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California Emerging Technology Fund

American Recovery and Reinvestment Act of 2009 Review

Bill Purpose

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Preserve and create jobs and promote economic recovery.2.

Assist those most impacted by the recession.3.

Provide investments needed to increase economic efficiency by spurring technologicaladvances in science and health.4.

To invest in transportation, environmental protection, and other infrastructure that willprovide long-term economic benefits.5.

To stabilize State and local government budgets, in order to minimize and avoid reductionsin essential services and counterproductive state and local tax increases.

California Facts

California accounts for 4.4% of the country’s land area and contains 13% of the nation’s population.CETF estimates that California should receive between 10 and 15% of the grants, loans and loanguarantees awarded by the American Recovery and Reinvestment Act of 2009.

Bill Funding Opportunities

United States Department of Agriculture (USDA)Rural Community Facilities Program Account$130 million in small business loansRural Business$150 million Cooperative Service Rural Business Program AccountRural Utilities Services (RUS)$2.5 billion Distance Learning, Telemedicine and Broadband ProgramPriorities:

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Projects that deliver end users with a choice of more than one service provider (implies a“wholesale” arrangement – exactly one of CETF’s recommendations).

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Projects that provide service to the highest proportion of rural residents that do not haveaccess to broadband services.

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Project applications from borrowers or former borrowers.Limitations:

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No area of the project funded may receive funding to provide broadband service under theBroadband Technology Opportunities Program.

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75% of area to be served by a project shall be in a rural area without sufficient access tohigh-speed broadband service to facilitate rural economic development.

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No award deadline or state-level project award requirements are specified.

2Department of CommerceEconomic Development Administration$150 million Economic Development Assistance ProgramNational Telecommunications and Information Administration (NTIA)$4.7 billion Broadband Technology Opportunities Program (TOP) allocated as follows:

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$3.9 billion for broadband deployment.

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$200 million to expand public computer center capacity.

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$250 million for innovative programs to encourage sustainable adoption of broadband service.

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$350 million for a state-level broadband map (may be transferred to FCC), State BroadbandData and Development Grant Program.Goals:

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Provide access to broadband service to consumers residing in unserved areas.

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Provide improved access to broadband service to consumers residing in underserved areas.

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Provide broadband education, awareness, training, access, equipment and support to:

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Schools, libraries, medical and healthcare providers, community colleges and otherorganizations that facilitate greater broadband use by these organizations.

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Organizations that provide outreach, access, equipment and support services to facilitategreater use of broadband service by low-income, unemployed, ages and otherwisevulnerable populations.

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Job-creating strategic facilities located within state-designated economic zones.

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Improve access to, and use of, broadband service by public safety agencies.

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Stimulate the demand for broadband, economic growth and job creation.Priorities:

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No less than 1 grant in each State.

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Increase the affordability of, and subscribership to, service to the greatest population of users in the area.

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Provide the greatest broadband speed possible to the greatest population of the users in thearea.

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Enhance service for health care delivery, education or children to the greatest population of users in the area.Limitations:

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All awards are made before the end of fiscal year 2010.

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Federal share can’t exceed 80% of funding without approval by Assistant Secretary (a longlist of caveats exist).

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Applicants must abide by a non-discrimination and network interconnection policy (to bepublished by the Assistant Secretary) which must, at a minimum, meet the principlescontained in the FCC’s broadband policy statement (FCC 05-15, adopted August 5, 2005).Big changes since House Bill version:

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No reference to bandwidth tiers, current generation or next generation broadband.

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No references to wireless and wireline, simply “broadband”.

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“Open Access” removed and replaced with Assistant Secretary inter-connection (to bepublished) document that must meet or exceed FCC 2005 broadband principles.

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No defined split between rural and urban areas.

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