What This Bill Does
This bill rewrites rules for the ReConnect Program, which provides loans and grants to build broadband internet in rural areas. The bill makes it easier for organizations to apply for this funding and relaxes some requirements they must meet. It also requires the government to report yearly on how the money is being used.
##
Who It Affects
- Rural communities and residents without broadband access
- Organizations applying for ReConnect loans and grants (like electric cooperatives, nonprofits, and broadband companies)
- The U.S. Department of Agriculture's Rural Utilities Service
- Congress and the public
##
Key Provisions
- The government must increase minimum internet speeds it funds from 10 megabits per second (Mbps) download and 1 Mbps upload to 25 Mbps download and 3 Mbps upload. For applications seeking higher-tier funding, the government must fund speeds of at least 100 Mbps download and 20 Mbps upload. (Sec. 2(a)(3))
- Organizations applying for grants do not need to provide the government with a first lien (a legal claim) on all broadband equipment as security. They can offer other security methods like a letter of credit instead. (Sec. 2(a)(4))
- The application process must reduce required paperwork and simplify how organizations submit information. (Sec. 2(a)(3))
- The government must issue a detailed public report within 120 days and then yearly showing how ReConnect money was distributed, how many locations got broadband service, and what speeds were delivered. (Sec. 2(a)(7))
- The government cannot regulate or control the prices that broadband providers charge customers. (Sec. 607)
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What Changes
The ReConnect Program becomes easier to access. Organizations face less paperwork and fewer restrictions on their legal structure (meaning nonprofits, cooperatives, and for-profit companies all have equal footing). The government relaxes financial security requirements and allows more flexible ways to prove an organization can handle the project. Internet speed standards increase to match modern needs. A challenge process lets people dispute whether an area truly lacks broadband service. Yearly public reports provide transparency on program spending and results.
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Important Definitions
- **ReConnect Program**: The program established under Section 601 that provides loans, grants, and loan guarantees for broadband construction in rural areas. (Sec. 2(a)(2))
- **Broadband infrastructure**: Any cables, fiber optics, wiring, or other permanent infrastructure (including fixed wireless) that delivers internet connections to individual locations and meets advanced telecommunications standards. (Sec. 2(a)(4))
- **Advanced telecommunications capability**: Not specified in bill text
##
Effective Date
Not specified in bill text
II
118TH CONGRESS
1ST SESSION
S. 130
To amend the Rural Electrification Act of 1936 to reauthorize and improve
the ReConnect loan and grant program, and for other purposes.
IN THE SENATE OF THE UNITED STATES
JANUARY 30, 2023
Mr. THUNE (for himself, Mr. LUJA´N, Ms. KLOBUCHAR, and Mrs. FISCHER)
introduced the following bill; which was read twice and referred to the
Committee on Agriculture, Nutrition, and Forestry
A BILL
To amend the Rural Electrification Act of 1936 to reauthor-
ize and improve the ReConnect loan and grant program,
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 Internet Im-
4
provement Act of 2023’’.
5
SEC. 2. STREAMLINING BROADBAND AUTHORITIES.
