Short title

This Act may be cited as the

Broadband Program Reauthorization Act of 2010

USDA broadband loans, loan guarantees, and grants established under Public Law 111–5

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:

603.

USDA broadband loans, loan guarantees, and grants established under Public Law 111–5

(a)

Loans, loan guarantees, and grants

(1)

In general

The amounts authorized to be appropriated under subsection (f) shall be used to cover the cost of broadband loans and loan guarantees, as authorized by section 601 of this Act and for grants (including for technical assistance). (2)

Definition

For purposes of this subsection, the cost of direct and guaranteed loans shall be as defined in section 502 of the Congressional Budget Act of 1974. (b)

Use of funds

(1)

In general

Notwithstanding section 601 of this Act, the amounts authorized under this section shall be made available for grants, loans, and loan guarantees for broadband infrastructure in any area of the United States. (2)

Limitation

Of the amounts made available under this section, at least 75 percent of the area to be served by a project receiving funds from such grants, loans, or loan guarantees shall be in a rural area without sufficient access to high speed broadband service to facilitate rural economic development, as determined by the Secretary of Agriculture. (3)

Priority

In awarding grants, loans, or loan guarantees under this section, the Secretary of Agriculture shall give priority— (A)to project applications for broadband systems that will deliver end users a choice of more than 1 service provider; (B)to projects that provide service to the highest proportion of rural residents that do not have access to broadband service; (C)for project applications from borrowers or former borrowers under title II of the Rural Electrification Act of 1936 and for project applications that include such borrowers or former borrowers; (D)to project applications that demonstrate that, if the application is approved, all project elements will be fully funded; (E)to project applications for activities that can be completed if the requested funds are provided, and to activities that can commence promptly following approval; and (F)to project applications that will expand broadband opportunities in rural and tribal areas. (c)

Coordination

(1)

Broadband Technologies Opportunity Program

No area of a project funded with amounts made available under this section may receive funding to provide broadband service under the Broadband Technology Opportunities Program established under Public Law 111–5. (2)

FCC national broadband plan

In carrying out this section, the Secretary of Agriculture shall coordinate and harmonize, to the extent possible, its activities with the national broadband plan developed by the Federal Communications Commission pursuant to Public Law 111–5. (d)

Report

The Secretary of Agriculture shall submit a report on planned spending and actual obligations describing the use of the funds made available under this section not later than 90 days after the date of enactment of this Act, and quarterly thereafter, until all funds are obligated, to the Committees on Appropriations of the House of Representatives and the Senate. (e)

Clearinghouse website

The Secretary of Agriculture shall create and maintain a fully searchable database, accessible on the Internet at no cost to the public that shall serve as the clearinghouse for all information relating to loans, loan guarantees, and grants made in accordance with this section, including— (1)when any grant application was received and if such application was accepted, when any amounts were awarded to such applicant; and (2)information related to options, opportunities, resources, successful public-private partnerships, funding sources, and tutorials related to the expansion of broadband infrastructure and service into rural and tribal areas. (f)

Authorization of appropriations

(1)

In general

There are authorized to be appropriated to the Secretary of Agriculture to carry out this section— (A)$2,000,000,000 for fiscal year 2011; and (B)such sums as necessary for each fiscal year thereafter. (2)

Availability

Any amounts appropriated to carry out this section shall remain available until expended. (g)

Definitions

(1)

In general

As used in this section: (A)

Rural area

(i)

In general

The term rural area means any area, as set forth in the most recent decennial census by the Census Bureau, which is not located within— (I)a city, town, or incorporated area that has a population of greater than 20,000 inhabitants; or (II)an urbanized area contiguous and adjacent to a city or town that has a population of greater than 50,000 inhabitants. (ii)

Rule of construction

For purposes of clause (i)(II), the term urbanized area means a densely populated territory, as defined in the most recent decennial census by the Census Bureau. (B)

Broadband

The term broadband means 2-way data transmission with advertised speeds of at least 768 kilobytes per second downstream and at least 200 kilobytes per second upstream to end users, or providing sufficient capacity in a middle mile project to support the provision of broadband service to end users. (2)

Unserved area; Underserved area

For purposes of the grant program under this section, the Secretary of Agriculture shall define— (A)the term unserved area to mean any area where at least 90 percent of households in that area lack access to terrestrial broadband service; and (B)the term underserved area to mean any census tract, as determined by the most recent decennial census by the Census Bureau, where— (i)no more than 50 percent of households in a proposed funded service area have access to facilities-based, terrestrial broadband service at greater than 768 kilobytes per seconds; (ii)no broadband provider advertises broadband transmission speeds of at least 3 megabits per second downstream; or (iii)the rate of broadband subscribership for the proposed funded service area is 40 percent of households or less.

