[Pages H5179-H5185]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

COMMERCIAL SPECTRUM ENHANCEMENT ACT

Mr. UPTON. Mr. Speaker, I move to suspend the rules and pass the bill
(H.R. 1320) to amend the National Telecommunications and Information
Administration Organization Act to facilitate the reallocation of
spectrum from governmental to commercial users, as amended.
The Clerk read as follows:

[[Page H5180]]

H.R. 1320

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Commercial Spectrum
Enhancement Act''.

SEC. 2. RELOCATION OF ELIGIBLE FEDERAL ENTITIES FOR THE
REALLOCATION OF SPECTRUM FOR COMMERCIAL
PURPOSES.

Section 113(g) of the National Telecommunications and
Information Administration Organization Act (47 U.S.C.
923(g)) is amended by striking paragraphs (1) through (3) and
inserting the following:--
``(1) Eligible federal entities.--Any Federal entity that
operates a Federal Government station assigned to a band of
frequencies specified in paragraph (2) and that incurs
relocation costs because of the reallocation of frequencies
from Federal use to non-Federal use shall receive payment for
such costs from the Spectrum Relocation Fund, in accordance
with section 118 of this Act. For purposes of this paragraph,
Federal power agencies exempted under subsection (c)(4) that
choose to relocate from the frequencies identified for
reallocation pursuant to subsection (a), are eligible to
receive payment under this paragraph.
``(2) Eligible frequencies.--The bands of eligible
frequencies for purposes of this section are as follows:
``(A) the 216-220 megahertz band, the 1432-1435 megahertz
band, the 1710-1755 megahertz band, and the 2385-2390
megahertz band of frequencies; and
``(B) any other band of frequencies reallocated from
Federal use to non-Federal use after January 1, 2003, that is
assigned by competitive bidding pursuant to section 309(j) of
the Communications Act of 1934 (47 U.S.C. 309(j)), except for
bands of frequencies previously identified by the National
Telecommunications and Information Administration in the
Spectrum Reallocation Final Report, NTIA Special Publication
95-32 (1995).
``(3) Definition of relocation costs.--For purposes of this
subsection, the term `relocation costs' means the costs
incurred by a Federal entity to achieve comparable capability
of systems, regardless of whether that capability is achieved
by relocating to a new frequency assignment or by utilizing
an alternative technology. Such costs include--
``(A) the costs of any modification or replacement of
equipment, software, facilities, operating manuals, training
costs, or regulations that are attributable to relocation;
``(B) the costs of all engineering, equipment, software,
site acquisition and construction costs, as well as any
legitimate and prudent transaction expense, including outside
consultants, and reasonable additional costs incurred by the
Federal entity that are attributable to relocation, including
increased recurring costs associated with the replacement
facilities;
``(C) the costs of engineering studies, economic analyses,
or other expenses reasonably incurred in calculating the
estimated relocation costs that are provided to the
Commission pursuant to paragraph (4) of this subsection;
``(D) the one-time costs of any modification of equipment
reasonably necessary to accommodate commercial use of such
frequencies prior to the termination of the Federal entity's
primary allocation or protected status, when the eligible
frequencies as defined in paragraph (2) of this subsection
are made available for private sector uses by competitive
bidding and a Federal entity retains primary allocation or
protected status in those frequencies for a period of time
after the completion of the competitive bidding process; and
``(E) the costs associated with the accelerated replacement
of systems and equipment if such acceleration is necessary to
ensure the timely relocation of systems to a new frequency
assignment.
``(4) Notice to commission of estimated relocation costs.--
``(A) The Commission shall notify the NTIA at least 18
months prior to the commencement of any auction of eligible
frequencies defined in paragraph (2). At least 6 months prior
to the commencement of any such auction, the NTIA, on behalf
of the Federal entities and after review by the Office of
Management and Budget, shall notify the Commission of
estimated relocation costs and timelines for such relocation.
``(B) Upon timely request of a Federal entity, the NTIA
shall provide such entity with information regarding an
alternative frequency assignment or assignments to which
their radiocommunications operations could be relocated for
purposes of calculating the estimated relocation costs and
timelines to be submitted to the Commission pursuant to
subparagraph (A).
``(C) To the extent practicable and consistent with
national security considerations, the NTIA shall provide the
information required by subparagraphs (A) and (B) by the
geographic location of the Federal entities' facilities or
systems and the frequency bands used by such facilities or
systems.
``(5) Notice to congressional committees and gao.--The NTIA
shall, at the time of providing an initial estimate of
relocation costs to the Commission under paragraph (4)(A),
submit to the Committees on Appropriations and Energy and
Commerce of the House of Representatives, the Committees on
Appropriations and Commerce, Science, and Transportation of
the Senate, and the Comptroller General a copy of such
estimate and the timelines for relocation.
``(6) Implementation of procedures.--The NTIA shall take
such actions as necessary to ensure the timely relocation of
Federal entities' spectrum-related operations from
frequencies defined in paragraph (2) to frequencies or
facilities of comparable capability. Upon a finding by the
NTIA that a Federal entity has achieved comparable capability
of systems by relocating to a new frequency assignment or by
utilizing an alternative technology, the NTIA shall terminate
the entity's authorization and notify the Commission that the
entity's relocation has been completed. The NTIA shall also
terminate such entity's authorization if the NTIA determines
that the entity has unreasonably failed to comply with the
timeline for relocation submitted by the Director of the
Office of Management and Budget under section
118(d)(2)(B).''.

