42 U.S.C. § 18715 — Transmission facility financing
submitted 4 years ago by Pub. L. 117-169 to r/title-42-THE-PUBLIC-HEALTH-AND-WELFARE · 293 words · no verdicts yet
This section gives the Department of Energy $2 billion for loans to build major transmission facilities. Loans can cover up to 80% of project costs, with terms up to 30 years. Interest rates track comparable U.S. Treasury yields.
(a) Appropriation. Congress appropriates the Secretary* $2,000,000,000 for fiscal year 2022, usable through September 30, 2030, to carry out this section. The Secretary cannot sign a loan agreement under this section that could result in payments after September 30, 2031.
(b) Use of funds. The Secretary must use this money to pay the costs of direct loans to non-federal borrowers, subject to the same limits that apply to loan guarantees under a separate law (section 50141(d)), and on terms the Secretary sets, for building or modifying electric transmission facilities the Secretary has designated as necessary in the national interest.
(c) Loans. A direct loan under this section: (1) cannot have a term longer than the shorter of (A) 90% of the facility's projected useful life in years, or (B) 30 years; (2) cannot cover more than 80% of the project's costs; and (3) must, when first issued, not be subordinate to other financing.
(d) Interest rates. The Secretary sets the loan's interest rate considering market yields on comparable U.S. Treasury obligations as of the loan date.
(e) Definition of direct loan. "Direct loan" has the meaning given in a separate law (section 661a of title 2); this section does not redefine it.
In addition to amounts otherwise available, there is appropriated to the Secretary* for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,000,000,000, to remain available through September 30, 2030, to carry out this section: Provided, That the Secretary shall not enter into any loan agreement pursuant to this section that could result in disbursements after September 30, 2031.
The Secretary shall use the amounts made available by subsection (a) to carry out a program to pay the costs of direct loans to non-Federal borrowers, subject to the limitations that apply to loan guarantees under section 50141(d) and under such terms and conditions as the Secretary determines to be appropriate, for the construction or modification of electric transmission facilities designated by the Secretary to be necessary in the national interest under section 824p(a) of title 16.
A direct loan provided under this section—
shall have a term that does not exceed the lesser of—
90 percent of the projected useful life, in years, of the eligible transmission facility; and
30 years;
shall not exceed 80 percent of the project* costs; and
shall, on first issuance, be subject to the condition that the direct loan is not subordinate to other financing.
A direct loan provided under this section shall bear interest at a rate determined by the Secretary, taking into consideration market yields on outstanding marketable obligations of the United States of comparable maturities as of the date on which the direct loan is made.
In this section, the term “direct loan” has the meaning given the term in section 661a of title 2.
Source credit: (Pub. L. 117–169, title V, § 50151, Aug. 16, 2022, 136 Stat. 2046.)
- 2022Enacted · Pub. L. 117-169 · 136 Stat. 2046
A history note hasn’t been published yet. The record shows enactment by Pub. L. 117-169 on 2022-08-16.
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