Title VI — Rural Development

“SEC. 342. REFINANCING OF CERTAIN RURAL HOSPITAL DEBT.

“Assistance under section 306(a) for a community facility, or under section 310B, may include the refinancing of a debt obligation of a rural hospital as an eligible loan or loan guarantee purpose if the assistance would help preserve access to a health service in a rural community, meaningfully improve the financial position of the hospital, and otherwise meet the financial feasibility and adequacy of security requirements of the Rural Development Agency.”

“SEC. 602. EXPANSION OF MIDDLE MILE INFRASTRUCTURE INTO RURAL AREAS.

“(a) Purpose.—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) Middle Mile Infrastructure.—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) Grants, Loans, and Loan Guarantees.—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) Eligibility.—

“(1) Eligible applicants.—

“(A) In general.—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) Additional end user broadband programs.—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 title to provide for retail broadband service to end users.

“(2) Eligible service territories.—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) Eligible projects.—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 601(e)(4) for the residents within the proposed service territory.

“(e) Limitation on Grants.—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) Terms, Conditions, and Adequacy of Security.—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) Authorization of Appropriations.—There is authorized to be appropriated to carry out this section $10,000,000 for each of fiscal years 2018 through 2023.”

“SEC. 604. COMMUNITY CONNECT GRANT PROGRAM.

“(a) Definitions.—In this section:

“(1) Eligible broadband service.—The term ‘eligible broadband service’ means broadband service that has the capability to transmit data at a speed specified by the Secretary, which may not be less than the applicable minimum download and upload speeds established by the Federal Communications Commission in defining the term ‘advanced telecommunications capability’ for purposes of section 706 of the Telecommunications Act of 1996 (47 U.S.C. 1302).

“(2) Eligible service area.—The term ‘eligible service area’ means an area in which broadband service capacity is less than—

“(A) a 10-Mbps downstream transmission capacity; and

“(B) a 1-Mbps upstream transmission capacity.

“(3) Eligible entity.—

“(A) In general.—The term ‘eligible entity’ means a legally organized entity that—

“(i) is—

“(I) an incorporated organization;

“(II) an Indian Tribe or Tribal organization;

“(III) a State;

“(IV) a unit of local government; or

“(V) any other legal entity, including a cooperative, a private corporation, or a limited liability company, that is organized on a for-profit or a not-for-profit basis; and

“(ii) has the legal capacity and authority to enter into a contract, to comply with applicable Federal laws, and to own and operate broadband facilities, as proposed in the application submitted by the entity for a grant under the Program.

“(B) Exclusions.—The term ‘eligible entity’ does not include—

“(i) an individual; or

“(ii) a partnership.

“(4) Rural area.—The term ‘rural area’ has the meaning given the term in section 601(b)(3)(A).

“(b) Establishment.—The Secretary shall establish a program, to be known as the ‘Community Connect Grant Program’, to provide grants to eligible entities to finance broadband transmission in rural areas.

“(c) Eligible Projects.—An eligible entity that receives a grant under the Program shall use the grant to carry out a project that—

“(1) provides eligible broadband service to, within the proposed eligible service area described in the application submitted by the eligible entity—

“(A) each essential community facility as defined pursuant to section 306(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)); and

“(B) any required facilities necessary to offer that eligible broadband service to each residential and business customer within such proposed eligible service area; and

“(2) for not less than 2 years—

“(A) furnishes free eligible broadband service to a community center described in subsection (d)(1)(B);

“(B) provides not fewer than 2 computer access points for that free eligible broadband service; and

“(C) covers the cost of bandwidth to provide free eligible broadband service to each essential community facility that requests broadband services within the proposed eligible service area described in the application submitted by the eligible entity.

“(d) Uses of Grant Funds.—

“(1) In general.—An eligible entity that receives a grant under the Program may use the grant for—

“(A) the construction, acquisition, or leasing of facilities (including spectrum), land, or buildings to deploy eligible broadband service; and

“(B) the improvement, expansion, construction, or acquisition of a community center within the proposed eligible service area described in the application submitted by the eligible entity.

