i2Coalition April 2024 Legislative Update

Your update on important Internet policy issues

OUTLOOK

After months of negotiations, Congress passed and President Biden signed into law a supplemental $95 billion foreign aid package providing funding to Ukraine, Israel, and Taiwan. The package also imposed new sanctions against Russia, China, and Iran. The national security “sidecar” portion of the package added provisions that would force TikTok’s Chinese parent company ByteDance to divest its U.S. operations within one year or face a ban of the app in the U.S. The bill, now enacted into law, included the Protecting Americans Data from Foreign Adversaries Act, which bans the practice of selling Americans’ sensitive data to foreign adversaries. In mid-April the Senate briefly stopped legislative work to meet its constitutional duty to conduct impeachment proceedings against Homeland Security Secretary Alejandro Mayorkas following the House’s delivery of articles of impeachment to the upper chamber. Senate Democrat leaders opted not to hold a full trial and dismissed the impeachment articles by majority vote. In quickly ending the proceedings, Senate Democrats contended that the behavior Mayorkas was accused of (related to border security and immigration) by the House Republicans does not qualify as “high crimes and misdemeanors,” the legal threshold for impeachment. With legislative work completed both on the foreign aid bill and on a 2-year reauthorization of Section 702 of the Foreign Intelligence Surveillance Act, Congress shifted its focus in late April to FAA reauthorization and the FY 2025 appropriations bills. Federal agencies are funded through September 30. Before lawmakers depart Washington in the fall to engage fully in campaign activities for the November 5 elections, Congress expects to pass a continuing resolution to avoid a federal government shutdown by temporarily extending current federal government funding past that September 30 deadline.

TECH POLICY PRIORITIES

Section 230/Intermediary Liability/Content Moderation. The House Energy and Commerce Subcommittee on Communications and Technology held a hearing on April 11 to discuss the future of Section 230 and possible ways to reform it. Senate Commerce Committee Ranking Member Cruz (R-TX) issued a report calling for greater transparency from online platforms regarding user deplatforming and recommending legislative solutions.

Federal Privacy. On April 7, Senate Commerce Committee Chair Maria Cantwell (D-WA) and House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA) released a discussion draft of the American Privacy Rights Act (APRA), a comprehensive national data privacy and security measure. The House E&C Subcommittee on Innovation, Data, and Commerce held a hearing on April 17 addressing the APRA draft as well as pending children’s online privacy and safety legislation. Supporters of the Senate’s Blumenthal (D-CT)/Blackburn (R-TN) Kids Online Safety Act (KOSA), now co-sponsored by more than 60 Senators, are calling for KOSA to be attached to must-pass legislation in this Congress so that it can be enacted into law. Children’s advocates are also pushing for passage of the Children’s Online Privacy Protection Act 2.0 (COPPA 2.0). Senators Schatz and Cruz are sponsoring a new online children’s safety measure, the Kids Off Social Media Act, that would limit children’s use of social media.

Copyright/IP. The U.S. Copyright Office has launched an initiative to examine the impact of generative Artificial Intelligence (AI) on copyright law and policy. The Office plans to issue a report to be published in several sections which will make recommendations about potential legislation and regulatory action. On April 30 the Senate Judiciary IP Subcommittee will hold a hearing on the NO FAKES Act, a bipartisan draft measure authored by Subcommittee Chair Senator Coons (D-DE) that would protect the voice and visual likeness of individuals from unauthorized recreations from generative AI.

Antitrust/Competition. On April 23 the FTC issued a final rule banning the future use of non-compete clauses for all workers while allowing existing agreements to continue to apply to current senior executives. The FTC’s rule has already been challenged with the filing of several lawsuits. On April 8, the FTC and DOJ Antitrust Division co-hosted the third annual Spring Enforcers Summit bringing together senior staff from agencies, federal regulators, international competition enforcers, and state attorneys general to discuss enforcement priorities and coordination strategies.

Broadband. As expected, at its April 25 meeting, the FCC approved by a 3-2 vote, an order in its Open Internet rulemaking that reinstates net neutrality rules and classifies broadband Internet access service as a Title II telecommunications service under the Communications Act. A House Energy and Commerce subcommittee plans to hold an FCC budget hearing on May 7 where the FCC Open Internet order is expected to draw ongoing, substantial criticism from numerous Republican majority members. Senate Commerce Committee Chair Maria Cantwell (D-WA) announced a plan to mark up new legislation in early May–the Spectrum and National Security Act–which, among other things, would reinstate the FCC’s spectrum auction authority until September 2029. Using proceeds from spectrum auctions, the bill would also allocate billions of dollars to renew the Affordable Connectivity Program (ACP) which has provided financial support for Internet access to more than 20 million low-income households. Rep. Yvette Clarke (D-NY) has been leading efforts in the House to secure funding to sustain the ACP program.

ISSUES

Section 230/Intermediary Liability/Content Moderation

House: E&C Subcommittee Section 230 Hearing – On April 11, the House Energy & Commerce Subcommittee on Communications and Technology held a hearing titled “Where Are We Now: Section 230 of the Communications Decency Act of 1996.” The witnesses were Dr. Mary Anne Franks, Professor of Intellectual Property, Technology, and Civil Rights Law, George Washington University Law School; Ms. Mary Graw Leary, Professor of Law, The Catholic University of America School of Law, and Visiting Professor of Law, The University of Georgia School of Law; and Dr. Allison Stanger, Professor of International Politics and Economics, Middlebury College. There was no discussion or announcement of legislation being introduced in the near term, but there was bipartisan agreement to make Section 230 reforms. Most members were broadly critical of Section 230. Rep. Jay Obernolte’s (R-CA) remarks stood out at a few points for appreciating the need for balance and support for innovation, and he was the most cautious about Section 230 reform.

Key takeaways included:

Section 230 Reform Legislation: While there were many declaring that Congress needs to reform Section 230, there was no meaningful discussion or announcement of legislation being introduced in the near term.
Accountability for Platforms: There was a lot of talk about preserving free speech and ensuring platforms are accountable for harmful content they host. There’s a strong call for narrowing the broad immunities currently granted under Section 230 to make platforms more accountable, especially in cases involving child safety and national security threats.
Impact of Algorithms on Public Discourse: Members and witnesses discussed the role of algorithms in curating and amplifying content, raising concerns about how these technologies influence public discourse and the spread of misinformation. The need for algorithmic accountability and transparency in content moderation practices was emphasized.
Balancing Innovation with Regulation: Members discussed how to foster technological innovation while implementing regulations that manage the negative impacts of social media, particularly concerning privacy, child safety, and misinformation.
Fairness Between Traditional and New Media: Several discussions centered on the disparities in legal liabilities between traditional media and new digital platforms. There was interest in reassessing Section 230 to reduce tech companies’ immunity, bringing it more in alignment with the accountability standards faced by traditional media.

Senate: Commerce Committee Ranking Member Cruz Releases Report On Transparency and User Deplatforming – A report by Senate Commerce Committee Ranking Member Ted Cruz calls for greater transparency from online platforms through disclosure of when and why they remove users and deny services. The Cruz report alleges political bias in actions taken by platforms like Slack, Eventbrite, and Bonterra. It recommends legislation requiring platforms to publish community standards, provide written notice when services are blocked, and issue an annual report on reasons for service denials.

