I 
110TH CONGRESS 
1ST SESSION H. R. 2174 
To amend the Rural Electrification Act of 1936 to establish an Office of 
Rural Broadband Initiatives in the Department of Agriculture, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 3, 2007 
Mr. SALAZAR introduced the following bill; which was referred to the Com-
mittee 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 provisions as fall within the juris-
diction of the committee concerned 
A BILL 
To amend the Rural Electrification Act of 1936 to establish 
an Office of Rural Broadband Initiatives in the Depart-
ment of Agriculture, 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. SHORT TITLE. 
This Act may be cited as the ‘‘Rural Broadband Ini-
tiative Act of 2007’’. 
SEC. 2. OFFICE OF RURAL BROADBAND INITIATIVES. 
(a) IN GENERAL.—Title VI of the Rural Electrifica-
tion Act of 1936 (7 U.S.C. 950bb) is amended— 
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(1) by redesignating section 601 as section 603; 
and 
(2) by inserting before section 603 the fol-
lowing: 
‘‘SEC. 601. DEFINITIONS. 
‘‘In this title: 
‘‘(1) OFFICE.—The term ‘Office’ means the Of-
fice of Rural Broadband Initiatives established by 
section 602(a)(1). 
‘‘(2) UNDER
SECRETARY.—The term ‘Under 
Secretary’ means the Under Secretary for Rural 
Broadband Initiatives appointed under section 
602(a)(2). 
‘‘SEC. 602. OFFICE OF RURAL BROADBAND INITIATIVES. 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) IN GENERAL.—There is established in the 
Department of Agriculture an office to be known as 
the ‘Office of Rural Broadband Initiatives’. 
‘‘(2) UNDER SECRETARY.—The head of the Of-
fice shall be the Under Secretary for Rural 
Broadband Initiatives, who shall— 
‘‘(A) be appointed by the President, by and 
with the advice and consent of the Senate; and 
‘‘(B) report directly to the Secretary. 
‘‘(b) RESPONSIBILITIES.— 
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‘‘(1) IN
GENERAL.—The Under Secretary 
shall— 
‘‘(A) as of the date of enactment of this 
section, administer all rural broadband-related 
grant and loan programs previously adminis-
tered by the Administrator of the Rural Utili-
ties Service, including— 
‘‘(i) the rural broadband access loan 
and loan guarantee program established 
under section 603; and 
‘‘(ii) the Community Connect Grant 
Program described in subpart A of part 
1739 of title 7, Code of Federal Regula-
tions (or successor regulations). 
‘‘(2) REQUIREMENTS.—The Under Secretary 
shall— 
‘‘(A) conduct extensive, nationwide out-
reach to rural areas; 
‘‘(B) foster the development of a com-
prehensive rural broadband strategic vision; 
‘‘(C) plan coordination of Federal re-
sources for State, regional, and local govern-
ments to assist citizens living and working in 
rural areas; 
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‘‘(D) assess all relevant technologies (in-
cluding WiFi, WIMAX, DSL, cable, satellite, 
fiber, optical fiber, and broadband) over power 
lines, as the technologies are able to support in 
whole or in part rural broadband needs and re-
quirements; 
‘‘(E) serve as a single information source 
for all rural broadband programs and services 
administered by Federal agencies; and 
‘‘(F) provide technical assistance to State, 
regional, and local governments to develop 
broadband deployment strategies. 
‘‘(c) COMPREHENSIVE RURAL BROADBAND STRAT-
EGY.— 
‘‘(1) IN GENERAL.—Not later than 180 days 
after the appointment of the first Under Secretary, 
the Under Secretary shall submit to the President 
and Congress a report describing comprehensive 
rural broadband strategy that includes— 
‘‘(A) recommendations— 
‘‘(i) to promote interagency coordina-
tion of Federal agencies in regards to poli-
cies, procedures, and targeted resources, 
and to improve and streamline the polices, 
programs, and services; 
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‘‘(ii) to coordinate among Federal 
agencies 
regarding 
existing 
rural 
broadband or rural initiatives that could be 
of value to rural broadband development; 
‘‘(iii) to address both short- and long- 
term solutions and needs assessments for a 
rapid build-out of rural broadband solu-
tions and applications for Federal, State, 
regional, and local government policy mak-
ers; 
‘‘(iv) to identify how specific Federal 
agency programs and resources can best 
respond to rural broadband requirements 
and overcome obstacles that currently im-
pede rural broadband deployment; and 
‘‘(v) to promote successful model de-
ployments and appropriate technologies 
being used in rural areas so that State, re-
gional, and local governments can benefit 
from the cataloging and successes of other 
State, regional, and local governments; and 
‘‘(B) a description of goals and timeframes 
to achieve the strategic plans and visions identi-
fied in the report. 
