Broadband Infrastructure Finance and Innovation Act of 2021
Bill: S.741 | Sponsor: Sen. Lujan, Ben Ray (D-NM)
Policy area: Science, Technology, Communications

Summary:
Broadband Infrastructure Finance and Innovation Act of 2021
This bill requires the National Telecommunications and Information Administration to make financing available for the construction and deployment of broadband infrastructure through a broadband infrastructure finance and innovation program.
Specifically, the bill provides a means for communities and public-private partnerships to apply for low-interest secured loans, lines of credit, or loan guarantees to finance broadband infrastructure investments. The bill provides funding to carry out the program, and it requires biennial reports on the financial performance of projects carried out with program assistance.

To establish a broadband infrastructure finance and innovation program 
 to make available loans, loan guarantees, and lines of credit for the 
construction and deployment of broadband infrastructure, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Broadband 
Infrastructure Finance and Innovation Act of 2021''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

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 ``Assistant Secretary'' 
        means the Assistant Secretary of Commerce for Communications 
        and Information.
            (2) BIFIA program.--The term ``BIFIA program'' means the 
        broadband infrastructure finance and innovation program 
        established under this Act.
            (3) Broadband service.--The term ``broadband service''--
                    (A) means broadband internet access service that is 
                a mass-market retail service, or a service provided to 
                an entity described in paragraph (12)(B)(ii), by wire 
                or radio that provides the capability to transmit data 
                to and receive data from all or substantially all 
                internet endpoints, including any capabilities that are 
                incidental to and enable the operation of the 
                communications service;
                    (B) includes any service that is a functional 
                equivalent of the service described in subparagraph 
                (A); and
                    (C) does not include dial-up internet access 
                service.
            (4) Eligible project costs.--The term ``eligible project 
        costs'' means amounts substantially all of which are paid by, 
        or for the account of, an obligor in connection with a project, 
        including the cost of--
                    (A) development phase activities, including 
                planning, feasibility analysis, revenue forecasting, 
                environmental review, historic preservation review, 
                permitting, preliminary engineering and design work, 
                and other preconstruction activities;
                    (B) construction and deployment phase activities, 
                including--
                            (i) construction, reconstruction, 
                        rehabilitation, replacement, and acquisition of 
                        real property (including land relating to the 
                        project and improvements to land), equipment, 
                        instrumentation, networking capability, 
                        hardware and software, and digital network 
                        technology;
                            (ii) environmental mitigation; and
                            (iii) construction contingencies; and
                    (C) capitalized interest necessary to meet market 
                requirements, reasonably required reserve funds, 
                capital issuance expenses, and other carrying costs 
                during construction and deployment.
            (5) 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 respect to a project.
            (6) Investment-grade rating.--The term ``investment-grade 
        rating'' means a rating of BBB minus, Baa3, bbb minus, BBB 
        (low), or higher assigned by a rating agency to project 
        obligations.
            (7) 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 Commission 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.
            (8) 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--
                    (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 review; and
                    (D) provides information regarding satisfaction of 
                other eligibility requirements of the BIFIA program.
            (9) Line of credit.--The term ``line of credit'' means an 
        agreement entered into by the Assistant Secretary with an 
        obligor under section 5 to provide a direct loan at a future 
        date upon the occurrence of certain events.
            (10) Loan guarantee.--The term ``loan guarantee'' means any 
        guarantee or other pledge by the Assistant Secretary to pay all 