Senate: Sen. Rubio Reintroduced DRUGs Act (S. 4108) – On April 11, Senator Marco Rubio (R-FL) re-introduced the Domain Reform for Unlawful Drug Sellers (DRUGS) Act (S. 4108)

to amend the Federal Food, Drug, and Cosmetic Act to provide a process to lock and suspend domain names used to facilitate the online sale of drugs illegally. Rubio first introduced the bill during the prior Congress, citing a need to crack down on bad actors, including those from China, that target youth and families with the online sales of counterfeit and illicit drugs like fentanyl. The DRUGS act was inspired by a voluntary, 120-day pilot program launched by the FDA in 2020 to help curb the sale of illicit drugs. The bill’s scope, definitions, and enforcement approach have been criticized in the past by the tech sector. Currently, the bill has no co-sponsors.

Congress: REPORT Act to Become Law – The House passed the REPORT Act on April 29, a bill that would mandate social media companies to report sexual exploitation content of children to a national cyber tip hotline, and which the Senate passed in December. The legislation now advances to President Biden to be signed into law.

House: Accelerated Advocacy for KOSA – Kids’ online safety group ParentsSOS sent a letter on April 29 to House Energy and Commerce Committee leaders, urging them to advance the Kids Online Safety Act. The group is also calling for a few important revisions to make it more protective, such as expanding the duty of care to more platforms.

Senate: New Bipartisan Kids Off Social Media Act – Sens. Brian Schatz (D-HI) and Ted Cruz (R-TX.) are unveiling a new version of a bill to limit kids’ use of social media. The Kids Off Social Media Act is planned to be marked up in the Senate Commerce Committee on May 1. The bill prevents children under 13 from accessing social media sites. The bill includes provisions that: 1) Prohibit social media companies from programming algorithms for teens younger than 17; 2) Give schools the ability to block access to social media; and 3) Would provide enforcement through the Federal Trade Commission. The measure is a revamped version of a bill Schatz introduced a year ago with Sens. Katie Boyd Britt (R-Ala.), Tom Cotton (R-Ark.) and Chris Murphy (D-Conn.). The bill has included the school social media provision from a bill that Cruz drafted with Sen. John Fetterman (D-PA). Schatz said the bill was written in coordination with the Senate Commerce Committee and the office of Senate Majority Leader Charles Schumer (D-NY), to try to give the measure a potential boost, especially now that Congress has fewer pressing deadlines for the next few months. Advocates hope it is packaged alongside two other online safety bills for children: The Kids Online Safety Act (KOSA), which places the onus on social media companies to ensure young people aren’t harmed for using their sites and institutes new parental controls on social media apps, and the Children’s Online Privacy Protection Act, known as COPPA 2.0, which would ban targeted advertising to children and teens, and prohibit companies from collecting the personal information of users ages 13 to 16.

Children Online Health and Safety: NICHD Meeting on Tech and Adolescent Development and Mental Health – The National Institute of Child Health and Human Development (NICHD) organized an April 4-5 meeting to delve into “the current state of and future directions for research on the positive and negative effects” of technology and digital media. This session was designed to catalyze further initiatives within their programs’ potential.

i2Coalition’s Perspective – i2Coalition will continue its work to educate policymakers about the complexities of the Section 230 debate and threats posed to the entire Internet ecosystem beyond the largest tech social media platforms if uninformed legislation is adopted or legal cases are wrongly decided. In 2023, the i2Coalition joined other prominent tech trade associations in a letter and related efforts directed to the Senate Judiciary Committee to oppose the ill-advised, re-introduced EARN IT Act. In 2024, the I2Coalition joined numerous tech trade associations and civil society groups in a letter to Congressional leaders expressing strong support for The Invest in Child Safety Act, which would directly give law enforcement authorities more resources to battle online child predators and would provide support to victims and their families. The i2Coalition continues to build on its collaboration with key allies in the library and higher education communities to promote a full understanding of the scope of Section 230. The i2Coalition filed an amicus brief with the U.S. Supreme Court in Gonzalez v. Google on Jan. 18, 2023, to advance the Court’s accurate understanding of the scope and impact of Section 230’s immunity protections for Internet intermediary providers. Similarly, in the 118th Congress, the i2Coalition will continue to inform and educate policymakers if misplaced enforcement and procedural approaches to other online problems are proposed (e.g., the DRUGs Act).

Privacy

House: E&C Legislative Privacy Legislative Hearing – The House Energy and Commerce IDC subcommittee held a hearing on April 17 to discuss a new bipartisan, bicameral comprehensive data privacy bill as well as pending kids’ online safety bills.

The American Privacy Rights Act (APRA), announced as a discussion draft in early April by House E&C Chair McMorris Rodgers (R-WA) and Senate Commerce Chair Maria Cantwell (D-WA), aims to regulate data collection and usage, preempting state laws. The bill would set a national baseline for data privacy, allowing consumers to better control how tech companies use their data; allow users to opt out of certain data practices, including targeted advertising; require companies to collect only the necessary information; and allow individuals to sue bad actors for misusing personal data (a private right of action). This hearing was the first to hear committee members’ thoughts on APRA. Chairman Pallone did not explicitly cosponsor the bill and while he sees it as some progress he may seek changes. Republican members’ thoughts on key aspects of the bill, including its private right of action, are being closely watched. House E&C Committee Chair McMorris Rodgers, who is retiring at the end of this Congress, hopes to move swiftly on the bill. Plans are being made in the Senate Commerce Committee to try to move the bill, although Senate Commerce Ranking Member Ted Cruz (R-TX) has issued statements condemning the inclusion of a private right of action.
The House E&C IDC subcommittee hearing also addressed updates to the Children’s Online Privacy Protection Act (COPPA 2.0) and the Kids Online Safety Act (KOSA), which aim to enhance privacy protections and mitigate concerns about tech platforms’ impact on children.

Key Takeaway from the House April 17 hearing:

House E&C Ranking Member Pallone outlined several improvements he is seeking to APRA and COPPA 2.0. His questions inferred his desire to incorporate KOSA and COPPA 2.0 into one comprehensive nationwide privacy bill. The House E&C majority staff reportedly have said that option is on the table, but it was not discussed during the hearing.
Rep. Castor’s (D-FL) questioning implied her interest in combining KOSA and COPPA 2.0.
No member of the committee raised concerns about the private right of action provisions in APRA. In fact, the most conservative witness from the Heritage Foundation was the most vocal supporter for PRA.
No member raised concerns about preemption.
Members on both sides of the aisle and witnesses believe that data minimization is key to protecting privacy and curbing misuse of data, especially data collected on minors.
Striking the right balance on the allowance of digital targeting advertising was discussed. This includes ensuring that discrimination (redlining) does not occur. However, there was much agreement that targeting advertising to minors should be prohibited.
House E&C IDC Subcommittee Chair Bilirakis did not provide comments on further committee action. However, it was clear from the debate that the Democrat ranking members of the full Committee and IDC subcommittee want to see improvements to APRA before they provide support.