“(2) Ineligible uses.—An eligible entity that receives a grant under the Program shall not use the grant for—

“(A) the duplication of any existing eligible broadband service provided by another entity in the eligible service area; or

“(B) operating expenses, except as provided in—

“(i) subsection (c)(2)(C) with respect to free eligible broadband service; and

“(ii) paragraph (1)(A) with respect to spectrum.

“(3) Free access for community centers.—Of the amounts provided to an eligible entity under a grant under the Program, the eligible entity shall use to carry out paragraph (1)(B) not greater than the lesser of—

“(A) 10 percent; and

“(B) $150,000.

“(e) Matching Funds.—

“(1) In general.—An eligible entity that receives a grant under the Program shall provide a cash contribution in an amount that is not less than 15 percent of the amount of the grant.

“(2) Requirements.—A cash contribution described in paragraph (1)—

“(A) shall be used solely for the project for which the eligible entity receives a grant under the Program; and

“(B) shall not include any Federal funds, unless a Federal statute specifically provides that those Federal funds may be considered to be from a non-Federal source.

“(f) Applications.—

“(1) In general.—To be eligible to receive a grant under the Program, an eligible entity shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require.

“(2) Requirement.—An application submitted by an eligible entity under paragraph (1) shall include documentation sufficient to demonstrate the availability of funds to satisfy the requirement of subsection (e).

“(g) Authorization of Appropriations.—There is authorized to be appropriated to carry out this section $50,000,000 for each of fiscal years 2019 through 2023.”

“SEC. 606. DEFAULT AND DEOBLIGATION; DEFERRAL.

“(a) Default and Deobligation.—In addition to other authority under applicable law, the Secretary shall establish written procedures for all broadband programs so that, to the maximum extent practicable, the programs are administered to—

“(1) recover funds from loan and grant defaults;

“(2) deobligate any awards, less allowable costs that demonstrate an insufficient level of performance (including metrics determined by the Secretary) or fraudulent spending, to the extent funds with respect to the award are available in the account relating to the program established by this title;

“(3) award those funds, on a competitive basis, to new or existing applicants consistent with this title; and

“(4) minimize overlap among the programs.

“(b) Deferral Period.—In determining the terms and conditions of assistance provided under this title, the Secretary may establish a deferral period of not shorter than the buildout period established for the project involved in order to support the financial feasibility and long-term sustainability of the project.”

“TITLE VII— GENERAL AND ADMINISTRATIVE PROVISIONS

“SEC. 701. PUBLIC NOTICE, ASSESSMENTS, AND REPORTING REQUIREMENTS.

“(a) Notice Requirements.—The Secretary shall promptly make available to the public, a fully searchable database on the website of the Rural Utilities Service that contains information on all retail broadband projects provided assistance or for which assistance is sought that are administered by the Secretary, including, at a minimum—

“(1) notice of each application for assistance describing the application, including—

“(A) the identity of the applicant;

“(B) a description of each application, including—

“(i) a map of the proposed service area of the applicant; and

“(ii) the amount and type of support requested by each applicant;

“(C) the status of each application; and

“(D) the estimated number and proportion of service points in the proposed service territory without fixed broadband service, whether terrestrial or wireless;

“(2) notice of each entity receiving assistance administered by the Secretary, including—

“(A) the name of the entity;

“(B) the type of assistance being received;

“(C) the purpose for which the entity is receiving the assistance; and

“(D) each annual report submitted under subsection (c) (redacted to protect any proprietary information in the report); and

“(3) such other information as is sufficient to allow the public to understand assistance provided.

“(b) Service Area Assessment.—

“(1) In general.—The Secretary shall, with respect to a retail broadband application for assistance, which is outside an area in which the applicant receives Federal universal service support—

“(A) after giving notice required by subsection (a)(1), afford service providers not less than 45 days to voluntarily submit information required by the Secretary onto the agency’s online mapping tool with respect to areas that are coterminous with the proposed service area of the application (or any parts thereof), such that the Secretary may assess whether the application submitted meets the eligibility requirements under this title; and

“(B) if no broadband service provider submits information under paragraph (1), consider the number of providers in the proposed service area to be established by using any other data regarding the availability of broadband service that the Secretary may collect or obtain through reasonable efforts.

