HB 947 — The Growing Rural Economies with Access to Technology (G.R.E.A.T.) Broadband Expansion Act.

NoA countymaycounty receiveshall moreuse thanunrestricted fourgeneral millionfunds dollarsor ($4,000,000)federal infunds aggregatefor fundingits fromportion of the CABtotal Fundestimated inproject anycosts. single fiscal year.

(e)No Notwithstandingsingle the project costshall responsibilityreceive allocationsan inamount subsectiongreater (d)than oftwo thismillion section,dollars for($2,000,000) a county receiving from the federalCAB governmentFund, lessand thanno ancounty aggregatemay ofreceive eightmore than five million dollars ($8,000,000)($5,000,000) in federalaggregate Americanfunding Rescuefrom Planthe ActCAB (P.L.Fund in any single fiscal year.

117-2)(e) funds,Notwithstanding athe broadbandproject serviceproviderselectedcost responsibility allocations in subsection (d) of this section, for aprojecta shallcounty providenotreceiving lessthanfrom fifteenthe percentfederal (15%)government Pageless 2than Houseeight Billmillion 947-Seconddollars Edition($8,000,000) Generalin Assemblyfederal Offunds, Northa Carolinabroadband Sessionservice 2021provider selected for a project shall be required to provide at least thirtypercent (30%) of the total estimated project cost.

IfThe afollowing broadbandcost serviceresponsibility providerallocations providesfor morecounties thanand fifteen percent (15%) of the total estimated project cost, the State andapply: county cost responsibilities shall be equally apportioned.

TheDirect followingFederal costFunds responsibilityReceived allocationsCounty Responsibility State Responsibility Up to $2,000,000 10% 60% $2,000,000, up to $2,750,000 15% 55% $2,750,000, up to $3,250,000 20% 50% $3,250,000, up to $3,750,000 25% 45% (f) A broadband service provider selected for countiesa meetingproject under this section shall enter into an agreement with the requirementsOffice ofthat thisshall subsectioninclude the project description, time lines, benchmarks, proposed broadband speeds, and any other information and documentation the StateOffice apply:deems necessary.

DirectUpon Federalexecution Fundsof Receivedan Countyagreement, Responsibilitythe Statecounty Responsibilityshall $250,000,provide upits toportion $4,000,000of 5%,the minimumtotal Upestimated toproject 80%costs $4,000,000, up to $8,000,000the 10%,Office minimum Up to 75%be (f)combined Awith broadbandCAB serviceFunds providerawarded selected for a project under this section shall enter into an agreement with the Office that shall include the project description, time lines, benchmarks, proposed broadband speeds, and anyplaced otherin informationa andseparate documentationproject theaccount. Office deems necessary.

AllThe proposedOffice broadbandshall speedsprovide mustproject meetoversight orand, exceedupon completion of established benchmarks in the federalproject guidelinesagreement, forthe useOffice ofshall Americandisburse Rescuefunds Planfrom Actthe (P.L.project account to the broadband service provider." PART II.

117-2)EXPANSION funds.OF G.R.E.A.T.

UponPROGRAM executionFOR ofFIXED anWIRELESS agreement,AND theSATELLITE countyshallBROADBAND provideGRANTS itsSECTION portion2.1. of the total estimated project costs to the Office to be combined with CAB Funds awarded for the project and placed in a separate project account.

TheArticle Office15 shallof provideChapter project143B oversight and, upon completion of established benchmarks in the projectGeneral agreement,Statutes theis Officeamended shallby disburseadding fundsa fromnew thesection project account to theread: broadband service provider.

The"§ forfeiture143B-1373.1. provisions in G.S.

143B-1373(l) shall apply to agreements entered into under this section." PART II.

AMERICANprogram RESCUEfixed PLANwireless ACTand FUNDsatellite ADMINISTRATIONbroadband SECTIONgrants. 2.1.

FromPage the2 fundsHouse appropriatedBill in947-First PartEdition IVGeneral ofAssembly thisOf act,North andCarolina inSession accordance2021 with(a) applicableThe federalfollowing guidelines,definitions theapply Departmentin ofthis Informationsection: Technology shall administer broadband infrastructure grants through the Growing Rural Economies with Access to Technology grant program.

Grant(1) applicationsBroadband shallservice. be submitted and grant funds shall be awarded pursuant to G.S.

143B-1373,– Internet access service provided by low-orbit geostationary satellites or fixed wireless networks with (i) a latency of 500 milliseconds or less and (ii) transmission speeds that are equal to or greater than the exceptionrequirements for the minimum performance tier, as provided by the Federal Communications Commission in Paragraph 39 of the following:report and order adopted January 30, 2020, and released February 7, 2020.

(1)(2) TheEquipment. definition of "eligible economically distressed county" in G.S.

143B-1373(a)– shallThe meanantenna and any necessary hardware provided by a countybroadband designatedservice asprovider to a developmentsubscriber tierthat oneenables orthe tiersubscriber twoto area,connect asto definedthe inbroadband G.S.service.

143B-437.08,The orterm adoes ruralnot censusinclude tract,a asmodem. defined in G.S.

143B-472.127(a)(2),(3) locatedFixed inwireless anyprovider. other county.

