Electromagnetic spectrum refers to electromagnetic waves that, with applied technology, can transmit signals to deliver voice, text, video, and other wireless communications. Electromagnetic spectrum is the entire range of wavelengths or frequencies of electromagnetic radiation extending from gamma rays to the longest radio waves. As new technologies become perfected and demand for access to spectrum increases, the use of all parts of the electromagnetic range is expanding as well. Common terms used in discussing electromagnetic spectrum include radio frequency spectrum, wireless spectrum, and airwaves. The allocation and assignment of radio frequency spectrum are managed by the Federal Communications Commission (FCC) for commercial and other nonfederal uses and by the National Telecommunications and Information Administration (NTIA) for federal government use. For purposes of allocation and assignment, spectrum is segmented into bands of radio frequencies measured in cycles per second, or hertz. Standard abbreviations for measuring frequencies include kHz—kilohertz or thousands of hertz; MHz—megahertz, or millions of hertz; and GHz—gigahertz, or billions of hertz. The designation can refer to an entire band, such as the 700 MHz band, or to specific frequencies within a band. Most licenses are issued on a geographic basis, serving a specific area (license coverage). As wireless technologies have evolved, the preferred size of licensed bands has increased. Current technologies, such as Long Term Evolution (LTE) and advanced Wi-Fi technologies, perform best on bandwidths of at least 20 MHz (for example, 10 MHz x 10 MHz of paired spectrum, although 20 MHz x 20 MHz or greater is preferred for LTE and LTE-Advanced). Geographic coverage for many licenses has been expanded as well, providing economies of scale for larger carriers while sometimes raising barriers to entry for smaller businesses. Current spectrum policy is based on managing channels of radio frequencies to avoid interference. The FCC, over many years, has developed and refined a system of exclusive licenses for users of specific frequencies. Auctions are perceived by many to be a market-driven solution to assigning licenses to use specific frequencies and are a comparatively recent innovation in spectrum management and policy. Previously, the FCC granted licenses using a process known as "comparative hearings" (also known as "beauty contests"), and has used lotteries to distribute spectrum licenses. The FCC also allocates spectrum for designated purposes, such as Wi-Fi, without assigning a license to a specific owner (unlicensed spectrum). The legislation that first authorized the FCC to establish "a system of competitive bidding" for a limited period was included in the Omnibus Budget Reconciliation Act of 1993 ( P.L. 103-66 ). The Balanced Budget Act of 1997 ( P.L. 105-33 ) gave the FCC auction authority until September 30, 2007. This authority was extended to September 30, 2011, by the Deficit Reduction Act of 2005 ( P.L. 109-171 ) and to 2012 by the DTV Delay Act ( P.L. 111-4 ). Title VI of the Middle Class Tax Relief and Job Creation Act of 2012 ( P.L. 112-96 ) addresses spectrum allocation and assignment in its provisions and is often referred to as the Public Safety and Spectrum Act, or the Spectrum Act. The Spectrum Act extended the FCC's auction authority until the end of FY2022. The Spectrum Pipeline Act extends auction authority through FY2025 for auctions required by the act. When radio frequency spectrum licenses are auctioned for commercial purposes by the FCC, the net proceeds are typically deposited in the U.S. Treasury. Each time Congress extends the FCC's authority to conduct auctions of spectrum licenses, new revenue is created for the Treasury. This revenue may be used to offset direct spending or other purposes, such as deficit reduction. For budget purposes, Congress typically does not extend auction authority more than 10 years from the effective date of any enacting legislation. Recent Administrations have recommended making the FCC's auction authority permanent. Over $40 billion in net proceeds have been generated by two auctions conducted by the FCC to meet requirements of the Spectrum Act, of which approximately $33 billion has been applied to deficit reduction. A third auction required by the act, the Broadcast Incentive Auction, began on March 29, 2016. The Congressional Budget Office (CBO) has projected that this auction will provide from $10 billion to $40 billion for deficit reduction, with the expected value set at $25 billion. Separately, the CBO has projected that net revenue from various actions, including auctions, required by the Spectrum Pipeline Act will contribute $4.4 billion to deficit reduction by the end of FY2025. Net proceeds from auctions of spectrum licenses as specified in the Spectrum Act are directed to the Public Safety Trust Fund, created by the act. Some revenue in the Public Safety Trust Fund is designated for specific