Broadband Office Name: California Department of Technology – Broadband and Digital Literacy Office. The California Public Utilities Commission (CPUC) is implementing the BEAD program.
BEAD Award Amount: $1.86 B
California Broadband Director: Scott Adams
Websites: https://cdt.ca.gov/broadband-and-digital-literacy-office/
California BEAD Program Tracker
| State | IP Vol 1 Approval | IP Vol 2 Approval | Challenge Process Submission Started | Challenge Process Submission Running | Challenge Process Initial Submissions Closed | Challenge Process Final Determination Phase Completed | 1-Year Subgrantee Selection Process |
|---|---|---|---|---|---|---|---|
| California | Yes | No | Yes | Yes | No | No | N/A |
California BEAD Program Information
Key Updates
The California Public Utilities Commission’s (CPUC) Challenge Process will be held from July 8th to August 6th.
Followed by an evidentiary review from August 7th to 20th, the rebuttal phase from August 21st to September 19th, and the final determination scheduled for September 20th to October 19th.
CPUC has recently released the Publication of Eligible Locations map, a consumer challenge website, and datasets containing information on unserved, underserved locations, and Community Anchor Institutions (CAIs). CPUC is waiting for approval from the NTIA on its Initial Proposal Volume 2.
California BEAD Program Plans & Maps
California BEAD Program Initial Proposal Volume 2: Overview
*Information is subject to change. California is awaiting official approval of Initial Proposal Volume 2 from the NTIA.
BEAD Long-Term Objectives
The California Public Utilities Commission (CPUC) has established the following objectives:
- Data-Driven Strategy: Establish a data-driven strategy to map and assess unserved and underserved locations in California to target resources effectively and close deployment gaps.
- Leveraging Funding: Utilize all available federal and state sources of broadband funding, including the California Advanced Services Fund (CASF) and programs under the California Senate Bill, to achieve deployment goals.
- Holistic Approach: Create a comprehensive approach for California’s broadband infrastructure funding programs to encourage projects that will advance equal access to affordable, high-speed broadband. This includes ensuring access to devices, training, and skills necessary for the digital inclusion of all Californians.
- Technical Assistance: Provide technical assistance and support to local and Tribal governments, schools, community-based organizations, anchor institutions, and other carriers serving at-risk communities to help them prepare for and leverage federal and state funding opportunities related to broadband.
California BEAD Program Project Area Design
The California Public Utilities Commission (CPUC) will prioritize projects to serve unserved and underserved locations in high-poverty and persistent poverty counties. Project Area Units (PAUs) will be no smaller than census block groups, with special consideration given to the boundaries of Tribal lands. Applicants will be required to design Project Areas that include a minimum threshold of high-cost or high-need PAUs, as determined by the CPUC using a designation of high-cost and high-need PAUs.
California BEAD Program Extremely High Cost Threshold
CPUC will determine the Extremely High Cost Per Location Threshold (EHC) once all grant applications have been received. The EHC will be developed using the proposed grant funding amounts in the BEAD applications received, as well as data collected by the CPUC from other grant programs, such as the CPUC’s Federal Funding Account program. The CPUC’s cost model and other relevant data may also inform the EHC, particularly for areas that do not receive grant applications. Additionally, the EHC may be adjusted during the Negotiation Phase based on feedback and outcomes from the negotiation process.
BEAD Deployment Subgrantee Selection
CPUC is asking for the following preregistration evidence from subgrantees and compliance with: Financial capability, managerial capability, operational capability, technical capability, ownership info, public funding info, compliance with laws, cybersecurity/supply chain compliance, and BABA/EHP/NEPA/NHPA compliance.
Primary Scoring Criteria for Priority Broadband Projects
- 40 pts – Affordability
- 20 pts – Labor Standards
- 15 pts – Minimal BEAD Outlay
Secondary Scoring Criteria
- 5 pts – Speed to Deployment
- 10 pts – Equity
- 10 pts – Resilience
Primary Scoring Criteria for Non-Priority Broadband Projects
- 40 pts – Affordability
- 20 pts – Labor Standards
- 15 pts – Minimal BEAD Outlay
Secondary Scoring Criteria
- 4 pts – Technical Capability
- 1 pt – Speed to Deployment
- 10 pts – Equity
- 10 pts – Resilience
BEAD Non-Deployment Subgrantee Selection
The CPUC does not anticipate supporting non-deployment eligible activities with BEAD program funds. However, in the event that funds are available, the following activities may be considered:
- User training (cybersecurity, privacy, etc.)
- Remote learning or telehealth
- Digital literacy
- Computer science education
- Implementation of the Digital Equity Plan
- Broadband technical support
- Multi-lingual outreach
- Prisoner education
- Digital navigators
- Direct subsidies toward broadband subscriptions
- Costs associated with stakeholder engagement
- Other allowable costs necessary for carrying out the programmatic activities of an award
BEAD Eligible Entity Implementation
The CPUC plans to implement key grant activities without issuing a subgrant, including:
- General administration of the BEAD award
- Oversight of BEAD subgrant applications and issuance
- Implementing the BEAD challenge process
- Managing the process for subgrantee applications and issuance
- Obtaining software to manage both the challenge and subgrantee application processes
- Overseeing subgrantee compliance
BEAD Local, Tribe, and Regional Broadband Planning Process
The California Department of Technology (CDT) is responsible for preparing the State’s Digital Equity Plan (SDEP). The CPUC partnered with CDT to jointly conduct 17 Broadband for All, Digital Equity, and BEAD Planning Regional-Local Workshops in communities across California. These events were attended by more than 2,000 community members, local officials, and interested parties, providing a forum for attendees to learn about planning for their communities, access programs to create digital equity, submit feedback on how the State’s efforts to close the digital divide could be improved, and connect with members of their communities.
