From the Dispatch

State Broadband Awardees May Apply For Additional Funds

Fabiola Carrion — Thu, 10 Jun 2010 16:51:25 -0400

State governments may seek additional funding for up to three additional years on broadband projects. The announcement comes from the National Telecommunications and Information Administration (NTIA) who recognized that "better data and strategic planning are needed on the state level.

Launched last year, NTIA's State Broadband Data and Development Grant Program assists states in gathering data on the availability, speed, and location of broadband services. Originally funded for a two-year period, it has now been extended to five. States can now apply for three additional years of mapping and data collection work, as well as other initiatives, including state broadband task forces or advisory boards, technical assistance programs, local or regional technology planning efforts, and programs to promote increased computer ownership and Internet usage.

As we detailed in a previous Dispatch, the American Recovery and Reinvestment Act apportioned billions of dollars in funding for state broadband initiatives, of which more than $100 million in grants have already been distributed. One example of these efforts is Maine's "Three-Ring Binder" network, which was launched thanks to $25.4 million awarded by the NTIA to reach the under-served and unserved rural areas of Maine. Rep. Cynthia Dill introduced LD 1778 to classify dark fiber as a utility and broadband provider to create a broadband sustainability fund to support "last mile" high-speed Internet infrastructure.

FCC's New National Broadband Plan: Implications for State Policy

Fabiola Carrion — Thu, 18 Mar 2010 13:23:55 -0400

One hundred million Americans do not have broadband at home and the United States continues to lag behind a large number of our international economic competitors in broadband access and speed, according to the findings of the National Broadband Plan. The Federal Communications Commission (FCC) this week unveiled the long-awaited plan with a vast array of information and recommendations to address these problems, as well as approaches to maximize the economic and social gains from broadband adoption.

In addition to promoting universal broadband access, the plan emphasizes the role of broadband in education, health care, energy and the environment, government performance, civic engagement, public safety, and economic opportunity. The plan includes a firm recognition that broadband acquisition cannot occur without the active participation of the states.

Expanding Broadband Access: A number of recommendations have clear implications for policy action by state and local governments. On the basic issue of expanded access to broadband, the FCC recommendations include:

Congress should make clear that tribal, state, regional and local governments can build broadband networks. (Recommendation 8.19) As private investors do not always have the strongest incentives to deploy broadband in rural and underserved communities at an affordable price, states and local leaders should be allowed to step in to provide affordable broadband services that will meet their residents’ needs.
Federal and state policies should facilitate demand aggregation and use of state, regional and local networks when that is the most cost-efficient solution for anchor institutions to meet their connectivity needs. (Recommendation 8.20) Pooling demand among institutions can provide more access to a wider constituency at lower prices.
State legislators are essential partners in developing the framework that will help anchor institutions to obtain broadband connectivity, training, applications, and services. (Recommendation 8.22) States should compliment broadband deployment with digital education programs and fund community technology centers to ensure that residents of all ethnicities, socio-economic backgrounds, and ages understand how to be producers and consumers of this new media economy.
When feasible, Congress should consider allowing state and local governments to get lower service prices by participating in federal contracts for advanced communications services. (Recommendation 14.2)
The FCC plan provides additional recommendations for the inclusion of tribal leaders in broadband programs, construction of new networks in areas that are currently un-served, and the establishment of the Connect America Fund to address the broadband availability gap in un-served areas.

The FCC recommendations also focused on helping states make broadband more affordable and increasing the training needed to encourage adoption , including:

An expansion of the Lifeline Assistance and Link-Up America programs, where states already have these discount programs in place, as in Vermont, the FCC recommends letting states determine their own eligibility requirements.
The creation of a National Digital Literacy Program to increase the skills needed to participate in the digital economy.
The collection of more comprehensive and reliable information on broadband pricing, performance, and competition in specific market segments to better inform policymakers on affordability problems in specific communities.

Broadband and a Greener Economy: The report also discusses the ways broadband and smart grid technologies will serve a greener economy by significantly cutting energy use -- a point Progressive States Network and our partners, the Blue Green Alliance, the Sierra Club, and the Communications Workers of America highlighted in a recent report, Networking the Green Economy.

The FCC recommendations include that States should support smart grid applications (Recommendation 12.2) and States should require electric utilities to provide consumers access to, and control of, their own digital energy information, including real-time information from smart meters and historical consumption, price and bill data over the Internet. (Recommendation 12.7) The FCC further explained, "consumers [should be given] access to, and control of, their own digital energy information, including real-time information from smart meters and historical consumption, price and bill data over the Internet.”

As our report notes, smart meters and dynamic pricing could give consumers the ability to track their own power usage and then provide a financial incentive to alter their energy consumption either by shifting away from periods of peak demand, purchasing more environmentally friendly and energy efficient appliances, or simply decreasing overall energy usage. With the right type of consumer protections and technological metrics in place, smart meters can help individuals purchase energy more efficiently.

Other Issues: The FCC also highlighted the importance of telehealth, a national public safety broadband network, working with states to provide cyber-security protection, support for e-commerce, and state monitoring of ARRA Broadband related projects, an issue we discussed in a previous Dispatch that analyzed trends in ARRA funding.

In general, advocacy groups and telecommunications companies alike have praised the intentions outlined in the plan. Through their own distinct lens, however, they question how these ambitious goals would be reached. The Plan is undeniably a good first step, but some are already questioning whether it is enough. Only with Congress moving forward with the Plan’s recommendations and states taking their own actions to universalize broadband adoption within their jurisdictions will we reap the full promise of these communication technologies.

Resources:
Federal Communications Commission - The National Broadband Plan
Progressive States Network - "Networking the Green Economy: How Broadband and Related Technologies Can Build a Green Economic Future"
Progressive States Network - The FCC Extends E-Rate Broadband Access Program to the General PublicProgressive States Network - Press Release: Progressive States Network Applauds FCC National Broadband Plan
The Washington Post- How the FCC’s New National Broadband Plan is Expected to Affect Consumers
The New York Times - FCC Questioned on Its Far-Reaching Plan to Expand Broadband Access
National Association of Telecommunications Officers and Advisors – Press Release: NATOA Applauds FCC’s National Broadband Plan

Networking the Green Economy: How Broadband and Related Technologies Can Build a Green Economic Future

Fabiola Carrion — Mon, 08 Mar 2010 14:00:11 -0500

Deploying broadband and related communication technologies, including smart meters in the home and smart grids to upgrade our power grid, have the potential of revolutionizing energy management and economic development, according to a new report by the Progressive States Network released in association with our partners, Communications Workers of America, the Sierra Club and the Blue Green Alliance. Last Thursday, leaders from those organizations convened at a panel on Capitol Hill, hosted by U.S. Representative Edward Markey, Chairman of the U.S. House Select Committee on Energy Independence and Global Warming, and joined by Nick Sinai, Director of Energy and Environment for the FCC's Broadband Strategy Plan, to discuss the findings of the report entitled:

Networking the Green Economy: How Broadband & Related Technologies Can Build a Green Economic Future


"This report highlights a historic partnership between labor, technology and environmental groups needed to stop climate change and expand broadband access for all Americans" - Congressman Ed. Markey

PSN's Executive Director Nathan Newman was joined on the panel by Executive Director of the Blue Green Alliance David Foster, Sierra Club President Allison Chin, and Communications Workers of America Vice President Annie Hill. As Congressman Markey noted during his speech, this report heralds a new alliance of labor, technology and environmental groups in a "historic partnership" to take the next steps needed to stop climate change, expand broadband access for all Americans, and build towards energy independence for the nation.

The key conclusion of both the report and the panel was that investing in broadband and communication technologies cannot be seen as a distinct goal from the construction of a green economy. By the same token, failure to address the digital divide could result in the exclusion of poor and rural communities from the green economy as well. It is imperative that the environmental, technology, and labor communities work together in the construction of a smart economy since an additional $50 billion investment in the smart grid over the next five years would create or retain an average of 239,000 new jobs for each five years.

This Dispatch will outline some other critical findings of the report, including:

Upgrading the Grid: Information Communication Technologies is Key to More Efficient Coordination of Energy Supplies and Distribution
Smart Technologies to Reduce Energy Demand in the Home and Office
Broadband Applications to Reduce Travel and Fuel Costs

It will also highlight the pathway to networking the green economy, including the need to protect consumers and workers during the transition, the need for a plan that promotes deployment and adoption of broadband by all households, and the immediate policies states can begin to implement to move towards that future.

To download a copy of the report or the executive summary, please visit www.progressivestates.org/greeneconomy.

Resources:
Progressive States Network, Blue Green Alliance, Communications Workers of America and Sierra Club - Networking the Green Economy: How Broadband and Related Technologies can Build a Green Economic Future
Information Technology and Innovation Foundation - The Digital Road to Recovery: A Stimulus Plan to Create Jobs, Boost Productivity and Revitalize America

Table of Contents

- Upgrading the Grid: Information Communication Technologies Are Key to More Efficient Coordination of Energy Supplies and Distribution

- Smart Technologies that Reduce Energy Demand in the Home and Office

- Broadband Applications to Reduce Travel and Fuel Costs

- The Pathway to Networking the Green Economy

- Conclusion: States Moving Forward on Networking the Green Economy

Upgrading the Grid: Information Communication Technologies Are Key to More Efficient Coordination of Energy Supplies and Distribution


"Realizing the full potential and benefits of investments in efficiency and renewables will ... require a significant upgrade in our communications and transmission infrastructure" - Allison Chin, President of the Sierra Club President

Our present power grid, using outdated technologies, wastes massive amounts of energy during the transmission and distribution of electricity.

The Electric Power Research Institute (EPRI) estimates that power system disturbances cost 50 cents for every dollar spent for electricity, and that the smart grid has the potential to reduce this cost by 50 percent or more. States can no longer afford the estimated $80 billion and $150 billion costs that power outages incur annually. Energy savings equivalent to eliminating greenhouse gas emissions from 53 million cars could be achieved by improving the efficiency of the grid by just 5 percent and smart grid technologies could stop the power outages that cost the U.S. economy $49 billion per year.

Upgrading the electricity grid will produce more efficient energy, reduce greenhouse emissions, save costs to producers and consumers, as well as create sustainable jobs.

Managing a Better Distribution of Electricity: Integrating networked communications into the transmission system will help create a grid capable of better response time to large-scale and isolated-system failures, moving energy efficiently over long distances and addressing congestion issues. Increasing grid efficiency through re-automation and self-healing capabilities results in reduced energy generation and use. Power generation could be decreased by 3 to 5 percent by installing a smart grid capable of delivering only necessary electricity. Along with better building design, management and automation, the smart grid could save $20 to 25 billion in energy use. According to a study, consumers in the eastern United States pay $16.5 billion per year in higher electricity prices due to transmission congestion, a problem that would be largely resolved by an upgraded smart grid.


'The jobs of the future should all be good, green jobs, and by taking action now on broadband and other technologies, we are putting ourselves in a position to create jobs and lead the world in the race for a clean energy economy." - David Foster, Executive Director of the BlueGreen Alliance

Communications technology is essential to the functionality of the smart grid because it gathers the vast data generated by energy use and transforms this data into information for the consumer and the utility company. As such, the communication that is transmitted must be pervasive, rapid, scalable, secure, and robust at all times, especially during emergency situations.

Integration of Renewable Energy Resources During the Transmission of Electricity: Many renewable energy sources - such as wind, solar, and geothermal - are in isolated areas throughout the United States and are unable to connect effectively with our current power grid. A Department of Energy report found that it could be possible for 20 percent of the nation’s electricity demand to be met by wind sources in 2030 should these sources be all connected with a smart grid. Curently, one issue hindering wind energy is that a portion of these wind farms are located in remote areas, far from major centers of electricity demand.

By implementing advanced digital controls and technologies such as syncrophasors — precise grid measurements that indicate grid stress — throughout the transmission system, transmission operators will be able to use long-distance, high-voltage transmission lines to move energy from renewable energy source sites to distant distribution grids located at primary-use locations with far less energy loss than is currently possible.

