Rural Internet Improvement Act of 2023
This bill merges the pilot ReConnect Loan and Grant Program with existing loans and grants provided by the Department of Agriculture (USDA) to facilitate broadband access to rural areas that lack sufficient access to broadband. Unobligated amounts available for the pilot program must be transferred and made available, without further appropriations, to this merged program.
The bill specifies eligibility criteria and other requirements that apply to the merged program. For example, the bill limits funds from the merged program to projects in areas where at least 90% of the households lack sufficient access to broadband services, which is currently required under the pilot program.
Other changes in the bill address procedures for contesting the accuracy of broadband maps that are used to identify eligible areas. It also requires efforts to increase coordination concerning broadband initiatives between USDA, the Federal Communications Commission, and the National Telecommunications Information Administration.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3216 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 3216
To amend the Rural Electrification Act of 1936 to reauthorize and
improve the ReConnect loan and grant program, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 11, 2023
Mrs. Cammack (for herself, Mr. Soto, Mr. Jackson of Texas, and Ms.
Perez) introduced the following bill; which was referred to the
Committee on Agriculture, and in addition to the Committee on Energy
and Commerce, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Rural Electrification Act of 1936 to reauthorize and
improve the ReConnect loan and grant program, 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 Internet Improvement Act of
2023''.
SEC. 2. STREAMLINING BROADBAND AUTHORITIES.
(a) In General.--Section 601 of the Rural Electrification Act of
1936 (7 U.S.C. 950bb) is amended--
(1) by striking the section heading and inserting
``reconnect program'';
(2) in subsection (b)--
(A) by redesignating paragraph (3) as paragraph
(4); and
(B) by inserting after paragraph (2) the following:
``(3) Reconnect program.--The term `ReConnect Program'
means the program established under this section.'';
(3) in subsection (c)--
(A) in paragraph (2)(A)--
(i) in clause (i)--
(I) in subclause (I), by striking
``10-Mbps'' and inserting ``25-Mbps'';
and
(II) in subclause (II), by striking
``1-Mbps'' and inserting ``3-Mbps'';
and
(ii) by striking clause (iv) and inserting
the following:
``(iv) give priority to applications from
applicants that have demonstrated the technical
and financial experience required to construct
and operate broadband networks.''; and
(B) by adding at the end the following:
``(5) Applications.--The Secretary shall establish an
application process for grants, loans, and loan guarantees
under this section that--
``(A) reduces the amount of data required to apply
by limiting the required data to only--
``(i) the entity applying, excluding any
parent or affiliate entity that is not a party
to the application, to the greatest extent
practicable; and
``(ii) the geographic area affected by the
application, if a parent or affiliate is not a
party to the application;
``(B) simplifies the data interfaces for submission
to the greatest extent practicable; and
``(C) allows all applicants, regardless of whether
an applicant is publicly traded, to rely on a bond
rating of at least investment grade (when bond ratings
are available) in place of financial documentation.
``(6) Use of broadband map.--In making any determination to
award a loan, loan guarantee, or grant under this section, the
Secretary shall utilize the map created by the Federal
Communications Commission under section 802(c)(1)(A) of the
Communications Act of 1934.'';
(4) in subsection (d)--
(A) in paragraph (1)--
(i) in subparagraph (B), by striking
``subsection (j)'' and inserting ``subsection
(l)''; and
(ii) by adding at the end the following:
``(C) Grant requirements.--The Secretary--
``(i) shall not restrict the eligibility of
an entity for a grant under this section based
on the legal structure of the entity;
``(ii) shall allow entities to apply for a
grant under this section without regard to, or
preference for, the legal structure of an
entity;
``(iii) in determining the financial
ability of an entity to carry out a project
using a grant under this section, shall allow
the entity to demonstrate that financial
ability by methods that--
``(I) the Secretary determines to
be the least burdensome; and
``(II) subject to clause (v), are
not limited to providing the Federal
Government an exclusive first lien on
all grant-funded assets during the
service obligation of the grant;
``(iv) subject to clause (v), in
determining the required collateral to secure
grant funds or to secure performance during the
service obligation of a grant, shall allow an
awardee to offer alternative security, such as
a letter of credit, in lieu of providing the
Federal Government an exclusive first lien on
all grant-funded assets; and
``(v) if the Secretary reasonably
determines that alternative methods or
alternative security established under clause
(iii)(II) or (iv) are insufficient to secure
performance with respect to a project under
this section--
``(I) may require an entity to
provide the Federal Government an
exclusive first lien all grant-funded
assets during the service obligation of
the grant; and
``(II) shall release that lien
after the Secretary determines that the
entity is performing to the
satisfaction of the Secretary.''; and
(B) in paragraph (2)--
(i) in subparagraph (A)(i), by striking
``50'' and inserting ``90''; and
(ii) by adding at the end the following:
``(D) Obligations to provide broadband service in
the same service territory.--
``(i) Definition of broadband
infrastructure.--In this subparagraph, the term
`broadband infrastructure' means any cables,
fiber optics, wiring, or other permanent
infrastructure that is integral to the
structure, including fixed wireless
infrastructure, that--
``(I) is capable of providing
access to internet connections in
individual locations; and
``(II) offers an advanced
telecommunications capability (as
defined in section 706(d) of the
Telecommunications Act of 1996 (47
U.S.C. 1302(d))).
