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ordination of climate change science research and re-
lated activities, including—
‘‘(A) assessments of the state of knowledge
on climate change; and
‘‘(B) carrying out supporting studies, plan-
ning, and analyses of the science of climate
change.
‘‘(2) 
CLIMATE
CHANGE
TECHNOLOGY
PRO-
GRAM.—Not later than 180 days after the date on
which the strategy is submitted under subsection
(b)(1), the Secretary, in cooperation with the Com-
mittee, shall permanently establish within the Depart-
ment of Energy, the Climate Change Technology Pro-
gram to assist the Committee in the interagency co-
ordination of climate change technology research, de-
velopment, demonstration, and deployment to reduce
greenhouse gas intensity.
‘‘(e) TECHNOLOGY INVENTORY.—
‘‘(1) IN GENERAL.—The Secretary shall conduct
an inventory and evaluation of greenhouse gas inten-
sity reducing technologies that have been developed, or
are under development, by the National Laboratories,
other Federal research facilities, universities, and the
private sector to determine which technologies are
suitable for commercialization and deployment.
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‘‘(2) REPORT.—Not later than 180 days after the
completion of the inventory under paragraph (1), the
Secretary shall submit to the Secretary of Commerce
and Congress a report that includes the results of the
completed inventory and any recommendations of the
Secretary.
‘‘(3) USE.—The Secretary, in consultation with
the Secretary of Commerce, shall use the results of the
inventory as guidance in the commercialization and
deployment of greenhouse gas intensity reducing tech-
nologies.
‘‘(4) 
UPDATED
INVENTORY.—The 
Secretary
shall—
‘‘(A) periodically update the inventory
under paragraph (1); and
‘‘(B) make the updated inventory available
to the public.
‘‘(f) 
CLIMATE
CHANGE
TECHNOLOGY
WORKING
GROUP.—
‘‘(1) IN GENERAL.—The Secretary, in consulta-
tion with the Committee, shall establish within the
Department of Energy a Climate Change Technology
Working Group to identify statutory, regulatory, eco-
nomic, and other barriers to the commercialization
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and deployment of greenhouse gas intensity reducing
technologies and practices in the United States.
‘‘(2) COMPOSITION.—The Working Group shall
be composed of the following members, to be appointed
by the Secretary, in consultation with the Committee:
‘‘(A) 1 representative shall be appointed
from each National Laboratory.
‘‘(B) 3 members shall be representatives of
energy-producing trade organizations.
‘‘(C) 3 members shall represent energy-in-
tensive trade organizations.
‘‘(D) 3 members shall represent groups that
represent end-use energy and other consumers.
‘‘(E) 3 members shall be employees of the
Federal Government who are experts in energy
technology, intellectual property, and tax.
‘‘(F) 3 members shall be representatives of
universities with expertise in energy technology
development that are recommended by the Na-
tional Academy of Engineering.
‘‘(3) REPORT.—Not later than 1 year after the
date of enactment of this section and annually there-
after, the Working Group shall submit to the Com-
mittee a report that describes—
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‘‘(A) the findings of the Working Group;
and
‘‘(B) any recommendations of the Working
Group for the removal or reduction of barriers to
commercialization, deployment, and increasing
the use of greenhouse gas intensity reducing tech-
nologies and practices.
‘‘(4) COMPENSATION OF MEMBERS.—
‘‘(A) NON-FEDERAL EMPLOYEES.—A mem-
ber of the Working Group who is not an officer
or employee of the Federal Government shall be
compensated at a rate equal to the daily equiva-
lent of the annual rate of basic pay prescribed
for level IV of the Executive Schedule under sec-
tion 5315 of title 5, United States Code, for each
day (including travel time) during which the
member is engaged in the performance of the du-
ties of the Working Group.
‘‘(B) FEDERAL EMPLOYEES.—A member of
the Working Group who is an officer or employee
of the Federal Government shall serve without
compensation in addition to the compensation
received for the services of the member as an offi-
cer or employee of the Federal Government.
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‘‘(C) TRAVEL EXPENSES.—A member of the
Working Group shall be allowed travel expenses,
including per diem in lieu of subsistence, at
rates authorized for an employee of an agency
under subchapter I of chapter 57 of title 5,
United States Code, while away from the home
or regular place of business of the member in the
performance of the duties of the Commission.
