Legislative Report 2/20/2019 - Broadband Key to Economic Development

Vermont's economic growth has been nearly stagnant pretty much since the turn of the century.  Looking at employment statistics since 1999 we can see that Vermont's employment numbers have remained fairly level at roughly 340,000 even during the 2008-2010 recession. On the other hand, they haven't grown since the recession either. While Chittenden County has experienced growth, the rest of Vermont has not.

The factors affecting the overall economy in Vermont are many, and the interaction among them is complex.  I am not attempting to address the issue comprehensively here. However, the House Committee on Energy & Technology is looking at one aspect of the challenge -- how the limited access to high speed internet affects Vermont's economy.  For the past two weeks we have heard testimony from Vermont's telephone companies, cable providers, community broadband companies, small businesses, municipalities, and the farming community which utilizes access to the internet for GPS controlled tilling, fertilizing and harvesting. One thing is clear: outside of Chittenden County and city centers, Vermonters' internet speeds are slo-o-ow. While most Vermonters are able to get DSL with speeds of 4 Mbps (Megabits per second), many in more remote locations have only dial-up. The federal standard for satisfactory speeds is 100 Mbps, which requires cable or fiber connectivity. As we become more of an information-based economy, access to high-speed internet is essential for economic growth. So, the question becomes, how do we achieve this in Vermont?

The limiting factor when it comes to building high-speed broadband is cost per connection.  In rural areas where customers are relatively far apart, the investment required to run miles of cable for few connections is prohibitive. Wireless connection is possible, but the wireless transmitters require a fiber or cable connection, and Vermont's terrain often limits the effectiveness of those devices. Some communities have formed organizations called Connectivity Union Districts (CUDs) that are non-profit entities that aggregate investments from several municipalities to build independent fiber networks to serve the member communities.  There are several in Vermont including EC Fiber in the Connecticut River Valley and Kingdom Community Fiber (KCF) in the Northeast Kingdom.  KCF has been given permission from the state of Vermont to connect to an existing fiber network owned by the state. State connectivity funds will be used to install the connection interfaces at various locations that will be leased to KCF to build fiber networks in communities running from St. Johnsbury north and west to Highgate.

  

The Energy & Technology Committee is now working on legislation that will encourage further development of fiber networks throughout rural Vermont. The 2 percent VT USF charge on our phone bills supports the E-911 system, the Lifeline phone access program for seniors, and the TTY service for hearing impaired persons. What is left over from those revenues is used to support the Connectivity Initiative Fund.  Governor Scott has proposed a $1M infusion to the fund to increase broadband.  We believe that we can do better. We are working on a bill that, in addition to the Governor's proposal, will increase the USF charge to 2.5 percent with the additional revenues dedicated to connectivity.  This would amount to a 50 cent increase on a $100 phone bill.  We also hope to benefit from additional federal dollars as a result of the recently passed federal Farm Bill.  Back in the 1950s Vermont made a concerted investment in getting electricity out to the last mile. Broadband is the 21^st century equivalent to that effort.  It's a key ingredient necessary for growing Vermont's economy.

I am very happy to have been able to meet with constituents during my “office hours” at the Charlotte Library and most recently at Spear's Store in East Charlotte. My thanks to both venues for their hospitality. The next “office hours” opportunity will be announced on Front Porch Forum.   I welcome your emails (myantachka.dfa@gmail.com), phone calls (802-233-5238), or in-person contacts.

Legislative Report 2/21/2018 - Energy & Technology

The Energy & Technology Committee (E&T) on which I serve has three areas of responsibility over Vermont's infrastructure: energy, telecommunications, and information technology (IT). In the six weeks of this session, we've been pretty active in each of these areas.

Energy

The House has already passed two of our bills dealing with energy this session. H.410 extends Vermont's appliance efficiency standards. A similar bill enacted last year adopts the current federal appliance efficiency standards for Vermont if the current federal Environmental Protection Agency decides to rescind them. Those standards have saved consumers billions of dollars in energy costs and offset millions of tons of CO2 emissions. With H.410 Vermont will adopt additional standards for products like commercial kitchen items, air compressors, computers and computer monitors, and water appliances like faucets, showerheads and toilets. These include standards developed by the U.S. Department of Energy, those adopted by the Energy Star program and other industry standards that manufacturers have already adopted.

The second bill, H.616, authorizes the Burlington Electric Department to use the waste heat from the McNeil biomass electric generation facility for a district heat project that will pump hot water through highly efficient pipes to the UVM Medical Center, the UVM campus and the new Burlington Center redevelopment project. This project will not only increase the plant's efficiency but will offset greenhouse gas emissions by replacing fossil fuels used for heating.

E&T also voted to require that the Agency of Natural Resources use the $18.7M from the Volkswagen settlement solely for electric vehicle (EV) charging infrastructure and for conversion from fossil fuel vehicles to EVs as allowed under the terms of the settlement.

Telecommunications

Again, two of our bills dealing with telecommunications were passed by the House. Both seek to get high speed broadband out to rural areas where population density is too low to justify private investment. H.581 specifies that Connectivity Initiative grants funded by the Vermont Universal Service Fund (USF) can only be used for new broadband infrastructure projects and not for ongoing operational expenses. H.582 would increase the USF fee from 2% today to 2.5% starting in 2018 and ending in 2022. While this will increase the cost of a $100 phone bill by 50 cents per month, it will raise $1.5M annually and will be allocated to the Connectivity Initiative to expand broadband in rural areas.

Information Technology

Last year the Agency of Digital Services (ADS) was created to consolidate the state government's IT infrastructure and services which were distributed throughout the agencies. Our committee has been reviewing the status of the reorganization and the IT projects the agency now oversees as well as the forward focus of the agency. To date, the reorganization is proceeding well with development personnel working in the same agencies and departments as before while reporting directly to ADS. The highest priority of ADS now is cybersecurity. In the last 12 months more than 4 million cyber attacks on state systems were detected. Plans are in place to partner with Norwich University to identify weaknesses and strengthen monitoring and remediation.

E&T has also been investigating steps the state can take to enforce net neutrality within our borders. Net neutrality is the principle that Internet Service Providers (ISPs) should enable access to all content and applications regardless of the source, and without favoring or blocking particular products or websites. The recent decision by the Federal Communications Commission to reverse Obama administration rules ensuring net neutrality puts content providers in the position of having to pay tolls to allow users to access their products thereby disadvantaging smaller content providers. While the Governor recently issued an executive order requiring state agencies and departments to write net neutrality into contracts with ISPs, E&T will continue investigating this subject in hopes of developing even stronger net neutrality rules for consumer protection.

As always, I can be reached by phone (802-233-5238) or by email (myantachka.dfa@gmail.com).