RBI Act of 2013

Summary: Rural Broadband Investment Act of 2013 or the RBI Act of 2013 - Suspends regulations of the Federal Communications Commission (FCC) that resulted in a revised method of determining levels of support for rural telephone carriers under the Universal Service Fund by allowing study area unseparated loop cost to be limited annually pursuant to a schedule announced by the Wireline Competition Bureau. (Thus, eliminates a distribution analysis method provided for in the FCC's Transformation Order known as the Report and Order and Further Notice of Proposed Rulemaking of the Federal Communications Commission adopted on October 27, 2011.) Requires the FCC to initiate a rulemaking to adopt a revised proposal for rural support that does not deprive a rural rate-of-return carrier (a rural telephone company that is an incumbent local exchange carrier not subject to price cap regulation) of the opportunity to recover reasonable investments and operating expenses incurred prior to the proposal's adoption. Directs the FCC, to the extent required under the Communications Act of 1934, to consult with: (1) the Federal-State Joint Board on Universal Service; and (2) if the limitations in the proposal submitted by the FCC to such Board result in a revision of the jurisdictional allocation of expenses, the Federal-State Joint Board on Separations. Directs the FCC to submit to Congress: (1) the revised proposal for rural support published in the notice of proposed rulemaking, and (2) a report that describes the amount of universal service funding necessary to achieve universal service objectives during the next 10 years. Requires the report to include a quantitative and qualitative analysis as well as an identification of the unique circumstances and resulting high-cost loop support required to provide and maintain universal service in Alaska and on tribal lands.  Sets forth interim limitations on study area total unseparated loop costs that are to apply until the final rule takes effect. Directs the FCC to amend regulations relating to high-cost loop support adjustments for rural rate-of-return carriers to require, beginning on January 1, 2012, the calculation of safety net additive support for such a carrier to include all just and reasonable investments made by the carrier prior to 2012.  Requires the FCC to grant a petition for a waiver submitted by a rural carrier negatively affected by a revision adopted in the October 2011 Transformation Order if such a waiver is necessary to ensure that the carrier is afforded a reasonable opportunity to recover the costs of providing universal service, including an equitable return on investments.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural Broadband Investment Act of 
2013'' or the ``RBI Act of 2013''.

SEC. 2. DEFINITIONS.

    In this Act--
            (1) the term ``applicable Federal-State Joint Board'' 
        means--
                    (A) the Federal-State Joint Board on Universal 
                Service; and
                    (B) if the limitations in the proposal submitted by 
                the Commission to the Federal-State Joint Board on 
                Universal Service under section 4(b)(1)(A) result in a 
                revision of the jurisdictional allocation of expenses, 
                the Federal-State Joint Board on Separations;
            (2) the term ``Commission'' means the Federal 
        Communications Commission;
            (3) 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 carriers;
            (4) the term ``rural carrier'' means--
                    (A) a rural rate-of-return carrier;
                    (B) a rural wireless carrier owned by a rural rate-
                of-return carrier; and
                    (C) a rural competitive local exchange carrier 
                owned by a rural rate-of-return carrier;
            (5) the term ``rural rate-of-return carrier'' means a rural 
        telephone company (as defined in section 153 of the 
        Communications Act of 1934 (47 U.S.C. 153)) that is a rate-of-
        return carrier (as defined in section 54.5 of title 47, Code of 
        Federal Regulations);
            (6) the term ``study area total unseparated loop cost'' 
        means the cost calculated under section 36.621 of title 47, 
        Code of Federal Regulations;
            (7) the term ``Transformation Order'' means the Report and 
        Order and Further Notice of Proposed Rulemaking of the Federal 
        Communications Commission adopted on October 27, 2011 (FCC 11-
        161); and
            (8) the term ``tribal lands'' has the meaning given the 
        term in section 54.400(e) of title 47, Code of Federal 
        Regulations.

SEC. 3. FINDINGS.

    Congress finds the following:
            (1) 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 2012.
            (2) The implementation of the Transformation Order, 
        including the utilization of a widely criticized regression 
        analysis used to determine levels of universal service support, 
        is creating significant uncertainty with respect to the 
        sufficiency and predictability of the universal service support 
        mechanisms, 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 States.
            (3) The intent of Congress under section 254 of the 
        Communications Act of 1934 (47 U.S.C. 254) is that the 
        Commission--
                    (A) consult with the Federal-State Joint Board on 
                Universal Service before adopting changes to 
                regulations that affect universal service high-cost 
                fund mechanisms; and
                    (B) adopt policies and regulations that establish 
                and maintain ``specific, predictable, and sufficient'' 
                support mechanisms to preserve and advance universal 
                service.
            (4) 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 
        deployment.
            (5) The Department of Agriculture has reported that demand 
        for Rural Utilities Service loans for broadband buildout has 
        plummeted in 2013, due in part to the uncertainty created by 
        the new rules and regulations set forth in the Transformation 
        Order.
            (6) Surveys of rural carriers indicate that nearly two-
        thirds of rural rate-of-return carriers are canceling or 
        postponing new broadband investments, while other reports 
        indicate that rural rate-of-return carriers are being forced to 
        increase consumer prices and reduce staff, creating ripple 
        effects for economies in rural areas of the United States.
            (7) Congressional hearings have demonstrated that the 
        approach of the Commission to the consideration, review, and 
        resolution of petitions for waivers from rules adopted under 
        the Transformation Order--
                    (A) is unduly burdensome and costly for small, 
                rural carriers and inconsistent with the established 
                policy and waiver standards of the Commission; and
                    (B) is consequently discouraging small, rural 
                carriers from requesting waivers and is creating 
                additional business uncertainties.
            (8) Congressional hearings have demonstrated that the 
        Commission can make adjustments to the Transformation Order to 
        address the adverse impact and business uncertainties 
        confronting small, rural carriers without affecting other 
        categories of carriers or increasing the Universal Service Fund 
        budget established in the Transformation Order.