SEC. 3. MINIMUM AUCTION RECEIPTS AND DISPOSITION OF PROCEEDS.

(a) Auction Design.--Section 309(j)(3) of the
Communications Act of 1934 (47 U.S.C. 309(j)(3)) is amended--
(1) by striking ``and'' at the end of subparagraph (D);
(2) by striking the period at the end of subparagraph (E)
and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(F) for any auction of eligible frequencies described in
section 113(g)(2) of the National Telecommunications and
Information Administration Organization Act (47 U.S.C.
923(g)(2)), the recovery of 110 percent of estimated
relocation costs as provided to the Commission pursuant to
section 113(g)(4) of such Act.''.
(b) Special Auction Provisions for Eligible Frequencies.--
Section 309(j) of such Act is further amended by adding at
the end the following new paragraph:
``(15) Special auction provisions for eligible
frequencies.--
``(A) Special regulations.--The Commission shall revise the
regulations prescribed under paragraph (4)(F) of this
subsection to prescribe methods by which the total cash
proceeds from any auction of eligible frequencies described
in section 113(g)(2) of the National Telecommunications and
Information Administration Organization Act (47 U.S.C.
923(g)(2)) shall at least equal 110 percent of the total
estimated relocation costs provided to the Commission
pursuant to section 113(g)(4) of such Act.
``(B) Conclusion of auctions contingent on minimum
proceeds.--The Commission shall not conclude any auction of
eligible frequencies described in section 113(g)(2) of such
Act if the total cash proceeds attributable to such spectrum
are less than 110 percent of the total estimated relocation
costs provided to the Commission pursuant to section
113(g)(4) of such Act. If the Commission is unable to
conclude an auction for the foregoing reason, the Commission
shall cancel the auction, return within 45 days after the
auction cancellation date any deposits from participating
bidders held in escrow, and absolve such bidders from any
obligation to the United States to bid in any subsequent
reauction of such spectrum.
``(C) Authority to issue prior to deauthorization.--In any
auction conducted under the regulations required by
subparagraph (A), the Commission may grant a license assigned
for the use of eligible frequencies prior to the termination
of an eligible Federal entity's authorization. However, the
Commission shall condition such license by requiring that the
licensee cannot cause harmful interference to such Federal
entity until such entity's authorization has been terminated
by the National Telecommunications and Information
Administration.''.
(c) Deposit of Proceeds.--Paragraph (8) of section 309(j)
of the Communications Act of 1934 (47 U.S.C. 309(j)) is
amended--
(1) in subparagraph (A), by inserting ``or subparagraph
(D)'' after ``subparagraph (B)''; and
(2) by adding at the end the following new subparagraph:
``(D) Disposition of cash proceeds.--Cash proceeds
attributable to the auction of any eligible frequencies
described in section 113(g)(2) of the National
Telecommunications and Information Administration
Organization Act (47 U.S.C. 923(g)(2)) shall be deposited in
the Spectrum Relocation Fund established under section 118 of
such Act, and shall be available in accordance with that
section.''.

SEC. 4. ESTABLISHMENT OF FUND AND PROCEDURES.

Part B of the National Telecommunications and Information
Administration Organization Act is amended by adding after
section 117 (47 U.S.C. 927) the following new section:

``SEC. 118. SPECTRUM RELOCATION FUND.

``(a) Establishment of Spectrum Relocation Fund.--There is
established on the books of the Treasury a separate fund to
be known as the `Spectrum Relocation Fund' (in this section
referred to as the `Fund'), which shall be administered by
the Office of Management and Budget (in this section referred
to as `OMB'), in consultation with the NTIA.
``(b) Crediting of Receipts.--The Fund shall be credited
with the amounts specified in section 309(j)(8)(D) of the
Communications Act of 1934 (47 U.S.C. 309(j)(8)(D)).
``(c) Used To Pay Relocation Costs.--The amounts in the
Fund from auctions of eligible frequencies are authorized to
be used to pay relocation costs, as defined in section
113(g)(3) of this Act, of an eligible Federal entity
incurring such costs with respect to relocation from those
frequencies.
``(d) Fund Availability.--
``(1) Appropriation.--There are hereby appropriated from
the Fund such sums as are required to pay the relocation
costs specified in subsection (c).
``(2) Transfer conditions.--None of the funds provided
under this subsection may be transferred to any eligible
Federal entity--
``(A) unless the Director of OMB has determined, in
consultation with the NTIA, the appropriateness of such costs
and the timeline for relocation; and
``(B) until 30 days after the Director of the OMB has
submitted to the Committees on Appropriations and Energy and
Commerce of the

[[Page H5181]]

