PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Communications Division RESOLUTION T- 17575 Broadband, Video and Market Branch August 24, 2017 R E S O L U T I O N Resolution T-17575 Implementation of changes in the California Advanced Services Fund program enacted by Senate Bill 745 __________________________________________________________________ I. SUMMARY This Resolution adopts modified rules for the California Advanced Services Fund (CASF) pursuant to Senate Bill (SB) 745, now codified as Public Utilities Code § 281, et seq. SB 745 modified the eligibility requirements for Broadband Public Housing Account (BPHA) grants to only publicly supported communities (PSCs) that are “unserved”. SB 745 also extended the date by which remaining funds from the BPHA shall be transferred back to other CASF Accounts from December 31, 2016 to December 31, 2020. In addition, SB 745 changed eligibility requirements for the CASF Rural and Urban Regional Broadband Consortia Account (Consortia Account) and makes modifications to the CASF program reporting requirements. II. BACKGROUND In Decision (D.) 1412039, the Commission adopted the application requirements and guidelines for the CASF BPHA Program (hereafter, BPHA Application Requirements and Guidelines). In Decision (D.) 11-06-038, the Commission adopted rules pertaining to the CASF Consortia Account (hereafter, Consortia Eligibility and Guidelines). For the purposes of this Resolution these rules will be collectively referred to as the “CASF Rules.” On August 30, 2016, the Legislature passed SB 745, which amended Public Utilities Code sections 281 and 914.7, the statutes governing the CASF Program. The Governor signed SB 745 into law on September 27, 2016 and it became effective on January 1, 2017.
CCTA submitted comments pertinent to the modifications made to the BPHA Application Requirements and Guidelines. Specifically, CCTA’s comments focused on SB 745’s requirement to award grants from the BPHA to “unserved” housing developments, and proposed BPHA rule changes reflected in Appendix A. In response to CCTA’s comments regarding the definition of “unserved,” we find that the addition of the term “occupant” is unnecessary to implement the statute. If Staff determines that a unit has access to broadband Internet using existing facilities, then that unit would not be considered “unserved.” Staff has accordingly modified the rule. V. COMMENTS ON THE DRAFT RESOLUTION In compliance with Pub. Util Code, § 311(g), on July 25, 2017 the CD emailed a notice letter to all parties of record in R. 12-10-012, R. 10-12-008 and the CASF distribution list of the availability of the draft of this Resolution for public comments at the Commission's web site . This letter also informed parties that the final resolution adopted by the Commission will be posted and available at the same web site. The Non-Profit Housing Association of Northern California (NPH), the California Emerging Technology Fund (CETF) and the Central Sierra Connect Broadband Consortium or Central Sierra Connect (CSC) submitted timely comments on August 14, 2017. California Cable & Telecommunications Association (CCTA) submitted timely reply comments on August 21, 2017. The comments and reply comments are discussed below. Opening Comments NPH and CETF both stated that they appreciate the work of the Commission in its implementation of the BPHA and would prefer that any future changes to the program be based on the previous approach. Both parties stated that the changes made by SB 745 will block most PSCs from applying for BPHA funds. In comments, NPH and CETF further stated that SB 745 “is silent on the most important policy issue, which is that residents in publicly-subsidized housing benefit greatly from being online” and “there should be a quality conversation about how best to get their residents online.”