II 112th CONGRESS 2d Session S. 2275 IN THE SENATE OF THE UNITED STATES March 29, 2012 Mrs. Gillibrand introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry A BILL To amend the Rural Electrification Act of 1936 to establish a grant program within the rural broadband program of the Department of Agriculture, and for other purposes.

1.

Short title

This Act may be cited as the Broadband Connections for Rural Opportunities Program Act of 2012 or the B-CROP Act of 2012.

2.

Broadband connections for rural opportunities program

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:

603.

Broadband connections for rural opportunities program

(a)

Definitions

In this section: (1)

Broadband service

The term broadband service has the meaning given the term in section 601(b). (2)

Eligible entity

The term eligible entity means an entity that is— (A)a private sector provider of broadband telecommunications services; or (B)a State, local, or tribal government, municipal provider, cooperative, institution of higher education, nonprofit organization, or public economic development organization. (3)

Eligible rural community

Unless the Secretary makes a finding in writing that an area is otherwise rural in character, the term eligible rural community means any area of the United States that is not— (A)included within the boundaries of any incorporated city, village, borough, or town with a population in excess of 50,000 inhabitants; or (B)the urbanized area contiguous and adjacent to a city, village, borough, or town described in subparagraph (A), as defined by the Bureau of the Census using the latest available decennial census of the United States. (b)

Purposes

The purposes of the grant program under this section are— (1)to enhance the feasibility of providing broadband service to eligible rural communities; and (2)to deploy broadband telecommunications networks and capabilities to areas in which there is not otherwise a business case for private investment in a broadband network, with a focus on unserved eligible rural communities. (c)

Grants authorized

(1)

In general

The Secretary shall award grants to eligible entities for deployment, identification, or adoption of broadband services within eligible rural communities. (2)

Amount

A grant awarded to an eligible entity under this section may not be made in excess of 50 percent of the eligible project development costs. (d)

Application

To be eligible to receive a grant under this section, an eligible entity shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require. (e)

Use of funds

A grant awarded to an eligible entity under this section shall be— (1)used to facilitate the deployment of broadband telecommunications networks and capabilities to areas in which there is not otherwise a business case for private investment in a broadband network, with a focus on unserved eligible rural communities; or (2)combined with loans to enhance economic feasibility of projects serving high cost areas in which there is not otherwise a business case for private investment in a broadband network, with a focus on unserved eligible rural communities. (f)

Priority

In awarding grants under this section, the Secretary shall give priority to project applications that— (1)as a percentage of the total applications, provide service to the highest proportion of rural residents that do not have access to broadband service; (2)will use broadband services to stimulate rural economic development, such as providing— (A)connections between and among businesses and business incubators located in eligible rural communities; and (B)connections that are integrated with county and regional organization plans. (g)

Processing period

(1)

In general

Not later than 180 days after the date on which funds are appropriated to carry out this section, the Secretary shall publish a notice of funds availability. (2)

Awards

Not later than the end of the fiscal year following the date on which a notice is published under paragraph (1), the Secretary shall announce grant awards under this section. (h)

Report

(1)

In general

Each recipient of a grant under this section shall submit to the Secretary a report describing the use of the funds provided by the grant. (2)

Secretarial report

Not later than 180 days after the date of enactment of this Act, and biannually thereafter until all funds are obligated, the Secretary shall submit a report to the Committees on Appropriations of the House of Representatives and the Senate that describes planned spending and actual obligations of the funds made available to carry out this section. (i)

Authorization of appropriations

There are authorized to be appropriated to carry out this section such sums as are necessary for each of fiscal years 2012 through 2014.

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3.

Improving the application process for the rural broadband program

(a)

In general

Section 601 of the Rural Electrification Act of 1936 (7 U.S.C. 950bb) is amended— (1)in subsection (c), by adding at the end the following: (3)

Paperwork reduction

The Secretary shall take such steps as are necessary to reduce the paperwork required of applicants under this section. (4)

Processing period

(A)

In general

Not later than 180 days after the date on which funds are appropriated to carry out this section, the Secretary shall publish a notice of funds availability. (B)

Awards

Not later than the end of the end of the fiscal year following the date on which a notice is published under subparagraph (A), the Secretary shall announce grant awards under this section. ; (2)by redesignating subsections (i) through (l) as subsections (k) through (n), respectively; and (3)by inserting after subsection (h) the following: (i)

