Baum Could Drive USF Reform Effort on House Commerce

The hiring of Ray Baum to the House Commerce Committee could signal heightened Capitol Hill interest in pursuing Universal Service Fund reform this year, state and industry officials said. Baum was chairman of the Oregon Public Utilities Commission and the state chairman of the Federal-State Joint Board on Universal Service. Some wireline industry lobbyists said they believe Baum may try to revamp the bill worked out last year by Rep. Lee Terry, R-Neb., and former Communications Subcommittee Chairman Rick Boucher, D-Va.

Hill involvement on USF is expected to pick up after the FCC releases notices of proposed rulemaking expected in February (CD Jan 7 p1). Terry has said he plans early in the session to reintroduce his USF reform bill. Baum’s presence on the committee “increases the chances” that the House will work on USF reform this year, said David Bergmann, telecom committee chairman of the National Association of State Utility Consumer Advocates. Baum’s “expertise on USF is obvious,” said Brad Ramsay, general counsel of the National Association of Regulatory Utility Commissioners. He’s also knowledgeable on energy issues including smart grid, and has “has an excellent command of the legal issues surrounding” net neutrality, Ramsay said.

"Ray is an expert public servant in a variety of communications and technology fields, including USF,” said a spokesman for Communications Subcommittee Chairman Greg Walden, R-Ore. Walden and Baum come from the same state: “Rep. Walden looks forward to his counsel as he tackles the many issues facing the subcommittee.” Baum declined to comment.

Committee Republicans may have hired Baum to start over on USF, not to push Terry’s bill, said some lobbyists. “Hiring Ray Baum is not about moving a clunker bill written last Congress,” said a wireline industry lobbyist: “It’s about bringing in a sharp, experienced operator who knows the issues and players in USF to figure out what’s feasible and smart.” Another wireline industry lobbyist said “it depends on how much control Walden wants to give Terry on USF.” Baum and Communications Subcommittee Chief Counsel Neil Fried may not “support the bill as it stands now,” the lobbyist said.

Other lobbyists disagreed. Last year’s Terry bill addressed everyone’s concerns, and Baum is probably there because he understands the nuances of a complicated issue, said a wireline industry lobbyist. That Terry was named vice chairman of the Communications Subcommittee also bodes well for his bill, noted another industry lobbyist, saying Baum can help drive the reform effort forward because he’s a “dealmaking, herding-cats kind of guy.”