Order Code RL34126
Rural Development Provisions
of the 2008 Farm Bill
Updated September 18, 2008
Tadlock Cowan
Analyst in Natural Resources and Rural Development Policy
Resources, Science, and Industry Division

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Rural Development Provisions of the 2008 Farm Bill
Summary
Congress has expressed its concern with rural communities most directly
through periodic omnibus farm bill legislation, most recently in the Food,
Conservation, and Energy Act of 2008 (P.L. 110-246). Congress uses periodic farm
bills to address emerging rural issues as well as to reauthorize and/or amend a wide
range of rural programs administered by USDA’s three rural development mission
agencies: Rural Housing Service, Rural Business-Cooperative Service, and Rural
Utilities Service.
Title VI addresses a wide range of policy issues concerning rural America. In
the 2002 farm bill, these issues included provisions such as equity capital
development in rural areas, regional economic planning and development, essential
community facilities, infrastructure needs, value-added agricultural development, and
broadband telecommunications development. The 2008 farm bill considers similar
issues and addresses several new ones. The new farm bill expands broadband access
in rural areas, creates a new micro-entrepreneurial assistance program and a new rural
collaborative investment program, and authorizes three new regional economic
development commissions. The bill also authorizes $120 million for a one-time
funding of pending water and wastewater infrastructure projects.
Several programs authorized with mandatory spending in the 2002 farm bill are
reauthorized with discretionary funding in the new farm bill (Rural Firefighters and
Emergency Personnel, Rural Strategic Investment Program, Rural Business
Investment Program, and the Access to Broadband Services in Rural Areas). The
Value-Added Grants Program, similarly authorized in the 2002 farm bill, is also
reauthorized by P.L. 110-246 with $15 million of mandatory funding and $40 million
of discretionary funding. A side-by-side comparison of House- and Senate-passed
provisions and the 2002 and 2008 farm bills is provided at the end of the report in the
Appendix.
The 2008 farm bill also modifies the 2002 definition of “rural” to include “areas
rural in character.” This modification in the definition of “rural” establishes criteria
for defining rural areas contiguous to urban areas. The bill further directs the
Secretary of Agriculture to produce a report within two years on the various
definitions of “rural” used by USDA in providing assistance. The report will also
assess the impacts these various definitions have on the delivery of rural development
programs with the objective of better targeting assistance where it is most needed.
The 2008 farm bill also reauthorizes and/or amends through FY2012 many long-
standing programs funded through annual appropriations — water and waste disposal
grants, technical assistance for rural water systems, emergency community water
assistance, business opportunity grants, water assistance to Native villages in Alaska,
community facilities for Tribal colleges, distance learning and telemedicince.
This report will be updated.

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Contents
Policy Background and Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Issues Influencing the Rural Development Title . . . . . . . . . . . . . . . . . . . . . . 2
Federal Rural Development Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Title VI of the Food, Conservation, and Energy Act of 2008
(P.L. 110-246) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
New Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Other Major Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Broadband and Telecommunications . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Rural Utilities Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Business and Community Development . . . . . . . . . . . . . . . . . . . . . . . . 7
Regional Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Appendix: Side-by-Side Comparison of Rural Development Provisions in the
House- and Senate-Passed Farm Bills with the 2002 and 2008 Farm Bills . 10
Title VI: Rural Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Defining Rural Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Rural Infrastructure: Water and Waste Disposal . . . . . . . . . . . . . . . . . 10
Rural Broadband and Telecommunications Development . . . . . . . . . 12
Agricultural-Based Rural Economic Development . . . . . . . . . . . . . . . 15
Regional Economic Development and Planning . . . . . . . . . . . . . . . . . 16
Rural Entrepreneurship and Business Investment Programs . . . . . . . . 17
Community Development Programs . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Other Rural Development Provisions . . . . . . . . . . . . . . . . . . . . . . . . . 21

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Rural Development Provisions of the
2008 Farm Bill
Policy Background and Overview
While farm commodity issues may occupy center stage in policy discussions of
the periodic omnibus farm bills, rural community and economic development are also
topics of congressional concern and a separate title within the farm bill. Since 1973,
omnibus farm bills have included a rural development title. The most recent is Title
VI of the Food, Conservation, and Energy Act of 2008 (P.L. 110-246). Positioning
rural areas to better compete in a global economic environment is one of the key
issues framing the current debate about the future of rural America. When
agricultural production and related businesses dominated rural economies, policies
that strengthened and improved agriculture tended to strengthen and improve the
well-being of most of America’s small communities and rural residents. As the
strength of this linkage has declined, the need for new sources of rural economic
development has become more apparent to policymakers and rural development
practitioners.
Congressional interest in rural policy encompasses a wide range of issues,
including agriculture, forestry, and mining, community infrastructure, natural
resource conservation and management, medical care, bioenergy and economic
development. Current challenges to and reform of existing federal rural policies are
evolving in an environment of increasing concern about economic competitiveness,
a shift away from agriculture toward manufacturing and services, new federal
political strategies, and the emergence of new political interests in farm bill
deliberations. A changing rural America is also producing pressures for different
policies and raising new questions about what Congress’s role should be in shaping
rural policy.
Both agriculture and manufacturing issues are increasingly seen as elements of
global and regional restructuring, which have significant implications for rural areas,
especially those areas where these production sectors remain dominant. Today,
nearly 90% of total farm household income comes from off-farm sources.1
Manufacturing now accounts for about 25% of rural private sector earnings and about
12% of all rural jobs. The service sector, as with the U.S. domestic economy as a
whole, now dominates the rural labor market, although the rural service sector differs
from the metropolitan service sector in terms of job categories, skills, and wages.
1 This figure reflects the significant proportion of small, “life-style” farms whose owners are
not primarily involved in production agriculture. For those farms where agricultural
production is central to the household’s income, the proportion of off-farm income is less.

