Oregon Broadband Advisory C ouncil Meeting DRA FT - Oregon.gov
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O r e g o n B r o a d ba n d A d v i s o r y C o u n c i l M e e t i n g DRAFT July 22, 2021 Virtual Meeting Attendance Members Present: Kurtis Danka; Joseph Franell, Chair; Wade Holmes; Lonny Macy; Representative Pam Marsh [non-voting], Galen McGill; Rick Petersen; Jeremy Pietzold, Vice Chair; Cheri Rhinhart; Dave Sabala; Commissioner Mark Thompson; Commissioner David Yamamoto Staff Present: Daniel Holbrook, Nick Batz, Suzy Miller, Arthur Chaput, Allison Field, Larry Holzgang, Rebecca Craven, Ryan DeGrofft Guests: Barry Walton; Corning Canada; Colleen DeShazer, Verizon; Jay Gratchner; Lori Gleichman; Nicola Peterson, PUC; Peter Cohen, Marion County Economic Development; Stuart Taubman, VP Business Development Zayo Group; Alexandra Corvello; Anna Sovereign, House Republican Office; Barry Shullanberger; Barry Walton; Brant Wolf, Oregon Telecommunications Association; Bret Farrell, Oregon Public Utility Commission; Carrie Pipinich; Charles Deister, Charter; Colleen DeShazer, Verizon Network Engineering; Cynthia Gaffney, Private Citizen advocating for rural broadband; Danielle Gonzalez, Marion County Economic Development; David Mills, Monroe Telephone Company and Broadband; Denise Stilwell, SCOEDD; Ginny Lang; Paul Grove, Comcast; Harvey Bragg, Jackson County. Sr. Deputy County Administrator; Jacqueline Knights, Treasury; James Rennard, Pioneer Connect; Jay Gratchner; Jenna Jones, League of Oregon Cities; Jessica Epley; Jonathan Eames; Josh Kvidt, Alyrica Networks; Justin Chase; Kevin Sullivan; Lori Gleichman; Madeline Do; Maggie Emery; Mallorie Roberts; Melanie Lasley, Lake County; Montana Lewellen, Oregon Cable Telecommunications Association; Morgan Greenwood, Central Oregon Intergovernmental Council; Paul Recanzone; Peter Cohen; Pritam Kerkar, Peak Internet; pamRebecca Gibbons; Robbie Wright, Hyak; Shelley Westall; Steve Corbato, Link Oregon; Steven Vance; Stuart Taubman Chair Franell called the meeting to order and introductions were made. Welcome, Introductions, Minute Approval Chair Franell called for a motion to approve the June 24, 2021, minutes with one noted name correction for Councilor Sabala. Councilor Sabala moved the motion, and Commissioner Yamamoto seconded the motion. The council approved the motion for the June 24, 2021, meeting minutes. State and National Broadband Activity Updates Daniel Holbrook reported on the following state and national broadband activity regarding infrastructure deployment, technology, market trends, public policy, and illustrations of the value of broadband adoption and utilization since the council’s last meeting. Group Name Meeting, Date, City Page 1 of 15
Draft Minutes SCOTUS Denial of Certiorari in City of Portland v. FCC Renders Effective FCC's Rulings on Access to Municipal Utility Poles and Rights-of-Way On June 28, 2021, the U.S. Supreme Court denied the petition for certiorari filed by consortiums of various municipal governments and associations seeking to overturn the Ninth Circuit's decision in City of Portland v. FCC, which upheld the Federal Communications Commission's (FCC) extension of Section 253 protections to municipal property in the public right-of-way, including utility poles. Accordingly, as concluded by the FCC in its 2018 Declaratory Ruling, municipalities may not take actions that prohibit or have the effect of prohibiting access to utility poles for the provision of telecommunications services. In the same decision, the FCC concluded that municipal fees for access to the rights-of-way (and property in the ROW) have the effect of prohibiting access unless they are based on objectively reasonable costs of providing access. Specifically, the FCC concluded that "effective prohibition extends to fees for all government-owned property in the [right-of-way], including utility poles." In upholding the FCC, the Ninth Circuit rejected arguments of the municipalities that the FCC's interpretation of Section 253 evaded the municipal exemption in Section 224 governing pole attachments, concluding "The FCC responded appropriately when it said, 'nothing in Section 253 suggests such a limited reading, nor does Section 224 indicate that other provisions of the Act do not apply' …. Because Section 253 does not exempt public power utilities from its terms, the FCC reasonably relied on Section 253 to regulate such utilities." See our prior advisory on the Ninth Circuit upholding the FCC's orders. Facebook Donates $225,000 for Prineville Connected Community Wi-Fi Enhancement Project —The project will provide free public Wi-Fi across Prineville, including in downtown, Crook County High School and the Crook County Fairgrounds— Prineville, Ore. (July 12, 2021)–Facebook is providing a $225,000 grant for the Prineville Connected Community Project, which will provide robust internet connectivity across the city. Wi-Fi access points will be built in key areas, including in Downtown Prineville, the Crook County High School campus and the Crook County Fairgrounds. The project will enable free public Wi-Fi for thousands of people who may have limited internet access at home or restrictions on their phone data plans, and will support Prineville’s small- business community, events, students and their families. Wi-Fi hotspot installation is scheduled to begin this summer. “We are absolutely thrilled and overwhelmed by Facebook’s support of this incredibly impactful project,” said Mayor Jason Beebe. “The Prineville Connected Community Project will improve our residents’ lives by connecting people through the power of technology, as well as helping Prineville small businesses thrive by driving foot traffic to downtown businesses and fairground vendors. It will help create spaces to gather and connect, enhancing the city’s open spaces, community gathering areas, downtown parks and walkways. It will also enable parents and family members to Oregon Broadband Advisory Council Meeting, July 22, 2021, virtual Page 2 of 15