For–Abroadband theserviceproviderthat purposesprovides ofinternet thisaccess subdivision,to thea tiersubscriber designationvia thatfixed isantenna inthat effectreceives as of the beginning of a fiscalradio yearlink shallfrom bethe appliedprovider's fornetwork allto grantsthe awardedsubscriber. for that fiscal year.

With(4) theGrantee. exception of funds expended under this section or under G.S.

143B-1373.1,– aA countybroadband provider that has utilizedbeen federalawarded fundinga forgrant broadbandpursuant infrastructureto onthis orsection. after May 1, 2021, shall be ineligible.

(2)(5) TheOffice. definition of "eligible project" in G.S.

143B-1373(a)– shallThe beBroadband aInfrastructure discreteOffice and specific project located in anthe unservedDepartment economicallyof distressedInformation areaTechnology. seeking to provide broadband service to homes, businesses, and community anchor points not currently served.

Eligible(6) projectsSatellite do not include middle mile, backhaul, and other similar projects not directed at broadband service-to-endprovider. users.

If– aA contiguousbroadband projectservice areaprovider crossesthat fromprovides oneinternet eligibleaccess countydirectly into one or more eligible adjacent counties, for the purposes of this section, the project shall be deemed to beconsumers locatedvia insatellite thetechnology. county where the greatest number of unserved households are proposed to be served.

(3)(7) TheSecretary. financial contribution restrictions for partnerships in G.S.

143B-1373(a)(11a)– areThe removed.Secretary of the Department of Information Technology.

(4)(8) TheUnserved definitionhousehold. of "unserved area" in G.S.

143B-1373(a)– shallA behousehold alocated designatedin geographicthis areaState that isdoes presentlynot withouthave access to broadband service,service asfrom defineda inwireline G.S.or wireless service provider.

143B-1373(a),A orhousehold wherethat internetis accessincluded servicein doesan notarea meetwhere a grant from the definitionGrowing ofRural broadbandEconomies service.with Access to Technology (G.R.E.A.T.) program pursuant to G.S.

Areas143B-1373has where a private provider has been designatedawardedis tonot receiveeligibleforagrant fundsunderthis throughsection. other State- or federally funded programs designed specifically for broadband deployment shall be considered served if House Bill 947-Second Edition Page 3 General Assembly Of North Carolina Session 2021 such funding is intended to result in construction of broadband in the area within 18 months or for the duration of the federal funding program for that area or if the funding recipient is otherwise in good standing with the funding agency's regulations governing the funding program.

(5)(b) TheApplications provisionsfor ofgrants G.S.will be submitted at times designated by and on forms prescribed by the Secretary.

143B-1373(c)Notwithstanding areany replacedother withprovision of law, if the following:Secretary deems some of the information in an application to contain proprietary information, the Secretary may provide that such information is not a public record, as that term is defined in G.S.

A132-1, privatesubject providerto receivingpublic Staterecords or federalother fundslaws torequiring deploythe broadbanddisclosure serviceof in unserved areas may qualify such areainformation forand protectionhave bythat submittingportion a listing of the censusapplication blocks,redacted. or portions thereof, comprising the State- or federally funded project areas in a manner prescribed by the Office.

TheAn Officeapplication shall onlyinclude, utilizeat thisa dataminimum, tothe updatefollowing mapsinformation: of census blocks to reflect these census blocks, or portions thereof, as being served.

Failure(1) onThe theidentity part of a provider to submit the listingapplicant. of census blocks by the cutoff date shall result in those areas being eligible for inclusion under the G.R.E.A.T.

grant(2) programThe duringspecific subsequentaddress programof years.the subscriber.

The(3) OfficeA shalldescription useof the censusservices blockprovided, dataincluding providedthe onlyupstream forand mappingdownstream ofbroadband unservedspeeds areas.delivered, latency metrics, and any applicable data caps.

AAny projectapplicant areaproposing shalla remaindata protectedcap forbelow a150 periodGigabytes of 18usage monthsper frommonth shall also provide justification to the submissionsatisfaction of the listingOffice informationthat requiredthe underproposed thiscap subdivision;is in the public interest and consistent with industry standards.

provided,(4) however,The acost privateto providerbe thatcharged hasto receivedthe protectionunserved household for athe projectequipment areaneeded shallto submitconnect writtento documentation by April 30 of the year following the program year that broadband deploymentservice hasfor begun, been completed, or is otherwise in good standing, in the censusnext blocks,two oryears. portions thereof, that have been deemed ineligible by the Office under this subsection.

Upon(5) submissionEvidence of documentationa satisfactorycontract towith the Office,subscriber, aincluding protectedthe projectamount areacharged shallfor remainthe protectedequipment untiland projectthe completion.installation of the equipment, necessary for providing broadband service to the subscriber.

A(6) projectThe areaterms whereand aconditions privateimposed providerupon hasthe forfeitedsubscriber, orincluding otherwiserestrictions defaulted on anuse agreementand inpossession connection with receipt of fundsequipment toused deployfor broadband service shallconnection. be eligible for inclusion in this program in subsequent program years.

Information(7) providedAny toother theinformation Officeor pursuantsupplementary todocumentation thisrequested subdivisionby isthe notOffice. a public record, as that term is defined in G.S.

132-1.(c) The Office shall determine eligibility for a grant pursuant to this section based upon the information provided in the application of a broadband service provider, and any other House Bill 947-First Edition Page 3 General Assembly Of North Carolina Session 2021 information or supplementary documentation requested by the Office, and shall award grants to applicants that demonstrate the provision of broadband service via a subscription from an unserved household.

