Internet Exchange and Submarine Cable Act of 2020

To direct the Assistant Secretary of Commerce for Communications and Information to make grants for the establishment or expansion of internet exchange facilities, and for other purposes. 1. Short title This Act may be cited as the Internet Exchange Act of 2019 2. Definitions In this Act: (1) Assistant Secretary The term Assistant Secretary (2) Core based statistical area The term core based statistical area 2010 Standards for Delineating Metropolitan and Micropolitan Statistical Areas (3) Covered grant The term covered grant (4) Internet exchange facility The term internet exchange facility 3. 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 awarded, 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 awarded, there is only 1 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 of, or expansion of operations at, an internet exchange facility for which a covered grant is awarded may not exceed 50 percent. (d) Applications (1) Rules and timelines Not later than 1 year after the date of 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. 4. Use of E-Rate and Rural Health Care universal service support Section 254 of the Communications Act of 1934 ( 47 U.S.C. 254 (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 (or any successor regulation), a recipient of support under such subpart F or G may receive support under that 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 . 1. Short title This Act may be cited as the Internet Exchange and Submarine Cable Act of 2020 2. Definitions In this Act: (1) Assistant Secretary The term Assistant Secretary (2) Core based statistical area The term core based statistical area 2010 Standards for Delineating Metropolitan and Micropolitan Statistical Areas (3) Covered grant The term covered grant (4) Indian Tribe The term Indian Tribe (A) has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5304 (B) includes a Native Hawaiian organization, as that term is defined in section 6207 of the Native Hawaiian Education Act ( 20 U.S.C. 7517 (5) Internet exchange facility The term internet exchange facility (6) State The term State 47 U.S.C. 153 (7) Submarine cable landing station The term submarine cable landing station An Act relating to the landing and operation of submarine cables in the United States 47 U.S.C. 34 Cable Landing Licensing Act 3. Internet exchange facility grants (a) Grants Not later than 1 year after the date on which amounts are made available under section 6, 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 awarded, 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 awarded, there is only 1 internet exchange facility. (b) Eligibility To be eligible to receive a covered grant, an entity shall— (1) have 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; (2) have sovereign control over the land or building in which the internet exchange facility is to be housed; (3) provide evidence of direct conduit, duct, and manhole access to public rights-of-way; (4) have a plan to establish security protocols for the internet exchange facility to prevent physical or electronic intrusion from unauthorized users; and (5) provide other information required by the Assistant Secretary to protect against waste, fraud, or abuse. (c) Federal share The Federal share of the total cost of the establishment of, or expansion of operations at, an internet exchange facility for which a covered grant is awarded may not exceed 50 percent. (d) Grant amount The amount of a covered grant may not exceed $3,000,000. (e) Applications (1) Rules and timelines Not later than 1 year after the date of enactment of this Act, the Assistant Secretary shall establish rules and timelines for applications for— (A) covered grants; and (B) grants under section 4. (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. (f) 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. 4. Submarine cable landing station grants Not later than 1 year after the date on which amounts are made available under section 6, and in accordance with the rules and timelines established under section 3(e)(1), the Assistant Secretary shall award grants to States and Indian Tribes to build infrastructure and acquire necessary equipment to establish or expand an open-access, carrier-neutral submarine cable landing station that serves a military facility. 5. Report Not later than 5 years after the date of enactment of this Act, and annually thereafter for 5 years, the Assistant Secretary shall submit a report on outcomes of grants awarded under this Act to— (1) the Committee on Commerce, Science, and Transportation of the Senate; and (2) the Committee on Energy and Commerce of the House of Representatives. 6. Authorization of appropriations (a) In general There is authorized to be appropriated $35,000,000 to carry out sections 3 and 4. (b) Limitation The Assistant Secretary may not use more than 10 percent of the amounts made available under subsection (a) to administer and report on the outcomes of grants awarded under this Act. 7. Return of certain grant amounts The Assistant Secretary may require a recipient of a grant awarded under section 3 or 4 to return all or a portion of the grant amount if there is evidence of waste, fraud, or abuse of grant funds by the recipient. December 15, 2020 Reported with an amendment

Summary: Internet Exchange and Submarine Cable Act of 2020 This bill requires the National Telecommunications and Information Administration (NTIA) to award grants for the establishment and expansion of facilities through which internet service providers and content delivery networks exchange internet traffic (internet exchange facilities) in unserved or underserved areas. The NTIA must also award grants to states and Native American tribes to build infrastructure and acquire necessary equipment to establish or expand an open-access, carrier-neutral submarine cable landing station that serves a military facility.