginia. You are ultimately responsible for
distributing $42 billion in broadband funds--just over ten times the
BTOP amount.
How do you plan to ensure that the funds from the infrastructure
bill will successfully deploy high-speed broadband with no fraud,
waste, or abuse to the American taxpayer?
Answer. The Department, NTIA, States, and subgrantees each have a
critical role to play in ensuring that the BEAD Program is implemented
in a manner that ensures transparency, accountability, and oversight
sufficient to, among other things, minimize the opportunity for waste,
fraud, and abuse; ensure that recipients of grants under the Program
use grant funds to further the overall purpose of the Program in
compliance with the requirements of the IIJA, the Uniform
Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards set forth at 2 C.F.R. Part 200, and other applicable
laws and regulations; and to allow the public to understand and monitor
grants and subgrants awarded under the Program. We take these
responsibilities seriously.
I also recognize that each State faces unique circumstances--there
is no ``one size fits all'' solution to broadband deployment. As such,
successful execution of the BEAD Program demands close collaboration
between NTIA, as the program administrator, and the States, who will
have significant flexibility when choosing how to fund broadband
deployments. I have directed NTIA to engage in early and clear
communication during all phases of the process to help the States
ensure that the subgrantees they choose are well equipped to deliver
affordable, reliable, high-speed broadband at every location within
their jurisdictions.
Question 6. Secretary Raimondo, what is your understanding of the
NTIA and FCC's roles in spectrum management?
Answer. NTIA and the FCC have important and complementary roles in
managing the nation's use of spectrum. NTIA is responsible for Federal
Government spectrum use, while the FCC regulates non-Federal use,
including State and local government. Naturally, this requires
extensive coordination and cooperation between the agencies, ranging
from routine matters to significant spectrum allocation and
reallocation decisions. The history of success from their joint work is
impressive, and is a large reason why the United States has led the
world in introducing innovative spectrum management frameworks, from
commercial auctions to advances in spectrum sharing. Most recently, our
emphasis on spectrum for 5G has resulted in 530 megahertz of contiguous
mid-band spectrum being made available with more likely to follow. The
FCC has similarly freed up large swaths of spectrum for unlicensed uses
such as Wi-Fi, a true U.S. success story.
At the same time, we are working to make this relationship even
stronger. The NTIA Administrator and the FCC Chairwoman announced in
February a new Spectrum Coordination Initiative that aims to
meaningfully boost this relationship. The Initiative will include more
regular meetings at both the leadership and staff levels, reviewing and
updating the existing MOU between the agencies, working together to
inform a whole-of-government national spectrum strategy, recommitting
to decisionmaking based on sound engineering and science, and
increasing proactive technical exchange and collaboration including
participation in each other's advisory bodies.
______
Questions Submitted by Senator John Kennedy
Question 1. Secretary Raimondo, I have heard concerns from some
providers about the low-cost option element of the infrastructure
broadband grant program. The legislation forbids NTIA and Commerce from
regulating the rates of service--and many argue that prohibition should
extend to states as well. But even aside from rate regulation, there
are worries that imposing excessive burdens on providers through the
low-cost option will result in those providers not participating in the
grant program.
Will you commit that NTIA and the Department will approach the
requirements for the low-cost option in a measured, standardized way,
and encourage the states to do the same?
Answer. The IIJA expressly provides that nothing in the BEAD
statute should be construed to authorize NTIA to regulate the rates
charged for broadband service. The IIJA does require subgrantees
selected to deploy broadband networks with BEAD Program funds to offer
not less than one low-cost broadband service option for eligible
subscribers and requires that this low-cost option is to be defined by
each state, in consultation with NTIA and subject to the Assistant
Secretary's approval. The Assistant Secretary will seek to ensure that
the low-cost option is implemented consistent with the requirements of
the IIJA.
