139 
tation amount allocated under this subsection to such 
issuer. 
‘‘(2) NATIONAL
LIMITATION
ON
AMOUNT
OF 
BONDS DESIGNATED.—There is a national new clean 
renewable energy bond limitation of $800,000,000 
which shall be allocated by the Secretary as provided 
in paragraph (3), except that— 
‘‘(A) not more than 331⁄3 percent thereof 
may be allocated to qualified projects of public 
power providers, 
‘‘(B) not more than 331⁄3 percent thereof 
may be allocated to qualified projects of govern-
mental bodies, and 
‘‘(C) not more than 331⁄3 percent thereof 
may be allocated to qualified projects of coopera-
tive electric companies. 
‘‘(3) METHOD OF ALLOCATION.— 
‘‘(A) ALLOCATION
AMONG
PUBLIC
POWER 
PROVIDERS.—After the Secretary determines the 
qualified projects of public power providers 
which are appropriate for receiving an alloca-
tion of the national new clean renewable energy 
bond limitation, the Secretary shall, to the max-
imum 
extent 
practicable, 
make 
allocations 
among such projects in such manner that the
140 
amount allocated to each such project bears the 
same ratio to the cost of such project as the limi-
tation under paragraph (2)(A) bears to the cost 
of all such projects. 
‘‘(B) ALLOCATION
AMONG
GOVERNMENTAL 
BODIES
AND
COOPERATIVE
ELECTRIC
COMPA-
NIES.—The Secretary shall make allocations of 
the amount of the national new clean renewable 
energy bond limitation described in paragraphs 
(2)(B) and (2)(C) among qualified projects of 
governmental bodies and cooperative electric 
companies, respectively, in such manner as the 
Secretary determines appropriate. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFIED
RENEWABLE
ENERGY
FACIL-
ITY.—The term ‘qualified renewable energy facility’ 
means a qualified facility (as determined under sec-
tion 45(d) without regard to paragraphs (8) and (10) 
thereof and to any placed in service date) owned by 
a public power provider, a governmental body, or a 
cooperative electric company. 
‘‘(2) PUBLIC POWER PROVIDER.—The term ‘pub-
lic power provider’ means a State utility with a serv-
ice obligation, as such terms are defined in section
141 
217 of the Federal Power Act (as in effect on the date 
of the enactment of this paragraph). 
‘‘(3) GOVERNMENTAL BODY.—The term ‘govern-
mental body’ means any State or Indian tribal gov-
ernment, or any political subdivision thereof. 
‘‘(4) 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). 
‘‘(5) CLEAN RENEWABLE ENERGY BOND LEND-
ER.—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 coopera-
tive electric companies and is in existence on Feb-
ruary 1, 2002, and shall include any affiliated entity 
which is controlled by such lender. 
‘‘(6) QUALIFIED
ISSUER.—The term ‘qualified 
issuer’ means a public power provider, a cooperative 
electric company, a governmental body, a clean re-
newable energy bond lender, or a not-for-profit elec-
tric utility which has received a loan or loan guar-
antee under the Rural Electrification Act.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (1) of section 54A(d) is amended 
to read as follows:
142 
‘‘(1) QUALIFIED TAX CREDIT BOND.—The term 
‘qualified tax credit bond’ means— 
‘‘(A) a qualified forestry conservation bond, 
or 
‘‘(B) a new clean renewable energy bond, 
which is part of an issue that meets requirements of 
paragraphs (2), (3), (4), (5), and (6).’’. 
(2) Subparagraph (C) of section 54A(d)(2) is 
amended to read as follows: 
‘‘(C) QUALIFIED
PURPOSE.—For purposes 
of this paragraph, the term ‘qualified purpose’ 
means— 
‘‘(i) in the case of a qualified forestry 
conservation bond, a purpose specified in 
section 54B(e), and 
‘‘(ii) in the case of a new clean renew-
able energy bond, a purpose specified in sec-
tion 54C(a)(1).’’. 