In facilitating the integration of renewable energy resources into our energy distribution system, we can curtail the negative environmental side effects of our energy use. Smart grid improvements should be sequenced so that high-carbon resources are phased out as quickly as possible and replaced with a combination of lower carbon, renewable fuels. By enabling smart grid distribution, the United States can cut carbon dioxide emissions by 25 percent. On the demand side, the Department of Energy has maintained, there are numerous environmental benefits that take place when we reduce the emissions of generation plants during peak periods.

Resources:
GetSmartGrid.Org -Smart Grid Facts
The Climate Group - SMART2020: Enabling the low carbon economy in the information age
United States Department of Energy - Benefits of Demand Response in Electricity Market and Recommendations for Achieving Them
Joint System Coordination Plan 2008
The National Association of Regulatory Utility Commissioners - The Smart Grid: Frequently Asked Questions for State Commission

Smart Technologies that Reduce Energy Demand in the Home and Office


FCC Energy and Environment Director, Nick Sinai, who highlighted that consumers should be given "access and control of their digital energy information."

Since buildings in the United States account for approximately 39 percent of the nation’s total energy use, 72 percent of the electricity consumption and 38 percent of carbon dioxide emissions, smart technologies in the home are key to a greener future. By transforming the way people and businesses use technology, the United States can reduce carbon dioxide emissions by an estimated 13 to 22 percent by 2020 — and potentially see gross energy and fuel savings of $140-240 billion.

Smart meters and dynamic pricing could give consumers the ability to track their own power usage and then provide a financial incentive to alter their energy consumption either by shifting away from periods of peak demand, purchasing more environmentally friendly and energy efficient appliances, or simply decreasing overall energy usage. As highlighted by FCC Energy and Environment Director Nick Sinai, consumers should be given "access and control of their digital energy information."

Smart Meters and Net Metering: With the right type of consumer protection and technological metrics in place, smart meters can help individuals purchase energy more efficiently. If built to connect in real time with a utility and smart grid through high-speed broadband, networked homes and offices can provide large economic and environmental pay-offs. Pilot programs and studies have demonstrated that consumers who track their energy use in real time and consequently make simple behavioral changes can save 5 to 15 percent on their electricity consumption, which amount to savings of $60 to $180 per year. Dynamic pricing to shift demand can also lead to a more reliable grid and reduce the risk of outages that are often costly to the economy.

A smart grid that extends its communications network to homes and buildings can turn these traditionally large energy users into potential energy producers. Such a grid could allow energy consumers to sell solar-based and other renewable energy back to the power grid, making such investments more economical and further decreasing the dependence on fossil fuel based power plants. For example, a home could be powered by its own solar energy during the day and then the consumer could sell any extra energy produced back to the larger grid, an option called “net metering."

Smart Buildings and Networked Homes: Further, allowing various building systems, including appliances, heating and cooling systems, to communicate and interact with each other through smart technologies will also reduce energy use and buildings’ negative impact on the environment.

The incorporation of networked technology into buildings can optimize their energy consumption by controlling multiple devices, improving the ability to monitor buildings, giving building owners and occupants more information about and control over their energy use, and integrating that use into the new smart grid. By using specialized software and broadband, smart buildings can make their own efficient energy use decisions. For instance, a smart building could potentially adjust the amount of indoor light being used based on the amount of sunlight coming through a window.

The Center of American Progress estimates that integrating smart technology into new construction or in the renovation of existing buildings can make them more environmentally friendly, saving the U.S. $20-25 billion and reducing carbon dioxide emissions between 130-190MMT.

Using Broadband Protocols: To facilitate networking of homes and avoid their obsolescence, meters should incorporate high-bandwidth technology using Internet protocols and an open architecture. As the New York Public Service Commission argued in a recent order governing smart meters, smart meter systems "must be designed to meet future requirements of the smart grid."

Resources:
United States Department of Energy - The Smart Grid: An Introduction
The Climate Group - SMART2020: Enabling the low carbon economy in the information age
Pew Internet & American Life Project - Home Broadband Adoption 2009
U.S. Green Building Council - Green Building Research
Center for American Progress - It’s Easy Being Green: Smart Buildings for Future Skylines
State of New York Public Service Commission - Order Adopting Minimum Functional Requirements for Advanced Metering Infrastructure Systems and Initiating an Inquiry into the Benefit-Cost Methodologies

Broadband Applications to Reduce Travel and Fuel Costs


"The promise of the smart grid and fast broadband are applications, from telehealth to e-commerce, that will radically reduce energy costs by reducing both the need to travel and transport physical goods." - Nathan Newman, Executive Director of Progressive States Network

In addition to savings costs for homes and businesses, smart technologies provide a wide array of benefits for entrepreneurs, consumers, and workers. Congressman Markey stressed that information can be added to our home heaters, electricity suppliers, and vehicles. This Dispatch highlights a few of the smart technology applications that can be added to our work and life essentials:

Telehealth: Increased adoption of broadband technology and telehealth practices could decrease travel by allowing doctors to monitor and consult with patients remotely.

A Veterans Administration study reported a 40 percent cut in emergency room visits and a 63 percent reduction in hospital admissions resulting from its remote home monitoring system. Telehealth technologies could avoid 850,000 transports between emergency departments, resulting in transit cost savings of $537 million a year. For patients and doctors in rural areas, travel costs are being significantly reduced when they have access to high-speed broadband.

Aside from increased medical attention, telehealth improves the quality of care, facilitates a more dynamic interaction between medical provider and patient, and overall reduces the costs of the health care system. When telehealth reduces the need for or the distance related to medical attention, we inevitably reduce greenhouse gas emissions and fuel consumption.

Business and Long Distance Communication Technology: The emergence of a global economy has increased the need for business travel, in many cases for long distances, which negatively affects the environment. Recent technological advancements, such as advanced video-based teleconferencing, have become viable substitutes. For instance, video conferencing expends 500 times less energy than a 1000 km [620 mile] business flight.Conducting virtual meetings to replace remote in person interactions could reduce 20-30 MMT of carbon dioxide emissions and provide gross savings of $5-10 billion from reduced spending on fuel for airplanes.

Broadband-supported applications can also help reduce everyday travel associated with employment. Telecommuting or flex work, combined with labor protections to prevent unmonitored “electronic sweatshops” from arising, can potentially be a key contributor to a greener economy.

E-Commerce: Since the inception of the Internet, electronic commerce (e-commerce) has grown exponentially, and entrepreneurs, including those in rural areas, can reach out to the entire connected world as a potential consumer base. This new business frontier not only allows businesses to expand beyond their reach, but it can also benefit the environment by reducing negative emissions associated with traditional off-line shopping.

In a range of areas, broadband applications are allowing e-distribution to replace the fuel-intensive physical distribution of physical goods. According to the California Broadband Initiative, if half of today’s movie rentals were accessed by video-on-demand, the country could save the equivalent of 200,000 households’ annual electricity consumption.

Ultimately, especially in applications like telehealth, deploying high-speed broadband is ultimately required to achieve the full life-saving, environmental, and economic benefits of these applications.

Resources:
The Climate Group - SMART2020: Enabling the low carbon economy in the information age
Benton Foundation - Using Technology and Innovation to Address Our Nation’s Critical Challenges
Baller-Herbst Report - Bigger Vision, Bolder Action, Brighter Future: Capturing the Promise of Broadband for North Carolina and America
California Broadband Taskforce - Building Innovation through Broadband: Final Report of the California Broadband Task Force

The Pathway to Networking the Green Economy


"Every American family, business, and community must have access to affordable, world-class broadband networks but the U.S. unfortunately now ranks 16th in the world in broadband adoption." - Annie Hill, Executive Vice President of Communication Workers of America

In building the smart grid and using broadband technologies to green the economy, there are both challenges and opportunities. The opportunities are clear: investments made now will not only create immediate jobs in the economy but also build in long-term energy and economic savings that will pay back those investments many times over.

However, there are critical decisions to be made to assure that all members of our communities benefit from the transition, from eliminating the digital divide to protecting consumer interests to assuring that current workers in industries find new and better job opportunities. Any transition to smart grids and new energy management technologies should ensure that consumers and workers in the industry benefit from the economic savings and growth generated. So the following are a few key guidelines for policymakers:

Eliminate the Digital Divide: Despite the great potential to create jobs, lessen our dependency on foreign oil and save the environment, limited access to broadband is currently crippling the complex operations that the smart grid requires. Although broadband access has increased in recent years, broadband subscription rates still remain under 50 percent for some groups, including certain minority populations, rural communities, and households with incomes of less than $50,000 per year. To fully realize a robust green economic future, it will take a firm and long-standing commitment to extend transformative communication technologies, such as broadband, to all members of the community.
Invest in Infrastructure and Interoperability: While some industry interests would prefer proprietary systems to lock-in monopoly control and profits, the report stresses that both federal and state policy makers should place support networking infrastructure that is interoperable with existing broadband and Internet systems and where smart appliances and other technologies can work with each other without become obsolete.
Protect Consumers’ Interests: Smart meters and dynamic pricing that allow individuals to track their energy consumption and provide financial incentives for reduced energy use could result in savings for consumers. Nevertheless, consumer advocates worry that the costs of installing some current proprietary versions of smart meters could outweigh the savings that households would receive from reducing or shifting their energy usage, especially if those meters become technologically outdated and have to be replaced before any savings offset deployment costs. In addition, if the cost of electricity is dynamically priced throughout the day, this may not benefit, and could harm, consumers such as the elderly and ill, who are not able to alter their energy use. Thus, any smart meter deployment should be done in ways that do not increase costs for residents but instead ensure that any smart meters are deployed only when energy savings can fully cover costs for consumers.
Enhance Workers’ Rights: Annie Hill, Vice-President of the Communications Workers of America, confirmed, “Investments in the green economy — which includes more efficient use of resources and power — are the job creators of the 21^st Century." With more than 564,000 people working in the utility industry, the adoption of smart meters and smart grids will likely change the nature of the work for many front-line utility workers. Utility workers must receive training and other support necessary to learn the skills to work on new technologies and to build careers in the industry. As such, their employers should not use this transition to downgrade employment, outsource work, or evade union representation.
Preserve Existing Conservation Programs: States also need to learn from mistakes made during utility deregulation and in addition to investing in smart meters, maintain other energy efficiency programs that assist consumers in shifting towards less energy use and subsidize such shifts for low-income users. Between 1995 and 1999, driven by the deregulation of electricity markets, power companies in North America cut spending on energy efficiency programs by 42 percent. Any use of smart meters or dynamic pricing must be part of a broader regulated structure that maintains and expands those key energy-efficiency programs, especially for low-income families most in need of their support.

Resources:
Energy Efficiency.Net - Power Deregulation Fueled Pollution
The Center for American Progress - Smart Grid, Smart Broadband, Smart Infrastructure: Melding Federal Stimulus Programs to Ensure More Bang for the BuckUnited States Senate Committee on Energy & Natural Resources - Full Committee Oversight Hearing: to receive testimony on the process of smart grid initiatives and technologies
The Wall Street Journal - Smart Meter, Dumb Idea?

Conclusion: States Moving Forward on Networking the Green Economy


"With the smart grid, we partner the public utility with technology into something that builds jobs and brings costs down to consumers." - North Carolina State Senator Joe Sam Queen

Congressman Edward Markey could not sum it better, "broadband will revolutionize the way we communicate and generate electricity in this country." To achieve the environmental benefits associated with the digital infrastructure, devices, and applications, the United States needs to strengthen its broadband deployment and adoption. Broadband and information communication technologies have the potential of revolutionizing energy management and economic development.

Using Recovery Dollars for Deployment: The federal recovery plan included billions of dollars to encourage movement towards a smart grid in our nation. We have detailed a range of ways states are promoting Legislation to Promote Digital Leadership which has included both the creation of Broadband Strategy Councils to strengthen holistic planning and Digital Inclusion Policies to move towards universal adoption of broadband.
New Smart Grid Legislation: State legislators are introducing a range of legislation that support the deployment and funding of the smart grid, including bills in Kansas, California, Maine, New York, and Illinois.
Telehealth Policies: We've highlighted key policies to promote broadband applications like telehealth, including Reforming medical licensing rules to encourage long-distance medical consultations across state lines and changing Medicaid reimbursement rules to encourage its use. States should conduct studies and pilot programs to better estimate cost savings and the increased access to the quality care that telehealth provides.