Question 2. At the White House briefing in November where you spoke
about the IIJA's broadband provisions, you said, ``the whole name of
the game here is to focus on the underserved and the unserved.'' The
unserved areas are the hardest to serve areas that really need the most
attention and help getting broadband.
Will you commit to maintaining that focus on unserved areas? What
can you do to make sure that funds don't stray from this priority
before accomplishing this most important goal of getting broadband to
those who still don't have it?
Answer. The BEAD Program seeks to provide access to affordable,
reliable, high-speed broadband service to all Americans. The IIJA lays
out a clear framework for states to fund broadband infrastructure
projects, which requires prioritizing unserved locations, then
underserved locations, and then community anchor institutions. NTIA
will require that states faithfully adhere to that framework.
Question 3. Many States have indicated the need to establish a
robust challenge process. Once the FCC's maps are complete and NTIA can
begin disbursing funding, there will inevitably be inaccuracies in the
maps. This could be due to error or inaccurately reported data, the
fact that broadband networks are constantly in flux and data is out of
date nearly immediately, or that a provider has a Federal or State
commitment to build a network that meets BEAD speed standards, but it
has not been completed at this time. I have heard from constituents in
my State that NTIA needs to make sure there is adequate opportunity for
interested parties to comment on areas that NTIA and the States deem
eligible for BEAD funding.
Will you commit to allowing ample time for the FCC maps to be
reviewed and, potentially, challenged?
Answer. Pursuant to section 60102(e)(1)(C) of the IIJA, the
Assistant Secretary can begin approving and distributing funding for
State broadband planning purposes after a State files a letter of
intent to participate in the program. The IIJA further directs the
Assistant Secretary, in coordination with the Commission, to allocate
the remaining BEAD funds amongst the States once the broadband DATA
maps are made public. Mapping data is vital, and we are working closely
with our colleagues at the FCC to determine how best to balance the
need to provide certainty regarding the amounts to be allocated to the
states and territories in a timely manner against the need to allow the
FCC, states, and providers to validate the content of the maps.
Question 4. Do you agree that it is important for your Department
to take a balanced approach to the program rules so experienced
providers are incentivized to participate for grant funding?
Answer. Yes
Question 5. Would you also agree that experience in building,
operating, and maintaining broadband networks should be taken into
consideration in grant application reviews?
Answer. Section 60102(g)(2) of the IIJA obligates States to, among
other things, ensure that any prospective subgrantee is capable of
carrying out activities funded by the subgrant in a competent manner in
compliance with all applicable Federal, State, and local laws; has the
financial and managerial capacity to meet the commitments of the
subgrantee under the subgrant, the requirements of the Program, and
such requirements as may be further prescribed by the Assistant
Secretary; and has the technical and operational capability to provide
the services promised in the subgrant in the manner contemplated by the
subgrant award. NTIA will provide guidance to States regarding specific
showings that States should require from prospective subgrantees.
Question 6. Will Commerce abide by the requirement that the
broadband grant program will remain technology neutral, and require
that States do the same?
Answer. There is no ``one-size-fits-all'' approach to broadband
deployment given each State's unique challenges, and NTIA will ensure
that the States have flexibility in identifying technical solutions. In
many cases, the best solution will be fiber. But we will consider any
technology that will meet America's broadband needs now and in the
future, consistent with the requirements set out in the IIJA.
______
Questions Submitted by Senator Bill Hagerty
Question 1. The National Telecommunications and Information
Administration (NTIA) currently operates a budget of $45.6 million
dollars a year--a budget that this subcommittee carefully and
deliberatively crafts each year. Yet, the Bipartisan Infrastructure
legislation has now provided the NTIA with management of nearly $50
billion dollars in broadband grants. That is an astronomical budget
increase of more than 100,000 times. Secretary Raimondo, how will the
NTIA effectively manage such an enormous large increase in
responsibility?