(6) The provisionsOffice ofshall G.S.provide grants to eligible broadband service providers for subscriptions to unserved households as follows:

143B-1373(d1)(1) areUp replacedto withone thethousand following:one hundred dollars ($1,100) for each satellite broadband subscription, or up to seven hundred dollars ($700.00) for each fixed wireless subscription, providing broadband speeds of 50 megabits per second download and 3 megabits per second upload, or greater.

An(2) applicationUp submittedto pursuantseven hundred dollars ($700.00) for each satellite broadband subscription, or up to thisfive sectionhundred shalldollars include($500.00) afor projecteach areafixed mapwireless thatsubscription, providesproviding location-specificless datathan in50 amegabits formatper requiredsecond bydownload theand Office.3 megabits per second upload.

AThe providergrants submittingawarded anby applicationthe pursuantOffice toshall thisnot sectionexceed shallthe bearcost of the burdenbroadband ofprovider's proofequipment, thatincluding theany proposedinstallation areacosts, necessary to beprovide servedbroadband can,service into fact,the behousehold servedthat usinghas thebeen proposedprovided technology.to a subscriber.

The(d) burdenEligibility offor proofa maygrant beaward satisfiedis bydependent theupon submission ofdata,maps,andanyotherinformationsatisfactoryto the Office,household demonstratingmaintaining that the area and number of prospective broadband recipientsservice proposedwith to be served can be provided the minimumgrantee uploadfor andat downloadleast speeds24 indicatedconsecutive inmonths. the application.

(7)No Thegrant provisionsshall inbe G.S.awarded for a subscription at an address that the Office has previously awarded a grant under this section.

143B-1373(e)A aregranteeshallsubmitdocumentationtotheOfficeannuallythatwillprovideinformationsufficient replacedfor withthe Office to verify eligibility of subscriptions, including that the following:household was unserved.

ApplicationsPayment shall be made publiclyavailable byposting on the website of thegrant Departmentfunds ofis Informationsubject Technologyto fordocumentation ashowing periodeligibility of atsubscriptions. least 20 days prior to award.

During(e) theThe 20-dayOffice period,shall anyrequire interesteda partygrantee may submit comments to theenter Secretaryinto concerningan anyagreement. pending application.

AThe broadbandagreement serviceshall providercontain currentlyat providingleast broadbandall service in a project area proposed in an application may submit a protest of any application on the groundsfollowing: the proposed project covers an area that is a protected area under subsection (c) of this section or that the proposed project area contains ten percent (10%) or more of total households with access to broadband service as defined in this section.

Protests(1) shallAn beaddress submittedof in writing, accompanied by all credible and relevant supporting documentation, including specific Page 4 House Bill 947-Second Edition General Assembly Of North Carolina Session 2021 addresses, and detailed mapping demonstrating that the protestinghousehold broadbandsubscribing providerfor has installed infrastructure sufficient to provide broadband service tofor thewhich specific addresses provided in the protest,grant along with an attestation that broadband service is availablesought. to the exterior of the structure at the specific addresses indicated.

The(2) protestA shallprovision bethat consideredrequires by the Officegrantee into connectionmaintain withits service for the reviewsubscriber offor theat application.least 24 consecutive months.

Upon(3) submissionA ofprovision evidenceestablishing satisfactory to the Officeconditions thatunder which the proposedgrant projectagreement areamay includesbe aterminated protectedand areaunder orwhich prospectivegrant broadbandfunds recipientsmay thatbe arerecaptured presentlyby served, as measured using amethodologysatisfactoryto the Office,Office. theOfficemaywork with an applicant to amend an application to reduce the number of unserved prospectivebroadbandrecipients in theproject areato reflect an accuratelevel of current broadband service.

The(4) OfficeA mayprovision revisestating applicationthat scoresunless inthe accordanceagreement withis amendedterminated applications;pursuant to its terms, the agreement is binding and constitutes a continuing contractual obligation of the State and the grantee.

however,(5) theA Officeprovision maythat rejectestablishes any amendedallowed applicationvariation resulting in athe lowerterms applicationof score to the extentagreement that thewill lowernot scoresubject wouldthe havegrantee impactedto thegrant rankingreduction, ofamendment, theor applicationtermination inof the initialagreement. scoring process.

For(6) applicationsA withprovision fileddescribing protests, the Secretarymanner shallin issuewhich athe writtenamount decisionof to the protestinggrant partywill atbe leastmeasured 15and daysadministered prior to ensure compliance with the approvalagreement ofand thatthis application.section.

Following(7) aA protestprovision stating that isany grantedrecapture forof a portiongrant and any reduction in the amount of the application,grant or the Officeterm mayreleaseof the agreement must, at a minimum, be proportional to anthe applicantfailure to comply measured relative to the locationscondition or areascriterion declaredwith ineligible.respect to which the failure occurred.

The(8) informationA releasedprovision todescribing the applicantmethodology isthe notOffice awill publicuse record,to asverify thatsubscriptions termand isthe definedundertypes G.S.of information required to be submitted by the grantee.

132-1,(9) andshallA remainprovision confidential.stating that the grantee may not impose data caps upon any eligible subscription for the term of the agreement.