House: Fourth Amendment is Not for Sale Act Passed – This legislation, sponsored by Rep. Warren Davidson (R-OH) and Jerrold Nadler (D-NY), which would prohibit the government from buying Americans’ data from third parties, was originally offered as an amendment to the House’s FISA bill but was not included in the final language. It is under consideration in the Senate. The Biden Administration opposes the bill.

House: Pallone Statement on Passage of Data Broker Legislation – The 21st Century Peace through Strength Act, which was passed by Congress and enacted into law as part of the major foreign aid package, included House E&C Ranking Member Frank Pallone’s (D-NJ) bipartisan “Protecting Americans’ Data from Foreign Adversaries Act.” The bill prohibits data brokers from selling Americans’ sensitive information to China, North Korea, Russia, Iran, or other foreign adversaries. Pallone emphasized the need to prevent foreign adversaries from gathering and using Americans’ data and expressed gratitude to his congressional colleagues for their support.

CFPB: Chopra Plans Accountability Rules of Data Brokers – According to CFPB Director Rohit Chopra, the Consumer Financial Protection Bureau is working to propose a rule to restrict data brokers’ activities under the Fair Credit Reporting Act in the coming months. The rule may include purpose restrictions and prohibit the sale of certain data without consumer consent or another valid purpose.

FCC: Doubling Staff Working on Privacy and Data Protection – The FCC and other federal and state agencies are working to enhance privacy and data protection enforcement by increasing technical expertise and cooperation. The initiatives include doubling the staff, engaging with private sector and academic experts, and signing agreements with state attorneys general and international partners to address data misuse, cyber threats, and foreign adversaries.

i2Coalition’s Perspective – i2Coalition works closely with U.S. policymakers to educate about and maximize understanding of the business impacts of privacy and data collection legislation and regulation affecting the technology sector in the U.S. and globally. On Oct. 6, 2022, in Washington, and on Dec. 6 in Brussels, the i2Coalition and eco hosted timely webinars on the status of the EU-US Data Privacy Framework, with panelists from government, industry, and civil society. The i2Coalition will continue to follow EU-US efforts on transatlantic data flows policy making and engage with the responsible U.S. Department of Commerce officials and staff and with our EU allies and partners. In the 118th Congress, we will continue to focus on presenting substantive updates and educational resources to Congress and federal policymakers about the work we are doing and the progress being made with ICANN and NTIA on the development of a sound, workable global access model for domain name registration data meeting the requirements of the GDPR and federal and state laws, and the needs of law enforcement agencies. In Congress and before the Biden Administration, we will continue to emphasize the need to combine enhanced privacy policies with the ability to deploy strong encryption, unencumbered by backdoors, as primary tools we leverage to keep people safe online.

Copyright/IP

AI Litigation: Lawsuit Filed Against US Copyright Office Over AI Artwork – The question as to whether AI-generated artwork is eligible for protection under federal copyright law continues to make its way through U.S. courts. Last summer, Dr. Stephen Thaler filed suit against the U.S. Copyright Office (USCO) over its refusal to approve the registration of a copyright for an artwork created by his AI system. In his latest complaint, he asserts that the U.S. Copyright Act does not require human authorship and that standard property law principles enable him to own the work. The USCO argues that human authorship is necessary, citing various provisions in the Copyright Act. Thaler disputes this, claiming that his AI system qualifies as the author of the artwork and that the “fruit of the tree” doctrine in property law supports his ownership of the work. The outcome of this dispute could significantly impact copyright law in the context of future AI-related advancements.

Industry: Artists Letter Urges Tech Industry to Cease Use of AI that Devalues Creativity – Billie Eilish, Kacey Musgraves, and more than 200 other artists joined ranks in releasing an open letter in early April that urges AI developers to cease the use of artificial intelligence to infringe upon and devalue the rights of human artists. The letter goes on to note that some of the biggest and most powerful companies are, without permission, using their work to train AI models. These efforts are directly aimed at replacing the work of human artists with massive quantities of AI-created “sounds” and “images” that substantially dilute the royalty pools that are paid out to artists. No specific company is mentioned in the letter.

USCO: Examining the Impact of AI – The U.S. Copyright Office has launched an initiative to examine the impact of generative Artificial Intelligence (AI) on copyright law and policy. The Office will issue a report, published in several sections, analyzing the impact of AI on copyright and making recommendations about any legislative or regulatory action. The first section will focus on digital replicas, and the second will focus on the copyrightability of works that incorporate AI-generated material. Additionally, the Office has brought together a group of government and academic economists to discuss the economic aspects of the intersection of copyright and AI.

USCO: Chief Economist Blog on the Economics of Creativity- The U.S. Copyright Office (USCO) recently posted a blog about views from its Chief Economist about the economics of creativity. The blog outlined pending economic research projects the USCO is conducting, including in the areas of AI, rights of publicity, and the geographic distribution of copyright activity.

USPTO: Guidance on Using AI in Patent Applications – The U.S. Patent and Trademark Office has issued guidance on using artificial intelligence (AI) in patent applications. While disclosure of AI usage is not currently required, individuals are reminded to be mindful of their duty to disclose. The guidance emphasizes the importance of confidentiality, national security, and ethical considerations when using AI. Additionally, the office is working on AI patent search tools and exploring AI’s role in the innovation process. The chief information officer highlighted the agency’s cautious approach to adopting AI, suggesting a “fail small” mentality.

USPTO: Proposed Updates to the PTAB Review Process – As a follow-up to their release of an Advance Notice of Proposed Rulemaking (“ANPRM”) in April 2023, the US Patent and Trademark Office announced a Notice of Proposed Rulemaking (NPRM) to update the process used by the Patent Trial And Appeal Board (“PTAB”) to determine patent validity. Some of the key changes in the proposed rule include the codification of changes around serial and parallel petitions, termination and settlement agreements, and the appropriate factors to be used for considering discretionary denials. Comments are due on June 17, 2024.

i2Coalition’s Perspective – i2Coalition will continue to actively fight for the preservation of Section 512 safe harbors of the DMCA that its members have relied upon, including particularly the conduit provisions, to launch and operate their businesses successfully without being deluged with litigation threats. We will work to educate policymakers in Congress and the Biden administration to ensure balanced policy outcomes for our members. In addition, the i2Coalition will engage through outreach, dialog, and the public comments process in any future Canadian copyright consultations to urge continuity of balanced approaches in consideration of any reforms of Canada’s safe harbor framework for online intermediaries.

Cybersecurity

Biden & Congress: New Law to Force TikTok Divestiture – President Biden signed into law a bill that gives TikTok’s Chinese parent company, ByteDance, 270 days to sell TikTok or face a ban from the US. The legislation, part of the large foreign aid package, aims to address national security concerns. TikTok has threatened legal action, calling the law unconstitutional and devastating to its users and businesses. TikTok could be cut off from US users if the sale doesn’t happen. The law could face legal challenges due to First Amendment rights. However, even if TikTok is sold, the Chinese government’s control over algorithms presents a significant hurdle to the company’s future success.