Draft Minutes watch live video broadcasts of student activities hosted here. Thank you, Facebook, for being such an outstanding community partner.” “We are excited to partner with Prineville Downtown Association, Prineville Crook County Chamber of Commerce, Crook County and Crook County School District on this important project,” said William Marks, Facebook community development regional manager. “We’ve been a proud community partner since announcing the Facebook Prineville Data Center in 2010, and we’re happy to continue deepening our local support. We really love this project, as it has such widespread community impact, from students to small businesses.” The Wi-Fi access will provide sweeping community benefits. Increasing downtown connectivity speeds will help support small businesses and drive foot traffic, and will also support the Crook County Library and its visitors and programs. “Library patrons will greatly benefit from the increased outside coverage. Our expanded network will enable unserved or underserved members of the public to access the internet beyond the library hours, facilitating job searches, education, public services access and more,” said April Witteveen, director of library services, Crook County Library. By having Wi-Fi at Crook County High School’s auditorium, gymnasium and athletic fields, parents and family members can watch live video broadcasts of student activities such as graduation, athletics, plays, ceremonies and school assemblies. The internet speed at Crook County Fairgrounds will increase from 10 MB to 1 GB, enabling vendors to process credit card transactions quickly and efficiently by cellphone. The fairgrounds is also the official overflow for the local St. Charles hospital and needs a strong internet connection in case of emergencies. “The continued commitment by Facebook to the community of Prineville embodies what a good corporate and community partnership should look like. Crook County has always been a ‘get ’er done’ community, and it sure seems like Facebook shares our values,” said Rep. Vikki Breese Iverson. “Small businesses are the lifeblood of our community; adding the Wi-Fi to our downtown core and surrounding areas will help support the people and businesses that keep our community running,” said Crook County Court Judge Seth Crawford. “Thank you, Facebook, for once again stepping up for our community and small businesses.” The Prineville Downtown Association will act as the nonprofit partner and manage the Prineville Connected Community Project implementation, and PrineTIME Internet Solutions will be the primary local internet provider. Two years of internet service are included in the grant, and the Prineville Downtown Association and Crook County School District have agreed to maintain service after that time. Oregon Broadband Advisory Council Meeting, July 22, 2021, virtual Page 3 of 15
Draft Minutes Low-Earth Orbit (LEO) Satellite Elon Musk’s SpaceX in October 2020 launched its “Better Than Nothing Beta” test of its Starlink LEO satellite internet service. The beta has a $499 set up fee associated with the equipment needed to connect, and a $99 monthly fee. A Starlink spokesperson explained: “Expect to see data speeds vary from 50Mb/s to 150Mb/s and latency from 20ms to 40ms over the next several months as we enhance the Starlink system. There will also be brief periods of no connectivity at all.” Amazon is also launching a massive LEO project Kuiper-Starlink which ended up being a controversial big winner Viasat is challenging, called in the Rural Digital Opportunity Fund (RDOF) reverse auction, winning $885.5 million of the $9.2 billion available.3 Competitor certain of Starlink’s service claims that qualified it for RDOF funding. Separately, early June 2021 saw three court challenges of FCC decisions regarding Starlink. Dish Network filed its federal court challenge … in the D.C. Circuit, asserting that the FCC wrongfully gave SpaceX's so-called satellite constellation permission to flout usage rules in the 12 GHz band, which "would cause unacceptable interference" with Dish's satellite TV transmissions. A day earlier, Viasat told the D.C. Circuit that it faces "a risk of collisions with debris attributable to SpaceX's satellite constellation; the expenditure of time and resources to avoid collisions with or interference from SpaceX's satellites or associated debris; and competitive injury from SpaceX's use of its environmentally irresponsible constellation to compete directly with Viasat in the market for satellite broadband services." A third challenger, consulting firm the Balance Group, asserted Thursday that the FCC skipped important environmental review steps before approving SpaceX's constellation changes. Indicators of Broadband Need Map —this map will answer the question of why and where to invest in digital equity, what is the gap; Oregon is on par with Idaho but way