Utilizing $813 million to Connect Tennessee

Paige Shapiro, Tennessee’s federal program officer, gives our listeners a BEAD status update, including Tennessee’s required filings and an estimated timeline for the disbursement of the state’s $813 million allocation.

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Lead Tennessee Radio features conversations with the leaders who are moving Tennessee forward. Topics include rural development, broadband, technology, legislation, policy and more. The podcast is produced by the Tennessee Broadband Association.

Intro:
The following program is brought to you by the Tennessee
Broadband Association.

Lead Tennessee Radio, conversations with the leaders moving our
state forward.

We look at the issues shaping Tennessee's future: rural
development, public policy, broadband,

healthcare, and other topics impacting our communities.

Carrie Huckeby:
Hello everyone. I'm Carrie Huckeby with the Tennessee Broadband
Association.

Paige Shapiro is here this morning talking to me on this episode
of Lead Tennessee Radio.

Paige is NTIA's federal program officer for the state of
Tennessee, and she sat down with me about a year ago, if you can

believe it, Paige, a year.

Paige Shapiro:
That's impossible to believe.

Carrie Huckeby:
I know. Where did it go?

To talk about BEAD and digital equity.

There's been a lot of activity in the last year, so I wanted her
to come back because I know a lot has happened.

$813 million, to be exact, announced a few months ago is
Tennessee's allocation.

So there's many wheels turning in the NTIA and at the state
broadband office.

So welcome, Paige.

Like you said, hard to believe a year has gone by.

Paige Shapiro:
Yes. Thank you so much.

I'm excited to be here.

And excited that you all had me back.

Carrie Huckeby:
Well, of course, we talked last November, and you were fairly

new to NTIA.

So what's the last year look like for you and your role?

Tell us some of the highlights, the successes and even some of
the challenges.

Paige Shapiro:
Yes. So it has been a year of learning and meeting new people.

I've really enjoyed my time at NTIA.

You know, completing the five year action plan was a really big
highlight, working with the state broadband office to get that

finished and working with all of you all to write the content
for that.

We also partnered, so the state broadband office, partnered with
the University of

Tennessee's Public Service Institute, and they came beside us to
help write our

digital opportunity plan and our initial proposal.

And that partnership has been really fun.

And then, probably my favorite part about this job is I've done
several speaking engagements with i

ndustry groups, like the Tennessee Broadband Association.

And I've been invited to do tours and listening sessions to just
learn from those who have been in the industry a lot longer than

I have. And that's been a really helpful and also enjoyable
experience.

You know, just there are so many great people that work in this
industry in Tennessee.

As far as challenges, just like with any governmental entity,
you know, the red tape can be

challenging, but to work with such a wonderful group of people
that can help you get through and really

collaborate and not throw up their hands and say, "Oh, this is
just so difficult." But really being able to come alongside

in partnership to find solutions has – it's been difficult, but
it's been really interesting work.

Carrie Huckeby:
Well, it's a great industry to be in, so I can imagine just
having a year of networking with everyone and learning has

probably been a great part of the job.

And, as you said, we did really appreciate you coming to the
TNBA and doing some breakout sessions and some panels because

we always learn from you, Paige.

Paige Shapiro:
Good. That's what I want to hear.

Carrie Huckeby:
Okay, well, the $813 million allocation for Tennessee is a huge
opportunity, of course.

And NTIA isn't just saying, "Here's the money.

Do with it what you will and build a network." There's a
checklist, and it requires in the

beginning stages that you meet with the communities.

And I'm sure UT was very helpful in that part.

And meeting with communities and stakeholders, talking to
marginalized communities.

And as you said, developing that five year plan and those
initial proposals.

NTIA has some high bar objectives in addition to reaching the
unserved and

underserved areas.

Tell us a little bit about why NTIA felt that these other items
were important to include, you

know, other things besides just get out there and build that
network?

Paige Shapiro:
Absolutely. So it's always important to start with the statute.

So we received our funding through the bipartisan infrastructure
law.

And this is truly a historic amount of funding.

NTIA wanted to be sure that we were great stewards of those
taxpayer dollars, and that we spent it in the right ways.

So of course, like you mentioned, we wanted to be sure that we
engaged historically left out

communities. And we want to be sure that we heard from industry
and those with

internet service that wasn't serving their needs and those that
didn't have it at all, that we are actually solving the

problem in ways that will last us for literally a generation.

