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POLICY RECOMMENDATIONS Economic and Workforce Health
Policy Recommendation 2:
States can consider amending state laws to allow electric utilities and electricity distribution cooperatives to provide broadband service.
The Economic and Workforce Health Subcommittee approved this recommendation in support of amending laws to facilitate expanding broadband services.
State Examples
Mississippi’s Senate Bill 2798 (2021) allows for rate-regulated electric utilities to permit broadband providers to use the electricity delivery system to provide broadband services, regulate easements and allow certain entities to construct fiber-optic infrastructure on existing public utility rights-of-way.
Kentucky House Bill 320 (2021) permits regulated electric cooperatives to facilitate the provision of broadband service.
Additional Resources
States Considering Range of Options to Bring Broadband to Rural America — https://www.pewtrusts.org/en/research-and-analysis/articles/2022/03/29/states-considering-range-of-options-to-bringbroadband-to-rural-america
Rural Electric Co-ops are the Fastest Growing Group of Broadband Providers — https://www.fiercetelecom.com/broadband/ruralelectric-co-ops-are-fastest-growing-group-broadband-providers
The Council of State Governments State Leader Policy Brief: Broadband — https://web.csg.org/csghealthystates/wp-content/ uploads/sites/23/2022/05/Healthy-States-National-Task-Force-PolicyBrief-Broadband.pdf
High-speed internet is beyond the reach of many individuals and communities throughout the U.S. The Federal Communications Commission estimates that 14.5 million rural and tribal Americans do not have access to fixed broadband at the minimum threshold of 25/3 megabits per second (Mbps).1
Endnotes
1 Federal Communications Commission. (n.d.). Eighth Broadband Progress Report. Retrieved Oct. 13, 2022, from Broadband Progress Reports: https://www.fcc.gov/reports-research/reports/broadband-progress-reports/eighth-broadband-progress-report.
2 The White House. (May 9, 2022). Fact Sheet: President Biden and Vice President Harris Reduce High-Speed Internet Costs for Millions of Americans. Retrieved Oct. 13, 2022, from Briefing Room: Statements and Releases: https://www.whitehouse.gov/briefing-room/ statements-releases/2022/05/09/fact-sheet-president-biden-and-vice-president-harrisreduce-high-speed-internet-costs-for-millions-of-americans/.
In May 2022, the Biden administration developed the Affordable Connectivity Program to reduce internet service costs by up to $30 per month generally, and $75 per month on tribal lands.2 This initiative will cut internet costs across the U.S. But there exists an opportunity for states to expand access further by amending their laws to allow local utilities and electric distribution cooperatives to provide broadband services.
These providers already service rural and tribal communities and may have excess capacity for existing fiber networks and the ability to build the necessary infrastructure.