behind Washington and California. NTIA recently announced a new publicly available digital map that displays key indicators of broadband needs across the country. This is the first interactive, public map that allows users to explore different datasets about where people do not have access to quality broadband. The Indicators of Broadband Need map integrates data from both public and private sources and contains data aggregated at the county, census tract, and census block level. Speed-test data provided by M-Lab and Ookla help illustrate the reality that many parts of the country report speeds that fall below the FCC’s current benchmark for fixed broadband service of 25 Mbps download and 3 Mbps upload. This map will be released today. The map also allows users to see the relationship between poverty and Internet usage, also displaying how areas of high poverty relate to lack of access to computers and related equipment. Usage patterns in tribal communities, which have historically suffered from lack of internet access, are included in the map as well. Oregon Broadband Advisory Council Meeting, July 22, 2021, virtual Page 4 of 15
Draft Minutes Draft Bill Text Spells Out Senate's Potential Broadband Approach Senators involved in bipartisan infrastructure negotiations have crafted legislative language for how to spend key parts of the $65 billion aimed at closing the digital divide, according to draft text obtained by POLITICO—a sign of progress amid heightened tensions surrounding the overall infrastructure efforts. The details emerged as senators hashed out the bipartisan framework’s contours. Although the text still captures major Democratic priorities—such as billions in grants for broadband buildout and attention to digital equity and literacy—the plan would leave out more contentious elements proposed by Democrats, such as emphasis on municipal broadband, internet billing transparency and super-fast internet speed requirements favoring rollout of "future-proof" fiber internet. The bipartisan infrastructure framework is itself in limbo as Senate Majority Leader Chuck Schumer charges forward with a procedural vote to begin consideration of legislation on Wednesday. Although President Joe Biden and the bipartisan group agreed on the broad framework, Republicans warn they may block the measure over concerns about vast portions of the deal that remain unwritten and unsettled debates around how to pay for the historic proposed investments. The 154-page Senate proposal now circulating would give $40 billion—the lion's share of the broadband cash—to the Commerce Department for a grant program known as the Broadband Equity, Access and Deployment Program, which the agency would need to set up within six months, according to draft text obtained by POLITICO. States would be eligible to bid for this funding directly, as negotiators like Senator Angus King (I- Maine) favored. The senate plan would ensure that all 50 states get at least $100M each and reserve money for territories. Disbursement would rely on updated broadband mapping that the FCC is now statutorily required to assemble. And despite broad frustration that this standard is too low, the plan would focus on getting money to "unserved" areas that lack the current FCC definition of broadband—speeds of 25 Megabits per second download and 3 Megabits per second upload. The legislation would deem an area as “underserved” if its broadband service is less than 100/20 Mbps—a lobbying win for the wireless, satellite and cable interests worried that Democrats might impose a standard of 100/100 Mbps and crowd out their ability to vie for cash. There are still unsettled issues in the draft text. Bracketed sections note ongoing deliberation in some areas—such as a placeholder on provision of a “low-cost broadband option.” These broadband pricing issues have proved especially sticky and often partisan. Democrats have wanted to demand more billing transparency while Republicans balk at what they say is marketplace intrusion. Oregon Broadband Advisory Council Meeting, July 22, 2021, virtual Page 5 of 15
Draft Minutes The text also includes language meant to favor projects based on how quickly they can be rolled out and includes the Digital Equity Act, which would create grants to help with broadband adoption and other equity issues. During Biden’s campaign, he explicitly supported this measure. And a $500-million Commerce Department grant program would fund “middle mile” infrastructure like dark fiber and undersea cable. LOC AOC Broadband Webinar The League of Oregon Cities and Association of Oregon Counties hosted a half-day, broadband webinar earlier in the week with the target on public sector partners. More than 100 people attended to listen to several presentations, and participated in breakout rooms that provided a platform for networking. Staff received great feedback and are working on next steps in order to continue those conversations. 