        or part of the principal of and interest on a loan or other 
        debt obligation issued by an obligor and funded by a lender.
            (11) Obligor.--The term ``obligor'' means a party that--
                    (A) is primarily liable for payment of the 
                principal of or interest on a Federal credit 
                instrument; and
                    (B) may be a corporation, company, partnership, 
                joint venture, trust, or governmental entity, agency, 
                or instrumentality.
            (12) 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 determines 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 not 
                                less than 100 megabits per second;
                                    (II) with an upload speed of not 
                                less than 20 megabits per second; and
                                    (III) with latency that is 
                                sufficiently low to allow real-time, 
                                interactive applications; or
                            (ii) provide access or improved access to 
                        broadband service to--
                                    (I) schools, libraries, medical and 
                                healthcare providers, community 
                                colleges and other institutions of 
                                higher education, museums, religious 
                                organizations, and other community 
                                support organizations and entities to 
                                facilitate greater use of broadband 
                                service by or through those 
                                organizations;
                                    (II) organizations and agencies 
                                that provide outreach, access, 
                                equipment, and support services to 
                                facilitate greater use of broadband 
                                service by low-income, unemployed, 
                                aged, and otherwise vulnerable 
                                populations;
                                    (III) job-creating strategic 
                                facilities located within a State-
                                designated economic zone, Economic 
                                Development District designated by the 
                                Department of Commerce, Empowerment 
                                Zone designated by the Department of 
                                Housing and Urban Development, or 
                                Enterprise Community designated by the 
                                Department of Agriculture; or
                                    (IV) public safety agencies.
            (13) Project obligation.--The term ``project obligation'' 
        means any note, bond, debenture, or other debt obligation 
        issued by an obligor in connection with the financing of a 
        project, other than a Federal credit instrument.
            (14) Public authority.--The term ``public authority'' 
        means--
                    (A) the Federal Government or a Federal 
                instrumentality with authority to finance, build, 
                operate, or maintain infrastructure for the provision 
                of broadband service; or
                    (B) the government of a State, political 
                subdivision of a State, or Indian Tribe, or an 
                instrumentality thereof, with authority to finance, 
                build, operate, or maintain infrastructure for the 
                provision of broadband service.
            (15) Rating agency.--The term ``rating agency'' 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))).
            (16) Secured loan.--The term ``secured loan'' means a 
        direct loan or other debt obligation issued by an obligor and 
        funded by the Assistant Secretary in connection with the 
        financing of a project under section 4.
            (17) Small project.--The term ``small project'' means a 
        project having eligible project costs that are reasonably 
        anticipated not to equal or exceed $20,000,000.
            (18) State.--The term ``State'' has the meaning given the 
        term in section 3 of the Communications Act of 1934 (47 U.S.C. 
        153).
            (19) Subsidy amount.--The term ``subsidy amount'' means the 
        amount of budget authority sufficient to cover the estimated 
        long-term cost to the Federal Government of a Federal credit 
        instrument--
                    (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.).
            (20) Substantial completion.--The term ``substantial 
        completion'' means, with respect to a project receiving credit 
        assistance under the BIFIA program--
                    (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 SELECTION.

