[House Report 116-589]
[From the U.S. Government Publishing Office]
116th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 116-589
======================================================================
UTILIZING STRATEGIC ALLIED TELECOMMUNICATIONS ACT OF 2020
_______
November 16, 2020.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Pallone, from the Committee on Energy and Commerce, submitted the
following
R E P O R T
[To accompany H.R. 6624]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 6624) to support supply chain innovation and
multilateral security, and for other purposes, having
considered the same, reports favorably thereon without
amendment and recommends that the bill do pass.
CONTENTS
Page
I. Purpose and Summary..............................................1
II. Background and Need for the Legislation..........................2
III. Committee Hearings...............................................3
IV. Committee Consideration..........................................3
V. Committee Votes..................................................3
VI. Oversight Findings...............................................3
VII. New Budget Authority, Entitlement Authority, and Tax Expenditures4
VIII.Federal Mandates Statement.......................................4
IX. Statement of General Performance Goals and Objectives............4
X. Duplication of Federal Programs..................................4
XI. Committee Cost Estimate..........................................4
XII. Earmarks, Limited Tax Benefits, and Limited Tariff Benefits......4
XIII.Advisory Committee Statement.....................................4
XIV. Applicability to Legislative Branch..............................4
XV. Section-by-Section Analysis of the Legislation...................5
XVI. Changes in Existing Law Made by the Bill, as Reported............6
I. PURPOSE AND SUMMARY
H.R. 6624, the ``Utilizing Strategic Allied
Telecommunications Act of 2020'' or the ``USA
Telecommunications Act'', was introduced by Representatives
Frank Pallone, Jr. (D-NJ), Greg Walden (R-OR), Doris O. Matsui
(D-CA), and Brett Guthrie (R-KY). This bill establishes a grant
program to help secure communications networks in the United
States through promoting competition in the supply chains of
Open Radio Access Network (Open RAN) 5G network equipment,
accelerate deployment of Open Network Equipment, and promote
the inclusion of security features that enhance the integrity
and availability of such equipment. The National
Telecommunications and Information Administration (NTIA) is
responsible for administering the grant program, including
establishing the criteria for awarding the grants, and for
establishing a committee to advise on technological
developments to inform the grant program and government efforts
to support Open RAN 5G Networks.
II. BACKGROUND AND NEED FOR LEGISLATION
United States communications service providers rely heavily
on equipment and services manufactured and made available by
foreign companies. The increasingly globalized market for
communications equipment and services has increased competition
and opened the door to cheaper goods for consumers but poses
new challenges for the United States, particularly for ensuring
the security of the communications supply chain.
In particular, the United States identified individual
Chinese telecommunications firms, including Huawei Technologies
Co. Ltd (Huawei) and its affiliates, as posing significant
threats to U.S. commercial and security interests.\1\ Their
susceptibility to state influence over business operations
results in China having ``the means, opportunity, and motive to
use telecommunications companies for malicious purposes,'' such
as espionage and cyberattacks.\2\ In April 2018, the U.S.-China
Economic and Security Review Commission found that the Chinese
Government has ``invested significant state capital and
influence'' on state-owned enterprises to strategically place
these companies in the U.S. telecommunications supply chain.\3\
---------------------------------------------------------------------------
\1\Department of Commerce, Department of Commerce Announces the
Addition of Huawei Technologies Co. Ltd. to the Entity List (May 15,
2019) (press release).
\2\House Permanent Select Committee on Intelligence, Investigative
Report on the US National Security Issues Posed by Chinese
Telecommunications Companies Huawei and ZTE, 112th Cong. (Oct. 8,
2012).
\3\U.S.-China Economic Security Review Commission, Supply Chain
Vulnerabilities from China in US Federal Information and Communications
Technology (Apr. 2018).
---------------------------------------------------------------------------
Several countries around the world have prohibited or
severely curtailed the use of communications equipment from
Huawei and other manufacturers of suspect network equipment.\4\
To support the development of a competitive market for trusted,
secure network equipment, a growing movement has focused on
Open RAN network architecture, which relies primarily on open-
sourced standards and software to operate wireless
communications networks.\5\ Though now only in a nascent stage,
Open RAN architecture has the potential to allow a network
operator to choose network components from various vendors,
rather than relying on one vendor for its entire network,
spurring the development of a competitive marketplace for
secure equipment.\6\
---------------------------------------------------------------------------
\4\Reuters, As Britain Bans Huawei, U.S. Pressure Mounts on Europe
to Follow Suit (July 14, 2020).
\5\Financial Times, Telecoms Networks Look To Fix Huawei Problem
With Open Source Software (July 26, 2020).
\6\Id.
---------------------------------------------------------------------------
Federal investment in the promotion of this technology, as
is contemplated in H.R. 6624, will assist in the development
and acceleration of a competitive market and a secure supply
chain for communications network equipment in the United
States.
III. COMMITTEE HEARINGS
For the purposes of section 103(i) of H. Res. 6 of the
116th Congress, the following hearing was used to develop or
consider H.R. 6624:
The Subcommittee on Communications and Technology held a
hearing on September 27, 2019, entitled ``Legislating to Secure
America's Wireless Future.'' The Subcommittee received
testimony from the following witnesses:
John Nettles, President, Pine Belt Wireless
Harold Feld, Senior Vice President, Public
Knowledge
Dean R. Brenner, Senior Vice President,
Spectrum Strategy and Tech Policy, Qualcomm
Incorporated
Bobbie Stempfley, Managing Director, CERT
Division, Software Engineering Institute, Carnegie
Mellon University
IV. COMMITTEE CONSIDERATION
Representatives Pallone, Walden, Matsui, and Guthrie
introduced H.R. 6624 on March 24, 2020, and the bill was
referred to the Committee on Energy and Commerce. H.R. 6624 was
then referred to the Subcommittee on Communications and
Technology on March 25, 2020. A hearing was held prior to its
introduction on September 27, 2019.
