CR 21-023 Rule Text

ANALYSIS PREPARED BY THE

PUBLIC SERVICE COMMISSION OF WISCONSIN

A.   Statutory Authority and Explanation of Authority

This rulemaking is authorized under Wis. Stat. §§ 196.02(1) and (3), 196.218(3)(c), (4u), (5)(b) and (5m), and 227.11(2).

Wis. Stat. § 196.02(1) authorizes the Commission to do all things necessary and convenient to its jurisdiction. Wis. Stat. § 196.02(3) grants the Commission specific authority to promulgate rules. Wis. Stat. § 196.218(3)(c) authorizes the Commission to designate by rule the class of providers or persons that under § 196.218(a) must contribute to the Universal Service Fund. Wis. Stat. § 195.218(4u) authorizes the Commission to promulgate rules establishing requirements and procedures for awarding grants related to the Telecommunications Equipment Purchase Program (TEPP). Wis. Stat. §§ 196.218(5)(b) and (5m) authorize the Commission’s creation and revision of the Universal Service Support Funding and Programs rules. Wis. Stat. § 227.11 authorizes agencies to promulgate administrative rules.

B.   Statute Interpreted

This rule interprets Wis. Stat. § 196.218.

C.   Related Statutes or Rules

None.

D.   Brief Summary of Rule

The objective of this rulemaking is to amend and revise Wis. Admin. Code ch. PSC 160, Universal Service Support Funding and Programs. This program is commonly referred to as the Universal Service Fund (USF). Any changes resulting from this rulemaking are intended to continue and enhance support for these general purposes stated in the statutes.

This rulemaking will revise Wis. Admin. Code ch. PSC 160 to conform with the Federal Communications Commission’s (FCC) third Lifeline Modernization Order[1] (Lifeline Order) issued on April 27, 2016. The Lifeline Order modified the list of programs that qualify individuals for federal Lifeline support. In particular, this FCC Order removed state-specific programs and income eligibility criteria for federal Lifeline support. In addition, the FCC also created a National Verifier for Lifeline eligibility verification. On February 15, 2018, the Public Service Commission of Wisconsin (Commission) issued an Order (PSC REF#: 338212) that established interim Wisconsin Lifeline guidelines pursuant to Wis. Admin. Code § PSC 160.01(2)(a). This rulemaking will align Wis. Admin. Code ch. PSC 160 with FCC federal standards.

Additionally, this rulemaking will revise Wis. Admin. Code ch. PSC 160 to implement Executive Order #15[2] providing for the use of inclusive language in Wisconsin Administrative Rules.

This rulemaking will revise Wis. Admin. Code ch. 160 to allow Telecommunications Equipment Purchase Program (TEPP) vouchers to purchase equipment to access the internet for the Deaf. The current four TEPP voucher categories in PSC 160.071(1m)(L)2. do not cover individuals who are Deaf. Modern telecommunications options allow the use of mobile devices for Deaf individuals to use video transmission and American Sign Language (ASL) to communicate directly with other Deaf individuals and with hearing individuals through Video Relay Service.

E.   Comparison with Existing or Proposed Federal Legislation

There is a state USF and a federal USF program. The state and federal funds and programs are complementary rather than duplicative. The federal and the state USF programs rely on the designation of Eligible Telecommunications Carriers (ETCs) to carry out some programs.

The Commission designates Eligible Telecommunications Carriers (ETCs). Therefore, ETCs are eligible for funding from the federal USF program and certain funding from the state USF program. ETC status was created by the FCC, and codified in 47 U.S.C. § 214(e)(2). Under FCC rules, state commissions are responsible for designating eligible providers as ETCs.[3]

Designation as an ETC is required for a provider to receive federal USF funding. ETC designation is also required to receive funding from some, but not all, state universal service programs. The FCC established a set of minimum criteria that all ETCs must meet. These criteria are codified in the federal rules.[4] The 1996 Telecommunications Act states that, “A State may adopt regulations not inconsistent with the commission’s rules to preserve and advance universal service.”[5] A court upheld the states’ right to impose additional conditions on ETCs in Texas Office of Public Utility Counsel v. FCC, 183 F.3d 393, 418 (5th Cir. 1999). Therefore, while states must examine the federal requirements, they are allowed to create additional requirements. Wisconsin chose to create additional requirements.

The complementary state and federal USF programs are as follows:

Federal High Cost Fund and the Wisconsin High Rate Assistance Credit[6] Program

The federal USF program provides funding to ETCs that serve high-cost areas. That funding is used to help cover the costs of expanding infrastructure into those areas. This helps top ensure that rates in those areas stay lower since rates need not provide the funds for that expansion. The federal program also funds broadband deployment across the country through the Connect American Fund (CAF I and II), Alternative Connect America Cost Model (A-CAM I and II), and the Rural Digital Opportunity Fund (RDOF).

The Wisconsin USF program provides reimbursement to providers that offer credits to customers when rates are higher than as designated in Wis. Stat. § PSC 160.09. The Wisconsin USF partially funds the Broadband Expansion Grant Appropriation pursuant to Wis. Stat. § 196.218(3)(a)2s. with an annual funding requirement of $2 million.

Federal and Wisconsin[7] Lifeline and Link-Up Programs

Under the federal Lifeline program, the USF provides funding to ETCs to discount telecommunications bills for low-income customers. The discount may be applied to a wide-range of technologies, as provided in 47 CFR § 54.401(a). Program eligibility is determined via the National Verifier (NV) and non-duplication of benefit is administered via the National Lifeline Accountability Database (NLAD). Under Link-up, the federal USF defrays connection costs and discounts phone bills—using the same tools as Lifeline—for tribal customers.

Wisconsin’s Lifeline program funding to ETCs provides additional credits for customers also receiving the federal Lifeline benefit to achieve a telecommunications bill of about $15. Under the Commission Order (PSC REF#: 338212) issued February 15, 2018, the state discount may be applied to the same technologies designated in 47 CFR § 54.401(a). Program eligibility is determined via the NV, with the added benefit of connection to the Wisconsin Department of Health Services and Wisconsin Department of Revenue databases allowing for real-time program- and income-qualification determinations without additional documentation, in most cases. The non-duplication of benefits is administered via the NLAD. Wisconsin does not offer a corollary to Link-Up, but tribal customers are able to access the Wisconsin Lifeline benefit.

Federal E-Rate Program and Wisconsin USF Programs at the Department of Public Instruction, Department of Administration, and at the University of Wisconsin System[8]

This federal USF program provides funding to connect schools and libraries to affordable, high-speed internet.

The state USF program assesses funding for programs at the Department of Public Instruction addressing access for schools and libraries, along with technology accessibility for people with disabilities. The state USF program funds telecommunications at the UW System, and for the TEACH program at the Department of Administration, which also supports school connectivity. In 2018, $44 million of federal USF E-Rate dollars were used to fund Wisconsin’s Broadband Expansion Grant Program.

Federal Rural Health Care Program and the Wisconsin Telemedicine Equipment Program[9]