II 

109TH CONGRESS 

1ST SESSION S. 887 

To amend the Energy Policy Act of 1992 to direct the Secretary of Energy 

to carry out activities that promote the adoption of technologies that 

reduce greenhouse gas intensity and to provide credit-based financial 

assistance and investment protection for projects that employ advanced 

climate technologies or systems, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 21, 2005 

Mr. HAGEL (for himself, Ms. LANDRIEU, Mr. ALEXANDER, Mr. PRYOR, Mr. 

CRAIG, Mrs. DOLE, and Ms. MURKOWSKI) introduced the following bill; 

which was read twice and referred to the Committee on Energy and Natural Resources 

A BILL 

To amend the Energy Policy Act of 1992 to direct the 

Secretary of Energy to carry out activities that promote 

the adoption of technologies that reduce greenhouse gas 

intensity and to provide credit-based financial assistance 

and investment protection for projects that employ advanced climate technologies or systems, and for other 

purposes. 

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

2 This Act may be cited as the ‘‘Climate Change Tech3 nology Deployment and Infrastructure Credit Act of 

4 2005’’. 

5 SEC. 2. GREENHOUSE GAS INTENSITY REDUCING TECH6 NOLOGY STRATEGIES. 

7 Title XVI of the Energy Policy Act of 1992 (42 

8 U.S.C. 13381 et seq.) is amended by adding at the end 

9 the following: 

10 ‘‘SEC. 1610. GREENHOUSE GAS INTENSITY REDUCING 

11 STRATEGIES. 

12 ‘‘(a) DEFINITIONS.—In this section: 

13 ‘‘(1) CARBON SEQUESTRATION.—The term ‘car14 bon sequestration’ means the capture of carbon diox15 ide through terrestrial, geological, biological, or 

16 other means, which prevents the release of carbon 

17 dioxide into the atmosphere. 

18 ‘‘(2) COMMITTEE.—The term ‘Committee’ 

19 means the Interagency Coordinating Committee on 

20 Climate Change Technology established under sub21 section (c)(1). 

22 ‘‘(3) GREENHOUSE GAS.—The term ‘greenhouse 

23 gas’ means— 

24 ‘‘(A) carbon dioxide; 

25 ‘‘(B) methane; 

26 ‘‘(C) nitrous oxide; 
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1 ‘‘(D) hydrofluorocarbons; 

2 ‘‘(E) perfluorocarbons; 

3 ‘‘(F) sulfur hexafluoride; and 

4 ‘‘(G) any other gas that the Director of the 

5 Office of Science and Technology Policy, in con6 sultation with the National Academy of 

7 Sciences, defines as a greenhouse gas for pur8 poses of this section, based on credible scientific 

9 research. 

10 ‘‘(4) GREENHOUSE GAS INTENSITY.—The term 

11 ‘greenhouse gas intensity’ means the ratio of green12 house gas emissions to economic output. 

13 ‘‘(5) NATIONAL LABORATORY.—The term ‘Na14 tional Laboratory’ means a laboratory owned by the 

15 Department of Energy, including the following: 

16 ‘‘(A) Argonne National Laboratory. 

17 ‘‘(B) Idaho National Laboratory. 

18 ‘‘(C) Brookhaven National Laboratory. 

19 ‘‘(D) Oak Ridge National Laboratory. 

20 ‘‘(E) Los Alamos National Laboratory. 

21 ‘‘(F) Sandia National Laboratory. 

22 ‘‘(G) Lawrence Livermore National Lab23 oratory. 

24 ‘‘(H) National Energy Technology Labora25 tory. 
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1 ‘‘(I) National Renewable Energy Labora2 tory. 

3 ‘‘(J) Pacific Northwest National Labora4 tory. 

5 ‘‘(6) WORKING GROUP.—The term ‘Working 

6 Group’ means the Climate Change Technology 

7 Working Group established under subsection (g)(1). 

8 ‘‘(b) OFFICE OF SCIENCE AND TECHNOLOGY POLICY

9 STRATEGY.— 

10 ‘‘(1) IN GENERAL.—Based on the recommenda11 tions of the report submitted under subsection 

12 (f)(2), the Director of the Office of Science and 

13 Technology Policy shall develop a national strategy 

14 to promote greenhouse gas intensity reducing tech15 nologies and practices developed through research 

16 and development programs conducted by National 

17 Laboratories, other Federal research facilities, uni18 versities, and the private sector. 

19 ‘‘(2) REPORT.—The Director of the Office of 

20 Science and Technology Policy shall annually submit 

21 to the President and make available to the public a 

22 report on the activities carried out in furtherance of 

23 the strategy developed under paragraph (1). 

24 ‘‘(c) INTERAGENCY COORDINATING COMMITTEE ON

25 CLIMATE CHANGE TECHNOLOGY.— 
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1 ‘‘(1) IN GENERAL.—Not later than 180 days 

2 after the date of enactment of this section, the Sec3 retary shall establish an Interagency Coordinating 

4 Committee on Climate Change Technology to coordi5 nate Federal climate change activities and programs 

6 carried out in furtherance of the strategy developed 

7 under subsection (b)(1). 

8 ‘‘(2) MEMBERSHIP.—The Committee shall be 

9 composed of at least 6 members, including— 

10 ‘‘(A) the Secretary; 

11 ‘‘(B) the Secretary of Commerce; 

12 ‘‘(C) the Chairman of the Council on Envi13 ronmental Quality; 

14 ‘‘(D) the Secretary of Agriculture; 

15 ‘‘(E) the Administrator of the Environ16 mental Protection Agency; and 

17 ‘‘(F) the Secretary of Transportation. 

18 ‘‘(3) STAFF.—The Secretary shall provide such 

19 personnel as are necessary to enable the Committee 

20 to perform the duties of the Committee. 

21 ‘‘(d) CLIMATE CHANGE SCIENCE PROGRAM AND CLI22 MATE CHANGE TECHNOLOGY PROGRAM.— 

23 ‘‘(1) CLIMATE CHANGE SCIENCE PROGRAM.— 

24 Not later than 180 days after the date on which the 

25 first report is submitted under subsection (b)(2), the 
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1 Secretary of Commerce, in cooperation with the 

2 Committee, shall establish within the Department of 

3 Commerce the Climate Change Science Program to 

4 assist the Committee in the interagency coordination 

5 of climate change science research and related activi6 ties, including— 

7 ‘‘(A) the assessments of the state of knowl8 edge on climate change; and 

9 ‘‘(B) carrying out supporting studies, plan10 ning, and analyses of the science of climate 

11 change. 

12 ‘‘(2) CLIMATE CHANGE TECHNOLOGY PRO13 GRAM.—Not later than 180 days after the date on 

14 which the first report is submitted under subsection 

15 (b)(2), the Secretary, in cooperation with the Com16 mittee, shall establish within the Department of En17 ergy, the Climate Change Technology Program to 

18 assist the Committee in the interagency coordination 

19 of climate change technology research, development, 

20 demonstration, and deployment to reduce greenhouse 

21 gas intensity. 

22 ‘‘(e) TECHNOLOGY INVENTORY.— 

23 ‘‘(1) IN GENERAL.—The Secretary shall con24 duct an inventory and evaluation of greenhouse gas 

25 intensity reducing technologies that have been devel-
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1 oped, or are under development, by the National 

2 Laboratories to determine which technologies are 

3 suitable for commercialization and deployment. 

4 ‘‘(2) REPORT.—Not later than 180 days after 

5 the completion of the inventory under paragraph (1), 

6 the Secretary shall submit to the Secretary of Com7 merce and Congress a report that includes the re8 sults of the completed inventory and any rec9 ommendations of the Secretary. 

10 ‘‘(3) USE.—The Secretary, in consultation with 

11 the Secretary of Commerce, shall use the results of 

12 the inventory as guidance in the commercialization 

13 of greenhouse gas intensity reducing technologies. 

14 ‘‘(f) GREENHOUSE GAS INTENSITY REDUCING TECH15 NOLOGY STUDY.— 

16 ‘‘(1) STUDY.—As soon as practicable after the 

17 date of enactment of this section, the Committee 

18 shall conduct and submit to the Secretary a study 

19 on— 

20 ‘‘(A) the commercialization and diffusion 

21 of new and existing technologies to reduce 

22 greenhouse gas intensity; and 

23 ‘‘(B) ways to increase the development and 

24 deployment of cost-effective technologies and 

25 practices. 
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1 ‘‘(2) REPORT.—Not later than 180 days after 

2 the completion of the study under paragraph (1), the 

3 Secretary shall submit to Congress and the Director 

4 of the Office of Science and Technology Policy a re5 port that describes— 

6 ‘‘(A) the results of the study; and 

7 ‘‘(B) any recommendations of the Com8 mittee to— 

9 ‘‘(i) increase commercialization of the 

10 technologies and practices described in 

11 paragraph (1); and 

12 ‘‘(ii) promote the long-term commer13 cialization and deployment of those tech14 nologies and practices. 

15 ‘‘(g) CLIMATE CHANGE TECHNOLOGY WORKING

16 GROUP.— 

17 ‘‘(1) IN GENERAL.—The Secretary, in consulta18 tion with the Committee, shall establish a Climate 

19 Change Technology Working Group to identify stat20 utory, regulatory, and economic barriers to the com21 mercialization of greenhouse gas intensity reducing 

22 technologies and practices. 

23 ‘‘(2) COMPOSITION.—The Working Group shall 

24 be composed of the following members, to be ap-
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1 pointed by the Secretary, in consultation with the 

2 Committee: 

3 ‘‘(A) 1 representative from each National 

4 Laboratory. 

5 ‘‘(B) 3 members shall be representatives of 

6 energy-producing trade organizations. 