In this vein, the panel last Thursday ended with the final remarks of North Carolina State Senator Joe Sam Queen, who is now working towards introducing smart grid legislation in his state. By bringing broadband players, utilities, consumers and other groups together, Senator Queen hopes to leverage the energy savings from building a smarter grid to help fund increasing broadband access -- a critical problem in a state with only 50% broadband adoption, particularly the rural communities which often have very low access to high-speed Internet.

Resources:
Progressive States Network - State Legislation to Promote Digital Leadership
Progressive States Network - Guiding Principles for Broadband Strategy Councils
Progressive States Network - Guiding Principles for Digital Inclusion Policies
Progressive States Network - Telehealth

Progressive States Network hosted a national conference call on Friday, March 12th at 1:00pm EST announcing the release of a new joint report, Networking the Green Economy: How Broadband & Related Technologies Can Build a Green Economic Future.

On the call, speakers from each organization discussed how smart buildings, smart grids, digital education, and other components of a highly-networked economy can reduce greenhouse gas emissions, conserve energy resources, and promote good green jobs.

Speakers included:

Allison Chin, President, Sierra Club
Debbie Goldman, Telecommunications Policy Director and Research Economist, Communications Workers of America
David Foster, Executive Director, Blue Green Alliance
Nathan Newman, Executive Director, Progressive States Network

To listen to the conference call, click here.

The FCC Extends E-Rate Broadband Access Program to the General Public

Fabiola Carrion — Thu, 25 Feb 2010 11:19:15 -0500

States and local governments may now use federal E-rate funds to provide the general public access to schools’ and public libraries’ Internet facilities, according to a recent Federal Communications Commission order. Schools receiving funding under the E-rate program may extend their services to the general public during non-operating hours, that is, after school, weekends, holidays, and summer vacation.

E-rate’s Role in Digital Inclusion: E-rate is part of the federal Universal Service Fund, which subsidizes communication services to poor and rural areas. Under the original program, school and libraries received federal funding for Internet access as long as it is used for “educational purposes” only. This meant that only students could gain access to E-rate based broadband during school hours. Under a waiver first issued to rural communities in Alaska, the FCC is now allowing the general public to use E-rate computers and access the Internet during hours that students are not in school.

Why this Waiver is So Important: The purpose of this extension is to facilitate access for community members that want to conduct job searches or submit job applications; this comes at a time when the nation faces a 9.7% unemployment rate. A report by the One Economy Corporation, cited by the FCC, indicates that 80% of all Fortune 500 companies only accept job applications online. Thanks to more online access, un-served and under-served community members will also be able to participate in digital literacy programs and obtain online access to governmental services and resources. As acknowledged by the FCC’s order, increasing community access to the Internet is critical in communities where residential adoption and use of broadband Internet access has historically lagged, especially in rural, minority, and tribal communities.

For those who are worried about costs, this new order does not allow schools to request more funding than what they were already getting from their in-school needs. FCC Commissioner Robert M. McDowell warned, “the change in our rules... should not provide a backdoor way for schools to request more funds than necessary to support their student populations…” Another important aspect is that schools have the freedom to determine their own polices about the specific use of their Internet facilities, including the hours of use for the general public.

A Small Step in the Grand Scheme: This initiative is a step in the right direction, but is not the ultimate solution to close the digital divide. Free Press, for example, advocates for an “e-rate@home” program where community institutions extend their wifi connections to local neighborhoods and suggests exploring programs that loan laptops to school children.

And that is precisely what two state legislators from Kentucky have proposed. They introduced a resolution with the purpose of providing laptops to middle school students. Other states have included legislative pieces in order to maximize participation in the E-rate program; the list includes New Jersey, California, Rhode Island, and Virginia. Furthermore, state legislators are proposing legislation to improve the connectivity in E-rate funded schools. In Minnesota, legislation has been introduced to construct fiber optic infrastructure to public schools to complement the funds already received by the E-Rate program. So while the FCC order is a step forward, states are already moving beyond it towards more comprehensive digital inclusion programs.

Resources:
Federal Communications Commission - Order and Notice on Proposed Rule Making - CC Docket No. 02-6
Benton Foundation - FCC Allows Community Use of E-Rate Supported Broadband
One Economy Corporation - Comments of One Economy Corporation: National Digital Literacy Initiative
Free Press - Free Press Welcomes E-Rate Improvement: Group Says Congress and FCC Still Must Do More to Close the Digital Divide
Broadcasting & Cable - FCC Votes to Allow Schools Receiving Broadband Funding to Open Service to Public

Broadband and Recovery - the ARRA and State Policies in 2010

Fabiola Carrion — Tue, 09 Feb 2010 12:02:05 -0500

The American Recovery and Reinvestment Act (ARRA) apportioned $7.2 billion to stimulate the development of broadband infrastructure and services. As the U.S. is now ranked only 17th in global use of broadband and information technology, the ARRA is not only considered a job creator, but also key to regaining long-term economic competitiveness for the nation. Moreover, as a recent study documents, broadband is becoming a significant determinant of economic vitality at the local level.

Although a limited number of grant applications have been awarded, the ARRA promises to still spin the wheels of innovation as the Administration starts evaluating the next wave of applications for the second round of funding. In the meantime, states have been moving forward on laying the policy groundwork for using advanced communication technologies to strengthen both economic opportunity and local job creation.

This Dispatch will highlight the trends in the initial grants when it comes to mapping, deployment and adoption broadband, outline broadband policies that states have been pursuing (using federal and state funding), and why these broadband investments are so critical to the long-term economy of our states.

Resources
CBC News - Canada drops in UN communications technology ranking
Public Policy Institute of California - Does Broadband Boost Local Economic Development?
Department of Commerce’s National Telecommunications and Information Administration - Commerce Awards Recovery Act Broadband Expansion Grants Totaling $63 Million

Table of Contents:

- Innovation in the States Under Initial ARRA Grants

- State Legislation to Promote Digital Leadership

- How Broadband Delivers Economic Growth

- The Next Round of ARRA Grants

Innovation in the States Under Initial ARRA Grants

Under ARRA, priority is given to initiatives that encourage broadband deployment adoption in low-income and rural communities, expand public community centers’ capacity, and fund the development of a national broadband map. Almost $5 billion in grants are to be distributed by the National Telecommunication and Information Administration (NTIA) to deploy broadband infrastructure through its Broadband Technology Opportunities Program (BTOP), and $2.5 billion will be distributed by the Agriculture Department through its Rural Utilities Services' (RUS) Broadband Initiative Program.

Mapping the Digital Divide: A key ARRA mandate is the collection of information on areas covered by broadband service. To this end, the NTIA has set aside federal funding to create state maps in order to show the availability, speed, and location of broadband access across the country. Mapping is critical for consumers and voters - who can learn where broadband service is available - to anchor community institutions such as schools, libraries, and hospitals, as well as for businesses that can benefit from this information and make investments accordingly. A comprehensive map of broadband availability is therefore critical to help policymakers determine where to allocate resources.

As part of the recent funding round, the NTIA has approved several mapping initiatives, most notably in Iowa where a $2.2 million grant will be dedicated to broadband Internet mapping and planning. Other states and territories that have benefited from the NTIA's broadband mapping and data collection grants include Florida, Kansas, Illinois, Michigan, Montana, New Hampshire, Utah, the U.S. Virgin Islands, Minnesota, Nevada, Ohio, Puerto Rico, South Carolina, and Tennessee.

Deploying Broadband in Underserved Communities: The NTIA and RUS are concentrating most of their funds on providing broadband access to unserved and underserved areas increasingly left behind in the global information economy. Some examples are listed below:

Alabama is receiving a $3.8 million grant to provide high speed DSL broadband service to its rural territory.
The Broadband Infrastructure Project in Bretton Woods, New Hampshire will receive $985,000 in funding to provide two-way broadband service to 400 households, anchor institutions, and businesses. The tourism industry is strong in Bretton Woods and having access to broadband will encourage tourists to visit more often and for longer periods of time.
Maine was selected to receive a grant of $498,222 to purchase video conferencing equipment to link 22 schools; Michigan State University received similar funding to create more public computer centers targeting the under-served and the unemployed.
South Dakota was also selected to receive a $306,693 grant to provide video-conferencing as well as telemedicine service to connect 16 rural hospitals and clinics.
Morehouse Parish, Northeast Louisiana Telephone Co. is receiving a $4.3 million grant and $8 million loan for an active ethernet system with symmetrical speeds of 20 Mbps.
Other states such as California, North Dakota, Oregon, Virginia, Iowa, Michigan, and Missouri are receiving grants for a fiber-based broadband infrastructure.

Computer Literacy to Promote Digital Inclusion: Beyond physical support, funds are being aimed to encourage computer literacy and the skills needed to take advantage of communication technologies. One of these few digital inclusion grants in the early round of ARRA funding was given to the University of Massachusetts-Lowell, which is receiving a $780,000 broadband adoption grant with an additional $196,000 in applicant-provided matching funds to promote broadband awareness and computer literacy among vulnerable populations, including the nation’s second largest Cambodian population, low-income and at-risk youth, the unemployed, residents without college degrees, and seniors in the Lowell and Merrimack Valleys. As part of the program, University of Massachusetts–Lowell students will work in local computer centers with at-risk youth and seniors to develop appropriate training and outreach materials.

The University of Massachusetts grant is an example of broadband investment going beyond infrastructure, through actual implementation and continued commitment. It is important to invest in deployment, but it is equally, and arguably, more important, to make sure that gains from broadband are distributed equally among communities and their residents. Various studies confirm that only a third of the population who has access to broadband actually uses it, so the digital divide and job creation can only occur when deployment of broadband infrastructure is accompanied by training and awareness.

Resources:
The National Telecommunications and Information Administration
The Department of Agriculture's Rural Utilities Services
Business Record - Iowa Gets Broadband Boost with Aid of Grant
Connected Nation
United States Department of Agriculture - Secretary Vilsack Announces Almost $35 million in Funding for Distance Learning and Telemedicine Projects
BroadbandBreakfast.com - Rural Utilities Service Unveils $310 Million in Stimulus Funds for 14 Projects

State Legislation to Promote Digital Leadership

In order to strengthen their ability to receive federal funding and to better manage their existing digital resources, state legislatures have been proposing and enacting a wide range of policies to promote their states' digital leadership.

Commissions to Oversee State Broadband Efforts: In an effort to either receive funding or support ARRA broadband goals, states are introducing and passing bills to adopt or deploy broadband, or map its availability throughout their jurisdictions.

With Oregon's HB 2168 creating a state goal to support the rapid deployment of broadband telecommunications services in areas where the services do not exist, HB 3158 established the Oregon Broadband Advisory Council (OBAC) and the Oregon Broadband Advisory Council Fund to implement these goals and designate representatives from the education, health care, public safety, telecommunications, and government sectors to report on the affordability and accessibility of broadband and the extent of broadband technology use in energy management, education, government, and the telehealth industries.

Other similar efforts include:

Indiana (HB 1561), Maine (HB 700), Rhode Island (HB 5975/ SB 968), and Virginia (HB 2423 and SB 1336) all created commissions to advise Governors and other state officials on broadband opportunities, including available funding under the ARRA, and to better plan long-term technology goals for those states.
Hawaii has followed in their footsteps by introducing HB 2698, which also requires the Hawaii broadband commissioner to promote and maximize availability of broadband services in the State.
Other efforts in Iowa (SF 372) and Colorado (SB 162) are more specifically focused on mapping access in those states.
New Hampshire (SB 159) established the position of Director of Broadband Technology Planning, who is now in charge of developing a comprehensive state broadband plan.
Virginia (SB 1456, HB 2201, and SB 236) created the Innovation and Entrepreneurship Investment Authority (IEIA) to monitor trends in the availability and deployment of and access to broadband communications services with its Chief Information Officer developing a comprehensive strategic plan to identify the unmet needs for access to technology.

