Rural Connectivity Advancement Program Act of 2021
Bill: S.1885 | Sponsor: Sen. Thune, John (R-SD)
Policy area: Science, Technology, Communications

Summary:
Rural Connectivity Advancement Program Act of 2021
This bill sets aside 10% of the net proceeds from spectrum auctions to be deposited into a Rural Broadband Assessment and Deployment Fund, which shall be used for the buildout of broadband networks.
The Federal Communications Commission (FCC) must use the fund to establish one or more programs to address (1) gaps in broadband internet access service coverage in high-cost rural areas, and (2) insufficient funding of other programs that could adversely affect the sustainability of broadband services or comparability of rates supported by such programs. Further, the FCC must establish transparency and accountability requirements for addressing such coverage gaps and funding shortfalls, and it must report annually on the distribution of amounts from the fund.

To provide funds to assess the availability, accelerate the deployment, 
and improve the sustainability of advanced communications services and 
communications infrastructure in rural America, 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.

    This Act may be cited as the ``Rural Connectivity Advancement 
Program Act of 2021''.

SEC. 2. DEPOSIT OF SPECTRUM AUCTION PROCEEDS IN RURAL BROADBAND 
              ASSESSMENT AND DEPLOYMENT FUND.

    Section 309(j)(8) of the Communications Act of 1934 (47 U.S.C. 
309(j)(8)) is amended--
            (1) in subparagraph (A), by striking ``and (G)'' and 
        inserting ``(G), and (H)''; and
            (2) by adding at the end the following:
                    ``(H) Certain proceeds designated for rural 
                broadband assessment and deployment fund.--
                            ``(i) Assessment and deployment set-
                        aside.--Notwithstanding subparagraph (A), and 
                        except as provided in subparagraphs (B), (D), 
                        (E), (F), and (G), 10 percent of the net 
                        proceeds from each use of a system of 
                        competitive bidding under this subsection that 
                        is mandated by an Act of Congress and that 
                        begins on or after the date of enactment of the 
                        Rural Connectivity Advancement Program Act of 
                        2021 shall be deposited in the Rural Broadband 
                        Assessment and Deployment Fund established 
                        under section 3 of that Act.
                            ``(ii) Definition.--For purposes of this 
                        subparagraph, the term `net proceeds', with 
                        respect to the use of a system of competitive 
                        bidding, means the proceeds remaining after 
                        subtracting all auction-related expenditures, 
                        including--
                                    ``(I) relocation payments, 
                                including accelerated relocation 
                                payments;
                                    ``(II) payments to incumbent 
                                licensees for the relinquishment of all 
                                or a portion of the spectrum usage 
                                rights of those licensees;
                                    ``(III) costs associated with the 
                                reallocation of spectrum, whether on an 
                                exclusive or shared use basis;
                                    ``(IV) relocation or sharing costs, 
                                including for planning for relocation 
                                or sharing; and
                                    ``(V) bidding credits.''.

SEC. 3. DIRECTION AND USE OF RURAL BROADBAND ASSESSMENT AND DEPLOYMENT 
              FUND PROCEEDS.