7 ‘‘(C) 3 members shall represent energy-in8 tensive trade organizations. 

9 ‘‘(D) 3 members shall represent groups 

10 that represent end-use energy and other con11 sumers. 

12 ‘‘(E) 3 members shall be employees of the 

13 Federal Government who are experts in energy 

14 technology, intellectual property, tax, and regu15 lation. 

16 ‘‘(F) 3 members shall be representatives of 

17 universities with expertise in energy technology 

18 development that are recommended by the Na19 tional Academy of Engineering. 

20 ‘‘(3) REPORT.—Not later than 1 year after the 

21 date of enactment of this section and annually there22 after, the Working Group shall submit to the Com23 mittee a report that describes— 

24 ‘‘(A) the findings of the Working Group; 

25 and 
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1 ‘‘(B) any recommendations of the Working 

2 Group for the removal of barriers to commer3 cialization and increasing the use of greenhouse 

4 gas intensity reducing technologies. 

5 ‘‘(4) COMPENSATION OF MEMBERS.— 

6 ‘‘(A) NON-FEDERAL EMPLOYEES.—A 

7 member of the Working Group who is not an 

8 officer or employee of the Federal Government 

9 shall be compensated at a rate equal to the 

10 daily equivalent of the annual rate of basic pay 

11 prescribed for level IV of the Executive Sched12 ule under section 5315 of title 5, United States 

13 Code, for each day (including travel time) dur14 ing which the member is engaged in the per15 formance of the duties of the Working Group. 

16 ‘‘(B) FEDERAL EMPLOYEES.—A member 

17 of the Working Group who is an officer or em18 ployee of the Federal Government shall serve 

19 without compensation in addition to the com20 pensation received for the services of the mem21 ber as an officer or employee of the Federal 

22 Government. 

23 ‘‘(C) TRAVEL EXPENSES.—A member of 

24 the Working Group shall be allowed travel ex25 penses, including per diem in lieu of subsist-
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1 ence, at rates authorized for an employee of an 

2 agency under subchapter I of chapter 57 of title 

3 5, United States Code, while away from the 

4 home or regular place of business of the mem5 ber in the performance of the duties of the 

6 Commission. 

7 ‘‘(h) GREENHOUSE GAS INTENSITY REDUCING

8 TECHNOLOGY DEPLOYMENT.— 

9 ‘‘(1) IN GENERAL.—Based on the strategy de10 veloped under subsection (b)(1), the technology in11 ventory conducted under subsection (e)(1), and the 

12 greenhouse gas intensity reducing technology study 

13 report submitted under subsection (e)(2), the Com14 mittee shall develop a program for implementation 

15 by the Climate Credit Board established under sec16 tion 1611(b)(2)(A) that would provide for the re17 moval of domestic barriers to the deployment of 

18 greenhouse gas intensity reducing technologies. 

19 ‘‘(2) REQUIREMENTS.—In developing the pro20 gram under paragraph (1), the Committee shall con21 sider in the aggregate— 

22 ‘‘(A) the cost-effectiveness of the tech23 nology; 

24 ‘‘(B) fiscal and regulatory barriers; 

25 ‘‘(C) statutory barriers; and 
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1 ‘‘(D) intellectual property issues. 

2 ‘‘(3) REPORT.—Not later than 1 year after the 

3 date of enactment of this section, the Committee 

4 shall submit to the President and Congress a report 

5 that— 

6 ‘‘(A) identifies the barriers to, and the 

7 commercial risks associated with, the deploy8 ment of greenhouse gas intensity reducing tech9 nologies; 

10 ‘‘(B) includes a plan for carrying out eligi11 ble projects with Federal financial assistance 

12 under section 1611; and 

13 ‘‘(C) describes the program developed 

14 under paragraph (1). 

15 ‘‘(i) PROCEDURES FOR CALCULATING, MONITORING, 

16 AND ANALYZING GREENHOUSE GAS INTENSITY.— 

17 ‘‘(1) IN GENERAL.—Using the guidelines issued 

18 under section 1605(b), the Committee, in collabora19 tion with the Administrator of the Energy Informa20 tion Administration and the National Institute of 

21 Standards and Technology, shall develop and pro22 pose standards and best practices for calculating, 

23 monitoring, and analyzing greenhouse gas intensity. 
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1 ‘‘(2) CONTENT.—The standards and best prac2 tices shall address measurement of greenhouse gas 

3 intensity by industry sector. 

4 ‘‘(3) PUBLICATION.—To provide the public with 

5 an opportunity to comment on the standards and 

6 best practices proposed under paragraph (1), the 

7 standards and best practices shall be published in 

8 the Federal Register. 

9 ‘‘(4) APPLICABLE LAW.—To ensure that high 

10 quality information is produced, the standards and 

11 best practices developed under paragraph (1) shall 

12 conform to the guidelines established under section 

13 515 of the Treasury and General Government Ap14 propriations Act, 2001 (commonly known as the 

15 ‘Data Quality Act’) (44 U.S.C. 3516 note; 114 Stat. 

16 2763A–1543), as enacted into law by section 1(a)(3) 

17 of Public Law 106–554. 

18 ‘‘(j) DEMONSTRATION PROJECTS.— 

19 ‘‘(1) IN GENERAL.—The Secretary shall con20 duct and participate in demonstration projects ap21 proved by the Committee, including demonstration 

22 projects relating to— 

23 ‘‘(A) coal gasification and coal liquefaction; 

24 ‘‘(B) carbon sequestration; 

25 ‘‘(C) cogeneration technology initiatives; 
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1 ‘‘(D) advanced nuclear power projects; 

2 ‘‘(E) lower emission transportation; 

3 ‘‘(F) renewable energy; and 

4 ‘‘(G) transmission upgrades. 

5 ‘‘(2) CRITERIA.—The Committee shall approve 

6 a demonstration project under paragraph (1) if the 

7 proposed demonstration project would— 

8 ‘‘(A) increase the reduction of the green9 house gas intensity to levels below that which 

10 would be achieved by technologies being used in 

11 the United States as of the date of enactment 

12 of this section; 

13 ‘‘(B) maximize the potential return on 

14 Federal investment; 

15 ‘‘(C) demonstrate distinct roles in public16 private partnerships; 

17 ‘‘(D) produce a large-scale reduction of 

18 greenhouse gas intensity if commercialization 

19 occurred; and 

20 ‘‘(E) support a diversified portfolio to miti21 gate the uncertainty associated with a single 

22 technology. 

23 ‘‘(k) COOPERATIVE RESEARCH AND DEVELOPMENT

24 AGREEMENTS.—In carrying out greenhouse gas intensity 

25 reduction research and technology deployment, the Sec-
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1 retary may enter into cooperative research and develop2 ment agreements under section 12 of the Stevenson3 Wydler Technology Innovation Act of 1980 (15 U.S.C. 

4 3710a). 

5 ‘‘(l) AUTHORIZATION OF APPROPRIATIONS.—There 

6 are authorized to be appropriated such sums as are nec7 essary to carry out this section (other than subsection (j)). 

8 ‘‘(m) TERMINATION OF AUTHORITY.—The authority 

9 provided by this section terminates effective December 31, 

10 2010.’’. 

11 SEC. 3. CLIMATE INFRASTRUCTURE CREDIT. 

12 Title XVI of the Energy Policy Act of 1992 (42 

13 (U.S.C. 13381 et seq.) (as amended by section 2) is 

14 amended by adding at the end the following: 

15 ‘‘SEC. 1611. CLIMATE INFRASTRUCTURE CREDIT. 

16 ‘‘(a) DEFINITIONS.—In this section: 

17 ‘‘(1) ADVANCED CLIMATE TECHNOLOGY OR SYS18 TEM.—The term ‘advanced climate technology or 

19 system’ means a climate technology or system that 

20 is not in general usage as of the date of enactment 

21 of this section. 

22 ‘‘(2) BOARD.—The term ‘Board’ means the Cli23 mate Credit Board established under subsection 

24 (b)(2)(A). 
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1 ‘‘(3) DIRECT LOAN.—The term ‘direct loan’ has 

2 the meaning given the term in section 502 of the 

3 Federal Credit Reform Act of 1990 (2 U.S.C. 661a). 

4 ‘‘(4) ELIGIBLE PROJECT.—The term ‘eligible 

5 project’ means a demonstration project that is ap6 proved under section 1610(j)(1). 

7 ‘‘(5) ELIGIBLE PROJECT COST.—The term ‘eli8 gible project cost’ means any amount incurred for an 

9 eligible project that is paid by, or on behalf of, an 

10 obligor, including the costs of— 

11 ‘‘(A) pre-construction activities, includ12 ing— 

13 ‘‘(i) detailed project engineering and 

14 design work; 

15 ‘‘(ii) environmental reviews and per16 mitting; and 

17 ‘‘(iii) other pre-construction activities, 

18 as determined by the Secretary; 

19 ‘‘(B) construction activities, including— 

20 ‘‘(i) the acquisition of capital equip21 ment; 

22 ‘‘(ii) construction management; and 

23 ‘‘(iii) construction contingencies; and 
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1 ‘‘(C) acquiring land (including any im2 provements to the land) relating to the eligible 

3 project; and 

4 ‘‘(D) financing the eligible project, includ5 ing— 

6 ‘‘(i) providing capitalized interest nec7 essary to meet market requirements; 

8 ‘‘(ii) maintaining reasonably required 

9 reserve funds; 

10 ‘‘(iii) capital issuance expenses; and 

11 ‘‘(iv) other carrying costs during con12 struction. 

