To establish a pilot program for gigabit Internet projects in rural areas.

SA 998. Mr. LEAHY submitted an amendment intended to be proposed by
him to the bill S. 954, to reauthorize agricultural programs through
2018; as follows:

Beginning on page 840, strike line 22 and all that follows
through page 849, line 18, and insert the following:
``(3) Rural area.--The term `rural area' means any area
described in section 3002 of the Consolidated Farm and Rural
Development Act.
``(4) Ultra-high speed service.--The term `ultra-high speed
service' means broadband service operating at a 1 gigabit per
second downstream transmission capacity.'';
(3) in subsection (c)--
(A) in the subsection heading, by striking ``Loans and''
and inserting ``Grants, Loans, and'';
(B) in paragraph (1), by inserting ``make grants and''
after ``Secretary shall'';
(C) by striking paragraph (2) and inserting the following:
``(2) Priority.--
``(A) In general.--In making grants, loans, or loan
guarantees under paragraph (1), the Secretary shall--

[[Page S3677]]

``(i) establish not less than 2, and not more than 4,
evaluation periods for each fiscal year to compare grant,
loan, and loan guarantee applications and to prioritize
grants, loans, and loan guarantees to all or part of rural
communities that do not have residential broadband service
that meets the minimum acceptable level of broadband service
established under subsection (e);
``(ii) give the highest priority to applicants that offer
to provide broadband service to the greatest proportion of
unserved rural households or rural households that do not
have residential broadband service that meets the minimum
acceptable level of broadband service established under
subsection (e), as--

``(I) certified by the affected community, city, county, or
designee; or
``(II) demonstrated on--

``(aa) the broadband map of the affected State if the map
contains address-level data; or
``(bb) the National Broadband Map if address-level data is
unavailable; and
``(iii) provide equal consideration to all qualified
applicants, including those that have not previously received
grants, loans, or loan guarantees under paragraph (1).
``(B) Other.--After giving priority to the applicants
described in subparagraph (A), the Secretary shall then give
priority to projects that serve rural communities--
``(i) with a population of less than 20,000 permanent
residents;
``(ii) experiencing outmigration;
``(iii) with a high percentage of low-income residents; and
``(iv) that are isolated from other significant population
centers.''; and
(D) by adding at the end the following:
``(3) Grant amounts.--
``(A) Eligibility.--To be eligible for a grant under this
section, the project that is the subject of the grant shall
be carried out in a rural area.
``(B) Maximum.--Except as provided in subparagraph (D), the
amount of any grant made under this section shall not exceed
50 percent of the development costs of the project for which
the grant is provided.
``(C) Grant rate.--The Secretary shall establish the grant
rate for each project in accordance with regulations issued
by the Secretary that shall provide for a graduated scale of
grant rates that establish higher rates for projects in
communities that have--
``(i) remote locations;
``(ii) low community populations;
``(iii) low income levels;
``(iv) developed the applications of the communities with
the participation of combinations of stakeholders,
including--

``(I) State, local, and tribal governments;
``(II) nonprofit institutions;
``(III) institutions of higher education;
``(IV) private entities; and
``(V) philanthropic organizations; and

``(v) targeted funding to provide the minimum acceptable
level of broadband service established under subsection (e)
in all or part of an unserved community that is below that
minimum acceptable level of broadband service.
``(D) Secretarial authority to adjust.--The Secretary may
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 a
remote or low income area that does not have access to
broadband service from any provider of broadband service
(including the applicant).'';
(4) in subsection (d)--
(A) in paragraph (1)(A)--
(i) in the matter preceding clause (i), by striking ``loan
or'' and inserting ``grant, loan, or'';
(ii) by striking clause (i) and inserting the following:
``(i) demonstrate the ability--

``(I) 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); or
``(II) to carry out a project under paragraph
(4)(B)(ii);'';

(iii) in clause (ii), by striking ``a loan application''
and inserting ``an application''; and
(iv) in clause (iii)--

