[Senate Report 112-260]
[From the U.S. Government Publishing Office]


112th Congress                                                   Report
                                 SENATE
 2d Session                                                     112-260
_______________________________________________________________________

                                     

                                                       Calendar No. 546

           PUBLIC SAFETY SPECTRUM AND WIRELESS INNOVATION ACT

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                 S. 911



                                     

               December 21, 2012.--Ordered to be printed


       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                      one hundred twelfth congress
                             second session

            JOHN D. ROCKEFELLER IV, West Virginia, Chairman
DANIEL K. INOUYE, Hawaii\1\          KAY BAILEY HUTCHISON, Texas
JOHN F. KERRY, Massachusetts         OLYMPIA J. SNOWE, Maine
BARBARA BOXER, California            JIM DeMINT, South Carolina
BILL NELSON, Florida                 JOHN THUNE, South Dakota
MARIA CANTWELL, Washington           ROGER F. WICKER, Mississippi
FRANK R. LAUTENBERG, New Jersey      JOHNNY ISAKSON, Georgia
MARK PRYOR, Arkansas                 ROY BLUNT, Missouri
CLAIRE McCASKILL, Missouri           JOHN BOOZMAN, Arkansas
AMY KLOBUCHAR, Minnesota             PATRICK J. TOOMEY, Pennsylvania
TOM UDALL, New Mexico                MARCO RUBIO, Florida
MARK WARNER, Virginia                KELLY AYOTTE, New Hampshire
MARK BEGICH, Alaska                  DEAN HELLER, Nevada
                     Ellen Doneski, Staff Director
                   James Reid, Deputy Staff Director
                     John Williams, General Counsel
               Richard Russell, Republican Staff Director
            David Quinalty, Republican Deputy Staff Director
               Rebecca Seidel, Republican General Counsel

----------
\1\The late Senator Inouye served on the Committee until his death on 
December 17, 2012.


                                                       Calendar No. 546
112th Congress                                                   Report
                                 SENATE
 2d Session                                                     112-260

======================================================================



 
           PUBLIC SAFETY SPECTRUM AND WIRELESS INNOVATION ACT

                                _______
                                

               December 21, 2012.--Ordered to be printed

                                _______
                                

     Mr. Rockefeller, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 911]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 911) to establish the sense of 
Congress that Congress should enact, and the President should 
sign, bipartisan legislation to strengthen public safety and to 
enhance wireless communications, having considered the same, 
reports favorably thereon with an amendment (in the nature of a 
substitute) and recommends that the bill (as amended) do pass.

                          Purpose of the Bill

  The purpose of S. 911, the Public Safety Spectrum and 
Wireless Innovation Act, as reported, is to provide for the 
creation and deployment of a nationwide interoperable wireless 
broadband network for public safety; to provide the Federal 
Communications Commission (FCC) with incentive auction 
authority; to facilitate more efficient uses of spectrum used 
by Federal Government users; and to provide for deficit 
reduction.

                          Background and Needs

  Wireless services are a vital part of our daily life, a key 
component of our national infrastructure, and a growing force 
in the American economy. Today, more than eight in ten adults 
own a mobile telephone. But they use their wireless connections 
to do much more than just speak. Nearly six in ten adults now 
go online wirelessly, using either a mobile telephone or a 
laptop. Moreover, the growing market created by the mobile 
Internet has become a driving force for the nation's economy 
and a source of new jobs. According to a recent Mobile Future 
study, the reassignment of spectrum to mobile broadband over 
the next five years could spur $75 billion in new capital 
spending, creating more than 300,000 new jobs and $230 billion 
in additional Gross Domestic Product. Similarly, Deloitte 
estimates that United States investment in fourth generation 4G 
wireless networks during the next five years could account for 
as much as $151 billion in gross domestic product growth and as 
many as 771,000 new jobs.
  In addition, wireless broadband services can improve the 
ability of our Nation's first responders to protect us in 
emergencies. For instance, cutting-edge mobile technologies can 
provide firefighters with access to high-speed downloads, such 
as floor plans for a burning building, to better navigate and 
ultimately reach potential victims. Mobile broadband also has 
become critical for Federal agencies to continue their 
missions, such as national defense and homeland security.
  But for new mobile technologies to meet the growing demands 
of commercial and public safety users, they need access to more 
of the airwaves-radio spectrum-on which they rely. Radio 
spectrum is the portion of electromagnetic frequencies suitable 
for wireless communications. In light of the importance of 
wireless infrastructure in the economy, the growing popularity 
of wireless devices, and the increasing demand for this scarce 
resource, it is prudent to consider how both Federal and non-
Federal licensees make use of the airwaves today. Failure to 
make smart use of spectrum could lead to less mobile coverage, 
diminished service quality, and slower service speeds. 
Moreover, unless additional spectrum is made available for 
mobile broadband, wireless innovation may slow or even stop. 
This could have a negative effect on the economy and hamper 
innovation. In the past, the Federal Government has addressed 
the need for more spectrum on a band-by-band or service-by-
service basis. But sometimes this approach can be inefficient, 
limit flexibility, and make reacting to changing technology 
difficult.
  S. 911 addresses the limitations of the traditional approach 
to spectrum management by using a new tool, called voluntary 
incentive auctions, to manage spectrum. By allowing current 
spectrum users to realize a portion of the revenue generated 
from reassigning their license, incentive auctions will provide 
a financial incentive for current spectrum users to work with 
the FCC to reallocate their licenses for efficient uses, such 
as mobile broadband. But more importantly, these voluntary 
incentive auctions also will raise funds to build a nationwide 
wireless broadband network for our nation's first responders. 
Finally, additional proceeds that are expected from the 
incentive auctions will help reduce the Federal deficit by 
billions of dollars.

I. LACK OF NATIONWIDE INTEROPERABLE BROADBAND NETWORK FOR PUBLIC SAFETY

  Despite being almost 10 years since the September 11, 2001 
tragedies, and almost 6 years since Hurricane Katrina, there is 
no nationwide interoperable public safety communications 
system.
  As a practical matter, this means that there is no common 
system that enables public safety entities to communicate among 
one another-both across agencies and between jurisdictions.
  To date, some jurisdictions have achieved varying degrees of 
interoperability within their locality, region, or State. 
However, these systems have been focused on narrowband 
communications. Narrowband networks typically are limited to 
voice communications, a lot like traditional dispatch radio 
services. They have served public safety for decades but 
generally lack the sophistication and functionality of most 
modern commercial communications networks.
  The long-term goal for public safety communications is 
finding a way to provide interoperable communications on a 
nationwide basis over broadband networks. Broadband networks 
can make it possible for public safety entities to be able to 
remotely access criminal databases, distribute surveillance 
video feeds to on-scene personnel, and receive high-speed file 
downloads wirelessly. Broadband can also enhance the Nation's 
next-generation 911 system, integrating support for multimedia 
communications (such as text, e-mail, and video) into the 
existing E911 system. In short, they can make public safety 
officials more effective, more efficient, and more capable of 
communicating with one another.
  In its 2004 report, the National Commission on Terrorist 
Attacks Upon the United States (9-11 Commission) called 
attention to this need for public safety communications 
interoperability. Specifically, the 9-11 Commission found that 
first responders were unable to communicate at the World Trade 
Center, Pentagon, and Somerset, Pennsylvania crash sites. The 
9-11 Commission concluded that this was ``strong evidence that 
compatible and adequate communications among public safety 
organizations at the local, State, and Federal levels remains 
an important problem.'' As a result, in its report, the 9-11 
Commission called for the expedited and increased assignment of 
radio spectrum for public safety purposes. More recently, in 
March of this year, the Chairman and Vice Chairman of the 9-11 
Commission, former Governor Tom Kean and former Congressman Lee 
Hamilton, urged Congress to finally address this problem by 
immediately allocating a 10 megahertz band of 700 MHz spectrum 
known as the D Block to public safety to help form a nationwide 
interoperable wireless broadband network for first responders.
  Despite these consistent calls for a nationwide interoperable 
wireless broadband network for public safety, first responders 
currently lack the spectrum and funding necessary to facilitate 
national, interoperable, broadband-capable communications. 
Roughly half the spectrum that has been allocated for public 
safety services in the past has physical characteristics that 
are suitable for local hotspots around individual incidents, 
but are ill-suited for a nationwide broadband network. Much of 
the remaining spectrum allocated for public safety is made up 
of small slices that are designed for narrowband voice 
communications, with limited broadband capability. And this 
patchwork of narrow blocks of spectrum is too diverse and 
scattered to be tied together into a single, nationwide network 
suitable for ubiquitous broadband service.
  In addition to a lack of suitable spectrum, public safety 
lacks the financial resources to develop a nationwide broadband 
network. Instead, previous Federal grant programs, including 
the Public Safety Interoperable Communications Program and 
Broadband Technology Opportunities Program, have focused on 
developing local networks with limited geographic scope and 
public safety access. Such networks may eventually be 
interoperable with a nationwide system, but these local 
networks alone are insufficient to cover the entire nation. 
Moreover, because they are only local or regional in nature, 
they often have been procured at high cost and without the 
efficiency that comes with national scale. Consequently, the 
sums spent to date on interoperability have led to networks and 
equipment that lack nationwide capability, fall short of true 
interoperability, and are often focused only on voice service, 
rather than broadband functionality. In short, while some 
progress has been made in developing local interoperability for 
first responders, past programs do not answer the call for a 
nationwide, interoperable, wireless broadband network for 
public safety that was first made in the 9-11 Commission report 
and repeated by the Chairman and Vice Chairman of the 9-11 
Commission before Congress this year.

BACKGROUND.

  The 700 MHz band was made available for wireless services as 
part of the digital television transition. Under the Balanced 
Budget Act of 1997, Congress directed the FCC to set aside 24 
megahertz of spectrum in the 700 MHz band for public safety 
use.
  Later, Congress passed the Digital Television Transition and 
Public Safety Act (DTV Act) as part of the Deficit Reduction 
Act of 2005 (P.L. 109-171). Under the DTV Act, the FCC was 
directed to auction 63 megahertz of spectrum designated for 
commercial services in the 700 MHz band of spectrum vacated by 
full-power television stations transitioning to digital-only 
broadcasts.
  In 2007, the FCC allocated 10 megahertz of the 700 MHz public 
safety spectrum for broadband communications, consolidated 
existing narrowband allocations in 12 megahertz of the band, 
and created an internal guard band of 2 megahertz between the 
broadband and narrowband allocations.
  In establishing auction rules for the 700 MHz band (Auction 
73), the FCC proposed to set aside the 10 MHz of broadband 
public safety spectrum and pair it with 10 MHz of commercial 
spectrum known as the D Block. Together, these blocks would 
create a shared network of 20 megahertz for a nationwide 
broadband network. The future auction winner of the D Block 
would have been required to enter into a public-private 
partnership with the public safety broadband licensee to build 
a shared nationwide network, according to specifications 
negotiated with the public safety licensee.
  On March 18, 2008, Auction 73 ended with the only bid for the 
D Block license falling well below the reserve price set by the 
FCC. Following the unsuccessful auction, the FCC sought comment 
on alternative options for the disposal of the D Block. 
Comments in response ranged from advocating for the 
unencumbered auction of the D Block to the granting of spectrum 
to regional public safety entities to an auction using a 
revised public-private partnership model. This rulemaking 
remains pending at the FCC.
  In the interim, several public safety jurisdictions (waiver 
jurisdictions) have sought waivers to begin construction of 
local or regional wireless broadband systems on the 10 
megahertz of public safety broadband spectrum. On May 12, 2010, 
the FCC conditionally approved 21 of these waiver petitions, 
subject to a number of conditions designed to ensure that 
early-built systems will be interoperable nationwide and 
capable of being integrated with the eventual national network. 
The FCC made clear that the overarching goal was to ensure a 
nationwide interoperable network available to all public safety 
personnel. The FCC also made clear that any deployment or 
expenditures made by waiver jurisdictions were undertaken at 
their own risk. On May 12, 2011, the FCC conditionally approved 
an additional waiver jurisdiction. Several other jurisdictions 
subsequently have sought similar waivers. Those requests remain 
pending at the FCC.

FCC'S NATIONAL BROADBAND PLAN.

  In light of the D Block's history, the FCC staff's National 
Broadband Plan in March 2010, recommended that the FCC abandon 
the public-private partnership previously contemplated. 
Instead, the plan recommended that the FCC re-auction the D 
Block spectrum for commercial purposes. Rather than imposing a 
requirement on an eventual D Block auction winner to build a 
joint network, the plan instead recommended that the FCC create 
incentives to encourage--but not require--the D Block winner to 
partner with public safety. The plan also recommended that 
public safety build and operate its own network in the 10 
megahertz of spectrum previously allocated to it and, if 
feasible, leverage the commercial build-out by the D Block 
winner or other commercial licensees.
  To help public safety fund the initial construction of its 
network in the 10 megahertz of spectrum, the National Broadband 
Plan recommended that Congress appropriate $6.5 billion for a 
public safety wireless broadband spectrum grant program. To 
help public safety continue to operate this network in the 
long-term, the plan recommended that Congress authorize an 
ongoing funding mechanism of as much as $9.5 billion over the 
next ten years.

PUBLIC SAFETY RESPONSE.

  With near unanimity, public safety officials opposed the 
National Broadband Plan's recommendation to auction the D 
Block. Specifically, they noted that the D Block is immediately 
adjacent to the existing public safety broadband allocation, 
and therefore is uniquely valuable to first responders. 
Furthermore, they noted that combining these two pieces of 
spectrum is critical to future public safety broadband needs. 
Doing so will provide public safety with additional throughput 
capacity and help it avoid the problems public safety has 
encountered in the past with attempts to achieve 
interoperability over multiple spectrum bands. Moreover, as 
more essential communications migrate to broadband and wireless 
platforms, combining the spectrum will provide public safety 
officials with the capacity to adopt advanced communications 
technologies in an economically efficient way, improving local, 
regional, and national safety.
  Critics of the National Broadband Plan also noted that the 
recommendation to allow public safety entities to gain priority 
access to commercial networks ignores the reality that 
commercial networks are not constructed and hardened to public 
safety specifications. This could result in commercial networks 
being unavailable to first responders in emergencies--the very 
time public safety needs access to reliable and interoperable 
communications.
  Finally, critics of the plan acknowledge that over the years, 
significant sums have been spent trying to help public safety 
achieve interoperable communications among their legacy 
narrowband systems. But they point out that past efforts have 
been focused on retrofitting and knitting together outdated and 
proprietary equipment and infrastructure, using diverse slivers 
of spectrum bands to achieve interoperability. This approach 
has not been uniformly successful, and typically has only 
produced local or regional system compatibility. Moreover, 
continuing this patchwork approach is extraordinarily expensive 
and unlikely to yield nationwide results. As a result, a 
wireless broadband network for public safety--with 20 megahertz 
of contiguous spectrum available nationwide and with sufficient 
funding--will provide a critical fresh start, alleviate 
challenges public safety has faced in achieving 
interoperability in the past, and provide room for wireless 
service growth in the future. Furthermore, this can be 
accomplished in an economically efficient way by leveraging 
existing commercial infrastructure and capitalizing on the 
significant efficiencies possible with an Evolved Packet Core 
associated with Radio Access Networks deployed nationwide.

PRESIDENT'S WIRELESS INNOVATION AND INFRASTRUCTURE INITIATIVE.

  On June 28, 2010, the President issued a Memorandum titled 
``Unleashing the Wireless Broadband Revolution.'' It provided a 
framework to expand wireless broadband services through 
repurposing spectrum, with the goal of making available a total 
of 500 megahertz of Federal and non-Federal spectrum suitable 
for mobile and fixed wireless services over the next ten years.
  In his January 25, 2011, State of the Union address, the 
President highlighted the important role of wireless 
infrastructure in the economy. His speech included a call for 
policies that enable businesses to provide high-speed wireless 
service to at least 98 percent of all Americans within five 
years. He also noted that wireless broadband services can 
improve public safety, citing the example of a firefighter 
being able to download to a handset the blueprint of a burning 
building.
  The State of the Union was followed by the February 10, 2011 
release of the President's ``Wireless Innovation and 
Infrastructure Initiative.'' This Initiative builds on the 
themes in the earlier Presidential Memorandum. It calls on 
Congress to facilitate the availability of additional spectrum 
to meet the growing demand for wireless services. Specifically, 
the Initiative recommends providing the FCC with authority to 
hold voluntary incentive auctions to promote the more efficient 
use of our airwaves and further efforts to promote the more 
efficient use of Federal government spectrum. The Initiative 
also recommends reallocating the D Block spectrum for public 
safety use. It estimates that the auction of spectrum 
voluntarily relinquished by current commercial users through 
incentive auctions could fund the development and deployment of 
a nationwide interoperable wireless broadband network for 
public safety; fund research and development in emerging 
wireless technologies and applications; and reduce the deficit 
by billions of dollars over the next decade.

        II. NEED FOR ADDITIONAL SPECTRUM FOR WIRELESS BROADBAND

  A growing number of Americans are using wireless services to 
access the Internet and broadband-enabled services. One-third 
of mobile telephones in this country are now smartphones that 
feature Internet functionality and broadband capability. Last 
year alone, mobile data traffic grew by 300 percent.
  Moreover, mobile broadband services are an engine for the 
economy and a source of job creation. Over the past decade, the 
wireless industry has spent more than $185 billion in private 
capital and created approximately 420,000 new jobs. In the next 
five years, mobile broadband applications alone are predicted 
to generate $38 billion in sales. Plus, there is growing demand 
for additional unlicensed spectrum-the spectrum that is already 
responsible for important services like Wi-Fi. Some have 
estimated that use of unlicensed spectrum already generates up 
to $30 billion in value for the economy each year. More 
unlicensed spectrum can enable new innovations that can bring 
in tens of billions of dollars in additional economic value in 
the coming years.
  This growing demand for wireless service clearly informed the 
Presidential Memorandum and Presidential Initiative, and led to 
the Administration calling for efforts to make 500 megahertz of 
spectrum newly available for both mobile and fixed wireless 
broadband uses over the next ten years. As noted above, to help 
accomplish these goals, the President called on Congress to 
authorize the FCC to hold voluntary incentive auctions. In an 
incentive auction, existing license holders can receive a 
portion of the proceeds realized by the auction of their 
spectrum licenses. This sharing of proceeds creates inducements 
for licensees to cooperate with the FCC in reallocating their 
licenses for wireless broadband.
  A bipartisan group of 112 economists, including Nobel and 
Nemmers Laureates, endorsed the President's plan to give the 
FCC authority to use voluntary incentive auctions to increase 
spectrum efficiency. On April 6, 2011, these economists sent a 
letter to the President, noting that current efforts to 
repurpose spectrum typically involve complex, multi-party 
transactions. In contrast, centralized incentive auctions would 
use a market-based approach to facilitate the repurposing of 
spectrum while minimizing transaction costs. The economists 
also suggested that the FCC be given flexibility to work with 
auction experts to design the auction rules to maximize 
economic and societal benefits.

     III. IMPROVEMENTS TO FEDERAL GOVERNMENT SPECTRUM USE POLICIES

  Federal agencies use spectrum for a variety of purposes, 
including national defense, law enforcement, emergency relief, 
scientific research, weather data analysis, space, and maritime 
and air traffic control. The National Telecommunications and 
Information Administration (NTIA) at the Department of Commerce 
oversees Federal uses of spectrum.
  The NTIA reviews and certifies spectrum support for new 
Federal systems, coordinates satellite operations, conducts 
border coordination and international negotiation, coordinates 
strategic planning, and performs spectrum engineering and 
analysis. More than 60 Federal agencies receive spectrum 
assignments from the NTIA. To help direct how these agencies 
should best use spectrum to meet their needs, the NTIA relies 
on assistance from the Interdepartment Radio Advisory 
Committee, which is comprised of representatives from 19 
Federal agencies.
  Still, critics have charged that Federal spectrum users can 
be more efficient with the airwaves allocated to them by the 
NTIA, especially as wireless needs and technology evolve over 
time. This is challenging, however, because the Federal 
government often operates a variety of systems within a 
specific band that may have little in common from a 
technological perspective.
  Efforts to date to promote efficient use and repurpose 
Federal spectrum for commercial use include the Commercial 
Spectrum Enhancement Act (P.L. 108-494). That law established a 
Spectrum Relocation Fund through which Federal agencies can 
recover the cost of relocating their radio systems from 
spectrum bands that are authorized for commercial auction. 
However, additional resources may be necessary for spectrum 
planning to promote and reward efficient Federal use in advance 
of commercial auction authorization.
  As noted above, the Presidential Memorandum announced the 
goal of securing an additional 500 megahertz of spectrum 
suitable for wireless broadband use over the next decade. As 
part of this effort, the President directed the Secretary of 
Commerce, working through the NTIA, to collaborate with the FCC 
to develop a specific plan and timetable for making this 
spectrum available for commercial use. The NTIA was instructed 
to convene a Policy and Plans Steering Group to advise it, with 
support from the Secretaries of Defense, the Treasury, 
Transportation, State, the Interior, Agriculture, Energy, and 
Homeland Security; the Attorney General; the Administrators of 
the National Aeronautics and Space Administration and the 
Federal Aviation Administration; the Director of National 
Intelligence; the Commandant of the United States Coast Guard; 
and the head of any other executive department or agency that 
is currently authorized to use spectrum.
  On November 15, 2010, the NTIA produced a ten-year plan 
designed to meet the President's goal. The report identified 
over 2200 megahertz of Federal and non-Federal spectrum as 
prospects for repurposing for broadband use and set a timetable 
for making 500 megahertz available. The NTIA report also called 
for incentives to help Federal agencies relocate to new 
spectrum, including funding agencies' planning expenses and 
provisioning a portion of the proceeds from spectrum auctions 
to purchase new equipment.
  In addition, the NTIA performed a ``Fast Track Evaluation'' 
to determine if any of four specific Federal spectrum bands 
could be made available within five years. The evaluation 
identified 15 megahertz between 1695 and 1710 MHz. As part of 
this evaluation, the NTIA concluded that the 1695-1710 MHz band 
offered opportunity for wireless broadband while minimizing 
overall disruption to Federal agencies. However, the NTIA 
concluded that the 1690-1695 MHz band would be difficult to 
reallocate because emergency managers and the public rely on 
information broadcast on that band from National Oceanographic 
and Atmospheric Administration satellites. This information 
includes severe weather warnings and forecasts via the 
Emergency Manager's Weather Information Network and re-
broadcast data from ground-based sensors, such as flood gauges.
  As part of this evaluation, the NTIA also considered options 
to reallocate the 3500-3650 MHz spectrum band and concluded 
that the 3550-3650 MHz band offered the best opportunity to 
implement wireless broadband over large portions of the United 
States, subject to exclusion zones. The NTIA found that 
repurposing spectrum above 3550 MHz greatly reduced the 
potential for interference from high power radars operating 
below 3500 MHz. The NTIA also recommended studying 40 megahertz 
within 4200 and 4400 MHz to determine whether radio altimeters 
operating in these bands would be affected.
  Finally, on January 31, 2011, the NTIA announced plans to 
prioritize a detailed analysis of the 1755-1850 MHz band, which 
is currently used by the Department of Defense, Federal law 
enforcement agencies, and other agencies for a variety of 
satellite, surveillance, aeronautical operations, fixed 
microwave and other operations. The NTIA focused on this band 
because the frequencies are particularly well suited for 
commercial broadband--the band is harmonized internationally 
for mobile operations, wireless equipment already exists, and 
the band has characteristics advantageous for mobile 
operations. For these reasons, the National Broadband Plan also 
recommended studying this spectrum for possible pairing with 
the 2155-2180 MHz band at auction.