(3) The table of sections for subpart I of part IV 
of subchapter A of chapter 1 is amended by adding 
at the end the following new item: 
‘‘Sec. 54C. Qualified clean renewable energy bonds.’’. 
(c) EXTENSION
FOR CLEAN RENEWABLE ENERGY 
BONDS.—Subsection (m) of section 54 is amended by strik-
ing ‘‘December 31, 2008’’ and inserting ‘‘December 31, 
2009’’.
143 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to obligations issued after the date of 
the enactment of this Act. 
SEC. 108. CREDIT FOR STEEL INDUSTRY FUEL. 
(a) TREATMENT AS REFINED COAL.— 
(1) IN GENERAL.—Subparagraph (A) of section 
45(c)(7) of the Internal Revenue Code of 1986 (relat-
ing to refined coal), as amended by this Act, is 
amended to read as follows: 
‘‘(A) IN GENERAL.—The term ‘refined coal’ 
means a fuel— 
‘‘(i) which— 
‘‘(I) is a liquid, gaseous, or solid 
fuel produced from coal (including lig-
nite) or high carbon fly ash, including 
such fuel used as a feedstock, 
‘‘(II) is sold by the taxpayer with 
the reasonable expectation that it will 
be used for purpose of producing 
steam, 
‘‘(III) is certified by the taxpayer 
as resulting (when used in the produc-
tion of steam) in a qualified emission 
reduction, and
144 
‘‘(IV) is produced in such a man-
ner as to result in an increase of at 
least 50 percent in the market value of 
the refined coal (excluding any in-
crease caused by materials combined or 
added during the production process), 
as compared to the value of the feed-
stock coal, or 
‘‘(ii) which is steel industry fuel.’’. 
(2) STEEL
INDUSTRY
FUEL
DEFINED.—Para-
graph (7) of section 45(c) of such Code is amended by 
adding at the end the following new subparagraph: 
‘‘(C) STEEL INDUSTRY FUEL.— 
‘‘(i) IN GENERAL.—The term ‘steel in-
dustry fuel’ means a fuel which— 
‘‘(I) is produced through a process 
of liquifying coal waste sludge and dis-
tributing it on coal, and 
‘‘(II) is used as a feedstock for the 
manufacture of coke. 
‘‘(ii) COAL WASTE SLUDGE.—The term 
‘coal waste sludge’ means the tar decanter 
sludge and related byproducts of the coking 
process, including such materials that have 
been stored in ground, in tanks and in la-
145 
goons, that have been treated as hazardous 
wastes under applicable Federal environ-
mental rules absent liquefaction and proc-
essing with coal into a feedstock for the 
manufacture of coke.’’. 
(b) CREDIT AMOUNT.— 
(1) IN GENERAL.—Paragraph (8) of section 45(e) 
of the Internal Revenue Code of 1986 (relating to re-
fined coal production facilities) is amended by adding 
at the end the following new subparagraph 
‘‘(D) SPECIAL RULE FOR STEEL INDUSTRY 
FUEL.— 
‘‘(i) IN GENERAL.—In the case of a 
taxpayer who produces steel industry fuel— 
‘‘(I) this paragraph shall be ap-
plied separately with respect to steel 
industry fuel and other refined coal, 
and 
‘‘(II) in applying this paragraph 
to steel industry fuel, the modifications 
in clause (ii) shall apply. 
‘‘(ii) MODIFICATIONS.— 
‘‘(I) CREDIT AMOUNT.—Subpara-
graph (A) shall be applied by sub-
146 
stituting ‘$2 per barrel-of-oil equiva-
lent’ for ‘$4.375 per ton’. 
‘‘(II) CREDIT PERIOD.—In lieu of 
the 10-year period referred to in 
clauses (i) and (ii)(II) of subpara-
graph (A), the credit period shall be 
the period beginning on the later of the 
date such facility was originally placed 
in service, the date the modifications 
described in clause (iii) were placed in 
service, or October 1, 2008, and ending 
on the later of December 31, 2009, or 
the date which is 1 year after the date 
such facility or the modifications de-
scribed in clause (iii) were placed in 
service. 
