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‘Big Move’

Neb. PSC Chair Cautions Senators on Changing Broadband Grants Lead

Nebraska senators debated shifting broadband responsibilities to the state’s department of transportation (DOT) from the Public Service Commission. Some senators at Tuesday's livestreamed hearing questioned the need to change who handles mapping and distributing federal support from NTIA’s broadband equity, access and deployment (BEAD) program. Nebraska PSC Chairman Dan Watermeier (R), officially testifying as neutral on the bill, cautioned that the BEAD program has strict deadlines the state must move quickly to meet. Any proposed transition may require NTIA approval, he said.

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The possible state office would take charge of BEAD grant duties under LB-683 with proposed amendments. The Nebraska PSC would continue to run the Nebraska Broadband Bridge Program, including state support and distribution of U.S. Treasury Capital Projects Fund support. The governor would decide who handles any future federal broadband support. The proposed office would take charge of creating and maintaining a state map, develop a broadband plan, coordinate state broadband efforts, advocate at the federal level and handle outreach and state and local collaboration.

Nebraska DOT has more resources to take on the broadband task, said Director Vicki Kramer. But some senators questioned if that’s a good enough reason to move work from the PSC. “This is a big move for us to make,” said Sen. Machaela Cavanaugh (D). She questioned whether efficiency should be the only reason for change. Also, Cavanaugh raised concerns that a broadband office under DOT would have less oversight than elected PSC commissioners. Sen. Wendy DeBoer (D) asked why not keep responsibility with the PSC -- if it can demonstrate it can do the job -- considering the commission already has experience awarding broadband grants. Sen. Tom Brandt (R) asked if changing agencies would make any difference since Nebraska will get BEAD funding either way.

Sen. John Fredrickson (D) raised concerns about finding someone to lead the proposed broadband office, a common challenge for states (see 2212230006): “This is such a niche expertise that's needed.” Kramer replied that Nebraska DOT is already talking with a few potential qualified applicants. Three workers assigned to BEAD at the commission would move to the department, she added. Chairperson Suzanne Geist (R) asked Kramer what she expects for DOT and the PSC’s relationship going forward. “The vision is a strong relationship,” said the transportation leader.

Just know the PSC stands here ready and willing to get broadband out" statewide, said Watermeier. Nebraska PSC staff is working hard on BEAD and “Nebraska will be leaving money on the table” if program deadlines aren’t met, the chairman warned. An outreach coordinator joined the commission Monday and the PSC will imminently sign a contract with a mapping vendor, the chairman said. NTIA probably would have to approve the proposed transition and it’s unknown how long that would take, said Watermeier: "We can't be territorial,” but it's critical the state moves quickly. The chairman agreed it’s important to have a cabinet-level official.

The Nebraska Rural Broadband Alliance supports having a leader who's “singularly dedicated” to broadband, said its attorney Sarah Meier of Rembolt Ludtke. Meier suggested moving broadband grant responsibility entirely to the new office to avoid duplication. Having two different agencies doing similar things “will create undue costs on the applicants,” she said. Other bill proponents included Ethos Connected, AARP Nebraska, League of Nebraska Municipalities and the Nebraska Farm Bureau.

"We believe delays will be inevitable” if there's a transition of grant responsibilities, said Nebraska Telecommunications Association President Tip O’Neill. A state broadband office could play a positive role heading up planning, coordination and outreach, he said. Allo Communications lobbyist Andrew Vinton warned that Nebraska DOT “may have difficulty ramping up staffing and expertise in time to distribute any coming federal broadband funds.” O’Neill and Vinton classified their testimony as neutral.