[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1642 Introduced in Senate (IS)]

<DOC>






118th CONGRESS
  1st Session
                                S. 1642

    To amend the Rural Electrification Act of 1936 to establish the 
       ReConnect program under that Act, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 17, 2023

Mr. Welch (for himself and Mr. Marshall) introduced the following bill; 
  which was read twice and referred to the Committee on Agriculture, 
                        Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
    To amend the Rural Electrification Act of 1936 to establish the 
       ReConnect program under that Act, 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 ``ReConnecting Rural America Act of 
2023''.

SEC. 2. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN RURAL AREAS.

    (a) In General.--Section 601 of the Rural Electrification Act of 
1936 (7 U.S.C. 950bb) is amended--
            (1) by striking subsections (a) through (f) and inserting 
        the following:
    ``(a) Purpose.--The purpose of this section is to provide 
assistance in the form of grants, loans, and combinations of grants and 
loans for the costs of the construction, improvement, and acquisition 
of facilities and equipment for broadband service in rural areas.
    ``(b) Definitions.--In this section:
            ``(1) Broadband service.--The term `broadband service' 
        means any technology identified by the Secretary as having the 
        capacity to transmit data to enable a subscriber to the service 
        to originate and receive high-quality voice, data, graphics, 
        and video.
            ``(2) Rural area.--
                    ``(A) In general.--The term `rural area' means any 
                area other than--
                            ``(i) an area described in clause (i) or 
                        (ii) of section 343(a)(13)(A) of the 
                        Consolidated Farm and Rural Development Act (7 
                        U.S.C. 1991(a)(13)(A)); and
                            ``(ii) a city, town, or incorporated area 
                        that has a population of greater than 20,000 
                        inhabitants.
                    ``(B) Urban area growth.--The Secretary may, by 
                regulation only, consider an area described in section 
                343(a)(13)(F)(i)(I) of that Act to not be a rural area 
                for purposes of this section.
                    ``(C) Exclusion of certain populations.--The term 
                `rural area' does not include any population described 
                in subparagraph (H) or (I) of section 343(a)(13) of the 
                Consolidated Farm and Rural Development Act (7 U.S.C. 
                1991(a)(13)).
    ``(c) Grants, Loans, and Combinations.--
            ``(1) In general.--The Secretary shall make grants, loans, 
        and combinations of grants and loans to eligible entities 
        described in subsection (d) to provide funds for the 
        construction, improvement, or acquisition of facilities and 
        equipment for the provision of broadband service in rural 
        areas.
            ``(2) Project eligibility.--To be eligible for a grant, 
        loan, or grant and loan combination under paragraph (1), in 
        addition to the requirements of subsection (d), the project 
        that is the subject of the grant, loan, or grant and loan 
        combination shall--
                    ``(A) provide broadband service of at least--
                            ``(i) a 100-Mbps downstream transmission 
                        capacity; and
                            ``(ii) a 100-Mbps upstream transmission 
                        capacity; and
                    ``(B) subject to paragraph (4), be carried out in a 
                proposed service territory in which at least 75 percent 
                of the households lack access to broadband service of 
                at least--
                            ``(i) a 100-Mbps downstream transmission 
                        capacity; and
                            ``(ii) a 20-Mbps upstream transmission 
                        capacity.
            ``(3) Priority.--In making grants, loans, and grant and 
        loan combinations under paragraph (1), the Secretary--
                    ``(A) shall give priority to applications for 
                projects to provide broadband service in a proposed 
                service territory in which at least 90 percent of 
                households lack access to broadband service of at 
                least--
                            ``(i) a 100-Mbps downstream transmission 
                        capacity; and
                            ``(ii) a 20-Mbps upstream transmission 
                        capacity; and
                    ``(B) may give priority to applications for 
                projects to provide broadband service--
                            ``(i) in proposed service territories--
                                    ``(I) with a population of less 
                                than 10,000 permanent residents;
                                    ``(II) that are experiencing 
                                outmigration and have adopted a 
                                strategic community investment plan 
                                under section 379H(d) of the 
                                Consolidated Farm and Rural Development 
                                Act (7 U.S.C. 2008v(d)) that includes 
                                considerations for improving and 
                                expanding broadband service;
                                    ``(III) with a high percentage of 
                                low income families or persons (as 
                                defined in section 501(b) of the 
                                Housing Act of 1949 (42 U.S.C. 
