Sec. 9. Federal spectrum transparency and value
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Not later than 1 year after the date of enactment of this Act, the NTIA, in consultation with the Commission and the Director of the Office of Management and Budget, shall develop a framework for determining the annual economic opportunity cost of each specific Federal spectrum band assigned or otherwise allocated for use by Federal entities. The framework developed under paragraph
(1)shall cover all federally allocated spectrum bands between 150 megahertz and 6000 megahertz, inclusive. The goals of the framework developed under paragraph
(1)are— to provide Federal entities with a sustained long-term signal of spectrum value to inform the spectrum management decisions of such entities; and to provide the public with increased transparency about how Federal entities use a scarce physical resource. The framework developed under paragraph
(1)shall— define the term opportunity cost as the value of the spectrum, in dollar terms, as if such spectrum were to be reallocated on a licensed basis to the highest commercial alternative use that currently does not have access to that spectrum; be updated, on an annual basis, to take into account observed market valuations from spectrum auctions, secondary spectrum trading, and other market indicators of spectrum value; determine the opportunity costs borne by each Federal entity for each spectrum band that is entirely under the control of a single agency; and determine the opportunity costs for spectrum assigned or otherwise allocated to Federal entities for both primary use and secondary use. Each Federal entity that has been assigned or otherwise allocated use of a Federal spectrum band shall report, as an off-budget item, the opportunity cost borne by the entity for each spectrum band the entity uses— in the budget of the entity to be included in the budget of the United States Government submitted by the President under section 1105 of title 31, United States Code; and in the annual financial statement of the Federal entity required to be filed under section 3515 of title 31, United States Code. Not later than 5 years after the date of enactment of this Act, and every 5 years thereafter, each Federal entity that has been assigned or otherwise allocated use of a Federal spectrum band, or otherwise utilizes such spectrum, shall engage in an analysis comparing the opportunity cost of that spectrum, as such cost is determined by the framework developed by the NTIA under subsection (a), to the projected costs of the entity relocating to other government spectrum holdings, co-locating with other government agencies, leasing other non-Federal spectrum, or contracting out for its spectrum activities. Not later than 18 months after the date of enactment of this Act, and every 5 years thereafter, the Chief Technology Officer, in consultation with the Assistant Secretary of Commerce for Communications and Information and the Comptroller General of the United States, shall examine the technologies and equipment used by Federal entities operating on Federal spectrum allocations and determine if such technologies and equipment are the most spectrum-efficient available. If the results of any study required under paragraph
(1)determine that the technologies and equipment of Federal entities operating on Federal spectrum allocations are not the most spectrum-efficient available, the Comptroller General shall determine— what the costs would be to upgrade such systems to more up-to-date and readily available systems; what benefits would be gained from upgrading, particularly any cost savings or increases in spectrum utilization efficiency; and if there are any possible problems with upgrading to more up-to-date systems. The Comptroller General of the United States, in consultation with the NTIA, shall— conduct a review of the framework developed under subsection (a); conduct a review of the reports required under subsection
(b)and the processes that Federal entities use to evaluate the opportunity cost borne for each spectrum band the Federal entities use; and make recommendations on how to improve such framework and reporting. Not later than 2 years after the date of enactment of this Act, and every 2 years thereafter, the Comptroller General of the United States shall submit to the appropriate committees in Congress a report on the review and recommendations required under paragraph (1).