‘‘(III) NO PHASEOUT.—Subpara-
graph (B) shall not apply. 
‘‘(iii) MODIFICATIONS.—The modifica-
tions described in this clause are modifica-
tions to an existing facility which allow 
such facility to produce steel industry fuel. 
‘‘(iv) BARREL-OF-OIL
EQUIVALENT.— 
For purposes of this subparagraph, a bar-
rel-of-oil equivalent is the amount of steel
147 
industry fuel that has a Btu content of 
5,800,000 Btus.’’. 
(2) INFLATION ADJUSTMENT.—Paragraph (2) of 
section 45(b) of such Code is amended by inserting 
‘‘the $3 amount in subsection (e)(8)(D)(ii)(I),’’ after 
‘‘subsection (e)(8)(A),’’. 
(c) TERMINATION.—Paragraph (8) of section 45(d) of 
the Internal Revenue Code of 1986 (relating to refined coal 
production facility), as amended by this Act, is amended 
to read as follows: 
‘‘(8) REFINED COAL PRODUCTION FACILITY.—In 
the case of a facility that produces refined coal, the 
term ‘refined coal production facility’ means— 
‘‘(A) with respect to a facility producing 
steel industry fuel, any facility (or any modi-
fication to a facility) which is placed in service 
before January 1, 2010, and 
‘‘(B) with respect to any other facility pro-
ducing refined coal, any facility placed in serv-
ice after the date of the enactment of the Amer-
ican Jobs Creation Act of 2004 and before Janu-
ary 1, 2010.’’. 
(d) COORDINATION WITH CREDIT FOR PRODUCING 
FUEL FROM A NONCONVENTIONAL SOURCE.—
148 
(1) IN GENERAL.—Subparagraph (B) of section 
45(e)(9) of the Internal Revenue Code of 1986 is 
amended— 
(A) by striking ‘‘The term’’ and inserting 
the following: 
‘‘(i) IN GENERAL.—The term’’, and 
(B) by adding at the end the following new 
clause: 
‘‘(ii) EXCEPTION FOR STEEL INDUSTRY 
COAL.—In the case of a facility producing 
steel industry fuel, clause (i) shall not apply 
to so much of the refined coal produced at 
such facility as is steel industry fuel.’’. 
(2) NO DOUBLE BENEFIT.—Section 45K(g)(2) of 
such Code is amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(E) COORDINATION WITH SECTION 45.—No 
credit shall be allowed with respect to any quali-
fied fuel which is steel industry fuel (as defined 
in section 45(c)(7)) if a credit is allowed to the 
taxpayer for such fuel under section 45.’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to fuel produced and sold after Sep-
tember 30, 2008.
149 
SEC. 109. SPECIAL RULE TO IMPLEMENT FERC AND STATE 
ELECTRIC RESTRUCTURING POLICY. 
(a) EXTENSION
FOR QUALIFIED ELECTRIC UTILI-
TIES.— 
(1) IN
GENERAL.—Paragraph (3) of section 
451(i) is amended by inserting ‘‘(before January 1, 
2010, in the case of a qualified electric utility)’’ after 
‘‘January 1, 2008’’. 
(2) QUALIFIED ELECTRIC UTILITY.—Subsection 
(i) of section 451 is amended by redesignating para-
graphs (6) through (10) as paragraphs (7) through 
(11), respectively, and by inserting after paragraph 
(5) the following new paragraph: 
‘‘(6) QUALIFIED ELECTRIC UTILITY.—For pur-
poses of this subsection, the term ‘qualified electric 
utility’ means a person that, as of the date of the 
qualifying 
electric 
transmission 
transaction, 
is 
vertically integrated, in that it is both— 
‘‘(A) a transmitting utility (as defined in 
section 3(23) of the Federal Power Act (16 
U.S.C. 796(23))) with respect to the transmission 
facilities to which the election under this sub-
section applies, and 
‘‘(B) an electric utility (as defined in sec-
tion 3(22) of the Federal Power Act (16 U.S.C. 