                                1471(b))); or
                                    ``(IV) that are isolated from other 
                                significant population centers;
                            ``(ii) that would ensure that all laborers 
                        and mechanics employed by contractors or 
                        subcontractors on the construction work 
                        performed on projects financed, in whole or in 
                        part, with the grant, loan, or grant and loan 
                        combination shall be paid wages at rates not 
                        less than those prevailing on similar 
                        construction in the immediate locality as 
                        determined by the Secretary of Labor in 
                        accordance with sections 3141 through 3144, 
                        3146, and 3147 of title 40, United States Code;
                            ``(iii) that would provide rapid and 
                        expanded deployment of fixed and mobile 
                        broadband service on cropland and ranchland 
                        within the service territory for use in various 
                        applications of precision agriculture; or
                            ``(iv) submitted by an eligible entity that 
                        has provided broadband service or other utility 
                        service for not less than 5 years in rural 
                        areas in the State in which the project would 
                        be carried out.
            ``(4) Additional requirements for grant-only awards.--To be 
        eligible for assistance under paragraph (1) in the form of a 
        grant only, in addition to the requirements of subsection (d)--
                    ``(A) an entity shall be--
                            ``(i) a Tribal organization (as defined in 
                        section 4 of the Indian Self-Determination and 
                        Education Assistance Act (25 U.S.C. 5304));
                            ``(ii) a colonia;
                            ``(iii) a persistent poverty county, as 
                        determined by the Secretary; or
                            ``(iv) a socially vulnerable community, as 
                        determined by the Secretary; or
                    ``(B) the project that is the subject of the grant 
                shall be carried out in a proposed service territory in 
                which at least 90 percent of households lack access to 
                broadband service of at least--
                            ``(i) a 100-Mbps downstream transmission 
                        capacity; and
                            ``(ii) a 20-Mbps upstream transmission 
                        capacity.
    ``(d) Eligibility.--
            ``(1) Eligible entities.--
                    ``(A) In general.--To be eligible to obtain a 
                grant, loan, or grant and loan combination under 
                subsection (c), an entity shall--
                            ``(i) submit to the Secretary an 
                        application at such time, in such manner, and 
                        containing such information as the Secretary 
                        may require;
                            ``(ii) agree to complete buildout of the 
                        broadband infrastructure described in the 
                        application by not later than 5 years after the 
                        initial date on which assistance under 
                        subsection (c) is made available; and
                            ``(iii) participate or agree to participate 
                        in--
                                    ``(I) the Affordable Connectivity 
                                Program established under section 
                                904(b) of division N of the 
                                Consolidated Appropriations Act, 2021 
                                (47 U.S.C. 1752(b));
                                    ``(II) the Lifeline program under 
                                subpart E of part 54 of title 47, Code 
                                of Federal Regulations (or any 
                                successor regulation); or
                                    ``(III) any successor Federal 
                                internet affordability assistance 
                                program.
                    ``(B) Inclusions.--An entity eligible to obtain a 
                grant, loan, or grant and loan combination under 
                subsection (c) may include--
                            ``(i) a State or local government, 
                        including any agency, subdivision, 
                        instrumentality, or political subdivision of a 
                        State or local government;
                            ``(ii) a territory or possession of the 
                        United States;
                            ``(iii) an Indian Tribe (as defined in 
                        section 4 of the Indian Self-Determination and 
                        Education Assistance Act (25 U.S.C. 5304));
                            ``(iv) a cooperative or mutual 
                        organization;
                            ``(v) an organization of 2 or more 
                        incorporated areas that have established an 
                        intermunicipal legal agreement for the purpose 
                        of delivering communication services to 
                        residents;
                            ``(vi) a corporation; and
                            ``(vii) a limited liability company or 
                        limited liability partnership.
