,i #aaith ,,congress #ast ,session ,h4 ,r4 #cbhj ,,in ,,the ,,house ,,of ,,representatives ,may #h1 #bjbe,mr4 ,feenstra 7for himself1 ,mrs4 ,miller-,meeks1 ,mr4 ,bost1 and ,ms4 ,stansbury7 introduced the following bill2 which was referred to the ,committee on ,agriculture1 and in addition to the ,committee on ,energy and ,commerce1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to increase access to broadband telecommunications services in rural areas1 to increase minimum broadband speeds in rural areas1 and to provide grants1 loans1 and loan guarantees to finance the costs of the construction1 improvement1 and acquisition of facilities and equipment for broadband service in rural areas1 and other purposes4 #a4 ,short title ,this ,act may be cited as the ,rural ,broadband ,modernization ,act4 #b4 ,rural broadband modernization 7a7 ,in general ,section #fja of the ,rural ,electrification ,act of #aicf 7#g ,u4,s4,c4 #iej;bb7 is amended to read as follows3 #fja4 ,access to broadband telecommunications services in rural areas 7a7 ,purpose ,the purpose of this section is to provide grants1 provide loans1 and provide loan guarantees to provide funds for the costs of the construction1 improvement1 and acquisition of facilities and equipment for broadband service in rural areas4 7b7 ,definitions ,in this section3 7#a7 ,broadband service ,the term broadband service means any technology identified by the ,secretary as having the capacity to transmit data to enable a subscriber to the service to originate and receive high-quality voice1 data1 graphics1 and video4 7#b7 ,rural area 7,a7 ,in general ,the term rural area means any area other than-- 7i7 an area described in clause 7i7 or 7ii7 of section #cdc7;a77#ac77;,a7 of the ,consolidated ,farm and ,rural ,development ,act 7#g ,u4,s4,c4 #aiia7;a77#ac77;,a772 and 7ii7 in the case of a grant or direct loan1 a city1 town1 or incorporated area that has a population of greater than #bj1jjj inhabitants4 7,b7 ,urban area growth ,the ,secretary may1 by regulation only1 consider an area described in section #cdc7;a77#ac77;,f77i77,i7 of such ,act to not be a rural area for purposes of this section4 7,c7 ,exclusion of certain populations ,the term does not include any population described in subparagraph 7,h7 or 7,i7 of section #cdc7;a77#ac7 of such ,act 7#g ,u4,s4,c4 #aiia7;a77#ac774 7c7 ,grants1 loans1 and loan guarantees 7#a7 ,in general ,the ,secretary shall make grants1 shall make loans1 and shall guarantee loans to eligible entities described in subsection 7d7 to provide funds for the construction1 improvement1 or acquisition of facilities and equipment for the provision of broadband service in rural areas that1 at a minimum1 delivers #ajj ,mbps 7or such greater rate as the ,secretary may establish7 symmetrical throughput for each rural household in the proposed service area4 7#b7 ,applications ,the ,secretary shall establish an application process for grants under this section that-- 7,a7 permits a single application for a grant and a loan under title ,i1 ,,ii1 or this title that is associated with the grant2 7,b7 provides a single decision to award such a grant and loan2 and 7,c7 ensures timely consideration of applications by approving or denying applications within #cj days after submission4 7#c7 ,priority 7,a7 ,in general ,in making grants1 making loans1 and guaranteeing loans under paragraph 7#a71 the ,secretary shall-- 7i7 give the highest priority to applications for projects to provide broadband service to unserved rural communities that do not have any residential broadband service of at least-- 7,i7 a #be-,mbps downstream transmission capacity2 and 7,,ii7 a #c-,mbps upstream transmission capacity2 7ii7 give priority to applications for projects to provide the maximum level of broadband service to the greatest proportion of rural households in the proposed service area identified in the application2 7iii7 give priority to eligible entities that have provided broadband service or utility service in rural areas for at least #e years in the ,state for which an award is sought2 7iv7 provide equal consideration to all eligible entities1 based on organizational form2 and 7v7 with respect to #b or more applications that are given the same priority under clause 7i71 give priority to an application that requests less grant funding than loan funding4 7,b7 ,other ,after giving priority to the applications described in clauses 7i7 through 7iii7 of subparagraph 7,a71 the ,secretary shall give priority to applications-- 7i7 for projects to provide broadband service to rural communities-- 7,i7 with a population of less than #aj1jjj permanent residents2 7,,ii7 that are experiencing outmigration and have adopted a strategic community investment plan under section #cgi;,h7d7 of the ,consoldiated ,farm and ,rural ,development ,act that includes considerations for improving and expanding broadband service2 7,,iii7 with a high percentage of low income families or persons 7as defined in section #eja7;b7 of the ,housing ,act of #aidi 7#db ,u4,s4,c4 #adga7;b7772 7,,iv7 that are isolated from other significant population centers2 or 7,v7 that provide rapid and expanded deployment of fixed and mobile broadband on cropland and ranchland within a service territory for use in various applications of precision agriculture2 and 7ii7 that were developed with the participation of1 and will receive a substantial portion of the funding for the project from1 #b or more stakeholders1 including-- 7,i7 ,state1 local1 and tribal governments2 7,,ii7 nonprofit institutions2 that provide community development or assistance services2 7,,iii7 community anchor institutions1 such as-- 7aa7 public libraries2 7bb7 elementary schools and secondary schools 7as defined in section #haja of the ,elementary and ,secondary ,education ,act of #aife 7#bj ,u4,s4,c4 #ghja772 7cc7 institutions of higher education2 and 7dd7 health care facilities2 7,,iv7 private entities2 and 7,v7 philanthropic organizations4 7#d7 ,grant amounts 7,a7 ,maximum ,except as provided in subparagraph 7,b71 the amount of any grant made under this section shall not exceed #ge percent of the total project cost4 7,b7 ,secretarial authority to adjust 7i7 ,in general ,the ,secretary may make grants of #ajj percent of the development costs of the project for which the grant is provided to an eligible entity if the ,secretary determines that the project serves an area of rural households where the population density is fewer than #g households per square mile4 7ii7 ,definition of development costs ,in this paragraph1 the term development costs means costs of-- 7,i7 construction1 including labor and materials2 7,,ii7 project applications2 and 7,,iii7 other development activities1 as determined by the ,secretary4 7iii7 ,density determinations ,in determining population density under this section1 the ,secretary shall prescribe a calculation method which-- 7,i7 utilizes publicly available data2 and 7,,ii7 includes only those areas in which the applicant is able to meet the service requirements under this section1 as determined by the ,secretary4 7#e7 ,fees ,in the case of loan guarantees issued or modified under this section1 the ,secretary shall charge and collect from the lender fees in such amounts as to reduce the costs of subsidies for guaranteed loans1 except that the amount of the fees shall be determined so as to not act as a bar to participation in the programs and to not be inconsistent with current practices in the marketplace4 7d7 ,eligibility 7#a7 ,eligible entities 7,a7 ,in general ,to be eligible to obtain a grant1 loan1 or loan guarantee under this section1 an entity shall-- 7i7 demonstrate the ability to furnish or improve service in order to meet the broadband buildout requirements established under subsection 7e77#c7 in all or part of an unserved rural area2 7ii7 submit to the ,secretary an application at such time1 in such manner1 and containing such information as the ,secretary may require2 and 7iii7 agree to complete buildout of the broadband infrastructure described in the application by not later than #e years after the initial date on which the application is approved and the initial funds pursuant to that award are received by the applicant4 7,b7 ,limitation ,the ,secretary may not provide to an eligible entity that provides telecommunications or broadband service to at least #bj percent of the households in the ,united ,states1 funds under this section for a fiscal year in excess of #ae percent of the funds made available under subsection 7j7 for the fiscal year4 7#b7 ,eligible projects 7,a7 ,grant ,to be eligible for a grant under this section1 a project shall-- 7i7 be carried out in a proposed service territory in which not less than #ij percent of the households are unserved by terrestrial wireline or licensed wireless broadband service speeds of at least #ajj ,mbps downstream transmission capacity and #bj ,mbps upstream transmission capacity1 or such higher speed thresholds as the ,secretary may determine constitute an unserved rural area pursuant to subsection 7e77#b72 and 7ii7 not concurrently receive any other broadband grant administered by the ,rural ,utilities ,service1 the ,department of the ,treasury1 the ,national ,telecommunications and ,information ,administration1 or a ,state grant program4 7,b7 ,loan or loan guarantee ,a borrower may use a loan or loan guarantee provided under this section to carry out a project in a proposed service territory only if1 as of the date on which the application for the loan or loan guarantee is submitted1 not less than #ej percent of the locations in the proposed service territory are unserved or have service levels below the minimum acceptable level of fixed terrestrial broadband service1 whether wireline or licensed wireless1 established under subsection 7e74 7#c7 ,equity and market survey requirements 7,a7 ,in general ,the ,secretary may require an entity to provide matching funds under this section in an amount not to exceed #aj percent