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reduction research and technology deployment, the Sec-
retary may enter into cooperative research and development 
agreements under section 12 of the Stevenson-Wydler Tech-
nology Innovation Act of 1980 (15 U.S.C. 3710a). 
‘‘(k) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out this section.’’. 
SEC. 1602. CLIMATE INFRASTRUCTURE CREDIT. 
Title XVI of the Energy Policy Act of 1992 (42 (U.S.C. 
13381 et seq.) (as amended by section 1601) is amended 
by adding at the end the following: 
‘‘SEC. 1611. CLIMATE INFRASTRUCTURE CREDIT. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ADVANCED CLIMATE TECHNOLOGY OR SYS-
TEM.—The term ‘advanced climate technology or sys-
tem’ means a climate technology or system that is not 
in general usage as of the date of enactment of this 
section. 
‘‘(2) BOARD.—The term ‘Board’ means the Cli-
mate Credit Board established under subsection 
(b)(2)(A). 
‘‘(3) DIRECT LOAN.—The term ‘direct loan’ has 
the meaning given the term in section 502 of the Fed-
eral Credit Reform Act of 1990 (2 U.S.C. 661a).
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‘‘(4) ELIGIBLE
PROJECT.—The term ‘eligible 
project’ means a demonstration project that is rec-
ommended for approval under section 1610(i)(1). 
‘‘(5) ELIGIBLE PROJECT COST.—The term ‘eligi-
ble project cost’ means any amount incurred for an 
eligible project that is paid by, or on behalf of, an ob-
ligor, including the costs of— 
‘‘(A) construction activities, including— 
‘‘(i) the acquisition of capital equip-
ment; and 
‘‘(ii) construction management; 
‘‘(B) acquiring land (including any im-
provements to the land) relating to the eligible 
project; and 
‘‘(C) financing the eligible project, includ-
ing— 
‘‘(i) providing capitalized interest nec-
essary to meet market requirements; 
‘‘(ii) capital issuance expenses; and 
‘‘(iii) other carrying costs during con-
struction. 
‘‘(6) FEDERAL
FINANCIAL
ASSISTANCE.—The 
term ‘Federal financial assistance’ means any credit- 
based financial assistance, including a direct loan, 
loan guarantee, a line of credit (which serves as
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standby default coverage or standby interest cov-
erage), production incentive payment under sub-
section (g)(1)(B), or other credit-based financial as-
sistance mechanism for an eligible project that is— 
‘‘(A) authorized to be made available by the 
Secretary for an eligible project under this sec-
tion; and 
‘‘(B) provided in accordance with the Fed-
eral Credit Reform Act of 1990 (2 U.S.C. 661 et 
seq.). 
‘‘(7) INVESTMENT-GRADE
RATING.—The term 
‘investment-grade rating’ means a rating category of 
BBB minus, Baa3, or higher assigned by a rating 
agency for eligible project obligations offered into the 
capital markets. 
‘‘(8) LENDER.—The term ‘lender’ means any 
non-Federal qualified institutional buyer (as defined 
in section 230.144A(a) of title 17, Code of Federal 
Regulations (or any successor regulation), known as 
Rule 144A(a) of the Securities and Exchange Com-
mission and issued under the Securities Act of 1933 
(15 U.S.C. 77a et seq.)), including— 
‘‘(A) a qualified retirement plan (as defined 
in section 4974(c) of the Internal Revenue Code
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of 1986) that is a qualified institutional buyer; 
and 
‘‘(B) a governmental plan (as defined in 
section 414(d) of the Internal Revenue Code of 
1986) that is a qualified institutional buyer. 
‘‘(9) LOAN GUARANTEE.—The term ‘loan guar-
antee’ means any guarantee or other pledge by the 
Secretary to pay all or part of the principal of and 
interest on a loan or other debt obligation that is 
issued by an obligor and funded by a lender. 
‘‘(10) OBLIGOR.—The term ‘obligor’ means a 
person or entity (including a corporation, partner-
ship, joint venture, trust, or governmental entity, 
agency, or instrumentality) that is primarily liable 
for payment of the principal of, or interest on, a Fed-
eral credit instrument. 
‘‘(11) PROJECT OBLIGATION.—The term ‘project 
obligation’ means any note, bond, debenture, or other 
debt obligation issued by an obligor in connection 
with the financing of an eligible project, other than 
a Federal credit instrument. 
‘‘(12) RATING AGENCY.—The term ‘rating agen-
cy’ means a bond rating agency identified by the Se-
curities and Exchange Commission as a Nationally 
Recognized Statistical Rating Organization.
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‘‘(13) REGULATORY FAILURE.—The term ‘regu-
latory failure’ means a situation in which the Sec-
retary determines that, because of a breakdown in a 
regulatory process or an indefinite delay caused by a 
judicial challenge to the regulatory consideration of a 
specific eligible project, the Federal or State regu-
latory or licensing process governing the siting, con-
struction, or commissioning of an eligible project does 
not produce a definitive determination that the eligi-
ble project may go forward or stop within a predeter-
mined and prescribed time period. 
‘‘(14) SECURED LOAN.—The term ‘secured loan’ 
means a loan or other secured debt obligation issued 
by an obligor and funded by the Secretary in connec-
tion with the financing of an eligible project. 
‘‘(15) STANDBY DEFAULT COVERAGE.—The term 
‘standby default coverage’ means a pledge by the Sec-
retary to pay all or part of the debt obligation issued 
by an obligor and funded by a lender, plus all or part 
of obligor equity, if an eligible project fails to receive 
an operating license in a period of time established 
by the Secretary because of a regulatory failure or 
other specific issue identified by the Secretary. 
‘‘(16) STANDBY INTEREST COVERAGE.—The term 
‘standby interest coverage’ means a pledge by the Sec-
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retary to provide to an obligor, at a future date and 
on the occurrence of 1 or more events, a direct loan, 
the proceeds of which shall be used by the obligor to 
maintain the current status of the obligor on interest 
payments due on 1 or more loans or other project ob-
ligations issued by an obligor and funded by a lender 
for an eligible project. 
‘‘(17) SUBSIDY
AMOUNT.—The term ‘subsidy 
amount’ means the amount of budget authority suffi-
cient to cover the estimated long-term cost to the Fed-
eral Government of a Federal credit instrument 
issued by the Secretary to an eligible project, cal-
culated on a net present value basis, excluding ad-
ministrative costs and any incidental effects on gov-
ernmental receipts or outlays in accordance with the 
Federal Credit Reform Act of 1990 (2 U.S.C. 661 et 
seq.). 
‘‘(18) SUBSTANTIAL
COMPLETION.—The term 
‘substantial completion’ means that an eligible project 
has been determined by the Board to be in, or capable 
of, commercial operation. 
‘‘(b) DUTIES OF THE SECRETARY.— 
‘‘(1) IN
GENERAL.—The Secretary shall make 
available to eligible project developers and eligible 
project owners, in accordance with this section, such