13 ‘‘(6) FEDERAL FINANCIAL ASSISTANCE.—The 

14 term ‘Federal financial assistance’ means any credit15 based financial assistance, including a direct loan, 

16 loan guarantee, a line of credit (which serves as 

17 standby default coverage or standby interest cov18 erage), production incentive payment under sub19 section (g)(1)(B), or other credit-based financial as20 sistance mechanism for an eligible project that is— 

21 ‘‘(A) authorized to be made available by 

22 the Secretary for an eligible project under this 

23 section; and 
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1 ‘‘(B) provided in accordance with the Fed2 eral Credit Reform Act of 1990 (2 U.S.C. 661 

3 et seq.). 

4 ‘‘(7) INVESTMENT-GRADE RATING.—The term 

5 ‘investment-grade rating’ means a rating category of 

6 BBB minus, Baa3, or higher assigned by a rating 

7 agency for eligible project obligations offered into 

8 the capital markets. 

9 ‘‘(8) LENDER.—The term ‘lender’ means any 

10 non-Federal qualified institutional buyer (as defined 

11 in section 230.144A(a) of title 17, Code of Federal 

12 Regulations (or any successor regulation), known as 

13 Rule 144A(a) of the Securities and Exchange Com14 mission and issued under the Securities Act of 1933 

15 (15 U.S.C. 77a et seq.)), including— 

16 ‘‘(A) a qualified retirement plan (as de17 fined in section 4974(c) of the Internal Revenue 

18 Code of 1986) that is a qualified institutional 

19 buyer; and 

20 ‘‘(B) a governmental plan (as defined in 

21 section 414(d) of the Internal Revenue Code of 

22 1986) that is a qualified institutional buyer. 

23 ‘‘(9) LOAN GUARANTEE.—The term ‘loan guar24 antee’ means any guarantee or other pledge by the 

25 Secretary to pay all or part of the principal of and 
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1 interest on a loan or other debt obligation that is 

2 issued by an obligor and funded by a lender. 

3 ‘‘(10) OBLIGOR.—The term ‘obligor’ means a 

4 person or entity (including a corporation, partner5 ship, joint venture, trust, or governmental entity, 

6 agency, or instrumentality) that is primarily liable 

7 for payment of the principal of, or interest on, a 

8 Federal credit instrument. 

9 ‘‘(11) PROJECT OBLIGATION.—The term 

10 ‘project obligation’ means any note, bond, debenture, 

11 or other debt obligation issued by an obligor in con12 nection with the financing of an eligible project, 

13 other than a Federal credit instrument. 

14 ‘‘(12) RATING AGENCY.—The term ‘rating 

15 agency’ means a bond rating agency identified by 

16 the Securities and Exchange Commission as a Na17 tionally Recognized Statistical Rating Organization. 

18 ‘‘(13) REGULATORY FAILURE.—The term ‘regu19 latory failure’ means a situation in which, because of 

20 a breakdown in a regulatory process or an indefinite 

21 delay caused by a judicial challenge to the regulatory 

22 consideration of a specific eligible project, the Fed23 eral or State regulatory or licensing process gov24 erning the siting, construction, or commissioning of 

25 an eligible project does not produce a definitive de-
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1 termination that the eligible project may go forward 

2 or stop within a predetermined and prescribed time 

3 period, as determined by the Secretary. 

4 ‘‘(14) SECURED LOAN.—The term ‘secured 

5 loan’ means a loan or other secured debt obligation 

6 issued by an obligor and funded by the Secretary in 

7 connection with the financing of an eligible project. 

8 ‘‘(15) STANDBY DEFAULT COVERAGE.—The 

9 term ‘standby default coverage’ means a pledge by 

10 the Secretary to pay all or part of the debt obliga11 tion issued by an obligor and funded by a lender, 

12 plus all or part of obligor equity, if an eligible 

13 project fails to receive an operating license in a pe14 riod of time established by the Secretary because of 

15 a regulatory failure or other specific issue identified 

16 by the Secretary. 

17 ‘‘(16) STANDBY INTEREST COVERAGE.—The 

18 term ‘standby interest coverage’ means a pledge by 

19 the Secretary to provide to an obligor, at a future 

20 date and on the occurrence of 1 or more events, a 

21 direct loan, the proceeds of which shall be used by 

22 the obligor to maintain the current status of the ob23 ligor on interest payments due on 1 or more loans 

24 or other project obligations issued by an obligor and 

25 funded by a lender for an eligible project. 
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1 ‘‘(17) SUBSIDY AMOUNT.—The term ‘subsidy 

2 amount’ means the amount of budget authority suf3 ficient to cover the estimated long-term cost to the 

4 Federal Government of a Federal credit instrument 

5 issued by the Secretary to an eligible project, cal6 culated on a net present value basis, excluding ad7 ministrative costs and any incidental effects on gov8 ernmental receipts or outlays in accordance with the 

9 Federal Credit Reform Act of 1990 (2 U.S.C. 661 

10 et seq.). 

11 ‘‘(18) SUBSTANTIAL COMPLETION.—The term 

12 ‘substantial completion’ means that an eligible 

13 project has been determined by the Board to be in, 

14 or capable of, commercial operation. 

15 ‘‘(b) DUTIES OF THE SECRETARY.— 

16 ‘‘(1) IN GENERAL.—The Secretary shall make 

17 available to eligible project developers and eligible 

18 project owners, in accordance with this section, such 

19 financial assistance as is necessary to supplement 

20 private sector financing for eligible projects. 

21 ‘‘(2) CLIMATE CREDIT BOARD.— 

22 ‘‘(A) IN GENERAL.—Not later than 120 

23 days after the date of enactment of this section, 

24 the Secretary shall establish within the Depart-
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1 ment of Energy a Climate Credit Board com2 posed of— 

3 ‘‘(i) the Under Secretary of Energy, 

4 who shall serve as Chairperson; 

5 ‘‘(ii) the Chief Financial Officer of the 

6 Department of Energy; 

7 ‘‘(iii) the Assistant Secretary of En8 ergy for Policy and International Affairs; 

9 ‘‘(iv) the Assistant Secretary of En10 ergy for Energy Efficiency and Renewable 

11 Energy; and 

12 ‘‘(v) such other individuals as the Sec13 retary determines to have the experience 

14 and expertise (including expertise in cor15 porate and project finance and the energy 

16 sector) necessary to carry out the duties of 

17 the Board. 

18 ‘‘(B) DUTIES.—The Board shall— 

19 ‘‘(i) implement the program developed 

20 under section 1610(h)(1) in accordance 

21 with paragraph (3); 

22 ‘‘(ii) issue regulations and criteria in 

23 accordance with paragraph (4); 
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1 ‘‘(iii) conduct negotiations with indi2 viduals and entities interested in obtaining 

3 assistance under this section; 

4 ‘‘(iv) recommend to the Secretary po5 tential recipients and amounts of grants of 

6 assistance under this section; 

7 ‘‘(v) carry out such other projects and 

8 activities as the Interagency Coordinating 

9 Committee on Climate Change Technology 

10 may recommend; and 

11 ‘‘(vi) establish metrics to indicate the 

12 progress of the greenhouse gas intensity 

13 reducing technology deployment program 

14 and individual projects carried out under 

15 the program toward meeting the criteria 

16 established by section 1610(j)(2). 

17 ‘‘(3) GREENHOUSE GAS INTENSITY REDUCING

18 TECHNOLOGY DEPLOYMENT PROGRAM.—Not later 

19 than 1 year after the date of enactment of this sec20 tion, the Board shall implement the greenhouse gas 

21 intensity reducing technology deployment program 

22 developed under section 1610(h)(1). 

23 ‘‘(4) REGULATIONS AND CRITERIA.— 

24 ‘‘(A) IN GENERAL.—Not later than 1 year 

25 after the date of enactment of this section, the 
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1 Board shall issue and publish in the Federal 

2 Register such regulations and criteria as are 

3 necessary to implement this section. 

4 ‘‘(B) REQUIREMENTS.—The regulations 

5 and criteria shall provide for, at a minimum— 

6 ‘‘(i) a competitive process and the 

7 general terms and conditions for the provi8 sion of assistance under this section; 

9 ‘‘(ii) the procedures by which eligible 

10 project owners and eligible project devel11 opers may request financial assistance 

12 under this section; and 

13 ‘‘(iii) the collection of any other infor14 mation necessary for the Secretary to carry 

15 out this section, including a process for ne16 gotiating the terms and conditions of as17 sistance provided under this section. 

18 ‘‘(C) ELIGIBILITY AND CRITERIA.—The de19 termination of eligibility of, and criteria for se20 lecting, eligible projects to receive assistance 

21 under this section shall be carried out in ac22 cordance with subsection (c). 

23 ‘‘(D) CONDITIONS FOR PROVISION OF AS24 SISTANCE.—The Board shall not provide assist25 ance under this section unless the Board deter-
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1 mines that the terms, conditions, maturity, se2 curity, schedule, and amounts of repayments of 

3 the assistance are reasonable and meet such 

4 standards as the Board determines are appro5 priate to protect the financial interests of the 

6 United States. 

7 ‘‘(5) REPORTS TO THE PRESIDENT AND CON8 GRESS.—Not later than 4 years after the date of en9 actment of this section, and every 2 years thereafter, 

10 the Board shall submit to the Secretary, for trans11 mittal to the President and Congress, a report that 

12 describes— 

13 ‘‘(A) the progress in carrying out this sec14 tion; 

15 ‘‘(B) the financial performance of the eligi16 ble projects that are receiving, or have received, 

17 assistance under this section as of the date of 

18 the report; and 

19 ‘‘(C) the progress and value to the United 

20 States of the program under this section, in21 cluding a recommendation as to whether the ob22 jectives of this section are best served by— 

23 ‘‘(i) continuing the program under the 

24 authority of the Secretary; 
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1 ‘‘(ii) establishing a Federal Govern2 ment corporation or Federal Government3 sponsored enterprise to administer the pro4 gram; or 

5 ‘‘(iii) phasing out the program and re6 lying on the capital markets to fund the 

7 kinds of energy infrastructure investments 

8 assisted by this section without Federal 

9 participation. 