Any(10) providerA submittingprovision stating that the equipment necessary for a protestsubscriber shallto verifyreceive thatbroadband service from the informationgrantee inshall thebe protestdeemed isa accuratefixed andasset thatupon the protestpropertyof isthe submittedeligible insubscription goodand faith.shall transfer with the propertyto any successors.

ThePage Office4 mayHouse denyBill any947-First protestEdition orGeneral applicationAssembly thatOf containsNorth inaccurateCarolina information.Session 2021 (11) Any other provision the Office deems necessary.

As(f) aIf meansthe ofgrantee resolvingfails ato protest,meet theor Officecomply maywith utilizeany speedcondition testsor torequirement determineset ifforth in an agreement, the protestedOffice areashall orreduce individualthe householdsamount orof businessesthe currentlygrant haveor accessthe toterm broadbandof servicethe asagreement, definedmay interminate thisthe section.agreement, or both.

The Departmentreduction shallin publishthe amount of the speedgrant testor methodologythe itterm usesmust, at a minimum, beproportional to assessthefailureto speedcomplymeasured levelsrelativeto pursuantthecondition with respect to thiswhich section.the failure occurred.

AllIf decisionsthe regardingOffice finds that the speedgrantee testhas manipulated or attempted to bemanipulate utilizeddata andwith the mannerpurpose byof whichincreasing the speedamount testsof area appliedgrant, the Office shall beimmediately madeterminate bythe agreement and take action to recapture any grant funds disbursed in any year in which the SecretaryOffice finds the grantee manipulated or attempted to manipulate data with the Secretary'spurpose designee.of increasing the amount of a grant.

(8)(g) The partnershipgrantee scoringshall provisioncertify and provide to the Office evidence consistent with a Federal Communications Commission attestation that the proposed minimum upstream and minimum downstream broadband speeds and latency metrics identified in G.S.the application guidelines are and will be available throughout the project area during the term of the agreement prior to any end user connections.

143B-1373(g)(1)A isgrantee replacedmay withreceive a disbursement of a grant only after the following:Office has certified that the grantee has met the terms and conditions of the agreement.

ProjectsA proposinggrantee shall submit a partnershipcertification shallof becompliance givenwith pointsthe inagreement theirto applicationthe score.Office.

AThe proposedOffice partnership shall (i)require bethe ingrantee writing,to (ii) provide theany specificnecessary termsevidence and conditions of thecompliance partnership,to andverify (iii)that bethe signedterms andof attestedthe toagreement byhave thebeen parties.met.

A(h) countyThe orOffice nonprofitshall mayrequire enterthat intoa grantee offer the proposed agreementsadvertised withminimum moredownload thanand oneminimum applicant.upload speeds and subscription cost identified in the application for the duration of the 24 consecutive months provided in the agreement.

ForUpon therequest, purposesa ofgrantee scoringshall underprovide thisto subdivision,the oneOffice pointevidence shallconsistent bewith given for a proposedFederal partnershipCommunications thatCommission willattestation make available existing infrastructure that hasthe beengrantee installedis formaking available the partner'sproposed enterprise,advertised nonconsumerspeed, broadband purposes, or anya otherfaster property,speed, buildings,as orcontained structuresin owned by the partner,grant foragreement." aPART proposedIII. project under this section.

A county or nonprofit entity that proposes to provide a financial match shall be given one point.

Notwithstanding Article 8 of Chapter 143 of the General Statutes,oranyprovision oflawto thecontrary, acountymayuseunrestricted general funds or federal American Rescue Plan Act (P.L.

117-1) funds allocated to it for the purpose of improving broadband infrastructure for a financial match.

An applicant shall receive two additional points for a proposed partnership where the county's financial match is comprised entirely from federal American Rescue Plan Act (P.L.

117-2) funds intended for broadband infrastructure.

Nothing in this subdivision shall be deemed to House Bill 947-Second Edition Page 5 General Assembly Of North Carolina Session 2021 authorize a county to provide broadband service.

For projects where the application includes a proposed partnership, the agreement shall contain a provision requiring a certification of the existence of the partnership prior to disbursement of grant funds.

(9) The scoring model measures contained in G.S.

143B-1373(g)(5) are replaced with the following:

a.

For projects proposed in the Piedmont or Coastal Plain Regions:

Est.

Cost per Household/Business Points Up to $3,500 9 $3,500, up to $5,000 8 $5,000, up to $6,000 7 $6,000 and over 0 b.

For projects located in the Mountain Region:

Est.

Cost per Household/Business Points Up to $4,500 9 $4,500, up to $6,000 8 $6,000, up to $7,000 7 $7,000 and over 0 (10) The base speed multiplier provided in G.S.

143B-1373(g)(6) shall be administered as follows:

Minimum Download:

Minimum Upload Score Multiplier 100:20 Mbps.

or greater.

1.00 100 Mbps., symmetrical 2.00 Greater than 100:100 Mbps.

3.00 An applicant proposing minimum download and minimum upload speeds of less than 100 Mbps., symmetrical, shall provide an attestation to the Office that, upon project completion, the completed infrastructure will be scalable to a minimum of 100 Mbps.

download and 100 Mbps.

upload on or before December 31, 2026, subject to the return of all federal American Rescue Plan Act (P.L.

117-2) funds received under this section and all of the grant forfeiture provisions in G.S.

143B-1373(l).

