1. U.S. Code
  2. title 7
  3. chapter 31
  4. subchapter I
  5. § 902

Collapse to view only § 902. General authority of Secretary of Agriculture

§ 901. Short title

This chapter may be cited as the “Rural Electrification Act of 1936”.

(May 20, 1936, ch. 432, title I, § 1, 49 Stat. 1363; 1939 Reorg. Plan No. II, § 5, eff. July 1, 1939, 4 F.R. 2732, 53 Stat. 1434; Oct. 28, 1949, ch. 776, § 2, 63 Stat. 948; Pub. L. 103–354, title II, § 235(a)(1), Oct. 13, 1994, 108 Stat. 3220.)

CITE AS: 7 USC 901

§ 902. General authority of Secretary of Agriculture
(a) Loans
(b) Investigations and reports
(c) Technical assistance
(May 20, 1936, ch. 432, title I, § 2, 49 Stat. 1363; Oct. 28, 1949, ch. 776, §§ 2, 3, 63 Stat. 948; Pub. L. 103–129, § 2(c)(1), Nov. 1, 1993, 107 Stat. 1363; Pub. L. 103–354, title II, § 235(a)(2), (13), Oct. 13, 1994, 108 Stat. 3220, 3221; Pub. L. 104–127, title VII, § 771, Apr. 4, 1996, 110 Stat. 1149; Pub. L. 110–234, title VI, § 6101, May 22, 2008, 122 Stat. 1195; Pub. L. 110–246, § 4(a), title VI, § 6101, June 18, 2008, 122 Stat. 1664, 1956; Pub. L. 115–334, title VI, § 6501, Dec. 20, 2018, 132 Stat. 4771; Pub. L. 116–94, div. B, title VII, § 765, Dec. 20, 2019, 133 Stat. 2655.)

CITE AS: 7 USC 902

§ 903. Authorization of appropriations

There are authorized to be appropriated such sums as are necessary to carry out this chapter.

(May 20, 1936, ch. 432, title I, § 3, 49 Stat. 1364; June 21, 1938, ch. 554, title IV, § 401, 52 Stat. 818; Sept. 21, 1944, ch. 412, title V, §§ 501, 503, 504, 58 Stat. 739, 740; July 30, 1947, ch. 356, title I, § 1, 61 Stat. 546; Oct. 28, 1949, ch. 776, §§ 2, 4(a)–(d), 63 Stat. 948; June 15, 1955, ch. 139, § 1, 69 Stat. 131; Pub. L. 92–12, § 3(a), May 7, 1971, 85 Stat. 37; Pub. L. 93–32, § 3, May 11, 1973, 87 Stat. 70; Pub. L. 103–354, title II, § 235(a)(3), (13), Oct. 13, 1994, 108 Stat. 3220, 3221; Pub. L. 104–127, title VII, § 772(a), Apr. 4, 1996, 110 Stat. 1149.)

CITE AS: 7 USC 903

§ 904. Loans for electrical plants and transmission lines
(a) In general
(b) Terms and conditions
(c) Direct loans
(1) Direct hardship loans
(2) Other direct loans
(d) Certification
(May 20, 1936, ch. 432, title I, § 4, 49 Stat. 1365; Sept. 21, 1944, ch. 412, title V, §§ 502(a), 503, 58 Stat. 739, 740; Dec. 23, 1944, ch. 725, 58 Stat. 925; June 29, 1948, ch. 703, 62 Stat. 1070; Oct. 28, 1949, ch. 776, §§ 2, 4(e), 63 Stat. 948;

CITE AS: 7 USC 904

§ 905. Fees for certain loan guarantees
(a) In general
(b) Fee
(c) Limitation
(May 20, 1936, ch. 432, title I, § 5, as added Pub. L. 113–79, title VI, § 6101, Feb. 7, 2014, 128 Stat. 850.)

CITE AS: 7 USC 905

§ 906. Funding for administrative expenses

For the purpose of administering this chapter and for the purpose of making the studies, investigations, publications, and reports herein provided for, there is authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, such sums as shall be necessary.

(May 20, 1936, ch. 432, title I, § 6, 49 Stat. 1365; Oct. 28, 1949, ch. 776, § 2, 63 Stat. 948; Pub. L. 94–124, § 3, Nov. 4, 1975, 89 Stat. 677; Pub. L. 103–437, § 4(a)(3), Nov. 2, 1994, 108 Stat. 4581; Pub. L. 104–127, title VII, § 775, Apr. 4, 1996, 110 Stat. 1150.)

