[Senate Report 112-260]
[From the U.S. Government Publishing Office]
112th Congress Report
SENATE
2d Session 112-260
_______________________________________________________________________
Calendar No. 546
PUBLIC SAFETY SPECTRUM AND WIRELESS INNOVATION ACT
__________
R E P O R T
OF THE
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 911
December 21, 2012.--Ordered to be printed
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred twelfth congress
second session
JOHN D. ROCKEFELLER IV, West Virginia, Chairman
DANIEL K. INOUYE, Hawaii\1\ KAY BAILEY HUTCHISON, Texas
JOHN F. KERRY, Massachusetts OLYMPIA J. SNOWE, Maine
BARBARA BOXER, California JIM DeMINT, South Carolina
BILL NELSON, Florida JOHN THUNE, South Dakota
MARIA CANTWELL, Washington ROGER F. WICKER, Mississippi
FRANK R. LAUTENBERG, New Jersey JOHNNY ISAKSON, Georgia
MARK PRYOR, Arkansas ROY BLUNT, Missouri
CLAIRE McCASKILL, Missouri JOHN BOOZMAN, Arkansas
AMY KLOBUCHAR, Minnesota PATRICK J. TOOMEY, Pennsylvania
TOM UDALL, New Mexico MARCO RUBIO, Florida
MARK WARNER, Virginia KELLY AYOTTE, New Hampshire
MARK BEGICH, Alaska DEAN HELLER, Nevada
Ellen Doneski, Staff Director
James Reid, Deputy Staff Director
John Williams, General Counsel
Richard Russell, Republican Staff Director
David Quinalty, Republican Deputy Staff Director
Rebecca Seidel, Republican General Counsel
----------
\1\The late Senator Inouye served on the Committee until his death on
December 17, 2012.
Calendar No. 546
112th Congress Report
SENATE
2d Session 112-260
======================================================================
PUBLIC SAFETY SPECTRUM AND WIRELESS INNOVATION ACT
_______
December 21, 2012.--Ordered to be printed
_______
Mr. Rockefeller, from the Committee on Commerce, Science, and
Transportation, submitted the following
R E P O R T
[To accompany S. 911]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 911) to establish the sense of
Congress that Congress should enact, and the President should
sign, bipartisan legislation to strengthen public safety and to
enhance wireless communications, having considered the same,
reports favorably thereon with an amendment (in the nature of a
substitute) and recommends that the bill (as amended) do pass.
Purpose of the Bill
The purpose of S. 911, the Public Safety Spectrum and
Wireless Innovation Act, as reported, is to provide for the
creation and deployment of a nationwide interoperable wireless
broadband network for public safety; to provide the Federal
Communications Commission (FCC) with incentive auction
authority; to facilitate more efficient uses of spectrum used
by Federal Government users; and to provide for deficit
reduction.
Background and Needs
Wireless services are a vital part of our daily life, a key
component of our national infrastructure, and a growing force
in the American economy. Today, more than eight in ten adults
own a mobile telephone. But they use their wireless connections
to do much more than just speak. Nearly six in ten adults now
go online wirelessly, using either a mobile telephone or a
laptop. Moreover, the growing market created by the mobile
Internet has become a driving force for the nation's economy
and a source of new jobs. According to a recent Mobile Future
study, the reassignment of spectrum to mobile broadband over
the next five years could spur $75 billion in new capital
spending, creating more than 300,000 new jobs and $230 billion
in additional Gross Domestic Product. Similarly, Deloitte
estimates that United States investment in fourth generation 4G
wireless networks during the next five years could account for
as much as $151 billion in gross domestic product growth and as
many as 771,000 new jobs.
In addition, wireless broadband services can improve the
ability of our Nation's first responders to protect us in
emergencies. For instance, cutting-edge mobile technologies can
provide firefighters with access to high-speed downloads, such
as floor plans for a burning building, to better navigate and
ultimately reach potential victims. Mobile broadband also has
become critical for Federal agencies to continue their
missions, such as national defense and homeland security.
But for new mobile technologies to meet the growing demands
of commercial and public safety users, they need access to more
of the airwaves-radio spectrum-on which they rely. Radio
spectrum is the portion of electromagnetic frequencies suitable
for wireless communications. In light of the importance of
wireless infrastructure in the economy, the growing popularity
of wireless devices, and the increasing demand for this scarce
resource, it is prudent to consider how both Federal and non-
Federal licensees make use of the airwaves today. Failure to
make smart use of spectrum could lead to less mobile coverage,
diminished service quality, and slower service speeds.
Moreover, unless additional spectrum is made available for
mobile broadband, wireless innovation may slow or even stop.
This could have a negative effect on the economy and hamper
innovation. In the past, the Federal Government has addressed
the need for more spectrum on a band-by-band or service-by-
service basis. But sometimes this approach can be inefficient,
limit flexibility, and make reacting to changing technology
difficult.
S. 911 addresses the limitations of the traditional approach
to spectrum management by using a new tool, called voluntary
incentive auctions, to manage spectrum. By allowing current
spectrum users to realize a portion of the revenue generated
from reassigning their license, incentive auctions will provide
a financial incentive for current spectrum users to work with
the FCC to reallocate their licenses for efficient uses, such
as mobile broadband. But more importantly, these voluntary
incentive auctions also will raise funds to build a nationwide
wireless broadband network for our nation's first responders.
Finally, additional proceeds that are expected from the
incentive auctions will help reduce the Federal deficit by
billions of dollars.
I. LACK OF NATIONWIDE INTEROPERABLE BROADBAND NETWORK FOR PUBLIC SAFETY
Despite being almost 10 years since the September 11, 2001
tragedies, and almost 6 years since Hurricane Katrina, there is
no nationwide interoperable public safety communications
system.
As a practical matter, this means that there is no common
system that enables public safety entities to communicate among
one another-both across agencies and between jurisdictions.
To date, some jurisdictions have achieved varying degrees of
interoperability within their locality, region, or State.
However, these systems have been focused on narrowband
communications. Narrowband networks typically are limited to
voice communications, a lot like traditional dispatch radio
services. They have served public safety for decades but
generally lack the sophistication and functionality of most
modern commercial communications networks.
The long-term goal for public safety communications is
finding a way to provide interoperable communications on a
nationwide basis over broadband networks. Broadband networks
can make it possible for public safety entities to be able to
remotely access criminal databases, distribute surveillance
video feeds to on-scene personnel, and receive high-speed file
downloads wirelessly. Broadband can also enhance the Nation's
next-generation 911 system, integrating support for multimedia
communications (such as text, e-mail, and video) into the
existing E911 system. In short, they can make public safety
officials more effective, more efficient, and more capable of
communicating with one another.
In its 2004 report, the National Commission on Terrorist
Attacks Upon the United States (9-11 Commission) called
attention to this need for public safety communications
interoperability. Specifically, the 9-11 Commission found that
first responders were unable to communicate at the World Trade
Center, Pentagon, and Somerset, Pennsylvania crash sites. The
9-11 Commission concluded that this was ``strong evidence that
compatible and adequate communications among public safety
organizations at the local, State, and Federal levels remains
an important problem.'' As a result, in its report, the 9-11
Commission called for the expedited and increased assignment of
radio spectrum for public safety purposes. More recently, in
March of this year, the Chairman and Vice Chairman of the 9-11
Commission, former Governor Tom Kean and former Congressman Lee
Hamilton, urged Congress to finally address this problem by
immediately allocating a 10 megahertz band of 700 MHz spectrum
known as the D Block to public safety to help form a nationwide
interoperable wireless broadband network for first responders.
Despite these consistent calls for a nationwide interoperable
wireless broadband network for public safety, first responders
currently lack the spectrum and funding necessary to facilitate
national, interoperable, broadband-capable communications.
Roughly half the spectrum that has been allocated for public
safety services in the past has physical characteristics that
are suitable for local hotspots around individual incidents,
but are ill-suited for a nationwide broadband network. Much of
the remaining spectrum allocated for public safety is made up
of small slices that are designed for narrowband voice
communications, with limited broadband capability. And this
patchwork of narrow blocks of spectrum is too diverse and
scattered to be tied together into a single, nationwide network
suitable for ubiquitous broadband service.
In addition to a lack of suitable spectrum, public safety
lacks the financial resources to develop a nationwide broadband
network. Instead, previous Federal grant programs, including
the Public Safety Interoperable Communications Program and
Broadband Technology Opportunities Program, have focused on
developing local networks with limited geographic scope and
public safety access. Such networks may eventually be
interoperable with a nationwide system, but these local
networks alone are insufficient to cover the entire nation.
Moreover, because they are only local or regional in nature,
they often have been procured at high cost and without the
efficiency that comes with national scale. Consequently, the
sums spent to date on interoperability have led to networks and
equipment that lack nationwide capability, fall short of true
interoperability, and are often focused only on voice service,
rather than broadband functionality. In short, while some
progress has been made in developing local interoperability for
first responders, past programs do not answer the call for a
nationwide, interoperable, wireless broadband network for
public safety that was first made in the 9-11 Commission report
and repeated by the Chairman and Vice Chairman of the 9-11
Commission before Congress this year.
BACKGROUND.
The 700 MHz band was made available for wireless services as
part of the digital television transition. Under the Balanced
Budget Act of 1997, Congress directed the FCC to set aside 24
megahertz of spectrum in the 700 MHz band for public safety
use.
Later, Congress passed the Digital Television Transition and
Public Safety Act (DTV Act) as part of the Deficit Reduction
Act of 2005 (P.L. 109-171). Under the DTV Act, the FCC was
directed to auction 63 megahertz of spectrum designated for
commercial services in the 700 MHz band of spectrum vacated by
full-power television stations transitioning to digital-only
broadcasts.
In 2007, the FCC allocated 10 megahertz of the 700 MHz public
safety spectrum for broadband communications, consolidated
existing narrowband allocations in 12 megahertz of the band,
and created an internal guard band of 2 megahertz between the
broadband and narrowband allocations.
In establishing auction rules for the 700 MHz band (Auction
73), the FCC proposed to set aside the 10 MHz of broadband
public safety spectrum and pair it with 10 MHz of commercial
spectrum known as the D Block. Together, these blocks would
create a shared network of 20 megahertz for a nationwide
broadband network. The future auction winner of the D Block
would have been required to enter into a public-private
partnership with the public safety broadband licensee to build
a shared nationwide network, according to specifications
negotiated with the public safety licensee.
On March 18, 2008, Auction 73 ended with the only bid for the
D Block license falling well below the reserve price set by the
FCC. Following the unsuccessful auction, the FCC sought comment
on alternative options for the disposal of the D Block.
Comments in response ranged from advocating for the
unencumbered auction of the D Block to the granting of spectrum
to regional public safety entities to an auction using a
revised public-private partnership model. This rulemaking
remains pending at the FCC.
In the interim, several public safety jurisdictions (waiver
jurisdictions) have sought waivers to begin construction of
local or regional wireless broadband systems on the 10
megahertz of public safety broadband spectrum. On May 12, 2010,
the FCC conditionally approved 21 of these waiver petitions,
subject to a number of conditions designed to ensure that
early-built systems will be interoperable nationwide and
capable of being integrated with the eventual national network.
The FCC made clear that the overarching goal was to ensure a
nationwide interoperable network available to all public safety
personnel. The FCC also made clear that any deployment or
expenditures made by waiver jurisdictions were undertaken at
their own risk. On May 12, 2011, the FCC conditionally approved
an additional waiver jurisdiction. Several other jurisdictions
subsequently have sought similar waivers. Those requests remain
pending at the FCC.
FCC'S NATIONAL BROADBAND PLAN.
In light of the D Block's history, the FCC staff's National
Broadband Plan in March 2010, recommended that the FCC abandon
the public-private partnership previously contemplated.
Instead, the plan recommended that the FCC re-auction the D
Block spectrum for commercial purposes. Rather than imposing a
requirement on an eventual D Block auction winner to build a
joint network, the plan instead recommended that the FCC create
incentives to encourage--but not require--the D Block winner to
partner with public safety. The plan also recommended that
public safety build and operate its own network in the 10
megahertz of spectrum previously allocated to it and, if
feasible, leverage the commercial build-out by the D Block
winner or other commercial licensees.
To help public safety fund the initial construction of its
network in the 10 megahertz of spectrum, the National Broadband
Plan recommended that Congress appropriate $6.5 billion for a
public safety wireless broadband spectrum grant program. To
help public safety continue to operate this network in the
long-term, the plan recommended that Congress authorize an
ongoing funding mechanism of as much as $9.5 billion over the
next ten years.
PUBLIC SAFETY RESPONSE.
With near unanimity, public safety officials opposed the
National Broadband Plan's recommendation to auction the D
Block. Specifically, they noted that the D Block is immediately
adjacent to the existing public safety broadband allocation,
and therefore is uniquely valuable to first responders.
Furthermore, they noted that combining these two pieces of
spectrum is critical to future public safety broadband needs.
Doing so will provide public safety with additional throughput
capacity and help it avoid the problems public safety has
encountered in the past with attempts to achieve
interoperability over multiple spectrum bands. Moreover, as
more essential communications migrate to broadband and wireless
platforms, combining the spectrum will provide public safety
officials with the capacity to adopt advanced communications
technologies in an economically efficient way, improving local,
regional, and national safety.
Critics of the National Broadband Plan also noted that the
recommendation to allow public safety entities to gain priority
access to commercial networks ignores the reality that
commercial networks are not constructed and hardened to public
safety specifications. This could result in commercial networks
being unavailable to first responders in emergencies--the very
time public safety needs access to reliable and interoperable
communications.
Finally, critics of the plan acknowledge that over the years,
significant sums have been spent trying to help public safety
achieve interoperable communications among their legacy
narrowband systems. But they point out that past efforts have
been focused on retrofitting and knitting together outdated and
proprietary equipment and infrastructure, using diverse slivers
of spectrum bands to achieve interoperability. This approach
has not been uniformly successful, and typically has only
produced local or regional system compatibility. Moreover,
continuing this patchwork approach is extraordinarily expensive
and unlikely to yield nationwide results. As a result, a
wireless broadband network for public safety--with 20 megahertz
of contiguous spectrum available nationwide and with sufficient
funding--will provide a critical fresh start, alleviate
challenges public safety has faced in achieving
interoperability in the past, and provide room for wireless
service growth in the future. Furthermore, this can be
accomplished in an economically efficient way by leveraging
existing commercial infrastructure and capitalizing on the
significant efficiencies possible with an Evolved Packet Core
associated with Radio Access Networks deployed nationwide.
PRESIDENT'S WIRELESS INNOVATION AND INFRASTRUCTURE INITIATIVE.
On June 28, 2010, the President issued a Memorandum titled
``Unleashing the Wireless Broadband Revolution.'' It provided a
framework to expand wireless broadband services through
repurposing spectrum, with the goal of making available a total
of 500 megahertz of Federal and non-Federal spectrum suitable
for mobile and fixed wireless services over the next ten years.
In his January 25, 2011, State of the Union address, the
President highlighted the important role of wireless
infrastructure in the economy. His speech included a call for
policies that enable businesses to provide high-speed wireless
service to at least 98 percent of all Americans within five
years. He also noted that wireless broadband services can
improve public safety, citing the example of a firefighter
being able to download to a handset the blueprint of a burning
building.
The State of the Union was followed by the February 10, 2011
release of the President's ``Wireless Innovation and
Infrastructure Initiative.'' This Initiative builds on the
themes in the earlier Presidential Memorandum. It calls on
Congress to facilitate the availability of additional spectrum
to meet the growing demand for wireless services. Specifically,
the Initiative recommends providing the FCC with authority to
hold voluntary incentive auctions to promote the more efficient
use of our airwaves and further efforts to promote the more
efficient use of Federal government spectrum. The Initiative
also recommends reallocating the D Block spectrum for public
safety use. It estimates that the auction of spectrum
voluntarily relinquished by current commercial users through
incentive auctions could fund the development and deployment of
a nationwide interoperable wireless broadband network for
public safety; fund research and development in emerging
wireless technologies and applications; and reduce the deficit
by billions of dollars over the next decade.
II. NEED FOR ADDITIONAL SPECTRUM FOR WIRELESS BROADBAND
A growing number of Americans are using wireless services to
access the Internet and broadband-enabled services. One-third
of mobile telephones in this country are now smartphones that
feature Internet functionality and broadband capability. Last
year alone, mobile data traffic grew by 300 percent.
Moreover, mobile broadband services are an engine for the
economy and a source of job creation. Over the past decade, the
wireless industry has spent more than $185 billion in private
capital and created approximately 420,000 new jobs. In the next
five years, mobile broadband applications alone are predicted
to generate $38 billion in sales. Plus, there is growing demand
for additional unlicensed spectrum-the spectrum that is already
responsible for important services like Wi-Fi. Some have
estimated that use of unlicensed spectrum already generates up
to $30 billion in value for the economy each year. More
unlicensed spectrum can enable new innovations that can bring
in tens of billions of dollars in additional economic value in
the coming years.
This growing demand for wireless service clearly informed the
Presidential Memorandum and Presidential Initiative, and led to
the Administration calling for efforts to make 500 megahertz of
spectrum newly available for both mobile and fixed wireless
broadband uses over the next ten years. As noted above, to help
accomplish these goals, the President called on Congress to
authorize the FCC to hold voluntary incentive auctions. In an
incentive auction, existing license holders can receive a
portion of the proceeds realized by the auction of their
spectrum licenses. This sharing of proceeds creates inducements
for licensees to cooperate with the FCC in reallocating their
licenses for wireless broadband.
A bipartisan group of 112 economists, including Nobel and
Nemmers Laureates, endorsed the President's plan to give the
FCC authority to use voluntary incentive auctions to increase
spectrum efficiency. On April 6, 2011, these economists sent a
letter to the President, noting that current efforts to
repurpose spectrum typically involve complex, multi-party
transactions. In contrast, centralized incentive auctions would
use a market-based approach to facilitate the repurposing of
spectrum while minimizing transaction costs. The economists
also suggested that the FCC be given flexibility to work with
auction experts to design the auction rules to maximize
economic and societal benefits.
III. IMPROVEMENTS TO FEDERAL GOVERNMENT SPECTRUM USE POLICIES
Federal agencies use spectrum for a variety of purposes,
including national defense, law enforcement, emergency relief,
scientific research, weather data analysis, space, and maritime
and air traffic control. The National Telecommunications and
Information Administration (NTIA) at the Department of Commerce
oversees Federal uses of spectrum.
The NTIA reviews and certifies spectrum support for new
Federal systems, coordinates satellite operations, conducts
border coordination and international negotiation, coordinates
strategic planning, and performs spectrum engineering and
analysis. More than 60 Federal agencies receive spectrum
assignments from the NTIA. To help direct how these agencies
should best use spectrum to meet their needs, the NTIA relies
on assistance from the Interdepartment Radio Advisory
Committee, which is comprised of representatives from 19
Federal agencies.
Still, critics have charged that Federal spectrum users can
be more efficient with the airwaves allocated to them by the
NTIA, especially as wireless needs and technology evolve over
time. This is challenging, however, because the Federal
government often operates a variety of systems within a
specific band that may have little in common from a
technological perspective.
Efforts to date to promote efficient use and repurpose
Federal spectrum for commercial use include the Commercial
Spectrum Enhancement Act (P.L. 108-494). That law established a
Spectrum Relocation Fund through which Federal agencies can
recover the cost of relocating their radio systems from
spectrum bands that are authorized for commercial auction.
However, additional resources may be necessary for spectrum
planning to promote and reward efficient Federal use in advance
of commercial auction authorization.
As noted above, the Presidential Memorandum announced the
goal of securing an additional 500 megahertz of spectrum
suitable for wireless broadband use over the next decade. As
part of this effort, the President directed the Secretary of
Commerce, working through the NTIA, to collaborate with the FCC
to develop a specific plan and timetable for making this
spectrum available for commercial use. The NTIA was instructed
to convene a Policy and Plans Steering Group to advise it, with
support from the Secretaries of Defense, the Treasury,
Transportation, State, the Interior, Agriculture, Energy, and
Homeland Security; the Attorney General; the Administrators of
the National Aeronautics and Space Administration and the
Federal Aviation Administration; the Director of National
Intelligence; the Commandant of the United States Coast Guard;
and the head of any other executive department or agency that
is currently authorized to use spectrum.
On November 15, 2010, the NTIA produced a ten-year plan
designed to meet the President's goal. The report identified
over 2200 megahertz of Federal and non-Federal spectrum as
prospects for repurposing for broadband use and set a timetable
for making 500 megahertz available. The NTIA report also called
for incentives to help Federal agencies relocate to new
spectrum, including funding agencies' planning expenses and
provisioning a portion of the proceeds from spectrum auctions
to purchase new equipment.
In addition, the NTIA performed a ``Fast Track Evaluation''
to determine if any of four specific Federal spectrum bands
could be made available within five years. The evaluation
identified 15 megahertz between 1695 and 1710 MHz. As part of
this evaluation, the NTIA concluded that the 1695-1710 MHz band
offered opportunity for wireless broadband while minimizing
overall disruption to Federal agencies. However, the NTIA
concluded that the 1690-1695 MHz band would be difficult to
reallocate because emergency managers and the public rely on
information broadcast on that band from National Oceanographic
and Atmospheric Administration satellites. This information
includes severe weather warnings and forecasts via the
Emergency Manager's Weather Information Network and re-
broadcast data from ground-based sensors, such as flood gauges.