    (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 submission 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 satisfy applicable 
                creditworthiness standards, which, at a minimum, shall 
                include--
                            (i) adequate coverage requirements to 
                        ensure repayment;
                            (ii) an investment-grade rating from not 
                        less than 2 rating agencies on debt senior to 
                        the Federal credit instrument; and
                            (iii) a rating from not less than 2 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, 
                the 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 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 Assistant 
        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--
                    (A) in which the applicant is a public authority 
                (other than the Federal Government, a Federal 
                instrumentality, or a State government or 
                instrumentality);
                    (B) located on a facility owned by a political 
                subdivision of a State; or
                    (C) for which the Assistant Secretary determines 
                that a political subdivision of a State is 
                substantially involved in the development of the 
                project.
            (5) Dedicated revenue sources.--The applicable Federal 
        credit instrument shall be repayable, in whole or in part, 
        from--
                    (A) amounts charged to--
                            (i) subscribers of broadband service for 
                        that service; or
                            (ii) subscribers of any related service 
                        provided over the same infrastructure for that 
                        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.
            (6) Applications where obligor will be identified later.--A 
        public authority may submit to the Assistant Secretary an 
        application under paragraph (3), under which a private party to 
        a public-private partnership 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 Secretary 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 (including 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 shall demonstrate a reasonable 
        expectation that the contracting process for the construction 
        and deployment of infrastructure for the provision of broadband 
        service through the project can commence by not 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 entities.--
                    (A) In general.--If an eligible project is carried 
                out by an entity that is not a State or political 
                subdivision of a State, an agency or instrumentality 
                thereof, or a Tribal government or consortium of Tribal 
                governments, the project shall be publicly sponsored.
                    (B) Public sponsorship.--For purposes of 
                subparagraph (A), a project shall be considered to be 
                publicly sponsored if the obligor can demonstrate, to 
                the satisfaction of the Assistant Secretary, that the 
                project applicant has consulted with the government of 
                the State, political subdivision of a State, or Indian 
                Tribe in the area in which the project is located, or 
                that is otherwise affected by the project, and that the 
                government supports the proposal.
    (b) Selection Among Eligible Projects.--
            (1) Establishment of application process.--The Assistant 
        Secretary shall establish a rolling application process under 
        which projects that are eligible to receive credit assistance 
        under subsection (a) shall receive credit assistance on terms 
        acceptable 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 not 
                less than 1 rating agency--
                            (i) indicating that the senior obligations 
                        of the project, which may be the Federal 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, alternative 
                documentation that the Assistant Secretary shall 
                require in the standards established under section 6 
                for purposes of this paragraph.
            (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 networks.--In selecting 
        projects to receive credit assistance 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) Division A of subtitle III of title 54, United 
                States Code (commonly referred to as the ``National 
                Historic Preservation Act'').
                    (D) The Uniform Relocation Assistance and Real 
                Property Acquisition Policies Act of 1970 (42 U.S.C. 
                4601 et seq.).
            (2) NEPA.--No funding shall be obligated for a project that 
        has not received an environmental categorical exclusion, a 
        finding of no significant impact, or a record of decision under 
        the National Environmental 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 program shall be considered a program or activity within 
        the meaning of section 606 of that title (42 U.S.C. 2000d-4a).
            (4) Contracting requirements.--
                    (A) In general.--All laborers and mechanics 
                employed by contractors or subcontractors in the 
                performance of construction, alteration, or repair work 
                carried out, in whole or in part, with assistance made 
                available through a Federal credit instrument shall be 
                paid wages at rates not less than those prevailing on 
                projects of a similar 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.
                    (B) Authority and functions of secretary of 
                labor.--With respect to the labor standards described 
                in subparagraph (A), the Secretary of Labor shall have 
                the authority and functions set forth in Reorganization 
                Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) 
                and section 3145 of title 40, United States Code.
            (5) Neutrality requirement.--
                    (A) In general.--In the case of a recipient of 
                assistance made available through a Federal credit 
                instrument under this subtitle that is an employer, the 
                employer shall remain neutral with respect to the 
                exercise of employees and labor organizations of the 
                right to organize and bargain under the National Labor 
                Relations Act (29 U.S.C. 151 et seq.).
                    (B) Definitions.--In this paragraph, the terms 
                ``employee'', ``employer'', and ``labor organization'' 
                have the meanings given those terms in section 2 of the 
                National Labor Relations Act (29 U.S.C. 152).
            (6) Referral of alleged violations of applicable federal 
        labor and employment laws.--The Assistant Secretary shall refer 
        any alleged violation of an applicable labor and employment law 
        to the appropriate Federal agency for investigation and 
        enforcement, and any alleged violation of paragraph (4) or (5) 
        to the National Labor Relations Board for investigation and 
        enforcement, utilizing all appropriate remedies up to and 
        including 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 application under this section, 
        the Assistant Secretary shall provide to the applicant a 
        written notice to inform 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 Assistant Secretary shall provide to the 
        applicant a written notice informing the applicant whether the 
        Assistant 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 environmental categorical exclusion, a 
        finding of no significant impact, or a record of decision under 
        the National 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 development phase activities as described in section 2(4)(A).