              IV. IMPORTANCE OF OVER-THE-AIR BROADCASTING

  Broadcasting is an important feature of the national media 
landscape and a significant use of our national spectrum 
resources. In exchange for licenses to use public spectrum, 
broadcasters are expected to use this resource and provide 
programming ``in the public interest.'' As a result, many 
broadcasters provide news, information, and entertainment that 
is locally significant. Moreover, as a uniquely local medium, 
broadcasters often reflect the values of the communities in 
which they provide service.
  Reliance on over-the-air television broadcasting has declined 
over the last decade. Most television viewers enjoy local 
broadcasting news, information, and entertainment programming 
through multichannel video programming services (MVPDs). It is 
the intent of the Committee that broadcast licensees wishing to 
serve their communities and remain in the business of local 
broadcasting should have a reasonable opportunity to do so, 
consistent with the terms of their existing license and the 
public interest.

                         Summary of Provisions

  S. 911 would directly allocate the 700 MHz D Block spectrum 
to public safety for pairing with previously allocated 700 MHz 
spectrum to allow for a contiguous wireless network in the 700 
MHz band that will meet the needs of public safety for many 
years to come. S. 911 would also make Federal funds available 
to guarantee that first responders across the country will have 
access to a modern interoperable wireless broadband network. 
The costs of this network would be offset by proceeds from 
spectrum auctions authorized in the bill. The bill would 
establish a streamlined, independent non-profit Corporation to 
hold the public safety broadband spectrum license, to build and 
oversee the wireless network, and to ensure seamless nationwide 
interoperability. The Corporation would be charged with 
ensuring a nationwide architecture that controls costs by 
leveraging economies of scope and scale. The nationwide 
architecture would also prevent the mistakes of the past by 
protecting against balkanized, proprietary, local networks that 
cannot be truly interoperable.
  The bill would put in place a number of accountability and 
transparency measures to ensure that the funds are spent wisely 
and efficiently. In addition, the bill would direct the 
Corporation to leverage existing infrastructure and to enter 
into public-private partnerships to maximize cost-savings and 
efficiencies. The bill would also create a National Institute 
of Standards and Technology (NIST)-directed program to research 
and develop standards, technologies, and applications that 
advance wireless public safety communication.
  S. 911 would direct the FCC to auction prime wireless 
broadband spectrum for commercial uses, including the 
reallocation of at least 55 megahertz of spectrum currently 
held by the Federal government. The bill also would provide the 
FCC with incentive auction authority while ensuring that such 
auctions are voluntary. In connection with voluntary incentive 
auctions, the bill would put in place a number of protections 
for television broadcasters. The bill would make clear that 
broadcasters will not be forced to involuntarily share channels 
as a result of the repacking process. The bill would direct the 
FCC to preserve station population coverage and avoid increases 
in signal interference as a result of the repacking process. 
Furthermore, the bill would guarantee a portion of incentive 
auction proceeds will be directed to assist broadcasters and 
MVPDs affected by the repacking process.
  S. 911 importantly would dedicate revenues from these 
spectrum auctions, especially the new incentive auctions, to 
solve a pressing national public safety need--funding for a 
nationwide interoperable wireless broadband network for first 
responders. While the Committee understands that any rules the 
FCC would adopt to implement incentive auctions will be complex 
and will need to balance competing interests, an important 
consideration for the FCC must be the need to provide adequate 
funding for our nation's first responders.
  S. 911 would also foster commercial innovation and more 
efficient uses of Federal government spectrum. The bill would 
promote more innovative and efficient use of commercial 
spectrum by giving the FCC flexibility to create new unlicensed 
spectrum, directing the FCC to promote a more robust secondary 
spectrum market and to update and streamline its experimental 
license regulations, and directing the Government 
Accountability Office (GAO) to study receiver standards. The 
bill would increase research efforts at the National Science 
Foundation (NSF), NIST, and Defense Advanced Research Projects 
Agency (DARPA) in advanced information and communications 
technologies. The bill would direct the FCC and the NTIA to 
conduct a joint spectrum inventory. In addition, the bill would 
update the spectrum relocation process to facilitate 
opportunities and incentives for Federal government spectrum 
sharing and reallocation. The bill would direct Federal 
agencies to study the economic value of the spectrum that they 
use to better inform Federal spectrum management decisions. 
Finally, the bill would direct the NTIA and the FCC to develop 
a comprehensive strategic national spectrum plan.

                          Legislative History

  In the 111th Congress, Senator Rockefeller, Chairman of the 
Senate Committee on Commerce, Science, and Transportation, 
introduced the Public Safety Spectrum and Wireless Innovation 
Act, S. 3756, on August 5, 2010. The bill was co-sponsored by 
Senators Reid, Burris, Gillibrand, Harkin, Lautenberg, Bill 
Nelson, Klobuchar, and Cardin. On September 23, 2010, the 
Committee held a hearing on ``Keeping Us Safe: The Need for a 
National Public Safety Network,'' during which S. 3756 was 
addressed.
  In the 112th Congress, Senator Rockefeller reintroduced the 
Public Safety Spectrum and Wireless Innovation Act, S. 28, on 
January 25, 2011. The bill is co-sponsored by Senators Cardin, 
Harkin, Klobuchar, Lautenberg, Bill Nelson, Schumer, 
Gillibrand, Kerry, Bennet, Boxer, Franken, Casey, Mikulski, and 
Manchin. On February 16, 2011, the Committee held a hearing on 
``Safeguarding Our Future: Building a Nationwide Network for 
First Responders,'' during which S. 28 was addressed.
  On May 9, 2011, Senator Rockefeller and Senator Hutchison 
introduced S. 911. The Committee held an executive session on 
June 8, 2011, during which S. 911 was considered. Senators 
Rockefeller and Hutchison submitted a substitute amendment to 
S. 911, which was adopted by a recorded vote of 21 yeas to 4 
nays. The following seventeen amendments were incorporated into 
the Rockefeller-Hutchison substitute amendment to S. 911, 
creating a manager's package that was agreed to during the 
Executive Session.
  Senator Ayotte offered an amendment to prohibit the Public 
Safety Broadband Corporation from offering commercial 
telecommunications services directly to consumers.
  Senator Blunt offered an amendment that would require the FCC 
to issue a report to Congress within five years on the 
development and use of unlicensed spectrum.
  Senator Cantwell offered first- and second-degree amendments 
that would require the FCC to assign licenses through 
competitive bidding for the first 84 MHz of spectrum reclaimed 
through an incentive auction. After that 84 MHz threshold is 
reached, the FCC would be permitted, if consistent with the 
public interest, to disburse a portion of the proceeds from the 
auction to other licensees to make sure that unlicensed 
spectrum in the UHF spectrum bands remains available nationwide 
and in each local market.
  Senator DeMint offered five amendments that were accepted as 
part of the manager's package. The first makes the term for the 
license for the D Block spectrum that is issued to the Public 
Safety Broadband Corporation a renewable ten-year period. The 
second requires the Chairman of the Board to be a Non-Federal 
Member. The third defines a quorum of the Board as consisting 
of at least six Non-Federal Members. The fourth accelerates the 
migration of public safety narrowband communications and 
equipment to the new broadband network. The fifth extends the 
FCC's authority to reallocate Mobile Satellite Spectrum through 
an incentive auction indefinitely.
  Senator Hutchison offered an amendment to authorize the FCC 
to allow low-power television in the UHF band to relocate to 
the VHF band, to the extent feasible and in the public 
interest.
  Senator Klobuchar offered first and second degree amendments 
to commission a study from the National Highway Traffic Safety 
Administration on the cost of implementing Next Generation 9-1-
1 (NG 9-1-1) services. The amendments would also instruct the 
FCC to make recommendations to Congress on the laws and 
regulations necessary to establish and develop effective NG 9-
1-1 services.
  Senator Rubio offered three amendments that were accepted as 
part of the manager's package. The first would instruct the 
Secretary of Commerce to seek rural and urban representation as 
part of the Corporation's Board. The second amendment would 
direct the Corporation to seek to leverage existing commercial 
wireless infrastructure to the maximum extent economically 
desirable. Senator Rubio's third amendment would cause any 
unused funds in the Spectrum Relocation Fund to revert to the 
U.S. Treasury after eight years.
  Senator Toomey offered two amendments that were accepted as 
part of the manager's package. The first amendment prohibits 
the Corporation from engaging in any lobbying activities. The 
second requires the Government Accountability Office to conduct 
an annual audit of the Corporation.
  Senator Warner offered two amendments that were accepted as 
part of the manager's package. The first provides for a 
transitional analysis of the public safety network attributes, 
to be conducted by NIST in consultation with the Departments of 
Homeland Security and Justice and the Office of Management and 
Budget. The second instructs the FCC to report to Congress on 
the spectrum used by public safety licensees or for public 
safety services pursuant to section 337(f) of the 
Communications Act of 1934 (47 U.S.C. 337).
  Senator Toomey offered an additional amendment that would 
have eliminated a provision authorizing $1 billion for 
telecommunications research and development, but the amendment 
was rejected by a recorded vote of 16 yeas to 9 nays.
  Finally, during the executive session, the Committee ordered 
that S. 911, as amended, be reported.
  With some modifications, the provisions of S. 911 were 
enacted into law as title VI of the Middle Class Tax Relief and 
Job Creation Act of 2012 (P.L. 112-96), which was signed into 
law on February 22, 2012.

                            Estimated Costs

  In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

S. 911--Public Safety Spectrum and Wireless Innovation Act

    Summary: S. 911 would modify existing law regarding federal 
management of the electromagnetic spectrum. It would extend and 
expand the Federal Communications Commission's (FCC's) 
authority to auction licenses for commercial uses of the radio 
spectrum and would authorize agencies to spend some of those 
receipts for new purposes. Other provisions would create a 
Public Safety Broadband Corporation, which would receive 
federal financing to develop a wireless broadband network using 
spectrum provided by the bill. Finally, the bill would require 
several agencies to conduct studies and issue regulations 
related to spectrum management, including measures aimed at 
expediting the siting of telecommunications facilities.
    CBO estimates that enacting S. 911 would reduce net direct 
spending by $6.5 billion over the 2012-2021 period; therefore, 
pay-as-you-go procedures apply to the bill. The projected 
savings reflect an estimated increase in offsetting receipts 
from FCC auctions of $24.5 billion (which count against direct 
spending) and an increase in direct spending of $18.0 billion. 
Enacting this bill would not affect revenues.
    In addition, CBO estimates that implementing this bill 
would increase discretionary spending by $43 million over the 
2012-2016 period, assuming appropriation of the necessary 
amounts.
    S. 911 contains intergovernmental and private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
because it would impose new requirements on television 
broadcast stations and cable operators--some of which are 
operated by state and local governments--and other distributors 
of television programming. The bill also would impose an 
intergovernmental mandate by preempting state and local laws 
governing wireless towers. CBO estimates that the aggregate 
cost of intergovernmental mandates in the bill would fall below 
the annual threshold established in UMRA ($71 million in 2011, 
adjusted annually for inflation). The bill could impose 
additional private-sector mandates on providers of cell phone 
services. Based on information from the FCC and industry 
sources, CBO estimates that the aggregate cost of complying 
with the private-sector mandates would exceed the annual 
threshold established in UMRA ($142 million in 2011, adjusted 
annually for inflation).
    The bill would appropriate up to $1 billion for payments to 
offset the mandate costs to television broadcast stations, 
cable operators, and other distributors of television 
programming. Also, the bill would require providers of cell 
phone services to be compensated for costs that result from the 
bill.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 911 is shown in the following table. 
Most of the costs of this legislation fall within budget 
functions 050 (national defense), 370 (commerce and housing 
credit), 750 (administration of justice), 800 (general 
government), and 950 (undistributed offsetting receipts).


------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                           By fiscal year, in millions of dollars--
                                                             -----------------------------------------------------------------------------------------------------------------------------------
                                                                 2012       2013       2014       2015       2016       2017       2018       2019       2020       2021    2012-2016  2012-2021
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                   CHANGES IN DIRECT SPENDING

Extend and Expand FCC Auction Authority
    Estimated Budget Authority..............................          0         35       -500     -3,400     -4,500     -5,100     -4,200     -3,400     -1,700     -1,700     -8,365    -24,465
    Estimated Outlays.......................................          0         35       -500     -3,400     -4,500     -5,100     -4,200     -3,400     -1,700     -1,700     -8,365    -24,465
Transfer of ``D'' Block Spectrum
    Estimated Budget Authority..............................      1,375      1,375          0          0          0          0          0          0          0          0      2,750      2,750
    Estimated Outlays.......................................      1,375      1,375          0          0          0          0          0          0          0          0      2,750      2,750
Public Safety Broadband Corporation
    Estimated Budget Authority..............................         25        150        950      2,450      2,550      2,500      2,100      1,050        600        150      6,125     12,525
    Estimated Outlays.......................................         25        150        950      2,450      2,550      2,500      2,100      1,050        600        150      6,125     12,525
State and Local Grants
    Estimated Budget Authority..............................        250          0          0          0          0          0          0          0          0          0        250        250
    Estimated Outlays.......................................         10        113         88         39          0          0          0          0          0          0        250        250
Research and Development Programs
    Estimated Budget Authority..............................          0          0        300        300        300          0          0          0          0          0        900        900
    Estimated Outlays.......................................          0          0        135        240        276        156         57         24          9          3        651        900
Federal Relocation Costs
    Estimated Budget Authority..............................         45         50         50         90        140        190        190        190        190        190        375      1,325
    Estimated Outlays.......................................         45         50         50         90        140        190        190        190        190        190        375      1,325
Other
    Estimated Budget Authority..............................          6         12         14         27         31         32         32         32         32         32         90        250
    Estimated Outlays.......................................          6         12         14         27         31         32         32         32         32         32         90        250
Total Changes
    Estimated Budget Authority..............................      1,701      1,622        814       -533     -1,479     -2,378     -1,878     -2,128       -878     -1,328      2,125     -6,465
    Estimated Outlays.......................................      1,461      1,735        737       -554     -1,503     -2,222     -1,821     -2,104       -869     -1,325      1,876     -6,465