“(2) Assessment of unserved communities.—In the case of an application given the highest priority under section 601(c)(2)(A)(i), the Secretary shall confirm that each unserved rural community identified in the application is eligible for funding by—

“(A) conferring with, and obtaining data from, the Chair of the Federal Communications Commission and the Administrator of the National Telecommunications and Information Administration with respect to the service level in the service area proposed in the application;

“(B) reviewing any other source that is relevant to service data validation, as determined by the Secretary; and

“(C) performing site-specific testing to verify the unavailability of any retail broadband service.

“(3) FOIA exemption.—For purposes of section 552 of title 5, United States Code, information received by the Secretary pursuant to paragraph (1)(A) of this subsection shall be exempt from disclosure pursuant to subsection (b)(2)(B) of such section 552.

“(c) Reporting Broadband Improvements to USDA.—

“(1) In general.—The Secretary shall require any entity receiving assistance for a project which provides retail broadband service to submit an annual report for 3 years after completion of the project, in a format specified by the Secretary, that describes—

“(A) the use by the entity of the assistance, including new equipment and capacity enhancements that support high-speed broadband access for educational institutions, health care providers, and public safety service providers (including the estimated number of end users who are currently using or forecasted to use the new or upgraded infrastructure); and

“(B) the progress towards fulfilling the objectives for which the assistance was granted, including—

“(i) the number of service points that will receive new broadband service, existing network service improvements, and facility upgrades resulting from the Federal assistance;

“(ii) the speed of broadband service;

“(iii) the average price of the most subscribed tier of broadband service in a proposed service area;

“(iv) new subscribers generated from the project; and

“(v) any metrics the Secretary determines to be appropriate.

“(2) Additional reporting.—

“(A) Broadband buildout data.—As a condition of receiving assistance under section 601, a recipient of assistance shall provide to the Secretary complete, reliable, and precise geolocation information that indicates the location of new broadband service that is being provided or upgraded within the service territory supported by the grant, loan, or loan guarantee not later than 30 days after the earlier of—

“(i) the date of completion of any project milestone established by the Secretary; or

“(ii) the date of completion of the project.

“(B) Reporting for middle mile projects.—The Secretary shall require any entity receiving assistance under section 602 to submit a semiannual report for 5 years after completion of the project, in a format specified by the Secretary, that describes—

“(i) the use by the entity of the assistance to construct, improve, or acquire middle mile infrastructure;

“(ii) the progress towards meeting the end-user connection plan submitted under section 602(d)(1)(A)(iii); and

“(iii) any additional metrics the Secretary determines to be appropriate.

“(C) Additional reporting.—The Secretary may require any additional reporting and information by any recipient of any broadband assistance under this act so as to ensure compliance with this section.

“(d) Annual Report on Broadband Projects and Service to Congress.—Each year, the Secretary shall submit to the Congress a report that describes the extent of participation in the broadband assistance programs administered by the Secretary for the preceding fiscal year, including a description of—

“(1) the number of applications received and accepted, including any special loan terms or conditions for which the Secretary provided additional assistance to unserved areas;

“(2)

(A) the communities proposed to be served in each application submitted for the fiscal year; and

“(B) the communities served by projects funded by broadband assistance programs;

“(3) the period of time required to approve each loan application under broadband programs;

“(4) any outreach activities carried out by the Secretary to encourage entities in rural areas without broadband service to submit applications under this Act;

“(5) the method by which the Secretary determines that a service enables a subscriber to originate and receive high-quality voice, data, graphics, and video for purposes of providing broadband service under this Act;

“(6) each broadband service, including the type and speed of broadband service, for which assistance was sought, and each broadband service for which assistance was provided, under this Act; and

“(7) the overall progress towards fulfilling the goal of improving the quality of rural life by expanding rural broadband access, as demonstrated by metrics, including—

“(A) the number of residences and businesses receiving new broadband services;

“(B) network improvements, including facility upgrades and equipment purchases;

“(C) average broadband speeds and prices on a local and statewide basis;

“(D) any changes in broadband adoption rates; and

“(E) any specific activities that increased high speed broadband access for educational institutions, health care providers, and public safety service providers.

