(a) Allowable expenses do not include the following:

1. (1) Ongoing pole attachment fees, as distinct from make-ready expenses, which are allowable;
2. (2) Full purchase price of capital equipment that is used for the build phase of the project and that will have value for other construction work after the project is complete;
3. (3) Operating expenses not related to the project build; or
4. (4) Any other operating expenses that will be incurred on an ongoing basis after project completion.

(b) Allowable expenses are costs directly related to the construction of broadband infrastructure, including but not limited to the following:

1. (1) Make-ready expenses for attaching broadband facilities to poles;
2. (2) Reimbursement for rental or depreciation costs for capital equipment that represent the real opportunity cost of using that capital equipment for construction activities on the project;
3. (3) Wages of workers physically deploying infrastructure;
4. (4) Engineering costs related to project design;
5. (5) Legal costs related to the acquisition of rights needed for broadband deployment;
6. (6) Costs of fiber optic cable, modems, and other necessary plant for the delivery of 25/3 broadband services;
7. (7) Costs of obtaining construction permits;
8. (8) Purchases of indefeasible rights of use in dark fiber; and
9. (9) Installation and testing of broadband.

(c) Also allowable are expenses for conducting outreach and training for customers and potential customers living in the project footprint to:

1. (1) Educate them on the value of the internet and how to use it; and
2. (2) Encourage them to subscribe.