article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Rural Broadband Enhancement Act''. SEC. 2. LOAN PROGRAM FOR DEPLOYMENT OF BROADBAND SERVICE IN RURAL AREAS. (a) In General.--Part C of title I of the National Telecommunications and Information Administration Organization Act (47 U.S.C. 901 et seq.) is amended by adding at the end the following new section: ``SEC. 156. BROADBAND TELECOMMUNICATIONS SERVICE. ``(a) Purpose.--The purpose of this section is to make loans and other extensions of credit to provide funds for the costs of the construction, improvement, and acquisition of facilities and equipment for the provision of broadband service in eligible rural communities. ``(b) Requirement To Make Loans and Other Extensions of Credit.-- The Rural Utilities Service of the Department of Agriculture shall, in consultation with the NTIA, make loans or other extensions of credit to eligible entities to provide funds for the construction, improvement, or acquisition of facilities and equipment (including consumer equipment) for the provision of broadband service in eligible rural communities. ``(c) Eligible Entities.--An entity eligible for a loan or other extension of credit under this section is any non-Federal public or private entity, including an incorporated or limited liability entity, cooperative, non-profit organization, or limited dividend or mutual association, that submits a plan for a project meeting the requirements of subsection (e). ``(d) Broadband Service.-- ``(1) In general.--For purposes of this section, broadband service is any technology identified by the Rural Utilities Service, in consultation with the NTIA, as having the capacity to transmit data so as to enable a subscriber to such service to originate and receive high-quality voice, data, graphics, or video. ``(2) Modification.--The NTIA shall, from time to time as advances in technology so warrant, review and recommend modifications of rate-of-data transmission criteria for purposes of the identification of technologies under paragraph (1). ``(e) Project Requirements.-- ``(1) In general.--A project meeting the requirements of this subsection is any project determined to have the capability-- ``(A) to deliver broadband service; and ``(B) to make access to broadband service generally available throughout an eligible rural community. ``(2) Additional considerations.--For purposes of determining whether or not to make a loan or other extension of credit for a project under this section, the following matters shall also be taken into consideration: ``(A) The extent to which the area to be served by the project is unserved or underserved by broadband service. ``(B) The size of the area to be served by the project. ``(C) The potential number of subscribers to the broadband service available through the project. ``(3) Technological neutrality.--For purposes of determining whether or not to make a loan or other extension of credit for a project under this section, the type of technology proposed to be employed under the project may not be taken into consideration. ``(f) Terms and Conditions.--A loan or other extension of credit under this section shall-- ``(1) be made available in accordance with the requirements of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.); ``(2) bear interest at an annual rate of not more than 2 percent per annum; and ``(3) have a term not to exceed the useful life of the assets constructed, improved, or acquired with the proceeds of the loan or extension of credit. ``(g) Limitation on Value of Loans and Credit.--The aggregate value of all loans and other extensions of credit made under this section shall not exceed $3,000,000,000. ``(h) Eligible Rural Community Defined.--In this section, the term `eligible rural community' means any incorporated or unincorporated place that-- ``(1) has not more than 20,000 inhabitants, based on the most recent available population statistics of the Bureau of the Census; and ``(2) is not located in an area designated as a Metropolitan Area by the Office of Management and Budget. ``(i) Sunset.-- ``(1) In general.--No loan or other extension of credit may be made under this section after September 30, 2006. ``(2) Construction.--Paragraph (1) shall not affect the validity of any loan or extension of credit made under this section before the date specified in that paragraph.''. (b) Authorization of Appropriations.--There is hereby authorized to be appropriated for the Department of Commerce such sums as may be necessary to cover the cost, as defined in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a), of loans and other extensions of credit made under section 156 of the National Telecommunications and Information Administration Organization Act, as added by subsection (a).
summary: Rural Broadband Enhancement Act - Amends the National Telecommunications and Information Administration Organization Act to direct the Rural Utilities Service of the Department of Agriculture to make loans or other extensions of credit to eligible entities (any non-Federal public or private entity that submits a qualifying project) to provide funds for the construction, improvement, or acquisition of facilities and equipment for the provision of broadband telecommunications service in eligible rural communities (non-metropolitan areas with no more than 20,000 inhabitants). Prohibits any such loan or credit extension after September 20, 2006.