2021 Legislative Session Review Nick Batz, Government Affairs and Policy Manager, and Daniel Holbrook provided an update on the 2021 legislative session, and Galen McGill (ODOT) provided information on HB2411. Nick started off by saying it was an historic session, with the agency going into January expecting a budget cut somewhere around 7.5 percent, but instead came away with $850M; more than the agency had two years ago. That is a colossal increase on a budget that was just over a $1B, but now just under $2B. The agency did receive get $120M for broadband but Nick clarified further to make sure everyone was on the same page. The agency received $120M of limitation federal funds for broadband–meaning they have the ability to accept and spend that money once received, and they will need to apply for those funds–they money is not yet in our pocket. With regards to the ARPA funds, the agency received just under $450M in three large buckets, broadband being one of those. The agency is waiting on final federal guidance from Treasury which is a concern for any agency who received those funds. Although the agency doesn’t expect a noticeable difference from the preliminary guidance received earlier but enough of a difference on how they are administered. Until the state receives those funds no spending can occur. The final federal guidance will also include instructions on how to apply for the capital infrastructure funds. Daniel has been staying on top of this challenge and has been in contact with other states to see what they are doing. Looking at non-federal funds, with the $850M the agency received, came many new programs to administer. The legislature allotted funding for positions, as well agency related work and outward facing programs. The agency received permanent funding for the broadband office (lottery funded), and is now in the base budget moving forward. It is very hard to get positions into a base budget so this is a win-win for the agency. Although the agency received four new positions for broadband (one being Daniel’s), plus three others and the vacant position held by Chris Tamarin, the agency also received 15-20 other new positions, plus the 15-20 positions the agency was holding open due to the budget situation–that’s at least 30-40 overall positions to hire. Overall the state will be hiring a lot of new positions (about 1000) which is going to take time, including staffing up the broadband office. The agency has prioritized its hiring–starting with staff in the Human Services unit–and will go from there. The last big challenge the agency will face is the large budget as it is very large for the size of the agency and very complex. The budget does not Oregon Broadband Advisory Council Meeting, July 22, 2021, virtual Page 6 of 15
Draft Minutes usually get passed until the end of session which means a lot of budget bills are not yet signed. The agency’s main budget bill 5023 was signed earlier in the week. House Bill 5006 (also known as the Christmas tree bill) has yet to be signed, along with HB5534, which is the lottery fund bill for infrastructure; therefore, the agency cannot stand up any programs until then. So there are a few challenges–but good ones–but it is going to take time and effort by the agency and stakeholders to get things up and running. Daniel continued outlined the remaining bills (listed below) pertaining to telecommunications: Broadband Related Bills and Resolutions—2021 Session As of 7-21-21 Proposed: 24 Pending signature: 3 Signed: 7 HB 2410 Prohibits public bodies from contracting with broadband Internet access service providers that do not offer low-income rate program that meets minimum standards established by Public Utility Commission by rule. Becomes operative January 1, 2022. Takes effect on 91st day following adjournment sine die. Sponsored by Representative Marsh, Senator Frederick. Status: Introduced, referred to House Committee on Economic Recovery and Prosperity, 1/19/21. No recent activity. https://olis.oregonlegislature.gov/liz/2021R1/Downloads/MeasureDocument/HB2410/Introduced HB 2411 Requires notifications and process for allowing interested telecommunications providers to coordinate with Department of Transportation to include installation of underground infrastructure for provision of broadband as part of certain projects included in Statewide Transportation Improvement Program. Becomes operative January 1, 2022. Takes effect on 91st day following adjournment sine die. Sponsored by Representative Marsh, and Senator Beyer. Status: Governor Signed 7-19 https://olis.oregonlegislature.gov/liz/2021R1/Downloads/MeasureDocument/HB2411/A-Engrossed Councilor McGill added that the bill is brief, and there are a lot of details that will need to be defined in the administrative rule that ODOT will be working on soon. This is a bill where they will be looking for input from industry on what projects make sense; what are the opportunities that really represent broadband on ODOT projects. The bill calls out notifying industries of open opportunities, so understanding what those interests are for opportunities will be key, as well as the coordination of how it all rolls out. The council felt ODOT would have full support from industries to assist them in seeing it through. Representative Marsh added that the rules will be followed closely by the cities and counties. She has been talking to them about follow-up with ODOT and trenching in a way that also provides access to other types of projects; they agreed that how the rules are written and what types of projects are included will guide the next steps appropriate for cities and counties moving forward. Oregon Broadband Advisory Council Meeting, July 22, 2021, virtual Page 7 of 15
