7 USC 950 - Access to broadband telecommunications services in rural areas

View all text of Subchapter VI [§ 950bb - § 950bb-6]

§ 950bb. Access to broadband telecommunications services in rural areas

(a) Purpose

(b) DefinitionsIn this section:

(1) Broadband service

(2) Incumbent service provider

(3) Rural area

(A) In generalThe term “rural area” means any area other than—

(i) an area described in clause (i) or (ii) of

(ii) in the case of a grant or direct loan, a city, town, or incorporated area that has a population of greater than 20,000 inhabitants.

(B) Urban area growth

(1) In general

(2) Priority

(A) In generalIn making grants, making loans, and guaranteeing loans under paragraph (1), the Secretary shall—

(i) give the highest priority to applications for projects to provide broadband service to unserved rural communities that do not have any residential broadband service of at least—(I) a 10-Mbps downstream transmission capacity; and(II) a 1-Mbps upstream transmission capacity;

(ii) give priority to applications for projects to provide the maximum level of broadband service to the greatest proportion of rural households in the proposed service area identified in the application;

(iii) provide equal consideration to all eligible entities, including those that have not previously received grants, loans, or loan guarantees under paragraph (1); and

(iv) with respect to 2 or more applications that are given the same priority under clause (i), give priority to an application that requests less grant funding than loan funding.

(B) OtherAfter giving priority to the applications described in clauses (i) and (ii) of subparagraph (A), the Secretary shall then give priority to applications—

(i) for projects to provide broadband service to rural communities—(I) with a population of less than 10,000 permanent residents;(II) that are experiencing outmigration and have adopted a strategic community investment plan under section 2008v(d) of this title that includes considerations for improving and expanding broadband service;(III) with a high percentage of low income families or persons (as defined in section 1471(b) of title 42);(IV) that are isolated from other significant population centers; or(V) that provide rapid and expanded deployment of fixed and mobile broadband on cropland and ranchland within a service territory for use in various applications of precision agriculture; and

(ii) that were developed with the participation of, and will receive a substantial portion of the funding for the project from, 2 or more stakeholders, including—(I) State, local, and tribal governments;(II) nonprofit institutions;(III) community anchor institutions, such as—(aa) public libraries;(bb) elementary schools and secondary schools (as defined in section 7801 of title 20);(cc) institutions of higher education; and(dd) health care facilities;(IV) private entities;(V) philanthropic organizations; and(VI) cooperatives.

(3) Grant amounts

(A) Definition of development costsIn this paragraph, the term “development costs” means costs of—

(i) construction, including labor and materials;

(ii) project applications; and

(iii) other development activities, as determined by the Secretary.

(B) EligibilityTo be eligible for a grant under this section, in addition to the requirements of subsection (d), the project that is the subject of the grant shall—

(i) be carried out in a proposed service territory in which not less than 90 percent of the households are unserved; and

(ii) not concurrently receive any other broadband grant administered by the Rural Utilities Service.

(i) 75 percent of the total project cost with respect to an area with a density of fewer than 7 people per square mile;

(ii) 50 percent of the total project cost with respect to an area with a density of 7 or more and fewer than 12 people per square mile; and

(iii) 25 percent of the total project cost with respect to an area with a density of 12 or more and 20 or fewer people per square mile.

(D) Secretarial authority to adjustThe Secretary may—

(i) make grants of up to 75 percent of the development costs of the project for which the grant is provided to an eligible entity if the Secretary determines that the project serves—(I) an area of rural households described in paragraph (2)(A)(i); or(II) a rural community described in any of subclauses (I) through (IV) of paragraph (2)(B)(i); and

(ii) make modifications of the density thresholds described in subparagraph (C), in order to ensure that funds provided under this section are best utilized to provide broadband service in communities that are the most rural in character.

(E) ApplicationsThe Secretary shall establish an application process for grants under this section that—

(i) permits a single application for a grant and a loan under subchapter I, II, or this subchapter that is associated with such grant; and

(ii) provides a single decision to award such grant and such loan.

(F) Density determinationsWhen determining population density under this section, the Secretary shall prescribe a calculation method which—

(i) utilizes publicly available data; and

(ii) includes only those areas in which the applicant is able to meet the service requirements under this section, as determined by the Secretary.

(4) Fees

(d) Eligibility

(1) Eligible entities

(A) In generalTo be eligible to obtain a grant, loan, or loan guarantee under this section, an entity shall—

(i) demonstrate the ability to furnish or improve service in order to meet the broadband buildout requirements established under subsection (e)(4) in all or part of an unserved or underserved rural area;

(ii) submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require; and

(iii) agree to complete buildout of the broadband infrastructure described in the application by not later than 5 years after the initial date on which assistance under this section is made available.

(B) Limitation

(2) Eligible projects

(A) In generalExcept as provided in subparagraphs (B) and (C), assistance under this section may be used to carry out a project in a proposed service territory only if, as of the date on which the application of the eligible entity is submitted—

(i) not less than 50 percent (in the case of loans or loan guarantees provided in accordance with subsection (g)(1)(A)) of the households in the proposed service territory are unserved or have service levels below the minimum acceptable level of fixed broadband service, whether terrestrial or wireless, established under subsection (e); and

(ii) broadband service is not provided in any part of the proposed service territory by 3 or more incumbent service providers.

