Rural Electrification Act

Rural Electrification Act
Other short titles	Rural Electrification and Telephone Service Act of 1936
Long title	An Act to provide for rural electrification, and for other purposes.
Nicknames	Rural Electrification Act of 1936
Enacted by	the 74th United States Congress
Effective	May 20, 1936
Citations
Public law	Pub. L. 74–605
Statutes at Large	49 Stat. 1363
Codification
Titles amended	7 U.S.C.: Agriculture
U.S.C. sections created	7 U.S.C. ch. 31 § 901 et seq.
Legislative history
	Introduced in the Senate as S. 3483 by George W. Norris (I–NE) on February 17, 1936; Committee consideration by Senate Agriculture and Forestry, House Interstate and Foreign Commerce; Passed the Senate on March 5, 1936 (Passed); Passed the House on April 9, 1936 (Passed); Reported by the joint conference committee on April 13, 1936; agreed to by the House on May 14, 1936 (Agreed) and by the Senate on May 15, 1936 (Agreed); Signed into law by President Franklin D. Roosevelt on May 20, 1936;

The Rural Electrification Act of 1936 (REA), enacted on May 20, 1936, provided federal loans for the installation of electrical distribution systems to serve isolated rural areas of the United States.

The funding was channeled through cooperative electric power companies, hundreds of which still exist today.^[1] These member-owned cooperatives purchased power on a wholesale basis and distributed it using their own network of transmission and distribution lines. The Rural Electrification Act was one of many New Deal proposals by President Franklin D. Roosevelt to remedy high unemployment during the Great Depression.

History

On May 11, 1935, President Roosevelt issued Executive Order 7037, which created the Rural Electrification Administration.^[2]^[3] In 1936, the Congress endorsed Roosevelt's action by passing the Rural Electrification Act. At the time the Rural Electrification Act was passed, electricity was commonplace in cities but largely unavailable in farms, ranches, and other rural places. Representative John E. Rankin^[4] and Senator George William Norris^[5] were supporters of the Rural Electrification Act, which was signed into law by Roosevelt on May 20, 1936.

Speaker of the House Sam Rayburn was a major proponent of the REA, which he helped pass in 1936 as Chairman of the House Interstate and Foreign Commerce Committee. Rayburn stated in 1959 that ninety percent of farm homes in the U.S. were electrified, compared to three percent in the early 1930s.^[6]

Technical issues

In the 1930s, the provision of power to remote areas was not thought to be economically feasible.^[7] A 2300-volt distribution system was then used in cities. This relatively low voltage could be carried only about 4 miles (6.4 km) before the voltage drop became unacceptable. REA cooperatives used a 6900-volt distribution network (soon changed to the present-day 12,470/7200V 4-wire Y system), which could support much longer runs (up to about 40 mi (64 km)). Despite requiring more expensive transformers at each home, the overall system cost was manageable.^[8]

Wiring homes and farms

REA crews traveled through the American countryside, bringing teams of electricians along with them. The electricians added wiring to houses and barns to utilize the newly available power provided by the line crews. A standard REA installation in a house (post-World War II) consisted of:

A 60-amp, 230-volt fuse panel, with:

A 60-amp range circuit
A 20-amp kitchen circuit
Two or three 15-amp lighting circuits

A ceiling-mounted light fixture was installed in each room, usually controlled by a single switch mounted near a door. At most, one outlet was installed per room, since plug-connected appliances were expensive and uncommon. Wiring was performed using type NM (nonmetallic sheathed cable), insulated with asbestos-reinforced rubber covered with jute and tar.

Many of these original installations still exist today, though most have been augmented to support a greater number and variety of appliances.

Later amendments

Some amendments to the Rural Electrification Act include:

1944: loan terms increased to 35 years; the act is made permanent^[9]
1949: extended the act to allow loans to telephone companies wishing to extend their connections to unconnected rural areas^[10]
1993: provisions to restructure the direct loan programs for rural electricity, telephone cooperatives, and energy conservation market^[11]
December 8, 1993: North American Free Trade Agreement Implementation Act—The "Buy American" provision to now include Mexico and Canada.
2008: provisions for access to rural broadband telecommunications network and rural internet
2014: pilot program for rural gigabit broadband network

Date of enactment	Public law number	U.S. statute citation	U.S. legislative bill	U.S. Presidential administration
September 21, 1944	P.L. 78-425	58 Stat. 734	H.R. 4278	Franklin D. Roosevelt
October 28, 1949	P.L. 81-423	63 Stat. 948	H.R. 2960	Harry S. Truman
June 15, 1955	P.L. 84–70	69 Stat. 131	S. 153	Dwight D. Eisenhower
October 23, 1962	P.L. 87-862	76 Stat. 1140	H.R. 10708	John F. Kennedy
May 7, 1971	P.L. 92–12	85 Stat. 29	S. 70	Richard M. Nixon
June 30, 1972	P.L. 92-324	86 Stat. 390	H.R. 14423	Richard M. Nixon
May 11, 1973	P.L. 93–32	87 Stat. 65	S. 394	Richard M. Nixon
November 4, 1975	P.L. 94–124	89 Stat. 677	H.R. 4799	Gerald R. Ford
October 20, 1976	P.L. 94-570	90 Stat. 2701	H.R. 12207	Gerald R. Ford
May 25, 1984	P.L. 98-300	98 Stat. 215	H.R. 2211	Ronald W. Reagan
October 21, 1992	P.L. 102–428	106 Stat. 2183	H.R. 5237	George H.W. Bush
November 1, 1993	P.L. 103–129	107 Stat. 1356	H.R. 3123	William J. Clinton
December 17, 1993	P.L. 103–201	107 Stat. 2342	H.R. 3514	William J. Clinton
June 18, 2008	P.L. 110–246	122 Stat. 1651	H.R. 6124	George W. Bush
February 7, 2014	P.L. 113–79	128 Stat. 649	H.R. 2642	Barack H. Obama II