                                                                          CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level...............................         26          1          4          3         10          0          4          0          4          6         44         58
Estimated Outlays...........................................         22          5          4          3          9          2          3          1          3          6         43         58
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    Basis of Estimate: For this estimate, CBO assumes that S. 
911 will be enacted near the end of fiscal year 2011, that the 
necessary amounts to implement the bill will be appropriated 
for each fiscal year, and that outlays will occur at the 
historical rates for similar activities.
    Direct Spending. S. 911 would affect direct spending by 
generating additional offsetting receipts from auctions of 
licenses to use the electromagnetic spectrum (which count as a 
credit against direct spending) and by increasing the amounts 
that can be spent without further appropriation for various 
initiatives related to public safety and federal management of 
spectrum. On balance, 030 estimates that enacting this 
legislation would reduce net direct spending by $6.5 billion 
over the 2012-2021 period.
    Extend and Expand FCC Auction Authority. S. 911 would amend 
existing law regarding the FCC's authority to auction licenses 
to use the electromagnetic spectrum. It would extend the 
commission's auction authority, which is currently scheduled to 
expire at the end of fiscal year 2012, through 2021. The FCC 
would be directed to auction certain frequencies by January 31, 
2014, including 95 megahertz (MHz) of spectrum that is 
currently used by the Department of Defense (DoD) and other 
agencies. Other provisions would establish a statutory 
framework for what are known as ``incentive auctions,'' in 
which private firms (primarily television station owners) would 
voluntarily relinquish some or all of their existing spectrum 
rights in exchange for a payment from the FCC. That spectrum 
would then be available for new licensed or unlicensed 
services. To implement incentive auctions, the bill would:
     Authorize the FCC to spend auction receipts to pay 
firms that voluntarily relinquish their licenses;
     Appropriate up to $1 billion from auction receipts 
to create an Incentive Relocation Fund administered by the 
National Technology Information Administration (NTIA). The fund 
would be used to pay television broadcasters who do not 
relinquish their licenses for costs the FCC would impose to 
change their channel assignment as part of the process of 
clearing spectrum for nonbroadcast services. The fund also 
would cover certain expenses incurred by cable operators and 
other distributors of television programming.
     Allow the FCC to spend auction receipts to 
compensate television broadcasters who do not relinquish their 
license for any modifications made by the FCC to the quality or 
scope of their coverage as a result of efforts to clear 
spectrum for nonbroadcast services; and
     Allow the FCC to make some television broadcast 
frequencies available for unlicensed use if the amount of 
spectrum awarded through competitive auctions is at least 84 
MHz.
    CBO estimates that enacting those provisions would reduce 
direct spending by $24.5 billion over the 2012-2021 period. 
That estimate reflects the expected value of offsetting 
receipts (based on the outcomes of various scenarios regarding 
the quantity and quality of frequencies likely to be auctioned 
over this period), net of direct spending to compensate 
existing licensees affected by the auctions.
    Quantity of Spectrum Auctioned. Both the FCC and NTIA are 
studying options for making up to 500 MHz of spectrum available 
for broadband services, with a goal of making 300 MHz available 
within the next few years. Most of the spectrum projected to be 
auctioned over the 2013-2021 period would require moving 
existing licensees off their current frequencies, by either 
relocating them to new spectrum or paying them to stop using 
the frequencies. This approach contrasts with past auctions, 
which offered spectrum made available as a result of gains in 
engineering and spectrum management efficiency.
    It is difficult to predict how much spectrum would be 
auctioned by 2021 because of the time and cost involved in 
moving existing users. For example, the amounts auctioned as a 
result of incentive auctions would depend on the willingness of 
two satellite licensees and dozens of television broadcasters 
to sell their existing spectrum rights at a price that is below 
the market value of their licenses. Similarly, DoD and other 
federal users cannot relinquish their current assignments until 
they are given alternative frequencies, which also may require 
moving some commercial licensees to different frequencies. Past 
experience suggests that relocating federal and commercial 
users can be very costly and take many years to complete.
    Given the procedural and financial uncertainties involved 
in making spectrum available, CBO expects that the amount of 
spectrum auctioned by 2021 probably would range from about 150 
MHz to 225 MHz of spectrum below 3 gigahertz (frequencies below 
that benchmark are considered optimal for wireless broadband 
services). That range assumes that the FCC may allocate some 
broadcast frequencies for unlicensed uses and that much of the 
spectrum used by federal agencies identified in the bill would 
not be available for commercial services until after 2021. CBO 
also anticipates that the FCC would auction licenses to use 
frequencies above 3 gigahertz over this period. By comparison, 
approximately 142 MHz was auctioned for advanced wireless 
services over the 2001-2010 period.
    Market value of spectrum licenses. The unit price of 
frequencies considered suitable for wireless broadband 
services--which are commonly measured in terms of the price 
paid per MHz per person\1\--have recently ranged from 55 cents 
to over $1, depending on the characteristics of the spectrum. 
Winning bids for the 142 MHz auctioned since 2001 generated 
receipts of about $33 billion, or a weighted average of about 
80 cents per MHz per person.\2\
---------------------------------------------------------------------------
    \1\The amounts paid for spectrum licenses depends on many factors, 
including the projected profitability of services supported by the 
spectrum, the engineering characteristics of the frequencies, 
geographic variations among markets, and the financial and strategic 
interests of the firms participating in the auction. Winning bids are 
commonly expressed per unit of coverage, which is defined as the 
product of a license's bandwidth multiplied by the population of the 
geographic area it covers, or dollars per MHz per person.
    \2\Those figures exclude a 2005 auction of licenses that originally 
were issued in the 1990s and financed by the federal government. Income 
from the re-auction of those licenses was recorded in the budget as 
recoveries on the loans.
---------------------------------------------------------------------------
    CBO estimates that the weighted average unit price paid by 
winning bidders over the 2013-2021 period probably would be 
lower than in recent years, or about 70 cents per MHz per 
person. That decline reflects expected differences in the 
quality and quantity of spectrum expected to be auctioned. For 
example, according to the Government Accountability Office 
(GAO), there may be significant geographic, technical, and 
timing constraints on the commercial use of frequencies 
reallocated from federal users, which would lower the value of 
those licenses.\3\ CBO's estimate also includes the effect on 
prices from the supply of spectrum projected to be available 
under this bill and from sources other than federal auctions, 
including administrative reallocations, secondary markets, and 
the spectrum that would be provided by S. 911 to the Public 
Safety Broadband Corporation.
---------------------------------------------------------------------------
    \3\United States Government Accountability Office, NTIA Planning 
and Processes Need Strengthening to Promote the Efficient Use of 
Spectrum by Federal Agencies, GAO-11-352 (April 2011), pp. 35-37.
---------------------------------------------------------------------------
    Estimate of Net Proceeds. The net proceeds from many FCC 
auctions under S. 911 would be lower than in the past because 
of the need to compensate existing licensees who would be 
directly or indirectly affected by efforts to clear spectrum 
for new uses. Estimates of such spending are uncertain because 
federal agencies have not completed their estimates of 
relocation costs and the market response to economic incentives 
to forgo spectrum use is untested. Based on information 
available from public sources, discussions with industry 
experts, and considering the range of possible costs, CBO 
estimates that the direct spending associated with auctions 
held as a result of this bill would reduce net proceeds by 
roughly one-third over the 2013-2021 period.
    That estimate includes the effect of direct spending that 
is authorized under current law as well as under S. 911. For 
example, the FCC is allowed to spend auction receipts to cover 
certain administrative expenses; such spending has been capped 
at $85 million a year in annual appropriation acts. Existing 
law also allows agencies to spend receipts to cover certain 
relocation expenses and requires that any auction of licenses 
to use those frequencies generate receipts equal to at least 
110 percent of the government's estimated relocation costs. 
CBO's estimate of $24.5 billion in net receipts is based on the 
amount of agency spending authorized under current law; the 
estimated budgetary impact of provisions in S. 911 regarding 
federal relocation efforts is shown separately below.
    Finally, based on past experience with similar activities, 
CBO expects that it would take several years for the FCC and 
other agencies to complete the necessary rulemaking and 
planning activities to execute major spectrum auctions. In 
addition, there usually is a significant lag between the time 
an auction begins and the time licenses are issued to winning 
bidders and receipts are recorded in the budget. To account for 
the uncertain timing of those events, CBO's estimate shows 
receipts being collected over a number of years, with most of 
those amounts expected to be recorded after 2016. Specifically, 
CBO estimates net receipts from the new auctions of $8.4 
billion over the next five years and $16.1 billion after 2016.
    Transfer of D Block Spectrum. Current law directs the FCC 
to auction commercial licenses for 10 MHz of spectrum known as 
the ``D block'' and to deposit the proceeds in the Treasury. 
(The D block covers spectrum between the frequencies from 758 
MHz to 763 MHz and between 788 MHz to 793 MHz.) Under current 
law, CBO estimates that such an auction will be held by the end 
of 2012 and will generate receipts of $2.75 billion over the 
2012-2013 period.
    S. 911 would reallocate the D block from commercial to 
public safety uses, at no cost to those entities. CBO estimates 
that forgoing the offsetting receipts from the auction of the D 
block would increase direct spending by $2.75 billion.
    Public Safety Broadband Corporation. S. 911 would establish 
a new entity, the Public Safety Broadband Corporation, to 
build, operate, and maintain a broadband network for public 
safety agencies that would be available across the country on a 
specific spectrum band.\4\ The bill would grant a license to 
the corporation to use 22 MHz spectrum nationwide: the 10 MHz 
``D block'' spectrum (discussed above) and 12 MHz that has been 
allocated for public safety purposes under current law. The 
license would have an initial term of 10 years and would be 
renewable for additional 10-year terms if the FCC determines 
that the corporation has met the requirements set out in S. 
911.
---------------------------------------------------------------------------
    \4\CBO believes that the Public Safety Broadband Corporation that 
would be established under S. 911 should be classified as a government 
entity and that cash flows related to the corporation should appear in 
the budget as direct spending because the corporation would exist only 
to carry out public purposes (building and operating a network for 
public safety use) using a federal asset (telecommunications spectrum). 
Moreover, under S. 911, the federal government would retain control 
over the corporation's operations. Specifically, the bill would 
authorize the Secretary of Commerce to appoint the nonfederal members 
of the corporation's board of directors and to remove the chair of the 
board and any nonfederal member of the board for good cause.
---------------------------------------------------------------------------
    The bill would appropriate $11.75 billion to the 
corporation from spectrum auction receipts to build a 
nationwide network of wireless broadband. The corporation also 
would be authorized to borrow funds from the public and incur 
other forms of indebtedness. It would be given temporary 
authority to borrow funds from the Treasury through the NTIA 
for amounts necessary to carry out its responsibilities; this 
borrowing authority would terminate once certain auctions have 
begun. CBO expects that the corporation would borrow amounts 
sufficient to allow the network to be developed and operated, 
independent of the timing of the auctions under the bill.
    S. 911 also would authorize the corporation to assess and 
collect several different fees in amounts sufficient to cover, 
but not exceed, its annual operating expenses. Specifically, 
the corporation would be authorized to assess:
     A subscription fee from each entity using the 
public safety network;
     Fees from commercial services that choose to lease 
the network's capacity on a secondary basis; and
     Fees from entities that access equipment or 
infrastructure built and maintained by the corporation.
    CBO estimates that establishing the corporation would 
increase direct spending by $12.5 billion over the 2012-2021 
period. This amount includes amounts appropriated to the 
corporation by S. 911 for capital expenditures and net 
operating losses that CBO anticipates would be generated in the 
first few years of the corporation's operations.
    Capital Expenditures to Build Network. CBO estimates that 
the corporation would spend $11.5 billion over the 2012-2021 
period to build a nationwide wireless broadband network.
    Based on information from the FCC and industry experts, CBO 
estimates that the corporation would develop a network of about 
45,000 sites to serve 95 percent of the population by 2018 at 
an average cost of about $170,000 per site. That estimate is 
higher than the costs typically incurred by private firms 
because of the added reliability and security needed for public 
safety systems and the cost of independent capabilities 
specified in the bill. CBO estimates that meeting the goal of 
nationwide coverage would require several thousand additional 
sites to be built in rural areas at roughly double that unit 
cost. Because S. 911 would provide funding for the additional 
sites, CBO estimates that most of those sites would be 
operational by 2021.
    Net Operating Income. The corporation's annual cash flows 
from operations would depend on how quickly the network is 
built and used. Operating costs would be largely tied to the 
number of sites that are built and on the administrative costs 
of serving public safety users. CBO based its estimate of 
operating costs on historical trends for wireless firms as well 
as FCC and industry projections of the costs associated with 
sites that have been built or are leased from other companies. 
Income from customers would depend on the network's available 
capacity and market conditions. For this estimate, CBO assumes 
that the corporation would be able to sell virtually all of its 
available capacity by 2021 at prices that are consistent with 
industry trends for retail and wholesale transactions.
    Based on that information, CBO estimates that the 
corporation's operating costs would exceed its income by about 
$1 billion over the 2012-2021 period. Operating losses are 
typical for new entrants in the wireless market because of the 
lag between start-up costs and income from retail and wholesale 
customers. CBO estimates that the corporation would experience 
annual losses ranging from about $200 million to $400 million a 
year in the first few years of operation but would start to 
generate sufficient income to offset those losses by the end of 
the 10-year period. CBO also expects that the corporation's 
losses would be higher than for commercial firms because the 
towers located in areas with very low population densities may 
not generate enough income during this period to cover the 
added operating costs.
    State and Local Grants. S. 911 would appropriate $250 
million from spectrum auction receipts for matching grants to 
assist state, local, and tribal governments in developing 
effective ways to use the public safety network created by the 
corporation. To implement the program, the Department of 
Commerce would be allowed to borrow that amount from the 
Treasury beginning on October 1, 2011. Once auction proceeds 
become available, they would be deposited into a State and 
Local Implementation Fund and would be credited as an offset to 
borrowed funds and cover other program expenses, subject to the 
$250 million limit.
    Research and Development Programs. S. 911 would appropriate 
up to $1.5 billion from auction receipts for two research and 
development (R&D) programs related to communications 
technologies. Funding would be provided for each of the fiscal 
years 2012 through 2016 in the following amounts: $100 million 
a year would be allocated for a new research program 
coordinated by the National Institute of Standards and 
Technology (NIST) on systems for public safety users and $200 
million a year for additional research conducted by NIST, the 
National Science Foundation, and the Defense Advanced Research 
Programs Agency.
    Because of the time needed to conduct auctions and issue 
licenses to the winning bidders, CBO estimates that there would 
not be any funding available for the R&D programs until fiscal 
year 2014. As a result, we estimate that the funding available 
for those initiatives would total $900 million over 2012-2021 
period.
    Federal Relocation Costs. Under current law, government 
agencies are allowed to spend, without further appropriation, 
any proceeds from the auction of frequencies that are 
reallocated from federal to commercial use, subject to certain 
conditions. Funds are not available until the proceeds from an 
auction have been deposited in the Spectrum Relocation Fund, 
and the amounts spent for each relocation effort is limited to 
the money generated by the sale of licenses for those 
frequencies.
    S. 911 would modify the timing and amount of such 
expenditures. It would allow agencies to spend money for new 
purposes, including costs incurred prior to an auction. In 
addition, subject to some limitations, up to 10 percent of the 
money in the fund could be spent for measures to enhance the 
capability of the systems affected by relocation efforts. 
Finally, outlays would no longer be tied to the proceeds from 
individual auctions; instead, agencies could access any of the 
balances in the fund, which currently total about $5.4 billion, 
to cover authorized expenses. CBO estimates that enacting those 
changes would increase direct spending by $1.3 billion over the 
2012-2021 period, primarily for costs incurred by DoD.
    Three activities account for most of that estimated cost. 
CBO expects that agencies would spend 10 percent of the 
balances currently in the fund, or about $540 million, on 
system enhancements. The estimate also includes about $250 
million over the 10-year period for the pre-auction planning, 
research, and engineering expenditures authorized by the bill. 
Based on historical data, CBO expects that federal spending for 
relocation costs probably would total several billion dollars 
over the 10-year period and that such pre-auction activities 
would account for 2 percent to 10 percent of the total cost, 
depending on the complexity and cost of the systems being 
moved.
    Finally, $400 million of the estimated cost reflects 
spending for cost overruns that otherwise would have been 
financed by annual appropriations. Such increases are common in 
both federal and commercial relocation efforts--the actual 
costs of a 2006 relocation program were about 45 percent higher 
than originally estimated, for example. In that case, proceeds 
from the auction were available to cover those expenses, and 
appropriated funds were unnecessary. However, CBO estimates 
that the difference between relocation costs and auction 
receipts for some future auctions would be much smaller than in 
the past; thus, we expect that there is at least a 50 percent 
chance that any additional costs would be paid from the 
relocation fund under this bill. For this estimate, CBO assumes 
that cost overruns would be proportionately smaller for future 
auctions because of the additional direct spending authorized 
by the bill for planning and engineering studies.
    Other Direct Spending. Other provisions in the bill would 
affect direct spending by various agencies, including the 
governmental entity that administers the Telecommunications 
Development Fund (TDF). CBO estimates that those changes would 
increase net direct spending by about $250 million over the 
2012-2021 period.
    Under current law, interest earned on payments made by 
bidders in order to participate in an auction, known as upfront 
payments, is transferred to the TDF, which invests those 
amounts in small businesses that operate in the 
telecommunications industry. Those interest earnings would be 
recorded as an intergovernmental transfer in the budget; 
however, spending of those earnings would be recorded as a 
cost. Based on historical patterns of the amount of deposits 
collected and the time those deposits are held, CBO estimates 
that the auctions authorized in S. 911 would be credited with 
interest of $136 million over the 2012-2021 period. Spending of 
the amounts credited as interest would cost $136 million over 
the 10-year period.
    S. 911 also would modify policies regarding the siting of 
telecommunications equipment on federal property. Under current 
law, policy, and practice, agencies are generally required to 
approve the siting of antennas (wireless towers) on federal 
property on a fair, reasonable, and nondiscriminatory basis. 
Siting considerations include health and safety factors, 
aesthetics, the historic nature of a property, and the 
telecommunications requirements of the agencies. Agencies may 
assess fees on the private sector to place those antennas and 
collect rental charges.
    S. 911 would require the General Services Administration 
(GSA) to create one standard governmentwide process for siting 
antennas on federal property. In addition, the legislation 
would allow agencies to collect fees to cover their direct 
costs and spend whatever they collect. Based on information 
from GSA and selected agencies regarding existing antenna fees, 
CBO estimates that enacting those provisions would increase net 
direct spending. Under current law, some agencies, such as the 
U.S. Postal Service and GSA, can already retain and spend the 
fees they collect. However, other agencies deposit most of the 
income from such fees in the Treasury as miscellaneous 
receipts. Based on historical trends in such collections, CBO 
estimates that those increases in spending would total about 
$12 million annually.
    Spending Subject to Appropriation. S. 911 would require the 
FCC, NTIA, and GAO to conduct a number of studies related to 
spectrum management. The bill also would require all federal 
agencies that use spectrum to develop a long-term plan for that 
use to serve as a basis for a national plan that considers the 
spectrum needs of both governmental and private users. Based on 
information from the FCC, NTIA, and other agencies, CBO 
estimates that implementing those reporting and planning 
provisions would increase net discretionary spending by $43 
million over the 2012-2016 period, assuming appropriation of 
the necessary amounts.
    Most of that cost would result from requirements for NTIA 
to complete a report to identify spectrum that would be 
appropriate to share between governmental and nongovernmental 
users; develop tools or metrics that measure the efficiency of 
federal systems that use spectrum; and develop a method for 
calculating the opportunity cost of spectrum used by federal 
agencies. In addition, the bill would require all agencies that 
use spectrum to develop plans, which would be updated every two 
years, to identify spectrum requirements and approaches that 
they have taken to meet those needs. Finally, GAO and GSA would 
required to prepare several reports for the Congress related to 
spectrum management and telecommunications systems.
    The FCC also would be required to produce an inventory of 
spectrum that is assigned to public safety use, and together 
with the NTIA, produce an inventory of all license holders and 
users of the frequencies that each agency manages. Based on 
information from the two agencies, CBO estimates that 
implementing those requirements would cost $56 million over the 
2012-2016 period. Under current law, the FCC is authorized to 
collect fees to offset the costs of its regulatory program, and 
the bill would direct that all costs incurred by NTIA to 
produce the spectrum inventory be borne by the FCC. Therefore, 
subject to future appropriation action, CBO estimates that the 
FCC would collect fees sufficient to offset those costs. (Those 
fees are credited as an offset to appropriations; thus, the 
provision would have no net impact on discretionary spending.)
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in the following table.

                      CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR S. 911 AS ORDERED REPORTED BY THE SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION ON JUNE 8, 2011
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                      By fiscal year, in millions of dollars--
                                                  ----------------------------------------------------------------------------------------------------------------------------------------------
                                                      2011       2012       2013       2014       2015       2016       2017       2018       2019       2020       2021    2011-2017  2011-2021
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact...................          0      1,461      1,735        737       -554     -1,503     -2,222     -1,821     -2,104       -869     -1,325     -1,876     -1,876
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    Intergovernmental and private sector impact: S. 911 
contains intergovernmental and private-sector mandates as 
defined in the Unfunded Mandates Reform Act because it would 
impose new requirements on television broadcast stations and 
cable operators--some of which are operated by state and local 
governments--and other distributors of television programming. 
The bill also would impose an intergovernmental mandate by 
preempting state and local laws governing wireless towers. CBO 
estimates that the aggregate cost of intergovernmental mandates 
in the bill would total in the tens of millions of dollars but 
would fall below the annual threshold established in UMRA ($71 
million in 2011, adjusted annually for inflation). The bill 
could impose additional private-sector mandates on providers of 
cell phone services. Based on information from the FCC and 
industry sources, CBO estimates that the aggregate cost of 
complying with the private-sector mandates would exceed the 
annual threshold established in UMRA ($142 million in 2011, 
adjusted annually for inflation).
    The bill would appropriate up to $1 billion for payments to 
offset the mandate costs to television broadcast stations, 
cable operators, and other distributors of television 
programming. Also, the bill would require providers of cell 
phone services to be compensated for costs that result from the 
bill.
    Mandates that Apply to Both Public and Private Entities. 
The bill would impose a mandate on television broadcast 
stations by requiring them to move channels and on cable 
operators, and other distributors of television programming by 
requiring them to adjust their systems to continue carrying 
local stations. The cost to broadcasters would equal the costs 
of changing their broadcast operations to a different channel. 
The cost to cable operators and other distributors of 
television programming would equal the cost to readjust their 
networks to receive retransmissions from broadcasters on 
different channels.
    The aggregate cost of the mandate would depend on the 
number of channels the FCC reclaims, the number of stations 
that voluntarily give up their licenses in response to 
incentives offered in the bill, and the number of channels the 
FCC would compel a station to move. Private entities own most 
of the roughly 2,300 television stations that could face a 
mandate under the bill, with state or local governments 
operating about 100 of those stations. Industry sources 
indicate that the average cost to a broadcaster to move a 
channel would be at least $500,000, but that broadcasters could 
incur additional costs to build interim transmission facilities 
or to advertise the move. CBO estimates that the cost to 
stations operated by state and local governments would be in 
the tens of millions of dollars and that the cost to stations 
operated by private entities probably would be in the hundreds 
of millions of dollars.
    The bill would appropriate up to $1 billion for payments to 
offset the mandate costs to television broadcast stations, 
cable operators, and other distributors of television 
programming. CBO estimates that the $1 billion would likely 
cover the costs of the mandates.
    Mandates that Apply to Public Entities Only. The bill would 
preempt state and local laws governing wireless towers by 
requiring state and local governments to approve requests for 
modifications to wireless towers that do not substantially 
change the physical dimensions of the towers. Under current 
law, most state and local governments review the potential 
impacts of changes to wireless towers, such as visual and 
environmental impacts, before allowing a wireless provider to 
make a change to a tower. Based on that review, a government 
may deny an application for a change. The bill would prevent 
those governments from denying applications for changes that do 
not substantially change the dimensions of the tower. While 
that preemption would limit the application of state and local 
law, CBO estimates that it would impose no duty on state, 
local, or tribal governments that would result in additional 
spending.
    Mandates that Apply to Private Entities Only. The bill 
could impose a mandate on providers of cell phone services by 
authorizing the FCC to require such entities to allow public 
safety officials to roam onto their networks and gain priority 
access in an emergency. If the FCC imposed the mandate, the 
costs would depend on how often the service was used or whether 
the Public Safety Broadband Corporation could obtain voluntary 
contracts for such services. Thus, CBO cannot determine the 
cost of the mandate to the private sector. However, providers 
of cell phone services would be compensated for any costs they 
would incur because of the mandate.
    Estimate prepared by: Federal Costs: Kathleen Gramp, Susan 
Willie, Matthew Pickford, Andrew Stocking, and Philip Webre; 
Impact on State, Local, and Tribal Governments: Elizabeth Cove 
Delisle; Impact on the Private Sector: Samuel Wice.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

  In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:

                       NUMBER OF PERSONS COVERED

  S. 911 would update existing communications law to allow the 
FCC to alter television broadcast licenses so that spectrum 
could be allocated more efficiently. The bill could affect 
broadcasters by changing the frequencies on which they are 
authorized to transmit a television signal. Broadcasters are 
already subject to FCC regulations, and therefore the number of 
persons covered should be consistent with the current levels of 
individuals impacted under the provisions of the law that are 
addressed in the bill.

                            ECONOMIC IMPACT

  S. 911 would not have an adverse impact on the Nation's 
economy.

                                PRIVACY

  The reported bill would have no impact on the personal 
privacy of U.S. citizens.

                               PAPERWORK

  The reported bill should not significantly increase paperwork 
requirements for individuals and businesses.

                   Congressionally Directed Spending

  In compliance with paragraph 4(b) of rule XLIV of the 
Standing Rules of the Senate, the Committee provides that no 
provisions contained in the bill, as reported, meet the 
definition of congressionally directed spending items under the 
rule.

                      Section-by-Section Analysis


Section 1. Short Title; Table of Contents.

  The short title is the ``Public Safety Spectrum and Wireless 
Innovation Act.''

Section 2. Definitions.

  This section would define 13 terms used throughout the bill. 
The following definitions are of particular importance:
        700 MHz D Block Spectrum.--The term ``700 MHz D Block 
        Spectrum'' means the portion of the electromagnetic 
        spectrum between the frequencies from 758 MHz to 763 
        MHz and between the frequencies from 788 MHz to 793 
        MHz.
        Existing Pubic Safety Spectrum.--The term ``Existing 
        Public Safety Spectrum'' means the portion of the 
        electromagnetic spectrum between the frequencies from 
        763 MHz to 768 MHz and between the frequencies from 793 
        MHz to 798 MHz, and between the frequencies from 768 
        MHz to 769 MHz and between the frequencies from 798 MHz 
        to 799 MHz.
        Public Safety Entity.--The term ``public safety 
        entity'' means an entity that provides public safety 
        services.
        Public Safety Services.--The term ``public safety 
        services'' has the meaning given the term in section 
        337(f) of the Communications Act of 1934 (47 U.S.C. 
        337(f)) and includes services provided by emergency 
        response providers, as that term is defined in section 
        2 of the Homeland Security Act of 2002 (6 U.S.C. 101). 
        This definition is intended to ensure that local, 
        State, and Federal public safety authorities can 
        benefit from a nationwide interoperable wireless 
        broadband public safety network.

            TITLE I--REALLOCATION OF PUBLIC SAFETY SPECTRUM

Section 101. Reallocation of D Block to Public Safety.

  Section 101 would reallocate the 700 MHz D Block for use by 
public safety entities.

Section 102. Flexible Use of Narrowband Spectrum.

  Section 102 would provide the FCC with the discretion to 
allow the flexible use of spectrum in the 700 MHz band 
currently allocated for narrowband public safety use, including 
for public safety broadband communications.
  The Committee recognizes that at present, allowing broadband 
operations in the 700 MHz band currently allocated for 
narrowband public safety use might present interference 
concerns. Furthermore, the Committee is aware that certain 700 
MHz narrowband spectrum already has been allocated for public 
safety narrowband use, and that some State and local 
governments have built or are building communications systems 
that use this spectrum. To the extent that the FCC finds that 
it is in the public interest to allow public safety broadband 
operations in the 700 MHz narrowband spectrum, the agency 
should consider the need to accommodate public safety systems 
already using this spectrum.

             TITLE II--GOVERNANCE OF PUBLIC SAFETY SPECTRUM

SUBTITLE A--PUBLIC SAFETY BROADBAND CORPORATION

Section 201. Single Public Safety Wireless Network Licensee.

  This section would require the FCC to provide a 10--year 
license for the 700 MHz D Block and existing public safety 
broadband spectrum to the Public Safety Broadband Corporation 
that is established under section 202. This license can be 
renewed every 10 years by application to the FCC.
  This section would direct the FCC to take all actions 
necessary to facilitate the transition of the existing public 
safety broadband spectrum to the Corporation. The Committee 
intends the direction to ``take all actions necessary'' not to 
be read in an expansive way. The Committee intends the FCC to 
immediately issue a license for the 700 MHz D Block and 
existing public safety broadband spectrum to the Corporation. 
To encourage the Corporation's cost effective construction of a 
broadband network with a national architecture, the FCC should 
take steps to reduce or eliminate existing encumbrances on the 
spectrum. Similarly, the Committee expects the FCC will work to 
prevent any additional uses of the public safety broadband 
spectrum that could encumber the license being transferred to 
the Corporation.
  The Committee also notes that the current licensee of the 
existing public safety broadband spectrum is required by the 
FCC to coordinate the activities of the jurisdictions that 
already have received waivers to conditionally deploy broadband 
networks using the existing public safety broadband spectrum. 
The Committee recognizes that this Act represents a fundamental 
shift in addressing the long-standing challenge of creating a 
truly nationwide interoperable public safety network. 
Specifically, the Act would mandate that the network be based 
on a single nationwide network infrastructure and framework in 
order to avoid the balkanization of multiple individual 
networks that has impeded efforts to create nationwide 
interoperability in the past. The Committee also recognizes 
that a small handful of these jurisdictions have begun to use 
that conditional waiver authority to plan and deploy facilities 
in anticipation of the nationwide network. The Committee 
intends those limited facilities to be integrated into the 
nationwide network. Such plans and facilities can be identified 
though the State and local implementation grants process in 
section 222 of this Act.
  At the same time, while the Committee recognizes the good 
faith efforts of the waiver jurisdictions pursuant to 
conditional authority, the Committee does not intend for these 
jurisdictions to continue to deploy stand-alone broadband 
networks that could jeopardize the overarching goal of 
nationwide interoperability. These waiver jurisdictions should 
temporarily halt deployment activities until the Corporation 
can coordinate and integrate these early deployment broadband 
activities into the nationwide network infrastructure. The 
Committee also recognizes that the Corporation may decide that 
allowing one or two waiver jurisdictions, under extraordinary 
circumstances, to continue limited deployments could serve as 
pilot projects beneficial to the Corporation's efforts. This is 
a decision for the Corporation, however, subject to whatever 
conditions the Corporation deems necessary in order to preserve 
and protect the goal of nationwide interoperability, and with 
assistance from the FCC, as needed.
  In addition, there are existing narrowband incumbent 
operations in the public safety broadband spectrum that would 
need to be relocated as the broadband network is deployed. 
Accordingly, the Committee believes it should be the obligation 
of the Corporation, as part of requests for proposal to deploy 
the network as outlined in section 206 of this Act, to relocate 
these narrowband incumbents.

Section 202. Establishment of Public Safety Broadband Corporation.

  Section 202 would authorize the establishment of a nonprofit 
corporation called the Public Safety Broadband Corporation, 
which would hold the spectrum as provided in section 201.

Section 203. Board of Directors of the Corporation.

