Rural Connectivity Advancement Program Act of 2020

II 116TH CONGRESS 2D SESSION S. 4015 To provide funds to assess the availability, accelerate the deployment, and improve the sustainability of advanced communications services and com- munications infrastructure in rural America, and for other purposes. IN THE SENATE OF THE UNITED STATES JUNE 18, 2020 Mr. THUNE introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation A BILL To provide funds to assess the availability, accelerate the deployment, and improve the sustainability of advanced communications services and communications infrastruc- ture in rural America, 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 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Rural Connectivity Ad- 4 vancement Program Act of 2020’’. 5 VerDate Sep 11 2014 22:19 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4015.IS S4015 pbinns on DSKJLVW7X2PROD with BILLS 2 •S 4015 IS SEC. 2. DEPOSIT OF SPECTRUM AUCTION PROCEEDS IN 1 RURAL BROADBAND ASSESSMENT AND DE- 2 PLOYMENT FUND. 3 Section 309(j)(8) of the Communications Act of 1934 4 (47 U.S.C. 309(j)(8)) is amended— 5 (1) in subparagraph (A), by striking ‘‘and (G)’’ 6 and inserting ‘‘(G), and (H)’’; and 7 (2) by adding at the end the following: 8 ‘‘(H) ASSESSMENT AND DEPLOYMENT SET- 9 ASIDE.— 10 ‘‘(i) IN GENERAL.—Notwithstanding 11 subparagraph (A), and except as provided 12 in subparagraphs (B), (D), (E), (F), and 13 (G), 10 percent of the net proceeds from 14 each use of a system of competitive bidding 15 under this subsection completed before 16 September 30, 2022, shall be deposited in 17 the Rural Broadband Assessment and De- 18 ployment Fund established under section 3 19 of the Rural Connectivity Advancement 20 Program Act of 2020. 21 ‘‘(ii) NET PROCEEDS DEFINED.—For 22 purposes of this subparagraph, the term 23 ‘net proceeds’, with respect to the use of a 24 system of competitive bidding, means the 25 VerDate Sep 11 2014 22:19 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4015.IS S4015 pbinns on DSKJLVW7X2PROD with BILLS 3 •S 4015 IS proceeds remaining after subtracting all 1 auction-related expenditures, including— 2 ‘‘(I) relocation payments, includ- 3 ing accelerated relocation payments; 4 ‘‘(II) payments to incumbent li- 5 censees for the relinquishment of all 6 or a portion of the spectrum usage 7 rights of those licensees; 8 ‘‘(III) costs associated with the 9 reallocation of spectrum, whether on 10 an exclusive or shared use basis; 11 ‘‘(IV) relocation or sharing costs, 12 including for planning for relocation 13 or sharing; and 14 ‘‘(V) bidding credits.’’. 15 SEC. 3. DIRECTION AND USE OF RURAL BROADBAND AS- 16 SESSMENT AND DEPLOYMENT FUND PRO- 17 CEEDS. 18 (a) DEFINITIONS.—In this subsection— 19 (1) the term ‘‘Commission’’ means the Federal 20 Communications Commission; and 21 (2) the term ‘‘high-cost programs’’ means— 22 (A) the program for Universal Service 23 Support for High-Cost Areas set forth under 24 VerDate Sep 11 2014 22:19 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4015.IS S4015 pbinns on DSKJLVW7X2PROD with BILLS 4 •S 4015 IS subpart D of part 54 of title 47, Code of Fed- 1 eral Regulations, or any successor regulations; 2 (B) the Rural Digital Opportunity Fund 3 set forth under subpart J of part 54 of title 47, 4 Code of Federal Regulations, or any successor 5 regulations; 6 (C) the Interstate Common Line Support 7 Mechanism for Rate-of-Return Carriers set 8 forth under subpart K of part 54 of title 47, 9 Code of Federal Regulations, or any successor 10 regulations; 11 (D) the Mobility Fund set forth under sub- 12 part L of part 54 of title 47, Code of Federal 13 Regulations, or any successor regulations; 14 (E) the High Cost Loop Support for Rate- 15 of-Return Carriers program set forth under 16 subpart M of part 54 of title 47, Code of Fed- 17 eral Regulations, or any successor regulations; 18 (F) the Uniendo a Puerto Rico Fund and 19 the Connect USVI Fund set forth under sub- 20 part O of part 54 of title 47, Code of Federal 21 Regulations, or any successor regulations; and 22 (G) the Rural Broadband Experiments, as 23 established by the Commission under part 54 of 24 title 47, Code of Federal Regulations. 25 VerDate Sep 11 2014 22:19 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4015.IS S4015 pbinns on DSKJLVW7X2PROD with BILLS 5 •S 4015 IS (b) ESTABLISHMENT OF FUND.—There is estab- 1 lished in the Treasury of the United States a fund to be 2 known as the ‘‘Rural Broadband Assessment and Deploy- 3 ment Fund’’. 4 (c) BORROWING AUTHORITY.— 5 (1) IN GENERAL.—Beginning on the date on 6 which the Commission announces the results of an 7 auction under section 309(j) of the Communications 8 Act of 1934 (47 U.S.C. 309(j)), the Commission 9 may borrow from the Treasury of the United States 10 an amount not to exceed the amount that will be de- 11 posited in the Rural Broadband Assessment and De- 12 ployment Fund under paragraph (8)(H) of that sec- 13 tion (as added by section 2 of this Act) as a result 14 of that auction. 