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 ‘‘Commercial Spectrum 
Enhancement Act’’. 
SEC. 2. RELOCATION OF ELIGIBLE FEDERAL ENTITIES FOR 
THE REALLOCATION OF SPECTRUM FOR COM-
MERCIAL PURPOSES. 
Section 113(g) of the National Telecommunications 
and Information Administration Organization Act (47 
U.S.C. 923(g)) is amended by striking paragraphs (1) 
through (3) and inserting the following:—
‘‘(1) ELIGIBLE FEDERAL ENTITIES.—Any Fed-
eral entity that operates a Federal Government sta-
tion assigned to a band of frequencies specified in 
paragraph (2) and that incurs relocation costs be-
cause of the reallocation of frequencies from Federal 
use to non-Federal use shall receive payment for such 
costs from the Spectrum Relocation Fund, in accord-
ance with section 118 of this Act. For purposes of this 
paragraph, Federal power agencies exempted under 
subsection (c)(4) that choose to relocate from the fre-
quencies identified for reallocation pursuant to sub-
section (a), are eligible to receive payment under this 
paragraph.
‘‘(2) ELIGIBLE FREQUENCIES.—The bands of eli-
gible frequencies for purposes of this section are as fol-
lows: 
‘‘(A) the 216–220 megahertz band, the 
1432–1435 megahertz band, the 1710–1755 
megahertz band, and the 2385–2390 megahertz 
band of frequencies; and 
‘‘(B) any other band of frequencies reallo-
cated from Federal use to non-Federal use after 
January 1, 2003, that is assigned by competitive 
bidding pursuant to section 309(j) of the Com-
munications Act of 1934 (47 U.S.C. 309(j)), ex-
cept for bands of frequencies previously identified 
by the National Telecommunications and Infor-
mation Administration in the Spectrum Re-
allocation Final Report, NTIA Special Publica-
tion 95–32 (1995). 
‘‘(3) DEFINITION OF RELOCATION COSTS.—For 
purposes of this subsection, the term ‘relocation costs’ 
means the costs incurred by a Federal entity to 
achieve comparable capability of systems, regardless 
of whether that capability is achieved by relocating to 
a new frequency assignment or by utilizing an alter-
native technology. Such costs include—
‘‘(A) the costs of any modification or re-
placement of equipment, software, facilities, op-
erating manuals, training costs, or regulations 
that are attributable to relocation; 
‘‘(B) the costs of all engineering, equipment, 
software, site acquisition and construction costs, 
as well as any legitimate and prudent trans-
action expense, including outside consultants, 
and reasonable additional costs incurred by the 
Federal entity that are attributable to relocation, 
including increased recurring costs associated 
with the replacement facilities; 
‘‘(C) the costs of engineering studies, eco-
nomic analyses, or other expenses reasonably in-
curred in calculating the estimated relocation 
costs that are provided to the Commission pursu-
ant to paragraph (4) of this subsection; 
‘‘(D) the one-time costs of any modification 
of equipment reasonably necessary to accommo-
date commercial use of such frequencies prior to 
the termination of the Federal entity’s primary 
allocation or protected status, when the eligible 
frequencies as defined in paragraph (2) of this 
subsection are made available for private sector 
uses by competitive bidding and a Federal entity
retains primary allocation or protected status in 
those frequencies for a period of time after the 
completion of the competitive bidding process; 
and 
‘‘(E) the costs associated with the acceler-
ated replacement of systems and equipment if 
such acceleration is necessary to ensure the time-
ly relocation of systems to a new frequency as-
signment.
‘‘(4) NOTICE TO COMMISSION OF ESTIMATED RE-
LOCATION COSTS.—
‘‘(A) The Commission shall notify the NTIA 
at least 18 months prior to the commencement of 
any auction of eligible frequencies defined in 
paragraph (2). At least 6 months prior to the 
commencement of any such auction, the NTIA, 
on behalf of the Federal entities and after review 
by the Office of Management and Budget, shall 
notify the Commission of estimated relocation 
costs and timelines for such relocation. 
‘‘(B) Upon timely request of a Federal enti-
ty, the NTIA shall provide such entity with in-
formation regarding an alternative frequency as-
signment 
or 
assignments 
to 
which 
their 
radiocommunications operations could be relo-
cated for purposes of calculating the estimated 
relocation costs and timelines to be submitted to 
the Commission pursuant to subparagraph (A).
‘‘(C) To the extent practicable and con-
sistent with national security considerations, the 
NTIA shall provide the information required by 
subparagraphs (A) and (B) by the geographic lo-
cation of the Federal entities’ facilities or sys-
tems and the frequency bands used by such fa-
cilities or systems. 
‘‘(5) NOTICE
TO
CONGRESSIONAL
COMMITTEES 
AND GAO.—The NTIA shall, at the time of providing 
an initial estimate of relocation costs to the Commis-
sion under paragraph (4)(A), submit to the Commit-
tees on Appropriations and Energy and Commerce of 
the House of Representatives, the Committees on Ap-
propriations and Commerce, Science, and Transpor-
tation of the Senate, and the Comptroller General a 
copy of such estimate and the timelines for relocation. 
‘‘(6) IMPLEMENTATION
OF
PROCEDURES.—The 
NTIA shall take such actions as necessary to ensure 
the timely relocation of Federal entities’ spectrum-re-
lated operations from frequencies defined in para-
graph (2) to frequencies or facilities of comparable ca-
pability. Upon a finding by the NTIA that a Federal
entity has achieved comparable capability of systems 
by relocating to a new frequency assignment or by 
utilizing an alternative technology, the NTIA shall 
terminate the entity’s authorization and notify the 
Commission that the entity’s relocation has been com-
pleted. The NTIA shall also terminate such entity’s 
authorization if the NTIA determines that the entity 
has unreasonably failed to comply with the timeline 
for relocation submitted by the Director of the Office 
of 
Management 
and 
Budget 
under 
section 
118(d)(2)(B).’’. 
SEC. 3. MINIMUM AUCTION RECEIPTS AND DISPOSITION OF 
PROCEEDS. 
(a) AUCTION DESIGN.—Section 309(j)(3) of the Com-
munications Act of 1934 (47 U.S.C. 309(j)(3)) is amend-
ed—
(1) by striking ‘‘and’’ at the end of subpara-
graph (D); 
(2) by striking the period at the end of subpara-
graph (E) and inserting ‘‘; and’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(F) for any auction of eligible frequencies 
described in section 113(g)(2) of the National 
Telecommunications and Information Adminis-