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2023 Broadband Grants Report, State Broadband Office (June 13, 2023)

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2023 Commercereports Sbo Infrastructure Grantsfinal 69Ae5A4D 750D 40A9 B6Fb
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2023 Commercereports Sbo Infrastructure Grantsfinal 69Ae5A4D 750D 40A9 B6Fb

Summary

The 2023 Broadband Grants Report of the Washington State Broadband Office, submitted to the Legislature on June 13, 2023 under Laws of 2022, Chapter 296 (SSB 5651, Section 1041(4)). It reports that the office administers $325,973,000 in broadband infrastructure grants, comprising $150,966,000 from the Coronavirus State and Local Fiscal Recovery Fund, $124,749,000 from the Coronavirus Capital Projects Account and $50,258,000 from the State Capital Construction Account. In the first round of its Broadband Infrastructure Acceleration Grant program the office received 53 pre-applications requesting more than $415 million and awarded 13 projects totaling nearly $141 million, and in the second round received 50 applications and awarded 19 projects totaling more than $121 million in May 2023. It also reports a $30 million award under the NTIA Broadband Infrastructure Program.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

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“2023 Broadband Grants Report, State Broadband Office (June 13, 2023).” Original at app.leg.wa.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-commercereports-sbo-infrastructure-grantsfinal-69ae5a4d-750d-40a9-b6fb/, SHA-256 e8e3729caf1a97b21bf64a763c0d4ead21cc87fc882ff53b186f91fa41b21b6c.

Full text

Submitted by the State Broadband Office pursuant to Laws of 2022,
Chapter 296, the 2022 supplemental capital budget (SSB 5651,
Section 1041(4))




                                              June 13, 2023

       STATE BROADBAND OFFICE                 Report to the Legislature

                                              Director Mike Fong
V3.2
Acknowledgments
Washington State Department of Commerce
Mark K. Barkley, Assistant Director, Local Government Division

Buck Lucas, Policy and Communications Manager

Washington State Broadband Office
Mark Vasconi, Director

Erika Henry, Deputy Director

Connie Rivera, Broadband Infrastructure Programs Manager

Al Alden, Broadband Infrastructure Supervisor

Tammy Mastro, Broadband Senior Specialist

Chelsea Bagwell, Broadband Infrastructure Specialist

Jason Freeze, Broadband Infrastructure Specialist

Sean Ardussi, Interim Digital Equity Manager

Natasha Davis, Administrative Assistant 3


Washington State Department of Commerce
WASHINGTON STATE BROADBAND OFFICE
Mark Vasconi, Director

Mark.Vasconi@commerce.wa.gov

Phone: 360-918-1241

1011 Plum St. SE
P.O. Box 42525
Olympia, WA 98504-2525

www.commerce.wa.gov

For people with disabilities, this report is available on
request in other formats. To submit a request, please
call 360-725-4000 (TTY 360-586-0772)




 2023 BROADBAND GRANTS REPORT
Table of Contents
Executive summary...................................................................................................................................... 2

Acceleration Grants: ARPA Coronavirus State and Local Recovery Fund (SLFRF) .......................................... 3

Acceleration Grants: ARPA Coronavirus Capital Funding .............................................................................. 5

Matching grants for federal funding opportunities ........................................................................................ 7

Federal grant applications............................................................................................................................ 8

NTIA Broadband Infrastructure Program ...................................................................................................... 9

NTIA Tribal Broadband Connectivity Program .............................................................................................. 9




  2023 BROADBAND GRANTS REPORT                                                                                                                       1
Executive summary
Authorizing legislation
The 2021-23 state capital budget, Chapter 332, Laws of 2021 (Sec. 1086(4)), amended in the 2022
supplemental capital budget, Laws of 2022, Chapter 296 (Section 1041(4)), directs the Washington State
Broadband Office (WSBO) to report on infrastructure grants awarded in the previous fiscal year:

By January 30, 2023, the statewide broadband office must develop and submit a report regarding the grants
established in subsections (2) and (3) of this section to the office of financial management and appropriate
fiscal committees of the legislature. The report must include:

   The total number of applications and amount of funding requested
   A list and description of projects approved for grant funding in the preceding fiscal year
   The total amount of grant funding disbursed during the preceding fiscal year
   The total amount of funds obligated and timing of when the funds were obligated in the preceding fiscal
   year
   For projects funded in the prior biennium, the outcomes achieved by the approved projects

Overview
The WSBO (RCW 43.330.530) is housed in the Department of Commerce. Its key mandate is to have high-
speed internet access for all by 2024, and 150 Megabits per second (Mbps) symmetrical (upload and
download speeds) services by 2028. The WSBO has built and continues to expand key partnerships, helped
launch projects and, most importantly, established a foundation for action at a larger scale.