SEC. 4. SUSPENSION AND REVISION OF PROVISION OF TRANSFORMATION ORDER.

    (a) Suspension.--Section 36.621(a)(5) of title 47, Code of Federal 
Regulations (relating to the annual limitation of study area total 
unseparated loop cost pursuant to a schedule announced by the Wireline 
Competition Bureau), shall have no force or effect.
    (b) Review and Revision.--
            (1) Publication of revised proposal for universal service 
        distribution to rural rate-of-return carriers.--
                    (A) Requirement to submit proposal.--Not later than 
                60 days after the effective date of this Act, the 
                Commission shall issue a notice of proposed rulemaking 
                to adopt a revised proposal for rural support.
                    (B) 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 (D) 
                of the revised proposal for rural support.
                    (C) Consultation with joint boards.--Before the 
                Commission issues a final rule under subparagraph (D) 
                to adopt a revised proposal for rural support, the 
                Commission shall consult with the applicable Federal-
                State Joint Board to the extent that such consultation 
                is required under the Communications Act of 1934 (47 
                U.S.C. 151 et seq.).
                    (D) Final rule adopting proposal.--Not earlier than 
                45 days and not later than 120 days after the date on 
                which the Commission issues the notice of proposed 
                rulemaking under subparagraph (A), the Commission shall 
                issue a final rule adopting a revised proposal for 
                rural support.
            (2) Report to congress.--Not later than 60 days after the 
        effective date of this Act, the Commission shall submit to the 
        Committee on Commerce, Science, and Transportation of the 
        Senate and the Committee on Energy and Commerce of the House of 
        Representatives--
                    (A) a report that contains the revised proposal for 
                rural support published in the notice of proposed 
                rulemaking under paragraph (1)(A); and
                    (B) a report that--
                            (i) describes the amount of universal 
                        service funding necessary to achieve universal 
                        service objectives during the 10-year period 
                        following the date on which the report is 
                        submitted; and
                            (ii) includes--
                                    (I) quantitative and qualitative 
                                analysis in support of the findings of 
                                the Commission under clause (i); and
                                    (II) 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 lands.
    (c) Interim Limitations.--
            (1) In general.--Not later than 30 days after the effective 
        date of this Act, the Commission shall establish interim 
        limitations on study area total unseparated loop costs by--
                    (A) 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 Order; and
                    (B) adjusting the universal service distribution of 
                high-cost loop support that results from the annual 
                distribution determined under paragraph (1) to 
                reflect--
                            (i) the revision to section 36.605 of title 
                        47, Code of Federal Regulations, required under 
                        section 5 of this Act; and
                            (ii) any revisions to responses to waiver 
                        petitions required under section 6 of this Act.
            (2) Duration.--The interim limitations established under 
        paragraph (1) shall be in effect until the date on which the 
        final rule required under subsection (b)(1)(D) takes effect.

SEC. 5. SAFETY NET ADDITIVE.

    The Commission shall amend section 36.605(a) of title 47, Code of 
Federal Regulations (relating to adjustments to high-cost loop support 
for rural rate-of-return carriers) to provide that, beginning on 
January 1, 2012, 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 2012.

SEC. 6. WAIVERS.

    (a) 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 Order.
    (b) Reasonable Opportunity To Recover Costs.--The Commission shall 
grant a petition for a waiver described in subsection (a) 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 service, including an 
equitable return on the investments the rural carrier made to provide 
universal service.
    (c) Time Limit for Consideration of Waiver Petition.--
            (1) In general.--Not later than 90 days after the date on 
        which the Commission receives a petition for a waiver, the 
        Commission shall grant or deny the petition.
            (2) 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 
        (1), the Commission shall be deemed to have granted the 
        petition.
            (3) Waiver petitions filed before effective date.--The 
        Commission shall reconsider, in accordance with this section, 
        any petition for a waiver relating to a revision to a 
        regulation adopted in the Transformation Order that--
                    (A) was submitted to the Commission during the 
                period beginning on November 18, 2011, and ending on 
                the day before the effective date of this Act; and
                    (B) is denied by the Commission.
    (d) Denial of Waiver Petition.--If the Commission denies a petition 
for a waiver, in whole or in part, the Commission shall identify with 
specificity--
            (1) any operating expenses of the requesting carrier that 
        the Commission determines unreasonable;
            (2) any investments made by the requesting carrier that the 
        Commission determines are not used and useful in the provision 
        of universal service; and
            (3) the underlying basis for any determination under 
        paragraph (1) or (2).

SEC. 7. EFFECTIVE DATE.

    This Act shall take effect 30 days after the date of enactment of 
this Act.