Answer. The Department, NTIA, states, and subgrantees each have a
critical role to play in ensuring that the BEAD Program is implemented
in a manner that ensures transparency, accountability, and oversight
sufficient to, among other things, minimize the opportunity for waste,
fraud, and abuse; ensure that recipients of grants under the Program
use grant funds to further the overall purpose of the Program in
compliance with the requirements of the IIJA, the Uniform
Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards set forth at 2 C.F.R. Part 200, and other applicable
laws and regulations; and to allow the public to understand and monitor
grants and subgrants awarded under the Program. We take these
responsibilities seriously. NTIA is partnering with NIST for grant
support and is augmenting its current capacity with a significant
number of additional hires with significant grant administration
experience to help administer the programs Congress tasked NTIA with in
the IIJA.
Question 2. Secretary Raimondo, NTIA has very little experience in
the grant making process. What is the, is there a plan to ensure that
grant recipients are held accountable?
Answer. NTIA has run in the past and is running several large grant
programs. In addition, the Department has significant grant making
experience which NTIA is leveraging. The BEAD Program, which is the
largest program NTIA is implementing, will require states to submit
multiple plans for review and approval by NTIA. States will also be
required to implement their own programs to minimize waste, fraud, and
abuse. NTIA will be monitoring these processes as the program is being
implemented and executed to ensure that states and subgrantees are
meeting their obligations. In addition, Congress included clawback
provisions in the IIJA for entities that fail to meet their
obligations, NTIA will use these provisions as necessary to ensure that
the program meets its overall goals.
Question 3. The Bipartisan Infrastructure Act details that, in
calculating the allocations for the Broadband Equity, Access, and
deployment (BEAD) program, the NTIA will rely on the FCC's broadband
maps to determine and understand the gaps in service and where Federal
dollars can make the biggest difference. Secretary Raimondo, how are
the FCC maps coming along? Is there a timetable of when those maps will
be released? Has your Department been working in coordination with the
FCC as they develop these maps?
Answer. I have personally spoken with Chairwoman Rosenworcel, and
my staff, NTIA Administrator Alan Davidson, and the staff at NTIA are
in regular communication with leadership and staff at the FCC. On
February 22, 2022, the FCC announced that the window for providers to
file their initial Broadband Data Collection (BDC) data--the data that
will populate the new FCC maps--will open on June 30, 2022, and close
September 1, 2022. On March 4, 2022, the FCC published data
specifications related to the biannual submission of subscription,
availability, and supporting data for the BDC. These are important
steps toward the first publication of the maps.
Question 4. In many cases, official data is not regularly
maintained and misidentifies coverage gaps that would inappropriately
render certain localities ineligible for these funds. Often, data held
by local communities better represents the reality of coverage gaps.
So, in making funding decisions, will NTIA limit itself to the FCC
maps, or will Governors and local officials have discretion to
determine how best to use those dollars?
Answer. Pursuant to section 60102(e)(1)(C) of the IIJA, the
Assistant Secretary can begin approving and distributing funding for
state broadband planning purposes after a state files a letter of
intent to participate in the program. The IIJA further directs the
Assistant Secretary, in coordination with the Commission, to allocate
the remaining BEAD funds amongst the eligible entities once the
broadband DATA maps are made public. I agree that accurate mapping data
is vital, and we are working closely with our colleagues at the FCC to
determine how best to balance the need to provide certainty regarding
the amounts to be allocated to the states and territories in a timely
manner against the need to allow the FCC, states, and providers to
validate the content of the maps.
Section 60102(h)(2) of the IIJA will help to address your concern,
as it requires that each state ``ensure a transparent, evidence-based,
and expeditious challenge process under which a unit of local
government, nonprofit organization, or other broadband service provider
can challenge a determination made by the eligible entity in the
initial proposal as to whether a particular location or community
anchor institution within the jurisdiction of the eligible entity is
eligible for the grant funds, including whether a particular location
is unserved or underserved.'' NTIA has the opportunity and the
obligation to review the results of that challenge process.
