Sec. 1. Short title; table of contents. 
Sec. 2. Definitions. 
Sec. 3. Determination of eligibility and project selection. 
Sec. 4. Secured loans. 
Sec. 5. Lines of credit. 
Sec. 6. Alternative prudential lending standards for small projects. 
Sec. 7. Program administration. 
Sec. 8. State and local permits. 
Sec. 9. Regulations. 
Sec. 10. Funding. 
Sec. 11. Reports to Congress. 
SEC. 2. DEFINITIONS. 
In this Act: 
(1) ASSISTANT SECRETARY.—The term ‘‘Assist-
ant Secretary’’ means the Assistant Secretary of 
Commerce for Communications and Information. 
(2) BIFIA PROGRAM.—The term ‘‘BIFIA pro-
gram’’ means the broadband infrastructure finance 
and innovation program established under this Act. 
(3) 
BROADBAND
SERVICE.—The 
term 
‘‘broadband service’’— 
(A) means broadband internet access serv-
ice that is a mass-market retail service, or a 
service provided to an entity described in para-
graph (16)(B)(ii), by wire or radio that pro-
vides the capability to transmit data to and re-
ceive data from all or substantially all internet 
endpoints, including any capabilities that are 
incidental to and enable the operation of the 
communications service; 
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(B) includes any service that is a func-
tional equivalent of the service described in sub-
paragraph (A); and 
(C) does not include dial-up internet access 
service. 
(4) ELIGIBLE PROJECT COSTS.—The term ‘‘eli-
gible project costs’’ means amounts substantially all 
of which are paid by, or for the account of, an obli-
gor in connection with a project, including the cost 
of— 
(A) development phase activities, including 
planning, feasibility analysis, revenue fore-
casting, environmental review, historic preserva-
tion review, permitting, preliminary engineering 
and design work, and other preconstruction ac-
tivities; 
(B) construction and deployment phase ac-
tivities, including— 
(i) construction, reconstruction, reha-
bilitation, replacement, and acquisition of 
real property (including land relating to 
the project and improvements to land), 
equipment, instrumentation, networking 
capability, hardware and software, and dig-
ital network technology; 
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(ii) environmental mitigation; and 
(iii) construction contingencies; and 
(C) capitalized interest necessary to meet 
market requirements, reasonably required re-
serve funds, capital issuance expenses, and 
other carrying costs during construction and 
deployment. 
(5) FEDERAL
AGENCY.—The term ‘‘Federal 
agency’’ has the meaning given the term ‘‘agency’’ 
in section 551 of title 5, United States Code. 
(6) FEDERAL CREDIT INSTRUMENT.—The term 
‘‘Federal credit instrument’’ means a secured loan, 
loan guarantee, or line of credit authorized to be 
made available under the BIFIA program with re-
spect to a project. 
(7) INDIAN TRIBE.—The term ‘‘Indian Tribe’’ 
has the meaning given such term in section 4(e) of 
the Indian Self-Determination and Education Assist-
ance Act (25 U.S.C. 5304(e)). 
(8) INSTITUTION OF HIGHER EDUCATION.—The 
term ‘‘institution of higher education’’— 
(A) has the meaning given the term in sec-
tion 101 of the Higher Education Act of 1965 
(20 U.S.C. 1001); and 
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(B) includes a postsecondary vocational in-
stitution. 
(9) INVESTMENT-GRADE
RATING.—The term 
‘‘investment-grade rating’’ means a rating of BBB 
minus, Baa3, bbb minus, BBB (low), or higher as-
signed by a rating agency to project obligations. 
(10) LENDER.—The term ‘‘lender’’ means any 
non-Federal qualified institutional buyer (as defined 
in section 230.144A(a) of title 17, Code of Federal 
Regulations (or any successor regulation), known as 
Rule 144A(a) of the Securities and Exchange Com-
mission and issued under the Securities Act of 1933 
(15 U.S.C. 77a et seq.)), including— 
(A) a qualified retirement plan (as defined 
in section 4974(c) of the Internal Revenue Code 
of 1986) that is a qualified institutional buyer; 
and 
(B) a governmental plan (as defined in 
section 414(d) of the Internal Revenue Code of 
1986) that is a qualified institutional buyer. 
(11) LETTER OF INTEREST.—The term ‘‘letter 
of interest’’ means a letter submitted by a potential 
applicant prior to an application for credit assistance 
in a format prescribed by the Assistant Secretary on 
the website of the BIFIA program that— 
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(A) describes the project and the location, 
purpose, and cost of the project; 
(B) outlines the proposed financial plan, 
including the requested credit assistance and 
the proposed obligor; 
(C) provides a status of environmental re-
view; and 
(D) provides information regarding satis-
faction of other eligibility requirements of the 
BIFIA program. 