References

^ Sablik, Tim (First Quarter 2020). "Electrifying Rural America". Econ Focus. Federal Reserve Bank of Richmond.
^ "Rural Electrification Act". Ohio History Central. Archived from the original on December 27, 2023.
^ Peters, Gerhard; Woolley, John T. "Franklin D. Roosevelt: 'Executive Order 7037 Establishing the Rural Electrification Administration.,' May 11, 1935". The American Presidency Project. University of California, Santa Barbara. Retrieved July 3, 2016.
^ Zwiers, Maarten (July 11, 2017). "John Elliott Rankin". Mississippi Encyclopedia. Center for Study of Southern Culture. Retrieved November 9, 2021.
^ "Rural Electrification Act (1936)". Living New Deal. University of California, Berkeley. Retrieved November 9, 2021.
^ Anderson, Paul E. "Sam Rayburn and Rural Electrification". East Texas History. Retrieved August 16, 2024.
^ McBride, Brandon (May 20, 2016). "Celebrating the 80th Anniversary of the Rural Electrification Administration". USDA. Retrieved November 9, 2021.
^ "The Rural Electrification Act". Harrison Rural Electrification Association, Inc. Retrieved November 9, 2021.
^ Peters, Gerhard; Woolley, John T. "Franklin D. Roosevelt: "Statement on Signing a Rural Electrification Bill.," September 22, 1944". The American Presidency Project. University of California, Santa Barbara. Retrieved July 3, 2016.
^ Peters, Gerhard; Woolley, John T. "Harry S. Truman: 'Statement by the President Upon Signing Bill Providing for Improved Rural Telephone Facilities.,' October 28, 1949". The American Presidency Project. University of California, Santa Barbara. Retrieved July 3, 2016.
^ Peters, Gerhard; Woolley, John T. "William J. Clinton: 'Statement on Signing the Rural Electrification Loan Restructuring Act of 1993,' November 1, 1993". The American Presidency Project. University of California, Santa Barbara. Retrieved July 4, 2016.

External links

[1] Sablik, Tim (First Quarter 2020). "Electrifying Rural America". Econ Focus. Federal Reserve Bank of Richmond.

[2] "Rural Electrification Act". Ohio History Central. Archived from the original on December 27, 2023.

[3] Peters, Gerhard; Woolley, John T. "Franklin D. Roosevelt: 'Executive Order 7037 Establishing the Rural Electrification Administration.,' May 11, 1935". The American Presidency Project. University of California, Santa Barbara. Retrieved July 3, 2016.

[4] Zwiers, Maarten (July 11, 2017). "John Elliott Rankin". Mississippi Encyclopedia. Center for Study of Southern Culture. Retrieved November 9, 2021.

[5] "Rural Electrification Act (1936)". Living New Deal. University of California, Berkeley. Retrieved November 9, 2021.

[6] Anderson, Paul E. "Sam Rayburn and Rural Electrification". East Texas History. Retrieved August 16, 2024.

[7] McBride, Brandon (May 20, 2016). "Celebrating the 80th Anniversary of the Rural Electrification Administration". USDA. Retrieved November 9, 2021.

[8] "The Rural Electrification Act". Harrison Rural Electrification Association, Inc. Retrieved November 9, 2021.

[9] Peters, Gerhard; Woolley, John T. "Franklin D. Roosevelt: "Statement on Signing a Rural Electrification Bill.," September 22, 1944". The American Presidency Project. University of California, Santa Barbara. Retrieved July 3, 2016.

[10] Peters, Gerhard; Woolley, John T. "Harry S. Truman: 'Statement by the President Upon Signing Bill Providing for Improved Rural Telephone Facilities.,' October 28, 1949". The American Presidency Project. University of California, Santa Barbara. Retrieved July 3, 2016.

[11] Peters, Gerhard; Woolley, John T. "William J. Clinton: 'Statement on Signing the Rural Electrification Loan Restructuring Act of 1993,' November 1, 1993". The American Presidency Project. University of California, Santa Barbara. Retrieved July 4, 2016.

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Causes and legacy	Great Depression New Deal Coalition Brain Trust Criticism
New Deal	Emergency Banking Act Economy Act Agricultural Adjustment Act Civilian Conservation Corps (CCC) Civil Works Administration Communications Act Executive Order 6102 Homeowners Refinancing Act Farm Credit Administration Federal Deposit Insurance Corporation (FDIC) Federal Emergency Relief Administration Frazier–Lemke Farm Bankruptcy Act Glass–Steagall Act National Industrial Recovery Act National Housing Act National Recovery Administration National Youth Administration Public Works Administration (PWA) Public Works of Art Project Reciprocal Tariff Act Railroad Retirement Act Securities Act Tennessee Valley Authority (TVA)
Second New Deal	Works Progress Administration (WPA) Federal Project Number One Federal Energy Regulatory Commission Farm Security Administration Judicial Procedures Reform Act National Bituminous Coal Conservation Act National Labor Relations Board (Act) Rural Electrification Act Rural Electrification Administration Social Security United States Housing Authority Fair Labor Standards Act
Individuals	Franklin D. Roosevelt Eleanor Roosevelt Harry Hopkins Harold L. Ickes Henry Morgenthau Jr. Frances Perkins Robert F. Wagner
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