As part of this evaluation, the NTIA also considered options
to reallocate the 3500-3650 MHz spectrum band and concluded
that the 3550-3650 MHz band offered the best opportunity to
implement wireless broadband over large portions of the United
States, subject to exclusion zones. The NTIA found that
repurposing spectrum above 3550 MHz greatly reduced the
potential for interference from high power radars operating
below 3500 MHz. The NTIA also recommended studying 40 megahertz
within 4200 and 4400 MHz to determine whether radio altimeters
operating in these bands would be affected.
Finally, on January 31, 2011, the NTIA announced plans to
prioritize a detailed analysis of the 1755-1850 MHz band, which
is currently used by the Department of Defense, Federal law
enforcement agencies, and other agencies for a variety of
satellite, surveillance, aeronautical operations, fixed
microwave and other operations. The NTIA focused on this band
because the frequencies are particularly well suited for
commercial broadband--the band is harmonized internationally
for mobile operations, wireless equipment already exists, and
the band has characteristics advantageous for mobile
operations. For these reasons, the National Broadband Plan also
recommended studying this spectrum for possible pairing with
the 2155-2180 MHz band at auction.
IV. IMPORTANCE OF OVER-THE-AIR BROADCASTING
Broadcasting is an important feature of the national media
landscape and a significant use of our national spectrum
resources. In exchange for licenses to use public spectrum,
broadcasters are expected to use this resource and provide
programming ``in the public interest.'' As a result, many
broadcasters provide news, information, and entertainment that
is locally significant. Moreover, as a uniquely local medium,
broadcasters often reflect the values of the communities in
which they provide service.
Reliance on over-the-air television broadcasting has declined
over the last decade. Most television viewers enjoy local
broadcasting news, information, and entertainment programming
through multichannel video programming services (MVPDs). It is
the intent of the Committee that broadcast licensees wishing to
serve their communities and remain in the business of local
broadcasting should have a reasonable opportunity to do so,
consistent with the terms of their existing license and the
public interest.
Summary of Provisions
S. 911 would directly allocate the 700 MHz D Block spectrum
to public safety for pairing with previously allocated 700 MHz
spectrum to allow for a contiguous wireless network in the 700
MHz band that will meet the needs of public safety for many
years to come. S. 911 would also make Federal funds available
to guarantee that first responders across the country will have
access to a modern interoperable wireless broadband network.
The costs of this network would be offset by proceeds from
spectrum auctions authorized in the bill. The bill would
establish a streamlined, independent non-profit Corporation to
hold the public safety broadband spectrum license, to build and
oversee the wireless network, and to ensure seamless nationwide
interoperability. The Corporation would be charged with
ensuring a nationwide architecture that controls costs by
leveraging economies of scope and scale. The nationwide
architecture would also prevent the mistakes of the past by
protecting against balkanized, proprietary, local networks that
cannot be truly interoperable.
The bill would put in place a number of accountability and
transparency measures to ensure that the funds are spent wisely
and efficiently. In addition, the bill would direct the
Corporation to leverage existing infrastructure and to enter
into public-private partnerships to maximize cost-savings and
efficiencies. The bill would also create a National Institute
of Standards and Technology (NIST)-directed program to research
and develop standards, technologies, and applications that
advance wireless public safety communication.
S. 911 would direct the FCC to auction prime wireless
broadband spectrum for commercial uses, including the
reallocation of at least 55 megahertz of spectrum currently
held by the Federal government. The bill also would provide the
FCC with incentive auction authority while ensuring that such
auctions are voluntary. In connection with voluntary incentive
auctions, the bill would put in place a number of protections
for television broadcasters. The bill would make clear that
broadcasters will not be forced to involuntarily share channels
as a result of the repacking process. The bill would direct the
FCC to preserve station population coverage and avoid increases
in signal interference as a result of the repacking process.
Furthermore, the bill would guarantee a portion of incentive
auction proceeds will be directed to assist broadcasters and
MVPDs affected by the repacking process.
S. 911 importantly would dedicate revenues from these
spectrum auctions, especially the new incentive auctions, to
solve a pressing national public safety need--funding for a
nationwide interoperable wireless broadband network for first
responders. While the Committee understands that any rules the
FCC would adopt to implement incentive auctions will be complex
and will need to balance competing interests, an important
consideration for the FCC must be the need to provide adequate
funding for our nation's first responders.
S. 911 would also foster commercial innovation and more
efficient uses of Federal government spectrum. The bill would
promote more innovative and efficient use of commercial
spectrum by giving the FCC flexibility to create new unlicensed
spectrum, directing the FCC to promote a more robust secondary
spectrum market and to update and streamline its experimental
license regulations, and directing the Government
Accountability Office (GAO) to study receiver standards. The
bill would increase research efforts at the National Science
Foundation (NSF), NIST, and Defense Advanced Research Projects
Agency (DARPA) in advanced information and communications
technologies. The bill would direct the FCC and the NTIA to
conduct a joint spectrum inventory. In addition, the bill would
update the spectrum relocation process to facilitate
opportunities and incentives for Federal government spectrum
sharing and reallocation. The bill would direct Federal
agencies to study the economic value of the spectrum that they
use to better inform Federal spectrum management decisions.
Finally, the bill would direct the NTIA and the FCC to develop
a comprehensive strategic national spectrum plan.
Legislative History
In the 111th Congress, Senator Rockefeller, Chairman of the
Senate Committee on Commerce, Science, and Transportation,
introduced the Public Safety Spectrum and Wireless Innovation
Act, S. 3756, on August 5, 2010. The bill was co-sponsored by
Senators Reid, Burris, Gillibrand, Harkin, Lautenberg, Bill
Nelson, Klobuchar, and Cardin. On September 23, 2010, the
Committee held a hearing on ``Keeping Us Safe: The Need for a
National Public Safety Network,'' during which S. 3756 was
addressed.
In the 112th Congress, Senator Rockefeller reintroduced the
Public Safety Spectrum and Wireless Innovation Act, S. 28, on
January 25, 2011. The bill is co-sponsored by Senators Cardin,
Harkin, Klobuchar, Lautenberg, Bill Nelson, Schumer,
Gillibrand, Kerry, Bennet, Boxer, Franken, Casey, Mikulski, and
Manchin. On February 16, 2011, the Committee held a hearing on
``Safeguarding Our Future: Building a Nationwide Network for
First Responders,'' during which S. 28 was addressed.
On May 9, 2011, Senator Rockefeller and Senator Hutchison
introduced S. 911. The Committee held an executive session on
June 8, 2011, during which S. 911 was considered. Senators
Rockefeller and Hutchison submitted a substitute amendment to
S. 911, which was adopted by a recorded vote of 21 yeas to 4
nays. The following seventeen amendments were incorporated into
the Rockefeller-Hutchison substitute amendment to S. 911,
creating a manager's package that was agreed to during the
Executive Session.
Senator Ayotte offered an amendment to prohibit the Public
Safety Broadband Corporation from offering commercial
telecommunications services directly to consumers.
Senator Blunt offered an amendment that would require the FCC
to issue a report to Congress within five years on the
development and use of unlicensed spectrum.
Senator Cantwell offered first- and second-degree amendments
that would require the FCC to assign licenses through
competitive bidding for the first 84 MHz of spectrum reclaimed
through an incentive auction. After that 84 MHz threshold is
reached, the FCC would be permitted, if consistent with the
public interest, to disburse a portion of the proceeds from the
auction to other licensees to make sure that unlicensed
spectrum in the UHF spectrum bands remains available nationwide
and in each local market.
Senator DeMint offered five amendments that were accepted as
part of the manager's package. The first makes the term for the
license for the D Block spectrum that is issued to the Public
Safety Broadband Corporation a renewable ten-year period. The
second requires the Chairman of the Board to be a Non-Federal
Member. The third defines a quorum of the Board as consisting
of at least six Non-Federal Members. The fourth accelerates the
migration of public safety narrowband communications and
equipment to the new broadband network. The fifth extends the
FCC's authority to reallocate Mobile Satellite Spectrum through
an incentive auction indefinitely.
Senator Hutchison offered an amendment to authorize the FCC
to allow low-power television in the UHF band to relocate to
the VHF band, to the extent feasible and in the public
interest.
Senator Klobuchar offered first and second degree amendments
to commission a study from the National Highway Traffic Safety
Administration on the cost of implementing Next Generation 9-1-
1 (NG 9-1-1) services. The amendments would also instruct the
FCC to make recommendations to Congress on the laws and
regulations necessary to establish and develop effective NG 9-
1-1 services.
Senator Rubio offered three amendments that were accepted as
part of the manager's package. The first would instruct the
Secretary of Commerce to seek rural and urban representation as
part of the Corporation's Board. The second amendment would
direct the Corporation to seek to leverage existing commercial
wireless infrastructure to the maximum extent economically
desirable. Senator Rubio's third amendment would cause any
unused funds in the Spectrum Relocation Fund to revert to the
U.S. Treasury after eight years.
Senator Toomey offered two amendments that were accepted as
part of the manager's package. The first amendment prohibits
the Corporation from engaging in any lobbying activities. The
second requires the Government Accountability Office to conduct
an annual audit of the Corporation.
Senator Warner offered two amendments that were accepted as
part of the manager's package. The first provides for a
transitional analysis of the public safety network attributes,
to be conducted by NIST in consultation with the Departments of
Homeland Security and Justice and the Office of Management and
Budget. The second instructs the FCC to report to Congress on
the spectrum used by public safety licensees or for public
safety services pursuant to section 337(f) of the
Communications Act of 1934 (47 U.S.C. 337).
Senator Toomey offered an additional amendment that would
have eliminated a provision authorizing $1 billion for
telecommunications research and development, but the amendment
was rejected by a recorded vote of 16 yeas to 9 nays.
Finally, during the executive session, the Committee ordered
that S. 911, as amended, be reported.
With some modifications, the provisions of S. 911 were
enacted into law as title VI of the Middle Class Tax Relief and
Job Creation Act of 2012 (P.L. 112-96), which was signed into
law on February 22, 2012.
Estimated Costs
In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Office:
S. 911--Public Safety Spectrum and Wireless Innovation Act
Summary: S. 911 would modify existing law regarding federal
management of the electromagnetic spectrum. It would extend and
expand the Federal Communications Commission's (FCC's)
authority to auction licenses for commercial uses of the radio
spectrum and would authorize agencies to spend some of those
receipts for new purposes. Other provisions would create a
Public Safety Broadband Corporation, which would receive
federal financing to develop a wireless broadband network using
spectrum provided by the bill. Finally, the bill would require
several agencies to conduct studies and issue regulations
related to spectrum management, including measures aimed at
expediting the siting of telecommunications facilities.
CBO estimates that enacting S. 911 would reduce net direct
spending by $6.5 billion over the 2012-2021 period; therefore,
pay-as-you-go procedures apply to the bill. The projected
savings reflect an estimated increase in offsetting receipts
from FCC auctions of $24.5 billion (which count against direct
spending) and an increase in direct spending of $18.0 billion.
Enacting this bill would not affect revenues.
In addition, CBO estimates that implementing this bill
would increase discretionary spending by $43 million over the
2012-2016 period, assuming appropriation of the necessary
amounts.
S. 911 contains intergovernmental and private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
because it would impose new requirements on television
broadcast stations and cable operators--some of which are
operated by state and local governments--and other distributors
of television programming. The bill also would impose an
intergovernmental mandate by preempting state and local laws
governing wireless towers. CBO estimates that the aggregate
cost of intergovernmental mandates in the bill would fall below
the annual threshold established in UMRA ($71 million in 2011,
adjusted annually for inflation). The bill could impose
additional private-sector mandates on providers of cell phone
services. Based on information from the FCC and industry
sources, CBO estimates that the aggregate cost of complying
with the private-sector mandates would exceed the annual
threshold established in UMRA ($142 million in 2011, adjusted
annually for inflation).
The bill would appropriate up to $1 billion for payments to
offset the mandate costs to television broadcast stations,
cable operators, and other distributors of television
programming. Also, the bill would require providers of cell
phone services to be compensated for costs that result from the
bill.
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 911 is shown in the following table.
Most of the costs of this legislation fall within budget
functions 050 (national defense), 370 (commerce and housing
credit), 750 (administration of justice), 800 (general
government), and 950 (undistributed offsetting receipts).
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By fiscal year, in millions of dollars--
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2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012-2016 2012-2021
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CHANGES IN DIRECT SPENDING
Extend and Expand FCC Auction Authority
Estimated Budget Authority.............................. 0 35 -500 -3,400 -4,500 -5,100 -4,200 -3,400 -1,700 -1,700 -8,365 -24,465
Estimated Outlays....................................... 0 35 -500 -3,400 -4,500 -5,100 -4,200 -3,400 -1,700 -1,700 -8,365 -24,465
Transfer of ``D'' Block Spectrum
Estimated Budget Authority.............................. 1,375 1,375 0 0 0 0 0 0 0 0 2,750 2,750
Estimated Outlays....................................... 1,375 1,375 0 0 0 0 0 0 0 0 2,750 2,750
Public Safety Broadband Corporation
Estimated Budget Authority.............................. 25 150 950 2,450 2,550 2,500 2,100 1,050 600 150 6,125 12,525
Estimated Outlays....................................... 25 150 950 2,450 2,550 2,500 2,100 1,050 600 150 6,125 12,525
State and Local Grants
Estimated Budget Authority.............................. 250 0 0 0 0 0 0 0 0 0 250 250
Estimated Outlays....................................... 10 113 88 39 0 0 0 0 0 0 250 250
Research and Development Programs
Estimated Budget Authority.............................. 0 0 300 300 300 0 0 0 0 0 900 900
Estimated Outlays....................................... 0 0 135 240 276 156 57 24 9 3 651 900
Federal Relocation Costs
Estimated Budget Authority.............................. 45 50 50 90 140 190 190 190 190 190 375 1,325
Estimated Outlays....................................... 45 50 50 90 140 190 190 190 190 190 375 1,325
Other
Estimated Budget Authority.............................. 6 12 14 27 31 32 32 32 32 32 90 250
Estimated Outlays....................................... 6 12 14 27 31 32 32 32 32 32 90 250
Total Changes
Estimated Budget Authority.............................. 1,701 1,622 814 -533 -1,479 -2,378 -1,878 -2,128 -878 -1,328 2,125 -6,465
Estimated Outlays....................................... 1,461 1,735 737 -554 -1,503 -2,222 -1,821 -2,104 -869 -1,325 1,876 -6,465
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level............................... 26 1 4 3 10 0 4 0 4 6 44 58
Estimated Outlays........................................... 22 5 4 3 9 2 3 1 3 6 43 58
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Basis of Estimate: For this estimate, CBO assumes that S.
911 will be enacted near the end of fiscal year 2011, that the
necessary amounts to implement the bill will be appropriated
for each fiscal year, and that outlays will occur at the
historical rates for similar activities.
Direct Spending. S. 911 would affect direct spending by
generating additional offsetting receipts from auctions of
licenses to use the electromagnetic spectrum (which count as a
credit against direct spending) and by increasing the amounts
that can be spent without further appropriation for various
initiatives related to public safety and federal management of
spectrum. On balance, 030 estimates that enacting this
legislation would reduce net direct spending by $6.5 billion
over the 2012-2021 period.
Extend and Expand FCC Auction Authority. S. 911 would amend
existing law regarding the FCC's authority to auction licenses
to use the electromagnetic spectrum. It would extend the
commission's auction authority, which is currently scheduled to
expire at the end of fiscal year 2012, through 2021. The FCC
would be directed to auction certain frequencies by January 31,
2014, including 95 megahertz (MHz) of spectrum that is
currently used by the Department of Defense (DoD) and other
agencies. Other provisions would establish a statutory
framework for what are known as ``incentive auctions,'' in
which private firms (primarily television station owners) would
voluntarily relinquish some or all of their existing spectrum
rights in exchange for a payment from the FCC. That spectrum
would then be available for new licensed or unlicensed
services. To implement incentive auctions, the bill would:
Authorize the FCC to spend auction receipts to pay
firms that voluntarily relinquish their licenses;
Appropriate up to $1 billion from auction receipts
to create an Incentive Relocation Fund administered by the
National Technology Information Administration (NTIA). The fund
would be used to pay television broadcasters who do not
relinquish their licenses for costs the FCC would impose to
change their channel assignment as part of the process of
clearing spectrum for nonbroadcast services. The fund also
would cover certain expenses incurred by cable operators and
other distributors of television programming.
Allow the FCC to spend auction receipts to
compensate television broadcasters who do not relinquish their
license for any modifications made by the FCC to the quality or
scope of their coverage as a result of efforts to clear
spectrum for nonbroadcast services; and
Allow the FCC to make some television broadcast
frequencies available for unlicensed use if the amount of
spectrum awarded through competitive auctions is at least 84
MHz.
CBO estimates that enacting those provisions would reduce
direct spending by $24.5 billion over the 2012-2021 period.
That estimate reflects the expected value of offsetting
receipts (based on the outcomes of various scenarios regarding
the quantity and quality of frequencies likely to be auctioned
over this period), net of direct spending to compensate
existing licensees affected by the auctions.
Quantity of Spectrum Auctioned. Both the FCC and NTIA are
studying options for making up to 500 MHz of spectrum available
for broadband services, with a goal of making 300 MHz available
within the next few years. Most of the spectrum projected to be
auctioned over the 2013-2021 period would require moving
existing licensees off their current frequencies, by either
relocating them to new spectrum or paying them to stop using
the frequencies. This approach contrasts with past auctions,
which offered spectrum made available as a result of gains in
engineering and spectrum management efficiency.
It is difficult to predict how much spectrum would be
auctioned by 2021 because of the time and cost involved in
moving existing users. For example, the amounts auctioned as a
result of incentive auctions would depend on the willingness of
two satellite licensees and dozens of television broadcasters
to sell their existing spectrum rights at a price that is below
the market value of their licenses. Similarly, DoD and other
federal users cannot relinquish their current assignments until
they are given alternative frequencies, which also may require
moving some commercial licensees to different frequencies. Past
experience suggests that relocating federal and commercial
users can be very costly and take many years to complete.
Given the procedural and financial uncertainties involved
in making spectrum available, CBO expects that the amount of
spectrum auctioned by 2021 probably would range from about 150
MHz to 225 MHz of spectrum below 3 gigahertz (frequencies below
that benchmark are considered optimal for wireless broadband
services). That range assumes that the FCC may allocate some
broadcast frequencies for unlicensed uses and that much of the
spectrum used by federal agencies identified in the bill would
not be available for commercial services until after 2021. CBO
also anticipates that the FCC would auction licenses to use
frequencies above 3 gigahertz over this period. By comparison,
approximately 142 MHz was auctioned for advanced wireless
services over the 2001-2010 period.
Market value of spectrum licenses. The unit price of
frequencies considered suitable for wireless broadband
services--which are commonly measured in terms of the price
paid per MHz per person\1\--have recently ranged from 55 cents
to over $1, depending on the characteristics of the spectrum.
Winning bids for the 142 MHz auctioned since 2001 generated
receipts of about $33 billion, or a weighted average of about
80 cents per MHz per person.\2\
---------------------------------------------------------------------------
\1\The amounts paid for spectrum licenses depends on many factors,
including the projected profitability of services supported by the
spectrum, the engineering characteristics of the frequencies,
geographic variations among markets, and the financial and strategic
interests of the firms participating in the auction. Winning bids are
commonly expressed per unit of coverage, which is defined as the
product of a license's bandwidth multiplied by the population of the
geographic area it covers, or dollars per MHz per person.
\2\Those figures exclude a 2005 auction of licenses that originally
were issued in the 1990s and financed by the federal government. Income
from the re-auction of those licenses was recorded in the budget as
recoveries on the loans.
---------------------------------------------------------------------------
CBO estimates that the weighted average unit price paid by
winning bidders over the 2013-2021 period probably would be
lower than in recent years, or about 70 cents per MHz per
person. That decline reflects expected differences in the
quality and quantity of spectrum expected to be auctioned. For
example, according to the Government Accountability Office
(GAO), there may be significant geographic, technical, and
timing constraints on the commercial use of frequencies
reallocated from federal users, which would lower the value of
those licenses.\3\ CBO's estimate also includes the effect on
prices from the supply of spectrum projected to be available
under this bill and from sources other than federal auctions,
including administrative reallocations, secondary markets, and
the spectrum that would be provided by S. 911 to the Public
Safety Broadband Corporation.
---------------------------------------------------------------------------
\3\United States Government Accountability Office, NTIA Planning
and Processes Need Strengthening to Promote the Efficient Use of
Spectrum by Federal Agencies, GAO-11-352 (April 2011), pp. 35-37.
---------------------------------------------------------------------------
Estimate of Net Proceeds. The net proceeds from many FCC
auctions under S. 911 would be lower than in the past because
of the need to compensate existing licensees who would be
directly or indirectly affected by efforts to clear spectrum
for new uses. Estimates of such spending are uncertain because
federal agencies have not completed their estimates of
relocation costs and the market response to economic incentives
to forgo spectrum use is untested. Based on information
available from public sources, discussions with industry
experts, and considering the range of possible costs, CBO
estimates that the direct spending associated with auctions
held as a result of this bill would reduce net proceeds by
roughly one-third over the 2013-2021 period.
