Farm Bill Prompting Changes in Rural Broadband Policies
Congress is beginning work on the 5-year rewrite of the farm bill, a process that already has lawmakers drafting their own measures to fix the long-troubled rural broadband loan program. Mon., Sen. Roberts (R-Kan.) introduced S-1439 with co-sponsor Sen. Salazar (D-Colo.); the bill would create incentives for investment and simplify the loan process in rural areas. The bill also would redefine “rural,” helping to target so geographically small regions of the country that aren’t getting broadband services, according to a statement.
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Both senators serve on the Agriculture Committee, but the bill could be assigned to that committee or Commerce, said a committee spokeswoman. Either way, its ideas likely will draw support and perhaps a hearing, Hill sources said. USTelecom Pres. Walter McCormick gave the bill a strong push, saying its “proposed reforms are long overdue and we welcome them.” In the program’s history, McCormick said, only one loan was made to an unserved area. Verizon backs the bill’s effort to return the RUS program to its original purpose, and looks forward to working with Senate and House agriculture committee leaders on the measure, according to a spokesman.
The Rural Utilities Services program drew fire in a 2005 USDA audit for not defining “rural area” distinctly enough to separate suburban from rural communities, and for issuing more loans to densely populated areas. S-1439 would change that by redefining an eligible rural area: a city or town home to fewer than 20,000. The bill further clarifies that “urbanized areas contiguous and adjacent to a city or town” and areas “determined by the Secretary to be predominantly urban in character” wouldn’t meet the definition for rural area.
The bill would tighten up the loan application process and require speedier responses to applicants. To encourage deployment to unserved areas, the bill proposes using a public-private partnership to develop a map listing broadband availability -- an idea aired in draft legislation in the House Commerce Telecom Subcommittee (CD May 18 p1).
Other members from rural states wanted a new rural definition as well. Rep. Herseth (D-S.D.) introduced a bill (HR-2035) in April devoted solely to the subject. It proposes a new definition of “eligible rural community,” a boundary not within the boundaries of a city or town of fewer than 15,000 or within 10 miles of an “urban cluster.” HR- 2035 also would clarify that “unserved” means that broadband service is unavailable and construction of facilities to provide the service isn’t underway.
No measures clearly lead among the half-dozen or more bills targeted at broadband deployment introduced so far this Congress. Some sponsored by major names carry big pricetags and likely won’t move: Sen. Clinton’s (D-N.Y.) bill would cost $20 million over 5 years to implement a thorough national broadband policy including creation of a public fund to help launch technology businesses. Clinton’s bill has no co-sponsors, however, while presidential rival Sen. Obama (D- Ill.) has signed on as a co-sponsor to a competing bill (S- 1190) by Sen. Durbin (D-Ill.) that would spend $40 million over 5 years to increase broadband deployment. Durbin’s bill has 7 co-sponsors.
Senate Commerce Committee Chmn. Inouye (D-Hawaii) promised a broadband bill a month ago and aides are working on a draft. Meanwhile, Vice Chmn. Stevens includes broadband in his omnibus measure (S-101) that he introduced at the beginning of Congress. HR-1818, offered by Rep. Matsui (D- Cal.) would increase broadband deployment by using tax breaks -- a measure industry supports, not surprisingly.