10 ‘‘(6) CONFIDENTIALITY.—The Board shall pro11 tect the confidentiality of any information provided 

12 by an applicant for assistance under this section 

13 that the applicant certifies to be commercially sen14 sitive or that is protected intellectual property. 

15 ‘‘(c) GENERAL REQUIREMENTS REGARDING ASSIST16 ANCE, DETERMINATION OF ELIGIBILITY, AND PROJECT

17 SELECTION.— 

18 ‘‘(1) IN GENERAL.—The Board shall not pro19 vide assistance to an eligible project under this sec20 tion unless the Board first determines that the 

21 amount of assistance to be provided for the eligible 

22 project is not greater than the amount of assistance 

23 required to achieve the criteria established under 

24 section 1610(j)(2) with respect to the eligible 

25 project. 
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1 ‘‘(2) ELIGIBILITY.—To be eligible to receive as2 sistance under this section, an eligible project shall, 

3 as determined by the Board— 

4 ‘‘(A) be supported by an application that 

5 contains all information required to be included 

6 by, and is submitted to and approved by the 

7 Board in accordance with, the regulations and 

8 criteria issued by the Board under subsection 

9 (b)(4); 

10 ‘‘(B) be nationally or regionally significant 

11 by— 

12 ‘‘(i) reducing greenhouse gas inten13 sity; 

14 ‘‘(ii) generating economic benefits; 

15 ‘‘(iii) contributing to energy security; 

16 ‘‘(iv) contributing to energy and tech17 nology diversity in the energy economy of 

18 the United States; 

19 ‘‘(v) contributing to energy and elec20 tricity price stability; or 

21 ‘‘(vi) otherwise enhancing national or 

22 regional energy efficiency, reliability, and 

23 robustness of performance; 

24 ‘‘(C) contain an advanced climate tech25 nology or system that could— 
28 

•S 887 IS

1 ‘‘(i) significantly improve the effi2 ciency, security, reliability, and environ3 mental performance of the energy economy 

4 of the United States; and 

5 ‘‘(ii) reduce greenhouse gas emissions; 

6 ‘‘(D) have revenue sources dedicated to re7 payment of credit support-based project financ8 ing, such as revenue— 

9 ‘‘(i) from the sale of sequestered car10 bon; 

11 ‘‘(ii) from the sale of energy, elec12 tricity, or other products from eligible 

13 projects that employ advanced climate 

14 technologies and systems; 

15 ‘‘(iii) from the sale of transportation 

16 of commerce; 

17 ‘‘(iv) from the sale of electricity or 

18 generating capacity, in the case of elec19 tricity infrastructure; 

20 ‘‘(v) from the sale or transmission of 

21 energy; 

22 ‘‘(vi) associated with energy efficiency 

23 gains, in the case of other energy projects; 

24 or 
29 

•S 887 IS

1 ‘‘(vii) from other dedicated revenue 

2 sources; 

3 ‘‘(E) include a project proposal and agree4 ment for project financing repayment that dem5 onstrates to the satisfaction of the Board that 

6 the dedicated revenue sources described in sub7 paragraph (D) will be adequate to repay project 

8 financing provided under this section; 

9 ‘‘(F) reduce greenhouse gas intensity on a 

10 national or regional basis; and 

11 ‘‘(G) if the eligible project involves new 

12 transmission capacity, link to low-emission 

13 projects. 

14 ‘‘(3) LIMITATIONS.—Except as otherwise pro15 vided in this section— 

16 ‘‘(A) the total cost of an eligible project 

17 provided Federal financial assistance under this 

18 section shall be at least $40,000,000; 

19 ‘‘(B) the Federal share of an eligible 

20 project provided Federal financial assistance 

21 under this section shall be not more than 20 

22 percent of the total cost of carrying out the eli23 gible project; 
30 

•S 887 IS

1 ‘‘(C) not more than $200,000,000 in Fed2 eral financial assistance shall be provided to 

3 any individual eligible project; and 

4 ‘‘(D) an eligible project shall not be eligible 

5 for financial assistance from any other Federal 

6 program during any period that Federal finan7 cial assistance is provided to the eligible project 

8 under this section. 

9 ‘‘(4) SELECTION AMONG ELIGIBLE PROJECTS.— 

10 ‘‘(A) ESTABLISHMENT OF SELECTION CRI11 TERIA.—The Board shall establish criteria for 

12 selecting which eligible projects will receive as13 sistance under this section. 

14 ‘‘(B) REQUIREMENTS.—The selection cri15 teria shall include a determination by the Board 

16 of the extent to which— 

17 ‘‘(i) the eligible project reduces green18 house gas intensity beyond reductions 

19 achieved by technology available as of Oc20 tober 15, 1992; 

21 ‘‘(ii) financing for the eligible project 

22 has appropriate security features, such as 

23 a rate covenant, to ensure repayment; 

24 ‘‘(iii) assistance under this section for 

25 the eligible project would foster innovative 
31 

•S 887 IS

1 public-private partnerships and attract pri2 vate debt or equity investment; 

3 ‘‘(iv) assistance under this section for 

4 an eligible project would enable the eligible 

5 project to proceed at an earlier date than 

6 would otherwise be practicable; 

7 ‘‘(v) the eligible project uses new tech8 nologies that enhance the efficiency, reduce 

9 the environmental impact, improve the reli10 ability, or improve the safety, of the eligi11 ble project; 

12 ‘‘(vi) the eligible project helps to 

13 maintain or protect the environment, espe14 cially with respect to having a low level of 

15 emissions to the atmosphere; 

16 ‘‘(vii) assistance for the eligible 

17 project provided under this section could 

18 reduce the contribution of other Federal 

19 grant or funding assistance to the eligible 

20 project; and 

21 ‘‘(viii) the eligible project is nationally 

22 or regionally significant in terms of gener23 ating economic benefits, supporting inter24 national commerce, or otherwise enhancing 

25 national energy efficiency, security, reli-
32 

•S 887 IS

1 ability, robustness, and environmental per2 formance. 

3 ‘‘(C) FINANCIAL INFORMATION.—An appli4 cation for assistance for an eligible project 

5 under this section shall include such informa6 tion as the Secretary determines to be nec7 essary concerning— 

8 ‘‘(i) the amount of budget authority 

9 required to fund the Federal credit instru10 ment requested for the eligible project; 

11 ‘‘(ii) the estimated construction costs 

12 of the proposed eligible project; 

13 ‘‘(iii) estimates of construction and 

14 operating costs of the eligible project; 

15 ‘‘(iv) projected revenues from the eli16 gible project; and 

17 ‘‘(v) any other financial aspects of the 

18 eligible project, including assurances, that 

19 the Board determines to be appropriate. 

20 ‘‘(D) PRELIMINARY RATING OPINION LET21 TER.—The Board shall require each applicant 

22 seeking assistance for an eligible project under 

23 this section to provide a preliminary rating 

24 opinion letter from at least 1 credit rating 

25 agency indicating that the senior obligations of 
33 

•S 887 IS

1 the eligible project have the potential to achieve 

2 an investment-grade rating. 

3 ‘‘(E) RISK ASSESSMENT.—Before entering 

4 into any agreement to provide assistance for an 

5 eligible project under this section, the Board, in 

6 consultation with the Secretary, the Director of 

7 the Office of Management and Budget, and 

8 each credit rating agency providing a prelimi9 nary rating opinion letter under subparagraph 

10 (D), shall determine and maintain an appro11 priate capital reserve subsidy amount for each 

12 line of credit established for the eligible project, 

13 taking into account the information contained 

14 in the preliminary rating opinion letter. 

15 ‘‘(F) INVESTMENT-GRADE RATING RE16 QUIREMENT.— 

17 ‘‘(i) IN GENERAL.—The funding of 

18 any assistance under this section shall be 

19 contingent on the senior obligations of the 

20 eligible project receiving an investment21 grade rating from at least 1 credit rating 

22 agency. 

23 ‘‘(ii) CONSIDERATIONS.—In deter24 mining whether an investment-grade rating 

25 is appropriate under clause (i), the credit 
34 

•S 887 IS

1 rating agency shall take into account the 

2 availability of Federal financial assistance 

3 under this section. 

4 ‘‘(5) MAXIMUM AVAILABLE CLIMATE CREDIT

5 SUPPORT.—Notwithstanding any assistance limita6 tion under any other provision of this section, the 

7 Secretary shall not provide energy credit support to 

8 any eligible project in the form of a secured loan or 

9 loan guarantee under subsection (f), production in10 centive payments under subsection (g), or other 

11 credit-based financial assistance under subsection 

12 (h), the combined total of which exceeds 20 percent 

13 of eligible project costs, excluding the value of stand14 by default coverage under subsection (d) and stand15 by interest coverage under subsection (e), as deter16 mined by the Secretary. 