Dept. of Commerce: Comments Filed in IaaS (KYC) Rulemaking – On January 29, 2024, the Department of Commerce, Bureau of Industry and Security (BIS) released a proposed rule (Proposed Rule) that would require U.S. cloud services providers (aka Infrastructure as a Service, or IaaS, providers) to create sweeping and expensive new customer identification programs to identify, assess and track foreign customers of their IaaS products (often called Know Your Customer). The Proposed Rule also authorizes BIS to prohibit or impose conditions on IaaS transactions in jurisdictions, or with specific foreign persons, found to have engaged in cybersecurity-related abuse of U.S. IaaS products (Special Measures). Finally, the Proposed Rule would require U.S. IaaS providers to submit reports to BIS when foreign customers use U.S. cloud computing services to train large artificial intelligence (AI) models with potential use in malicious cyber-enabled activity (AI Reporting). The sweeping and poorly crafted rule proposals are opposed by large swaths of the tech industry and will be particularly onerous for small and medium-sized providers. A letter to Secretary Raimondo by multiple tech trade associations, which i2Coalition signed, was transmitted on April 29 seeking reconsideration of the Commerce Dept.’s approach. Tech associations and companies, including the i2Coalition, have filed extensive comments with the Department of Commerce opposing the adoption of the proposals as currently written, and collaborative advocacy against the proposals is ongoing.

CISA: CIRCIA NPRM Released – CISA is accepting public comments until June 3 in response to the CIRCIA NPRM released on March 27 regarding critical infrastructure incident and ransomware reporting. A key issue for Internet providers responding to the request for public comments is the scope of the Domain Name System exemption and its regulatory implementation.

The NPRM covers various aspects such as definitions, reporting criteria, data preservation, enforcement, and protections. The proposed cybersecurity regulation by CISA spans 447 pages and is divided into six sections. The first section begins with public participation, followed by an executive summary and the purpose of the proposed action. The fourth section discusses the proposed rule in detail, while the fifth section analyzes the statutory and regulatory requirements. Finally, section six (pg. 406) contains the complete proposed rule, which has twenty sections outlining CISA’s policies for mandatory incident reporting on covered cyber incidents and ransom payment
The proposal addresses the private sector’s hesitancy to share hack information and covers larger and smaller firms providing essential services. CISA’s plan includes standards for reporting hacks, including those perpetrated via third parties like cloud providers. Despite concerns about the regulatory burden, CISA argues that the law’s broad scope is crucial for identifying vulnerabilities and enhancing national defense.
At a recent speaking engagement, Iranga Kahangama, DHS Assistant Secretary for Cyber Infrastructure, advised industry representatives to carefully assess their inclusion within the scope of the regulations and start planning for implementation, considering the personnel, systems, and internal procedures required for compliance. He also noted the 18-month implementation period following the rule’s publication and the need for industry to engage in the comment period to facilitate a smooth transition under the new legislation.
The Homeland Security Secretary Mayorkas is pushing for full funding to support the implementation of CIRCIA. The budget request for fiscal 2025 includes funding for CISA to implement CIRCIA and to address cyber threats to critical infrastructure.

CISA Director On Using Emergency Authorities for Cybersecurity Purposes – The CISA Director

Jen Easterly, is considering using emergency authorities, such as the Defense Production Act and the National Emergencies Act, to compel private cybersecurity firms to assist in the event of a serious cyberattack on U.S. infrastructure. This announcement comes amid concerns about a Chinese hacking campaign and other threats targeting key U.S. sectors, prompting the need for collaboration between the government and private sector to enhance cybersecurity.

NIST: CSF 2.0 Incident Response Recommendations Released – NIST proposed a model for incident response that aligns with the cybersecurity framework update known as “CSF 2.0.” This model aims to integrate incident responses across organizational operations and improve the efficiency of incident detection, response, and recovery. NIST has released a draft publication and established a new incident response page with resources to assist organizations in incorporating cybersecurity incident response recommendations.

GAO: Report Concludes Several Key Requirements of 2021 Cybersecurity EO Remains Unfinished – A recent report by the GAO found that while most of the requirements from President Biden’s 2021 executive order on cybersecurity have been completed, some key components remain unfinished. The Office of Management and Budget and the Cybersecurity and Infrastructure Security Agency still need to address certain cybersecurity initiatives to safeguard federal IT systems from cyberattacks.

House: Homeland Security Holds Hearing on CIRCIA – The House Homeland Security cyber subcommittee will hold a hearing on May 1 regarding the proposed rules from CISA to establish mandatory incident reporting for critical infrastructure. CISA has published a detailed NPRM, which includes reporting requirements, data preservation, and enforcement details. Private sector stakeholders, including USTelecom, Bank Policy Institute, and Edison Electric Institute, will provide feedback at the hearing. These stakeholders have previously submitted comments to CISA, expressing concerns and recommendations related to the incident reporting requirement.

DoD: New Cybersecurity Strategy For Defense Industry – The Defense Department released a new cybersecurity strategy focused on protecting defense industrial base companies from digital attacks, particularly from nation-states like China. The strategy aims to enhance cybersecurity from 2021 through 2027, with a focus on governance, company collaboration, and threat information sharing. The Pentagon will establish a new framework to secure subcontractor partnerships and relaunch a threat-sharing portal. This strategy aligns with the department’s broader cybersecurity efforts, emphasizing the importance of sharing threat information with defense companies.

DoD, GSA, and NASA Seek Input on New FAR Supply Chain Policies – The Defense Department, General Services Administration, and NASA are seeking public input for a new section of the Federal Acquisition Regulation (FAR) regarding supply chain policies. The new part, FAR part 40, will consolidate and clarify security objectives related to managing information security and supply chain security in government acquisitions. The agencies are asking for feedback on the proposed structure of FAR part 40 and its potential impact on stakeholders. The deadline is June 10, 2024.

NIST: Draft Consumer-Grade Routers Profile – NIST has released a draft profile for consumer-grade routers to improve their cybersecurity. The profile outlines cybersecurity outcomes and standards for router products and includes details on standards and emerging techniques. It aims to support the FCC’s Cyber Trust Mark program and seeks feedback to improve router cybersecurity and ensure relevance in different scenarios.

House: McHenry ReIntroduces Ransomware Reporting Bill and April 16 Hearing – Rep. Patrick McHenry (R-NC) reintroduced the Ransomware and Financial Stability Act, which aims to protect financial institutions from cyber threats by setting guidelines to respond to ransomware attacks. The bill requires institutions to notify the Treasury Department before making a payment of over $100,000 and will provide legal clarity and confidentiality for institutions facing ransomware attacks. The House Finance Services Committee held an April 16 hearing to examine cyber Insurance to defend against ransomware attacks. The House Financial Services Committee discussed ransomware risks to the financial system and the increasing costs of cyber insurance. Witnesses emphasized the need for collaboration to address ransomware threats and the importance of cybersecurity resilience. The hearing also covered challenges of obtaining cyber insurance, the impact of AI on ransomware, and the use of AI to respond to security vulnerabilities.