Additionally, the CPUC conducted three regional Tribal consultations at Tribal locations in Northern, Central, and Southern California. CPUC also evaluated opportunities to partner with recommended entities, including community-based organizations, to continue engaging covered populations and historically underrepresented communities in the planning process through community partners that have built trust with key populations in underrepresented communities.
Furthermore, the CPUC has participated in quarterly Statewide Planning Groups, attending meetings of the Outcome Area Working Group, and engaging with CDT to support the solicitation of input for the State Digital Equity Survey and Digital Equity Ecosystem Mapping (DEEM) Tool.
BEAD Labor Standards & Protection
CPUC requires all BEAD subgrantees to submit the following information:
A record of past compliance with federal/employment laws:
- Must address info on deployment projects within the last 3 years.
- Certification form from an Officer/Director level employee of past compliance.
- Written confirmation that subgrantee has disclosed any violations from contractors within the last 3 years.
- Discussion of workforce plan
Plans for ensuring compliance with federal/employment laws:
- How subgrantee will ensure compliance in its labor/employment practices.
- Info on applicable wage scales, wage, and overtime practices for each class of employee expected to be involved in physical construction of the network.
- How subgrantee will ensure implementation of workplace safety committees.
- Comply with the Prevailing Wages Act.
- Other items as outlined in the BEAD NOFO.
BEAD Minority Business Enterprises / Women’s Business Enterprises / Labor Surplus Area Firms Inclusion
MBEs account for 46% of businesses in California, contributing 2.56 million jobs and $192.8 billion to the state’s economy. WBEs account for 39% of all companies and provide millions of jobs and billions of dollars to the state. According to the Employment Development Department’s 2022 report, there are approximately 1.2 million small businesses in California.
The California Office of Small Business Advocate (CalOSBA) offers grant programs, one-on-one mentoring, a network of more than 80 offices across California, business strategy resources, and information distribution about government programs, grants, and other opportunities for small businesses.
The CPUC runs a Supplier Diversity Program that provides diverse businesses, including MBEs and WBEs, with certifications that qualify them for resources and training. The program monitors diversity in procurement and maintains a publicly available interactive list of certified MWBEs and other diverse businesses.
The CPUC is committed to promoting diversity and inclusion by encouraging the utilization of MBEs, WBEs, and LSAFs whenever possible through the following measures:
- Place qualified small and minority businesses and women’s businesses on solicitation lists.
- Ensure these businesses are solicited when they are potential sources.
- Divide total requirements into smaller tasks to permit maximum participation by small and minority businesses, and women’s business enterprises.
- Establish delivery schedules that encourage participation by small and minority businesses, and women’s business enterprises.
- Use the services and assistance of organizations such as the California Small Business Administration and the Small/Minority Business Center with the Department of Administrative Services.
- Require subgrantees to take these affirmative steps as they relate to subcontractors, including:
- Reporting requirements regarding supplier diversity.
- Providing subgrantees opportunities to connect with MBEs, WBEs, and LSAFs.
- Demonstrating diversity in suppliers.
- A formal commitment from subgrantees to support supplier diversity.
BEAD Cost & Barrier Reduction
1. Promoting the use of existing infrastructure.
2. Promoting and adapting dig-once policies.
3. Streamlining permitting processes.
4. Streamlining cost-effective access to poles, conduits, and easements.
5. Streamlining rights of way, including the imposition of reasonable access requirements.
BEAD Low-Cost Broadband Service Option
In California, low-income individuals are 14% less likely than higher-income individuals to have a home internet subscription of any kind, and 13% of Californians without internet cite the inability to afford it as the reason.
Key Initiatives and Partnerships:
- The CPUC, CDT, CETF, and other Broadband Council members are tracking enrollment in the Affordable Connectivity Program (ACP) through the Get Connected CA! initiative.
- CDT, CETF, and other local entities were among the 15 recipients of a portion of $6 million in FCC ACP outreach grants.
- EducationSuperHighway partnered with the San Francisco Mayor’s Office of Housing & Community Development and over two dozen community organizations to launch Connect SF in 2023, an ACP enrollment initiative.
Affordability Benchmarks and Programs:
- The CPUC incorporates affordability benchmarks for high-speed services through existing state grant programs it administers, including the California Advanced Services Fund (CASF) and Federal Funding Account (FFA).
- Californians can apply for the California Lifeline Program, which provides a maximum monthly subsidy of $17.50 for broadband services. This program works with the federal Lifeline program, which provides up to $9.25.
Subgrantee Requirements:
- Must offer service options available to all households meeting the eligibility requirements of the federal ACP.
- Service cost must be $30 per month or less ($75 per month or less on Tribal lands), with an annual inflation adjustment based on the Producer Price Index for the State of California.
- Must be available to households with income equal to or below 200% of the federal poverty line.
- Must allow the end user to apply ACP benefits.
- Must provide standard speeds of service without data caps, surcharges, or usage-based throttling.
- Must allow subscribers to upgrade at no cost.
- Must not charge a fee for installation or setup.
- Must provide a free modem or router.
- Must not require a minimum term of service.
BEAD Middle-Class Affordability
According to data from the U.S. Census Bureau, the median household income in California was $84,097 in 2021. Around 3% of Californians without internet services cite that it is not worth the cost.
The CPUC plans to manage middle-class affordability within the context of the BEAD program by addressing the following areas of risk:
- Small, local providers proposing low requested BEAD support but setting high subscription costs.
- Providers shifting drop and installation costs to consumers to recover capital costs.
- Providers refusing to provide service to expensive locations.
- Differential pricing between urban and new project areas.