SEC. 4. SECURED LOANS.

    (a) In General.--
            (1) Agreements.--Subject to paragraphs (2) and (3), the 
        Assistant Secretary may enter into agreements with 1 or more 
        obligors to make secured 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 financing of 
                eligible project costs of any project selected under 
                section 3; or
                    (C) to refinance long-term project obligations or 
                Federal credit instruments, if the refinancing 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 paragraph (1) shall not refinance 
        interim construction financing under paragraph (1)(B)--
                    (A) if the maturity of the interim construction 
                financing is later than 1 year after the substantial 
                completion of the project; and
                    (B) later than 1 year after the date of substantial 
                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 (including requirements for audits) as the 
        Assistant Secretary determines to be appropriate.
            (2) Maximum amount.--The amount of a secured loan under 
        this section shall not exceed the lesser of 49 percent of the 
        reasonably anticipated eligible project costs or, if the 
        secured loan is not for a small project and does not receive an 
        investment-grade rating, the amount of the senior project 
        obligations.
            (3) Payment.--A secured loan under this section--
                    (A) shall--
                            (i) be payable, in whole or in part, from--
                                    (I) amounts charged to--
                                            (aa) subscribers of 
                                        broadband service for that 
                                        service; or
                                            (bb) subscribers of any 
                                        related service provided over 
                                        the same infrastructure for 
                                        that related service;
                                    (II) user fees;
                                    (III) payments owing to the obligor 
                                under a public-private partnership; 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
                    (B) may have a lien on revenues described in 
                subparagraph (A), subject to any lien securing project 
                obligations.
            (4) Interest rate.--The interest rate on a secured loan 
        under this section shall be not less than the yield on United 
        States Treasury securities of a similar maturity to the 
        maturity of the secured loan on the date of execution of the 
        loan agreement.
            (5) Maturity date.--The final maturity date of the secured 
        loan shall be the lesser of--
                    (A) 35 years after the date of substantial 
                completion of the project; and
                    (B) if the useful life of the infrastructure for 
                the provision of broadband service being financed is of 
                a lesser period, the useful life of the infrastructure.
            (6) Nonsubordination.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the secured loan shall not be subordinated to the 
                claims of any holder of project obligations in the 
                event of bankruptcy, insolvency, or liquidation of the 
                obligor.
                    (B) Preexisting indenture.--
                            (i) In general.--The Assistant Secretary 
                        shall waive the requirement under subparagraph 
                        (A) for a public agency borrower that is 
                        financing ongoing capital programs and has 
                        outstanding senior bonds under a preexisting 
                        indenture, if--
                                    (I) the secured loan--
                                            (aa) is rated in the A 
                                        category or higher; or
                                            (bb) in the case of a small 
                                        project, meets an alternative 
                                        standard that the Assistant 
                                        Secretary shall establish under 
                                        section 6 for purposes of this 
                                        subclause;
                                    (II) the secured loan is secured 
                                and payable from pledged revenues not 
                                affected by project performance, such 
                                as a tax-backed revenue pledge or a 
                                system-backed pledge of project 
                                revenues; and
                                    (III) the BIFIA program share of 
                                eligible project costs is 33 percent or 
                                less.
                            (ii) Limitation.--If the Assistant 
                        Secretary waives the nonsubordination 
                        requirement under this subparagraph--
                                    (I) the maximum credit subsidy to 
                                be paid by the Federal Government shall 
                                be not more than 10 percent of the 
                                principal amount of the secured loan; 
                                and
                                    (II) the obligor shall be 
                                responsible for paying the remainder of 
                                the subsidy cost, if any.
            (7) Fees.--The Assistant Secretary may establish fees at a 
        level sufficient to cover all or a portion of the costs to the 
        Federal Government of making a secured loan under this section.
