Spectrum Management and Auction Proceeds

Current broadcast and wireless communications technology requires the assignment of specific frequencies to prevent interference among transmissions. Spectrum policy that designates auction proceeds for specific uses is a departure from this requirement. This was accomplished with the passage of the Commercial Spectrum Enhancement Act, Title II of P.L. 108-494 , in 2004. The Communications Act of 1934 was therefore amended to create a Spectrum Relocation Fund within the Treasury to hold auction proceeds as designated. Digital Television Transition and Public Safety Fund

To facilitate the clearing of spectrum for revenue-generating auctions, the 109 th Congress included measures in a budget reconciliation bill to create a fund to hold the proceeds from Congressionally mandated auctions of licenses in the 700 MHz band. 95 up to $1,500 million on coupons for households toward the purchase of TV set top boxes that can convert digital broadcast signals for display on analog sets; a grant program of up to $1,000 million to improve communications capabilities for public safety agencies; payments of up to $30 million toward the cost of temporary digital transmission equipment for broadcasters serving the Metropolitan New York area; payments of up to $10 million to help low-power television stations purchase equipment that will convert full-power broadcast signals from digital to analog; a program funded up to $65 million to reimburse low-power television stations in rural areas for upgrading equipment from analog to digital technology; up to $106 million to implement a unified national alert system and $50 million for a tsunami warning and coastal vulnerability program; contributions totaling no more than $43.5 million for a national 911 improvement program established by the ENHANCE 911 Act of 2004; and up to $30 million in support of the Essential Air Service Program. Legislation in the 110th Congress

The Public Safety Interoperability Implementation Act ( H.R. 3116 , Representative Stupak) would establish a separate fund within the Digital Television Transition and Public Safety Fund that would be used for public safety communications grants. This separate fund would receive the proceeds remaining from the auction required by the Deficit Reduction Act, after the payments required by the act had been made. The Spectrum Relocation Improvement Act of 2008 ( H.R.
Congress has acted to create two special funds to hold the revenue of certain spectrum auctions for specific purposes. These funds represent a departure from existing practice, which requires that auction proceeds be credited directly to the Treasury as income. The Deficit Reduction Act of 2005 (P.L. 109-171, Title III) required the auctioning of licenses for spectrum currently used by TV broadcasters for analog transmissions. It established the Digital Television Transition and Public Safety Fund to receive this auction revenue and use some of the proceeds for the transition to digital television, public safety communications, and other programs. The Commercial Spectrum Enhancement Act (P.L. 108-494, Title II) established a Spectrum Relocation Fund to hold the proceeds of certain spectrum auctions for the specific purpose of reimbursing federal entities for the costs of moving to new frequency assignments. The spectrum being vacated by federal users has been sold for commercial use. Passage of the Spectrum Enhancement Act set a precedent in national policy for spectrum management by linking spectrum auction proceeds to specific funding programs.
Among bills related to special funds that were introduced during the 110th Congress are: the Spectrum Relocation Improvement Act of 2008 (H.R. 7207, Inslee): the RESPONDER Act of 2008 (S. 3465, Wicker); and The Public Safety Interoperability Implementation Act (H.R. 3116, Stupak).