  Section 203 would designate a Board of Directors (the Board) 
for the Corporation, consisting of four Federal members and 
eleven non-Federal members who will meet at least quarterly. 
The four Federal members would be the Secretary of Commerce, 
the Secretary of Homeland Security, the Attorney General of the 
United States, and the Director of Office of Management and 
Budget. The Secretary of Commerce, in consultation with the 
Secretary of Homeland Security and the Attorney General, would 
appoint 11 independent and qualified non-Federal members, 
including at least three representatives to represent the 
interests of States, localities, tribes, and territories and at 
least three representatives who have served or are currently 
serving as public safety professionals. The non-Federal members 
would serve staggered three-year terms.
  This section would require non-Federal members to represent 
various areas of expertise, including public safety, technical, 
commercial network, and financial expertise. This section would 
require the Secretary of Commerce to make sure that non-Federal 
members represent various geographic and regional, as well as 
rural and urban, areas.
  This section would also put in place conflict of interest 
protections to ensure the independence of the non-Federal board 
members. Meetings of the Board, including any committee of the 
Board, would be transparent and open to the public. A quorum of 
the Board would require at least eight members, including at 
least six non-Federal Members. The Secretary of Commerce would 
be required to select one of the non-Federal members to be 
Chair of the Board.

Section 204. Officers, Employees, and Committees of the Corporation.

  Section 204 of the bill would instruct the Board to name and 
fix salaries for a Chief Executive Officer, as well as other 
officers and employees of the Corporation. No political test or 
qualification should be used in selecting, appointing, 
promoting, or taking other personnel actions with respect to 
officers, agents, or employees of the Corporation. Officers and 
employees would not receive any outside salaries and may serve 
on other boards only with the permission of the Board. Under 
this section, all rates of compensation would be established by 
the Federal members of the Board.
  This section would charge the Board with establishing a 
standing public safety advisory committee and authorize the 
Board to establish other committees or panels, as necessary. 
The Committee intends that with respect to the standing public 
safety advisory committee, membership should include a diverse 
group of individuals who have served or are serving currently 
as public safety professionals.
  This section also would allow the Board to select parties to 
serve as its agents, consultants or experts. However, the 
Committee discourages sole source contracts for agents, network 
administrators, consultants, or experts.

Section 205. Nonprofit and Nonpolitical Nature of the Corporation.

  Section 205 would prohibit the Corporation from issuing stock 
or its directors, officers, or employees from benefiting from 
their position, other than by a salary or reasonable 
compensation. The Corporation also would be barred from 
supporting any political party or candidate. In addition, the 
Corporation would be barred from engaging in lobbying 
activities.

Section 206. Powers, Duties, and Responsibilities of the Corporation.

  This section would require the Corporation to use its single 
public safety wireless license under section 201 of this Act to 
oversee construction, deployment, and operation of a nationwide 
interoperable public safety broadband network. The Corporation 
also would ensure adoption of nationwide standards for use of 
the network; issue requests for proposals for private entities 
to build, operate, and maintain the network; and manage and 
oversee the building and operation of the network. In 
developing the requests for proposal, the Corporation would 
encourage, to the maximum extent economically desirable, 
existing commercial wireless infrastructure to be leveraged in 
deploying the network.
  In addition, under this section, the Corporation would be 
required to ensure the safety, security, and resiliency of the 
network, including requirements that the network be protected, 
and monitored to protect, against cyberattack.
  The Corporation would be required to promote competition in 
the equipment market, including by requiring that all equipment 
on the network be built to open, non-proprietary, commercially-
available standards, and, to the extent necessary and 
technically and economically reasonable, be compatible with 
second and third generation commercial networks.
  The Corporation also would be required to promote integration 
of the network with public safety answering points or their 
equivalent.
  To ensure interoperability, the Director of NIST, in 
consultation with the Corporation and the FCC, would oversee 
the development of a list of certified devices and components 
meeting appropriate protocols and standards. Public safety 
entities and vendors must adhere to these protocols and 
standards in order to have access to or use of the network.
  This section would instruct the Corporation to establish 
policies for the network that include buildout timetables, 
coverage and service levels, and performance criteria, as well 
as technical and operational requirements. The Committee 
intends that the Corporation pay particular attention to making 
sure that the network is deployed in rural areas, as well as 
non-rural areas. As a result, this section would require that 
the Corporation, as part of the request-for-proposals process, 
require deployment phases with substantial rural coverage 
milestones as part of each phase of the construction and 
deployment of the network. As part of this effort, the 
Committee encourages the Corporation to make special efforts to 
address those areas of the country that lag behind the rest of 
the nation in deployment of third generation wireless services.
  To ensure that the needs of local first responders are met, 
the Committee intends for there to be significant input from 
State and local public safety entities, especially with respect 
to planning the network and determining how funds are spent to 
deploy the network. Consequently, this section would require 
the Corporation to consult with regional, State, tribal, and 
local jurisdictions in developing requests for proposal for the 
network. Specifically, this section would require the 
Corporation to consult with these jurisdictions with respect to 
construction of an Evolved Packet Core and any Radio Access 
Network, the placement of towers in a local area, coverage 
areas, assignment of priority to-and the training needs of-
local users, assignment of priority and selection of entities 
seeking access to or use of the network, and the adequacy of 
hardening, security, reliability, and resiliency. The input of 
regional, State, tribal, and local jurisdictions shall be 
coordinated through a single point of contact: a single officer 
or governmental body designated by the State's chief executive 
officer. In order to assist with the granular State and local 
input necessary, section 222 would create a planning grant 
program to assist these jurisdictions in compiling and 
analyzing the data.
  This section would also authorize the Corporation to conduct 
business, including making contracts to leverage existing 
infrastructure or spending funds, consistent with the purpose 
of the work of the Corporation and to enhance public safety. 
The Committee intends that the Corporation leverage existing 
infrastructure, including commercial or other communications 
infrastructure, as well as that owned by Federal, State, 
tribal, or local entities, to the maximum extent economically 
desirable. However, the Committee recognizes that, in some 
instances it may be more economically efficient for the 
Corporation to construct new infrastructure rather than 
retrofit existing facilities.
  To facilitate the use of existing infrastructure, the 
Corporation would be allowed to enter into roaming agreements 
with commercial network providers. The Corporation would speed 
deployment of the network-especially in rural areas-by 
leveraging existing commercial networks to the maximum extent 
economically desirable.
  Finally, this section would make clear that the Director of 
NIST, in consultation with the Corporation, the FCC, and the 
standing public safety advisory committee, would represent the 
public safety users in any proceeding, negotiation, or other 
matter before a recognized standards-setting entity with 
respect to standards relating to interoperability. This section 
would also make clear that the Corporation would have no 
authority to negotiate or enter into any agreements with a 
foreign government on behalf of the United States.

Section 207. Initial Funding for Corporation.

  Section 207 would permit the NTIA to issue loans to the 
Corporation until the FCC can conduct the auctions specified in 
this Act. In order to secure such a loan, this section 
requires, among other things, that the Corporation submit a 
plan that provides a reasonable assurance of prompt repayment. 
The Committee intends that the Corporation prioritize the 
repayment of this loan, consistent with the purpose of the work 
of the Corporation and its duties under this law.

Section 208. Permanent Self-Funding; Duty to Assess and Collect Fees 
        for Network Use.

  The Committee intends for the Corporation and the nationwide 
network to be self-funding. Accordingly, section 208 would 
instruct the Corporation to collect fees for access to the 
public safety network, including charging a network user fee to 
public safety entities for use of the network. The Committee 
intends for local first responders to migrate their data usage 
from commercial networks to the public safety interoperable 
network, which is specifically developed and hardened for 
mission-critical communications. Likewise, the Committee 
expects, as the network is fully deployed and developments 
occur in next-generation voice over wireless broadband networks 
that meet public safety mission-critical standards, the network 
can one day provide a lower-cost transition path for 
consolidated public safety communications. The research and 
development initiatives for public safety communications in 
section 223 of this Act would assist in these developments.
  This section would also allow the Corporation, 
notwithstanding section 337 of the Communications Act of 1934 
(47 U.S.C. 337), to lease access to the network, spectrum, or 
infrastructure on a secondary use basis to entities that do not 
meet the definition of public safety services in section 2 of 
this Act, including, but not limited to, other government 
agencies, commercial entities, and utilities. The Committee 
intends that the limitations in section 337 of the 
Communications Act as to the use of the public safety spectrum 
apply solely to the primary use of the network and not the 
secondary use as authorized by this section. This would provide 
an important source of revenue for the Corporation, which 
should be used to fund network development and maintenance, 
consistent with the duties of the Corporation under this Act. 
In addition, in those rural and remote areas in which there are 
no existing commercial infrastructure to leverage, commercial 
wireless carriers may choose to lease tower infrastructure, for 
example, from the Corporation. Such a sharing of infrastructure 
would not only provide revenue to the public safety network, 
but also allow commercial providers to expand their own 
coverage to consumers.
  The total fees assessed would not exceed the amount necessary 
for the Corporation to recoup its expenses incurred for 
carrying out this subsection. The Corporation would be required 
to reinvest any amounts received from these fees for only the 
construction, maintenance, or improvement of the network.

Section 209. Audit and Report.

  In order to ensure increased accountability and transparency, 
this section would require the Comptroller General of the 
United States to audit the Corporation's financial transactions 
annually. The Comptroller General would then submit a report to 
the appropriate committees of Congress, the President, and the 
Corporation detailing the financial operations and condition of 
the Corporation and providing any related recommendations.

Section 210. Annual Report to Congress.

  This section would require the Corporation to submit to the 
appropriate Congressional committees an annual report that 
includes details on the Corporation's operations, activities, 
financial conditions, and accomplishments. In addition, as part 
of the annual report, the Corporation would be required to 
include recommendations or proposals for legislative or 
administrative action, as it deems appropriate.

Section 211. Public Safety Roaming and Priority Access.

  While 20 megahertz of public safety broadband spectrum will 
be needed to provide sufficient bandwidth and efficiencies for 
a nationwide interoperable public safety broadband network, 
there will be those emergencies during which even the 
nationwide public safety network will not provide sufficient 
communications capacity for our Nation's first responders. In 
those times, the Committee expects that it may be necessary and 
in the public interest for public safety to gain access to 
commercial wireless broadband networks. Section 211 would 
permit the FCC to consider rules to improve the ability of 
public safety users to roam on and gain priority access to 
commercial networks in an emergency. Any such roaming or 
priority access would be premised upon the public safety 
entity's equipment being technically compatible with the 
commercial network, the commercial network being reasonably 
compensated, and that such access does not preempt or otherwise 
terminate or degrade all existing voice conversations or data 
sessions.

Section 212. Transitional Analysis of Public Safety Network Attributes.

  This section would require the development of an independent 
framework to be used by the Corporation to develop a cost-
benefit analysis for the building, deployment, and operation of 
the public safety network. The framework would be required to 
be completed within 180 days of enactment of this Act. The 
Committee intends that this up-front analysis and review will 
help contain costs and promote efficient network choices, while 
not imposing significant cost or resulting in any delay in the 
construction of the network.
  The analysis would use an evaluation framework developed by 
the Director of NIST, in consultation with the Secretary of 
Homeland Security, the Attorney General, and the Director of 
the Office of Management and Budget. This framework would: (1) 
be informed by a report by an independent and neutral agent; 
and (2) consider a report completed by the Visiting Committee 
on Advanced Technology of NIST. The framework would evaluate 
the marginal costs and benefits of each attribute of the 
network, the feasibility of the attribute, and the resulting 
competitive vendor supply ecosystem created by the attribute.

Section 213. Prohibition on Offering of Commercial Telecommunications 
        Service Directly to Consumers.

  This section would prevent the Corporation from offering, 
providing, or marketing commercial telecommunications or 
information services directly to consumers. This section would 
not prohibit the secondary access to the spectrum, network, or 
infrastructure pursuant to section 208 of this Act.

Section 214. Provision of Technical Assistance.

  Section 214 of the bill would authorize the FCC to provide 
technical assistance and to assist the Corporation in 
effectuating its duties and responsibilities under this 
subtitle. For example, this section would allow the FCC to 
adopt technical rules necessary to manage spectrum use in bands 
adjacent to the public safety broadband spectrum to prevent 
out-of-band interference problems or to address operation of 
the public safety broadband network in areas near the 
international borders of the United States.
  The Committee recognizes that the bill would provide the 
Corporation with a unique, statutorily granted nationwide 
license with broad discretion to manage the spectrum and 
network on behalf of the Nation's first responders. This also 
necessarily would create a unique role for the FCC.
  The Committee intends the direction to the FCC to ``take any 
action necessary to assist'' to indicate a supportive role to 
the Corporation. The Committee foresees instances in which the 
Corporation would seek specific assistance or declaratory 
rulings from the FCC that the Corporation deems necessary.

SUBTITLE B--PUBLIC SAFETY COMMITMENTS

Section 221. State and Local Implementation Fund.

  This section would establish a ``State and Local 
Implementation Fund'' from which the Assistant Secretary of 
Commerce for Communications and Information (the Assistant 
Secretary) can administer a grant program for the purposes of 
the ``State and Local Implementation Grant Program'' 
established in section 222 of this Act. This section would also 
authorize the Assistant Secretary to borrow from the general 
fund of the Treasury to implement this section.

Section 222. State and Local Implementation.

  Section 222 of this Act would establish a ``State and Local 
Implementation Grant Program,'' not to exceed $250 million, to 
assist State, regional, tribal, and local jurisdictions to 
identify and plan the most efficient and effective way to 
utilize and integrate use of the nationwide public safety 
interoperable broadband network to satisfy the communications 
needs of that jurisdiction. The Committee intends for these 
grants to provide jurisdictions with the resources necessary to 
gather information relating to existing and needed 
infrastructure, to determine and plan for specific 
communications needs within jurisdictions, and to aggregate 
this granular data at the State level. To facilitate this 
coordination within and among jurisdictions--as well as with 
the Corporation--each State would be required to certify in its 
application for grant funds that it has designated a single 
officer or governmental body to serve as the coordinator of the 
implementation of grant funds.
  While the Federal share of a grant under this program would 
not exceed 80 percent of the eligible costs, this section would 
allow the Assistant Secretary to waive, in whole or in part, 
this requirement if it is in the public interest.
  Priority would be given for those grant applications for 
activities that ensure coverage in rural as well as urban 
areas.

Section 223. Public Safety Wireless Communications Research and 
        Development.

  To maximize the benefits of the nationwide public safety 
network for current and future users, the Committee believes it 
is necessary to fund research and development programs that are 
specifically targeted at public safety communications.
  This section would require NIST, in consultation with the 
FCC, the Department of Homeland Security, the Department of 
Justice, and the Corporation's standing public safety advisory 
committee, to research and develop standards, technologies, and 
applications that advance wireless public safety communication. 
To accomplish this task, the Director of NIST would be required 
to work in consultation with the standing public safety 
advisory committee and the FCC to, among other things: (1) 
document public safety wireless communications technical 
requirements; (2) accelerate the development of the capability 
for existing public safety narrowband systems to communicate 
with the new broadband network; (3) establish a research plan 
for future communication technology; and (4) accelerate the 
development of mission critical voice, including development of 
device-to-device ``talkaround'' capability for the broadband 
network, as necessary. To meet these requirements, NIST would 
convene working groups of relevant government and commercial 
parties.

Section 224. Advanced Information and Communications Technology 
        Research.

  Section 224 would instruct the Director of NIST and the 
Director of NSF to promote innovation through transformative 
telecommunications research for telecommunications services, 
equipment, and technology. Under this section, NIST would also 
continue to support research and standards development in 
advanced information and communications technologies focused on 
facilitating the availability of advanced communications 
services to all Americans.
  This section would also require the Director of NSF to use 
not more than five percent of the funds made available in a 
fiscal year from the ``Public Safety Trust Fund,'' established 
in section 401 of this Act, to expand existing grant programs 
to include emerging wireless technologies. The grants would 
support research in a variety of areas, which may include 
opportunistic spectrum sharing, cyberphysical systems, 
efficient spectrum use, dynamic spectrum access, interference 
mitigation, emerging use interface and sensing technologies, 
wireless ad hoc networks, network resiliency and cybersecurity, 
communications interoperability, pervasive information 
technology, nanoelectronics, low-power communications, and 
networking protocols and architectures. Awards of grants would 
be merit-based and give priority to those that offer the 
potential for transformational breakthroughs.
  This section would instruct DARPA to use not more than five 
percent of any funds made available in a fiscal year from the 
Public Safety Trust Fund to conduct research in wireless 
communications to develop more secure, reliable, and flexible 
wireless systems for Federal users. Areas of research may 
include increasing data transmission speeds of wireless 
communications, spectrum sharing and interference mitigation, 
technologies to foster reallocation of spectrum for non-Federal 
use, and converting defense or other Federal systems to more 
advanced or efficient systems. DARPA should collaborate with 
the NTIA, NIST, and NSF in these efforts.

                 TITLE III--SPECTRUM AUCTION AUTHORITY

Section 301. Extension of Auction Authority.

  Section 301 would extend the FCC's spectrum auction authority 
from 2012 to 2021.

Section 302. Auction of Spectrum.

  This section would amend the Communications Act to instruct 
the FCC to auction by January 31, 2014, the following spectrum 
bands: 1915-1920 MHz, 1995-2000 MHz, 2020-2025 MHz, 2155-2175 
MHz, 2175-2180 MHz, and 1755-1850 MHz, and at least 15 MHz of 
contiguous Federal spectrum in the 1675 to 1710 MHz band 
identified by the Assistant Secretary within one year of 
enactment of this Act.
  The FCC would be authorized, if technically feasible and in 
the public interest, to combine the spectrum between 2155 and 
2180 MHz and 1755 and 1780 MHz into paired spectrum blocks in 
an auction of licenses.
  This section would also direct the FCC to reallocate through 
auction the spectrum between 3550 and 3650 MHz. The FCC would 
be required to auction this spectrum within three years of the 
passage of this Act. The spectrum would not be auctioned, 
however, if the President determines that this spectrum is 
needed to protect incumbent Federal systems or reallocation of 
other comparably valued spectrum better serves the public 
interest. If this spectrum cannot be reallocated, then the 
President would identify within one year between 20 and 100 
megahertz of alternate spectrum. This section would also 
require the President to report to the appropriate committees 
of Congress what spectrum has been identified and immediately 
make this spectrum available for reallocation. If the President 
does not make a decision as to the spectrum between 3550 and 
3650 MHz, then the FCC would be directed to auction it within 
three years from the date of enactment.
  Section 302 also would amend the Communications Act to direct 
the FCC, when designing spectrum auctions, to ensure that there 
is an adequate opportunity for applicants to obtain licenses 
covering both large and small geographic areas.

Section 303. Incentive Auction Authority.

  Section 303 would expand the FCC's existing spectrum auction 
authority. The FCC currently has authority to conduct spectrum 
auctions, but it does not have the authority to share auction 
revenues with licensees that voluntarily relinquish their 
spectrum usage rights.
  Section 303 would amend the Communications Act to authorize 
the FCC to conduct incentive auctions. Specifically, if the FCC 
determines that reallocation of certain spectrum licenses is in 
the public interest and a current licensee voluntarily agrees 
to relinquish some or all of its rights to that spectrum, the 
FCC would be authorized to auction the spectrum and direct to 
the original licensee a portion of the proceeds from the 
auction. Relinquishment of these spectrum usage rights would 
allow more spectrum to be brought to market, which could help 
meet the growing demand for spectrum for flexible commercial 
uses, including wireless broadband. This additional authority 
would be sufficiently flexible to allow for such incentive 
auctions in a range of spectrum bands and circumstances. This 
section also would permit the FCC to designate portions of the 
relinquished spectrum rights for use exclusively on an 
unlicensed basis.
  The section would authorize the FCC to repack broadcast 
television licensees if such repacking is in the public 
interest. If a licensee must relocate to a new frequency, the 
FCC would be allowed to disburse to that licensee a portion of 
the incentive auction proceeds. The FCC would also be required 
to make reasonable efforts to preserve the amount of population 
covered by the licensees' signal within the licensees' service 
areas, avoid any interference increases, allow licensees 
assigned to channels 2 through 6 to move to the UHF band, and 
allow low-power television stations impacted by the relocation 
of other licensees to move from the UHF to the VHF band. In 
implementing these provisions, the Committee recommends that 
the FCC also take into consideration the degree of over-the-air 
viewership of broadcast television stations, including licenses 
serving areas where more than a fifth of all viewing occurs in 
households relying exclusively on over-the-air television. The 
Committee also intends that in any repacking process, the FCC 
will take into consideration protecting viewership of over-the-
air television along the international borders with Canada and 
Mexico.
  The FCC would not be authorized under this section to reclaim 
spectrum from a television broadcaster without its voluntary 
consent, unless: (1) the FCC allocates an identical amount of 
contiguous spectrum between channels 14 and 50 in the same 
geographic market television market, if the spectrum was 
reclaimed from between channels 14 and 51; or (2) the FCC 
allocates an identical amount of contiguous spectrum between 
channels 2 and 13 in the same geographic market, if the 
spectrum was reclaimed between channels 2 and 13.
  The FCC would not be permitted to co-locate multiple 
television broadcast licensees on the same channel if the 
licensees do not agree. If stations voluntarily agree to share 
a channel, they would retain their rights to carriage, pursuant 
to sections 338, 614, or 615 of the Communications Act (47 
U.S.C. 338, 534, 535). The Committee, however, intends that the 
FCC would be able to assist those stations which voluntary 
agree to co-locate to find a licensee with which to share a 
channel, if such stations seek the FCC's assistance.
  This section would also establish an ``Incentive Auction 
Relocation Fund'' that would be accessible by the NTIA for 18 
months after the incentive auction ends or the date on which 
the FCC issues all necessary new channel assignments, whichever 
is later. These funds would be used to cover relocation costs 
for broadcast television stations that are relocated and the 
costs of MVPDs to comply with the obligations to continue to 
carry the broadcasters' programming.
  This section would direct the FCC, at the same time as it 
undertakes the incentive auction process for spectrum currently 
allocated to broadcast television, to ensure that adequate 
spectrum both nationwide and in each local television market 
remains available in frequency bands between 54 and 72 MHz, 76 
and 88 MHz, 174 and 216 MHz, and 470 and 698 MHz for unlicensed 
device operation. Subclause (IV) would ensure that to the 
extent that spectrum is relinquished by broadcasters to the FCC 
for reassignment pursuant to the incentive auction process 
authorized by subparagraph (F), at least 84 MHz of that 
spectrum anywhere in the United States should be reassigned to 
new users through competitive bidding. The subclause also 
provides that the Commission will have the discretion to 
disburse auction revenues to licensees as needed for the 
purpose of ensuring that unlicensed spectrum remains available 
in the designated frequency bands, both nationwide and in each 
local market.
  The Committee does not intend the language in this subclause 
to supersede previous provisions in this Act requiring the 
Commission to follow specific procedures for reclamation and 
repurposing of broadcast spectrum for reauction, as outlined in 
subclauses (I) through (II) of clause (ii) of subparagraph (F). 
Those required mandates include, but are not limited to, 
voluntary participation by broadcasters in incentive auctions, 
steps that the FCC must follow should it conduct broadcast band 
repacking, and protections for broadcasters who are subject to 
or affected by repacking.
  This section would authorize the FCC to use incentive 
auctions in the event it decides to make available for 
terrestrial broadband use the 2000-2020 MHz bands and the 2180-
2200 MHz bands. This section would also state that it is the 
sense of Congress that if any of the spectrum bands identified 
in section 303 of this Act are auctioned by the FCC, they 
should be licensed for flexible use consistent with the public 
interest.
  It is the Committee's intent that the FCC, as the expert 
agency, be given discretion and flexibility in designing and 
conducting incentive auctions that rely on private market 
transactions to guide resources to the maximum consumer 
benefits.