            (8) Non-federal share.--The proceeds of a secured loan 
        under the BIFIA program, if the loan is repayable from non-
        Federal funds--
                    (A) may be used for any non-Federal share of 
                project costs required under this Act; and
                    (B) shall not count toward the total Federal 
                assistance provided for a project for purposes of 
                paragraph (9).
            (9) Maximum federal involvement.--The total Federal 
        assistance provided for a project receiving a loan under the 
        BIFIA program shall not exceed 80 percent of the total project 
        cost.
    (c) Repayment.--
            (1) Schedule.--The Assistant Secretary shall establish a 
        repayment schedule for each secured loan under this section 
        based on--
                    (A) the projected cash flow from project revenues 
                and other repayment sources; and
                    (B) the useful life of the infrastructure for the 
                provision of broadband service being financed.
            (2) Commencement.--Scheduled loan repayments of principal 
        or interest on a secured loan under this section shall commence 
        not later than 5 years after the date of substantial completion 
        of the project.
            (3) Deferred payments.--
                    (A) In general.--If, at any time after the date of 
                substantial completion of the project, the project is 
                unable to generate sufficient revenues to pay the 
                scheduled loan repayments of principal and interest on 
                the secured loan, the Assistant Secretary may, subject 
                to subparagraph (C), allow the obligor to add unpaid 
                principal and interest to the outstanding balance of 
                the secured loan.
                    (B) Interest.--Any payment deferred under 
                subparagraph (A) shall--
                            (i) continue to accrue interest in 
                        accordance with subsection (b)(4) until fully 
                        repaid; and
                            (ii) be scheduled to be amortized over the 
                        remaining term of the loan.
                    (C) Criteria.--
                            (i) In general.--Any payment deferral under 
                        subparagraph (A) shall be contingent on the 
                        project meeting criteria established by the 
                        Assistant Secretary.
                            (ii) Repayment standards.--The criteria 
                        established pursuant to clause (i) shall 
                        include standards for reasonable assurance of 
                        repayment.
            (4) Prepayment.--
                    (A) Use of excess revenues.--Any excess revenues 
                that remain after satisfying scheduled debt service 
                requirements on the project obligations and secured 
                loan and all deposit requirements under the terms of 
                any trust agreement, bond resolution, or similar 
                agreement securing project obligations may be applied 
                annually to prepay the secured loan without penalty.
                    (B) Use of proceeds of refinancing.--The secured 
                loan may be prepaid at any time without penalty from 
                the proceeds of refinancing from non-Federal funding 
                sources.
    (d) Sale of Secured Loans.--
            (1) In general.--Subject to paragraph (2), as soon as 
        practicable after substantial completion of a project and after 
        notifying the obligor, the Assistant Secretary may sell to 
        another entity or reoffer into the capital markets a secured 
        loan for the project if the Assistant Secretary determines that 
        the sale or reoffering can be made on favorable terms.
            (2) Consent of obligor.--In making a sale or reoffering 
        under paragraph (1), the Assistant Secretary may not change the 
        original terms and conditions of the secured loan without the 
        written consent of the obligor.
    (e) Loan Guarantees.--
            (1) In general.--The Assistant Secretary may provide a loan 
        guarantee to a lender in lieu of making a secured loan under 
        this section if the Assistant Secretary determines that the 
        budgetary cost of the loan guarantee is substantially the same 
        as that of a secured loan.
            (2) Terms.--The terms of a loan guarantee under paragraph 
        (1) shall be consistent with the terms required under this 
        section for a secured loan, except that the rate on the 
        guaranteed loan and any prepayment features shall be negotiated 
        between the obligor and the lender, with the consent of the 
        Assistant Secretary.
    (f) Streamlined Application Process.--
            (1) In general.--The Assistant Secretary shall develop 1 or 
        more expedited application processes, available at the request 
        of entities seeking secured loans under the BIFIA program, that 
        use a set or sets of conventional terms established pursuant to 
        this section.
            (2) Terms.--In establishing the streamlined application 
        process required by this subsection, the Assistant Secretary 
        may allow for an expedited application period and include terms 
        such as those that require--
                    (A) that the project be a small project;
                    (B) the secured loan to be secured and payable from 
                pledged revenues not affected by project performance, 
                such as a tax-backed revenue pledge, tax increment 
                financing, or a system-backed pledge of project 
                revenues; and
                    (C) repayment of the loan to commence not later 
                than 5 years after disbursement.