That estimate includes the effect of direct spending that
is authorized under current law as well as under S. 911. For
example, the FCC is allowed to spend auction receipts to cover
certain administrative expenses; such spending has been capped
at $85 million a year in annual appropriation acts. Existing
law also allows agencies to spend receipts to cover certain
relocation expenses and requires that any auction of licenses
to use those frequencies generate receipts equal to at least
110 percent of the government's estimated relocation costs.
CBO's estimate of $24.5 billion in net receipts is based on the
amount of agency spending authorized under current law; the
estimated budgetary impact of provisions in S. 911 regarding
federal relocation efforts is shown separately below.
Finally, based on past experience with similar activities,
CBO expects that it would take several years for the FCC and
other agencies to complete the necessary rulemaking and
planning activities to execute major spectrum auctions. In
addition, there usually is a significant lag between the time
an auction begins and the time licenses are issued to winning
bidders and receipts are recorded in the budget. To account for
the uncertain timing of those events, CBO's estimate shows
receipts being collected over a number of years, with most of
those amounts expected to be recorded after 2016. Specifically,
CBO estimates net receipts from the new auctions of $8.4
billion over the next five years and $16.1 billion after 2016.
Transfer of D Block Spectrum. Current law directs the FCC
to auction commercial licenses for 10 MHz of spectrum known as
the ``D block'' and to deposit the proceeds in the Treasury.
(The D block covers spectrum between the frequencies from 758
MHz to 763 MHz and between 788 MHz to 793 MHz.) Under current
law, CBO estimates that such an auction will be held by the end
of 2012 and will generate receipts of $2.75 billion over the
2012-2013 period.
S. 911 would reallocate the D block from commercial to
public safety uses, at no cost to those entities. CBO estimates
that forgoing the offsetting receipts from the auction of the D
block would increase direct spending by $2.75 billion.
Public Safety Broadband Corporation. S. 911 would establish
a new entity, the Public Safety Broadband Corporation, to
build, operate, and maintain a broadband network for public
safety agencies that would be available across the country on a
specific spectrum band.\4\ The bill would grant a license to
the corporation to use 22 MHz spectrum nationwide: the 10 MHz
``D block'' spectrum (discussed above) and 12 MHz that has been
allocated for public safety purposes under current law. The
license would have an initial term of 10 years and would be
renewable for additional 10-year terms if the FCC determines
that the corporation has met the requirements set out in S.
911.
---------------------------------------------------------------------------
\4\CBO believes that the Public Safety Broadband Corporation that
would be established under S. 911 should be classified as a government
entity and that cash flows related to the corporation should appear in
the budget as direct spending because the corporation would exist only
to carry out public purposes (building and operating a network for
public safety use) using a federal asset (telecommunications spectrum).
Moreover, under S. 911, the federal government would retain control
over the corporation's operations. Specifically, the bill would
authorize the Secretary of Commerce to appoint the nonfederal members
of the corporation's board of directors and to remove the chair of the
board and any nonfederal member of the board for good cause.
---------------------------------------------------------------------------
The bill would appropriate $11.75 billion to the
corporation from spectrum auction receipts to build a
nationwide network of wireless broadband. The corporation also
would be authorized to borrow funds from the public and incur
other forms of indebtedness. It would be given temporary
authority to borrow funds from the Treasury through the NTIA
for amounts necessary to carry out its responsibilities; this
borrowing authority would terminate once certain auctions have
begun. CBO expects that the corporation would borrow amounts
sufficient to allow the network to be developed and operated,
independent of the timing of the auctions under the bill.
S. 911 also would authorize the corporation to assess and
collect several different fees in amounts sufficient to cover,
but not exceed, its annual operating expenses. Specifically,
the corporation would be authorized to assess:
A subscription fee from each entity using the
public safety network;
Fees from commercial services that choose to lease
the network's capacity on a secondary basis; and
Fees from entities that access equipment or
infrastructure built and maintained by the corporation.
CBO estimates that establishing the corporation would
increase direct spending by $12.5 billion over the 2012-2021
period. This amount includes amounts appropriated to the
corporation by S. 911 for capital expenditures and net
operating losses that CBO anticipates would be generated in the
first few years of the corporation's operations.
Capital Expenditures to Build Network. CBO estimates that
the corporation would spend $11.5 billion over the 2012-2021
period to build a nationwide wireless broadband network.
Based on information from the FCC and industry experts, CBO
estimates that the corporation would develop a network of about
45,000 sites to serve 95 percent of the population by 2018 at
an average cost of about $170,000 per site. That estimate is
higher than the costs typically incurred by private firms
because of the added reliability and security needed for public
safety systems and the cost of independent capabilities
specified in the bill. CBO estimates that meeting the goal of
nationwide coverage would require several thousand additional
sites to be built in rural areas at roughly double that unit
cost. Because S. 911 would provide funding for the additional
sites, CBO estimates that most of those sites would be
operational by 2021.
Net Operating Income. The corporation's annual cash flows
from operations would depend on how quickly the network is
built and used. Operating costs would be largely tied to the
number of sites that are built and on the administrative costs
of serving public safety users. CBO based its estimate of
operating costs on historical trends for wireless firms as well
as FCC and industry projections of the costs associated with
sites that have been built or are leased from other companies.
Income from customers would depend on the network's available
capacity and market conditions. For this estimate, CBO assumes
that the corporation would be able to sell virtually all of its
available capacity by 2021 at prices that are consistent with
industry trends for retail and wholesale transactions.
Based on that information, CBO estimates that the
corporation's operating costs would exceed its income by about
$1 billion over the 2012-2021 period. Operating losses are
typical for new entrants in the wireless market because of the
lag between start-up costs and income from retail and wholesale
customers. CBO estimates that the corporation would experience
annual losses ranging from about $200 million to $400 million a
year in the first few years of operation but would start to
generate sufficient income to offset those losses by the end of
the 10-year period. CBO also expects that the corporation's
losses would be higher than for commercial firms because the
towers located in areas with very low population densities may
not generate enough income during this period to cover the
added operating costs.
State and Local Grants. S. 911 would appropriate $250
million from spectrum auction receipts for matching grants to
assist state, local, and tribal governments in developing
effective ways to use the public safety network created by the
corporation. To implement the program, the Department of
Commerce would be allowed to borrow that amount from the
Treasury beginning on October 1, 2011. Once auction proceeds
become available, they would be deposited into a State and
Local Implementation Fund and would be credited as an offset to
borrowed funds and cover other program expenses, subject to the
$250 million limit.
Research and Development Programs. S. 911 would appropriate
up to $1.5 billion from auction receipts for two research and
development (R&D) programs related to communications
technologies. Funding would be provided for each of the fiscal
years 2012 through 2016 in the following amounts: $100 million
a year would be allocated for a new research program
coordinated by the National Institute of Standards and
Technology (NIST) on systems for public safety users and $200
million a year for additional research conducted by NIST, the
National Science Foundation, and the Defense Advanced Research
Programs Agency.
Because of the time needed to conduct auctions and issue
licenses to the winning bidders, CBO estimates that there would
not be any funding available for the R&D programs until fiscal
year 2014. As a result, we estimate that the funding available
for those initiatives would total $900 million over 2012-2021
period.
Federal Relocation Costs. Under current law, government
agencies are allowed to spend, without further appropriation,
any proceeds from the auction of frequencies that are
reallocated from federal to commercial use, subject to certain
conditions. Funds are not available until the proceeds from an
auction have been deposited in the Spectrum Relocation Fund,
and the amounts spent for each relocation effort is limited to
the money generated by the sale of licenses for those
frequencies.
S. 911 would modify the timing and amount of such
expenditures. It would allow agencies to spend money for new
purposes, including costs incurred prior to an auction. In
addition, subject to some limitations, up to 10 percent of the
money in the fund could be spent for measures to enhance the
capability of the systems affected by relocation efforts.
Finally, outlays would no longer be tied to the proceeds from
individual auctions; instead, agencies could access any of the
balances in the fund, which currently total about $5.4 billion,
to cover authorized expenses. CBO estimates that enacting those
changes would increase direct spending by $1.3 billion over the
2012-2021 period, primarily for costs incurred by DoD.
Three activities account for most of that estimated cost.
CBO expects that agencies would spend 10 percent of the
balances currently in the fund, or about $540 million, on
system enhancements. The estimate also includes about $250
million over the 10-year period for the pre-auction planning,
research, and engineering expenditures authorized by the bill.
Based on historical data, CBO expects that federal spending for
relocation costs probably would total several billion dollars
over the 10-year period and that such pre-auction activities
would account for 2 percent to 10 percent of the total cost,
depending on the complexity and cost of the systems being
moved.
Finally, $400 million of the estimated cost reflects
spending for cost overruns that otherwise would have been
financed by annual appropriations. Such increases are common in
both federal and commercial relocation efforts--the actual
costs of a 2006 relocation program were about 45 percent higher
than originally estimated, for example. In that case, proceeds
from the auction were available to cover those expenses, and
appropriated funds were unnecessary. However, CBO estimates
that the difference between relocation costs and auction
receipts for some future auctions would be much smaller than in
the past; thus, we expect that there is at least a 50 percent
chance that any additional costs would be paid from the
relocation fund under this bill. For this estimate, CBO assumes
that cost overruns would be proportionately smaller for future
auctions because of the additional direct spending authorized
by the bill for planning and engineering studies.
Other Direct Spending. Other provisions in the bill would
affect direct spending by various agencies, including the
governmental entity that administers the Telecommunications
Development Fund (TDF). CBO estimates that those changes would
increase net direct spending by about $250 million over the
2012-2021 period.
Under current law, interest earned on payments made by
bidders in order to participate in an auction, known as upfront
payments, is transferred to the TDF, which invests those
amounts in small businesses that operate in the
telecommunications industry. Those interest earnings would be
recorded as an intergovernmental transfer in the budget;
however, spending of those earnings would be recorded as a
cost. Based on historical patterns of the amount of deposits
collected and the time those deposits are held, CBO estimates
that the auctions authorized in S. 911 would be credited with
interest of $136 million over the 2012-2021 period. Spending of
the amounts credited as interest would cost $136 million over
the 10-year period.
S. 911 also would modify policies regarding the siting of
telecommunications equipment on federal property. Under current
law, policy, and practice, agencies are generally required to
approve the siting of antennas (wireless towers) on federal
property on a fair, reasonable, and nondiscriminatory basis.
Siting considerations include health and safety factors,
aesthetics, the historic nature of a property, and the
telecommunications requirements of the agencies. Agencies may
assess fees on the private sector to place those antennas and
collect rental charges.
S. 911 would require the General Services Administration
(GSA) to create one standard governmentwide process for siting
antennas on federal property. In addition, the legislation
would allow agencies to collect fees to cover their direct
costs and spend whatever they collect. Based on information
from GSA and selected agencies regarding existing antenna fees,
CBO estimates that enacting those provisions would increase net
direct spending. Under current law, some agencies, such as the
U.S. Postal Service and GSA, can already retain and spend the
fees they collect. However, other agencies deposit most of the
income from such fees in the Treasury as miscellaneous
receipts. Based on historical trends in such collections, CBO
estimates that those increases in spending would total about
$12 million annually.
Spending Subject to Appropriation. S. 911 would require the
FCC, NTIA, and GAO to conduct a number of studies related to
spectrum management. The bill also would require all federal
agencies that use spectrum to develop a long-term plan for that
use to serve as a basis for a national plan that considers the
spectrum needs of both governmental and private users. Based on
information from the FCC, NTIA, and other agencies, CBO
estimates that implementing those reporting and planning
provisions would increase net discretionary spending by $43
million over the 2012-2016 period, assuming appropriation of
the necessary amounts.
Most of that cost would result from requirements for NTIA
to complete a report to identify spectrum that would be
appropriate to share between governmental and nongovernmental
users; develop tools or metrics that measure the efficiency of
federal systems that use spectrum; and develop a method for
calculating the opportunity cost of spectrum used by federal
agencies. In addition, the bill would require all agencies that
use spectrum to develop plans, which would be updated every two
years, to identify spectrum requirements and approaches that
they have taken to meet those needs. Finally, GAO and GSA would
required to prepare several reports for the Congress related to
spectrum management and telecommunications systems.
The FCC also would be required to produce an inventory of
spectrum that is assigned to public safety use, and together
with the NTIA, produce an inventory of all license holders and
users of the frequencies that each agency manages. Based on
information from the two agencies, CBO estimates that
implementing those requirements would cost $56 million over the
2012-2016 period. Under current law, the FCC is authorized to
collect fees to offset the costs of its regulatory program, and
the bill would direct that all costs incurred by NTIA to
produce the spectrum inventory be borne by the FCC. Therefore,
subject to future appropriation action, CBO estimates that the
FCC would collect fees sufficient to offset those costs. (Those
fees are credited as an offset to appropriations; thus, the
provision would have no net impact on discretionary spending.)
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in the following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR S. 911 AS ORDERED REPORTED BY THE SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION ON JUNE 8, 2011
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By fiscal year, in millions of dollars--
----------------------------------------------------------------------------------------------------------------------------------------------
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2011-2017 2011-2021
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact................... 0 1,461 1,735 737 -554 -1,503 -2,222 -1,821 -2,104 -869 -1,325 -1,876 -1,876
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Intergovernmental and private sector impact: S. 911
contains intergovernmental and private-sector mandates as
defined in the Unfunded Mandates Reform Act because it would
impose new requirements on television broadcast stations and
cable operators--some of which are operated by state and local
governments--and other distributors of television programming.
The bill also would impose an intergovernmental mandate by
preempting state and local laws governing wireless towers. CBO
estimates that the aggregate cost of intergovernmental mandates
in the bill would total in the tens of millions of dollars but
would fall below the annual threshold established in UMRA ($71
million in 2011, adjusted annually for inflation). The bill
could impose additional private-sector mandates on providers of
cell phone services. Based on information from the FCC and
industry sources, CBO estimates that the aggregate cost of
complying with the private-sector mandates would exceed the
annual threshold established in UMRA ($142 million in 2011,
adjusted annually for inflation).
The bill would appropriate up to $1 billion for payments to
offset the mandate costs to television broadcast stations,
cable operators, and other distributors of television
programming. Also, the bill would require providers of cell
phone services to be compensated for costs that result from the
bill.
Mandates that Apply to Both Public and Private Entities.
The bill would impose a mandate on television broadcast
stations by requiring them to move channels and on cable
operators, and other distributors of television programming by
requiring them to adjust their systems to continue carrying
local stations. The cost to broadcasters would equal the costs
of changing their broadcast operations to a different channel.
The cost to cable operators and other distributors of
television programming would equal the cost to readjust their
networks to receive retransmissions from broadcasters on
different channels.
The aggregate cost of the mandate would depend on the
number of channels the FCC reclaims, the number of stations
that voluntarily give up their licenses in response to
incentives offered in the bill, and the number of channels the
FCC would compel a station to move. Private entities own most
of the roughly 2,300 television stations that could face a
mandate under the bill, with state or local governments
operating about 100 of those stations. Industry sources
indicate that the average cost to a broadcaster to move a
channel would be at least $500,000, but that broadcasters could
incur additional costs to build interim transmission facilities
or to advertise the move. CBO estimates that the cost to
stations operated by state and local governments would be in
the tens of millions of dollars and that the cost to stations
operated by private entities probably would be in the hundreds
of millions of dollars.
The bill would appropriate up to $1 billion for payments to
offset the mandate costs to television broadcast stations,
cable operators, and other distributors of television
programming. CBO estimates that the $1 billion would likely
cover the costs of the mandates.
Mandates that Apply to Public Entities Only. The bill would
preempt state and local laws governing wireless towers by
requiring state and local governments to approve requests for
modifications to wireless towers that do not substantially
change the physical dimensions of the towers. Under current
law, most state and local governments review the potential
impacts of changes to wireless towers, such as visual and
environmental impacts, before allowing a wireless provider to
make a change to a tower. Based on that review, a government
may deny an application for a change. The bill would prevent
those governments from denying applications for changes that do
not substantially change the dimensions of the tower. While
that preemption would limit the application of state and local
law, CBO estimates that it would impose no duty on state,
local, or tribal governments that would result in additional
spending.
Mandates that Apply to Private Entities Only. The bill
could impose a mandate on providers of cell phone services by
authorizing the FCC to require such entities to allow public
safety officials to roam onto their networks and gain priority
access in an emergency. If the FCC imposed the mandate, the
costs would depend on how often the service was used or whether
the Public Safety Broadband Corporation could obtain voluntary
contracts for such services. Thus, CBO cannot determine the
cost of the mandate to the private sector. However, providers
of cell phone services would be compensated for any costs they
would incur because of the mandate.
Estimate prepared by: Federal Costs: Kathleen Gramp, Susan
Willie, Matthew Pickford, Andrew Stocking, and Philip Webre;
Impact on State, Local, and Tribal Governments: Elizabeth Cove
Delisle; Impact on the Private Sector: Samuel Wice.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Regulatory Impact Statement
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:
NUMBER OF PERSONS COVERED
S. 911 would update existing communications law to allow the
FCC to alter television broadcast licenses so that spectrum
could be allocated more efficiently. The bill could affect
broadcasters by changing the frequencies on which they are
authorized to transmit a television signal. Broadcasters are
already subject to FCC regulations, and therefore the number of
persons covered should be consistent with the current levels of
individuals impacted under the provisions of the law that are
addressed in the bill.
ECONOMIC IMPACT
S. 911 would not have an adverse impact on the Nation's
economy.
PRIVACY
The reported bill would have no impact on the personal
privacy of U.S. citizens.
PAPERWORK
The reported bill should not significantly increase paperwork
requirements for individuals and businesses.
Congressionally Directed Spending
In compliance with paragraph 4(b) of rule XLIV of the
Standing Rules of the Senate, the Committee provides that no
provisions contained in the bill, as reported, meet the
definition of congressionally directed spending items under the
rule.
Section-by-Section Analysis
Section 1. Short Title; Table of Contents.
The short title is the ``Public Safety Spectrum and Wireless
Innovation Act.''
Section 2. Definitions.
This section would define 13 terms used throughout the bill.
The following definitions are of particular importance:
700 MHz D Block Spectrum.--The term ``700 MHz D Block
Spectrum'' means the portion of the electromagnetic
spectrum between the frequencies from 758 MHz to 763
MHz and between the frequencies from 788 MHz to 793
MHz.
Existing Pubic Safety Spectrum.--The term ``Existing
Public Safety Spectrum'' means the portion of the
electromagnetic spectrum between the frequencies from
763 MHz to 768 MHz and between the frequencies from 793
MHz to 798 MHz, and between the frequencies from 768
MHz to 769 MHz and between the frequencies from 798 MHz
to 799 MHz.
Public Safety Entity.--The term ``public safety
entity'' means an entity that provides public safety
services.
Public Safety Services.--The term ``public safety
services'' has the meaning given the term in section
337(f) of the Communications Act of 1934 (47 U.S.C.
337(f)) and includes services provided by emergency
response providers, as that term is defined in section
2 of the Homeland Security Act of 2002 (6 U.S.C. 101).
This definition is intended to ensure that local,
State, and Federal public safety authorities can
benefit from a nationwide interoperable wireless
broadband public safety network.
TITLE I--REALLOCATION OF PUBLIC SAFETY SPECTRUM
Section 101. Reallocation of D Block to Public Safety.
Section 101 would reallocate the 700 MHz D Block for use by
public safety entities.
Section 102. Flexible Use of Narrowband Spectrum.
Section 102 would provide the FCC with the discretion to
allow the flexible use of spectrum in the 700 MHz band
currently allocated for narrowband public safety use, including
for public safety broadband communications.
The Committee recognizes that at present, allowing broadband
operations in the 700 MHz band currently allocated for
narrowband public safety use might present interference
concerns. Furthermore, the Committee is aware that certain 700
MHz narrowband spectrum already has been allocated for public
safety narrowband use, and that some State and local
governments have built or are building communications systems
that use this spectrum. To the extent that the FCC finds that
it is in the public interest to allow public safety broadband
operations in the 700 MHz narrowband spectrum, the agency
should consider the need to accommodate public safety systems
already using this spectrum.
TITLE II--GOVERNANCE OF PUBLIC SAFETY SPECTRUM
SUBTITLE A--PUBLIC SAFETY BROADBAND CORPORATION
Section 201. Single Public Safety Wireless Network Licensee.
This section would require the FCC to provide a 10--year
license for the 700 MHz D Block and existing public safety
broadband spectrum to the Public Safety Broadband Corporation
that is established under section 202. This license can be
renewed every 10 years by application to the FCC.
This section would direct the FCC to take all actions
necessary to facilitate the transition of the existing public
safety broadband spectrum to the Corporation. The Committee
intends the direction to ``take all actions necessary'' not to
be read in an expansive way. The Committee intends the FCC to
immediately issue a license for the 700 MHz D Block and
existing public safety broadband spectrum to the Corporation.
To encourage the Corporation's cost effective construction of a
broadband network with a national architecture, the FCC should
take steps to reduce or eliminate existing encumbrances on the
spectrum. Similarly, the Committee expects the FCC will work to
prevent any additional uses of the public safety broadband
spectrum that could encumber the license being transferred to
the Corporation.