(12) LINE OF CREDIT.—The term ‘‘line of cred-
it’’ means an agreement entered into by the Assist-
ant Secretary with an obligor under section 5 to pro-
vide a direct loan at a future date upon the occur-
rence of certain events. 
(13) LOAN GUARANTEE.—The term ‘‘loan guar-
antee’’ means any guarantee or other pledge by the 
Assistant Secretary to pay all or part of the prin-
cipal of and interest on a loan or other debt obliga-
tion issued by an obligor and funded by a lender. 
(14) OBLIGOR.—The term ‘‘obligor’’ means a 
party that— 
(A) is primarily liable for payment of the 
principal of or interest on a Federal credit in-
strument; and 
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(B) may be a corporation, company, part-
nership, joint venture, trust, or governmental 
entity, agency, or instrumentality. 
(15) POSTSECONDARY
VOCATIONAL
INSTITU-
TION.—The term ‘‘postsecondary vocational institu-
tion’’ has the meaning given the term in section 
102(c) of the Higher Education Act of 1965 (20 
U.S.C. 1002(c)). 
(16) PROJECT.—The term ‘‘project’’ means a 
project— 
(A) to construct and deploy infrastructure 
for the provision of broadband service; and 
(B) that the Assistant Secretary deter-
mines will— 
(i) provide access or improved access 
to broadband service to consumers residing 
in areas of the United States that have no 
access to broadband service or do not have 
access to broadband service offered— 
(I) with a download speed of at 
least 100 megabits per second; 
(II) with an upload speed of at 
least 100 megabits per second; and 
(III) with latency that is suffi-
ciently low to allow multiple, simulta-
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neous, real-time, interactive applica-
tions; or 
(ii) provide access or improved access 
to broadband service to— 
(I) schools, libraries, medical and 
healthcare providers, community col-
leges and other institutions of higher 
education, museums, religious organi-
zations, and other community support 
organizations and entities to facilitate 
greater use of broadband service by or 
through such organizations; 
(II) organizations and agencies 
that provide outreach, access, equip-
ment, and support services to facili-
tate greater use of broadband service 
by low-income, unemployed, aged, and 
otherwise vulnerable populations; 
(III) job-creating strategic facili-
ties located within a State-designated 
economic zone, Economic Develop-
ment District designated by the De-
partment of Commerce, Empower-
ment Zone designated by the Depart-
ment of Housing and Urban Develop-
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ment, or Enterprise Community des-
ignated by the Department of Agri-
culture; or 
(IV) public safety agencies. 
(17) 
PROJECT
OBLIGATION.—The 
term 
‘‘project obligation’’ means any note, bond, deben-
ture, or other debt obligation issued by an obligor in 
connection with the financing of a project, other 
than a Federal credit instrument. 
(18) PUBLIC
AUTHORITY.—The term ‘‘public 
authority’’ means a Federal, State, county, town or 
township, Indian Tribe, municipal, or other local 
government or instrumentality with authority to fi-
nance, build, operate, or maintain infrastructure for 
the provision of broadband service. 
(19) RATING AGENCY.—The term ‘‘rating agen-
cy’’ means a credit rating agency registered with the 
Securities and Exchange Commission as a nationally 
recognized statistical rating organization (as defined 
in section 3(a) of the Securities Exchange Act of 
1934 (15 U.S.C. 78c(a))). 
(20) SECURED
LOAN.—The term ‘‘secured 
loan’’ means a direct loan or other debt obligation 
issued by an obligor and funded by the Assistant 
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Secretary in connection with the financing of a 
project under section 4. 
(21) 
SMALL
PROJECT.—The 
term 
‘‘small 
project’’ means a project having eligible project costs 
that are reasonably anticipated not to equal or ex-
ceed $20,000,000. 
(22) STATE.—The term ‘‘State’’ has the mean-
ing given the term in section 3 of the Communica-
tions Act of 1934 (47 U.S.C. 153). 
(23) SUBSIDY
AMOUNT.—The term ‘‘subsidy 
amount’’ means the amount of budget authority suf-
ficient to cover the estimated long-term cost to the 
Federal Government of a Federal credit instru-
ment— 
(A) calculated on a net present value basis; 
and 
(B) excluding administrative costs and any 
incidental effects on governmental receipts or 
outlays in accordance with the Federal Credit 
Reform Act of 1990 (2 U.S.C. 661 et seq.). 
