Rural Internet Improvement Act of 2022
Bill: S.5137 | Sponsor: Sen. Thune, John (R-SD)
Policy area: Science, Technology, Communications

Summary:
Rural Internet Improvement Act of 2022
This bill merges the pilot ReConnect Loan and Grant Program with existing loans and grants provided by the Department of Agriculture (USDA) to facilitate broadband access to rural areas that lack sufficient access to broadband. Unobligated amounts available for the pilot program must be transferred and made available, without further appropriations, to this merged program.
The bill specifies eligibility criteria and other requirements that apply to the merged program. For example, the bill limits funds from the merged program to projects in areas where at least 90% of the households lack sufficient access to broadband services, which is currently required under the pilot program.
Other changes in the bill address procedures for contesting the accuracy of broadband maps that are used to identify eligible areas. It also requires efforts to increase coordination concerning broadband initiatives between USDA, the Federal Communications Commission, and the National Telecommunications Information Administration.

To amend the Rural Electrification Act of 1936 to reauthorize and 
 improve the ReConnect loan and grant program, 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 Internet Improvement Act of 
2022''.

SEC. 2. STREAMLINING BROADBAND AUTHORITIES.

    (a) In General.--Section 601 of the Rural Electrification Act of 
1936 (7 U.S.C. 950bb) is amended--
            (1) by striking the section heading and inserting 
        ``reconnect program'';
            (2) in subsection (b)--
                    (A) by redesignating paragraph (3) as paragraph 
                (4); and
                    (B) by inserting after paragraph (2) the following:
            ``(3) Reconnect program.--The term `ReConnect Program' 
        means the program established under this section.'';
            (3) in subsection (c)--
                    (A) in paragraph (2)(A)--
                            (i) in clause (i)--
                                    (I) in subclause (I), by striking 
                                ``10-Mbps'' and inserting ``25-Mbps''; 
                                and
                                    (II) in subclause (II), by striking 
                                ``1-Mbps'' and inserting ``3-Mbps''; 
                                and
                            (ii) by striking clause (iv) and inserting 
                        the following:
                            ``(iv) give priority to applications from 
                        applicants that have demonstrated the technical 
                        and financial experience required to construct 
                        and operate broadband networks.''; and
                    (B) by adding at the end the following:
            ``(5) Applications.--The Secretary shall establish an 
        application process for grants, loans, and loan guarantees 
        under this section that--
                    ``(A) reduces the amount of data required to apply 
                by limiting the required data to only--
                            ``(i) the entity applying, excluding any 
                        parent or affiliate entity that is not a party 
                        to the application, to the greatest extent 
                        practicable; and
                            ``(ii) the geographic area affected by the 
                        application, if a parent or affiliate is not a 
                        party to the application;
                    ``(B) simplifies the data interfaces for submission 
                to the greatest extent practicable; and
                    ``(C) allows all applicants, regardless of whether 
                an applicant is publicly traded, to rely on a bond 
                rating of at least investment grade (when bond ratings 
                are available) in place of financial documentation.'';
            (4) in subsection (d)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B), by striking 
                        ``subsection (j)'' and inserting ``subsection 
                        (l)''; and
                            (ii) by adding at the end the following:
                    ``(C) Grant requirements.--The Secretary--
                            ``(i) shall not restrict the eligibility of 
                        an entity for a grant under this section based 
                        on the legal structure of the entity;
                            ``(ii) shall allow entities to apply for a 
                        grant under this section without regard to, or 
                        preference for, the legal structure of an 
                        entity;
                            ``(iii) in determining the financial 
                        ability of an entity to carry out a project 
                        using a grant under this section, shall allow 
                        the entity to demonstrate that financial 
                        ability by methods that--
                                    ``(I) the Secretary determines to 
                                be the least burdensome; and
                                    ``(II) subject to clause (v), are 
                                not limited to providing the Federal 
                                Government an exclusive first lien on 
                                all grant-funded assets during the 
                                service obligation of the grant;
                            ``(iv) subject to clause (v), in 
                        determining the required collateral to secure 
                        grant funds or to secure performance during the 
                        service obligation of a grant, shall allow an 
                        awardee to offer alternative security, such as 
                        a letter of credit, in lieu of providing the 
                        Federal Government an exclusive first lien on 
                        all grant-funded assets; and
                            ``(v) if the Secretary reasonably 
                        determines that alternative methods or 
                        alternative security established under clause 
                        (iii)(II) or (iv) are insufficient to secure 
                        performance with respect to a project under 
                        this section--