SEC. 5. LINES OF CREDIT.

    (a) In General.--
            (1) Agreements.--Subject to paragraphs (2) through (4), the 
        Assistant Secretary may enter into agreements to make available 
        to 1 or more obligors lines of credit in the form of direct 
        loans to be made by the Assistant Secretary at future dates on 
        the occurrence of certain events for any project selected under 
        section 3.
            (2) Use of proceeds.--The proceeds of a line of credit made 
        available under this section shall be available to pay debt 
        service on project obligations issued to finance eligible 
        project costs, extraordinary repair and replacement costs, 
        operation and maintenance expenses, and costs associated with 
        unexpected Federal or State environmental restrictions.
            (3) Risk assessment.--
                    (A) In general.--Except as provided in subparagraph 
                (B), before entering into an agreement under this 
                subsection, the Assistant Secretary, in consultation 
                with the Director of the Office of Management and 
                Budget and each rating agency providing a preliminary 
                rating opinion letter under section 3(b)(2)(A), shall 
                determine an appropriate capital reserve subsidy amount 
                for each line of credit, taking into account the rating 
                opinion letter.
                    (B) Small projects.--Before entering into an 
                agreement under this subsection to make available a 
                line of credit for a small project, 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 
                such line of credit, taking into account the 
                alternative documentation provided under section 
                3(b)(2)(B) instead of preliminary rating opinion 
                letters provided under section 3(b)(2)(A).
            (4) Investment-grade rating requirement.--The funding of a 
        line of credit under this section shall be contingent on--
                    (A) the senior obligations of the project receiving 
                an investment-grade rating from 2 rating agencies; or
                    (B) in the case of a small project, the project 
                meeting an alternative standard that the Assistant 
                Secretary shall establish under section 6 for purposes 
                of this paragraph.
    (b) Terms and Limitations.--
            (1) In general.--A line of credit under this section with 
        respect to a project shall be on such terms and conditions and 
        contain such covenants, representations, warranties, and 
        requirements (including requirements for audits) as the 
        Assistant Secretary determines to be appropriate.
            (2) Maximum amounts.--The total amount of a line of credit 
        under this section shall not exceed 33 percent of the 
        reasonably anticipated eligible project costs.
            (3) Draws.--Any draw on a line of credit under this section 
        shall--
                    (A) represent a direct loan; and
                    (B) be made only if net revenues from the project 
                (including capitalized interest, but not including 
                reasonably required financing reserves) are 
                insufficient to pay the costs specified in subsection 
                (a)(2).
            (4) Interest rate.--The interest rate on a direct loan 
        resulting from a draw on the line of credit shall be not less 
        than the yield on 30-year United States Treasury securities, as 
        of the date of execution of the line of credit agreement.
            (5) Security.--A line of credit issued under this section--
                    (A) shall--
                            (i) be payable, in whole or in part, from--
                                    (I) amounts charged to--
                                            (aa) subscribers of 
                                        broadband service for that 
                                        service; or
                                            (bb) subscribers of any 
                                        related service provided over 
                                        the same infrastructure for 
                                        that related service;
                                    (II) user fees;
                                    (III) payments owing to the obligor 
                                under a public-private partnership; 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
                    (B) may have a lien on revenues described in 
                subparagraph (A), subject to any lien securing project 
                obligations.