For states looking to create or enhance commissions in their own states, the Progressive States Network laid out best practices for such commissions in our Guiding Principles for Broadband Strategy Councils.

Supporting Deployment in Underserved Communities: A few states are working to move beyond planning to directly encourage broadband expansion.

With a heavily rural population, Maine has been a leader in working with private entities to maximize broadband deployment. Maine's HP 585 gave the Public Utilities Commission the authority to require a communications service provider that is providing broadband coverage within at least 50% of a municipality's geographic area to expand its broadband coverage to all of the geographic area within that municipality. HB 700 required the Broadband Commission to advise the University of Maine System on how to lease or sell excess broadband capacity and negotiate lease or sales agreements with service providers to ensure they benefit the educational system and meet the goal of broadband access for everyone in the State. Recently, HP 1174 has been introduced to establish a Broadband policy: promoting sustainable private investment to increase broadband service that exceeds the minimum levels throughout the state, and developing target prices and competitively neutral discounts to customers in areas where services are more expensive than the average metropolitan rates.

Other examples of state action on deployment include:

Using federal funds, Massachusetts' HB 4158 authorizes the Massachusetts Technology Park Corporation to develop, lease, or otherwise acquire conduit, fiber, towers, and other personal property related to broadband infrastructure.
Tennessee's SB 2355 expands rural broadband connectivity in the state with rural assistance grants.
Washington's HB 1701 authorized the Department of Information Services to use federal grants to target and deploy broadband services.
In Virginia, HB 988 allows the Governor's Development Opportunity Fund to provide grants for projects related to capacity development of broadband Internet access.
Minnesota's SF 2254 sets a universal and high-speed goal, for no later than 2015, that all residents and businesses acquire access to high-speed broadband that provides minimum download and upload speeds.
To encourage more access to utility poles in Georgia, SB 328 has been introduced to prohibit electric suppliers from discriminating cable companies who want to have access to electricity poles.

Promoting Digital Inclusion: Online training and education is particularly needed for communities that currently have limited access to the Internet: African Americans and Latinos, the elderly and disabled, and residents of rural areas - who can explore educational and professional opportunities and find resources for entrepreneurial assistance. In an era where entry-level jobs require a familiarity with the Internet, access to and knowledge of broadband applications is essential to economic survival. As advocated by the Joint Center for Political and Economic Studies, state legislators must ensure that broadband is accessible to consumers, through anchors institutions, community based organizations, and within the home - in addition to being coupled with digital literacy training.

As we noted last year, Washington has been a leader in digital inclusion programs with HB 1701, creating a menu of digital inclusion programs through its Community Technology Opportunity Program, which will promote Internet adoption, training, and skill-building opportunities; access to hardware and software; digital inclusion and digital media literacy; development of locally relevant content; and organizational and capacity building support to community technology programs throughout the state.

See also PSN's Guiding Principles for Digital Inclusion Policies for other best practices.

Connecting Job Creation to Broadband Efforts: States are increasingly creating complementary job creation programs connected to their broadband efforts:

Iowa's SF 376 instituted the Iowa Jobs Program, authorizing the creation of jobs related to broadband.
Vermont's HB 711 proposes to provide economic incentives for businesses and farms to create and preserve jobs and improve the state's technological infrastructure and economic environment. Under the provisions of this bill, Vermont will distribute $3.7 million from the $8.67 million it received under the ARRA's fiscal stabilization general services fund. HB 711 also establishes the Broadband Adoption Program for the purposes of accelerating the subscription to and use of broadband Internet access by the public, thereby increasing the sustainability of broadband networks in Vermont, especially in rural and underserved communities.
Virginia's HB 1660 established the Office of Telework Promotion and Broadband Assistance, which aims to encourage telework as a public policy in order to promote workplace efficiency and reduce strains on the transportation infrastructure.
Recently introduced, Hawaii's SB 2543 establishes an office of telework promotion and broadband assistance.

Resources:
Progressive States Network - Guiding Principles for Broadband Strategy Councils
Progressive States Network - Guiding Principles for Digital Inclusion Policies
Progressive States Network - Washington State Legislature Passes Legislation Aimed at Increasing both Access and Adoption of Broadband
Joint Center for Political and Economic Studies - Broadband Imperatives for African Americans: Policy Recommendations to Increase Digital Adoption for Minorities and Their Communities

How Broadband Delivers Economic Growth

Before we even mark the ARRA's first anniversary, states have already found that mapping, deployment, and adoption efforts lead to economic development. For instance, Kentucky's HB 204 concludes that its ConnectKentucky project to promote deployment and adoption of broadband services has resulted in enhanced economic development and public safety for Kentucky communities, improved health care and educational opportunities, and a better quality of life for Kentucky citizens.

A recent report from the Public Policy Institute of California found that areas with broadband saw employment growth 6.4 percent higher than areas without it in the period from 1999 to 2006, with the highest employment growth where technology services represent a larger share of local industry’s inputs. Careful analysis in the report indicates that this relationship is not incidental but a causal relationship between deployment and subsequent economic growth.

This report confirms findings by earlier studies from such organizations as the Brookings Institution, which estimated that for every one percentage point increase in broadband penetration in a state, employment increases by 0.2 to 0.3 percent per year. Other studies estimate that in the early stages of the Internet, information technologies were responsible for two-thirds of total growth in productivity and that for every dollar invested in broadband, the economy sees a ten-fold return on that investment. In a report to the Federal Communications Commission, the U.S. Broadband Coalition - representing more than 160 organizations that include communication providers, labor unions, consumer groups, educational institutions, and units of state and local government - estimated that investment in broadband can create or retain 1 million to 2.5 million jobs.

Among broadband's greatest advantages is its intersection with various sectors of the economy: with energy through smart grid technologies, health care through telehealth, agriculture through crop and irrigation management, transportation through traffic management, and homeland security through mobile detention systems.

The Need to Address Economic Inequality: One important finding in the recent Public Policy Institute study is that while broadband leads to job growth, the benefits are not equally distributed within communities. Wages do not always increase and the concentration of workers in a few high-tech enclaves may retain local tax revenues in municipalities that host information technology companies.

Broadband expansion needs to be encouraged, the study concludes, but to address the digital divide, funds invested in its expansion "might have a large effect on economic or social outcomes if the funds were allocated instead toward subsidizing broadband adoption or other needs of disadvantaged households." This highlights again why digital inclusion and training programs are important as a complement to paying for the physical wiring of our nation, as very few state or federal funds have been apportioned to such broadband use and training programs.

Resources:
U.S. Broadband Coalition - Report of the U.S. Broadband Coalition on a National Broadband Strategy
The Brookings Institution - The Effects of Broadband Deployment on Output and Employment: A Cross-sectional Analysis of U.S. Data
Public Policy Institute of California - Does Broadband Boost Local Economic Development?

The Next Round of ARRA Grants

With the intention to increase efficiency in the next application review process, the NTIA and RUS announced in January the availability of $4.8 billion for the second round of ARRA funding. As the NTIA and RUS are ready to implement their new standards, the agencies plan to accept applications from February 16, 2010, to March 15, 2010, and will announce all awards by September 30, 2010.

Lessons Learned: Among its most fundamental changes is the NTIA’s plan to award at least $150 million for Public Computer Center projects that expand access to broadband service and enhance broadband capacity in public libraries, community colleges, and other institutions that service the general public. Additionally, the NTIA is prepared to award at least $100 million for Sustainable Broadband Adoption, which includes projects to provide broadband education, training, and equipment, particularly to vulnerable population groups where broadband technology has traditionally been underutilized. In an effort to expand more funding to unserved and under-served communities, the NTIA is adopting a “comprehensive community approach” as the way that it will evaluate applications, focusing in middle mile broadband projects that connect key community anchor institutions. These are great steps toward digital inclusion.

A series of workshops on grant and loan writing for ARRA applications are being held in various states by Broadband USA.

The Role of States: States are the advisors to the federal agencies that approve broadband program applications. As mandated by the ARRA, the NTIA and USDA must consult with state governments in order to determine which programs would best serve underprivileged areas, knowledge that state officials uniquely posses. The advisory role of states begins with their knowledge of communities that are un-served and underserved. This understanding continues with their assessment of which communities would benefit the most from the stimulus and would receive the actual funding.

Not only do states understand the immediate benefits that loans and grants would provide, but also they can assess the long-term effects in their communities and how these can be disseminated throughout their states. With every incentive to make the money work, states know which ARRA funded programs would best compliment already existing programs, and how the benefits can be shared by nearby communities that are not receiving direct ARRA funding.

As we wrote in our Dispatch Making Broadband a Key Part of States' Economic Recovery, the Progressive States Network encourages grassroots organizations and other groups to seek the advice of their state legislators before submitting any application for ARRA funding. State legislators can provide knowledge of the results in the approval of an ARRA grant or loan. An example of direct state participation took place in Massachusetts where Governor Deval Patrick played a crucial role in the approval of $2 million in funding for the development of broadband data requisition and mapping across the 351 communities of the state. Specifically, the funding will be directed towards building new broadband infrastructure that will bring high-speed Internet access to tens of thousands of households, businesses, and community anchor institutions, including the un-served and under-served communities of western Massachusetts and Cape Cod.

State legislators can provide vital information and recommendations for ARRA applications and they will also act as inevitable monitors of the implementation of the funded programs. We anticipate that state legislators will continue to act as watchdogs of ARRA program implementation. Furthermore, their participation is imperative as many of these federal grants will simultaneously go towards private companies, non-government entities, and ad hoc projects. It is important that state officials ensure that selected projects reach the intended populations and are implemented in the public interest.

Resources:
United States Department of Agriculture - Commerce Department's NTIA and USDA's RUS Announce Availability of $4.8 Billion in Recovery Act Funding to Bring Broadband to More Americans
Broadband USA
Progressive States Network - Making Broadband a Key Part of States' Economic Recovery

State Job Creation Strategies Part I: Finding the Money and Investing in Human Capital and Physical Infrastructure

Nathan Newman — Tue, 19 Jan 2010 12:59:28 -0500

The fundamental challenge in this recession is that the growth that preceded it was a mirage. Bubble era borrowing created a network of financial jobs, real estate jobs and construction jobs that collapsed with the end of the bubble. Many of those jobs will never return.

An extremely high proportion (75%) of job losses in this recession are permanent rather than temporary. States will need to nurture completely new industry sectors and the infrastructure to support those jobs, while the jobless will need retraining in new skills to participate in those sectors.

The Private Sector Can't Do it Alone: As the Economic Policy Institute wrote recently, "it is likely that unemployment will remain above 8% even two years from now in the absence of bold and decisive action to create jobs." With the credit crunch and the reduction in consumer demand, small businesses are experiencing tough times. In 2008, for example, 43,500 businesses filed for bankruptcy, up from 28,300 businesses in 2007 and more than double the 19,700 filings in 2006.

What's needed: As this Dispatch will highlight, the first step is to fund jobs that support long-term economic competitiveness, notably by investing in people and physical infrastructure. While the economic climate for profit-making business opportunities is more limited, investments in education, health care, transit and energy efficiency can create immediate jobs while strengthening building blocks for long-term growth.

Next week's Dispatch will be a second part of this series on how states can nurture startups, strengthen existing industry sectors, and promote green jobs in their states.

Mobilizing for a Federal Support for Jobs and State Fiscal Relief: As we highlighted two weeks ago, a critical part of job creation will be a new round of federal job creation and state fiscal relief. We are asking state legislators to sign onto a letter to promote this job creation plan at www.progressivestates.org/jobcreation or by emailing jobcreation@progressivestates.org. Advocates can sign onto a similar letter for organizations or use our handy online tool to contact their state legislators to let them know about the job creation letter and to encourage them to sign.

Resources:
Progressive States Network - Take Action: Additional Federal Job Creation and State Fiscal Relief Needed
Economic Policy Institute - American Jobs Plan: A Five Point Plan to Stem the U.S. Jobs Crisis
Center for Labor Market Studies (Northeastern Univ.) - The Great Recession of 2007-2009: Its Post-World War II Record Impacts on Rising Unemployment and Underutilization Problems Among U.S. Workers

Direct Public Money to Investments in Economic Growth

In the current economic and fiscal crisis, finding the funds for long-term investments is a challenge, but those investments will deliver both short-term jobs and long-term economic growth to turn state economies around. States need a balanced approach of revenue increases, bonds for long-term investments and tapping existing sources of state capital like state pension funds to marshal the capital needed for economic recovery.

