[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.''.
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