(11) Additional points shall be awarded to counties providing a portion of a project's matching funds entirely from federal American Rescue Plan Act (P.L.

117-2) funds the county received directly from the federal government.

For counties that received an aggregate of eight million dollars ($8,000,000) or more directly from the federal government, the following points shall be added to the application score:

County Match Points $1,000,000, up to $2,000,000 1 $2,000,000, up to $4,000,000 2 $4,000,000, up to $6,000,000 3 $6,000,000, up to $8,000,000 4 $8,000,000, or greater 5 For counties that (i) received less than an aggregate of eight million dollars ($8,000,000) directlyfrom the federal government from the American Rescue Plan Act (P.L.

117-2) and (ii) are providing a portion of a project's matching funds using the entiretyof the federal funds the countyreceived, together with Page 6 House Bill 947-Second Edition General Assembly Of North Carolina Session 2021 any other unrestricted general fund monies, if needed, the following points shall be added to the application score:

County Match Points $250,000, up to $6,000,000 6 $6,000,000, up to $8,000,000 7 (12) The grant limitation amounts in G.S.

143B-1373(i) are changed as follows:

A single grant award shall not exceed four million dollars ($4,000,000).

No combination of grant awards involving any single county may exceed eight million dollars ($8,000,000) in a fiscal year.

Any project that is applied for and not funded in an award round under this section shall be eligible for funding under the Completing Access to Broadband program pursuant to G.S.

143B-1373.1.

(13) The provisions of G.S.

143B-1373(j) are replaced with the following:

Grant recipients are required to provide matching funds based upon the application scoring pursuant to this section in the following minimum amounts:

Score Matching Requirement 12.0 points or less 50% Greater than 12.0 points, but less than 17.5 points 45% 17.5 points, up to 22.0 points 40% Greater than 22.0 points 30% Up to fifty percent (50%) of matching funds paid by the grant recipient may be comprised of third-party funding including funds from other grant programs or federal funds, to the extent applicable rules permit.

A grant recipient receiving a portion of matching funds from a county, where the county portion of matching funds is partially comprised of federal American Rescue Plan Act (P.L.

117-2) funding, may have the grant recipient's portion of the matching requirement imposed under this subdivision reduced to a maximum of twenty-five percent (25%).

A grant recipient receiving a portion of matching funds from a county, where the county portion of matching funds is entirely comprised of federal American Rescue Plan Act (P.L.

117-2) funding, may have the grant recipient's portion of the matching requirement imposed under this subdivision reduced to a maximum of fifteen percent (15%).

SECTION 2.2.

The Department of Information Technology shall utilize a portion of the administrative funds authorized in Section 4.2 of this act for legal and appraisal services needed to assist the Department of Administration in administering the provisions of G.S.

146-29.2(b1).

The Department of Administration shall utilize all available resources to prioritize the review and disposition of requests for collocation, installation, and operation of equipment for broadband providers receiving grants under this Part.

PART III.

area.– A county designated as a development tier one or tier two area, and rural census tracts located in development tier three areas, as defined in G.S.

–143B-473.08. A county designated as a development tier one or tier two area, as defined in G.S.

143B-473.08.G.S.For the purposes of this subdivision, the term "rural census tract" has the same meaning as contained in G.S.

143B-437.08,143B-472.127(a)(2). or a rural census tract, as defined in G.S.

143B-472.127(a)(2),Counties locatedwith intotal anyemployment otherof county.500,000 or more, as of January 1, 2020, as measured pursuant to G.S.

House143B-437.52(c)(3), Billare 947-Secondnot Editioneligible. Page 7 General Assembly Of North Carolina Session 2021 (6) Eligible project.

–(6) AnEligible eligibleproject. project is a discrete and specific project located in an unserved economically distressed area of an economically distressed county seeking to provide broadband service to homes, businesses, and communityanchorpointsnotcurrentlyserved.Eligibleprojectsdonotinclude middle mile, backhaul, and other similar projects not directed at broadband service to end users.

– An eligible project is a discrete and specific project located in an unserved area of an economically distressed county seeking to provide broadband service to homes, businesses, and community anchor points not currently served.

Eligible projects do not include middle mile, backhaul, and other similar projects not directed at broadband service to end users.

To qualify for an award under this section, no more than an incidental number of households or businesses, not to exceed ten percent (10%) of the total households or businesses within the boundaries of the project area submitted by the applicant, may have House Bill 947-First Edition Page 5 General Assembly Of North Carolina Session 2021 terrestrially deployed Internet access service with transmission speeds greater than 10 Mbps download and 1 Mbps upload.

Areas where a private provider has been designated to receive funds through other State State- or federally funded programs designed specifically for broadband deployment shall be considered served if such funding is intended to result in construction of broadband in the area within 18 months.monthsmonths. or for the duration of the federal funding program for that area, or if the funding recipient is otherwise in good standing with the funding agency's regulations governing the funding program.

…(b) (c)The ProjectGrowing areasRural comprisedEconomies ofwith censusAccess blocks,to orTechnology portionsFund thereof,is withinestablished whichas a broadbandspecial providerrevenue isfund receivingin matching funds to deploy broadband service within the nextDepartment 18of monthsInformation areTechnology. ineligible for the GREAT program.

State funds appropriated to this Fund shall be considered an information technology project within the meaning of G.S.

