IB 
Union Calendar No. 502 
113TH CONGRESS 
2D SESSION 
H. R. 3674 
[Report No. 113–670, Part I] 
To amend the National Telecommunications and Information Administration 
Organization Act to provide incentives for the reallocation of Federal 
Government spectrum for commercial use, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 9, 2013 
Mr. GUTHRIE (for himself, Ms. MATSUI, Mr. WAXMAN, Mr. WALDEN, and Ms. 
ESHOO) introduced the following bill; which was referred to the Com-
mittee on Energy and Commerce, and in addition to the Committee on 
Armed Services, for a period to be subsequently determined by the Speak-
er, in each case for consideration of such provisions as fall within the ju-
risdiction of the committee concerned 
DECEMBER 12, 2014 
Reported from the Committee on Energy and Commerce 
DECEMBER 12, 2014 
The Committee on Armed Services discharged; committed to the Committee 
of the Whole House on the State of the Union and ordered to be printed 
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A BILL 
To amend the National Telecommunications and Information 
Administration Organization Act to provide incentives 
for the reallocation of Federal Government spectrum for 
commercial use, and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Federal Spectrum In-
centive Act of 2013’’. 
SEC. 2. FEDERAL SPECTRUM INCENTIVES. 
(a) NOTICE TO COMMISSION.— 
(1) IN GENERAL.—Section 113(g)(4) of the Na-
tional Telecommunications and Information Admin-
istration Organization Act (47 U.S.C. 923(g)(4)) is 
amended— 
(A) by striking the heading and inserting 
‘‘NOTICE TO COMMISSION.—’’; 
(B) in the second sentence of subpara-
graph (A), by striking ‘‘shall notify the Com-
mission’’ and all that follows and inserting the 
following: ‘‘shall notify the Commission— 
‘‘(i) of estimated relocation or sharing 
costs and timelines for such relocation or 
sharing; or 
‘‘(ii) that, instead of relocation or 
sharing costs under this subsection and 
section 118, a Federal entity will receive 
payment under section 120 because such 
entity is— 
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‘‘(I) discontinuing the operations 
that the Federal entity conducts on 
such eligible frequencies without relo-
cating such operations to other fre-
quencies; or 
‘‘(II) relocating such operations 
to frequencies assigned to another 
Federal entity in order for such enti-
ties to share such frequencies.’’; and 
(C) by adding at the end the following: 
‘‘(D) This subsection and section 118 shall 
not apply with respect to the discontinuance of 
operations on eligible frequencies or the reloca-
tion of such operations by a Federal entity after 
the Commission receives notice under subpara-
graph (A)(ii) with respect to such discontinu-
ance or relocation.’’. 
(2) 
CONFORMING
AMENDMENTS.—Section 
113(g) of the National Telecommunications and In-
formation Administration Organization Act (47 
U.S.C. 923(g)) is amended— 
(A) in paragraph (3)(A)(iii)(I), by striking 
‘‘paragraph (4)(A)’’ and inserting ‘‘paragraph 
(4)(A)(i)’’; 
(B) in paragraph (4)— 
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(i) in subparagraph (B), by striking 
‘‘subparagraph (A)’’ and inserting ‘‘sub-
paragraph (A)(i)’’; and 
(ii) in subparagraph (C), by striking 
‘‘subparagraphs (A) and (B)’’ and insert-
ing ‘‘subparagraphs (A)(i) and (B)’’; and 
(C) in paragraph (5), by striking ‘‘para-
graph 
(4)(A)’’ 
and 
inserting 
‘‘paragraph 
(4)(A)(i)’’. 
(b) TRANSITION PLANS.—Section 113(h) of the Na-
tional Telecommunications and Information Administra-
tion Organization Act (47 U.S.C. 923(h)) is amended— 
(1) in the heading, by striking ‘‘RELOCATION 
OR SHARING’’; 
(2) by amending paragraph (1) to read as fol-
lows: 
‘‘(1) DEVELOPMENT OF TRANSITION PLAN BY 
FEDERAL ENTITY.— 
‘‘(A) IN
GENERAL.—Not later than 240 
days before the commencement of any auction 
of eligible frequencies described in subsection 
(g)(2), a Federal entity authorized to use any 
such frequency shall submit to the NTIA and 
to the Technical Panel established by paragraph 
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(3) a transition plan in which the Federal enti-
ty— 
‘‘(i) declares the intention of such en-
tity— 
‘‘(I) to share such eligible fre-
quencies with a non-Federal user or 
to relocate to other frequencies, and 
to receive relocation or sharing costs 
from the Spectrum Relocation Fund 
established by section 118; or 
‘‘(II) to discontinue the oper-
ations that the Federal entity con-
ducts on such eligible frequencies 
without relocating such operations to 
other frequencies or to relocate such 
operations to frequencies assigned to 
another Federal entity in order for 
such entities to share such fre-
quencies, and to receive payment from 
the Federal Spectrum Incentive Fund 
established by section 120; and 
‘‘(ii) describes how the entity will im-
plement the relocation, sharing, or dis-
continuance arrangement. 