House: New CCP Select Committee Chair – Following the departure of Rep. Mike Gallagher (R-WI) from Congress, the new Chair of the House Select Committee on the Strategic Competition between the United States and the Chinese Communist Party is Michigan Republican Rep. John Moolenaar. The committee has served a key role in highlighting the full scope of the challenge with China, including everything from technology to defense, to influence operations and foreign policy. The committee was created by then-Speaker Kevin McCarthy in January 2023, drawing rare bipartisan support in an otherwise divided chamber. Whether the committee will be extended in the next Congress isn’t clear. The bill that was rapidly enacted into law this year seeking to force the divestiture of TikTok originated in this committee and is seen as a major victory.

i2Coalition’s Perspective – As policymakers’ concerns and efforts intensify regarding how to improve cybersecurity and guard against growing attacks and threats, i2Coalition has increased its monitoring of this area. We will continue to engage in targeted policy matters and proceedings where the i2Coalition’s participation can enhance understanding and support improvements. In this regard, on November 14, 2022, the i2Coalition filed comments with CISA in response to the RFI on CIRCIA implementation. On March 3, 2023, the i2Coalition filed comments on NIST’s Cybersecurity Framework 2.0 Concept Paper. On November 6, 2023, the i2Coalition filed comments on the public draft of NIST’s Cybersecurity Framework 2.0. As noted above, i2Coalition filed extensive comments on April 29, 2024, opposing poorly drafted rule proposals in the Department of Commerce Infrastructure as a Service (IaaS) “Know Your Customer” rulemaking and has teamed with our tech industry colleagues to urge swift reconsideration by the Department.

Antitrust/Competition

FTC: Rule Banning Non-Competes Clauses Approved – The FTC has approved a final rule banning the future use of non-compete clauses for all workers while allowing existing agreements to continue to apply to current senior executives. According to the FTC, the rule aims to increase worker wages and promote innovation. Opponents, however, argue that non-competes are an effective tool for preventing the unwanted disclosure of important business interests, including internal trade secrets. The FTC dismisses this concern, asserting that alternatives like trade secret law and nondisclosure agreements are sufficient. There is division among the commissioners, with some questioning the FTC’s authority to enact such a rule. Critics predict legal challenges and potential injunctions against the rule while expressing concern about its impact on businesses’ ability to protect their interests. Less than 24 hours after the Federal Trade Commission issued the final rule in the United States, the US Chamber of Commerce and the Business Roundtable filed a lawsuit against the agency in federal court in the Eastern District of Texas. Another lawsuit was filed in federal court in the Northern District of Texas by business tax services firm Ryan. Additional lawsuits can be expected.

FTC: April 24 Hearing on Proposed Junk Fees Rule – The FTC scheduled a virtual hearing on April 24 to discuss its proposed Rule on Unfair or Deceptive Fees. The FCC hopes to eliminate hidden fees that make it difficult for consumers to make informed decisions. The proposed rule targets various sectors and mandates businesses to disclose the full price upfront. Non-compliance could cause financial penalties and require businesses to refund affected consumers. The proposed rule aims to foster a more equitable and competitive market landscape while saving consumers money and time.

FTC and DOJ Host Third Annual Enforcer Summit – The Federal Trade Commission and the Justice Department’s Antitrust Division co-hosted their third annual Spring Enforcers Summit. The summit brings together senior staff from agencies, federal regulators, international competition enforcers, and state attorneys general to discuss enforcement priorities and coordination strategies. The public sessions were online and featured remarks from FTC Chair Lina Khan, Assistant Attorney General Jonathan Kanter, and U.S. Secretary of Agriculture Tom Vilsack.

Senate: Letter to FTC & DOJ on Data Sharing – A group of senators led by Sens. Blumenthal and Wyden sent an April 18 letter to the Federal Trade Commission and the Department of Justice’s antitrust division, urging the agencies to take action against anti-competitive data sharing.

DOJ: Expectations of Federal Antitrust Lawsuit Against LiveNation and Ticketmaster – Federal courts reportedly may soon see an antitrust lawsuit filed by the U.S. government against the biggest player in the live entertainment industry: Live Nation, which is the parent company of Ticketmaster. The federal government has been investigating their business practices for some time.

i2Coalition’s Perspective – i2Coalition monitors but has not actively engaged on this issue.

Trade/Tax

FISA Two-Year Reauthorization Passed and SIgned into Law – President Biden signed into law

the bill–Reforming Intelligence and Securing America Act (RISAA) –extending for two years the authorization of Section 702 of the Foreign Intelligence Surveillance Act. The program allows warrantless electronic surveillance of foreign targets and unintentionally collects data on some Americans. To secure its passage, the bill extension was reduced from five to two years. Tech companies and First Amendment groups strongly criticized a troubling provision that was added to the bill by the intelligence committees that significantly expands the definition of an electronic communications service provider covered by the law thereby broadening the federal government’s power to snoop on Americans’ digital communications—potentially by forcing employees of private businesses to become informants. Under FISA law, Section 702 previously only applied to telecommunications companies and internet service providers. But the amendment included in the RISAA would expand that definition to cover “any service provider” with “access to equipment that is being or may be used to transmit or store” electronic communications. The big target is likely to be the owners and operators of data centers. In a letter to senators, Attorney General Merrick Garland wrote that the DOJ “commits to applying” the new definition of electronic communications service providers in a narrow fashion. “The number of technology companies” covered by the new provision, Garland wrote, “is extremely small.”

Congress: Bipartisan Group of Senators Quietly Attempting to Get 60 Votes on Tax Package – A group of Senators, including Kyrsten Sinema (I-AZ), Josh Hawley (R-MO), and Todd Young (R-IN), are trying to find 60 votes to move the bipartisan tax package negotiated by Senate Finance Committee Chairman Ron Wyden (D-OR) and House Ways and Means Committee Chairman Jason Smith (R-MO). Although the tax package has faced intense opposition from Senate Finance Committee ranking member Mike Crapo (R-ID) and Republican Leader McConnell (R-KY), Hawley and Young are quietly whipping other Republican Senators to find the requisite number of votes for Senate consideration. Chairman Wyden has said that there is a “full-court press” to get the tax package brought up in the Senate.

House Ways and Means Committee Forms Tax Teams – The Ways and Means Committee, led by Chairman Jason Smith (R-MO) and Tax Subcommittee Chairman Mike Kelly (R-PA), has formed ten Tax Teams to address expiring provisions of the 2017 Trump tax cuts. Each Tax Team will review specific areas of tax policy, such as American Manufacturing, Working Families, and Global Competitiveness.

House: Appropriations Committee Membership Changes – Tom Cole (R-OK) has taken over as the new committee Chairman, replacing Kay Granger (R-TX). Rep. Robert Aderholt (R-AL) will continue as chair of Labor-H, while Rep. Hal Rogers (R-KY) remains the chair of the CJS Subcommittee. Rep. Dave Joyce (R-OH) has been appointed as the new chairman of the FSGG Subcommittee, which oversees federal funding for the FCC and FTC. This leadership reshuffle comes as part of changes within the House Appropriations Committee, with Steve Womack (R-AK) now heading the Transportation Subcommittee.

USTR: 2024 National Trade Estimate Report on Foreign Trade Barriers – The US Trade Representative has released the 2024 National Trade Estimate Report on Foreign Trade Barriers, identifying significant barriers to US exports, foreign direct investment, and electronic commerce in various markets. The report covers barriers in 59 markets, including issues related to agricultural exports, motor vehicle standards, non-market practices by China, and problematic data policies in several countries. The USTR aims to use the report to open markets for American workers and address unfair trade practices.

