Unpacking Approved BEAD Volume 2s: New York

BEAD
funding
Author

Michael Santorelli

Published

August 13, 2024

NTIA recently approved New York’s Initial Proposal Volume 2. The ACLP compared the final version with the draft submitted by the state to NTIA last fall. A redlined comparison is available here. The following changes were evident:

Low-Cost Option

The state has lowered the low-cost price-point from $65/month to $15/month. The price can only be increased once every 5 years.

The state also expanded the eligibility criteria to include those “eligible for or enrolled in senior citizen rent increase exemption; are eligible for or enrolled in disability rent increase exemption; or are recipients of an affordability benefit from a utility.”

The state will allow for a waiver to increase the price to no more than $65/month upon a showing that the lower price-point would “result in unreasonable or unsustainable financial impact.” If the waiver is received, the max price cannot change during the 10-year grant period.

Subgrantee Selection Process

Scoring – Fair Labor Standards

The state provided additional details about how it will award points across a variety of sub-categories. Eight (8) points will still be awarded for evidence of past compliance with relevant laws, while 22 points will be awarded for plans for future compliance as follows:

  • 4 points for use of a directly employed workforce, as opposed to a subcontracted workforce;
  • 2 points for using project labor agreements;
  • 4 points for use of local hire provisions;
  • 2 points for commitments to union neutrality;
  • 2 points for use of labor peace agreements;
  • 3 points for ensuring the use of an appropriately skilled workforce;
  • 3 points for ensuring the use of an appropriately credentialed workforce; and
  • 2 points for taking steps to prevent the misclassification of workers.

The state also detailed how it will award up to 30pts for new entrants without a labor record.

Scoring – Secondary Criteria

The state made adjustments to several of these categories, including:

  • Connecting CAI – the state clarified that points will be awarded to applicants that commit to connecting eligible CAI in the PA “with its own funds.”
  • Speed of Network for non-priority projects – the state will award points for each speed tier provided by the proposed network, i.e., 2pts for 100/100, an additional 3pts for 300/300, an additional 4pts for gig download, and an additional 5pts for symmetrical gig.

Use of Additional State Funds

The state added that, even though it will “contribute $50 million [in] State funding to increase the overall pool of funds available for the BEAD Program…the State does not plan to offer project-specific inducements by reducing match requirements or otherwise.”

Default on Existing Enforceable Commitments

The state added that, “If the default on an enforceable commitment occurs prior to a BEAD award, then the defaulting entity will not be eligible to apply for BEAD funding to serve the same area or any portion of the area that would have been served under the enforceable commitment.”