†
1236
HR 6 EAS
interest coverage for an eligible project under
this subsection.
‘‘(3) REPAYMENT.—
‘‘(A) TERMS
AND
CONDITIONS.—The Sec-
retary shall establish a repayment schedule and
terms and conditions for each loan for an eligible
project under this subsection based on the pro-
jected cash flow from revenues for the eligible
project.
‘‘(B) REPAYMENT
SCHEDULE.—Scheduled
repayments of principal or interest on a loan
under this subsection shall—
‘‘(i) commence not later than 5 years
after the end of the period of availability
specified in paragraph (2)(C); and
‘‘(ii) be completed, with interest, not
later than 10 years after the end of the pe-
riod of availability.
‘‘(C) SOURCES
OF
REPAYMENT
FUNDS.—
The sources of funds for scheduled loan repay-
ments under this subsection shall include—
‘‘(i) the sale of electricity or generating
capacity;
‘‘(ii) the sale or transmission of energy;
†
1237
HR 6 EAS
‘‘(iii) revenues associated with energy
efficiency gains; or
‘‘(iv) other dedicated revenue sources,
such as carbon use.
‘‘(D) 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 project obli-
gations and secured loan, and all deposit
requirements under the terms of any trust
agreement, bond resolution, or similar
agreement securing project obligations, may
be applied annually to prepay the secured
loan 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.
‘‘(f) SECURED LOANS AND LOAN GUARANTEES.—
‘‘(1) IN GENERAL.—
‘‘(A) AGREEMENTS.—Subject to subpara-
graph (B), the Board, in consultation with the
Secretary, may enter into agreements with 1 or
†
1238
HR 6 EAS
more obligors to make secured loans for eligible
projects involving advanced climate technologies
or systems.
‘‘(B) USE OF PROCEEDS.—Subject to para-
graph (2), the proceeds of a secured loan for an
eligible project made available under this sub-
section shall be available, in conjunction with
the equity of the obligor and senior debt financ-
ing for the eligible project, to pay for eligible
project costs.
‘‘(2) TERMS AND LIMITATIONS.—
‘‘(A) IN GENERAL.—A secured loan under
this subsection with respect to an eligible project
shall be made on such terms and conditions (in-
cluding requirements for an audit) as the Board,
in consultation with the Secretary, determines
appropriate.
‘‘(B) MAXIMUM AMOUNT.—Subject to sub-
section (c)(5), the total amount of the secured
loan for an eligible project under this subsection
shall not exceed 25 percent of the reasonably an-
ticipated eligible project costs of the eligible
project.
‘‘(C) PERIOD OF AVAILABILITY.—The Board
may enter into a contract with the owner or op-
†
1239
HR 6 EAS
erator of an eligible project to provide a secured
loan during the period—
‘‘(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) COST OF COVERAGE.—Subject to sub-
section (c)(4)(E), the cost of a secured loan for
an eligible project under this subsection shall be
borne by the Secretary.
‘‘(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 Secretary.
‘‘(ii) MINIMUM
RATE.—The interest
rate on a loan resulting from a secured loan
under this subsection shall not be less than
the current average market yield on out-
standing marketable obligations of the
United States of comparable maturity, as of
the date of the execution of the loan agree-
ment.
‘‘(F) SECURITY.—The secured loan—
†
1240
HR 6 EAS
‘‘(i) shall be payable, in whole or in
part, from dedicated revenue sources gen-
erated by the eligible project;
‘‘(ii) shall include a rate covenant, cov-
erage requirement, or similar security fea-
ture supporting the project obligations; and
‘‘(iii) may have a lien on revenues de-
scribed in clause (i), subject to any lien se-
curing 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 the secured loan to 1 or more lenders
or to a trustee on behalf of the lenders.
‘‘(H) SUBORDINATION.—A secured loan for
an eligible project made under this subsection
shall be subordinate to senior private debt issued
by a lender for the eligible project.