            (6) Period of availability.--The full amount of a line of 
        credit under this section, to the extent not drawn upon, shall 
        be available during the 10-year period beginning on the date of 
        substantial completion of the project.
            (7) Rights of third-party creditors.--
                    (A) Against federal government.--A third-party 
                creditor of the obligor shall not have any right 
                against the Federal Government with respect to any draw 
                on a line of credit under this section.
                    (B) Assignment.--An obligor may assign a line of 
                credit under this section to--
                            (i) 1 or more lenders; or
                            (ii) a trustee on the behalf of such a 
                        lender.
            (8) Nonsubordination.--
                    (A) In general.--Except as provided in subparagraph 
                (B), a direct loan under this section shall not be 
                subordinated to the claims of any holder of project 
                obligations in the event of bankruptcy, insolvency, or 
                liquidation of the obligor.
                    (B) Pre-existing indenture.--
                            (i) In general.--The Assistant Secretary 
                        shall waive the requirement of subparagraph (A) 
                        for a public agency borrower 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 
                                        category or higher; or
                                            (bb) in the case of a small 
                                        project, meets an alternative 
                                        standard that the Assistant 
                                        Secretary shall establish under 
                                        section 6 for purposes of this 
                                        subclause;
                                    (II) the BIFIA program loan 
                                resulting from a draw on the line of 
                                credit is payable from pledged revenues 
                                not affected by project performance, 
                                such as a tax-backed revenue pledge or 
                                a system-backed pledge of project 
                                revenues; and
                                    (III) the BIFIA program share of 
                                eligible project costs is 33 percent or 
                                less.
                            (ii) Limitation.--If the Assistant 
                        Secretary waives the nonsubordination 
                        requirement under this subparagraph--
                                    (I) the maximum credit subsidy to 
                                be paid by the Federal Government shall 
                                be not more than 10 percent of the 
                                principal amount of the secured loan; 
                                and
                                    (II) the obligor shall be 
                                responsible for paying the remainder of 
                                the subsidy cost.
            (9) Fees.--The Assistant Secretary may establish fees at a 
        level sufficient to cover all or a portion of the costs to the 
        Federal Government of providing a line of credit under this 
        section.
            (10) Relationship to other credit instruments.--A project 
        that receives a line of credit under this section also shall 
        not receive a secured loan or loan guarantee under section 4 in 
        an amount that, combined with the amount of the line of credit, 
        exceeds 49 percent of eligible project costs.
    (c) Repayment.--
            (1) Terms and conditions.--The Assistant Secretary shall 
        establish repayment terms and conditions for each direct loan 
        under this section based on--
                    (A) the projected cash flow from project revenues 
                and other repayment sources; and
                    (B) the useful life of the infrastructure for the 
                provision of broadband service being financed.
            (2) Timing.--All repayments of principal or interest on a 
        direct loan under this section shall be scheduled--
                    (A) to commence not later than 5 years after the 
                end of the period of availability specified in 
                subsection (b)(6); and
                    (B) to conclude, with full repayment of principal 
                and interest, by the date that is 25 years after the 
                end of the period of availability specified in 
                subsection (b)(6).

