A bill to improve broadband coverage and service throughout the United States, especially in rural and tribal areas, and spectrum coverage for public safety broadband communication services, and for other purposes.

Summary: Broadband Program Reauthorization Act of 2010 - Amends provisions of the Rural Electrification Act of 1936 concerning access to broadband telecommunications services in rural areas to authorize appropriations to cover the costs of grants, loans, and loan guarantees for broadband infrastructure in any area of the United States. Gives priority in making such grants, loans, and loan guarantees to projects that provide service to the highest proportion of rural residents that do not have access to broadband service and to project applications that will expand broadband opportunities in rural and tribal areas.

Permits, under the Broadband Technology Opportunities Program, entities that have received waiver authority from the Federal Communications Commission (FCC) to use the 763-768/793-798 MHz (700 MHz) public safety broadband spectrum to apply for funding. Authorizes appropriations for such Program.

Amends the Internal Revenue Code to: (1) repeal the expensing and 60-month amortization of intangible drilling costs; (2) repeal percentage depletion for oil and gas properties; and (3) deny the deduction for income attributable to the domestic production of oil, natural gas, or its primary products.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Broadband Program Reauthorization 
Act of 2010''.

SEC. 2. USDA BROADBAND LOANS, LOAN GUARANTEES, AND GRANTS ESTABLISHED 
              UNDER PUBLIC LAW 111-5.

    Title VI of the Rural Electrification Act of 1936 (7 U.S.C. 950bb 
et seq.) is amended by adding at the end the following:

``SEC. 603. USDA BROADBAND LOANS, LOAN GUARANTEES, AND GRANTS 
              ESTABLISHED UNDER PUBLIC LAW 111-5.

    ``(a) Loans, Loan Guarantees, and Grants.--
            ``(1) In general.--The amounts authorized to be 
        appropriated under subsection (f) shall be used to cover the 
        cost of broadband loans and loan guarantees, as authorized by 
        section 601 of this Act and for grants (including for technical 
        assistance).
            ``(2) Definition.--For purposes of this subsection, the 
        cost of direct and guaranteed loans shall be as defined in 
        section 502 of the Congressional Budget Act of 1974.
    ``(b) Use of Funds.--
            ``(1) In general.--Notwithstanding section 601 of this Act, 
        the amounts authorized under this section shall be made 
        available for grants, loans, and loan guarantees for broadband 
        infrastructure in any area of the United States.
            ``(2) Limitation.--Of the amounts made available under this 
        section, at least 75 percent of the area to be served by a 
        project receiving funds from such grants, loans, or loan 
        guarantees shall be in a rural area without sufficient access 
        to high speed broadband service to facilitate rural economic 
        development, as determined by the Secretary of Agriculture.
            ``(3) Priority.--In awarding grants, loans, or loan 
        guarantees under this section, the Secretary of Agriculture 
        shall give priority--
                    ``(A) to project applications for broadband systems 
                that will deliver end users a choice of more than 1 
                service provider;
                    ``(B) to projects that provide service to the 
                highest proportion of rural residents that do not have 
                access to broadband service;
                    ``(C) for project applications from borrowers or 
                former borrowers under title II of the Rural 
                Electrification Act of 1936 and for project 
                applications that include such borrowers or former 
                borrowers;
                    ``(D) to project applications that demonstrate 
                that, if the application is approved, all project 
                elements will be fully funded;
                    ``(E) to project applications for activities that 
                can be completed if the requested funds are provided, 
                and to activities that can commence promptly following 
                approval; and
                    ``(F) to project applications that will expand 
                broadband opportunities in rural and tribal areas.
    ``(c) Coordination.--
            ``(1) Broadband technologies opportunity program.--No area 
        of a project funded with amounts made available under this 
        section may receive funding to provide broadband service under 
        the Broadband Technology Opportunities Program established 
