II. Background

We issued this order instituting rulemaking (OIR) into the implementation of California Assembly Bill (AB) 140 (Stats. 2001, Ch. 903), enacted on October 14, 2001, which created the Rural Telecommunications Infrastructure Grant Program. AB 140, codified at Pub. Util. Code § 276.5,¹ with a funding level capped at $10 million per year, enables unserved communities to apply for grants of up to $2.5 million for the construction of telecommunications infrastructure. AB 140 requires that grant proposals be submitted in accordance with procedures prescribed by the Commission and evaluated and awarded by the Commission using technology criteria developed by a government-industry working group.

On September 18, 2003, we issued an interim opinion, Decision (D.) 03-09-071, that implemented eligibility criteria for community-based groups to qualify to apply for telecommunications rural infrastructure grants and adopted interim grant program administration rules. D.03-09-071 contemplated comments on the interim grant program administration rules, because we adopted those rules at the request of the parties but did not separately notice them for comment.

In the meantime, Resolution T-16846 awarded the first three rural infrastructure grants on June 9, 2004. Because the application and award process proceeded smoothly, the Administrative Law Judge solicited comment on whether there were issues this proceeding should resolve before it was closed. No party submitted comments.