Spellman has served in senior leadership roles at the NTIA since April 2021, or with regard to BEAD's timeline, seven months before it was signed into law in the Infrastructure Investment and Jobs Act. "I've been working for the last four years, even when it was potential legislation in Congress," she said. "I'm so excited to finally be at the point where we're going to have shovels in the ground as early as next year."
During the Government Affairs panel presentation, made up of PCCA government affairs reps Ben Brubeck and Jaime Steve, Fiber Broadband Association President and CEO Gary Bolton, PCCA Government Affairs Committee Chairman John Fluharty, and PCCA CEO Tim Wagner, the industry leaders seized the opportunity to ask questions firsthand to someone "behind the scenes" with BEAD.
Following the change in White House and congressional leadership in January, PCCA members and state broadband offices awaited further direction from Commerce Secretary Howard Lutnick regarding the fate of the NTIA’s BEAD program. On June 6, Lutnick announced the Trump administration’s commitment to connecting rural and underserved Americans with broadband via $42.5 billion in federal grants to fund state broadband office plans. However, Lutnick’s BEAD 2.0 made changes to the program, including revisions to costly labor and permitting rules pushed by the Biden administration. It also added a new Benefit of the Bargain round to the state broadband office’s application and approval process. Under his leadership, grantees received a new directive: reduce costs and go tech-neutral.
"That is Secretary Lutnick's phrase basically saying, 'trying to get the most for the taxpayer dollar.' We wanted our service providers, or likely sub grantees, to go back and sharpen their pencils and reduce costs of the program," Spellman explained.
Spellman restated the agency's goal of connecting America, noting that despite additional requirements and delays to implement new policy in BEAD 2.0, the administration remains committed to reducing red tape, which should expedite the rollout and construction process in the long run. She certainly echoed the same level of excitement as the room about getting BEAD going but remained hesitant to give any concrete dates. Spellman did note that she is confident that we're going to get money to the states this year and projects will break ground next year, but followed with "I really can't make promises, but I know we are really close to being able to start making some announcements about giving the green light to state proposals."
One of PCCA's biggest concerns surrounding BEAD 2.0 was its reduced focus on fiber by including more unlicensed fixed wireless providers. Instead, states were now encouraged to pursue the most cost-effective options and technology, even if it meant a reduction in the long-term benefits of fiber investment. The new proposals reflect this, but until they are finalized, it will be difficult to gauge exactly how much fiber focus has been lost. "So we're too early to tell. We only have about 36 states in, but we're seeing a broad mix of choices. That was a big push of the BEAD restructuring policy notice," Spellman said. However, since then, more proposals have been submitted, and while fiber remains the states' leading choice, its share of the market has been significantly reduced.
FBA's Bolton asked if shifting the focus away from fiber would reduce the overall effectiveness of the program, especially given the country's rapid adoption of AI technologies. "We are at the moment where everything is going to change forever," Bolton said. He cited a study that found that 75 percent of AI users are on fiber, and that it is the most functionally effective option given the rapidly changing environment. In response, Spellman reiterated that Lutnick's "primary goals are technology neutral and the benefit of the bargain, so making the most of taxpayer dollars. When it comes down to it, NTIA has been trusted with taxpayer dollars to spend. There's a world where we need to be smart about the investments we are making."
PCCA’s Brubeck asked about permitting, one of the industry's biggest barriers to construction. There have been numerous recent actions to improve the process, such as reforms to NEPA policies, but state-specific issues, like improving right-of-way standards, have not yet been extended to the nationwide BEAD program.
Spellman noted that the NTIA has tried to address some of these hurdles through the recent launch of its Permitting and Environmental Mapping Tool (learn more at https://www.ntia.gov/press-release/2024/ntia-launches-permitting-and-environmental-mapping-tool), a centralized resource that overlays mapping data from the Federal Emergency Management Administration, Environmental Protection Agency, U.S. Fish and Wildlife, Army Corps of Engineers, National Park Service, National Oceanic and Atmospheric Administration, U.S. Forest Service, Bureau of Indian Affairs, and other federal sources. For contractors, the tool identifies area-specific permitting requirements, which could mean fewer back-and-forth corrections on the BEAD 2.0 proposals.
Brubeck asked Spellman what about BEAD keeps her up at night, and she responded: "Between the supply chain issues we talked about, workforce being available, readiness, permitting at the federal level or the state level, any one of these things can derail a project. My biggest nightmare is a confluence of all of those being true at the same time," she said. "I think every state and every project is going to have its own challenges in those areas, but I think the most important thing that we do, and the state broadband offices, and the ISPs and all of their partners, including all of you, too, is communicate early. Raise the flags up early when you're starting to encounter some of these issues, so that people can be aware."
Before leaving, Spellman left PCCA members with the following message: "You guys are really where the rubber hits the road. I'm really excited that you invited us to come and talk to you all, and I'm really excited to say that we are really hell bent on getting the money out the door to you guys, and putting shovels in the ground. I just thank you in advance for your partnership and your patience, and let's make this dream a reality."
