California is accepting $1.42 billion in federal broadband grant money but is rejecting a condition that would bar it from enforcing its net neutrality law and other telecom rules, according to Ars Technica.
The National Telecommunications and Information Administration (NTIA) required states to agree not to enforce rate regulation or net neutrality rules against Internet providers that receive funds from the $42 billion Broadband Equity, Access, and Deployment (BEAD) program. The California Public Utilities Commission (CPUC) says it cannot be bound by terms that are unconstitutional or unauthorized by law. CPUC President John Reynolds made that statement in a letter to NTIA Administrator Arielle Roth.
The CPUC's letter says it does not waive any legal challenges to the condition. It also says the commission cannot stop other California agencies, including the attorney general, from enforcing state law. The state will not distribute funds to Internet providers until it resolves the dispute with the NTIA. California could sue the federal government if the NTIA does not change its position.
An NTIA spokesperson told Ars that the award's terms and conditions are the entire agreement between the agency and the CPUC, and that the CPUC's letter is not part of the award. Public Knowledge, a consumer advocacy group, supported the CPUC's position. Its senior policy counsel, Raza Panjwani, called the federal demand "preposterous" and said the Infrastructure Investment and Jobs Act, which created BEAD, does not give NTIA authority to alter California law.