[House Report 116-589]
[From the U.S. Government Publishing Office]

116th Congress }                                            { Report
                        HOUSE OF REPRESENTATIVES
 2d Session    }                                            { 116-589




 November 16, 2020.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed


 Mr. Pallone, from the Committee on Energy and Commerce, submitted the 

                              R E P O R T

                        [To accompany H.R. 6624]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 6624) to support supply chain innovation and 
multilateral security, and for other purposes, having 
considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.


  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................2
III. Committee Hearings...............................................3
 IV. Committee Consideration..........................................3
  V. Committee Votes..................................................3
 VI. Oversight Findings...............................................3
VII. New Budget Authority, Entitlement Authority, and Tax Expenditures4
VIII.Federal Mandates Statement.......................................4

 IX. Statement of General Performance Goals and Objectives............4
  X. Duplication of Federal Programs..................................4
 XI. Committee Cost Estimate..........................................4
XII. Earmarks, Limited Tax Benefits, and Limited Tariff Benefits......4
XIII.Advisory Committee Statement.....................................4

XIV. Applicability to Legislative Branch..............................4
 XV. Section-by-Section Analysis of the Legislation...................5
XVI. Changes in Existing Law Made by the Bill, as Reported............6

                         I. PURPOSE AND SUMMARY

    H.R. 6624, the ``Utilizing Strategic Allied 
Telecommunications Act of 2020'' or the ``USA 
Telecommunications Act'', was introduced by Representatives 
Frank Pallone, Jr. (D-NJ), Greg Walden (R-OR), Doris O. Matsui 
(D-CA), and Brett Guthrie (R-KY). This bill establishes a grant 
program to help secure communications networks in the United 
States through promoting competition in the supply chains of 
Open Radio Access Network (Open RAN) 5G network equipment, 
accelerate deployment of Open Network Equipment, and promote 
the inclusion of security features that enhance the integrity 
and availability of such equipment. The National 
Telecommunications and Information Administration (NTIA) is 
responsible for administering the grant program, including 
establishing the criteria for awarding the grants, and for 
establishing a committee to advise on technological 
developments to inform the grant program and government efforts 
to support Open RAN 5G Networks.


    United States communications service providers rely heavily 
on equipment and services manufactured and made available by 
foreign companies. The increasingly globalized market for 
communications equipment and services has increased competition 
and opened the door to cheaper goods for consumers but poses 
new challenges for the United States, particularly for ensuring 
the security of the communications supply chain.
    In particular, the United States identified individual 
Chinese telecommunications firms, including Huawei Technologies 
Co. Ltd (Huawei) and its affiliates, as posing significant 
threats to U.S. commercial and security interests.\1\ Their 
susceptibility to state influence over business operations 
results in China having ``the means, opportunity, and motive to 
use telecommunications companies for malicious purposes,'' such 
as espionage and cyberattacks.\2\ In April 2018, the U.S.-China 
Economic and Security Review Commission found that the Chinese 
Government has ``invested significant state capital and 
influence'' on state-owned enterprises to strategically place 
these companies in the U.S. telecommunications supply chain.\3\
    \1\Department of Commerce, Department of Commerce Announces the 
Addition of Huawei Technologies Co. Ltd. to the Entity List (May 15, 
2019) (press release).
    \2\House Permanent Select Committee on Intelligence, Investigative 
Report on the US National Security Issues Posed by Chinese 
Telecommunications Companies Huawei and ZTE, 112th Cong. (Oct. 8, 
    \3\U.S.-China Economic Security Review Commission, Supply Chain 
Vulnerabilities from China in US Federal Information and Communications 
Technology (Apr. 2018).
    Several countries around the world have prohibited or 
severely curtailed the use of communications equipment from 
Huawei and other manufacturers of suspect network equipment.\4\ 
To support the development of a competitive market for trusted, 
secure network equipment, a growing movement has focused on 
Open RAN network architecture, which relies primarily on open-
sourced standards and software to operate wireless 
communications networks.\5\ Though now only in a nascent stage, 
Open RAN architecture has the potential to allow a network 
operator to choose network components from various vendors, 
rather than relying on one vendor for its entire network, 
spurring the development of a competitive marketplace for 
secure equipment.\6\
    \4\Reuters, As Britain Bans Huawei, U.S. Pressure Mounts on Europe 
to Follow Suit (July 14, 2020).
    \5\Financial Times, Telecoms Networks Look To Fix Huawei Problem 
With Open Source Software (July 26, 2020).
    Federal investment in the promotion of this technology, as 
is contemplated in H.R. 6624, will assist in the development 
and acceleration of a competitive market and a secure supply 
chain for communications network equipment in the United 

                        III. COMMITTEE HEARINGS

    For the purposes of section 103(i) of H. Res. 6 of the 
116th Congress, the following hearing was used to develop or 
consider H.R. 6624:
    The Subcommittee on Communications and Technology held a 
hearing on September 27, 2019, entitled ``Legislating to Secure 
America's Wireless Future.'' The Subcommittee received 
testimony from the following witnesses:
           John Nettles, President, Pine Belt Wireless
           Harold Feld, Senior Vice President, Public 
           Dean R. Brenner, Senior Vice President, 
        Spectrum Strategy and Tech Policy, Qualcomm 
           Bobbie Stempfley, Managing Director, CERT 
        Division, Software Engineering Institute, Carnegie 
        Mellon University