796(22))).’’.
150 
(b) EXTENSION OF PERIOD FOR TRANSFER OF OPER-
ATIONAL CONTROL AUTHORIZED BY FERC.—Clause (ii) of 
section 451(i)(4)(B) is amended by striking ‘‘December 31, 
2007’’ and inserting ‘‘the date which is 4 years after the 
close of the taxable year in which the transaction occurs’’. 
(c) PROPERTY
LOCATED
OUTSIDE
THE
UNITED 
STATES NOT TREATED AS EXEMPT UTILITY PROPERTY.— 
Paragraph (5) of section 451(i) is amended by adding at 
the end the following new subparagraph: 
‘‘(C) EXCEPTION FOR PROPERTY LOCATED 
OUTSIDE THE UNITED STATES.—The term ‘ex-
empt utility property’ shall not include any 
property which is located outside the United 
States.’’. 
(d) EFFECTIVE DATES.— 
(1) EXTENSION.—The amendments made by sub-
section (a) shall apply to transactions after December 
31, 2007. 
(2) TRANSFERS
OF
OPERATIONAL
CONTROL.— 
The amendment made by subsection (b) shall take ef-
fect as if included in section 909 of the American Jobs 
Creation Act of 2004. 
(3) EXCEPTION FOR PROPERTY LOCATED OUT-
SIDE THE UNITED STATES.—The amendment made by
151 
subsection (c) shall apply to transactions after the 
date of the enactment of this Act. 
Subtitle B—Carbon Mitigation and 
Coal Provisions 
SEC. 111. EXPANSION AND MODIFICATION OF ADVANCED 
COAL PROJECT INVESTMENT CREDIT. 
(a) MODIFICATION
OF
CREDIT
AMOUNT.—Section 
48A(a) is amended by striking ‘‘and’’ at the end of para-
graph (1), by striking the period at the end of paragraph 
(2) and inserting ‘‘, and’’, and by adding at the end the 
following new paragraph: 
‘‘(3) 30 percent of the qualified investment for 
such taxable year in the case of projects described in 
clause (iii) of subsection (d)(3)(B).’’. 
(b) EXPANSION
OF AGGREGATE CREDITS.—Section 
48A(d)(3)(A) is amended by striking ‘‘$1,300,000,000’’ and 
inserting ‘‘$2,550,000,000’’. 
(c) AUTHORIZATION OF ADDITIONAL PROJECTS.— 
(1) IN GENERAL.—Subparagraph (B) of section 
48A(d)(3) is amended to read as follows: 
‘‘(B) PARTICULAR PROJECTS.—Of the dollar 
amount in subparagraph (A), the Secretary is 
authorized to certify— 
‘‘(i) $800,000,000 for integrated gasifi-
cation combined cycle projects the applica-
152 
tion for which is submitted during the pe-
riod described in paragraph (2)(A)(i), 
‘‘(ii) $500,000,000 for projects which 
use other advanced coal-based generation 
technologies the application for which is 
submitted during the period described in 
paragraph (2)(A)(i), and 
‘‘(iii) $1,250,000,000 for advanced 
coal-based generation technology projects the 
application for which is submitted during 
the 
period 
described 
in 
paragraph 
(2)(A)(ii).’’. 
(2) APPLICATION
PERIOD
FOR
ADDITIONAL 
PROJECTS.—Subparagraph (A) of section 48A(d)(2) 
is amended to read as follows: 
‘‘(A) APPLICATION
PERIOD.—Each appli-
cant for certification under this paragraph shall 
submit an application meeting the requirements 
of subparagraph (B). An applicant may only 
submit an application— 
‘‘(i) for an allocation from the dollar 
amount specified in clause (i) or (ii) of 
paragraph (3)(B) during the 3-year period 
beginning on the date the Secretary estab-
153 
lishes the program under paragraph (1), 
and 
‘‘(ii) for an allocation from the dollar 
amount specified in paragraph (3)(B)(iii) 
during the 3-year period beginning at the 
earlier of the termination of the period de-
scribed in clause (i) or the date prescribed 
by the Secretary.’’. 
