I 
113TH CONGRESS 
1ST SESSION H. R. 1639 
To amend the Rural Electrification Act of 1936, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 18, 2013 
Mr. GIBSON (for himself and Mr. SCHRADER) introduced the following bill; 
which was referred to the Committee on Agriculture, and in addition to 
the Committee on Energy and Commerce, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Rural Electrification Act of 1936, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. AMENDMENTS TO THE RURAL ELECTRIFICA-
TION ACT OF 1936. 
Section 601 of the Rural Electrification Act of 1936 
(7 U.S.C. 950bb) is amended— 
(1) in subsection (a), by striking ‘‘loans and 
loan guarantees’’ and inserting ‘‘loans, loan guaran-
tees, and grants’’; 
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(2) in subsection (c)— 
(A) in paragraph (1), by inserting ‘‘, and 
may make grants,’’ after ‘‘loans’’; and 
(B) in paragraph (2), by inserting ‘‘, and 
in making grants,’’ before ‘‘under paragraph 
(1)’’; 
(3) in subsection (d), by adding at the end the 
following: 
‘‘(8) ADDITIONAL
PROCESS.—The Secretary 
shall establish a process under which an incumbent 
service provider which, as of the date of the publica-
tion of notice under paragraph (5) with respect to 
an application submitted by the provider, is pro-
viding broadband service to a remote rural area, 
may (but shall not be required to) submit to the 
Secretary, not less than 15 and not more than 30 
days after that date, information regarding the 
broadband services that the provider offers in the 
proposed service territory, so that the Secretary may 
assess whether the application meets the require-
ments of this section with respect to eligible 
projects.’’; 
(4) in subsection (e), by adding at the end the 
following: 
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‘‘(3) REQUIREMENT.—In considering the tech-
nology needs of customers in a proposed service ter-
ritory, the Secretary shall take into consideration the 
upgrade or replacement cost for the construction or 
acquisition of facilities and equipment in the terri-
tory.’’; 
(5) by redesignating subsections (k) and (l) as 
subsections (l) and (m), respectively, and inserting 
after subsection (j) the following: 
‘‘(k) MATCHING GRANTS.— 
‘‘(1) IN GENERAL.—The Secretary may make a 
grant to an entity for a project with respect to which 
a loan or loan guarantee is made under this section. 
‘‘(2) AMOUNT.— 
‘‘(A) IN
GENERAL.—The amount of the 
grant shall not exceed 10 percent of the cost of 
the project. 
‘‘(B) MATCH
REQUIREMENT.—The Sec-
retary may not make a grant to an entity for 
a project unless the entity has made a binding 
commitment to the Secretary that the entity 
will provide for the project, from non-Federal 
sources, an amount equal to the amount of the 
grant.’’; 
(6) in subsection (l) (as so redesignated)— 
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(A) by striking paragraph (1) and insert-
ing the following: 
‘‘(1) LIMITATIONS ON AUTHORIZATION OF AP-
PROPRIATIONS.—There is authorized to be appro-
priated to the Secretary to carry out this section 
such sums as may be necessary for each of fiscal 
years 2013 through 2017, to remain available until 
expended. Of the sums made available to carry out 
this section for a fiscal year— 
‘‘(A) 70 percent shall be available for the 
cost of loans and loan guarantees under this 
section; and 
‘‘(B) 30 percent shall be available for 
grants under this section.’’; and 
(B) in paragraph (2)— 
(i) in the paragraph heading, insert 
‘‘LOAN
AND
LOAN
GUARANTEE’’ before 
‘‘FUNDS’’; and 
(ii) in subparagraph (A), by inserting 
‘‘for loans and loan guarantees’’ before 
‘‘under this subsection’’; and 
(7) in subsection (m) (as so redesignated), by 
striking ‘‘2013’’ and inserting ‘‘2017’’. 
Æ 
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