I 113th CONGRESS 1st Session H. R. 1639 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 provisions as fall within the jurisdiction of the committee concerned A BILL To amend the Rural Electrification Act of 1936, and for other purposes.

1. Amendments to the Rural Electrification 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 guarantees, and grants ; (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 publication of notice under paragraph (5) with respect to an application submitted by the provider, is providing 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 requirements of this section with respect to eligible projects. ; (4) in subsection (e), by adding at the end the following: (3) Requirement In considering the technology needs of customers in a proposed service territory, the Secretary shall take into consideration the upgrade or replacement cost for the construction or acquisition of facilities and equipment in the territory. ; (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 Secretary 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)— (A) by striking paragraph (1) and inserting the following: (1) Limitations on authorization of appropriations There is authorized to be appropriated 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 .