    (a) Definitions.--In this section--
            (1) the term ``Commission'' means the Federal 
        Communications Commission;
            (2) the term ``high-cost programs'' means--
                    (A) the program for Universal Service Support for 
                High-Cost Areas set forth under subpart D of part 54 of 
                title 47, Code of Federal Regulations, or any successor 
                regulations;
                    (B) the Rural Digital Opportunity Fund set forth 
                under subpart J of part 54 of title 47, Code of Federal 
                Regulations, or any successor regulations;
                    (C) the Interstate Common Line Support Mechanism 
                for Rate-of-Return Carriers set forth under subpart K 
                of part 54 of title 47, Code of Federal Regulations, or 
                any successor regulations;
                    (D) the Mobility Fund set forth under subpart L of 
                part 54 of title 47, Code of Federal Regulations, or 
                any successor regulations;
                    (E) the High Cost Loop Support for Rate-of-Return 
                Carriers program set forth under subpart M of part 54 
                of title 47, Code of Federal Regulations, or any 
                successor regulations;
                    (F) the Uniendo a Puerto Rico Fund and the Connect 
                USVI Fund set forth under subpart O of part 54 of title 
                47, Code of Federal Regulations, or any successor 
                regulations; and
                    (G) the Rural Broadband Experiments, as established 
                by the Commission under part 54 of title 47, Code of 
                Federal Regulations;
            (3) the term ``net proceeds'' has the meaning given the 
        term in subparagraph (H) of section 309(j)(8) of the 
        Communications Act of 1934 (47 U.S.C. 309(j)(8)), as added by 
        section 2 of this Act; and
            (4) the term ``Rural Broadband Assessment and Deployment 
        Fund'' means the fund established under subsection (b).
    (b) Establishment of Fund.--There is established in the Treasury of 
the United States a fund to be known as the ``Rural Broadband 
Assessment and Deployment Fund''.
    (c) Borrowing Authority.--
            (1) In general.--With respect to any auction described in 
        subparagraph (H)(i) of section 309(j)(8) of the Communications 
        Act of 1934 (47 U.S.C. 309(j)(8)), as added by section 2 of 
        this Act, on or after the date on which the Commission makes a 
        final determination of the amount of net proceeds that will be 
        deposited in the Rural Broadband Assessment and Deployment Fund 
        under such subparagraph (H)(i) as a result of that auction, the 
        Commission may borrow not more than that amount from the 
        Treasury of the United States.
            (2) Reimbursement.--The Commission shall reimburse the 
        general fund of the Treasury, without interest, for any amounts 
        borrowed under paragraph (1) as funds are deposited into the 
        Rural Broadband Assessment and Deployment Fund.
    (d) Availability of Amounts.--Any amounts borrowed under subsection 
(c)(1) and any amounts in the Rural Broadband Assessment and Deployment 
Fund that are not necessary for reimbursement of the general fund of 
the Treasury for such borrowed amounts shall be available to the 
Commission for use in accordance with subsection (e).
    (e) Use of Amounts.--
            (1) Establishment of program or programs.--The Commission 
        shall use the amounts made available under subsection (d) to 
        establish 1 or more programs that are separate from, but are 
        coordinated with and complement, the high-cost programs to 
        address--
                    (A) gaps that remain in broadband internet access 
                service coverage in high-cost rural areas despite the 
                operations of the high-cost programs; and
                    (B) shortfalls in sufficient funding of the high-
                cost programs that could adversely affect the 
                sustainability of services or reasonable comparability 
                of rates that are supported by those programs.
            (2) Purposes.--In carrying out paragraph (1), the 
        Commission shall use amounts made available under subsection 
        (d) in an efficient and cost-effective manner only--
                    (A) for the assessment of, and to provide subsidies 
                in a technology-neutral manner through a competitive 
                process (subject to weighting preferences for 
                performance quality and other service metrics as the 
                Commission may find appropriate) to providers for 
                support of, deployment of broadband-capable 
                infrastructure in high-cost rural areas that the 
                Commission determines are unserved by fixed terrestrial 
                broadband internet access service at a download speed 
                of not less than 25 megabits per second and an upload 
                speed of not less than 3 megabits per second (or such 
                higher speed as the Commission may determine 
                appropriate based upon an evolving definition of 
                universal service); and
                    (B) to assess, and provide subsidies to providers 
                to enable providers to sustain, broadband internet 
                access service in any rural area in which--
                            (i) not more than 1 provider of fixed 
                        terrestrial broadband internet access service 
                        operates; and
                            (ii) the high-cost nature of the area 
                        precludes the offering of voice service and 
                        broadband internet access service at rates and 
                        performance levels available in urban areas as 
                        determined by the Urban Rate Survey conducted 
                        by the Commission.
            (3) Tribal considerations.--In distributing amounts under 
        this subsection, the Commission shall consider the broadband 
        internet access service needs of residents of Tribal lands (as 
        defined in section 54.400 of title 47, Code of Federal 
        Regulations, or any successor regulation).
            (4) Limitations.--
                    (A) Prohibition on funding other programs.--
                            (i) In general.--The Commission may not use 
                        amounts made available under subsection (d) to 
                        fund any program that was not established by 