CITE AS: 7 USC 906

§ 906a. Use of funds outside the United States or its territories prohibited

No funds provided under the Rural Electrification Act of 1936, as amended [7 U.S.C. 901 et seq.], shall be used outside the United States or any of its territories.

(Pub. L. 93–32, § 10, May 11, 1973, 87 Stat. 71.)

CITE AS: 7 USC 906a

§ 907. Acquisition of property pledged for loans; disposition; sale of pledged property by borrower

The Secretary is authorized and empowered to bid for and purchase at any foreclosure or other sale, or otherwise to acquire, property pledged or mortgaged to secure any loan made pursuant to this chapter; to pay the purchase price and any costs and expenses incurred in connection therewith from the sums authorized in section 903 of this title; to accept title to any property so purchased or acquired in the name of the United States of America; to operate or lease such property for such period as may be deemed necessary or advisable to protect the investment therein, but not to exceed five years after the acquisition thereof; and to sell such property so purchased or acquired, upon such terms and for such consideration as the Secretary shall determine to be reasonable.

No borrower of funds under sections 904 or 922 of this title shall, without the approval of the Secretary, sell or dispose of its property, rights, or franchises, acquired under the provisions of this chapter, until any loan obtained from the Rural Electrification Administration, including all interest and charges, shall have been repaid.

(May 20, 1936, ch. 432, title I, § 7, 49 Stat. 1365; Oct. 28, 1949, ch. 776, §§ 2, 4(f), 63 Stat. 948; Pub. L. 103–354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221.)

CITE AS: 7 USC 907

§ 908. Limitations on use of assistance
(a) Subject to subsections (b) and (c) of this section, the Secretary may allow a recipient of a grant, loan, or loan guarantee under this subchapter to set aside not more than 10 percent of the amount so received to provide retail broadband service.
(b) A recipient who sets aside funds under subsection (a) of this section may use the funds only in an area that is not being provided with the minimum acceptable level of broadband service established under section 950bb(e) of this title, unless the recipient meets the requirements of section 950bb(d) of this title.
(c) Nothing in this section shall be construed to limit the ability of any borrower to finance or deploy services authorized under this chapter.
(d) The Secretary shall not provide funding under subsection (a) if the funding would result in competitive harm to any grant, loan, or loan guarantee referred to in subsection (a).
(May 20, 1936, ch. 432, title I, § 8, as added Pub. L. 115–334, title VI, § 6210(b), Dec. 20, 2018, 132 Stat. 4744.)

CITE AS: 7 USC 908

§ 909. Administration on nonpolitical basis; dismissal of officers or employees for violating provision

This chapter shall be administered entirely on a nonpartisan basis, and in the appointment of officials, the selection of employees, and in the promotion of any such officials or employees, no political test or qualification shall be permitted or given consideration, but all such appointments and promotions shall be given and made on the basis of merit and efficiency. If the Secretary herein provided for is found by the President of the United States to be guilty of a violation of this section, he shall be removed from office by the President, and any appointee or selection of officials or employees made by the Secretary who is found guilty of a violation of this chapter shall be removed by the Secretary.

(May 20, 1936, ch. 432, title I, § 9, 49 Stat. 1366; Oct. 28, 1949, ch. 776, § 2, 63 Stat. 948; Pub. L. 103–354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221.)

CITE AS: 7 USC 909

§ 910. Repealed. Pub. L. 104–127, title VII, § 777, Apr. 4, 1996, 110 Stat. 1150

CITE AS: 7 USC 910

§ 911. Acceptance of services of Federal or State officers; application of civil service laws; expenditures for supplies and equipment

In order to carry out the provisions of this chapter the Secretary may accept and utilize such voluntary and uncompensated services of Federal, State, and local officers and employees as are available, and he may appoint and fix the compensation of attorneys, engineers, and experts and he may, subject to the civil-service laws, appoint such other officers and employees as he may find necessary and prescribe their duties. The Secretary is authorized, from sums appropriated pursuant to section 906 of this title, to make such expenditures (including expenditures for personal services; supplies and equipment; lawbooks and books of reference; directories and periodicals; travel expenses; rental at the seat of government and elsewhere; the purchase, operation, or maintenance of passenger-carrying vehicles; and printing and binding) as are appropriate and necessary to carry out the provisions of this chapter.

