Arkansas Administrative Code › Agency 003 - DEPARTMENT OF COMMERCE › Division 19 - Arkansas Economic Development Commission › Rule 003.19.21-007 - Addendum Arkansas Rural Connect COVID-19 Rule

Current through Register Vol. 49, No. 6, June, 2024
Addendum to Arkansas Rural Connect Coronavirus
				Rule
EXECUTIVE SUMMARY
Purpose
The Arkansas Economic Development Commission and the Arkansas
				Broadband Office have promulgated an Addendum to the Arkansas Rural Connect
				(ARC) Coronavirus Rule to conform with the Interim Final Rule for the
				Coronavirus State and Local Fiscal Recovery Funds issued by the U.S. Treasury.
				Due to the urgent need for broadband for distance learning, telemedicine and
				the need for telework, necessitated by the COVID-19 pandemic, this addendum to
				the ARC Coronavirus Rule has been issued so that funds may be disbursed and to
				accelerate the continued deployment of broadband network infrastructure in
				rural Arkansas.
Background
The Arkansas Broadband Office promulgated an Addendum to the
				ARC Coronavirus under emergency rule procedures. This permanent addendum will
				go into effect after the emergency period expires. In 2020, AEDC issued the
				Arkansas Rural Connect Broadband Rule to implement the Arkansas Rural Connect
				Program. This Broadband Rule was promulgated prior to the issuance of State and
				Federal public health guidelines responding to the COVID-19 pandemic. The
				federal government instituted a major relief effort under the CARES Act. The
				State benefited from the CARES Act but still was in need. The federal
				government then passed the American Rescue Plan Act (ARPA). These funds allowed
				states to broaden and strengthen its broadband infrastructure in unserved or
				underserved areas. Federal guidance as it relates to dispensing ARPA funds for
				the expansion of broadband network infrastructure has resulted in the need to
				promulgate this addendum to conform the Arkansas Rural Connect Program.
Key points:
* ARPA funds must be used in unserved and underserved area of
				Arkansas.
* ARPA approved projects must be able to provide synchronous
				bandwidths of 100 mbps download and 100 mbps upload speed.
* Where impractical due to geographical, topographical or
				financial constraints upload speed can be between 20 mbps and 100 mbps.
* An internet service provider must submit a letter to Commerce
				detailing why the required speed cannot be obtained at 100mbps. Commerce will
				determine if the letter is approved for the requested bandwidth
				modification.
* Priority attention will be given to projects that contain
				detailed and aggressive times for completion and reasonable pricing schedules
				approved by the Mayor/County Judge.
* Guidance issued by the U.S. Treasury with the promulgation of
				its interim final rule indicates that only fiber optic infrastructure may be
				used to build out broadband networks using ARPA funds.
* The Broadband Office has requested clarification as to
				whether fixed wireless infrastructure may be used when funded through ARPA
				Funds.
Effective date
The rule is effective on November 29, 2021.
Addendum to Arkansas Rural Connect Coronavirus
				Rule
SECTION 1.
BACKGROUND
The Director of the Arkansas Economic Development Commission
				("Director") issues this Rule to respond to urgent, telecommunication needs in
				this State for communities impacted by the COVID-19 pandemic. On or about
				February 21, 2020, the Director issued the Arkansas Rural Connect Broadband
				Rule (hereafter, the "Broadband Rule") to implement the Arkansas Rural Connect
				Program (hereafter, "Arkansas Rural Connect," or "Arkansas Rural Connect
				Program," or "ARC"). This Broadband Rule was promulgated prior to the issuance
				of State and Federal public health guidelines responding to the COVID-19
				pandemic.
The COVID-19 pandemic has severely impacted the citizens of
				this State. COVID-19 has brought about an urgent and immediate need for
				broadband internet access. Broadband enables workers to telework, patients to
				use telemedicine services, K-12 and college students and unemployed workers in
				need of reskilling to participate in distance education, religious people to
				participate in online worship services, and all citizens to shop online,
				interact with friends through Skype and other video chat tools, and keep up
				with the latest news and public health guidelines.
The federal government has instituted a major relief effort
				under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The
				State benefited from the CARES Act but still was in need. The federal
				government then passed the American Rescue Plan Act (ARPA). These funds allowed
				states to broaden and strengthen its broadband infrastructure in unserved or
				underserved areas. All ARPA Fiscal Recovery Funds ("ARPA Funds") must be
				obligated by December 31, 2024. The period of performance will run until
				December 31, 2026.
The Arkansas Rural Connect program promotes broadband
				deployment in rural areas of Arkansas that lack meaningful and efficient
				broadband services. The ARC program and its purposes align with allowable uses
				of ARPA Funds.