Broadband Technology Opportunities Program established under Public Law 111–5

Section 6001 of Public Law 111–5 is amended— (1)in subsection (d)(2), by striking the end of fiscal year 2010 and inserting the date that is 2 years after the date of enactment of the Broadband Program Reauthorization Act of 2010; (2)in subsection (f), by striking 80 percent each place that term appears and inserting 75 percent; (3)in subsection (h)— (A)in the matter preceding paragraph (1), by inserting determining eligibility and before awarding grants; (B)in paragraph (2)(D), by striking ; and and inserting a semicolon; (C)by adding at the end the following:

(4)give priority to applications that will expand broadband opportunities in rural and tribal areas; and (5)allow entities that have received waiver authority from the Federal Communications Commission to use the 763–768/793–798 MHz (700 MHz) public safety broadband spectrum to apply for funding.

;

(4)in subsection (i)— (A)in paragraph (4), by striking ; and and inserting a semicolon; and (B)in paragraph (5), by striking the period at the end and inserting , including information related to options, opportunities, resources, successful public-private partnerships, funding sources, and tutorials related to the expansion of broadband infrastructure and service into rural and tribal areas; and; and (5)by adding at the end the following:

(n)

Coordination with FCC national broadband plan

In carrying out this section, the Assistant Secretary shall coordinate and harmonize, to the extent possible, its activities with the national broadband plan developed by the Federal Communications Commission pursuant to title II of division A of this Act. (o)

Authorization of appropriations

(1)

In general

There are authorized to be appropriated to the Assistant Secretary to carry out this section— (A)$2,000,000,000 for fiscal year 2011; and (B)such sums as may be necessary for each fiscal year thereafter. (2)

Administrative expenses

Of the amounts appropriated under paragraph (1), not more than 6 percent shall be available for each fiscal year to pay the administrative expenses to carry out this section. (p)

Definitions

(1)

In general

As used in this section: (A)

Rural area

(i)

In general

Rule of construction

For purposes of clause (i)(II), the term urbanized area means a densely populated territory, as defined in the most recent decennial census by the Census Bureau. (B)

Broadband

Unserved area; Underserved area

For purposes of the grant program under this section, the Assistant Secretary shall define— (A)the term unserved area to mean any area where at least 90 percent of households in that area lack access to terrestrial broadband service; and (B)the term underserved area to mean any census tract, as determined by the most recent decennial census by the Census Bureau, where— (i)no more than 50 percent of households in a proposed funded service area have access to facilities-based, terrestrial broadband service at greater than 768 kilobytes per seconds; (ii)no broadband provider advertises broadband transmission speeds of at least 3 megabits per second downstream; or (iii)the rate of broadband subscribership for the proposed funded service area is 40 percent of households or less.

Offsets

(a)

Repeal of expensing and 60-Month amortization of intangible drilling costs

Subsection (c) of section 263 of the Internal Revenue Code of 1986 is amended by striking the period at the end of the third sentence and inserting , or to any costs paid or incurred after December 31, 2010.. (b)

Repeal of percentage depletion for oil and gas wells

(1)

In general

Section 613 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

(f)

Termination of percentage depletion for oil and gas properties

In the case of oil and gas properties, this section shall not apply to any taxable year beginning after December 31, 2010.

(2)

Limitations on percentage depletion in case of oil and gas wells

Section 613A of such Code is amended by adding at the end the following new subsection:

(f)

Termination

This section shall not apply to any taxable year beginning after December 31, 2010.

(c)

Denial of deduction for income attributable to domestic production of oil, natural gas, or primary products thereof

(1)

In general

Subparagraph (B) of section 199(c)(4) of the Internal Revenue Code of 1986 is amended by striking or at the end of clause (ii), by striking the period at the end of clause (iii) and inserting , or, and by inserting after clause (iii) the following new clause:

(iv)the production, refining, processing, transportation, or distribution of oil, natural gas, or any primary product thereof.

(2)

Primary product

Section 199(c)(4)(B) of such Code is amended by adding at the end the following flush sentence:

For purposes of clause (iv), the term primary product has the same meaning as when used in section 927(a)(2)(C), as in effect before its repeal.

(3)

Conforming amendments

(A)Section 199(c)(4) of such Code is amended— (i)in subparagraph (A)(i)(III) by striking electricity, natural gas, and inserting electricity, and (ii)in subparagraph (B)(ii) by striking electricity, natural gas, and inserting electricity. (B)Section 199(d) of such Code is amended by striking paragraph (9) and by redesignating paragraph (10) as paragraph (9). (4)

Effective date

The amendments made by this subsection shall apply to taxable years beginning after December 31, 2010.