1249 
HR 6 PAP 
the obligor in the event of bankruptcy, insol-
vency, or liquidation of the eligible project. 
‘‘(H) FEES.—The Secretary may impose 
fees at a level sufficient to cover all or part of 
the costs to the Federal Government of providing 
production incentive payments under this sub-
section. 
‘‘(3) REPAYMENT.— 
‘‘(A) 
SCHEDULE, 
TERMS, 
AND
CONDI-
TIONS.—The Secretary shall establish a repay-
ment schedule and terms and conditions for each 
secured loan under this subsection based on the 
projected cash flow from revenues of the eligible 
project. 
‘‘(B) REPAYMENT
SCHEDULE.—Scheduled 
repayments of principal or interest on a secured 
loan under this subsection shall— 
‘‘(i) commence not later than 5 years 
after the date on which the last production 
incentive payment is made by the Board 
under paragraph (1)(B); and 
‘‘(ii) be completed, with interest, not 
later than 10 years after the date on which 
the last production incentive payment is 
made.
1250 
HR 6 PAP 
‘‘(C) SOURCES
OF
REPAYMENT
FUNDS.— 
The sources of funds for scheduled loan repay-
ments under this subsection include— 
‘‘(i) the sale of electricity or generating 
capacity, 
‘‘(ii) the sale or transmission of energy; 
‘‘(iii) revenues associated with energy 
efficiency gains; or 
‘‘(iv) other dedicated revenue sources. 
‘‘(D) DEFERRED PAYMENTS.— 
‘‘(i) AUTHORIZATION.—If, at any time 
during the 10-year period beginning on the 
date on which commercial operations of the 
eligible project start, the eligible project is 
unable to generate sufficient revenues to pay 
the scheduled loan repayments of principal 
or interest on a secured loan under this sub-
section, the Secretary may, subject to cri-
teria established by the Secretary (including 
standards for reasonable assurances of re-
payment), allow the obligor to add unpaid 
principal and interest to the outstanding 
balance of the secured loan. 
‘‘(ii) INTEREST.—Any payment de-
ferred under clause (i) shall—
1251 
HR 6 PAP 
‘‘(I) continue to accrue interest in 
accordance 
with 
paragraph 
(2)(C) 
until fully repaid; and 
‘‘(II) be scheduled to be amortized 
over the number of years remaining in 
the term of the loan in accordance with 
subparagraph (B). 
‘‘(E) PREPAYMENT.— 
‘‘(i) USE OF EXCESS REVENUES.—At 
the discretion of the obligor, any excess reve-
nues that remain after satisfying scheduled 
debt service requirements on the eligible 
project obligations and the secured loan, 
and all deposit requirements under the 
terms of any trust agreement, bond resolu-
tion, or similar agreement securing eligible 
project obligations, may be applied annu-
ally to prepay loans pursuant to an agree-
ment entered into under paragraph (1)(A) 
without penalty. 
‘‘(ii) USE
OF
PROCEEDS
OF
REFI-
NANCING.—The secured loan may be pre-
paid at any time without penalty from the 
proceeds of refinancing from non-Federal 
funding sources.
1252 
HR 6 PAP 
‘‘(4) SALE OF SECURED LOANS.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), as soon as practicable after the date 
on which the last production incentive payment 
is made to the obligor under paragraph (1)(B) 
and after notifying the obligor, the Secretary 
may sell to another entity or reoffer into the cap-
ital markets a secured loan for the eligible 
project if the Secretary determines that the sale 
or reoffering can be made on favorable terms. 
‘‘(B) CONSENT
REQUIRED.—In making a 
sale or reoffering under subparagraph (A), the 
Board may not change the original terms and 
conditions of the secured loan without the writ-
ten consent of the obligor. 
‘‘(h) OTHER CREDIT-BASED FINANCIAL ASSISTANCE 
MECHANISMS FOR ELIGIBLE PROJECTS.— 
‘‘(1) IN GENERAL.— 
‘‘(A) AGREEMENTS.—The Board may enter 
into an agreement with 1 or more obligors to 
make a secured loan to the obligors for eligible 
projects selected under subsection (c) that employ 
advanced technologies or systems, the proceeds of 
which shall be used to— 
‘‘(i) finance eligible project costs; or
1253 
HR 6 PAP 
‘‘(ii) enhance eligible project revenues. 
‘‘(B) CREDIT-BASED
FINANCIAL
ASSIST-
ANCE.—Amounts made available as a secured 
loan under subparagraph (A) shall be provided 
by the Board to the obligor in the form of credit- 
based financial assistance mechanisms that are 
not otherwise specifically provided for in sub-
sections (d) through (g), as determined to be ap-
propriate by the Secretary. 
‘‘(2) TERMS AND LIMITATIONS.— 
‘‘(A) IN GENERAL.—A secured loan under 
this subsection shall be subject to such terms and 
conditions (including any covenants, representa-
tions, warranties, and requirements (including a 
requirement for an audit)) as the Secretary de-
termines to be appropriate. 
‘‘(B) MAXIMUM AMOUNT.—Subject to sub-
section (c)(5), the total amount of the secured 
loan under this subsection shall not exceed 50 
percent of the reasonably anticipated eligible 
project costs. 
‘‘(C) PERIOD OF AVAILABILITY.—The Board 
may enter into a contract with the obligor to 
provide credit-based financial assistance to an 
eligible project during the period—
1254 
HR 6 PAP 
‘‘(i) beginning on the date that the fi-
nancial structure of the eligible project is es-
tablished; and 
‘‘(ii) ending on the date of the start of 
construction of the eligible project. 
‘‘(D) AGREEMENT COSTS.—Subject to sub-
section (c)(4)(E), the cost of carrying out an 
agreement entered into under paragraph (1)(A) 
shall be paid by the Board. 
‘‘(E) INTEREST RATE.— 
‘‘(i) IN
GENERAL.—Subject to clause 
(ii), the interest rate on a secured loan 
under this subsection shall be established by 
the Board. 
‘‘(ii) MINIMUM
RATE.—The interest 
rate on a secured loan under this subsection 
shall not be less than the current average 
market yield on outstanding marketable ob-
ligations of the United States of comparable 
maturity, as of the date of the execution of 
the secured loan agreement. 
‘‘(F) SECURITY.—The secured loan— 
‘‘(i) shall be payable, in whole or in 
part, from dedicated revenue sources gen-
erated by the eligible project;
1255 
HR 6 PAP 
‘‘(ii) shall include a rate covenant, cov-
erage requirement, or similar security fea-
ture supporting the eligible project obliga-
tions; and 
‘‘(iii) may have a lien on revenues de-
scribed in clause (i), subject to any lien se-
curing eligible project obligations. 
‘‘(G) RIGHTS
OF
THIRD-PARTY
CREDI-
TORS.— 
‘‘(i) 
AGAINST
FEDERAL
GOVERN-
MENT.—A third-party creditor of the obligor 
shall not have any right against the Federal 
Government with respect to any payments 
due to the Federal Government under this 
subsection. 
‘‘(ii) ASSIGNMENT.—An obligor may 
assign payments made pursuant to an 
agreement to provide credit-based financial 
assistance under this subsection to 1 or 
more lenders or to a trustee on behalf of the 
lenders. 
‘‘(H) SUBORDINATION.—A secured loan 
under this subsection shall be subordinate to sen-
ior private debt issued by a lender for the eligible 
project.