143C-1-2.TheSecretarymayawardgrants from theGrowingRural Economies with Access to Technology Fund to eligible recipients for eligible projects.

The funds shall be used by the recipient to pay for infrastructure costs associated with an eligible project.

State funds appropriated to this Fund shall be considered an information technology project within the meaning of G.S.

143C-1-2.as follows:

(1) For eligible projects awarded funds under this section to be used bya recipient to pay for infrastructure costs associated with an eligible project.

(2) For awards to grantees providing fixed wireless or satellite broadband service pursuant to G.S.

143B-1373.1.

Monies appropriated to the Fund for fixed wireless or satellite broadband grants under G.S.

143B-1373.1 shall be held separately to be awarded as grants under that section.

(c) Project areas comprised of census blocks, or portions thereof, within which a broadband provider is receiving matching funds to deploy terrestrial broadband service within the next 18 months are ineligible for the GREAT program.

A private provider receiving Universal Service or Connect America Phase II, federal or nonfederal State or federal funds to deploybroadbanddeploy serviceterrestrial inbroadband unservedservice areasmay mayqualifysuchqualify such area for protection by submitting within 60 days of the application period a listing of the census blocks, or portions thereof, comprising the State- or federally funded project areas meeting this requirement and nothing more to in a manner prescribed by the Office.

This will enable the office to update maps and advise applicants as to the unserved areas of the State that are eligible for consideration in that program year.year.TheOfficeshall onlyutilizethisdatato updatemapsofcensus blocksto reflect thesecensus blocks, or portions thereof, as being served.

TheFailure Officeon shallthe onlypart utilizeof thisa dataprovider to updatesubmit mapsthe listing of census blocks toby reflectthe thesecutoff censusdate blocks,shall orresult portionsin thereof,those asareas being served.eligible for inclusion under this program during the upcoming program year.

FailureThe onOffice shall use the partcensus ofblock data providedonlyformappingofunservedareas.Uponexpirationofthe18-monthreservationperiod described in this subsection, a private provider tothat submithas thereceived listinga reservation of census blocks shall submit written documentation by April 30 of the cutoffyear datefollowing shallthe resultprogram year that broadband deployment has begun or been completed in thosethe areascensus beingblocks, eligibleor forportions inclusionthereof, underthat thishave programbeen duringdeemed ineligible by the upcomingOffice subsequentdue programto year.the existence of a federally funded project area.

years.

The Office shall use the census block data provided only for mapping of unserved areas.

Upon expiration of the 18-month reservation period described in this subsection, A project area shall remain protected for a period of 18 months from the submission of the listing information required under this subsection;

provided, however, a private provider that has received a reservation of census blocks protection for a project area shall submit written documentation by April 30 of the year following the program year that broadband deployment has begun or been completed completed, or is otherwise in good standing, in the census blocks, or portions thereof, that have been deemed ineligible by the Office due to the existence of a federally funded project area.

under this subsection.

Upon submission of documentation satisfactoryto theOffice, aprotectedproject area shall remain protected until project completion.

Page 8 House Bill 947-Second Edition General Assembly Of North Carolina Session 2021 A project area where a private provider has forfeited or otherwise defaulted on an agreement in connection with receipt of funds to deploy broadband service shall be eligible for inclusion in this program in subsequent program years.

…Nothing (d1)in Anthis applicationsubsection submittedshall pursuantbe deemed to thismake sectionineligible shall include a project area mapin thatan providesarea location-specificwhere dataa infederal aRural formatDigital requiredOpportunity byFund thegrant Office.was awarded to a satellite broadband provider.

… Page 6 House Bill 947-First Edition General Assembly Of North Carolina Session 2021 (d1) An application submitted pursuant to this section shall include a project area map using the State broadband maps maintained bythe Department.

The project area map shall depict that the project boundary does not conflict with served areas as shown on the State broadband maps.

To further assist with defining the project area, the project map shall provide street addresses and road names for areas on the map where public roads intersect project boundary lines.

Served areas include those areas known to have existing broadband service, areas with an ongoing broadband project funded under this section, areas with projected FCC funded projects, and any other data the Department has included to differentiate between served and unserved areas.

To submit a protest under subsection (e) of this section, a broadband provider shall provide data sufficient for the Office to conclude that any areas being challenged have broadband service as defined in this section.

The burden of proof may be satisfied by the submission of data, maps, and anyanyother other information satisfactory to the Office, demonstrating that the area and number of prospective broadband recipients proposed to be served can be provided the minimum upload and download speeds indicated in the application.

During the30-day20-dayperiod, anyinterested partymaysubmit comments to theSecretaryconcerning anypendingapplication.Abroadbandserviceproviderofbroadbandservicescurrentlyproviding broadband service in a project area proposed in an application may submit a protest of any applicationpending onapplication. the grounds the proposed project covers an area that is not an eligible a protected area under subsection (c) of this section.

section,A orprovider thatof thebroadband proposedservices projectmay areasubmit containsa tenprotest percentof (10%)any orapplication moreon ofthe totalgrounds householdsthe withproposed accessproject tocovers broadbandan servicearea asthat definedis innot an eligible area under this section.

Protests shall be submitted in writing, accompanied by all credible and relevant supporting documentation, and includingshall specificbe addresses,considered andby detailed mapping demonstrating that the protestingOffice broadband provider has installed infrastructure sufficient to provide broadband service to the specific addresses provided in theconnection protest, along with an attestation that broadband service is available in the publicreview right-of-wayof at the specificapplication. addresses indicated.