17 ‘‘(d) STANDBY DEFAULT COVERAGE.— 

18 ‘‘(1) AGREEMENTS; USE OF PROCEEDS.— 

19 ‘‘(A) AGREEMENTS.— 

20 ‘‘(i) IN GENERAL.—Subject to sub21 paragraph (B), the Board, in consultation 

22 with the Secretary, may enter into agree23 ments to provide standby default coverage 

24 for advanced climate technologies or sys25 tems of an eligible project. 
35 

•S 887 IS

1 ‘‘(ii) RECIPIENTS.—Coverage under 

2 clause (i) may be provided to 1 or more ob3 ligors and debt holders to be triggered at 

4 future dates on the occurrence of certain 

5 events for any eligible project selected 

6 under subsection (c). 

7 ‘‘(B) USE OF PROCEEDS.—The proceeds of 

8 standby default coverage made available under 

9 this subsection shall be available to reimburse 

10 all or part of the debt obligation for an eligible 

11 project issued by an obligor and funded by a 

12 lender, plus all or part of obligor equity, in the 

13 event that, because of a regulatory failure or 

14 other event specified by the Secretary pursuant 

15 to this section, an eligible advanced climate 

16 technology or system for an eligible project fails 

17 to receive an operating license in a period of 

18 time specified by the Board in accordance with 

19 this subsection. 

20 ‘‘(2) TERMS AND LIMITATIONS.— 

21 ‘‘(A) IN GENERAL.—Standby default cov22 erage under this subsection with respect to an 

23 eligible project shall be on such terms and con24 ditions and contain such covenants, representa25 tions, warranties, and requirements (including 
36 

•S 887 IS

1 requirements for audits) as the Board deter2 mines to be appropriate. 

3 ‘‘(B) MAXIMUM AMOUNTS.—The total 

4 amount of standby default coverage provided 

5 for an eligible project shall not exceed 100 per6 cent of the reasonably anticipated eligible 

7 project costs, including debt and equity. 

8 ‘‘(C) EXERCISE.—Any exercise on the 

9 standby default coverage shall be made only if 

10 a facility involved with the eligible project fails, 

11 because of regulatory failure or other specific 

12 issues specified by the Secretary, to receive an 

13 operating license by such deadline as the Sec14 retary shall establish. 

15 ‘‘(D) COST OF COVERAGE.—The cost of 

16 standby default coverage shall be assumed by 

17 the Secretary subject to the risk assessment 

18 calculation required under subsection (c)(4)(E) 

19 and the availability of funds for that purpose. 

20 ‘‘(E) FEES.—In carrying out this section, 

21 the Secretary may— 

22 ‘‘(i) establish fees at a level sufficient 

23 to cover all or a portion of the administra24 tive costs incurred by the Federal Govern-
37 

•S 887 IS

1 ment in providing standby default coverage 

2 under this subsection; and 

3 ‘‘(ii) require that the fees be paid 

4 upon application for a standby default cov5 erage agreement under this subsection. 

6 ‘‘(F) PERIOD OF AVAILABILITY.—In the 

7 event that regulatory approval to operate a fa8 cility is suspended as a result of regulatory fail9 ure or other circumstances specified by the Sec10 retary, standby default coverage shall be avail11 able beginning on the date of substantial com12 pletion and ending not later than 5 years after 

13 the date on which operation of the facility is 

14 scheduled to commence. 

15 ‘‘(G) RIGHTS OF THIRD-PARTY CREDI16 TORS.— 

17 ‘‘(i) AGAINST FEDERAL GOVERN18 MENT.—A third-party creditor of an obli19 gor shall not have any right against the 

20 Federal Government with respect to any 

21 amounts other than those specified in sub22 paragraph (B). 

23 ‘‘(ii) ASSIGNMENT.—An obligor may 

24 assign all or part of the standby default 

25 coverage for an eligible project to 1 or 
38 

•S 887 IS

1 more lenders or to a trustee on behalf of 

2 the lenders. 

3 ‘‘(H) RESULT OF EXERCISE OF STANDBY

4 DEFAULT COVERAGE.—If standby default cov5 erage is exercised by the obligor of an eligible 

6 project— 

7 ‘‘(i) the Federal Government shall be8 come the sole owner of the eligible project, 

9 with all rights and appurtenances to the el10 igible project; and 

11 ‘‘(ii) the Board shall dispose of the as12 sets of the eligible project on terms that 

13 are most favorable to the Federal Govern14 ment, which may include continuing to li15 censing and commercial operation or resale 

16 of the eligible project, in whole or in part, 

17 if that is the best course of action in the 

18 judgment of the Board. 

19 ‘‘(I) ESTIMATE OF ASSETS AT TIME OF

20 TERMINATION.—If standby default coverage is 

21 exercised and an eligible project is terminated, 

22 the Board, in making a determination of wheth23 er to dispose of the assets of the eligible project 

24 or continue the eligible project to licensing and 

25 commercial operation, shall obtain a fair and 
39 

•S 887 IS

1 impartial estimate of the eligible project assets 

2 at the time of termination. 

3 ‘‘(J) RELATIONSHIP TO OTHER CREDIT IN4 STRUMENTS.—An eligible project that receives 

5 standby default coverage under this subsection 

6 may receive a secured loan or loan guarantee 

7 under subsection (f), production incentive pay8 ments under subsection (g), or assistance 

9 through a credit-based financial assistance 

10 mechanism under subsection (h). 

11 ‘‘(K) OTHER CONDITIONS AND REQUIRE12 MENTS.—The Secretary may impose such other 

13 conditions and requirements in connection with 

14 any insurance provided under this subsection 

15 (including requirements for audits) as the Sec16 retary determines to be appropriate. 

17 ‘‘(e) STANDBY INTEREST COVERAGE.— 

18 ‘‘(1) IN GENERAL.— 

19 ‘‘(A) AGREEMENTS.—Subject to subpara20 graph (B), the Board may enter into agree21 ments to make standby interest coverage avail22 able to 1 or more obligors in the form of loans 

23 for advanced climate or energy technologies or 

24 systems to be made by the Board at future 

25 dates on the occurrence of certain events for 
40 

•S 887 IS

1 any eligible project selected under subsection 

2 (c)(4). 

3 ‘‘(B) USE OF PROCEEDS.—Subject to sub4 section (c)(3), the proceeds of standby interest 

5 coverage made available under this subsection 

6 shall be available to pay the debt service on 

7 project obligations issued to finance eligible 

8 project costs of an eligible project if a delay in 

9 commercial operations occurs due to a regu10 latory failure or other condition determined by 

11 the Secretary. 

12 ‘‘(2) TERMS AND LIMITATIONS.— 

13 ‘‘(A) IN GENERAL.—Standby interest cov14 erage under this subsection with respect to an 

15 eligible project shall be made on such terms and 

16 conditions (including a requirement for an 

17 audit) as the Secretary determines appropriate. 

18 ‘‘(B) MAXIMUM AMOUNTS.— 

19 ‘‘(i) TOTAL AMOUNT.—The total 

20 amount of standby interest coverage for an 

21 eligible project under this subsection shall 

22 not exceed 20 percent of the reasonably 

23 anticipated eligible project costs of the eli24 gible project. 
41 

•S 887 IS

1 ‘‘(ii) 1-YEAR DRAWS.—The amount 

2 drawn in any 1 year for an eligible project 

3 under this subsection shall not exceed 20 

4 percent of the total amount of the standby 

5 interest coverage for the eligible project. 

6 ‘‘(C) PERIOD OF AVAILABILITY.—The 

7 standby interest coverage for an eligible project 

8 shall be available during the period— 

9 ‘‘(i) beginning on a date following 

10 substantial completion of the eligible 

11 project that regulatory approval to operate 

12 a facility under the eligible project is sus13 pended as a result of regulatory failure or 

14 other condition determined by the Sec15 retary; and 

16 ‘‘(ii) ending on a date that is not later 

17 than 5 years after the eligible project is 

18 scheduled to commence commercial oper19 ations. 

20 ‘‘(D) COST OF COVERAGE.—Subject to 

21 subsection (c)(4)(E), the cost of standby inter22 est coverage for an eligible project under this 

23 subsection shall be borne by the Secretary. 

24 ‘‘(E) DRAWS.—Any draw on the standby 

25 interest coverage for an eligible project shall— 
42 

•S 887 IS

1 ‘‘(i) represent a loan; 

2 ‘‘(ii) be made only if there is a delay 

3 in commercial operations after the sub4 stantial completion of the eligible project; 

5 and 

6 ‘‘(iii) be subject to the overall credit 

7 support limitations established under sub8 section (c)(5). 

9 ‘‘(F) INTEREST RATE.— 

10 ‘‘(i) IN GENERAL.—Subject to clause 

11 (ii), the interest rate on a loan resulting 

12 from a draw on standby interest coverage 

13 under this subsection shall be established 

14 by the Secretary. 

15 ‘‘(ii) MINIMUM RATE.—The interest 

16 rate on a loan resulting from a draw on 

17 standby interest coverage under this sub18 section shall not be less than the current 

19 average market yield on outstanding mar20 ketable obligations of the United States 

21 with a maturity of 10 years, as of the date 

22 on which the standby interest coverage is 

23 obligated. 

24 ‘‘(G) SECURITY.—The standby interest 

25 coverage for an eligible project— 
43 

•S 887 IS

1 ‘‘(i) shall be payable, in whole or in 

2 part, from dedicated revenue sources gen3 erated by the eligible project; 

4 ‘‘(ii) shall require security for the 

5 project obligations; and 

6 ‘‘(iii) may have a lien on revenues de7 scribed in clause (i), subject to any lien se8 curing project obligations. 

9 ‘‘(H) RIGHTS OF THIRD-PARTY CREDI10 TORS.— 

11 ‘‘(i) AGAINST FEDERAL GOVERN12 MENT.—A third-party creditor of the obli13 gor shall not have any right against the 

14 Federal Government with respect to any 

15 draw on standby interest coverage under 

16 this subsection. 

