Reinforcing Utility Restoration After Losses (RURAL) Act
This bill provides authority and funding for the Department of Agriculture to establish a loan program for certain rural utility service providers (e.g., electric, telecommunications, or waste disposal service providers) to replace specified losses during a federally declared disaster or emergency.
During such a disaster or emergency, interest on the loan shall not accrue, and repayment of principal shall not be required. Borrowers may qualify for partial loan forgiveness if certain requirements are met.
The bill also establishes and provides funding for a Rural Utility Bridge Loan Fund to implement the program.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7680 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 7680
To provide for loans to critical rural utility service providers to
ensure continued service and safe operation of rural utility systems
during certain emergencies, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 20, 2020
Mr. Crawford introduced the following bill; which was referred to the
Committee on Agriculture
_______________________________________________________________________
A BILL
To provide for loans to critical rural utility service providers to
ensure continued service and safe operation of rural utility systems
during certain emergencies, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Reinforcing Utility Restoration
After Losses (RURAL) Act''.
SEC. 2. RURAL UTILITY BRIDGE LOANS.
(a) In General.--Title VII of the Rural Electrification Act of 1936
(7 U.S.C. 950cc-950cc-2) is amended by adding at the end the following:
``SEC. 704. RURAL UTILITY BRIDGE LOANS.
``(a) Line of Credit.--
``(1) In general.--The Secretary may provide an eligible
borrower with a line of credit from which a loan may be made to
replace qualified losses as a result of a covered emergency.
``(2) Amount.--The amount of the line of credit shall be
the lesser of--
``(A) 25 percent of the total revenue received by
the borrower during the 12-month period ending with the
day before the date of the determination referred to in
subsection (c)(3) with respect to the covered
emergency; or
``(B) $5,000,000.
``(b) Loans.--
``(1) In general.--On receipt by the Secretary of
documentation that the eligible borrower has a qualified loss
as a result of a covered emergency, the Secretary shall make a
loan to the borrower from the line of credit in an amount equal
to the lesser of--
``(A) the qualified loss; or
``(B) the unused amount of the line of credit.
``(2) Eligibility of qualified loss.--
``(A) In general.--Except as provided in
subparagraph (B) of this paragraph, a qualified loss is
eligible for a loan made from the line of credit if the
loss is incurred not more than 180 days after the date
of the determination referred to in subsection (c)(3)
with respect to the covered emergency.
``(B) Authority to adjust.--The Secretary may--
``(i) on request of the eligible borrower,
reduce the length of eligibility period
described in subparagraph (A); or
``(ii) on a determination that the borrower
is continuing to incur significant qualified
losses as a result of a covered emergency,
increase the length of the period.
``(3) Loan terms.--
``(A) No payment required during emergency.--During
the covered emergency, interest on the loan shall not
accrue, and repayment of principal on the loan shall
not be required.
``(B) Loan consolidation after emergency ends.--
Unless the Secretary determines that the borrower
requires additional time to submit documentation of
qualified losses, on the date that is 60 days after the
eligibility period described in paragraph (2) ends, the
Secretary shall close the line of credit, and
consolidate all loans made to the borrower under this
section with respect to the emergency into a single
loan with the following terms:
``(i) Grace period.--During the 2-year
period that begins with the date the
consolidated loan is made, interest on the
consolidated loan shall not accrue, and
repayment of principal on the consolidated loan
shall not be required.
``(ii) Interest.--Interest on the
consolidated loan shall accrue at a rate of 1
percent per year during the 3-year period that
begins at the end of that 2-year period.
``(iii) Repayment period.--The loan shall
be repayable in full by the end of the 5-year
period that begins with the date the
consolidated loan is made.
``(C) No fee or prepayment penalty.--The Secretary
may not impose a fee or prepayment penalty with respect
to any loan made under this section.
``(4) Forgiveness.--
``(A) In general.--Except as provided in
subparagraph (B), if the borrower makes one or more
qualified write-offs after the 1-year period that
begins with the date a consolidated loan is made to the
borrower under this section, the Secretary shall
forgive repayment of a portion of the loan, in an
amount equal to--
``(i) 90 percent of the first $500,000 of
the total amount of the qualified write-offs;
``(ii) 60 percent of the next $1,000,000 of
the total amount of the qualified write-offs;
and
``(iii) 30 percent of the next $1,000,000
of the total amount of the qualified write-
offs.
``(B) Ineligibility of borrower who interrupts
service during emergency.--Subparagraph (A) shall not
apply with respect to the borrower if, during the
covered emergency, the borrower suspends or interrupts
utility service to any customer or subscriber of the
borrower for non-payment of an amount owed to the
borrower.
