111 
‘‘(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 obligation 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 using 
as a discount rate the average annual interest rate 
of tax 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. 
‘‘(3) RATABLE PRINCIPAL AMORTIZATION RE-
QUIRED.—A bond shall not be treated as a clean en-
ergy coal bond unless it is part of an issue which 
provides for an equal amount of principal to be paid 
by the qualified issuer during each calendar year 
that the issue is outstanding. 
‘‘(f) LIMITATION
ON AMOUNT
OF BONDS DES-
IGNATED.— 
VerDate Aug 31 2005 
02:32 May 13, 2006
Jkt 049196
PO 00000
Frm 00111
Fmt 6652
Sfmt 6201
E:\BILLS\H5331.IH
H5331
ccoleman on PROD1PC71 with BILLS
112 
‘‘(1) NATIONAL LIMITATION.—There is a na-
tional 
clean 
energy 
coal 
bond 
limitation 
of 
$1,000,000,000. 
‘‘(2) ALLOCATION
BY
SECRETARY.—The Sec-
retary shall allocate the amount described in para-
graph (1) among qualified projects in such manner 
as the Secretary determines appropriate. 
‘‘(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 treat-
ed as interest income. 
‘‘(h) SPECIAL
RULES
RELATING
TO
EXPENDI-
TURES.— 
‘‘(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 
from the sale of the issue are to be spent for 
1 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 pro-
VerDate Aug 31 2005 
02:32 May 13, 2006
Jkt 049196
PO 00000
Frm 00112
Fmt 6652
Sfmt 6201
E:\BILLS\H5331.IH
H5331
ccoleman on PROD1PC71 with BILLS
113 
ceeds from the sale of the 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 2 or more qualified 
borrowers, such binding commitment will be in-
curred within the 6-month period beginning on 
the date of the loan of such proceeds to a quali-
fied borrower, and 
‘‘(C) such projects will be completed with 
due diligence and the proceeds from the sale of 
the issue will be spent with due diligence. 
‘‘(2) EXTENSION
OF
PERIOD.—Upon submis-
sion of a request prior to the expiration of the period 
described in paragraph (1)(A), the Secretary may 
extend such period if the qualified issuer establishes 
that the failure to satisfy the 5-year requirement is 
due to reasonable cause and the related projects will 
continue to proceed with due diligence. 
‘‘(3) FAILURE TO SPEND REQUIRED AMOUNT 
OF BOND PROCEEDS WITHIN 5 YEARS.—To the ex-
tent 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 
VerDate Aug 31 2005 
02:32 May 13, 2006
Jkt 049196
PO 00000
Frm 00113
Fmt 6652
Sfmt 6201
E:\BILLS\H5331.IH
H5331
ccoleman on PROD1PC71 with BILLS
114 
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 energy coal 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 BORROWER.—For purposes of this sec-
tion— 
‘‘(1) COOPERATIVE ELECTRIC COMPANY.—The 
term ‘cooperative 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
ENERGY
BOND
LENDER.—The 
term ‘clean energy bond lender’ means a lender 
which is a cooperative which is owned by, or has out-
VerDate Aug 31 2005 
02:32 May 13, 2006
Jkt 049196
PO 00000
Frm 00114
Fmt 6652
Sfmt 6201
E:\BILLS\H5331.IH
H5331
ccoleman on PROD1PC71 with BILLS
115 
standing loans to, 100 or more cooperative electric 
companies and is in existence on February 1, 2002, 
and shall include any affiliated entity which is con-
trolled by such lender. 
‘‘(3) GOVERNMENTAL BODY.—The term ‘gov-
ernmental body’ means any State, territory, posses-
sion of the United States, the District of Columbia, 
Indian tribal government, and any political subdivi-
sion thereof. 
‘‘(4) QUALIFIED ISSUER.—The term ‘qualified 
issuer’ means— 
‘‘(A) a clean energy bond lender, 
‘‘(B) a cooperative electric company, 
‘‘(C) a governmental body, or 
‘‘(D) the Tennessee Valley Authority. 
‘‘(5) QUALIFIED BORROWER.—The term ‘quali-
fied borrower’ means— 
‘‘(A) a mutual or cooperative electric com-
pany 
described 
in 
section 
501(c)(12) 
or 
1381(a)(2)(C), 
‘‘(B) a governmental body, or 
‘‘(C) the Tennessee Valley Authority. 
‘‘(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 
VerDate Aug 31 2005 
02:32 May 13, 2006
Jkt 049196
PO 00000
Frm 00115
Fmt 6652
Sfmt 6201
E:\BILLS\H5331.IH
H5331
ccoleman on PROD1PC71 with BILLS