                                    ``(I) may require an entity to 
                                provide the Federal Government an 
                                exclusive first lien all grant-funded 
                                assets during the service obligation of 
                                the grant; and
                                    ``(II) shall release that lien 
                                after the Secretary determines that the 
                                entity is performing to the 
                                satisfaction of the Secretary.''; and
                    (B) in paragraph (2)--
                            (i) in subparagraph (A)(i), by striking 
                        ``50'' and inserting ``90''; and
                            (ii) by adding at the end the following:
                    ``(D) Obligations to provide broadband service in 
                the same service territory.--
                            ``(i) Definition of broadband 
                        infrastructure.--In this subparagraph, the term 
                        `broadband infrastructure' means any cables, 
                        fiber optics, wiring, or other permanent 
                        infrastructure that is integral to the 
                        structure, including fixed wireless 
                        infrastructure, that--
                                    ``(I) is capable of providing 
                                access to internet connections in 
                                individual locations; and
                                    ``(II) offers an advanced 
                                telecommunications capability (as 
                                defined in section 706(d) of the 
                                Telecommunications Act of 1996 (47 
                                U.S.C. 1302(d))).
                            ``(ii) Other providers.--The Secretary 
                        shall consider a proposed service territory 
                        with respect to which an eligible entity 
                        submits an application to carry out a project 
                        under this section to be served by broadband 
                        service if a broadband service provider other 
                        than that eligible entity is subject to an 
                        obligation by a Federal, State, or local 
                        government entity to build broadband 
                        infrastructure and offer broadband service in 
                        that service territory, subject to conditions--
                                    ``(I) under a Federal, State, or 
                                local funding award program; or
                                    ``(II) otherwise required by the 
                                Federal, State, or local government 
                                entity.
                            ``(iii) Other funding.--Subject to clause 
                        (iv), the Secretary shall not be required to 
                        consider a proposed service territory with 
                        respect to which an eligible entity submits an 
                        application to carry out a project under this 
                        section to be served by broadband service if 
                        that eligible entity has accepted an obligation 
                        under a Federal, State, or local funding award 
                        program to build broadband infrastructure and 
                        offer broadband service in that service 
                        territory, if the proposed project under this 
                        section--
                                    ``(I) would not be duplicative of 
                                the obligation under the other award 
                                program; and
                                    ``(II) would build broadband 
                                infrastructure that results in faster 
                                speeds or expedited milestones of 
                                deployment of broadband infrastructure 
                                in that service territory, as compared 
                                to the obligation under the other award 
                                program.
                            ``(iv) Other obligations for lower 
                        transmission capacity.--The Secretary shall 
                        consider a proposed service territory with 
                        respect to which an eligible entity submits an 
                        application to carry out a project under this 
                        section to be unserved by broadband service if 
                        an obligation under another award program 
                        described in clause (iii) would not provide 
                        broadband service of at least--
                                    ``(I) a 25-Mbps downstream 
                                transmission capacity; and
                                    ``(II) a 3-Mbps upstream 
                                transmission capacity.
                    ``(E) Requirements for funding.--
                            ``(i) Affiliate owned and operated 
                        networks.--A grant, loan, or loan guarantee 
                        under this section may be used to construct 
                        networks that will be owned and operated by an 
                        affiliate of the eligible entity receiving the 
                        grant, loan, or loan guarantee, subject to the 
                        condition that the eligible entity, the 
                        affiliate, or both, as the Secretary determines 
                        to be necessary, shall provide adequate 
                        security for the grant, loan, or loan 
                        guarantee.
                            ``(ii) Negative covenants and conditions.--
                        To the greatest extent practicable, a project 
                        carried out using a grant, loan, or loan 
                        guarantee under this section shall not add any 
                        new negative covenants or conditions to the 
                        grant, loan, or loan guarantee agreement that 
                        were not previously disclosed to the eligible 
                        entity at the time of application for the 
                        grant, loan, or loan guarantee.