                    ``(C) Ineligible entities.--An individual or legal 
                general partnership that is formed with individuals 
                shall not be eligible to obtain a grant, loan, or grant 
                and loan combination under subsection (c).
                    ``(D) Limitation.--
                            ``(i) In general.--An eligible entity 
                        described in this paragraph that provides 
                        telecommunications or broadband service to at 
                        least 20 percent of the households in the 
                        United States may not receive an amount of 
                        funds under this section for a fiscal year in 
                        excess of 15 percent of the funds authorized 
                        and appropriated under subsection (i) for the 
                        fiscal year.
                            ``(ii) States and state agencies and 
                        instrumentalities.--A State or an agency or 
                        instrumentality of a State may not, in total, 
                        receive an amount of funds under this section 
                        for a fiscal year in excess of 15 percent of 
                        the funds authorized and appropriated under 
                        subsection (i) for the fiscal year.
                    ``(E) Previous awards.--An entity to which a grant, 
                loan, or grant and loan combination is made under 
                subsection (c) shall not use the grant, loan, or grant 
                and loan combination to deploy broadband service in a 
                service area in which broadband service is deployed by 
                any other entity that has received a broadband grant or 
                loan from the Rural Utilities Service, the National 
                Telecommunications and Information Administration, the 
                Department of the Treasury, the Federal Communications 
                Commission, or a State broadband grant program, unless 
                the service provided by the other entity does not 
                provide to at least 75 percent of the households in the 
                service area access to broadband service of at least--
                            ``(i) a 100-Mbps downstream transmission 
                        capacity; and
                            ``(ii) a 20-Mbps upstream transmission 
                        capacity.
            ``(2) Equity requirements.--
                    ``(A) In general.--The Secretary may require an 
                entity to provide a cost share in an amount not to 
                exceed 25 percent of the amount of the grant (including 
                the grant in a grant and loan combination) under 
                subsection (c) requested in the application of the 
                entity.
                    ``(B) Waiver.--The Secretary may waive the cost 
                share requirement under subparagraph (A) for entities 
                or projects described in subsection (c)(4).
            ``(3) Technical assistance and training.--
                    ``(A) In general.--The Secretary may provide to 
                eligible entities described in paragraph (1) that are 
                applying for assistance under this section for a 
                project described in subsection (c)(3)(A) technical 
                assistance and training--
                            ``(i) to prepare reports and surveys 
                        necessary to request grants, loans, and grant 
                        and loan combinations under this section for 
                        broadband deployment;
                            ``(ii) to improve management, including 
                        financial management, relating to the proposed 
                        broadband deployment;
                            ``(iii) to prepare applications for grants, 
                        loans, and grant and loan combinations under 
                        this section; or
                            ``(iv) to assist with other areas of need 
                        identified by the Secretary.
                    ``(B) Funding.--Not less than 3 percent and not 
                more than 5 percent of amounts appropriated under 
                subsection (i) to carry out this section for a fiscal 
                year shall be used for technical assistance and 
                training under this paragraph.
    ``(e) Broadband Service.--
            ``(1) In general.--Subject to paragraph (2), for purposes 
        of this section, the minimum acceptable level of broadband 
        service for a rural area shall be at least--
                    ``(A) a 100-Mbps downstream transmission capacity; 
                and
                    ``(B) a 100-Mbps upstream transmission capacity.
            ``(2) Adjustments.--At least once every 2 years, the 
        Secretary shall review, and may adjust through notice published 
        in the Federal Register, the minimum acceptable level of 
        broadband service established under paragraph (1) and broadband 
        buildout requirements under paragraph (3) to ensure that high-
        quality, cost-effective broadband service is provided to rural 
        areas over time.