Section 304. Efficient Use of Public Safety Spectrum.

  Section 304 would direct the FCC to provide to the 
appropriate committees within 180 days of enactment, and every 
two years thereafter: (1) an assessment of whether spectrum is 
adequate for public safety's current and future needs, 
including an examination and inventory of how public safety 
spectrum is being used; and (2) an assessment of the 
opportunity to return any additional public safety spectrum to 
the FCC for reallocation. The report would inventory the 
spectrum assigned to public safety use, including the amount of 
spectrum allocated to public safety, the number of licensees 
and amount of spectrum assigned to each licensee, a general 
description of the technologies in each band, an approximation 
of network coverage of major systems in major metropolitan 
areas, and an approximation of the number of users on these 
systems.

Section 305. Report on Satellite Broadband.

  This section would instruct the Comptroller General to 
conduct a study and submit a report within two years of 
enactment to the appropriate committees of Congress on the 
current and future capabilities of fixed and mobile satellite 
broadband to assist public safety entities during an emergency. 
The Committee does not intend this study to limit the ability 
of the Corporation to partner with satellite broadband 
providers in the implementation of this Act.

Section 306. Federal Infrastructure Sharing.

  Section 306 would require the Administrator of General 
Services to establish rules that allow the Corporation, and 
other public safety entities permitted to use the spectrum 
allocated to the Corporation, to have access to those 
components of Federal infrastructure appropriate to construct 
and maintain the nationwide public safety interoperable 
broadband network.

Section 307. Report on Unlicensed Spectrum.

  This section would require the FCC to submit a report within 
five years of enactment to the appropriate committees of 
Congress on the development and use of unlicensed spectrum.

                   TITLE IV--PUBLIC SAFETY TRUST FUND

Section 401. Public Safety Trust Fund.

  Section 401 would establish a ``Public Safety Trust Fund'' 
(the Fund) in which the proceeds from the spectrum auctions 
under title III of this Act would be deposited. The Fund would 
be used to pay the required initiatives under this Act.
  Under this section, amounts in the Fund would first provide 
payment to the licensees returning their spectrum for an 
incentive auction. This section would require the Chairman of 
the FCC, in consultation with the Director of the OMB, to 
notify the appropriate committees of Congress at least three 
months before any incentive auctions. The notification would 
include the methodology for calculating the incentive payments 
to the licensees returning their spectrum. The methodology 
would account for the value of the spectrum in its current use 
and the timeliness in which it will be cleared.
  At least five percent of the Fund, up to $1 billion, shall be 
deposited into the Incentive Auction Relocation Fund to 
reimburse television broadcasters and MVPDs pursuant to section 
303 of this Act.
  This section also requires that $250 million be deposited in 
the State and Local Implementation Fund under section 221 of 
this Act to be used for planning grants to State, regional, 
local, and tribal public safety entities.
  Under this section, $11.75 billion would be deposited with 
the Corporation for the nationwide public safety interoperable 
broadband network, including at least $10.5 billion for any 
Radio Access Network buildout and at least $1.25 billion to 
develop an Evolved Packet Core.
  In terms of research and development, $100 million would be 
designated per year for fiscal years 2012 to 2016 for the 
Director of NIST to carry out the public safety research and 
development described in section 223 of this Act. Additionally, 
$200 million would be designated per year for fiscal years 2012 
to 2016 for the advanced information and communications 
technology research described in section 224 of this Act, of 
which $130 million is made available for the NSF grant program 
and $70 million is made available for DARPA's research each 
year.
  Any amounts remaining in the Fund at the end of fiscal year 
2021 would be deposited in the Treasury and dedicated solely 
for deficit reduction.

                        TITLE V--SPECTRUM POLICY

SUBTITLE A--INVENTORY AND PLANNING

Section 501. Radio Spectrum Inventory.

  This section would require the FCC to conduct, within 180 
days of enactment and biennially thereafter, a spectrum 
inventory in consultation with NTIA and the Office of Science 
and Technology Policy. The FCC would prepare a report that 
inventories each radio spectrum band from 300 MHz to 3.5 GHz, 
at a minimum. The inventory would be made available online to 
the public and updated quarterly. The FCC would bear the cost 
for maintaining the inventory and website.
  This section would also set up a process to protect 
information when the head of any Federal agency determines that 
such information is classified or its disclosure would be 
harmful to national security. In addition, if a licensee of 
non-Federal spectrum determines that public disclosure of 
certain information would be detrimental to public safety, the 
section would provide a process to ensure that such information 
is not disclosed.

Section 502. Federal Spectrum Planning.

  Section 502 would take a number of steps to improve spectrum 
management decisions by Federal agencies. First, the 
Comptroller General would be required to submit a report within 
six months of enactment that reviews the processes Federal 
entities use to evaluate their spectrum needs and recommends 
how to improve these processes. Within one year of enactment, 
Federal agencies would be required to comply with the 
recommendations in the report.
  This section would also require Federal entities to submit an 
entity-specific strategic spectrum plan. Using the individual 
entity-specific spectrum plans, the Secretary of Commerce would 
prepare a comprehensive Federal Strategic Spectrum Plan within 
one year of receiving the reports from the Federal entities.
  This section would then direct the NTIA and the FCC, working 
with State, local, and tribal governments and commercial 
spectrum interests, to develop a quadrennial National Strategic 
Spectrum Plan within two years of enactment. The plan would 
include: the Federal Strategic Spectrum Plan; long-range 
spectrum planning of commercial, State and local government, 
and Federal Government users; new technologies and expanded 
services requiring spectrum; the nature of new radio 
communications systems and the spectrum required; efficient 
approaches to meeting future spectrum needs; and an evaluation 
of current auction processes.
  This section would also establish a process by which 
information would be protected from public disclosure if a head 
of a Federal entity determines that disclosure of such 
information would be harmful to national security.

SUBTITLE B--MARKETS

Section 511. Promoting Secondary Spectrum Markets.

  This section would direct the FCC to conduct a proceeding to 
determine how to further promote a more robust secondary 
spectrum market, including the establishment of a national 
database for information on secondary market opportunities.

Section 512. Unlicensed Use in 5 GHz.

  Section 512 would direct FCC to allow, within one year of 
enactment, unlicensed devices intended and marketed for indoor 
use to operate in the 5350-5470 MHz band, provided that the FCC 
finds that technical solutions, including spectrum sharing 
technologies such as dynamic frequency selection capability, 
will protect and not compromise the primary mission of Federal 
spectrum users. Within eight months of enactment, the NTIA, in 
consultation with the FCC, would submit to the appropriate 
committees of Congress a study evaluating sharing technologies 
and the potential risks to Federal users of allowing indoor use 
of unlicensed devices in in the 5350-5470 MHz band.

Section 513. Experimental Licenses.

  Section 513 would direct the FCC to amend its rules within 
nine months of enactment to promote greater experimentation, 
broaden opportunities for market trials, promote advancement in 
health care, establish innovation zones, and establish a 
process in which qualified entities, such as colleges and 
universities and public and private companies, can use a broad 
range of frequencies for research and experimentation without 
prior FCC authorization.

Section 514. Repurposing Federal Spectrum for Commercial Purposes and 
        Federal Spectrum Sharing.

  This section would provide a number of incentives to Federal 
spectrum users to facilitate greater spectrum efficiency by 
such users and to make additional spectrum available for 
commercial wireless uses.
  The section would amend the National Telecommunications and 
Information Administration Organization Act (NTIAO Act) (P.L. 
102-538) to authorize payments from the Spectrum Relocation 
Fund to cover relocation costs (including upfront planning 
costs that occur before an auction) for Federal entities to 
better enable the entities to evaluate the cost and scheduling 
implications of spectrum relocation activities. These payments 
would facilitate the Federal government spectrum relocation 
process while ensuring the continuity of entity missions. The 
covered costs include: the cost to modify or replace equipment; 
the costs of engineering and construction; the costs of 
research and analysis associated with calculating relocation 
costs, determining technical feasibility, or planning or 
managing location; the cost of modification or replacement to 
accommodate sharing with commercial users; the cost associated 
with accelerated replacement of systems; and the costs of use 
of commercial equipment to replace Federal equipment.
  This section would also add to the NTIAO Act a provision 
allowing Federal entities to share Federal spectrum with non-
Federal entities. Before sharing any spectrum, the Federal 
entity must get approval from the NTIA in consultation with the 
OMB. Any fees collected from spectrum sharing will be deposited 
in the Spectrum Relocation Fund, which can be used to reimburse 
Federal entities that incur costs from sharing.
  Section 514 would also make available for the Director of OMB 
up to 10 percent of the amount deposited in the Spectrum 
Relocation Fund from the auction of licenses vacated by Federal 
entities, or up to 10 percent of the amount deposited in the 
Spectrum Relocation Fund by non-Federal entities for sharing of 
Federal spectrum. The Director of OMB, in consultation with the 
Assistant Secretary, would be authorized to use such funds to 
pay eligible Federal entities for timely access to such 
spectrum. The payments would be based on the market value of 
the spectrum, the timeliness of clearance, and the need for the 
spectrum. The payments would be used to achieve enhanced 
capabilities for the systems affected by the reallocation for 
Federal spectrum or for other systems essential for the entity. 
Any amounts remaining in the Spectrum Relocation Fund eight 
years after the amount was deposited in the Spectrum Relocation 
Fund would revert to the U.S. Treasury.

Section 515. Report on Spectrum Sharing.

  This section would instruct the NTIA to conduct a study and 
submit a report within one year of enactment that identifies 
spectrum between 225 MHz and 3700 MHz suitable for sharing with 
government or non-Federal government entities and describes how 
Federal entities can use dynamic spectrum sharing to share 
underutilized spectrum. Within six months of the report, the 
NTIA would conduct a public consultation to develop rules for 
Federal users to increase spectrum sharing by Federal entities.

SUBTITLE C--EFFICIENCY AND MANAGEMENT

Section 521. Functional Responsibility of the NTIA to Ensure Efficient 
        Use of Spectrum.

  Section 521 would amend the NTIAO Act to make the NTIA 
responsible for promoting the best possible and most efficient 
use of the Federal Government's spectrum, subject to and 
consistent with the needs and missions of Federal agencies.

Section 522. Spectrum Efficiency Analytic Tools.

  This section would direct the NTIA to develop analytic tools 
to measure the spectrum efficiency of Federal spectrum systems. 
The NTIA would be required to consider the conclusions in the 
report of the Commerce Spectrum Management Advisory Committee 
titled ``Definitions of Efficiency in Spectrum Use,'' dated 
October 1, 2008.

Section 523. Study on Receiver Performance and Spectrum Efficiency.

  Section 523 would require the Comptroller General to conduct 
a study and submit a report within one year of enactment on 
ensuring that transmission systems are designed so that 
reasonable use of the adjacent bands does not excessively 
impair such systems. The study would consider the value of 
improving receiver performance, improving operations in 
adjacent bands, and narrowing the guard bands between adjacent 
spectrum blocks. The study would also consider the role of 
manufacturers, licensees, and government users, as well as the 
feasibility of industry self-compliance.

Section 524. Frequency Assignment.

  This section would require the NTIA, in consultation with the 
Interdepartment Radio Advisory Committee, to examine its 
frequency assignment process and consider best practices to 
determine whether the current approach for collecting and 
validating data from Federal entities can be streamlined or 
improved.
  In carrying out this section, the NTIA would be required to 
consider whether it should provide Federal entities with 
specific guidelines or requirements to justify spectrum 
requests, require Federal entities to submit documentation, 
verify that entities have completed supporting analysis, and 
require mangers of spectrum resources at each Federal entity to 
validate, verify, or attest to the accuracy of any spectrum 
information submitted to the NTIA.

Section 525. Spectrum Opportunity Cost Transparency.

  Section 525 would instruct the NTIA, in consultation with the 
FCC and OMB, to determine the annual economic opportunity cost 
of each Federal spectrum band between 150 MHz and 6000 MHz 
assigned to or used by Federal users. This framework would help 
Federal users better understand the value of the spectrum and 
increase transparency for the public. The analysis would be 
updated on an annual basis to account for changes in valuation. 
This section would define opportunity cost as the value of 
spectrum, in dollar terms, as if such spectrum were to be 
reallocated to the highest commercial alternative use that 
currently does not have access to that spectrum. Each Federal 
entity would report the opportunity cost borne by that agency 
for each spectrum band that is entirely under the control of 
that single agency as part of its budget and the annual 
required financial statement. Every five years, each Federal 
agency would be required to analyze the opportunity cost 
against the cost of relocation of the Federal users, sharing 
the spectrum, leasing other non-Federal spectrum, or 
contracting out for its spectrum activities.
  This section would instruct the Comptroller General, in 
consultation with the NTIA, to examine the technologies and 
equipment used on Federal spectrum to ensure they are the most 
efficient available. If the technologies and equipment are not 
the most spectrum efficient available, the study would 
determine what the cost, benefits, or problems would be to 
upgrade the system.

Section 526. System Certification.

  This section would direct OMB to update, within six months of 
enactment, section 33.4 of OMB Circular A-11 to reflect the 
recommendations in the Commerce Spectrum Management Advisory 
Committee Incentive Subcommittee report adopted January 11, 
2011.

Section 527. Report to Congress on Improving Spectrum Management.

  Section 527 would instruct the NTIA to report, within three 
months of enactment, on the status of NTIA's plan to implement 
the recommendations in the ``President's Memorandum on 
Improving Spectrum Management for the 21st Century.''

Section 528. Wireless Facilities Deployment.

  This section would prohibit a State or local government from 
denying a request for a modification of an existing wireless 
tower that does not substantially change the physical 
dimensions of such tower. This section defines ``eligible 
facilities request'' as a request for modification of an 
existing tower for collocation of new transmission equipment, 
removal of transmission equipment, and replacement of 
transmission equipment.
  The Committee intends that an eligible facilities request 
under this section includes requests that do not change the 
overall visual appearance of the tower, the weight loading or 
sail area of the tower, or the power requirements needed to 
service the tower's transmission equipment. The Committee 
further intends that the term ``collocation'' would mean 
collocation as defined by the FCC.
  The section would also allow Federal executive agencies to 
grant to State and local governments and to private entities 
easements or rights-of-way to government-owned buildings to 
install, construct, or maintain wireless service and backhaul 
equipment. The agency granting such access would be authorized 
to collect a fee for such access, which may be waived based on 
the public benefits of granting such an easement or right-of-
way. Any such fees would be deposited in the Federal Buildings 
Fund. This section would also direct the General Services 
Administration to develop a master contract for the placement 
of wireless equipment on buildings and property owned by the 
Federal government.
  In authorizing Federal executive agencies to grant such 
easements or rights-of-way to government-owned buildings, the 
Committee does not intend that such permissive authority in any 
way would compromise Federal executive agencies' ability to 
protect national security or safety.

          TITLE VI--STUDIES ON NEXT GENERATION 9-1-1 SERVICES

Section 601. Definitions.

  This section would define the terms 9-1-1 services, E9-1-1 
services, Next Generation 9-1-1, and Public Safety Answering 
Point for use in this title.

Section 602. NHTSA Report on Costs for Requirements and Specifications 
        of Next Generation 9-1-1 Services.

  Section 602 would direct the Administrator of the National 
Highway Traffic Safety Administration (NHTSA), in consultation 
with the FCC and the Secretary of Homeland Security, to submit 
a report to Congress within one year of enactment that analyzes 
the detailed costs for NG 9-1-1 specifications. The report 
would serve as a resource to Congress as it considers creating 
a coordinated, long-term funding mechanism for NG 9-1-1.

Section 603. FCC Recommendations for Legal and Statutory Framework for 
        Next Generation 9-1-1 Services.

  This section would direct the FCC, in coordination with the 
Secretary of Homeland Security and the Administrator of NHTSA, 
to submit a report to Congress within one year of enactment 
that includes recommendations on the legal and statutory 
framework for NG 9-1-1 services. The report would contain a 
legal and regulatory framework for the transition to NG 9-1-1, 
legal mechanisms to ensure accurate transmission of 9-1-1 
caller information, and recommendations for removing 
jurisdictional barriers to NG 9-1-1.

                        TITLE VII--MISCELLANEOUS

Section 701. Severability.

  This section would state that, if any provision of the Act is 
held to be unconstitutional, the other provisions of this Act 
will not be affected.

Section 702. Rule of Construction.

  This section would state that nothing in this Act shall be 
construed as adding or subtracting from the authority the FCC 
may or may not have to regulate broadband Internet access 
service.

        TITLE VIII--COMPLIANCE WITH STATUTORY PAY-AS-YOU-GO ACT

Section 801. Budget Compliance.

  This section contains standard language regarding the 
budgetary effects of the Act as it pertains to PAYGO 
compliance:
  Pay-As-You-Go Considerations: The Statutory Pay-As-You-Go Act 
of 2010 establishes budget-reporting and enforcement procedures 
for legislation affecting direct spending or revenues. The net 
changes in outlays that are subject to those pay-as-you-go 
procedures are shown in the following table.

                      CB0 ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR S. 911 AS ORDERED REPORTED BY THE SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION ON JUNE 8, 2011
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                      By fiscal year, in millions of dollars--
                                                  ----------------------------------------------------------------------------------------------------------------------------------------------
                                                      2011       2012       2013       2014       2015       2016       2017       2018       2019       2020       2021    2011-2016  2011-2021
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           NET INCREASE OR DECREASE (-) IN THE DEFICIT

Statutory Pay-As-You-Go Impact...................          0      1,461      1,735        737       -554     -1,503     -2,222     -1,821     -2,104       -869     -1,325      1,876     -6,465
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

                      Rollcall Votes in Committee

  Senators Rockefeller and Hutchison offered an amendment in 
the nature of a substitute (subject to numerous amendments 
previously adopted by voice vote) to strengthen public safety 
and enhance wireless communications, and for other purposes. By 
a rollcall vote of 21 yeas and 4 nays as follows, the amendment 
was adopted:
  
        YEAS--21                      NAYS--4
Mr. Inouye\1\                       Ms. Snowe
Mr. Kerry\1\                        Mr. DeMint
Mrs. Boxer\1\                       Mr. Toomey
Mr. Nelson                          Mr. Rubio
Ms. Cantwell
Mr. Lautenberg
Mr. Pryor
Mrs. McCaskill
Ms. Klobuchar
Mr. Udall
Mr. Warner
Mr. Begich
Mrs. Hutchison
Mr. Thune
Mr. Wicker
Mr. Isakson\1\
Mr. Blunt
Mr. Boozman
Ms. Ayotte
Mr. Heller
Mr. Rockefeller
  
    \1\By proxy

  Senator Toomey offered an amendment to the amendment (in the 
nature of a substitute) offered by Senators Rockefeller and 
Hutchison, to strike section 224 of the bill (relating to 
advanced information and communications technology research). 
By a rollcall vote of 9 yeas and 16 nays as follows, the 
amendment was defeated.
  
        YEAS--9                       NAYS--16
Ms. McCaskill                       Mr. Inouye\1\
Mr. DeMint\1\                       Mr. Kerry\1\
Mr. Thune                           Mrs. Boxer
Mr. Blunt                           Mr. Nelson\1\
Mr. Boozman                         Ms. Cantwell\1\
Mr. Toomey                          Mr. Lautenberg
Mr. Rubio                           Mr. Pryor
Ms. Ayotte                          Ms. Klobuchar
Mr. Heller                          Mr. Udall\1\
                                    Mr. Warner
                                    Mr. Begich\1\
                                    Mrs. Hutchison
                                    Ms. Snowe\1\
                                    Mr. Wicker\1\
                                    Mr. Isakson\1\
                                    Mr. Rockefeller
  
    \1\By proxy

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman):

                       COMMUNICATIONS ACT OF 1934

                        [47 U.S.C. 301 et seq.]

SEC. 309. APPLICATION FOR LICENSE.