15 (2) REIMBURSEMENT.—The Commission shall 16 reimburse the general fund of the Treasury, without 17 interest, for any amounts borrowed under paragraph 18 (1) as funds are deposited into the Rural Broadband 19 Assessment and Deployment Fund. 20 (d) AVAILABILITY OF AMOUNTS.—Any amounts bor- 21 rowed under subsection (c)(1) and any amounts in the 22 Rural Broadband Assessment and Deployment Fund that 23 are not necessary for reimbursement of the general fund 24 of the Treasury for such borrowed amounts shall be avail- 25 VerDate Sep 11 2014 22:19 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S4015.IS S4015 pbinns on DSKJLVW7X2PROD with BILLS 6 •S 4015 IS able to the Commission for use in accordance with sub- 1 section (e). 2 (e) USE OF AMOUNTS.— 3 (1) ESTABLISHMENT OF PROGRAM OR PRO- 4 GRAMS.—The Commission shall use the amounts 5 made available under subsection (d) to establish 1 or 6 more programs that are separate from, but are co- 7 ordinated with and complement, the high-cost pro- 8 grams to address— 9 (A) gaps that remain in broadband inter- 10 net access service coverage in high-cost rural 11 areas despite the operations of the high-cost 12 programs; and 13 (B) shortfalls in sufficient funding of the 14 high-cost programs that could adversely affect 15 the sustainability of services or reasonable com- 16 parability of rates that are supported by those 17 programs. 18 (2) PURPOSES.—In carrying out paragraph (1), 19 the Commission shall use amounts made available 20 under subsection (d) in an efficient and cost-effec- 21 tive manner only— 22 (A) for the assessment of, and to provide 23 subsidies in a technology-neutral manner 24 through a competitive process (subject to 25 VerDate Sep 11 2014 22:19 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S4015.IS S4015 pbinns on DSKJLVW7X2PROD with BILLS 7 •S 4015 IS weighting preferences for performance quality 1 and other service metrics as the Commission 2 may find appropriate) to providers for support 3 of, deployment of broadband-capable infrastruc- 4 ture in high-cost rural areas that the Commis- 5 sion determines are unserved by fixed terres- 6 trial broadband internet access service at a 7 download speed of not less than 25 megabits 8 per second and an upload speed of not less than 9 3 megabits per second (or such higher speed as 10 the Commission may determine appropriate 11 based upon an evolving definition of universal 12 service); and 13 (B) to assess, and provide subsidies to pro- 14 viders to enable providers to sustain, broadband 15 internet access service in any rural area in 16 which— 17 (i) only one provider of fixed terres- 18 trial broadband internet access service op- 19 erates; and 20 (ii) the high-cost nature of the area 21 precludes the offering of voice service and 22 broadband internet access service at rates 23 and performance levels available in urban 24 VerDate Sep 11 2014 22:19 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S4015.IS S4015 pbinns on DSKJLVW7X2PROD with BILLS 8 •S 4015 IS areas as determined by the Urban Rate 1 Survey conducted by the Commission. 2 (3) TRIBAL CONSIDERATIONS.—In distributing 3 amounts under this subsection, the Commission shall 4 consider the broadband internet access service needs 5 of residents of Tribal lands (as defined in section 6 54.400 of title 47, Code of Federal Regulations, or 7 any successor regulation). 8 (4) LIMITATIONS.— 9 (A) PROHIBITION ON FUNDING OTHER 10 PROGRAMS.— 11 (i) IN GENERAL.—The Commission 12 may not use amounts made available under 13 subsection (d) to fund any program that 14 was not established by the Commission 15 under paragraph (1) of this subsection, in- 16 cluding any program established under sec- 17 tion 254 of the Communications Act of 18 1934 (47 U.S.C. 254) in effect on the date 19 of enactment of this Act, except for using 20 the Universal Service Administrative Com- 21 pany to administer funding. 22 (ii) RULE OF CONSTRUCTION.—Noth- 23 ing in clause (i) shall be construed to pro- 24 hibit the Commission from using amounts 25 VerDate Sep 11 2014 22:19 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S4015.IS S4015 pbinns on DSKJLVW7X2PROD with BILLS 9 •S 4015 IS made available under subsection (d) to 1 supplement the provision of support under 2 the high-cost programs, as authorized 3 under paragraph (1)(B) of this subsection. 4 (B) TRANSPARENCY AND ACCOUNTABILITY 5 FOR ADDRESSING GAPS IN COVERAGE.