So we talk about this as once in a generation funding.

And we really want this infrastructure investment to carry us
through, you know, this

generation. And so we're really focusing on, you know, making
sure that our networks are resilient

and making sure that, you know, we are going to have good paying
jobs that come out of this

funding in the communities where we're building the
infrastructure, where it doesn't currently exist.

So, you know, it's so much more than a network.

It really is making sure that people have access to the
infrastructure they need to thrive,

making sure that people have access to jobs that can help
support their families, making sure that our

industry can sustain the investment long term.

So that is the purpose for having such a high bar, is we really
want to be sure that at the end of

this, we can step back and say, "We did it."

Carrie Huckeby:
Yes, it's all about connectivity.

We want everyone to be connected.

And part of that challenge, I think, is digital equity and
affordability.

And we have talked about that quite a bit.

It's an important piece for the adoption to ensure that as many
as possible are connected.

The ACP program is managed by the FCC, and funds were
appropriated so that there

was a $30 credit given, I think, to consumers that qualify.

And I know our broadband providers have really pushed that over
the last few years to get that out there and educate their

consumers. NTIA is requiring providers to participate in an ACP,
but

we all know the rumors, and we all know the talk that the
program may not be funded next year, and that may go

away.

If the fund does go away, and of course, there's also rumors that
it'll be covered by something else, and those appropriations will

come to keep that program going.

But if it were to go away, what happens to NTIA's requirement
that providers have a

low cost option?

You know, is the ideal that that $30 is the low cost rate or,
you know, will you be able to determine what that low cost rate

is per company or region or something like that?

Talk about that just a little bit.

Paige Shapiro:
Yes. So the low cost service option is a requirement of the
bipartisan infrastructure law.

So even if the Affordable Connectivity Program goes away, which
we

are very confident that our colleagues at the Federal
Communications Commission are

working to ensure the integrity of that program.

So I want to be sure that I say that.

But if the ACP did go away and wasn't refunded,

providers would still be required to offer that low cost service
option per the law.

That said, the state broadband office in their initial proposal
is putting together what

Tennessee's low cost service option will look like.

Tennessee, in their initial proposal, is also creating a
contingency plan that will help providers

understand that if ACP does go away, here is the next

step in the process of what providing that low cost option will
look like.

So if ACP goes away, it likely will not look the same.

But I will say, number one, Tennessee has not yet submitted that
initial proposal with that suggestion to

NTIA. So we have not yet reviewed it, and it is not approved.

And then also no plan is firm and unchanging and approved

until it's approved.

So there's quite the process on the NTIA side.

And our assistant secretary, Secretary Davidson, is reviewing
every single plan,

and the low cost option is one of the many things that he's
making sure makes sense for not only industry, but the

citizens of our state.

Carrie Huckeby:
Well, as we said in the introduction, there are a lot of wheels
turning.

So and a lot of pieces to this huge puzzle.

So, I know that there's a lot of things being figured out and
considered.

In the checklist probably gets longer instead of shorter, right?

Paige Shapiro:
Yes, absolutely.

And I just want to flag for you all that your state broadband
office is incredible

and is doing a wonderful job advocating what is best for you all
as the industry, as well

as what it means to be a resident in Tennessee and making sure
that this funding is accessible and

sustainable. So when you get the opportunity, you should
definitely thank Taylre Beaty and her team because they're

doing a really good job trying to make this work for everyone.

Carrie Huckeby:
100% agree.

They do a great job there, and we're very fortunate to have
Taylre and her team.

They've been great to work with, for sure.

So the question I get asked a lot from our associate members
and platinum members, is

when can we expect this to happen?

What's a realistic date to see funding awarded and projects
started?

Louisiana just announced the great news that their BEAD plan was
approved by

NTIA. That's great news for them.

They've done a lot of work.

So what's the next step for Louisiana?

And when these plans are approved, what kind of timeline is the
state

looking at to actually submit start submitting applications or
receive funding?

Paige Shapiro:
Yes. So I am not Louisiana's FPO, as you know.

Carrie Huckeby:
True, true.

Paige Shapiro:
But no, it's helpful because I did want to highlight that every
state is a bit on its

own trajectory and its own timeline.

Carrie Huckeby:
Okay.

Paige Shapiro:
But if you look at Louisiana, Tennessee will follow a very
similar path.