``(ii) Other providers.--The Secretary
shall consider a proposed service territory
with respect to which an eligible entity
submits an application to carry out a project
under this section to be served by broadband
service if a broadband service provider other
than that eligible entity is subject to an
obligation by a Federal, State, or local
government entity to build broadband
infrastructure and offer broadband service in
that service territory, subject to conditions--
``(I) under a Federal, State, or
local funding award program; or
``(II) otherwise required by the
Federal, State, or local government
entity.
``(iii) Other funding.--Subject to clause
(iv), the Secretary shall not be required to
consider a proposed service territory with
respect to which an eligible entity submits an
application to carry out a project under this
section to be served by broadband service if
that eligible entity has accepted an obligation
under a Federal, State, or local funding award
program to build broadband infrastructure and
offer broadband service in that service
territory, if the proposed project under this
section--
``(I) would not be duplicative of
the obligation under the other award
program; and
``(II) would build broadband
infrastructure that results in faster
speeds or expedited milestones of
deployment of broadband infrastructure
in that service territory, as compared
to the obligation under the other award
program.
``(iv) Other obligations for lower
transmission capacity.--The Secretary shall
consider a proposed service territory with
respect to which an eligible entity submits an
application to carry out a project under this
section to be unserved by broadband service if
an obligation under another award program
described in clause (iii) would not provide
broadband service of at least--
``(I) a 25-Mbps downstream
transmission capacity; and
``(II) a 3-Mbps upstream
transmission capacity.
``(E) Requirements for funding.--
``(i) Affiliate owned and operated
networks.--A grant, loan, or loan guarantee
under this section may be used to construct
networks that will be owned and operated by an
affiliate of the eligible entity receiving the
grant, loan, or loan guarantee, subject to the
condition that the eligible entity, the
affiliate, or both, as the Secretary determines
to be necessary, shall provide adequate
security for the grant, loan, or loan
guarantee.
``(ii) Negative covenants and conditions.--
To the greatest extent practicable, a project
carried out using a grant, loan, or loan
guarantee under this section shall not add any
new negative covenants or conditions to the
grant, loan, or loan guarantee agreement that
were not previously disclosed to the eligible
entity at the time of application for the
grant, loan, or loan guarantee.
``(iii) Ownership of systems.--
``(I) In general.--A network
constructed with a grant, loan, or loan
guarantee under this section may be
transferred to an unaffiliated provider
that agrees--
``(aa) to assume the
service obligation; and
``(bb) to provide
appropriate and sufficient
security for that network.
``(II) Determination.--The
Secretary shall not unreasonably
withhold consent to enter into an
appropriate agreement described in
subclause (I) with the transferee based
on an evaluation by the Secretary of
the ability of the transferee to assume
the agreement and provide security
described in item (bb) of that
subclause.
``(iv) Reporting and auditing.--The
Secretary shall--
``(I) simplify, to the maximum
extent practicable, ongoing reporting
and auditing requirements for
recipients of a grant, loan, or loan
guarantee under this section; and
``(II) allow a recipient described
in subclause (I) whose financial
information is consolidated with the
financial information of a parent
entity to rely on that consolidated
financial information in complying with
the requirements described in that
subclause if the parent entity is
providing a guarantee on behalf of a
subsidiary of the parent entity with
respect to the grant, loan, or loan
guarantee.
``(v) Procurement and contracting.--The
Secretary--
``(I) shall simplify, to the
maximum extent practicable,
requirements for recipients of a grant,
loan, or loan guarantee under this
section relating to the procurement of
materials and retention of contractors;
and
``(II) shall not unreasonably
restrict the ability of a recipient
described in subclause (I) to obtain
goods and services from affiliated
entities.'';
(5) in subsection (e)(1)--
(A) in subparagraph (A), by striking ``25-Mbps''
and inserting ``100-Mbps''; and
(B) in subparagraph (B), by striking ``3-Mbps'' and
inserting ``20-Mbps'';
(6) by redesignating subsections (j) and (k) as subsections
(l) and (m), respectively;
(7) by inserting after subsection (i) the following:
``(j) Regulations.--The Secretary shall issue regulations to carry
out this section in accordance with section 553 of title 5, United
States Code.