USTR & Congress: Ambassador Tai Testimony in House and Senate – The US Trade Representative Katherine Tai sought to deflect sharp questioning on the administration’s diminished support for digital trade when she testified before the House Committee on Ways and Means and the Senate Finance Committee. Thirteen Republican Ways and Means members, led by Rep. Carol Miller (R-WV), sent a letter to Ambassador Tai about USTR’s failure to include references to trade barriers faced by the digital sector in its annual report on foreign trade barriers.

i2Coalition’s Perspective – i2Coalition continues to work for balanced trade agreements that foster digital trade, and we generally support efforts to put trade with China on a more level footing. We support the global digital trade principles articulated in the global industry letter to the G20. We will continue our engagement with USTR in support of those principles and against non-tariff trade barriers. The i2Coalition will also continue our work with our EU-based members on the DSA, DMA, and the NIS2 Directive toward balanced and transparent regulations, including providing input on major relevant U.S. policy discussions having an impact on evolving global intermediary liability principles (e.g., the Section 230 debate in the U.S. Congress). The i2Coalition will continue to underscore and educate USTR officials in the Special 301 proceedings about the key point that USTR should not confuse “notorious markets” with neutral intermediaries such as Internet infrastructure providers. The i2Coalition’s efforts before USTR are succeeding, as demonstrated in the 2023 Review of Notorious Markets for Counterfeiting and Piracy report issued on January 30, 2024, in which not one of our Internet intermediary members or any other traditional Internet infrastructure company was cited in the online markets list.

Artificial Intelligence

Biden Admin.: Update on EO Implementation – The White House issued a statement on April 29 reporting that federal agencies have met the next set of deadlines for the Biden executive order on AI. These actions included hiring over 150 tech professionals; issuing guidance on AI in the workplace; and developing AI security guidelines for critical infrastructure owners and operators. The same day the Department of Commerce announced a series of new actions it is taking to implement portions of the Biden EO.

Senate: Cantwell/Young Introduce the “Future of Innovation Act” – The Future of AI Innovation Act is bipartisan legislation introduced by Senators Todd Young (R-IN), Maria Cantwell (D-WA), Marsha Blackburn (R-TN), and John Hickenlooper (D-CO) to enhance private sector collaboration in AI development and maintain American leadership in global AI advancement. The bill establishes NIST’s U.S. AI Safety Institute to promote voluntary standards and develop performance, transparency, and evaluation standards for AI. It also seeks to increase transparency, ensure accountability for higher-risk AI applications, and promote partnerships to advance AI research.

House: Schiff Introduces AI Copyright Transparency Bill – On April 9, Rep. Adam Schiff (D-CA) introduced the “Generative AI Copyright Disclosure Act” (HR 7913), which requires technology companies to disclose the copyrighted materials used to train their AI models. According to Rep. Schiff, the bill aims to balance innovation and creativity while addressing concerns about AI’s impact on artists and content creators.

Commerce Dept.: Requests Information About AI Data Sets – The Department of Commerce seeks input by July 16 on making its data AI-ready, ensuring data accuracy and integrity while enabling AI systems to access and understand it. The agency aims to improve guidance, metadata, and licensing for data usage using open standards for linking knowledge graphs. It also wants to make public data accessible and machine understandable for AI tools while maintaining semantic meaning in the data.

House: Bipartisan Bill Directs DHS to Use AI for Border Security – The Emerging Innovative Border Technologies Act, introduced by Reps. Luis Correa (D-CA) and Morgan Lutrell (R-TX) would create an innovation team within the DHS’s Customs and Border Protection to research and implement new commercial technologies for border security. The act aims to combat threats at the border by deploying advanced technologies to disrupt criminal activities by mandating a report to Congress within 180 days of enactment, outlining operating procedures, strategic goals, costs, and performance indicators related to using technologies for border security.

Biden Admin. Issues Government-Wide Policy to Designate Chief AI Officer – The Biden White House has instructed federal agencies to appoint a chief AI officer within 60 days to oversee the responsible use of AI. The mandate includes safeguards against bias and discrimination, transparency requirements, and impact assessments. Exceptions and waivers are allowed for national security and law enforcement purposes. However, there are concerns about these agencies’ potential misuse of AI and criticism about the lack of data minimization standards and a redress process for challenging AI use exemptions.

NTIA Recommends Audits for High-Risk AI Systems – NTIA Administrator Alan Davidson suggests that the federal government should establish auditing standards for high-risk AI systems and impose liability on tech companies for failing to uphold their terms of service. In a report, the NTIA recommends independent audits and the use of auditing standards like those in the financial sector. There are concerns about preemptive regulation and the need for consistent regulatory frameworks as AI innovation accelerates. The NTIA seeks guidance on implementing directives from President Biden’s executive order on AI.

DHS Forms AI Advisory Panel with Tech CEOs and Government – The Department of Homeland Security has created an advisory panel, the Artificial Intelligence Safety and Security Board, to establish guidelines for the secure use of AI in both public and private sector networks. The board, which includes tech CEOs and government officials, will develop guidelines for AI adoption in critical infrastructure and facilitate information sharing on AI security risks.

CISA Emphasizes Understanding Bias Datasets in AI Systems for Different Size Agencies – The Cybersecurity and Infrastructure Security Agency (CISA) chief data officer emphasized the importance of understanding bias in datasets used for artificial intelligence (AI) systems. With the increasing use of AI in government, the CISA speaker highlighted the need for thorough internal checks regarding data collection and potential biases. The importance of open communication with vendors to address any biases present in the datasets was emphasized.

U.S.-U.K. Announce Partnership on Science on AI Safety – The U.S. and U.K. have agreed to collaborate on AI safety research and guidelines. They aim to align their scientific approaches, conduct robust evaluations of AI systems, and issue rigorous guidance. This partnership reflects the Biden administration’s approach to collaborating with other countries on AI regulation. The U.S. and U.K. will also work towards creating a common approach to AI safety testing and plan to partner with other countries to promote AI safety globally.

i2Coalition’s Perspective – i2Coalition monitors but has not actively engaged on this issue.

Tech

Biden Admin. CHIPs Act Ongoing Awards – The Biden Administration has continued moving forward with CHIPS Act grants.

Intel is receiving the largest share of the pie, with $8.5 billion in grants (plus an additional $11 billion in government loans). This grant accounts for 22% of the CHIPS Act’s total subsidies for chip production. From Intel’s side, the company is expected to invest $100 billion to construct new fabs in Arizona and Ohio, while modernizing and/or expanding existing fabs in Oregon and New Mexico. Intel could also claim another $25 billion in credits through the U.S. Treasury Department’s Investment Tax Credit.
TSMC, the world’s largest semiconductor foundry company, is receiving $6.6 billion to construct a new chip plant with three fabs in Arizona. The Taiwanese chipmaker is expected to invest $65 billion into the project. The plant’s first fab will be up and running in the first half of 2025, leveraging 4 nm (nanometer) technology. According to TrendForce, the other fabs will produce chips on more advanced 3 nm and 2 nm processes.
Micron, the only U.S.-based manufacturer of memory chips, is set to receive $6.1 billion in grants to support its plans of investing $50 billion through 2030. This investment will be used to construct new fabs in Idaho and New York.