House of Representatives, the Committees on Appropriations
and Commerce, Science, and Transportation of the Senate, and
the Comptroller General a detailed plan describing how the
sums transferred from the Fund will be used to pay relocation
costs in accordance with such subsection and the timeline for
such relocation.
``(3) Reversion of unused funds.--Any auction proceeds in
the Fund that are remaining after the payment of the
relocation costs that are payable from the Fund shall revert
to and be deposited in the general fund of the Treasury not
later than 8 years after the date of the deposit of such
proceeds to the Fund.
``(e) Transfer to Eligible Federal Entities.--
``(1) Transfer.--
``(A) Amounts made available pursuant to subsection (d)
shall be transferred to eligible Federal entities, as defined
in section 113(g)(1) of this Act.
``(B) An eligible Federal entity may receive more than one
such transfer, but if the sum of the subsequent transfer or
transfers exceeds 10 percent of the original transfer--
``(i) such subsequent transfers are subject to prior
approval by the Director of OMB as required by subsection
(d)(2)(A);
``(ii) the notice to the committees containing the plan
required by subsection (d)(2)(B) shall be not less than 45
days prior to the date of the transfer that causes such
excess above 10 percent;
``(iii) such notice shall include, in addition to such
plan, an explanation of need for such subsequent transfer or
transfers; and
``(iv) the Comptroller General shall, within 30 days after
receiving such plan, review such plan and submit to such
committees an assessment of the explanation for the
subsequent transfer or transfers.
``(C) Such transferred amounts shall be credited to the
appropriations account of the eligible Federal entity which
has incurred, or will incur, such costs, and shall, subject
to paragraph (2), remain available until expended.
``(2) Retransfer to fund.--An eligible Federal entity that
has received such amounts shall report its expenditures to
OMB and shall transfer any amounts in excess of actual
relocation costs back to the Fund immediately after the NTIA
has notified the Commission that the entity's relocation is
complete, or has determined that such entity has unreasonably
failed to complete such relocation in accordance with the
timeline required by subsection (d)(2)(A).''.

SEC. 5. TELECOMMUNICATIONS DEVELOPMENT FUND.

Section 714(f) of the Communications Act of 1934 (47 U.S.C.
614(f)) is amended to read as follows:
``(f) Lending and Credit Operations.--Loans or other
extensions of credit from the Fund shall be made available to
an eligible small business on the basis of--
``(1) the analysis of the business plan of the eligible
small business;
``(2) the reasonable availability of collateral to secure
the loan or credit extension;
``(3) the extent to which the loan or credit extension
promotes the purposes of this section; and
``(4) other lending policies as defined by the Board.''.

SEC. 6. CONSTRUCTION.

Nothing in this Act is intended to modify section 1062(b)
of the National Defense Authorization Act for Fiscal Year
2000 (Public Law 106-65).

SEC. 7. ANNUAL REPORT.

The National Telecommunications and Information
Administration shall submit an annual report to the
Committees on Appropriations and Energy and Commerce of the
House of Representatives, the Committees on Appropriations
and Commerce, Science, and Transportation of the Senate, and
the Comptroller General on--
(1) the progress made in adhering to the timelines
applicable to relocation from eligible frequencies required
under section 118(d)(2)(A) of the National Telecommunications
and Information Administration Organization Act, separately
stated on a communication system-by-system basis and on an
auction-by-auction basis; and
(2) with respect to each relocated communication system and
auction, a statement of the estimate of relocation costs
required under section 113(g)(4) of such Act, the actual
relocations costs incurred, and the amount of such costs paid
from the Spectrum Relocation Fund.

SEC. 8. PRESERVATION OF AUTHORITY; NTIA REPORT REQUIRED.

(a) Spectrum Management Authority Retained.--Except as
provided with respect to the bands of frequencies identified
in section 113(g)(2)(A) of the National Telecommunications
and Information Administration Organization Act (47 U.S.C.
923(g)(2)(A)) as amended by this Act, nothing in this Act or
the amendments made by this Act shall be construed as
limiting the Federal Communications Commission's authority to
allocate bands of frequencies that are reallocated from
Federal use to non-Federal use for unlicensed, public safety,
shared, or non-commercial use.
(b) NTIA Report Required.--Within 1 year after the date of
enactment of this Act, the Administrator of the National
Telecommunications and Information Administration shall
submit to the Energy and Commerce Committee of the House of
Representatives and the Commerce, Science, and Transportation
Committee of the Senate a report on various policy options to
compensate Federal entities for relocation costs when such
entities' frequencies are allocated by the Commission for
unlicensed, public safety, shared, or non-commercial use.

The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Michigan (Mr. Upton) and the gentleman from Massachusetts (Mr. Markey)
each will control 20 minutes.
The Chair recognizes the gentleman from Michigan (Mr. Upton).