(I) by striking ``the loan application'' and inserting
``the application''; and
(II) by striking ``proceeds from the loan made or
guaranteed under this section are'' and inserting
``assistance under this section is'';

(B) in paragraph (2)--
(i) in subparagraph (A)--

(I) in the matter preceding clause (i)--

(aa) by striking ``the proceeds of a loan made or
guaranteed'' and inserting ``assistance''; and
(bb) by striking ``for the loan or loan guarantee'' and
inserting ``of the eligible entity'';

(II) in clause (i), by striking ``is offered broadband
service by not more than 1 incumbent service provider'' and
inserting ``are unserved or have service levels below the
minimum acceptable level of broadband service established
under subsection (e)''; and
(III) in clause (ii), by striking ``3'' and inserting
``2'';

(ii) by striking subparagraph (B) and inserting the
following:
``(B) Adjustments.--
``(i) Increase.--The Secretary may increase the household
percentage requirement under subparagraph (A)(i) if--

``(I) more than 25 percent of the costs of the project are
funded by grants made under this section; or
``(II) the proposed service territory includes 1 or more
communities with a population in excess of 20,000.

``(ii) Reduction.--The Secretary may reduce the household
percentage requirement under subparagraph (A)(i)--

``(I) to not less than 15 percent, if the proposed service
territory does not have a population in excess of 5,000
people; or
``(II) to not less than 18 percent, if the proposed service
territory does not have a population in excess of 7,500
people.''; and

(iii) in subparagraph (C)--

(I) in the subparagraph heading, by striking ``3'' and
inserting ``2'';
(II) in clause (i), by inserting ``the minimum acceptable
level of broadband service established under subsection (e)
in'' after ``service to''; and
(III) by striking clause (ii) and inserting the following:

``(ii) Exceptions.--Clause (i) shall not apply if--

``(I) the applicant is eligible for funding under another
title of this Act; or
``(II) the project is being carried out under paragraph
(4)(B)(ii), unless an incumbent service provider is providing
ultra-high speed service as of the date of an application for
assistance submitted to the Secretary under this section.'';

(C) in paragraph (3)--
(i) in subparagraph (A), by striking ``loan or'' and
inserting ``grant, loan, or''; and
(ii) in subparagraph (B), by adding at the end the
following:
``(iii) Information.--Information submitted under this
subparagraph shall be--

``(I) certified by the affected community, city, county, or
designee; and
``(II) demonstrated on--

``(aa) the broadband map of the affected State if the map
contains address-level data; or
``(bb) the National Broadband Map if address-level data is
unavailable.'';
(D) in paragraph (4)--
(i) by striking ``Subject to paragraph (1),'' and inserting
the following:
``(A) In general.--Subject to paragraph (1) and
subparagraph (B),'';
(ii) by striking ``loan or'' and inserting ``grant, loan,
or''; and
(iii) by adding at the end the following:
``(B) Pilot programs.--The Secretary shall establish pilot
programs under which the Secretary may, at the discretion of
the Secretary, provide grants, loans, or loan guarantees
under this section to eligible entities, including interested
entities described in subparagraph (A)--
``(i) to address areas that are unserved or have service
levels below the minimum acceptable level of broadband
service established under subsection (e); or
``(ii) for the purposes of providing a proposed service
territory with ultra-high speed service, subject to the
conditions that--

``(I) not more than 5 projects, and not more than 1 project
in any State, shall be carried out under this clause during
the period beginning on the date of enactment of this Act and
ending on September 30, 2018;
``(II) for each fiscal year, not more than 10 percent of
the funds made available under subsection (l) shall be used
to carry out this clause;
``(III) for each fiscal year, not more than 20 percent of
the funds made available under subclause (II) shall be used
for any 1 project; and
``(IV) paragraph (2)(A)(i) shall apply to the project,
unless--

``(aa) the Secretary determines that no other project in
the State is funded under this section; and
``(bb) no application for any other project that could be
funded under this section, other than under this clause, is
pending in the State.'';
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