Rural Broadband Investment Act of 2013 or the RBI Act of 2013 - Suspends regulations of the Federal Communications Commission (FCC) that resulted in a revised method of determining levels of support for rural telephone carriers under the Universal Service Fund by allowing study area unseparated loop cost to be limited annually pursuant to a schedule announced by the Wireline Competition Bureau. (Thus, eliminates a distribution analysis method provided for in the FCC's Transformation Order known as the Report and Order and Further Notice of Proposed Rulemaking of the Federal Communications Commission adopted on October 27, 2011.)
Requires the FCC to initiate a rulemaking to adopt a revised proposal for rural support that does not deprive a rural rate-of-return carrier (a rural telephone company that is an incumbent local exchange carrier not subject to price cap regulation) of the opportunity to recover reasonable investments and operating expenses incurred prior to the proposal's adoption.
Directs the FCC, to the extent required under the Communications Act of 1934, to consult with: (1) the Federal-State Joint Board on Universal Service; and (2) if the limitations in the proposal submitted by the FCC to such Board result in a revision of the jurisdictional allocation of expenses, the Federal-State Joint Board on Separations.
Directs the FCC to submit to Congress: (1) the revised proposal for rural support published in the notice of proposed rulemaking, and (2) a report that describes the amount of universal service funding necessary to achieve universal service objectives during the next 10 years. Requires the report to include a quantitative and qualitative analysis as well as an identification of the unique circumstances and resulting high-cost loop support required to provide and maintain universal service in Alaska and on tribal lands.
Sets forth interim limitations on study area total unseparated loop costs that are to apply until the final rule takes effect.
Directs the FCC to amend regulations relating to high-cost loop support adjustments for rural rate-of-return carriers to require, beginning on January 1, 2012, the calculation of safety net additive support for such a carrier to include all just and reasonable investments made by the carrier prior to 2012.
Requires the FCC to grant a petition for a waiver submitted by a rural carrier negatively affected by a revision adopted in the October 2011 Transformation Order if such a waiver is necessary to ensure that the carrier is afforded a reasonable opportunity to recover the costs of providing universal service, including an equitable return on investments.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1858 Introduced in Senate (IS)]
113th CONGRESS
1st Session
S. 1858
To require the Federal Communications Commission to suspend and revise
portions of the Report and Order and Further Notice of Proposed
Rulemaking that revised Universal Service Fund distribution to rural
carriers, to encourage renewed investment by rural rate-of-return
carriers in deployment of broadband infrastructure in rural areas, and
for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 25, 2013
Mr. Begich introduced the following bill; which was read twice and
referred to the Committee on Commerce, Science, and Transportation
_______________________________________________________________________
A BILL
To require the Federal Communications Commission to suspend and revise
portions of the Report and Order and Further Notice of Proposed
Rulemaking that revised Universal Service Fund distribution to rural
carriers, to encourage renewed investment by rural rate-of-return
carriers in deployment of broadband infrastructure in rural areas, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Rural Broadband Investment Act of
2013'' or the ``RBI Act of 2013''.
SEC. 2. DEFINITIONS.
In this Act--
(1) the term ``applicable Federal-State Joint Board''
means--
(A) the Federal-State Joint Board on Universal
Service; and
(B) if the limitations in the proposal submitted by
the Commission to the Federal-State Joint Board on
Universal Service under section 4(b)(1)(A) result in a
revision of the jurisdictional allocation of expenses,
the Federal-State Joint Board on Separations;
(2) the term ``Commission'' means the Federal
Communications Commission;
(3) the term ``revised proposal for rural support'' means a
revised proposal to establish limitations on study area total
unseparated loop costs of rural rate-of-return carriers;
(4) the term ``rural carrier'' means--
(A) a rural rate-of-return carrier;
(B) a rural wireless carrier owned by a rural rate-
of-return carrier; and
(C) a rural competitive local exchange carrier
owned by a rural rate-of-return carrier;
(5) the term ``rural rate-of-return carrier'' means a rural
telephone company (as defined in section 153 of the
Communications Act of 1934 (47 U.S.C. 153)) that is a rate-of-
return carrier (as defined in section 54.5 of title 47, Code of
Federal Regulations);
(6) the term ``study area total unseparated loop cost''
means the cost calculated under section 36.621 of title 47,
Code of Federal Regulations;
(7) the term ``Transformation Order'' means the Report and
Order and Further Notice of Proposed Rulemaking of the Federal
Communications Commission adopted on October 27, 2011 (FCC 11-
161); and
(8) the term ``tribal lands'' has the meaning given the
term in section 54.400(e) of title 47, Code of Federal
Regulations.