``(k) Annual Reports.--Not later than 120 days after the date of
enactment of the Rural Internet Improvement Act of 2023, and not less
frequently than annually thereafter, the Secretary shall--
``(1) publish a report describing--
``(A) the distribution of amounts made available
under the ReConnect Program for the preceding year;
``(B) the number of locations at which broadband
service was made available using amounts under the
ReConnect Program for the preceding year;
``(C) the number of locations described in
subparagraph (B) at which broadband service was used;
and
``(D) the highest level of broadband service made
available at each location described in subparagraph
(B); and
``(2) submit the report described in paragraph (1) to--
``(A) the Committee on Agriculture, Nutrition, and
Forestry of the Senate;
``(B) the Committee on Commerce, Science, and
Transportation of the Senate;
``(C) the Committee on Agriculture of the House of
Representatives; and
``(D) the Committee on Energy and Commerce of the
House of Representatives.''; and
(8) in subsection (l) (as so redesignated), in paragraph
(1), by striking ``for each of fiscal years 2019 through 2023''
and inserting ``for each fiscal year''.
(b) Sunset.--Beginning on the date that is 120 days after the date
of enactment of this Act, section 779 of division A of the Consolidated
Appropriations Act, 2018 (Public Law 115-141; 132 Stat. 399), shall
have no force or effect.
(c) Transfer of Amounts.--The unobligated balance, as of the date
that is 120 days after the date of enactment of this Act, of any
amounts made available to carry out the pilot program described in
section 779 of division A of the Consolidated Appropriations Act, 2018
(Public Law 115-141; 132 Stat. 399)--
(1) is transferred to, and merged with, amounts made
available to carry out section 601 of the Rural Electrification
Act of 1936 (7 U.S.C. 950bb); and
(2) shall remain available, until expended, and without
further appropriation, to carry out the ReConnect Program
established under that section.
(d) Effect.--Title VI of the Rural Electrification Act of 1936 (7
U.S.C. 950bb et seq.) is amended by adding at the end the following:
``SEC. 607. EFFECT.
``Nothing in this title authorizes the Secretary to regulate rates
charged for broadband service.''.
(e) Public Notice, Assessments, and Reporting Requirements.--
Section 701 of the Rural Electrification Act of 1936 (7 U.S.C. 950cc)
is amended--
(1) in subsection (a)--
(A) in paragraph (1)(A), by inserting ``, including
a complete shapefile map'' after ``applicant''; and
(B) in paragraph (2)(D), by striking ``(c)'' and
inserting ``(d)'';
(2) by redesignating subsections (b) through (e) as
subsections (c) through (f), respectively;
(3) by inserting after subsection (a) the following:
``(b) Challenge Process.--
``(1) In general.--The Secretary shall establish a
transparent, evidence based, and expeditious process for
challenging, with respect to any area for which assistance is
sought under an application described in subsection (a)(1),
whether that area has access to broadband service.
``(2) Notice.--The Secretary shall make publicly available
on the website of the Department of Agriculture a written
notice describing--
``(A) the decision of the Secretary on each
challenge submitted under paragraph (1); and
``(B) the reasons for each decision described in
subparagraph (A).''; and
(4) by adding at the end the following:
``(g) Public Notice of Eligible Funding Areas.--Prior to making
available to the public the database under subsection (a), the
Secretary shall make available to the public a fully searchable
database on the website of the Rural Utilities Service that contains
information on areas eligible for assistance under retail broadband
projects that are administered by the Secretary in accordance with the
maps created by the Federal Communications Commission under section
802(c)(1) of the Communications Act of 1934 (47 U.S.C. 642(c)(1)).''.
(f) Federal Broadband Program Coordination.--Section 6212 of the
Agriculture Improvement Act of 2018 (7 U.S.C. 950bb-6) is amended--
(1) by redesignating subsections (a), (b), (c), and (d) as
subsections (b), (c), (e), and (a), respectively, and moving
the subsections so as to appear in alphabetical order;
(2) in subsection (a) (as so redesignated), in paragraph
(3), by striking ``section 601(b)(3) of the Rural
Electrification Act of 1936'' and inserting ``section 601(b) of
the Rural Electrification Act of 1936 (7 U.S.C. 950bb(b))'';
(3) in subsection (c) (as so redesignated), in paragraph
(1)--
(A) by striking ``The Secretary'' and inserting the
following:
``(A) In general.--The Secretary''; and
(B) by adding at the end the following:
``(B) Reconnect program.--On awarding a grant,
loan, or loan guarantee under the ReConnect Program
established under section 601 of the Rural
Electrification Act of 1936 (7 U.S.C. 950bb), the
Secretary shall notify the Commission of that award.'';
and
(4) by inserting after subsection (c) (as so redesignated)
the following:
``(d) Memorandum of Understanding Relating to Outreach.--The
Secretary shall enter into a memorandum of understanding with the
Assistant Secretary and the Commission to facilitate outreach to
residents and businesses in rural areas, including--
``(1) to evaluate the broadband service needs in rural
areas;
``(2) to inform residents and businesses in rural areas of
available Federal programs that promote broadband access,
broadband affordability, and broadband inclusion; and
``(3) for such additional goals as the Secretary, the
Assistant Secretary, and the Commission determine to be
appropriate.''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Agriculture, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Agriculture, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Communications and Technology.
Referred to the Subcommittee on Commodity Markets, Digital Assets, and Rural Development.
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