purposes, primarily public safety. Of the initial projected revenue of nearly $28 billion, $20.4 billion was directed for deficit reduction. Additional auction revenues in excess of the projected amount are to be applied to deficit reduction. Proceeds from the sale of licenses of repurposed federal spectrum identified in the Spectrum Act are to be directed first to the Spectrum Relocation Fund, to cover costs of moving federal users, with the balance going to the Public Safety Trust Fund. Proceeds from the sale of advanced wireless service licenses in the other spectrum bands identified by the act are to go directly to the Public Safety Trust Fund. Proceeds from the auction of new licenses created by the release of television broadcasting spectrum are to go to cover costs specified in the act, with the balance to the Public Safety Trust Fund. Balances remaining in any fund created by the act are to revert to the Treasury in 2022 to be used "for the sole purpose of deficit reduction." The law provides for specific transfers from the Public Safety Trust Fund. A major beneficiary of funding is FirstNet (First Responder Network Authority), the nationwide broadband network to be developed for public safety communications as a federal agency within the NTIA. Auction proceeds are to be distributed in the following priority: To the NTIA, to reimburse the Treasury for funds advanced to cover the initial costs of establishing FirstNet: not to exceed $2 billion. To the State and Local Implementation Fund for grants to states to assist in their planning for FirstNet: $135 million. To the Network Construction Fund for FirstNet, for costs associated with building the nationwide network and for grants to states that qualify to build their own networks: $7 billion, reduced by the amount advanced to establish FirstNet in the first round of funding. To the National Institute of Standards and Technology (NIST) for public safety research: $100 million. To the Treasury for deficit reduction: $20.4 billion. To the NTIA and the National Highway Traffic Safety Administration for a grant program to improve 911 services: $115 million. To NIST for public safety research, phase two: $200 million. To the Treasury for deficit reduction: any remaining amounts from designated auction revenues. All of the funding obligations of the Spectrum Act have been met with proceeds from auctions held in 2014-2015. As required by the act, remaining net proceeds will be deposited in the Treasury for the purposes of deficit reduction. In scoring the Spectrum Act, CBO had originally projected that net revenue from all three auctions required by the Spectrum Act would be approximately $30 billion for three auctions. In order to score a bill that includes the auctioning or reassigning of spectrum licenses the CBO must establish a value for licenses. Three key estimates of value considered by the CBO are quantity of spectrum auctioned; market value of spectrum; and net proceeds. It also considers the historical values of earlier auctions. Spectrum license auctions that were considered in scoring the Spectrum Act were held during the period FY2001-FY2010. They yielded an average MHz-pop of $0.80, within a range of $0.55 to $1.10. Weighing these and other factors, the CBO initially projected that spectrum licenses auctioned during the FY2013-FY2021 period would have an average market value of $0.70 per megahertz per person. The score was subsequently revised slightly upwards to cover the period FY2013-FY2022. The results for completed auctions required by the Spectrum Act, in MHz-pop, are H Block, concluded February 2014; $0.50 MHz-pop, by a single winning bidder. AWS-3, concluded January 2015; average $2.21 MHz-pop. As noted in the section on auction revenue, the CBO later provided a new estimate for the remaining required auction, the Broadcast Incentive Auction. The expected value for this auction of $25 billion in net proceeds is based on a number of assumptions. At the time of the estimate, the quantity of spectrum to be auctioned was unknown as was the total amount broadcasters might be paid for relinquishing spectrum. The CBO reported that it assumed that the MHz-pop value would be similar to the $2.21 average of the AWS-3. An estimate in a February 2015 report commissioned by the FCC projected the MHz-pop would average $1.50. The Spectrum Act requires the FCC and the NTIA to identify specific bands for auction from spectrum designated for commercial advanced wireless services and for federal use, and in most cases to commence the auction process within three years. The act mandates spectrum license auctions for frequencies at 1915-1920 MHz; 1995-2000 MHz; 2155-2180 MHz; an additional 15 MHz to be identified by the FCC; and 15 MHz of spectrum between 1675 and 1710 MHz, subject to conditions in the act. The Secretary of Commerce was required to submit a report to the President identifying 15 MHz of spectrum between 1675 and 1710 MHz for reallocation from federal to nonfederal use.