The Committee also notes that the current licensee of the
existing public safety broadband spectrum is required by the
FCC to coordinate the activities of the jurisdictions that
already have received waivers to conditionally deploy broadband
networks using the existing public safety broadband spectrum.
The Committee recognizes that this Act represents a fundamental
shift in addressing the long-standing challenge of creating a
truly nationwide interoperable public safety network.
Specifically, the Act would mandate that the network be based
on a single nationwide network infrastructure and framework in
order to avoid the balkanization of multiple individual
networks that has impeded efforts to create nationwide
interoperability in the past. The Committee also recognizes
that a small handful of these jurisdictions have begun to use
that conditional waiver authority to plan and deploy facilities
in anticipation of the nationwide network. The Committee
intends those limited facilities to be integrated into the
nationwide network. Such plans and facilities can be identified
though the State and local implementation grants process in
section 222 of this Act.
At the same time, while the Committee recognizes the good
faith efforts of the waiver jurisdictions pursuant to
conditional authority, the Committee does not intend for these
jurisdictions to continue to deploy stand-alone broadband
networks that could jeopardize the overarching goal of
nationwide interoperability. These waiver jurisdictions should
temporarily halt deployment activities until the Corporation
can coordinate and integrate these early deployment broadband
activities into the nationwide network infrastructure. The
Committee also recognizes that the Corporation may decide that
allowing one or two waiver jurisdictions, under extraordinary
circumstances, to continue limited deployments could serve as
pilot projects beneficial to the Corporation's efforts. This is
a decision for the Corporation, however, subject to whatever
conditions the Corporation deems necessary in order to preserve
and protect the goal of nationwide interoperability, and with
assistance from the FCC, as needed.
In addition, there are existing narrowband incumbent
operations in the public safety broadband spectrum that would
need to be relocated as the broadband network is deployed.
Accordingly, the Committee believes it should be the obligation
of the Corporation, as part of requests for proposal to deploy
the network as outlined in section 206 of this Act, to relocate
these narrowband incumbents.
Section 202. Establishment of Public Safety Broadband Corporation.
Section 202 would authorize the establishment of a nonprofit
corporation called the Public Safety Broadband Corporation,
which would hold the spectrum as provided in section 201.
Section 203. Board of Directors of the Corporation.
Section 203 would designate a Board of Directors (the Board)
for the Corporation, consisting of four Federal members and
eleven non-Federal members who will meet at least quarterly.
The four Federal members would be the Secretary of Commerce,
the Secretary of Homeland Security, the Attorney General of the
United States, and the Director of Office of Management and
Budget. The Secretary of Commerce, in consultation with the
Secretary of Homeland Security and the Attorney General, would
appoint 11 independent and qualified non-Federal members,
including at least three representatives to represent the
interests of States, localities, tribes, and territories and at
least three representatives who have served or are currently
serving as public safety professionals. The non-Federal members
would serve staggered three-year terms.
This section would require non-Federal members to represent
various areas of expertise, including public safety, technical,
commercial network, and financial expertise. This section would
require the Secretary of Commerce to make sure that non-Federal
members represent various geographic and regional, as well as
rural and urban, areas.
This section would also put in place conflict of interest
protections to ensure the independence of the non-Federal board
members. Meetings of the Board, including any committee of the
Board, would be transparent and open to the public. A quorum of
the Board would require at least eight members, including at
least six non-Federal Members. The Secretary of Commerce would
be required to select one of the non-Federal members to be
Chair of the Board.
Section 204. Officers, Employees, and Committees of the Corporation.
Section 204 of the bill would instruct the Board to name and
fix salaries for a Chief Executive Officer, as well as other
officers and employees of the Corporation. No political test or
qualification should be used in selecting, appointing,
promoting, or taking other personnel actions with respect to
officers, agents, or employees of the Corporation. Officers and
employees would not receive any outside salaries and may serve
on other boards only with the permission of the Board. Under
this section, all rates of compensation would be established by
the Federal members of the Board.
This section would charge the Board with establishing a
standing public safety advisory committee and authorize the
Board to establish other committees or panels, as necessary.
The Committee intends that with respect to the standing public
safety advisory committee, membership should include a diverse
group of individuals who have served or are serving currently
as public safety professionals.
This section also would allow the Board to select parties to
serve as its agents, consultants or experts. However, the
Committee discourages sole source contracts for agents, network
administrators, consultants, or experts.
Section 205. Nonprofit and Nonpolitical Nature of the Corporation.
Section 205 would prohibit the Corporation from issuing stock
or its directors, officers, or employees from benefiting from
their position, other than by a salary or reasonable
compensation. The Corporation also would be barred from
supporting any political party or candidate. In addition, the
Corporation would be barred from engaging in lobbying
activities.
Section 206. Powers, Duties, and Responsibilities of the Corporation.
This section would require the Corporation to use its single
public safety wireless license under section 201 of this Act to
oversee construction, deployment, and operation of a nationwide
interoperable public safety broadband network. The Corporation
also would ensure adoption of nationwide standards for use of
the network; issue requests for proposals for private entities
to build, operate, and maintain the network; and manage and
oversee the building and operation of the network. In
developing the requests for proposal, the Corporation would
encourage, to the maximum extent economically desirable,
existing commercial wireless infrastructure to be leveraged in
deploying the network.
In addition, under this section, the Corporation would be
required to ensure the safety, security, and resiliency of the
network, including requirements that the network be protected,
and monitored to protect, against cyberattack.
The Corporation would be required to promote competition in
the equipment market, including by requiring that all equipment
on the network be built to open, non-proprietary, commercially-
available standards, and, to the extent necessary and
technically and economically reasonable, be compatible with
second and third generation commercial networks.
The Corporation also would be required to promote integration
of the network with public safety answering points or their
equivalent.
To ensure interoperability, the Director of NIST, in
consultation with the Corporation and the FCC, would oversee
the development of a list of certified devices and components
meeting appropriate protocols and standards. Public safety
entities and vendors must adhere to these protocols and
standards in order to have access to or use of the network.
This section would instruct the Corporation to establish
policies for the network that include buildout timetables,
coverage and service levels, and performance criteria, as well
as technical and operational requirements. The Committee
intends that the Corporation pay particular attention to making
sure that the network is deployed in rural areas, as well as
non-rural areas. As a result, this section would require that
the Corporation, as part of the request-for-proposals process,
require deployment phases with substantial rural coverage
milestones as part of each phase of the construction and
deployment of the network. As part of this effort, the
Committee encourages the Corporation to make special efforts to
address those areas of the country that lag behind the rest of
the nation in deployment of third generation wireless services.
To ensure that the needs of local first responders are met,
the Committee intends for there to be significant input from
State and local public safety entities, especially with respect
to planning the network and determining how funds are spent to
deploy the network. Consequently, this section would require
the Corporation to consult with regional, State, tribal, and
local jurisdictions in developing requests for proposal for the
network. Specifically, this section would require the
Corporation to consult with these jurisdictions with respect to
construction of an Evolved Packet Core and any Radio Access
Network, the placement of towers in a local area, coverage
areas, assignment of priority to-and the training needs of-
local users, assignment of priority and selection of entities
seeking access to or use of the network, and the adequacy of
hardening, security, reliability, and resiliency. The input of
regional, State, tribal, and local jurisdictions shall be
coordinated through a single point of contact: a single officer
or governmental body designated by the State's chief executive
officer. In order to assist with the granular State and local
input necessary, section 222 would create a planning grant
program to assist these jurisdictions in compiling and
analyzing the data.
This section would also authorize the Corporation to conduct
business, including making contracts to leverage existing
infrastructure or spending funds, consistent with the purpose
of the work of the Corporation and to enhance public safety.
The Committee intends that the Corporation leverage existing
infrastructure, including commercial or other communications
infrastructure, as well as that owned by Federal, State,
tribal, or local entities, to the maximum extent economically
desirable. However, the Committee recognizes that, in some
instances it may be more economically efficient for the
Corporation to construct new infrastructure rather than
retrofit existing facilities.
To facilitate the use of existing infrastructure, the
Corporation would be allowed to enter into roaming agreements
with commercial network providers. The Corporation would speed
deployment of the network-especially in rural areas-by
leveraging existing commercial networks to the maximum extent
economically desirable.
Finally, this section would make clear that the Director of
NIST, in consultation with the Corporation, the FCC, and the
standing public safety advisory committee, would represent the
public safety users in any proceeding, negotiation, or other
matter before a recognized standards-setting entity with
respect to standards relating to interoperability. This section
would also make clear that the Corporation would have no
authority to negotiate or enter into any agreements with a
foreign government on behalf of the United States.
Section 207. Initial Funding for Corporation.
Section 207 would permit the NTIA to issue loans to the
Corporation until the FCC can conduct the auctions specified in
this Act. In order to secure such a loan, this section
requires, among other things, that the Corporation submit a
plan that provides a reasonable assurance of prompt repayment.
The Committee intends that the Corporation prioritize the
repayment of this loan, consistent with the purpose of the work
of the Corporation and its duties under this law.
Section 208. Permanent Self-Funding; Duty to Assess and Collect Fees
for Network Use.
The Committee intends for the Corporation and the nationwide
network to be self-funding. Accordingly, section 208 would
instruct the Corporation to collect fees for access to the
public safety network, including charging a network user fee to
public safety entities for use of the network. The Committee
intends for local first responders to migrate their data usage
from commercial networks to the public safety interoperable
network, which is specifically developed and hardened for
mission-critical communications. Likewise, the Committee
expects, as the network is fully deployed and developments
occur in next-generation voice over wireless broadband networks
that meet public safety mission-critical standards, the network
can one day provide a lower-cost transition path for
consolidated public safety communications. The research and
development initiatives for public safety communications in
section 223 of this Act would assist in these developments.
This section would also allow the Corporation,
notwithstanding section 337 of the Communications Act of 1934
(47 U.S.C. 337), to lease access to the network, spectrum, or
infrastructure on a secondary use basis to entities that do not
meet the definition of public safety services in section 2 of
this Act, including, but not limited to, other government
agencies, commercial entities, and utilities. The Committee
intends that the limitations in section 337 of the
Communications Act as to the use of the public safety spectrum
apply solely to the primary use of the network and not the
secondary use as authorized by this section. This would provide
an important source of revenue for the Corporation, which
should be used to fund network development and maintenance,
consistent with the duties of the Corporation under this Act.
In addition, in those rural and remote areas in which there are
no existing commercial infrastructure to leverage, commercial
wireless carriers may choose to lease tower infrastructure, for
example, from the Corporation. Such a sharing of infrastructure
would not only provide revenue to the public safety network,
but also allow commercial providers to expand their own
coverage to consumers.
The total fees assessed would not exceed the amount necessary
for the Corporation to recoup its expenses incurred for
carrying out this subsection. The Corporation would be required
to reinvest any amounts received from these fees for only the
construction, maintenance, or improvement of the network.
Section 209. Audit and Report.
In order to ensure increased accountability and transparency,
this section would require the Comptroller General of the
United States to audit the Corporation's financial transactions
annually. The Comptroller General would then submit a report to
the appropriate committees of Congress, the President, and the
Corporation detailing the financial operations and condition of
the Corporation and providing any related recommendations.
Section 210. Annual Report to Congress.
This section would require the Corporation to submit to the
appropriate Congressional committees an annual report that
includes details on the Corporation's operations, activities,
financial conditions, and accomplishments. In addition, as part
of the annual report, the Corporation would be required to
include recommendations or proposals for legislative or
administrative action, as it deems appropriate.
Section 211. Public Safety Roaming and Priority Access.
While 20 megahertz of public safety broadband spectrum will
be needed to provide sufficient bandwidth and efficiencies for
a nationwide interoperable public safety broadband network,
there will be those emergencies during which even the
nationwide public safety network will not provide sufficient
communications capacity for our Nation's first responders. In
those times, the Committee expects that it may be necessary and
in the public interest for public safety to gain access to
commercial wireless broadband networks. Section 211 would
permit the FCC to consider rules to improve the ability of
public safety users to roam on and gain priority access to
commercial networks in an emergency. Any such roaming or
priority access would be premised upon the public safety
entity's equipment being technically compatible with the
commercial network, the commercial network being reasonably
compensated, and that such access does not preempt or otherwise
terminate or degrade all existing voice conversations or data
sessions.
Section 212. Transitional Analysis of Public Safety Network Attributes.
This section would require the development of an independent
framework to be used by the Corporation to develop a cost-
benefit analysis for the building, deployment, and operation of
the public safety network. The framework would be required to
be completed within 180 days of enactment of this Act. The
Committee intends that this up-front analysis and review will
help contain costs and promote efficient network choices, while
not imposing significant cost or resulting in any delay in the
construction of the network.
The analysis would use an evaluation framework developed by
the Director of NIST, in consultation with the Secretary of
Homeland Security, the Attorney General, and the Director of
the Office of Management and Budget. This framework would: (1)
be informed by a report by an independent and neutral agent;
and (2) consider a report completed by the Visiting Committee
on Advanced Technology of NIST. The framework would evaluate
the marginal costs and benefits of each attribute of the
network, the feasibility of the attribute, and the resulting
competitive vendor supply ecosystem created by the attribute.
Section 213. Prohibition on Offering of Commercial Telecommunications
Service Directly to Consumers.
This section would prevent the Corporation from offering,
providing, or marketing commercial telecommunications or
information services directly to consumers. This section would
not prohibit the secondary access to the spectrum, network, or
infrastructure pursuant to section 208 of this Act.
Section 214. Provision of Technical Assistance.
Section 214 of the bill would authorize the FCC to provide
technical assistance and to assist the Corporation in
effectuating its duties and responsibilities under this
subtitle. For example, this section would allow the FCC to
adopt technical rules necessary to manage spectrum use in bands
adjacent to the public safety broadband spectrum to prevent
out-of-band interference problems or to address operation of
the public safety broadband network in areas near the
international borders of the United States.
The Committee recognizes that the bill would provide the
Corporation with a unique, statutorily granted nationwide
license with broad discretion to manage the spectrum and
network on behalf of the Nation's first responders. This also
necessarily would create a unique role for the FCC.
The Committee intends the direction to the FCC to ``take any
action necessary to assist'' to indicate a supportive role to
the Corporation. The Committee foresees instances in which the
Corporation would seek specific assistance or declaratory
rulings from the FCC that the Corporation deems necessary.
SUBTITLE B--PUBLIC SAFETY COMMITMENTS
Section 221. State and Local Implementation Fund.
This section would establish a ``State and Local
Implementation Fund'' from which the Assistant Secretary of
Commerce for Communications and Information (the Assistant
Secretary) can administer a grant program for the purposes of
the ``State and Local Implementation Grant Program''
established in section 222 of this Act. This section would also
authorize the Assistant Secretary to borrow from the general
fund of the Treasury to implement this section.
Section 222. State and Local Implementation.
Section 222 of this Act would establish a ``State and Local
Implementation Grant Program,'' not to exceed $250 million, to
assist State, regional, tribal, and local jurisdictions to
identify and plan the most efficient and effective way to
utilize and integrate use of the nationwide public safety
interoperable broadband network to satisfy the communications
needs of that jurisdiction. The Committee intends for these
grants to provide jurisdictions with the resources necessary to
gather information relating to existing and needed
infrastructure, to determine and plan for specific
communications needs within jurisdictions, and to aggregate
this granular data at the State level. To facilitate this
coordination within and among jurisdictions--as well as with
the Corporation--each State would be required to certify in its
application for grant funds that it has designated a single
officer or governmental body to serve as the coordinator of the
implementation of grant funds.
While the Federal share of a grant under this program would
not exceed 80 percent of the eligible costs, this section would
allow the Assistant Secretary to waive, in whole or in part,
this requirement if it is in the public interest.
Priority would be given for those grant applications for
activities that ensure coverage in rural as well as urban
areas.
Section 223. Public Safety Wireless Communications Research and
Development.
To maximize the benefits of the nationwide public safety
network for current and future users, the Committee believes it
is necessary to fund research and development programs that are
specifically targeted at public safety communications.
This section would require NIST, in consultation with the
FCC, the Department of Homeland Security, the Department of
Justice, and the Corporation's standing public safety advisory
committee, to research and develop standards, technologies, and
applications that advance wireless public safety communication.
To accomplish this task, the Director of NIST would be required
to work in consultation with the standing public safety
advisory committee and the FCC to, among other things: (1)
document public safety wireless communications technical
requirements; (2) accelerate the development of the capability
for existing public safety narrowband systems to communicate
with the new broadband network; (3) establish a research plan
for future communication technology; and (4) accelerate the
development of mission critical voice, including development of
device-to-device ``talkaround'' capability for the broadband
network, as necessary. To meet these requirements, NIST would
convene working groups of relevant government and commercial
parties.
Section 224. Advanced Information and Communications Technology
Research.
Section 224 would instruct the Director of NIST and the
Director of NSF to promote innovation through transformative
telecommunications research for telecommunications services,
equipment, and technology. Under this section, NIST would also
continue to support research and standards development in
advanced information and communications technologies focused on
facilitating the availability of advanced communications
services to all Americans.
This section would also require the Director of NSF to use
not more than five percent of the funds made available in a
fiscal year from the ``Public Safety Trust Fund,'' established
in section 401 of this Act, to expand existing grant programs
to include emerging wireless technologies. The grants would
support research in a variety of areas, which may include
opportunistic spectrum sharing, cyberphysical systems,
efficient spectrum use, dynamic spectrum access, interference
mitigation, emerging use interface and sensing technologies,
wireless ad hoc networks, network resiliency and cybersecurity,
communications interoperability, pervasive information
technology, nanoelectronics, low-power communications, and
networking protocols and architectures. Awards of grants would
be merit-based and give priority to those that offer the
potential for transformational breakthroughs.
This section would instruct DARPA to use not more than five
percent of any funds made available in a fiscal year from the
Public Safety Trust Fund to conduct research in wireless
communications to develop more secure, reliable, and flexible
wireless systems for Federal users. Areas of research may
include increasing data transmission speeds of wireless
communications, spectrum sharing and interference mitigation,
technologies to foster reallocation of spectrum for non-Federal
use, and converting defense or other Federal systems to more
advanced or efficient systems. DARPA should collaborate with
the NTIA, NIST, and NSF in these efforts.
TITLE III--SPECTRUM AUCTION AUTHORITY
Section 301. Extension of Auction Authority.
Section 301 would extend the FCC's spectrum auction authority
from 2012 to 2021.
Section 302. Auction of Spectrum.
This section would amend the Communications Act to instruct
the FCC to auction by January 31, 2014, the following spectrum
bands: 1915-1920 MHz, 1995-2000 MHz, 2020-2025 MHz, 2155-2175
MHz, 2175-2180 MHz, and 1755-1850 MHz, and at least 15 MHz of
contiguous Federal spectrum in the 1675 to 1710 MHz band
identified by the Assistant Secretary within one year of
enactment of this Act.
The FCC would be authorized, if technically feasible and in
the public interest, to combine the spectrum between 2155 and
2180 MHz and 1755 and 1780 MHz into paired spectrum blocks in
an auction of licenses.
This section would also direct the FCC to reallocate through
auction the spectrum between 3550 and 3650 MHz. The FCC would
be required to auction this spectrum within three years of the
passage of this Act. The spectrum would not be auctioned,
however, if the President determines that this spectrum is
needed to protect incumbent Federal systems or reallocation of
other comparably valued spectrum better serves the public
interest. If this spectrum cannot be reallocated, then the
President would identify within one year between 20 and 100
megahertz of alternate spectrum. This section would also
require the President to report to the appropriate committees
of Congress what spectrum has been identified and immediately
make this spectrum available for reallocation. If the President
does not make a decision as to the spectrum between 3550 and
3650 MHz, then the FCC would be directed to auction it within
three years from the date of enactment.
Section 302 also would amend the Communications Act to direct
the FCC, when designing spectrum auctions, to ensure that there
is an adequate opportunity for applicants to obtain licenses
covering both large and small geographic areas.
Section 303. Incentive Auction Authority.
Section 303 would expand the FCC's existing spectrum auction
authority. The FCC currently has authority to conduct spectrum
auctions, but it does not have the authority to share auction
revenues with licensees that voluntarily relinquish their
spectrum usage rights.
Section 303 would amend the Communications Act to authorize
the FCC to conduct incentive auctions. Specifically, if the FCC
determines that reallocation of certain spectrum licenses is in
the public interest and a current licensee voluntarily agrees
to relinquish some or all of its rights to that spectrum, the
FCC would be authorized to auction the spectrum and direct to
the original licensee a portion of the proceeds from the
auction. Relinquishment of these spectrum usage rights would
allow more spectrum to be brought to market, which could help
meet the growing demand for spectrum for flexible commercial
uses, including wireless broadband. This additional authority
would be sufficiently flexible to allow for such incentive
auctions in a range of spectrum bands and circumstances. This
section also would permit the FCC to designate portions of the
relinquished spectrum rights for use exclusively on an
unlicensed basis.
