[House Report 117-171]
[From the U.S. Government Publishing Office]
117th Congress } { Rept. 117-171
HOUSE OF REPRESENTATIVES
1st Session } { Part 1
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ELIMINATING BARRIERS TO RURAL INTERNET DEVELOPMENT GRANT ELIGIBILITY
ACT
_______
November 3, 2021.--Ordered to be printed
_______
Mr. DeFazio, from the Committee on Transportation and Infrastructure,
submitted the following
R E P O R T
[To accompany H.R. 3193]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 3193) to amend the Public Works and
Economic Development Act of 1965 to provide for a high-speed
broadband deployment initiative, having considered the same,
reports favorably thereon without amendment and recommends that
the bill do pass.
CONTENTS
Page
Purpose of Legislation........................................... 1
Background and Need for Legislation.............................. 2
Hearings......................................................... 2
Legislative History and Consideration............................ 3
Committee Votes.................................................. 3
Committee Oversight Findings..................................... 3
New Budget Authority and Tax Expenditures........................ 3
Congressional Budget Office Cost Estimate........................ 3
Performance Goals and Objectives................................. 4
Duplication of Federal Programs.................................. 4
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits....................................................... 4
Federal Mandates Statement....................................... 4
Preemption Clarification......................................... 4
Advisory Committee Statement..................................... 4
Applicability to Legislative Branch.............................. 4
Section-by-Section Analysis of the Legislation................... 5
Changes in Existing Law Made by the Bill, as Reported............ 5
Committee Correspondence......................................... 8
Purpose of Legislation
The purpose of H.R. 3193 is to amend the Public Works and
Economic Development Act of 1965 to provide for a high-speed
broadband deployment initiative and remove barriers to
broadband deployment for rural communities.
Background and Need for Legislation
To effectively coordinate the deployment of broadband
projects in the last mile, local communities must have the
ability to partner with public-private partnerships and
consortiums that have the expertise necessary to develop
broadband project proposals.\1\ While the Economic Development
Administration (EDA) currently has the authority to award
grants to fund broadband projects, such partnerships with
private organizations which would result in more viable
projects may render the applications ineligible to receive EDA
grants.\2\
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\1\See Written Testimony of Mr. Dennis Alvord, Acting Assistant
Secretary of Commerce for Economic Development, U.S. Economic
Development Administration before the Subcommittee on Economic
Development, Public Buildings, and Emergency Management, Committee on
Transportation and Infrastructure, April 28, 2021.
\2\See 42 U.S.C. 3122 (4) (describing EDA grant eligibility).
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The Public Works and Economic Development Act (PWEDA) was
enacted at a time when support focused on ``traditional''
infrastructure such as roads, water, and sewer.\3\ While these
remain critical for economic development in many distressed
communities, access to broadband in modern times is often
regarded as necessary and traditional infrastructure. Most
importantly, broadband improves the competitiveness of today's
distressed communities.\4\
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\3\Supra note 1.
\4\Id; see also, written testimony of Mr. Garrett Hawkins,
President, Missouri Farm Bureau before the Subcommittee on Economic
Development, Public Buildings, and Emergency Management, Committee on
Transportation and Infrastructure, April 28, 2021.
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To allow for more effective leverage of private sector
expertise in broadband project development, H.R. 3193 clarifies
that public-private partnerships and consortiums qualify as
eligible recipients for EDA grants. The bill also clarifies
that EDA funds can be combined with other federal resources and
provides flexibility on accounting for in-kind methods to meet
non-federal cost share requirements, including real or personal
property.
Hearings
For the purposes of rule XIII, clause 3(c)(6)(A) of the
117th Congress, the following hearing was used to develop or
consider H.R. 3193:
On April 28, 2021, the Subcommittee held a hearing titled
``Investing in America: Reauthorization of the Economic
Development Administration.'' The Subcommittee received
testimony from two panels consisting of the following: Panel
I--Mr. Dennis Alvord, Acting Assistant Secretary for Economic
Development, U.S. Department of Commerce; Panel II--Ms. Lisa
Cooper, Executive Director, Northern Kentucky Area Development
District, testifying on behalf of the National Association of
Development Organizations; Mr. Garrett Hawkins, President,
Missouri Farm Bureau, testifying on behalf of the American Farm
Bureau Federation; Mr. Jonas Peterson, President and Chief
Executive Officer, Las Vegas Global Economic Alliance,
testifying on behalf of the International Economic Development
Council; Hon. Lenny Eliason, Commissioner, Athens County, Ohio,
testifying on behalf of the National Association of Counties;
and Mr. Dan Carol, Director, Milken Institute for Financial
Markets, testifying on his own behalf. This hearing examined
the importance of reauthorizing the EDA, its programs and
activities supporting economic growth in distressed
communities, and the role EDA plays in recovering from
disasters, including the COVID-19 pandemic.
