H. R. 6—401
‘‘(e) MATURITY LIMITATIONS.— 
‘‘(1) DURATION OF TERM.—A bond shall not be treated as 
a clean renewable energy bond if the maturity of such bond 
exceeds the maximum term determined by the Secretary under 
paragraph (2) with respect to such bond. 
‘‘(2) MAXIMUM TERM.—During each calendar month, the 
Secretary shall determine the maximum term permitted under 
this paragraph for bonds issued during the following calendar 
month. Such maximum term shall be the term which the Sec-
retary estimates will result in the present value of the obliga-
tion to repay the principal on the bond being equal to 50 
percent of the face amount of such bond. Such present value 
shall be determined without regard to the requirements of 
subsection (l)(6) and using as a discount rate the average 
annual interest rate of tax-exempt obligations having a term 
of 10 years or more which are issued during the month. If 
the term as so determined is not a multiple of a whole year, 
such term shall be rounded to the next highest whole year. 
‘‘(f) LIMITATION ON AMOUNT OF BONDS DESIGNATED.— 
‘‘(1) NATIONAL
LIMITATION.—There is a national clean 
renewable energy bond limitation of $800,000,000. 
‘‘(2) ALLOCATION BY SECRETARY.—The Secretary shall allo-
cate the amount described in paragraph (1) among qualified 
projects in such manner as the Secretary determines appro-
priate, except that the Secretary may not allocate more than 
$500,000,000 of the national clean renewable energy bond 
limitation to finance qualified projects of qualified borrowers 
which are governmental bodies. 
‘‘(g) CREDIT
INCLUDED
IN
GROSS
INCOME.—Gross income 
includes the amount of the credit allowed to the taxpayer under 
this section (determined without regard to subsection (c)) and the 
amount so included shall be treated as interest income. 
‘‘(h) SPECIAL RULES RELATING TO EXPENDITURES.— 
‘‘(1) IN GENERAL.—An issue shall be treated as meeting 
the requirements of this subsection if, as of the date of issuance, 
the qualified issuer reasonably expects— 
‘‘(A) at least 95 percent of the proceeds of such issue 
are to be spent for one or more qualified projects within 
the 5-year period beginning on the date of issuance of 
the clean energy bond, 
‘‘(B) a binding commitment with a third party to spend 
at least 10 percent of the proceeds of such issue will be 
incurred within the 6-month period beginning on the date 
of issuance of the clean energy bond or, in the case of 
a clean energy bond the proceeds of which are to be loaned 
to two or more qualified borrowers, such binding commit-
ment will be incurred within the 6-month period beginning 
on the date of the loan of such proceeds to a qualified 
borrower, and 
‘‘(C) such projects will be completed with due diligence 
and the proceeds of such issue will be spent with due 
diligence. 
‘‘(2) EXTENSION OF PERIOD.—Upon submission of a request 
prior to the expiration of the period described in paragraph 
(1)(A), the Secretary may extend such period if the qualified
H. R. 6—402
issuer establishes that the failure to satisfy the 5-year require-
ment is due to reasonable cause and the related projects will 
continue to proceed with due diligence. 
‘‘(3) FAILURE TO SPEND REQUIRED AMOUNT OF BOND PRO-
CEEDS WITHIN 5 YEARS.—To the extent that less than 95 percent 
of the proceeds of such issue are expended by the close of 
the 5-year period beginning on the date of issuance (or if 
an extension has been obtained under paragraph (2), by the 
close of the extended period), the qualified issuer shall redeem 
all of the nonqualified bonds within 90 days after the end 
of such period. For purposes of this paragraph, the amount 
of the nonqualified bonds required to be redeemed shall be 
determined in the same manner as under section 142. 
‘‘(i) SPECIAL RULES RELATING TO ARBITRAGE.—A bond which 
is part of an issue shall not be treated as a clean renewable 
energy bond unless, with respect to the issue of which the bond 
is a part, the qualified issuer satisfies the arbitrage requirements 
of section 148 with respect to proceeds of the issue. 
‘‘(j) COOPERATIVE ELECTRIC COMPANY; QUALIFIED ENERGY TAX 
CREDIT BOND LENDER; GOVERNMENTAL BODY; QUALIFIED BOR-
ROWER.—For purposes of this section— 
‘‘(1) COOPERATIVE ELECTRIC COMPANY.—The term ‘coopera-
tive electric company’ means a mutual or cooperative electric 
company described in section 501(c)(12) or section 1381(a)(2)(C), 
or a not-for-profit electric utility which has received a loan 
or loan guarantee under the Rural Electrification Act. 
‘‘(2) CLEAN RENEWABLE ENERGY BOND LENDER.—The term 
‘clean renewable energy bond lender’ means a lender which 
is a cooperative which is owned by, or has outstanding loans 
to, 100 or more cooperative electric companies and is in exist-
ence on February 1, 2002, and shall include any affiliated 
entity which is controlled by such lender. 
‘‘(3) GOVERNMENTAL BODY.—The term ‘governmental body’ 
means any State, territory, possession of the United States, 
the District of Columbia, Indian tribal government, and any 
political subdivision thereof. 
‘‘(4) 
QUALIFIED
ISSUER.—The 
term 
‘qualified 
issuer’ 
means— 
‘‘(A) a clean renewable energy bond lender, 
‘‘(B) a cooperative electric company, or 
‘‘(C) a governmental body. 
‘‘(5) QUALIFIED BORROWER.—The term ‘qualified borrower’ 
means— 
‘‘(A) a mutual or cooperative electric company described 
in section 501(c)(12) or 1381(a)(2)(C), or 
‘‘(B) a governmental body. 
‘‘(k) SPECIAL RULES RELATING TO POOL BONDS.—No portion 
of a pooled financing bond may be allocable to any loan unless 
the borrower has entered into a written loan commitment for such 
portion prior to the issue date of such issue. 
‘‘(l) OTHER DEFINITIONS
AND SPECIAL RULES.—For purposes 
of this section— 
‘‘(1) BOND.—The term ‘bond’ includes any obligation. 
‘‘(2) POOLED FINANCING BOND.—The term ‘pooled financing 
bond’ shall have the meaning given such term by section 
149(f)(4)(A).