PEERING Act of 2018

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 Promoting Exchanges for Enhanced Routing of Information so Networks are Great Act of 2018 PEERING Act of 2018 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. 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 (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 . 4. 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

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, and rural health care providers that receive funds to pay for telecommunications to use the funds to contract with 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.