The New Jersey Board of Public Utilities (NJBPU) is committed to expanding affordable, high-speed internet access across the state. In anticipation of the upcoming Notice of Grant Funding Availability  from the New Jersey Office of Broadband Connectivity, we have prepared this guidance to help eligible entities develop competitive proposals for broadband infrastructure projects.

This guidance, which may be subject to updates, revisions, or modifications as needed, aims to align with federal standards while providing flexibility as permitted by law.

U.S. Treasury expects Capital Projects Fund grant funding for Broadband Infrastructure Projects. The COVID-19 public health emergency highlighted that access to high-quality internet can enable work, education, and health access, and that individuals and communities that lack affordable access to such high-quality internet are at a marked disadvantage. Investing in broadband for communities sensitive to or that have historically experienced these inequities will be critical for improving digital equity and opportunity, especially in the case of communities that currently lack access to the affordable, reliable, high-quality broadband internet that is necessary for full participation in school, healthcare, employment, social services, government programs, and civic life.

The Capital Projects Fund empowers recipients to identify and prioritize communities with critical needs in work, education, and health monitoring that can be addressed through targeted broadband infrastructure projects. To streamline project planning, the Office of Broadband Connectivity has identified and categorized priority areas for the NJBIDE program. Explore these areas through our Broadband Data Collection Interactive Map to inform your project proposals and help bridge the digital divide in New Jersey.

We encourage all eligible entities to actively participate in this critical initiative to bridge the digital divide and empower New Jersey communities with reliable broadband infrastructure.

1. Universal Connectivity: Achieve 100% broadband connectivity for all unserved locations in the state by the end of 2026.
2. Affordability: Ensure high-speed internet access is affordable for all residents, regardless of income or location.
3. Community-Led Sustainability: Empower communities to co-create and implement sustainable broadband solutions at a regional scale.
4. Public-Private Collaboration: Leverage public-private partnerships to maximize the scale and public benefit of broadband investments.
5. Transparent, Data-Driven Decisions: Employ a consistent, transparent process based on robust data to guide all decision-making.

• Expanding broadband infrastructure: Funding the deployment of new broadband networks and improving existing ones in underserved areas.
• Promoting affordability: Supporting programs and initiatives that make broadband service affordable for low-income households and businesses.
• Encouraging adoption: Raising awareness about the benefits of broadband and providing resources to help individuals and businesses get connected.
• Fostering digital equity: Ensuring that all New Jersey residents, regardless of their location or socioeconomic status, have access to high-quality broadband service.

The NJBIDE program is still in its early stages, and its specific principles may evolve. However, the general goals and priorities outlined above provide a framework for understanding how the program aims to expand broadband access in New Jersey.

Under the Coronavirus Capital Projects Fund (CPF) for broadband project deployment, the primary eligible entities are: Co-operatives, for-profit providers, local government units, non-profits, and utilities.

Please note that while the following entities are generally eligible, the specific requirements may vary depending on the details within the grant funding availability notice and any additional guidance provided by the New Jersey Board of Public Utilities (NJBPU) or the Office of Broadband Connectivity. The program aims to be inclusive, and the NJBPU may exercise flexibility in determining eligibility to ensure the most impactful projects are supported.

You can find the official eligibility criteria and detailed information about the NJBIDE program on the NJ Office of Broadband Connectivity Capital Projects Fund website or in the relevant grant funding availability documents when they are released.

The U.S. Treasury says in their guidance that for a Capital Project to be an eligible use of funding grants under the Capital Projects Fund, each project must be sure to include the following criteria:

1. Invests in capital assets designed to directly enable work, education, and health monitoring.
2. Addresses a critical need that resulted from or was made apparent or exacerbated by the COVID-19 public health emergency.
3. Addresses a critical need of the community to be served by it.

The Capital Projects Fund (CPF) supports the construction and deployment of broadband infrastructure designed to deliver reliable, symmetrical download and upload speeds of 100 Mbps upon completion.

The U.S. Treasury encourages projects that:

• Achieve last-mile connections: Bringing high-speed internet directly to homes, businesses, and community institutions.
• Prioritize fiber-optic infrastructure: Investing in future-proof technology where feasible.
• Involve community-oriented providers: Partnering with local governments, non-profits, and cooperatives known for their commitment to serving entire communities.
• Address affordability: Ensuring that cost is not a barrier to full internet use by including at least one low-cost service option with sufficient speeds for multiple users to simultaneously telework and engage in remote learning.

Flexibility for High-Cost Areas:

In areas where achieving 100 Mbps symmetrical speeds is impractical due to geography, topography, or excessive cost, projects can be designed to reliably meet or exceed 100 Mbps download speeds and between 20 Mbps and 100 Mbps upload speeds, with scalability to 100 Mbps symmetrical in the future.

Eligible Project Costs:

• Pre-project costs: Expenses directly tied to an eligible broadband infrastructure project, such as planning, engineering, and utility pole replacement/placement, are eligible for funding.
• Construction and deployment costs: Expenses related to the actual construction and deployment of the broadband infrastructure.

