New Jersey-2024-A136-Introduced

An Act establishing the Rural Broadband Infrastructure Grant Program, supplementing P.L.1974, c.80 (C.34:1B-1 et seq.), and making an appropriation.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):

"Authority" means the New Jersey Economic Development Authority, established by section 4 of P.L.1974, c.80 (C.34:1B-4).

"Board" means the Board of Public Utilities.

"Broadband telecommunications infrastructure" means the same as the term is defined in section 1 of P.L.2007, c.191 (C.40:9D-1).

"Broadband telecommunications service" means the same as the term is defined in section 1 of P.L.2007, c.191 (C.40:9D-1).

"Fund" means the "Rural Broadband Infrastructure Grant Fund," established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).

"Grant program" means the "Rural Broadband Infrastructure Grant Program," established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

"Qualified applicant" means a corporation, limited liability company, partnership, business entity, non-profit organization, political subdivision, or any other entity in the State that is authorized to construct or repair broadband telecommunications infrastructure or provide broadband telecommunications service within the State.

"Unserved area" means an area in which customers are without broadband service at speeds of at least 25 megabits per second download and 3 megabits per second upload.

2. a. The authority, in consultation with the board, shall establish and administer the "Rural Broadband Infrastructure Grant Program" for the purpose of providing grants to qualified applicants for the expansion and improvement of broadband telecommunications infrastructure and the provision of broadband telecommunications service in rural areas of the State.

b. To qualify for the grant program, a qualified applicant shall demonstrate to the authority that the qualified applicant:

(1) is authorized to construct or repair broadband telecommunications infrastructure or provide broadband telecommunications service within the State;

(2) intends to use the grant for a project that will support the expansion and improvement of broadband telecommunications infrastructure or the provision of broadband telecommunications service in rural areas of the State; and

(3) meets any other eligibility requirements that the authority may deem appropriate.

c. A qualified applicant that seeks assistance under the grant program shall submit an application to the authority in a form and manner prescribed by the authority. In addition to any other information that the authority may deem appropriate, the application shall require the qualified applicant to submit information:

(1) demonstrating that the qualified applicant meets the eligibility requirements set forth in subsection b. of this section;

(2) demonstrating existing broadband service levels within any rural areas in the State that would be addressed by the proposed project, and identifying any unserved areas within those rural areas; and

(3) outlining the anticipated use of the grant.

d. The authority may approve applications for the grant program on a rolling basis, subject to the availability of funds in the "Rural Broadband Infrastructure Grant Fund." The authority shall prioritize applications that address unserved areas.

e. Upon approval of an application, the authority shall provide a grant, in the amount determined by the authority, to the qualified applicant to support the costs of undertaking any project that improves broadband telecommunications infrastructure or expands the provision of broadband telecommunications service in rural areas of the State.

f. (1) The authority shall award a grant to a qualified applicant in an amount not to exceed $75,000 per project, provided the qualified applicant shall contribute private capital, in an amount not less than 25 percent of value of the grant, to finance the proposed project. To the extent permitted under federal law, a qualified applicant may use any monies received from the federal "American Rescue Plan Act of 2021," Pub.L.117-2, to support the required contribution of private capital.

(2) The grants shall be utilized for the acquisition, construction, equipment, and site-preparation costs associated with the deployment of broadband telecommunications infrastructure in rural areas of the State or any other purpose related to the provision of broadband telecommunications service in rural areas of the State.

g. The authority shall prepare and submit a report on the "Rural Broadband Infrastructure Grant Program" to the Governor, and pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature, and make the report available on the authority's Internet website, no later 12 months after the first qualified applicant is approved. The report shall include the number of qualified applicants that applied for the grant program, the number and names of the qualified applicants approved for the grant program, the total number of grants distributed, the amount received per qualified applicant, and any other information the authority determines necessary to evaluate the progress of the grant program.

