Assembly oversight hearing presses CPUC, Department of Technology and Caltrans on broadband rollout, permitting and funding

Assemblymember Tasha Boerner Horvath, chair of the California State Assembly Communications and Conveyance Committee, opened an oversight hearing on the state's broadband programs, saying the panel's members "represent the voices of nearly 5,000,000 Californians" and that the committee convened to review implementation of last-mile grants, the statewide middle-mile build, and digital equity programs.

The hearing brought agency leaders before the committee for a status update on how California is spending a generational mix of state and federal dollars intended to close the digital divide. Testifying were Commissioner John Reynolds, Rachel Peterson and Anna Maria Johnson from the California Public Utilities Commission (CPUC); Liana Bailey Crimmins, director and State Chief Information Officer at the California Department of Technology (CDT); Mark Monroe and Scott Adams from CDT's broadband team; and Mike Keever, chief deputy director at Caltrans.

Why it matters: lawmaker attention centered on the scale of the investment, upcoming program deadlines and the practical steps needed to get fiber built and "lit" so unserved Californians can actually subscribe. Committee members warned that permitting or administrative delays could put projects at risk and asked agencies to deliver clearer, regularly updated milestones.

CPUC briefing and numbers

Commissioner John Reynolds described recent CPUC actions on broadband awards and universal-service programs and listed the agency's priorities: public-safety oversight, universal service and broadband deployment and adoption. Reynolds said the CPUC had approved awards in its Federal Funding Account (FFA) program "in a hundred and 08 projects across 51 counties totaling over a billion dollars that will directly benefit the lives of 2,000,000 Californians." He added, "These projects will connect more unserved and underserved communities in our state to the statewide middle mile broadband network with fiber." The CPUC presentation also noted that the agency had made roughly $1.1 billion in FFA awards (108 projects) and that those grants include requirements intended to promote low-cost plans, Lifeline participation and other affordability measures.

CPUC deputy executive director Anna Maria Johnson told the committee the agency manages multiple programs, including the California Lifeline program and the California Advanced Services Fund (CASF). Johnson said the California Lifeline and federal Lifeline together "provide a combined $28.25 for eligible low income customers" and that about 1.6 million Californians currently participate while roughly 3.6 million are estimated to be eligible.

Lawmakers pressed CPUC commissioner attendance and public engagement

Chair Boerner Horvath and several members pressed Reynolds on commissioner attendance at CPUC hearings; the chair cited an annual-report appendix listing hearing days and commissioner attendance and asked why commissioners were not present more often. Reynolds framed evidentiary hearings as only one part of a broader administrative decisionmaking process, noting the role of administrative-law judges, industry-division experts and written briefs in CPUC proceedings. He said the agency's process includes alternate proposed decisions and full-commission voting on issues.

CDT middle-mile progress and design

CDT Director Liana Bailey Crimmins told the committee that the Middle Mile Broadband Initiative (MMBI) is under construction and that the state has committed to an open-access network of roughly 8,000 miles. "We have secured partnerships and contracts with tribal entities, local governments, and private providers, and are in a construction phase for over 3,000 miles of the approximate 8,000 mile network," she said. CDT reiterated that the statewide middle mile is intended to serve all counties and to make last-mile projects (FFA and other awards) feasible.

Deputy Director Mark Monroe described the middle mile as "a sort of a freeway system for broadband," and said CDT and CPUC have a formal process to coordinate how last-mile awardees will connect to the MMBI. CDT told the committee that about 3,000 miles were in construction at the end of 2024 and that many additional segments are under contract with third-party partners.

Caltrans and permitting delays

Caltrans deputy director Mike Keever described work the agency has done to streamline encroachment permits for middle-mile construction and said the department has created a dedicated permit-management workflow and a strike team to support regional districts. Keever told the committee, "Caltrans is committed to issuing encroachment permits within 3 business days once all requirements are met," and described pre-application consultations, weekly Q&A sessions, and a dedicated permit email and support structure for middle-mile partners.

Despite those changes, multiple members and outside witnesses told the committee that encroachment permitting remains a bottleneck for some segments. Chair Boerner Horvath said a milestone that preconstruction work would be complete by late 2024 had slipped, and CDT and Caltrans told the committee that preconstruction work remains in progress and that the milestone has shifted to March 2025 in the agencies' planning. Several last-mile and middle-mile contractors and tribal representatives in public comment said permitting uncertainty and uneven district-level implementation are delaying field work and narrowing seasonal windows for construction in rural or high-elevation areas.

Funding, federal risks and affordability

Committee members pressed agency leaders about risks from potential federal changes and near-term funding deadlines. CPUC and CDT officials told the committee a mix of funding sources supports the programs: federal BEAD (Broadband Equity, Access, and Deployment) allocations (California's BEAD allocation of $1.86 billion, per testimony), a state Federal Funding Account created by SB 156, American Rescue Plan Act (ARPA) funding used in earlier phases, and state appropriations. CDT and CPUC staff said some federal dollars are currently encumbered and that the state is coordinating with the National Telecommunications and Information Administration (NTIA) on digital-equity grants.

Agencies reiterated work on affordability: CPUC said many award conditions require grantees to offer low-cost plans or Lifeline participation; CDT and CPUC officials said the Affordable Connectivity Program (ACP) ended at the federal level and that the agencies are exploring modernization of Lifeline and other programs to address the gap. CPUC staff said 3 million Californians had enrolled in ACP when it ran, out of an estimated 6 million eligible nationally, and warned that no federal ACP replacement is yet in place.

Committee follow-up and oversight

Members asked for clearer, periodic milestones and for the agencies to provide written updates to the committee and the Middle Mile Advisory Committee. Chair Boerner Horvath said the panel would follow up and indicated she expects another check-in in the spring to examine whether the March preconstruction milestone is met and whether application recipients and middle-mile partners can meet the statutory completion target. Several lawmakers emphasized that if federal compliance or other deadlines require legislative action, they would expect to be notified promptly.

Ending

The committee recessed after public comment from tribal and industry representatives who urged faster, clearer permitting and greater operational support for applicants. Chair Boerner Horvath closed the hearing and said the committee would continue oversight work to monitor deployment, permitting, affordability and risks to federal funding.