[47 U.S.C. 309]

           *       *       *       *       *       *       *


  (j) Use of Competitive Bidding.--
          (1) General authority.--If, consistent with the 
        obligations described in paragraph (6)(E), mutually 
        exclusive applications are accepted for any initial 
        license or construction permit, then, except as 
        provided in paragraph (2), the Commission shall grant 
        the license or permit to a qualified applicant through 
        a system of competitive bidding that meets the 
        requirements of this subsection.
          (2) Exemptions.--The competitive bidding authority 
        granted by this subsection shall not apply to licenses 
        or construction permits issued by the Commission--
                  (A) for public safety radio services, 
                including private internal radio services used 
                by State and local governments and non-
                government entities and including emergency 
                road services provided by not-for-profit 
                organizations, that--
                          (i) are used to protect the safety of 
                        life, health, or property; and
                          (ii) are not made commercially 
                        available to the public;
                  (B) for initial licenses or construction 
                permits for digital television service given to 
                existing terrestrial broadcast licensees to 
                replace their analog television service 
                licenses; or
                  (C) for stations described in section 397(6) 
                of this Act.
          (3) Design of systems of competitive bidding.--For 
        each class of licenses or permits that the Commission 
        grants through the use of a competitive bidding system, 
        the Commission shall, by regulation, establish a 
        competitive bidding methodology. The Commission shall 
        seek to design and test multiple alternative 
        methodologies under appropriate circumstances. The 
        Commission shall, directly or by contract, provide for 
        the design and conduct (for purposes of testing) of 
        competitive bidding using a contingent combinatorial 
        bidding system that permits prospective bidders to bid 
        on combinations or groups of licenses in a single bid 
        and to enter multiple alternative bids within a single 
        bidding round. In identifying classes of licenses and 
        permits to be issued by competitive bidding, in 
        specifying eligibility and other characteristics of 
        such licenses and permits, and in designing the 
        methodologies for use under this subsection, the 
        Commission shall include safeguards to protect the 
        public interest in the use of the spectrum and shall 
        seek to promote the purposes specified in section 1 of 
        this Act and the following objectives:
                  (A) the development and rapid deployment of 
                new technologies, products, and services for 
                the benefit of the public, including those 
                residing in rural areas, without administrative 
                or judicial delays;
                  (B) promoting economic opportunity and 
                competition and ensuring that new and 
                innovative technologies are readily accessible 
                to the American people by avoiding excessive 
                concentration of licenses and by disseminating 
                licenses among a wide variety of applicants, 
                including small businesses, rural telephone 
                companies, and businesses owned by members of 
                minority groups and women;
                  (C) recovery for the public of a portion of 
                the value of the public spectrum resource made 
                available for commercial use and avoidance of 
                unjust enrichment through the methods employed 
                to award uses of that resource;
                  (D) efficient and intensive use of the 
                electromagnetic spectrum;
                  (E) ensure that, in the scheduling of any 
                competitive bidding under this subsection, an 
                adequate period is allowed--
                          (i) before issuance of bidding rules, 
                        to permit notice and comment on 
                        proposed auction procedures; and
                          (ii) after issuance of bidding rules, 
                        to ensure that interested parties have 
                        a sufficient time to develop business 
                        plans, assess market conditions, and 
                        evaluate the availability of equipment 
                        for the relevant services[; and] ;
                  (F) for any auction of eligible frequencies 
                described in section 113(g)(2) of the National 
                Telecommunications and Information 
                Administration Organization Act (47 U.S.C. 
                923(g)(2)), the recovery of 110 percent of 
                estimated relocation costs as provided to the 
                Commission pursuant to section 113(g)(4) of 
                such Act[.] ; 
                  (G) ensuring that there is an adequate 
                opportunity for applicants to obtain licenses 
                covering both large and small geographic areas, 
                as such areas are determined by the Commission.
          (4) Contents of regulations.--In prescribing 
        regulations pursuant to paragraph (3), the Commission 
        shall--
                  (A) consider alternative payment schedules 
                and methods of calculation, including lump sums 
                or guaranteed installment payments, with or 
                without royalty payments, or other schedules or 
                methods that promote the objectives described 
                in paragraph (3)(B), and combinations of such 
                schedules and methods;
                  (B) include performance requirements, such as 
                appropriate deadlines and penalties for 
                performance failures, to ensure prompt delivery 
                of service to rural areas, to prevent 
                stockpiling or warehousing of spectrum by 
                licensees or permittees, and to promote 
                investment in and rapid deployment of new 
                technologies and services;
                  (C) consistent with the public interest, 
                convenience, and necessity, the purposes of 
                this Act, and the characteristics of the 
                proposed service, prescribe area designations 
                and bandwidth assignments that promote (i) an 
                equitable distribution of licenses and services 
                among geographic areas, (ii) economic 
                opportunity for a wide variety of applicants, 
                including small businesses, rural telephone 
                companies, and businesses owned by members of 
                minority groups and women, and (iii) investment 
                in and rapid deployment of new technologies and 
                services;
                  (D) ensure that small businesses, rural 
                telephone companies, and businesses owned by 
                members of minority groups and women are given 
                the opportunity to participate in the provision 
                of spectrum-based services, and, for such 
                purposes, consider the use of tax certificates, 
                bidding preferences, and other procedures;
                  (E) require such transfer disclosures and 
                antitrafficking restrictions and payment 
                schedules as may be necessary to prevent unjust 
                enrichment as a result of the methods employed 
                to issue licenses and permits; and
                  (F) prescribe methods by which a reasonable 
                reserve price will be required, or a minimum 
                bid will be established, to obtain any license 
                or permit being assigned pursuant to the 
                competitive bidding, unless the Commission 
                determines that such a reserve price or minimum 
                bid is not in the public interest.
          (5) Bidder and licensee qualification.--No person 
        shall be permitted to participate in a system of 
        competitive bidding pursuant to this subsection unless 
        such bidder submits such information and assurances as 
        the Commission may require to demonstrate that such 
        bidder's application is acceptable for filing. No 
        license shall be granted to an applicant selected 
        pursuant to this subsection unless the Commission 
        determines that the applicant is qualified pursuant to 
        subsection (a) and sections 308(b) and 310. Consistent 
        with the objectives described in paragraph (3), the 
        Commission shall, by regulation, prescribe expedited 
        procedures consistent with the procedures authorized by 
        subsection (i)(2) for the resolution of any substantial 
        and material issues of fact concerning qualifications.
          (6) Rules of construction.--Nothing in this 
        subsection, or in the use of competitive bidding, 
        shall--
                  (A) alter spectrum allocation criteria and 
                procedures established by the other provisions 
                of this Act;
                  (B) limit or otherwise affect the 
                requirements of subsection (h) of this section, 
                section 301, 304, 307, 310, or 706, or any 
                other provision of this Act (other than 
                subsections (d)(2) and (e) of this section);
                  (C) diminish the authority of the Commission 
                under the other provisions of this Act to 
                regulate or reclaim spectrum licenses;
                  (D) be construed to convey any rights, 
                including any expectation of renewal of a 
                license, that differ from the rights that apply 
                to other licenses within the same service that 
                were not issued pursuant to this subsection;
                  (E) be construed to relieve the Commission of 
                the obligation in the public interest to 
                continue to use engineering solutions, 
                negotiation, threshold qualifications, service 
                regulations, and other means in order to avoid 
                mutual exclusivity in application and licensing 
                proceedings;
                  (F) be construed to prohibit the Commission 
                from issuing nationwide, regional, or local 
                licenses or permits;
                  (G) be construed to prevent the Commission 
                from awarding licenses to those persons who 
                make significant contributions to the 
                development of a new telecommunications service 
                or technology; or
                  (H) be construed to relieve any applicant for 
                a license or permit of the obligation to pay 
                charges imposed pursuant to section 8 of this 
                Act.
          (7) Consideration of revenues in public interest 
        determinations.--
                  (A) Consideration prohibited.--In making a 
                decision pursuant to section 303(c) to assign a 
                band of frequencies to a use for which licenses 
                or permits will be issued pursuant to this 
                subsection, and in prescribing regulations 
                pursuant to paragraph (4)(C) of this 
                subsection, the Commission may not base a 
                finding of public interest, convenience, and 
                necessity on the expectation of Federal 
                revenues from the use of a system of 
                competitive bidding under this subsection.
                  (B) Consideration limited.--In prescribing 
                regulations pursuant to paragraph (4)(A) of 
                this subsection, the Commission may not base a 
                finding of public interest, convenience, and 
                necessity solely or predominantly on the 
                expectation of Federal revenues from the use of 
                a system of competitive bidding under this 
                subsection.
                  (C) Consideration of demand for spectrum not 
                affected.--Nothing in this paragraph shall be 
                construed to prevent the Commission from 
                continuing to consider consumer demand for 
                spectrum-based services.
          (8) Treatment of revenues.--
                  (A) General rule.--Except as provided in 
                subparagraphs [(B), (D), and (E),] (B), (D), 
                (E), and (F), all proceeds from the use of a 
                competitive bidding system under this 
                subsection shall be deposited in the Treasury 
                in accordance with chapter 33 of title 31, 
                United States Code.
                  (B) Retention of revenues.--Notwithstanding 
                subparagraph (A), the salaries and expenses 
                account of the Commission shall retain as an 
                offsetting collection such sums as may be 
                necessary from such proceeds for the costs of 
                developing and implementing the program 
                required by this subsection. Such offsetting 
                collections shall be available for obligation 
                subject to the terms and conditions of the 
                receiving appropriations account, and shall be 
                deposited in such accounts on a quarterly 
                basis. Such offsetting collections are 
                authorized to remain available until expended. 
                No sums may be retained under this subparagraph 
                during any fiscal year beginning after 
                September 30, 1998, if the annual report of the 
                Commission under section 4(k) for the second 
                preceding fiscal year fails to include in the 
                itemized statement required by paragraph (3) of 
                such section a statement of each expenditure 
                made for purposes of conducting competitive 
                bidding under this subsection during such 
                second preceding fiscal year.
                  (C) Deposit and use of auction escrow 
                accounts.--Any deposits the Commission may 
                require for the qualification of any person to 
                bid in a system of competitive bidding pursuant 
                to this subsection shall be deposited in an 
                interest bearing account at a financial 
                institution designated for purposes of this 
                subsection by the Commission (after 
                consultation with the Secretary of the 
                Treasury). Within 45 days following the 
                conclusion of the competitive bidding--
                          [(i) the deposits of successful 
                        bidders shall be paid to the Treasury, 
                        except as otherwise provided in 
                        subparagraph (E)(ii);]
                          (i) the deposits--
                                  (I) of successful bidders of 
                                any auction conducted pursuant 
                                to subparagraph (F) or to 
                                section 302 of the Public 
                                Safety Spectrum and Wireless 
                                Innovation Act shall be paid to 
                                the Public Safety Trust Fund 
                                established under section 401 
                                of such Act; and
                                  (II) of successful bidders of 
                                any other auction shall be paid 
                                to the Treasury;
                          (ii) the deposits of unsuccessful 
                        bidders shall be returned to such 
                        bidders; and
                          (iii) the interest accrued to the 
                        account shall be transferred to the 
                        Telecommunications Development Fund 
                        established pursuant to section 714 of 
                        this Act.
                  (D) Disposition of cash proceeds.--Cash 
                proceeds attributable to the auction of any 
                eligible frequencies described in section 
                113(g)(2) of the National Telecommunications 
                and Information Administration Organization Act 
                (47 U.S.C. 923(g)(2)) excluding frequencies 
                identified by the Federal Communications 
                Commission to be auctioned in conjunction with 
                eligible frequencies described in section 
                113(g)(2) shall be deposited in the Spectrum 
                Relocation Fund established under section 118 
                of such Act, and shall be available in 
                accordance with that section.
                  (E) Transfer of receipts.--
                          (i) Establishment of fund.--There is 
                        established in the Treasury of the 
                        United States a fund to be known as the 
                        Digital Television Transition and 
                        Public Safety Fund.
                          (ii) Proceeds for funds.--
                        Notwithstanding subparagraph (A), the 
                        proceeds (including deposits and 
                        upfront payments from successful 
                        bidders) from the use of a competitive 
                        bidding system under this subsection 
                        with respect to recovered analog 
                        spectrum shall be deposited in the 
                        Digital Television Transition and 
                        Public Safety Fund.
                          (iii) Transfer of amount to 
                        Treasury.--On September 30, 2009, the 
                        Secretary shall transfer $ 
                        7,363,000,000 from the Digital 
                        Television Transition and Public Safety 
                        Fund to the general fund of the 
                        Treasury.
                          (iv) Recovered analog spectrum.--For 
                        purposes of clause (i), the term 
                        ``recovered analog spectrum'' has the 
                        meaning provided in paragraph 
                        (15)(C)(vi).
                  (F) Incentive auction authority.--
                          (i) Authority.--Notwithstanding any 
                        other provision of law, if the 
                        Commission determines that it is 
                        consistent with the public interest in 
                        utilization of the spectrum for a 
                        licensee to relinquish voluntarily some 
                        or all of its licensed spectrum usage 
                        rights in order to permit the 
                        assignment of new initial licenses 
                        through a competitive bidding process 
                        subject to new service rules, or the 
                        designation of new spectrum for 
                        unlicensed use, the Commission may 
                        disburse to that licensee a portion of 
                        any auction proceeds that the 
                        Commission determines, in its 
                        discretion, are attributable to the 
                        licensee's relinquished spectrum usage 
                        rights, provided that television 
                        broadcast stations required to be 
                        carried pursuant to sections 338, 614, 
                        or 615 that voluntarily elect to share 
                        a channel shall retain the rights to 
                        carriage set forth in such sections and 
                        the rules of the Commission, as such 
                        rights apply to such station at its 
                        shared location.
                          (ii) Prohibition.--
                                  (I) In general.--The 
                                Commission may not reclaim 
                                spectrum licensed on a primary 
                                basis to a television broadcast 
                                station, directly or 
                                indirectly, on an involuntary 
                                basis for purposes of providing 
                                spectrum to carry out an 
                                incentive auction under this 
                                subparagraph.
                                  (II) Exception.--The 
                                Commission may reclaim spectrum 
                                licensed to a television 
                                broadcast station licensee for 
                                the purposes of providing 
                                spectrum to carry out an 
                                incentive auction under this 
                                subparagraph, only if the 
                                Commission assigns an identical 
                                amount of contiguous spectrum, 
                                located between channels 14 and 
                                50, in the same geographic 
                                market, if the spectrum was 
                                reclaimed from between channels 
                                14 and 51, or located between 
                                channels 2 and 13, inclusive, 
                                in the same geographic market, 
                                to the television broadcast 
                                station licensee if the 
                                spectrum was reclaimed from 
                                between channels 2 and 13, 
                                provided that--
                                          (aa) the Commission 
                                        may not involuntarily 
                                        co-locate multiple 
                                        television broadcast 
                                        station licensees on 
                                        the same channel; and
                                          (bb) television 
                                        broadcast stations 
                                        required to be carried 
                                        pursuant to sections 
                                        338, 614, or 615 that 
                                        voluntarily elect to 
                                        share a channel shall 
                                        retain the rights to 
                                        carriage set forth in 
                                        such sections and the 
                                        rules of the 
                                        Commission, as such 
                                        rights apply to such 
                                        station at its shared 
                                        location.
                                  (III) Repacking.--When 
                                assigning spectrum to 
                                television broadcast station 
                                licensees pursuant to subclause 
                                (II), if the Commission 
                                determines that it is in the 
                                public interest to modify the 
                                spectrum usage rights of any 
                                incumbent licensee in order to 
                                facilitate the assignment of 
                                such new initial licenses 
                                subject to new service rules, 
                                or the designation of spectrum 
                                for an unlicensed use, the 
                                Commission may disburse to such 
                                licensee a portion of the 
                                auction proceeds for the 
                                purpose of relocating to any 
                                alternative frequency or 
                                location that the Commission 
                                may designate, and the 
                                Commission shall, to the extent 
                                technically feasible and in the 
                                public interest, make 
                                reasonable efforts to--
                                          (aa) preserve the 
                                        amount of population 
                                        covered by a licensee's 
                                        signal within the 
                                        licensee's service 
                                        area;
                                          (bb) avoid any 
                                        involuntary increase in 
                                        interference to the 
                                        licensee's signal that 
                                        may otherwise result 
                                        from new spectrum 
                                        assignments;
                                          (cc) allow licensees 
                                        assigned to broadcast 
                                        channels 2 through 6 to 
                                        relocate to channels in 
                                        the UHF range, if 
                                        possible and consistent 
                                        with the goals of the 
                                        incentive auction, as 
                                        determined by the 
                                        Commission; and
                                          (dd) allow low power 
                                        television broadcast 
                                        licensees assigned to 
                                        channels in the UHF 
                                        range that are impacted 
                                        by relocation of other 
                                        licensees pursuant to 
                                        this subclause to 
                                        relocate to channels in 
                                        the VHF range.
                                  (IV) Unlicensed spectrum.--
                                With respect to frequency bands 
                                between 54 and 72 MHz, 76 and 
                                88 MHz, 174 and 216 MHz, 470 
                                and 698 MHz, 84 MHz shall be 
                                assigned via a competitive 
                                bidding process. A portion of 
                                the proceeds from the 
                                competitive bidding of the 
                                frequency bands identified in 
                                the prior sentence may, if 
                                consistent with the public 
                                interest, be disbursed to other 
                                licensees, for the purpose of 
                                ensuring that unlicensed 
                                spectrum remains available in 
                                these frequency bands, 
                                nationwide, and in each local 
                                market.
                          (iii) Treatment of revenues.--
                        Notwithstanding subparagraph (A), and 
                        except as provided in subparagraphs 
                        (B), (C), and (D), all proceeds 
                        (including deposits and up front 
                        payments from successful bidders) from 
                        the auction of spectrum under this 
                        subparagraph shall be deposited with 
                        the Public Safety Trust Fund 
                        established under section 401 of the 
                        Public Safety Spectrum and Wireless 
                        Innovation Act.
                  (G) Establishment of incentive auction 
                relocation fund.--
                          (i) In general.--There is established 
                        in the Treasury of the United States a 
                        fund to be known as the ``Incentive 
                        Auction Relocation Fund''.
                          (ii) Administration.--The Assistant 
                        Secretary shall administer the 
                        Incentive Auction Relocation Fund using 
                        the amounts deposited pursuant to this 
                        section.
                          (iii) Crediting of receipts.--There 
                        shall be deposited into or credited to 
                        the Incentive Auction Relocation Fund 
                        any amounts specified in section 401 of 
                        the Public Safety Spectrum and Wireless 
                        Innovation Act.
                          (iv) Availability.--Amounts in the 
                        Incentive Auction Relocation Fund shall 
                        be available to the NTIA for use--
                                  (I) for a period not to 
                                exceed 18 months following the 
                                later of--
                                          (aa) the completion 
                                        of incentive auction 
                                        from which such amounts 
                                        were derived; or
                                          (bb) the date on 
                                        which the Commission 
                                        issues all the new 
                                        channel assignments 
                                        pursuant to any 
                                        repacking required 
                                        under subparagraph 
                                        (F)(ii); and
                                  (II) without further 
                                appropriation.
                          (v) Use of funds.--Amounts in the 
                        Incentive Auction Relocation Fund may 
                        only be used by the NTIA, in 
                        consultation with the Commission, to 
                        cover--
                                  (I) the reasonable costs of 
                                television broadcast stations 
                                that are relocated to a 
                                different spectrum channel or 
                                geographic location following 
                                an incentive auction under 
                                subparagraph (F), or that are 
                                impacted by such relocations, 
                                including to cover the cost of 
                                new equipment, installation, 
                                and construction; and
                                  (II) the costs incurred by 
                                multichannel video programming 
                                distributors for new equipment, 
                                installation, and construction 
                                related to the carriage of such 
                                relocated stations or the 
                                carriage of stations that 
                                voluntarily elect to share a 
                                channel, but retain their 
                                existing rights to carriage 
                                pursuant to sections 338, 614, 
                                and 615.
          (9) Use of former government spectrum.--The 
        Commission shall, not later than 5 years after the date 
        of enactment of this subsection, issue licenses and 
        permits pursuant to this subsection for the use of 
        bands of frequencies that--
                  (A) in the aggregate span not less than 10 
                megahertz; and
                  (B) have been reassigned from Government use 
                pursuant to part B of the National 
                Telecommunications and Information 
                Administration Organization Act.
          (10) Authority contingent on availability of 
        additional spectrum.--
                  (A) Initial conditions.--The Commission's 
                authority to issue licenses or permits under 
                this subsection shall not take effect unless--
                          (i) the Secretary of Commerce has 
                        submitted to the Commission the report 
                        required by section 113(d)(1) of the 
                        National Telecommunications and 
                        Information Administration Organization 
                        Act;
                          (ii) such report recommends for 
                        immediate reallocation bands of 
                        frequencies that, in the aggregate, 
                        span not less than 50 megahertz;
                          (iii) such bands of frequencies meet 
                        the criteria required by section 113(a) 
                        of such Act; and
                          (iv) the Commission has completed the 
                        rulemaking required by section 
                        332(c)(1)(D) of this Act.
                  (B) Subsequent conditions.--The Commission's 
                authority to issue licenses or permits under 
                this subsection on and after 2 years after the 
                date of the enactment of this subsection shall 
                cease to be effective if--
                          (i) the Secretary of Commerce has 
                        failed to submit the report required by 
                        section 113(a) of the National 
                        Telecommunications and Information 
                        Administration Organization Act;
                          (ii) the President has failed to 
                        withdraw and limit assignments of 
                        frequencies as required by paragraphs 
                        (1) and (2) of section 114(a) of such 
                        Act;
                          (iii) the Commission has failed to 
                        issue the regulations required by 
                        section 115(a) of such Act;
                          (iv) the Commission has failed to 
                        complete and submit to Congress, not 
                        later than 18 months after the date of 
                        enactment of this subsection, a study 
                        of current and future spectrum needs of 
                        State and local government public 
                        safety agencies through the year 2010, 
                        and a specific plan to ensure that 
                        adequate frequencies are made available 
                        to public safety licensees; or
                          (v) the Commission has failed under 
                        section 332(c)(3) to grant or deny 
                        within the time required by such 
                        section any petition that a State has 
                        filed within 90 days after the date of 
                        enactment of this subsection;
                until such failure has been corrected.
          (11) Termination.--The authority of the Commission to 
        grant a license or permit under this subsection shall 
        expire September 30, [2012] 2021.
          (12) Evaluation.--Not later than September 30, 1997, 
        the Commission shall conduct a public inquiry and 
        submit to the Congress a report--
                  (A) containing a statement of the revenues 
                obtained, and a projection of the future 
                revenues, from the use of competitive bidding 
                systems under this subsection;
                  (B) describing the methodologies established 
                by the Commission pursuant to paragraphs (3) 
                and (4);
                  (C) comparing the relative advantages and 
                disadvantages of such methodologies in terms of 
                attaining the objectives described in such 
                paragraphs;
                  (D) evaluating whether and to what extent--
                          (i) competitive bidding significantly 
                        improved the efficiency and 
                        effectiveness of the process for 
                        granting radio spectrum licenses;
                          (ii) competitive bidding facilitated 
                        the introduction of new spectrum-based 
                        technologies and the entry of new 
                        companies into the telecommunications 
                        market;
                          (iii) competitive bidding 
                        methodologies have secured prompt 
                        delivery of service to rural areas and 
                        have adequately addressed the needs of 
                        rural spectrum users; and
                          (iv) small businesses, rural 
                        telephone companies, and businesses 
                        owned by members of minority groups and 
                        women were able to participate 
                        successfully in the competitive bidding 
                        process; and
                  (E) recommending any statutory changes that 
                are needed to improve the competitive bidding 
                process.
          (13) Recovery of value of public spectrum in 
        connection with pioneer preferences.--
                  (A) In general.--Notwithstanding paragraph 
                (6)(G), the Commission shall not award licenses 
                pursuant to a preferential treatment accorded 
                by the Commission to persons who make 
                significant contributions to the development of 
                a new telecommunications service or technology, 
                except in accordance with the requirements of 
                this paragraph.
                  (B) Recovery of value.--The Commission shall 
                recover for the public a portion of the value 
                of the public spectrum resource made available 
                to such person by requiring such person, as a 
                condition for receipt of the license, to agree 
                to pay a sum determined by--
                          (i) identifying the winning bids for 
                        the licenses that the Commission 
                        determines are most reasonably 
                        comparable in terms of bandwidth, scope 
                        of service area, usage restrictions, 
                        and other technical characteristics to 
                        the license awarded to such person, and 
                        excluding licenses that the Commission 
                        determines are subject to bidding 
                        anomalies due to the award of 
                        preferential treatment;
                          (ii) dividing each such winning bid 
                        by the population of its service area 
                        (hereinafter referred to as the per 
                        capita bid amount);
                          (iii) computing the average of the 
                        per capita bid amounts for the licenses 
                        identified under clause (i);
                          (iv) reducing such average amount by 
                        15 percent; and
                          (v) multiplying the amount determined 
                        under clause (iv) by the population of 
                        the service area of the license 
                        obtained by such person.
                  (C) Installments permitted.--The Commission 
                shall require such person to pay the sum 
                required by subparagraph (B) in a lump sum or 
                in guaranteed installment payments, with or 
                without royalty payments, over a period of not 
                more than 5 years.
                  (D) Rulemaking on pioneer preferences.--
                Except with respect to pending applications 
                described in clause (iv) of this subparagraph, 
                the Commission shall prescribe regulations 
                specifying the procedures and criteria by which 
                the Commission will evaluate applications for 
                preferential treatment in its licensing 
                processes (by precluding the filing of mutually 
                exclusive applications) for persons who make 
                significant contributions to the development of 
                a new service or to the development of new 
                technologies that substantially enhance an 
                existing service. Such regulations shall--
                          (i) specify the procedures and 
                        criteria by which the significance of 
                        such contributions will be determined, 
                        after an opportunity for review and 
                        verification by experts in the radio 
                        sciences drawn from among persons who 
                        are not employees of the Commission or 
                        by any applicant for such preferential 
                        treatment;
                          (ii) include such other procedures as 
                        may be necessary to prevent unjust 
                        enrichment by ensuring that the value 
                        of any such contribution justifies any 
                        reduction in the amounts paid for 
                        comparable licenses under this 
                        subsection;
                          (iii) be prescribed not later than 6 
                        months after the date of enactment of 
                        this paragraph;
                          (iv) not apply to applications that 
                        have been accepted for filing on or 
                        before September 1, 1994; and
                          (v) cease to be effective on the date 
                        of the expiration of the Commission's 
                        authority under subparagraph (F).
                  (E) Implementation with respect to pending 
                applications.--In applying this paragraph to 
                any broadband licenses in the personal 
                communications service awarded pursuant to the 
                preferential treatment accorded by the Federal 
                Communications Commission in the Third Report 
                and Order in General Docket 90-314 (FCC 93-550, 
                released February 3, 1994)--
                          (i) the Commission shall not 
                        reconsider the award of preferences in 
                        such Third Report and Order, and the 
                        Commission shall not delay the grant of 
                        licenses based on such awards more than 
                        15 days following the date of enactment 
                        of this paragraph, and the award of 
                        such preferences and licenses shall not 
                        be subject to administrative or 
                        judicial review;
                          (ii) the Commission shall not alter 
                        the bandwidth or service areas 
                        designated for such licenses in such 
                        Third Report and Order;
                          (iii) except as provided in clause 
                        (v), the Commission shall use, as the 
                        most reasonably comparable licenses for 
                        purposes of subparagraph (B)(i), the 
                        broadband licenses in the personal 
                        communications service for blocks A and 
                        B for the 20 largest markets (ranked by 
                        population) in which no applicant has 
                        obtained preferential treatment;
                          (iv) for purposes of subparagraph 
                        (C), the Commission shall permit 
                        guaranteed installment payments over a 
                        period of 5 years, subject to--
                                  (I) the payment only of 
                                interest on unpaid balances 
                                during the first 2 years, 
                                commencing not later than 30 
                                days after the award of the 
                                license (including any 
                                preferential treatment used in 
                                making such award) is final and 
                                no longer subject to 
                                administrative or judicial 
                                review, except that no such 
                                payment shall be required prior 
                                to the date of completion of 
                                the auction of the comparable 
                                licenses described in clause 
                                (iii); and
                                  (II) payment of the unpaid 
                                balance and interest thereon 
                                after the end of such 2 years 
                                in accordance with the 
                                regulations prescribed by the 
                                Commission; and
                          (v) the Commission shall recover with 
                        respect to broadband licenses in the 
                        personal communications service an 
                        amount under this paragraph that is 
                        equal to not less than $ 400,000,000, 
                        and if such amount is less than $ 
                        400,000,000, the Commission shall 
                        recover an amount equal to $ 
                        400,000,000 by allocating such amount 
                        among the holders of such licenses 
                        based on the population of the license 
                        areas held by each licensee.
                The Commission shall not include in any amounts 
                required to be collected under clause (v) the 
                interest on unpaid balances required to be 
                collected under clause (iv).
                  (F) Expiration.--The authority of the 
                Commission to provide preferential treatment in 
                licensing procedures (by precluding the filing 
                of mutually exclusive applications) to persons 
                who make significant contributions to the 
                development of a new service or to the 
                development of new technologies that 
                substantially enhance an existing service shall 
                expire on the date of enactment of the Balanced 
                Budget Act of 1997.
                  (G) Effective date.--This paragraph shall be 
                effective on the date of its enactment and 
                apply to any licenses issued on or after August 
                1, 1994, by the Federal Communications 
                Commission pursuant to any licensing procedure 
                that provides preferential treatment (by 
                precluding the filing of mutually exclusive 
                applications) to persons who make significant 
                contributions to the development of a new 
                service or to the development of new 
                technologies that substantially enhance an 
                existing service.
          (14) Auction of recaptured broadcast television 
        spectrum.--
                  (A) Limitations on terms of terrestrial 
                television broadcast licenses.--A full-power 
                television broadcast license that authorizes 
                analog television service may not be renewed to 
                authorize such service for a period that 
                extends beyond June 12, 2009.
                  (B) Spectrum reversion and resale.--
                          (i) The Commission shall--
                                  (I) ensure that, as licenses 
                                for analog television service 
                                expire pursuant to subparagraph 
                                (A), each licensee shall cease 
                                using electromagnetic spectrum 
                                assigned to such service 
                                according to the Commission's 
                                direction; and
                                  (II) reclaim and organize the 
                                electromagnetic spectrum in a 
                                manner consistent with the 
                                objectives described in 
                                paragraph (3) of this 
                                subsection.
                          (ii) Licensees for new services 
                        occupying spectrum reclaimed pursuant 
                        to clause (i) shall be assigned in 
                        accordance with this subsection.
                  (C) Certain limitations on qualified bidders 
                prohibited.--In prescribing any regulations 
                relating to the qualification of bidders for 
                spectrum reclaimed pursuant to subparagraph 
                (B)(i), the Commission, for any license that 
                may be used for any digital television service 
                where the grade A contour of the station is 
                projected to encompass the entirety of a city 
                with a population in excess of 400,000 (as 
                determined using the 1990 decennial census), 
                shall not--
                          (i) preclude any party from being a 
                        qualified bidder for such spectrum on 
                        the basis of--
                                  (I) the Commission's duopoly 
                                rule (47 C.F.R. 73.3555(b)); or
                                  (II) the Commission's 
                                newspaper cross-ownership rule 
                                (47 C.F.R. 73.3555(d)); or
                          (ii) apply either such rule to 
                        preclude such a party that is a winning 
                        bidder in a competitive bidding for 
                        such spectrum from using such spectrum 
                        for digital television service.
          (15) Commission to determine timing of auctions.--
                  (A) Commission authority.--Subject to the 
                provisions of this subsection (including 
                paragraph (11)), but notwithstanding any other 
                provision of law, the Commission shall 
                determine the timing of and deadlines for the 
                conduct of competitive bidding under this 
                subsection, including the timing of and 
                deadlines for qualifying for bidding; 
                conducting auctions; collecting, depositing, 
                and reporting revenues; and completing 
                licensing processes and assigning licenses.
                  (B) Termination of portions of auctions 31 
                and 44.--Except as provided in subparagraph 
                (C), the Commission shall not commence or 
                conduct auctions 31 and 44 on June 19, 2002, as 
                specified in the public notices of March 19, 
                2002, and March 20, 2002 (DA 02-659 and DA 02-
                563).
                  (C) Exception.--
                          (i) Blocks excepted.--Subparagraph 
                        (B) shall not apply to the auction of--
                                  (I) the C-block of licenses 
                                on the bands of frequencies 
                                located at 710-716 megahertz, 
                                and 740-746 megahertz; or
                                  (II) the D-block of licenses 
                                on the bands of frequencies 
                                located at 716-722 megahertz.
                          (ii) Eligible bidders.--The entities 
                        that shall be eligible to bid in the 
                        auction of the C-block and D-block 
                        licenses described in clause (i) shall 
                        be those entities that were qualified 
                        entities, and that submitted 
                        applications to participate in auction 
                        44, by May 8, 2002, as part of the 
                        original auction 44 short form filing 
                        deadline.
                          (iii) Auction deadlines for excepted 
                        blocks.--Notwithstanding subparagraph 
                        (B), the auction of the C-block and D-
                        block licenses described in clause (i) 
                        shall be commenced no earlier than 
                        August 19, 2002, and no later than 
                        September 19, 2002, and the proceeds of 
                        such auction shall be deposited in 
                        accordance with paragraph (8) not later 
                        than December 31, 2002.
                          (iv) Report.--Within one year after 
                        the date of enactment of this 
                        paragraph, the Commission shall submit 
                        a report to Congress--
                                  (I) specifying when the 
                                Commission intends to 
                                reschedule auctions 31 and 44 
                                (other than the blocks excepted 
                                by clause (i)); and
                                  (II) describing the progress 
                                made by the Commission in the 
                                digital television transition 
                                and in the assignment and 
                                allocation of additional 
                                spectrum for advanced mobile 
                                communications services that 
                                warrants the scheduling of such 
                                auctions.
                          (v) Additional deadlines for 
                        recovered analog spectrum.--
                        Notwithstanding subparagraph (B), the 
                        Commission shall conduct the auction of 
                        the licenses for recovered analog 
                        spectrum by commencing the bidding not 
                        later than January 28, 2008, and shall 
                        deposit the proceeds of such auction in 
                        accordance with paragraph (8)(E)(ii) 
                        not later than June 30, 2008.
                          (vi) Recovered analog spectrum.--For 
                        purposes of clause (v), the term 
                        ``recovered analog spectrum'' means the 
                        spectrum between channels 52 and 69, 
                        inclusive (between frequencies 698 and 
                        806 megahertz, inclusive) reclaimed 
                        from analog television service 
                        broadcasting under paragraph (14), 
                        other than--
                                  (I) the spectrum required by 
                                section 337 to be made 
                                available for public safety 
                                services; and
                                  (II) the spectrum auctioned 
                                prior to the date of enactment 
                                of the Digital Television 
                                Transition and Public Safety 
                                Act of 2005.
                  (D) Return of payments.--Within one month 
                after the date of enactment of this paragraph, 
                the Commission shall return to the bidders for 
                licenses in the A-block, B-block, and E-block 
                of auction 44 the full amount of all upfront 
                payments made by such bidders for such 
                licenses.
          (16) Special auction provisions for eligible 
        frequencies.--
                  (A) Special regulations.--The Commission 
                shall revise the regulations prescribed under 
                paragraph (4)(F) of this subsection to 
                prescribe methods by which the total cash 
                proceeds from any auction of eligible 
                frequencies described in section 113(g)(2) of 
                the National Telecommunications and Information 
                Administration Organization Act (47 U.S.C. 
                923(g)(2)) shall at least equal 110 percent of 
                the total estimated relocation costs provided 
                to the Commission pursuant to section 113(g)(4) 
                of such Act.
                  (B) Conclusion of auctions contingent on 
                minimum proceeds.--The Commission shall not 
                conclude any auction of eligible frequencies 
                described in section 113(g)(2) of such Act if 
                the total cash proceeds attributable to such 
                spectrum are less than 110 percent of the total 
                estimated relocation costs provided to the 
                Commission pursuant to section 113(g)(4) of 
                such Act. If the Commission is unable to 
                conclude an auction for the foregoing reason, 
                the Commission shall cancel the auction, return 
                within 45 days after the auction cancellation 
                date any deposits from participating bidders 
                held in escrow, and absolve such bidders from 
                any obligation to the United States to bid in 
                any subsequent reauction of such spectrum.
                  (C) Authority to issue prior to 
                deauthorization.--In any auction conducted 
                under the regulations required by subparagraph 
                (A), the Commission may grant a license 
                assigned for the use of eligible frequencies 
                prior to the termination of an eligible Federal 
                entity's authorization. However, the Commission 
                shall condition such license by requiring that 
                the licensee cannot cause harmful interference 
                to such Federal entity until such entity's 
                authorization has been terminated by the 
                National Telecommunications and Information 
                Administration.