SEC. 6. ALTERNATIVE PRUDENTIAL LENDING STANDARDS FOR SMALL PROJECTS.

    Not later than 180 days after the date of enactment of this Act, 
the Assistant Secretary shall establish alternative, streamlined 
prudential lending standards for small projects receiving credit 
assistance under the BIFIA program to ensure that those projects pose 
no additional risk to the Federal Government, as compared with projects 
that are not small projects.

SEC. 7. PROGRAM ADMINISTRATION.

    (a) Requirement.--The Assistant Secretary shall establish a uniform 
system to service the Federal credit instruments made available under 
the BIFIA program.
    (b) Fees.--The Assistant Secretary may collect and spend fees, 
contingent on authority being provided in appropriation Acts, at a 
level that is sufficient to cover--
            (1) the costs of services of expert firms retained pursuant 
        to subsection (d); and
            (2) all or a portion of the costs to the Federal Government 
        of servicing the Federal credit instruments.
    (c) Servicer.--
            (1) In general.--The Assistant Secretary may appoint a 
        financial entity to assist the Assistant Secretary in servicing 
        the Federal credit instruments.
            (2) Duties.--A servicer appointed under paragraph (1) shall 
        act as the agent for the Assistant Secretary.
            (3) Fee.--A servicer appointed under paragraph (1) shall 
        receive a servicing fee, subject to approval by the Assistant 
        Secretary.
    (d) Assistance From Expert Firms.--The Assistant Secretary may 
retain the services of expert firms, including counsel, in the field of 
municipal and project finance to assist in the underwriting and 
servicing of Federal credit instruments.
    (e) Expedited Processing.--The Assistant Secretary shall implement 
procedures and measures to economize the time and cost involved in 
obtaining approval and the issuance of credit assistance under the 
BIFIA program.
    (f) Assistance to Small Projects.--Of the amount appropriated under 
section 10(a), and after the set-aside for administrative expenses 
under section 10(b), not less than 20 percent shall be made available 
for the Assistant Secretary to use in lieu of fees collected under 
subsection (b) for small projects.

SEC. 8. STATE AND LOCAL PERMITS.

    The provision of credit assistance under the BIFIA program with 
respect to a project shall not--
            (1) relieve any recipient of the assistance of any 
        obligation to obtain any required State or local permit or 
        approval with respect to the project;
            (2) limit the right of any State, political subdivision of 
        a State, or agency or instrumentality thereof to approve or 
        regulate any rate of return on private equity invested in the 
        project; or
            (3) otherwise supersede any State or local law (including 
        any regulation) applicable to the construction or operation of 
        the project.

SEC. 9. REGULATIONS.

    The Assistant Secretary may promulgate such regulations as the 
Assistant Secretary determines to be appropriate to carry out the BIFIA 
program.

SEC. 10. FUNDING.

    (a) Appropriation.--There are appropriated to the Assistant 
Secretary, out of any money in the Treasury not otherwise appropriated, 
$5,000,000,000 to carry out this Act for fiscal year 2021, to remain 
available until expended.
    (b) Administrative Expenses.--Of the amount appropriated under 
subsection (a), the Assistant Secretary may use not more than 5 percent 
for the administration of the BIFIA program.

SEC. 11. REPORTS TO CONGRESS.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, and every 2 years thereafter, the Assistant Secretary 
shall submit to Congress a report summarizing the financial performance 
of the projects that are receiving, or have received, assistance under 
the BIFIA program, including a recommendation as to whether the 
objectives of the BIFIA program are best served by--
            (1) continuing the program under the authority of the 
        Assistant Secretary; or
            (2) establishing a Federal corporation or federally 
        sponsored enterprise to administer the program.
    (b) Application Process Report.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, and annually thereafter, the Assistant 
        Secretary shall submit to the Committee on Commerce, Science, 
        and Transportation of the Senate and the Committee on Energy 
        and Commerce of the House of Representatives a report that 
        includes a list of all of the letters of interest and 
        applications received for assistance under the BIFIA program 
        during the preceding fiscal year.
            (2) Inclusions.--
                    (A) In general.--Each report under paragraph (1) 
                shall include, at a minimum, a description of, with 
                respect to each letter of interest and application 
                included in the report--
                            (i) the date on which the letter of 
                        interest or application was received;
                            (ii) the date on which a notification was 
                        provided to the applicant regarding whether the 
                        application was complete or incomplete;
                            (iii) the date on which a revised and 
                        completed application was submitted (if 
                        applicable);
                            (iv) the date on which a notification was 
                        provided to the applicant regarding whether the 
                        project was approved or disapproved; and
                            (v) if the project was not approved, the 
                        reason for the disapproval.
                    (B) Correspondence.--Each report under paragraph 
                (1) shall include copies of any correspondence provided 
                to the applicant in accordance with section 3(d).
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