7 U.S.C. § 950bb — Untitled legal text

Page 553 TITLE 7—AGRICULTURE § 950bb Stat. 4029; amended Pub. L. 102–237, title VII, § 703(c), Dec. 13, 1991, 105 Stat. 1881; Pub. L. 103–354, title II, § 235(a)(12), (13), Oct. 13, 1994, 108 Stat. 3221; Pub. L. 104–127, title VII, § 781(b), Apr. 4, 1996, 110 Stat. 1151.) Editorial Notes AMENDMENTS 1996—Par. (7). Pub. L. 104–127 struck out par. (7) which read as follows: ‘‘administer a Rural Business Incu- bator Fund (as established under section 950aa–1 of this title) that shall provide technical assistance, advice, loans, or capital to business incubator programs or for the creation or operation of small business incubators in rural areas.’’ 1994—Pub. L. 103–354 struck out ‘‘of REA Adminis- trator’’ at end of section catchline and substituted ‘‘Secretary’’ for ‘‘Administrator’’ in introductory pro- visions and par. (3). 1991—Pars. (6) to (8). Pub. L. 102–237 inserted ‘‘and’’ at end of par. (6), redesignated par. (8) as (7), and struck out former par. (7) which read as follows: ‘‘review the advice and recommendations of the Rural Educational Opportunities Board as established under section 601(f); and’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1991 AMENDMENT Amendment by Pub. L. 102–237 effective as if included in the provision of the Food, Agriculture, Conservation, and Trade Act of 1990, Pub. L. 101–624, to which the amendment relates, see section 1101(b)(8) of Pub. L. 102–237, set out as a note under section 1421 of this title. § 950aa–1. Repealed. Pub. L. 104–127, title VII, § 781(a), Apr. 4, 1996, 110 Stat. 1151 Section, act May 20, 1936, ch. 432, title V, § 502, as added Nov. 28, 1990, Pub. L. 101–624, title XXIII, § 2345, 104 Stat. 4030; amended Dec. 13, 1991, Pub. L. 102–237, title VII, § 703(d), 105 Stat. 1881; Oct. 13, 1994, Pub. L. 103–354, title II, § 235(a)(13), 108 Stat. 3221, provided for establishment of Rural Business Incubator Fund. SUBCHAPTER VI—RURAL BROADBAND ACCESS § 950bb. Access to broadband telecommuni- cations services in rural areas (a) Purpose The purpose of this section is to provide grants, provide loans, and provide loan guaran- tees to provide funds for the costs of the con- struction, improvement, and acquisition of fa- cilities and equipment for broadband service in rural areas. (b) Definitions In this section: (1) Broadband service The term ‘‘broadband service’’ means any technology identified by the Secretary as hav- ing the capacity to transmit data to enable a subscriber to the service to originate and re- ceive high-quality voice, data, graphics, and video. (2) Incumbent service provider The term ‘‘incumbent service provider’’, with respect to an application submitted under this section, means an entity that, as of the date of submission of the application, is providing broadband service to not less than 5 percent of the households in the service terri- tory proposed in the application. (3) Rural area (A) In general The term ‘‘rural area’’ means any area other than— (i) an area described in clause (i) or (ii) of section 1991(a)(13)(A) of this title; and (ii) in the case of a grant or direct loan, a city, town, or incorporated area that has a population of greater than 20,000 inhab- itants. (B) Urban area growth The Secretary may, by regulation only, consider an area described in section 1991(a)(13)(F)(i)(I) of this title to not be a rural area for purposes of this section. (C) Exclusion of certain populations Such term does not include any population described in subparagraph (H) or (I) of sec- tion 1991(a)(13) of this title. (c) Grants, loans, and loan guarantees (1) In general The Secretary shall make grants, shall make loans, and shall guarantee loans to eligi- ble entities described in subsection (d) to pro- vide funds for the construction, improvement, or acquisition of facilities and equipment for the provision of broadband service in rural areas. (2) Priority (A) In general In making grants, making loans, and guar- anteeing loans under paragraph (1), the Sec- retary shall— (i) give the highest priority to applica- tions for projects to provide broadband service to unserved rural communities that do not have any residential broadband service of at least— (I) a 10-Mbps downstream transmission capacity; and (II) a 1-Mbps upstream transmission capacity; (ii) give priority to applications for projects to provide the maximum level of broadband service to the greatest propor- tion of rural households in the proposed service area identified in the application; (iii) provide equal consideration to all el- igible entities, including those that have not previously received grants, loans, or loan guarantees under paragraph (1); and (iv) with respect to 2 or more applica- tions that are given the same priority under clause (i), give priority to an appli- cation that requests less grant funding than loan funding. (B) Other After giving priority to the