“(e) Limitations on Reservation of Funds.—Not less than 3 but not more than 5 percent of program level amounts available pursuant to amounts appropriated to carry out title VI shall be set aside to be used for—

“(1) conducting oversight under such title;

“(2) implementing accountability measures and related activities authorized under such title; and

“(3) carrying out this section.”

“SEC. 702. ENVIRONMENTAL REVIEWS.

“The Secretary may obligate, but not disperse, funds under this Act before the completion of otherwise required environmental, historical, or other types of reviews if the Secretary determines that a subsequent site-specific review shall be adequate and easily accomplished for the location of towers, poles, or other broadband facilities in the service area of the borrower without compromising the project or the required reviews.”

“SEC. 703. USE OF LOAN PROCEEDS TO REFINANCE LOANS FOR DEPLOYMENT OF BROADBAND SERVICE.

“Notwithstanding any other provision of this Act, the proceeds of any loan made or guaranteed by the Secretary under this Act may be used by the recipient of the loan for the purpose of refinancing an outstanding obligation of the recipient on another telecommunications loan made under this Act, or on any other loan if that loan would have been for an eligible telecommunications purpose under this Act.”

“SEC. 379H. STRATEGIC ECONOMIC AND COMMUNITY DEVELOPMENT.

“(a) In General.—In the case of any program under this title or administered by the Secretary, acting through the rural development mission area, as determined by the Secretary (referred to in this section as a ‘covered program’), the Secretary shall give priority to an application for a project that, as determined and approved by the Secretary—

“(1) meets the applicable eligibility requirements of this title or the other applicable authorizing law;

“(2) will be carried out in a rural area; and

“(3) supports the implementation of a strategic community investment plan described in subsection (d) on a multisectoral and multijurisdictional basis, to include considerations for improving and expanding broadband services as needed.

“(b) Reserve.—

“(1) In general.—Subject to paragraph (2), the Secretary shall reserve not more than 15 percent of the funds made available for a fiscal year for covered programs for projects that support the implementation of a strategic community investment plan described in subsection (d) on a multisectoral and multijurisdictional basis.

“(2) Period.—Any funds reserved under paragraph (1) shall only be reserved for the 1-year period beginning on the date on which the funds were first made available, as determined by the Secretary.

“(c) Approved Applications.—

“(1) In general.—Subject to paragraph (2), any applicant who submitted an application under a covered program that was approved before the date of enactment of this section may amend the application to qualify for the funds reserved under subsection (b).

“(2) Rural utilities.—Any applicant who submitted an application under paragraph (2), (14), or (24) of section 306(a), or section 306A or 310B(b), that was approved by the Secretary before the date of enactment of this section shall be eligible for the funds reserved under subsection (b)—

“(A) on the same basis as an application submitted under this section; and

“(B) until September 30, 2019.

“(d) Strategic Community Investment Plans.—

“(1) In general.—The Secretary shall provide assistance to rural communities in developing strategic community investment plans.

“(2) Plans.—A strategic community investment plan described in paragraph (1) shall include—

“(A) a variety of activities designed to facilitate the vision of a rural community for the future, including considerations for improving and expanding broadband services as needed;

“(B) participation by multiple stakeholders, including local and regional partners;

“(C) leverage of applicable regional resources;

“(D) investment from strategic partners, such as—

“(i) private organizations;

“(ii) cooperatives;

“(iii) other government entities;

“(iv) Indian Tribes; and

“(v) philanthropic organizations;

“(E) clear objectives with the ability to establish measurable performance metrics;

“(F) action steps for implementation; and

“(G) any other elements necessary to ensure that the plan results in a comprehensive and strategic approach to rural economic development, as determined by the Secretary.

“(3) Coordination.—The Secretary shall coordinate with Indian Tribes and local, State, regional, and Federal partners to develop strategic community investment plans under this subsection.