TheUponsubmission protestofevidence shallsatisfactoryto bethe consideredOfficethat bythe proposed project area includes prospective broadband recipients that are served, as measured using a methodology satisfactory to the Office, the Office inmay connectionwork with an applicant to amend an application to reduce the reviewnumber of unserved prospective broadband recipients in the application.project area to reflect an accurate level of current broadband service.

Uponsubmission ofevidence satisfactoryto the Officethat the proposed project area includes a protected area or prospective broadband recipients that are presently served, as measured using a methodology satisfactory to the Office, the Office may work with an applicant to amend an application to reduce the number of unserved prospective broadband recipients in the project area to reflect an accurate level of current broadband service.

however, the Office may reject any amended application resulting in a lower application score to the extent that the lower score would haveimpactedthehave impacted the ranking oftheof the application in theinitialthe scoringprocess.initial scoring process.

For applications with filed protests, the SecretarySecretaryshallissueawrittendecisiontotheprotestingpartyatleast15days shall issue a written decision to the protesting party at least 15 days prior tototheapproval the approval of that application.

… (g) Applicationsshallbescoredbaseduponasystemthatawardsasinglepointforcriteria considered to be the minimum level for the provision of broadband service with additional points House Bill 947-Second Edition Page 9 General Assembly Of North Carolina Session 2021 awarded to criteria that exceed minimum levels.

A proposed partnership shall (i) be in writing, (ii) providethespecifictermsandconditionsHouse ofthepartnership,and(iii)beBill signed947-First Edition Page 7 General Assembly Of North Carolina Session 2021 providethespecifictermsandconditions ofthepartnership,and(iii)besigned and attested to by the parties.

Projects involving partnerships shall be given six points in their application score.shallscore. be given one point.

shall be given one point.

FundsAn receivedapplicant fromshall receive two additional points for a proposed partnership where the county's financial match is comprised entirely from federal American Rescue Plan Act (P.L.

117-2) mayfunds notintended be used for thebroadband purposesinfrastructure. of this subdivision.

…(2) (5)Unserved Costhouseholds. per household or business.

– The Office shall give additional points to projects based upon the estimated number of unserved households within the eligible economically distressed county, as determined by the most recent data published by the Federal Communications Commission or any other information available to the Office.

Points shall be given to projects that will be located in counties with estimated unserved households as follows:

Unserved Households Points Given 500 or less 1 501-1400 2 Over 1400 3 (3) Unserved households to be served.

– The Office shall give additional points to projects that will provide broadband service based upon the percentage of the total unserved households within the eligible economically distressed county that the project will serve.

The number of unserved households shall be determined using the most recent data published by the Federal Communications Commission or any other information available to the Office.

Points shall be given to projects that will serve a percentage of unserved households within the project area as follows:

% Unserved Households To Be Served Points Given Under Less than 15% 1 15% to 25% 2 Over 25% 3 (4) Unserved businesses.

– The Office shall give additional points to projects that will provide broadband service to unserved businesses located within the eligibleeconomicallydistressedcounty,as determinedbythemost recent data published by the Federal Communications Commission or any other information available to the Office.

Points shall be given to projects that serve unserved businesses within the project area as follows:

a.

Projects proposing to serve between 1 and 4 businesses shall receive 1 point.

Page 8 House Bill 947-First Edition General Assembly Of North Carolina Session 2021 b.

Projects proposing to serve between 5 and 10 businesses shall receive 2 points.

c.

Projects proposing to serve either (i) more than 10 businesses or (ii) an agricultural operation, agricultural processingfacility, or a business with 31 or more full-time employees shall receive 3 points.

(5) Cost per household or business.

Cost per Partnership Using Private Provider Household/Business Infrastructure OnlyPointsOnly Up to $1,700$3,500$1,700 4 9 $1,701-2,200$3,500,$1,701-2,200 up to $5,000 3 8 $2,201-2,700$5,000,$2,201-2,700 up to $6,000 2 7 $2,701-3,200$6,000$2,701-3,200 and over 1 606 b.

Cost per Partnership Using Private Provider Household/Business Infrastructure OnlyPointsOnly Up to $2,500$4,500$2,500 4 9 $2,501-3,300$4,500,$2,501-3,300 up to $6,000 3 8 $3,301-3,800$6,000,$3,301-3,800 up to $7,000 2 7 $3,801-4,300$7,000$3,801-4,300 and over 1 606 (6) Base speed multiplier.

1.35 Page 10 House Bill 947-Second Edition General Assembly Of North Carolina Session 2021 100:10 Mbps.

2.00 100Symmetrical. Mbps., symmetrical.

3.00 Greater… than(h) 100:100The Mbps.Office shall score applications based upon the metrics provided in subsection (g) of this section.

4.00In …awarding (i)grants (Effectivebased Julyupon 1,the 2021)scoring Applicationsmetrics, receiving the highestOffice score shall receivealso priorityaward statusan foradditional thepoint awardingto ofprojects grantswhere pursuanta thiscounty section.has a Community Broadband Planning Playbook that meets the guidelines established by the Office.

(h1) Additional points shall be awarded to counties providing a portion of a project's matching funds entirely from federal American Rescue Plan (P.L.

117-2) funds the county received directly from the federal government.

