Lawmakers Eye Post-Recess Spectrum Auction Reauthorization Act Push

House Communications Subcommittee leaders told us they plan to continue actively pushing for floor action on the Commerce Committee-approved Spectrum Auction Reauthorization Act (HR-3565) when the chamber returns Sept. 12, despite the measure facing continued opposition from some Senate Republicans. House Commerce leaders tried and failed to get a floor vote on the measure before the August recess (see 2307270063). Lawmakers believe the outcome of a pending DOD study on repurposing the 3.1-3.45 GHz band may affect the prospects for reaching a deal to pass a spectrum legislative package that includes language from HR-3565 and other measures (see 2308070001).

FCC Chairwoman Jessica Rosenworcel marked the 30th anniversary Thursday of Congress’ 1993 first grant of the auction mandate by again pressing lawmakers to restore the FCC's auction authority, which expired in March amid opposition from Sen. Mike Rounds, R-S.D., to even a short-term renewal (see 2303090074). “FCC spectrum auctions have fueled American growth for three decades,” Rosenworcel said. “The agency has held 100 auctions and, in the process, raised more than $233 billion” for the U.S. Treasury. “It’s not just that these auctions are a good deal; they are a big reason why” the U.S. “leads the world in wireless innovation,” she said: “They are also an essential part of our economic and national security. The current lapse in spectrum auction authority is unprecedented and it puts this leadership at risk. With the” Nov. 20-Dec. 15 World Radiocommunication Conference “now only months away, it is vital that this authority is reauthorized as soon as possible.”

“When we get back” in September, “it’s going to be absolutely essential that we get this done” in the House since the U.S. is “falling way behind” on 5G development because of the FCC authority’s continued lapse, said House Communications Chairman Bob Latta, R-Ohio. He doesn’t believe a short-term renewal like the ones lawmakers previously explored is now feasible due to how long Congress has already allowed the mandate to lapse. “Short-term isn’t getting us anywhere anyway” and a longer-term extension like HR-3565’s proposal for a reauthorization through Sept. 30, 2026 (see 2305240069), would provide more certainty for all stakeholders, Latta said.

“We’re very close” to a deal despite the slow pace of negotiations over the course of this year, said House Communications ranking member Doris Matsui, D-Calif. She said she hopes House passage on HR-3565 will help speed the pace of talks. “My hope is that during the recess, the White House will get more involved” in restoring the FCC’s auction authority, Matsui said: “Everybody understands how important this is, especially given the WRC is coming up,” so “we need to strategize on how we move forward together instead of everybody talking within their particular spaces.”

“I know everyone’s still pushing” for a spectrum deal, “but the clock is ticking,” especially due to the implications of the FCC not having auction authority before WRC, said Senate Communications Chairman Ben Ray Lujan, D-N.M. House Commerce Chair Cathy McMorris Rodgers, R-Wash., and other chamber leaders “should keep pushing” for floor action on HR-3565 because “the U.S. cannot get this wrong.”

CBO Analysis

A Congressional Budget Office scoring report on HR-3565 may impact the measure’s prospects, said communications policy-focused lobbyists. CBO found in late July HR-3565 will reduce the federal deficit by $1.16 billion through FY 2033. The office said the measure’s renewal of the FCC’s mandate would generate $10.6 billion over that period even though it “cannot predict which spectrum bands would be auctioned.” An auction of lower 3 GHz band spectrum would generate $15 billion “based on expected industry demand,” the office said.

CBO cautioned those spectrum sale proceeds estimates “are subject to substantial uncertainty,” including “costs to clear or share currently encumbered spectrum.” HR-3565 allocates $25 million from the Spectrum Relocation Fund for lower 3 GHz costs. Some DOD backers critical of a large-scale sale of lower 3 GHz frequencies believe costs to move military systems off the band could be substantially higher. HR-3565 also allocates $120 million from the fund to NTIA for a proposed incumbent-informing capability to curb interference on shared bands.

CBO estimates HR-3565’s formula for allocating the proposed auction revenue would set aside $12.4 billion for “direct spending,” including equal $4.6 billion outlays for next-generation 911 tech upgrades and middle-mile projects previously included in the Infrastructure Investment and Jobs Act. The measure’s language would max out proceeds allocated for NG-911 spending at $14.8 billion. CBO also notes the measure would authorize a $3.08 billion loan to bridge the FCC’s Secure and Trusted Communications Networks Reimbursement Program funding shortfall and $200 million in borrowing for a proposed NTIA minority serving institutions program.

The National Emergency Number Association is “not per se” concerned by CBO’s estimate of how much revenue would actually go to NG-911 via HR-3565 because it's still just a “projection” and the discussion about spectrum band sales a final bill would authorize “hasn’t entirely concluded,” said Government Affairs Director Jonathan Gilad in an interview. “I don’t foresee it being too much of an obstacle,” but the group is still “taking a deeper dive into” the analysis. There has been some interest in “reallocating some of the unused” COVID-19 aid “to help offset” the rip and replace funding gap, which “may, in fact, free up auction revenues” for NG-911, he said.

'Tooth-and-Nail Fight'

NENA is still trying to educate Senate Commerce Committee ranking member Ted Cruz, R-Texas, on the need for a dedicated NG-911 funding source but his opposition “isn’t to” the technology but rather “using spectrum auction revenue” to pay for it, Gilad said. “I don’t believe it’s a stumbling block.” Gilad noted Sen. Amy Klobuchar, D-Minn., refiled a Senate version of the Next Generation 911 Act (S-2712) in late July that could also move independently of a broader package. S-2712 and House version HR-1784 allocate $15 billion for NG-911 (see 2303240067).

Digital Progress Institute President Joel Thayer expects a “tooth-and-nail fight” on a spectrum package. Congress would likely need to include HR-3565 or other spectrum language in “a larger spending package at the end of the year, given that there are just so many other issues taking priority,” he said: Senate Democrats are more open to voting for the bill because it proposes allocating up to $5 billion for middle-mile, “which may change the calculus a bit.” Cruz and other Republicans have cited the middle-mile funding as a hurdle to reaching a deal (see 2306130040).

“There is too much at stake for the auction authority not to be restored soon, perhaps in connection with whatever legislation” Congress passes to avert a government shutdown, emailed Free State Foundation President Randolph May.

The FCC could start to prepare for an auction as a way to pressure lawmakers to act “and then tell Congress it is urgent to redo the auction authority, as every day that goes without the authority is a delay in putting spectrum to use and in bringing in more money for the Treasury,” said New Street’s Blair Levin. “I have not heard of any industry types saying they want an auction in the near future,” but they all want Congress to “eventually” renew the mandate.