“(4) Authorization of appropriations.—There is authorized to be appropriated to carry out this subsection $5,000,000 for each of fiscal years 2019 through 2023, to remain available until expended.”

“(f) Access to Information to Verify Income for Participants in Certain Rural Housing Programs.—The Secretary and the designees of the Secretary are hereby granted the same access to information and subject to the same requirements applicable to the Secretary of Housing and Urban Development as provided in section 453 of the Social Security Act (42 U.S.C. 653) and section 6103(l)(7)(D)(ix) of the Internal Revenue Code of 1986 (26 U.S.C. 6103(l)(7)(D)(ix)) to verify income for individuals participating in sections 502, 504, 521, and 542 of the Housing Act of 1949 (42 U.S.C. 1472, 1474, 1490a, and 1490r), notwithstanding section 453(l) of the Social Security Act.”

“SEC. 368. RURAL BUSINESS-COOPERATIVE SERVICE PROGRAMS TECHNICAL ASSISTANCE AND TRAINING.

“(a) In General.—The Secretary may make grants to public bodies, private nonprofit corporations, economic development authorities, institutions of higher education, federally recognized Indian Tribes, and rural cooperatives for the purpose of providing or obtaining technical assistance and training to support funding applications for programs carried out by the Secretary, acting through the Administrator of the Rural Business-Cooperative Service.

“(b) Purposes.—A grant under subsection (a) may be used—

“(1) to assist communities in identifying and planning for business and economic development needs;

“(2) to identify public and private resources to finance business and small and emerging business needs;

“(3) to prepare reports and surveys necessary to request financial assistance for businesses in rural communities; and

“(4) to prepare applications for financial assistance.

“(c) Selection Priority.—In selecting recipients of grants under this section, the Secretary shall give priority to grants serving persistent poverty counties and high poverty communities, as determined by the Secretary.

“(d) Funding.—

“(1) In general.—There is authorized to be appropriated to carry out this section $5,000,000 for each of fiscal years 2019 through 2023, to remain available until expended.

“(2) Availability.—Any amounts authorized to be appropriated under paragraph (1) for any fiscal year that are not appropriated for that fiscal year may be appropriated for the immediately succeeding fiscal year.”

“SEC. 379I. RURAL INNOVATION STRONGER ECONOMY GRANT PROGRAM.

“(a) Definitions.—In this section:

“(1) Eligible entity.—The term ‘eligible entity’ means a rural jobs accelerator partnership established after the date of enactment of this section that—

“(A) organizes key community and regional stakeholders into a working group that—

“(i) focuses on the shared goals and needs of the industry clusters that are objectively identified as existing, emerging, or declining;

“(ii) represents a region defined by the partnership in accordance with subparagraph (B);

“(iii) includes 1 or more representatives of—

“(I) an institution of higher education (as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001));

“(II) a private entity; or

“(III) a government entity; and

“(iv) has, as a lead applicant—

“(I) a District Organization (as defined in section 300.3 of title 13, Code of Federal Regulations (or a successor regulation));

“(II) an Indian tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304)), or a consortium of Indian tribes;

“(III) a State or a political subdivision of a State, including a special purpose unit of a State or local government engaged in economic development activities, or a consortium of political subdivisions;

“(IV) an institution of higher education (as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001)) or a consortium of institutions of higher education; or

“(V) a public or private nonprofit organization; and

“(B) subject to approval by the Secretary, may—

“(i) serve a region that is—

“(I) a single jurisdiction; or

“(II) if the region is a rural area, multijurisdictional; and

“(ii) define the region that the partnership represents, if the region—

“(I) is large enough to contain critical elements of the industry cluster prioritized by the partnership;

“(II) is small enough to enable close collaboration among members of the partnership;

“(III) includes a majority of communities that are located in—

“(aa) a nonmetropolitan area that qualifies as a low-income community (as defined in section 45D(e) of the Internal Revenue Code of 1986); and

“(bb) an area that has access to or has a plan to achieve broadband service (within the meaning of title VI of the Rural Electrification Act of 1936 (7 U.S.C. 950bb et seq.)); and

“(IV)

(aa) has a population of 50,000 or fewer inhabitants; or

“(bb) for a region with a population of more than 50,000 inhabitants, is the subject of a positive determination by the Secretary with respect to a rural-in-character petition, including such a petition submitted concurrently with the application of the partnership for a grant under this section.

