Internet Exchange and Submarine Cable Act of 2020

II Calendar No. 629 116TH CONGRESS 2D SESSION S. 1166 To direct the Assistant Secretary of Commerce for Communications and Information to make grants for the establishment or expansion of inter- net exchange facilities, and for other purposes. IN THE SENATE OF THE UNITED STATES APRIL 11, 2019 Mrs. BLACKBURN (for herself, Ms. BALDWIN, Ms. DUCKWORTH, and Mr. BLUNT) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation DECEMBER 15, 2020 Reported by Mr. WICKER, with an amendment [Strike out all after the enacting clause and insert the part printed in italic] A BILL To direct the Assistant Secretary of Commerce for Commu- nications and Information to make grants for the estab- lishment or expansion of internet exchange facilities, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 01:26 Dec 16, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1166.RS S1166 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 1166 RS SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Internet Exchange Act 2 of 2019’’. 3 SEC. 2. DEFINITIONS. 4 In this Act: 5 (1) ASSISTANT SECRETARY.—The term ‘‘Assist- 6 ant Secretary’’ means the Assistant Secretary of 7 Commerce for Communications and Information. 8 (2) CORE BASED STATISTICAL AREA.—The 9 term ‘‘core based statistical area’’ has the meaning 10 given the term by the Office of Management and 11 Budget in the Notice of Decision entitled ‘‘2010 12 Standards for Delineating Metropolitan and 13 Micropolitan Statistical Areas’’, published in the 14 Federal Register on June 28, 2010 (75 Fed. Reg. 15 37246), or any successor to that Notice. 16 (3) COVERED GRANT.—The term ‘‘covered 17 grant’’ means a grant awarded under section 3(a). 18 (4) INTERNET EXCHANGE FACILITY.—The term 19 ‘‘internet exchange facility’’ means physical infra- 20 structure through which internet service providers 21 and content delivery networks exchange internet 22 traffic between their networks. 23 VerDate Sep 11 2014 01:26 Dec 16, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6401 E:\BILLS\S1166.RS S1166 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 1166 RS SEC. 3. NATIONAL TELECOMMUNICATIONS AND INFORMA- 1 TION ADMINISTRATION GRANTS. 2 (a) GRANTS.—On and after the first day of the first 3 fiscal year beginning after the date on which the Assistant 4 Secretary establishes rules and timelines under subsection 5 (d), the Assistant Secretary shall award grants to entities 6 to acquire real property and necessary equipment to— 7 (1) establish a new internet exchange facility in 8 a core based statistical area in which, at the time 9 the grant is awarded, there are no existing internet 10 exchange facilities; or 11 (2) expand operations at an existing internet 12 exchange facility in a core based statistical area in 13 which, at the time the grant is awarded, there is 14 only 1 internet exchange facility. 15 (b) ELIGIBILITY.—An entity may not receive a cov- 16 ered grant unless the entity certifies to the Assistant Sec- 17 retary that the entity has sufficient interest from third 18 party entities that will use the internet exchange facility 19 to be funded by the grant once the facility is established 20 or operations are expanded, as applicable. 21 (c) FEDERAL SHARE.—The Federal share of the 22 total cost of the establishment of, or expansion of oper- 23 ations at, an internet exchange facility for which a covered 24 grant is awarded may not exceed 50 percent. 25 (d) APPLICATIONS.— 26 VerDate Sep 11 2014 01:26 Dec 16, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6401 E:\BILLS\S1166.RS S1166 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 1166 RS (1) RULES AND TIMELINES.—Not later than 1 1 year after the date of enactment of this Act, the As- 2 sistant Secretary shall establish rules and timelines 3 for applications for covered grants. 4 (2) THIRD PARTY REVIEW.—To prevent fraud 5 in the covered grant program, the Assistant Sec- 6 retary shall enter into a contract with an inde- 7 pendent third party under which the third party re- 8 views an application for a covered grant not later 9 than 60 days after the date on which the application 10 is submitted to ensure that only an entity that is eli- 11 gible for a covered grant receives a covered grant. 12 (e) RULE OF CONSTRUCTION.—Nothing in this sec- 13 tion shall be construed to authorize the Assistant Sec- 14 retary to regulate, issue guidance for, or otherwise inter- 15 fere with the activities at an internet exchange facility. 16 (f) NO ADDITIONAL FUNDS AUTHORIZED.—No addi- 17 tional funds are authorized to be appropriated to carry 18 out this section. This section shall be carried out using 19 amounts otherwise authorized. 