Draft Minutes HB 2507 Decouples Oregon Telephone Assistance Program from funding offered by Federal Communications Commission. Modifies sunset provisions applicable to Oregon Telephone Assistance Program. Sponsored by Representative Marsh. Status: Governor signed into law 6/1/21. https://olis.oregonlegislature.gov/liz/2021R1/Downloads/MeasureDocument/HB2507/Enrolled HB 2508 Requires Oregon Health Authority to ensure reimbursement of health services delivered using telemedicine. Modifies requirements for health benefit plan coverage of telemedicine. Declares emergency, effective on passage. Status: Governor signed into law 5/21/21. https://olis.oregonlegislature.gov/liz/2021R1/Downloads/MeasureDocument/HB2508/Enrolled HB 2603 Requires owners or operators of undersea fiber optic telecommunication cables to obtain financial assurances and create plan for removal of cable. Directs Department of State Lands to study permitting processes for undersea fiber optic telecommunication cables and report results of study to interim committees of Legislative Assembly related to environment no later than September 15, 2022. Takes effect on 91st day following adjournment sine die. Sponsored by Representative Gomberg. Status: Governor signed on 7-19 https://olis.oregonlegislature.gov/liz/2021R1/Downloads/MeasureDocument/HB2603/A-Engrossed HB 2613 Sets forth certain requirements related to the permitting and siting of broadband infrastructure. Sponsored by Representative Breese-Iverson, Representatives Post, Smith DB. Status: Introduced, referred to House Committee on Economic Recovery and Prosperity. Public Hearing held 2/4/21. No recent activity. https://olis.oregonlegislature.gov/liz/2021R1/Downloads/MeasureDocument/HB2613/Introduced HB 2654 Authorizes electric utility to use or allow for use of electric easement in provision of broadband services. Provides process for property owner to bring action for damages if use in provision of broadband services results in expanded use of easement. Sponsored by Representatives Smith DB, Marsh, Senators Beyer, Findley; Representative Owens. Status: Governor signed into law 6/3/21. https://olis.oregonlegislature.gov/liz/2021R1/Downloads/MeasureDocument/HB2654/Enrolled Dave Sabala noted that it only applies to the service territories of electric co-ops, not all electric utilities, which is about 2/3 of the geography of Oregon; mostly rural. Commissioner Yamamoto added that he has had conversations with the local Public Utility Districts (PUD) who addressed the question to the Oregon Public Utility District Board. The board understands and wants to include PUD’s in the process, as well as a seat at the table as this moves forward. HB 2726 Direct Public Utility Commission to study laws related to rural broadband and provide results to interim committees of Legislative Assembly no later than September 15, 2022. Sunsets January 2, 2023. Takes effect on 91st day following adjournment sine die. Sponsored by Representative Witt. Oregon Broadband Advisory Council Meeting, July 22, 2021, virtual Page 8 of 15
Draft Minutes Status: Introduced, referred to House Committee on Economic Recovery and Prosperity 1/19/21. No recent activity. https://olis.oregonlegislature.gov/liz/2021R1/Downloads/MeasureDocument/HB2726/Introduced HB 2790 Appropriates moneys from General Fund to Oregon Department of Administrative Services for distribution to Curry County for purpose of installing fiber optic telecommunication line to Cape Blanco Airport. Declares emergency, effective July 1, 2021. Status: Introduced, referred to House Committee on Economic Recovery and Prosperity with subsequent referral to Ways and Means. Public Hearing held 2/4/21. No recent activity. https://olis.oregonlegislature.gov/liz/2021R1/Downloads/MeasureDocument/HB2790/Introduced HB 2841 Directs Oregon Health Authority to award grant moneys to eligible school-based health center pilot projects to expand access to health care services and improve health and education outcomes for students through telehealth. Defines “telehealth.” Establishes eligibility criteria for pilot projects. Directs authority to report to interim committee of Legislative Assembly on effectiveness and success of pilot projects not later than December 31, 2025. Sunsets January 2, 2026. Takes effect on 91st day following adjournment sine die. Sponsored by Representative Prusak. Status: Introduced, referred to House Committee on Health Care with subsequent referral to Ways and Means 1/19/21. No recent activity. https://olis.oregonlegislature.gov/liz/2021R1/Downloads/MeasureDocument/HB2841/Introduced HB 3256 Directs Public Utility Commission to study laws related to telecommunications and provide results to interim committees of Legislative Assembly no later than September 15, 2022. Sunsets January 2, 2023. Takes effect on 91st day following adjournment sine die. Sponsored by Representative Marsh. Status: Introduced, referred to Speaker's desk 2/23/21. Public Hearing held 3/9/21. Do Pass recommendation with adopted -5 amendments 4/8/21. Referred to Ways and Means by order of the Speaker 4/8/21. No recent activity. https://olis.oregonlegislature.gov/liz/2021R1/Downloads/MeasureDocument/HB3256/A-Engrossed HB 3359 Establishes Task Force on Digital Rights. Sets forth duties of task force. The task force shall develop an initial Digital Equity and Inclusion Plan for Oregonians. The plan must provide a five- year vision and strategic plan for ensuring that all Oregonians have access to digital infrastructure, digital literacy, digital services and data governance. Requires task force to submit report to interim committee of Legislative Assembly related to business development no later than September 15, 2022. Sunsets December 31, 2022. Takes effect on 91st day following adjournment sine die. Sponsored by Representative Pham. Status: Introduced, referred to Speaker's desk 2/23/21. Referred to the Judiciary Committee 3/9/21. No recent activity. https://olis.leg.state.or.us/liz/2021R1/Downloads/MeasureDocument/HB3359/Introduced Oregon Broadband Advisory Council Meeting, July 22, 2021, virtual Page 9 of 15