                            ``(iii) Ownership of systems.--
                                    ``(I) In general.--A network 
                                constructed with a grant, loan, or loan 
                                guarantee under this section may be 
                                transferred to an unaffiliated provider 
                                that agrees--
                                            ``(aa) to assume the 
                                        service obligation; and
                                            ``(bb) to provide 
                                        appropriate and sufficient 
                                        security for that network.
                                    ``(II) Determination.--The 
                                Secretary shall not unreasonably 
                                withhold consent to enter into an 
                                appropriate agreement described in 
                                subclause (I) with the transferee based 
                                on an evaluation by the Secretary of 
                                the ability of the transferee to assume 
                                the agreement and provide security 
                                described in item (bb) of that 
                                subclause.
                            ``(iv) Reporting and auditing.--The 
                        Secretary shall--
                                    ``(I) simplify, to the maximum 
                                extent practicable, ongoing reporting 
                                and auditing requirements for 
                                recipients of a grant, loan, or loan 
                                guarantee under this section; and
                                    ``(II) allow a recipient described 
                                in subclause (I) whose financial 
                                information is consolidated with the 
                                financial information of a parent 
                                entity to rely on that consolidated 
                                financial information in complying with 
                                the requirements described in that 
                                subclause if the parent entity is 
                                providing a guarantee on behalf of a 
                                subsidiary of the parent entity with 
                                respect to the grant, loan, or loan 
                                guarantee.
                            ``(v) Procurement and contracting.--The 
                        Secretary--
                                    ``(I) shall simplify, to the 
                                maximum extent practicable, 
                                requirements for recipients of a grant, 
                                loan, or loan guarantee under this 
                                section relating to the procurement of 
                                materials and retention of contractors; 
                                and
                                    ``(II) shall not unreasonably 
                                restrict the ability of a recipient 
                                described in subclause (I) to obtain 
                                goods and services from affiliated 
                                entities.'';
            (5) in subsection (e)(1)--
                    (A) in subparagraph (A), by striking ``25-Mbps'' 
                and inserting ``100-Mbps''; and
                    (B) in subparagraph (B), by striking ``3-Mbps'' and 
                inserting ``20-Mbps'';
            (6) by redesignating subsections (j) and (k) as subsections 
        (l) and (m), respectively;
            (7) by inserting after subsection (i) the following:
    ``(j) Regulations.--The Secretary shall issue regulations to carry 
out this section in accordance with section 553 of title 5, United 
States Code.
    ``(k) Annual Reports.--Not later than 120 days after the date of 
enactment of the Rural Internet Improvement Act of 2022, and not less 
frequently than annually thereafter, the Secretary shall--
            ``(1) publish a report describing--
                    ``(A) the distribution of amounts made available 
                under the ReConnect Program for the preceding year;
                    ``(B) the number of locations at which broadband 
                service was made available using amounts under the 
                ReConnect Program for the preceding year;
                    ``(C) the number of locations described in 
                subparagraph (B) at which broadband service was used; 
                and
                    ``(D) the highest level of broadband service made 
                available at each location described in subparagraph 
                (B); and
            ``(2) submit the report described in paragraph (1) to--
                    ``(A) the Committee on Agriculture, Nutrition, and 
                Forestry of the Senate;
                    ``(B) the Committee on Commerce, Science, and 
                Transportation of the Senate;
                    ``(C) the Committee on Agriculture of the House of 
                Representatives; and
                    ``(D) the Committee on Energy and Commerce of the 
                House of Representatives.''; and
            (8) in subsection (l) (as so redesignated), in paragraph 
        (1), by striking ``$350,000,000 for each of fiscal years 2019 
        through 2023'' and inserting ``such sums as are necessary for 
        each fiscal year''.
    (b) Sunset.--Beginning on the date that is 120 days after the date 
of enactment of this Act, section 779 of division A of the Consolidated 
Appropriations Act, 2018 (Public Law 115-141; 132 Stat. 399), shall 
have no force or effect.
