Bill would let Public Works Board issue loans for broadband repair and replacement; rural providers and ports back the change

Senate Bill 51-88 would authorize the Public Works Board’s broadband program to provide loans to fund repair and replacement of middle‑ and last‑mile broadband infrastructure, including projects that restore service after natural disasters or unforeseen events.

Alicia Kinney Clawson, staff to the committee, briefed the bill and said under the proposal the Board would prioritize projects where households would otherwise become unserved if repair or replacement did not occur. "Loans are permitted for the purposes of repair and replacement of middle and last mile broadband infrastructure," Clawson said, and the board must consider the number of households impacted when evaluating applications.

Supporters at the hearing included nonprofit and public broadband operators, public utility districts and ports. Mary Mitchellski and Mike Henson of NOANET described the Public Works Board as an experienced infrastructure asset manager and said access to reliable low‑interest loan financing would allow providers to respond when commercial lenders refuse loans under extreme conditions. Mike Henson said small rural providers "budget these events each year" but sometimes encounter costs that exceed reserves or when private lenders will not lend; the proposed loan authority would provide a state‑level backstop.

Public utility districts and ports supported the change as part of a shift from an "expansion" mindset to long‑term maintenance as federal expansion funding arrives. Scott Richards of the Washington Public Utility Districts Association said the state’s once‑in‑a‑generation BEAD‑era expansion will soon give way to maintenance needs and that low‑interest loans for repairs are common in other Public Works Board programs for water and wastewater.

Questions from senators focused on whether the loan authority would divert limited funds from build‑out or expansion. Sponsor Senator Lisa Wellman, a former Public Works Board member, said the bill simply provides the board with discretion; she told the committee she trusts the board to use program funds prudently and to prioritize projects as appropriate.

No committee votes were recorded in the transcript. Supporters urged that a loan tool would help rapidly restore service in rural communities after wildfire or other disasters and provide an affordable financing option for smaller entities that lack large rate bases or reserves.