            ``(3) Broadband buildout requirements.--
                    ``(A) Definition of broadband buildout 
                requirement.--In this paragraph, the term `broadband 
                buildout requirement' means the level of internet 
                service an applicant receiving assistance under this 
                section must agree, at the time the application is 
                finalized, to provide for the duration of any project-
                related agreement between the applicant and the 
                Department.
                    ``(B) Establishment of broadband buildout 
                requirements.--The Secretary shall establish broadband 
                buildout requirements that--
                            ``(i) utilize the same metrics used to 
                        define the minimum acceptable level of 
                        broadband service under paragraph (1); and
                            ``(ii) reasonably ensure--
                                    ``(I) the repayment of all loans; 
                                and
                                    ``(II) the financed network is 
                                technically capable of providing 
                                broadband service for the lifetime of 
                                any project-related agreement.
                    ``(C) Substitute service standards for unique 
                service territories.--
                            ``(i) In general.--If an applicant shows 
                        that it would be cost prohibitive to meet the 
                        broadband buildout requirements established 
                        under this paragraph for the entirety of a 
                        proposed service territory due to the unique 
                        characteristics of the proposed service 
                        territory, the Secretary and the applicant may 
                        agree to utilize substitute standards for any 
                        unserved portion of the project.
                            ``(ii) Requirement.--Any substitute service 
                        standards described in clause (i) should 
                        continue to consider the best technology 
                        available to meet the needs of the residents in 
                        the unserved area.'';
            (2) by redesignating subsections (g), (h), and (i) as 
        subsections (f), (g), and (h), respectively;
            (3) in subsection (f) (as so redesignated)--
                    (A) in the subsection heading, by striking ``Loans 
                and Loan Guarantees.--'' and inserting ``Loans.--''; 
                and
                    (B) in paragraph (1)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``or loan guarantee''; and
                            (ii) in subparagraph (A)--
                                    (I) by striking clause (ii);
                                    (II) by striking ``Secretary--'' in 
                                the matter preceding clause (i) and all 
                                that follows through ``in the case'' in 
                                the matter preceding subclause (I) of 
                                clause (i) and inserting ``Secretary in 
                                the case''; and
                                    (III) by redesignating subclauses 
                                (I) and (II) as clauses (i) and (ii), 
                                respectively, and indenting 
                                appropriately;
            (4) in subsection (g) (as so redesignated), by striking 
        ``or loan guarantee'' each place it appears;
            (5) in subsection (h) (as so redesignated), in paragraph 
        (1), by striking ``1974)'' and inserting ``1974 (2 U.S.C. 
        661a))''; and
            (6) by striking subsections (j) and (k) and inserting the 
        following:
    ``(i) Funding.--
            ``(1) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary to carry out subsections 
        (a) through (h) $650,000,000 for each of fiscal years 2024 
        through 2028, to remain available until expended.
            ``(2) Administration.--Not more than 5 percent of the 
        amounts made available under paragraphs (1) and (3) shall be 
        available to the Secretary for the administration of 
        subsections (a) through (h).
            ``(3) Direct funding.--
                    ``(A) Rescission.--There is rescinded the 
                unobligated balance of amounts made available to carry 
                out section 779 of division A of the Consolidated 
                Appropriations Act, 2018 (Public Law 115-141; 132 Stat. 
                399).
                    ``(B) Direct funding.--On the day after the 
                execution of the rescission in subparagraph (A), there 
                is appropriated to the Secretary, out of amounts in the 
                Treasury not otherwise appropriated, an amount equal to 
                the amount rescinded in subparagraph (A), to carry out 
                subsections (a) through (h), to remain available until 
                expended.
    ``(j) Additional Rural Broadband Program Loans.--
            ``(1) In general.--The Secretary may provide direct loans 
        in accordance with the requirements under this section, as in 
        effect on the day before the date of enactment of the 
        ReConnecting Rural America Act of 2023.
            ``(2) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary to carry out this 
        subsection $350,000,000 for each of fiscal years 2024 through 
        2028, to remain available until expended.
    ``(k) Termination of Authority.--No grant, loan, or grant and loan 
combination may be made under this section after September 30, 2028.''.
    (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.
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