§950bb–1 — Title 7 Agriculture | U.S. Code

Summary

The federal government will give grants, loans, and loan guarantees to build, improve, or buy middle mile broadband so rural areas can connect to the Internet backbone. Middle mile infrastructure — broadband that does not connect directly to homes or businesses, like backhaul, interoffice transport, data centers, or special access. To get help, applicants must apply as the Secretary requires, agree to finish the build within 5 years after the funds are first available, and submit a plan showing the project will work. The plan must show how retail providers will connect affordably, that enough capacity will be leased or sold before approval, and that other Secretary requirements will be met. Recipients of middle mile help can also apply for extra funds to offer retail service to end users. Funds may only be used where, when applying, there is not enough middle mile infrastructure to serve the eligible rural communities. A project must have at least 75% of its connection points serving those rural areas, and the Secretary must find the network can support the required retail buildout in related law. Grants cannot exceed 20% of a project’s total cost and go only to areas where low population or geography make building middle mile systems infeasible without help. Loans and guarantees will have terms and security the Secretary sets; if long-term leases make the infrastructure poor security, the Secretary will require other acceptable security. Up to $10,000,000 is authorized for each fiscal year 2018 through 2023.

Title 7, §950bb–1

Agriculture — Source: USLM XML via OLRC

(a)The purpose of this section is to encourage the expansion and extension of middle mile broadband infrastructure to connect underserved rural areas to the backbone of the Internet.

(b)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 transport, backhaul, Internet connectivity, data centers, or special access transport to rural areas.

(c)The Secretary shall make grants, loans, and loan guarantees to eligible applicants described in subsection (d) to provide funds for the construction, improvement, or acquisition of middle mile infrastructure to serve rural areas.

(d)(1)(A)To be eligible to obtain assistance under this section, an eligible entity shall—

(i)submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary 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 connecting, or enabling the connection of retail broadband systems that serve rural areas within the proposed service territory to the middle mile infrastructure project in an affordable and economically competitive manner;

(II)leasing or selling sufficient capacity prior to project approval; and

(III)complying with any other requirements imposed by the Secretary.

(B)Entities that receive assistance to construct, improve, or acquire middle mile infrastructure under this section shall be eligible to apply for additional funds under this subchapter to provide for retail broadband service to end users.

(2)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 adequate middle mile infrastructure available to support broadband service for eligible rural communities that would be provided access to the middle mile infrastructure.

(3)A project shall be eligible for assistance under this section if at the time of the application—

(A)at least 75 percent of the interconnection points serve such eligible rural areas; and

(B)the Secretary determines that the proposed middle mile network will be capable of supporting retail broadband service meeting the maximum broadband buildout requirement established under section 950bb(e)(4) of this title for the residents within the proposed service territory.

(e)In making grants under this section, the Secretary shall—

(1)not provide any grant in excess of 20 percent of the total project cost; and

(2)provide grants only to those projects which serve rural areas where population density or geographic characteristics make it infeasible to construct middle mile broadband systems without grant assistance.

(f)All loans and loan guarantees provided under this section shall be made subject to such terms, conditions, and adequacy of security requirements as may be imposed by the Secretary. If the middle mile infrastructure would not provide adequate security due to long-term leasing arrangements, the Secretary shall require substitute security in such form and substance as are acceptable to the Secretary.

(g)There is authorized to be appropriated to carry out this section $10,000,000 for each of fiscal years 2018 through 2023.

Notes & Related Subsidiaries

Editorial Notes

Codification Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246.

Amendments

2018—Pub. L. 115–334 amended section generally. Prior to amendment, section related to National Center for Rural Telecommunications Assessment.

Statutory Notes and Related Subsidiaries

Effective Date

Enactment 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, see section 4 of Pub. L. 110–246, set out as a note under section 8701 of this title.

§950bb–1 Expansion of middle mile infrastructure into rural areas