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‘‘(2) UPDATES.—The Under Secretary shall up-
date and evaluate the report described in paragraph 
(1) on an annual basis. 
‘‘(d) NATIONAL RURAL BROADBAND INNOVATION 
FUND.— 
‘‘(1) ESTABLISHMENT.—There is established in 
the Treasury of the United States a revolving fund, 
to be known as the ‘National Rural Broadband In-
novation Fund’ (referred to in this subsection as the 
‘Fund’), consisting of— 
‘‘(A) such amounts as are appropriated to 
the Fund under paragraph (5); and 
‘‘(B) any interest earned on investment of 
amounts in the Fund under paragraph (4). 
‘‘(2) USE OF FUND.— 
‘‘(A) IN GENERAL.—The Under Secretary 
shall use the amounts in the Fund to fund ex-
perimental and pilot rural broadband projects 
and applications, including WiFi, WIMAX, 
DSL, cable, satellite, fiber, optical fiber, and 
broadband delivery over power lines. 
‘‘(B) REPORT.—Not later than 90 days 
after the date of appointment of the first Under 
Secretary, the Under Secretary shall submit to 
Congress a report that describes— 
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‘‘(i) proposed rules for the administra-
tion of the Fund; and 
‘‘(ii) proposed qualification guidelines 
for projects to receive funding under this 
subsection. 
‘‘(3) EXPENDITURES FROM FUND.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), on request by the Under Secretary, 
the Secretary of the Treasury shall transfer 
from the Fund to the Under Secretary such 
amounts as the Under Secretary determines are 
necessary to fund projects under paragraph (2). 
‘‘(B) 
ADMINISTRATIVE
EXPENSES.—An 
amount not exceeding 10 percent of the 
amounts in the Fund shall be available for each 
fiscal year to pay the administrative expenses 
necessary to carry out this subsection. 
‘‘(4) INVESTMENT OF AMOUNTS.— 
‘‘(A) IN GENERAL.—The Secretary of the 
Treasury shall invest such portion of the Fund 
as is not, in the judgment of the Secretary of 
the Treasury, required to meet current with-
drawals. 
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‘‘(B) INTEREST-BEARING OBLIGATIONS.— 
Investments may be made only in interest-bear-
ing obligations of the United States. 
‘‘(C) ACQUISITION OF OBLIGATIONS.—For 
the purpose of investments under subparagraph 
(A), obligations may be acquired— 
‘‘(i) on original issue at the issue 
price; or 
‘‘(ii) by purchase of outstanding obli-
gations at the market price. 
‘‘(D) SALE OF OBLIGATIONS.—Any obliga-
tion acquired by the Fund may be sold by the 
Secretary of the Treasury at the market price. 
‘‘(E) CREDITS TO FUND.—The interest on, 
and the proceeds from the sale or redemption 
of, any obligations held in the Fund shall be 
credited to, and form a part of, the Fund. 
‘‘(5) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to the Fund 
$20,000,000 for each of fiscal years 2008 through 
2012. 
‘‘(e) RURAL BROADBAND ADVISORY PANEL.— 
‘‘(1) IN
GENERAL.—Not later than 60 days 
after the date of appointment of the first Under Sec-
retary, the Under Secretary shall submit to Con-
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gress a plan to establish a Rural Broadband Advi-
sory Panel (referred to in this subsection as the 
‘Panel’). 
‘‘(2) 
CHAIRPERSON.—The 
Panel 
shall 
be 
chaired by the Under Secretary or a designee. 