17 ‘‘(ii) ASSIGNMENT.—An obligor may 

18 assign the standby interest coverage to 1 

19 or more lenders or to a trustee on behalf 

20 of the lenders. 

21 ‘‘(I) SUBORDINATION.—A secured loan for 

22 an eligible project made under this subsection 

23 shall be subordinate to senior private debt 

24 issued by a lender for the eligible project. 
44 

•S 887 IS

1 ‘‘(J) NONRECOURSE STATUS.—A secured 

2 loan for an eligible project under this subsection 

3 shall be nonrecourse to the obligor in the event 

4 of bankruptcy, insolvency, or liquidation of the 

5 eligible project. 

6 ‘‘(K) FEES.—The Board may impose fees 

7 at a level sufficient to cover all or part of the 

8 costs to the Federal Government of providing 

9 standby interest coverage for an eligible project 

10 under this subsection. 

11 ‘‘(3) REPAYMENT.— 

12 ‘‘(A) TERMS AND CONDITIONS.—The Sec13 retary shall establish a repayment schedule and 

14 terms and conditions for each loan for an eligi15 ble project under this subsection based on the 

16 projected cash flow from revenues for the eligi17 ble project. 

18 ‘‘(B) REPAYMENT SCHEDULE.—Scheduled 

19 repayments of principal or interest on a loan 

20 under this subsection shall— 

21 ‘‘(i) commence not later than 5 years 

22 after the end of the period of availability 

23 specified in paragraph (2)(C); and 
45 

•S 887 IS

1 ‘‘(ii) be completed, with interest, not 

2 later than 10 years after the end of the pe3 riod of availability. 

4 ‘‘(C) SOURCES OF REPAYMENT FUNDS.— 

5 The sources of funds for scheduled loan repay6 ments under this subsection shall include— 

7 ‘‘(i) the sale of electricity or gener8 ating capacity; 

9 ‘‘(ii) the sale or transmission of en10 ergy; 

11 ‘‘(iii) revenues associated with energy 

12 efficiency gains; or 

13 ‘‘(iv) other dedicated revenue sources, 

14 such as carbon use. 

15 ‘‘(D) PREPAYMENT.— 

16 ‘‘(i) USE OF EXCESS REVENUES.—At 

17 the discretion of the obligor, any excess 

18 revenues that remain after satisfying 

19 scheduled debt service requirements on the 

20 project obligations and secured loan, and 

21 all deposit requirements under the terms of 

22 any trust agreement, bond resolution, or 

23 similar agreement securing project obliga24 tions, may be applied annually to prepay 

25 the secured loan without penalty. 
46 

•S 887 IS

1 ‘‘(ii) USE OF PROCEEDS OF REFI2 NANCING.—The secured loan may be pre3 paid at any time without penalty from the 

4 proceeds of refinancing from non-Federal 

5 funding sources. 

6 ‘‘(f) SECURED LOANS AND LOAN GUARANTEES.— 

7 ‘‘(1) IN GENERAL.— 

8 ‘‘(A) AGREEMENTS.—Subject to subpara9 graph (B), the Board may enter into agree10 ments with 1 or more obligors to make secured 

11 loans for eligible projects involving advanced cli12 mate technologies or systems. 

13 ‘‘(B) USE OF PROCEEDS.—Subject to 

14 paragraph (2), the proceeds of a secured loan 

15 for an eligible project made available under this 

16 subsection shall be available, in conjunction 

17 with the equity of the obligor and senior debt 

18 financing for the eligible project, to pay for eli19 gible project costs. 

20 ‘‘(2) TERMS AND LIMITATIONS.— 

21 ‘‘(A) IN GENERAL.—A secured loan under 

22 this subsection with respect to an eligible 

23 project shall be made on such terms and condi24 tions (including requirements for an audit) as 
47 

•S 887 IS

1 the Board, in consultation with the Secretary, 

2 determines appropriate. 

3 ‘‘(B) MAXIMUM AMOUNT.—Subject to sub4 section (c)(5), the total amount of the secured 

5 loan for an eligible project under this subsection 

6 shall not exceed 20 percent of the reasonably 

7 anticipated eligible project costs of the eligible 

8 project. 

9 ‘‘(C) PERIOD OF AVAILABILITY.—The 

10 Board may enter into a contract with the owner 

11 or operator of an eligible project to provide a 

12 secured loan during the period— 

13 ‘‘(i) beginning on the date that the fi14 nancial structure of the eligible project is 

15 established; and 

16 ‘‘(ii) ending on the date of the start of 

17 construction of the eligible project. 

18 ‘‘(D) COST OF COVERAGE.—Subject to 

19 subsection (c)(4)(E), the cost of a secured loan 

20 for an eligible project under this subsection 

21 shall be borne by the Secretary. 

22 ‘‘(E) INTEREST RATE.— 

23 ‘‘(i) IN GENERAL.—Subject to clause 

24 (ii), the interest rate on a secured loan 
48 

•S 887 IS

1 under this subsection shall be established 

2 by the Secretary. 

3 ‘‘(ii) MINIMUM RATE.—The interest 

4 rate on a loan resulting from a secured 

5 loan under this subsection shall not be less 

6 than the current average market yield on 

7 outstanding marketable obligations of the 

8 United States of comparable maturity, as 

9 of the date of the execution of the loan 

10 agreement. 

11 ‘‘(F) SECURITY.—The secured loan— 

12 ‘‘(i) shall be payable, in whole or in 

13 part, from dedicated revenue sources gen14 erated by the eligible project; 

15 ‘‘(ii) shall include a rate covenant, 

16 coverage requirement, or similar security 

17 feature supporting the project obligations; 

18 and 

19 ‘‘(iii) may have a lien on revenues de20 scribed in clause (i), subject to any lien se21 curing project obligations. 

22 ‘‘(G) RIGHTS OF THIRD-PARTY CREDI23 TORS.— 

24 ‘‘(i) AGAINST FEDERAL GOVERN25 MENT.—A third-party creditor of the obli-
49 

•S 887 IS

1 gor shall not have any right against the 

2 Federal Government with respect to any 

3 payments due to the Federal Government 

4 under this subsection. 

5 ‘‘(ii) ASSIGNMENT.—An obligor may 

6 assign the secured loan to 1 or more lend7 ers or to a trustee on behalf of the lenders. 

8 ‘‘(H) SUBORDINATION.—A secured loan 

9 for an eligible project made under this sub10 section shall be subordinate to senior private 

11 debt issued by a lender for the eligible project. 

12 ‘‘(I) NONRECOURSE STATUS.—A secured 

13 loan for an eligible project under this subsection 

14 shall be non-recourse to the obligor in the event 

15 of bankruptcy, insolvency, or liquidation of the 

16 eligible project. 

17 ‘‘(J) FEES.—The Board may establish fees 

18 at a level sufficient to cover all or a portion of 

19 the costs to the Federal Government of making 

20 secured loans for an eligible project under this 

21 subsection. 

22 ‘‘(3) REPAYMENT.— 

23 ‘‘(A) SCHEDULE AND TERMS.—The Board 

24 shall establish a repayment schedule and terms 

25 and conditions for each secured loan for an eli-
50 

•S 887 IS

1 gible project under this subsection based on the 

2 projected cash flow from revenues for the eligi3 ble project. 

4 ‘‘(B) REPAYMENT SCHEDULE.—Scheduled 

5 repayments on a secured loan for an eligible 

6 project under this subsection shall— 

7 ‘‘(i) commence not later than 5 years 

8 after the scheduled start of commercial op9 erations of the eligible project; and 

10 ‘‘(ii) be completed, with interest, not 

11 later than 35 years after the scheduled 

12 date of the start of commercial operations 

13 of the eligible project. 

14 ‘‘(C) SOURCES OF REPAYMENT FUNDS.— 

15 The sources of funds for scheduled loan repay16 ments under this subsection shall include— 

17 ‘‘(i) the sale of carbon or carbon com18 pounds; 

19 ‘‘(ii) the sale of electricity or gener20 ating capacity; 

21 ‘‘(iii) the sale of sequestration serv22 ices; 

23 ‘‘(iv) the sale or transmission of en24 ergy; 
51 

•S 887 IS

1 ‘‘(v) revenues associated with energy 

2 efficiency gains; or 

3 ‘‘(vi) other dedicated revenue sources. 

4 ‘‘(D) DEFERRED PAYMENTS.— 

5 ‘‘(i) AUTHORIZATION.—If, at any time 

6 during the 10-year period beginning on the 

7 date of the scheduled start of commercial 

8 operation of an eligible project, the eligible 

9 project is unable to generate sufficient rev10 enues to pay the scheduled loan repay11 ments of principal or interest on the se12 cured loan, the Secretary may, subject to 

13 clause (iii), allow the obligor to add unpaid 

14 principal or interest to the outstanding bal15 ance of the secured loan. 

16 ‘‘(ii) INTEREST.—Any payment de17 ferred under clause (i) shall— 

18 ‘‘(I) continue to accrue interest 

19 in accordance with paragraph (2)(E) 

20 until fully repaid; and 

21 ‘‘(II) be scheduled to be amor22 tized over the number of years re23 maining in the term of the loan in ac24 cordance with subparagraph (B). 

25 ‘‘(iii) CRITERIA.— 
52 

•S 887 IS

1 ‘‘(I) IN GENERAL.—Any payment 

2 deferral under clause (i) shall be con3 tingent on the eligible project meeting 

4 criteria established by the Secretary. 

5 ‘‘(II) REPAYMENT STANDARDS.— 

6 The criteria established under sub7 clause (I) shall include standards for 

8 reasonable assurance of repayment. 