applications described in clauses (i) and (ii) of subpara- graph (A), the Secretary shall then give pri- ority to applications— (i) for projects to provide broadband service to rural communities— Page 554 TITLE 7—AGRICULTURE § 950bb (I) with a population of less than 10,000 permanent residents; (II) that are experiencing outmigration and have adopted a strategic community investment plan under section 2008v(d) of this title that includes considerations for improving and expanding broadband service; (III) with a high percentage of low in- come families or persons (as defined in section 1471(b) of title 42); (IV) that are isolated from other sig- nificant population centers; or (V) that provide rapid and expanded deployment of fixed and mobile broadband on cropland and ranchland within a service territory for use in var- ious applications of precision agri- culture; and (ii) that were developed with the partici- pation of, and will receive a substantial portion of the funding for the project from, 2 or more stakeholders, including— (I) State, local, and tribal govern- ments; (II) nonprofit institutions; (III) community anchor institutions, such as— (aa) public libraries; (bb) elementary schools and sec- ondary schools (as defined in section 7801 of title 20); (cc) institutions of higher education; and (dd) health care facilities; (IV) private entities; (V) philanthropic organizations; and (VI) cooperatives. (3) Grant amounts (A) Definition of development costs In this paragraph, the term ‘‘development costs’’ means costs of— (i) construction, including labor and ma- terials; (ii) project applications; and (iii) other development activities, as de- termined by the Secretary. (B) Eligibility To be eligible for a grant under this sec- tion, in addition to the requirements of sub- section (d), the project that is the subject of the grant shall— (i) be carried out in a proposed service territory in which not less than 90 percent of the households are unserved; and (ii) not concurrently receive any other broadband grant administered by the Rural Utilities Service. (C) Maximum Except as provided in subparagraph (D), the amount of any grant made under this section shall not exceed— (i) 75 percent of the total project cost with respect to an area with a density of fewer than 7 people per square mile; (ii) 50 percent of the total project cost with respect to an area with a density of 7 or more and fewer than 12 people per square mile; and (iii) 25 percent of the total project cost with respect to an area with a density of 12 or more and 20 or fewer people per square mile. (D) Secretarial authority to adjust The Secretary may— (i) make grants of up to 75 percent of the development costs of the project for which the grant is provided to an eligible entity if the Secretary determines that the project serves— (I) an area of rural households de- scribed in paragraph (2)(A)(i); or (II) a rural community described in any of subclauses (I) through (IV) of paragraph (2)(B)(i); and (ii) make modifications of the density thresholds described in subparagraph (C), in order to ensure that funds provided under this section are best utilized to pro- vide broadband service in communities that are the most rural in character. (E) Applications The Secretary shall establish an applica- tion process for grants under this section that— (i) permits a single application for a grant and a loan under subchapter I, II, or this subchapter that is associated with such grant; and (ii) provides a single decision to award such grant and such loan. (F) Density determinations When determining population density under this section, the Secretary shall pre- scribe a calculation method which— (i) utilizes publicly available data; and (ii) includes only those areas in which the applicant is able to meet the service requirements under this section, as deter- mined by the Secretary. (4) Fees In the case of loan guarantees issued or modified under this section, the Secretary shall charge and collect from the lender fees in such amounts as to bring down the costs of subsidies for guaranteed loans, except that such fees shall not act as a bar to participa- tion in the programs nor be inconsistent with current practices in the marketplace. (d) Eligibility (1) Eligible entities (A) In general To be eligible to obtain a grant, loan, or loan guarantee under this section, an entity shall— (i) demonstrate the ability to furnish or improve service in order to meet the broadband buildout requirements estab- lished under subsection (e)(4) in all or part of an unserved or underserved rural area; (ii) submit to the Secretary an applica- tion at such time, in such manner, and containing such information as the Sec- retary may require; and (iii) agree to complete buildout of the broadband infrastructure described in the Page 555 TITLE 7—AGRICULTURE § 950bb application by not later than 5 years after the initial