Raise Revenues, Don't Cut Public Investments: The recession has made clear the hollowness of the bubble economy in many states, especially in some of the low-tax, low-investment Sunbelt states touted by anti-tax forces as exemplars of economic growth.

When measuring long-term economic competitiveness, states with some of the highest marginal tax rates on individuals -- from New York to Maryland -- were supporting some of the most innovative "new economy" industries in the country, according to a 2008 analysis by the Information Technology & Innovation Foundation. As we detailed last year, progressive tax increases to fund economic recovery are the better alternative to budget cuts. Many needed investments are in the fundamentals of education and infrastructure as well as in the nurturing of new sectors where private capital is unlikely to effectively step in. Increased tax revenue to fill in government and private sector gaps in investment is clearly needed.

Use State Bonding Authority: One obvious source for funding long-term growth projects are new bonds that can be paid back with the tax revenue yielded by greater economic growth. Especially where tolls or energy savings will directly return revenue to the state from bonded investments, legislative leaders are aggressively pursuing new bond investments.

The federal ARRA recovery plan provides a two-year 35% tax credit for state Build America Bonds, which is yielding record low interest rates for states that are issuing bonds. For example, Washington state received an interest rate equivalent to 3.52 percent on $500 million in bonds issued in October. To help municipal governments take advantage of lower interest rates and lower issuance costs, nearly a dozen states have created "state bond banks" to pool the loans of local governments.

A few examples of recent state bond discussions around the country include:

The Ohio House of Representatives has approved placing a $950 million bond issue on the May 4th ballot to renew for another five years the state’s largest economic development project, the Third Frontier, which invests in research and commercialization of technology in five industries sectors and created 41,300 jobs from 2003-2008.
Last week, the Washington State House Capital Budget Committee approved sending $861 million Jobs Act Bonds to voters in November to fund schools and colleges to fund energy upgrades. The sponsor, Rep. Hans Dunshee, estimates it would create 38,000 jobs and generate energy savings that will cover much of the interest costs.
Minnesota legislative leaders are proposing $1 billion in bonds to build and repair facilities around the state.

Use Pensions Funds for In-State Investments: Unwilling to rely on uncertain global investment markets to fuel economic growth, states are increasingly choosing to directly invest in local state businesses. Instead of giving away corporate welfare and subsidies, states can offer needed capital to create a financial stake in firms. If these businesses are successful, they return equity to taxpayers that can be reinvested in other projects.

One study found that the California Public Employees' Retirement System's in-state investments fed an estimated $15.1 billion into in-state economic activity in 2006 and created 124,000 jobs-- more jobs than the construction or motion picture industries. Other examples of in-state pension investments include:

Florida Governor Charlie Crist recently signed an economic stimulus plan for the state that redirects $1.95 billion of the state's pension fund into direct investments in Florida's economy.
Washington state held $1.4 billion in Washington-based investments at the end of 2008, using the money to leverage additional capital from other sources to invest in the state.
New York held $403.6 million as of March 2009 through its Common Retirement Fund with another $500 million available to invest in New York-based businesses.
The Invest Michigan! Fund features The Michigan Opportunities Fund and the Growth Capital Fund and is capitalized with $300 million from the state's pension fund.
In Indiana, the public pension funds collaborated with state universities and various health-based companies to launch the Indiana Future Fund, an investment fund designed to benefit Indiana companies, especially in the life sciences and high technology arena.

Avoid Privatization as a Funding Source: Given budget deficits, some states are being lured by the supposed "free lunch" offered by selling or leasing public assets to private firms with the promise of upfront private investment. Unfortunately, as we have detailed repeatedly (see here and here and here), privatization of public assets are inherently likely to ripoff the public to the benefit of private interests.

As detailed in a U.S. PIRG report last year, since governments can issue tax-free bonds at lower rates than private investors, "deals based on private capital are inherently more expensive than public financing." In 2008, Missouri was planning to use some form of privatization with investors to fund an ambitious plan to repair or replace 802 bridges. Now, the Missouri DOT is funding the entire project through the sale of government bonds.

Don't Waste Money on Direct Subsidies to Businesses: One general caution for states is to limit grants, tax credits and other giveaways to business. Instead use either direct equity investments or loans that are repaid in order to replenish the supply of public capital over the long-term.

States waste money competing for firms to cross the border from another state, rather than on fostering entrepreneurship and new jobs. A recent Good Jobs First report on high-tech deals by states notes that many are extremely costly. The poster children for bad deals are North Carolina's large subsidies to Dell Corporation, who took the money, but then sent the 900 jobs off-shore four years later and New York giving microchip maker AMD (later Global Foundries) $1 million in taxpayer funds for each job being created by the firm upstate. As the report states:

Tax reductions, exemption or credits “exert a very small marginal influence on corporate investment decisions because other cost factors such as labor, occupancy and other key inputs are far larger than taxes (or tax breaks)… For the vast majority of companies, tax breaks are windfalls, not determinants, and are therefore wasted.

Redeploy Wasted Corporate Giveaways to Real Public Investments: If states do a thorough review of ineffectual subsidies, costly contracting out, and tax credits, they can generate additional revenue that can be used for more effective job creation efforts. Progressive States Network has worked with allies to outline model Corporate Transparency in the State Budget legislation and set up a supporting campaign webpage to help achieve that goal.

As the rest of this Dispatch emphasizes, states can better invest scarce public dollars in upgrading the quality of the workforce and infrastructure, rather than engaging in costly bidding wars with other states for jobs.

Resources:
Information Technology & Innovation Foundation - The 2008 State New Economy Index: Benchmarking Economic Transformation in the States
U.S. PIRG - Private Roads, Public Costs: The Facts About Toll Road Privatization and How to Protect the Public
Council of Development Finance Agencies - State Bond Banks: Municipal Borrowing Made Easy
CALPERS - CalPERS - An Economic Engine
Good Jobs First - Growing Pennsylvania's High-Tech Economy: Choosing Effective Investments
Progressive States Network - Corporate Transparency in State Budgets

Invest in People- the Key Engine of Growth

In a global economy where the quality of the workforce increasingly determines the standard of living, investing in an educated and healthy population is key to promoting state economic growth.

Invest in Education: One of the largest successes of the recovery plan has been preventing massive teacher layoffs and creating or preserving 250,000 education positions. Additional federal help will be needed to stave off reductions in the coming years, but it is a marked success that despite the largest downturn in post-war history, the core educational infrastructure of our nation has been preserved.

Why this is so important is highlighted by a number of recent studies that emphasize that investments in education have clear dollar returns to state governments.

Each new high school graduate yields a net public benefit of $127,000 or 2.5 times the cost of needed public investments, according to a Columbia Teachers College report. In fact, cutting in half the number of high school dropouts would yield $45 billion in extra tax revenues. High school graduates themselves will earn $117,000-$322,000 more in their lifetimes than dropouts, with female college graduates, for example, earning $800,000 more than dropouts.
As we detailed last spring, early education investments in particular show long-term economic payoffs. A recent Cornell University study found that funds spent in the early education sector have more stimulative effect on the economy than most other spending. Early education programs help parents take advantage of opportunities in the workforce and child care improves parents' productivity at work. One study by the business-backed Committee for Economic Development, estimated that for every dollar invested in preschool, there was an expected return of $2 to $4 in future societal benefits.

Part of youth education is giving them entry-level job training. The federal recovery plan helped revive summer youth job programs across the country, offsetting massive youth unemployment in the private sector. The Idaho Labor Department sponsored its first youth employment program in over a decade.

Support Worker Retraining: While training can't create jobs, it can ensure that workers who are unlikely to be reemployed in their old industry sectors have a chance to be reemployed somewhere else -- and that vibrant industries have the skilled workforce needed to expand in a state.

A Michigan Council for Labor and Economic Growth study found that a five percent increase in college-educated adults would boost economic growth by 2.5% over ten years and real wages by 5.5%. Similarly, studies show that just helping workers get their GED significantly boosts their employment in the long-term. Notably, a study by the National Skills Coalition (formerly the Workforce Alliance) found that even as unemployment mounted in summer 2009, 60% of employers still had trouble finding qualified applicants for the vacancies they did have -- emphasizing the lack of fit in skills between those laid off and the sectors where growth is likely to occur.

In our Dispatch Averting Layoffs and Revitalizing the Manufacturing Economy, we highlighted a range of best practices through which states can both work to avert impending layoffs and use rapid-response to help employees get new jobs or enter retraining programs as quickly as possible. These include Rapid Response programs used by some states to on-site contact with employees before layoffs, accessing training programs like Trade Adjustment Aid, working with communities to tailor training and placement programs, as well as promoting Peer Networks to train groups of workers during layoffs to collect information from fellow workers, help connect them with community services, promote job referrals, and work with community leaders.

Fund Health Care and Support the Safety Net: Health care and other safety net spending is not just a public expense; it is also itself an investment in economic growth. A healthier workforce means greater economic productivity and more years of productive labor. And the health care industry is itself a source of good quality jobs.

A few years ago, a Commonwealth Fund study estimated that labor time lost due to health reasons totalled $260 billion per year. And unhealthy workers often have lower productivity at work. In fact, because people are living and working longer, long-term economic growth is likely to be far higher than many current government projections, according to a recent study by North Carolina State University. "Spending on health care productivity, biomedical research and universal health care should be considered an investment that will eventually lead to increased economic growth," argues co-author Dr. Al Headen. The payoffs are likely to be more taxes paid, more consumer spending and far lower public expenditures on programs like Medicare than currently assumed.

Another remarkable accomplishment of the federal-state partnership in the last year has been not only preservation of basic health care spending for low-income families, but the expansion of SCHIP programs for children and COBRA subsidies for the unemployed. This is in sharp contrast to the recession in the early part of this decade when literally millions of people lost publicly funded health coverage. Maintaining health programs will continue to be a challenge for states -- and new federal funds are a key part of that solution -- but it should be considered a key part of long-term investments in a healthy workforce.

Integrate New Immigrants into the Economy: As we emphasized last week, keeping an estimated 12 million people in the shadows of the economy is bad for them, bad for native workers and bad for the U.S. economy. A recent report estimated that immigration reform that integrates new immigrants into the U.S. economy would create $1.5 trillion in added GDP over ten years and newly legalized workers would increase tax revenues by up to $5.4 billion in the first three years. Another study by the CATO Institute found that legalization would boost the incomes of U.S. households by $180 billion annually by 2019.

Across the board, the goal should be to maximize the productivity of all workers in our economy and produce the most economically competitive workforce in the world.

Resources:
Progressive States Network - Early Education Investments: Economic Importance and Policy Implementation
Columbia Teachers College Center for Benefit-Cost Studies of Education - An Excellent Education for All of America's Children
Workforce Alliance - Job Training is Key to Success of Jobs Bill: Analysis and Recommendations
Progressive States Network - State Action for the Unemployed
National Employment Law Project - Rapid Response Training Overview
Michigan's Human Resource Development Institute - Peer Networks
Commonwealth Fund - Health and Productivity Among U.S. Workers
Council for Labor and Economic Growth - Transforming Michigan’s Adult Learning Infrastructure
Center for American Progress and the Immigration Policy Center - Raising the Floor for American Workers: The Economic Benefits of Comprehensive Immigration Reform
Cato Institute - Restriction or Legalization? Measuring the Economic Benefits of Immigration Reform
North Carolina State University - Study shows health care spending spurs economic growth

Creating a 21st Century Infrastructure in the States

“As a country, we’re deluding ourselves if we think we have put enough into infrastructure," notes the Urban Land Institute. "We’ve been under-investing for 30 years.” As a percentage of gross domestic product, infrastructure spending actually has been declining since 1959. A 2009 American Society of Civil Engineers (ASCE) assessment calculates that $2.2 trillion is needed for infrastructure repairs and upgrades just in the next five years. In contrast, China has committed $259 billion to its plans for building the world's largest high-speed rail system -- with trains going up to 218mph -- and plans to add another half trillion dollars in the next few years for a total investment to $730 billion by 2012. That's more than the entire 2009 federal recovery plan.