6
(a) IN GENERAL.—Section 601 of the Rural Elec-
7
trification Act of 1936 (7 U.S.C. 950bb) is amended—
8
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•S 130 IS
(1) by striking the section heading and insert-
1
ing ‘‘RECONNECT PROGRAM’’;
2
(2) in subsection (b)—
3
(A) by redesignating paragraph (3) as
4
paragraph (4); and
5
(B) by inserting after paragraph (2) the
6
following:
7
‘‘(3) RECONNECT
PROGRAM.—The term ‘Re-
8
Connect Program’ means the program established
9
under this section.’’;
10
(3) in subsection (c)—
11
(A) in paragraph (2)(A)—
12
(i) in clause (i)—
13
(I) in subclause (I), by striking
14
‘‘10-Mbps’’ and inserting ‘‘25-Mbps’’;
15
and
16
(II) in subclause (II), by striking
17
‘‘1-Mbps’’ and inserting ‘‘3-Mbps’’;
18
and
19
(ii) by striking clause (iv) and insert-
20
ing the following:
21
‘‘(iv) give priority to applications from
22
applicants that have demonstrated the
23
technical and financial experience required
24
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•S 130 IS
to construct and operate broadband net-
1
works.’’; and
2
(B) by adding at the end the following:
3
‘‘(5) APPLICATIONS.—The Secretary shall es-
4
tablish an application process for grants, loans, and
5
loan guarantees under this section that—
6
‘‘(A) reduces the amount of data required
7
to apply by limiting the required data to only—
8
‘‘(i) the entity applying, excluding any
9
parent or affiliate entity that is not a party
10
to the application, to the greatest extent
11
practicable; and
12
‘‘(ii) the geographic area affected by
13
the application, if a parent or affiliate is
14
not a party to the application;
15
‘‘(B) simplifies the data interfaces for sub-
16
mission to the greatest extent practicable; and
17
‘‘(C) allows all applicants, regardless of
18
whether an applicant is publicly traded, to rely
19
on a bond rating of at least investment grade
20
(when bond ratings are available) in place of fi-
21
nancial documentation.’’;
22
(4) in subsection (d)—
23
(A) in paragraph (1)—
24
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•S 130 IS
(i) in subparagraph (B), by striking
1
‘‘subsection (j)’’ and inserting ‘‘subsection
2
(l)’’; and
3
(ii) by adding at the end the fol-
4
lowing:
5
‘‘(C) GRANT
REQUIREMENTS.—The Sec-
6
retary—
7
‘‘(i) shall not restrict the eligibility of
8
an entity for a grant under this section
9
based on the legal structure of the entity;
10
‘‘(ii) shall allow entities to apply for a
11
grant under this section without regard to,
12
or preference for, the legal structure of an
13
entity;
14
‘‘(iii) in determining the financial abil-
15
ity of an entity to carry out a project using
16
a grant under this section, shall allow the
17
entity to demonstrate that financial ability
18
by methods that—
19
‘‘(I) the Secretary determines to
20
be the least burdensome; and
21
‘‘(II) subject to clause (v), are
22
not limited to providing the Federal
23
Government an exclusive first lien on
24
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•S 130 IS
all grant-funded assets during the
1
service obligation of the grant;
2
‘‘(iv) subject to clause (v), in deter-
3
mining the required collateral to secure
4
grant funds or to secure performance dur-
5
ing the service obligation of a grant, shall
6
allow an awardee to offer alternative secu-
7
rity, such as a letter of credit, in lieu of
8
providing the Federal Government an ex-
9
clusive first lien on all grant-funded assets;
10
and
11
‘‘(v) if the Secretary reasonably deter-
12
mines that alternative methods or alter-
13
native security established under clause
14
(iii)(II) or (iv) are insufficient to secure
15
performance with respect to a project
16
under this section—
17
‘‘(I) may require an entity to
18
provide the Federal Government an
19
exclusive first lien on all grant-funded
20
assets during the service obligation of
21
the grant; and
22
‘‘(II) shall release that lien after
23
the Secretary determines that the en-
24
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•S 130 IS
tity is performing to the satisfaction
1
of the Secretary.’’; and
2
(B) in paragraph (2)—
3
(i) in subparagraph (A)(i), by striking
4
‘‘50’’ and inserting ‘‘90’’; and
5
(ii) by adding at the end the fol-
6
lowing:
7
‘‘(D)
OBLIGATIONS
TO
PROVIDE
8
BROADBAND
SERVICE
IN
THE
SAME
SERVICE
9
TERRITORY.—
10
‘‘(i) DEFINITION OF BROADBAND IN-
11
FRASTRUCTURE.—In this subparagraph,
12
the term ‘broadband infrastructure’ means
13
any cables, fiber optics, wiring, or other
14
permanent infrastructure that is integral
15
to the structure, including fixed wireless
16
infrastructure, that—
17
‘‘(I) is capable of providing ac-
18
cess to internet connections in indi-
19
vidual locations; and
20
‘‘(II) offers an advanced tele-
21
communications capability (as defined
22
in section 706(d) of the Telecommuni-
23
cations Act of 1996 (47 U.S.C.
