42 U.S.C. § 17012 — Advanced battery loan guarantee program

(a) Establishment of program. The Secretary^* must establish a program to guarantee loans from private institutions for building facilities in the United States that manufacture advanced vehicle batteries and battery systems developed and produced in the United States. This includes advanced lithium-ion batteries, hybrid electrical system and component manufacturers, and software designers.

(b) Requirements. The Secretary may provide a guarantee under subsection (a) only if:
(1) Without a guarantee, the applicant cannot obtain credit on reasonable terms or conditions sufficient to finance the construction of a facility described in subsection (a).
(2) The applicant’s expected earning power and the character and value of the pledged security reasonably assure repayment of the guaranteed loan under its terms.
(3) The loan’s interest rate is reasonable, considering the current average yield on outstanding United States obligations with remaining maturities comparable to the loan’s maturity.

(c) Criteria. When selecting guarantee recipients from the applicants, the Secretary must give preference to proposals that:
(1) meet all applicable Federal and State^* permitting requirements;
(2) are most likely to succeed; and
(3) are in local markets with the greatest need for the facility.

(d) Maturity. A loan guaranteed under subsection (a) may have a maturity of no more than 20 years.

(e) Terms and conditions. The loan agreement for a guaranteed loan may not be amended or waived in any way without the Secretary’s consent.

(f) Assurance of repayment. The Secretary must require an applicant for a guarantee to provide an assurance of repayment, such as a performance bond, insurance, collateral, or another means acceptable to the Secretary, in an amount at least 20 percent of the loan amount.

(g) Guarantee fee. The recipient of a guarantee must pay the Secretary an amount the Secretary determines is enough to cover the Secretary’s administrative costs related to the guarantee.

(h) Full faith and credit. The full faith and credit of the United States is pledged to pay all guarantees made under this section. A guarantee made by the Secretary is conclusive evidence that the loan is eligible for the guarantee as to principal and interest. The guarantee’s validity cannot be challenged by a holder of the guaranteed loan.

(i) Reports. Until each guaranteed loan under this section has been fully repaid, the Secretary must submit an annual report to Congress on the Secretary’s activities under this section.

(j) Authorization of appropriations. Congress may appropriate whatever amounts are necessary to carry out this section.

(k) Termination of authority. The Secretary’s authority to issue a guarantee under subsection (a) ends on December 19, 2017, which is 10 years after December 19, 2007. This subsection ends that authority to issue guarantees; it does not state that existing guarantees end or that the other provisions of this section end.