[Congressional Record (Bound Edition), Volume 148 (2002), Part 15]
[Extensions of Remarks]
[Page 20594]
[From the U.S. Government Publishing Office, www.gpo.gov]




              THE ``COMMERCIAL SPECTRUM ENHANCEMENT ACT''

                                 ______
                                 

                            HON. FRED UPTON

                              of michigan

                    in the house of representatives

                       Thursday, October 10, 2002

  Mr. UPTON. Mr. Speaker, as Chairman of the House Energy and Commerce 
Subcommittee on Telecommunications and the Internet, I am pleased to 
join the distinguished Chairman of the House Energy and Commerce 
Committee, Mr. Tauzin, in introducing the ``Commercial Spectrum 
Enhancement Act''.
  Earlier this year, we significantly changed spectrum auction policy 
by freeing the FCC's hands with respect to when auctions should be 
conducted. Now, with this bill, we are making another significant down 
payment on our Committee's spectrum reform efforts, by eliminating 
grave inefficiencies in spectrum management which have thwarted 
spectrum relocation efforts to date.
  The commercial wireless industry must have additional spectrum to 
provide innovative new services and other critical benefits to the 
American public and to foster economic growth. However, spectrum ideal 
for next generation wireless services currently is encumbered by the 
federal government.
  We all recognize the need to relocate federal government incumbents 
to comparable spectrum in order to make way for the commercial wireless 
industry, but the road to relocating federal government incumbents to 
comparable spectrum (or alternative facilities) is unpaved and filled 
with potholes. The ``Commercial Spectrum Enhancement Act'' would pave 
that road, establishing procedures to ensure a timely, certain, and 
privately--yet fully--funded relocation of federal incumbents to 
comparable spectrum (or alternative facilities). Hence, this bill 
represents a ``win-win'' for both the government and the commercial 
wireless industry, not to mention our nation's wireless users.
  Under the bill's provisions, when executive branch agencies are 
required to relocate spectrum operations to a different spectrum band 
(or to switch to non-spectrum dependent facilities to transmit 
telecommunications), the agencies will have access to a trust fund from 
which their relocation costs will be paid. Relocation will be required 
when spectrum currently occupied by governmental entities is 
reallocated for commercial use.
  If an agency is required to relocate its spectrum operations, the 
agency must be able to achieve comparable telecommunications capability 
in the new band (or with the non-spectrum dependent facilities).
  Six months before the FCC conducts an auction of spectrum that has 
been reallocated for commercial use, NTIA (working in conjunction with 
the affected agency and OME) submits to the FCC a preliminary cost 
estimate and timeline for relocation.
  For an auction of reallocated spectrum to be valid, the net proceeds 
of the auction must be at least 110 percent of the preliminary costs 
estimated by NTIA.
  The auction proceeds, rather than being placed in the General Fund at 
Treasury, are deposited in a Spectrum Relocation Fund, from which 
relocation costs will be paid.
  The relocation fund is administered by OMB in consultation with NTIA. 
OMB determines whether an agency's costs are legitimate and whether the 
agency's timeline for relocation is appropriate.
  The Energy and Commerce Committee, Senate Committee on Commerce, 
Science, and Transportation, and the House and Senate Appropriations 
Committees must be notified 30 days before money is transferred from 
the relocation fund to an agency. Also, the NTIA will be required to 
file periodic reports to apprise Congress of the progress being made to 
relocate in a timely and cost-effective manner.
  I look forward to working with Mr. Tauzin, other Members of the 
Energy and Commerce Committee, other interested committees, and the 
Bush Administration to advance this legislation in a bipartisan 
fashion.

                          ____________________