(24) SUBSTANTIAL
COMPLETION.—The term 
‘‘substantial completion’’ means, with respect to a 
project receiving credit assistance under the BIFIA 
program— 
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(A) the commencement of the provision of 
broadband service using the infrastructure 
being financed; or 
(B) a comparable event, as determined by 
the Assistant Secretary and specified in the 
credit agreement. 
SEC. 3. DETERMINATION OF ELIGIBILITY AND PROJECT SE-
LECTION. 
(a) ELIGIBILITY.— 
(1) IN GENERAL.—A project shall be eligible to 
receive credit assistance under the BIFIA program 
if— 
(A) the entity proposing to carry out the 
project submits a letter of interest prior to sub-
mission of a formal application for the project; 
and 
(B) the project meets the criteria described 
in this subsection. 
(2) CREDITWORTHINESS.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), to be eligible for assistance 
under the BIFIA program, a project shall sat-
isfy 
applicable 
creditworthiness 
standards, 
which, at a minimum, shall include— 
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(i) adequate coverage requirements to 
ensure repayment; 
(ii) an investment-grade rating from 
at least two rating agencies on debt senior 
to the Federal credit instrument; and 
(iii) a rating from at least two rating 
agencies on the Federal credit instrument. 
(B) SMALL
PROJECTS.—In order for a 
small project to be eligible for assistance under 
the BIFIA program, such project shall satisfy 
alternative creditworthiness standards that shall 
be established by the Assistant Secretary under 
section 6 for purposes of this paragraph. 
(3) APPLICATION.—A State, local government, 
agency or instrumentality of a State or local govern-
ment, public authority, public-private partnership, or 
any other legal entity undertaking the project and 
authorized by the Assistant Secretary shall submit a 
project application that is acceptable to the Assist-
ant Secretary. 
(4) ELIGIBLE PROJECT COST PARAMETERS FOR 
INFRASTRUCTURE PROJECTS.—Eligible project costs 
shall be reasonably anticipated to equal or exceed 
$2,000,000 in the case of a project or program of 
projects— 
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(A) in which the applicant is a local gov-
ernment, instrumentality of local government, 
or public authority (other than a public author-
ity that is a Federal or State government or in-
strumentality); 
(B) located on a facility owned by a local 
government; or 
(C) for which the Assistant Secretary de-
termines that a local government is substan-
tially involved in the development of the project. 
(5) DEDICATED REVENUE SOURCES.—The ap-
plicable Federal credit instrument shall be repayable, 
in whole or in part, from— 
(A) amounts charged to— 
(i) subscribers of broadband service 
for such service; or 
(ii) subscribers of any related service 
provided over the same infrastructure for 
such related service; 
(B) user fees; 
(C) payments owing to the obligor under a 
public-private partnership; or 
(D) other dedicated revenue sources that 
also secure or fund the project obligations. 
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(6) APPLICATIONS WHERE OBLIGOR WILL BE 
IDENTIFIED
LATER.—A State, local government, 
agency or instrumentality of a State or local govern-
ment, or public authority may submit to the Assist-
ant Secretary an application under paragraph (3), 
under which a private party to a public-private part-
nership will be— 
(A) the obligor; and 
(B) identified later through completion of 
a procurement and selection of the private 
party. 
(7) BENEFICIAL EFFECTS.—The Assistant Sec-
retary shall determine that financial assistance for 
the project under the BIFIA program will— 
(A) foster, if appropriate, partnerships 
that attract public and private investment for 
the project; 
(B) enable the project to proceed at an 
earlier date than the project would otherwise be 
able to proceed or reduce the lifecycle costs (in-
cluding debt service costs) of the project; and 
(C) reduce the contribution of Federal 
grant assistance for the project. 
(8) PROJECT READINESS.—To be eligible for 
assistance under the BIFIA program, the applicant 
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shall demonstrate a reasonable expectation that the 
contracting process for the construction and deploy-
ment 
of 
infrastructure 
for 
the 
provision 
of 
broadband service through the project can commence 
by no later than 90 days after the date on which a 
Federal credit instrument is obligated for the project 
under the BIFIA program. 
(9) PUBLIC SPONSORSHIP OF PRIVATE ENTI-
TIES.— 
(A) IN GENERAL.—If an eligible project is 
carried out by an entity that is not a State or 
local government or an agency or instrumen-
tality of a State or local government or a Tribal 
Government or consortium of Tribal Govern-
ments, the project shall be publicly sponsored. 
(B) PUBLIC SPONSORSHIP.—For purposes 
of this Act, a project shall be considered to be 
publicly sponsored if the obligor can dem-
onstrate, to the satisfaction of the Assistant 
Secretary, that the project applicant has con-
sulted with the State, local, or Tribal govern-
ment in the area in which the project is located, 
or that is otherwise affected by the project, and 
that such government supports the proposal. 