9 ‘‘(E) PREPAYMENT.— 

10 ‘‘(i) USE OF EXCESS REVENUES.—At 

11 the discretion of the obligor, any excess 

12 revenues that remain after satisfying 

13 scheduled debt service requirements on the 

14 project obligations and secured loan, and 

15 all deposit requirements under the terms of 

16 any trust agreement, bond resolution, or 

17 similar agreement securing project obliga18 tions, may be applied annually to prepay 

19 the secured loan without penalty. 

20 ‘‘(ii) USE OF PROCEEDS OF REFI21 NANCING.—The secured loan may be pre22 paid at any time without penalty from the 

23 proceeds of refinancing from non-Federal 

24 funding sources. 

25 ‘‘(4) SALE OF SECURED LOANS.— 
53 

•S 887 IS

1 ‘‘(A) IN GENERAL.—Subject to subpara2 graph (B), as soon as practicable after substan3 tial completion of an eligible project and after 

4 notifying the obligor, the Board may sell to an5 other entity or reoffer into the capital markets 

6 a secured loan for the eligible project if the 

7 Board determines that the sale or reoffering 

8 can be made on favorable terms. 

9 ‘‘(B) CONSENT OF OBLIGOR.—In making a 

10 sale or reoffering under subparagraph (A), the 

11 Board may not change the original terms and 

12 conditions of the secured loan without the writ13 ten consent of the obligor. 

14 ‘‘(5) LOAN GUARANTEES.— 

15 ‘‘(A) IN GENERAL.—The Board may pro16 vide a loan guarantee to a lender, in lieu of 

17 making a secured loan, under this subsection if 

18 the Board determines that the budgetary cost 

19 of the loan guarantee is substantially the same 

20 as that of a secured loan. 

21 ‘‘(B) TERMS.— 

22 ‘‘(i) IN GENERAL.—Except as pro23 vided in clause (ii), the terms of a guaran24 teed loan shall be consistent with the terms 

25 for a secured loan under this subsection. 
54 

•S 887 IS

1 ‘‘(ii) INTEREST RATE; PREPAY2 MENT.—The interest rate on the guaran3 teed loan and any prepayment features 

4 shall be established by negotiations be5 tween the obligor and the lender, with the 

6 consent of the Board. 

7 ‘‘(g) PRODUCTION INCENTIVE PAYMENTS.— 

8 ‘‘(1) SECURED LOAN.— 

9 ‘‘(A) IN GENERAL.—The Secretary may 

10 enter into an agreement with 1 or more obligors 

11 to make a secured loan for an eligible project 

12 selected under subsection (c)(4) that employs 1 

13 or more advanced climate technologies or sys14 tems. 

15 ‘‘(B) PRODUCTION INCENTIVE PAY16 MENTS.— 

17 ‘‘(i) IN GENERAL.—Amounts loaned 

18 to an obligor under subparagraph (A) shall 

19 be made available in the form of a series 

20 of production incentive payments provided 

21 by the Board to the obligor during a period 

22 of not more than 10 years, as determined 

23 by the Board, beginning after the date on 

24 which commercial project operations start 

25 at the eligible project. 
55 

•S 887 IS

1 ‘‘(ii) AMOUNT.—Production incentive 

2 payments under clause (i) shall be for an 

3 amount equal to 20 percent of the value 

4 of— 

5 ‘‘(I) the energy produced or 

6 transmitted by the eligible project 

7 during the applicable year; or 

8 ‘‘(II) any gains in energy effi9 ciency achieved by the eligible project 

10 during the applicable year. 

11 ‘‘(2) TERMS AND LIMITATIONS.— 

12 ‘‘(A) IN GENERAL.—A secured loan under 

13 this subsection shall be subject to such terms 

14 and conditions, including any covenant, rep15 resentation, warranty, and requirement (includ16 ing a requirement for an audit) that the Sec17 retary determines to be appropriate. 

18 ‘‘(B) AGREEMENT COSTS.—Subject to sub19 section (c)(4), the cost of carrying out an agree20 ment entered into under paragraph (1)(A) shall 

21 be paid by the Secretary. 

22 ‘‘(C) INTEREST RATE.— 

23 ‘‘(i) IN GENERAL.—Subject to clause 

24 (ii), the interest rate on a secured loan 
56 

•S 887 IS

1 under this subsection shall be established 

2 by the Secretary. 

3 ‘‘(ii) MINIMUM RATE.—The interest 

4 rate on a secured loan under this sub5 section shall not be less than the current 

6 average market yield on outstanding mar7 ketable obligations of the United States of 

8 comparable maturity, as of the date on 

9 which the agreement under paragraph 

10 (1)(A) is executed. 

11 ‘‘(D) SECURITY.—The secured loan— 

12 ‘‘(i) shall be payable, in whole or in 

13 part, from dedicated revenue sources gen14 erated by the eligible project; 

15 ‘‘(ii) shall include a rate covenant, 

16 coverage requirement, or similar security 

17 feature supporting the eligible project obli18 gations; and 

19 ‘‘(iii) may have a lien on revenues de20 scribed in clause (i), subject to any lien se21 curing eligible project obligations. 

22 ‘‘(E) RIGHTS OF THIRD-PARTY CREDI23 TORS.— 

24 ‘‘(i) AGAINST FEDERAL GOVERN25 MENT.—A third-party creditor of the obli-
57 

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1 gor shall not have any right against the 

2 Federal Government with respect to any 

3 payments due to the Federal Government 

4 under the agreement entered into under 

5 paragraph (1)(A). 

6 ‘‘(ii) ASSIGNMENT.—An obligor may 

7 assign production incentive payments to 1 

8 or more lenders or to a trustee on behalf 

9 of the lenders. 

10 ‘‘(F) SUBORDINATION.—A secured loan 

11 under this subsection shall be subordinate to 

12 senior private debt issued by a lender for the el13 igible project. 

14 ‘‘(G) NONRECOURSE STATUS.—A secured 

15 loan under this subsection shall be nonrecourse 

16 to the obligor in the event of bankruptcy, insol17 vency, or liquidation of the eligible project. 

18 ‘‘(H) FEES.—The Secretary may impose 

19 fees at a level sufficient to cover all or part of 

20 the costs to the Federal Government of pro21 viding production incentive payments under this 

22 subsection. 

23 ‘‘(3) REPAYMENT.— 

24 ‘‘(A) SCHEDULE, TERMS, AND CONDI25 TIONS.—The Secretary shall establish a repay-
58 

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1 ment schedule and terms and conditions for 

2 each secured loan under this subsection based 

3 on the projected cash flow from revenues of the 

4 eligible project. 

5 ‘‘(B) REPAYMENT SCHEDULE.—Scheduled 

6 repayments of principal or interest on a secured 

7 loan under this subsection shall— 

8 ‘‘(i) commence not later than 5 years 

9 after the date on which the last production 

10 incentive payment is made by the Board 

11 under paragraph (1)(B); and 

12 ‘‘(ii) be completed, with interest, not 

13 later than 10 years after the date on which 

14 the last production incentive payment is 

15 made. 

16 ‘‘(C) SOURCES OF REPAYMENT FUNDS.— 

17 The sources of funds for scheduled loan repay18 ments under this subsection include— 

19 ‘‘(i) the sale of electricity or gener20 ating capacity, 

21 ‘‘(ii) the sale or transmission of en22 ergy; 

23 ‘‘(iii) revenues associated with energy 

24 efficiency gains; or 

25 ‘‘(iv) other dedicated revenue sources. 
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1 ‘‘(D) DEFERRED PAYMENTS.— 

2 ‘‘(i) AUTHORIZATION.—If, at any time 

3 during the 10–year period beginning on 

4 the date on which commercial operations of 

5 the eligible project start, the eligible 

6 project is unable to generate sufficient rev7 enues to pay the scheduled loan repay8 ments of principal or interest on a secured 

9 loan under this subsection, the Secretary 

10 may, subject to criteria established by the 

11 Secretary (including standards for reason12 able assurances of repayment), allow the 

13 obligor to add unpaid principal and inter14 est to the outstanding balance of the se15 cured loan. 

16 ‘‘(ii) INTEREST.—Any payment de17 ferred under clause (i) shall— 

18 ‘‘(I) continue to accrue interest 

19 in accordance with paragraph (2)(C) 

20 until fully repaid; and 

21 ‘‘(II) be scheduled to be amor22 tized over the number of years re23 maining in the term of the loan in ac24 cordance with subparagraph (B). 

25 ‘‘(E) PREPAYMENT.— 
60 

•S 887 IS

1 ‘‘(i) USE OF EXCESS REVENUES.—At 

2 the discretion of the obligor, any excess 

3 revenues that remain after satisfying 

4 scheduled debt service requirements on the 

5 eligible project obligations and the secured 

6 loan, and all deposit requirements under 

7 the terms of any trust agreement, bond 

8 resolution, or similar agreement securing 

9 eligible project obligations, may be applied 

10 annually to prepay loans pursuant to an 

11 agreement entered into under paragraph 

12 (1)(A) without penalty. 

13 ‘‘(ii) USE OF PROCEEDS OF REFI14 NANCING.—The secured loan may be pre15 paid at any time without penalty from the 

16 proceeds of refinancing from non-Federal 

17 funding sources. 

18 ‘‘(4) SALE OF SECURED LOANS.— 

19 ‘‘(A) IN GENERAL.—Subject to subpara20 graph (B), as soon as practicable after the date 

21 on which the last production incentive payment 

22 is made to the obligor under paragraph (1)(B) 

23 and after notifying the obligor, the Secretary 

24 may sell to another entity or reoffer into the 

25 capital markets a secured loan for the eligible 
61 

•S 887 IS

1 project if the Secretary determines that the sale 

2 or reoffering can be made on favorable terms. 