(May 20, 1936, ch. 432, title I, § 11, 49 Stat. 1366; Oct. 28, 1949, ch. 776, § 2, 63 Stat. 948; Pub. L. 103–354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221.)

CITE AS: 7 USC 911

§ 911a. Repealed. Pub. L. 103–354, title II, § 235(a)(5), Oct. 13, 1994, 108 Stat. 3221

CITE AS: 7 USC 911a

§ 912. Extension of time for repayment of loans
(a) In general
(b) Terms of deferment
(1) Subject to limitations established in appropriations Acts, the Secretary shall permit any borrower to defer the payment of principal and interest on any insured or direct loan made under this chapter under circumstances described in this subsection, notwithstanding any limitation contained in subsection (a), except that such deferment shall not be permitted based on the determination of the Secretary of the financial hardship of the borrower.
(2)
(A) In the case of deferments made to enable the borrower to provide financing to local businesses, the deferment shall be repaid in equal installments, without the accrual of interest, over the 60-month period beginning on the date of the deferment, and the total amount of such payments shall be equal to the amount of the payment deferred.
(B) In the case of deferments made to enable the borrower to provide community development assistance, technical assistance to businesses, and for other community, business, or economic development projects not included under subparagraph (A), the deferment shall be repaid in equal installments, without the accrual of interest, over the 120-month period beginning on the date of the deferment, and the total amount of such payments shall be equal to the amount of the payment deferred.
(3)
(A) A borrower may defer its debt service payments only in an amount equal to an investment made by such borrower as described in paragraph (2).
(B) The amount of the deferment shall not exceed 50 percent of the total cost of a community or economic development project for which a deferment is provided under this subsection.
(C) The total amount of deferments under this subsection during each of the fiscal years 1990 through 1993 shall not exceed 3 percent of the total payments due during such fiscal year from all borrowers on direct and insured loans made under this chapter and shall not exceed 5 percent of such total payments due in each subsequent fiscal year.
(D) At the time of a deferment, the borrower shall make a payment to a cushion of credit account established and maintained pursuant to section 940c of this title in an amount equal to the amount of the payment deferred. The balance of such account shall not be reduced by the borrower below the level of the unpaid balance of the payment deferred. Subject to limitations established in annual appropriations Acts, such cushion of credit amounts and any other cushion of credit and advance payments of any borrower shall be included in the interest differential calculation under section 940c(b)(2) of this title.
(4) The Secretary shall undertake all reasonable efforts to permit the full amount of deferments authorized by this subsection during each fiscal year.
(c) Deferment of payments on loans
(1) In general
The Secretary shall allow borrowers to defer payment of principal and interest on any direct loan made under this chapter to enable the borrower to make loans to residential, commercial, and industrial consumers—
(A) to conduct energy efficiency and use audits; and
(B) to install energy efficient measures or devices that reduce the demand on electric systems.
(2) Amount
(3) Term
(May 20, 1936, ch. 432, title I, § 12, 49 Stat. 1366; Oct. 28, 1949, ch. 776, §§ 2, 4(f), 63 Stat. 948; Pub. L. 101–624, title XXIII, § 2344, Nov. 28, 1990, 104 Stat. 4028; Pub. L. 103–354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221; Pub. L. 104–127, title VII, § 774(b), Apr. 4, 1996, 110 Stat. 1150; Pub. L. 110–234, title VI, § 6103, May 22, 2008, 122 Stat. 1195; Pub. L. 110–246, § 4(a), title VI, § 6103, June 18, 2008, 122 Stat. 1664, 1956; Pub. L. 115–334, title VI, § 6504(a), Dec. 20, 2018, 132 Stat. 4773.)

CITE AS: 7 USC 912

§ 912a. Rescheduling and refinancing of loans

In addition to the loan extension authority provided in section 912 of this title, the Secretary of Agriculture is authorized to adjust and readjust the schedules for payment of principal and interest on loans to borrowers under programs administered by the Secretary under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.), and to extend the maturity date of any such loan to a date not beyond forty years from the date of such loan where he determines such action is necessary because of the impairment of the economic feasibility of the system, or the loss, destruction, or damage of the property of such borrowers as a result of a major disaster.

(Pub. L. 91–606, title II, § 236(a), Dec. 31, 1970, 84 Stat. 1754; Pub. L. 103–354, title II, § 235(b)(1), Oct. 13, 1994, 108 Stat. 3221.)