Outreach

The Secretary shall conduct outreach designed to inform the population of areas in which there is no or limited broadband service of the program carried out under this section. (j)

Additional staff

The Secretary, in the discretion of the Secretary, may use up to 20 percent of the budget authority appropriated to carry out this section to hire such additional administrative personnel, including general field representatives and legal staff, as are necessary to carry out the administrative duties under this section. . (b)

Simplification of the application process and post-Application audit requirements

(1)

Definition of subsidiary

In this subsection, the term subsidiary means a business entity controlled, directly or indirectly, by another business entity or person. (2)

Requirements

In carrying out title VI of the Rural Electrification Act of 1936 (7 U.S.C. 950bb et seq.), the Secretary of Agriculture, in consultation with the Administrator of the Rural Utilities Service, shall, to the maximum extent practicable— (A)remove any duplicative or unnecessary application or audit requirements under that title; (B)reduce the cost and paperwork associated with the application and audit requirements, including allowing parent companies, and the wholly owned subsidiaries of parent companies, to file a single consolidated application or audit report, if the application or report includes all relevant financial information concerning the project that is the subject of the grant, loan, or loan guarantee; (C)ensure that the Secretary examines— (i)the total business plan of each applicant for a grant, loan, or loan guarantee under that title, including the revenue the applicant generated from sources unrelated to the broadband service of the applicant, but connected or otherwise related to the facilities financed by the grant, loan, or loan guarantee; and (ii)the requested information and projections provided by each applicant to ensure that there is no conflict with the regulatory obligations of the applicant to other Federal agencies including, at a minimum, to the Securities and Exchange Commission, the Federal Communications Commission, and the Federal Trade Commission; and (D)require that any recipient of a grant, loan, or loan guarantee under that title uses the funds from the grant, loan, or loan guarantee not later than 5 years after date of receipt of the funds to complete the project for which the funds were approved, unless the Secretary determines that the recipient was unable to expend the funds due to circumstances beyond the control of the recipient.

4.

Rural broadband program coordination

Title VI of the Rural Electrification Act of 1936 (7 U.S.C. 950bb et seq.) (as amended by section 3) is amended by adding at the end the following:

604.

Clearinghouse website

The Secretary may use up to 5 percent of the budget authority made available to carry out this section for a national competition to create and maintain a comprehensive and interactive rural broadband clearinghouse accessible on the Internet at no cost to the public that describes options, opportunities, resources, successful public-private partnerships, comprehensive funding sources, and technology tutorials for rural broadband, including— (1)case studies; (2)descriptions of best practices; (3)assessments of various technology solutions; (4)feasibility studies; (5)applications, including telework, telemedicine, distance learning, training, homeland security, senior citizen connectivity and program development, and business and economic development; (6)rural broadband options and policies analysis; (7)support for networks among rural communities and economic development agencies; and (8)a comprehensive list of municipal, nonprofit, and private sector providers.

605.

Report to Congress

Not later than 540 days after the date of enactment of this section and subsequently not later than the date that is 3 years after the date of the submission of initial report, the Comptroller General of the United States shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that includes— (1)an evaluation of the effectiveness of all Federal broadband assistance programs and policies aimed at fostering broadband access in rural and unserved areas, such as identifying and tracking— (A)rural areas in each State that do not have broadband service; (B)the rate at which residential and business end users adopt broadband service when infrastructure is made available; (C)possible suppliers of broadband service; (D)the speed of broadband service offered in rural areas that do have access; (E)barriers to the adoption of broadband service, including whether— (i)the demand for broadband service is absent; and (ii)the supply for broadband service is capable of meeting the demand for the service; (F)proposals for promoting interagency coordination of Federal agencies in regards to policies, procedures, and targeted resources, and means to improve and streamline the policies, programs and services; and (G)the adequacy of Federal and State universal service support programs and policies; (2)an assessment of best practices employed at the State and local government level to foster broadband access in rural and underserved areas; and (3)an evaluation of methods to coordinate and harmonize, to the maximum extent practicable, the efforts of the Department of Agriculture, the Department of Commerce, and the Federal Communications Commission to advance broadband deployment in rural areas throughout the United States.

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