I
107TH CONGRESS
1ST SESSION
H. R. 2233
To assist municipalities and local communities to explore and determine
options for the alternative provision of electricity and to create new
public power systems, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 19, 2001
Mr. NADLER (for himself and Mr. HINCHEY) introduced the following bill;
which was referred to the Committee on Energy and Commerce, and in
addition to the Committee on Ways and Means, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
A BILL
To assist municipalities and local communities to explore
and determine options for the alternative provision of
electricity and to create new public power systems, and
for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. PURPOSE.
The purpose of this Act is to assist municipalities and
local communities to explore and determine options for the
alternative provision of electricity and, at their discretion,
to create or expand public power systems.
SEC. 2. COMMUNITY POWER INVESTMENT REVOLVING
LOAN FUND.
(a) REVOLVING LOAN FUND.—There is established
in the Treasury of the United States a revolving loan fund
to be known as the ‘‘Community Power Investment Re-
volving Loan Fund’’ consisting of such amounts as may
be appropriated or credited to such Fund as provided in
this section.
(b) EXPENDITURES FROM LOAN FUNDS.—
(1) IN
GENERAL.—The Secretary of Energy,
under such rules and regulations as the Secretary
may prescribe, may make loans from the Community
Power Investment Revolving Loan Fund, without
further appropriation, to a State or local govern-
ment, including any municipality.
(2) PURPOSE.—Loans provided under this sec-
tion shall be used only for any of the following:
(A) Feasibility studies to investigate op-
tions for the creation or expansion of public
power systems.
(B) Community development assistance
programs to stem rising energy costs, including
low-income customer payment programs.
(C) Energy efficiency programs and other
local conservation measures.
(D) Incentives for new renewable energy
resources, including research and development
programs, purchases from alternative energy
providers, and construction of new generation
facilities.
(E) Increased and rapid deployment of dis-
tributed energy generation resources, including
the following:
(i) Microturbines.
(ii) Fuel cells.
(iii) Combined heat and power sys-
tems.
(iv) Advanced internal combustion en-
gine generators.
(v) Advanced natural gas turbines.
(vi) Energy storage devices.
(vii) Distributed generation research
and development for local communities, in-
cluding 
interconnection 
standards 
and
equipment, and dispatch and control serv-
ices that preserve appropriate local control
authority to protect distribution system
safety, reliability, and new and backup
power quality.
(F) Purchase of existing electricity genera-
tion and transmission systems of private power
companies.
(G) Construction of new electricity genera-
tion and transmission facilities.
(H) Education and public information pro-
grams.
(3) RESTRICTIONS.—No loan may be made
under this section to any entity that is financially
distressed, delinquent on any Federal debt, or in
current bankruptcy proceedings. No loan shall be
made under this section unless the Secretary deter-
mines that—
(A) there is reasonable assurance of repay-
ment of the loan; and
(B) the amount of the loan, together with
other funds provided by or available to the re-
cipient, is adequate to assure completion of the
facility or facilities for which the loan is made.
(c) LOAN REPAYMENTS.—
(1) LENGTH OF REPAYMENT.—
(A) IN GENERAL.—Before making a loan
under this section, the Secretary shall deter-
mine the period of time within which a State
must repay such loan.
(B) LIMITATION.—Except as provided in
subparagraph (C), the Secretary shall in no
case allow repayment of such loan—
(i) to begin later than the date that is
one year after the date on which the loan
is made; and
(ii) to be completed later than the
date that is 30 years after the date on
which the loan is made.
(C) MORATORIUM.—The Secretary may
grant a temporary moratorium on the repay-
ment of a loan provided under this section if,
in the determination of the Secretary, continued
repayment of such loan would cause a financial
hardship on the State that received the loan.
(2) INTEREST.—The Secretary may not impose
or collect interest on a loan provided under this sec-
tion in excess of one percent above the current U.S.
Treasury rate for obligations of similar maturity.
(3) CREDIT
TO
LOAN
FUND.—Repayment of
amounts loaned under this section shall be credited
to the Community Power Investment Revolving
Loan Fund and shall be available for the purposes
for which the fund is established.
(4) FINANCE
CHARGES.—The Secretary may
assess finance charges of 5 percent on loans under
this section that are repaid within 5 to 10 years, 3
percent on such loans that are repaid within 3 to 5
years, and one percent for loans repaid within 3
years.
(d) ADMINISTRATION
EXPENSES.—The Secretary
may defray the expenses of administering the loans pro-
vided under this section.
(e) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to the Community
Power Investment Revolving Loan Fund $5,000,000,000
for each of the fiscal years 2002 through 2007.
SEC. 3. STRANDED COSTS.
Section 206 of the Federal Power Act is amended by
adding the following new subsection after subsection (d):
‘‘(e) STRANDED COST RECOVERY.—The Commission
shall prohibit any public utility or State regulatory author-
ity from imposing, after the enactment of this subsection,
any fee or charge (including any exit fee) on any electric
consumer or State or municipality (or entity established
by a State or municipality) for the purpose of recovering
any wholesale stranded costs of such public utility that
may occur when retail electric consumers cease to be
served by that public utility by reason of the provision of
electric service to such consumers by a State or a political
subdivision of a State (or by any entity established by such
State or political subdivision). As promptly as practical
after the enactment of this subsection, the Commission
shall amend such rules and orders of the Commission as
may be necessary to carry out this subsection.’’.
SEC. 4. REPEAL OF RESTRICTION ON USE OF TAX-EXEMPT
BONDS TO ACQUIRE OUTPUT FACILITIES.
(a) IN GENERAL.—Section 141 of the Internal Rev-
enue Code of 1986 (relating to private activity bond; quali-
fied bond) is amended by striking subsection (d) and by
redesignating subsection (e) and subsection (d).
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to obligations issued after the
date of the enactment of this Act.
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