Ineligible Uses:

Projects that do not directly enable work, education, or health monitoring, or primarily benefit private entities or individuals, are not eligible for CPF funding.

Additional Considerations:

• Complementary Funding: The CPF is designed to complement, not replace, other funding sources like the Coronavirus State and Local Fiscal Recovery Funds (SLFRF).
• Equity and Disadvantaged Communities: Projects that promote equity and serve communities disproportionately impacted by the pandemic are encouraged.
• Strong Labor Standards: The U.S. Treasury encourages the use of strong labor standards, including project labor agreements and community benefits agreements.
• Community-Led Networks: Projects involving community broadband networks, particularly those partnering with non-profits, cooperatives, or utilities utilizing an open access model, are prioritized. Project plans should demonstrate long-term sustainability.
• Regionalization and Scalability: Projects demonstrating the ability to regionalize and scale to 1 Gbps symmetrical speeds while maintaining affordability will be prioritized.
• Middle-Mile Projects: While the focus is on last-mile connections, middle-mile projects with commitments to support new and/or improved last-mile service are also eligible.

Important Note for Local Governments:

Local government units intending to directly or indirectly undertake a broadband project should review P.L. 2007, c. 191, and P.L. 2018 c. 90 to determine if these laws apply to the project and whether they require Local Finance Board or Treasury approval.

The Office of Broadband Connectivity will identify priority unserved areas, but applicants must provide a thorough explanation of the specific need for broadband infrastructure in those communities. This includes demonstrating challenges related to access, affordability, reliability, and/or consistency of existing service.

Defining Affordability

While the Treasury's Capital Projects Fund (CPF) guidance offers flexibility in defining affordability thresholds, applicants must clearly outline their assessment process and consult with the community. This includes publishing a description of their methodology and reporting pricing data to the Treasury for program monitoring.

Essential Requirements

• Low-Cost Option: All broadband projects must include at least one low-cost service option with sufficient speeds for multiple users to telework and engage in remote learning simultaneously.
• Federal Program Participation: Service providers for completed projects must participate in federal programs like the FCC's Affordable Connectivity Program (ACP) that subsidize broadband access for low-income consumers. If no such program exists, the provider must offer an equivalent affordability program.
• Service Standards: Projects must maintain service levels that meet health-based standards, account for climate resilience, and enable households to work or attend school remotely.

Additional Considerations:

• Applicants are encouraged to engage with the community on affordability issues throughout the project's development.
• While not mandatory, projects are encouraged to offer at least one low-cost option without data caps at speeds sufficient for multiple users to simultaneously telework and engage in remote learning.

Risk Assessment:

Applicants must conduct a comprehensive risk assessment of their proposed project. This assessment should identify potential financial, technical, environmental, and other risks, along with detailed strategies to mitigate them.

Compliance

All projects must adhere to applicable federal and state laws, regulations, and guidelines.

Reporting Requirements

Recipients of CPF funds must submit regular progress reports to the OBC. These reports should detail project milestones, expenditures, performance metrics, and how the project is achieving its intended outcomes. The OBC will conduct regular monitoring and oversight to ensure compliance with grant terms and conditions.

Additional Guidance:

• Ownership of Infrastructure: For the duration of the Federal Interest Period, if the infrastructure is owned by an Internet Service Provider (ISP), it must be held in trust for the beneficiaries of the CPF project. Any federally-owned real property or equipment used by the ISP must comply with 2 CFR 200.312. [Additional state requirements may apply.]
• Permitting: The U.S. Treasury has developed an environmental checklist to assist recipients in ensuring compliance with environmental laws. Project costs may include expenses for environmental reviews. Grantees must comply with all applicable environmental regulations and retain necessary documentation.
• Cybersecurity: Cybersecurity modernization for existing and new broadband infrastructure is an eligible use of funds. However, investments must comply with federal laws, including prohibitions on using federal funds for certain telecommunications equipment from designated entities.
• Complementary Funding: CPF funding should complement, not replace, other funding sources like the Coronavirus State and Local Fiscal Recovery Funds (SLFRF).
• Equity Focus: Projects that prioritize equity and address the needs of disadvantaged communities disproportionately impacted by the pandemic are strongly encouraged.

Administrative Processes:

• Cost Share: While not required, cost sharing is encouraged.
• Cost Review: Costs will be reviewed, and reimbursement testing will be conducted, requiring invoices and proof of payment.
• Period of Performance: The project must be completed by the previously indicated date or December 31, 2026, whichever is earlier. Certification of completion is required at the end of the performance period.
• Progress Monitoring: Project progress will be monitored throughout the performance period.
• Payment Review: Payments may be delayed or rejected if substantial progress does not align with funding received.
• Quarterly Status Reporting Changes: Broadband projects must submit addresses associated with their project, corresponding to planning or as-built network engineering documents.

By following this guidance, eligible entities can develop strong proposals that align with the goals of the New Jersey Coronavirus Capital Projects Fund and contribute to a more connected and equitable future for all residents.