So right now, Tennessee has submitted its volume one, which
really focuses

on here is how we are going to run the state challenge process.

And as a reminder, I know that you all know this, and I've said
it a million times in the last year, but our state challenge

process really helps the state finalize which broadband
serviceable locations

are eligible to receive BEAD funding.

So the state challenge process is incredibly important, and I
hope that you all are planning to participate in that.

So all of that said, so right now Tennessee's volume one is
under

review with NTIA.

After that volume one is approved, Tennessee will get ready to
run

the state challenge process.

And so you're going to see based on your timeline, it will start
somewhere around late

January to mid February, somewhere in that window.

And it will run for 75 days.

So on December 20th, the state broadband office is submitting
their initial proposal, volume

two. What the volume two communicates is how the state of
Tennessee will run

the BEAD subgrantee process.

And so while Tennessee is getting its state challenge process
ready and running that state challenge

process, NTIA will be reviewing our volume two.

After the volume two is approved, the state will have one year
to

run its subgrantee process, award subgrantees, do everything
that they need to do to

complete their final proposal.

The final proposal will be submitted to NTIA for review, and
then money goes out

and projects can start.

So we're talking about, you know, shovels in the ground.

The exact timeline of what that looks like, I know that what you
asked me for at the beginning was a date, and that's just really

difficult to determine, because it really depends on, you know,
how

quickly the state can turn around NTIA's feedback and how
quickly NTIA can get through review.

So there's a lot of things at play when you're funding 56
states, but I will

say that if you look, the earliest that we're going to be
shovels in the

ground is 2025 at the very, very earliest.

When in 2025 is hard to say.

Carrie Huckeby:
That's completely understandable.

I know a lot of people have said that it would look, you know,
it would be 2025 to 2026,

depending on when those reports and things were approved.

So you know, I think that 2025 mark is what is in everyone's
head,

sometime that year.

So that's good.

It's, you know, it's a goal and a target, for sure.

Paige Shapiro:
Yes. And I will say that again, your state broadband office is
trying to get it

done as quickly as possible.

They want to ensure that every Tennessean is connected as
quickly as possible.

They know the urgency of the issue, and so they're doing
everything they can to collaborate and get feedback, but also

move through the process.

Carrie Huckeby:
Well, as you said earlier, too, it's an historical infrastructure
bill and appropriation, the

funding.

You certainly want, the urgency is there, but you certainly want
to do it right.

Paige Shapiro:
Exactly.

Carrie Huckeby:
You can definitely respect the time that it takes to pull all
those pieces together.

And speaking of time, so when, let's say we're looking at 2025
and people are putting shovels in the ground or our

providers are doing that.

When the project starts, there's a requirement to complete within
four years.

And since there are concerns, you know, we've had a lot of
conversations about workforce, supply chain,

permitting, environmental studies, just Mother Nature on our
own.

How flexible do you see NTIA being with deadlines or delay
requests?

Is that something that you're, you know, looking into the future
and know that's going to be something you're going to be

challenged with?

Paige Shapiro:
Yes. So we absolutely understand that these challenges that we
have identified, and

probably some challenges that we haven't yet identified, will
absolutely present themselves.

And NTIA has been incredibly proactive and trying to head these
off as much as we

can. So, you know, there's been a lot of work with industry,
nonprofits, you know, experts

in the field to help us make sure that we're doing everything we
can to prevent these delays from

happening. That said, there are 56 states and territories who
are trying to do very similar

projects at one time.

And so when these different delays occur, and they could look
very different in states, right?

So in some states the construction window is very small of when
you can actually construct just because again of the

weather. So, you know, they may experience a different delay
than Tennessee, for example.

And so NTIA, I like to say that NTIA is reasonable.

We are reasonable people.

And so I think that as those present themselves in the future
years, you know, I wish I had a crystal ball.

I wish I could tell you exactly what was going to happen.

But I feel confident that NTIA will work with states to make
sure that we ultimately meet our goal of

internet for all.

Carrie Huckeby:
That makes sense.

It's certainly will be different putting up a network in North
Dakota than it will be in Tennessee.

Paige Shapiro:
Right.

Carrie Huckeby:
And also workforce wise, you know, where the availability is.

So I can certainly see having to look at every one of those 56
territories differently.

Recently, I saw the announcement that NTIA made some changes to
the letter of credit requirement.