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The rural development title of farm bills generally supports (1) the infrastructure
of rural areas, with traditional assistance for housing, electrical generation and
transmission, water and wastewater, and community capacity, (2) agricultural
development, and (3) rural business creation and expansion. More recently,
policymakers have pushed for programs that support innovative and alternative
business development, and innovative mechanisms to finance it. Pressure for such
alternative approaches is expected to continue as policymakers recognize the
changing structure of agriculture and the great diversity among rural communities,
with some rural areas growing and prospering, and others falling further behind as
their primary industries (including agriculture) either decline or adapt to a global
economy. Such adaptation and dislocation over the past decade has often meant
fewer rural employment opportunities and significant population outmigration for
many rural communities.
To emphasize the importance of agricultural production in the local economies
that still characterize many rural areas, legislative support for technologies to help
farmers with planting decisions and local investments in industries that will add
value to their products have become important aspects of rural development policy.
Research is also increasingly focused on improvements in agricultural waste
management and environmental protections. Traditional strategies, notably value-
added agriculture (e.g., regional food processing plants, cooperatives, organic
farming, biofuels) are being promoted by many in the farm sector. While holding
promise for agriculture and surrounding communities, there remain limits on the
extent to which agriculture and other mature industries can become a significant
engine for renewed rural economic prosperity.
While commodity policy dominates much of the debate and most of the funding,
production agriculture remains a comparatively small and shrinking part of the rural
economy, with less than 8% of the rural population employed in agriculture. There
is growing recognition that farmers in many rural areas depend more on a healthy
rural economy than the rural economy is dependent on farmers for its vitality. The
need to strengthen the capacity of rural areas more generally to compete in a global
economy is becoming more widely appreciated as the limitations of commodity
subsidies, peripheral manufacturing, and physical infrastructure as mainstays of rural
development policy become more obvious.
Issues Influencing the Rural Development Title
Emerging policy issues surround the question of whether current farm policies,
which rely heavily on commodity support payments and subsidies to a few
production sectors, help, hinder, or have little impact on the future development of
economically viable rural communities. Rural manufacturing, which tends to be
lower-skilled and lower-waged, is also undergoing restructuring with the loss of
manufacturing to foreign competition. While transformation to a service economy
continues in rural America, service employment in many rural areas tends to be in
lower-wage personal services rather than business and producer services. Continuing
population and economic decline in many farming and rural areas is compelling
policymakers and rural areas to create new sources of competitive advantage,
innovative ways of providing public services to sparse populations, and new ways of
integrating agriculture into changing rural economies.

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More recently, economic development efforts in some areas have targeted
various entrepreneurial strategies and microenterprise development. These
approaches attempt to capitalize on a particular area’s distinctive social, economic,
and environmental assets and advantages to build endogenously on existing local and
regional strengths. Developing a local and regional entrepreneurial culture seems to
be an important approach in these efforts’ successes. Linking public and private
sources to build “business incubators” is a common strategy, as is developing new
commercial ties with area colleges and universities. Communities are also applying
such entrepreneurial energy to making their local governments, schools, and hospitals
more efficient through, for example, telecommunication innovations.
The trends noted above suggest a range of issues that are important in shaping
the provisions of the rural development title of the 2008:
! Conservation and environmental restoration as rural
employment opportunities
! Stemming rural population out-migration

! Vertical integration and coordination of agriculture into
supply networks and their implication for rural areas

! Developing rural entrepreneurial capacity

! Rebuilding an aging rural physical infrastructure

! Public service delivery innovations in
sparsely
populated areas

! Increasing suburbanization and the conflicts between
agriculture and suburban development

! Human capital deficiencies in rural areas

! Regional-based efforts for economic development

! Connecting businesses and rural communities with
broadband telecommunications infrastructure
The rural development title of the 2008 farm bill has taken shape against this
backdrop of shifts in the rural economy, widespread and long-term poverty in some
rural areas, outmigration in other rural areas, dwindling economic opportunity in
rural areas, gaps in critical infrastructure, and a growing appreciation in many
quarters of the limits of existing rural development programs to respond to the great
diversity of rural places and socioeconomic circumstances. Such issues give rise to
several policy relevant questions.
! How effective are current federal programs in improving the
competitive position of rural areas?
! Can broad-based federal rural programs be better targeted to the
critical needs of particular rural areas?
! How might regional funding approaches be better integrated into
federal policy for rural areas?
! How can federal policies better assist entrepreneurial efforts in rural
communities?
! How might the biofuels emphasis in the upcoming farm bill be
connected to rural development programs?

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Federal Rural Development Programs
More than 88 programs administered by 16 different federal agencies target rural
economic development. The Rural Development Policy Act of 1980 (P.L. 96-355),
however, named USDA as the lead federal agency for rural development. USDA
administers most of the existing rural development programs and has the highest
average of program funds going directly to rural counties (approximately 50%).2
Three agencies are responsible for USDA’s rural development mission area: the
Rural Housing Service (RHS), the Rural Business-Cooperative Service (RBS), and
the Rural Utilities Service (RUS). An Office of Community Development provides
community development support through Rural Development’s field offices.
It is important to note that most loan and grant programs administered by USDA
Rural Development are funded through annual (discretionary) appropriations. The
rural development title of omnibus farm bills does not address every program
administered by the three USDA mission agencies. These various programs are
“permanently” authorized, often through amendments to the Consolidated Farm and
Rural Development Act of 1972 (the ConAct, P.L. 87-128) or the Rural
Electrification Act of 1936 and are funded through annual appropriations. The 1996
farm bill (P.L. 104-127) authorized the first provision in the rural development title
funded by mandatory spending, the Fund for Rural America, which expired in 2002.
The 2002 farm bill (P.L. 107-171) authorized six new programs supported through
mandatory spending. Mandatory funding for most of these programs, however, was
largely blocked by appropriators between 2002 and 2007. Several of the programs
were funded instead through discretionary appropriations, although in amounts less
than the original authorization. The 2008 farm bill has provisions supported by
mandatory spending, although in lesser amounts than were proposed in the House
and Senate-passed versions of the farm bill.
Title VI of the Food, Conservation, and Energy Act of 2008
(P.L. 110-246)
New Provisions. Several programs authorized in the 2002 farm bill are
reauthorized in the two bills. The Appendix provides a complete side-by-side
comparison of current law with the provisions in the House and Senate bills and the
enacted bill. Unlike the 2002 farm bill, the rural development provisions of P.L. 110-
246 contain only three programs with mandatory funding: Value-Added Product
Grants ($15 million); the Microenterprise Assistance Program ($15 million); and a
one-time funding of pending water and waste water projects ($120 million). Several
programs that were authorized to receive mandatory funding in the 2002 farm bill
were reauthorized in P.L. 110-246 with discretionary funding (e.g., the Rural
Strategic Investment Program and the Rural Firefighters and Emergency Medical
Personnel Program).
Concerns about how effectively USDA targets its rural development loan and
grant assistance have been a recurring consideration by policymakers and rural
2 More information on individual USDA Rural Development programs can be found in CRS
Report RL31837, An Overview of USDA Rural Development Programs.