(B) Exception to percent requirement

(i) In general

(ii) Exception

(3) Equity and market survey requirements

(A) In general

(B) Market survey

(i) In general

(ii) Less than 20 percent

(iii) InformationInformation submitted under this subparagraph shall be—(I) certified by the affected community, city, county, or designee; or(II) demonstrated on—(aa) the broadband map of the affected State if the map contains address-level data; or(bb) the National Broadband Map if address-level data is unavailable.

(4) State and local governments and Indian tribes

(5) Technical assistance and training

(A) In generalThe Secretary may provide to eligible entities described in paragraph (1) that are applying for assistance under this section for a project described in subsection (c)(2)(A)(i) technical assistance and training—

(i) to prepare reports and surveys necessary to request grants, loans, and loan guarantees under this section for broadband deployment;

(ii) to improve management, including financial management, relating to the proposed broadband deployment;

(iii) to prepare applications for grants, loans, and loan guarantees under this section; or

(iv) to assist with other areas of need identified by the Secretary.

(B) Funding

(e) Broadband service

(1) In generalSubject to paragraph (2), for purposes of this section, the minimum acceptable level of broadband service for a rural area shall be at least—

(A) a 25-Mbps downstream transmission capacity; and

(B) a 3-Mbps upstream transmission capacity.

(2) Adjustments

(3) Prohibition

(4) Broadband buildout requirements

(A) In general

(B) Broadband buildout requirements further definedSubject to subparagraph (C), the Secretary shall establish broadband buildout requirements for projects with agreement lengths of—

(i) 5 to 10 years;

(ii) 11 to 15 years;

(iii) 16 to 20 years; and

(iv) more than 20 years.

(i) utilize the same metrics used to define the minimum acceptable level of broadband service under paragraph (1); 1

1 So in original. Probably should be followed by “and”.

(ii) establish such requirements to reasonably ensure—(I) the repayment of all loans and loan guarantees; and(II) the financed network is technically capable of providing broadband service for the lifetime of any project-related agreement.

(D) Substitute service standards for unique service territories

(f) Technological neutrality

(g) Terms and conditions for loans and loan guarantees

(1) In generalNotwithstanding any other provision of law, a loan or loan guarantee under this section shall—

(A) bear interest at an annual rate of, as determined by the Secretary—

(i) in the case of a direct loan, a rate equivalent to—(I) the cost of borrowing to the Department of the Treasury for obligations of comparable maturity; or(II) 4 percent; and

(ii) in the case of a guaranteed loan, the current applicable market rate for a loan of comparable maturity; and

(B) have a term of such length, not exceeding 35 years, as the borrower may request, if the Secretary determines that the loan is adequately secured.

(2) Recurring revenue

(h) Adequacy of security

(1) In general

(2) Determination of amount and method of security

(i) Payment assistance for certain loan and grant recipients

(1) Use of grant funds

(2) Payment assistanceWhen providing a grant under this subchapter, the Secretary, at the sole discretion of the Secretary, may make—

(A) a subsidized loan, which shall bear a reduced interest rate at such a rate as the Secretary determines appropriate to meet the objectives of the program; or

(B) a payment assistance loan, which shall—

(i) require no interest and principal payments while the borrower is—(I) in material compliance with the loan agreement; and(II) meeting the milestones and objectives of the project agreed to under paragraph (3); and

(ii) require such nominal periodic payments as the Secretary determines to be appropriate.

(3) Agreement on milestones and objectives

(4) Amendment of milestones and objectives

(5) ConsiderationsWhen deciding to utilize the payment assistance authority under paragraph (2) the Secretary shall consider whether or not the payment assistance will—

(A) improve the compliance of the grantee with any commitments made through the grant agreement;

(B) promote the completion of the broadband project;

(D) support the integrity of the broadband programs administered by the Secretary.

(6) Limitations on payment assistance

(j) Funding

(1) Authorization of appropriations

(2) Allocation of funds

(A) In generalFrom amounts made available for each fiscal year under this subsection, the Secretary shall—

(i) establish a national reserve for loans and loan guarantees to eligible entities in States under this section; and

(ii) allocate amounts in the reserve to each State for each fiscal year for loans and loan guarantees to eligible entities in the State.

(B) AmountThe amount of an allocation made to a State for a fiscal year under subparagraph (A) shall bear the same ratio to the amount of allocations made for all States for the fiscal year as—

(i) the number of communities with a population of 2,500 inhabitants or less in the State; bears to

(ii) the number of communities with a population of 2,500 inhabitants or less in all States.

(k) Termination of authority

(May 20, 1936, ch. 432, title VI, § 601, as added Pub. L. 107–171, title VI, § 6103(a), May 13, 2002, 116 Stat. 415; amended Pub. L. 108–199, div. A, title VII, § 772, Jan. 23, 2004, 118 Stat. 40; Pub. L. 110–234, title VI, § 6110(a), May 22, 2008, 122 Stat. 1199; Pub. L. 110–246, § 4(a), title VI, § 6110(a), June 18, 2008, 122 Stat. 1664, 1960; Pub. L. 113–79, title VI, § 6104(a), Feb. 7, 2014, 128 Stat. 851; Pub. L. 115–334, title VI, §§ 6201, 6301(b), Dec. 20, 2018, 132 Stat. 4729, 4748.)