House Subcommittee Approves GOP Spectrum Bill Despite Democratic Opposition

The Commerce Committee plans to vote next week on the spectrum bill, House Communications Subcommittee Chairman Greg Walden, R-Ore., told reporters. The committee plans to vote on FCC process reform bills (CD Dec 1 p11) at the same markup, he said. Walden talked to Democrats immediately after the markup to hash out next steps. Walden said it was a “good discussion” and talks between parties would continue. “There are some things … that we just may not get agreement on,” but it’s important to move the bill even without consensus on every detail, he said.

During the markup, the GOP stopped Democrats from deleting the entire GOP draft. Subcommittee Ranking Member Anna Eshoo, D-Calif., offered an amendment to substitute Democrats’ own spectrum bill, introduced Tuesday as HR-3509. The GOP defeated the amendment in a 16-8 vote. While Democrats supported incentive auctions and D-block reallocation, they disagreed strongly with Republican proposals for unlicensed spectrum, funding and governance of the public safety network, restrictions on FCC authority to condition auctions and how much money should be dedicated to recouping broadcasters for relocation costs.

The subcommittee approved by voice vote an amendment by Reps. John Dingell, D-Mich., and Brian Bilbray, R-Calif., requiring policymakers to coordinate with Canada and Mexico to prevent interference on international borders when the FCC repacks broadcaster spectrum. The subcommittee also approved by voice an amendment by Eshoo and Rep. John Shimkus, R-Ill., to attach their next-generation 911 bill (HR-2629), providing grants to upgrade 911 systems.

Splitting by party, the subcommittee approved a net neutrality amendment by Rep. Marsha Blackburn, R-Tenn. It bars the FCC from imposing auction conditions that limit a licensee’s ability to manage its network or requires a licensee to sell access to its network on a wholesale basis. The amendment is license-specific, so it doesn’t change the FCC’s net neutrality order, Walden said. Democrats didn’t ask for a roll-call vote, but objected strongly. Commerce Committee Ranking Member Henry Waxman, D-Calif., said the amendment weakens the net neutrality order because it removes a method the commission can use to implement its rules. “You can add this in here if you want,” but it won’t last in the Senate and could bring the whole bill down, Waxman added. “Now is not the time to move us further apart."

The subcommittee unanimously approved an amendment by Rep. Mike Rogers, R-Mich., that would bar participation in a spectrum auction by someone “who has been, for reasons of national security, barred by any agency of the Federal Government from bidding on a contract, participating in an auction, or receiving a grant.” The subcommittee also agreed by voice to a manager’s amendment by Walden making technical changes to the bill.

Democrats had sought more time to negotiate before going forward with a markup (CD Dec 1 p2). Democrats saw the GOP draft for the first time Tuesday, Eshoo complained. Rep. Joe Barton, R-Texas, said he sympathized with the other party. “We're marking up a bill that we really haven’t seen,” he said. But Barton also said he understood Walden’s desire to move the process forward.

Democrats questioned why broadcasters would get up to $3 billion to cover relocation costs during the repacking process that would follow incentive auctions. Democrats want to give only $1 billion, the same as the Congressional Budget Office’s estimate for broadcaster relocation costs, Waxman said. Walden said the $3 billion figure is a cap and that the actual amount given to broadcasters would be held to a standard of reasonableness. But Waxman said a cap in legislation is “more often than not” treated like a floor.

More funding should go to public safety, Democrats said. Walden’s bill gives $6.5 billion for the network, while the Democrats’ gives $11 billion. “I know public safety wants more,” Walden said. “They want D-block, they want $10 billion [and] they don’t want to give back any spectrum.” With the country in debt, Congress has to make tough decisions about spending, and it’s difficult to carve out even $6.5 billion, Walden said. He pointed out that he’s conceded the D-block as long as public safety gives back narrowband spectrum. “What I don’t see coming back is any support,” he said.

Eshoo disagreed with Republicans’ proposal to disallow spectrum from incentive auctions to be given away for unlicensed use. “Closing spectrum bands to future innovation is foolhardy,” she said. Walden said it doesn’t make sense to give away the spectrum, since the government has to foot broadcasters’ relocations bills to get it.

Democrats also fought hard against the GOP’s governance plan that would let a private company act as administrator of the public safety network. “If the governance model is not right, it ain’t going to work,” Eshoo said. The GOP proposal is “cumbersome, bureaucratic and will lead to a patchwork” network across the 50 states, Waxman said. Rep. Doris Matsui, D-Calif., called the GOP proposal “unsound policy” that will result in a poor network for public safety. Walden defended his plan, saying the private administrator won’t set any policy. The proposal takes into account “lessons learned” from the 800 MHz rebanding experience, he added.

Matsui criticized the bill for requiring public safety to give back 700 MHz narrowband spectrum used by public safety. Among her concerns is that the draft would discourage public safety from deploying in narrowband spectrum, adding to first-responder capacity constraints, she said. State and local governments have already invested significantly in narrowband, she added. Rep. Ed Markey, D-Mass., objected to proposed new limits on the FCC’s ability to shape auctions through conditions. But Walden said the bill would not take away the agency’s ability to exercise the public interest standard on a market-by-market basis after auctions.

Walden had originally supported a commercial auction of the D-block, but changed his position in the draft bill released earlier this week. “We struck a balance that gave the D-block to public safety but also in return brought back spectrum” used for narrowband, he told reporters. Walden drafted but didn’t offer an amendment for Thursday’s markup that would have cut the public safety network section out completely. Vice Chairman Lee Terry, R-Neb., drafted but didn’t offer a separate amendment that would keep everything in the public safety section except for D-block reallocation. “If the markup had gotten all spun up over the governance,” Walden said, “much higher than it did, then my suggestion would have been we take all the public safety piece off the table, while we continue the discussions of what should be in there for public safety."

NAB and CTIA applauded approval of spectrum legislation. “This bill balances sound spectrum policy with protections against the potential considerable loss of local TV service by millions of Americans,” said NAB. It also praised the Dingell-Bilbray amendment about international borders. CTIA said it looks “forward to seeing this important legislation considered by the full Energy and Commerce Committee as soon as possible.”