Sec. 6201. Access to broadband telecommunications services in rural areas
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Section 601 of the Rural Electrification Act of 1936 ( 7 U.S.C. 950bb ) is amended— in subsection (a), by striking provide loans and loan guarantees and inserting provide grants, provide loans, and provide loan guarantees ; in subsection (b)(3)(A)(ii), by inserting in the case of a grant or direct loan, before a city ; in subsection (c)— in the subsection heading, by striking and inserting Loans and ; Grants, loans, and in paragraph (1), by striking shall make or guarantee loans and inserting shall make grants, shall make loans, and shall guarantee loans ; by striking paragraph
(2)and inserting the following: In making grants, making loans, and guaranteeing loans under paragraph (1), the Secretary shall— 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— a 10-Mbps downstream transmission capacity; and a 1-Mbps upstream transmission capacity; 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 application; provide equal consideration to all eligible entities, including those that have not previously received grants, loans, or loan guarantees under paragraph (1); and with respect to 2 or more applications that are given the same priority under clause (i), give priority to an application that requests less grant funding than loan funding. After giving priority to the applications described in clauses
(i)and
(ii)of subparagraph (A), the Secretary shall then give priority to applications— for projects to provide broadband service to rural communities— with a population of less than 10,000 permanent residents; that are experiencing outmigration and have adopted a strategic community investment plan under section 379H(d) that includes considerations for improving and expanding broadband service; with a high percentage of low income families or persons (as defined in section 501(b) of the Housing Act of 1949 ( 42 U.S.C. 1471(b) ); that are isolated from other significant population centers; or 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 agriculture; and that were developed with the participation of, and will receive a substantial portion of the funding for the project from, 2 or more stakeholders, including— State, local, and tribal governments; nonprofit institutions; community anchor institutions, such as— public libraries; elementary schools and secondary schools (as defined in section 8101 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7801 )); institutions of higher education; and health care facilities; private entities; philanthropic organizations; and cooperatives. In this paragraph, the term development costs means costs of— construction, including labor and materials; project applications; and other development activities, as determined by the Secretary. To be eligible for a grant under this section, in addition to the requirements of subsection (d), the project that is the subject of the grant shall— be carried out in a proposed service territory in which not less than 90 percent of the households are unserved; and not concurrently receive any other broadband grant administered by the Rural Utilities Service. Except as provided in subparagraph (D), the amount of any grant made under this section shall not exceed— 75 percent of the total project cost with respect to an area with a density of fewer than 7 people per square mile; 50 percent of the total project cost with respect to an area with a density of 7 or more and fewer than 12 people per square mile; and 25 percent of the total project cost with respect to an area with a density of 12 or more and 20 or fewer people per square mile. The Secretary may— make grants of up to 75 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 described in paragraph (2)(A)(i); or a rural community described in any of subclauses
(I)through
(IV)of paragraph (2)(B)(i); and make modifications of the density thresholds described in subparagraph (C), in order to ensure that funds provided under this section are best utilized to provide broadband service in communities that are the most rural in character. The Secretary shall establish an application process for grants under this section that— permits a single application for a grant and a loan under title I, II, or this title that is associated with such grant; and provides a single decision to award such grant and such loan. When determining population density under this section, the Secretary shall prescribe a calculation method which— utilizes publicly available data; and includes only those areas in which the applicant is able to meet the service requirements under this section, as determined by the Secretary. In the case of loan guarantees issued or modified under this section, the Secretary shall charge and collect from the lender fees in such amounts as to bring down the costs of subsidies for guaranteed loans, except that such fees shall not act as a bar to participation in the programs nor be inconsistent with current practices in the marketplace. ; in subsection (d)— in paragraph (1)— in subparagraph (A)— in the matter preceding clause (i), by striking loan or and inserting grant, loan, or ; by striking clause
(i)and inserting the following: demonstrate the ability to furnish or improve service in order to meet the broadband buildout requirements established under subsection (e)(4) in all or part of an unserved or underserved rural area; . in clause (ii), by striking a loan application and inserting an application ; and in clause (iii)— by striking service and inserting infrastructure ; by striking loan the first place it appears; by striking 3 and inserting 5 ; and by striking proceeds from the loan made or guaranteed under this section are and inserting assistance under this section is ; and in subparagraph (B), by striking