date on which assistance under this section is made available. (B) Limitation An eligible entity that provides tele- communications or broadband service to at least 20 percent of the households in the United States may not receive an amount of funds under this section for a fiscal year in excess of 15 percent of the funds authorized and appropriated under subsection (j) for the fiscal year. (2) Eligible projects (A) In general Except as provided in subparagraphs (B) and (C), assistance under this section may be used to carry out a project in a proposed service territory only if, as of the date on which the application of the eligible entity is submitted— (i) not less than 50 percent (in the case of loans or loan guarantees provided in ac- cordance with subsection (g)(1)(A)) of the households in the proposed service terri- tory are unserved or have service levels below the minimum acceptable level of fixed broadband service, whether terres- trial or wireless, established under sub- section (e); and (ii) broadband service is not provided in any part of the proposed service territory by 3 or more incumbent service providers. (B) Exception to percent requirement Subparagraph (A)(i) shall not apply to the proposed service territory of a project if a loan or loan guarantee has been made under this section to the applicant to provide broadband service in the proposed service territory. (C) Exception to incumbent service provider requirement (i) In general Except as provided in clause (ii), sub- paragraph (A)(ii) shall not apply to an in- cumbent service provider in the portion of a proposed service territory in which the provider is upgrading broadband service to meet the minimum acceptable level of broadband service established under sub- section (e) for the existing territory of the incumbent service provider. (ii) Exception Clause (i) shall not apply if the applicant is eligible for funding under another sub- chapter of this chapter. (3) Equity and market survey requirements (A) In general The Secretary may require an entity to provide a cost share in an amount not to ex- ceed 10 percent of the amount of the grant, loan, or loan guarantee requested in the ap- plication of the entity, unless the Secretary determines that a higher percentage is re- quired for financial feasibility. (B) Market survey (i) In general The Secretary may require an entity that proposes to have a subscriber projec- tion of more than 20 percent of the broadband service market in a rural area to submit to the Secretary a market sur- vey. (ii) Less than 20 percent The Secretary may not require an entity that proposes to have a subscriber projec- tion of less than 20 percent of the broadband service market in a rural area to submit to the Secretary a market sur- vey. (iii) Information Information submitted under this sub- paragraph shall be— (I) certified by the affected commu- nity, city, county, or designee; or (II) demonstrated on— (aa) the broadband map of the af- fected State if the map contains ad- dress-level data; or (bb) the National Broadband Map if address-level data is unavailable. (4) State and local governments and Indian tribes Subject to paragraph (1), a State or local government (including any agency, subdivi- sion, or instrumentality thereof (including consortia thereof)) and an Indian tribe shall be eligible for assistance under this section to provide broadband services to a rural area. (5) Technical assistance and training (A) In general The Secretary may provide to eligible en- tities described in paragraph (1) that are ap- plying for assistance under this section for a project described in subsection (c)(2)(A)(i) technical assistance and training— (i) to prepare reports and surveys nec- essary to request grants, loans, and loan guarantees under this section for broadband deployment; (ii) to improve management, including financial management, relating to the pro- posed broadband deployment; (iii) to prepare applications for grants, loans, and loan guarantees under this sec- tion; or (iv) to assist with other areas of need identified by the Secretary. (B) Funding Not less than 3 percent and not more than 5 percent of amounts appropriated to carry out this section for a fiscal year shall be used for technical assistance and training under this paragraph. (e) Broadband service (1) In general Subject to paragraph (2), for purposes of this section, the minimum acceptable level of broadband service for a rural area shall be at least— (A) a 25-Mbps downstream transmission capacity; and (B) a 3-Mbps upstream transmission capac- ity. (2) Adjustments At least once every 2 years, the Secretary shall review, and may adjust through notice Page 556 TITLE 7—AGRICULTURE § 950bb 1 So in original. Probably should be followed by ‘‘and’’. published in the Federal Register, the min- imum acceptable level of broadband service es- tablished under paragraph (1) and broadband