3 ‘‘(B) CONSENT REQUIRED.—In making a 

4 sale or reoffering under subparagraph (A), the 

5 Board may not change the original terms and 

6 conditions of the secured loan without the writ7 ten consent of the obligor. 

8 ‘‘(h) OTHER CREDIT-BASED FINANCIAL ASSISTANCE

9 MECHANISMS FOR ELIGIBLE PROJECTS.— 

10 ‘‘(1) IN GENERAL.— 

11 ‘‘(A) AGREEMENTS.—The Board may 

12 enter into an agreement with 1 or more obligors 

13 to make a secured loan to the obligors for eligi14 ble projects selected under subsection (c) that 

15 employ advanced technologies or systems, the 

16 proceeds of which shall be used to— 

17 ‘‘(i) finance eligible project costs; or 

18 ‘‘(ii) enhance eligible project revenues. 

19 ‘‘(B) CREDIT-BASED FINANCIAL ASSIST20 ANCE.—Amounts made available as a secured 

21 loan under subparagraph (A) shall be provided 

22 by the Board to the obligor in the form of cred23 it-based financial assistance mechanisms that 

24 are not otherwise specifically provided for in 
62 

•S 887 IS

1 subsections (d) through (g), as determined to 

2 be appropriate by the Secretary. 

3 ‘‘(2) TERMS AND LIMITATIONS.— 

4 ‘‘(A) IN GENERAL.—A secured loan under 

5 this subsection shall be subject to such terms 

6 and conditions (including any covenants, rep7 resentations, warranties, and requirements (in8 cluding a requirement for an audit)) as the Sec9 retary determines to be appropriate. 

10 ‘‘(B) MAXIMUM AMOUNT.—Subject to sub11 section (c)(5), the total amount of the secured 

12 loan under this subsection shall not exceed 50 

13 percent of the reasonably anticipated eligible 

14 project costs. 

15 ‘‘(C) PERIOD OF AVAILABILITY.—The 

16 Board may enter into a contract with the obli17 gor to provide credit-based financial assistance 

18 to an eligible project during the period— 

19 ‘‘(i) beginning on the date that the fi20 nancial structure of the eligible project is 

21 established; and 

22 ‘‘(ii) ending on the date of the start of 

23 construction of the eligible project. 

24 ‘‘(D) AGREEMENT COSTS.—Subject to sub25 section (c)(4)(E), the cost of carrying out an 
63 

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1 agreement entered into under paragraph (1)(A) 

2 shall be paid by the Board. 

3 ‘‘(E) INTEREST RATE.— 

4 ‘‘(i) IN GENERAL.—Subject to clause 

5 (ii), the interest rate on a secured loan 

6 under this subsection shall be established 

7 by the Board. 

8 ‘‘(ii) MINIMUM RATE.—The interest 

9 rate on a secured loan under this sub10 section shall not be less than the current 

11 average market yield on outstanding mar12 ketable obligations of the United States of 

13 comparable maturity, as of the date of the 

14 execution of the secured loan agreement. 

15 ‘‘(F) SECURITY.—The secured loan— 

16 ‘‘(i) shall be payable, in whole or in 

17 part, from dedicated revenue sources gen18 erated by the eligible project; 

19 ‘‘(ii) shall include a rate covenant, 

20 coverage requirement, or similar security 

21 feature supporting the eligible project obli22 gations; and 

23 ‘‘(iii) may have a lien on revenues de24 scribed in clause (i), subject to any lien se25 curing eligible project obligations. 
64 

•S 887 IS

1 ‘‘(G) RIGHTS OF THIRD-PARTY CREDI2 TORS.— 

3 ‘‘(i) AGAINST FEDERAL GOVERN4 MENT.—A third-party creditor of the obli5 gor shall not have any right against the 

6 Federal Government with respect to any 

7 payments due to the Federal Government 

8 under this subsection. 

9 ‘‘(ii) ASSIGNMENT.—An obligor may 

10 assign payments made pursuant to an 

11 agreement to provide credit-based financial 

12 assistance under this subsection to 1 or 

13 more lenders or to a trustee on behalf of 

14 the lenders. 

15 ‘‘(H) SUBORDINATION.—A secured loan 

16 under this subsection shall be subordinate to 

17 senior private debt issued by a lender for the el18 igible project. 

19 ‘‘(I) NONRECOURSE STATUS.—A secured 

20 loan under this subsection shall be nonrecourse 

21 to the obligor in the event of bankruptcy, insol22 vency, or liquidation of the eligible project. 

23 ‘‘(J) FEES.—The Board may establish fees 

24 at a level sufficient to cover all or part of the 

25 costs to the Federal Government of providing 
65 

•S 887 IS

1 credit-based financial assistance under this sub2 section. 

3 ‘‘(3) REPAYMENT.— 

4 ‘‘(A) SCHEDULE AND TERMS AND CONDI5 TIONS.—The Board shall establish a repayment 

6 schedule and terms and conditions for each se7 cured loan under this subsection based on the 

8 projected cash flow from eligible project reve9 nues. 

10 ‘‘(B) REPAYMENT SCHEDULE.—Scheduled 

11 loan repayments of principal or interest on a se12 cured loan under this subsection shall— 

13 ‘‘(i) commence not later than 5 years 

14 after the date of substantial completion of 

15 the eligible project; and 

16 ‘‘(ii) be completed, with interest, not 

17 later than 35 years after the date of sub18 stantial completion of the eligible project. 

19 ‘‘(C) SOURCES OF REPAYMENT FUNDS.— 

20 The sources of funds for scheduled loan repay21 ments under this subsection shall include— 

22 ‘‘(i) the sale of electricity or gener23 ating capacity; 

24 ‘‘(ii) the sale or transmission of en25 ergy; 
66 

•S 887 IS

1 ‘‘(iii) revenues associated with energy 

2 efficiency gains; or 

3 ‘‘(iv) other dedicated revenue sources, 

4 such as carbon sequestration. 

5 ‘‘(D) DEFERRED PAYMENTS.— 

6 ‘‘(i) AUTHORIZATION.—If, at any time 

7 during the 10-year period beginning on the 

8 date of the start of commercial operations 

9 of the eligible project, the eligible project is 

10 unable to generate sufficient revenues to 

11 pay the scheduled loan repayments of prin12 cipal or interest on a secured loan under 

13 this subsection, the Secretary may, subject 

14 to criteria established by the Secretary (in15 cluding standards for reasonable assur16 ances of repayment), allow the obligor to 

17 add unpaid principal and interest to the 

18 outstanding balance of the secured loan. 

19 ‘‘(ii) INTEREST.—Any payment de20 ferred under clause (i) shall— 

21 ‘‘(I) continue to accrue interest 

22 in accordance with paragraph (2)(E) 

23 until fully repaid; and 

24 ‘‘(II) be scheduled to be amor25 tized over the number of years re-
67 

•S 887 IS

1 ‘‘(II) be scheduled to be amor2 tized over the number of years re3 maining in the term of the loan in ac4 cordance with subparagraph (B). 

5 ‘‘(E) PREPAYMENT.— 

6 ‘‘(i) USE OF EXCESS REVENUES.—At 

7 the discretion of the obligor, any excess 

8 revenues that remain after satisfying 

9 scheduled debt service requirements on the 

10 eligible project obligations and secured 

11 loan, and all deposit requirements under 

12 the terms of any trust agreement, bond 

13 resolution, or similar agreement securing 

14 eligible project obligations, may be applied 

15 annually to prepay a secured loan under 

16 this subsection without penalty. 

17 ‘‘(ii) USE OF PROCEEDS OF REFI18 NANCING.—A secured loan under this sub19 section may be prepaid at any time without 

20 penalty from the proceeds of refinancing 

21 from non-Federal funding sources. 

22 ‘‘(4) SALE OF SECURED LOANS.— 

23 ‘‘(A) IN GENERAL.—Subject to subpara24 graph (B), as soon as practicable after the start 

25 of commercial operations of an eligible project 
68 

•S 887 IS

1 and after notifying the obligor, the Board may 

2 sell to another entity or reoffer into the capital 

3 markets a secured loan for the eligible project 

4 under this subsection if the Secretary deter5 mines that the sale or reoffering can be made 

6 on favorable terms. 

7 ‘‘(B) CONSENT OF OBLIGOR.—In making a 

8 sale or reoffering under subparagraph (A), the 

9 Board may not change the original terms and 

10 conditions of the secured loan without the writ11 ten consent of the obligor. 

12 ‘‘(i) FEDERAL, STATE, AND LOCAL REGULATORY

13 REQUIREMENTS.—The provision of Federal financial as14 sistance to an eligible project under this section shall 

15 not— 

16 ‘‘(1) relieve any recipient of the assistance of 

17 any obligation to obtain any required Federal, State, 

18 or local regulatory requirement, permit, or approval 

19 with respect to the eligible project; 

20 ‘‘(2) limit the right of any unit of Federal, 

21 State, or local government to approve or regulate 

22 any rate of return on private equity invested in the 

23 eligible project; or 
69 

•S 887 IS

1 ‘‘(3) otherwise supersede any Federal, State, or 

2 local law (including any regulation) applicable to the 

3 construction or operation of the eligible project. 

4 ‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—There 

5 is authorized to be appropriated to carry out this section 

6 $400,000,000 for each of fiscal years 2006 through 2010, 

7 to remain available until expended. 

8 ‘‘(k) TERMINATION OF AUTHORITY.—The authority 

9 provided by this section terminates effective December 31, 

10 2010.’’. 

Æ