GAO: Biometric Tech Report – The GAO released an April 22 report describing a gap in research on the real-world performance of using biometric identification technology (like facial recognition) that could perpetuate biases and inequalities. According to GAO, although the accuracy of these technologies has improved through laboratory testing in recent years, there are still several factors leading to inaccuracies. For facial recognition, for example, image quality, skin tone, and gender can skew results, according to the study, while fingerprint technology can be thrown off by the hands of people who do manual labor. The various factors could lead to biased outcomes and systemic inequity. The agency is recommending a series of considerations to help policymakers address concerns related to biometric identification technologies, including conducting comprehensive evaluations on the potential impacts of using the tech, taking a risk-based approach for regulations, and passing comprehensive privacy laws.

i2Coalition’s Perspective – i2Coalition monitors but has not actively engaged on this issue.

Telecommunications

Senate: Commerce Committee Spectrum and National Security Bill Markup – The Senate Commerce scheduled a May 1 markup for the recently announced Spectrum and National Security Act. Authored by Senate Commerce Chair Maria Cantwell (D-WA), the bill proposes to reinstate the FCC’s spectrum auction authority until September 2029 with a five-year extension. The bill allocates $5 billion for the Affordable Connectivity Program (ACP) and $3 billion for rip and replace. The bill proposes borrowing funds and using proceeds from future spectrum auctions to repay the loans. The bill mandates auctioning the upper 12 GHz band within three years and asks NTIA to study federal spectrum bands for potential sharing opportunities. The bill highlights differences between the committee’s top Democrat and Republican members on spectrum policy. Ranking Member Ted Cruz (R-TX) and John Thune (R-SD) introduced a reauthorization bill in March with a more direct pipeline for licensed spectrum and excluded earmarking proceeds for the ACP or rip and replace. Other bills being considered include:

The Kids Off Social Media Act (Schatz/Cruz) would, among other things, ban people under age 13 from accessing social media and require parental consent for users ages 13-17 to access apps.
The Rural Broadband Protection Act (Capito) would require companies participating in certain FCC broadband subsidy programs to promise to prevent waste, fraud, and abuse.
The Network Equipment Transparency Act (Hickenlooper) would require the FCC to detail in a report to Congress the impact of supply chain disruptions on the timely completion or deployment of broadband infrastructure projects.

FCC: Net Neutrality Reinstated in Open Internet Proceeding – On April 25, the FCC voted 3-2 to reinstate Obama-era net neutrality rules.

These rules reclassify broadband as a common carrier service under Title II and prohibit blocking, throttling, and paid prioritization. The draft order’s language on throttling reportedly was updated to clarify that speeding up traffic violates the rule. This addresses network slicing, where providers could charge more for faster “slices” optimized for specific uses like gaming, effectively creating paid prioritization. The FCC will evaluate network slicing on a case-by-case basis, applying Title II rules to slices to provide general Internet access while exempting specialized services.
Of note, the draft order does not require (forebears) broadband service providers to contribute to the USF. With this in mind, all eyes will continue to be on the Congressional USF working group’s attempt to address USF contribution reform.
Republican commissioners dissented, arguing that the rules, which limit agency authority, would be overturned in court under the Major Questions Doctrine. Release of the lengthy final order text is pending. The rules will go into effect sixty (60) days after publication in the Federal Register. Commissioner Carr (R) came out with an opposition statement titled, “President Biden’s Unlawful Plan for Expanding Government Control of the Internet.” As in 2015, unless Congress acts, the rules will be subject to court challenges that could impact the final application and enforcement of rules. Legal challenges to the rules are expected, as well as oversight hearings led by House Republicans who have strongly opposed and criticized the FCC’s action..

House: E&C Communications Subcommittee Plans Budget Hearing – The House E&C Communications Subcommittee is planning a hearing in early May to discuss the budget requests for the FCC and NTIA for fiscal year 2025. President Biden has proposed $448 million for the FCC and $65 million for NTIA. Because the FCC hearing, scheduled for May 7, occurs shortly after the 3-2 FCC vote on net neutrality rules, robust Republican criticism of that recent FCC action is expected. The NTIA hearing is set for May 15.

House: Oversight Committee Chair Comer Sends Letter to Raimondo on Undersea Cable – House Oversight Committee Chairman James Comer is concerned about the impact of NOAA’s proposed Chumash Heritage National Marine Sanctuary off California’s coast on undersea fiber cable permitting. Comer urged the Commerce Department to evaluate the sanctuary designation’s impact on internet infrastructure. NOAA has acknowledged the concerns and will respond through official channels.

House: Clarke Discharge Petition on ACP Funding – Rep. Clarke (D-NY) is pushing to secure $7 billion in funding for the Affordable Connectivity Program Extension Act to keep the FCC broadband fund running through the end of FY 2024. Rep. Clarke filed a discharge petition (H.Res. 1119) in an attempt to secure a floor vote on the funding proposal. The petition needs to be signed by 218 members to advance to the floor. While the bill has 228 cosponsors, including 22 Republicans, the lack of a “pay for” in the bill will impact Republican support and make it difficult to obtain 218 signatures.

Senate: Markey Leads Democrats’ Letter Asking ISPs to Cover ACP Funding – Senators Markey (D-MA), Butler (D-CA), Sanders (D-VT), Wyden (D-OR), and Warren (D-MA) sent a letter to the CEOs of NCTA and CTIA, urging their member companies to cover a $16 dollar shortfall in the ACP benefit for subscribers in May. They emphasized that this support would help maintain Internet access for subscribers while Congress works on a funding solution. The senators highlighted the importance of preventing ACP households from losing Internet service and the commitment needed to close the digital divide.

Congress: Problem Solvers Caucus Throw Support to ACP Legislation – The Affordable Connectivity Program Extension Act, endorsed by the bipartisan Problem Solvers Caucus, aims to extend the Affordable Connectivity Program through the end of 2024. This program has provided high-speed internet access to over 23 million U.S. households, particularly benefiting low-income families. The Act has bipartisan support, with over 215 cosponsors. Punchbowl News recently reported that ACP funding might be included in a “must-pass” bill to fund Baltimore’s Francis Scott Key Bridge cleaning and rebuilding efforts.

Senate: Senator Cruz Urges 5th Circuit to Reverse E-Rate Funding for Wi-Fi on School Buses – Senator Ted Cruz (R-TX), the Senate Commerce Committee ranking member, filed an amicus brief signed by six other Republican senators urging the 5th U.S. Circuit Appeals Court to reverse the FCC decision to expand E-rate funding beyond schools and libraries. Such an expansion would provide WI-FI hotspots on school buses. The Republican senators joining Cruz’s effort are Marsha Blackburn (TN), Mike Braun (IN), Ted Budd (NC), James Lankford (OK), Cynthia Lummis (WY), and Pete Ricketts (NE).

FCC USF Litigation: Consumers’ Research Files Challenge to Reverse USF Contribution Factor – Consumers’ Research has filed a new challenge in the 5th U.S. Circuit Court of Appeals regarding the FCC’s USF contribution factor for the second quarter of fiscal year 2024. The group argues that USF contributions are unlawful taxes collected by the Universal Service Administrative Company and should be overturned.