        under Public Law 111-5.
            ``(2) FCC national broadband plan.--In carrying out this 
        section, the Secretary of Agriculture shall coordinate and 
        harmonize, to the extent possible, its activities with the 
        national broadband plan developed by the Federal Communications 
        Commission pursuant to Public Law 111-5.
    ``(d) Report.--The Secretary of Agriculture shall submit a report 
on planned spending and actual obligations describing the use of the 
funds made available under this section not later than 90 days after 
the date of enactment of this Act, and quarterly thereafter, until all 
funds are obligated, to the Committees on Appropriations of the House 
of Representatives and the Senate.
    ``(e) Clearinghouse Website.--The Secretary of Agriculture shall 
create and maintain a fully searchable database, accessible on the 
Internet at no cost to the public that shall serve as the clearinghouse 
for all information relating to loans, loan guarantees, and grants made 
in accordance with this section, including--
            ``(1) when any grant application was received and if such 
        application was accepted, when any amounts were awarded to such 
        applicant; and
            ``(2) information related to options, opportunities, 
        resources, successful public-private partnerships, funding 
        sources, and tutorials related to the expansion of broadband 
        infrastructure and service into rural and tribal areas.
    ``(f) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to the Secretary of Agriculture to carry out this section--
                    ``(A) $2,000,000,000 for fiscal year 2011; and
                    ``(B) such sums as necessary for each fiscal year 
                thereafter.
            ``(2) Availability.--Any amounts appropriated to carry out 
        this section shall remain available until expended.
    ``(g) Definitions.--
            ``(1) In general.--As used in this section:
                    ``(A) Rural area.--
                            ``(i) In general.--The term `rural area' 
                        means any area, as set forth in the most recent 
                        decennial census by the Census Bureau, which is 
                        not located within--
                                    ``(I) a city, town, or incorporated 
                                area that has a population of greater 
                                than 20,000 inhabitants; or
                                    ``(II) an urbanized area contiguous 
                                and adjacent to a city or town that has 
                                a population of greater than 50,000 
                                inhabitants.
                            ``(ii) Rule of construction.--For purposes 
                        of clause (i)(II), the term `urbanized area' 
                        means a densely populated territory, as defined 
                        in the most recent decennial census by the 
                        Census Bureau.
                    ``(B) Broadband.--The term `broadband' means 2-way 
                data transmission with advertised speeds of at least 
                768 kilobytes per second downstream and at least 200 
                kilobytes per second upstream to end users, or 
                providing sufficient capacity in a middle mile project 
                to support the provision of broadband service to end 
                users.
            ``(2) Unserved area; underserved area.--For purposes of the 
        grant program under this section, the Secretary of Agriculture 
        shall define--
                    ``(A) the term `unserved area' to mean any area 
                where at least 90 percent of households in that area 
                lack access to terrestrial broadband service; and
                    ``(B) the term `underserved area' to mean any 
                census tract, as determined by the most recent 
                decennial census by the Census Bureau, where--
                            ``(i) no more than 50 percent of households 
                        in a proposed funded service area have access 
                        to facilities-based, terrestrial broadband 
                        service at greater than 768 kilobytes per 
                        seconds;
                            ``(ii) no broadband provider advertises 
                        broadband transmission speeds of at least 3 
                        megabits per second downstream; or
                            ``(iii) the rate of broadband 
                        subscribership for the proposed funded service 
                        area is 40 percent of households or less.''.