General Leave

Mr. UPTON. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days within which to revise and extend their remarks
on this legislation and to insert extraneous material on the bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Michigan?
There was no objection.
Mr. UPTON. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in strong support of H.R. 1320, bipartisan
legislation called the Commercial Spectrum Enhancement Act, otherwise
known as the spectrum relocation trust fund bill. I introduced this
legislation with my good friend, the gentleman from New York (Mr.
Towns), along with the gentleman from Louisiana (Mr. Tauzin), the
gentleman from Virginia (Mr. Boucher), the gentleman from Nebraska (Mr.
Terry), the gentleman from Texas (Mr. Green), the gentleman from
Florida (Mr. Stearns), the gentleman from New Hampshire (Mr. Bass), the
gentleman from Mississippi (Mr. Pickering), the gentleman from Kentucky
(Mr. Whitfield), and the gentleman from Illinois (Mr. Kirk).
Lately the subcommittee has been focused on the ailing
telecommunications sector. Clearly the commercial wireless industry has
not been spared from the wreckage, and we have been searching for ways
to restore some hope. In my view what we need to do is get new,
valuable spectrum into the hands of the commercial wireless carriers so
that they can bring new, advanced wireless services to the consumer.
That would be good for the wireless carriers, good for the equipment
manufacturers, good for the consumer, and certainly great for the
economy.
In the current context, the government already has identified the
1710 to 1755 megahertz band for relocation from the government to the
private sector. This spectrum, mostly encumbered by DOD, is considered
valuable ``beachfront property'' due to its suitability for commercial,
mobile advanced wireless services like 3G. However, the road to
relocating government entities to comparable spectrum is unpaved and
filled with potholes. This bumpy road creates massive uncertainty in
the process and depresses interest in participating in the auction in
the first place.
H.R. 1320 would pave that road, establishing a spectrum relocation
fund and procedures to ensure a timely, certain and privately yet fully
funded relocation of Federal incumbents to comparable spectrum. H.R.
1320 requires the FCC to notify the National Telecommunications and
Information Administration, NTIA, 18 months before conducting an
auction of relocated spectrum. The purpose of that notification is so
that the NTIA, after review by the Office of Management and Budget, can
provide the Commission with an estimate of relocation costs for a
particular band and a time line for relocation. That information is
critical because under the legislation, an FCC auction of relocated
spectrum is only valid if the auction yields proceeds of at least 110
percent of the estimated relocation costs.
The proceeds from auctions of eligible reallocated bands are
deposited into a spectrum relocation fund which is an OMB-administered
separate fund at the Department of Treasury. If any agency has any
transferred money remaining when relocation is complete, the agency is
required to transfer the money back to the spectrum relocation fund
right away. Unexpected auction proceeds are then transferred to the
Treasury no later than 8 years after the proceeds were initially
deposited into the spectrum relocation fund. All the while, H.R. 1320
provides tight fiscal controls and congressional oversight, as it
should, of the use of the spectrum relocation fund.
Finally, the bill exempts the telecommunications development fund,
TDF, from the Federal Credit Reform Act, the practical application of
which has prevented TDF from making loans without first obtaining
budget authority on an annual basis. The provision in H.R. 1320 will
significantly enhance

[[Page H5182]]

the TDF's ability to make loans to worthy development projects focused
on rural and underserved areas. I appreciate my good friend, the
gentleman from New York (Mr. Towns), for his attention to this issue. I
am pleased that the provision in fact is incorporated into the bill.
As such, the bipartisan bill represents a win-win-win. That is good
news for the private sector which craves certainty in the process and
the consumer who craves the benefits which new services enabled by
additional spectrum will afford them. That is good news for government
agencies who know that they will be made whole when they relocate to
comparable spectrum and the taxpayer who will not have to pay a dime to
relocate government agencies and will know that there is tight fiscal
oversight in that regard. As I indicated, all of this is great news for
the economy.
I should also add that we worked very closely with the administration
to get where we are today and that the bill enjoys the administration's
support, including the Department of Defense, the OMB and NTIA. I want
to especially thank Assistant Secretary of Commerce Nancy Victory and
former Deputy Assistant Secretary of Defense Stephen Price, the
gentleman from Louisiana (Mr. Tauzin), my good friend from the great
State of Michigan, ranking member (Mr. Dingell), and certainly the
gentleman from Massachusetts (Mr. Markey), in addition to the majority
and minority staff for their efforts to get us where we are today. I
urge an ``aye'' vote on this legislation.
Mr. Speaker, I reserve the balance of my time.
Mr. MARKEY. Mr. Speaker, I yield myself such time as I may consume.
I would like to begin by first thanking my good and great friend, the
gentleman from Michigan (Mr. Upton), for that wonderful opening
statement and to the chairman of the full committee, the gentleman from
Louisiana (Mr. Tauzin), to the great Member of Congress from the State
of Michigan (Mr. Dingell), the dean of the entire House of
Representatives, for his wonderful work on this legislation, and to all
the Members who participated in the formulation of this excellent piece
of legislation. I want to thank all of them for their help in putting
this bill together today.
The goal of this legislation is to establish a policy mechanism that
may assist the Federal Government in reallocating airwave frequencies
from the Federal Government to the Federal Communications Commission.
Ensuring the best use of such frequencies for the public is a vital
function of both the National Telecommunications Information Agency and
the Federal Communications Commission. The bill we bring to the House
floor this morning proposes the creation of a fund derived from FCC
auction revenue to pay the military and other Federal users for moving
out of particular bands of frequencies. Establishing such a mechanism
when and if the FCC chooses to license certain government frequencies
through auctions may bring greater certainty to the process and may
also speed along the availability of certain frequencies. In addition,
one issue that we will need to continue to focus on is the necessity of
ensuring that the money raised is spent wisely and with adequate
oversight. We have returned to an era of Federal budget deficits for as
far as the eye can see and, as a result, this is a very important
issue.