‘‘(g) GREENHOUSE GAS INTENSITY REDUCING TECH-
NOLOGY DEPLOYMENT.—
‘‘(1) IN GENERAL.—Based on the strategy devel-
oped under subsection (b)(1), the technology inventory
conducted under subsection (e)(1), and the greenhouse
gas intensity reducing technology study report sub-
mitted under subsection (e)(2), the Committee shall
develop a program for implementation by the Climate
Credit Board established under section 1611(b)(2)(A)
that would provide for the removal of domestic bar-
riers to the commercialization and deployment of
greenhouse gas intensity reducing technologies and
practices.
‘‘(2) REQUIREMENTS.—In developing the pro-
gram under paragraph (1), the Committee shall con-
sider in the aggregate—
‘‘(A) the cost-effectiveness of the technology;
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‘‘(B) fiscal and regulatory barriers;
‘‘(C) statutory and other barriers; and
‘‘(D) intellectual property issues.
‘‘(3) REPORT.—Not later than 18 months after
the date of enactment of this section, the Committee
shall submit to the President and Congress a report
that—
‘‘(A) identifies, based on the report sub-
mitted under subsection (f)(3), any barriers to,
and commercial risks associated with, the de-
ployment of greenhouse gas intensity reducing
technologies; and
‘‘(B) includes a plan for carrying out eligi-
ble projects with Federal financial assistance
under section 1611.
‘‘(h) PROCEDURES FOR CALCULATING, MONITORING,
AND ANALYZING GREENHOUSE GAS INTENSITY.—
‘‘(1) IN GENERAL.—The Committee, in collabora-
tion with the Administrator of the Energy Informa-
tion Administration and the National Institute of
Standards and Technology, shall develop and propose
standards and best practices for calculating, moni-
toring, and analyzing greenhouse gas intensity.
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‘‘(2) CONTENT.—The standards and best prac-
tices shall address measurement of greenhouse gas in-
tensity by industry sector.
‘‘(3) PUBLICATION.—To provide the public with
an opportunity to comment on the standards and best
practices proposed under paragraph (1), the stand-
ards and best practices shall be published in the Fed-
eral Register.
‘‘(4) APPLICABLE
LAW.—To ensure that high
quality information is produced, the standards and
best practices developed under paragraph (1) shall
conform to the guidelines established under section
515 of the Treasury and General Government Appro-
priations Act, 2001 (commonly known as the ‘Data
Quality Act’) (44 U.S.C. 3516 note; 114 Stat. 2763A–
1543), as enacted into law by section 1(a)(3) of Pub-
lic Law 106–554.
‘‘(i) DEMONSTRATION PROJECTS.—
‘‘(1) IN GENERAL.—The Secretary shall, subject
to availability of appropriations, conduct and par-
ticipate in demonstration projects recommended for
approval by the Committee, including demonstration
projects relating to—
‘‘(A) coal gasification and coal liquefaction;
‘‘(B) carbon sequestration;
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‘‘(C) cogeneration technology initiatives;
‘‘(D) advanced nuclear power projects;
‘‘(E) lower emission transportation;
‘‘(F) renewable energy; and
‘‘(G) transmission upgrades.
‘‘(2) 
CRITERIA.—The 
Committee 
shall 
rec-
ommend a demonstration project under paragraph
(1) if the proposed demonstration project would—
‘‘(A) increase the reduction of the green-
house gas intensity to levels below that which
would be achieved by technologies being used in
the United States as of the date of enactment of
this section;
‘‘(B) maximize the potential return on Fed-
eral investment;
‘‘(C) demonstrate distinct roles in public-
private partnerships;
‘‘(D) produce a large-scale reduction of
greenhouse gas intensity if commercialization oc-
curred; and
‘‘(E) support a diversified portfolio to miti-
gate the uncertainty associated with a single
technology.
‘‘(j) COOPERATIVE RESEARCH
AND DEVELOPMENT
AGREEMENTS.—In carrying out greenhouse gas intensity
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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,
including—
‘‘(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
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financial assistance as is necessary to supplement
private sector financing for eligible projects.