The section would authorize the FCC to repack broadcast
television licensees if such repacking is in the public
interest. If a licensee must relocate to a new frequency, the
FCC would be allowed to disburse to that licensee a portion of
the incentive auction proceeds. The FCC would also be required
to make reasonable efforts to preserve the amount of population
covered by the licensees' signal within the licensees' service
areas, avoid any interference increases, allow licensees
assigned to channels 2 through 6 to move to the UHF band, and
allow low-power television stations impacted by the relocation
of other licensees to move from the UHF to the VHF band. In
implementing these provisions, the Committee recommends that
the FCC also take into consideration the degree of over-the-air
viewership of broadcast television stations, including licenses
serving areas where more than a fifth of all viewing occurs in
households relying exclusively on over-the-air television. The
Committee also intends that in any repacking process, the FCC
will take into consideration protecting viewership of over-the-
air television along the international borders with Canada and
Mexico.
The FCC would not be authorized under this section to reclaim
spectrum from a television broadcaster without its voluntary
consent, unless: (1) the FCC allocates an identical amount of
contiguous spectrum between channels 14 and 50 in the same
geographic market television market, if the spectrum was
reclaimed from between channels 14 and 51; or (2) the FCC
allocates an identical amount of contiguous spectrum between
channels 2 and 13 in the same geographic market, if the
spectrum was reclaimed between channels 2 and 13.
The FCC would not be permitted to co-locate multiple
television broadcast licensees on the same channel if the
licensees do not agree. If stations voluntarily agree to share
a channel, they would retain their rights to carriage, pursuant
to sections 338, 614, or 615 of the Communications Act (47
U.S.C. 338, 534, 535). The Committee, however, intends that the
FCC would be able to assist those stations which voluntary
agree to co-locate to find a licensee with which to share a
channel, if such stations seek the FCC's assistance.
This section would also establish an ``Incentive Auction
Relocation Fund'' that would be accessible by the NTIA for 18
months after the incentive auction ends or the date on which
the FCC issues all necessary new channel assignments, whichever
is later. These funds would be used to cover relocation costs
for broadcast television stations that are relocated and the
costs of MVPDs to comply with the obligations to continue to
carry the broadcasters' programming.
This section would direct the FCC, at the same time as it
undertakes the incentive auction process for spectrum currently
allocated to broadcast television, to ensure that adequate
spectrum both nationwide and in each local television market
remains available in frequency bands between 54 and 72 MHz, 76
and 88 MHz, 174 and 216 MHz, and 470 and 698 MHz for unlicensed
device operation. Subclause (IV) would ensure that to the
extent that spectrum is relinquished by broadcasters to the FCC
for reassignment pursuant to the incentive auction process
authorized by subparagraph (F), at least 84 MHz of that
spectrum anywhere in the United States should be reassigned to
new users through competitive bidding. The subclause also
provides that the Commission will have the discretion to
disburse auction revenues to licensees as needed for the
purpose of ensuring that unlicensed spectrum remains available
in the designated frequency bands, both nationwide and in each
local market.
The Committee does not intend the language in this subclause
to supersede previous provisions in this Act requiring the
Commission to follow specific procedures for reclamation and
repurposing of broadcast spectrum for reauction, as outlined in
subclauses (I) through (II) of clause (ii) of subparagraph (F).
Those required mandates include, but are not limited to,
voluntary participation by broadcasters in incentive auctions,
steps that the FCC must follow should it conduct broadcast band
repacking, and protections for broadcasters who are subject to
or affected by repacking.
This section would authorize the FCC to use incentive
auctions in the event it decides to make available for
terrestrial broadband use the 2000-2020 MHz bands and the 2180-
2200 MHz bands. This section would also state that it is the
sense of Congress that if any of the spectrum bands identified
in section 303 of this Act are auctioned by the FCC, they
should be licensed for flexible use consistent with the public
interest.
It is the Committee's intent that the FCC, as the expert
agency, be given discretion and flexibility in designing and
conducting incentive auctions that rely on private market
transactions to guide resources to the maximum consumer
benefits.
Section 304. Efficient Use of Public Safety Spectrum.
Section 304 would direct the FCC to provide to the
appropriate committees within 180 days of enactment, and every
two years thereafter: (1) an assessment of whether spectrum is
adequate for public safety's current and future needs,
including an examination and inventory of how public safety
spectrum is being used; and (2) an assessment of the
opportunity to return any additional public safety spectrum to
the FCC for reallocation. The report would inventory the
spectrum assigned to public safety use, including the amount of
spectrum allocated to public safety, the number of licensees
and amount of spectrum assigned to each licensee, a general
description of the technologies in each band, an approximation
of network coverage of major systems in major metropolitan
areas, and an approximation of the number of users on these
systems.
Section 305. Report on Satellite Broadband.
This section would instruct the Comptroller General to
conduct a study and submit a report within two years of
enactment to the appropriate committees of Congress on the
current and future capabilities of fixed and mobile satellite
broadband to assist public safety entities during an emergency.
The Committee does not intend this study to limit the ability
of the Corporation to partner with satellite broadband
providers in the implementation of this Act.
Section 306. Federal Infrastructure Sharing.
Section 306 would require the Administrator of General
Services to establish rules that allow the Corporation, and
other public safety entities permitted to use the spectrum
allocated to the Corporation, to have access to those
components of Federal infrastructure appropriate to construct
and maintain the nationwide public safety interoperable
broadband network.
Section 307. Report on Unlicensed Spectrum.
This section would require the FCC to submit a report within
five years of enactment to the appropriate committees of
Congress on the development and use of unlicensed spectrum.
TITLE IV--PUBLIC SAFETY TRUST FUND
Section 401. Public Safety Trust Fund.
Section 401 would establish a ``Public Safety Trust Fund''
(the Fund) in which the proceeds from the spectrum auctions
under title III of this Act would be deposited. The Fund would
be used to pay the required initiatives under this Act.
Under this section, amounts in the Fund would first provide
payment to the licensees returning their spectrum for an
incentive auction. This section would require the Chairman of
the FCC, in consultation with the Director of the OMB, to
notify the appropriate committees of Congress at least three
months before any incentive auctions. The notification would
include the methodology for calculating the incentive payments
to the licensees returning their spectrum. The methodology
would account for the value of the spectrum in its current use
and the timeliness in which it will be cleared.
At least five percent of the Fund, up to $1 billion, shall be
deposited into the Incentive Auction Relocation Fund to
reimburse television broadcasters and MVPDs pursuant to section
303 of this Act.
This section also requires that $250 million be deposited in
the State and Local Implementation Fund under section 221 of
this Act to be used for planning grants to State, regional,
local, and tribal public safety entities.
Under this section, $11.75 billion would be deposited with
the Corporation for the nationwide public safety interoperable
broadband network, including at least $10.5 billion for any
Radio Access Network buildout and at least $1.25 billion to
develop an Evolved Packet Core.
In terms of research and development, $100 million would be
designated per year for fiscal years 2012 to 2016 for the
Director of NIST to carry out the public safety research and
development described in section 223 of this Act. Additionally,
$200 million would be designated per year for fiscal years 2012
to 2016 for the advanced information and communications
technology research described in section 224 of this Act, of
which $130 million is made available for the NSF grant program
and $70 million is made available for DARPA's research each
year.
Any amounts remaining in the Fund at the end of fiscal year
2021 would be deposited in the Treasury and dedicated solely
for deficit reduction.
TITLE V--SPECTRUM POLICY
SUBTITLE A--INVENTORY AND PLANNING
Section 501. Radio Spectrum Inventory.
This section would require the FCC to conduct, within 180
days of enactment and biennially thereafter, a spectrum
inventory in consultation with NTIA and the Office of Science
and Technology Policy. The FCC would prepare a report that
inventories each radio spectrum band from 300 MHz to 3.5 GHz,
at a minimum. The inventory would be made available online to
the public and updated quarterly. The FCC would bear the cost
for maintaining the inventory and website.
This section would also set up a process to protect
information when the head of any Federal agency determines that
such information is classified or its disclosure would be
harmful to national security. In addition, if a licensee of
non-Federal spectrum determines that public disclosure of
certain information would be detrimental to public safety, the
section would provide a process to ensure that such information
is not disclosed.
Section 502. Federal Spectrum Planning.
Section 502 would take a number of steps to improve spectrum
management decisions by Federal agencies. First, the
Comptroller General would be required to submit a report within
six months of enactment that reviews the processes Federal
entities use to evaluate their spectrum needs and recommends
how to improve these processes. Within one year of enactment,
Federal agencies would be required to comply with the
recommendations in the report.
This section would also require Federal entities to submit an
entity-specific strategic spectrum plan. Using the individual
entity-specific spectrum plans, the Secretary of Commerce would
prepare a comprehensive Federal Strategic Spectrum Plan within
one year of receiving the reports from the Federal entities.
This section would then direct the NTIA and the FCC, working
with State, local, and tribal governments and commercial
spectrum interests, to develop a quadrennial National Strategic
Spectrum Plan within two years of enactment. The plan would
include: the Federal Strategic Spectrum Plan; long-range
spectrum planning of commercial, State and local government,
and Federal Government users; new technologies and expanded
services requiring spectrum; the nature of new radio
communications systems and the spectrum required; efficient
approaches to meeting future spectrum needs; and an evaluation
of current auction processes.
This section would also establish a process by which
information would be protected from public disclosure if a head
of a Federal entity determines that disclosure of such
information would be harmful to national security.
SUBTITLE B--MARKETS
Section 511. Promoting Secondary Spectrum Markets.
This section would direct the FCC to conduct a proceeding to
determine how to further promote a more robust secondary
spectrum market, including the establishment of a national
database for information on secondary market opportunities.
Section 512. Unlicensed Use in 5 GHz.
Section 512 would direct FCC to allow, within one year of
enactment, unlicensed devices intended and marketed for indoor
use to operate in the 5350-5470 MHz band, provided that the FCC
finds that technical solutions, including spectrum sharing
technologies such as dynamic frequency selection capability,
will protect and not compromise the primary mission of Federal
spectrum users. Within eight months of enactment, the NTIA, in
consultation with the FCC, would submit to the appropriate
committees of Congress a study evaluating sharing technologies
and the potential risks to Federal users of allowing indoor use
of unlicensed devices in in the 5350-5470 MHz band.
Section 513. Experimental Licenses.
Section 513 would direct the FCC to amend its rules within
nine months of enactment to promote greater experimentation,
broaden opportunities for market trials, promote advancement in
health care, establish innovation zones, and establish a
process in which qualified entities, such as colleges and
universities and public and private companies, can use a broad
range of frequencies for research and experimentation without
prior FCC authorization.
Section 514. Repurposing Federal Spectrum for Commercial Purposes and
Federal Spectrum Sharing.
This section would provide a number of incentives to Federal
spectrum users to facilitate greater spectrum efficiency by
such users and to make additional spectrum available for
commercial wireless uses.
The section would amend the National Telecommunications and
Information Administration Organization Act (NTIAO Act) (P.L.
102-538) to authorize payments from the Spectrum Relocation
Fund to cover relocation costs (including upfront planning
costs that occur before an auction) for Federal entities to
better enable the entities to evaluate the cost and scheduling
implications of spectrum relocation activities. These payments
would facilitate the Federal government spectrum relocation
process while ensuring the continuity of entity missions. The
covered costs include: the cost to modify or replace equipment;
the costs of engineering and construction; the costs of
research and analysis associated with calculating relocation
costs, determining technical feasibility, or planning or
managing location; the cost of modification or replacement to
accommodate sharing with commercial users; the cost associated
with accelerated replacement of systems; and the costs of use
of commercial equipment to replace Federal equipment.
This section would also add to the NTIAO Act a provision
allowing Federal entities to share Federal spectrum with non-
Federal entities. Before sharing any spectrum, the Federal
entity must get approval from the NTIA in consultation with the
OMB. Any fees collected from spectrum sharing will be deposited
in the Spectrum Relocation Fund, which can be used to reimburse
Federal entities that incur costs from sharing.
Section 514 would also make available for the Director of OMB
up to 10 percent of the amount deposited in the Spectrum
Relocation Fund from the auction of licenses vacated by Federal
entities, or up to 10 percent of the amount deposited in the
Spectrum Relocation Fund by non-Federal entities for sharing of
Federal spectrum. The Director of OMB, in consultation with the
Assistant Secretary, would be authorized to use such funds to
pay eligible Federal entities for timely access to such
spectrum. The payments would be based on the market value of
the spectrum, the timeliness of clearance, and the need for the
spectrum. The payments would be used to achieve enhanced
capabilities for the systems affected by the reallocation for
Federal spectrum or for other systems essential for the entity.
Any amounts remaining in the Spectrum Relocation Fund eight
years after the amount was deposited in the Spectrum Relocation
Fund would revert to the U.S. Treasury.
Section 515. Report on Spectrum Sharing.
This section would instruct the NTIA to conduct a study and
submit a report within one year of enactment that identifies
spectrum between 225 MHz and 3700 MHz suitable for sharing with
government or non-Federal government entities and describes how
Federal entities can use dynamic spectrum sharing to share
underutilized spectrum. Within six months of the report, the
NTIA would conduct a public consultation to develop rules for
Federal users to increase spectrum sharing by Federal entities.
SUBTITLE C--EFFICIENCY AND MANAGEMENT
Section 521. Functional Responsibility of the NTIA to Ensure Efficient
Use of Spectrum.
Section 521 would amend the NTIAO Act to make the NTIA
responsible for promoting the best possible and most efficient
use of the Federal Government's spectrum, subject to and
consistent with the needs and missions of Federal agencies.
Section 522. Spectrum Efficiency Analytic Tools.
This section would direct the NTIA to develop analytic tools
to measure the spectrum efficiency of Federal spectrum systems.
The NTIA would be required to consider the conclusions in the
report of the Commerce Spectrum Management Advisory Committee
titled ``Definitions of Efficiency in Spectrum Use,'' dated
October 1, 2008.
Section 523. Study on Receiver Performance and Spectrum Efficiency.
Section 523 would require the Comptroller General to conduct
a study and submit a report within one year of enactment on
ensuring that transmission systems are designed so that
reasonable use of the adjacent bands does not excessively
impair such systems. The study would consider the value of
improving receiver performance, improving operations in
adjacent bands, and narrowing the guard bands between adjacent
spectrum blocks. The study would also consider the role of
manufacturers, licensees, and government users, as well as the
feasibility of industry self-compliance.
Section 524. Frequency Assignment.
This section would require the NTIA, in consultation with the
Interdepartment Radio Advisory Committee, to examine its
frequency assignment process and consider best practices to
determine whether the current approach for collecting and
validating data from Federal entities can be streamlined or
improved.
In carrying out this section, the NTIA would be required to
consider whether it should provide Federal entities with
specific guidelines or requirements to justify spectrum
requests, require Federal entities to submit documentation,
verify that entities have completed supporting analysis, and
require mangers of spectrum resources at each Federal entity to
validate, verify, or attest to the accuracy of any spectrum
information submitted to the NTIA.
Section 525. Spectrum Opportunity Cost Transparency.
Section 525 would instruct the NTIA, in consultation with the
FCC and OMB, to determine the annual economic opportunity cost
of each Federal spectrum band between 150 MHz and 6000 MHz
assigned to or used by Federal users. This framework would help
Federal users better understand the value of the spectrum and
increase transparency for the public. The analysis would be
updated on an annual basis to account for changes in valuation.
This section would define opportunity cost as the value of
spectrum, in dollar terms, as if such spectrum were to be
reallocated to the highest commercial alternative use that
currently does not have access to that spectrum. Each Federal
entity would report the opportunity cost borne by that agency
for each spectrum band that is entirely under the control of
that single agency as part of its budget and the annual
required financial statement. Every five years, each Federal
agency would be required to analyze the opportunity cost
against the cost of relocation of the Federal users, sharing
the spectrum, leasing other non-Federal spectrum, or
contracting out for its spectrum activities.
This section would instruct the Comptroller General, in
consultation with the NTIA, to examine the technologies and
equipment used on Federal spectrum to ensure they are the most
efficient available. If the technologies and equipment are not
the most spectrum efficient available, the study would
determine what the cost, benefits, or problems would be to
upgrade the system.
Section 526. System Certification.
This section would direct OMB to update, within six months of
enactment, section 33.4 of OMB Circular A-11 to reflect the
recommendations in the Commerce Spectrum Management Advisory
Committee Incentive Subcommittee report adopted January 11,
2011.
Section 527. Report to Congress on Improving Spectrum Management.
Section 527 would instruct the NTIA to report, within three
months of enactment, on the status of NTIA's plan to implement
the recommendations in the ``President's Memorandum on
Improving Spectrum Management for the 21st Century.''
Section 528. Wireless Facilities Deployment.
This section would prohibit a State or local government from
denying a request for a modification of an existing wireless
tower that does not substantially change the physical
dimensions of such tower. This section defines ``eligible
facilities request'' as a request for modification of an
existing tower for collocation of new transmission equipment,
removal of transmission equipment, and replacement of
transmission equipment.
The Committee intends that an eligible facilities request
under this section includes requests that do not change the
overall visual appearance of the tower, the weight loading or
sail area of the tower, or the power requirements needed to
service the tower's transmission equipment. The Committee
further intends that the term ``collocation'' would mean
collocation as defined by the FCC.
The section would also allow Federal executive agencies to
grant to State and local governments and to private entities
easements or rights-of-way to government-owned buildings to
install, construct, or maintain wireless service and backhaul
equipment. The agency granting such access would be authorized
to collect a fee for such access, which may be waived based on
the public benefits of granting such an easement or right-of-
way. Any such fees would be deposited in the Federal Buildings
Fund. This section would also direct the General Services
Administration to develop a master contract for the placement
of wireless equipment on buildings and property owned by the
Federal government.
In authorizing Federal executive agencies to grant such
easements or rights-of-way to government-owned buildings, the
Committee does not intend that such permissive authority in any
way would compromise Federal executive agencies' ability to
protect national security or safety.
TITLE VI--STUDIES ON NEXT GENERATION 9-1-1 SERVICES
Section 601. Definitions.
This section would define the terms 9-1-1 services, E9-1-1
services, Next Generation 9-1-1, and Public Safety Answering
Point for use in this title.
Section 602. NHTSA Report on Costs for Requirements and Specifications
of Next Generation 9-1-1 Services.
Section 602 would direct the Administrator of the National
Highway Traffic Safety Administration (NHTSA), in consultation
with the FCC and the Secretary of Homeland Security, to submit
a report to Congress within one year of enactment that analyzes
the detailed costs for NG 9-1-1 specifications. The report
would serve as a resource to Congress as it considers creating
a coordinated, long-term funding mechanism for NG 9-1-1.
Section 603. FCC Recommendations for Legal and Statutory Framework for
Next Generation 9-1-1 Services.
This section would direct the FCC, in coordination with the
Secretary of Homeland Security and the Administrator of NHTSA,
to submit a report to Congress within one year of enactment
that includes recommendations on the legal and statutory
framework for NG 9-1-1 services. The report would contain a
legal and regulatory framework for the transition to NG 9-1-1,
legal mechanisms to ensure accurate transmission of 9-1-1
caller information, and recommendations for removing
jurisdictional barriers to NG 9-1-1.
TITLE VII--MISCELLANEOUS
Section 701. Severability.
This section would state that, if any provision of the Act is
held to be unconstitutional, the other provisions of this Act
will not be affected.
Section 702. Rule of Construction.
This section would state that nothing in this Act shall be
construed as adding or subtracting from the authority the FCC
may or may not have to regulate broadband Internet access
service.
TITLE VIII--COMPLIANCE WITH STATUTORY PAY-AS-YOU-GO ACT
Section 801. Budget Compliance.
This section contains standard language regarding the
budgetary effects of the Act as it pertains to PAYGO
compliance:
Pay-As-You-Go Considerations: The Statutory Pay-As-You-Go Act
of 2010 establishes budget-reporting and enforcement procedures
for legislation affecting direct spending or revenues. The net
changes in outlays that are subject to those pay-as-you-go
procedures are shown in the following table.
CB0 ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR S. 911 AS ORDERED REPORTED BY THE SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION ON JUNE 8, 2011
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
----------------------------------------------------------------------------------------------------------------------------------------------
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2011-2016 2011-2021
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact................... 0 1,461 1,735 737 -554 -1,503 -2,222 -1,821 -2,104 -869 -1,325 1,876 -6,465
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Rollcall Votes in Committee
Senators Rockefeller and Hutchison offered an amendment in
the nature of a substitute (subject to numerous amendments
previously adopted by voice vote) to strengthen public safety
and enhance wireless communications, and for other purposes. By
a rollcall vote of 21 yeas and 4 nays as follows, the amendment
was adopted:
YEAS--21 NAYS--4
Mr. Inouye\1\ Ms. Snowe
Mr. Kerry\1\ Mr. DeMint
Mrs. Boxer\1\ Mr. Toomey
Mr. Nelson Mr. Rubio
Ms. Cantwell
Mr. Lautenberg
Mr. Pryor
Mrs. McCaskill
Ms. Klobuchar
Mr. Udall
Mr. Warner
Mr. Begich
Mrs. Hutchison
Mr. Thune
Mr. Wicker
Mr. Isakson\1\
Mr. Blunt
Mr. Boozman
Ms. Ayotte
Mr. Heller
Mr. Rockefeller
\1\By proxy
Senator Toomey offered an amendment to the amendment (in the
nature of a substitute) offered by Senators Rockefeller and
Hutchison, to strike section 224 of the bill (relating to
advanced information and communications technology research).
