Vermont § 8086 - Broadband Construction Grant Program

§ 8086. Broadband Construction Grant Program

• (a) There is established the Broadband Construction Grant Program to finance the broadband
  projects of eligible providers that are part of a universal service plan. (b) In evaluating grant proposals under this chapter, the Board shall give priority to
  broadband projects that: (1) leverage existing private resources and assets, with a high priority given to partnerships
  between a communications union district and a distribution utility; (2) demonstrate project readiness; (3) provide broadband service that complies with the consumer protection and net neutrality
  standards established in 3 V.S.A. § 348; (4) support low-income or disadvantaged communities; (5) promote geographic diversity of fund allocations; (6) provide consumers with affordable service options; and (7) include public broadband assets that can be shared by multiple service providers and
  that can support a variety of public purposes. (c) The Board shall establish policies and standard grant terms and conditions that: (1) reflect payment schedules that ensure maximum accountability; (2) adopt an industry-accepted engineering standard that promotes network reliability,
  resiliency, and interoperability; (3) establish standards for recouping grant funds and transferring ownership of grant-funded
  network assets if a grantee materially fails to comply with the terms and conditions
  of a grant; (4) establish a continuity of operations plan applicable to a network owned by a communications
  union district that, among other things, contemplates the Board assuming operational
  control of a network if necessary to maintain uninterrupted broadband service; (5) prohibit the sale or transfer of grant-funded network assets without the prior written
  approval of the Board; (6) allow an applicant to seek reconsideration of an adverse Board decision; (7) ensure project completion within a reasonable period of time and consistent with applicable
  federal law and guidance; and (8) comply with Administrative Bulletin No. 5, the Agency of Administration’s policy for
  grant issuance and monitoring, and Administrative Bulletin 3.5, the Agency of Administration’s
  policy for procurement and contracting procedures, as appropriate, and any other requirements
  of federal law and guidance, if applicable. (d) Before the Board awards a grant under this section, it shall determine that the applicant
  has produced a viable business plan for its proposed broadband project, which takes
  into consideration network engineering and design, labor needs and availability, supply-chain
  contingencies for equipment and materials, make-ready work, and any other relevant
  capital and operational expenses. (e) The Board shall not award a grant to an eligible provider who is not a communications
  union district unless the Board determines that the provider’s universal service plan
  does not conflict with or undermine the universal service plan of an existing communications
  union district. (f) The Board may provide a grant to an eligible provider that enables the provision of
  broadband service in a geographic area currently served, provided that: (1) the proposed project is a cost-effective method for providing broadband service to
  nearby unserved and underserved locations that is capable of speeds of at least 100
  Mbps download and 100 Mbps upload; (2) any overbuild is incidental to the overall objectives of the universal service plan
  required for funding under this Program; and (3) before awarding the grant, the Board makes a reasonable effort to distinguish served
  and unserved or underserved locations within the geographic area, including recognition
  and consideration of known or probable service extensions or upgrades. (g) It is the intent of the General Assembly that a broadband project financed under this
  Program demonstrates an economically sustainable business model that ultimately will
  be eligible for financing in the private or municipal bond market. (h)(1) The Board shall require a communications union district that borrows funds for the
  purpose of financing a broadband project to immediately provide written notice to
  the Board in the event the communications union district becomes aware that it is
  at risk of financial insolvency or of defaulting on the payment of principal or interest
  on a loan when due. The Board, in turn, shall promptly provide written notice to the
  Governor, the Treasurer, and the Joint Fiscal Committee of such risk of insolvency
  or default and shall include in its notification a description of any potential ramifications
  of the insolvency or default under the terms and conditions of the applicable loan. (2) If a communications union district defaults on the payment of principal or interest
  on a loan secured by grant-funded network assets, such assets may not be transferred
  or sold for a period of 180 calendar days commencing on the day the loan became past
  due. To the extent reasonably practicable, it is the intent of the General Assembly
  that publicly owned network assets remain publicly owned assets. (Added 2021, No. 71, § 2, eff. June 8, 2021; amended 2021, No. 179 (Adj. Sess.), §§ 19, 20, eff. July 1, 2022.)