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development practitioners. The general concern is that rural development funding
may not be targeted to the neediest rural communities because of the way rural is
defined. Section 6018 directs the Secretary to assess the varying definitions of
“rural” used by USDA and to describe the effects these different definitions have
on USDA Rural Development programs. The provision directs the Secretary to make
recommendations for ways to better target rural development funds. Section 6018
further establishes a new definition of “areas rural in character” that specifies the
characteristics of eligible rural areas lying within a Bureau of the Census-defined
“urban area.” The provision also permits the Under Secretary for Rural Development
discretion in determining whether individual rural areas should fall under the new
definition.
Other new provisions in the rural development title include the following
programs.
! Section 6015 authorizes loans and loan guarantees for locally or
regionally produced agricultural food products — those products
that travel less than 400 miles between production and marketing.
Priority is given to projects benefitting underserved communities,
i.e., those with limited access to affordable, healthy foods and with
high rates of poverty or food insecurity.
! Section 6022 authorizes a Rural Microentrepreneur Assistance
Program. The program will provide financial assistance to
microenterprises (sole proprietorships or businesses with fewer than
10 full-time employees). The program will target economically
disadvantaged microentrepreneurs, i.e., those who could compete in
the private sector but have been impaired because of lack of credit
opportunities and limited equity capital options. Grants will be
provided to microenterprise development organizations to support
the development of entrepreneurial activities in rural areas. These
qualified organizations are required to match at least 15% of the
federal grant. Mandatory funding is authorized at $4 million
annually for FY2009-FY2011, $3 million for FY2012, and
discretionary spending at $40 million annually (FY2009-FY2012).
! Sections 6301-6305 establish the Housing Assistance Council
Authorization Act. This authorizes $10 million annually (FY2009-
FY2011) for the Department of Housing and Urban Development to
provide financial assistance to the Housing Assistance Council
(HAC) to assist community-based housing development
organizations in undertaking community development and
affordable housing projects in rural areas. The HAC is an
independent, nonprofit organization that has supported local
organizations in rural housing development since 1971.
! Section 6028 authorizes a Rural Collaborative Business
Investment Program and provides $135 million in spending. The
provision would create Regional Investment Strategy Grants,
Rural Innovation Grants, and a Rural Endowment Loan

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Program. The provision also directs the Secretary to appoint a
National Rural Investment Board, create a Rural Philanthropic
Institute, and a National Institute on Regional Rural
Competitiveness and Entrepreneurship. The program would
provide rural regions with a financial vehicle to develop and
implement local strategies for innovation.
Other Major Provisions. In addition to these newly authorized programs,
the rural development title also includes other provisions to create or to reauthorize
and/or amend a wide variety of loan and grant programs that provide further
assistance in four key areas: (1) broadband and telecommunications, (2) rural utilities
infrastructure, (3) business and community development, and (4) regional
development.
Broadband and Telecommunications.
! Section 6110 reauthorizes the Access to Broadband
Telecommunications Services in Rural Areas. The program was
originally authorized in the 2002 farm bill (Section 6103) and
funded by mandatory authorization. Its effectiveness, however, was
limited by difficulties in implementation. The provision makes
changes in defining eligible rural communities, makes provisions for
prioritizing loans, and reduces equity requirement on broadband
providers offering service to unserved areas. Appropriations are
authorized at $25 million annually (FY2008-FY2012). The provision
also requires annual reporting on the extent of participation in the
loan and loan guarantee program. The measure further authorizes
the Secretary to designate a National Center for Rural
Telecommunications Assessment and authorizes discretionary
funding for the center at $1 million annually (Section 6111).
! Section 6201 reauthorizes the Distance Learning and
Telemedicine Loan and Grant Program, which provides funding
to educational and medical facilities. The provision will also
emphasize library connectivity as an objective of program funding.
! Section 6112 authorizes a Comprehensive Rural Broadband
Strategy. The provision directs the Secretary of Agriculture to
develop a comprehensive strategy for enhancing broadband service
to rural areas.
Rural Utilities Infrastructure.
! Section 6001 reauthorizes Water, Waste Disposal and Wastewater
Facility Grants through 2012. Discretionary funding is provided
under the utilities account of Rural Community Advancement
Program (RCAP). This is the largest program in the RCAP
portfolio. Section 6011 amends the current interest rate schedule for
water and waste water loans by setting rates to a proportion of a
municipal bond index. .

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! Section 6006 reauthorizes the Rural Water and Wastewater
Circuit Rider Program, which provides technical assistance to
rural water systems. Funding is authorized at $25 million annually
(FY2008-2012).
! Section 6008 reauthorizes the Emergency and Imminent
Community Water Assistance Grant Program, which provides
funding to rural communities facing threats to the provision of
potable water. It is also funded under the utilities account of RCAP.
! Section 6009 reauthorizes Water Systems for Rural and Native
Villages in Alaska. This provision targets funding under the
utilities account of RCAP for Alaskan native communities.
! Section 6008 reauthorizes grants to nonprofit organizations for the
construction and refurbishing of household well water systems.
The program targets well systems for low-income individuals in
rural areas.
! Section 6029 provides $120 million in mandatory funding for
Pending Water and Wastewater Loan and Grant Applications.
This would be a one-time expenditure designed to remove some of
the current backlog of applications.
Business and Community Development.
! Section 6003 reauthorize Rural Business Opportunity Grants,
which are used for economic planning and technical support and
training for rural businesses.
! Section 6007 reauthorize Tribal College and University Essential
Community Facilities through 2012. This program targets funding
under the Community Facilities Program, an RCAP account, to
tribal facilities. Essential facilities include those that support public
safety infrastructure and provide community health care.
! Section 6013 reauthorizes Rural Cooperative Development
Grants. This provision permits multi-year grants (up to three years)
for awards to rural cooperative centers. It provides a 20% set-aside
for rural centers working with socially disadvantaged communities
when the appropriation level exceeds $7.5 million.

! Section 6016 reauthorizes the Appropriate Technology Transfer
for Rural Areas Program (ATTRA). The program supports a
cooperative agreement between the Rural Business-Cooperative
Service and the University of Arkansas to provide information and
technical support for sustainable and organic agricultural production.
authorize $5 million annually.