In establishing the WSBO, the Legislature found that increasing broadband access to unserved areas of the
state serves a fundamental governmental purpose and that achieving affordable and quality broadband access
for all Washingtonians requires additional and sustained investment. The WSBO has served as the central
broadband planning body for the state since its creation.

In 2021, the governor and the Legislature entrusted the WSBO with administering more than $326 million in
broadband infrastructure grants appropriated in the 2021-23 capital budget, and amended the distribution of
federal American Rescue Plan Act (ARPA) funds in the 2022 supplemental capital budget (SB 5651). These
funds include:

   Grants to qualifying broadband infrastructure projects: $325,973,000 total

      $150,966,000 from the Coronavirus State and Local Fiscal Recovery Fund (SLFRF)
      $124,749,000 from the Coronavirus Capital Projects Account (CPF)
      $50,258,000 the State Capital Construction Account

   Grants to eligible applicants as match to leverage federal broadband infrastructure funding: $50 million
   from the State Building Construction Account

Since the conclusion of the 2021 legislative session, the WSBO has continued to focus on developing internal
staff capacity, facilitating community-based project partnerships and working closely with diverse stakeholder
groups to administer these funds successfully. Project application requests have exceeded funding amounts
available as communities develop projects to meet their community broadband needs.



 2023 BROADBAND GRANTS REPORT                                                                                  2
Acceleration Grants: ARPA Coronavirus State and Local
Recovery Fund (SLFRF)
Key findings
There is significant demand for broadband infrastructure funding and communities are ready to champion
projects.

   The WSBO received 53 pre-applications requesting more than $415 million from an available pool of
   approximately $143 million in the first phase of the Broadband Infrastructure Acceleration Grant program,
   which opened in fall 2021.
   The WSBO awarded funding to 13 projects, totaling nearly $141 million.
   The remaining funds are set-aside for bid or material cost increases, program administration, and $5
   million in funding for broadband equity and affordability grants, which will be made in consultation with the
   Office of Equity.

Most of the contracts for Acceleration Grants awarded with ARPA SLFRF funds were executed in the fall of
2022, and only one grantee had submitted pay reimbursement request as of the writing of this report. The
WSBO continues to monitor for cost overruns associated with labor and material supply shortages in addition
to cost increases due to the inflationary environment within the construction industry.

Table 1: ARPA SLFRF awards

                                   Contract
                                   execution    Total project     Contract        Amount         Balance of
 Grantee          Project title    date         cost              awarded         expended       contract

 Adams County     Adams County     11/2/22      $10,678,708        $10,320,889     $0            $10,320,889

 Clallam          Clallam County
                                   1/3/23       $17,861,094       $16,074,985     $0             $16,074,985
 County           Broadband

                  Confederated
 Confederated
                  Tribes of the
 Tribes of the
                  Colville         1/3/23       $4,507,273        $4,097,518      $0             $4,097,518
 Colville
                  Reservation
 Reservation
                  Broadband

                  King County
 King County                       10/29/22     $13,148,109       $11,833,300     $0             $11,833,300
                  Broadband

                  Lewis County
 Lewis County     Broadband        10/11/22     $25,850,000       $23,500,000     $0             $23,500,000
                  Expansion

                  Connecting
 Lincoln County                    11/3/22      $5,218,072        $5,218,072      $0             $5,218,072
                  Lincoln County




 2023 BROADBAND GRANTS REPORT                                                                                  3
                                 Contract
                                 execution    Total project    Contract       Amount        Balance of
Grantee         Project title    date         cost             awarded        expended      contract

                Nisqually
Nisqually
                Thurston Co      12/15/22     $6,775,496       $6,775,496     $0            $6,775,496
Indian Tribe
                OAN Phase II

                Whatcom
Port of
                County           11/17/22     $5,000,000       $4,000,000     $0            $4,000,000
Bellingham
                Broadband

                Port of
Port of
                Whitman
Whitman                          9/15/22      $1,329,500       $1,062,000     $0            $1,062,000
                County
County
                Broadband