of the amount of the grant1 loan1 or loan guarantee requested in the application of the entity1 unless the ,secretary determines that a higher percentage is required for financial feasibility4 7,b7 ,market survey 7i7 ,in general ,the ,secretary may require an entity that proposes to have a subscriber projection of more than #bj percent of the broadband service market in a rural area to submit to the ,secretary a market survey4 7ii7 ,less than #bj percent ,the ,secretary may not require an entity that proposes to have a subscriber projection of less than #bj percent of the broadband service market in a rural area to submit a market survey under clause 7i74 7iii7 ,information ,information submitted under this subparagraph shall be-- 7,i7 certified by the affected community1 city1 county1 or designee2 or 7,,ii7 demonstrated on-- 7aa7 the broadband map of the affected ,state if the map contains address-level data2 or 7bb7 the ,national ,broadband ,map if address-level data is unavailable4 7#d7 ,state and local governments and indian tribes ,subject to paragraph 7#a71 a ,state or local government 7including any agency1 subdivision1 or instrumentality thereof 7including consortia thereof77 and an ,indian tribe shall be eligible for assistance under this section to provide broadband services to a rural area4 7#e7 ,technical assistance and training 7,a7 ,in general ,the ,secretary may provide to any eligible entity described in paragraph 7#a7 of this subsection that is applying for assistance under this section for a project described in subsection 7c77#c77;,a77i7 technical assistance and training-- 7i7 to prepare reports and surveys necessary to request grants1 loans1 and loan guarantees under this section for broadband deployment2 7ii7 to improve management1 including financial management1 relating to the proposed broadband deployment2 7iii7 to prepare applications for grants1 loans1 and loan guarantees under this section2 or 7iv7 to assist with other areas of need identified by the ,secretary4 7,b7 ,funding ,not less than #c percent and not more than #e percent of the amounts appropriated to carry out this section for a fiscal year shall be used for technical assistance and training under this paragraph4 7e7 ,broadband service 7#a7 ,in general ,subject to paragraph 7#b71 for purposes of this section1 the minimum acceptable level of broadband service for a rural area to be deemed served for purposes of this section shall be via terrestrial wireline or licensed wireless networks with at least-- 7,a7 a #ajj-,mbps downstream transmission capacity2 and 7,b7 a #bj-,mbps upstream transmission capacity4 7#b7 ,adjustments ,at least once every #b years and more frequently as the ,secretary deems necessary and appropriate1 the ,secretary shall review1 and may adjust through notice published in the ,federal ,register-- 7,a7 the minimum acceptable level of broadband service established under paragraph 7#a7 for an area to be deemed unserved and thus eligible for an award under this section2 and 7,b7 the broadband buildout requirements under paragraph 7#c71 to ensure that high quality1 cost-effective broadband service is provided to rural areas4 7#c7 ,broadband buildout requirements 7,a7 ,in general ,the term broadband buildout requirement means the level of broadband service an applicant receiving assistance under this section must agree1 at the time the application is finalized1 to provide for the duration of any project-related agreement between the applicant and the ,secretary4 7,b7 ,minimum requirement ,the broadband buildout requirement shall1 at a minimum1 deliver #ajj ,mbps symmetrical throughout for each rural household in the proposed service area4 ,the ,secretary may increase this minimum requirement for the performance broadband service in considering new applications4 7,c7 ,substitute service standards for unique service territories ,if an applicant shows that it would be cost prohibitive to meet the broadband buildout requirements established under this paragraph for the entirety of a proposed service territory due to the unique characteristics of the proposed service territory1 the ,secretary and the applicant may agree to utilize substitute standards for any unserved portion of the project that should continue to consider the best technology available to meet the needs of the residents in the unserved area4 7f7 ,technological neutrality ,for purposes of determining whether to provide assistance for a project under this section1 the ,secretary shall use criteria that are technologically neutral and criteria that ensures the technology can meet program broadband buildout requirements and the evolving needs of rural households and businesses1 including precision agriculture4 7g7 ,terms and conditions for loans and loan guarantees 7#a7 ,in general ,notwithstanding any other provision of law1 a loan or loan guarantee under this section shall-- 7,a7 bear interest at an annual rate of1 as determined by the ,secretary-- 7i7 in the case of a direct