           *       *       *       *       *       *       *


SEC. 337. ALLOCATION AND ASSIGNMENT OF NEW PUBLIC SAFETY SERVICES 
                    LICENSES AND COMMERCIAL LICENSES.

                            [47 U.S.C. 337]

  (a) In general.--Not later than January 1, 1998, the 
Commission shall allocate the electromagnetic spectrum between 
746 megahertz and 806 megahertz, inclusive, as follows:
          (1) [24] 34 megahertz of that spectrum for public 
        safety services according to the terms and conditions 
        established by the Commission, in consultation with the 
        Secretary of Commerce and the Attorney General; and
          (2) [36] 26 megahertz of that spectrum for commercial 
        use to be assigned by competitive bidding pursuant to 
        section 309(j).

           *       *       *       *       *       *       *


SEC. 342. SPECTRUM INVENTORY.

  (a) Radio Spectrum Inventory.--Not later than 180 days after 
the date of enactment of the Public Safety Spectrum and 
Wireless Innovation Act, and biennially thereafter, the 
Commission, in consultation with the NTIA and the Office of 
Science and Technology Policy, shall carry out the following 
activities:
          (1) Report.--Prepare a report that includes an 
        inventory of each radio spectrum band, from 300 MHz to 
        3.5 GHz, at a minimum, managed by each such agency. 
        Except as provided in subsection (b), the report shall 
        include--
                  (A) the licensee or government user 
                authorized in the band;
                  (B) the total spectrum authorized for each 
                licensee or government user (in percentage 
                terms and in sum) in the band;
                  (C) the approximate number of transmitters, 
                end-user terminals, or receivers, excluding 
                unintended radiators, that have been deployed 
                or authorized, for each licensee or government 
                user, in the band; and
                  (D) if such information is available--
                          (i) the type of transmitters, end-
                        user terminals, or receivers, excluding 
                        unintended radiators, operating in the 
                        band and whether they are space-, air-, 
                        or ground-based;
                          (ii) the type of transmitters, end-
                        user terminals, or receivers, excluding 
                        unintended radiators, authorized to 
                        operate in the band and whether they 
                        are space-, air- or ground-based;
                          (iii) contour maps or other 
                        information that illustrate the 
                        coverage area, receiver performance, 
                        and other parameters relevant to an 
                        assessment of the availability of 
                        spectrum in each band;
                          (iv) the approximate geolocation of 
                        base stations or fixed transmitters;
                          (v) the approximate extent of use, by 
                        geography, of each band of frequencies, 
                        such as the amount and percentage of 
                        time of use, number of end-users, or 
                        other measures as appropriate to the 
                        particular band;
                          (vi) the activities, capabilities, 
                        functions, or missions supported by the 
                        transmitters, end-user terminals, or 
                        receivers; and
                          (vii) the types of unlicensed devices 
                        authorized to operate in the band.
          (2) Public access.--Create a centralized portal or 
        website utilizing data from the Commission and the NTIA 
        to make a centralized inventory of the bands of each 
        agency available to the public via an Internet-
        accessible website.
          (3) Updates.--Make all reasonable efforts to maintain 
        and update the information required under paragraph (2) 
        no less frequently than quarterly to reflect, at a 
        minimum, any transfer or auction of licenses or change 
        in allocation, assignment, or authorization.
          (4) FCC to bear costs.--Notwithstanding any other 
        provision of law, all costs incurred by the Commission 
        and the NTIA in establishing and maintaining the 
        centralized inventory and the centralized portal or 
        website shall be borne exclusively by the Commission.
          (5) Paperwork reduction act exemption.--Any forms 
        prescribed by the Commission under this section, and 
        any information-gathering activities of the Commission 
        under this section, shall not be subject to the 
        provisions of sections 3507 or 3512 of title 44, United 
        States Code (44 U.S.C. 3507, 3512).
  (b) National Security; Classified Information.--
          (1) In general.--If the head of a Federal agency 
        determines that disclosure of information required by 
        subsection (a) would be harmful to the national 
        security of the United States, the agency shall--
                  (A) notify the NTIA of its determination; and
                  (B) provide to the NTIA--
                          (i) the other publicly releasable 
                        information required by subsection (a);
                          (ii) to the maximum extent 
                        practicable, a summary description of 
                        the information with respect to which 
                        the determination was made; and
                          (iii) an annex containing the 
                        information with respect to which the 
                        determination was made.
          (2) Classified information.--If the head of a Federal 
        agency determines that any information required by 
        subsection (a) is classified in accordance with 
        Executive Order 13526 of December 29, 2009, or any 
        successor Executive Order establishing or modifying the 
        uniform system for classifying, safeguarding, and 
        declassifying national security information, the agency 
        shall--
                  (A) notify the NTIA of its determination; and
                  (B) provide to the NTIA--
                          (i) the information required by 
                        subsection (a)(1) that is not 
                        classified;
                          (ii) to the maximum extent 
                        practicable, a summary description of 
                        the information that is classified; and
                          (iii) an annex containing the 
                        information that is classified.
          (3) Annex restriction.--The NTIA shall make an annex 
        described in paragraph (1)(B)(iii) or (2)(B)(iii) 
        available to the Commission. Neither the NTIA nor the 
        Commission may make any such annex available to the 
        public pursuant to subsection (a)(2) or to any 
        unauthorized person through any other means.
  (c) Public Safety Nondisclosure.--
          (1) In general.--If a licensee of non-Federal 
        spectrum determines that public disclosure of certain 
        information held by that licensee and required to be 
        included in the report under subsection (a) would 
        reveal information for which public disclosure would be 
        detrimental to public safety, or that the licensee is 
        otherwise prohibited by law from disclosing, the 
        licensee may petition the Commission for a partial or 
        total exemption from inclusion on the centralized 
        portal or website under subsection (a)(2) and in the 
        reports required under subsection (d).
          (2) Burden.--A licensee seeking an exemption under 
        this subsection bears the burden of justifying the 
        exemption and shall provide clear and convincing 
        evidence to support the requested exemption.
          (3) Information required.--If the Commission grants 
        an exemption under this subsection, the licensee shall 
        provide to the Commission--
                  (A) the publicly releasable information 
                required by subsection (a)(1) for the 
                inventory;
                  (B) to the maximum extent practicable, a 
                summary description, suitable for public 
                release, of the information for which public 
                disclosure would be detrimental to public 
                safety or that the licensee is prohibited by 
                law from disclosing; and
                  (C) an annex, under appropriate cover, 
                containing the information that the Commission 
                has determined should be withheld from public 
                disclosure.
  (d) Informing the Congress.--
          (1) In general.--Except as provided in paragraph (3), 
        the NTIA and the Commission shall submit each report 
        required by subsection (a)(1) to the appropriate 
        committees of Congress.
          (2) Nondisclosure of annexes.--Each such report shall 
        be submitted in unclassified form, but may include 1 or 
        more annexes as provided for bysubsections 
        (b)(1)(B)(iii), (b)(2)(B)(iii), and (c)(3)(C). No 
        Congressional committee may make any such annex 
        available to the public or to any unauthorized person.
          (3) Classified annexes.--If a report includes a 
        classified annex as provided for by subsection 
        (b)(2)(B)(iii), the NTIA and the Commission shall--
                  (A) submit the classified annex only to the 
                appropriate committees of Congress with primary 
                oversight jurisdiction for the user agencies or 
                licensees concerned; and
                  (B) provide notice of the submission to the 
                other appropriate committees of Congress.
  (e) Definitions.--In this section:
          (1) Appropriate committees of Congress.--The term 
        ``appropriate committees of Congress'' means the 
        Committee on Commerce, Science, and Transportation of 
        the Senate, the Committee on Energy and Commerce of the 
        House of Representatives, and any other congressional 
        committee with primary oversight jurisdiction for the 
        user agencies or licensees concerned.
          (2) NTIA.--The term ``NTIA'' means the National 
        Telecommunications and Information Administration.

NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION ORGANIZATION 
                                  ACT

SEC. 103. ESTABLISHMENT; ASSIGNED FUNCTIONS.

                            [47 U.S.C. 902]

  (a) Establishment.--
          (1) Administration.--There shall be within the 
        Department of Commerce an administration to be known as 
        the National Telecommunications and Information 
        Administration.
          (2) Head of administration.--The head of the NTIA 
        shall be an Assistant Secretary of Commerce for 
        Communications and Information, who shall be appointed 
        by the President, by and with the advice and consent of 
        the Senate.
  (b) Assigned Functions.--
          (1) In general.--Subject to section 105(d), the 
        Secretary shall assign to the Assistant Secretary and 
        the NTIA responsibility for the performance of the 
        Secretary's communications and information functions.
          (2) Communications and information functions.--
        Subject to section 105(d), the functions to be assigned 
        by the Secretary under paragraph (1) include (but are 
        not limited to) the following functions transferred to 
        the Secretary by Reorganization Plan Number 1 of 1977 
        and Executive Order 12046:
                  (A) The authority delegated by the President 
                to the Secretary to assign frequencies to radio 
                stations or classes of radio stations belonging 
                to and operated by the United States, including 
                the authority to amend, modify, or revoke such 
                assignments, but not including the authority to 
                make final disposition of appeals from 
                frequency assignments.
                  (B) The responsibility to promote the best 
                possible and most efficient use of 
                electromagnetic spectrum resources across the 
                Federal Government, subject to and consistent 
                with the needs and missions of Federal 
                agencies.
                  [(B)] (C) The authority to authorize a 
                foreign government to construct and operate a 
                radio station at the seat of Government of the 
                United States, but only upon recommendation of 
                the Secretary of State and after consultation 
                with the Attorney General and the Chairman of 
                the Commission.
                  [(C)] (D) Functions relating to the 
                communications satellite system, including 
                authority vested in the President by section 
                201(a) of the Communications Satellite Act of 
                1962 (47 U.S.C. 721(a)) and delegated to the 
                Secretary under Executive Order 12046, to--
                          (i) aid in the planning and 
                        development of the commercial 
                        communications satellite system and the 
                        execution of a national program for the 
                        operation of such a system;
                          (ii) conduct a continuous review of 
                        all phases of the development and 
                        operation of such system, including the 
                        activities of the Corporation;
                          (iii) coordinate, in consultation 
                        with the Secretary of State, the 
                        activities of governmental agencies 
                        with responsibilities in the field of 
                        telecommunications, so as to ensure 
                        that there is full and effective 
                        compliance at all times with the 
                        policies set forth in the 
                        Communications Satellite Act of 1962;
                          (iv) make recommendations to the 
                        President and others as appropriate, 
                        with respect to steps necessary to 
                        ensure the availability and appropriate 
                        utilization of the communications 
                        satellite system for general 
                        governmental purposes in consonance 
                        with section 201(a)(6) of the 
                        Communications Satellite Act of 1962 
                        (47 U.S.C. 721(a)(6));
                          (v) help attain coordinated and 
                        efficient use of the electromagnetic 
                        spectrum and the technical 
                        compatibility of the communications 
                        satellite system with existing 
                        communications facilities both in the 
                        United States and abroad;
                          (vi) assist in the preparation of 
                        Presidential action documents for 
                        consideration by the President as may 
                        be appropriate under section 201(a) of 
                        the Communications Satellite Act of 
                        1962 (47 U.S.C. 721(a)), make necessary 
                        recommendations to the President in 
                        connection therewith, and keep the 
                        President informed with respect to the 
                        carrying out of the Communications 
                        Satellite Act of 1962; and
                          (vii) serve as the chief point of 
                        liaison between the President and the 
                        Corporation.
                  [(D)] (E) The authority to serve as the 
                President's principal adviser on 
                telecommunications policies pertaining to the 
                Nation's economic and technological advancement 
                and to the regulation of the telecommunications 
                industry.
                  [(E)] (F) The authority to advise the 
                Director of the Office of Management and Budget 
                on the development of policies relating to the 
                procurement and management of Federal 
                telecommunications systems.
                  [(F)] (G) The authority to conduct studies 
                and evaluations concerning telecommunications 
                research and development and concerning the 
                initiation, improvement, expansion, testing, 
                operation, and use of Federal 
                telecommunications systems and advising 
                agencies of the results of such studies and 
                evaluations.
                  [(G)] (H) Functions which involve--
                          (i) developing and setting forth, in 
                        coordination with the Secretary of 
                        State and other interested agencies, 
                        plans, policies, and programs which 
                        relate to international 
                        telecommunications issues, conferences, 
                        and negotiations;
                          (ii) coordinating economic, 
                        technical, operational, and related 
                        preparations for United States 
                        participation in international 
                        telecommunications conferences and 
                        negotiations; and
                          (iii) providing advice and assistance 
                        to the Secretary of State on 
                        international telecommunications 
                        policies to strengthen the position and 
                        serve the best interests of the United 
                        States in support of the Secretary of 
                        State's responsibility for the conduct 
                        of foreign affairs.
                  [(H)] (I) The authority to provide for the 
                coordination of the telecommunications 
                activities of the executive branch and assist 
                in the formulation of policies and standards 
                for those activities, including (but not 
                limited to) considerations of interoperability, 
                privacy, security, spectrum use, and emergency 
                readiness.
                  [(I)] (J) The authority to develop and set 
                forth telecommunications policies pertaining to 
                the Nation's economic and technological 
                advancement and to the regulation of the 
                telecommunications industry.
                  [(J)] (K) The responsibility to ensure that 
                the views of the executive branch on 
                telecommunications matters are effectively 
                presented to the Commission and, in 
                coordination with the Director of the Office of 
                Management and Budget, to the Congress.
                  [(K)] (L) The authority to establish policies 
                concerning spectrum assignments and use by 
                radio stations belonging to and operated by the 
                United States.
                  [(L)] (M) Functions which involve--
                          (i) developing, in cooperation with 
                        the Commission, a comprehensive long-
                        range plan for improved management of 
                        all electromagnetic spectrum resources;
                          (ii) performing analysis, 
                        engineering, and administrative 
                        functions, including the maintenance of 
                        necessary files and data bases, as 
                        necessary for the performance of 
                        assigned functions for the management 
                        of electromagnetic spectrum resources;
                          (iii) conducting research and 
                        analysis of electromagnetic 
                        propagation, radio systems 
                        characteristics, and operating 
                        techniques affecting the utilization of 
                        the electromagnetic spectrum in 
                        coordination with specialized, related 
                        research and analysis performed by 
                        other Federal agencies in their areas 
                        of responsibility; and
                          (iv) conducting research and analysis 
                        in the general field of 
                        telecommunications sciences in support 
                        of assigned functions and in support of 
                        other Government agencies.
                  [(M)] (N) The authority to conduct studies 
                and make recommendations concerning the impact 
                of the convergence of computer and 
                communications technology.
                  [(N)] (O) The authority to coordinate Federal 
                telecommunications assistance to State and 
                local governments.
                  [(O)] (P) The authority to conduct and 
                coordinate economic and technical analyses of 
                telecommunications policies, activities, and 
                opportunities in support of assigned functions.
                  [(P)] (Q) The authority to contract for 
                studies and reports relating to any aspect of 
                assigned functions.
                  [(Q)] (R) The authority to participate, as 
                appropriate, in evaluating the capability of 
                telecommunications resources, in recommending 
                remedial actions, and in developing policy 
                options.
                  [(R)] (S) The authority to participate with 
                the National Security Council and the Director 
                of the Office of Science and Technology Policy 
                as they carry out their responsibilities under 
                sections 4-1, 4-2, and 4-3 of Executive Order 
                12046, with respect to emergency functions, the 
                national communication system, and 
                telecommunications planning functions.
                  [(S)] (T) The authority to establish 
                coordinating committees pursuant to section 10 
                of Executive Order 11556.
                  [(T)] (U) The authority to establish, as 
                permitted by law, such interagency committees 
                and working groups composed of representatives 
                of interested agencies and consulting with such 
                departments and agencies as may be necessary 
                for the effective performance of assigned 
                functions.
          (3) Additional communications and information 
        functions.--In addition to the functions described in 
        paragraph (2), the Secretary under paragraph (1)--
                  (A) may assign to the NTIA the performance of 
                functions under section 504(a) of the 
                Communications Satellite Act of 1962 (47 U.S.C. 
                753(a));
                  (B) shall assign to the NTIA the 
                administration of the Public Telecommunications 
                Facilities Program under sections 390 through 
                393 of the Communications Act of 1934 (47 
                U.S.C. 390-393), and the National Endowment for 
                Children's Educational Television under section 
                394 of the Communications Act of 1934 (47 
                U.S.C. 394); and
                  (C) shall assign to the NTIA responsibility 
                for providing for the establishment, and 
                overseeing operation, of a second-level 
                Internet domain within the United States 
                country code domain in accordance with section 
                157.