“(2) Industry cluster.—The term ‘industry cluster’ means a broadly defined network of interconnected firms and supporting institutions in related industries that accelerate innovation, business formation, and job creation by taking advantage of assets and strengths of a region in the business environment.

“(3) High-wage job.—The term ‘high-wage job’ means a job that provides a wage that is greater than the median wage for the applicable region, as determined by the Secretary.

“(4) Jobs accelerator.—The term ‘jobs accelerator’ means a jobs accelerator center or program located in or serving a low-income rural community that may provide co-working space, in-demand skills training, entrepreneurship support, and any other services described in subsection (d)(1)(B).

“(5) Small and disadvantaged business.—The term ‘small and disadvantaged business’ has the meaning given the term ‘small business concern owned and controlled by socially and economically disadvantaged individuals’ in section 8(d)(3)(C) of the Small Business Act (15 U.S.C. 637(d)(3)(C)).

“(b) Establishment.—

“(1) In general.—The Secretary shall establish a grant program under which the Secretary shall award grants, on a competitive basis, to eligible entities to establish jobs accelerators, including related programming, that—

“(A) improve the ability of distressed rural communities to create high-wage jobs, accelerate the formation of new businesses with high-growth potential, and strengthen regional economies, including by helping to build capacity in the applicable region to achieve those goals; and

“(B) help rural communities identify and maximize local assets and connect to regional opportunities, networks, and industry clusters that demonstrate high growth potential.

“(2) Cost-sharing.—

“(A) In general.—The Federal share of the cost of any activity carried out using a grant made under paragraph (1) shall be not greater than 80 percent.

“(B) In-kind contributions.—The non-Federal share of the total cost of any activity carried out using a grant made under paragraph (1) may be in the form of donations or in-kind contributions of goods or services fairly valued.

“(3) Selection criteria.—In selecting eligible entities to receive grants under paragraph (1), the Secretary shall consider—

“(A) the commitment of participating core stakeholders in the jobs accelerator partnership, including a demonstration that—

“(i) investment organizations, including venture development organizations, venture capital firms, revolving loan funders, angel investment groups, community lenders, community development financial institutions, rural business investment companies, small business investment companies (as defined in section 103 of the Small Business Investment Act of 1958 (15 U.S.C. 662)), philanthropic organizations, and other institutions focused on expanding access to capital, are committed partners in the jobs accelerator partnership and willing to potentially invest in projects emerging from the jobs accelerator; and

“(ii) institutions of higher education, applied research institutions, workforce development entities, and community-based organizations are willing to partner with the jobs accelerator to provide workers with skills relevant to the industry cluster needs of the region, with an emphasis on the use of on-the-job training, registered apprenticeships, customized training, classroom occupational training, or incumbent worker training;

“(B) the ability of the eligible entity to provide the non-Federal share as required under paragraph (2);

“(C) the identification of a targeted industry cluster;

“(D) the ability of the partnership to link rural communities to markets, networks, industry clusters, and other regional opportunities and assets;

“(E) other grants or loans of the Secretary and other Federal agencies that the jobs accelerator would be able to leverage; and

“(F) prospects for the proposed center and related programming to have sustainability beyond the full maximum length of assistance under this subsection, including the maximum number of renewals.

“(4) Grant term and renewals.—

“(A) Term.—The initial term of a grant under paragraph (1) shall be 4 years.

“(B) Renewal.—The Secretary may extend the term of a grant under paragraph (1) for an additional period of not longer than 2 years if the Secretary is satisfied, using the evaluation under subsection (e)(2), that the grant recipient has successfully established a jobs accelerator and related programming.

“(5) Geographic distribution.—To the maximum extent practicable, the Secretary shall provide grants under paragraph (1) for jobs accelerators and related programming in not fewer than 25 States at any time.