{time} 1030

The bill does contain improved oversight and reporting provisions to
guard against cost overruns by Federal entities that seek to use money
in the Spectrum Relocation Fund, but this process will likely need
ongoing review as the bill is implemented.
I want to commend the gentleman from Michigan (Mr. Dingell), the
gentleman from Michigan (Mr. Upton), and the gentleman from Louisiana
(Chairman Tauzin) for their work in this area.
Second, it is important to note that today's bill puts in place a new
policy for Federal spectrum reallocations. It does so through
establishing a Federal fund derived from auction proceeds to compensate
the Federal users for the costs associated with moving out of their
current frequencies.
One issue that arose during the committee consideration of this bill
is that this new policy is only operative in circumstances when an
auction actually occurs. I think it is important to recognize that in
the future certain frequencies utilized by Federal entities may be
reallocated by the Federal Communications Commission, yet not licensed
through auctions. They may be for public safety, noncommercial uses,
shared frequencies, or unlicensed use such as the so-called WiFi
technologies. In other words, in order to ensure the highest and best
use of such frequencies for the public, the FCC may seek to allocate or
assign such frequencies without auctions.
In recent years it has become evident that one of the
telecommunications sector's economic bright spots has been unlicensed
applications such at WiFi. Ensuring that we have a policy in place to
permit the Federal Communications Commission to continue to promote
unlicensed spectrum is important. But in addition, retaining the
historic flexibility for the Federal Communications Commission to
allocate frequencies for both commercial and noncommercial use is
something we should safeguard, even as we put in place a new policy to
compensate Federal users for the costs of moving out.
We do not want the absence of an articulated policy for unlicensed
use, shared use, public safety use, or noncommercial use to be
construed as compelling the FCC to use auctions whenever it intends to
move a Federal user to another frequency band.
I am pleased that the legislation contains a provision that I
authored in this policy area. First, the provision safeguards the FCC's
historic authority to allocate frequencies as the public interest is
deemed to be best served. Second, it also directs the National
Telecommunications Information Agency to develop reports on various
policy options to compensate Federal entities for relocation costs when
such entities' frequencies are allocated by the commission for
unlicensed public safety, shared or noncommercial use.
Finally, I believe that when the Federal Communications Commission
does decide to proceed with auctions as a means of granting licenses
for use of the public's airwaves the public deserves to reap the
benefits of the sale of licenses to its airwaves. These benefits should
not only manifest themselves in the offering of new commercial services
or the temporary infusion of cash into the Federal Treasury as under
current law.
I have proposed in H.R. 1396 that the public should also enjoy the
dividends that can be reaped by reinvesting auction money into a
Digital Dividends trust fund. This fund would generate interest, and
that interest could be used in the form of grants to promote
educational technology projects, public safety telecommunications
initiatives, software R&D, teacher training, and digitizing for online
access the important cultural assets held in our Nation's libraries and
museums, among other initiatives.
Investing surplus auction revenues in this manner is a wise
investment. It supports the educational infrastructure of our country.
It will help to better prepare our citizens for an information-rich,
knowledge-based economy. An educated citizenry is indispensable to our
democracy. Educating citizens so that they possess the necessary
digital skill set that they will need in order to compete in a modern
global economy will make us a more secure, more productive country for
the generations to come.
Again, I want to thank the gentleman from Louisiana (Chairman
Tauzin), the gentleman from Michigan (Chairman Upton), the gentleman
from Michigan (Mr. Dingell), and all of the Members who have helped to
construct this very progressive legislation.
Mr. Speaker, I reserve the balance of my time.
Mr. UPTON. Mr. Speaker, I include for the Record three statements in
support of this legislation: the first by the administration in their
statement of administration policy; second, a strong letter of support
by the Chamber of Commerce; and, third, a letter of strong support by
the CTIA.

Statement of Administration Policy

(ThIs statement has been coordinated by OMB with the
concerned agencies.)
The Administration strongly supports House passage of H.R.
1320, which would create a spectrum relocation fund. The
Administration believes that the fund will serve as

[[Page H5183]]

an important spectrum management tool to streamline the
process for reimbursing government users, facilitate their
relocation to comparable spectrum, and provide greater
certainty to auction bidders and incumbents. This legislation
will also expedite the opening of spectrum to commercial use
for new services and technologies for consumers.
The Administration is pleased that H.R. 1320 closely tracks
the Administration's proposal to create a spectrum relocation
fund. The Administration urges quick action by the Congress
to establish a spectrum relocation fund to make the spectrum
management process more effective and efficient.

pay-as-you-go scoring

H.R. 1320 would affect direct spending. The Budget
Enforcement Act's pay-as-you-go requirements and
discretionary spending caps expired on September 30, 2002.
The Administration supports the extension of these budget
enforcement mechanisms in a manner that ensures fiscal
discipline and is consistent with the President's budget.
____