For counties that received eight million dollars ($8,000,000) or more directly from the federal government, the following points shall be added to the application score:

County Match Points Up to $2,000,000 1 $2,000,000, up to $4,000,000 2 $4,000,000, up to $6,000,000 3 $6,000,000, up to $8,000,000 4 $8,000,000, or greater 5 House Bill 947-First Edition Page 9 General Assembly Of North Carolina Session 2021 For counties that (i) received less than eight million dollars ($8,000,000) directly from the federal government from the American Rescue Plan (P.L.

117-2) and (ii) are providing a portion of a project's matching funds using the entirety of the federal funds the county received, together with any other unrestricted general fund monies, if needed, the following points shall be added to the application score:

County Match Points Up to $6,000,000 6 $6,000,000, up to $8,000,000 7 (i) (Effective July 1, 2021) Applications receiving the highest score shall receive priority status for the awarding of grants pursuant this section.

If funds remain available after all top scoring projects have been awarded a grant, then the next highest scoring projects may be awarded a grant even if the project is located in a county where a grant has been awarded in that fiscal year provided the total award associated with that countydoescounty does not exceed two eightsix million dollars ($2,000,000) ($8,000,000)($6,000,000) in that fiscal year.

143B-1373.1.143B-1373.2.

Score Matching Requirement 12.0 points or less 55%50% Greater than 12.0 points, but less than 17.5 points 50%45% 17.5 points, up to 22.0 points 45%40% Greater than 22.0 points 35%30% Page 10 House Bill 947-First Edition General Assembly Of North Carolina Session 2021 Up to fifty percent (50%) of matching funds paid by the grant recipient may be comprised of third-partyfundingincludingfunds from other grant programs.

Anyother current or future House Bill 947-Second Edition Page 11 General Assembly Of North Carolina Session 2021 federal funds may be used, including any future phase of the Connect America Fund, for the required matching funds within the parameters of this program.

…A (p)grant Therecipient Departmentreceiving maya useportion up to one percent (1.0%) of thematching State funds appropriatedfrom fundsa eachcounty, fiscalwhere yearthe tocounty administerportion theof GREATmatching program.programfunds establishedis underpartially thiscomprised section."of 8federal PARTAmerican IV.Rescue Plan (P.L.

117-2) funding, may have the matching requirement imposed under this subsection reduced to a maximum of twenty-five percent (25%).

A grant recipient receiving a portion of matching funds from a county, where the county portion of matching funds is entirely comprised of federal American Rescue Plan (P.L.

117-2) funding, may have the matching requirement imposed under this subsection reduced to a maximum of fifteen percent (15%).

… (p) The Department may use up to one percent (1.0%) of the State funds appropriated funds each fiscal year to administer the GREAT program.program established under this section." PART IV.

There is appropriated from the Statefunds Fiscalreceived Recoveryby Fund,the establishedState in Section 2.2 of SenateNorth BillCarolina 172,pursuant 2021 Regular Session, to the GrowingAmerican RuralRescue EconomiesPlan withAct Access to Technology Fund the sum of three2021, hundredP.L. fifty million dollars ($350,000,000) in nonrecurring funds for the 2021-2022 fiscal year for broadband infrastructure grants awarded pursuant to G.S.

143B-1373,117-2, asto modifiedthe underCompleting PartAccess IIto Broadband Fund in the Department of thisInformation act.Technology the sum of four hundred million dollars ($400,000,000) for the 2021-2022 fiscal year to be used pursuant to G.S.

143B-1373.2.

SubjectThere tois applicableappropriated federalfrom guidelines, of the funds appropriatedreceived inby this act, the DepartmentState of InformationNorth TechnologyCarolina maypursuant use up to onethe and one-tenth percent (1.1%) for administration of broadband grant programs receiving American Rescue Plan Act (P.L.of 2021, P.L.

117-2)117-2, fundsto inthe thisGrowing act.Rural Economies with Access to Technology Fund the sum of twelve million dollars ($12,000,000) for the2021-2022fiscal yearforfixedwirelessandsatellitebroadbandgrantsto beawardedpursuant to G.S.

143B-1373.1.

ItThere is theappropriated intentfrom of the General Assembly, in subsequent legislation, to appropriate funds received by the State of North Carolina pursuant to the American Rescue Plan Act of 20212021, (P.L.P.L.

117-2)117-2, into the amountGrowing Rural Economies with Access to Technology Fund the sum of fourthree hundred forty million dollars ($400,000,000)($340,000,000) for the Completing2021-2022 Accessfiscal toyear Broadbandfor programbroadband establishedinfrastructure ingrants Partawarded Ipursuant ofto thisG.S. act.

143B-1373.

SECTION 4.4.

Subject to applicable federal guidelines, of the funds appropriated in this act, the Department of Information Technology may use up to one percent (1%) for administration of broadband grant programs receiving American Rescue Plan Act (P.L.

117-2) funds in this act.

143B-1373143B-1373, 143B-1373.1, and 143B-1373.2, the Office of Broadband Infrastructure shall utilize the development tier status in the annual ranking performed by the Department of Commerce pursuant to G.S.

143B-1373.1, the Office of Broadband Infrastructure shall utilize the development tier status in the annual ranking performed by the Department of Commerce pursuant to G.S.

Page 12 House Bill 947-Second947-First Edition Page 11