(3) CAPTURE AND SEQUESTRATION OF CARBON 
DIOXIDE EMISSIONS REQUIREMENT.— 
(A) IN
GENERAL.—Section 48A(e)(1) is 
amended by striking ‘‘and’’ at the end of sub-
paragraph (E), by striking the period at the end 
of subparagraph (F) and inserting ‘‘; and’’, and 
by adding at the end the following new subpara-
graph: 
‘‘(G) in the case of any project the applica-
tion for which is submitted during the period de-
scribed in subsection (d)(2)(A)(ii), the project in-
cludes equipment which separates and sequesters 
at least 65 percent (70 percent in the case of an 
application for reallocated credits under sub-
section (d)(4)) of such project’s total carbon diox-
ide emissions.’’.
154 
(B) HIGHEST
PRIORITY
FOR
PROJECTS 
WHICH
SEQUESTER
CARBON
DIOXIDE
EMIS-
SIONS.—Section 48A(e)(3) is amended by strik-
ing ‘‘and’’ at the end of subparagraph (A)(iii), 
by striking the period at the end of subpara-
graph (B)(iii) and inserting ‘‘, and’’, and by 
adding at the end the following new subpara-
graph: 
‘‘(C) give highest priority to projects with 
the greatest separation and sequestration per-
centage of total carbon dioxide emissions.’’. 
(C) RECAPTURE OF CREDIT FOR FAILURE 
TO
SEQUESTER.—Section 48A is amended by 
adding at the end the following new subsection: 
‘‘(i) RECAPTURE OF CREDIT FOR FAILURE TO SE-
QUESTER.—The Secretary shall provide for recapturing the 
benefit of any credit allowable under subsection (a) with 
respect to any project which fails to attain or maintain 
the separation and sequestration requirements of subsection 
(e)(1)(G).’’. 
(4) ADDITIONAL PRIORITY FOR RESEARCH PART-
NERSHIPS.—Section 48A(e)(3)(B), as amended by 
paragraph (3)(B), is amended— 
(A) by striking ‘‘and’’ at the end of clause 
(ii),
155 
(B) by redesignating clause (iii) as clause 
(iv), and 
(C) by inserting after clause (ii) the fol-
lowing new clause: 
‘‘(iii) applicant participants who have 
a research partnership with an eligible edu-
cational institution (as defined in section 
529(e)(5)), and’’. 
(5) CLERICAL AMENDMENT.—Section 48A(e)(3) 
is amended by striking ‘‘INTEGRATED GASIFICATION 
COMBINED
CYCLE’’ in the heading and inserting 
‘‘CERTAIN’’. 
(d) DISCLOSURE OF ALLOCATIONS.—Section 48A(d) is 
amended by adding at the end the following new paragraph: 
‘‘(5) DISCLOSURE OF ALLOCATIONS.—The Sec-
retary shall, upon making a certification under this 
subsection or section 48B(d), publicly disclose the 
identity of the applicant and the amount of the credit 
certified with respect to such applicant.’’. 
(e) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as otherwise provided 
in this subsection, the amendments made by this sec-
tion shall apply to credits the application for which 
is submitted during the period described in section 
48A(d)(2)(A)(ii) of the Internal Revenue Code of 1986
156 
and which are allocated or reallocated after the date 
of the enactment of this Act. 
(2) DISCLOSURE OF ALLOCATIONS.—The amend-
ment made by subsection (d) shall apply to certifi-
cations made after the date of the enactment of this 
Act. 