    (c) Transfer of Amounts.--The unobligated balance, as of the date 
that is 120 days after the date of enactment of this Act, of any 
amounts made available to carry out the pilot program described in 
section 779 of division A of the Consolidated Appropriations Act, 2018 
(Public Law 115-141; 132 Stat. 399)--
            (1) is transferred to, and merged with, amounts made 
        available to carry out section 601 of the Rural Electrification 
        Act of 1936 (7 U.S.C. 950bb); and
            (2) shall remain available, until expended, and without 
        further appropriation, to carry out the ReConnect Program 
        established under that section.
    (d) Effect.--Title VI of the Rural Electrification Act of 1936 (7 
U.S.C. 950bb et seq.) is amended by adding at the end the following:

``SEC. 607. EFFECT.

    ``Nothing in this title authorizes the Secretary to regulate rates 
charged for broadband service.''.
    (e) Public Notice, Assessments, and Reporting Requirements.--
Section 701 of the Rural Electrification Act of 1936 (7 U.S.C. 950cc) 
is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)(A), by inserting ``, including 
                a complete shapefile map'' after ``applicant''; and
                    (B) in paragraph (2)(D), by striking ``(c)'' and 
                inserting ``(d)'';
            (2) by redesignating subsections (b) through (e) as 
        subsections (c) through (f), respectively;
            (3) by inserting after subsection (a) the following:
    ``(b) Challenge Process.--
            ``(1) In general.--The Secretary shall establish a 
        transparent, evidence based, and expeditious process for 
        challenging, with respect to any area for which assistance is 
        sought under an application described in subsection (a)(1), 
        whether that area has access to broadband service.
            ``(2) Notice.--The Secretary shall make publicly available 
        on the website of the Department of Agriculture a written 
        notice describing--
                    ``(A) the decision of the Secretary on each 
                challenge submitted under paragraph (1); and
                    ``(B) the reasons for each decision described in 
                subparagraph (A).''; and
            (4) by adding at the end the following:
    ``(g) Public Notice of Eligible Funding Areas.--Prior to making 
available to the public the database under subsection (a), the 
Secretary shall make available to the public a fully searchable 
database on the website of the Rural Utilities Service that contains 
information on areas eligible for assistance under retail broadband 
projects that are administered by the Secretary in accordance with the 
maps created by the Federal Communications Commission under section 
802(c)(1) of the Communications Act of 1934 (47 U.S.C. 642(c)(1)).''.
    (f) Federal Broadband Program Coordination.--Section 6212 of the 
Agriculture Improvement Act of 2018 (7 U.S.C. 950bb-6) is amended--
            (1) by redesignating subsections (a), (b), (c), and (d) as 
        subsections (b), (c), (e), and (a), respectively, and moving 
        the subsections so as to appear in alphabetical order;
            (2) in subsection (a) (as so redesignated), in paragraph 
        (3), by striking ``section 601(b)(3) of the Rural 
        Electrification Act of 1936'' and inserting ``section 601(b) of 
        the Rural Electrification Act of 1936 (7 U.S.C. 950bb(b))'';
            (3) in subsection (c) (as so redesignated), in paragraph 
        (1)--
                    (A) by striking ``The Secretary'' and inserting the 
                following:
                    ``(A) In general.--The Secretary''; and
                    (B) by adding at the end the following:
                    ``(B) Reconnect program.--On awarding a grant, 
                loan, or loan guarantee under the ReConnect Program 
                established under section 601 of the Rural 
                Electrification Act of 1936 (7 U.S.C. 950bb), the 
                Secretary shall notify the Commission of that award.''; 
                and
            (4) by inserting after subsection (c) (as so redesignated) 
        the following:
    ``(d) Memorandum of Understanding Relating to Outreach.--The 
Secretary shall enter into a memorandum of understanding with the 
Assistant Secretary and the Commission to facilitate outreach to 
residents and businesses in rural areas, including--
            ``(1) to evaluate the broadband service needs in rural 
        areas;
            ``(2) to inform residents and businesses in rural areas of 
        available Federal programs that promote broadband access, 
        broadband affordability, and broadband inclusion; and
            ``(3) for such additional goals as the Secretary, the 
        Assistant Secretary, and the Commission determine to be 
        appropriate.''.
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