By a rollcall vote of 9 yeas and 16 nays as follows, the
amendment was defeated.
YEAS--9 NAYS--16
Ms. McCaskill Mr. Inouye\1\
Mr. DeMint\1\ Mr. Kerry\1\
Mr. Thune Mrs. Boxer
Mr. Blunt Mr. Nelson\1\
Mr. Boozman Ms. Cantwell\1\
Mr. Toomey Mr. Lautenberg
Mr. Rubio Mr. Pryor
Ms. Ayotte Ms. Klobuchar
Mr. Heller Mr. Udall\1\
Mr. Warner
Mr. Begich\1\
Mrs. Hutchison
Ms. Snowe\1\
Mr. Wicker\1\
Mr. Isakson\1\
Mr. Rockefeller
\1\By proxy
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the Standing
Rules of the Senate, changes in existing law made by the bill,
as reported, are shown as follows (existing law proposed to be
omitted is enclosed in black brackets, new material is printed
in italic, existing law in which no change is proposed is shown
in roman):
COMMUNICATIONS ACT OF 1934
[47 U.S.C. 301 et seq.]
SEC. 309. APPLICATION FOR LICENSE.
[47 U.S.C. 309]
* * * * * * *
(j) Use of Competitive Bidding.--
(1) General authority.--If, consistent with the
obligations described in paragraph (6)(E), mutually
exclusive applications are accepted for any initial
license or construction permit, then, except as
provided in paragraph (2), the Commission shall grant
the license or permit to a qualified applicant through
a system of competitive bidding that meets the
requirements of this subsection.
(2) Exemptions.--The competitive bidding authority
granted by this subsection shall not apply to licenses
or construction permits issued by the Commission--
(A) for public safety radio services,
including private internal radio services used
by State and local governments and non-
government entities and including emergency
road services provided by not-for-profit
organizations, that--
(i) are used to protect the safety of
life, health, or property; and
(ii) are not made commercially
available to the public;
(B) for initial licenses or construction
permits for digital television service given to
existing terrestrial broadcast licensees to
replace their analog television service
licenses; or
(C) for stations described in section 397(6)
of this Act.
(3) Design of systems of competitive bidding.--For
each class of licenses or permits that the Commission
grants through the use of a competitive bidding system,
the Commission shall, by regulation, establish a
competitive bidding methodology. The Commission shall
seek to design and test multiple alternative
methodologies under appropriate circumstances. The
Commission shall, directly or by contract, provide for
the design and conduct (for purposes of testing) of
competitive bidding using a contingent combinatorial
bidding system that permits prospective bidders to bid
on combinations or groups of licenses in a single bid
and to enter multiple alternative bids within a single
bidding round. In identifying classes of licenses and
permits to be issued by competitive bidding, in
specifying eligibility and other characteristics of
such licenses and permits, and in designing the
methodologies for use under this subsection, the
Commission shall include safeguards to protect the
public interest in the use of the spectrum and shall
seek to promote the purposes specified in section 1 of
this Act and the following objectives:
(A) the development and rapid deployment of
new technologies, products, and services for
the benefit of the public, including those
residing in rural areas, without administrative
or judicial delays;
(B) promoting economic opportunity and
competition and ensuring that new and
innovative technologies are readily accessible
to the American people by avoiding excessive
concentration of licenses and by disseminating
licenses among a wide variety of applicants,
including small businesses, rural telephone
companies, and businesses owned by members of
minority groups and women;
(C) recovery for the public of a portion of
the value of the public spectrum resource made
available for commercial use and avoidance of
unjust enrichment through the methods employed
to award uses of that resource;
(D) efficient and intensive use of the
electromagnetic spectrum;
(E) ensure that, in the scheduling of any
competitive bidding under this subsection, an
adequate period is allowed--
(i) before issuance of bidding rules,
to permit notice and comment on
proposed auction procedures; and
(ii) after issuance of bidding rules,
to ensure that interested parties have
a sufficient time to develop business
plans, assess market conditions, and
evaluate the availability of equipment
for the relevant services[; and] ;
(F) for any auction of eligible frequencies
described in section 113(g)(2) of the National
Telecommunications and Information
Administration Organization Act (47 U.S.C.
923(g)(2)), the recovery of 110 percent of
estimated relocation costs as provided to the
Commission pursuant to section 113(g)(4) of
such Act[.] ;
(G) ensuring that there is an adequate
opportunity for applicants to obtain licenses
covering both large and small geographic areas,
as such areas are determined by the Commission.
(4) Contents of regulations.--In prescribing
regulations pursuant to paragraph (3), the Commission
shall--
(A) consider alternative payment schedules
and methods of calculation, including lump sums
or guaranteed installment payments, with or
without royalty payments, or other schedules or
methods that promote the objectives described
in paragraph (3)(B), and combinations of such
schedules and methods;
(B) include performance requirements, such as
appropriate deadlines and penalties for
performance failures, to ensure prompt delivery
of service to rural areas, to prevent
stockpiling or warehousing of spectrum by
licensees or permittees, and to promote
investment in and rapid deployment of new
technologies and services;
(C) consistent with the public interest,
convenience, and necessity, the purposes of
this Act, and the characteristics of the
proposed service, prescribe area designations
and bandwidth assignments that promote (i) an
equitable distribution of licenses and services
among geographic areas, (ii) economic
opportunity for a wide variety of applicants,
including small businesses, rural telephone
companies, and businesses owned by members of
minority groups and women, and (iii) investment
in and rapid deployment of new technologies and
services;
(D) ensure that small businesses, rural
telephone companies, and businesses owned by
members of minority groups and women are given
the opportunity to participate in the provision
of spectrum-based services, and, for such
purposes, consider the use of tax certificates,
bidding preferences, and other procedures;
(E) require such transfer disclosures and
antitrafficking restrictions and payment
schedules as may be necessary to prevent unjust
enrichment as a result of the methods employed
to issue licenses and permits; and
(F) prescribe methods by which a reasonable
reserve price will be required, or a minimum
bid will be established, to obtain any license
or permit being assigned pursuant to the
competitive bidding, unless the Commission
determines that such a reserve price or minimum
bid is not in the public interest.
(5) Bidder and licensee qualification.--No person
shall be permitted to participate in a system of
competitive bidding pursuant to this subsection unless
such bidder submits such information and assurances as
the Commission may require to demonstrate that such
bidder's application is acceptable for filing. No
license shall be granted to an applicant selected
pursuant to this subsection unless the Commission
determines that the applicant is qualified pursuant to
subsection (a) and sections 308(b) and 310. Consistent
with the objectives described in paragraph (3), the
Commission shall, by regulation, prescribe expedited
procedures consistent with the procedures authorized by
subsection (i)(2) for the resolution of any substantial
and material issues of fact concerning qualifications.
(6) Rules of construction.--Nothing in this
subsection, or in the use of competitive bidding,
shall--
(A) alter spectrum allocation criteria and
procedures established by the other provisions
of this Act;
(B) limit or otherwise affect the
requirements of subsection (h) of this section,
section 301, 304, 307, 310, or 706, or any
other provision of this Act (other than
subsections (d)(2) and (e) of this section);
(C) diminish the authority of the Commission
under the other provisions of this Act to
regulate or reclaim spectrum licenses;
(D) be construed to convey any rights,
including any expectation of renewal of a
license, that differ from the rights that apply
to other licenses within the same service that
were not issued pursuant to this subsection;
(E) be construed to relieve the Commission of
the obligation in the public interest to
continue to use engineering solutions,
negotiation, threshold qualifications, service
regulations, and other means in order to avoid
mutual exclusivity in application and licensing
proceedings;
(F) be construed to prohibit the Commission
from issuing nationwide, regional, or local
licenses or permits;
(G) be construed to prevent the Commission
from awarding licenses to those persons who
make significant contributions to the
development of a new telecommunications service
or technology; or
(H) be construed to relieve any applicant for
a license or permit of the obligation to pay
charges imposed pursuant to section 8 of this
Act.
(7) Consideration of revenues in public interest
determinations.--
(A) Consideration prohibited.--In making a
decision pursuant to section 303(c) to assign a
band of frequencies to a use for which licenses
or permits will be issued pursuant to this
subsection, and in prescribing regulations
pursuant to paragraph (4)(C) of this
subsection, the Commission may not base a
finding of public interest, convenience, and
necessity on the expectation of Federal
revenues from the use of a system of
competitive bidding under this subsection.
(B) Consideration limited.--In prescribing
regulations pursuant to paragraph (4)(A) of
this subsection, the Commission may not base a
finding of public interest, convenience, and
necessity solely or predominantly on the
expectation of Federal revenues from the use of
a system of competitive bidding under this
subsection.
(C) Consideration of demand for spectrum not
affected.--Nothing in this paragraph shall be
construed to prevent the Commission from
continuing to consider consumer demand for
spectrum-based services.
(8) Treatment of revenues.--
(A) General rule.--Except as provided in
subparagraphs [(B), (D), and (E),] (B), (D),
(E), and (F), all proceeds from the use of a
competitive bidding system under this
subsection shall be deposited in the Treasury
in accordance with chapter 33 of title 31,
United States Code.
(B) Retention of revenues.--Notwithstanding
subparagraph (A), the salaries and expenses
account of the Commission shall retain as an
offsetting collection such sums as may be
necessary from such proceeds for the costs of
developing and implementing the program
required by this subsection. Such offsetting
collections shall be available for obligation
subject to the terms and conditions of the
receiving appropriations account, and shall be
deposited in such accounts on a quarterly
basis. Such offsetting collections are
authorized to remain available until expended.
No sums may be retained under this subparagraph
during any fiscal year beginning after
September 30, 1998, if the annual report of the
Commission under section 4(k) for the second
preceding fiscal year fails to include in the
itemized statement required by paragraph (3) of
such section a statement of each expenditure
made for purposes of conducting competitive
bidding under this subsection during such
second preceding fiscal year.
(C) Deposit and use of auction escrow
accounts.--Any deposits the Commission may
require for the qualification of any person to
bid in a system of competitive bidding pursuant
to this subsection shall be deposited in an
interest bearing account at a financial
institution designated for purposes of this
subsection by the Commission (after
consultation with the Secretary of the
Treasury). Within 45 days following the
conclusion of the competitive bidding--
[(i) the deposits of successful
bidders shall be paid to the Treasury,
except as otherwise provided in
subparagraph (E)(ii);]
(i) the deposits--
(I) of successful bidders of
any auction conducted pursuant
to subparagraph (F) or to
section 302 of the Public
Safety Spectrum and Wireless
Innovation Act shall be paid to
the Public Safety Trust Fund
established under section 401
of such Act; and
(II) of successful bidders of
any other auction shall be paid
to the Treasury;
(ii) the deposits of unsuccessful
bidders shall be returned to such
bidders; and
(iii) the interest accrued to the
account shall be transferred to the
Telecommunications Development Fund
established pursuant to section 714 of
this Act.
(D) Disposition of cash proceeds.--Cash
proceeds attributable to the auction of any
eligible frequencies described in section
113(g)(2) of the National Telecommunications
and Information Administration Organization Act
(47 U.S.C. 923(g)(2)) excluding frequencies
identified by the Federal Communications
Commission to be auctioned in conjunction with
eligible frequencies described in section
113(g)(2) shall be deposited in the Spectrum
Relocation Fund established under section 118
of such Act, and shall be available in
accordance with that section.
(E) Transfer of receipts.--
(i) Establishment of fund.--There is
established in the Treasury of the
United States a fund to be known as the
Digital Television Transition and
Public Safety Fund.
(ii) Proceeds for funds.--
Notwithstanding subparagraph (A), the
proceeds (including deposits and
upfront payments from successful
bidders) from the use of a competitive
bidding system under this subsection
with respect to recovered analog
spectrum shall be deposited in the
Digital Television Transition and
Public Safety Fund.
(iii) Transfer of amount to
Treasury.--On September 30, 2009, the
Secretary shall transfer $
7,363,000,000 from the Digital
Television Transition and Public Safety
Fund to the general fund of the
Treasury.
(iv) Recovered analog spectrum.--For
purposes of clause (i), the term
``recovered analog spectrum'' has the
meaning provided in paragraph
(15)(C)(vi).
(F) Incentive auction authority.--
(i) Authority.--Notwithstanding any
other provision of law, if the
Commission determines that it is
consistent with the public interest in
utilization of the spectrum for a
licensee to relinquish voluntarily some
or all of its licensed spectrum usage
rights in order to permit the
assignment of new initial licenses
through a competitive bidding process
subject to new service rules, or the
designation of new spectrum for
unlicensed use, the Commission may
disburse to that licensee a portion of
any auction proceeds that the
Commission determines, in its
discretion, are attributable to the
licensee's relinquished spectrum usage
rights, provided that television
broadcast stations required to be
carried pursuant to sections 338, 614,
or 615 that voluntarily elect to share
a channel shall retain the rights to
carriage set forth in such sections and
the rules of the Commission, as such
rights apply to such station at its
shared location.
(ii) Prohibition.--
(I) In general.--The
Commission may not reclaim
spectrum licensed on a primary
basis to a television broadcast
station, directly or
indirectly, on an involuntary
basis for purposes of providing
spectrum to carry out an
incentive auction under this
subparagraph.
(II) Exception.--The
Commission may reclaim spectrum
licensed to a television
broadcast station licensee for
the purposes of providing
spectrum to carry out an
incentive auction under this
subparagraph, only if the
Commission assigns an identical
amount of contiguous spectrum,
located between channels 14 and
50, in the same geographic
market, if the spectrum was
reclaimed from between channels
14 and 51, or located between
channels 2 and 13, inclusive,
in the same geographic market,
to the television broadcast
station licensee if the
spectrum was reclaimed from
between channels 2 and 13,
provided that--
(aa) the Commission
may not involuntarily
co-locate multiple
television broadcast
station licensees on
the same channel; and
(bb) television
broadcast stations
required to be carried
pursuant to sections
338, 614, or 615 that
voluntarily elect to
share a channel shall
retain the rights to
carriage set forth in
such sections and the
rules of the
Commission, as such
rights apply to such
station at its shared
location.
(III) Repacking.--When
assigning spectrum to
television broadcast station
licensees pursuant to subclause
(II), if the Commission
determines that it is in the
public interest to modify the
spectrum usage rights of any
incumbent licensee in order to
facilitate the assignment of
such new initial licenses
subject to new service rules,
or the designation of spectrum
for an unlicensed use, the
Commission may disburse to such
licensee a portion of the
auction proceeds for the
purpose of relocating to any
alternative frequency or
location that the Commission
may designate, and the
Commission shall, to the extent
technically feasible and in the
public interest, make
reasonable efforts to--
(aa) preserve the
amount of population
covered by a licensee's
signal within the
licensee's service
area;
(bb) avoid any
involuntary increase in
interference to the
licensee's signal that
may otherwise result
from new spectrum
assignments;
(cc) allow licensees
assigned to broadcast
channels 2 through 6 to
relocate to channels in
the UHF range, if
possible and consistent
with the goals of the
incentive auction, as
determined by the
Commission; and
(dd) allow low power
television broadcast
licensees assigned to
channels in the UHF
range that are impacted
by relocation of other
licensees pursuant to
this subclause to
relocate to channels in
the VHF range.
(IV) Unlicensed spectrum.--
With respect to frequency bands
between 54 and 72 MHz, 76 and
88 MHz, 174 and 216 MHz, 470
and 698 MHz, 84 MHz shall be
assigned via a competitive
bidding process. A portion of
the proceeds from the
competitive bidding of the
frequency bands identified in
the prior sentence may, if
consistent with the public
interest, be disbursed to other
licensees, for the purpose of
ensuring that unlicensed
spectrum remains available in
these frequency bands,
nationwide, and in each local
market.
(iii) Treatment of revenues.--
Notwithstanding subparagraph (A), and
except as provided in subparagraphs
(B), (C), and (D), all proceeds
(including deposits and up front
payments from successful bidders) from
the auction of spectrum under this
subparagraph shall be deposited with
the Public Safety Trust Fund
established under section 401 of the
Public Safety Spectrum and Wireless
Innovation Act.
(G) Establishment of incentive auction
relocation fund.--
(i) In general.--There is established
in the Treasury of the United States a
fund to be known as the ``Incentive
Auction Relocation Fund''.
(ii) Administration.--The Assistant
Secretary shall administer the
Incentive Auction Relocation Fund using
the amounts deposited pursuant to this
section.
(iii) Crediting of receipts.--There
shall be deposited into or credited to
the Incentive Auction Relocation Fund
any amounts specified in section 401 of
the Public Safety Spectrum and Wireless
Innovation Act.
(iv) Availability.--Amounts in the
Incentive Auction Relocation Fund shall
be available to the NTIA for use--
(I) for a period not to
exceed 18 months following the
later of--
(aa) the completion
of incentive auction
from which such amounts
were derived; or
(bb) the date on
which the Commission
issues all the new
channel assignments
pursuant to any
repacking required
under subparagraph
(F)(ii); and
(II) without further
appropriation.
(v) Use of funds.--Amounts in the
Incentive Auction Relocation Fund may
only be used by the NTIA, in
consultation with the Commission, to
cover--
(I) the reasonable costs of
television broadcast stations
that are relocated to a
different spectrum channel or
geographic location following
an incentive auction under
subparagraph (F), or that are
impacted by such relocations,
including to cover the cost of
new equipment, installation,
and construction; and
(II) the costs incurred by
multichannel video programming
distributors for new equipment,
installation, and construction
related to the carriage of such
relocated stations or the
carriage of stations that
voluntarily elect to share a
channel, but retain their
existing rights to carriage
pursuant to sections 338, 614,
and 615.
(9) Use of former government spectrum.--The
Commission shall, not later than 5 years after the date
of enactment of this subsection, issue licenses and
permits pursuant to this subsection for the use of
bands of frequencies that--
(A) in the aggregate span not less than 10
megahertz; and
(B) have been reassigned from Government use
pursuant to part B of the National
Telecommunications and Information
Administration Organization Act.
(10) Authority contingent on availability of
additional spectrum.--
(A) Initial conditions.--The Commission's
authority to issue licenses or permits under
this subsection shall not take effect unless--
(i) the Secretary of Commerce has
submitted to the Commission the report
required by section 113(d)(1) of the
National Telecommunications and
Information Administration Organization
Act;
(ii) such report recommends for
immediate reallocation bands of
frequencies that, in the aggregate,
span not less than 50 megahertz;
(iii) such bands of frequencies meet
the criteria required by section 113(a)
of such Act; and
(iv) the Commission has completed the
rulemaking required by section
332(c)(1)(D) of this Act.
(B) Subsequent conditions.--The Commission's
authority to issue licenses or permits under
this subsection on and after 2 years after the
date of the enactment of this subsection shall
cease to be effective if--
(i) the Secretary of Commerce has
failed to submit the report required by
section 113(a) of the National
Telecommunications and Information
Administration Organization Act;
(ii) the President has failed to
withdraw and limit assignments of
frequencies as required by paragraphs
(1) and (2) of section 114(a) of such
Act;
(iii) the Commission has failed to
issue the regulations required by
section 115(a) of such Act;
(iv) the Commission has failed to
complete and submit to Congress, not
later than 18 months after the date of
enactment of this subsection, a study
of current and future spectrum needs of
State and local government public
safety agencies through the year 2010,
and a specific plan to ensure that
adequate frequencies are made available
to public safety licensees; or
(v) the Commission has failed under
section 332(c)(3) to grant or deny
within the time required by such
section any petition that a State has
filed within 90 days after the date of
enactment of this subsection;
until such failure has been corrected.
(11) Termination.--The authority of the Commission to
grant a license or permit under this subsection shall
expire September 30, [2012] 2021.
(12) Evaluation.--Not later than September 30, 1997,
the Commission shall conduct a public inquiry and
submit to the Congress a report--
(A) containing a statement of the revenues
obtained, and a projection of the future
revenues, from the use of competitive bidding
systems under this subsection;
(B) describing the methodologies established
by the Commission pursuant to paragraphs (3)
and (4);
(C) comparing the relative advantages and
disadvantages of such methodologies in terms of
attaining the objectives described in such
paragraphs;
(D) evaluating whether and to what extent--
(i) competitive bidding significantly
improved the efficiency and
effectiveness of the process for
granting radio spectrum licenses;
(ii) competitive bidding facilitated
the introduction of new spectrum-based
technologies and the entry of new
companies into the telecommunications
market;
(iii) competitive bidding
methodologies have secured prompt
delivery of service to rural areas and
have adequately addressed the needs of
rural spectrum users; and
(iv) small businesses, rural
telephone companies, and businesses
owned by members of minority groups and
women were able to participate
successfully in the competitive bidding
process; and
(E) recommending any statutory changes that
are needed to improve the competitive bidding
process.
(13) Recovery of value of public spectrum in
connection with pioneer preferences.--
(A) In general.--Notwithstanding paragraph
(6)(G), the Commission shall not award licenses
pursuant to a preferential treatment accorded
by the Commission to persons who make
significant contributions to the development of
a new telecommunications service or technology,
except in accordance with the requirements of
this paragraph.