20 SEC. 4. USE OF E-RATE AND RURAL HEALTH CARE UNI- 21 VERSAL SERVICE SUPPORT. 22 Section 254 of the Communications Act of 1934 (47 23 U.S.C. 254) is amended by adding at the end the fol- 24 lowing: 25 VerDate Sep 11 2014 01:26 Dec 16, 2020 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6401 E:\BILLS\S1166.RS S1166 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 1166 RS ‘‘(m) USE OF E-RATE AND RURAL HEALTH CARE 1 SUPPORT FOR COSTS RELATING TO INTERNET EX- 2 CHANGE FACILITY CONNECTION.— 3 ‘‘(1) IN GENERAL.—Notwithstanding any other 4 provision of law or regulation, including subpart F 5 or G of part 54 of title 47, Code of Federal Regula- 6 tions (or any successor regulation), a recipient of 7 support under such subpart F or G may receive sup- 8 port under that subpart— 9 ‘‘(A) to contract with a broadband internet 10 service provider to obtain connection to an 11 internet exchange facility; or 12 ‘‘(B) for the costs of maintaining a point 13 of presence at an internet exchange facility. 14 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in 15 this subsection shall be construed to authorize the 16 Commission to regulate, issue guidance for, or other- 17 wise interfere with the activities at an internet ex- 18 change facility. 19 ‘‘(3) INTERNET EXCHANGE FACILITY DE- 20 FINED.—In this subsection, the term ‘internet ex- 21 change facility’ means physical infrastructure 22 through which internet service providers and content 23 delivery networks exchange internet traffic between 24 their networks.’’. 25 VerDate Sep 11 2014 01:26 Dec 16, 2020 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6401 E:\BILLS\S1166.RS S1166 pamtmann on DSKBC07HB2PROD with BILLS 6 •S 1166 RS SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Internet Exchange and 2 Submarine Cable Act of 2020’’. 3 SEC. 2. DEFINITIONS. 4 In this Act: 5 (1) ASSISTANT SECRETARY.—The term ‘‘Assist- 6 ant Secretary’’ means the Assistant Secretary of Com- 7 merce for Communications and Information. 8 (2) CORE BASED STATISTICAL AREA.—The term 9 ‘‘core based statistical area’’ has the meaning given 10 the term by the Office of Management and Budget in 11 the Notice of Decision entitled ‘‘2010 Standards for 12 Delineating Metropolitan and Micropolitan Statis- 13 tical Areas’’, published in the Federal Register on 14 June 28, 2010 (75 Fed. Reg. 37246), or any successor 15 to that Notice. 16 (3) COVERED GRANT.—The term ‘‘covered grant’’ 17 means a grant awarded under section 3(a). 18 (4) INDIAN TRIBE.—The term ‘‘Indian Tribe’’— 19 (A) has the meaning given the term in sec- 20 tion 4 of the Indian Self-Determination and 21 Education Assistance Act (25 U.S.C. 5304); and 22 (B) includes a Native Hawaiian organiza- 23 tion, as that term is defined in section 6207 of 24 the Native Hawaiian Education Act (20 U.S.C. 25 7517). 26 VerDate Sep 11 2014 01:26 Dec 16, 2020 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6203 E:\BILLS\S1166.RS S1166 pamtmann on DSKBC07HB2PROD with BILLS 7 •S 1166 RS (5) INTERNET EXCHANGE FACILITY.—The term 1 ‘‘internet exchange facility’’ means physical infra- 2 structure through which internet service providers 3 and content delivery networks exchange internet traf- 4 fic between their networks. 5 (6) STATE.—The term ‘‘State’’ has the meaning 6 given the term in section 3 of the Communications 7 Act of 1934 (47 U.S.C. 153). 8 (7) SUBMARINE CABLE LANDING STATION.—The 9 term ‘‘submarine cable landing station’’ means a 10 cable landing station, as that term is used in section 11 1.767(a)(5) of title 47, Code of Federal Regulations 12 (or any successor regulation), that can be utilized to 13 land a submarine cable by an entity that has ob- 14 tained a license under the first section of the Act enti- 15 tled ‘‘An Act relating to the landing and operation of 16 submarine cables in the United States’’, approved 17 May 27, 1921 (47 U.S.C. 34) (commonly known as 18 the ‘‘Cable Landing Licensing Act’’). 19 SEC. 3. INTERNET EXCHANGE FACILITY GRANTS. 20 (a) GRANTS.—Not later than 1 year after the date on 21 which amounts are made available under section 6, the As- 22 sistant Secretary shall award grants to entities to acquire 23 real property and necessary equipment to— 24 VerDate Sep 11 2014 01:26 Dec 16, 2020 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6203 E:\BILLS\S1166.RS S1166 pamtmann on DSKBC07HB2PROD with BILLS 8 •S 1166 RS (1) establish a new internet exchange facility in 1 a core based statistical area in which, at the time the 2 grant is awarded, there are no existing internet ex- 3 change facilities; or 4 (2) expand operations at an existing internet ex- 5 change facility in a core based statistical area in 6 which, at the time the grant is awarded, there is only 7 1 internet exchange facility. 