Self-Governance Communication & Education Tribal Consortium

1. Self-Governance Communication & Education Tribal Consortium May 21, 2009 David J. Villano Assistant Administrator Telecommunications Program Rural Utilities Service USDA Rural Development 202-720-9554 David.villano@wdc.usda.gov

2. Telecommunications Program The Rural Development Telecommunications Program loan and grant programs • Infrastructure Loan Program: Loans to local telephone companies for improving telecommunications service in rural communities • Broadband Access Loan Program and Community Connect Grant Program: Loans and grants for local telephone companies and other service providers who offer Broadband (high-speed Internet) services in eligible communities • Distance Learning/Telemedicine Loan and Grant Program: Loans and grants for providing Distance Learning and Telemedicine services to rural residents • ARRA Broadband Loans and Grants: Loans and grants authorized under the American Recovery and Reinvestment Act of 2009

3. Telecommunications Program FY 2009 Budget Traditional Loan Program: $ 690,000,000 Broadband Loan Program: $ 400,487,000 Community Connect Grants: $ 13,406,000 DLT Grants: $ 34,755,000 ARRA Broadband Loans and Grants: $2,500,000,000

4. Telecommunications Program Broadband Loan Program • This program is designed to provide loans for funding, on a technology neutral basis, for the costs of construction, improvement and acquisition of facilities and equipment to provide broadband service to eligible rural communities. • The program’s goal is to ensure that rural consumers benefit from the same quality and range of telecommunications services that are available in urban and suburban communities. • Created under the 2002 Farm Bill. • Since the beginning of the program, 221 applications totaling $4.6 billion have been received and 96 applications totaling $1.8 billion have been approved.

5. The Broadband Loan Program Types of Technologies Funded As of 5/1/09 Fiber to the Home: 37% Fixed Wireless: 26% DSL: 16% Hybrid Fiber/Coax: 19% Broadband over Powerline: 2%

6. Telecommunications Program Broadband Loan Program – Changes Under 2008 Farm Bill • Section 601 – Broadband Program: • Changed the definition of rural area • Modified the definition of eligible entities and eligible projects • Changed equity and market survey requirements • Expanded notice requirement • Paperwork reduction and pre-application process • New requirements apply to all applications which were not received 45 days prior to the enactment of the Farm Bill and still pending on that date • The revised regulations required by these changes are in final review • Interim Final Rule will be published; loan applications submitted after May 4, 2008, must comply with these new requirements

7. Telecommunications Program Current Programs: FY08 Investment in Tribal Areas • Infrastructure Loans: $17,625,620 • SD: Venture Communications; Midstate Communications • CA: Fort Mojave Telecom • Community Connect Grants: $896,200 • CA: Washoe Tribe of Nevada and California • NV: Paiute-Shoshone Tribe of Fallon Res. & Colony • DLT Grants: $2,331,251 • 17 grants in AK, ID, ME, MI, MT, NE, NM, OK, OR and WY • An example: Keweenaw Bay Ojibwa Community College • $200,000 grant, Marquette, Michigan • Rural Development funding will be used for the “Linking Tribal Communities” project to establish three digital video conferencing centers joining the two districts of the reservation. The project will also allow each of these sites to be connected to the local Regional Educational Media Consortium (REMC#1) which includes fifteen K-12 school districts in the Western Upper Peninsula of Michigan. This project will assist students in achieving a high school diploma or GED, increase employment opportunities through vocational education, increase offerings in post-secondary education, and provide professional development to Native American faculty and staff.

8. American Recovery and Reinvestment Act of 2009 Rural Development – Rural Utilities Service $2,500,000,000

9. On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009 (“ARRA”). Vision • Rural Development will support the expansion of broadband service in rural areas through financing and grants to projects that provide access to high speed service and facilitate economic development in locations without sufficient access to such service.

10. Strategy • In order to provide economic stimulus during the current recession, ARRA requires that funds be obligated by September 30, 2010. • Rural Development will provide a combination of direct loans and grants to applicants that offer the most viable, economically advantageous proposals available within that time period. • These funds will be awarded on a competitive basis with unprecedented transparency and accountability.

11. Objectives • Fund projects that will support economic development and job creation beyond the immediate construction and operations of the broadband facilities. • Ensure that at least 75% of the investment serves rural areas. • Implement in concert with National Telecommunications Information Administration (NTIA) and Federal Communications Commission (FCC). • Establish appropriate monitoring and servicing of the investments to ensure the objectives are achieved.

12. Project Requirements • 75 percent of the areas to be served by a project receiving funds from such grants or loans shall be in a rural area without sufficient access to high speed broadband service to facilitate rural economic development; • Priority shall be given to: • Projects that will deliver end users a choice of more than one service provider; • Projects that provide service to the highest proportion of rural residents that do not have access to broadband service; • Projects that commence immediately upon approval.

13. Creating the Program • A Request for Information was published in March and public comments were solicited on how the program should be developed • Examples of issues: How should broadband be defined? What should be the role of the state governments? How can broadband help in the economic development in rural communities? • Public meetings were held in Washington DC and in Las Vegas, NV and Flagstaff, AZ. Panel discussions in all three areas included tribal representatives • Public comments were reviewed and are being considered during the development of the program

14. Timeline • We intend to publish a series of Notice of Funding Availability (NOFAs) in the Federal Register seeking applications for USDA assistance. The first NOFA is expected to be published in late June 2009. The NOFA will include: • The amount of funding available • Applicant, Area and Project eligibility requirements • The application process • The application window • Evaluation (scoring) criteria • The reporting requirements for borrowers/grantees

15. Website information will be updated frequently. Program notices and updates will be posted at: • www.usda.gov/rus/telecom. NTIA information can be found at: www.ntia.doc.gov/broadbandgrants • Contact: • Mary Campanola, USDA Rural Utilities Service Telecommunications Program Outreach Coordinator at mary.campanola@wdc.usda.gov; telephone 202-720-8822.

16. American Recovery and Reinvestment Act of 2009 Department of Commerce – NTIA $4,700,000,000

17. About the Broadband Technology Opportunities Program • The Broadband Technology Opportunities Program (BTOP) is authorized by the American Recovery and Reinvestment Act of 2009, Title VI, Broadband Technology Opportunities Program (Public Law 111-5). BTOP will provide grant support to enable consumers in unserved and underserved areas of the United States to access broadband services.

18. About the Broadband Technology Opportunities Program • The BTOP’s $4.7 billion in funding will stimulate demand and facilitate greater use of broadband services, while contributing to economic growth and job creation. • Up to $350 million may be expended pursuant to Public Law 110-385 (the Broadband Data Improvement Act) and for developing a comprehensive nationwide inventory map depicting broadband availability and capability in each State.

19. All BTOP materials, comments, and application information is available on-line at: • www.ntia.doc.gov/broadbandgrants