Draft Minutes HB 5006 Appropriates moneys from General Fund to Emergency Board for allocations during biennium. Appropriates moneys from General Fund to specified state agencies for biennial expenses. Modifies certain biennial appropriations made from General Fund to specified state agencies. Limits biennial expenditures from specified moneys collected or received by specified state agencies. Modifies limitations on expenditures for certain biennial expenses for specified state agencies. Modifies certain biennial appropriations and expenditure limitations for biennium ending June 30, 2021. Declares emergency, effective July 1, 2021, on passage. 120M for OBO, Status: Governor’s Office - Signed SB 11 Requires health benefit plan to reimburse cost of covered telemedicine health service provided by health professional licensed or certified in this state if same health service is covered when provided in person. Sponsored by Senator Beyer. Status: Introduced, referred to Senate Committee on Health Care 1/19/21. No recent activity. https://olis.oregonlegislature.gov/liz/2021R1/Downloads/MeasureDocument/SB0011/Introduced SB 290 Directs Oregon Business Development Department to study rural broadband access in this state. Requires department to submit report on findings to interim committee of Legislative Assembly by September 15, 2022. President of the Senate pre-session filed at the request of Governor Kate Brown. Status: Introduced, referred to Senate Committee on Labor and Business 1/19/21. No recent activity. https://olis.oregonlegislature.gov/liz/2021R1/Downloads/MeasureDocument/SB0290/Introduced SB 423 Allows patient located in Oregon to receive health care services through telemedicine from specified out-of-state health care provider. Defines “telemedicine.” Takes effect on 91st day following adjournment sine die. Sponsored by Senator Manning, JR (at the request of Dale Penn - Providence Health and Services). Status: Introduced, Referred to Senate Committee on Health Care 1/19/21. No recent activity. https://olis.oregonlegislature.gov/liz/2021R1/Downloads/MeasureDocument/SB0423/Introduced SB 615 Establishes Low Income Broadband Bill Payment Assistance Fund. Directs Oregon Business Development Department to establish by rule program, to be administered by Oregon Broadband Office, for providing broadband bill payment assistance to low income households. Sponsored by Senator Frederick. Status: Introduced, referred to Senate Committee on Labor and Business 1/19/21. Public Hearing and Work Session held 4/8/21. Do-Pass recommendation with a referral to Ways and Means 4/9/21. Passed by the Senate 4/19/21. Referred to the Speaker’s desk 4/29/21. Referred to Ways and Means 4/29/21. No recent activity. https://olis.oregonlegislature.gov/liz/2021R1/Downloads/MeasureDocument/SB0615/Introduced Oregon Broadband Advisory Council Meeting, July 22, 2021, virtual Page 10 of 15
Draft Minutes SB 629 Allows pharmacist to use telepharmacy to deliver pharmacy services to patient at remote location. Defines “telepharmacy.” Takes effect on 91st day following adjournment sine die. Sponsored by Senator Hansell. Status: Governor signed on 6/15/21 https://olis.oregonlegislature.gov/liz/2021R1/Downloads/MeasureDocument/SB0629/Introduced SB 697 Prescribes additional requirements for health benefit plan coverage of telemedical health services. Status: Introduced, referred to Senate Committee on Health Care. Public Hearing held 2/10/21. No recent activity. https://olis.oregonlegislature.gov/liz/2021R1/Downloads/MeasureDocument/SB0697/Introduced SB 5505 Establishes amounts authorized for issuance of general obligation bonds, revenue bonds, certificates of participation and other financing agreements for biennium. Establishes amounts allocated for private activity bonds. Makes legislative findings regarding benefits to higher education institutions and community colleges from issuance of bonds under Article XI-G of Oregon Constitution. To finance the costs of broadband projects in Oregon communities through grants, loans or other methods, including costs of planning, engineering, improvement, acquisition, construction and deployment of broadband infrastructure, including middle-mile and last-mile infrastructure, costs of acquiring equipment and other technology to operate broadband networks, and costs of acquiring or providing broadband services. Printed pursuant to Senate Interim Rule 213.28 by order of the President of the Senate. Declares emergency, effective July 1, 2021. Status: Governor’s Office awaiting signature. https://olis.leg.state.or.us/liz/2021R1/Downloads/MeasureDocument/SB5505/Introduced SB 5506 Limits for six-year period beginning July 1, 2021, payment of expenses from fees, moneys or other revenues, including Miscellaneous Receipts, but excluding lottery funds and federal funds, collected or received by various state agencies for capital construction. Limits for six-year period beginning July 1, 2021, payment of expenses from fees, moneys or other revenues, including Miscellaneous Receipts, but excluding lottery funds and federal funds, collected or received by Higher Education Coordinating Commission for expenditures of bond proceeds for benefit of public universities and community colleges. Sets expiration date on project approvals and expenditure limitations. Extends expiration dates for certain projects. Declares emergency, effective July 1, 2021. The Bill includes $120,000,000 for the Oregon Business Development Department, Oregon Broadband Office, Broadband Projects. Status: Governor’s Office awaiting signature https://olis.leg.state.or.us/liz/2021R1/Downloads/MeasureDocument/SB5506/Introduced Oregon Broadband Advisory Council Meeting, July 22, 2021, virtual Page 11 of 15