PUD No 1 of
                Jefferson
Jefferson                        8/22/22      $11,425,040      $9,718,934     $266,677      $9,452,256
                North Fiber
County

                Snohomish
Snohomish
                County and       *            $25,723,469      $16,713,615    $0            $16,713,615
County
                Ziply - SR 530

                Spokane
Spokane Tribe   Tribe's
                                 **           $18,686,910      $16,837,920    $0            $16,837,920
of Indians      Broadband
                Acceleration

Washington
Independent
Telecommunic
                WITA Member      11/28/22     $16,517,497      $14,865,747    $0            $14,865,747
ations
Association
(WITA)

Total                                         $162,721,168     $141,018,476   $266,677      $140,751,798

* Snohomish County has been reviewing its contract since August 2022.

** The Spokane Tribe applied to both NTIA Tribal Broadband and WSBO ARPA SLFRF for the identical project and
funding. Both sources awarded the project. The NTIA and WSBO are working with the tribe in adjusting the scope
of work and funding award.




2023 BROADBAND GRANTS REPORT                                                                              4
Acceleration Grants: ARPA Coronavirus Capital Funding
Key findings
The second round of acceleration grants in the 2021-23 biennium opened in the fall of 2022 with up to $122
million available. While outside of the scope required by the authorizing legislation, details about these awards
continue to demonstrate the significant demand for community-led broadband infrastructure projects statewide.

   The WSBO received 50 applications requesting more than $316 million for the second round of the Broadband
   Infrastructure Acceleration Grant program.
   The WSBO awarded funding to 19 projects, totaling more than $121 million in May 2023. As of the publication
   of this report, no grantees were under contract and no funds were expended.

Table 2: ARPA CPF awards

                                     Contract
                                     execution    Total project     Contract        Amount         Balance of
 Grantee           Project title     date         cost              awarded*        expended       contract*

 Franklin          Connell and
 County PUD        Basin FTTH        N/A                            $4,854,610      $0             $4,854,610
 No. 1             project

                   Grays Harbor
                   South Elma,
 Grays Harbor      Porter and
                                     N/A                            $6,916,366      $0             $6,916,366
 PUD No. 1         Cedarville
                   Broadband
                   project

 Jefferson
                   Inbetweens
 County PUD                          N/A                            $6,087,687      $0             $6,087,687
                   Fiber project
 No. 1

                   King County,
 King County       Ziply to Duvall   N/A                            $1,767,681      $0             $1,767,681
                   project

                   Kittitas County
 Kittitas County   WSBO 2022         N/A                            $11,366,102     $0             $11,366,102
                   project

 Lewis County      Bunker Creek
                                     N/A                            $11,958,421     $0             $11,958,421
 PUD No. 1         project

                   Deer Meadows
                   and Seven
 Lincoln County                      N/A                            $8,921,342      $0             $8,921,342
                   Bays FTTx
                   project




2023 BROADBAND GRANTS REPORT                                                                               5
                   Okanogan
 Okanogan
                   County
 County Electric                    N/A                           $11,985,014     $0             $11,985,014
                   Connect
 Co-Op
                   project

 Orcas Power
                   Outer Islands
 and Light Co-                      N/A                           $6,446,206      $0             $6,446,206
                   project
 Op

 Orcas Power
                   Orcas Island
 and Light Co-                      N/A                           $3,911,649      $0             $3,911,649
                   East project
 Op

 Orcas Power
                   San Juan
 and Light Co-                      N/A                           $3,352,904      $0             $3,352,904
                   Island project
 Op

 Orcas Power
                   Orcas Island
 and Light Co-                      N/A                           $1,242,168      $0             $1,242,168
                   West project
 Op

                   Bow Outlying
 Port of Skagit
                   Areas FTTx       N/A                           $8,054,251      $0             $8,054,251
 County
                   project

 Port of           the Port of
 Whitman           Whitman FTTx     N/A                           $1,135,475      $0             $1,135,475
 County            project

                   Spokane Tribe
 Spokane Tribe     HWY 231 FTTH     N/A                           $3,418,063      $0             $3,418,063
                   project

                   Central
 Tri County
                   Stevens County
 Economic
                   Hybrid           N/A                           $12,000,000     $0             $12,000,000
 Development
                   Broadband
 District
                   project

 Whatcom           Point Roberts
                                    N/A                           $3,150,000      $0             $3,150,000
 PUD No. 1         FTTx project

                   Yakima County
 Yakima County     WSBO 2022        N/A                           $11,310,004     $0             $11,310,004
                   project

 Total                                                            $121,523,711    $0             $121,523,711

* No grantees are currently under contract for these awards made in May 2023, and all awards are conditional on
receipt of the CPF resources from the U.S. Treasury.