                      IV. COMMITTEE CONSIDERATION

    Representatives Pallone, Walden, Matsui, and Guthrie 
introduced H.R. 6624 on March 24, 2020, and the bill was 
referred to the Committee on Energy and Commerce. H.R. 6624 was 
then referred to the Subcommittee on Communications and 
Technology on March 25, 2020. A hearing was held prior to its 
introduction on September 27, 2019.
    On July 15, 2020, H.R. 6624 was discharged from further 
consideration by the Subcommittee on Communications and 
Technology as the bill was called up for consideration by the 
full Committee on Energy and Commerce. The full Committee met 
in virtual open markup session on July 15, 2020, pursuant to 
notice, to consider H.R. 6624. No amendments were offered 
during consideration of the bill. Upon conclusion of its 
consideration, the full Committee agreed to a motion on final 
passage offered by Mr. Pallone, Chairman of the committee, to 
order H.R. 6624 reported favorably to the House, without 
amendment, by a voice vote, a quorum being present.

                           V. COMMITTEE VOTES

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list each record vote 
on the motion to report legislation and amendments thereto. The 
Committee advises that there were no record votes taken on H.R. 
6624, including the motion for final passage of the bill.

                         VI. OVERSIGHT FINDINGS

    Pursuant to clause 3(c)(1) of rule XIII and clause 2(b)(1) 
of rule X of the Rules of the House of Representatives, the 
oversight findings and recommendations of the Committee are 
reflected in the descriptive portion of the report.

                          AND TAX EXPENDITURES

    Pursuant to 3(c)(2) of rule XIII of the Rules of the House 
of Representatives, the Committee adopts as its own the 
estimate of new budget authority, entitlement authority, or tax 
expenditures or revenues contained in the cost estimate 
prepared by the Director of the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 
    The Committee has requested but not received from the 
Director of the Congressional Budget Office a statement as to 
whether this bill contains any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.


    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 


    Pursuant to clause 3(c)(4) of rule XIII, the general 
performance goal or objective of this legislation is to provide 
Federal funds to encourage competitiveness in the 
communications equipment supply chain for Open RAN network 
equipment and promote the development and use of secure, 
standards-based, and interoperable Open RAN network equipment.


    Pursuant to clause 3(c)(5) of rule XIII, no provision of 
H.R. 6624 is known to be duplicative of another Federal 
program, including any program that was included in a report to 
Congress pursuant to section 21 of Public Law 111-139 or the 
most recent Catalog of Federal Domestic Assistance.

                      XI. COMMITTEE COST ESTIMATE

    Pursuant to clause 3(d)(1) of rule XIII, the Committee 
adopts as its own the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974.

                            TARIFF BENEFITS

    Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the 
Committee finds that H.R. 6624 contains no earmarks, limited 
tax benefits, or limited tariff benefits.


    One advisory committee within the meaning of section 5(b) 
of the Federal Advisory Committee Act was created by this 


    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.


Section 1. Short title

    Section 1 designates that the short title may be cited as 
the ``Utilizing Strategic Allied Telecommunications Act of 
2020'' or the ``USA Telecommunications Act''.

Sec. 2. Wireless Supply Chain Innovation Grant Program

    Section 2 establishes the Wireless Supply Chain Innovation 
Grant Program (Program) and authorizes an appropriation of 
$750,000,000 in fiscal years 2021 through 2031 for such 
purpose. The section provides the Assistant Secretary of 
Commerce for Communications and Information (Assistant 
Secretary) with authority to administer the Program, and 
requires the Assistant Secretary to, within 18 months, begin 
making grants on a competitive basis to support the development 
and deployment of Open RAN 5G networks throughout the United 
States by: (1) promoting the use of technology, including 
software, hardware, and microprocessing technology, that will 
enhance the competitiveness in the supply chains of Open RAN 5G 
networks; (2) accelerating the deployment of Open Network 
Equipment; (3) promoting the use of Open Network Equipment; (4) 
establishing objective criteria that can be used to determine 
if equipment meets the definition of Open Network Equipment; 
(5) promoting the inclusion of security features that enhance 
the integrity and availability of Open Network Equipment; or 
(6) promoting the application of network function 
virtualization to facilitate the deployment of Open RAN 5G 
networks and a more diverse vendor market. The Assistant 
Secretary, in consultation with the Federal Communications 
Commission (Commission), the Director of the National Institute 
of Standards and Technology (NIST), the Secretary of Homeland 
Security, the Director of the Defense Advanced Research 
Projects Agency (DARPA), and the Director of the Intelligence 
Advanced Research Projects Activity of the Office of the 
Director of National Intelligence (IARPA), is required to 
establish the criteria for the Program.
    Section 2 also requires that the Assistant Secretary submit 
two reports to Congress, an annual report on the grants made 
under the Program and a report within 180 days of enactment 
that includes recommendations on promoting the competitiveness 
and sustainability of trusted Open RAN 5G networks, and 
identifying any additional authorities needed by the Assistant 
Secretary to facilitate the timely adoption of Open Network 

Sec. 3. Advisory Committee

    Section 3 requires the Assistant Secretary to establish an 
Advisory Committee to help inform the direction of the Program 
and the efforts of the Federal Government to promote a more 
secure, diverse, sustainable, and competitive supply chain for 
Open RAN 5G Networks. The Advisory Committee shall be comprised 
of representatives from the Commission, DARPA, IARPA, NIST, the 
Department of State, the National Science Foundation, and the 
Department of Homeland Security.

Sec. 4. Definitions

    Section 4 provides definitions for certain terms used in 
the Act, such as Open Network Equipment and Open RAN 5G 


    There are no changes to existing law made by the bill H.R.