(B) Recovery of value.--The Commission shall
recover for the public a portion of the value
of the public spectrum resource made available
to such person by requiring such person, as a
condition for receipt of the license, to agree
to pay a sum determined by--
(i) identifying the winning bids for
the licenses that the Commission
determines are most reasonably
comparable in terms of bandwidth, scope
of service area, usage restrictions,
and other technical characteristics to
the license awarded to such person, and
excluding licenses that the Commission
determines are subject to bidding
anomalies due to the award of
preferential treatment;
(ii) dividing each such winning bid
by the population of its service area
(hereinafter referred to as the per
capita bid amount);
(iii) computing the average of the
per capita bid amounts for the licenses
identified under clause (i);
(iv) reducing such average amount by
15 percent; and
(v) multiplying the amount determined
under clause (iv) by the population of
the service area of the license
obtained by such person.
(C) Installments permitted.--The Commission
shall require such person to pay the sum
required by subparagraph (B) in a lump sum or
in guaranteed installment payments, with or
without royalty payments, over a period of not
more than 5 years.
(D) Rulemaking on pioneer preferences.--
Except with respect to pending applications
described in clause (iv) of this subparagraph,
the Commission shall prescribe regulations
specifying the procedures and criteria by which
the Commission will evaluate applications for
preferential treatment in its licensing
processes (by precluding the filing of mutually
exclusive applications) for persons who make
significant contributions to the development of
a new service or to the development of new
technologies that substantially enhance an
existing service. Such regulations shall--
(i) specify the procedures and
criteria by which the significance of
such contributions will be determined,
after an opportunity for review and
verification by experts in the radio
sciences drawn from among persons who
are not employees of the Commission or
by any applicant for such preferential
treatment;
(ii) include such other procedures as
may be necessary to prevent unjust
enrichment by ensuring that the value
of any such contribution justifies any
reduction in the amounts paid for
comparable licenses under this
subsection;
(iii) be prescribed not later than 6
months after the date of enactment of
this paragraph;
(iv) not apply to applications that
have been accepted for filing on or
before September 1, 1994; and
(v) cease to be effective on the date
of the expiration of the Commission's
authority under subparagraph (F).
(E) Implementation with respect to pending
applications.--In applying this paragraph to
any broadband licenses in the personal
communications service awarded pursuant to the
preferential treatment accorded by the Federal
Communications Commission in the Third Report
and Order in General Docket 90-314 (FCC 93-550,
released February 3, 1994)--
(i) the Commission shall not
reconsider the award of preferences in
such Third Report and Order, and the
Commission shall not delay the grant of
licenses based on such awards more than
15 days following the date of enactment
of this paragraph, and the award of
such preferences and licenses shall not
be subject to administrative or
judicial review;
(ii) the Commission shall not alter
the bandwidth or service areas
designated for such licenses in such
Third Report and Order;
(iii) except as provided in clause
(v), the Commission shall use, as the
most reasonably comparable licenses for
purposes of subparagraph (B)(i), the
broadband licenses in the personal
communications service for blocks A and
B for the 20 largest markets (ranked by
population) in which no applicant has
obtained preferential treatment;
(iv) for purposes of subparagraph
(C), the Commission shall permit
guaranteed installment payments over a
period of 5 years, subject to--
(I) the payment only of
interest on unpaid balances
during the first 2 years,
commencing not later than 30
days after the award of the
license (including any
preferential treatment used in
making such award) is final and
no longer subject to
administrative or judicial
review, except that no such
payment shall be required prior
to the date of completion of
the auction of the comparable
licenses described in clause
(iii); and
(II) payment of the unpaid
balance and interest thereon
after the end of such 2 years
in accordance with the
regulations prescribed by the
Commission; and
(v) the Commission shall recover with
respect to broadband licenses in the
personal communications service an
amount under this paragraph that is
equal to not less than $ 400,000,000,
and if such amount is less than $
400,000,000, the Commission shall
recover an amount equal to $
400,000,000 by allocating such amount
among the holders of such licenses
based on the population of the license
areas held by each licensee.
The Commission shall not include in any amounts
required to be collected under clause (v) the
interest on unpaid balances required to be
collected under clause (iv).
(F) Expiration.--The authority of the
Commission to provide preferential treatment in
licensing procedures (by precluding the filing
of mutually exclusive applications) to persons
who make significant contributions to the
development of a new service or to the
development of new technologies that
substantially enhance an existing service shall
expire on the date of enactment of the Balanced
Budget Act of 1997.
(G) Effective date.--This paragraph shall be
effective on the date of its enactment and
apply to any licenses issued on or after August
1, 1994, by the Federal Communications
Commission pursuant to any licensing procedure
that provides preferential treatment (by
precluding the filing of mutually exclusive
applications) to persons who make significant
contributions to the development of a new
service or to the development of new
technologies that substantially enhance an
existing service.
(14) Auction of recaptured broadcast television
spectrum.--
(A) Limitations on terms of terrestrial
television broadcast licenses.--A full-power
television broadcast license that authorizes
analog television service may not be renewed to
authorize such service for a period that
extends beyond June 12, 2009.
(B) Spectrum reversion and resale.--
(i) The Commission shall--
(I) ensure that, as licenses
for analog television service
expire pursuant to subparagraph
(A), each licensee shall cease
using electromagnetic spectrum
assigned to such service
according to the Commission's
direction; and
(II) reclaim and organize the
electromagnetic spectrum in a
manner consistent with the
objectives described in
paragraph (3) of this
subsection.
(ii) Licensees for new services
occupying spectrum reclaimed pursuant
to clause (i) shall be assigned in
accordance with this subsection.
(C) Certain limitations on qualified bidders
prohibited.--In prescribing any regulations
relating to the qualification of bidders for
spectrum reclaimed pursuant to subparagraph
(B)(i), the Commission, for any license that
may be used for any digital television service
where the grade A contour of the station is
projected to encompass the entirety of a city
with a population in excess of 400,000 (as
determined using the 1990 decennial census),
shall not--
(i) preclude any party from being a
qualified bidder for such spectrum on
the basis of--
(I) the Commission's duopoly
rule (47 C.F.R. 73.3555(b)); or
(II) the Commission's
newspaper cross-ownership rule
(47 C.F.R. 73.3555(d)); or
(ii) apply either such rule to
preclude such a party that is a winning
bidder in a competitive bidding for
such spectrum from using such spectrum
for digital television service.
(15) Commission to determine timing of auctions.--
(A) Commission authority.--Subject to the
provisions of this subsection (including
paragraph (11)), but notwithstanding any other
provision of law, the Commission shall
determine the timing of and deadlines for the
conduct of competitive bidding under this
subsection, including the timing of and
deadlines for qualifying for bidding;
conducting auctions; collecting, depositing,
and reporting revenues; and completing
licensing processes and assigning licenses.
(B) Termination of portions of auctions 31
and 44.--Except as provided in subparagraph
(C), the Commission shall not commence or
conduct auctions 31 and 44 on June 19, 2002, as
specified in the public notices of March 19,
2002, and March 20, 2002 (DA 02-659 and DA 02-
563).
(C) Exception.--
(i) Blocks excepted.--Subparagraph
(B) shall not apply to the auction of--
(I) the C-block of licenses
on the bands of frequencies
located at 710-716 megahertz,
and 740-746 megahertz; or
(II) the D-block of licenses
on the bands of frequencies
located at 716-722 megahertz.
(ii) Eligible bidders.--The entities
that shall be eligible to bid in the
auction of the C-block and D-block
licenses described in clause (i) shall
be those entities that were qualified
entities, and that submitted
applications to participate in auction
44, by May 8, 2002, as part of the
original auction 44 short form filing
deadline.
(iii) Auction deadlines for excepted
blocks.--Notwithstanding subparagraph
(B), the auction of the C-block and D-
block licenses described in clause (i)
shall be commenced no earlier than
August 19, 2002, and no later than
September 19, 2002, and the proceeds of
such auction shall be deposited in
accordance with paragraph (8) not later
than December 31, 2002.
(iv) Report.--Within one year after
the date of enactment of this
paragraph, the Commission shall submit
a report to Congress--
(I) specifying when the
Commission intends to
reschedule auctions 31 and 44
(other than the blocks excepted
by clause (i)); and
(II) describing the progress
made by the Commission in the
digital television transition
and in the assignment and
allocation of additional
spectrum for advanced mobile
communications services that
warrants the scheduling of such
auctions.
(v) Additional deadlines for
recovered analog spectrum.--
Notwithstanding subparagraph (B), the
Commission shall conduct the auction of
the licenses for recovered analog
spectrum by commencing the bidding not
later than January 28, 2008, and shall
deposit the proceeds of such auction in
accordance with paragraph (8)(E)(ii)
not later than June 30, 2008.
(vi) Recovered analog spectrum.--For
purposes of clause (v), the term
``recovered analog spectrum'' means the
spectrum between channels 52 and 69,
inclusive (between frequencies 698 and
806 megahertz, inclusive) reclaimed
from analog television service
broadcasting under paragraph (14),
other than--
(I) the spectrum required by
section 337 to be made
available for public safety
services; and
(II) the spectrum auctioned
prior to the date of enactment
of the Digital Television
Transition and Public Safety
Act of 2005.
(D) Return of payments.--Within one month
after the date of enactment of this paragraph,
the Commission shall return to the bidders for
licenses in the A-block, B-block, and E-block
of auction 44 the full amount of all upfront
payments made by such bidders for such
licenses.
(16) Special auction provisions for eligible
frequencies.--
(A) Special regulations.--The Commission
shall revise the regulations prescribed under
paragraph (4)(F) of this subsection to
prescribe methods by which the total cash
proceeds from any auction of eligible
frequencies described in section 113(g)(2) of
the National Telecommunications and Information
Administration Organization Act (47 U.S.C.
923(g)(2)) shall at least equal 110 percent of
the total estimated relocation costs provided
to the Commission pursuant to section 113(g)(4)
of such Act.
(B) Conclusion of auctions contingent on
minimum proceeds.--The Commission shall not
conclude any auction of eligible frequencies
described in section 113(g)(2) of such Act if
the total cash proceeds attributable to such
spectrum are less than 110 percent of the total
estimated relocation costs provided to the
Commission pursuant to section 113(g)(4) of
such Act. If the Commission is unable to
conclude an auction for the foregoing reason,
the Commission shall cancel the auction, return
within 45 days after the auction cancellation
date any deposits from participating bidders
held in escrow, and absolve such bidders from
any obligation to the United States to bid in
any subsequent reauction of such spectrum.
(C) Authority to issue prior to
deauthorization.--In any auction conducted
under the regulations required by subparagraph
(A), the Commission may grant a license
assigned for the use of eligible frequencies
prior to the termination of an eligible Federal
entity's authorization. However, the Commission
shall condition such license by requiring that
the licensee cannot cause harmful interference
to such Federal entity until such entity's
authorization has been terminated by the
National Telecommunications and Information
Administration.
* * * * * * *
SEC. 337. ALLOCATION AND ASSIGNMENT OF NEW PUBLIC SAFETY SERVICES
LICENSES AND COMMERCIAL LICENSES.
[47 U.S.C. 337]
(a) In general.--Not later than January 1, 1998, the
Commission shall allocate the electromagnetic spectrum between
746 megahertz and 806 megahertz, inclusive, as follows:
(1) [24] 34 megahertz of that spectrum for public
safety services according to the terms and conditions
established by the Commission, in consultation with the
Secretary of Commerce and the Attorney General; and
(2) [36] 26 megahertz of that spectrum for commercial
use to be assigned by competitive bidding pursuant to
section 309(j).
* * * * * * *
SEC. 342. SPECTRUM INVENTORY.
(a) Radio Spectrum Inventory.--Not later than 180 days after
the date of enactment of the Public Safety Spectrum and
Wireless Innovation Act, and biennially thereafter, the
Commission, in consultation with the NTIA and the Office of
Science and Technology Policy, shall carry out the following
activities:
(1) Report.--Prepare a report that includes an
inventory of each radio spectrum band, from 300 MHz to
3.5 GHz, at a minimum, managed by each such agency.
Except as provided in subsection (b), the report shall
include--
(A) the licensee or government user
authorized in the band;
(B) the total spectrum authorized for each
licensee or government user (in percentage
terms and in sum) in the band;
(C) the approximate number of transmitters,
end-user terminals, or receivers, excluding
unintended radiators, that have been deployed
or authorized, for each licensee or government
user, in the band; and
(D) if such information is available--
(i) the type of transmitters, end-
user terminals, or receivers, excluding
unintended radiators, operating in the
band and whether they are space-, air-,
or ground-based;
(ii) the type of transmitters, end-
user terminals, or receivers, excluding
unintended radiators, authorized to
operate in the band and whether they
are space-, air- or ground-based;
(iii) contour maps or other
information that illustrate the
coverage area, receiver performance,
and other parameters relevant to an
assessment of the availability of
spectrum in each band;
(iv) the approximate geolocation of
base stations or fixed transmitters;
(v) the approximate extent of use, by
geography, of each band of frequencies,
such as the amount and percentage of
time of use, number of end-users, or
other measures as appropriate to the
particular band;
(vi) the activities, capabilities,
functions, or missions supported by the
transmitters, end-user terminals, or
receivers; and
(vii) the types of unlicensed devices
authorized to operate in the band.
(2) Public access.--Create a centralized portal or
website utilizing data from the Commission and the NTIA
to make a centralized inventory of the bands of each
agency available to the public via an Internet-
accessible website.
(3) Updates.--Make all reasonable efforts to maintain
and update the information required under paragraph (2)
no less frequently than quarterly to reflect, at a
minimum, any transfer or auction of licenses or change
in allocation, assignment, or authorization.
(4) FCC to bear costs.--Notwithstanding any other
provision of law, all costs incurred by the Commission
and the NTIA in establishing and maintaining the
centralized inventory and the centralized portal or
website shall be borne exclusively by the Commission.
(5) Paperwork reduction act exemption.--Any forms
prescribed by the Commission under this section, and
any information-gathering activities of the Commission
under this section, shall not be subject to the
provisions of sections 3507 or 3512 of title 44, United
States Code (44 U.S.C. 3507, 3512).
(b) National Security; Classified Information.--
(1) In general.--If the head of a Federal agency
determines that disclosure of information required by
subsection (a) would be harmful to the national
security of the United States, the agency shall--
(A) notify the NTIA of its determination; and
(B) provide to the NTIA--
(i) the other publicly releasable
information required by subsection (a);
(ii) to the maximum extent
practicable, a summary description of
the information with respect to which
the determination was made; and
(iii) an annex containing the
information with respect to which the
determination was made.
(2) Classified information.--If the head of a Federal
agency determines that any information required by
subsection (a) is classified in accordance with
Executive Order 13526 of December 29, 2009, or any
successor Executive Order establishing or modifying the
uniform system for classifying, safeguarding, and
declassifying national security information, the agency
shall--
(A) notify the NTIA of its determination; and
(B) provide to the NTIA--
(i) the information required by
subsection (a)(1) that is not
classified;
(ii) to the maximum extent
practicable, a summary description of
the information that is classified; and
(iii) an annex containing the
information that is classified.
(3) Annex restriction.--The NTIA shall make an annex
described in paragraph (1)(B)(iii) or (2)(B)(iii)
available to the Commission. Neither the NTIA nor the
Commission may make any such annex available to the
public pursuant to subsection (a)(2) or to any
unauthorized person through any other means.
(c) Public Safety Nondisclosure.--
(1) In general.--If a licensee of non-Federal
spectrum determines that public disclosure of certain
information held by that licensee and required to be
included in the report under subsection (a) would
reveal information for which public disclosure would be
detrimental to public safety, or that the licensee is
otherwise prohibited by law from disclosing, the
licensee may petition the Commission for a partial or
total exemption from inclusion on the centralized
portal or website under subsection (a)(2) and in the
reports required under subsection (d).
(2) Burden.--A licensee seeking an exemption under
this subsection bears the burden of justifying the
exemption and shall provide clear and convincing
evidence to support the requested exemption.
(3) Information required.--If the Commission grants
an exemption under this subsection, the licensee shall
provide to the Commission--
(A) the publicly releasable information
required by subsection (a)(1) for the
inventory;
(B) to the maximum extent practicable, a
summary description, suitable for public
release, of the information for which public
disclosure would be detrimental to public
safety or that the licensee is prohibited by
law from disclosing; and
(C) an annex, under appropriate cover,
containing the information that the Commission
has determined should be withheld from public
disclosure.
(d) Informing the Congress.--
(1) In general.--Except as provided in paragraph (3),
the NTIA and the Commission shall submit each report
required by subsection (a)(1) to the appropriate
committees of Congress.
(2) Nondisclosure of annexes.--Each such report shall
be submitted in unclassified form, but may include 1 or
more annexes as provided for bysubsections
(b)(1)(B)(iii), (b)(2)(B)(iii), and (c)(3)(C). No
Congressional committee may make any such annex
available to the public or to any unauthorized person.
(3) Classified annexes.--If a report includes a
classified annex as provided for by subsection
(b)(2)(B)(iii), the NTIA and the Commission shall--
(A) submit the classified annex only to the
appropriate committees of Congress with primary
oversight jurisdiction for the user agencies or
licensees concerned; and
(B) provide notice of the submission to the
other appropriate committees of Congress.
(e) Definitions.--In this section:
(1) Appropriate committees of Congress.--The term
``appropriate committees of Congress'' means the
Committee on Commerce, Science, and Transportation of
the Senate, the Committee on Energy and Commerce of the
House of Representatives, and any other congressional
committee with primary oversight jurisdiction for the
user agencies or licensees concerned.
(2) NTIA.--The term ``NTIA'' means the National
Telecommunications and Information Administration.
NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION ORGANIZATION
ACT
SEC. 103. ESTABLISHMENT; ASSIGNED FUNCTIONS.
[47 U.S.C. 902]
(a) Establishment.--
(1) Administration.--There shall be within the
Department of Commerce an administration to be known as
the National Telecommunications and Information
Administration.
(2) Head of administration.--The head of the NTIA
shall be an Assistant Secretary of Commerce for
Communications and Information, who shall be appointed
by the President, by and with the advice and consent of
the Senate.
(b) Assigned Functions.--
(1) In general.--Subject to section 105(d), the
Secretary shall assign to the Assistant Secretary and
the NTIA responsibility for the performance of the
Secretary's communications and information functions.
(2) Communications and information functions.--
Subject to section 105(d), the functions to be assigned
by the Secretary under paragraph (1) include (but are
not limited to) the following functions transferred to
the Secretary by Reorganization Plan Number 1 of 1977
and Executive Order 12046:
(A) The authority delegated by the President
to the Secretary to assign frequencies to radio
stations or classes of radio stations belonging
to and operated by the United States, including
the authority to amend, modify, or revoke such
assignments, but not including the authority to
make final disposition of appeals from
frequency assignments.
(B) The responsibility to promote the best
possible and most efficient use of
electromagnetic spectrum resources across the
Federal Government, subject to and consistent
with the needs and missions of Federal
agencies.
[(B)] (C) The authority to authorize a
foreign government to construct and operate a
radio station at the seat of Government of the
United States, but only upon recommendation of
the Secretary of State and after consultation
with the Attorney General and the Chairman of
the Commission.
[(C)] (D) Functions relating to the
communications satellite system, including
authority vested in the President by section
201(a) of the Communications Satellite Act of
1962 (47 U.S.C. 721(a)) and delegated to the
Secretary under Executive Order 12046, to--
(i) aid in the planning and
development of the commercial
communications satellite system and the
execution of a national program for the
operation of such a system;
(ii) conduct a continuous review of
all phases of the development and
operation of such system, including the
activities of the Corporation;
(iii) coordinate, in consultation
with the Secretary of State, the
activities of governmental agencies
with responsibilities in the field of
telecommunications, so as to ensure
that there is full and effective
compliance at all times with the
policies set forth in the
Communications Satellite Act of 1962;
(iv) make recommendations to the
President and others as appropriate,
with respect to steps necessary to
ensure the availability and appropriate
utilization of the communications
satellite system for general
governmental purposes in consonance
with section 201(a)(6) of the
Communications Satellite Act of 1962
(47 U.S.C. 721(a)(6));
(v) help attain coordinated and
efficient use of the electromagnetic
spectrum and the technical
compatibility of the communications
satellite system with existing
communications facilities both in the
United States and abroad;
(vi) assist in the preparation of
Presidential action documents for
consideration by the President as may
be appropriate under section 201(a) of
the Communications Satellite Act of
1962 (47 U.S.C. 721(a)), make necessary
recommendations to the President in
connection therewith, and keep the
President informed with respect to the
carrying out of the Communications
Satellite Act of 1962; and
(vii) serve as the chief point of
liaison between the President and the
Corporation.
[(D)] (E) The authority to serve as the
President's principal adviser on
telecommunications policies pertaining to the
Nation's economic and technological advancement
and to the regulation of the telecommunications
industry.
[(E)] (F) The authority to advise the
Director of the Office of Management and Budget
on the development of policies relating to the
procurement and management of Federal
telecommunications systems.
[(F)] (G) The authority to conduct studies
and evaluations concerning telecommunications
research and development and concerning the
initiation, improvement, expansion, testing,
operation, and use of Federal
telecommunications systems and advising
agencies of the results of such studies and
evaluations.