Chamber of Commerce

of the United States of America,

Washington, DC, June 10, 2003.
To All Members of the U.S. House of Representatives:
The U.S. Chamber of Commerce, the world's largest business
federation, representing more than three million businesses
and organizations of every size, sector and region, urges you
to support H.R. 1320, the Commercial Spectrum Enhancement
Act. It is expected that the U.S. House of Representatives
will consider H.R. 1320 on June 11 or 12, 2003, under
suspension of the rules. Furthermore, we urge you to oppose
any amendments that would weaken this legislation or divert
substantial funds away from the primary purpose of freeing up
essential spectrum for commercial usage.
This legislation would clear a major hurdle in the ongoing
effort to make available more spectrum for advanced wireless
services and applications. The act would establish a
mechanism for reimbursing incumbent federal spectrum users
for their relocation costs when their spectrum is reallocated
for commercial use. The trust fund would ensure the safe and
efficient transition of governmental operations from one
spectrum location to another, while creating new
opportunities for innovation in the wireless sector.
The creation of a spectrum relocation trust fund represents
an important step in the difficult process of reforming our
nation's spectrum allocation and management policies. We must
continue to support these efforts in order to create the
necessary incentives for investment and advancement in the
technology industry, which will continue to be a key driver
of the American economy.
Sincerely,
R. Bruce Josten,
Executive Vice President.
____

Cellular Telecommunications

and Internet Association,

Washington, DC, June 11, 2003.
Hon. Billy Tauzin,
Chairman, House Energy and Commerce Committee, RHOB, House of
Representatives, Washington, DC.

Hon. John D. Dingell,
Ranking Member, House Energy and Commerce Committee, RHOB,
House of Representatives, Washington, DC.
Dear Mr. Chairman and Ranking Member: The Cellular
Telecommunications & Internet Association (herein, CTIA)
offers its unqualified support for the Commercial Spectrum
Enhancement Act (H.R 1320). We salute your hard work on this
legislation and urge its passage by the House of
Representatives. CTIA represents all categories of commercial
wireless telecommunications carriers, including cellular and
personal communications services, manufacturers and wireless
Internet providers.
CTIA and the wireless industry appreciates the efforts of
the many members who are co-sponsors of H.R. 1320, in
particular Telecommunications Subcommittee Chairman Upton and
Congressman Towns, the lead sponsors.
Passage of H.R. 1320 would significantly improve spectrum
management for both government spectrum users and for the
commercial wireless industry. The current process is a
``black hole'' for both government agencies and the private
sector--filled with uncertainty, punctuated by unknown costs,
and bereft of predictability. The current process works for
no one.
President Bush identified that fact in both the Fiscal Year
2003 and 2004 Budgets and called for the legislative changes
that are embodied in H.R. 1320. The relocation fund
legislation balances three key policy objectives: First, H.R.
1320 fully funds government relocation, providing certainty
essential to the Defense Department and all other government
incumbents. Second, H.R. 1320 will result in workable
timelines for both wireless industry and government
incumbents. Third, H.R. 1320 provides certainty and
accountability in developing--and adhering to--relocation
cost estimates and relocation timetables.
During his March 25 testimony, Deputy Assistant Secretary
of Defense for Spectrum, Space, Sensors and C3 Steven Price
called for a ``trustworthy Trust Fund.'' We concur, H.R. 1320
provides exactly this solution.
This bi-partisan legislation is a ``win-win-win'' solution,
benefiting our national security, our nation's economy and
American consumers. CTIA looks forward to continuing to work
with you and all members of the Committee to assure that this
legislation is soon law.
Sincerely,
Steven K. Berry,
Senior Vice President, Government Affairs.

Mr. Speaker, I yield such time as he may consume to the gentleman
from Louisiana (Mr. Tauzin), the chairman of the powerful Committee on
Energy and Commerce.
Mr. TAUZIN. Mr. Speaker, I thank the distinguished chairman of the
Subcommittee on Telecommunications and the Internet, the gentleman from
Michigan (Mr. Upton); and I want to congratulate him on his hard work
and the work product that we debate here on the House floor today.
I particularly also want to congratulate and thank my friend, the
gentleman from Massachusetts (Mr. Markey), the ranking member of the
subcommittee, and my dear friend, the gentleman from Michigan (Mr.
Dingell), the dean of our House and the ranking Democrat on the full
committee, for the extraordinary cooperation that has been shown on
this and so many pieces of legislation that our Committee on Energy and
Commerce brings to the floor in the course of a year.
This is one of those rare occasions where the administration, the
Democrats and Republicans are all on the same page. We all agree this
is of vital importance to the national economy, to the advancement of
important wireless technologies for the good of our consumers in
America and for the good of the lead that our Nation has played in
world telecommunications technologies and commerce.
This is one area where we can immediately begin to assist the
Nation's economy in recovering, where we can immediately begin to do
something to advance the cause of third-generation wireless
technologies, the video and data links that are going to provide new
services, equipment and products, built in America, made by American
hands and used by Americans to advance the progress of their lives and
their social contact with one another.
This is a good day for America, because we have come together and
realized that all the handicaps, all the internecine battles that may
have been fought between agencies and those in the private sector who
wanted spectrum to begin to develop these new technologies, all of
these fights about who is going to pay the relocation costs to get the
spectrum made available to have these things happen in our country are
now being resolved by this relocation trust fund, a concept that says
the trust fund is going to be there to make sure the relocation costs
are taken care of so the FCC can move these new and exciting
technologies to the forefront so Americans can enjoy them and our
economy can grow again.
This is a good day, but I want to point out to Members how without
this kind of legislation things go wrong. We passed a bill on this
House floor, again with the extraordinary bipartisan support of our
friends on the Democratic side of our committee in this House and with
the President's support, called E911. E911 is a concept that says when
a person makes an emergency 911 call, it would be good to know where
they are calling from; and when they are using a mobile telephone it
would be certainly extraordinarily helpful if the person who received
the 911 call could identify the location of the caller, because often
the call is made in times of distress, an accident on the highway, a
mugging in a park, a call of distress made by a citizen who is lost or
in trouble on the highway and needs assistance, someone who has been
seriously injured and cannot get help, cannot leave the automobile.
One of my dearest friends a few years ago was in an automobile
accident in the middle of the night. His car got flipped off the road,
and he landed in one of those wonderful Louisiana marshes on the side
of the road and no one could see him on the highway. He spent the night
there, crushed, bleeding, broken, until a garbage truck driver spotted
him from the highway the next morning.
He nearly died. He went through incredible, horrible operations that
might have been avoided if only E911 were in place, where he could have
picked up his mobile phone in that car, called 911, and immediately
somebody could have known where he was and an