                        the Commission under paragraph (1) of this 
                        subsection, including any program established 
                        under section 254 of the Communications Act of 
                        1934 (47 U.S.C. 254) in effect on the date of 
                        enactment of this Act, except for using the 
                        Universal Service Administrative Company to 
                        administer funding.
                            (ii) Rule of construction.--Nothing in 
                        clause (i) shall be construed to prohibit the 
                        Commission from using amounts made available 
                        under subsection (d) to supplement the 
                        provision of support under the high-cost 
                        programs, as authorized under paragraph (1)(B) 
                        of this subsection.
                    (B) Transparency and accountability for addressing 
                gaps in coverage.--The Commission shall establish 
                transparency and accountability requirements for 
                amounts made available for the purpose set forth in 
                paragraph (1)(A) that, at a minimum--
                            (i) provide--
                                    (I) a process for challenging any 
                                initial determination by the Commission 
                                regarding whether an area is served or 
                                unserved; and
                                    (II) written public notice on the 
                                website of the Commission of--
                                            (aa) how each challenge 
                                        under subparagraph (I) was 
                                        decided; and
                                            (bb) the reasons of the 
                                        Commission for each decision;
                            (ii) establish broadband service buildout 
                        milestones and require periodic certification 
                        by funding recipients to ensure compliance with 
                        the broadband service buildout milestones;
                            (iii) establish a maximum buildout 
                        timeframe of 4 years beginning on the date on 
                        which funding is provided to a funding 
                        recipient;
                            (iv) establish periodic reporting 
                        requirements for funding recipients that 
                        identify, at a minimum, the speed of, and 
                        technology used for, the service provided in 
                        each area where funding is provided;
                            (v) establish standard penalties for 
                        noncompliance with the requirements established 
                        under this subparagraph and as may be further 
                        prescribed by the Commission;
                            (vi) establish procedures for recovery of 
                        funds, in whole or in part, from funding 
                        recipients in the event of default or 
                        noncompliance with the requirements established 
                        under this subparagraph and as may be further 
                        prescribed by the Commission; and
                            (vii) require a funding recipient to--
                                    (I) offer voice service and 
                                broadband internet access service; and
                                    (II) permit a consumer to subscribe 
                                to one type of service described in 
                                subclause (I) or both types.
                    (C) Transparency and accountability for addressing 
                shortfalls in funding.--The Commission shall establish 
                transparency and accountability requirements for 
                amounts made available for the purpose set forth in 
                subparagraph (1)(B) that, at a minimum--
                            (i) establish periodic reporting and 
                        certification requirements for funding 
                        recipients to ensure that the funding results 
                        in the offering of voice service and broadband 
                        internet access service at reasonably 
                        comparable rates and performance levels;
                            (ii) establish standard penalties for 
                        noncompliance with the requirements established 
                        under this subparagraph and as may be further 
                        prescribed by the Commission;
                            (iii) establish procedures for recovery of 
                        funds, in whole or in part, from funding 
                        recipients in the event of default or 
                        noncompliance with the requirements established 
                        under this subparagraph and as may be further 
                        prescribed by the Commission; and
                            (iv) require a funding recipient to--
                                    (I) offer voice service and 
                                broadband internet access service; and
                                    (II) permit a consumer to subscribe 
                                to one type of service described in 
                                subclause (I) or both types.
    (f) Reports.--
            (1) Annual auction proceeds deployment report.--Not later 
        than 270 days after the date of enactment of this Act, and not 
        less frequently than annually thereafter until all amounts have 
        been distributed, the Commission shall publish and 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 on the distribution of amounts made 
        available under subsection (d).
            (2) Auction-specific deposit reports.--Not later than 30 
        days after the date on which the Commission announces the 
        results of an auction described in subparagraph (H)(i) of 
        section 309(j)(8) of the Communications Act of 1934 (47 U.S.C. 
        309(j)(8)), as added by section 2 of this Act, the Commission 
        shall publish and 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 
        estimates the amount of net proceeds that will be deposited in 
        the Rural Broadband Assessment and Deployment Fund under that 
        subparagraph as a result of that auction.
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