I 
112TH CONGRESS 
2D SESSION 
H. R. 6526 
To provide that an Order of the Federal Communications Commission adopt-
ing a methodology for establishing certain benchmarks for Universal 
Service Fund high-cost loop support shall have no force or effect and 
to require the Commission to prepare a report on alternatives to such 
methodology. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 21, 2012 
Mr. LANDRY introduced the following bill; which was referred to the 
Committee on Energy and Commerce 
A BILL 
To provide that an Order of the Federal Communications 
Commission adopting a methodology for establishing cer-
tain benchmarks for Universal Service Fund high-cost 
loop support shall have no force or effect and to require 
the Commission to prepare a report on alternatives to 
such methodology. 
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 ‘‘Restore Effective Sta-
tistics to the Calculation of USF Expenditures Act of 
2012’’ or the ‘‘RESCUE Act of 2012’’. 
VerDate Mar 15 2010 
02:00 Oct 04, 2012
Jkt 029200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H6526.IH
H6526
jbell on DSK7SPTVN1PROD with BILLS
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) The Order of the Federal Communications 
Commission in the Matter of Connect America Fund 
and High-Cost Universal Service Support (Adopted 
on April 25, 2012; DA 12–646) will inevitably lead 
to the closure of many small businesses, several in 
economically disadvantaged and underserved areas. 
(2) The Order is in direct conflict with the stat-
utory mandate that the Universal Service Fund re-
main ‘‘predictable’’ for carriers involved, as specified 
in section 254 of the Communications Act of 1934, 
as added by the Telecommunications Act of 1996. 
(3) The Order relies upon regression models 
with unacceptably low levels of predicted accuracy, 
leading to inequitable redistributions of high-cost 
support. 
(4) The Order unfairly manipulates carriers’ 
support based upon investment decisions made prior 
to the Order’s release, effectively imposing retro-
active penalties on carriers for prior commitments 
made. 
(5) The Order is fundamentally flawed and 
must be replaced with an alternative plan that is fis-
cally responsible and that gives accurate treatment 
to all stakeholders involved. 
VerDate Mar 15 2010 
02:00 Oct 04, 2012
Jkt 029200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H6526.IH
H6526
jbell on DSK7SPTVN1PROD with BILLS
SEC. 3. FCC ORDER TO HAVE NO FORCE OR EFFECT. 
The Order of the Federal Communications Commis-
sion in the Matter of Connect America Fund and High- 
Cost Universal Service Support (Adopted on April 25, 
2012; DA 12–646) (relating to the adoption of a method-
ology for establishing benchmarks for capital and oper-
ating costs reimbursable to rate-of-return cost companies 
from high-cost loop support) shall have no force or effect 
after the date of the enactment of this Act. 
SEC. 4. REPORT ON ALTERNATIVE METHODOLOGIES. 
(a) IN GENERAL.—The Federal Communications 
Commission shall prepare a report on alternatives to the 
methodology adopted in the Order described in section 3. 
(b) SUBMISSION
TO CONGRESS; PUBLIC AVAIL-
ABILITY.—Not later than 120 days after the date of the 
enactment of this Act, the Federal Communications Com-
mission shall— 
(1) submit the report required by subsection (a) 
to the Committee on Energy and Commerce of the 
House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Sen-
ate; and 
(2) make such report publicly available on the 
Internet website of the Commission. 
(c) OPPORTUNITY FOR CONGRESSIONAL INPUT ON 
ALTERNATIVES.—The Federal Communications Commis-
VerDate Mar 15 2010 
02:00 Oct 04, 2012
Jkt 029200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H6526.IH
H6526
jbell on DSK7SPTVN1PROD with BILLS
sion may not adopt an alternative to the methodology 
adopted in the Order described in section 3 before the date 
that is 60 days after the date on which the Commission 
submits the report required by subsection (a). 
Æ 
VerDate Mar 15 2010 
02:00 Oct 04, 2012
Jkt 029200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6301
E:\BILLS\H6526.IH
H6526
jbell on DSK7SPTVN1PROD with BILLS