2023 BROADBAND GRANTS REPORT                                                                             6
Points of emphasis
      Supporting local efforts to create public-private partnerships is essential.

Relationships between service providers and community leaders are key to designing broadband service
solutions. One model for convening these conversations is the Broadband Action Team (BAT). There are BATs
serving residents and businesses across the state, with the goal to bring access to high-speed internet
connectivity, internet-capable devices and the digital skills to use them to every resident.

      Beyond the physical infrastructure, service must be accessible to end users.

Constructing infrastructure alone is not enough. If the intended customers cannot afford to use the service or
lack digital literacy skills or devices to access it, they are just as excluded from modern society as those without
the infrastructure. When awarding grant funds, the WSBO ensures that applicants are participants in the federal
Affordable Connectivity Program (ACP) and supports digital equity efforts by providers and community-based
organizations.


Matching grants for federal funding opportunities
The WSBO opened applications for matching grants for federal broadband infrastructure funding opportunities in
fall 2021. We accept applications on an ongoing basis and will evaluate them as they are received. The WSBO
commits matching grant funds to eligible applicants with projects that secure a federal funding award. The total
available is $48.5 million from the State Building Construction Account.

The WSBO anticipates applicants for the USDA ReConnect Program (ReConnect) will drive demand for matching
grant funds. The most recent ReConnect application cycle opened September 6, 2022 and closed nearly eight
weeks later on November 2, 2022. Additional ReConnect funds may be made available in 2023, and that is
dependent on inclusion in the federal budget. ReConnect requires grantees provide a 25% match for 100% grant
awards, except for tribal and socially vulnerable communities. For awards that are 100% loan or a loan and grant
combination, there is no match requirement.

Due to the high cost of materials and delivery delays, the WSBO matched several Community Economic
Revitalization Board (CERB) ARPA Capital awardees. These additional funds ensure completion of the project’s
scope of work. The WSBO prioritizes projects that received funding from the CERB or Public Works Board (PWB)
for a previous phase of the same or a related project to maximize collaboration with other broadband
infrastructure funders.

The WSBO awarded matching funding to 10 projects, totaling more than $17 million, and have several additional
funding requests under consideration at this time, but which were not finalized as of the writing of this report. In
addition, only one grantee had submitted a pay reimbursement at the time of this report.

Table 3: State matching funds for federal grants

                               Award      Total                                                        Federal
               Project
 Grantee                       Letter     project        Contract        Amount         Balance of     match
               title
                               Date       cost           awarded         expended       contract       source

 PUD No 1 of   Olympic Fiber   3/1/22     $12,191,477    $8,150,966      $907,770       $7,243,196     NTIA-BIP




2023 BROADBAND GRANTS REPORT                                                                                      7
  Jefferson     Corridor
  County


                Ellensburg Fiber
  City of       Extension and
                                   8/18/22    $546,966      $109,393      $0             $109,393       NTIA-BIP
  Ellensburg    Fixed Wireless
                Broadband


                USDA                                                                                    USDA
  Lewis
                Community          10/18/22   $3,750,000    $750,000      $0             $750,000       Community
  County PUD
                Connect                                                                                 Connect


  PUD No 1 of
                SE Jefferson                                                                            USDA
  Jefferson                        10/24/22   $18,404,464   $4,601,116    $0             $4,601,116
                Fiber Project                                                                           ReConnect
  County


  Port of                                                                                               CERB ARPA
                Sauk Suiattle      11/16/22   $2,400,000    $600,000      $0             $600,000
  Skagit                                                                                                Capital


  Port of
                Pine                                                                                    CERB ARPA
  Whitman                          11/29/22   $2,168,651    $433,730      $0             $433,730
                City/Malden                                                                             Capital
  County


                Nisqually
  Nisqually                                                                                             CERB ARPA
                Thurston OAN       12/22/22   $2,653,351    $653,351      $0             $653,351
  Tribe                                                                                                 Capital
                Phase 1