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! Section 6204 reauthorizes the Rural Firefighters and Emergency
Medical Service Assistance Program. Originally authorized by the
2002 farm bill, the measure provides grants to enable entities to
provide improved emergency medical assistance in rural areas. It
also provides grants to pay the cost of training emergency personnel
to respond to hazardous materials and bioagents in rural areas.
Unlike the 2002 farm bill, which provided mandatory funding, the
provision is authorized for discretionary funding up to $30 million
annually (FY2008-FY2012).
! Section 6202 reauthorizes the Value-Added Agricultural Market
Development Program. This provision targets funding for “mid-
tier value chains” which are local and regional supply networks
linking independent producers with businesses and cooperatives.
It also reserves 10% of the Value-Added Products Grants for
projects benefitting beginning or socially disadvantaged farmers and
ranchers. Mandatory funding is authorized at $15 million to be
available until expended. An additional $40 million annually
(FY2008-FY2012) in discretionary funding is also authorized. The
measure also prioritizes loans that contribute to opportunities for
beginning farmers and ranchers, socially disadvantaged farmers or
ranchers, and small and medium-size family farms.
! Other provisions include $2 million annually (FY2008-FY2012) in
grants to nonprofit organizations for Expansion of Employment
Opportunities for Individuals with Disabilities in Rural Areas
(Section 6023). Section 6027 reauthorizes the Rural Business
Investment Program through 2012. This program was authorized
in the 2002 farm bill and given mandatory spending. The
reauthorization provides a total of $50 million.
Regional Development.
! Section 6025 reauthorizes the Delta Regional Authority, a
federal-state partnership serving a 240-county/parish area in an
eight-state region of the Mississippi delta. Section 6024 authorizes
$3 million annually (FY2008-FY2012) for grants to support health
care services, health education programs, health care job training
programs, and development and expansion of public health-related
facilities in the Delta region.
! Section 6026 reauthorizes the Northern Great Plains Regional
Authority (NGPRA), which covers Iowa, North and South Dakota,
Minnesota, and Nebraska. The provision authorizes the NGPRA to
organize and operate without a federal member if no such individual
is nominated within 180 days of enacting the bill. The provision
also eliminates prioritization of activities to be funded by the
program and the requirement that 75% of the authority’s funding go
to “distressed counties and isolated areas.”

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! Section 6206 directs the Secretary of Agriculture, in coordination
with the Secretary of Transportation, to conduct a Study of Rural
Transportation Issues regarding the movement of agricultural
products, renewable fuels, and economic development in rural
America.
! While not a provision of Title VI, Section 14217 authorizes the
creation of three new regional economic development and
infrastructure commissions: (1) the Northern Border Regional
Commission; (2) the Southeast Crescent Regional Commission;
and (3) the Southwest Border Regional Commission. Funding is
authorized at $30 million annually (FY2008-FY2012) for each
commission.

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Appendix: Side-by-Side Comparison of Rural Development Provisions in the
House- and Senate-Passed Farm Bills with the 2002 and 2008 Farm Bills
SENATE-PASSED SUBSTITUTE
CURRENT LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
NEW LAW (P. L. 110-246)
AMENDMENT (H.R. 2419)
“Farm Security and Rural
“Farm, Nutrition, and Bioenergy Act
“Food and Energy Security Act of
Investment Act of 2002” [7 U.S.C.
of 2007” [Sec. 1]
2007” [Sec. 1]
7901 note]
TITLE VI: RURAL DEVELOPMENT
Defining Rural Eligibility
Sec. 343(a) of the Consolidated
Directs USDA to submit a report to
Creates a standard definition of rural
Adopts the Senate provision but
Farm and Rural Development Act
the Agriculture Committees: (1)
area that excludes (1) cities of
deletes the housing density criterion
(Con Act), as amended, defines rural
assessing the varying definitions of
50,000 or more, (2) any urbanized
from the definition of “rural.”
as any area other than a city or town
rural used by USDA; (2) describing
area contiguous and adjacent to a
Permits USDA to include “areas
with a population greater than
the effect of varying definitions on
city of 50,000 or more, and (3) any
rural in character” if meet certain
50,000 and the urbanized area
USDA’s programs; and (3)
collection of contiguous census
non-urban criteria (excluding
contiguous and adjacent to such a
recommending changes to better
blocks with a specific housing
Honolulu, HI, and San Juan, PR).
city or town. [7 U.S.C. 1991(a)]
target funds through rural
density, or adjacent to a city of
Does not change eligibility for water
development programs. [Sec. 6001]
50,000 or urban area. [Sec. 6020]
and waste water funding. [Sec.
6018]
No comparable provision.
Authorizes USDA to review socio-
No comparable provision.
Deletes the House provision.
economic variables as factors in
awarding rural development loans
and grants, and to issue regulations.
[Sec. 6014]
Rural Infrastructure: Water and Waste Disposal
The 2002 farm bill amended the Con
Reauthorizes through 2012. [Sec.
Reauthorizes through 2012. [Sec.
Reauthorizes through 2012. [Sec.
Act to authorize USDA to make
6002]
6001]
6001]
water and wastewater grants for
development projects for the storage,
treatment, purification, or
distribution of water or the
collection, treatment, or disposal of
waste in rural areas. Authorizes $30
million in annual appropriations for
FY2002-07.[7 U.S.C.

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SENATE-PASSED SUBSTITUTE
CURRENT LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
NEW LAW (P. L. 110-246)
AMENDMENT (H.R. 2419)
1926(a)(2)(B)(vii)]
The Con Act, as amended, sets
No comparable provision
Senate provision establishes interest
Adopts the Senate provision. [Sec.
interest rate levels not to exceed
rates for water and waste water loans
6011]
current market yields for outstanding
based on a market index of loans to
municipal obligations. Low-income
ensure that interest rates for
rural residents receive interest rates
intermediate and poverty rate loans
below this maximum level. [7 U.S.C.
are tied to the current market rate.
1927 (a)(3) (A)]
The poverty rate is set at 60% of the
market rate and the intermediate rate
is set at 80% of the market rate.
[Sec. 12602]
The 2002 farm bill amended the Con
Reauthorizes through 2012,
Reauthorizes through 2012,
Adopts the House provision. [Sec.
Act to authorize appropriations for a
authorizing $25 million for FY2008.
authorizing $20 million for FY2008.
6006]
water/wastewater circuit rider
[Sec. 6004]
[Sec. 6004]
program, providing technical
assistance based on a National Rural
Water Association program. [7
U.S.C. 1926(a)(22)(C)]
Authorizes appropriations of $15
million for FY2003 and each year
thereafter.
The 2002 farm bill amended the Con
Reauthorizes through FY2012.
Reauthorizes through FY2012.
Reauthorizes through FY2012.
Act to authorize USDA to provide
[Sec. 6006]
[Sec. 6011]
[Sec. 6008]
Emergency and Imminent
Community Water Assistance Grants
to rural areas and small communities
comply with the Water Pollution
Control Act or Safe Drinking Water
Act. [7 U.S.C. 1926a(i)(2)]
Authorizes an appropriation of $35
million annually for FY2003-07.
No comparable provision.
No comparable provision.
Provides $135 million in mandatory
Adopts the Senate provision.
spending for pending
Provides $120 million in mandatory
water/wastewater loans, grants and
spending. [Sec.6029]
emergency community assistance
grants, to be available until
expended. [Sec. 6033]