‘‘(3) MEMBERSHIP.—The Panel shall be com-
posed of representatives of— 
‘‘(A) State government; 
‘‘(B) local government; 
‘‘(C) communications equipment vendors 
(including broadband data service providers); 
‘‘(D) public utility services; 
‘‘(E) local exchange carriers; 
‘‘(F) wireless carriers; 
‘‘(G) satellite communications services; and 
‘‘(H) other appropriate public or private 
sector entities, as determined by the Under Sec-
retary. 
‘‘(4) MEETINGS.—The Panel shall meet not less 
than 4 times each year. 
‘‘(5) DUTIES.—The Advisory Panel shall— 
‘‘(A) assist the Under Secretary in updat-
ing the annual report described in subsection 
(c)(2); 
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‘‘(B) evaluate the effectiveness of all Fed-
eral broadband assistance programs and policies 
aimed at fostering broadband access in rural 
and underserved areas; 
‘‘(C) evaluate best practices employed at 
the State and local government level to foster 
broadband access in rural and underserved 
areas; and 
‘‘(D) cooperate with the Under Secretary 
in addressing and evaluating issues determined 
by the Under Secretary to be critical to fos-
tering broadband access and connectivity in 
rural and underserved areas. 
‘‘(f) WEB-BASED
CLEARINGHOUSE.—The Under 
Secretary shall establish a comprehensive and interactive 
rural broadband Web-based clearinghouse that describes 
options, opportunities, resources, successful public-private 
partnerships, comprehensive funding sources, and tech-
nology tutorials for rural broadband, including— 
‘‘(1) case studies; 
‘‘(2) descriptions of best practices; 
‘‘(3) assessments of various technology solu-
tions; 
‘‘(4) feasibility studies; 
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‘‘(5) applications, including telework, telemedi-
cine, distance learning, training, homeland security, 
senior citizen connectivity and program development, 
and business and economic development; 
‘‘(6) rural broadband options and policies anal-
ysis; and 
‘‘(7) support for networks among rural commu-
nities and economic development agencies.’’. 
(b) CONFORMING AMENDMENTS.—Section 603 of the 
Rural Electrification Act of 1936 (as redesignated by sub-
section (a)(1)) is amended— 
(1) in subsection (d)(2), by striking ‘‘Adminis-
trator’’ and inserting ‘‘Under Secretary’’; and 
(2) in subsection (i)— 
(A) by striking ‘‘Administrator’’ each place 
it appears and inserting ‘‘Under Secretary’’; 
(B) by redesignating paragraphs (1) and 
(2) as subparagraphs (A) and (B), respectively, 
and indenting appropriately; 
(C) by striking ‘‘Not later than’’ and in-
serting the following: 
‘‘(1) IN GENERAL.—Not later than’’; and 
(D) by adding at the end the following: 
‘‘(2) RULES REVISION.— 
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‘‘(A) IN
GENERAL.—Not later than 60 
days after the date of appointment of the first 
Under Secretary, the Under Secretary shall 
submit to Congress a revision of the rules and 
qualification criteria for the loan and loan guar-
antee program under this section. 
‘‘(B) REQUIREMENTS.—In preparing the 
revision, the Under Secretary shall— 
‘‘(i) emphasize streamlining the appli-
cation process and processing time; 
‘‘(ii) ensure that the financial require-
ments for applicants do not unduly dis-
qualify applicants that have demonstrated 
a viable business plan; and 
‘‘(iii) not diminish the mission of the 
program to deliver broadband service to 
underserved rural areas.’’. 
SEC. 3. SUFFICIENCY OF RESOURCES. 
(a) IN GENERAL.—Not later than 60 days after the 
date of enactment of this Act, the Secretary of Agriculture 
shall submit to Congress a report describing the resources 
and staff necessary to carry out this Act and the amend-
ments made by this Act. 
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(b) PREPARATION OF REPORT.—The Secretary shall 
provide the Office of Rural Broadband Initiatives the re-
sources and staff necessary to carry out this section. 
(c) COMPTROLLER GENERAL REVIEW.— 
(1) IN GENERAL.—The Comptroller General of 
the United States shall review the report submitted 
under subsection (a) for validity. 
(2) REPORT.—Not later than 30 days after the 
date on which the report is submitted under sub-
section (a), the Comptroller General of the United 
States shall submit to Congress a report containing 
the findings of the review under paragraph (1). 
Æ 
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