                Dayton
                                                                                                        CERB ARPA
  Port of       Community          1/26/23    $3,156,622    $808,333      $0             $808,333
                                                                                                        Capital
  Columbia      Broadband


                FTTx in Almira,
  Lincoln                                                                                               CERB ARPA
                Creston and        1/25/23    $3,273,200    $818,300      $0             $818,300
  County                                                                                                Capital
                Harrington


  Port of       Ariel to Cougar                                                                         CERB ARPA
                                   1/25/23    $2,635,328    $658,832      $0             $658,832
  Woodland      FTTH                                                                                    Capital


  Total                                       $51,180,059   $17,584,021   $907,770       $16,676,251




Federal grant applications
To advance WSBO's mission to ensure all Washingtonians have access to high-speed internet service, the
WSBO applied directly for federal funds. It also assists in helping applicants find federal funding and other
grant opportunities for deploying broadband services.

In summer 2021, the WSBO applied on behalf of local projects for funding under the National
Telecommunications and Information Administration (NTIA) Broadband Infrastructure Program (BIP).

In addition, the WSBO applied to NTIA in 2022 for the:

   State Digital Equity Planning Grant Program. WSBO was awarded $1,076,248.79 on Dec. 1, 2022. This is a
   one-year contract to develop a digital equity plan for Washington. The plan serves as an important step
   toward determining barriers for digital access for all communities throughout the state, and identifies the
   specific measures to address those barriers.

 2023 BROADBAND GRANTS REPORT                                                                                      8
    State Broadband, Equity, Access and Deployment (BEAD) Planning Grant Program. WSBO was awarded
    $5 million on Nov. 15, 2022. This five-year contract supports the WSBO with staffing and the initial planning
    activities to developing a five-year action plan and the initial proposal.


NTIA Broadband Infrastructure Program
In response to the NTIA Broadband Infrastructure Program (BIP) grant announcement, the WSBO issued a
request for information soliciting eligible projects to apply on behalf of the state. The WSBO submitted a single
application requesting $30 million in grant funding on behalf of the covered partnerships and broadband
projects detailed in Table 4 below.

Table 4: NTIA BIP awards

                                        Contract      Total
                     Project                                          Contract         Amount          Balance of
 Grantee                                execution     project
                     title                                            awarded          expended        contract
                                        date          cost

                     Stevens County
 Declaration
                     Broadband          11/30/22      $7,469,450      $6,866,950       $0              $6,866,950
 Networks Group
                     Deployment


                     Ellensburg Fiber
                     Extension and
 Ellensburg                             11/10/22      $546,966        $437,573         $0              $437,573
                     Fixed Wireless
                     Broadband


                     Northern Hood
 Hood Canal
                     Canal Fiber        12/20/22      $13,070,841     $12,581,641      $0              $12,581,641
 Communications
                     Extension


                     Olympic Fiber
 Jefferson PUD                          10/19/22      $12,191,477     $6,153,426       $0              $6,153,426
                     Corridor


                     Connecting
 Ziply                                  11/3/22       $5,267,345      $3,960,410       $0              $3,960,410
                     Rural Counties


                        Total                         $38,546,079     $30,000,000      $0              $30,000,000




No construction work could occur until completion of the Environmental Assessment (EA) required within Section 106.
Approval of the EA took longer than anticipated, and was approved by the NTIA in December 2022.



NTIA Tribal Broadband Connectivity Program
The Tribal Broadband Connectivity Program offered by the NTIA in summer 2021 made $980 million available
for federal assistance for federally recognized tribes. The NTIA will allocate up to $500,000 to any federally
recognized tribe that submitted an application, and additional funding up to $50 million for broadband
infrastructure deployment. The WSBO invited all the federally recognized tribes in Washington to consider
applying.

We provided tribes with no-cost grant writing services for their applications, with resources allocated in the
state operating budget. This outreach resulted in 13 tribes submitting applications seeking grant funds totaling


 2023 BROADBAND GRANTS REPORT                                                                                         9
$130 million. The NTIA announced initial awards in October 2022 and are continuing to review to make
additional awards on a rolling basis.

In addition, the second round for the Tribal Broadband Connectivity Program is anticipating opening in spring
2023. The WSBO has five tribes that requested grant-writing services for their application submittal.




 2023 BROADBAND GRANTS REPORT                                                                              10


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