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SENATE-PASSED SUBSTITUTE
CURRENT LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
NEW LAW (P. L. 110-246)
AMENDMENT (H.R. 2419)
The Con Act, as amended, authorizes
Reauthorizes through FY2012.
Reauthorizes through FY2013.
Adopts the House provision with an
USDA to make grants for water
[Sec. 6007]
Amends program to provide grants
amendment to provide $1.5 million
systems for rural and native villages
to the Denali Commission for solid
annually FY2008-2012 to the Denali
in Alaska. Authorizes appropriations
waste management and for rural
Commission for solid waste
of $30 million annually for FY2001-
drinking water sites in Alaska (not
management. [Sec. 6009]
07. [7 U.S.C. 1926d(d)(1)]
more than 5% of total program
funding). [Sec. 6012]
The 2002 farm bill amended the Con
Reauthorizes through FY2012.
Reauthorizes through FY2012.
Adopts the House provision with
Act to authorize USDA to make
Amends program to authorize USDA
[Sec. 6013]
amendment striking consideration of
grants to private nonprofits for loans
to make grants to private non-profits
matching funds and increasing the
to eligible low-income individuals to
for loans to eligible low-income
assistance limit for each well from
construct, refurbish, and service
individuals.
$8,000 to $11,000. [Sec. 6010]
household water well systems in
[Sec. 6008]
rural areas (giving priority to certain
applicants). Authorizes
appropriations of $10 million
annually for FY2003-07. [7 U.S.C.
1926e(d)]
No comparable provision.
No comparable provision
Amends the ConAct to authorize
Deletes Senate provision.
grants to develop wells in isolated
rural areas. Provides $10 million
annually FY2008-2012. [Sec. 6013]
The 2002 farm bill amended the Con
No comparable provision.
Reauthorizes SEARCH grants and
Adopts Senate provision. [Sec. 6002]
Act to establish a SEARCH grant
amends program. Provides up to 4%
program, providing technical
of funds available for water, waste
assistance for water and waste
disposal, and essential community
disposal facilities. [7 U.S.C. 2009ee]
facilities to financially distressed
communities. Directs USDA to
develop a simplified application for
applicants. [Sec. 6010]
Rural Broadband and Telecommunications Development
The 2002 farm bill amended the Con
Reauthorizes grants through
Reauthorizes grants through
Reauthorizes grants through
Act to authorize grants to acquire
FY2012.
FY2012. [Sec. 6026]
FY2012. [Sec. 6021]
radio transmitters to increase rural
[Sec. 6018]
coverage by all-hazards weather
radio broadcasts of the National

---

CRS-13
SENATE-PASSED SUBSTITUTE
CURRENT LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
NEW LAW (P. L. 110-246)
AMENDMENT (H.R. 2419)
Oceanic and Atmospheric
Administration. Authorizes
appropriation of such sums as
needed for FY2002-07. [7 U.S.C.
2008p]
The 2002 farm bill amended the
Reauthorizes through FY2012.
Reauthorizes through FY2012.
Adopts the Senate provision with
Rural Electrification Act (REA) of
Redefines eligibility and prioritizes
Redefines eligibility and prioritizes
modifications. Permits assistance to
1936 [7 U.S.C. 901 et seq.] by
loan applications to areas based on
loan applications. Prohibits loans to
areas with more than 3 providers
authorizing USDA to provide loans
number of service providers.
areas served by 3 or more providers.
under certain conditions. Gives
and loan guarantees for the costs of
Amends definition of rural area.
Authorizes $25 million annually
highest priority to applicants serving
providing broadband service to rural
Limits loan terms to 35 years.
(FY2008-12). Authorizes a National
the most rural residents. Prohibits
areas, as part of the Enhancement of
Extends authority to provide loans to
Center for Rural
eligibility to providers res serving
Access to Broadband Service in
FY2012. Authorizes a National
Telecommunications Assessment
more than 20% of the market.
Rural Areas provisions. [7 U.S.C.
Center for Rural
and authorizes $1 million in
Permits USDA to require cost-share
950bb]
Telecommunications Assessment
appropriations annually. [Sec. 6110]
funding. [Sec. 6110]
and authorizes $1 million in
Establishes which areas are eligible
Adopts House and Senate measure to
appropriations annually. [Sec. 6023]
for REA assistance. [Sec. 6105]
authorizes National Center for Rural
Telecommunications. [Sec. 6111].
Adopts Senate provision defining
REA eligibility. Eligible rural areas
exclude town of 20,000 or more.
[Sec. 6104]
Sec. 601(a) et seq. of the REA, as
Authorizes the Community Connect
Authorizes the Connect the Nation
Does not adopt either provision.
amended, authorizes USDA to
Grant Program to provide broadband
Act and creates a competitive
provide loans and loan guarantees to
service for education, public safety,
matching grant program to
electric utilities to serve customers in
and health care in rural areas.
encourage state initiatives for public-
rural areas. [7 U.S.C. 950bb(b)]
Authorizes appropriations of $25
private partnerships [Sec. 6201] and
million annually (FY2008-12). [Sec.
authorizes grants to encourage state
6024]
initiatives [Sec. 6202] to provide
broad-band service to rural areas.
Authorizes appropriations of $40
million annually (FY2008-12).
Sec. 2333 of the 1990 farm bill
Reauthorizes the grant program to
Reauthorizes appropriations through
Adopts the Senate provision with
(Food, Agriculture, Conservation,
assist rural public television stations
FY2012. Amends provision: (1)
modifications that only libraries are
and Trade Act, P.L. 101-624)
in making the transition from analog
adds library connectivity and public
added as eligible entities. Makes
provides grants to non-commercial
to digital broadcast equipment. [Sec.
television station digital conversion
public television stations eligible for
television that serve rural areas. [7
6028] Reauthorizes Telemedicine
into the notification; (2) species
funding for high-speed
U.S.C. 950aaa-2] Also, Sec. 2335A
and Distance Learning Services in
requirements on how financial
telecommunications for educational