Due to the urgent need for broadband for distance learning,
				telemedicine and the need for telework, necessitated by the COVID-19 pandemic,
				this addendum to the ARC Coronavirus Rule is being issued so that funds may be
				disbursed immediately and to accelerate the continued deployment of broadband
				network infrastructure in rural Arkansas, to the extent possible.
SECTION 2.
AUTHORITY
This Rule is authorized to be issued by the Director of the
				Arkansas Economic Development Commission ("AEDC") under Ark. Code Ann. §
									15-4-209(b)
				(5) which provides that AEDC may promulgate
				rules necessary to implement the programs and services offered by AEDC. On or
				about August 9, 2019, Governor Asa Hutchinson authorized a transfer of funding
				for the implementation and administration of the ARC Program to AEDC. Pursuant
				to Ark. Code Ann. §
									15-4-209(a)(1),
				AEDC is authorized to administer grants to assist with economic development in
				the state. The ARC Program is therefore authorized to administer ARC grants and
				to issue administrative rules under Ark. Code Ann. §
									15-4-209(b)
				(5) as a service offered by AEDC.
SECTION 3.
PURPOSE AND
			 QUALIFICATION FOR RECEIVING ARPA FUNDS
This purpose of this addendum is to conform the ARC Program
				with the Interim Final Rule for Coronavirus State and Local Fiscal Recovery
				Funds1 and any subsequently promulgated rules and
				guidance issued by the United States Department of Treasury (the "Federal
				Rules") whenever ARPA Funds are the source of funding for ARC grants. The ARC
				Broadband Rule and the ARC Coronavirus Rule will govern the terms of any grants
				issued using ARPA Funds except when the terms of the ARC Coronavirus Rule and
				ARC Broadband Rule conflict with the applicable Federal Rules, in which case
				the Federal Rules will control and be incorporated into the ARC program grant
				agreement with the ISP.
Under the Federal Rules, projects funded in whole or in part
				with ARPA Funds must be able to provide synchronous bandwidths of 100 mbps
				download and 100mbps upload. Where impractical due to geographical,
				topographical or financial constraints the upload speed can be between 20 mbps
				and a 100 mbps in such instances. The internet service provider ("ISP") must
				submit a letter detailing why the upload speeds cannot be obtained at 100 mbps
				and the Department of Commerce AEDC Broadband Office ("Commerce Broadband
				Office") will determine if the ISP letter is approved for the requested
				bandwidth modification. Those projects with an approved request for bandwidth
				modification must be scalable to 100 mbps upload speed.
Guidance issued by the U.S. Treasury in connection with the
				promulgation of its interim final rule indicates that a fiber optic or wireline
				infrastructure may be used to build out broadband networks using ARPA Funds.
				The Commerce Broadband Office has requested clarification from the U.S.
				Treasury as to whether fixed wireless infrastructure may be used when funded
				with ARPA Funds. In the absence of confirmation from U.S. Treasury that ARPA
				Funds may be used to deploy fixed wireless infrastructure, the Commerce
				Broadband Office will not approve any ARC Program applications which rely on
				fixed wireless infrastructure.
SECTION
			 4.
DEADLINES, UNSERVED AND UNDERSERVED AREAS
Broadband infrastructure builds, using ARPA funds, must be
				completed no later than December 3 i, 2023. The Commerce Broadband Office will
				determine the dates by which awarded projects shall be completed within these
				allowed deadlines. Priority attention will be given to projects that 1) contain
				detailed and aggressive time lines for completing the project and 2) provide
				confirmation that the Mayor or County judgc, as co-applicant for the project,
				have been provided proposed pricing for the broadband services covered by the
				project. ARPA funds must be used in unserved and underserved areas in Arkansas.
				For purposes of ARPA funds, unserved and underserved areas are rural
				incorporated and unincorporated cities or communities where residents lack
				access to a wireline connection capable of reliably delivering at least minimum
				speeds of 25mbps download and 3mbps upload.
SECTION 5.
MAPS
The Commerce Broadband Office, at its discretion, may request
				from the applicants maps and other information necessary to make informed
				decisions as to the proper unserved or underserved locations in Arkansas to
				expend funds. Applicants that accept funding under this Rule shall follow all
				the requirements under the ARC rules.
Again, each project deployment shall be completed by the date
				specified by the Broadband Office, but in any event, each project funded with
				ARPA funds shall be completed no later than December 31,2023.
SECTION 6.
EFFECTIVE
			 DATE
T his Rule is effective ten days upon filing of the approved
				final rule with the Arkansas Secretary of State.