24
1302(d))).
25
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•S 130 IS
‘‘(ii) OTHER
PROVIDERS.—The Sec-
1
retary shall consider a proposed service
2
territory with respect to which an eligible
3
entity submits an application to carry out
4
a project under this section to be served by
5
broadband service if a broadband service
6
provider other than that eligible entity is
7
subject to an obligation by a Federal,
8
State, or local government entity to build
9
broadband
infrastructure
and
offer
10
broadband service in that service territory,
11
subject to conditions—
12
‘‘(I) under a Federal, State, or
13
local funding award program; or
14
‘‘(II) otherwise required by the
15
Federal, State, or local government
16
entity.
17
‘‘(iii) OTHER
FUNDING.—Subject to
18
clause (iv), the Secretary shall not be re-
19
quired to consider a proposed service terri-
20
tory with respect to which an eligible entity
21
submits an application to carry out a
22
project under this section to be served by
23
broadband service if that eligible entity has
24
accepted an obligation under a Federal,
25
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•S 130 IS
State, or local funding award program to
1
build broadband infrastructure and offer
2
broadband service in that service territory,
3
if the proposed project under this sec-
4
tion—
5
‘‘(I) would not be duplicative of
6
the obligation under the other award
7
program; and
8
‘‘(II) would build broadband in-
9
frastructure that results in faster
10
speeds or expedited milestones of de-
11
ployment of broadband infrastructure
12
in that service territory, as compared
13
to the obligation under the other
14
award program.
15
‘‘(iv)
OTHER
OBLIGATIONS
FOR
16
LOWER
TRANSMISSION
CAPACITY.—The
17
Secretary shall consider a proposed service
18
territory with respect to which an eligible
19
entity submits an application to carry out
20
a project under this section to be unserved
21
by broadband service if an obligation under
22
another award program described in clause
23
(iii) would not provide broadband service of
24
at least—
25
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•S 130 IS
‘‘(I)
a
25-Mbps
downstream
1
transmission capacity; and
2
‘‘(II) a 3-Mbps upstream trans-
3
mission capacity.
4
‘‘(E) REQUIREMENTS FOR FUNDING.—
5
‘‘(i) AFFILIATE
OWNED
AND
OPER-
6
ATED NETWORKS.—A grant, loan, or loan
7
guarantee under this section may be used
8
to construct networks that will be owned
9
and operated by an affiliate of the eligible
10
entity receiving the grant, loan, or loan
11
guarantee, subject to the condition that the
12
eligible entity, the affiliate, or both, as the
13
Secretary determines to be necessary, shall
14
provide adequate security for the grant,
15
loan, or loan guarantee.
16
‘‘(ii) NEGATIVE COVENANTS AND CON-
17
DITIONS.—To the greatest extent prac-
18
ticable, a project carried out using a grant,
19
loan, or loan guarantee under this section
20
shall not add any new negative covenants
21
or conditions to the grant, loan, or loan
22
guarantee agreement that were not pre-
23
viously disclosed to the eligible entity at
24
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•S 130 IS
the time of application for the grant, loan,
1
or loan guarantee.
2
‘‘(iii) OWNERSHIP OF SYSTEMS.—
3
‘‘(I) IN
GENERAL.—A network
4
constructed with a grant, loan, or loan
5
guarantee under this section may be
6
transferred to an unaffiliated provider
7
that agrees—
8
‘‘(aa) to assume the service
9
obligation; and
10
‘‘(bb) to provide appropriate
11
and sufficient security for that
12
network.
13
‘‘(II)
DETERMINATION.—The
14
Secretary shall not unreasonably with-
15
hold consent to enter into an appro-
16
priate agreement described in sub-
17
clause (I) with the transferee based on
18
an evaluation by the Secretary of the
19
ability of the transferee to assume the
20
agreement and provide security de-
21
scribed in item (bb) of that subclause.
