Successful grant applicants had to demonstrate their digital equity efforts to ensure long-term, sustainable service and affordable access for lower income households. Eligible projects include line extension and last mile services as well as large-scale regional infrastructure projects so long as those large-scale projects achieve last mile connections. Successful applicants also had to demonstrate that their project would include a long-term plan that would demonstrate sustainability beyond the initial investment to maintain, repair, and upgrade the network to ensure continued operation in the future in the absence of federal funding.
Grants ranged from less than $500,000 to almost $10 million – with the largest grant going to Windstream Pennsylvania, LLC, in Clarion County, in the amount of $9,792,155. Taking into account matching funds, Windstream’s project will inject over $20 million of broadband infrastructure development into Clarion County. While matching funds in the aggregate amounted to just under 50% of total project cost, individual projects’ matching funds varied, with many as low as 25%, to a high of 70% of project cost.
Approved projects are contingent on the successful execution of subgrantee agreements and any other necessary contractual arrangements between parties that will be involved in deploying the broadband infrastructure. Grantees must complete the projects by the end of 2026, consistent with federal guidance. It is anticipated that some projects will be completed by the end of 2024.
Grantees must maintain robust records, as the Authority retains the right to audit and request information about a particular project at any time during the project period. In issuing guidance for BIP, the Authority emphasized the importance of deploying high-quality infrastructure, avoiding costly delays, and promoting efficiency. Grantees also must certify that project expenses were incurred pursuant to the approved scope of work approved by the Authority.
Grantees must submit quarterly and annual progress reports to the Authority. Grantees should expect the Authority to maintain frequent contact with them to ensure that projects are moving forward in a timely and cost-effective manner. The Authority will withhold the final 10% of grant funds until the final project report has been submitted to and reviewed by the Authority to its satisfaction.
The robust program reporting requirements are necessary to provide the Authority with the information needed to meet its own accountability requirements. The Authority is required to prepare annually a report detailing the funded projects. Additionally, the accounts and books of the Authority are subject to examination and audit by the Auditor General.
With the significant amount of federal funding still available to the Authority, it has been increasing its staff in recent months to manage these programs. The Authority previously adopted in August 2023 a Five-Year Plan, “Internet for All,” to outline its goals and vision for the expenditure of these funds. We expect that additional grant opportunities will be announced in the near term as the Authority ramps up its plan for the expenditure of these funds.
Reprinted with permission from the May 9, 2024 edition of The Legal Intelligencer © 2024 ALM Media Properties, LLC. Further duplication without permission is prohibited. All rights reserved.