8 (b) ELIGIBILITY.—To be eligible to receive a covered 9 grant, an entity shall— 10 (1) have sufficient interest from third party enti- 11 ties that will use the internet exchange facility to be 12 funded by the grant once the facility is established or 13 operations are expanded, as applicable; 14 (2) have sovereign control over the land or build- 15 ing in which the internet exchange facility is to be 16 housed; 17 (3) provide evidence of direct conduit, duct, and 18 manhole access to public rights-of-way; 19 (4) have a plan to establish security protocols for 20 the internet exchange facility to prevent physical or 21 electronic intrusion from unauthorized users; and 22 (5) provide other information required by the As- 23 sistant Secretary to protect against waste, fraud, or 24 abuse. 25 VerDate Sep 11 2014 01:26 Dec 16, 2020 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6203 E:\BILLS\S1166.RS S1166 pamtmann on DSKBC07HB2PROD with BILLS 9 •S 1166 RS (c) FEDERAL SHARE.—The Federal share of the total 1 cost of the establishment of, or expansion of operations at, 2 an internet exchange facility for which a covered grant is 3 awarded may not exceed 50 percent. 4 (d) GRANT AMOUNT.—The amount of a covered grant 5 may not exceed $3,000,000. 6 (e) APPLICATIONS.— 7 (1) RULES AND TIMELINES.—Not later than 1 8 year after the date of enactment of this Act, the As- 9 sistant Secretary shall establish rules and timelines 10 for applications for— 11 (A) covered grants; and 12 (B) grants under section 4. 13 (2) THIRD PARTY REVIEW.—To prevent fraud in 14 the covered grant program, the Assistant Secretary 15 shall enter into a contract with an independent third 16 party under which the third party reviews an appli- 17 cation for a covered grant not later than 60 days 18 after the date on which the application is submitted 19 to ensure that only an entity that is eligible for a cov- 20 ered grant receives a covered grant. 21 (f) RULE OF CONSTRUCTION.—Nothing in this section 22 shall be construed to authorize the Assistant Secretary to 23 regulate, issue guidance for, or otherwise interfere with the 24 activities at an internet exchange facility. 25 VerDate Sep 11 2014 01:26 Dec 16, 2020 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6203 E:\BILLS\S1166.RS S1166 pamtmann on DSKBC07HB2PROD with BILLS 10 •S 1166 RS SEC. 4. SUBMARINE CABLE LANDING STATION GRANTS. 1 Not later than 1 year after the date on which amounts 2 are made available under section 6, and in accordance with 3 the rules and timelines established under section 3(e)(1), the 4 Assistant Secretary shall award grants to States and In- 5 dian Tribes to build infrastructure and acquire necessary 6 equipment to establish or expand an open-access, carrier- 7 neutral submarine cable landing station that serves a mili- 8 tary facility. 9 SEC. 5. REPORT. 10 Not later than 5 years after the date of enactment of 11 this Act, and annually thereafter for 5 years, the Assistant 12 Secretary shall submit a report on outcomes of grants 13 awarded under this Act to— 14 (1) the Committee on Commerce, Science, and 15 Transportation of the Senate; and 16 (2) the Committee on Energy and Commerce of 17 the House of Representatives. 18 SEC. 6. AUTHORIZATION OF APPROPRIATIONS. 19 (a) IN GENERAL.—There is authorized to be appro- 20 priated $35,000,000 to carry out sections 3 and 4. 21 (b) LIMITATION.—The Assistant Secretary may not 22 use more than 10 percent of the amounts made available 23 under subsection (a) to administer and report on the out- 24 comes of grants awarded under this Act. 25 VerDate Sep 11 2014 01:26 Dec 16, 2020 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6203 E:\BILLS\S1166.RS S1166 pamtmann on DSKBC07HB2PROD with BILLS 11 •S 1166 RS SEC. 7. RETURN OF CERTAIN GRANT AMOUNTS. 1 The Assistant Secretary may require a recipient of a 2 grant awarded under section 3 or 4 to return all or a por- 3 tion of the grant amount if there is evidence of waste, fraud, 4 or abuse of grant funds by the recipient. 5 VerDate Sep 11 2014 01:26 Dec 16, 2020 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6203 E:\BILLS\S1166.RS S1166 pamtmann on DSKBC07HB2PROD with BILLS Calendar No. 629 116TH CONGRESS 2D SESSION S. 1166 A BILL To direct the Assistant Secretary of Commerce for Communications and Information to make grants for the establishment or expansion of internet ex- change facilities, and for other purposes. DECEMBER 15, 2020 Reported with an amendment VerDate Sep 11 2014 01:26 Dec 16, 2020 Jkt 019200 PO 00000 Frm 00012 Fmt 6651 Sfmt 6651 E:\BILLS\S1166.RS S1166 pamtmann on DSKBC07HB2PROD with BILLS