(k)and inserting
(j); and in paragraph (2)(A)— in the matter preceding clause (i)— by striking the proceeds of a loan made or guaranteed and inserting assistance ; and by striking for the loan or loan guarantee and inserting of the eligible entity ; and in clause (i)— by striking 15 percent and inserting 50 percent (in the case of loans or loan guarantees provided in accordance with subsection (g)(1)(A)) ; and by striking level of broadband service and inserting level of fixed broadband service, whether terrestrial or wireless, ; in paragraph (3)(A), by striking loan or and inserting grant, loan, or ; in paragraph (4), by striking a loan or loan guarantee and inserting assistance ; and by striking paragraphs
(5)through
(10)and inserting the following: The Secretary may provide to eligible entities described in paragraph
(1)that are applying for assistance under this section for a project described in subsection (c)(2)(A)(i) technical assistance and training— to prepare reports and surveys necessary to request grants, loans, and loan guarantees under this section for broadband deployment; to improve management, including financial management, relating to the proposed broadband deployment; to prepare applications for grants, loans, and loan guarantees under this section; or to assist with other areas of need identified by the Secretary. Not less than 3 percent and not more than 5 percent of amounts appropriated to carry out this section for a fiscal year shall be used for technical assistance and training under this paragraph. ; in subsection (e)— in paragraph (1)— in subparagraph (A), by striking 4-Mbps and inserting 25-Mbps ; and in subparagraph (B), by striking 1-Mbps and inserting 3-Mbps ; in paragraph (2)— by— striking the following: At ; and inserting the following: At ; by inserting and broadband buildout requirements under paragraph
(4)after
(1); and by striking subparagraph (B); and by adding at the end the following: The term broadband buildout requirement means the level of internet service an applicant receiving assistance under this section must agree, at the time the application is finalized, to provide for the duration of any project-related agreement between the applicant and the Department. Subject to subparagraph (C), the Secretary shall establish broadband buildout requirements for projects with agreement lengths of— 5 to 10 years; 11 to 15 years; 16 to 20 years; and more than 20 years. In establishing the broadband buildout requirements under subparagraph (B), the Secretary shall— utilize the same metrics used to define the minimum acceptable level of broadband service under paragraph (1); establish such requirements to reasonably ensure— the repayment of all loans and loan guarantees; and the financed network is technically capable of providing broadband service for the lifetime of any project-related agreement. 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 territory, the Secretary and the applicant may agree to utilize substitute standards for any unserved portion of the project. Any substitute service standards should continue to consider the best technology available to meet the needs of the residents in the unserved area. ; in subsection (f), by striking make a loan or loan guarantee and inserting provide assistance ; in subsection (g), by striking paragraph
(2)and redesignating paragraph
(3)as paragraph (2); by striking subsections
(i)and
(j)and inserting the following: The Secretary may use the funds appropriated for a grant under this title for the cost (as defined by section 502 of the Congressional Budget Act of 1974) of providing assistance under paragraph (2). When providing a grant under this title, the Secretary, at the sole discretion of the Secretary, may make— a subsidized loan, which shall bear a reduced interest rate at such a rate as the Secretary determines appropriate to meet the objectives of the program; or a payment assistance loan, which shall— require no interest and principal payments while the borrower is— in material compliance with the loan agreement; and meeting the milestones and objectives of the project agreed to under paragraph (3); and require such nominal periodic payments as the Secretary determines to be appropriate. With respect to payment assistance provided under paragraph (2), before entering into the agreement under which the payment assistance will be provided, the applicant and the Secretary shall agree to milestones and objectives of the project. The Secretary and the applicant may jointly agree to amend the milestones and objectives agreed to under paragraph (3). When deciding to utilize the payment assistance authority under paragraph
(2)the Secretary shall consider whether or not the payment assistance will— improve the compliance of the grantee with any commitments made through the grant agreement; promote the completion of the broadband project; protect taxpayer resources; and support the integrity of the broadband programs administered by the Secretary. The Secretary may not make a payment assistance loan under paragraph (2)(B) to an entity receiving a grant under this section that is also the recipient of a loan under title I or II that is associated with such grant. ; in subsection (k)(1)— by striking $25,000,000 and inserting $350,000,000 ; and by striking 2008 through 2018 and inserting 2019 through 2023 ; in subsection (l)— by striking loan or and inserting grant, or loan, or ; and by striking 2018 and inserting 2023 ; and by redesignating subsections
(k)and
(l)as subsections
(j)and (k), respectively.
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Sec. 6201
Access to broadband telecommunications services in rural areas
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