buildout requirements under paragraph (4) to ensure that high quality, cost-effective broadband service is provided to rural areas over time. (3) Prohibition The Secretary shall not establish require- ments for bandwidth or speed that have the ef- fect of precluding the use of evolving tech- nologies appropriate for rural areas. (4) Broadband buildout requirements (A) In general The term ‘‘broadband buildout require- ment’’ means the level of internet service an applicant receiving assistance under this section must agree, at the time the applica- tion is finalized, to provide for the duration of any project-related agreement between the applicant and the Department. (B) Broadband buildout requirements fur- ther defined Subject to subparagraph (C), the Secretary shall establish broadband buildout require- ments for projects with agreement lengths of— (i) 5 to 10 years; (ii) 11 to 15 years; (iii) 16 to 20 years; and (iv) more than 20 years. (C) Requirements In establishing the broadband buildout re- quirements under subparagraph (B), the Sec- retary shall— (i) utilize the same metrics used to de- fine the minimum acceptable level of broadband service under paragraph (1); 1 (ii) establish such requirements to rea- sonably ensure— (I) the repayment of all loans and loan guarantees; and (II) the financed network is technically capable of providing broadband service for the lifetime of any project-related agreement. (D) Substitute service standards for unique service territories If an applicant shows that it would be cost prohibitive to meet the broadband buildout requirements established under this para- graph for the entirety of a proposed service territory due to the unique characteristics of the proposed service territory, the Sec- retary and the applicant may agree to uti- lize substitute standards for any unserved portion of the project. Any substitute serv- ice standards should continue to consider the best technology available to meet the needs of the residents in the unserved area. (f) Technological neutrality For purposes of determining whether to pro- vide assistance for a project under this section, the Secretary shall use criteria that are techno- logically neutral. (g) Terms and conditions for loans and loan guarantees (1) In general Notwithstanding any other provision of law, a loan or loan guarantee under this section shall— (A) bear interest at an annual rate of, as determined by the Secretary— (i) in the case of a direct loan, a rate equivalent to— (I) the cost of borrowing to the Depart- ment of the Treasury for obligations of comparable maturity; or (II) 4 percent; and (ii) in the case of a guaranteed loan, the current applicable market rate for a loan of comparable maturity; and (B) have a term of such length, not exceed- ing 35 years, as the borrower may request, if the Secretary determines that the loan is adequately secured. (2) Recurring revenue The Secretary shall consider the existing re- curring revenues of the entity at the time of application in determining an adequate level of credit support. (h) Adequacy of security (1) In general The Secretary shall ensure that the type and amount of, and method of security used to se- cure, any loan or loan guarantee under this section is commensurate to the risk involved with the loan or loan guarantee, particularly in any case in which the loan or loan guar- antee is issued to a financially strong and sta- ble entity, as determined by the Secretary. (2) Determination of amount and method of se- curity In determining the amount of, and method of security used to secure, a loan or loan guar- antee under this section, the Secretary shall consider reducing the security in a rural area that does not have broadband service. (i) Payment assistance for certain loan and grant recipients (1) Use of grant funds The Secretary may use the funds appro- priated for a grant under this subchapter for the cost (as defined by section 661a of title 2) of providing assistance under paragraph (2). (2) Payment assistance When providing a grant under this sub- chapter, the Secretary, at the sole discretion of the Secretary, may make— (A) a subsidized loan, which shall bear a reduced interest rate at such a rate as the Secretary determines appropriate to meet the objectives of the program; or (B) a payment assistance loan, which shall— (i) require no interest and principal pay- ments while the borrower is— (I) in material compliance with the loan agreement; and (II) meeting the milestones and objec- tives of the project agreed to under para- graph (3); and Page 557 TITLE 7—AGRICULTURE § 950bb (ii) require such nominal periodic pay- ments as the Secretary determines to be appropriate. (3) Agreement on milestones and objectives With respect to payment assistance provided under paragraph (2), before entering into the agreement under which the payment assist- ance will be provided, the applicant and