loan1 a rate equivalent to-- 7,i7 the cost of borrowing to the ,department of the ,treasury for obligations of comparable maturity2 or 7,,ii7 #d percent2 and 7ii7 in the case of a guaranteed loan1 the current applicable market rate for a loan of comparable maturity2 and 7,b7 have a term of such length1 not exceeding #ce years1 as the borrower may request1 if the ,secretary determines that the loan is adequately secured4 7#b7 ,recurring revenue ,the ,secretary shall consider the recurring revenues of the entity at the time of application in determining an adequate level of credit support4 7h7 ,adequacy of security 7#a7 ,in general ,the ,secretary shall ensure that the type and amount of1 and method of security used to secure1 any loan or loan guarantee under this section is commensurate to the risk involved with the loan or loan guarantee1 particularly in any case in which the loan or loan guarantee is issued to a financially strong and stable entity1 as determined by the ,secretary4 7#b7 ,determination of amount and method of security ,in determining the amount of1 and method of security used to secure1 a loan or loan guarantee under this section1 the ,secretary shall consider reducing the security in a rural area that does not have broadband service4 7i7 ,payment assistance for certain loan and grant recipients 7#a7 ,use of grant funds ,the ,secretary may use the funds appropriated for a grant under this title for the cost 7as defined by section #ejb of the ,congressional ,budget ,act of #aigd7 of providing assistance under paragraph 7#b7 of this subsection4 7#b7 ,payment assistance ,when providing a grant under this title1 the ,secretary1 at the sole discretion of the ,secretary1 may make-- 7,a7 a subsidized loan1 which shall bear a reduced interest rate at such a rate as the ,secretary determines appropriate to meet the objectives of the program2 or 7,b7 a payment assistance loan1 which shall-- 7i7 require no interest and principal payments while the borrower is-- 7,i7 in material compliance with the loan agreement2 and 7,,ii7 meeting the milestones and objectives of the project agreed to under paragraph 7#c72 and 7ii7 require such nominal periodic payments as the ,secretary determines to be appropriate4 7#c7 ,agreement on milestones and objectives ,with respect to payment assistance provided under paragraph 7#b71 before entering into the agreement under which the payment assistance will be provided1 the applicant and the ,secretary shall agree to milestones and objectives of the project4 7#d7 ,amendment of milestones and objectives ,the ,secretary and the applicant may jointly agree to amend the milestones and objectives agreed to under paragraph 7#c74 7#e7 ,considerations ,in deciding to utilize the payment assistance authority under paragraph 7#b71 the ,secretary shall consider whether or not the payment assistance will-- 7,a7 improve the compliance of the grantee with any commitments made through the grant agreement2 7,b7 promote the completion of the broadband project2 7,c7 protect taxpayer resources2 and 7,d7 support the integrity of the broadband programs administered by the ,secretary4 7#f7 ,limitations on payment assistance ,the ,secretary may not make a payment assistance loan under paragraph 7#b77;,b7 to an entity receiving a grant under this section that is a recipient of a loan under title ,i or ,,ii that is associated with the grant4 7j7 ,funding 7#a7 ,limitations on authorization of appropriations ,there is authorized to be appropriated to the ,secretary to carry out this section not more than #ejj1jjj1jjj for each of fiscal years #bjbf through #bjcj1 to remain available until expended4 7#b7 ,allocation of funds 7,a7 ,in general ,from amounts made available for each fiscal year under this subsection1 the ,secretary shall-- 7i7 establish a national reserve for loans and loan guarantees to eligible entities in ,states under this section2 and 7ii7 allocate amounts in the reserve to each ,state for each fiscal year for loans and loan guarantees to eligible entities in the ,state4 7,b7 ,amount ,the amount of an allocation made to a ,state for a fiscal year under subparagraph 7,a7 shall bear the same ratio to the amount of allocations made for all ,states for the fiscal year as-- 7i7 the number of communities with a population of #b1ejj or fewer inhabitants in the ,state2 bears to 7ii7 the number of communities with a population of #b1ejj or fewer inhabitants in all ,states4 7,c7 ,unobligated amounts ,any amounts in the reserve established for a ,state for a fiscal year under subparagraph 7,b7 that are not obligated by ,april #a of the fiscal year shall be available to the ,secretary to make loans and loan guarantees under this section to eligible entities in any ,state1 as determined by the ,secretary4 7k7 ,termination of authority ,no grant1 or loan1 or loan guarantee may be made under this section after ,september #cj1 #bjcj4 4 7b7 ,effective date ,the amendment made by subsection 7a7 shall take effect on ,october #a1 #bjbe4