(b) SELECTION AMONG ELIGIBLE PROJECTS.— 
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(1) ESTABLISHMENT
OF
APPLICATION
PROC-
ESS.—The Assistant Secretary shall establish a roll-
ing application process under which projects that are 
eligible to receive credit assistance under subsection 
(a) shall receive credit assistance on terms accept-
able to the Assistant Secretary, if adequate funds 
are available to cover the subsidy costs associated 
with the Federal credit instrument. 
(2) PRELIMINARY RATING OPINION LETTER.— 
The Assistant Secretary shall require each project 
applicant to provide— 
(A) a preliminary rating opinion letter 
from at least one rating agency— 
(i) indicating that the senior obliga-
tions of the project, which may be the Fed-
eral credit instrument, have the potential 
to achieve an investment-grade rating; and 
(ii) including a preliminary rating 
opinion on the Federal credit instrument; 
or 
(B) in the case of a small project, alter-
native documentation that the Assistant Sec-
retary shall require in the standards established 
under section 6 for purposes of this paragraph. 
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(3) TECHNOLOGY NEUTRALITY REQUIRED.—In 
selecting projects to receive credit assistance under 
the BIFIA program, the Assistant Secretary may 
not favor a project using any particular technology. 
(4) PREFERENCE
FOR
OPEN-ACCESS
NET-
WORKS.—In selecting projects to receive credit as-
sistance under the BIFIA program, the Assistant 
Secretary shall give preference to projects providing 
for the deployment of open-access broadband service 
networks. 
(c) FEDERAL REQUIREMENTS.— 
(1) IN GENERAL.—The following provisions of 
law shall apply to funds made available under the 
BIFIA program and projects assisted with those 
funds: 
(A) Title VI of the Civil Rights Act of 
1964 (42 U.S.C. 2000d et seq.). 
(B) The National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.). 
(C) 54 U.S.C. 300101 et seq. (commonly 
referred to as the ‘‘National Historic Preserva-
tion Act’’). 
(D) The Uniform Relocation Assistance 
and Real Property Acquisition Policies Act of 
1970 (42 U.S.C. 4601 et seq.). 
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(2) NEPA.—No funding shall be obligated for 
a project that has not received an environmental cat-
egorical exclusion, a finding of no significant impact, 
or a record of decision under the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et seq.). 
(3) TITLE VI OF THE CIVIL RIGHTS ACT OF 
1964.—For purposes of title VI of the Civil Rights 
Act of 1964 (42 U.S.C. 2000d et seq.), any project 
that receives credit assistance under the BIFIA pro-
gram shall be considered a program or activity with-
in the meaning of section 606 of such title (42 
U.S.C. 2000d–4a). 
(4) CONTRACTING REQUIREMENTS.—All labor-
ers and mechanics employed by contractors or sub-
contractors in the performance of construction, al-
teration, or repair work carried out, in whole or in 
part, with assistance made available through a Fed-
eral credit instrument shall be paid wages at rates 
not less than those prevailing on projects of a simi-
lar character in the locality as determined by the 
Secretary of Labor in accordance with subchapter 
IV of chapter 31 of title 40, United States Code. 
With respect to the labor standards in this para-
graph, the Secretary of Labor shall have the author-
ity and functions set forth in Reorganization Plan 
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Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. 
App.) and section 3145 of title 40, United States 
Code. 
(5) NEUTRALITY REQUIREMENT.—An employer 
receiving assistance made available through a Fed-
eral credit instrument under this Act shall remain 
neutral with respect to the exercise of employees and 
labor organizations of the right to organize and bar-
gain under the National Labor Relations Act (29 
U.S.C. 151 et seq.). 
(6) REFERRAL OF ALLEGED VIOLATIONS OF AP-
PLICABLE
FEDERAL
LABOR
AND
EMPLOYMENT 
LAWS.—The Assistant Secretary shall refer any al-
leged violation of an applicable labor and employ-
ment law to the appropriate Federal agency for in-
vestigation and enforcement, and any alleged viola-
tion of paragraph (4) or (5) to the National Labor 
Relations Board for investigation and enforcement, 
utilizing all appropriate remedies up to and includ-
ing debarment from the BIFIA program. 
(d) APPLICATION PROCESSING PROCEDURES.— 
(1) NOTICE OF COMPLETE APPLICATION.—Not 
later than 30 days after the date of receipt of an ap-
plication under this section, the Assistant Secretary 
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shall provide to the applicant a written notice to in-
form the applicant whether— 
(A) the application is complete; or 
(B) additional information or materials are 
needed to complete the application. 