Question 5. As you said in your opening statement, a solution for
New York or California may not work in Tennessee. For example,
Tennessee maintains provider and technology neutrality, and
consequently they have had good participation from many different types
of providers. That neutrality has allowed Tennessee to partner with
whoever would best serve an area. In fact, the Bipartisan
Infrastructure bill provides for states to use an all-of-the above
approach to broadband deployment. Secretary Raimondo, will eligible
applicants for these funds be required to demonstrate the ability and
expertise to build and maintain a broadband network before receiving
funds?
Answer. Section 60102(g)(2) of the IIJA obligates states to, among
other things, ensure that any prospective subgrantee is capable of
carrying out activities funded by the subgrant in a competent manner in
compliance with all applicable Federal, State, and local laws; has the
financial and managerial capacity to meet the commitments of the
subgrantee under the subgrant, the requirements of the Program, and
such requirements as may be further prescribed by the Assistant
Secretary; and has the technical and operational capability to provide
the services promised in the subgrant in the manner contemplated by the
subgrant award. NTIA will provide guidance to states regarding specific
showings that states should require from prospective subgrantees.
Question 6. Will the Department of Commerce or individual states
oversee the vetting and application process?
Answer. States will design their own programs in accordance with
guidance provided by NTIA. These programs will include processes for
subgrantee selection and application evaluation. The IIJA requires
states submit both their initial and final plans to NTIA for approval.
In approving state plans, NTIA will carefully review the vetting and
application processes established by states, in addition to the other
required elements, to ensure these processes are in compliance with
guidance NTIA has provided and the overall goals of the BEAD Program.
In addition, NTIA will provide substantial technical assistance to the
states throughout the program to assist states in establishing and
executing their own state programs.
______
Questions Submitted by Senator Mike Braun
Question 1. In the fiscal year 2021 appropriations bill, Congress
directed the Department to ``track the use of, and access to, any
broadband infrastructure . . . in a central database,'' and to provide
an annual report to Congress. In December, NTIA provided its first
report, in which it identified 65 Federal programs across 13 agencies.
The report also notes that NTIA was only able to ``Reflect only those
programs that responded and should not be treated as a comprehensive
view.''
While some of these programs have differing objectives, they often
share nearly identical priorities, like the RDOF, the ReConnect
Program, and Commerce's BEAD program, which all fund broadband
construction programs.
Do you do you support Congressional efforts aimed towards
consolidating the number of Federal broadband programs?
Answer. Meeting the goal of connecting everyone in America with
reliable, affordable, high-speed Internet will require a ``whole of
government'' approach that includes close coordination among Federal,
state, and community actors. We are in regular communication with our
interagency colleagues and the White House Infrastructure Task Force to
ensure full coordination. NTIA, FCC, and USDA signed an MOU in June
2021 that documents their commitment to coordinate resources and
leverage data from each to appropriately identify areas of need, and
work to avoid duplication of efforts where feasible.
Question 2. How can the Commerce Department assist lawmakers in
identifying duplication across Federal broadband programs?
Answer. As you note in your prior question, section 903 of the
Consolidated Appropriations Act, 2021, also known as the ACCESS
BROADBAND Act, established the Office of Internet Connectivity and
Growth within NTIA and required it to, among other things, ``track the
construction and use of and access to any broadband infrastructure
built using any Federal support in a central database.'' Additionally,
section 60105 of the IIJA directs the FCC, ``in consultation with all
relevant Federal agencies, [to] establish an online mapping tool to
provide a locations overview of the overall geographic footprint of
each broadband infrastructure deployment project funded by the Federal
Government.'' This online mapping tool ``shall be . . . the
centralized, authoritative source of information on funding made
available by the Federal Government for broadband infrastructure
deployment in the United States.'' We are working closely with our
colleagues at the FCC to ensure that these tools will help lawmakers,
regulators, providers, and the public to identify where Federal
broadband funding has been committed.