The federal recovery plan had $132 billion for infrastructure of all kinds, from roads to transit to smart energy grids, but that's a tiny part of what is needed for the U.S. to retain global competitiveness.

More and Better State Transit: Focus on repairing existing infrastructure, strengthen gateway infrastructure in ports and cities which are the focus of global shipping and travel, and reconfigure suburbs to better integrate regional economies.

Public Transit Investments are a Key Job Creator: One clear lesson from the recovery plan, according to a recent report, is that money spent on public transit yields nearly twice the jobs compared to similar amounts spent on highway projects. This result is due to the fact that public transit spends less money on real land costs and supports vehicle manufacturing and maintenance jobs. It also especially helps low-income workers save money in getting access to jobs where transit integrates communities. One innovative, lower-cost transit approach is bus rapid transit (BRT), which builds separated lanes for larger buses that can move at speeds approaching subway lines. Pioneered in Ottawa, Canada and Adelaide, Australia, similar systems are spreading to Latin America, China, India and Mexico. In the U.S., Los Angeles and Boston have adopted BRT principles and Chicago will be inaugurating BRT service in 2010.
Integrate transit with land use planning: Building transit in the middle of sprawl does little to ease congestion; instead transit funding needs to be linked to development planning that integrates transit with access to jobs and retail. The Denver region is a notable success story in using transit and land use zoning to reclaim its urban downtown, adding a 122-mile light rail system, instituting a Bus Rapid Transit system to link to nearby Boulder, and linking the urban core to multiple town centers in the surrounding suburbs.
Strategically Apply User Fees to Fund Infrastructure: The Urban Land Institute emphasizes that more of the costs of transit infrastructure will inevitably need to be borne by consumers in the form of higher gas taxes, tolls and congestion pricing in urban areas. This needs to be combined with targeted tax relief to ease the burden on low-income families. The reality is that gas taxes in the U.S. are far smaller than European economic competitors, who use those revenues to fund far more robust transit upgrades across their continent.

Broadband and Smart Grid Investments: Despite the U.S. playing a key role in creation of the Internet, a study by the International Telecommunications Union found that the United States now ranks 17th in global broadband penetration. Lack of affordable broadband access undermines the international competitiveness of our communities and workforce. The $7.2 billion of direct broadband funding in the federal recovery plan and pockets of other funding for digital infrastructure throughout the ARRA also emphasized broadband as a catalyst for spurring job creation and economic growth.

A number of state legislators have created Broadband Strategy Councils to focus on using those and internal state funds to increase access to and adoption of affordable broadband. Beyond investing in physical infrastructure, increasing digital literacy is a key investment as well. During the 2008 legislative session Washington state passed SB 6438, which created a statewide high-speed Internet development process and established the Community Technology Opportunity Program (CTOP) that will provide resources for capacity-building and grant-giving to Community Technology programs that provide hands-on technology access and training to residents.

Water Systems: Many cities and regions are using old water systems desperately in need of repairs and upgrading. Nationwide, the U.S. Environmental Protection Agency (EPA) projects a $224 billion funding gap between 2000 and 2019 between what states are spending and federal requirements for water quality. Part of the solution are new policies to reduce wasteful water use, since per capita domestic water consumption in the U.S. is more than twice as much as most global competitors-- and more than four times the use by citizens of Great Britain and China.

In California, where some water bills can approach $500 a month, jurisdictions began to require retrofitting homes on resale. Development needs to be restricted in areas lacking water systems, since such growth just dumps costs on government and leads to underfunding water systems in established areas.

Infrastructure Projects already approved: Some notable examples of integrated infrastructure investment programs around the country include:

Illinois Department of Transportation has $3.1 billion in committed projects in 2009. In addition, Illinois is creating a major “inland port” with the development of Union Pacific's new intermodal facility in Joliet that will create an estimated 7,000 jobs.
Iowa's I-Jobs program approved last year has created a three-year, $830 million investment in Iowa’s infrastructure using existing gaming revenue including public improvements, community colleges, veterans homes ($285 million), disaster recovery and prevention ($165 million), improving transportation infrastructure ($115 million), rebuilding universities ($115 million), improving environment and water quality ($80 million), and enhancing telecommunications and renewable energy ($35 million).
Oregon's Job and Transportation Act invests more than $1 billion to address all sectors of Oregon's transportation system, including roads, bridges, bike and pedestrian facilities, mass transit, railroads, ports and airports. Green aspects of the bill included multi-modal transportation, increased transit funding, planning for greenhouse gas reduction scenarios, a congestion pricing pilot project, and an urban trail fund for non-motorized vehicles and pedestrians.

The key to long-term growth is moving infrastructure investments from one-off projects towards integrated investments that connect them into a holistic plan for growth. As Robert Puentes of the Brookings Institution said this past year at a Congressional hearing, "the problem is that there is too little integrated decision making that crosses disciplines and joins-up solutions in infrastructure investments." To achieve maximum effectiveness, transit and other infrastructure investments need to be coordinated not only with each other, but also with land use and housing decisions.

Next Week: State Job Creation Strategies Part II: Supporting Innovation, Industrial Clusters & Green Job Creation

Resources:
Urban Land Institute - Infrastructure 2009: Pivot Point
American Society of Civil Engineers - Report Card for America's Infrastructure with State and Local Report Cards
U.S. PIRG, Smart Growth America, CNT - What We Learned from the Stimulus: And how to use what we learned to speed job creation in the 2010 jobs bill
Progressive States Network - Making Broadband a Key Part of States' Economic Recovery

FCC Workshop on National Broadband Plan: State and Local Governments - Toolkits and Best Practices

PSN — Thu, 17 Sep 2009 13:01:06 -0400

FCC Workshop on National Broadband Plan: State and Local Governments - Toolkits and Best Practices

The FCC has been hosting workshops to gather information to aid in the development of a National Broadband Plan. On September 1st, state and local telecommunications officials participated in a workshop entitled State and Local Governments: Toolkits and Best Practices, at which the FCC aimed to learn from the experiences of state and local governments that have proactively addressed broadband deployment and adoption issues in their communities. Some of the topics discussed were: identifying gaps in existing broadband policy, developing necessary infrastructure, securing support from key stakeholders, encouraging adoption, funding broadband initiatives and evaluating the effectiveness of enacted policies.

During the first panel state officials and regulators spoke about specific broadband initiatives their states had undertaken as well as difficulties they faced, and continue to face, in trying to increase access to broadband. Each panelist gave an opening statement and then participated in a question and answer session. Panelists included Commissioner Ray Baum of the Oregon Public Utilities Commission; Deputy State Chief Information Officer for Colorado John Conley; Charles Ghini, Director, Department of Management Services, Division of Telecommunications, State of Florida; Karen Jackson, Deputy Secretary of Technology, Commonwealth of Virginia; Craig P. Orgeron, Ph.D., Director, Strategic Services Division, Department of Information Technology Services, State of Mississippi; and Jane Patterson, Executive Director, e-NC Authority, State of North Carolina.

Some of the key points highlighted by panelist were the need for faster broadband and the importance of focusing on how broadband can be leveraged across various sectors. Commissioner Baum from Oregon pointed out that those areas of the country that don't have access to broadband services of at least 10 megabits in the next 5 to 7 years, and the timeline may be sooner, will be as economically disadvantaged as those areas in the first half of the 20th century that didn't have paved highways or electricity. He also emphasized that we need to ensure policies are structured to involve and not block community needs, are technology neutral and focused on end results such as providing real-time video applications for health care and education institutions and real-time data for public safety institutions. John Conley from Colorado noted that broadband deployment is critical for governments to retool and creates and fosters more accessibility among citizens to government services. He also opined that broadband deployment should be and needs to be an underlying topic when we talk about health care and education reform because it will be the infrastructure backbone of how these two major initiatives are brought to citizens. Karen Jackson from Virginia spoke about the challenge of trying to break down siloed efforts in communities. She stated that once you are able to assimilate all the assets that are available -- the funding streams, the e-rates, rural health -- and get everybody around the same table, it was much easier to move an initiative forward than it is trying to push it from the top-down.

Throughout the day panelists also spoke a great deal about digital literacy. Dr. Orgeron said that for Mississippi one of the main issues that needs to be addressed is digital literacy and helping citizens to simply understand what it is that they may even gain access to. Jane Patterson stated that the mission of North Carolina is that "everyone has the opportunity to learn how to use computers, learn how to get on the Internet and have access to the Internet." In an effort to achieve this goal the state has tried to make certain that there was a public access center within 40 minutes of every single citizen in the state so that they at least had somewhere to go. They used the "library system, and then created about a hundred other public access centers and at those centers, anyone coming in could get access to some training." She also explained that since 1993 North Carolina has had a type of K-12 digital literacy program. There is a curriculum starting in kindergarten through the seventh grade, and then in the seventh grade students are able to start taking a test, which they have to pass to get a high school diploma. If they don't pass the test they get a certificate but not a diploma. The goal behind this was to get students to be able to use computers for decision making in high school and as a work force investment idea.

Karen Jackson said that Virginia has done programs in conjunction with community colleges and 4-year colleges, one of which has been providing e-commerce existence for small businesses. Charles Ghini stressed that based on Florida's experience he thinks that if you don't have an holistic approach and you don't have the statewide vision, you're increasing your chances for failure.

Some of the biggest challenges or hardest issues the states have faced: Presenters touched upon some of the hardest issues they face in trying to increase broadband access and adoption. Some of the issues mentioned were gaining access to accurate data about broadband in their states, USF reform, and ensuring broadband is deployed in all socioeconomic areas of urban communities.

For a transcript of the entire workshop click here.

The second panel included municipal and county-level officials. For a summary of that panel click here, for a transcript or recording of that panel click here.

Resources:
Broadband.Gov - Workshop: State and Local Governments: Toolkits and Best Practices (You can download a recording and the transcript of both panels from this site.)
Benton Foundation - How State and Local Governments are Addressing Broadband Deployment and Adoption
e-NC Authority
Virginia's Community Broadband Tool-Kit

New Mexico Passes Media Literacy Bill

PSN — Thu, 07 May 2009 12:23:38 -0400

The proliferation of the Internet and emerging technologies has transformed the quantity, array of content, and speed at which information is communicated in our lives. According to a Kaiser Family Foundation report, 8-18 year olds spend on average close to six and a half hours per day with various forms of media. This evidence of media saturation underscores how important it is for young people to be able to think critically and create media in order to communicate effectively with society.

This year New Mexico enacted HB 342, which states that media literacy courses may be offered as an elective for public school students in 6th-12th grade. A statement released by Rep. Maestas, the bill's sponsor, said, “[m]edia literacy is a 21st century approach to education. It provides a foundation for young people to decipher the countless media images and messages they receive on a daily basis... Media literacy builds an understanding of the role of media in society as well as essential critical thinking skills necessary for citizens in an advanced democracy.”

The state legislature's decision to pass a law that will facilitate public schools incorporation of media literacy as a more central part of their curriculum is a victory for advocates who have argued, for years, that the changing communication landscape demands us to expand our educational priorities to include media literacy.

While many state educational standards have incorporated either formally or informally, elements of media literacy, media education really only reaches a very small percentage of schools. By allowing for an elective to focus on media literacy, however, New Mexico's legislative action sends a clear message that "being literate in today's society requires more than knowing how to read or write," it requires being able to understand and create different types of media.

Although HB 342 did not define media literacy, the New Mexico Media Literacy Project (NMMLP), which serves as a resource to school districts, defines media literacy as the ability to critically consume and create media, including understanding the “text” (surface content) and “subtext” (hidden meanings) in messages received from: television, radio, newspapers, magazines, books, billboards, signs, packaging, marketing materials, video games, recorded music, the Internet, and other media. According to a statement from NMMLP, "[m]edia literacy education helps empower learners to become active community and civic participants." In addition, when media literacy education includes teaching students how to develop their own content, students' creativity and valuable problem solving and cooperation skills that will help them develop essential job skills are nurtured.

