This week, the California Public Utilities Commission (CPUC) accepted RCRC’s formal comments on its Loan Loss Reserve (LLR) staff proposal. This phase of the California Advanced Services Fund proceeding (R. 20-08-021) sets forth the proposed structure for the $750 million LLR program which was established last year through Senate Bill 156. In RCRC’s joint filing with Common Sense, Media Alliance, and the California Community Foundation, comments outline foundational issues and associated concerns with the staff proposal: primarily that the draft proposal does not meet the intended purpose as envisioned by Senate Bill 156. Specifically, the LLR program is intended to provide local agencies the ability to secure broadband funding through credit enhancements such as loan loss and debt service reserve coverage. Provisions limiting the coverage amount of the loan loss reserve and requiring local agencies to show three years of financial records, make it unlikely the program will benefit municipal projects in high-cost rural areas.
The CPUC will now review all comments submitted to the agency and release a proposed decision for public review and another round of comments. For more information, contact RCRC Senior Policy Advocate Tracy Rhine.