SEC. 113. IDENTIFICATION OF REALLOCABLE FREQUENCIES.

[47 U.S.C. 923]

           *       *       *       *       *       *       *


  (g) Relocation of Federal Government Stations.--
          [(1) Eligible federal entities.--Any Federal entity 
        that operates a Federal Government station assigned to 
        a band of frequencies specified in paragraph (2) and 
        that incurs relocation costs because of the 
        reallocation of frequencies from Federal use to non-
        Federal use shall receive payment for such costs from 
        the Spectrum Relocation Fund, in accordance with 
        section 118 of this Act. For purposes of this 
        paragraph, Federal power agencies exempted under 
        subsection (c)(4) that choose to relocate from the 
        frequencies identified for reallocation pursuant to 
        subsection (a), are eligible to receive payment under 
        this paragraph.]
          (1) Eligible federal entities.--Any Federal entity 
        that operates a Federal Government station authorized 
        to use a band of frequencies specified in paragraph (2) 
        and that incurs relocation costs because of planning 
        for a potential auction of spectrum frequencies, a 
        planned auction of spectrum frequencies, or the 
        reallocation of spectrum frequencies from Federal use 
        to exclusive non-Federal use, or shared Federal and 
        non-Federal use shall receive payment for such costs 
        from the Spectrum Relocation Fund, in accordance with 
        section 118 of this Act. For purposes of this 
        paragraph, Federal power agencies exempted under 
        subsection (c)(4) that choose to relocate from the 
        frequencies identified for reallocation pursuant to 
        subsection (a), are eligible to receive payment under 
        this paragraph.
          (2) Eligible frequencies.--The bands of eligible 
        frequencies for purposes of this section are as 
        follows:
                  (A) the 216-220 megahertz band, the 1432-1435 
                megahertz band, the 1710-1755 megahertz band, 
                and the 2385-2390 megahertz band of 
                frequencies; and
                  [(B) any other band of frequencies 
                reallocated from Federal use to non-Federal use 
                after January 1, 2003, that is assigned by 
                competitive bidding pursuant to section 309(j) 
                of the Communications Act of 1934 (47 U.S.C. 
                309(j)), except for bands of frequencies 
                previously identified by the National 
                Telecommunications and Information 
                Administration in the Spectrum Reallocation 
                Final Report, NTIA Special Publication 95-32 
                (1995).]
                  (B) any other band of frequencies reallocated 
                from Federal use to non-Federal or shared use, 
                whether for licensed or unlicensed use, after 
                January 1, 2003, that is assigned--
                          (i) by competitive bidding pursuant 
                        to section 309(j) of the Communications 
                        Act of 1934 (47 U.S.C. 309(j)); or
                          (ii) as a result of an Act of 
                        Congress or any other administrative or 
                        executive direction.
          [(3) Definition of relocation costs.--For purposes of 
        this subsection, the term "relocation costs" means the 
        costs incurred by a Federal entity to achieve 
        comparable capability of systems, regardless of whether 
        that capability is achieved by relocating to a new 
        frequency assignment or by utilizing an alternative 
        technology. Such costs include--
                  [(A) the costs of any modification or 
                replacement of equipment, software, facilities, 
                operating manuals, training costs, or 
                regulations that are attributable to 
                relocation;
                  [(B) the costs of all engineering, equipment, 
                software, site acquisition and construction 
                costs, as well as any legitimate and prudent 
                transaction expense, including outside 
                consultants, and reasonable additional costs 
                incurred by the Federal entity that are 
                attributable to relocation, including increased 
                recurring costs associated with the replacement 
                facilities;
                  [(C) the costs of engineering studies, 
                economic analyses, or other expenses reasonably 
                incurred in calculating the estimated 
                relocation costs that are provided to the 
                Commission pursuant to paragraph (4) of this 
                subsection;
                  [(D) the one-time costs of any modification 
                of equipment reasonably necessary to 
                accommodate commercial use of such frequencies 
                prior to the termination of the Federal 
                entity's primary allocation or protected 
                status, when the eligible frequencies as 
                defined in paragraph (2) of this subsection are 
                made available for private sector uses by 
                competitive bidding and a Federal entity 
                retains primary allocation or protected status 
                in those frequencies for a period of time after 
                the completion of the competitive bidding 
                process; and
                  [(E) the costs associated with the 
                accelerated replacement of systems and 
                equipment if such acceleration is necessary to 
                ensure the timely relocation of systems to a 
                new frequency assignment.]
          (3) Definition of relocation and sharing costs.--For 
        purposes of this subsection, the terms ``relocation 
        costs'' and ``sharing costs'' mean the costs incurred 
        by a Federal entity to plan for a potential or planned 
        auction or sharing of spectrum frequencies to achieve 
        comparable capability of systems, regardless of whether 
        that capability is achieved by relocating to a new 
        frequency assignment, relocating a Federal Government 
        station to a different geographic location, modifying 
        Federal Government equipment to mitigate interference 
        or use less spectrum, in terms of bandwidth, geography, 
        or time, and thereby permitting spectrum sharing 
        (including sharing among relocated Federal entities and 
        incumbents to make spectrum available for non-Federal 
        use) or relocation, or by utilizing an alternative 
        technology. Comparable capability of systems includes 
        the acquisition of state-of-the art replacement systems 
        intended to meet comparable operational scope, which 
        may include incidental increases in functionality, 
        including those necessary to achieve security, 
        reliability, and resiliency. Such costs include--
                  (A) the costs of any modification or 
                replacement of equipment, spares, associated 
                ancillary equipment, software, facilities, 
                operating manuals, training costs, or 
                regulations that are attributable to relocation 
                or sharing;
                  (B) the costs of all engineering, equipment, 
                software, site acquisition, and construction 
                costs, as well as any legitimate and prudent 
                transaction expense, including term-limited 
                Federal civil servant and contractor staff 
                necessary to carry out the relocation 
                activities of an eligible Federal entity, and 
                reasonable additional costs incurred by the 
                Federal entity that are attributable to 
                relocation or sharing, including increased 
                recurring costs associated with the replacement 
                of facilities;
                  (C) the costs of research, engineering 
                studies, economic analyses, or other expenses 
                reasonably incurred in connection with--
                          (i) calculating the estimated 
                        relocation costs that are provided to 
                        the Commission pursuant to paragraph 
                        (4) of this subsection, or in 
                        calculating the estimated sharing 
                        costs;
                          (ii) determining the technical or 
                        operational feasibility of relocation 
                        to 1 or more potential relocation 
                        bands; or
                          (iii) planning for or managing a 
                        relocation or sharing project 
                        (including spectrum coordination with 
                        auction winners) or potential 
                        relocation or sharing project;
                  (D) the one-time costs of any modification of 
                equipment reasonably necessary to accommodate 
                commercial use of shared frequencies or, in the 
                case of frequencies reallocated to exclusive 
                commercial use, prior to the termination of the 
                Federal entity's primary allocation or 
                protected status, when the eligible frequencies 
                as defined in paragraph (2) of this subsection 
                are made available for private sector uses by 
                competitive bidding and a Federal entity 
                retains primary allocation or protected status 
                in those frequencies for a period of time after 
                the completion of the competitive bidding 
                process;
                  (E) the costs associated with the accelerated 
                replacement of systems and equipment if such 
                acceleration is necessary to ensure the timely 
                relocation of systems to a new frequency 
                assignment or the timely accommodation of 
                sharing of Federal frequencies; and
                  (F) the costs of the use of commercial 
                systems (including systems not utilizing 
                spectrum) to replace Federal systems 
                discontinued or relocated pursuant to this Act, 
                including lease (including lease of land), 
                subscription, and equipment costs over an 
                appropriate period, such as the anticipated 
                life of an equivalent Federal system or other 
                period determined by the Director of the Office 
                of Management and Budget.
          (4) Notice to Commission of estimated relocation 
        costs.--
                  (A) The Commission shall notify the NTIA at 
                least 18 months prior to the commencement of 
                any auction of eligible frequencies defined in 
                paragraph (2). At least 6 months prior to the 
                commencement of any such auction, the NTIA, on 
                behalf of the Federal entities and after review 
                by the Office of Management and Budget, shall 
                notify the Commission of estimated relocation 
                costs and timelines for such relocation.
                  (B) Upon timely request of a Federal entity, 
                the NTIA shall provide such entity with 
                information regarding an alternative frequency 
                assignment or assignments to which their 
                radiocommunications operations could be 
                relocated for purposes of calculating the 
                estimated relocation costs and timelines to be 
                submitted to the Commission pursuant to 
                subparagraph (A).
                  (C) To the extent practicable and consistent 
                with national security considerations, the NTIA 
                shall provide the information required by 
                subparagraphs (A) and (B) by the geographic 
                location of the Federal entities' facilities or 
                systems and the frequency bands used by such 
                facilities or systems.
          (5) Notice to congressional committees and GAO.--The 
        NTIA shall, at the time of providing an initial 
        estimate of relocation costs to the Commission under 
        paragraph (4)(A), submit to [the] Committees on 
        Appropriations and Energy and Commerce of the House of 
        Representatives for approval, to the Committees on 
        Appropriations and Commerce, Science, and 
        Transportation of the Senate for approval, and to the 
        Comptroller General a copy of such estimate and the 
        timelines for relocation. Unless disapproved within 30 
        days, the estimate shall be approved. If disapproved, 
        the NTIA may resubmit a revised initial estimate.
          (6) Implementation of procedures.--The NTIA shall 
        take such actions as necessary to ensure the timely 
        relocation of Federal entities' spectrum-related 
        operations from frequencies defined in paragraph (2) to 
        frequencies or facilities of comparable capability. 
        Upon a finding by the NTIA that a Federal entity has 
        achieved comparable capability of systems by relocating 
        to a new frequency assignment or by utilizing an 
        alternative technology, the NTIA shall terminate the 
        entity's authorization and notify the Commission that 
        the entity's relocation has been completed. The NTIA 
        shall also terminate such entity's authorization if the 
        NTIA determines that the entity has unreasonably failed 
        to comply with the timeline for relocation submitted by 
        the Director of the Office of Management and Budget 
        under section 118(d)(2)(B).
          (7) Spectrum sharing.--A Federal entity is permitted 
        to allow access to its frequency assignments by a non-
        Federal entity upon approval of NTIA, in consultation 
        with the Director of the Office of Management and 
        Budget. Such non-Federal entities shall comply with all 
        applicable rules of the Commission and the NTIA, 
        including any regulations promulgated pursuant to this 
        section. Any remuneration associated with such access 
        shall be deposited into the Spectrum Relocation Fund 
        established under section 118. A Federal entity that 
        incurs costs as a result of such access is eligible for 
        payment from the Fund for the purposes specified in 
        paragraph (3) of this section. The revenue associated 
        with such access shall be at least 110 percent of the 
        estimated Federal costs.

           *       *       *       *       *       *       *


SEC. 118. SPECTRUM RELOCATION FUND.

                            [47 U.S.C. 928]

  (a) Establishment of Spectrum Relocation Fund.--There is 
established on the books of the Treasury a separate fund to be 
known as the ``Spectrum Relocation Fund'' (in this section 
referred to as the ``Fund''), which shall be administered by 
the Office of Management and Budget (in this section referred 
to as ``OMB''), in consultation with the NTIA.
  (b) Crediting of Receipts.--The Fund shall be credited with 
the amounts specified in section 309(j)(8)(D) of the 
Communications Act of 1934 (47 U.S.C. 309(j)(8)(D)) and any 
payments made by non-Federal entities for access to Federal 
spectrum pursuant to section 113(g)(7) (47 U.S.C. 113(g)(7)).
  [(c) Used to Pay Relocation Costs.--The amounts in the Fund 
from auctions of eligible frequencies are authorized to be used 
to pay relocation costs, as defined in section 113(g)(3) of 
this Act, of an eligible Federal entity incurring such costs 
with respect to relocation from those frequencies.]
  (c) Use of Funds.--
          (1) Funds from auctions.--The amounts in the Fund 
        from auctions of eligible frequencies are authorized to 
        be used to pay relocation costs, as such costs are 
        defined in section 113(g)(3), of an eligible Federal 
        entity incurring such costs with respect to relocation 
        from any eligible frequency.
          (2) Funds from payments by non-federal entities.--The 
        amounts in the Fund from payments by non-Federal 
        entities for access to Federal spectrum are authorized 
        to be used to pay the sharing costs, as such costs are 
        defined in section 113(g)(3), of an eligible Federal 
        entity incurring such costs.
          (3) Transfer of funds.--
                  (A) In general.--Subject to subparagraph (B), 
                the Director of OMB may transfer at any time 
                (including prior to any auction or contemplated 
                auction, or sharing initiative) such sums as 
                may be available in the Fund to an eligible 
                Federal entity to pay eligible relocation or 
                sharing costs related to pre-auction estimates 
                or research, as such costs are described in 
                section 113(g)(3)(C).
                  (B) Notification.--No funds may be 
                transferred pursuant to subparagraph (A) unless 
                the notification provided under subsection 
                (d)(2)(B) of this section includes a 
                certification from the Director of OMB that--
                          (i) funds transferred before an 
                        auction will likely allow for a timely 
                        relocation, thereby increasing net 
                        expected auction proceeds by an amount 
                        equal to or greater than the time value 
                        of the amount of funds transferred; and
                          (ii) the auction is intended to occur 
                        within 5 years of transfer of funds.
                  (C) Applicability.--
                          (i) Prior costs incurred.--The 
                        Director of OMB may transfer up to 
                        $10,000,000 to eligible Federal 
                        entities for eligible relocation or 
                        sharing costs related to pre-auction 
                        estimates or research, as such costs 
                        are described in section 113(g)(3)(C), 
                        for costs incurred prior to the date of 
                        the enactment of the Public Safety 
                        Spectrum and Wireless Innovation Act, 
                        but after June 28th, 2010.
                          (ii) Supplement not supplant.--Any 
                        amounts transferred by the Director of 
                        OMB pursuant to clause (i) shall be in 
                        addition to any amounts that the 
                        Director of OMB may transfer after the 
                        date of the enactment of the Public 
                        Safety Spectrum and Wireless Innovation 
                        Act.
  (d) Fund Availability.--
          (1) Appropriation.--There are hereby appropriated 
        from the Fund such sums as are required to pay the 
        relocation and sharing costs specified in subsection 
        (c).
          (2) Transfer conditions.--None of the funds provided 
        under this subsection may be transferred to any 
        eligible Federal entity--
                  (A) unless the Director of OMB has 
                determined, in consultation with the NTIA, the 
                appropriateness of such costs and the timeline 
                for relocation; and
                  (B) until 30 days after the Director of OMB 
                has submitted to the Committees on 
                Appropriations and Energy and Commerce of the 
                House of Representatives for approval, to the 
                Committees on Appropriations and Commerce, 
                Science, and Transportation of the Senate for 
                approval, and to the Comptroller General a 
                detailed plan describing specifically how the 
                sums transferred from the Fund will be used to 
                pay relocation and sharing costs in accordance 
                with such subsection and the timeline for such 
                relocation and sharing.
        Unless disapproved within 30 days, the amounts in the 
        Fund shall be available immediately. If the plan is 
        disapproved, the Director may resubmit a revised plan.
          [(3) Reversion of unused funds.--Any auction proceeds 
        in the Fund that are remaining after the payment of the 
        relocation costs that are payable from the Fund shall 
        revert to and be deposited in the general fund of the 
        Treasury not later than 8 years after the date of the 
        deposit of such proceeds to the Fund.]
          (3) Reversion of unused funds.--
                  (A) In general.--Any amounts in the Fund that 
                are remaining after the payment of the 
                relocation and sharing costs that are payable 
                from the Fund shall revert to and be deposited 
                in the General Fund of the Treasury not later 
                than 8 years after the date of the deposit of 
                such proceeds to the Fund, unless within 60 
                days in advance of the reversion of such funds, 
                the Director of OMB, in consultation with the 
                Assistant Secretary for Communications and 
                Information, notifies the appropriate 
                committees of Congress that such funds are 
                needed to complete or to implement current or 
                future relocations or sharing initiatives.
                  (B) Definition.--In this paragraph, the term 
                ``appropriate committees of Congress'' means--
                          (i) the Committee on Appropriations 
                        of the Senate;
                          (ii) the Committee on Commerce, 
                        Science, and Transportation of the 
                        Senate;
                          (iii) the Committee on Appropriations 
                        of the House of Representatives; and
                          (iv) the Committee on Energy and 
                        Commerce of the House of 
                        Representatives.
  (e) Transfer to Eligible Federal Entities.--
          (1) Transfer.--
                  (A) Amounts made available pursuant to 
                subsection (d) shall be transferred to eligible 
                Federal entities, as defined in section 
                113(g)(1) of this Act.
                  (B) An eligible Federal entity may receive 
                more than one such transfer, but if the sum of 
                the subsequent transfer or transfers exceeds 10 
                percent of the original transfer--
                          (i) such subsequent transfers are 
                        subject to prior approval by the 
                        Director of OMB as required by 
                        subsection (d)(2)(A);
                          (ii) the notice to the committees 
                        containing the plan required by 
                        subsection (d)(2)(B) shall be not less 
                        than 45 days prior to the date of the 
                        transfer that causes such excess above 
                        10 percent; and
                          (iii) such notice shall include, in 
                        addition to such plan, an explanation 
                        of need for such subsequent transfer or 
                        transfers.
                  (C) Such transferred amounts shall be 
                credited to the appropriations account of the 
                eligible Federal entity which has incurred, or 
                will incur, such costs, and shall, subject to 
                paragraph (2), remain available until expended.
          (2) Retransfer to fund.--An eligible Federal entity 
        that has received such amounts shall report its 
        expenditures to OMB and shall transfer any amounts in 
        excess of actual relocation and sharing costs back to 
        the Fund immediately after the NTIA has notified the 
        Commission that the entity's relocation and sharing is 
        complete, or has determined that such entity has 
        unreasonably failed to complete such relocation and 
        sharing in accordance with the timeline required by 
        subsection (d)(2)(A).
  (f) Additional Payments from the Fund.--Notwithstanding 
subsections (c) through (e), after the date of the enactment of 
the Public Safety Spectrum and Wireless Innovation Act, and 
following the credit of any amounts specified in subsection 
(b), there are hereby appropriated from the Fund and available 
to the Director of the OMB up to 10 percent of the amounts 
deposited in the Fund from the auction of licenses for 
frequencies of spectrum vacated by Federal entities, or up to 
10 percent of the amounts deposited in the Fund by non-Federal 
entities for sharing of Federal spectrum. The Director of OMB, 
in consultation with the Assistant Secretary for Communications 
and Information, may use such amounts to pay eligible Federal 
entities for the purpose of encouraging timely access to such 
spectrum, provided that--
          (1) any such payment by the Director of OMB is based 
        on the market value of the spectrum, the timeliness 
        with which the licensee cleared its use of such 
        spectrum, and the need for such spectrum in order for 
        the Federal entity to conduct its essential missions;
          (2) any such payment by the Director of OMB is used 
        to carry out the purposes specified in subparagraphs 
        (A) through (F) of paragraph (3) of subsection 113(g) 
        to achieve enhanced capability for those systems 
        affected by reallocation of Federal spectrum to 
        commercial use, or by sharing of Federal frequencies 
        with non-Federal entities;
          (3) the amount remaining in the Fund after any such 
        payment by the Director is not less than 10 percent of 
        the winning bids in the relevant auction, or is not 
        less than 10 percent of the payments from non-Federal 
        entities in the relevant sharing agreement; and
          (4) any such payment by the Director shall not be 
        made until 30 days after the Director has notified the 
        Committees on Appropriations and Commerce, Science, and 
        Transportation of the Senate, and the Committees on 
        Appropriations and Energy and Commerce of the House of 
        Representatives.

                                  
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