SEC. 3. FINDINGS.
Congress finds the following:
(1) The implementation of new rules and regulations set
forth in the Transformation Order has created financial
uncertainty and instability for rural carriers by denying rural
carriers a meaningful opportunity to recover investments and
expenses incurred to provide universal service prior to 2012.
(2) The implementation of the Transformation Order,
including the utilization of a widely criticized regression
analysis used to determine levels of universal service support,
is creating significant uncertainty with respect to the
sufficiency and predictability of the universal service support
mechanisms, which has discouraged rural carriers from making
broadband infrastructure investments to build out new broadband
capabilities in high cost-to-serve rural communities throughout
the United States.
(3) The intent of Congress under section 254 of the
Communications Act of 1934 (47 U.S.C. 254) is that the
Commission--
(A) consult with the Federal-State Joint Board on
Universal Service before adopting changes to
regulations that affect universal service high-cost
fund mechanisms; and
(B) adopt policies and regulations that establish
and maintain ``specific, predictable, and sufficient''
support mechanisms to preserve and advance universal
service.
(4) The Secretary of Agriculture has warned that the
implementation of the Transformation Order is having unintended
consequences for rural broadband investment and deployment and
for other Federal programs designed to promote rural broadband
deployment.
(5) The Department of Agriculture has reported that demand
for Rural Utilities Service loans for broadband buildout has
plummeted in 2013, due in part to the uncertainty created by
the new rules and regulations set forth in the Transformation
Order.
(6) Surveys of rural carriers indicate that nearly two-
thirds of rural rate-of-return carriers are canceling or
postponing new broadband investments, while other reports
indicate that rural rate-of-return carriers are being forced to
increase consumer prices and reduce staff, creating ripple
effects for economies in rural areas of the United States.
(7) Congressional hearings have demonstrated that the
approach of the Commission to the consideration, review, and
resolution of petitions for waivers from rules adopted under
the Transformation Order--
(A) is unduly burdensome and costly for small,
rural carriers and inconsistent with the established
policy and waiver standards of the Commission; and
(B) is consequently discouraging small, rural
carriers from requesting waivers and is creating
additional business uncertainties.
(8) Congressional hearings have demonstrated that the
Commission can make adjustments to the Transformation Order to
address the adverse impact and business uncertainties
confronting small, rural carriers without affecting other
categories of carriers or increasing the Universal Service Fund
budget established in the Transformation Order.
SEC. 4. SUSPENSION AND REVISION OF PROVISION OF TRANSFORMATION ORDER.
(a) Suspension.--Section 36.621(a)(5) of title 47, Code of Federal
Regulations (relating to the annual limitation of study area total
unseparated loop cost pursuant to a schedule announced by the Wireline
Competition Bureau), shall have no force or effect.
(b) Review and Revision.--
(1) Publication of revised proposal for universal service
distribution to rural rate-of-return carriers.--
(A) Requirement to submit proposal.--Not later than
60 days after the effective date of this Act, the
Commission shall issue a notice of proposed rulemaking
to adopt a revised proposal for rural support.
(B) Recovery of reasonable investments and
operating expenses.--The Commission shall ensure that
the revised proposal for rural support does not deprive
a rural rate-of-return carrier of the opportunity to
recover reasonable investments and operating expenses
incurred prior to the adoption under subparagraph (D)
of the revised proposal for rural support.
(C) Consultation with joint boards.--Before the
Commission issues a final rule under subparagraph (D)
to adopt a revised proposal for rural support, the
Commission shall consult with the applicable Federal-
State Joint Board to the extent that such consultation
is required under the Communications Act of 1934 (47
U.S.C. 151 et seq.).