—The 6 Commission shall establish transparency and 7 accountability requirements for amounts made 8 available for the purpose set forth in paragraph 9 (1)(A) that, at a minimum— 10 (i) provide— 11 (I) a process for challenging any 12 initial determination by the Commis- 13 sion regarding whether an area is 14 served or unserved; and 15 (II) written public notice on the 16 website of the Commission of— 17 (aa) how each challenge 18 under subparagraph (I) was de- 19 cided; and 20 (bb) the reasons of the Com- 21 mission for each decision; 22 (ii) establish broadband service build- 23 out milestones and require periodic certifi- 24 cation by funding recipients to ensure com- 25 VerDate Sep 11 2014 22:19 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S4015.IS S4015 pbinns on DSKJLVW7X2PROD with BILLS 10 •S 4015 IS pliance with the broadband service buildout 1 milestones; 2 (iii) establish a maximum buildout 3 timeframe of 4 years beginning on the date 4 on which funding is provided; 5 (iv) establish periodic reporting re- 6 quirements for funding recipients that 7 identify, at a minimum, the nature of the 8 service provided in each area where fund- 9 ing is provided; 10 (v) establish standard penalties for 11 noncompliance with the requirements es- 12 tablished under this subparagraph and as 13 may be further prescribed by the Commis- 14 sion; 15 (vi) establish procedures for recovery 16 of funds, in whole or in part, from funding 17 recipients in the event of default or non- 18 compliance with the requirements estab- 19 lished under this subparagraph and as may 20 be further prescribed by the Commission; 21 and 22 (vii) require a funding recipient to— 23 (I) offer voice service and 24 broadband internet access service; and 25 VerDate Sep 11 2014 22:19 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S4015.IS S4015 pbinns on DSKJLVW7X2PROD with BILLS 11 •S 4015 IS (II) permit a consumer to sub- 1 scribe to one type of service described 2 in subclause (I) or both types. 3 (C) TRANSPARENCY AND ACCOUNTABILITY 4 FOR ADDRESSING SHORTFALLS IN FUNDING.— 5 The Commission shall establish transparency 6 and accountability requirements for amounts 7 made available for the purpose set forth in sub- 8 paragraph (1)(B) that, at a minimum— 9 (i) establish periodic reporting and 10 certification requirements for funding re- 11 cipients to ensure that the funding results 12 in the offering of voice service and 13 broadband internet access service at rea- 14 sonably comparable rates and performance 15 levels; 16 (ii) establish standard penalties for 17 noncompliance with the requirements es- 18 tablished under this subparagraph and as 19 may be further prescribed by the Commis- 20 sion; 21 (iii) establish procedures for recovery 22 of funds, in whole or in part, from funding 23 recipients in the event of default or non- 24 compliance with the requirements estab- 25 VerDate Sep 11 2014 22:19 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S4015.IS S4015 pbinns on DSKJLVW7X2PROD with BILLS 12 •S 4015 IS lished under this subparagraph and as may 1 be further prescribed by the Commission; 2 and 3 (iv) require a funding recipient to— 4 (I) offer voice service and 5 broadband internet access service; and 6 (II) permit a consumer to sub- 7 scribe to one type of service described 8 in subclause (I) or both types. 9 (f) REPORTS.— 10 (1) AUCTION-SPECIFIC REPORTS.—Not later 11 than 30 days after the date on which the Commis- 12 sion announces the results of an auction under sec- 13 tion 309(j) of the Communications Act of 1934 (47 14 U.S.C. 309(j)), the Commission shall publish and 15 submit to the Committee on Commerce, Science, and 16 Transportation of the Senate and the Committee on 17 Energy and Commerce of the House of Representa- 18 tives a report on the amount of net proceeds that 19 will be deposited in the Rural Broadband Assess- 20 ment and Deployment Fund under paragraph 21 (8)(H) of that section (as added by section 2 of this 22 Act) as a result of that auction. 23 (2) AUCTION PROCEEDS DEPLOYMENT RE- 24 PORT.—Section 309(j) of the Communications Act 25 VerDate Sep 11 2014 22:19 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S4015.IS S4015 pbinns on DSKJLVW7X2PROD with BILLS 13 •S 4015 IS of 1934 (47 U.S.C. 309(j)) is amended by adding at 1 the end the following: 2 ‘‘(19) REPORT ON RURAL BROADBAND ASSESS- 3 MENT AND DEPLOYMENT FUND PROCEEDS.—Not 4 later than March 1, 2021, and not less frequently 5 than annually thereafter, the Commission shall pub- 6 lish and submit to the Committee on Commerce, 7 Science, and Transportation of the Senate and the 8 Committee on Energy and Commerce of the House 9 of Representatives a report on— 10 ‘‘(A) the distribution of amounts made 11 available under section 3(d) of the Rural 12 Connectivity Advancement Program Act of 13 2020 for the preceding year; and 14 ‘‘(B) the proje [Text truncated for display. 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