Draft Minutes SB 5534 Increases amount of lottery bonds authorized to be issued for Oregon Business Development Department and Housing and Community Services Department. Authorizes issuance of various other lottery bonds. Establishes funds, or provides for deposit of moneys into existing funds, and appropriates moneys for projects financed. Net proceeds of lottery bonds issued under section 9 must be transferred to the Department of Education for deposit in the Connecting Oregon Schools Fund established in ORS 276A.424 for providing matching funds for federal moneys received by school districts for the purpose of providing broadband access to eligible schools in this state. Printed pursuant to Senate Interim Rule 213.28 by order of the President of the Senate. Declares emergency, effective July 1, 2021. Status: Governor’s Office awaiting signature https://olis.leg.state.or.us/liz/2021R1/Downloads/MeasureDocument/SB5534/Introduced SCR 9 Requires committees and subcommittees of Senate and House of Representatives, and joint committees and subcommittees of Legislative Assembly, to accept remote testimony given by telephonic or electronic means. Requires Legislative Policy and Research Director to post on legislative website procedures witnesses may follow to testify remotely. Requires director to post procedures within seven calendar days of adoption of resolution. Sponsored by Senator Girod; Senators Findley and Thatcher. Status: Introduced, referred to Senate Committee on Rules. Public Hearing held 2/23/21. No recent activity. https://olis.oregonlegislature.gov/liz/2021R1/Downloads/MeasureDocument/SCR0009/Introduced Broadband Office Implementation Daniel provided a short presentation on implementation of the Broadband Office. He addressed strategic foundation, strategy (Portal Map, Data Study Plan and Rural Capacity/Literacy/Security/Inclusion and Outreach) and the approach to make that happen (office expansion), as well as implementation of the Rural Broadband Grants (78 total projects totaling $501M) to the Investment Plan and Work Plan Schedule. Work Session Future OBAC meetings Chair Franell led the discussion about if and when the Council will meet in person. Note, AOC is moving locations. LOC has offered to host. The state is still not allowing state meetings to occur in person but hoping that will change soon. There will also be no meeting held in August, but will resume September 23. The October meeting will be held in conjunction with the Telecommunications Conference in October. Some members would prefer to have the meetings will continue to offer the virtual platform when in-person meetings resume. Oregon Universal Service Surcharge DocumentViewer.php (granicus.com) Daniel Holbrook and Commissioner Thompson addressed the council to make them aware on the latest actions regarding the Oregon Universal Service Surcharge. A year ago SB 1603 was improved and at that time looked like it may be a funding stream for the broadband office and staff, but things have changed since and look a bit different today. Oregon Broadband Advisory Council Meeting, July 22, 2021, virtual Page 12 of 15
Draft Minutes Commissioner Thompson indicated that prior to SB 1603, funds were collected from revenues on interstate voice services to be used by law to make sure basic telephone service was available at a reasonable rate. With the passage of SB1603 that changed to broaden the pool for those who pay into the fund to include both wireless service, as well as voice over internet and then lowered the cap on how high the surcharge could be to 6%; the goal being to broaden the pool even though the cap came down there would be more payees and some of the funds could be paid into broadband fund for loans/grants to help facilitate broadband in the state. Currently, by a stipulation that governs the Oregon Universal Service Fund that was approved by the commission in the past, the amount needed to go towards basic telephone services locked down for 20-21 at approximately $26.5M. The rate set at the beginning of the year was 5% in hopes that was sufficient enough to allow some payment to be made to the broadband office. Earlier this year it became apparent that the contribution-based into that universal service fund is getting lower and lower due to a number of factors (less usage of voice service both landline and wireless side and companies shifting their revenue over to more data services rather than voice services). When SB 1603 was passed that dynamic was recognized and it was uncertain if a payment was able to be made to the broadband fund; unfortunately, this year started out with a steep decline and no payment may not be made. Staff recommended to the commission in May to update the surcharge to the maximum of 6%; however, even at that amount it may be no payment will be made this