(3) CLERICAL
AMENDMENT.—The amendment 
made by subsection (c)(5) shall take effect as if in-
cluded in the amendment made by section 1307(b) of 
the Energy Tax Incentives Act of 2005. 
SEC. 112. EXPANSION AND MODIFICATION OF COAL GASIFI-
CATION INVESTMENT CREDIT. 
(a) MODIFICATION
OF
CREDIT
AMOUNT.—Section 
48B(a) is amended by inserting ‘‘(30 percent in the case 
of credits allocated under subsection (d)(1)(B))’’ after ‘‘20 
percent’’. 
(b) EXPANSION
OF AGGREGATE CREDITS.—Section 
48B(d)(1) is amended by striking ‘‘shall not exceed 
$350,000,000’’ and all that follows and inserting ‘‘shall not 
exceed— 
‘‘(A) $350,000,000, plus 
‘‘(B) $250,000,000 for qualifying gasifi-
cation projects that include equipment which 
separates and sequesters at least 75 percent of 
such project’s total carbon dioxide emissions.’’.
157 
(c) RECAPTURE OF CREDIT FOR FAILURE TO SEQUES-
TER.—Section 48B is amended by adding at the end the 
following new subsection: 
‘‘(f) RECAPTURE OF CREDIT FOR FAILURE TO SE-
QUESTER.—The Secretary shall provide for recapturing the 
benefit of any credit allowable under subsection (a) with 
respect to any project which fails to attain or maintain 
the separation and sequestration requirements for such 
project under subsection (d)(1).’’. 
(d) SELECTION
PRIORITIES.—Section 48B(d) is 
amended by adding at the end the following new paragraph: 
‘‘(4) SELECTION
PRIORITIES.—In determining 
which qualifying gasification projects to certify under 
this section, the Secretary shall— 
‘‘(A) give highest priority to projects with 
the greatest separation and sequestration per-
centage of total carbon dioxide emissions, and 
‘‘(B) give high priority to applicant par-
ticipants who have a research partnership with 
an eligible educational institution (as defined in 
section 529(e)(5)).’’. 
(e) ELIGIBLE PROJECTS INCLUDE TRANSPORTATION 
GRADE LIQUID FUELS.—Section 48B(c)(7) (defining eligi-
ble entity) is amended by striking ‘‘and’’ at the end of sub-
paragraph (F), by striking the period at the end of subpara-
158 
graph (G) and inserting ‘‘, and’’, and by adding at the end 
the following new subparagraph: 
‘‘(H) transportation grade liquid fuels.’’. 
(f) EFFECTIVE DATE.—The amendments made by this 
section shall apply to credits described in section 
48B(d)(1)(B) of the Internal Revenue Code of 1986 which 
are allocated or reallocated after the date of the enactment 
of this Act. 
SEC. 113. TEMPORARY INCREASE IN COAL EXCISE TAX; 
FUNDING OF BLACK LUNG DISABILITY TRUST 
FUND. 
(a) EXTENSION
OF TEMPORARY INCREASE.—Para-
graph (2) of section 4121(e) is amended— 
(1) by striking ‘‘January 1, 2014’’ in subpara-
graph (A) and inserting ‘‘December 31, 2018’’, and 
(2) by striking ‘‘January 1 after 1981’’ in sub-
paragraph (B) and inserting ‘‘December 31 after 
2007’’. 
(b) RESTRUCTURING OF TRUST FUND DEBT.— 
(1) DEFINITIONS.—For purposes of this sub-
section— 
(A) MARKET VALUE OF THE OUTSTANDING 
REPAYABLE
ADVANCES, PLUS
ACCRUED
INTER-
EST.—The term ‘‘market value of the out-
standing repayable advances, plus accrued inter-
159 
est’’ means the present value (determined by the 
Secretary of the Treasury as of the refinancing 
date and using the Treasury rate as the discount 
rate) of the stream of principal and interest pay-
ments derived assuming that each repayable ad-
vance that is outstanding on the refinancing 
date is due on the 30th anniversary of the end 
of the fiscal year in which the advance was made 
to the Trust Fund, and that all such principal 
and interest payments are made on September 
30 of the applicable fiscal year. 