Legislative History and Consideration
H.R. 3193 was introduced in the House on May 13, 2021, by
Mr. Graves of Missouri and Mr. Guest and referred to the
Committee on Transportation and Infrastructure. Within the
Committee, H.R. 3193 was referred to the Subcommittee on
Economic Development, Public Buildings, and Emergency
Management.
The Subcommittee on Economic Development, Public Buildings,
and Emergency Management was discharged from further
consideration of H.R. 3193 on July 28, 2021.
The Committee considered H.R. 3193 on July 28, 2021, and
ordered the measure to be reported to the House with a
favorable recommendation, without amendment, by voice vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires each committee report to include the
total number of votes cast for and against on each record vote
on a motion to report and on any amendment offered to the
measure or matter, and the names of those members voting for
and against.
No record votes were requested during consideration of H.R.
3193.
Committee Oversight Findings
With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
New Budget Authority and Tax Expenditures
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause (3)(c)(3) of rule XIII of the Rules
of the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee has requested
but not received a cost estimate for this bill from the
Director of Congressional Budget Office. 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. The Chairman of the Committee shall cause such
estimate and statement to be printed in the Congressional
Record upon its receipt by the Committee.
Congressional Budget Office Cost Estimate
With respect to the requirement of clause 3(c)(3) of rule
XIII of the Rules of the House of Representatives, a cost
estimate provided by the Congressional Budget Office pursuant
to section 402 of the Congressional Budget Act of 1974 was not
made available to the Committee in time for the filing of this
report. The Chairman of the Committee shall cause such estimate
to be printed in the Congressional Record upon its receipt by
the Committee.
Performance Goals and Objectives
With respect to the requirement of clause 3(c)(4) of rule
XIII of the Rules of the House of Representatives, the
performance goal and objective of this legislation is to
increase broadband accessibility in rural communities.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee finds that no provision
of H.R. 3193 establishes or reauthorizes a program of the
federal government known to be duplicative of another federal
program, a program that was included in any report from the
Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139, or a program related to a
program identified in the most recent Catalog of Federal
Domestic Assistance.
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits
In compliance with clause 9 of rule XXI of the Rules of the
House of Representatives, this bill, as reported, contains no
congressional earmarks, limited tax benefits, or limited tariff
benefits as defined in clause 9(e), 9(f), or 9(g) of the rule
XXI.
Federal Mandates Statement
An estimate of federal mandates prepared by the Director of
the Congressional Budget Office pursuant to section 423 of the
Unfunded Mandates Reform Act was not made available to the
Committee in time for the filing of this report. The Chairman
of the Committee shall cause such estimate to be printed in the
Congressional Record upon its receipt by the Committee.
Preemption Clarification
Section 423 of the Congressional Budget Act of 1974
requires the report of any Committee on a bill or joint
resolution to include a statement on the extent to which the
bill or joint resolution is intended to preempt state, local,
or tribal law. The Committee finds that H.R. 3193 does not
preempt any state, local, or tribal law.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
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 (Public Law
104-1).
Section-by-Section Analysis of the Legislation
Section 1. Short title
This section provides that this bill may be cited as the
``Eliminating Barriers to Rural Internet Development Grant
Eligibility Act'' or the ``E BRIDGE Act''.
Sec. 2. High-speed broadband deployment initiative
This section defines the terms ``broadband project,''
``eligible recipient,'' and ``high-speed broadband,'' and
clarifies that the Secretary of Commerce may make grants for
broadband projects. The section requires the Secretary to
request broadband service data from the Federal Communications
Commission, National Telecommunications and Information
Administration, Department of Agriculture, and Appalachian
Regional Commission. The section also requires public-private
partnerships and consortiums to vest title to any real or
personal property acquired or improved with grant funds in a
public partner or eligible nonprofit organization. The section
also states that no person or entity shall be disqualified from
competing to provide goods or services to a broadband project
on the basis that the person or entity participated in the
development of the broadband project. The section also allows
grant recipients to grant an option to acquire real or personal
property related to their project to a third party once the
Federal interest in the property has released and allows the
Secretary to consider in-kind contributions in determining the
non-Federal share of the cost of a project.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italics and existing law in which no change is
proposed is shown in roman):
PUBLIC WORKS AND ECONOMIC DEVELOPMENT ACT OF 1965
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Public Works
and Economic Development Act of 1965''.