---

CRS-14
SENATE-PASSED SUBSTITUTE
CURRENT LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
NEW LAW (P. L. 110-246)
AMENDMENT (H.R. 2419)
authorizes Telemedicine and
Rural Areas through FY2012. [Sec.
assistance is to be used and criteria
programming in rural areas. [Sec.
Distance Learning Services in Rural
6029]
for prioritizing; (3) requires USDA
6201]
Areas by providing loans/grants to
to notice the amount of financial
schools and medical facilities for
assistance available to applicants,
telecom technologies. [7 U.S.C.
among other provisions. Renames
950aaa5]
program the Telemedicine, Library
Connectivity, Public Television, and
Distance Learning in Rural Areas,
and reauthorizes through FY2012.
[Sec. 6302]
The Con Act, as amended, authorizes
No comparable provision.
Reauthorizes through FY2012. [Sec.
Reauthorizes through FY2012
appropriations for grants for
6016]
[Sec. 6014]
broadcasting systems, funded at $5
million annually (FY2002-07). [7
U.S.C. 1932(f)]
No comparable provision.
Directs USDA to prepare a report
Directs the Federal Communications
Adopts the Senate provision.
that develops a comprehensive
Commission, in coordination with
Requires an update of the report in
national broadband strategy. [Sec.
USDA, to submit a report to
the third year following enactment.
6031]
Congress describing a
[Sec. 6112] Adopts Senate provision
comprehensive rural broadband
striking an obsolete reference to dial-
strategy. [Sec. 6111] Instructs the
up Internet and place the provision in
U.S. Comptroller General of to
a separate section. [Sec. 6005].
conduct a study of the Rural Utilities
Deletes the Senate provision for a
Service administration and of
GAO study.
Federal assistance for broadband
programs, with recommendations.
[Sec. 6113]
The 2002 farm bill amended the
Reauthorizes through FY2012. [Sec.
Reauthorizes through FY2012.
Adopts the Senate provision with
REA to authorize USDA to expand
6022]
Expands eligibility to emergency
modifications to make emergency
911 access and make telephone loans
communication providers.
communication equipment providers
for rural emergency services. [7
Authorizes USDA to use funds made
eligible for loans. [Sec. 6107]
U.S.C. 940e]
available for telephone or broadband
loans; requires USDA promulgate
regulations [Sec. 6107]

---

CRS-15
SENATE-PASSED SUBSTITUTE
CURRENT LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
NEW LAW (P. L. 110-246)
AMENDMENT (H.R. 2419)
Agricultural-Based Rural Economic Development
The 2002 farm bill amended the Con
Establishes new criteria for loans and
Similar to the House bill, but also:
Adopts the Senate provision with
Act to authorize appropriations for
loan guarantees, directing USDA to
defines “under-served community;”
modifications that extend the
direct and guaranteed loans for rural
favor projects that support
establishes priorities for projects that
distance a product can travel and be
business development. [7 U.S.C.
local/regionally produced
support community development and
eligible. Defines “underserved
1926(a)(11)(D)]
agricultural products. [Sec. 6010]
marketing, distributing, storing,
community” and gives priority to
aggregating, or processing a locally-
entities providing products to these
produced product; sets a per-facility
communities.
limit of up to $250,000 in loan/loan
[Sec. 6015]
guarantees to modify/update
facilities; and requires USDA to
submit an annual report to Congress.
[Sec. 6017]
No comparable provision.
Authorizes appropriations for
Similar to the House bill. [Sec. 6018]
Adopts the Senate provision with
Appropriate Technology Transfer for
minor changes to elaborate on the
Rural Areas at $5 million annually
purpose of the program. [Sec. 6016]
(FY2008-12). [Sec. 6011]
No comparable provision.
No comparable provision.
Establishes Artisanal Cheese Centers
Deletes the provision.
to provide educational technical
assistance to eligible cheese
manufacturing and marketing
businesses. [Sec. 6023]
Sec. 231 of the Agricultural Risk
Authorizes $6 million subject to
Expands the definition of value-
Adopts the Senate provision with
Protection Act of 2000 [7 U.S.C.
appropriations annually (FY2008-
added products. Reduces the
modification. Reserves 10% of funds
1621], as amended by the 2002 farm
12). [Sec. 6027]
maximum grant amount to $300,000.
for projects benefitting beginning
bill, authorizes USDA to make
[Sec. 6401]
farmers and ranchers and socially
Value-Added Agricultural Product
disadvantaged farmers and ranchers,
Development Grants to assist
and 10% of funds for projects to
agricultural producers to establish
develop mid-tier value chains.
businesses to produce value-added
Provides $15 million in mandatory
agricultural products, and provide
funding. [Sec. 6202]
for technical assistance and planning.

---

CRS-16
SENATE-PASSED SUBSTITUTE
CURRENT LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
NEW LAW (P. L. 110-246)
AMENDMENT (H.R. 2419)
No comparable provision.
No comparable provision.
Amends the Con Act to provide
Adopts the Senate provision with
reimbursement payments to
technical changes. [Sec. 1621]
“geographically disadvantaged
farmers” (e.g., AK, HI) for costs
associated with transporting or
producing an agricultural
commodity. [Sec. 6021]
The 2002 farm bill amended the Con
Reauthorizes through FY2012 and
Similar to the House bill; also
Adopts the House provision with
Act authorizing a program to restore
gives priority to projects that
establishes a grant may be made for
technical changes. [Sec. 6020]
historic barns. [7 U.S.C. 2008o(c)]
identify, document, and conduct
projects that rehabilitate or repair
research on historic barns and
historic barns; preserve historic
develop and evaluate appropriate
barns; and identify, document,
techniques or best practices for
survey, and conduct research on
protecting historic barns. [Sec. 6017]
historic barns/structures. [Sec. 6025]
The 2002 farm bill authorized an
Reauthorizes the program and
No comparable provision
Adopts the House provision.
Agricultural Innovation Center
provides $6 million annually
[Sec. 6203]
Demonstration program. [7 U.S.C.
(FY2008-12).
1621]
[Sec. 6025]
Regional Economic Development and Planning
The Con Act, as amended, authorizes
Reauthorizes appropriations through
Reauthorizes appropriations through
Adopts the House provision with
a Delta Regional Authority,
FY2012. [Sec. 6019]
FY2012; amends program to allow
modifications. Adds counties to be
providing funds for 240 counties in 8
for grants for health care facility
eligible. [Sec. 6025] Establishes
states in Mississippi Delta. [7 U.S.C.
development. [Sec. 6029]
separate Health Care Services
2009aa-1]
section and defines eligibility to
mean Mississippi River Delta region.
[Sec. 6024]
The 2002 farm bill amended the Con
Amends program to eliminate
Eliminates requirement of a federal
Adopts the Senate provision with
Act authorizing the Northern Great
prioritization of activities to be
member of the commission, unless
modifications. Requires the
Plains Regional Authority to make
funded. Modifies federal share of
appointed. Broadens list of eligible
Commission to coordinate with tribal
grants and loans and implement a
administrative expenses. Eliminates
organizations. Provides assistance to
leaders if no federal co-chair is
regional development plan. [7
Isolated Areas of Distress
states in providing regional plans for
names. Defines organizations that
U.S.C. 2009bb-1]
designation. [Sec. 6020]
renewable energy and transportation.
may serve in the capacity of federal
[Sec. 6030]
co-chair. [Sec. 6026]