“(c) Grant Amount.—A grant awarded under subsection (b) may be in an amount equal to—

“(1) not less than $500,000; and

“(2) not more than $2,000,000.

“(d) Use of Funds.—

“(1) In general.—Subject to paragraph (2), funds from a grant awarded under subsection (b) may be used—

“(A) to construct, purchase, or equip a building to serve as an innovation center;

“(B) to support programs to be carried out at, or in direct partnership with, the jobs accelerator that support the objectives of the jobs accelerator, including—

“(i) linking rural communities and entrepreneurs to markets, networks, industry clusters, and other regional opportunities to support high-wage job creation, new business formation, business expansion, and economic growth;

“(ii) integrating small businesses into a supply chain;

“(iii) creating or expanding commercialization activities for new business formation;

“(iv) identifying and building assets in rural communities that are crucial to supporting regional economies;

“(v) facilitating the repatriation of high-wage jobs to the United States;

“(vi) supporting the deployment of innovative processes, technologies, and products;

“(vii) enhancing the capacity of small businesses in regional industry clusters, including small and disadvantaged businesses;

“(viii) increasing United States exports and business interaction with international buyers and suppliers;

“(ix) developing the skills and expertise of local workforces, entrepreneurs, and institutional partners to meet the needs of employers and prepare workers for high-wage jobs in the identified industry clusters, including the upskilling of incumbent workers;

“(x) ensuring rural communities have the capacity and ability to carry out projects relating to housing, community facilities, infrastructure, or community and economic development to support regional industry cluster growth; or

“(xi) any other activities that the Secretary may determine to be appropriate.

“(2) Requirement.—

“(A) In general.—Subject to subparagraph (B), not more than 10 percent of a grant awarded under subsection (b) shall be used for indirect costs associated with administering the grant.

“(B) Increase.—The Secretary may increase the percentage described in subparagraph (A) on a case-by-case basis.

“(e) Annual Activity Report and Evaluation.—Not later than 1 year after receiving a grant under this section, and annually thereafter for the duration of the grant, an eligible entity shall—

“(1) report to the Secretary on the activities funded with the grant; and

“(2)

(A) evaluate the progress that the eligible entity has made toward the strategic objectives identified in the application for the grant; and

“(B) measure that progress using performance measures during the project period, which may include—

“(i) high-wage jobs created;

“(ii) high-wage jobs retained;

“(iii) private investment leveraged;

“(iv) businesses improved;

“(v) new business formations;

“(vi) new products or services commercialized;

“(vii) improvement of the value of existing products or services under development;

“(viii) regional collaboration, as measured by such metrics as—

“(I) the number of organizations actively engaged in the industry cluster;

“(II) the number of symposia held by the industry cluster, including organizations that are not located in the immediate region defined by the partnership; and

“(III) the number of further cooperative agreements;

“(ix) the number of education and training activities relating to innovation;

“(x) the number of jobs relocated from outside of the United States to the region;

“(xi) the amount and number of new equity investments in industry cluster firms;

“(xii) the amount and number of new loans to industry cluster firms;

“(xiii) the dollar increase in exports resulting from the project activities;

“(xiv) the percentage of employees for which training was provided;

“(xv) improvement in sales of participating businesses;

“(xvi) improvement in wages paid at participating businesses;

“(xvii) improvement in income of participating workers; or

“(xviii) any other measure the Secretary determines to be appropriate.

“(f) Authorization of Appropriations.—There is authorized to be appropriated to carry out this section $10,000,000 for each of fiscal years 2019 through 2023.”

“SEC. 319. CYBERSECURITY AND GRID SECURITY IMPROVEMENTS.

“(a) Definition of Cybersecurity and Grid Security Improvements.—In this section, the term ‘cybersecurity and grid security improvements’ means investment in the development, expansion, and modernization of rural utility infrastructure that addresses known cybersecurity and grid security risks.

“(b) Loans and Loan Guarantees.—The Secretary may make or guarantee loans under this title and title I for cybersecurity and grid security improvements.”