[Congressional Record Volume 169, Number 19 (Monday, January 30, 2023)]
[Senate]
[Pages S148-S150]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. THUNE (for himself, Mr. Lujan, Ms. Klobuchar, and Mrs. 
        Fischer):
  S. 130. A bill to amend the Rural Electrification Act of 1936 to 
reauthorize and improve the ReConnect loan and grant program, and for 
other purposes; to the Committee on Agriculture, Nutrition, and 
Forestry.
  Mr. THUNE. Madam President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 130

       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.'';

[[Page S149]]

       (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.'';
       (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 ``$350,000,000 for each of fiscal years 2019 
     through 2023'' and inserting ``such sums as are necessary for 
     each fiscal year''.

[[Page S150]]

       (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.''.
                                 ______