BILL ANALYSIS Ó SENATE COMMITTEE ON TRANSPORTATION AND HOUSING Senator Jim Beall, Chair 2015 - 2016 Regular Bill No: AB 1549 Hearing Date: 6/14/2016 ----------------------------------------------------------------- |Author: |Wood | |----------+------------------------------------------------------| |Version: |5/16/2016 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Randy Chinn | |: | | ----------------------------------------------------------------- SUBJECT: Department of Transportation: state highway rights-of-way: fiber optic cables DIGEST: This bill requires Caltrans to maintain an inventory of broadband conduit that it owns, collaborate with broadband companies during construction projects, and install broadband conduit in its construction projects for potential use by broadband companies. ANALYSIS: Existing law: 1)As set forth in a 2006 Governor's Executive Order (S-23-06), created the California Broadband Task Force to facilitate widespread deployment of state-of-the-art telecommunications technology. The Executive Order specifically requires, in part: a) The Business, Transportation, and Housing Agency (BTH) to establish a database of current and prospective projects for deploying broadband. The database is to be available for use by broadband providers, state entities, and municipalities. b) State agencies to place broadband conduit in their infrastructure projects for use by multiple government AB 1549 (Wood) PageB of? entities and broadband providers. c) State agencies to expedite permitting for broadband providers' requests for access to rights-of-way. 2)Generally authorizes Caltrans to lease to public agencies or private entities the use of areas above or below state highways, subject to any reservations, restrictions, and conditions that the department deems necessary to ensure adequate protection of the safety and the adequacy of highway facilities. 3)Establishes the California Broadband Council to promote broadband deployment throughout the state and, to that end, improve coordination among state agencies. This bill: 1)Requires Caltrans to maintain an inventory of all broadband conduit that it owns, is located within the state highway rights-of-way, and is installed on or after January 1, 2017. Such inventory shall be made available upon request to verified companies or organizations working on broadband deployment. 2)When designing construction projects, Caltrans shall notify the verified companies or organizations of those projects to encourage collaborative broadband installations. If no verified company or organization chooses to collaborate and no broadband conduit previously exists, Caltrans shall install an empty conduit for potential use by others. COMMENTS: 1)Purpose. The United States compares poorly to other nations in the speed, quality, and cost of broadband service<1>. California is no different. That's largely because public policy is caught in the middle. It has not supported a single regulated broadband provider who would benefit from the --------------------------- <1> Federal Communications Commission: International Broadband Data Report, August 13, 2012 AB 1549 (Wood) PageC of? economies of scope and scale, as is the case in other countries. And the competition that public policy has encouraged has been too weak to result in high-quality, high-speed service at reasonable rates. This problem is of course worse in rural areas where the demand for broadband service isn't as concentrated as in urban and suburban areas. 2)Not for lack of effort. Inadequate and costly broadband service has been a longstanding problem for which California has implemented many potential solutions. One of the most significant efforts resulted from a 2006 Executive Order from Governor Schwarzenegger. That order required the then-BTH to encourage public/private broadband partnerships, required all state agencies to place broadband conduit in their infrastructure projects if there is sufficient demand, and created the California Broadband Task Force. The Task Force recommended that: a) high speed broadband infrastructure be built out to all Californians b) model permitting standards be developed and collaboration among broadband providers be encouraged c) use and adoption of broadband and computer technology be increased This bill redoubles the broadband buildout effort. The fundamental assumption in the bill is that landline broadband infrastructure deployment can be done more quickly and inexpensively when done in conjunction with Caltrans construction projects. This may well be true, and was one of the bases for the 2006 Executive Order. As a result of the 2006 Executive Order, Caltrans created a program to notify telecommunications providers of projects in which they could install their fiber optic facilities during the Caltrans construction process. No provider participated in any projects and consequently Caltrans decided to discontinue the program in 2014. That program was limited to telecommunications companies licensed by the California Public Utilities Commission. Caltrans has an existing program for collaboration with companies that want to use their facilities for wireless broadband purposes. This bill deals with wireline broadband. AB 1549 (Wood) PageD of? 1)What inventory? The bill requires Caltrans to maintain an inventory of broadband conduit owned by the department. The purpose of the inventory is to make it convenient for potential partners to utilize Caltrans facilities. In order to further that purpose the author and committee may wish to consider specifying that the inventory shall be on a centralized database. 2) Who? The bill uses the term "verified companies or organizations," which is undefined. The purpose of the bill is to encourage broadband deployment by existing telecommunications providers, local governments, and non-profit consortiums. The author and committee may wish to consider clarifying the definition. 3)When? The bill calls for Caltrans to notify broadband companies during the design phase of construction projects. The notion is that freeways provide convenient, and sometimes the only, physical connection between population centers, so as Caltrans is fixing the road between city A and city B, other companies should be permitted to install their conduit and fiber optic cables in the trench for a fee, thereby sharing costs. If no company chooses to participate, then Caltrans shall install an empty conduit which would be available to others. Rather than notifying companies, the author and committee may wish to consider instead requiring Caltrans to post a notice on their website, which will reduce costs. Also, it may not be appropriate to have Caltrans install conduit in all its construction projects. That's because many, if not most, Caltrans construction projects don't require trenching, such as road maintenance or repaving. In those cases there would be no place to install the broadband conduit. And some construction projects are inappropriate for conduit (e.g., building an onramp, repairing a culvert). Instead of requiring Caltrans to notify companies and installing broadband conduit on all construction projects, the author and committee may wish to consider requiring this only for longitudinal projects that span at least two intersections for which a trench suitable for broadband conduit is being dug. Related Legislation: AB 1549 (Wood) PageE of? S-23-06 Governor's Executive Order: Twenty-First Century Government: Expanding Broadband Access and Usage in California Assembly Votes: Floor: 78-0 Appr: 17-0 Trans: 16-0 FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No POSITIONS: (Communicated to the committee before noon on Wednesday, June 8, 2016.) SUPPORT: California Center for Rural Policy Corporation for Education Network Initiatives in California Placer County Board of Supervisors Rural County Representatives of California Tellus Venture Associates OPPOSITION: None recieved -- END --