Resources
Kaiser Family Foundation, Generation M: Media in the Lives of 8-18 Year Olds
Toward Critical Media Literacy: Core concepts, debates, organizations, and policy
New Mexico Media Literacy Project
Center for Media Literacy

Washington State Legislature Passes Legislation Aimed at Increasing both Access and Adoption of Broadband

PSN — Thu, 30 Apr 2009 13:10:00 -0400

With the passage of HB 1701 the Washington State legislature once again demonstrated its understanding that when combating the digital divide states must not just address access issues, but must also focus on dealing with the barriers to broadband adoption by individuals. In addition to hoping to increase high-speed Internet access for residents, businesses, educational institutions, public health and safety services, local governments and community organizations, HB 1701 also lists a menu of the types of digital inclusion programs that should be implemented in Washington State. By addressing both access and adoption barriers directly Washington State hopes to ensure that all residents can be active participants in our 21st century digital society. According to Jonathan Lawson, Executive Director of Reclaim the Media, "connecting all our communities with fast broadband is a compelling public need -- to allow everyone to take part in our digital democracy, culture and economy. This new legislation clears a path for us to follow towards that goal."

Broad Coalition in Support: The bill originally sponsored by Representatives Hudgins, Hasegawa and McCoy and incorporating amendments championed by Senators Kohl-Welles and Kastama was supported by a broad coalition of advocates, such as the Communication Workers of America (CWA), the Communities Connect Network and carriers and includes investments in digital training and inclusion programs. According to CWA's Washington State Council Political Director, Gail Love, "the broad coalition of organizations that lobbied on behalf of HB1701 has not always viewed issues from the same perspective. However, on HB1701, we found common ground. Bringing high-speed broadband accessibility to the residents of Washington will enhance their lives socially and economically and will bring jobs and new business to our region."

Capitalizing on Recovery Funds: The legislation was drafted, in part, so that the state could capitalize on the approximately $7.2 billion in the ARRA earmarked for broadband initiatives. Aside from authorizing the Governor to take steps to carry out the purposes of the broadband provisions in the ARRA, HB 1701 has three major provisions: a data collection and mapping initiative, the establishment of the Community Technology Opportunity Program, and the reconstituting of the state's high-speed Internet working group.

Collection and Mapping of Access and Adoption Data: HB 1701 designates the Department of Information Services (DIS) as the eligible entity in the state to apply for funds under the federal Broadband Data Improvement Act. In addition, the bill directs DIS to develop a map of where broadband services are and are not currently available in Washington State and "to work with other agencies to identify the communities most in need of new or additional broadband Internet services." Specifically, the legislation states that depending on the availability of federal or state funding, the department may develop an interactive web site to allow residents to self-report whether high-speed Internet is available at their residence and at what speed; may conduct a detailed survey of all high-speed Internet infrastructure owned or leased by state agencies; and is authorized, through a competitive bidding process, to procure a geographic information system map detailing high-speed Internet infrastructure, service availability, and adoption. The department may either contract for and purchase a completed map from a third party or work directly with the federal communications commission. In addition, the department may prepare regular reports that identify the geographic areas of greatest priority for the deployment of advanced telecommunications infrastructure and a detailed explanation of how federal funding for broadband mapping, deployment, or adoption will be or has been used.

One concern advocates voiced regarding the bill is that data collected from private providers will be considered 'proprietary' information and therefore not accessible to the public. Advocates in the state and nationally argue that such an approach lacks transparency, leaves the public unable to verify the collected information, and public policy researchers unable to access the date necessary to study which broadband policies are most effective. On a positive note, however, the legislation does establish an important accountability and oversight structure to ensure that there is transparency in the bidding and contracting process and full financial and technical accountability for any information or actions taken by a third-party contractor creating the map.

Digital Inclusion: The legislation recommits Washington State to addressing broadband utilization barriers by moving the Community Technology Opportunity Program (CTOP) under the Department of Information Services. The CTOP uses a competitive grant program to encourage broadband adoption in low-income and underserved areas of the state. Initiatives facilitated by the program include Internet adoption, training, and skill-building opportunities; access to hardware and software; digital inclusion and digital media literacy; development of locally relevant content; and delivery of vital services through technology. The CTOP will also provide organizational and capacity building support to community technology programs throughout the state. According to Betty Buckley, executive director of Communities Connect Network, a national leader in promoting digital inclusion programs and creating state demand-side policy, "HB 1701 takes another significant step forward in building the policy framework for how our state will ensure digital inclusion for all. Passing this bill in the current economic climate speaks volumes about the strength of the multi-faceted broadband coalition we’ve build here in Washington State."

Reconstituting the State's High-Speed Internet Working Group: The law allows for the continuation of the high-speed Internet working group, under the new title, the Council on Digital Inclusion. As the council's new name denotes, the group will now focus on broadband adoption, not just deployment issues. The Council on Digital Inclusion will have representatives from government, educational, public health and industry sectors, and will advise DIS and further strategize about expanding broadband deployment and adoption across the state.

Resources:

House Bill 1701
Increase Technology Literacy and Inclusion
Reclaim the Media
Community Connect Network

Making Broadband a Key Part of States' Economic Recovery

PSN — Mon, 16 Mar 2009 15:06:57 -0400

Making Broadband a Key Part of States' Economic Recovery

Over 2,600,000 jobs were lost in 2008. Many of these jobs are in traditional sectors that are unlikely to return, so investing in both the infrastructure and job skills needed for a digital economy are critical to reviving long-term economic growth. Unfortunately, as acting FCC Chairman Michael Copps said last week, "[t]oo few consumers and small businesses in this country have the high-speed broadband they need.... We pay too much for service that is too slow.” To emphasize his point he highlighted a study by the International Telecommunications Union that found the United States now ranked 17th in global broadband penetration. Lack of affordable broadband access undermines the international competitiveness of our communities and workforce.

America has always realized the importance of investing in traditional infrastructure, such as roads, bridges, railways and waterways. These infrastructure systems have enabled the United States's remarkable economic growth of last century, and we have willingly financed their construction, maintenance and upgrades. With the recently passed American Recovery and Reinvestment Act of 2009, our nation has committed an unprecedented amount of money to initiatives aimed at improving our digital infrastructure. These initiatives focus on increasing access to and adoption of affordable broadband technology. Rick Wade, Commerce Department senior advisor and acting chief of staff, stated that "both Commerce and USDA’s broadband programs represent a critical component of the administration’s broader economic recovery program.”

As the $7.2 billion of direct broadband funding and pockets of other funding for digital infrastructure throughout the ARRA demonstrate, the Obama Administration sees broadband as a catalyst for spurring job creation and economic growth. Further, it is an integral tool to improve health care access, energy management, public safety and transparency; and a mechanism to increase educational, civic participation and social opportunities.

The Current Digital Divide: Unfortunately, as we become increasingly dependent upon advanced communication and information technologies, people with less access to broadband or with fewer digital skills become increasingly disadvantaged financially and have fewer opportunities. Currently, nearly 20 million Americans do not have access to a single high-speed Internet provider, and only an approximate 60 percent of American households subscribe to broadband service. Many of those who do not subscribe to broadband do so because they lack a comprehensive understanding of the benefits of broadband and how it can improve their lives. Others lack the necessary digital skills or the ability to afford broadband or related technology.

The 21st century has transformed our economy and broadband access and digital skills are now critical for the job search and application process, as well as a substantial number of employment opportunities. Additionally, access to and the ability to utilize high-speed Internet services is key to making telehealth opportunities a reality, using online government services and taking advantage of remote educational opportunities. Without that access, living standards in the U.S. will fall and inequality will rise.

States Taking Action: With new help from the federal government, states are increasingly taking action to bridge the digital divide -- creating policies to promote access to and adoption of broadband to ensure that a greater equality is created between the technological haves and have-nots. To increase access to and adoption of broadband while creating a more inclusive network, states should pursue two courses of action: (1) establish Broadband Strategy Councils and (2) support digital inclusion programs. Broadband Strategy Councils should be used to devise a strategic approach to broadband initiatives and ensure that broadband investments correlate with other state goals. Digital inclusion initiatives will help ensure all residents have access to broadband and the necessary skills and hardware to utilize the technology.

This Dispatch will outline how funds allocated in the ARRA aim to support broadband initiatives and how states can leverage broadband to create efficiencies, increase opportunities and begin to bridge a major resource divide in our country by implementing progressive broadband initiatives.

Table of contents
- Broadband and the Federal Recovery Plan
- State Broadband Strategy Councils
- State Digital Inclusion Campaigns
- Conclusion

Broadband and the Federal Recovery Plan

Under the legislation the NTIA was directed to:
• Award at least one NTIA grant to each state; • Dispense grants by September 30, 2010, but funds will continue to be disbursed up until two years after the grant is made. • Make awards on a “technologically neutral” basis. • Fund only projects that adhere to the Federal Communications Commission's Internet nondiscrimination and openness principles; • Promote projects that will "provide the greatest broadband speed possible;” • Consult with state governments to determine which areas are "unserved" and “underserved;” • Consult with states when determining how to allocate grants within that state; • Consider whether an application to deploy infrastructure in an area will increase the affordability of and subscribership to broadband, preferably to the greatest population of users in the area; • Consider if the initiative will provide the greatest broadband speed possible to the most users in the area; • Consider if the initiative will enhance service for health care delivery, education, or children to the greatest population of users in the area; and will not result in unjust enrichment as a result of support for non-recurring costs through another Federal program for service in the area; • Consider whether or not the applicant is a socially and economically disadvantaged small business; • Eligible services are not limited to end-user broadband services. It appears that backhaul, middle-mile, wholesale transit, tower services, are eligible projects. Grant applications must include, among other things, the following information: • A demonstration that projects receiving money will be substantially completed in two years; • A demonstration that an entity can meet the grant’s 20% matching requirement (the federal government will pay up to 80% of the cost) or is eligible for an economic hardship waiver; • An explanation of how any amount received under the program will carry out the objectives of the legislation and be used to an efficient and expeditious manner. Additionally, the law requires that, the project would not have been implemented, within the proposed timeframe, but for the federal grant; • Demonstrate, to the satisfaction of the grantors, that it is capable of carrying out the project or function to which the application relates in a competent manner in compliance with all applicable federal, state, and local laws.

Under the legislation the NTIA was directed to:

• Award at least one NTIA grant to each state;

• Dispense grants by September 30, 2010, but funds will continue to be disbursed up until two years after the grant is made.

• Make awards on a “technologically neutral” basis.

• Fund only projects that adhere to the Federal Communications Commission's Internet nondiscrimination and openness principles;

• Promote projects that will "provide the greatest broadband speed possible;”

• Consult with state governments to determine which areas are "unserved" and “underserved;”

• Consult with states when determining how to allocate grants within that state;

• Consider whether an application to deploy infrastructure in an area will increase the affordability of and subscribership to broadband, preferably to the greatest population of users in the area;

• Consider if the initiative will provide the greatest broadband speed possible to the most users in the area;

• Consider if the initiative will enhance service for health care delivery, education, or children to the greatest population of users in the area; and will not result in unjust enrichment as a result of support for non-recurring costs through another Federal program for service in the area;

• Consider whether or not the applicant is a socially and economically disadvantaged small business;

• Eligible services are not limited to end-user broadband services. It appears that backhaul, middle-mile, wholesale transit, tower services, are eligible projects.

Grant applications must include, among other things, the following information:

• A demonstration that projects receiving money will be substantially completed in two years;

• A demonstration that an entity can meet the grant’s 20% matching requirement (the federal government will pay up to 80% of the cost) or is eligible for an economic hardship waiver;

• An explanation of how any amount received under the program will carry out the objectives of the legislation and be used to an efficient and expeditious manner. Additionally, the law requires that, the project would not have been implemented, within the proposed timeframe, but for the federal grant;

• Demonstrate, to the satisfaction of the grantors, that it is capable of carrying out the project or function to which the application relates in a competent manner in compliance with all applicable federal, state, and local laws.

