With All Funds Obligated, NTIA Takes Additional Steps to Accelerate BEAD Construction

As of last week, the federal government has obligated all $42.45 billion in BEAD funding to states and territories (the “Eligible Entities”). This means that, subject to the terms and conditions of their awards, Eligible Entities can access their BEAD allocation to connect every resident to affordable, reliable high-speed Internet service. With all 56 Eligible Entities having now reached this critical milestone, we know that grantees are eager to begin deployment of new high-speed Internet networks.

That’s why today, NTIA is accelerating construction to households across the country by streamlining the BEAD Final Proposal process and providing resources that will allow states, territories, and service providers to put shovels in the ground more quickly. With these steps, states, territories, and providers can fast-track the important work of connecting unserved and underserved Americans.  

In November, NTIA announced that all 56 states and territories have received approval of their BEAD Initial Proposals.  States are now completing their challenge processes and selecting the service providers who will build BEAD-funded networks to unserved and underserved locations. When that process is completed, they will submit their Final Proposal, which details the results of that process. To date, Louisiana, Delaware, and Nevada have completed both processes. 

Today, NTIA released two documents to streamline the Final Proposal and accelerate BEAD construction. 

I. Streamlined Final Proposal Guidance

• Streamlined more than 40% of questions to save states and territories critical time to focus on implementation.
• Removed duplicative waiting period after the state or territory’s subgrantee review meeting, allowing states to immediately post their proposals for public comment.
• Gave states flexibility to move through the public comment period more quickly.

II. Accelerating Construction of BEAD Projects

NTIA’s guidance document identifies actionable steps states, territories, and service providers can take to accelerate the construction of BEAD projects.

Actions by States and Territories:

• Negotiation of service provider agreements: states and territories are encouraged to post draft service provider agreements prior to the start of subgrantee selection so that potential subgrantees can better understand contractual obligations.
  • In addition, states and territories may begin negotiating subgrantee agreements with provisional subgrantees immediately upon selection.
• Environmental Review: As joint lead agencies under the National Environmental Policy Act (NEPA), states and territories may have service providers complete environmental studies and prepare NEPA documents before NTIA approves their Final Proposal. States and territories are encouraged to create capacity to meet their NEPA joint lead agency responsibilities, communicate NEPA requirements to service providers, and begin environmental analyses immediately upon completion of subgrantee selection.

Actions by Service Providers

NTIA’s guidance identifies the following actions service providers can take to accelerate network construction, if approved by the state:

• Ordering Equipment and Materials: Provisional subgrantees may place orders for equipment and materials necessary to deploy broadband infrastructure.
• Negotiation for Rights of Way and Pole Attachment: Provisional subgrantees may negotiate and sign agreements for rights of way and pole attachments.
• Environmental Review: Subgrantees may apply for permits from federal, state, and local agencies and may initiate environmental analysis and prepare documentation for NEPA review.

NTIA reminds provisionally selected subgrantees that Section 200.458 of Title 2 of the Code of Federal Regulations describes the circumstances under which pre-subgrant costs are allowable. Provisionally selected subgrantees should consult 2 CFR 200.458 if they plan to incur pre-subgrant costs, including pre-subgrant costs associated with equipment and materials, right of way and pole attachments, and environmental review, and in all cases, pre-subgrant costs are incurred at the risk of the subgrantee.