the Secretary shall agree to milestones and objec- tives of the project. (4) Amendment of milestones and objectives The Secretary and the applicant may jointly agree to amend the milestones and objectives agreed to under paragraph (3). (5) Considerations When deciding to utilize the payment assist- ance authority under paragraph (2) the Sec- retary shall consider whether or not the pay- ment assistance will— (A) improve the compliance of the grantee with any commitments made through the grant agreement; (B) promote the completion of the broadband project; (C) protect taxpayer resources; and (D) support the integrity of the broadband programs administered by the Secretary. (6) Limitations on payment assistance The Secretary may not make a payment as- sistance loan under paragraph (2)(B) to an en- tity receiving a grant under this section that is also the recipient of a loan under sub- chapter I or II that is associated with such grant. (j) Funding (1) Authorization of appropriations There is authorized to be appropriated to the Secretary to carry out this section $350,000,000 for each of fiscal years 2019 through 2023, to re- main available until expended. (2) Allocation of funds (A) In general From amounts made available for each fis- cal year under this subsection, the Secretary shall— (i) establish a national reserve for loans and loan guarantees to eligible entities in States under this section; and (ii) allocate amounts in the reserve to each State for each fiscal year for loans and loan guarantees to eligible entities in the State. (B) Amount The amount of an allocation made to a State for a fiscal year under subparagraph (A) shall bear the same ratio to the amount of allocations made for all States for the fis- cal year as— (i) the number of communities with a population of 2,500 inhabitants or less in the State; bears to (ii) the number of communities with a population of 2,500 inhabitants or less in all States. (C) Unobligated amounts Any amounts in the reserve established for a State for a fiscal year under subparagraph (B) that are not obligated by April 1 of the fiscal year shall be available to the Sec- retary to make loans and loan guarantees under this section to eligible entities in any State, as determined by the Secretary. (k) Termination of authority No grant, or loan, or loan guarantee may be made under this section after September 30, 2023. (May 20, 1936, ch. 432, title VI, § 601, as added Pub. L. 107–171, title VI, § 6103(a), May 13, 2002, 116 Stat. 415; amended Pub. L. 108–199, div. A, title VII, § 772, Jan. 23, 2004, 118 Stat. 40; Pub. L. 110–234, title VI, § 6110(a), May 22, 2008, 122 Stat. 1199; Pub. L. 110–246, § 4(a), title VI, § 6110(a), June 18, 2008, 122 Stat. 1664, 1960; Pub. L. 113–79, title VI, § 6104(a), Feb. 7, 2014, 128 Stat. 851; Pub. L. 115–334, title VI, §§ 6201, 6301(b), Dec. 20, 2018, 132 Stat. 4729, 4748.) Editorial Notes CODIFICATION The authorities provided by each provision of, and each amendment made by, Pub. L. 115–334, as in effect on Sept. 30, 2023, to continue, and authorities to be car- ried out, until the later of Sept. 30, 2024, or the date specified in the provision of, or amendment made by, Pub. L. 115–334, see section 102(a) of Pub. L. 118–22, set out in an Extension of Agricultural Programs note under section 9001 of this title. The authorities provided by each provision of, and each amendment made by, Pub. L. 110–246, as in effect on Sept. 30, 2012, to continue, and the Secretary of Ag- riculture to carry out the authorities, until the later of Sept. 30, 2013, or the date specified in the provision of, or amendment made by, Pub. L. 110–246, see section 701(a) of Pub. L. 112–240, set out in a 1-Year Extension of Agricultural Programs note under section 8701 of this title. Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246. AMENDMENTS 2018—Subsec. (a). Pub. L. 115–334, § 6201(1), substituted ‘‘provide grants, provide loans, and provide loan guar- antees’’ for ‘‘provide loans and loan guarantees’’. Subsec. (b)(3)(A)(ii). Pub. L. 115–334, § 6201(2), inserted ‘‘in the case of a grant or direct loan,’’ before ‘‘a city’’. Subsec. (b)(3)(C). Pub. L. 115–334, § 6301(b), added sub- par. (C). Subsec. (c). Pub. L. 115–334, § 6201(3)(A), substituted ‘‘Grants, loans, and’’ for ‘‘Loans and’’ in heading. Subsec. (c)(1). Pub. L. 115–334, § 6201(3)(B), substituted ‘‘shall make grants, shall make loans, and shall guar- antee loans’’ for ‘‘shall make or guarantee loans’’. Subsec. (c)(2) to (4). Pub. L. 115–334, § 6201(3)(C), added pars. (2) to (4) and struck out former par. (2) which re- lated to priority in making loans or loan guarantees. Subsec. (d)(1)(A). Pub. L. 115–334, § 6201(4)(A)(i)(I), sub- stituted ‘‘grant, loan, or’’ for ‘‘loan or’’ in introductory provisions. Subsec. (d)(1)(A)(i). Pub. L. 115–334, § 6201(4)(A)(i)(II), added cl. (i) and struck out former cl. (i) which read as follows: ‘‘demonstrate the ability to furnish, improve in order to meet the minimum acceptable level of broadband service established under subsection (e), or extend broadband service to all or part of an unserved rural area or an area below the minimum acceptable level of broadband service established under subsection (e);’’. Subsec. (d)(1)(A)(ii). Pub. L. 115–334, § 6201(4)(A)(i)(III), substituted ‘‘an application’’ for ‘‘a loan application’’. Page 558 TITLE 7—AGRICULTURE § 950bb Subsec. (d)(1)(A)(iii). Pub. L. 115–334, § 6201(4)(A)(i)(IV), struck out ‘‘loan’’ before ‘‘applica- tion’’ and substituted ‘‘infrastructure’’ for ‘‘service’’, ‘‘5’’ for ‘‘3’’, and ‘‘assistance under this section is’’ for ‘‘proceeds from the loan made or guaranteed under this section are’’. Subsec. (d)(1)(B). Pub. L. 115–334, § 6201(4)(A)(ii), sub- stituted ‘‘(j)’’ for ‘‘(k)’’. Subsec. (d)(2)(A). Pub. L. 115–334, § 6201(4)(B)(i), sub- stituted ‘‘assistance’’ for ‘‘the proceeds of a loan made or guaranteed’’ and ‘‘of the eligible entity’’ for ‘‘for the loan or loan guarantee’’ in introductory provisions. Subsec. (d)(2)(A)(i). Pub. L. 115–334, § 6201(4)(B)(ii), substituted ‘‘50 percent (in the case of loans or loan guarantees provided in accordance with subsection (g)(1)(A))’’ for ‘‘15 percent’’ and ‘‘level of fixed broadband service, whether terrestrial or wireless,’’ for ‘‘level of broadband service’’. Subsec. (d)(3)(A). Pub. L. 115–334, § 6201(4)(C), sub- stituted ‘‘grant, loan, or’’ for ‘‘loan or’’. Subsec. (d)(4). Pub. L. 115–334, § 6201(4)(D), substituted ‘‘assistance’’ for ‘‘a loan or loan guarantee’’. Subsec. (d)(5) to (10). Pub. L. 115–334, § 6201(4)(E), added par. (5) and struck out former pars. (5) to (10), which related to notice requirements, paperwork reduc- tion, preapplication process, reporting by entities re- ceiving assistance under this section, loan default and deobligation of awards, and service area assessment, re- spectively. Subsec. (e)(1)(A). Pub. L. 115–334, § 6201(5)(A)(i), sub- stituted ‘‘25-Mbps’’ for ‘‘4-Mbps’’. Subsec. (e)(1)(B). Pub. L. 115–334, § 6201(5)(A)(ii), sub- stituted ‘‘3-Mbps’’ for ‘‘1-Mbps’’. Subsec. (e)(2). Pub. L. 115–334, § 6201(5)(B), struck out subpar. (A) designation and heading before ‘‘At least once’’, inserted ‘‘and broadband buildout requirements under paragraph (4)’’ after ‘‘(1)’’, and struck out subpar. (B). Prior to amendment, text of subpar. (B) read as fol- lows: ‘‘In making an adjustment to the minimum ac- ceptable level of broadband service under subparagraph (A), the Secretary may consider establishing different transmission rates for fixed broadband service and mo- bile broadband service.’’ Subsec. (e)(4). Pub. L. 115–334, § 6201(5)(C), added par. (4). Subsec. (f). Pub. L. 115–334, § 6201(6), substituted ‘‘pro- vide assistance’’ for ‘‘make a loan or loan guarantee’’. Subsec. (g)(2), (3). Pub. L. 115–334, § 6201(7), redesig- nated par. (3) as (2) and struck out former par. (2). Prior to amendment, text of par. (2) read as follows: ‘‘In de- termining the term and conditions of a loan or loan guarantee, the Secretary may— ‘‘(A) consider whether the recipient is or would be serving an area that is unserved or has service levels below the minimum acceptable level of broadband service established under subsection (e); and ‘‘(B) if the Secretary makes a determination in the affirmative under subparagraph (A), establish a lim- ited initial deferral period or comparable terms nec- essary to achieve the financial feasibility and long- term sustainability of the project.’’ Subsec. (i). Pub. L. 115–334, § 6201(8), added subsec. (i) and struck out former subsec. (i). Prior to amendment, text read as follows: ‘‘Notwithstanding any other provi- sion of this chapter, the proceeds of any loan made or guaranteed by the Secretary under this chapter may be used by the recipient of the loan for the purpose of refi- nancing an outstanding obligation of the recipient on another telecommunications loan made under this chapter if the use of the proceeds for that purpose will support the construction, improvement, or acquisition of facilities and equipment for the provision of broadband service in rural areas.’’ Subsec. (j). Pub. L. 115–334, § 6201(8), (11), redesignated subsec. (k) as (j) and struck out former subsec. (j) which related to reports to Congress on participation in loan and loan guarantee program. Subsec. (k). Pub. L. 115–334, § 6201(11), redesignated subsec. (l) as (k). Former subsec. (k) redesignated (j). Subsec. (k)(1). Pub. L. 115–334, § 6201(9), substituted ‘‘$350,000,000’’ for ‘‘$25,000,000’’ and ‘‘2019 through 2023’’ for ‘‘2008 through 2018’’. Subsec. (l). Pub. L. 115–334, § 6201(11), redesignated subsec. (l) as (k). Pub. L. 115–334, § 6201(10), substituted ‘‘grant, or loan, or’’ for ‘‘loan or’’ and ‘‘2023’’ for ‘‘2018’’. 