(b) Table of Contents.--The table of contents of this Act is
as follows:
Sec. 1. Short title; table of contents.
* * * * * * *
TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT
* * * * * * *
Sec. 219. High-speed broadband deployment initiative.
* * * * * * *
TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT
* * * * * * *
SEC. 219. HIGH-SPEED BROADBAND DEPLOYMENT INITIATIVE.
(a) Definitions.--In this section:
(1) Broadband project.--The term ``broadband
project'' means, for the purpose of providing,
extending, expanding, or improving high-speed broadband
service to further the goals of this Act--
(A) planning, technical assistance, or
training;
(B) the acquisition or development of land;
or
(C) the acquisition, design and engineering,
construction, rehabilitation, alteration,
expansion, or improvement of facilities,
including related machinery, equipment,
contractual rights, and intangible property.
(2) Eligible recipient.--
(A) In general.--The term ``eligible
recipient'' means an eligible recipient.
(B) Inclusions.--The term ``eligible
recipient'' includes--
(i) a public-private partnership; and
(ii) a consortium formed for the
purpose of providing, extending,
expanding, or improving high-speed
broadband service between 1 or more
eligible recipients and 1 or more for-
profit organizations.
(3) High-speed broadband.--The term ``high-speed
broadband'' means the provision of 2-way data
transmission with sufficient downstream and upstream
speeds to end users to permit effective participation
in the economy and to support economic growth, as
determined by the Secretary.
(b) Broadband Projects.--
(1) In general.--On the application of an eligible
recipient, the Secretary may make grants under this
title for broadband projects, which shall be subject to
the provisions of this section.
(2) Data requested.--In reviewing an application
submitted under paragraph (1), the Secretary shall
request from the Federal Communications Commission, the
Administrator of the National Telecommunications and
Information Administration, the Secretary of
Agriculture, and the Appalachian Regional Commission
data on--
(A) the level and extent of broadband service
that exists in the area proposed to be served;
and
(B) the level and extent of broadband service
that will be deployed in the area proposed to
be served pursuant to another Federal program.
(3) Interest in real or personal property.--For any
broadband project carried out by an eligible recipient
that is a public-private partnership or consortium, the
Secretary shall require that title to any real or
personal property acquired or improved with grant
funds, or if the recipient will not acquire title,
another possessory interest acceptable to the
Secretary, be vested in a public partner or eligible
nonprofit organization or association for the useful
life of the project, after which title may be
transferred to any member of the public-private
partnership or consortium in accordance with
regulations promulgated by the Secretary.
(4) Procurement.--Notwithstanding any other provision
of law, no person or entity shall be disqualified from
competing to provide goods or services related to a
broadband project on the basis that the person or
entity participated in the development of the broadband
project or in the drafting of specifications,
requirements, statements of work, or similar documents
related to the goods or services to be provided.
(5) Broadband project property.--
(A) In general.--The Secretary may permit a
recipient of a grant for a broadband project to
grant an option to acquire real or personal
property (including contractual rights and
intangible property) related to that project to
a third party on such terms as the Secretary
determines to be appropriate, subject to the
condition that the option may only be exercised
after the Secretary releases the Federal
interest in the property.
(B) Treatment.--The grant or exercise of an
option described in subparagraph (A) shall not
constitute a redistribution of grant funds
under section 217.
(c) Sources of Assistance.--A grant provided under this
section may be provided from amounts made available to carry
out this title in combination with amounts made available under
any other Federal program.
(d) Non-federal Share.--In determining the amount of the non-
Federal share of the cost of a broadband project, the Secretary
may provide credit toward the non-Federal share for the present
value of allowable contributions over the useful life of the
broadband project, subject to the condition that the Secretary
may require such assurances of the value of the rights and of
the commitment of the rights as the Secretary determines to be
appropriate.
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