(a) ProhibitionAssistance under any rural development program administered by the Secretary or any agency of the Department of Agriculture shall not be conditioned on any requirement that the recipient of the assistance accept or receive electric service from any particular utility, supplier, or cooperative.
(b) Ensuring complianceThe Secretary shall establish, by regulation, adequate safeguards to ensure that assistance under any rural development program is not subject to such a condition. The safeguards shall include periodic certifications and audits, and appropriate measures and sanctions against any person violating, or attempting to violate subsection (a).
(c) “Rural development programs” definedIn this section, the term “rural development program” means the following:(1) Sections 304(b), 306, 306A, 306C, 306D, 310B, and 375 11 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 [7 U.S.C. 2661 et seq.] and section 603(c) [7 U.S.C. 2204a] of the Rural Development Act of 1972.
(6) Sections 905 and 940a 1 of this title and subchapter IV of this chapter.
(d) RegulationsNot later than 60 days after April 4, 1996, the Secretary shall issue final regulations to ensure compliance with subsection (a).
Structure US Code
CHAPTER 31— RURAL ELECTRIFICATION AND TELEPHONE SERVICE
SUBCHAPTER I— RURAL ELECTRIFICATION
§ 902. General authority of Secretary of Agriculture
§ 903. Authorization of appropriations
§ 904. Loans for electrical plants and transmission lines
§ 905. Fees for certain loan guarantees
§ 906. Funding for administrative expenses
§ 906a. Use of funds outside the United States or its territories prohibited
§ 907. Acquisition of property pledged for loans; disposition; sale of pledged property by borrower
§ 908. Limitations on use of assistance
§ 912. Extension of time for repayment of loans
§ 912a. Rescheduling and refinancing of loans
§ 915. Purchase of financial and credit reports
§ 917. Prohibition on restricting water and waste facility services to electric customers
§ 918b. Acquisition of existing systems in rural communities with high energy costs