2014—Subsec. (c)(2). Pub. L. 113–79, § 6104(a)(1), added par. (2) and struck out former par. (2). Prior to amend- ment, text read as follows: ‘‘In making or guaranteeing loans under paragraph (1), the Secretary shall give the highest priority to applicants that offer to provide broadband service to the greatest proportion of house- holds that, prior to the provision of the broadband serv- ice, had no incumbent service provider.’’ Subsec. (d)(1)(A)(i). Pub. L. 113–79, § 6104(a)(2)(A), added cl. (i) and struck out former cl. (i). Prior to amendment, text read as follows: ‘‘demonstrate the ability to furnish, improve, or extend a broadband serv- ice to a rural area;’’. Subsec. (d)(2)(A)(i). Pub. L. 113–79, § 6104(a)(2)(B)(i), added cl. (i) and struck out former cl. (i). Prior to amendment, text read as follows: ‘‘not less than 25 per- cent of the households in the proposed service territory is offered broadband service by not more than 1 incum- bent service provider; and’’. Subsec. (d)(2)(B). Pub. L. 113–79, § 6104(a)(2)(B)(ii), struck out ‘‘25’’ before ‘‘percent’’ in heading. Subsec. (d)(2)(C). Pub. L. 113–79, § 6104(a)(2)(B)(iii)(I), struck out ‘‘3 or more’’ before ‘‘incumbent’’ in heading. Subsec. (d)(2)(C)(i). Pub. L. 113–79, § 6104(a)(2)(B)(iii)(II), added cl. (i) and struck out former cl.(i). Prior to amendment, text read as follows: ‘‘Ex- cept as provided in clause (ii), subparagraph (A)(ii) shall not apply to an incumbent service provider that is upgrading broadband service to the existing territory of the incumbent service provider.’’ Subsec. (d)(3)(B)(iii). Pub. L. 113–79, § 6104(a)(2)(C), added cl. (iii). Subsec. (d)(5). Pub. L. 113–79, § 6104(a)(2)(D), added par. (5) and struck out former par. (5) which related to no- tice requirement. Subsec. (d)(8) to (10). Pub. L. 113–79, § 6104(a)(2)(E), added pars. (8) to (10). Subsec. (e). Pub. L. 113–79, § 6104(a)(3), added pars. (1) and (2), redesignated former par. (2) as (3), and struck out former par. (1) which read as follows: ‘‘The Sec- retary shall, from time to time as advances in tech- nology warrant, review and recommend modifications of rate-of-data transmission criteria for purposes of the identification of broadband service technologies under subsection (b)(1).’’ Subsec. (g)(2). Pub. L. 113–79, § 6104(a)(4), added par. (2) and struck out former par. (2). Prior to amendment, text read as follows: ‘‘In determining the term of a loan or loan guarantee, the Secretary shall consider whether the recipient is or would be serving an area that is not receiving broadband services.’’ Subsec. (j)(1). Pub. L. 113–79, § 6104(a)(5)(A), inserted ‘‘, including any loan terms or conditions for which the Secretary provided additional assistance to unserved areas’’ before semicolon at end. Subsec. (j)(7). Pub. L. 113–79, § 6104(a)(5)(B)–(D), added par. (7). Subsecs. (k)(1), (l). Pub. L. 113–79, § 6104(a)(6), sub- stituted ‘‘2018’’ for ‘‘2012’’. 2008—Pub. L. 110–246, § 6110(a), amended section gen- erally, substituting provisions authorizing loans and loan guarantees for the costs of construction, improve- ment, and acquisition of facilities and equipment for broadband service in rural areas and terminating such authority on Sept. 30, 2012, for provisions authorizing similar loans and loan guarantees and terminating such authority on Sept. 30, 2007. 2004—Subsec. (b)(2). Pub. L. 108–199 amended heading and text of subsec. (b)(2) generally. Prior to amend- ment, text read as follows: ‘‘The term ‘eligible rural community’ means any incorporated or unincorporated place that— ‘‘(A) has not more than 20,000 inhabitants, based on the most recent available population statistics of the Bureau of the Census; and ‘‘(B) is not located in an area designated as a stand- ard metropolitan statistical area.’’ Page 559 TITLE 7—AGRICULTURE § 950bb–1 Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2008 AMENDMENT Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, except as other- wise provided, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title. Pub. L. 110–234, title VI, § 6110(c), May 22, 2008, 122 Stat. 1203, and Pub. L. 110–246, § 4(a), title VI, § 6110(c), June 18, 2008, 122 Stat. 1664, 1964, provided that: ‘‘The amendment made by subsection (a) [amending this sec- tion] shall not apply to— ‘‘(1) an application submitted under section 601 of the Rural Electrification Act of 1936 (7 U.S.C. 950bb) (as it existed before the amendment made by sub- section (a)) that— ‘‘(A) was pending on the date that is 45 days prior to the date of enactment of this Act [June 18, 2008]; and ‘‘(B) is pending on the date of enactment of this Act [June 18, 2008]; or ‘‘(2) a petition for reconsideration of a decision on an application described in paragraph (1).’’ [Pub. L. 110–234 and Pub. L. 110–246 enacted identical provisions. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246, set out as a note under section 8701 of this title.] REGULATIONS Pub. L. 110–234, title VI, § 6110(b), May 22, 2008, 122 Stat. 1203, and Pub. L. 110–246, § 4(a), title VI, § 6110(b), June 18, 2008, 122 Stat. 1664, 1964, provided that: ‘‘The Secretary [of Agriculture] may implement the amend- ment made by subsection (a) [amending this section] through the promulgation of an interim regulation.’’ [Pub. L. 110–234 and Pub. L. 110–246 enacted identical provisions. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246, set out as a note under section 8701 of this title.] Pub. L. 107–171, title VI, § 6103(b), May 13, 2002, 116 Stat. 418, provided that: ‘‘(1) IN GENERAL.—Not later than 180 days after the date of enactment of this Act [May 13, 2002], the Sec- retary of Agriculture shall promulgate such regula- tions as are necessary to implement the amendment made by subsection (a) [enacting this section]. ‘‘(2) PROCEDURE.—The promulgation of the regula- tions shall be made without regard to— ‘‘(A) the notice and comment provisions of section 553 of title 5, United States Code; ‘‘(B) the Statement of Policy of the Secretary of Agriculture effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices of proposed rulemaking and public participation in rulemaking; and ‘‘(C) chapter 35 of title 44, United States Code (com- monly known as the ‘Paperwork Reduction Act’). ‘‘(3) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.— In carrying out this subsection, the Secretary shall use the authority provided under section 808 of title 5, United States Code.’’ TRANSITION RULE Pub. L. 115–334, title VI, § 6213, Dec. 20, 2018, 132 Stat. 4746, provided that: ‘‘For the period beginning on the date of the enactment of this Act [Dec. 20, 2018] and ending on the date that is one year after such date of enactment, with respect to the implementation of the rural broadband access program under section 601 of the Rural Electrification Act of 1936 (7 U.S.C. 950bb) and the Community Connect Grant Program under sec- tion 604 of such Act [7 U.S.C. 950bb–3], as added by sec- tion 6204 of this Act, the Secretary [of Agriculture] shall use the regulations in existence as of the day be- fore the date of enactment of this Act that are applica- ble to the program involved, until the Secretary issues a final rule implementing the provisions of, and amend- ments made by, this title [see Tables for classification] that apply to that program.’’ § 950bb–1. Expansion of middle mile infrastruc- ture into rural areas (a) Purpose The purpose of this section is to encourage the expansion and extension of middle mile broadband infrastructure to connect under- served rural areas to the backbone of the Inter- net. (b) Middle mile infrastructure For the purposes of this section, the term ‘‘middle mile infrastructure’’ means any broadband infrastructure that does not connect directly to end-user locations (including anchor institutions) and may include interoffice trans- port, backhaul, Internet connectivity, data cen- ters, or special access transport to rural areas. (c) Grants, loans, and loan guarantees The Secretary shall make grants, loans, and loan guarantees to eligible applicants described in subsection (d) to provide funds for the con- struction, improvement, or acquisition of mid- dle mile infrastructure to serve rural areas. (d) Eligibility (1) Eligible applicants (A) In general To be eligible to obtain assistance under this section, an eligible entity shall— (i) submit to the Secretary an applica- tion at such time, in such manner, and containing such information as the Sec- retary may require; (ii) agree to complete build-out of the middle mile infrastructure described in the application by not later than 5 years after the initial date on which proceeds from the assistance provided under this section are made available; and (iii) submit to the Secretary a plan to ensure the viability of the project by— (I) connecting, assisting with con- necting, or enabling the connection of retail broadband systems that serve rural areas within the proposed service territory to the middle mile infrastruc- ture project in an affordable and eco- nomically competitive manner; (II) leasing or selling sufficient capac- ity prior to project approval; and (III) complying with any other require- ments imposed by the Secretary. (B) Additional end user broadband programs Entities that receive assistance to con- struct, improve, or acquire middle mile in- frastructure under this section shall be eligi- ble to apply for additional funds under this subchapter to provide for retail broadband service to end users. (2) Eligible service territories The proceeds of assistance provided under this section may be used to carry out a project in a proposed service territory only if, as of the date the application for assistance under this section is submitted, there is not ade- quate middle mile infrastructure available to support broadband service for eligible rural communities that would be provided access to the middle mile infrastructure.