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Bill by Rep. Boswell (D-Ia.) would authorize $3 billion in loans ...

Bill by Rep. Boswell (D-Ia.) would authorize $3 billion in loans and credits for broadband deployment projects in rural areas and on Indian reservations. Legislation (HR-2847), introduced Sept. 6 and co-sponsored by Rep. Osborne (R-Neb.), would authorized funds for…

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FY 2001-2005 or until expended. Loan program would be administered by Rural Utilities Service (RUS). Bill would provide up to $100 million in annual grants for rural Internet, telecom and computer technology projects. RUS would make grants available to educational institutions and state agencies, nonprofit entities or consortium of at least 2 of such organizations. Legislation would amend Sec. 254 of Communications Act by inserting language referring specifically to use of Universal Service funds for rural broadband support. FCC would be required under bill “to initiate a proceeding to provide federal universal service support for the deployment of broadband service to eligible rural communities.” Support provided as result of that proceeding would be determined without cost averaging, and could be used to deploy: (1) Loop treatments and DSL access multiplexers. (2) Cable modems. (3) Wireless technology. (4) Satellite technology. Boswell said bill also would create Office of Rural Technology within Dept. of Agriculture to “coordinate rural technology programs and serve as clearinghouse for [govt.] and private high-tech grant information.” HR-2847 would establish RUS-administered National Centers for Distance Working, which would provide $11 million in grants to develop and promote rural teleworking in communications and information technology sectors. It also would provide tax credits for rural or Indian reservation: (1) Broadband facility or enhanced broadband facility investments. (2) Expansion and relocation of high-tech businesses. (3) High- tech education or training.