[(G)] (H) Functions which involve--
(i) developing and setting forth, in
coordination with the Secretary of
State and other interested agencies,
plans, policies, and programs which
relate to international
telecommunications issues, conferences,
and negotiations;
(ii) coordinating economic,
technical, operational, and related
preparations for United States
participation in international
telecommunications conferences and
negotiations; and
(iii) providing advice and assistance
to the Secretary of State on
international telecommunications
policies to strengthen the position and
serve the best interests of the United
States in support of the Secretary of
State's responsibility for the conduct
of foreign affairs.
[(H)] (I) The authority to provide for the
coordination of the telecommunications
activities of the executive branch and assist
in the formulation of policies and standards
for those activities, including (but not
limited to) considerations of interoperability,
privacy, security, spectrum use, and emergency
readiness.
[(I)] (J) The authority to develop and set
forth telecommunications policies pertaining to
the Nation's economic and technological
advancement and to the regulation of the
telecommunications industry.
[(J)] (K) The responsibility to ensure that
the views of the executive branch on
telecommunications matters are effectively
presented to the Commission and, in
coordination with the Director of the Office of
Management and Budget, to the Congress.
[(K)] (L) The authority to establish policies
concerning spectrum assignments and use by
radio stations belonging to and operated by the
United States.
[(L)] (M) Functions which involve--
(i) developing, in cooperation with
the Commission, a comprehensive long-
range plan for improved management of
all electromagnetic spectrum resources;
(ii) performing analysis,
engineering, and administrative
functions, including the maintenance of
necessary files and data bases, as
necessary for the performance of
assigned functions for the management
of electromagnetic spectrum resources;
(iii) conducting research and
analysis of electromagnetic
propagation, radio systems
characteristics, and operating
techniques affecting the utilization of
the electromagnetic spectrum in
coordination with specialized, related
research and analysis performed by
other Federal agencies in their areas
of responsibility; and
(iv) conducting research and analysis
in the general field of
telecommunications sciences in support
of assigned functions and in support of
other Government agencies.
[(M)] (N) The authority to conduct studies
and make recommendations concerning the impact
of the convergence of computer and
communications technology.
[(N)] (O) The authority to coordinate Federal
telecommunications assistance to State and
local governments.
[(O)] (P) The authority to conduct and
coordinate economic and technical analyses of
telecommunications policies, activities, and
opportunities in support of assigned functions.
[(P)] (Q) The authority to contract for
studies and reports relating to any aspect of
assigned functions.
[(Q)] (R) The authority to participate, as
appropriate, in evaluating the capability of
telecommunications resources, in recommending
remedial actions, and in developing policy
options.
[(R)] (S) The authority to participate with
the National Security Council and the Director
of the Office of Science and Technology Policy
as they carry out their responsibilities under
sections 4-1, 4-2, and 4-3 of Executive Order
12046, with respect to emergency functions, the
national communication system, and
telecommunications planning functions.
[(S)] (T) The authority to establish
coordinating committees pursuant to section 10
of Executive Order 11556.
[(T)] (U) The authority to establish, as
permitted by law, such interagency committees
and working groups composed of representatives
of interested agencies and consulting with such
departments and agencies as may be necessary
for the effective performance of assigned
functions.
(3) Additional communications and information
functions.--In addition to the functions described in
paragraph (2), the Secretary under paragraph (1)--
(A) may assign to the NTIA the performance of
functions under section 504(a) of the
Communications Satellite Act of 1962 (47 U.S.C.
753(a));
(B) shall assign to the NTIA the
administration of the Public Telecommunications
Facilities Program under sections 390 through
393 of the Communications Act of 1934 (47
U.S.C. 390-393), and the National Endowment for
Children's Educational Television under section
394 of the Communications Act of 1934 (47
U.S.C. 394); and
(C) shall assign to the NTIA responsibility
for providing for the establishment, and
overseeing operation, of a second-level
Internet domain within the United States
country code domain in accordance with section
157.
SEC. 113. IDENTIFICATION OF REALLOCABLE FREQUENCIES.
[47 U.S.C. 923]
* * * * * * *
(g) Relocation of Federal Government Stations.--
[(1) Eligible federal entities.--Any Federal entity
that operates a Federal Government station assigned to
a band of frequencies specified in paragraph (2) and
that incurs relocation costs because of the
reallocation of frequencies from Federal use to non-
Federal use shall receive payment for such costs from
the Spectrum Relocation Fund, in accordance with
section 118 of this Act. For purposes of this
paragraph, Federal power agencies exempted under
subsection (c)(4) that choose to relocate from the
frequencies identified for reallocation pursuant to
subsection (a), are eligible to receive payment under
this paragraph.]
(1) Eligible federal entities.--Any Federal entity
that operates a Federal Government station authorized
to use a band of frequencies specified in paragraph (2)
and that incurs relocation costs because of planning
for a potential auction of spectrum frequencies, a
planned auction of spectrum frequencies, or the
reallocation of spectrum frequencies from Federal use
to exclusive non-Federal use, or shared Federal and
non-Federal use shall receive payment for such costs
from the Spectrum Relocation Fund, in accordance with
section 118 of this Act. For purposes of this
paragraph, Federal power agencies exempted under
subsection (c)(4) that choose to relocate from the
frequencies identified for reallocation pursuant to
subsection (a), are eligible to receive payment under
this paragraph.
(2) Eligible frequencies.--The bands of eligible
frequencies for purposes of this section are as
follows:
(A) the 216-220 megahertz band, the 1432-1435
megahertz band, the 1710-1755 megahertz band,
and the 2385-2390 megahertz band of
frequencies; and
[(B) any other band of frequencies
reallocated from Federal use to non-Federal use
after January 1, 2003, that is assigned by
competitive bidding pursuant to section 309(j)
of the Communications Act of 1934 (47 U.S.C.
309(j)), except for bands of frequencies
previously identified by the National
Telecommunications and Information
Administration in the Spectrum Reallocation
Final Report, NTIA Special Publication 95-32
(1995).]
(B) any other band of frequencies reallocated
from Federal use to non-Federal or shared use,
whether for licensed or unlicensed use, after
January 1, 2003, that is assigned--
(i) by competitive bidding pursuant
to section 309(j) of the Communications
Act of 1934 (47 U.S.C. 309(j)); or
(ii) as a result of an Act of
Congress or any other administrative or
executive direction.
[(3) Definition of relocation costs.--For purposes of
this subsection, the term "relocation costs" means the
costs incurred by a Federal entity to achieve
comparable capability of systems, regardless of whether
that capability is achieved by relocating to a new
frequency assignment or by utilizing an alternative
technology. Such costs include--
[(A) the costs of any modification or
replacement of equipment, software, facilities,
operating manuals, training costs, or
regulations that are attributable to
relocation;
[(B) the costs of all engineering, equipment,
software, site acquisition and construction
costs, as well as any legitimate and prudent
transaction expense, including outside
consultants, and reasonable additional costs
incurred by the Federal entity that are
attributable to relocation, including increased
recurring costs associated with the replacement
facilities;
[(C) the costs of engineering studies,
economic analyses, or other expenses reasonably
incurred in calculating the estimated
relocation costs that are provided to the
Commission pursuant to paragraph (4) of this
subsection;
[(D) the one-time costs of any modification
of equipment reasonably necessary to
accommodate commercial use of such frequencies
prior to the termination of the Federal
entity's primary allocation or protected
status, when the eligible frequencies as
defined in paragraph (2) of this subsection are
made available for private sector uses by
competitive bidding and a Federal entity
retains primary allocation or protected status
in those frequencies for a period of time after
the completion of the competitive bidding
process; and
[(E) the costs associated with the
accelerated replacement of systems and
equipment if such acceleration is necessary to
ensure the timely relocation of systems to a
new frequency assignment.]
(3) Definition of relocation and sharing costs.--For
purposes of this subsection, the terms ``relocation
costs'' and ``sharing costs'' mean the costs incurred
by a Federal entity to plan for a potential or planned
auction or sharing of spectrum frequencies to achieve
comparable capability of systems, regardless of whether
that capability is achieved by relocating to a new
frequency assignment, relocating a Federal Government
station to a different geographic location, modifying
Federal Government equipment to mitigate interference
or use less spectrum, in terms of bandwidth, geography,
or time, and thereby permitting spectrum sharing
(including sharing among relocated Federal entities and
incumbents to make spectrum available for non-Federal
use) or relocation, or by utilizing an alternative
technology. Comparable capability of systems includes
the acquisition of state-of-the art replacement systems
intended to meet comparable operational scope, which
may include incidental increases in functionality,
including those necessary to achieve security,
reliability, and resiliency. Such costs include--
(A) the costs of any modification or
replacement of equipment, spares, associated
ancillary equipment, software, facilities,
operating manuals, training costs, or
regulations that are attributable to relocation
or sharing;
(B) the costs of all engineering, equipment,
software, site acquisition, and construction
costs, as well as any legitimate and prudent
transaction expense, including term-limited
Federal civil servant and contractor staff
necessary to carry out the relocation
activities of an eligible Federal entity, and
reasonable additional costs incurred by the
Federal entity that are attributable to
relocation or sharing, including increased
recurring costs associated with the replacement
of facilities;
(C) the costs of research, engineering
studies, economic analyses, or other expenses
reasonably incurred in connection with--
(i) calculating the estimated
relocation costs that are provided to
the Commission pursuant to paragraph
(4) of this subsection, or in
calculating the estimated sharing
costs;
(ii) determining the technical or
operational feasibility of relocation
to 1 or more potential relocation
bands; or
(iii) planning for or managing a
relocation or sharing project
(including spectrum coordination with
auction winners) or potential
relocation or sharing project;
(D) the one-time costs of any modification of
equipment reasonably necessary to accommodate
commercial use of shared frequencies or, in the
case of frequencies reallocated to exclusive
commercial use, prior to the termination of the
Federal entity's primary allocation or
protected status, when the eligible frequencies
as defined in paragraph (2) of this subsection
are made available for private sector uses by
competitive bidding and a Federal entity
retains primary allocation or protected status
in those frequencies for a period of time after
the completion of the competitive bidding
process;
(E) the costs associated with the accelerated
replacement of systems and equipment if such
acceleration is necessary to ensure the timely
relocation of systems to a new frequency
assignment or the timely accommodation of
sharing of Federal frequencies; and
(F) the costs of the use of commercial
systems (including systems not utilizing
spectrum) to replace Federal systems
discontinued or relocated pursuant to this Act,
including lease (including lease of land),
subscription, and equipment costs over an
appropriate period, such as the anticipated
life of an equivalent Federal system or other
period determined by the Director of the Office
of Management and Budget.
(4) Notice to Commission of estimated relocation
costs.--
(A) The Commission shall notify the NTIA at
least 18 months prior to the commencement of
any auction of eligible frequencies defined in
paragraph (2). At least 6 months prior to the
commencement of any such auction, the NTIA, on
behalf of the Federal entities and after review
by the Office of Management and Budget, shall
notify the Commission of estimated relocation
costs and timelines for such relocation.
(B) Upon timely request of a Federal entity,
the NTIA shall provide such entity with
information regarding an alternative frequency
assignment or assignments to which their
radiocommunications operations could be
relocated for purposes of calculating the
estimated relocation costs and timelines to be
submitted to the Commission pursuant to
subparagraph (A).
(C) To the extent practicable and consistent
with national security considerations, the NTIA
shall provide the information required by
subparagraphs (A) and (B) by the geographic
location of the Federal entities' facilities or
systems and the frequency bands used by such
facilities or systems.
(5) Notice to congressional committees and GAO.--The
NTIA shall, at the time of providing an initial
estimate of relocation costs to the Commission under
paragraph (4)(A), submit to [the] Committees on
Appropriations and Energy and Commerce of the House of
Representatives for approval, to the Committees on
Appropriations and Commerce, Science, and
Transportation of the Senate for approval, and to the
Comptroller General a copy of such estimate and the
timelines for relocation. Unless disapproved within 30
days, the estimate shall be approved. If disapproved,
the NTIA may resubmit a revised initial estimate.
(6) Implementation of procedures.--The NTIA shall
take such actions as necessary to ensure the timely
relocation of Federal entities' spectrum-related
operations from frequencies defined in paragraph (2) to
frequencies or facilities of comparable capability.
Upon a finding by the NTIA that a Federal entity has
achieved comparable capability of systems by relocating
to a new frequency assignment or by utilizing an
alternative technology, the NTIA shall terminate the
entity's authorization and notify the Commission that
the entity's relocation has been completed. The NTIA
shall also terminate such entity's authorization if the
NTIA determines that the entity has unreasonably failed
to comply with the timeline for relocation submitted by
the Director of the Office of Management and Budget
under section 118(d)(2)(B).
(7) Spectrum sharing.--A Federal entity is permitted
to allow access to its frequency assignments by a non-
Federal entity upon approval of NTIA, in consultation
with the Director of the Office of Management and
Budget. Such non-Federal entities shall comply with all
applicable rules of the Commission and the NTIA,
including any regulations promulgated pursuant to this
section. Any remuneration associated with such access
shall be deposited into the Spectrum Relocation Fund
established under section 118. A Federal entity that
incurs costs as a result of such access is eligible for
payment from the Fund for the purposes specified in
paragraph (3) of this section. The revenue associated
with such access shall be at least 110 percent of the
estimated Federal costs.
* * * * * * *
SEC. 118. SPECTRUM RELOCATION FUND.
[47 U.S.C. 928]
(a) Establishment of Spectrum Relocation Fund.--There is
established on the books of the Treasury a separate fund to be
known as the ``Spectrum Relocation Fund'' (in this section
referred to as the ``Fund''), which shall be administered by
the Office of Management and Budget (in this section referred
to as ``OMB''), in consultation with the NTIA.
(b) Crediting of Receipts.--The Fund shall be credited with
the amounts specified in section 309(j)(8)(D) of the
Communications Act of 1934 (47 U.S.C. 309(j)(8)(D)) and any
payments made by non-Federal entities for access to Federal
spectrum pursuant to section 113(g)(7) (47 U.S.C. 113(g)(7)).
[(c) Used to Pay Relocation Costs.--The amounts in the Fund
from auctions of eligible frequencies are authorized to be used
to pay relocation costs, as defined in section 113(g)(3) of
this Act, of an eligible Federal entity incurring such costs
with respect to relocation from those frequencies.]
(c) Use of Funds.--
(1) Funds from auctions.--The amounts in the Fund
from auctions of eligible frequencies are authorized to
be used to pay relocation costs, as such costs are
defined in section 113(g)(3), of an eligible Federal
entity incurring such costs with respect to relocation
from any eligible frequency.
(2) Funds from payments by non-federal entities.--The
amounts in the Fund from payments by non-Federal
entities for access to Federal spectrum are authorized
to be used to pay the sharing costs, as such costs are
defined in section 113(g)(3), of an eligible Federal
entity incurring such costs.
(3) Transfer of funds.--
(A) In general.--Subject to subparagraph (B),
the Director of OMB may transfer at any time
(including prior to any auction or contemplated
auction, or sharing initiative) such sums as
may be available in the Fund to an eligible
Federal entity to pay eligible relocation or
sharing costs related to pre-auction estimates
or research, as such costs are described in
section 113(g)(3)(C).
(B) Notification.--No funds may be
transferred pursuant to subparagraph (A) unless
the notification provided under subsection
(d)(2)(B) of this section includes a
certification from the Director of OMB that--
(i) funds transferred before an
auction will likely allow for a timely
relocation, thereby increasing net
expected auction proceeds by an amount
equal to or greater than the time value
of the amount of funds transferred; and
(ii) the auction is intended to occur
within 5 years of transfer of funds.
(C) Applicability.--
(i) Prior costs incurred.--The
Director of OMB may transfer up to
$10,000,000 to eligible Federal
entities for eligible relocation or
sharing costs related to pre-auction
estimates or research, as such costs
are described in section 113(g)(3)(C),
for costs incurred prior to the date of
the enactment of the Public Safety
Spectrum and Wireless Innovation Act,
but after June 28th, 2010.
(ii) Supplement not supplant.--Any
amounts transferred by the Director of
OMB pursuant to clause (i) shall be in
addition to any amounts that the
Director of OMB may transfer after the
date of the enactment of the Public
Safety Spectrum and Wireless Innovation
Act.
(d) Fund Availability.--
(1) Appropriation.--There are hereby appropriated
from the Fund such sums as are required to pay the
relocation and sharing costs specified in subsection
(c).
(2) Transfer conditions.--None of the funds provided
under this subsection may be transferred to any
eligible Federal entity--
(A) unless the Director of OMB has
determined, in consultation with the NTIA, the
appropriateness of such costs and the timeline
for relocation; and
(B) until 30 days after the Director of OMB
has submitted to the Committees on
Appropriations and Energy and Commerce of the
House of Representatives for approval, to the
Committees on Appropriations and Commerce,
Science, and Transportation of the Senate for
approval, and to the Comptroller General a
detailed plan describing specifically how the
sums transferred from the Fund will be used to
pay relocation and sharing costs in accordance
with such subsection and the timeline for such
relocation and sharing.
Unless disapproved within 30 days, the amounts in the
Fund shall be available immediately. If the plan is
disapproved, the Director may resubmit a revised plan.
[(3) Reversion of unused funds.--Any auction proceeds
in the Fund that are remaining after the payment of the
relocation costs that are payable from the Fund shall
revert to and be deposited in the general fund of the
Treasury not later than 8 years after the date of the
deposit of such proceeds to the Fund.]
(3) Reversion of unused funds.--
(A) In general.--Any amounts in the Fund that
are remaining after the payment of the
relocation and sharing costs that are payable
from the Fund shall revert to and be deposited
in the General Fund of the Treasury not later
than 8 years after the date of the deposit of
such proceeds to the Fund, unless within 60
days in advance of the reversion of such funds,
the Director of OMB, in consultation with the
Assistant Secretary for Communications and
Information, notifies the appropriate
committees of Congress that such funds are
needed to complete or to implement current or
future relocations or sharing initiatives.
(B) Definition.--In this paragraph, the term
``appropriate committees of Congress'' means--
(i) the Committee on Appropriations
of the Senate;
(ii) the Committee on Commerce,
Science, and Transportation of the
Senate;
(iii) the Committee on Appropriations
of the House of Representatives; and
(iv) the Committee on Energy and
Commerce of the House of
Representatives.
(e) Transfer to Eligible Federal Entities.--
(1) Transfer.--
(A) Amounts made available pursuant to
subsection (d) shall be transferred to eligible
Federal entities, as defined in section
113(g)(1) of this Act.
(B) An eligible Federal entity may receive
more than one such transfer, but if the sum of
the subsequent transfer or transfers exceeds 10
percent of the original transfer--
(i) such subsequent transfers are
subject to prior approval by the
Director of OMB as required by
subsection (d)(2)(A);
(ii) the notice to the committees
containing the plan required by
subsection (d)(2)(B) shall be not less
than 45 days prior to the date of the
transfer that causes such excess above
10 percent; and
(iii) such notice shall include, in
addition to such plan, an explanation
of need for such subsequent transfer or
transfers.
(C) Such transferred amounts shall be
credited to the appropriations account of the
eligible Federal entity which has incurred, or
will incur, such costs, and shall, subject to
paragraph (2), remain available until expended.
(2) Retransfer to fund.--An eligible Federal entity
that has received such amounts shall report its
expenditures to OMB and shall transfer any amounts in
excess of actual relocation and sharing costs back to
the Fund immediately after the NTIA has notified the
Commission that the entity's relocation and sharing is
complete, or has determined that such entity has
unreasonably failed to complete such relocation and
sharing in accordance with the timeline required by
subsection (d)(2)(A).
(f) Additional Payments from the Fund.--Notwithstanding
subsections (c) through (e), after the date of the enactment of
the Public Safety Spectrum and Wireless Innovation Act, and
following the credit of any amounts specified in subsection
(b), there are hereby appropriated from the Fund and available
to the Director of the OMB up to 10 percent of the amounts
deposited in the Fund from the auction of licenses for
frequencies of spectrum vacated by Federal entities, or up to
10 percent of the amounts deposited in the Fund by non-Federal
entities for sharing of Federal spectrum. The Director of OMB,
in consultation with the Assistant Secretary for Communications
and Information, may use such amounts to pay eligible Federal
entities for the purpose of encouraging timely access to such
spectrum, provided that--
(1) any such payment by the Director of OMB is based
on the market value of the spectrum, the timeliness
with which the licensee cleared its use of such
spectrum, and the need for such spectrum in order for
the Federal entity to conduct its essential missions;
(2) any such payment by the Director of OMB is used
to carry out the purposes specified in subparagraphs
(A) through (F) of paragraph (3) of subsection 113(g)
to achieve enhanced capability for those systems
affected by reallocation of Federal spectrum to
commercial use, or by sharing of Federal frequencies
with non-Federal entities;
(3) the amount remaining in the Fund after any such
payment by the Director is not less than 10 percent of
the winning bids in the relevant auction, or is not
less than 10 percent of the payments from non-Federal
entities in the relevant sharing agreement; and
(4) any such payment by the Director shall not be
made until 30 days after the Director has notified the
Committees on Appropriations and Commerce, Science, and
Transportation of the Senate, and the Committees on
Appropriations and Energy and Commerce of the House of
Representatives.