(2) APPROVAL OR DENIAL OF APPLICATION.— 
Not later than 60 days after the date of issuance of 
the written notice under paragraph (1), the Assist-
ant Secretary shall provide to the applicant a writ-
ten notice informing the applicant whether the As-
sistant Secretary has approved or disapproved the 
application. 
(3) APPROVAL BEFORE NEPA REVIEW.—Subject 
to subsection (c)(2), an application for a project may 
be approved before the project receives an environ-
mental categorical exclusion, a finding of no signifi-
cant impact, or a record of decision under the Na-
tional Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.). 
(e) DEVELOPMENT PHASE ACTIVITIES.—Any credit 
instrument secured under the BIFIA program may be 
used to finance up to 100 percent of the cost of develop-
ment phase activities as described in section 2(4)(A). 
SEC. 4. SECURED LOANS. 
(a) IN GENERAL.— 
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(1) AGREEMENTS.—Subject to paragraphs (2) 
and (3), the Assistant Secretary may enter into 
agreements with one or more obligors to make se-
cured loans, the proceeds of which shall be used— 
(A) to finance eligible project costs of any 
project selected under section 3; 
(B) to refinance interim construction fi-
nancing of eligible project costs of any project 
selected under section 3; or 
(C) to refinance long-term project obliga-
tions or Federal credit instruments, if the refi-
nancing provides additional funding capacity for 
the completion, enhancement, or expansion of 
any project that— 
(i) is selected under section 3; or 
(ii) otherwise meets the requirements 
of section 3. 
(2) LIMITATION ON REFINANCING OF INTERIM 
CONSTRUCTION
FINANCING.—A loan under para-
graph (1) shall not refinance interim construction fi-
nancing under paragraph (1)(B)— 
(A) if the maturity of such interim con-
struction financing is later than 1 year after 
the substantial completion of the project; and 
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(B) later than 1 year after the date of sub-
stantial completion of the project. 
(3) RISK
ASSESSMENT.—Before entering into 
an agreement under this subsection, the Assistant 
Secretary, in consultation with the Director of the 
Office of Management and Budget, shall determine 
an appropriate capital reserve subsidy amount for 
each secured loan, taking into account each rating 
letter provided by a rating agency under section 
3(b)(2)(A)(ii) or, in the case of a small project, the 
alternative documentation provided under section 
3(b)(2)(B). 
(b) TERMS AND LIMITATIONS.— 
(1) IN GENERAL.—A secured loan under this 
section with respect to a project shall be on such 
terms and conditions and contain such covenants, 
representations, warranties, and requirements (in-
cluding requirements for audits) as the Assistant 
Secretary determines to be appropriate. 
(2) MAXIMUM AMOUNT.—The amount of a se-
cured loan under this section shall not exceed the 
lesser of 49 percent of the reasonably anticipated eli-
gible project costs or, if the secured loan is not for 
a small project and does not receive an investment- 
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grade rating, the amount of the senior project obli-
gations. 
(3) PAYMENT.—A secured loan under this sec-
tion— 
(A) shall— 
(i) be payable, in whole or in part, 
from— 
(I) amounts charged to— 
(aa) 
subscribers 
of 
broadband service for such serv-
ice; or 
(bb) subscribers of any re-
lated service provided over the 
same infrastructure for such re-
lated service; 
(II) user fees; 
(III) payments owing to the obli-
gor under a public-private partner-
ship; or 
(IV) other dedicated revenue 
sources that also secure the senior 
project obligations; and 
(ii) include a coverage requirement or 
similar security feature supporting the 
project obligations; and 
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bankruptcy, insolvency, or liquidation of the ob-
ligor. 
(B) PRE-EXISTING INDENTURE.— 
(i) IN GENERAL.—The Assistant Sec-
retary shall waive the requirement of sub-
paragraph (A) for a public agency bor-
rower that is financing ongoing capital 
programs and has outstanding senior 
bonds under a preexisting indenture, if— 
(I) the line of credit— 
(aa) is rated in the A cat-
egory or higher; or 
(bb) in the case of a small 
project, 
meets 
an 
alternative 
standard that the Assistant Sec-
retary shall establish under sec-
tion 6 for purposes of this sub-
clause; 
(II) the BIFIA program loan re-
sulting from a draw on the line of 
credit is payable from pledged reve-
nues not affected by project perform-
ance, such as a tax-backed revenue 
pledge or a system-backed pledge of 
project revenues; and 
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kjohnson on DSK79L0C42PROD with BILLS