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‘‘(I) NONRECOURSE
STATUS.—A secured
loan for an eligible project under this subsection
shall be non-recourse to the obligor in the event
of bankruptcy, insolvency, or liquidation of the
eligible project.
‘‘(J) FEES.—The Board may establish fees
at a level sufficient to cover all or a portion of
the costs to the Federal Government of making
secured loans for an eligible project under this
subsection.
‘‘(3) REPAYMENT.—
‘‘(A) SCHEDULE AND TERMS.—The Board
shall establish a repayment schedule and terms
and conditions for each secured loan for an eligi-
ble project under this subsection based on the
projected cash flow from revenues for the eligible
project.
‘‘(B) REPAYMENT
SCHEDULE.—Scheduled
repayments on a secured loan for an eligible
project under this subsection shall—
‘‘(i) commence not later than 5 years
after the scheduled start of commercial oper-
ations of the eligible project; and
‘‘(ii) be completed, with interest, not
later than 35 years after the scheduled date
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of the start of commercial operations of the
eligible project.
‘‘(C) SOURCES
OF
REPAYMENT
FUNDS.—
The sources of funds for scheduled loan repay-
ments under this subsection shall include—
‘‘(i) the sale of carbon or carbon com-
pounds;
‘‘(ii) the sale of electricity or gener-
ating capacity;
‘‘(iii) the sale of sequestration services;
‘‘(iv) the sale or transmission of en-
ergy;
‘‘(v) revenues associated with energy ef-
ficiency gains; or
‘‘(vi) other dedicated revenue sources.
‘‘(D) DEFERRED PAYMENTS.—
‘‘(i) AUTHORIZATION.—If, at any time
during the 10-year period beginning on the
date of the scheduled start of commercial
operation of an eligible project, the eligible
project is unable to generate sufficient reve-
nues to pay the scheduled loan repayments
of principal or interest on the secured loan,
the Secretary may, subject to clause (iii),
allow the obligor to add unpaid principal
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or interest to the outstanding balance of the
secured loan.
‘‘(ii) INTEREST.—Any payment de-
ferred under clause (i) shall—
‘‘(I) continue to accrue interest in
accordance with paragraph (2)(E)
until fully repaid; and
‘‘(II) be scheduled to be amortized
over the number of years remaining in
the term of the loan in accordance with
subparagraph (B).
‘‘(iii) CRITERIA.—
‘‘(I) IN GENERAL.—Any payment
deferral under clause (i) shall be con-
tingent on the eligible project meeting
criteria established by the Secretary.
‘‘(II) REPAYMENT STANDARDS.—
The criteria established under sub-
clause (I) shall include standards for
reasonable assurance of repayment.
‘‘(E) 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-
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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.
‘‘(4) SALE OF SECURED LOANS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), as soon as practicable after substan-
tial completion of an eligible project and after
notifying the obligor, the Board may sell to an-
other entity or reoffer into the capital markets a
secured loan for the eligible project if the Board
determines that the sale or reoffering can be
made on favorable terms.
‘‘(B) CONSENT OF OBLIGOR.—In making a
sale or reoffering under subparagraph (A), the
Board may not change the original terms and
conditions of the secured loan without the writ-
ten consent of the obligor.
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‘‘(5) LOAN GUARANTEES.—
‘‘(A) IN GENERAL.—The Board may pro-
vide a loan guarantee to a lender, in lieu of
making a secured loan, under this subsection if
the Board determines that the budgetary cost of
the loan guarantee is substantially the same as
that of a secured loan.
‘‘(B) TERMS.—
‘‘(i) IN GENERAL.—Except as provided
in clause (ii), the terms of a guaranteed
loan shall be consistent with the terms for
a secured loan under this subsection.
‘‘(ii) INTEREST RATE; PREPAYMENT.—
The interest rate on the guaranteed loan
and any prepayment features shall be estab-
lished by negotiations between the obligor
and the lender, with the consent of the
Board.
‘‘(g) PRODUCTION INCENTIVE PAYMENTS.—
‘‘(1) SECURED LOAN.—
‘‘(A) IN
GENERAL.—The Secretary may
enter into an agreement with 1 or more obligors
to make a secured loan for an eligible project se-
lected under subsection (c)(4) that employs 1 or
more advanced climate technologies or systems.