---

CRS-17
SENATE-PASSED SUBSTITUTE
CURRENT LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
NEW LAW (P. L. 110-246)
AMENDMENT (H.R. 2419)
No comparable provision.
No comparable provision.
Amends the Con Act to authorize a
Adopts Senate provision. Authorizes
new Northern Border Economic
3 additional regional commissions:
Development Commission (VT, NY,
Northern Border Regional
NH, and ME); authorizes
Commission; Southeast Crescent
appropriations of $40 million
Regional Commission; Southwest
annually (FY2008-12). [Sec. 6034]
Border Regional Commission.
Provides $30 million to each
FY2002-2012. [ Sec. 14217]
The Con Act, as amended, authorizes
No comparable provision.
Reauthorizes through FY2012.
Deletes the Senate provision.
grants to multi-jurisdictional regional
[Sec. 6005]
planning and development
organizations; $30 million annually
through FY2007. [7 U.S.C.
1926(a)(23)]
The Con Act, as amended, authorizes
No comparable provision.
Directs USDA to continue Rural
Adopts the Senate provision.
loans and grants for business and
Economic Area Partnership Zones
[Sec. 6017]
community development. [7 U.S.C.
(NY, ND, and VT) with areas of
1932]
high unemployment/poverty. [Sec.
6019]
No comparable provision.
Directs USDA, in coordination with
No comparable provision.
Adopts the Senate provision.
the Department of Transportation, to
[Sec. 6206]
prepare a report on railroad issues
regarding the movement of
agricultural products, renewable
fuels, and economic development.
[Sec. 6032]
Rural Entrepreneurship and Business Investment Programs
The 2002 farm bill amended the Con
Reauthorizes through FY2012.
Similar to the House bill. [Sec.
Adopts the Senate provision.
Act to authorize USDA to make
[Sec. 6003]
6002]
[Sec. 6003]
Rural Business Opportunity Grants
for business development or labor
training in rural areas. Authorizes
appropriations of $15 million
annually through FY2007.
[7 U.S.C. 1926(a)(11)]

---

CRS-18
SENATE-PASSED SUBSTITUTE
CURRENT LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
NEW LAW (P. L. 110-246)
AMENDMENT (H.R. 2419)
The Con Act, as amended, authorizes
Authorizes USDA to give preference
Similar to House bill. Allows USDA
Adopts the Senate provision with
appropriations for grants to
to grant applications that establish
to award multi-year grants to
minor modifications. [Sec. 6013]
cooperative development centers. [7
centers for rural cooperative
programs as deemed by the
U.S.C. 1932(e)(5)]
development that demonstrate
Secretary; establishes a cooperative
specified requirements. Authorizes
research program; and creates a
$50 million annually (FY2008-12).
reserve for socially disadvantaged
[Sec. 6009]
communities. [Sec. 6015]
No comparable provision.
Authorizes a new Rural Entrepreneur
Authorizes a new Rural
Adopts the House provision with
and Microenterprise Assistance
Microenterprise Assistance Program,
modifications. Provides $15 million
Program. Authorizes $20 million
with mandatory spending of $40
in mandatory funding. [Sec. 6022]
annually (FY2008-12). [Sec. 6013]
million for FY2008, available until
expended. [Sec. 6022]
The 2002 farm bill amended the Con
Limits discretionary funding of not
Authorizes a new Rural
Adopts the Senate provision with
Act, authorizing the Rural Strategic
more than $25 million annually
Collaborative Investment Program,
modifications to include adding rural
Investment Program, providing an
FY2008-2012. Adds planning grant
with mandatory spending of $135
heritage as a goal of the program.
equity generating program for rural
eligibility for “rural heritage sites.”
million for grants and administrative
Authorizes $135 million in
business development modeled on
[Sec. 6021]
activities. [Sec. 6032]
discretionary funds for the period
the Small Business Investment
FY2009-2012.
Companies of the Small Business
[Sec. 6028]
Administration. [7 U.S.C. 2099dd et
seq.]
The 2002 farm bill amended the Con
No comparable provision.
Reauthorizes through FY2012, with
Adopts the Senate provision with
Act, authorizing the Rural Business
modifications: debentures may be
modifications. Removes provision
Investment Program to make
prepaid at any time; distributions
allowing distributions to cover tax
loans/grants through regional
may be made to cover tax liability;
liability. Limits on funding from
investment boards.
USDA fees are limited to an
certain financial institutions is raised
[7 U.S.C. 2009cc-5]
application fee of $500; and USDA
to 25%. [Sec. 6027]
will not be required to operate the
program with other federal agencies.
[Sec. 6031]

---

CRS-19
SENATE-PASSED SUBSTITUTE
CURRENT LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
NEW LAW (P. L. 110-246)
AMENDMENT (H.R. 2419)
Community Development Programs
The 2002 farm bill authorizes grants
Reauthorizes the Rural Firefighters
No comparable provision.
Adopts the House provision with
for units of general local
and Emergency Personnel Grant
minor modifications. [Sec. 6204]
government, Indian tribes, to pay the
Program, appropriations up to $30
cost of training firefighters and
million annually (FY2008-12).
emergency medical personnel. [7
Expands the types of eligible
U.S.C. 1621]
entities. [Sec. 6026]
The 2002 farm bill amended the Con
Reauthorizes through FY2012. [Sec.
Reauthorizes through FY2012. [Sec.
Adopts the provision. [Sec. 6019]
Act to authorize the National Rural
6016]
6024]
Development Partnership, a state-
federal partnership of community
rural development entities. [7 U.S.C.
2008m]
The 2002 farm bill amended the Con
No comparable provision.
Authorizes $40 million in mandatory
Adopts the Senate provision, but
Act to authorize loans and grants for
spending for loans, grants, and loan
specifies that the program not
“essential community facilities”
guarantees to construct child day
receive mandatory funding. [Sec.
(incl. child day care). [7 U.S.C.
care facility grants. [Sec. 6003]
6004]
1926(a)(19)]
The Con Act, as amended, authorizes
No comparable provision
Reserves 0.5% of the funds for
Deletes the Senate provision.
the Community Facility Grants
community facilities to eligible
Program, limited to $10 million per
entities located in freely associated
fiscal year for grants to local
states or outlying areas as defined in
governments, nonprofits, and Indian
the Elementary and Secondary
tribes to provide the federal share of
Education Act of 1965. [Sec. 6008]
the cost of developing specific
essential community facilities
authorizes funds for essential
community facilities. [7 U.S.C.
1926(a) 19]
The Con Act, as amended, authorizes
No comparable provision
Amends to give priority for
Deletes the Senate provision
funds for essential community
community facility projects that are
facilities; the maximum amount of a
carried out with a non-Federal share
community facility grant cannot
of funds that is substantially greater
exceed 75% of the project costs. [7
than the minimum requirement, as
U.S.C. 1926(a) 19B]
determined by USDA regulation.
[Sec. 6009]

