V. Assignment of Proceeding.
President Michael R. Peevey is the Assigned Commissioner, and Janice Grau is the assigned Administrative Law Judge.
1. Efficient administration of the grant program requires some form of fixed deadline.
2. Section 276.5 provides that the Commission shall establish eligibility criteria for community-based groups to qualify to apply for telecommunications infrastructure grants. Eligibility criteria are cost effectiveness of the application, the number of people served, the level of local support, the ability of the community served to pay for the services delivered, and the effect on public health and safety. Consideration shall be given to communities with schools, hospitals, and health clinics.
3. Section 276.5 requires that qualifying communities have a median household income no greater than the income level used in the Universal Lifeline Telephone Service (ULTS) index for a family of four. The ULTS income limitation for the 2003/04 fiscal year is $27,800.
4. Incumbent local exchange carriers (ILEC) may have costs for feasibility studies required under Pub. Util. Code § 276.5 in excess of tariff charges and other costs not provided for in line extension tariffs.
5. Section 276.5 requires that the mandated working group be composed of representatives from the Commission, from ILECs, from competitive local exchange carriers (CLEC) and from the wireless industry. Parties nominated representatives from SBC California and Verizon, Virginia Strom-Martin, Steve Bowen, and Regina Costa. No representatives of the wireless or CLEC industries were nominated.
6. It is more efficient to adopt grant program administration rules on an interim basis than to issue proposed rules for comment and later decision.
7. No party has requested hearings.
1. We should adopt, on an interim basis, grant program administration rules.
2. We should adopt the grant program application appended to this decision as Attachment A.
3. It is reasonable to consider schools, hospitals and health clinics a "community," and to consider all adult household residents' income from all sources toward the ULTS income limitation.
4. It is reasonable to place particular emphasis on the number of people served in weighing the cost effectiveness of grant applications, to ensure that the qualifying community has the ability to pay recurring service charges, and to view favorably a high subscribership commitment level.
5. It is reasonable to find that the rural infrastructure grant program should fund applicant line extension costs, that existing line extension tariffs should not apply to the grant program, and that ILECs shall file advice letters setting forth rates, charges, terms and conditions consistent with this decision's directives.
6. It is reasonable to approve the nominations of Strom-Martin, Bowen, Costa and representatives from SBC California and Verizon to the working groups. It is reasonable to direct our staff to find qualified representatives from the wireless and CLEC industries to serve on the working group and to approve a slot for a representative from Commission staff.
7. A subsequent ruling, by the Assigned Commissioner and ALJ, should address the process and schedule for further review of grant administration rules.
8. In order to permit timely compliance with the Legislative mandate of AB 140, which requires establishment of eligibility criteria for community-based groups to qualify to apply for telecommunications infrastructure grants by June 30, 2002, this order should be effective today.
INTERIM ORDER
IT IS ORDERED that:
1. Eligibility criteria for community-based groups to qualify to apply for telecommunications infrastructure grants are adopted as set forth herein.
2. Interim grant administration rules are adopted as set forth herein.
3. Incumbent Local Exchange Carriers shall file rural infrastructure advice letters as set forth herein.
4. The government-industry working group shall be established as set forth herein.
This order is effective today.
Dated September 18, 2003, at San Francisco, California.
MICHAEL R. PEEVEY
President
CARL W. WOOD
LORETTA M. LYNCH
GEOFFREY F. BROWN
SUSAN P. KENNEDY
Commissioners