(D) Final rule adopting proposal.--Not earlier than
45 days and not later than 120 days after the date on
which the Commission issues the notice of proposed
rulemaking under subparagraph (A), the Commission shall
issue a final rule adopting a revised proposal for
rural support.
(2) Report to congress.--Not later than 60 days after the
effective date of this Act, the Commission shall submit to the
Committee on Commerce, Science, and Transportation of the
Senate and the Committee on Energy and Commerce of the House of
Representatives--
(A) a report that contains the revised proposal for
rural support published in the notice of proposed
rulemaking under paragraph (1)(A); and
(B) a report that--
(i) describes the amount of universal
service funding necessary to achieve universal
service objectives during the 10-year period
following the date on which the report is
submitted; and
(ii) includes--
(I) quantitative and qualitative
analysis in support of the findings of
the Commission under clause (i); and
(II) a specific analysis
identifying the unique circumstances
and resulting high-cost loop support
required to provide and maintain
universal service in Alaska and on
tribal lands.
(c) Interim Limitations.--
(1) In general.--Not later than 30 days after the effective
date of this Act, the Commission shall establish interim
limitations on study area total unseparated loop costs by--
(A) determining the annual Universal Service Fund
distribution for each rural rate-of-return carrier on
the basis of the applicable rules that were in effect
on the day before the effective date of the
Transformation Order; and
(B) adjusting the universal service distribution of
high-cost loop support that results from the annual
distribution determined under paragraph (1) to
reflect--
(i) the revision to section 36.605 of title
47, Code of Federal Regulations, required under
section 5 of this Act; and
(ii) any revisions to responses to waiver
petitions required under section 6 of this Act.
(2) Duration.--The interim limitations established under
paragraph (1) shall be in effect until the date on which the
final rule required under subsection (b)(1)(D) takes effect.
SEC. 5. SAFETY NET ADDITIVE.
The Commission shall amend section 36.605(a) of title 47, Code of
Federal Regulations (relating to adjustments to high-cost loop support
for rural rate-of-return carriers) to provide that, beginning on
January 1, 2012, the calculation of safety net additive support for a
rural rate-of-return carrier shall include all just and reasonable
investments made by the carrier prior to 2012.
SEC. 6. WAIVERS.
(a) In General.--The Commission shall apply the criteria and
standards under this section when considering a petition for a waiver
submitted by a rural carrier negatively affected by a revision adopted
in the Transformation Order.
(b) Reasonable Opportunity To Recover Costs.--The Commission shall
grant a petition for a waiver described in subsection (a) if the
Commission determines a waiver is necessary to ensure that the
requesting rural carrier is afforded a reasonable opportunity to
recover the costs of providing universal service, including an
equitable return on the investments the rural carrier made to provide
universal service.
(c) Time Limit for Consideration of Waiver Petition.--
(1) In general.--Not later than 90 days after the date on
which the Commission receives a petition for a waiver, the
Commission shall grant or deny the petition.
(2) Failure to act within time limit.--If the Commission
fails to make a determination on a petition for a waiver prior
to the expiration of the time period set forth under paragraph
(1), the Commission shall be deemed to have granted the
petition.
(3) Waiver petitions filed before effective date.--The
Commission shall reconsider, in accordance with this section,
any petition for a waiver relating to a revision to a
regulation adopted in the Transformation Order that--
(A) was submitted to the Commission during the
period beginning on November 18, 2011, and ending on
the day before the effective date of this Act; and
(B) is denied by the Commission.
(d) Denial of Waiver Petition.--If the Commission denies a petition
for a waiver, in whole or in part, the Commission shall identify with
specificity--
(1) any operating expenses of the requesting carrier that
the Commission determines unreasonable;
(2) any investments made by the requesting carrier that the
Commission determines are not used and useful in the provision
of universal service; and
(3) the underlying basis for any determination under
paragraph (1) or (2).
SEC. 7. EFFECTIVE DATE.
This Act shall take effect 30 days after the date of enactment of
this Act.
<all>
Introduced in Senate
Read twice and referred to the Committee on Commerce, Science, and Transportation.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line