---

CRS-20
SENATE-PASSED SUBSTITUTE
CURRENT LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
NEW LAW (P. L. 110-246)
AMENDMENT (H.R. 2419)
The 2002 farm bill amended the Con
Reauthorizes through FY2012.
Reauthorizes through FY2012.
Adopts the House provision.
Act to authorize USDA to provide
Amends program to direct USDA to
Increases the maximum federal grant
[Sec. 6007]
cost-share grants to tribal colleges
establish a maximum percentage of
tribal colleges and universities
and universities for developing
the cost of a facility covered by a
receive for the cost of developing
essential community facilities in
grant. Caps non-federal support to
essential community facilities in
rural areas and universities, as
no more than 5% of the facility’s
rural areas to 95%. [Sec. 6007]
defined in the Higher Education Act
total cost. [Sec. 6005]
of 1965 for developing essential
community facilities in rural areas.
Authorizes $10 million in annual
appropriation for FY2003-07. [7
U.S.C.1926(a)(25)]
No comparable provision.
No comparable provision
Makes technical changes to address
Adopts the Senate provision with
funding for cooperative
technical changes. [Sec. 6012]
organizations by allowing for
business guarantees of loans. [Sec.
6014]
No comparable provision.
No comparable provision.
Provides grants to expand rural
Adopts the Senate provision with
employment opportunities for
minor changes. [Sec. 6023]
individuals with disabilities.
Authorizes $2 million annually
(FY2008-12). [Sec. 6028]
The Con Act authorizes grants to
No comparable provision.
Reauthorizes through FY2012. [Sec.
Deletes the Senate provision.
train farm workers in new
6027]
technologies and in specialized skills
for higher value crops; authorizes
appropriations of $10 million
annually through FY2007 [7 U.S.C.
1981q(c)]
No comparable provision.
Amends the Con Act to authorize
Authorizes loans and loan guarantees
Deletes both House and Senate
grants to improve the technical
to improve the technical
provisions.
infrastructure of rural health care
infrastructure of rural health care
facilities at $30 million annually
facilities. Provides $50 million in
(FY2008-12). Identifies types of
mandatory spending (with at least
eligible rural health facilities. [Sec.
$25 million for hospitals with less
6012]
than 50 acute care beds). [Sec.
6006]

---

CRS-21
SENATE-PASSED SUBSTITUTE
CURRENT LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
NEW LAW (P. L. 110-246)
AMENDMENT (H.R. 2419)
No comparable provision.
No comparable provision.
Authorizes the Secretary of Housing
Adopts the Senate provision with
and Urban Development to provide
modifications to permit GAO to use
financial assistance for
private audits for review of the
community-based housing
Housing Assistance Council. [Secs.
development entities and affordable
6301-6305]
housing projects, and other
requirements. Authorizes
appropriations of $10 million
(FY2008); $15 million annually
(FY2009-10). [Secs. 6501-6505]
Other Rural Development Provisions
The REA, as amended, authorizes
No comparable provision.
Inserts “efficiency and” before
Adopts the Senate provision
USDA to make loans for rural
“conservation;” makes technical
authorizing energy efficiency
electrification and telephone services
changes to loan and grants for
program. [Sec. 6101]. Deletes
and to assist borrower in
electric generation; establishes fees
provision for loans and grants for
implementing improvements to
for baseload generation loan
electric generation. [Sec. 6102].
electrical and telephone service. [7
guarantees; defers loan payments for
Deletes Senate provision on fees for
U.S.C. 901 et seq.]
improved energy efficiency; defines
loan guarantees, but requires a study
“rural” and “farm” for borrowing
of electric generating needs in rural
eligibility; and specifies procedures
areas. [Sec. 6113]. Adopts Senate
for borrowers. [Secs. 6101-6104;
provision to allow energy audits.
6109]
[Sec. 6104]. Makes technical
changes for certain financing.
The REA, as amended, authorizes
Reauthorizes through FY2012. [Sec
Similar to the House bill, but limits
Adopts the Senate provision. [Sec.
USDA to issue bonds for rural
6030]
guarantees to no more than $1 billion
6106]
electrical generation or telephone
and establishes technical provisions
purposes. [7 U.S.C. 940c-1(f)]
for bond guarantees. [Sec. 6106]
The REA, as amended, authorizes
No comparable provision.
Defines “qualified energy source”
Adopts the Senate provision with
USDA to make loans for electrical
and permits loans for electrical
modifications. Defines “renewable
generation in rural areas. [7 U.S.C.
generation from renewable sources
energy source.” [Sec. 6108]
940f]
sold to non-rural residents at sets
loan rates. [Sec. 6108]

---

CRS-22
SENATE-PASSED SUBSTITUTE
CURRENT LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
NEW LAW (P. L. 110-246)
AMENDMENT (H.R. 2419)
The REA, as amended, authorizes
No comparable provision.
Defines “substantially underserved
Adopts the Senate provision with
USDA to make exceptions for
trust areas” and to authorize USDA
modifications. [Sec. 6105]
electrification borrowers to relieve
to make loan rates as low as 2% to
them of regulatory requirements. [7
qualified utilities serving these areas.
U.S.C. 936e]
[Sec. 6112]
Title III of the REA establishes
No comparable provision
Requires the Rural Utility Service
Adopts the Senate provision
agency funding procedures for direct
(RUS) follow new procedures in
regarding bonding requirements and
loans and loan guarantee. [7 U.S.C.
dealing with borrowers. Allows
strikes the other provisions. [Sec.
940-c 1]
USDA to adjust population
6109]
limitations related to digital mobile
wireless service; requires USDA to
review bonding requirements for all
programs administered by RUS. [Sec
6109]
The 1990 farm bill, as amended,
No comparable provision.
Reauthorizes through FY2012.
Deletes the Senate provision.
authorizes a rural electronic
[Sec. 6301]
commerce extension program to
provide assistance to rural
businesses. [7 U.S.C. 59239e]
The Housing Act of 1949, as
No comparable provision.
Amends program to include
Adopts the Senate provision.
amended, authorizes a loan and grant
aquacultural workers. [Sec. 6420]
[Sec. 6205]
program to provide housing
construction and assistance to farm
labor. [42 U.S.C. 1484(f)(3)]

---