I know in the beginning there were lots of questions about that,
and maybe some concerns.

Was that change made due to the feedback from the states or
other reasons?

And are there any other items that NTIA is evaluating that could
change before, you know the final decisions

are done?

Paige Shapiro:
Great question.

So as you all know, the letter of credit was in our notice of
public

funding, and we knew from the beginning that there may be
additional flexibility that was

needed when we put that in there.

So the purpose of the letter of credit was really to ensure that
those states and

territories could evaluate whether BEAD applicants had the
financial

capacity to deliver the network.

And that is required by the statute, by the way.

So this is not something that NTIA layered.

This is in the bipartisan infrastructure law.

Carrie Huckeby:
Okay.

Paige Shapiro:
Well, we recognized immediately that some prospective subgrantees
may be able to demonstrate their capabilities using

methods other than the letter of credit.

And so we put a waiver opportunity in place.

However, we heard concerns from stakeholders everywhere that the
letter of credit would maybe have an adverse

effect on small and medium internet service providers.

And in addition, some smaller women-owned and minority-owned
businesses didn't necessarily have the relationships that they

needed with the qualified financial institutions.

So instead of allowing everyone to submit the one off waiver
process,

we created a conditional waiver process that gave more structure
to the other ways that

subgrantees could meet the letter of credit requirements.

So we knew from the beginning, when we wrote the NOFO that things
like this were going to happen.

We listened to industry and business owners, and we changed what
we could.

And we gave the flexibility that we could to still be in
compliance with the law.

And this just happened to be something where we had the ability
to do that.

Right now, I do not know if there are other things, like letter
of credit, that are being

considered, but I do know that NTIA continues to solicit and
receive feedback

from our stakeholders.

So if there is a risk that you all see or something's really not
working for you, then we encourage you to tell

NTIA, so we can be flexible within, you know, our means.

We can't just go rewrite the bipartisan infrastructure law, but
we can do things like what we did with letter of credit.

Carrie Huckeby:
Yes. And I think from the beginning that it's been good to NTIA
to open up, and the broadband offices,

to open up the conversations so that we can give feedback about
the concerns, and that in some cases, there can

be a workaround or another solution like the letter of credit.

And in some instances there may not be.

From the beginning, we've understood that one size does not fit
all.

And that's why you as the FPO works with the state of Tennessee
to represent our interests versus

putting all 56 territories in the same basket.

So I think that's been a good piece of this.

Is the internet for all website the best way to stay up to date
on all that's going on, Paige, if there is a good way to keep up

with all the wheels turning right now?

Paige Shapiro:
So the internet for all website is a wonderful resource.

Highly encourage you all to look there.

I would also say to make sure that you're signed up for the
broadband office's newsletter.

Right now, they're putting out a lot of great content as it
relates to their CPF programs.

But soon we're really going to be turning toward the BEAD
program.

So I would absolutely keep up with Taylre and her team that way,
if you're not already.

And then the last resource I would point you to is the Broadband
USA website.

Where the internet for all is really focused on the consumer,
Broadband USA has a lot of

technical assistance for broadband providers.

And there's actually a great technical assistance hub on the
Broadband USA website, so you can access that for your more

specific questions and needs.

Carrie Huckeby:
Great. I will add those to our TNBA email newsletters so that our
members know what those

resources are and where to go to find answers to their
questions.

Is there anything else, Paige, that's important you want to add
that maybe we didn't cover or talk about?

Paige Shapiro:
No, I don't think so.

Maybe the only thing I would add is I continue to be available as
a resource for your members.

And if they have questions, they can always reach out to you or
contact me directly.

I really want to be someone who can provide answers.

I'm not going to say quick answers because sometimes that is not
an option.

But if you have questions, I am happy to advocate to try to get
you faster and

accurate answers for questions.

So just continue to use me as a resource as well.

Carrie Huckeby:
We will, and we appreciate you being available, Paige, for those
emails and phone calls.

And I know you'll agree, won't you, to come back in a year?

Paige Shapiro:
Oh please.

I would love to come back.

Carrie Huckeby:
All right. Fantastic.

My guest has been Paige Shapiro, Tennessee's federal program
officer with the US Department of Commerce.

You've been listening to Lead Tennessee Radio, produced by the
Tennessee Broadband Association, cooperative and independent

companies connecting our state's rural communities and beyond
with world class broadband.