CITE AS: 7 USC 912a

§ 913. Definitions
In this chapter:
(1) Farm
(2) Indian tribe
(3) Rural area
Except as provided otherwise in this chapter, the term “rural area” means the farm and nonfarm population of—
(A) any area described in section 1991(a)(13)(C) of this title; and
(B) any area within a service area of a borrower for which a borrower has an outstanding loan made under subchapters I through V as of the date of enactment of this paragraph.
(4) Territory
(5) Secretary
(May 20, 1936, ch. 432, title I, § 13, 49 Stat. 1367; Oct. 28, 1949, ch. 776, § 2, 63 Stat. 948; Pub. L. 103–129, § 2(c)(3), Nov. 1, 1993, 107 Stat. 1363; Pub. L. 103–354, title II, § 235(a)(6), Oct. 13, 1994, 108 Stat. 3221; Pub. L. 110–234, title VI, § 6104, May 22, 2008, 122 Stat. 1195; Pub. L. 110–246, § 4(a), title VI, § 6104, June 18, 2008, 122 Stat. 1664, 1957.)

CITE AS: 7 USC 913

§ 914. Separability

If any provision of this chapter, or the application thereof to any person or circumstances, is held invalid, the remainder of the chapter and the application of such provision to other persons or circumstances shall not be affected thereby.

(May 20, 1936, ch. 432, title I, § 14, 49 Stat. 1367; Oct. 28, 1949, ch. 776, § 2, 63 Stat. 948.)

CITE AS: 7 USC 914

§ 915. Purchase of financial and credit reports

The Secretary of Agriculture is authorized to purchase such financial and credit reports as may be necessary to carry out the Secretary’s authorized work: Provided, That purchases under this authority shall not be made unless provision is made therefor in the applicable appropriation and the cost thereof is not in excess of limitations prescribed therein.

(Sept. 21, 1944, ch. 412, title V, § 505, 58 Stat. 740; Pub. L. 103–354, title II, § 235(b)(2), Oct. 13, 1994, 108 Stat. 3221.)

CITE AS: 7 USC 915

§ 916. Criteria for loans

In order to insure coordination of electric generation and transmission financing under this chapter with the national energy policy, the Secretary in making or guaranteeing loans for the construction, operation, or enlargement of generating plants or electric transmission lines or systems, shall consider such general criteria consistent with the provisions of this chapter as may be published by the Secretary of Energy.

(May 20, 1936, ch. 432, title I, § 16, as added Pub. L. 95–91, title VII, § 709(f), Aug. 4, 1977, 91 Stat. 608; amended Pub. L. 103–354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221.)

CITE AS: 7 USC 916

§ 917. Prohibition on restricting water and waste facility services to electric customers
(a) Prohibition
(b) Ensuring compliance
(c) “Rural development programs” defined
In this section, the term “rural development program” means the following:
(1) Sections 304(b), 306, 306A, 306C, 306D, 310B, and 375 1
1 See References in Text note below.
and subtitle E [7 U.S.C. 2009 et seq.] of the Consolidated Farm and Rural Development Act (7 U.S.C. 1924(b), 1926, 1926a, 1926c, 1926d, and 1932).
(2) Subtitle G 1 of title XVI and sections 2281 [42 U.S.C. 5177a], 2333, and 2381 [7 U.S.C. 950aaa–2, 3125b] of the Food, Agriculture, Conservation, and Trade Act of 1990.
(3) Subtitle C of title IX of the Food, Agriculture, Conservation, and Trade Act Amendments of 1991 (Public Law 102–237; 7 U.S.C. 5930 note).
(4) Section 1323(b) of the Food Security Act of 1985 (Public Law 99–198; 7 U.S.C. 1932 note).
(5) Title V [
(6) Sections 905 and 940a 1 of this title and subchapter IV of this chapter.
(d) Regulations
(May 20, 1936, ch. 432, title I, § 17, as added Pub. L. 104–127, title VII, § 778, Apr. 4, 1996, 110 Stat. 1150.)

CITE AS: 7 USC 917

§ 918. General prohibitions
(a) No consideration of borrower’s level of general funds
(b) Loan origination fees
(c) Consultants
(1) In general
(2) Conflicts of interest
(3) Payment of costs
(4) Contracts, grants, and agreements
(5) Use of consultants
(May 20, 1936, ch. 432, title I, § 18, as added Pub. L. 101–624, title XXIII, § 2353, Nov. 28, 1990, 104 Stat. 4039; amended Pub. L. 103–129, § 2(c)(4), Nov. 1, 1993, 107 Stat. 1364; Pub. L. 103–354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221; Pub. L. 115–334, title VI, § 6602(b)(1), Dec. 20, 2018, 132 Stat. 4776.)