The American Recovery and Reinvestment Act allocates $7.2 billion to promote broadband programs. The majority of the funding will be used to increase broadband access in rural, unserved, and underserved areas. Additionally, funding is provided to support community programs that encourage broadband adoption in low-income communities, for initiatives that expand public community centers' capacity and to fund the development of a national broadband map.

The National Telecommunication and Information Administration (NTIA) and the Rural Utility Service (RUS) will be charged with distributing the grants and loans. Eligible grant applicants may apply for either or both the RUS and the NTIA grants, but if they are awarded funds by both agencies, only money from one agency can be used for a specific project. The NTIA will issue its first “notice of funds availability” in April to June of 2009, the second round would be between October and December 2009, and the third round between April and June 2010.

According to the Baller Herbst Law Group, in addition to funds appropriated directly for broadband, other funding streams in the ARRA may present substantial opportunities to use stimulus money to further broadband initiatives, if efforts are effectively coordinated ahead of time. For example, ARRA funds allocated for health information technology projects and smart grid initiatives could be leveraged to support broadband deployment.

National Telecommunications and Information Administration: The NTIA was allocated $4.7 billion in total. The majority of the NTIA funds, $4.35 billion, will be distributed to states, political subdivisions of states, municipalities, non-profits or private companies through the Broadband Technology Opportunities Program. In addition to grants aimed at increasing access to broadband, at least $250 million of the NTIA funds are set aside for competitive grants for programs that encourage sustainable broadband adoption, while at least an additional $200 million in grants are set aside for expanding public computer center capacity. It is important to note that the bill sets a floor, not a ceiling, for programs that focus on broadband demand. Another $350 million will fund the Broadband Data Improvement Act to support broadband inventory mapping and community initiatives. For more specific information regarding initiatives covered under the Broadband Technology Opportunities Program click here.

State role: States will likely play an advisory role to the NTIA in the distribution of grants since they have specific and unique knowledge on residents needs, existing programs, and how broadband can be integrated into long-term state goals. Grass-roots groups and any applicant applying for ARRA broadband funding should contact their state legislator and make them aware of the application they are filing.

Another role that will be imperative for states to play, although not laid out specifically in the ARRA language, is that of watchdog. Since many of the federal grants may be going to private companies, non-profits, or other non-government entities, it is important that the state ensures that selected projects reach the intended populations and are implemented in the public interest.

Rural Utility Service Grants and Loans: The Rural Utility Service (RUS) will appropriate $2.5 billion in grants and loans. In order to receive a grant from the RUS, 75% of the area being served must be rural and without sufficient access to high-speed broadband to facilitate rural economic development. Priority will be given to applications for broadband systems that will allow end users to have a choice of more than one service provider, to projects servicing the highest proportion of rural residents, and to previous borrowers or current borrowers under Title II of the Rural Electrification Act of 1936. For more specific information regarding what programs are eligible to receive RUS grants and loans click here.

States Taking Action Will Further Reform: The ARRA's commitment to use broadband to create efficiencies throughout many different sectors of society underscores the importance of state broadband legislation. State legislators across the country are taking action to spur strategic implementation of broadband initiatives and increase broadband adoption. Moving these policies across multiple states helps reinforce the message that we need to eliminate the digital divide. With broad and decisive enough action, states can help lead the way to even bolder federal reform. A key goal is to use these initiatives as a means to generate support for increased investment in broadband and and as motivation to leverage new broadband technologies to improve our economy, implement environmentally friendly and energy-efficient policies, and increase health care, education and social opportunities.

Baller-Herbst Law Group,The American Recovery and Reinvestment Act of 2009, Opportunities for Federal Grants, Loans and Other Support for Broadband Projects

Free Press - Accessing the Current Digital Divide Brochure

Leadership Conference on Civil Rights – Solving the Persistent Problem of the Digital Divide
OECD - OECD High-speed Internet Portal Household Census Information 2007
Educause White Paper - A Blueprint for Big Broadband
National Governors Association - States Take Action to Expand Access to High-speed Internet Communication
Progressive States Network, Guide to Broadband Provisions in the American Recovery and Reinvestment Act

Free Press, A Roadmap for Stimulus Success

U.S. Census

State Broadband Strategy Councils

Despite the clear and well documented benefits of broadband, many regions are still unserved or underserved by broadband providers. In order to ensure that states remain competitive in the 21st century, state legislators are creating Broadband Strategy Councils that focus on increasing access to and adoption of affordable broadband. Such entities can help leverage broadband technology across various sectors, such as government, health care, energy management and education to create efficiencies, save money, increase transparency and provide better services and increased opportunities.

Thus far in 2009, numerous states have introduced or considered implementing some form of a Broadband Strategy Council. A few examples of initiatives taking place across the country are:

MD: H.B. 1121, authored by Delegate Hucker, establishes a broadband strategy council to focus on increasing access to and adoption of affordable broadband and outlines specific broadband data to be collected and mapped. It includes accountability metrics if a third-party contractor is hired to collect and map the broadband data.
RI: H.B. 5396, authored by Rep. Rice, creates a broadband strategy council to study and recommend the adoption of high-speed Internet services and technology throughout Rhode Island for the benefit of the state's citizens and employers. This bill emphasizes that digital inclusion initiatives should be established as long term components of a community's offerings to its citizens and an ever-present vehicle to help Rhode Island meet a variety of economic, health care, environmental and educational goals.
OR: H.B. 3158, authored by Rep. Smith, establishes an Oregon Broadband Advisory Council focused on encouraging and supporting the deployment of broadband telecommunications services and reducing barriers to broadband adoption, especially within unserved and underserved populations. The council is tasked with encouraging coordination between different organizations and sectors that can leverage broadband to their advantage, such as, state agencies, workforce development training programs, healthcare providers and educational institutions.
IN: H.B. 1621, sponsored by Rep. Pierce, creates an Indiana Broadband Deployment Council to develop a strategy for expanding the deployment and adoption of broadband services in Indiana. Among other things, the council was tasked with increasing access to broadband in underserved areas, promoting affordable broadband service throughout Indiana, initiating and supporting the development of broadband services and resources, including establishing technology literacy and digital inclusion programs and establishing low cost hardware and software purchasing programs.
TX: S.B. 640, sponsored by Senator Ellis, establishes an Authority and Cooperation regarding technology infrastructure.
AK: H.B. 107, sponsored by Rep. Guttenberg, establishes the state Internet Access Authority and the state Broadband Task Force.
CT: H.B. 6426 aims to improve broadband access and enlists a public-private partnership to implement a high-speed Internet deployment plan that will ensure all Connecticut residents and businesses access to affordable broadband service and will increase technological literacy.

Any legislation establishing a broadband strategy council should require the council to:

Engage in long-term planning and establish clear deployment goals and accountability metrics: Councils should develop a statewide strategic approach to broadband deployment, including integrating broadband build-out with long-term state goals and creating metrics for succcess.
Promote cooperation across diverse stakeholders: Councils should consist of diverse members representing various stakeholders, experts, government and agency leaders who are able to develop a "big picture" build-out strategy that provides increased access to affordable broadband and protects the public interest. Additionally, councils should provide a forum for public/private collaboration that allows states to work with privately owned providers to expand services in underserved and unserved areas.
Help spur demand: Councils should create increased affordable access to broadband and encourage private corporations to act in the public interest. Under the terms of Minneapolis, Minnesota wireless project, which many consider the most successful municipal high-speed Internet program to date, the city is functioning as an "anchor tenant", paying $1.25 million a year for the city's own use of the network. Since the city agreed to be the “anchor tenant,” U.S. Internet built the high-speed network with no public financing. Additionally, U.S. Internet is providing a comprehensive set of community benefits that surpass negotiations by other cities in the country, including a $500,000 initial payment and a commitment to dedicate at least 5% of its profits to create and maintain a “digital inclusion fund” that will be geared at promoting affordable Internet and hardware access and digital skills training.
Meet federal requirements for matching grant and other funding opportunities to expand funding for these projects.
Protect innovation by municipalities: For example, Illinois Senate Bill 2244, introduced in 2008, included a specific statement making it clear that "nothing in the deployment council enacting legislation should be construed to limit the ability of any municipality, county, or other unit of local government to undertake local high-speed Internet projects and related functions." As the Illinois legislation set out, councils should protect municipalities ability to undertake local broadband projects.

Across the board, states should be studying not only how to extend physical connections to broadband Internet but also how to assure that it is affordable, especially for working families suffering the most during the current economic downturn.

Final Report of the California High-speed Internet Task Force - State of Connectivity: Building Innovation Through High-speed Internet
Progressive States Network - Guiding Principles for Broadband Strategy Councils

State Digital Inclusion Campaigns

State broadband initiatives that focus on increasing affordable access to broadband only help address the supply side of the digital divide equation. To ensure that all citizens can take part in the digital age, especially as more government programs, jobs, education and health care institutions expand their use of advanced technology, states should implement Digital Inclusion Campaigns.

The Washington Model: During the 2008 legislative session Washington State, in large part thanks to the Communities Connect Network, took an aggressive step to increase digital literacy. The Washington State legislature allocated $500,000 to support Washington's Community Technology programs. Senate Bill 6438 created a statewide high-speed Internet development process and established the Community Technology Opportunity Program (CTOP) that will provide resources for capacity-building and grant-giving to Community Technology programs that provide hands-on technology access and training to residents. Additionally, the legislation called for the development a statewide web directory of Community Technology programs.

This legislative session Senator Kohl-Welles introduced Senate Bill 5916 to continue the community technology opportunity program. In addition, the bill aims to assist Washington’s broadband efforts by positioning the state to receive Federal stimulus dollars that will allow Washington to expand broadband access infrastructure. “This is about bettering our citizens’ lives. By eliminating the digital divide and promoting digital inclusion in underserved areas, particularly in rural parts of the state, we help to enhance education opportunities, increase access to high-paying jobs, health care, government and community economic development,” said Sen. Jeanne Kohl-Welles. Senate Bill 5916 was passed unanimously by the Washington State Senate and now moves to the House.

Investing Beyond Infrastructure: Digital inclusion programs look beyond physical infrastructure, and instead address adoption issues that are at the heart of the digital divide. Under the broad umbrella of digital inclusion falls educating the public on what broadband can do to improve their lives, providing digital skills training, increasing relevant content on the Internet, and providing access to hardware and software. State initiatives to increase digital inclusion and the everyday use of technology must address all three major causes for lack of broadband adoption.

Digital Empowerment: States need to educate the public on the benefits and opportunities provided by 21st century technologies. Many individuals without broadband access do not understand the benefits and practical applications of broadband and new technology. States need to facilitate discussions about, and publicize how, technology is tied to economic development, better health care, implementing environmentally friendly policies, better access to information and increased opportunity.
Affordable Access to Technology and Digital Training Programs: Individuals must be provided access to technology and digital skills training which will teach them how to utilize and reap the benefits of 21st century infrastructure. Any digital inclusion program should target underserved populations and must address both sides of the digital divide equation, access and adoption. The elements that help increase access to technology and digital skills are community technology centers, technology recycling programs, leveraging of state buying power and public/private partnerships.
Long-Term Sustainability: Any digital inclusion initiative must be tied to the overall goals of a state to ensure long term sustainability. Digital inclusion initiatives should be seen a means to help state meet a variety of economic, health care, environmental and educational goals.

Maria E. Wynne and Lane F. Cooper, A Road Map Toward Digital Inclusion: Digital Inclusion Imperatives Offer Municipalities New Social and Economic Opportunities
Progressive States Network- Guiding Principles for Digital Inclusion Policies
Progressive States Network- Increase Technology Literacy and Inclusion
San Francisco Digital Inclusion Strategy
Digital Inclusion Forum
Communities Connect Network

Conclusion

The ARRA marks a departure from previous policies that facilitated the U.S. decline in numerous global broadband rankings, and can be, if managed and supported correctly, the beginning of a new vision for the 21st century. This vision includes a commitment to expanding access to and increased utilization of broadband, by individuals, businesses, health care providers, government entities, education institutions and even the energy sector. In order to remain a global competitor and to stay true to the basic concepts of equality and opportunity upon which our country was founded, the federal government and states must commit to investing in digital infrastructure and ensuring that every individual can afford and utilize broadband.