SEC. 3. BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM ESTABLISHED UNDER 
              PUBLIC LAW 111-5.

    Section 6001 of Public Law 111-5 is amended--
            (1) in subsection (d)(2), by striking ``the end of fiscal 
        year 2010'' and inserting ``the date that is 2 years after the 
        date of enactment of the Broadband Program Reauthorization Act 
        of 2010'';
            (2) in subsection (f), by striking ``80 percent'' each 
        place that term appears and inserting ``75 percent'';
            (3) in subsection (h)--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``determining eligibility and'' before 
                ``awarding grants'';
                    (B) in paragraph (2)(D), by striking ``; and'' and 
                inserting a semicolon;
                    (C) by adding at the end the following:
            ``(4) give priority to applications that will expand 
        broadband opportunities in rural and tribal areas; and
            ``(5) allow entities that have received waiver authority 
        from the Federal Communications Commission to use the 763-768/
        793-798 MHz (700 MHz) public safety broadband spectrum to apply 
        for funding.'';
            (4) in subsection (i)--
                    (A) in paragraph (4), by striking ``; and'' and 
                inserting a semicolon; and
                    (B) in paragraph (5), by striking the period at the 
                end and inserting ``, including information related to 
                options, opportunities, resources, successful public-
                private partnerships, funding sources, and tutorials 
                related to the expansion of broadband infrastructure 
                and service into rural and tribal areas; and''; and
            (5) by adding at the end the following:
    ``(n) Coordination With FCC National Broadband Plan.--In carrying 
out this section, the Assistant Secretary shall coordinate and 
harmonize, to the extent possible, its activities with the national 
broadband plan developed by the Federal Communications Commission 
pursuant to title II of division A of this Act.
    ``(o) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to the Assistant Secretary to carry out this section--
                    ``(A) $2,000,000,000 for fiscal year 2011; and
                    ``(B) such sums as may be necessary for each fiscal 
                year thereafter.
            ``(2) Administrative expenses.--Of the amounts appropriated 
        under paragraph (1), not more than 6 percent shall be available 
        for each fiscal year to pay the administrative expenses to 
        carry out this section.
    ``(p) Definitions.--
            ``(1) In general.--As used in this section:
                    ``(A) Rural area.--
                            ``(i) In general.--The term `rural area' 
                        means any area, as set forth in the most recent 
                        decennial census by the Census Bureau, which is 
                        not located within--
                                    ``(I) a city, town, or incorporated 
                                area that has a population of greater 
                                than 20,000 inhabitants; or
                                    ``(II) an urbanized area contiguous 
                                and adjacent to a city or town that has 
                                a population of greater than 50,000 
                                inhabitants.
                            ``(ii) Rule of construction.--For purposes 
                        of clause (i)(II), the term `urbanized area' 
                        means a densely populated territory, as defined 
                        in the most recent decennial census by the 
                        Census Bureau.
                    ``(B) Broadband.--The term `broadband' means 2-way 
                data transmission with advertised speeds of at least 
                768 kilobytes per second downstream and at least 200 
                kilobytes per second upstream to end users, or 
                providing sufficient capacity in a middle mile project 
                to support the provision of broadband service to end 
                users.
            ``(2) Unserved area; underserved area.--For purposes of the 
        grant program under this section, the Assistant Secretary shall 
        define--
                    ``(A) the term `unserved area' to mean any area 
                where at least 90 percent of households in that area 
                lack access to terrestrial broadband service; and
                    ``(B) the term `underserved area' to mean any 
                census tract, as determined by the most recent 
                decennial census by the Census Bureau, where--
                            ``(i) no more than 50 percent of households 
                        in a proposed funded service area have access 
                        to facilities-based, terrestrial broadband 
                        service at greater than 768 kilobytes per 
                        seconds;
                            ``(ii) no broadband provider advertises 
                        broadband transmission speeds of at least 3 
                        megabits per second downstream; or
                            ``(iii) the rate of broadband 
                        subscribership for the proposed funded service 
                        area is 40 percent of households or less.''.

SEC. 4. OFFSETS.

    (a) Repeal of Expensing and 60-Month Amortization of Intangible 
Drilling Costs.--Subsection (c) of section 263 of the Internal Revenue 
Code of 1986 is amended by striking the period at the end of the third 
sentence and inserting ``, or to any costs paid or incurred after 
December 31, 2010.''.
    (b) Repeal of Percentage Depletion for Oil and Gas Wells.--
            (1) In general.--Section 613 of the Internal Revenue Code 
        of 1986 is amended by adding at the end the following new 
        subsection:
    ``(f) Termination of Percentage Depletion for Oil and Gas 
Properties.--In the case of oil and gas properties, this section shall 
not apply to any taxable year beginning after December 31, 2010.''.
            (2) Limitations on percentage depletion in case of oil and 
        gas wells.--Section 613A of such Code is amended by adding at 
        the end the following new subsection:
    ``(f) Termination.--This section shall not apply to any taxable 
year beginning after December 31, 2010.''.
    (c) Denial of Deduction for Income Attributable to Domestic 
Production of Oil, Natural Gas, or Primary Products Thereof.--
            (1) In general.--Subparagraph (B) of section 199(c)(4) of 
        the Internal Revenue Code of 1986 is amended by striking ``or'' 
        at the end of clause (ii), by striking the period at the end of 
        clause (iii) and inserting ``, or'', and by inserting after 
        clause (iii) the following new clause:
                            ``(iv) the production, refining, 
                        processing, transportation, or distribution of 
                        oil, natural gas, or any primary product 
                        thereof.''.
            (2) Primary product.--Section 199(c)(4)(B) of such Code is 
        amended by adding at the end the following flush sentence:
                ``For purposes of clause (iv), the term `primary 
                product' has the same meaning as when used in section 
                927(a)(2)(C), as in effect before its repeal.''.
            (3) Conforming amendments.--
                    (A) Section 199(c)(4) of such Code is amended--
                            (i) in subparagraph (A)(i)(III) by striking 
                        ``electricity, natural gas,'' and inserting 
                        ``electricity'', and
                            (ii) in subparagraph (B)(ii) by striking 
                        ``electricity, natural gas,'' and inserting 
                        ``electricity''.
                    (B) Section 199(d) of such Code is amended by 
                striking paragraph (9) and by redesignating paragraph 
                (10) as paragraph (9).
            (4) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after December 31, 2010.