[[Page H5184]]

ambulance could have come to his rescue.
That is what E911 is all about. E911 is literally taking the
``search'' out of ``search and rescue'' and making our mobile systems
work much more efficiently so we can, in that first incredible hour
where we can save lives and save limbs on the highway, we get to the
person who has been injured, who made the call, and we rescue them. In
that important 20 minutes when someone's child is being abducted, or a
house is being broken into and somebody sees it on the highway and
calls from a mobile unit, we can immediately identify that location.
When those kind of things are happening in our society, when we pass
a bill to facilitate this kind of technology, and we find out that the
funds that are derived from the telecommunications companies to pay for
the deployment of this service are being diverted by State and local
governments to other purposes, even when 911 is not deployed in our
communities, we should get upset.
So today I take this opportunity to congratulate the House on moving
forward on this Spectrum Relocation Fund and emphasizing how important
it is to get the ball rolling on these new technologies and also call
upon our colleagues at the State and local level to stop raiding those
E911 funds. They are set up, like this relocation fund, to get that
technology deployed.

In the E911 case, it is not just to get a technology that is going to
enrich our entertainment values or satisfy our need for information
exchanges and mobile services. In E911 it is going to mean somebody's
life. It may mean someone you love survives. It may mean my friend
would not have had to go through all of those operations and not have
had to spend the night broken and wounded in the swamps of Louisiana
waiting for rescue. That is how important it is.
So I hope, and I know my friends on the other side agree with me on
this, we need to urge our friends at the State and local governments to
take a good example from what we are doing on this relocation fund and
make sure the funds that have been allocated to deploy E911 are used to
deploy E911, not to cover deficit problems at a State or local
government or divert it to other purposes.
E911 funds ought to be used to deploy E911. Americans ought to demand
it. Any State and local government that is diverting those funds ought
to be put on notice today that you are taking a chance on somebody's
life when you do not deploy those services.
Here today, this House, this Congress, this government says that if
we have government spectrum that we can make available to important
uses like this, we are going to set up a relocation fund to make sure
nobody touches it.
Mr. Speaker, I want to thank the gentleman from Iowa (Chairman
Nussle) of the Committee on the Budget, who helped make this suspension
day possible for us by helping approve this bill. I want to thank the
chairman of the Committee on Appropriations, the gentleman from Florida
(Mr. Young), because the appropriators and budget chairmen have
surrendered the right to control this money. This money is going to be
in this fund to do what it was intended to do. They did the right thing
when they approved this legislation.
I want to again thank the Defense Department and the head of our
Committee on Armed Services, the gentleman from California (Mr.
Hunter), for working with us, because in so many cases the spectrum we
are talking about is now under the control of the Defense Department.
That is the spectrum that might make the new generation of wireless
services available for Americans.
I want to thank all of them for working with us on this legislation.
This is the best example of Democrats and Republicans, of government
agencies, of the White House, of everybody agreeing that we can do
something good for the American economy, great for telecom resurgence
in this country, great for new consumer services, great for all who
produce and develop and work for the technology companies that make
these incredible products available to us in America and to people all
over the world. This is a good day for this House and for this
government and for this country, and I urge approval of this
legislation.
Mr. MARKEY. Mr. Speaker, I yield such time as he may consume to the
gentleman from New York (Mr. Towns), the principal cosponsor of this
legislation.
Mr. TOWNS. Mr. Speaker, I rise as a cosponsor and strong supporter of
the Commercial Spectrum Enhancement Act. H.R. 1320 will allow for
deployment of advanced wireless services through relocating federally
owned spectrum to commercially designated areas and allowing the
carriers to bid on the bands of spectrum currently held by the
government. The bill would also allow NTIA and the Department of
Defense adequate flexibility to complete the relocation while being
held liable for the funds spent by the General Accounting Office.
Another important provision of the bill, Mr. Speaker, deals with the
Telecommunications Development Fund, TDF, which was founded as part of
the 1996 Telecommunications Act to ensure that entrepreneurs in rural
and underserved areas are not left behind by the digital economy.