CITE AS: 7 USC 918

§ 918a. Energy generation, transmission, and distribution facilities efficiency grants and loans in rural communities with extremely high energy costs
(a) In general
The Secretary, acting through the Rural Utilities Service, may—
(1) in coordination with State rural development initiatives, make grants and loans to persons, States, political subdivisions of States, and other entities organized under the laws of States to acquire, construct, extend, upgrade, and otherwise improve energy generation, transmission, or distribution facilities serving communities in which the average residential expenditure for home energy is at least 275 percent of the national average residential expenditure for home energy (as determined by the Energy Information Agency using the most recent data available);
(2) make grants and loans to the Denali Commission established by the Denali Commission Act of 1998 (42 U.S.C. 3121 note; Public Law 105–277) to acquire, construct, extend, upgrade, and otherwise improve energy generation, transmission, or distribution facilities serving communities described in paragraph (1); and
(3) make grants to State entities, in existence as of November 9, 2000, to establish and support a revolving fund to provide a more cost-effective means of purchasing fuel where the fuel cannot be shipped by means of surface transportation.
(b) Authorization of appropriations
(1) In general
(2) Limitation on planning and administrative expenses
(May 20, 1936, ch. 432, title I, § 19, as added Pub. L. 106–472, title III, § 301, Nov. 9, 2000, 114 Stat. 2069.)

CITE AS: 7 USC 918a

§ 918b. Acquisition of existing systems in rural communities with high energy costs

On and after November 28, 2001, notwithstanding any other provision of law, the Secretary of Agriculture, acting through the Administrator of the Rural Utilities Service 1

1 So in original. Probably should be followed by a comma.
shall use the authorities provided in the Rural Electrification Act of 1936 [7 U.S.C. 901 et seq.] to finance the acquisition of existing generation, transmission and distribution systems and facilities serving high cost, predominantly rural areas by entities capable of and dedicated to providing or improving service in such areas in an efficient and cost effective manner.

(Pub. L. 107–76, title VII, § 748, Nov. 28, 2001, 115 Stat. 738; Pub. L. 115–334, title XII, § 12408(b), Dec. 20, 2018, 132 Stat. 4977.)

CITE AS: 7 USC 918b

§ 918c. Rural and remote communities electrification grants
(a) DefinitionsIn this section:
(1) The term “eligible grantee” means a local government or municipality, peoples’ utility district, irrigation district, and cooperative, nonprofit, or limited-dividend association in a rural area.
(2) The term “incremental hydropower” means additional generation achieved from increased efficiency after January 1, 2005, at a hydroelectric dam that was placed in service before January 1, 2005.
(3) The term “renewable energy” means electricity generated from—
(A) a renewable energy source; or
(B) hydrogen, other than hydrogen produced from a fossil fuel, that is produced from a renewable energy source.
(4) The term “renewable energy source” means—
(A) wind;
(B) ocean waves;
(C) biomass;
(D) solar;
(E) landfill gas;
(F) incremental hydropower;
(G) livestock methane; or
(H) geothermal energy.
(5) The term “rural area” means a city, town, or unincorporated area that has a population of not more than 10,000 inhabitants.
(b) GrantsThe Secretary, in consultation with the Secretary of Agriculture and the Secretary of the Interior, may provide grants under this section to eligible grantees for the purpose of—
(1) increasing energy efficiency, siting or upgrading transmission and distribution lines serving rural areas; or
(2) providing or modernizing electric generation facilities that serve rural areas.
(c) Grant administration
(1) The Secretary shall make grants under this section based on a determination of cost-effectiveness and the most effective use of the funds to achieve the purposes described in subsection (b).
(2) For each fiscal year, the Secretary shall allocate grant funds under this section equally between the purposes described in paragraphs (1) and (2) of subsection (b).
(3) In making grants for the purposes described in subsection (b)(2), the Secretary shall give preference to renewable energy facilities.
(d) Authorization of appropriations
(Pub. L. 95–617, title VI, § 609, as added Pub. L. 109–58, title II, § 209, Aug. 8, 2005, 119 Stat. 657.)

CITE AS: 7 USC 918c