I

103D CONGRESS

1ST SESSION H. R. 2705

To eliminate the Rural Electrification Administration.

IN THE HOUSE OF REPRESENTATIVES

JULY 22, 1993

Mr. COX (for himself, Mr. LIPINSKI, Mr. ANDREWS of New Jersey, Mr.

TORKILDSEN, Mr. SHAYS, Mr. ROYCE, Mr. KING, Mr. CRANE, Mr. PORTER, and Mr. DORNAN) introduced the following bill; which was referred

to the Committee on Agriculture

A BILL

To eliminate the Rural Electrification Administration.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. REDUCTION OF LOAN SUBSIDIES AVAILABLE

4 FROM THE RURAL ELECTRIFICATION ADMIN5 ISTRATION.

6 (a) REDUCTION OF LOAN SUBSIDIES.—

7 (1) IN GENERAL.—Title I of the Rural Elec8 trification Act of 1936 (7 U.S.C. 901–946) is

9 amended by adding at the end the following:
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1 ‘‘SEC. 19. INTEREST RATE ON LOANS AND ADVANCES

2 UNDER THIS ACT.

3 ‘‘The rate of interest on any loan made on or after

4 the date of the enactment of this section, or on any ad5 vance made on or after such date under loan commitments

6 made at any time, under this Act, shall equal the coupon

7 equivalent yield on obligations of the Treasury of the

8 United States of comparable maturity, at the most recent

9 auction of such obligations by the Department of the

10 Treasury.’’.

11 (2) CONFORMING AMENDMENTS.—

12 (A) Section 4 of such Act (7 U.S.C. 904)

13 is amended by striking ‘‘, and shall bear inter14 est at the rate of 2 per centum per annum’’.

15 (B) Section 5 of such Act (7 U.S.C. 905)

16 is amended by striking ‘‘, and shall be at a rate

17 of interest of 2 per centum per annum’’.

18 (C) Section 305 of such Act (7 U.S.C.

19 935) is amended by striking subsection (b), and

20 by redesignating subsections (c) and (d) as sub21 sections (b) and (c), respectively.

22 (D) Section 408(b) of such Act (7 U.S.C.

23 948(b)) is amended by striking paragraph (3),

24 and by redesignating paragraphs (4) through

25 (8) as paragraphs (3) through (7), respectively.
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1 (b) ELIGIBILITY OF NEEDY ELECTRIC GENERATION

2 AND TRANSMISSION COOPERATIVES FOR LOAN SUB3 SIDIES.—Section 306(a)(15) of the Consolidated Farm

4 and Rural Development Act (7 U.S.C. 1926(a)(15)) is

5 amended by adding at the end the following:

6 ‘‘(E) The Secretary may make loans, not to exceed

7 $1,000,000 for any single loan, to any cooperative associa8 tion for the supply and distribution of electric power if

9 the Secretary determines that the association cannot ob10 tain sufficient credit elsewhere from reliable sources at

11 reasonable rates and terms for such purposes.’’.

12 (c) EFFECTIVE DATE.—This section shall take effect

13 on the date of the enactment of this Act.

14 SEC. 2. ELIMINATION OF RURAL ELECTRIFICATION ADMIN15 ISTRATION.

16 (a) REPEAL OF RURAL ELECTRIFICATION ACT OF

17 1936.—The Rural Electrification Act of 1936 (7 U.S.C.

18 901–950b) is repealed.

19 (b) EFFECT ON EXISTING CONTRACTS.—

20 (1) IN GENERAL.—Except as provided in para21 graph (2), the repeal made by subsection (a) shall

22 not be construed to permit the violation of any con23 tract entered into before the effective date of this

24 section.
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1 (2) SALE OF OUTSTANDING LOANS.—During

2 the 5-year period that begins on the effective date of

3 this section, the Secretary of Agriculture shall sell to

4 private investors all interests of the United States in

5 the outstanding loans made under the Rural Elec6 trification Act of 1936, for cash only, on the most

7 favorable terms to the Federal Government that are

8 then obtainable.

9 (c) REFERENCES.—Any reference in any law to the

10 Administrator of the Rural Electrification Administration

11 is deemed to be a reference to the Secretary of Agri12 culture.

13 (d) EFFECTIVE DATE.—This section shall take effect

14 2 years after the date of the enactment of this Act.

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