BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 1549 (Wood) - Department of Transportation: state highway rights-of-way: fiber optic cables ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 30, 2016 |Policy Vote: T. & H. 10 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 1549 would require the Department of Transportation (Caltrans) to maintain a database that contains an inventory of all department-owned broadband conduits installed in state highway rights-of-way after January 1, 2017, and make that information available to companies working on broadband deployment. The bill would also require the installation of broadband conduit on certain highway construction projects, either by the department or through collaboration with other companies. Fiscal Impact: Estimated one-time Caltrans information technology (IT) costs of approximately $915,000 for software, hardware, and staffing to support the database and website components, as well as meeting all Department of Technology requirements for IT AB 1549 (Wood) Page 1 of ? project approvals. (State Highway Account) Additional one-time Caltrans IT costs of approximately $310,000 to implement additional security measures to secure and encrypt information regarding fiber-optic facility installations, and $27,500 in ongoing IT maintenance costs. There could be unknown additional staffing impacts for evaluation and monitoring of security measures. (State Highway Account) Unknown, major project cost increases, likely in the millions annually, for Caltrans to install broadband conduits on specified projects where there are no existing conduits in a project area and no broadband deployment companies or organizations offer collaboration. (State Highway Account or federal/local/bond funds) Background: Existing law 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. Existing law also establishes the California Broadband Council to promote broadband deployment throughout the state and improve coordination among state agencies for that purpose. A 2006 Governor's Executive Order (S-23-06) established the California Broadband Task Force to facilitate widespread deployment of state-of-the-art telecommunications technology. The Executive Order specifically requires, in part: The Business, Transportation, and Housing Agency 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. State agencies to place broadband conduit in their infrastructure projects for use by multiple government entities and broadband providers. State agencies to expedite permitting for broadband providers' requests for access to state rights-of-way. As a result of the 2006 Executive Order, Caltrans created a program to notify telecommunications providers of projects in AB 1549 (Wood) Page 2 of ? which they could install their fiber optic facilities during the Caltrans construction process. No provider participated in any projects and consequently Caltrans discontinued 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. Proposed Law: AB 1549 would require Caltrans to maintain an inventory on a centralized database of all department-owned broadband conduits that house fiber optic communications cables that are located on state highway rights-of-way and installed on or after January 1, 2017. The bill requires Caltrans to make that information available to specified companies or organizations working on broadband deployment, upon request. AB 1549 would also require Caltrans to notify those companies or organizations of department-led highway construction projects that are parallel to the highway, span at least two overpasses, and involve construction methods that are suitable for broadband conduit installations. The notification must come during the design phase of the project by posting information about suitable projects on the Caltrans website. The bill authorizes those companies or organizations to collaborate with Caltrans to install broadband conduits, and absent that collaboration, requires Caltrans to install broadband conduit if none currently exists in the project area. Staff Comments: Caltrans constructs approximately 600 projects each year, but there is no way to accurately predict how many projects would be impacted by the requirements in the bill for Caltrans to install broadband conduits (those meeting the specified design criteria in areas where no broadband conduits currently exist and there is a lack of collaborative interest from other companies or organizations). Depending on project variables, costs to install broadband conduits can range from AB 1549 (Wood) Page 3 of ? $185,000 to $290,000 per mile, not including additional staffing costs for design work or to ensure quality assurance oversight of installations during construction. The additional construction component could also extend project completion timelines, the fiscal impact of which is unknown. -- END --