Promoting Exchanges for Enhanced Routing of Information so Networks are Great Act of 2018

Summary: Promoting Exchanges for Enhanced Routing of Information so Networks are Great Act of 2018 or the PEERING Act of 2018 This bill requires the Department of Commerce to award grants for entities to acquire real property and necessary equipment to establish a new Internet exchange facility in areas where there are no existing Internet exchange facilities, or to expand operations at an existing Internet exchange facility where there is only one Internet exchange facility. An Internet exchange facility is the physical infrastructure through which Internet service providers and content delivery networks exchange Internet traffic between their networks. The bill amends the Communications Act of 1934 to allow schools, libraries,&nbsp;and rural health care providers that receive funds to pay for telecommunications to use the funds to contract with&nbsp;a broadband provider to obtain a connection at an Internet exchange facility or to pay the costs for maintaining a connection at such a facility.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Promoting Exchanges for Enhanced 
Routing of Information so Networks are Great Act of 2018'' or the 
``PEERING Act of 2018''.

SEC. 2. NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION 
              GRANTS.

    (a) Grants.--On and after the first day of the first fiscal year 
beginning after the date on which the Assistant Secretary establishes 
rules and timelines under subsection (d), the Assistant Secretary shall 
award grants to entities to acquire real property and necessary 
equipment to--
            (1) establish a new internet exchange facility in a core 
        based statistical area in which, at the time the grant is made, 
        there are no existing internet exchange facilities; or
            (2) expand operations at an existing internet exchange 
        facility in a core based statistical area in which, at the time 
        the grant is made, there is only one internet exchange 
        facility.
    (b) Eligibility.--An entity may not receive a covered grant unless 
the entity certifies to the Assistant Secretary that the entity has 
sufficient interest from third-party entities that will use the 
internet exchange facility to be funded by the grant once the facility 
is established or operations are expanded, as applicable.
    (c) Federal Share.--The Federal share of the total cost of the 
establishment or expansion of operations at an internet exchange 
facility for which a covered grant is received may not exceed 50 
percent.
    (d) Applications.--
            (1) Rules and timelines.--Not later than 1 year after the 
        date of the enactment of this Act, the Assistant Secretary 
        shall establish rules and timelines for applications for 
        covered grants.
            (2) Third-party review.--To prevent fraud in the covered 
        grant program, the Assistant Secretary shall enter into a 
        contract with an independent third party under which the third 
        party reviews an application for a covered grant not later than 
        60 days after the date on which the application is submitted to 
        ensure that only an entity that is eligible for a covered grant 
        receives a covered grant.
    (e) Rule of Construction.--Nothing in this section shall be 
construed to authorize the Assistant Secretary to regulate, issue 
guidance for, or otherwise interfere with the activities at an internet 
exchange facility.
    (f) No Additional Funds Authorized.--No additional funds are 
authorized to be appropriated to carry out this section. This section 
shall be carried out using amounts otherwise authorized.

SEC. 3. USE OF E-RATE AND RURAL HEALTH CARE UNIVERSAL SERVICE SUPPORT.

    Section 254 of the Communications Act of 1934 (47 U.S.C. 254) is 
amended by adding at the end the following:
    ``(m) Use of E-Rate and Rural Health Care Support for Costs 
Relating to Internet Exchange Facility Connection.--
            ``(1) In general.--Notwithstanding any other provision of 
        law or regulation, including subpart F or G of part 54 of title 
        47, Code of Federal Regulations, a recipient of support under 
        such subpart F or G may receive support under such subpart--
                    ``(A) to contract with a broadband internet service 
                provider to obtain connection to an internet exchange 
                facility; or
                    ``(B) for the costs of maintaining a point of 
                presence at an internet exchange facility.
            ``(2) Rule of construction.--Nothing in this subsection 
        shall be construed to authorize the Commission to regulate, 
        issue guidance for, or otherwise interfere with the activities 
        at an internet exchange facility.
            ``(3) Internet exchange facility defined.--In this 
        subsection, the term `internet exchange facility' means 
        physical infrastructure through which internet service 
        providers and content delivery networks exchange internet 
        traffic between their networks.''.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Assistant secretary.--The term ``Assistant Secretary'' 
        means the Assistant Secretary of Commerce for Communications 
        and Information.
            (2) Core based statistical area.--The term ``core based 
        statistical area'' has the meaning given such term by the 
        Office of Management and Budget in the Notice of Decision 
        entitled ``2010 Standards for Delineating Metropolitan and 
        Micropolitan Statistical Areas'', published in the Federal 
        Register on June 28, 2010 (75 Fed. Reg. 37246), or any 
        successor to such Notice.
            (3) Covered grant.--The term ``covered grant'' means a 
        grant awarded under section 2(a).
            (4) Internet exchange facility.--The term ``internet 
        exchange facility'' means physical infrastructure through which 
        internet service providers and content delivery networks 
        exchange internet traffic between their networks.