II 

113TH CONGRESS 

2D SESSION S. 2058 

To establish a loan guarantee program for natural gas distribution grids 

to be installed in areas with extremely high energy costs. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 27, 2014 

Mr. BEGICH introduced the following bill; which was read twice and referred 

to the Committee on Agriculture, Nutrition, and Forestry 

A BILL 

To establish a loan guarantee program for natural gas distribution grids to be installed in areas with extremely 

high energy costs. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Fuel Grid Distribution 

5 Loan Pilot Program Act’’. 

6 SEC. 2. FUEL DISTRIBUTION UTILITY PILOT LOAN PRO7 GRAM. 

8 (a) AUTHORIZATION OF PILOT LOAN PROGRAM.— 

9 Section 232(c) of the Department of Agriculture Reorga10 nization Act of 1994 (7 U.S.C. 6942(c)) is amended— 


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1 (1) in paragraph (1)(B), by striking ‘‘; and’’ 

2 and inserting a period; and 

3 (2) by adding at the end the following: 

4 ‘‘(3) The biofuels and natural gas distribution 

5 utility pilot loan program authorized by section 2 of 

6 the Fuel Grid Distribution Loan Pilot Program 

7 Act.’’. 

8 (b) ESTABLISHMENT OF PILOT LOAN PROGRAM.— 

9 (1) DEFINITION OF LOCAL GOVERNMENT.—In 

10 this subsection, the term ‘‘local government’’ 

11 means— 

12 (A) a county, municipality, city, town, 

13 township, local public authority, school district, 

14 special district, intrastate district, council of 

15 governments (regardless of whether the council 

16 of governments is incorporated as a nonprofit 

17 corporation under State law), regional or inter18 state government entity, or agency or instru19 mentality of a local government; 

20 (B) an Indian tribe or authorized tribal or21 ganization or, in Alaska, a Native village or 

22 Alaska Regional Native Corporation; and 

23 (C) a rural community, unincorporated 

24 town or village, or other public entity. 


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1 (2) ESTABLISHMENT.—The Administrator of 

2 the Rural Utilities Service shall establish a biofuels 

3 and natural gas distribution utility pilot loan pro4 gram to add cooperatives and municipally or pri5 vately owned biofuels or natural gas distribution 

6 utilities to the list of utilities eligible to receive loans 

7 from the Rural Utilities Service. 

8 (3) ELIGIBILITY.—In making loans authorized 

9 under paragraph (1), the Administrator of the Rural 

10 Utilities Service shall grant loans only to utilities 

11 serving an area under the jurisdiction of a local gov12 ernment that has— 

13 (A) a population of not more than 50,000 

14 people; and 

15 (B) energy prices higher than 200 percent 

16 of the national average for energy prices, as de17 termined by the Administrator of the Energy 

18 Information Administration using the most re19 cent data available. 

20 (4) FUNDING.—The Administrator of the Rural 

21 Utilities Service shall carry out the loan pilot pro22 gram using existing funds of the Rural Utilities 

23 Service. 


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1 (5) DURATION.—The loan pilot program shall 

2 be authorized for a period of 5 years, beginning on 

3 the date of enactment of this Act. 

4 (6) REPORT.—At the conclusion of the loan 

5 pilot program, the Administrator of the Rural Utili6 ties Service shall complete a report examining— 

7 (A) the economic benefits of providing low 

8 cost loans; and 

9 (B) any upward price pressure on biofuels 

10 or natural gas prices in the United States re11 sulting from the loan pilot program. 

Æ 


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