,,ii #aacth ,,congress #ast ,session ,s4 #aheh ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,december #be1 #bjac,mr4 ,begich introduced the following bill2 which was read twice and referred to the ,committee on ,commerce1 ,science1 and ,transportation ,a ,,bill ,to require the ,federal ,communications ,commission to suspend and revise portions of the ,report and ,order and ,further ,notice of ,proposed ,rulemaking that revised ,universal ,service ,fund distribution to rural carriers1 to encourage renewed investment by rural rate-of-return carriers in deployment of broadband infrastructure in rural areas1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,rural ,broadband ,investment ,act of #bjac or the ,,rbi ,act of #bjac4 #b4 ,definitions ,in this ,act-- 7#a7 the term applicable ,federal-,state ,joint ,board means-- 7,a7 the ,federal-,state ,joint ,board on ,universal ,service2 and 7,b7 if the limitations in the proposal submitted by the ,commission to the ,federal-,state ,joint ,board on ,universal ,service under section #d7;b77#a77;,a7 result in a revision of the jurisdictional allocation of expenses1 the ,federal-,state ,joint ,board on ,separations2 7#b7 the term ,commission means the ,federal ,communications ,commission2 7#c7 the term revised proposal for rural support means a revised proposal to establish limitations on study area total unseparated loop costs of rural rate-of-return carriers2 7#d7 the term rural carrier means-- 7,a7 a rural rate-of-return carrier2 7,b7 a rural wireless carrier owned by a rural rate-of-return carrier2 and 7,c7 a rural competitive local exchange carrier owned by a rural rate-of-return carrier2 7#e7 the term rural rate-of-return carrier means a rural telephone company 7as defined in section #aec of the ,communications ,act of #aicd 7#dg ,u4,s4,c4 #aec77 that is a rate-of-return carrier 7as defined in section #ed4e of title #dg1 ,code of ,federal ,regulations72 7#f7 the term study area total unseparated loop cost means the cost calculated under section #cf4fba of title #dg1 ,code of ,federal ,regulations2 7#g7 the term ,transformation ,order means the ,report and ,order and ,further ,notice of ,proposed ,rulemaking of the ,federal ,communications ,commission adopted on ,october #bg1 #bjaa 7,,fcc #aa-afa72 and 7#h7 the term tribal lands has the meaning given the term in section #ed4djj7;e7 of title #dg1 ,code of ,federal ,regulations4 #c4 ,findings ,congress finds the following3 7#a7 ,the implementation of new rules and regulations set forth in the ,transformation ,order has created financial uncertainty and instability for rural carriers by denying rural carriers a meaningful opportunity to recover investments and expenses incurred to provide universal service prior to #bjab4 7#b7 ,the implementation of the ,transformation ,order1 including the utilization of a widely criticized regression analysis used to determine levels of universal service support1 is creating significant uncertainty with respect to the sufficiency and predictability of the universal service support mechanisms1 which has discouraged rural carriers from making broadband infrastructure investments to build out new broadband capabilities in high cost-to-serve rural communities throughout the ,united ,states4 7#c7 ,the intent of ,congress under section #bed of the ,communications ,act of #aicd 7#dg ,u4,s4,c4 #bed7 is that the ,commission-- 7,a7 consult with the ,federal-,state ,joint ,board on ,universal ,service before adopting changes to regulations that affect universal service high-cost fund mechanisms2 and 7,b7 adopt policies and regulations that establish and maintain specific1 predictable1 and sufficient support mechanisms to preserve and advance universal service4 7#d7 ,the ,secretary of ,agriculture has warned that the implementation of the ,transformation ,order is having unintended consequences for rural broadband investment and deployment and for other ,federal programs designed to promote rural broadband deployment4 7#e7 ,the ,department of ,agriculture has reported that demand for ,rural ,utilities ,service loans for broadband buildout has plummeted in #bjac1 due in part to the uncertainty created by the new rules and regulations set forth in the ,transformation ,order4 7#f7 ,surveys of rural carriers indicate that nearly two-thirds of rural rate-of-return carriers are canceling or postponing new broadband investments1 while other reports indicate that rural rate-of-return carriers are being forced to increase consumer prices and reduce staff1 creating ripple effects for economies in rural areas of the ,united ,states4 7#g7 ,congressional hearings have demonstrated that the approach of the ,commission to the consideration1 review1 and resolution of petitions for waivers from rules adopted under the ,transformation ,order-- 7,a7 is unduly burdensome and costly for small1 rural carriers and inconsistent with the established policy and waiver standards of the ,commission2 and 7,b7 is consequently discouraging small1 rural carriers from requesting waivers and is creating additional business uncertainties4 7#h7 ,congressional hearings have demonstrated that the ,commission can make adjustments to the ,transformation ,order to address the adverse impact and business uncertainties confronting small1 rural carriers without affecting other categories of carriers or increasing the ,universal ,service ,fund budget established in the ,transformation ,order4 #d4 ,suspension and revision of provision of ,transformation ,order 7a7 ,suspension ,section #cf4fba7;a77#e7 of title #dg1 ,code of ,federal ,regulations 7relating to the annual limitation of study area total unseparated loop cost pursuant to a schedule announced by the ,wireline ,competition ,bureau71 shall have no force or effect4 7b7 ,review and