On July 15, 2020, H.R. 6624 was discharged from further
consideration by the Subcommittee on Communications and
Technology as the bill was called up for consideration by the
full Committee on Energy and Commerce. The full Committee met
in virtual open markup session on July 15, 2020, pursuant to
notice, to consider H.R. 6624. No amendments were offered
during consideration of the bill. Upon conclusion of its
consideration, the full Committee agreed to a motion on final
passage offered by Mr. Pallone, Chairman of the committee, to
order H.R. 6624 reported favorably to the House, without
amendment, by a voice vote, a quorum being present.
V. COMMITTEE VOTES
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list each record vote
on the motion to report legislation and amendments thereto. The
Committee advises that there were no record votes taken on H.R.
6624, including the motion for final passage of the bill.
VI. OVERSIGHT FINDINGS
Pursuant to clause 3(c)(1) of rule XIII and clause 2(b)(1)
of rule X of the Rules of the House of Representatives, the
oversight findings and recommendations of the Committee are
reflected in the descriptive portion of the report.
VII. NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY,
AND TAX EXPENDITURES
Pursuant to 3(c)(2) of rule XIII of the Rules of the House
of Representatives, the Committee adopts as its own the
estimate of new budget authority, entitlement authority, or tax
expenditures or revenues contained in the cost estimate
prepared by the Director of the Congressional Budget Office
pursuant to section 402 of the Congressional Budget Act of
1974.
The Committee has requested but not received from the
Director of the Congressional Budget Office a statement as to
whether this bill contains any new budget authority, spending
authority, credit authority, or an increase or decrease in
revenues or tax expenditures.
VIII. FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
IX. STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES
Pursuant to clause 3(c)(4) of rule XIII, the general
performance goal or objective of this legislation is to provide
Federal funds to encourage competitiveness in the
communications equipment supply chain for Open RAN network
equipment and promote the development and use of secure,
standards-based, and interoperable Open RAN network equipment.
X. DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII, no provision of
H.R. 6624 is known to be duplicative of another Federal
program, including any program that was included in a report to
Congress pursuant to section 21 of Public Law 111-139 or the
most recent Catalog of Federal Domestic Assistance.
XI. COMMITTEE COST ESTIMATE
Pursuant to clause 3(d)(1) of rule XIII, the Committee
adopts as its own the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974.
XII. EARMARKS, LIMITED TAX BENEFITS, AND LIMITED
TARIFF BENEFITS
Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the
Committee finds that H.R. 6624 contains no earmarks, limited
tax benefits, or limited tariff benefits.
XIII. ADVISORY COMMITTEE STATEMENT
One advisory committee within the meaning of section 5(b)
of the Federal Advisory Committee Act was created by this
legislation.
XIV. APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
XV. SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION
Section 1. Short title
Section 1 designates that the short title may be cited as
the ``Utilizing Strategic Allied Telecommunications Act of
2020'' or the ``USA Telecommunications Act''.
Sec. 2. Wireless Supply Chain Innovation Grant Program
Section 2 establishes the Wireless Supply Chain Innovation
Grant Program (Program) and authorizes an appropriation of
$750,000,000 in fiscal years 2021 through 2031 for such
purpose. The section provides the Assistant Secretary of
Commerce for Communications and Information (Assistant
Secretary) with authority to administer the Program, and
requires the Assistant Secretary to, within 18 months, begin
making grants on a competitive basis to support the development
and deployment of Open RAN 5G networks throughout the United
States by: (1) promoting the use of technology, including
software, hardware, and microprocessing technology, that will
enhance the competitiveness in the supply chains of Open RAN 5G
networks; (2) accelerating the deployment of Open Network
Equipment; (3) promoting the use of Open Network Equipment; (4)
establishing objective criteria that can be used to determine
if equipment meets the definition of Open Network Equipment;
(5) promoting the inclusion of security features that enhance
the integrity and availability of Open Network Equipment; or
(6) promoting the application of network function
virtualization to facilitate the deployment of Open RAN 5G
networks and a more diverse vendor market. The Assistant
Secretary, in consultation with the Federal Communications
Commission (Commission), the Director of the National Institute
of Standards and Technology (NIST), the Secretary of Homeland
Security, the Director of the Defense Advanced Research
Projects Agency (DARPA), and the Director of the Intelligence
Advanced Research Projects Activity of the Office of the
Director of National Intelligence (IARPA), is required to
establish the criteria for the Program.
Section 2 also requires that the Assistant Secretary submit
two reports to Congress, an annual report on the grants made
under the Program and a report within 180 days of enactment
that includes recommendations on promoting the competitiveness
and sustainability of trusted Open RAN 5G networks, and
identifying any additional authorities needed by the Assistant
Secretary to facilitate the timely adoption of Open Network
Equipment.
Sec. 3. Advisory Committee
Section 3 requires the Assistant Secretary to establish an
Advisory Committee to help inform the direction of the Program
and the efforts of the Federal Government to promote a more
secure, diverse, sustainable, and competitive supply chain for
Open RAN 5G Networks. The Advisory Committee shall be comprised
of representatives from the Commission, DARPA, IARPA, NIST, the
Department of State, the National Science Foundation, and the
Department of Homeland Security.
Sec. 4. Definitions
Section 4 provides definitions for certain terms used in
the Act, such as Open Network Equipment and Open RAN 5G
Network.
XVI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
There are no changes to existing law made by the bill H.R.
6624.