``(c) Definitions.--In this section:
``(1) Eligible borrower.--The term `eligible borrower'
means an entity that--
``(A) provides electric, telecommunications, clean
water, waste water, or waste disposal services; and
``(B) is eligible for assistance under--
``(i) section 4, 201, or 601 of the Rural
Electrification Act of 1936; or
``(ii) section 306(a) of the Consolidated
Farm and Rural Development Act.
``(2) Qualified loss.--
``(A) In general.--Subject to subparagraph (B), the
term `qualified loss' means, with respect to a borrower
and a covered emergency--
``(i) an amount owed to the borrower for
services provided during the emergency, which
are more than 15 days past due; and
``(ii) an amount not received by the
borrower because of reduced demand for services
sold by the borrower on a per-unit basis, to
the extent that the reduction is attributable
to the emergency.
``(B) Reduction.--The total amount determined under
subparagraph (A) shall be reduced by the fair market
value of any assistance received by the borrower from
any source while the line of credit is open, for the
purpose of offsetting the loss of routine operating
revenue or covering the cost of routine operating
expenses, during the covered emergency, excluding any
assistance provided to repair, recover, or rebuild from
damage due to the emergency.
``(3) Covered emergency.--The term `covered emergency'
means--
``(A) a major disaster or emergency, as determined
by the President under the Robert T. Stafford Disaster
Relief and Emergency Assistance Act;
``(B) a natural disaster, as determined by the
Secretary of Agriculture; or
``(C) an emergency involving Federal primary
responsibility determined to exist by the President
under the section 501(b) of such Act.
``(4) Qualified write-off.--The term `qualified write-off'
means, with respect to a borrower--
``(A) an amount described in paragraph (2)(A)(i),
if the borrower assigns to the Secretary the right to
any payment of the amount; and
``(B) 90 percent of an amount described in
paragraph (2)(A)(ii).
``(d) Regulations.--The Secretary may, on an expedited basis,
prescribe such regulations as are necessary to carry out the preceding
provisions of this section.
``(e) Rural Utility Bridge Loan Fund.--
``(1) Establishment.--There is established in the Treasury
of the United States a revolving fund to be known as the `Rural
Utility Bridge Loan Fund' (in this subsection referred to as
the `Fund').
``(2) Deposits and credits.--There shall be deposited in,
or credited to, the Fund the following:
``(A) All amounts appropriated to the Fund.
``(B) All amounts paid as principal or interest on
a loan made under this section.
``(C) All interest on, and proceeds from the sale
or redemption of, any obligations invested in under
paragraph (4).
``(3) Use of funds.--
``(A) In general.--The amounts in the Fund shall be
available for loans under this section without further
appropriation.
``(B) Administrative expenses.--With respect to
each covered emergency, the Secretary may use amounts
in the Fund for administrative expenses, as follows:
``(i) Establishment of lines of credit.--
For expenses incurred in establishing lines of
credit under this section, an amount equal to 1
percent of the Fund balance as of the date of
the determination referred to in subsection
(c)(3) with respect to the covered emergency.
``(ii) Making and servicing of loans.--
During each fiscal year, for expenses incurred
in making and servicing loans (including
consolidated loans) under this section, an
amount equal to 3 percent of the average total
amount of loans outstanding under this section
during the fiscal year with respect to the
covered emergency.
``(iii) Limitation.--In addition, the
Secretary may not use more than $30,000,000
during each fiscal year for any administrative
expense incurred in carrying out this section.
``(4) Investments.--
``(A) In general.--The Secretary may request the
Secretary of the Treasury to invest the portion of the
Fund that is not, in the judgment of the Secretary of
Agriculture, required to meet the current needs of the
Fund.
``(B) Eligible investments.--On receipt of such a
request, the Secretary of the Treasury shall invest the
amount involved in obligations of the United States or
obligations that are guaranteed as to principal and
interest by the United States, with maturities suitable
to the needs of the Fund as determined by the Secretary
of Agriculture.''.
(b) Appropriation.--Out of any amounts in the Treasury of the
United States not otherwise appropriated, there are appropriated to the
Rural Utility Bridge Loan Fund $5,000,000,000, without fiscal year
limitation. For purposes of section 704(c)(3)(B)(i) of the Rural
Electrification Act of 1936, with respect to a covered emergency
declared in response to the COVID-19 pandemic, the Fund balance is
deemed to be the amount specified in the preceding sentence.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Agriculture.
Referred to the Subcommittee on Commodity Exchanges, Energy, and Credit.
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