year. There is currently an investigation going on about the Oregon Universal Service Fund in general, and how it should work going forward after the stipulated period has ended. The question is now how should it work starting in 2022; depending on how that shakes out it might restructure the entire fund and how much can be available for the future. Staff is currently contacting the wireless companies they thought would pay into such an amount, and the ongoing investigation so they understand not only what the surcharge should be but that they are actually paying in the correct amount of revenues. Daniel added that SB 1603 does require the Oregon Broadband Office submit a report to the legislature. A report will be submitted stating no loans or grants were provided since no funding has been transferred and that we had this public discussion on the matter. Oregon’s Covered Partnership—NTIA Grant Daniel Holbrook addressed the council about the National Telecommunication and Information Administration (NITA) letter of support for possible grant funding for broadband infrastructure. Business Oregon is seeking the council’s support for the partnership in order to apply. On May 19, 2021, the US Department of Commerce NTIA, announced the availability of $288M in grant funding for the deployment of broadband infrastructure; this covers the entire United States and territories. It requires a partnership and must be a state or sub-set of the state (counties, cities, tribes, special districts, etc.), and must have an internet service provider. The state had a number of individuals that expressed interest. After reviewing and receiving internal approval to move forward, Daniel sent out a Call for Covered Partnership which was sent out through the agency’s email broadcast on June 2. Those interested had to submit and identify 16 various items–project name, project cost, etc. by mid-June in order to be considered. One key note mentioned was the project was in compliance with the Notice of Funding Opportunity. The state would be the applicant along with Oregon Broadband Advisory Council Meeting, July 22, 2021, virtual Page 13 of 15
Draft Minutes
others as this is a federal program. Business Oregon received 12 responses and over $90M worth of
projects. Applications were due by August 17, 2021.
Staff reviewed the information that came in and focused on key points – project costs, the number
of households they would be serving, and the match provided. One note up front were the
strategies for the grant that included early submission, to come under $18M (due to the size of
Oregon), and to make sure we came in with above-ask match. Staff did not review them at the
NTIA level, but as Business Oregon looking for partnerships. Business Oregon would not give the
money out but the Feds giving the state funds for projects for those partners. In the end, four
partners were selected: Alyrica, OTC, Q-Life, and Ziply in the counties of Benton, Grant, Wasco and
Josephine. They are all partners who can stand on their own if need be. The agency is currently
moving forward to prepare the applications.
Note: Chair Franell recused himself from the vote as his company is engaged as a partner with one
of the interested partners. Although his company would not be a recipient of any of the funds
should the grant come through–he chose best to abstain from the vote. He instead led the
discussion, without opinion of any type, along with Daniel. Commissioner Thompson also
abstained from the vote.
Vote: After further discussion, Vice Chair Pietzold moved to approve support for the Oregon
Covered Partnership NTIA Broadband Infrastructure Program Grant applications, and others going
forward that comply with the rules. Councilor Holmes seconded the motion. The council approved
the motion.
Public Comment
Danielle Gonzalez, Marion County Economic Development
• They have a new Americorps Rare Program member coming on board as Peter Cohen is
leaving this week. He has done an amazing job and Danielle wanted to give him a shout out
on all the great work he has done with the program. They put together some policy
development for the cities of Silverton and Jefferson, as well as working with St. Paul
telephone to do a cost-sharing agreement to add another road to their service area.
• The new Americorps Rare Program member will start in September with the focus on
precision agriculture, and how they can get broadband fiber in the ground in those areas
that will be financial productive for farms in the area. A Request for Proposal (RFP) for a
consultant will go out next week to select farms for potential business applications, as well
as putting fiber in areas that have not had it in before, particularly in the fire areas in
Marion County. If anyone has a list of consultants they could send it, please let her know.
Meeting Schedule
The July 22, 2021, meeting of the Oregon Broadband Advisory Council was held as a virtual on-line
web-conference. The next meeting of the council will be held on September 23, 2021 as a virtual
on-line web-conference. Meeting information will be posted on the council website.
Meeting adjourned at 11:35 am
Oregon Broadband Advisory Council Meeting, July 22, 2021, virtual Page 14 of 15Draft Minutes Approved by: Joseph Franell, Chair Date Oregon Broadband Advisory Council Daniel Holbrook Date Business Oregon Oregon Broadband Advisory Council Meeting, July 22, 2021, virtual Page 15 of 15
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