(B) REFINANCING DATE.—The term ‘‘refi-
nancing date’’ means the date occurring 2 days 
after the enactment of this Act. 
(C) REPAYABLE ADVANCE.—The term ‘‘re-
payable advance’’ means an amount that has 
been appropriated to the Trust Fund in order to 
make benefit payments and other expenditures 
that are authorized under section 9501 of the In-
ternal Revenue Code of 1986 and are required to 
be repaid when the Secretary of the Treasury de-
termines that monies are available in the Trust 
Fund for such purpose. 
(D) TREASURY RATE.—The term ‘‘Treasury 
rate’’ means a rate determined by the Secretary
160 
of the Treasury, taking into consideration cur-
rent market yields on outstanding marketable ob-
ligations of the United States of comparable ma-
turities. 
(E) TREASURY
1-YEAR
RATE.—The term 
‘‘Treasury 1-year rate’’ means a rate determined 
by the Secretary of the Treasury, taking into 
consideration current market yields on out-
standing marketable obligations of the United 
States with remaining periods to maturity of 
approximately 1 year, to have been in effect as 
of the close of business 1 business day prior to 
the date on which the Trust Fund issues obliga-
tions to the Secretary of the Treasury under 
paragraph (2)(B). 
(2) REFINANCING
OF
OUTSTANDING
PRINCIPAL 
OF REPAYABLE ADVANCES AND UNPAID INTEREST ON 
SUCH ADVANCES.— 
(A) TRANSFER TO GENERAL FUND.—On the 
refinancing date, the Trust Fund shall repay the 
market value of the outstanding repayable ad-
vances, plus accrued interest, by transferring 
into the general fund of the Treasury the fol-
lowing sums:
161 
(i) The proceeds from obligations that 
the Trust Fund shall issue to the Secretary 
of the Treasury in such amounts as the Sec-
retaries of Labor and the Treasury shall de-
termine and bearing interest at the Treas-
ury rate, and that shall be in such forms 
and denominations and be subject to such 
other terms and conditions, including matu-
rity, as the Secretary of the Treasury shall 
prescribe. 
(ii) All, or that portion, of the appro-
priation made to the Trust Fund pursuant 
to paragraph (3) that is needed to cover the 
difference defined in that paragraph. 
(B) REPAYMENT OF OBLIGATIONS.—In the 
event that the Trust Fund is unable to repay the 
obligations that it has issued to the Secretary of 
the Treasury under subparagraph (A)(i) and 
this subparagraph, or is unable to make benefit 
payments and other authorized expenditures, the 
Trust Fund shall issue obligations to the Sec-
retary of the Treasury in such amounts as may 
be necessary to make such repayments, pay-
ments, and expenditures, with a maturity of 1 
year, and bearing interest at the Treasury 1-year
162 
rate. These obligations shall be in such forms and 
denominations and be subject to such other terms 
and conditions as the Secretary of the Treasury 
shall prescribe. 
(C) AUTHORITY TO ISSUE OBLIGATIONS.— 
The Trust Fund is authorized to issue obliga-
tions to the Secretary of the Treasury under sub-
paragraphs (A)(i) and (B). The Secretary of the 
Treasury is authorized to purchase such obliga-
tions of the Trust Fund. For the purposes of 
making such purchases, the Secretary of the 
Treasury may use as a public debt transaction 
the proceeds from the sale of any securities issued 
under chapter 31 of title 31, United States Code, 
and the purposes for which securities may be 
issued under such chapter are extended to in-
clude any purchase of such Trust Fund obliga-
tions under this subparagraph. 
(3) ONE-TIME APPROPRIATION.—There is hereby 
appropriated to the Trust Fund an amount sufficient 
to pay to the general fund of the Treasury the dif-
ference between— 
(A) the market value of the outstanding re-
payable advances, plus accrued interest; and