NTIA: Update on National Spectrum Strategy – NTIA is actively working on implementing the national spectrum strategy. It is conducting technical studies on spectrum bands and exploring advanced spectrum management techniques. NTIA is also streamlining the process for federal agencies to receive funding from the spectrum relocation fund and aims to distribute funds to over ten agencies in October. The DOD made a presentation on dynamic spectrum sharing, which is separate from an upcoming study on the lower 3 GHz band’s future.

FCC: FNPRM Comments on Millimeter Wave Spectrum Due on May 29 – The FCC is asking for comments on the 70/80/90 GHz spectrum in a Further Notice of Proposed Rulemaking. The deadline for comments is May 29th, and replies are due by June 28th. The notice seeks input on including ship-to-aerostat transmissions and incorporating fixed satellite service earth stations into the light-licensing regime for the specified bands.

NTIA Approves Digital Equity Plans for All States and Territories – The National Telecommunications and Information Administration has approved digital equity plans from all 50 states, D.C., and Puerto Rico. States can apply for funding to address barriers to broadband adoption, with Texas likely to receive the most funding. The program will provide $1.44 billion over the next two years, with an additional $1.25 billion available later this year. This funding is part of the $2.75-billion Digital Equity Act, designed to address barriers to broadband adoption.

DOD: Redacted Version of Lower 3Ghz Report Released – The Department of Defense released a report on the challenges of sharing the 3.1-3.45 GHz spectrum for 5G networks. The report emphasizes the need for regulatory control, technological capabilities, and safeguarding against interference. In a statement, Sen. Fischer (R-NE), a member of both Senate Commerce and Armed Services, defended DOD’s use of the lower 3, saying, “We should not continue to see DOD only as the pot of spectrum gold at the end of the rainbow.”

NTIA: New Measures Adopted to Streamline Environmental Impact – NTIA has added 30 “categorical exclusions” to support reviews for broadband infrastructure projects funded by Internet for All programs. The exclusions aim to simplify environmental review, reduce paperwork, and save time.

NTIA: Announcement of $800+ Million for Digital Inclusion – The NTIA has announced $800+ million in funding for states, territories, and native entities to promote high-speed internet access. The “Internet for All” initiative aims to empower individuals and communities with the necessary tools and skills. It includes three pillars: deployment, equity, and affordability, and supports digital equity plans to promote broadband technology and digital skills. The funding allocations for states, territories, and native entities are outlined in the text.

House: E&C Democrats Urge NTIA to Prioritize Affordability in BEAD – House Energy & Commerce Democrats have urged the NTIA Administrator to prioritize affordability in administering the $42.5 billion BEAD program. They emphasized the need to address the cost barrier to Internet access and highlighted the importance of spending the funds consistent with Congressional intent, particularly in terms of affordability provisions.

FCC: Comments to Extend DIRS Requirement for Satellite Providers – The FCC is seeking comments on a proposal to extend mandatory disaster information reporting to broadcasters and satellite providers. Comments are due by April 29, with replies due by May 28. The proposal follows another NPRM approved by the FCC in January.

i2Coalition’s Perspective – The i2Coalition filed comments in the FCC’s Open Internet proceeding on December 14, 2023, to protect the interests of our members that provide VPN, stand-alone DNS, CDN services, web hosting, and data storage services. Our comments pointed out that none of those services are within the scope of broadband Internet access service (BIAS), as defined by the FCC. The FCC’s draft order agrees with i2Coalition’s arguments. The full text release of the final order is pending.

Energy/Environment

SEC Presses Pause on Climate Risk Disclosure Rule while Dem Lawmakers Press for Action on Federal Contractor Climate Disclosure Rule – The Securities and Exchange Commission paused its new climate disclosure rule, a move that could give companies “breathing room” amid a pitched legal and political battle over the first-of-its-kind federal regulation. In a letter to the 8th U.S. Circuit Court of Appeals, the Wall Street regulator said it’s not retreating from its belief that rules requiring public companies to disclose climate risk are both “consistent with applicable law” and within its authority. Meanwhile, Senator Elizabeth Warren (D-MA) sent a letter, with six senators and 19 Members, urging the Administration to finalize climate risk disclosure rules for federal contractors. The proposed Federal Supplier and Climate Risk and Resilience rule would require the largest federal contractors to disclose information about climate-related risks and emissions. President Biden announced plans for these rules 18 months ago, but the effort appears to have languished. A number of federal contractors have voiced support for the proposal – Microsoft, Pfizer, Verizon and Trane Technologies. Opponents, including the U.S. Chamber, have argued that forcing such disclosures would be costly, result in little value in addressing climate change, and would be a threat to national security. The team writing the new climate rules for federal suppliers originally expected to have a draft a year ago. Now, they’re scheduled to report to the FAR (Federal Acquisition & Regulatory) Council leadership by May 22. This puts the FAR Council close to missing an unwritten deadline that looms over the administration to ensure its rules are durable in case of a change in administration.

DOE Awarding $4 Billion To Clean Domestic Energy – The Biden administration is providing over $4 billion in tax credits for 100+ clean energy projects across 35 states. The projects aim to boost domestic manufacturing, reduce emissions, and create jobs while supporting clean energy manufacturing, critical minerals, and industrial decarbonization. The program emphasizes historic energy communities, domestic supply chains, and lower energy costs, with additional funding rounds expected soon.

EPA: Heavy Trucks & Buses Pollution Reduction Rule – The EPA finalized a rule strengthening pollution protections on heavy trucks and buses. The new limits on greenhouse gas pollution are estimated to prevent 1 billion metric tons of climate pollution from being released. Expect Congressional Review Act activity in the House and Senate in the coming weeks and months on this latest climate-related rule coming out of the Biden administration. However, the final rule was watered down a bit after some pushback from industry, as well as from some Senate Democrats from auto manufacturing states.

House: Natural Resources Bills Update – The House is considering floor action on a half-dozen bills that take aim at energy and environmental rules by the executive branch—reversing the Interior Department’s decisions to ban energy development in certain areas of Alaska and the Bureau of Land Management’s recent restrictions on public lands, allowing critical minerals development in the Superior National Forest, reversing a ban on lead ammunition and tackle in federal lands and waters, and removing the gray wolf from the Endangered Species List.

i2Coalition’s Perspective – i2Coalition monitors but has not actively engaged on this issue.

RELEVANT HEARINGS & EVENTS TRACKED BY i2COALITION IN APRIL

April 10

House Judiciary, Subcommittee on Courts, IP, and the Internet,“Artificial Intelligence and Intellectual Property: Part III — IP Protection for AI-Assisted inventions and Creative Works.”

Senate Homeland, Subcommittee on Emerging Threats and Spending Oversight, “Improving Export Controls Enforcement.“

House Armed Services, Subcommittee on Cyber, Information Technologies, and Innovation, “Cyber in an Era of Persistent Engagement: The FY 25 Budget Request for U.S. Cyber Command and Cyber Operations.“

April 11

House Energy and Commerce, Subcommittee on Communications and Technology, “Where are We Now: Section 230 of the Communications Decency Act of 1996.“

April 16

House Homeland, Full Committee, “A Review of the Fiscal Year 2025 Budget Request for the Department of Homeland Security.“

House Financial Services, Subcommittee on National Security, Illicit Finance, and International Financial Institutions, “Held for Ransom: How Ransomware Endangers Our Financial System.“