Rio Blanco officials say BEAD grant application was not selected; staff to present plan to use ARPA funds for broadband upgrades

Rio Blanco County staff told the Board of County Commissioners on Jan. 20 that the county’s application to Colorado’s BEAD (Broadband Equity, Access, and Deployment) grant program was not selected in round 1, and recommended reallocating grant-match funds already on hand to improve the county’s existing broadband network.

County broadband manager Erica (last name not specified), appearing by video, said the Colorado Broadband Office notified the county on Jan. 19 that Rio Blanco was “not selected for round 1 funding.” She said the office had not told applicants that there would be more than one round, and that the state received far more applications than available dollars. “They received over $2,000,000,000 in applications” for roughly $826 million the state was administering, Erica said. She added the BEAD application process required performance bonds and a 25% match, requirements she described as burdensome for a government applicant.

Why it matters: County broadband staff said the technical and financial obligations in the BEAD round as written pose substantial upfront cost and risk to the county. Staff recommended not committing additional county money to a second round without further analysis, and instead suggested using ARPA and other previously‑earmarked funds to invest directly in the county’s network to preserve and improve service for current subscribers.

Details from the meeting

Erica described two major concerns with the BEAD round 1 process: eligibility and the financial terms. She said the county would have been required to file with the Colorado Public Utilities Commission and obtain performance bonding for projects with multi‑million dollar values. “We would have to secure the funds of that,” she said, describing the bonding requirement as money that must be paid out before any reimbursement or grant award.

Commissioners and staff discussed the uncertainty over whether further federal rounds will be funded, and several participants said federal policy could change. Commissioner (last name) asked whether the federal money for round 2 was secure; staff responded that it is federal money administered by the state and that eligibility and availability could change. Erica said she had spoken with staff at the Colorado Broadband Office and with consultants who had prepared prior applications; she said the application process requires substantial consultant and engineering time.

County recommendation and next steps

Erica proposed that the county reallocate the match funds already identified for BEAD — funds that originate from federal COVID relief (ARPA/LATCF) — to internal network improvements instead of pursuing round 2 without clearer rules. “My first assessment is … they do not have enough funds to bring broadband to all of the addresses … they already know that,” Erica said, adding that the county’s own network hardware and planning can be improved more quickly and with less risk.

Eric (last name not specified), who leads the county’s broadband/IT enterprise, supported the recommendation, saying the county has “more flexibility” if it directs those funds to internal upgrades. He said a prioritized list of equipment and projects is needed because some items have long lead times and must be ordered sooner rather than later.

Outcome and formal direction

Erica told commissioners she would prepare a project presentation for the next board meeting showing how the county could spend the earmarked funds to strengthen existing broadband infrastructure. Commissioners agreed to that course: staff will return with a detailed project plan and budget recommendations at the next regular meeting so the board can decide whether to reallocate the ARPA‑match funds for internal upgrades rather than pursue round 2 of BEAD under current rules.

Ending

Staff emphasized the county’s intent to keep broadband service operating and sustainable while avoiding the high upfront bonding and match risks described in the BEAD round 1 rules. The board asked staff to return with a prioritized plan and budget at the next meeting so it can make an informed decision about using ARPA/allotted funds for internal network improvements.