Question 3. My constituents are particularly worried that in
implementing these funds, the Federal government will instruct States
to target more densely populated areas. By doing so, the Federal
government would be abandoning the most at-risk communities, where the
private-sector is least able to derive an investment return. This is a
particular issue that has been raised with me regarding FCC auctions,
as the most rural census blocks are often the most difficult to serve.
Do you expect to insert suggestions into your rulemaking driving states
to focus on population dense areas over rural America?
Answer. The BEAD Program seeks to provide access to affordable,
reliable, high-speed broadband service to all Americans. The IIJA lays
out a clear framework for states to fund broadband infrastructure
projects, which requires prioritizing unserved locations, then
underserved locations, and then community anchor institutions.
Question 4. Today, over-the-top content--``video streaming''--is
exploding in its use like never before. These services can place
serious strain on telecommunications network owner, ISP's, who are
tasked with delivering this data-heavy content to customers. These
problems are particularly serious in high cost rural areas. It would
appear their resources must be devoted to constantly adding capacity
rather than expanding their network to reach more unserved. But the
Federal government doesn't appear to have great data on the costs these
services add to rural network operation. I've introduced a bill to have
the FCC study this question.
Are you familiar with the costs associated with transmitting large
amounts of video data to small, rural ISPs in the rural areas of this
country?
Answer. NTIA will work with our colleagues at the FCC to explore
the issue.
Question 5. How will the Commerce Department consider these added
costs when the NTIA and the States award Federal dollars to ISPs
throughout the country to build broadband networks where they are
needed the most?
Answer. NTIA will work with our colleagues at the FCC to explore
the issue.
Question 6. The Infrastructure Investment and Jobs Act, as well as
the American Rescue Plan, encourage the use of Advanced Digital
Construction Management Systems to expedite the utilization, execution,
and oversight of projects funded. It is my understanding that the Route
6/10 Interchange Reconstruction project in Providence, which is the
largest in RIDOT history, is using the technology. Please provide for
the record the steps the Department has taken to require and facilitate
the utilization of these project management technologies?
Answer. NTIA is developing a robust technical assistance plan to
allow states to learn from each other about best practices. NTIA will
evaluate whether to include Advanced Digital Construction Management
Systems as one element of the project management technical assistance.
______
Questions Submitted by Senator Richard Shelby
Question 1. Secretary Raimondo--During the hearing, you mentioned
that the Federal Communications Commission would likely complete its
updated broadband mapping data by the summer of 2022. Given that the
new FCC mapping data will be vital in determining each states'
allocation of remaining Broadband Equity, Access, and Deployment (BEAD)
funds, it is important that the FCC mapping data is accurate and that a
process is established to reconcile potential differences between the
new FCC mapping data and existing state mapping data prior to the
Department's disbursements of BEAD funds.
Therefore, at what point will the Department determine that BEAD
funds should begin to be distributed for state broadband planning
purposes if challenges between state mapping data and the new FCC
mapping data occur?
Answer. Pursuant to section 60102(e)(1)(C) of the IIJA, the
Assistant Secretary can begin approving and distributing funding for
state broadband planning purposes after a state files a letter of
intent to participate in the program. The IIJA further directs the
Assistant Secretary, in coordination with the Commission, to allocate
the remaining BEAD funds amongst the states once the broadband DATA
maps are made public. I agree that accurate mapping data is vital. We
are working closely with our colleagues at the Federal Communications
Commission (FCC) to determine how best to balance the need to provide
certainty regarding the amounts to be allocated to the states and
territories in a timely manner against the need to allow the FCC,
states, and providers to validate the content of the maps.
SUBCOMMITTEE RECESS
Senator Shaheen. And the hearing is adjourned.
[Whereupon, at 4:30 p.m., Tuesday, February 1, the
subcommittee was recessed, to reconvene subject to the call of
the Chair.]