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'B-CROP Act'

Gillibrand, Capito Gearing Up to Introduce Rural Broadband Legislation

Sens. Kirsten Gillibrand, D-N.Y., and Shelley Moore Capito, R-W.Va., are joining to introduce the Broadband Connections for Rural Opportunities Program Act. The legislation hasn't been announced or released but will be introduced soon, a Republican Senate staffer told us. Capito launched a Senate Broadband Caucus this summer, which Gillibrand hasn't joined. Neither senator sits on the Commerce Committee but both have eyed broadband policy.

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Similar to the way the U.S. Department of Agriculture’s (USDA) Rural Water and Environmental and Community Facilities Programs are structured with a grant/loan combination for funding projects, this legislation would allow for grants of up to 50 percent of a project’s cost, and up to 75 percent for remote, high-need areas, to be awarded in combination with the current loan funding available through USDA’s Rural Utilities Service,” said a one-page summary sheet privately circulating about the bill. “By combining grants with loans, the bill helps enhance the economic feasibility of projects serving rural and tribal areas. Highest priority would be given to projects that serve areas that are currently unserved by high-speed broadband. This legislation also increases the authorized funding for RUS’ Broadband programs to $50 million per fiscal year.” It “would provide adequate resources to private sector providers, including corporations, LLCs, cooperatives or mutual organizations, state or local government, and Indian tribes or tribal organizations to expand broadband access to unserved rural areas.”

A bill draft, also referred to as the B-CROP Act and listing Gillibrand as the senator introducing the measure, is 13 pages long, according to a copy of its text circulating. Both Gillibrand and Capito are listed on the summary sheet about the measure. Congress is expected to recess as soon as this week once lawmakers advance a continuing resolution to fund the government (see 1609200054). Current government funding expires Sept. 30.

The proposal would “amend the Rural Electrification Act of 1936 to provide grants for access to broadband telecommunications services in rural areas,” the text said. The bill text says as a condition of grants, loans and loan guarantees, recipients “shall provide to the Secretary [of Agriculture] address-level broadband buildout data that indicates the location of new broadband service that is being provided or upgraded within the service territory supported by the grant, loan, or loan guarantee” for “purposes of inclusion in the semi-annual updates to the National Broadband Map that is managed” by the FCC. During last week’s FCC oversight hearing, Chairman Tom Wheeler complained of the poor accuracy of National Broadband Map data in the past (see 1609150058).

Capito confirmed Tuesday the details of Thursday's Senate Broadband Caucus event, as expected (see 1609150060). Capito’s news release confirmed the event’s title is “Investing in Rural Broadband: A Look at Public and Private Sector Financing Opportunities” and it will be 9 a.m. Thursday in G11 Dirksen. Caucus co-chairs are expected to attend and speak, the news release said. Panelists are NTIA Associate Administrator Doug Kinkoph, FCC Wireline Bureau Deputy Chief Carol Mattey, NTCA CEO Shirley Bloomfield, Cooperative Finance Corp. Senior Vice President Robin Reed and CoBank Vice President-Government Affairs Sarah Tyree. “The event will look at public and private financing opportunities to expand rural broadband,” the release said.