3. a. The authority shall establish and maintain a non-lapsing revolving fund, known as the "Rural Broadband Infrastructure Grant Fund," which shall serve as the repository of all monies used to support the grant program.

b. All grants provided under section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be issued from monies held in the fund.

4. Notwithstanding any provision of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) or any other law to the contrary, the authority may adopt, immediately upon filing with the Office of Administrative Law and no later than the 90th day after the effective date of this act, such rules and regulations as the authority deems necessary to implement the provisions of this act, which regulations shall be effective for a period not to exceed 12 months. The regulations shall, at a minimum, set forth the requirements for application submissions, the criteria for application selections, and the permitted uses of grant proceeds. The regulations shall thereafter be amended, adopted, or readopted by the authority in accordance with the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).

5. Subject to the availability of federal funds provided or made accessible to the State for the expansion and improvement of broadband telecommunications infrastructure or the provision of broadband telecommunications service pursuant to the federal "Infrastructure Investment and Jobs Act," Pub.L.117-58, $2,500,000 from such federal funds shall be appropriated to the New Jersey Economic Development Authority for deposit into the "Rural Broadband Infrastructure Grant Fund," established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).

6. This act shall take effect immediately.

STATEMENT

This bill establishes the "Rural Broadband Infrastructure Grant Program" (grant program) within the New Jersey Economic Development Authority (authority) for the purpose of providing grants to qualified applicants for the expansion and improvement of broadband telecommunications infrastructure and the provision of broadband telecommunications service in rural areas of the State. The bill requires the authority, in conjunction with the Board of Public Utilities (board) to establish and administer the grant program. In order to qualify for the grant program, a qualified applicant is required to submit certain information to the authority and demonstrate to the authority that certain criteria is met.

As defined by the bill, "qualified applicant" means a corporation, limited liability company, partnership, business entity, non-profit organization, political subdivision, or any other entity in the State that is authorized to construct or repair broadband telecommunications infrastructure or provide broadband telecommunications service within the State.

Under the grant program, the authority may approve applications for the grant program on a rolling basis, subject to the availability of funds. However, the authority would be required to prioritize applications that address unserved areas. As defined by the bill, "unserved area" means an area in which customers are without broadband service at speeds of at least 25 megabits per second download and 3 megabits per second upload. Upon approval of an application, the authority would provide a grant, in the amount determined by the authority, to the qualified applicant to support the expansion and improvement of broadband telecommunications infrastructure and the provision of broadband telecommunications service in rural areas of the State.

The grants provided under the grant program would be made to a qualified applicant in an amount not to exceed $75,000 per project, provided the qualified applicant would be required to contribute private capital, in an amount not less than 25 percent of the value of the grant, to finance the proposed project. To the extent permitted under federal law, a qualified applicant may use any monies received from the federal "American Rescue Plan Act of 2021," to support the required contribution of private capital. Specifically, the bill requires these grants to be utilized for the acquisition, construction, equipment, and site-preparation costs associated with the deployment of broadband telecommunications infrastructure, as well as any other purpose related to the provision of broadband telecommunications service in rural areas of the State.

The bill requires the authority to prepare and submit a report on the "Rural Broadband Infrastructure Grant Program" to the Governor and the Legislature within 12 months of the approval of the program's first qualified applicant and to make the report available on the authority's Internet website. The report would be required to include the number of qualified applicants that applied for the grant program, the number and names of the qualified applicants approved for the grant program, the total number of grants distributed, the amount received per qualified applicant, and any other information the authority determines necessary to evaluate the progress of the grant program.

The bill also requires the authority to establish and maintain a non-lapsing revolving fund, which would be known as the "Rural Broadband Infrastructure Grant Fund." The revolving fund would serve as the repository of all monies used to support the grant program.

Finally, the bill appropriates $2.5 million in federal funds to the authority for deposit into the "Rural Broadband Infrastructure Grant Fund." Specifically, this appropriation would be supported by certain federal monies provided to the State pursuant to the federal "Infrastructure Investment and Jobs Act."