{time} 1045

The language in H.R. 2350 will allow the TDF to extend loans to start
up technology and telecom companies in rural and underserved areas
without being held to the standards of the Fair Credit Reform Act,
which is good. Not only will this be a boon to small business, but it
will also spur innovation and investment, both of which are desperately
needed in this day and age.
I would like to again thank the gentleman from Louisiana (Chairman
Tauzin), I would like to thank the ranking member, the gentleman from
Michigan (Mr. Dingell), the lead sponsor of the bill, the gentleman
from Michigan (Mr. Upton), chairman of the subcommittee, and the
ranking member of the Subcommittee on Telecommunications and the
Internet, the gentleman from Massachusetts (Mr. Markey).
In addition, I would also like to thank Jesse McCollum from my staff,
and Will Nordwind, Howard Waltzman, and Greg Rothschild of the
committee staff, for their efforts as well.
I urge my colleagues to vote for this good government bill because it
makes a lot of sense and it is something that we should do.
Mr. MARKEY. Mr. Speaker, I yield myself 1 minute.
Mr. Speaker, I would add to that litany of saints which was just
uttered by the gentleman from New York (Mr. Towns). I would also like
to add the names of David Schooler, who is counsel to the gentleman
from Michigan (Mr. Dingell) and the Democrats on the committee, and to
Colin Crowell on my staff, who participated in the drafting of this
legislation right from its inception.
During the course of the actual drafting of the bill, his first son
Gavin was born, while balancing those two important responsibilities.
Both of them have come out extremely well over the last month. I think
our country for the future is much brighter because of the work of
Colin for our Nation over this past year.
I hope that the other Members of this great Chamber deem fit to pass
this important legislation today, which will help us become stronger
economically while not undermining the defense of our Nation at all.
Mr. Speaker, I yield back the balance of my time.
Mr. UPTON. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I urge my colleagues to support this legislation. It is
good legislation, a win-win. I look forward to getting it to the
President's desk and working with the other body as well to make sure
this bill happens.
Mr. GREEN of Texas. Mr. Speaker, I rise in support of H.R. 1320, and
I would like to thank Chairman Upton, Ranking Member Markey, Chairman
Tauzin, and Ranking Member Dingell, the dean of the House, for the
opportunity to work with them on this beneficial legislation, of which
I am proud to be an original cosponsor.
I am pleased that our House leadership has moved this bill to the
floor in a timely manner. This is good, consensus legislation.
The Commercial Spectrum Enhancement Act is a reasonable, effective
effort to allow American consumers to more quickly benefit from the
ambitious rollout of wireless technologies that America's wireless
industry is planning in the near future.

[[Page H5185]]

By freeing up federal spectrum for the market, consumers who are
coming to depend on mobile communications will greatly benefit.
Wireless technology increases economic efficiency and productivity,
increases convenience and connectivity for individuals and families,
and is ready to be a major growth sector of the technology economy.
I would like to point out some key aspects of this bill that make it
deserving of support by all in this House. Number 1 is filling national
security needs.
This bill has a sustainable and predictable funding mechanism to
ensure DOD does not have to cut corners with their communications.
Robust communications are especially critical to our modern
military's ability to get its job done, and DOD, and all other federal
agencies should be fully, 100 percent compensated for spectrum
relocation costs.
Number two is the Congressional oversight of the spectrum auction and
relocation process to be led by the Commerce Committee and the GAO.
While the Department of Defense may be the most essential federal
agency and one with a great tradition of heroism and honor--waste,
fraud, and abuse do occur there. That is no particular criticism of
DOD, just the federal government in general.
Mr. Speaker, I urge my colleagues to suspend the rules and pass this
consensus legislation.
Mr. DINGELL. Mr. Speaker, I strongly support H.R. 1320, the
``Commercial Spectrum Enhancement Act,'' to ensure that consumers
benefit from the tremendous technological advances in commercial
wireless services.
I had several concerns when this bill was first introduced, and I
commend Chairmen Tauzin and Upton for working with me to address my
concerns.
It is important that the Committee on Energy and Commerce, whenever
it creates a direct funding mechanism to achieve a policy goal, ensure
that both the Committee and the congress maintain full and effective
oversight abilities. I am comfortable that the substitute before us
achieves that goal.
First, it directs that both the Comptroller General and the Energy
and Commerce and Appropriations Committees receive reports on the
preliminary and final cost estimates for all relocations. The
Committees and the General Accounting Office (GAO) will also receive
reports on an annual basis regarding adherence to cost estimates and
proposed timelines. These materials, taken together, will permit the
Congress to closely monitor the spending inclinations of the Department
of Defense and other agencies as they relocate to new spectrum.
Also--this is particularly important--if an agency ever exceeds its
spending estimates by 10 percent, it has to justify that increase both
to the relevant Committees and to the GAO. In addition, the government
agency in question is prohibited from spending the additional request
for 45 days while the Congress examines the reason for the cost
overrun.
Thesxe provisions are not perfect, but they represent a good faith
effort on the part of the Energy and Commerce leadership to exercise
effective oversight over the relocation process. I am pleased that
Chairman Tauzin, Subcommittee Chairman Upton, Subcommittee Ranking
Member Markey and I will be working with the GAO throughout the process
to ensure that its work is thorough and its oversight is effective.
Mr. Speaker, I look forward to passing this legislation and to
bringing the next generation of wireless services to America's
consumers.
Mr. UPTON. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. LaHood). The question is on the motion
offered by the gentleman from Michigan (Mr. Upton) to suspend the rules
and pass the bill, H.R. 1320.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of
those present have voted in the affirmative.
Mr. MARKEY. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this motion will be
postponed.

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