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communications and Information Administration Organi-
zation Act (47 U.S.C. 923(j)) is amended— 
(1) in the heading, by inserting ‘‘OR DIS-
CONTINUANCE’’ after ‘‘RELOCATION’’; and 
(2) by inserting ‘‘or discontinuance of the oper-
ations that the Federal entity conducts on the band’’ 
after ‘‘from the band’’ each place it appears. 
(d) DEPOSIT
OF
AUCTION
PROCEEDS.—Section 
309(j)(8) of the Communications Act of 1934 (47 U.S.C. 
309(j)(8)) is amended— 
(1) 
in 
subparagraph 
(C)(i), 
by 
striking 
‘‘(D)(ii)’’ and inserting ‘‘(D)(ii), (D)(iii)’’; and 
(2) in subparagraph (D)— 
(A) in clause (i), by striking ‘‘clause (ii)’’ 
and inserting ‘‘clauses (ii) and (iii)’’; and 
(B) by adding at the end the following: 
‘‘(iii) FEDERAL
SPECTRUM
INCEN-
TIVES.—Notwithstanding 
subparagraph 
(A) and except as provided in subpara-
graph (B) and clause (ii) of this subpara-
graph, in the case of proceeds (including 
deposits and upfront payments from suc-
cessful bidders) attributable to the auction 
of eligible frequencies described in section 
113(g)(2) of the National Telecommuni-
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cations and Information Administration 
Organization Act with respect to which the 
Commission has received notice under sec-
tion 113(g)(4)(A)(ii) of such Act, 1 per-
cent of such proceeds shall be deposited in 
the Federal Spectrum Incentive Fund es-
tablished by section 120 of such Act and 
shall be available in accordance with such 
section. The remainder of such proceeds 
shall be deposited in the general fund of 
the Treasury, where such proceeds shall be 
dedicated for the sole purpose of deficit re-
duction.’’. 
(e) FEDERAL SPECTRUM INCENTIVE FUND.—Part B 
of the National Telecommunications and Information Ad-
ministration Organization Act (47 U.S.C. 921 et seq.) is 
amended by adding at the end the following: 
‘‘SEC. 120. FEDERAL SPECTRUM INCENTIVE FUND. 
‘‘(a) ESTABLISHMENT.—There is established in the 
Treasury of the United States a fund to be known as the 
Federal Spectrum Incentive Fund (in this section referred 
to as the ‘Fund’), which shall be administered by the Of-
fice of Management and Budget (in this section referred 
to as ‘OMB’), in consultation with the NTIA. 
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‘‘(b) TRANSFER OF FUNDS.—The Director of OMB 
shall transfer from the Fund to a Federal entity an 
amount equal to the amount deposited in accordance with 
section 309(j)(8)(D)(iii) of the Communications Act of 
1934 that is attributable to the auction of eligible fre-
quencies described in section 113(g)(2) of this Act being 
vacated by such entity. Such amount shall be available to 
the Federal entity in accordance with subsection (c) and 
shall remain available until expended. 
‘‘(c) USE OF FUNDS.—A Federal entity may use an 
amount transferred under subsection (b) for the following 
purposes: 
‘‘(1) OFFSET OF SEQUESTRATION.—Any pur-
poses permitted under the terms and conditions of 
an appropriations account of the Federal entity that 
was subject to sequestration for any fiscal year 
under the Balanced Budget and Emergency Deficit 
Control Act of 1985. The amount used for such pur-
poses under this paragraph may not exceed the 
amount by which the amount available to such entity 
under such account was reduced by sequestration for 
such fiscal year. 
‘‘(2) TRANSFER TO INCUMBENT FEDERAL EN-
TITY.—In the case of a Federal entity that is relo-
cating operations to frequencies assigned to an in-
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cumbent Federal entity in order for such entities to 
share such frequencies, to transfer an amount to the 
incumbent Federal entity for any purposes permitted 
under this subsection (except this paragraph). The 
transferred amount shall remain available to the in-
cumbent Federal entity until expended. 