22
‘‘(iv) REPORTING
AND
AUDITING.—
23
The Secretary shall—
24
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•S 130 IS
‘‘(I) simplify, to the maximum
1
extent practicable, ongoing reporting
2
and auditing requirements for recipi-
3
ents of a grant, loan, or loan guar-
4
antee under this section; and
5
‘‘(II) allow a recipient described
6
in subclause (I) whose financial infor-
7
mation is consolidated with the finan-
8
cial information of a parent entity to
9
rely on that consolidated financial in-
10
formation in complying with the re-
11
quirements described in that sub-
12
clause if the parent entity is providing
13
a guarantee on behalf of a subsidiary
14
of the parent entity with respect to
15
the grant, loan, or loan guarantee.
16
‘‘(v)
PROCUREMENT
AND
CON-
17
TRACTING.—The Secretary—
18
‘‘(I) shall simplify, to the max-
19
imum extent practicable, requirements
20
for recipients of a grant, loan, or loan
21
guarantee under this section relating
22
to the procurement of materials and
23
retention of contractors; and
24
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•S 130 IS
‘‘(II) shall not unreasonably re-
1
strict the ability of a recipient de-
2
scribed in subclause (I) to obtain
3
goods and services from affiliated en-
4
tities.’’;
5
(5) in subsection (e)(1)—
6
(A) in subparagraph (A), by striking ‘‘25-
7
Mbps’’ and inserting ‘‘100-Mbps’’; and
8
(B) in subparagraph (B), by striking ‘‘3-
9
Mbps’’ and inserting ‘‘20-Mbps’’;
10
(6) by redesignating subsections (j) and (k) as
11
subsections (l) and (m), respectively;
12
(7) by inserting after subsection (i) the fol-
13
lowing:
14
‘‘(j) REGULATIONS.—The Secretary shall issue regu-
15
lations to carry out this section in accordance with section
16
553 of title 5, United States Code.
17
‘‘(k) ANNUAL REPORTS.—Not later than 120 days
18
after the date of enactment of the Rural Internet Improve-
19
ment Act of 2023, and not less frequently than annually
20
thereafter, the Secretary shall—
21
‘‘(1) publish a report describing—
22
‘‘(A) the distribution of amounts made
23
available under the ReConnect Program for the
24
preceding year;
25
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•S 130 IS
‘‘(B) the number of locations at which
1
broadband service was made available using
2
amounts under the ReConnect Program for the
3
preceding year;
4
‘‘(C) the number of locations described in
5
subparagraph (B) at which broadband service
6
was used; and
7
‘‘(D) the highest level of broadband service
8
made available at each location described in
9
subparagraph (B); and
10
‘‘(2) submit the report described in paragraph
11
(1) to—
12
‘‘(A) the Committee on Agriculture, Nutri-
13
tion, and Forestry of the Senate;
14
‘‘(B)
the
Committee
on
Commerce,
15
Science, and Transportation of the Senate;
16
‘‘(C) the Committee on Agriculture of the
17
House of Representatives; and
18
‘‘(D) the Committee on Energy and Com-
19
merce of the House of Representatives.’’; and
20
(8) in subsection (l) (as so redesignated), in
21
paragraph (1), by striking ‘‘$350,000,000 for each
22
of fiscal years 2019 through 2023’’ and inserting
23
‘‘such sums as are necessary for each fiscal year’’.
24
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•S 130 IS
(b) SUNSET.—Beginning on the date that is 120 days
1
after the date of enactment of this Act, section 779 of
2
division A of the Consolidated Appropriations Act, 2018
3
(Public Law 115–141; 132 Stat. 399), shall have no force
4
or effect.
5
(c) TRANSFER OF AMOUNTS.—The unobligated bal-
6
ance, as of the date that is 120 days after the date of
7
enactment of this Act, of any amounts made available to
8
carry out the pilot program described in section 779 of
9
division A of the Consolidated Appropriations Act, 2018
10
(Public Law 115–141; 132 Stat. 399)—
11
(1) is tr
[Text truncated for display. Full text available on Congress.gov.]