revision 7#a7 ,publication of revised proposal for universal service distribution to rural rate-of-return carriers 7,a7 ,requirement to submit proposal ,not later than #fj days after the effective date of this ,act1 the ,commission shall issue a notice of proposed rulemaking to adopt a revised proposal for rural support4 7,b7 ,recovery of reasonable investments and operating expenses ,the ,commission shall ensure that the revised proposal for rural support does not deprive a rural rate-of-return carrier of the opportunity to recover reasonable investments and operating expenses incurred prior to the adoption under subparagraph 7,d7 of the revised proposal for rural support4 7,c7 ,consultation with ,joint ,boards ,before the ,commission issues a final rule under subparagraph 7,d7 to adopt a revised proposal for rural support1 the ,commission shall consult with the applicable ,federal-,state ,joint ,board to the extent that such consultation is required under the ,communications ,act of #aicd 7#dg ,u4,s4,c4 #aea et seq474 7,d7 ,final rule adopting proposal ,not earlier than #de days and not later than #abj days after the date on which the ,commission issues the notice of proposed rulemaking under subparagraph 7,a71 the ,commission shall issue a final rule adopting a revised proposal for rural support4 7#b7 ,report to ,congress ,not later than #fj days after the effective date of this ,act1 the ,commission shall submit to the ,committee on ,commerce1 ,science1 and ,transportation of the ,senate and the ,committee on ,energy and ,commerce of the ,house of ,representatives-- 7,a7 a report that contains the revised proposal for rural support published in the notice of proposed rulemaking under paragraph 7#a77;,a72 and 7,b7 a report that-- 7i7 describes the amount of universal service funding necessary to achieve universal service objectives during the #aj-year period following the date on which the report is submitted2 and 7ii7 includes-- 7,i7 quantitative and qualitative analysis in support of the findings of the ,commission under clause 7i72 and 7,,ii7 a specific analysis identifying the unique circumstances and resulting high-cost loop support required to provide and maintain universal service in ,alaska and on tribal lands4 7c7 ,interim limitations 7#a7 ,in general ,not later than #cj days after the effective date of this ,act1 the ,commission shall establish interim limitations on study area total unseparated loop costs by-- 7,a7 determining the annual ,universal ,service ,fund distribution for each rural rate-of-return carrier on the basis of the applicable rules that were in effect on the day before the effective date of the ,transformation ,order2 and 7,b7 adjusting the universal service distribution of high-cost loop support that results from the annual distribution determined under paragraph 7#a7 to reflect-- 7i7 the revision to section #cf4fje of title #dg1 ,code of ,federal ,regulations1 required under section #e of this ,act2 and 7ii7 any revisions to responses to waiver petitions required under section #f of this ,act4 7#b7 ,duration ,the interim limitations established under paragraph 7#a7 shall be in effect until the date on which the final rule required under subsection 7b77#a77;,d7 takes effect4 #e4 ,safety net additive ,the ,commission shall amend section #cf4fje7;a7 of title #dg1 ,code of ,federal ,regulations 7relating to adjustments to high-cost loop support for rural rate-of-return carriers7 to provide that1 beginning on ,january #a1 #bjab1 the calculation of safety net additive support for a rural rate-of-return carrier shall include all just and reasonable investments made by the carrier prior to #bjab4 #f4 ,waivers 7a7 ,in general ,the ,commission shall apply the criteria and standards under this section when considering a petition for a waiver submitted by a rural carrier negatively affected by a revision adopted in the ,transformation ,order4 7b7 ,reasonable opportunity ,to recover costs ,the ,commission shall grant a petition for a waiver described in subsection 7a7 if the ,commission determines a waiver is necessary to ensure that the requesting rural carrier is afforded a reasonable opportunity to recover the costs of providing universal service1 including an equitable return on the investments the rural carrier made to provide universal service4 7c7 ,time limit for consideration of waiver petition 7#a7 ,in general ,not later than #ij days after the date on which the ,commission receives a petition for a waiver1 the ,commission shall grant or deny the petition4 7#b7 ,failure to act within time limit ,if the ,commission fails to make a determination on a petition for a waiver prior to the expiration of the time period set forth under paragraph 7#a71 the ,commission shall be deemed to have granted the petition4 7#c7 ,waiver petitions filed before effective date ,the ,commission shall reconsider1 in accordance with this section1 any petition for a waiver relating to a revision to a regulation adopted in the ,transformation ,order that-- 7,a7 was submitted to the ,commission during the period beginning on ,november #ah1 #bjaa1 and ending on the day before the effective date of this ,act2 and 7,b7 is denied by the ,commission4 7d7 ,denial of waiver petition ,if the ,commission denies a petition for a waiver1 in whole or in part1 the ,commission shall identify with specificity-- 7#a7 any operating expenses of the requesting carrier that the ,commission determines unreasonable2 7#b7 any investments made by the requesting carrier that the ,commission determines are not used and useful in the provision of universal service2 and 7#c7 the underlying basis for any determination under paragraph 7#a7 or 7#b74 #g4 ,effective date ,this ,act shall take effect #cj days after the date of enactment of this ,act4