‘‘(d) PROHIBITION ON DUPLICATIVE PAYMENTS.—If 
the 
Commission 
receives 
notice 
under 
section 
113(g)(4)(A)(ii) of a discontinuance of operations on or 
relocation from eligible frequencies by a Federal entity 
that has received, from the Spectrum Relocation Fund in 
accordance with section 118(d)(3), relocation or sharing 
costs related to pre-auction estimates or research with re-
spect to such frequencies, the Director of OMB shall de-
duct from the amount to be transferred to such entity 
under subsection (b) an amount equal to such costs and 
shall transfer such amount to the Spectrum Relocation 
Fund.’’. 
(f) DEPARTMENT OF DEFENSE SPECTRUM.—Section 
1062(b) of the National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106–65) does not apply to 
frequencies with respect to which the Commission has re-
ceived notice under section 113(g)(4)(A)(ii) of the Na-
tional Telecommunications and Information Administra-
tion Organization Act (47 U.S.C. 923(g)(4)(A)(ii)). 
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SEC. 3. COSTS OF INCUMBENT FEDERAL ENTITIES RE-
LATED TO SPECTRUM SHARING. 
(a) DESCRIPTION
OF ELIGIBLE FEDERAL ENTI-
TIES.—Section 113(g)(1) of the National Telecommuni-
cations and Information Administration Organization Act 
(47 U.S.C. 923(g)(1)) is amended— 
(1) by striking ‘‘authorized to use a band of eli-
gible frequencies described in paragraph (2)’’; 
(2) by striking ‘‘spectrum frequencies’’ the first 
place it appears and inserting ‘‘eligible frequencies 
described in paragraph (2)’’; and 
(3) by striking ‘‘spectrum frequencies’’ the sec-
ond place it appears and inserting ‘‘eligible fre-
quencies described in such paragraph’’. 
(b) DEFINITION
OF
RELOCATION
OR
SHARING 
COSTS.—Section 113(g)(3)(A) of the National Tele-
communications and Information Administration Organi-
zation Act (47 U.S.C. 923(g)(3)(A)) is amended— 
(1) in clause (iv)(II), by striking ‘‘and’’ at the 
end; 
(2) in clause (v), by striking the period and in-
serting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(vi) the costs incurred by an incum-
bent Federal entity to accommodate shar-
ing the spectrum frequencies assigned to 
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such entity with a Federal entity the oper-
ations of which are being relocated from el-
igible frequencies described in paragraph 
(2), unless the Commission receives notice 
under paragraph (4)(A)(ii)(II) with respect 
to the relocation of such operations.’’. 
(c) SPECTRUM RELOCATION FUND.—Section 118 of 
the National Telecommunications and Information Ad-
ministration Organization Act (47 U.S.C. 928) is amend-
ed— 
(1) in subsection (c), by striking ‘‘with respect 
to’’ and all that follows and inserting the following: 
‘‘with respect to— 
‘‘(1) relocation from or sharing of such eligible 
frequencies; or 
‘‘(2) in the case of an incumbent Federal entity 
described in section 113(g)(3)(A)(vi), accommo-
dating sharing the spectrum frequencies assigned to 
such entity with a Federal entity the operations of 
which are being relocated from such eligible fre-
quencies.’’; and 
(2) in subsection (d)— 
(A) in paragraph (2)(A), by inserting ‘‘(or, 
in the case of an incumbent Federal entity de-
scribed in section 113(g)(3)(A)(vi), the eligible 
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Federal entity the operations of which are being 
relocated has submitted such a plan)’’ after 
‘‘transition plan’’; and 
(B) in paragraph (3)(B)(ii), by inserting 
‘‘except in the case of an incumbent Federal en-
tity described in section 113(g)(3)(A)(vi),’’ be-
fore ‘‘the transition plan’’. 
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Union Calendar No. 502 
113TH CONGRESS 
2D SESSION 
H. R. 3674 
[Report No. 113–670, Part I] 
A BILL 
To amend the National Telecommunications and 
Information Administration Organization Act to 
provide incentives for the reallocation of Federal 
Government spectrum for commercial use, and 
for other purposes. 
DECEMBER 12, 2014 
Reported from the Committee on Energy and Commerce 
DECEMBER 12, 2014 
The Committee on Armed Services discharged; committed 
to the Committee of the Whole House on the State of 
the Union and ordered to be printed 
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