‘‘(2) CLIMATE CREDIT BOARD.—
‘‘(A) IN
GENERAL.—Not later than 180
days after the date of enactment of this section,
the Secretary shall establish within the Depart-
ment of Energy a Climate Credit Board com-
posed of—
‘‘(i) the Under Secretary of Energy,
who shall serve as Chairperson;
‘‘(ii) the Chief Financial Officer of the
Department of Energy;
‘‘(iii) the Assistant Secretary of En-
ergy for Policy and International Affairs;
‘‘(iv) the Assistant Secretary of Energy
for Energy Efficiency and Renewable En-
ergy; and
‘‘(v) such other individuals as the Sec-
retary determines to have the experience
and expertise (including expertise in cor-
porate and project finance and the energy
sector) necessary to carry out the duties of
the Board.
‘‘(B) DUTIES.—The Board shall—
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‘‘(i) implement the program developed
under section 1610(g)(1) in accordance with
paragraph (3);
‘‘(ii) issue regulations and criteria in
accordance with paragraph (4);
‘‘(iii) conduct negotiations with indi-
viduals and entities interested in obtaining
assistance under this section;
‘‘(iv) recommend to the Secretary po-
tential recipients and amounts of grants of
assistance under this section; and
‘‘(v) establish metrics to indicate the
progress of the greenhouse gas intensity re-
ducing technology deployment program and
individual projects carried out under the
program toward meeting the criteria estab-
lished by section 1610(i)(2).
‘‘(3) GREENHOUSE
GAS
INTENSITY
REDUCING
TECHNOLOGY
DEPLOYMENT
PROGRAM.—Not later
than 1 year after the date of enactment of this section,
the Board, with the approval of the Secretary, shall
implement the greenhouse gas intensity reducing tech-
nology deployment program developed under section
1610(g)(1).
‘‘(4) REGULATIONS AND CRITERIA.—
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‘‘(A) IN GENERAL.—Not later than 1 year
after the date of enactment of this section, the
Board, in coordination with the Secretary and
after an opportunity for public comment, shall
issue such regulations and criteria as are nec-
essary to implement this section.
‘‘(B) REQUIREMENTS.—The regulations and
criteria shall provide for, at a minimum—
‘‘(i) a competitive process and the gen-
eral terms and conditions for the provision
of assistance under this section;
‘‘(ii) the procedures by which eligible
project owners and eligible project devel-
opers may request financial assistance
under this section; and
‘‘(iii) the collection of any other infor-
mation necessary for the Secretary to carry
out this section, including a process for ne-
gotiating the terms and conditions of assist-
ance provided under this section.
‘‘(C) ELIGIBILITY AND CRITERIA.—The de-
termination of eligibility of, and criteria for se-
lecting, eligible projects to receive assistance
under this section shall be carried out in accord-
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ance with subsection (c) and the regulations
issued under subparagraph (A).
‘‘(D) CONDITIONS FOR PROVISION OF AS-
SISTANCE.—The Board shall not provide assist-
ance under this section unless the Board deter-
mines, in accordance with the regulations issued
under subparagraph (A), that the terms, condi-
tions, maturity, security, schedule, and amounts
of repayments of the assistance are reasonable
and appropriate to protect the financial interests
of the United States.
‘‘(5) CONFIDENTIALITY.—In accordance with sec-
tion 552 of title 5, United States Code, and any re-
lated regulations applicable to the Department of En-
ergy, the Board shall protect the confidentiality of
any information provided by an applicant for assist-
ance under this section that the applicant certifies to
be commercially sensitive or that is protected intellec-
tual property.
‘‘(c) DETERMINATION OF ELIGIBILITY; PROJECT SE-
LECTION.—
‘‘(1) ELIGIBILITY.—To be eligible to receive as-
sistance under this section, an eligible project shall, as
determined by the Board—
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‘‘(A) be supported by an application that
contains all information required to be included
by, and is submitted to and approved by the
Board in accordance with, the regulations and
criteria issued by the Board under subsection
(b)(4);
‘‘(B) be nationally or regionally significant
by—
‘‘(i) reducing greenhouse gas intensity;
‘‘(ii) contributing to energy security;
and
‘‘(iii) contributing to energy and tech-
nology diversity in the energy economy of
the United States;
‘‘(C) contain an advanced climate tech-
nology or system that could—
‘‘(i) significantly improve the effi-
ciency, security, reliability, and environ-
mental performance of the energy economy
of the United States; and
‘‘(ii) reduce greenhouse gas emissions;
‘‘(D) have revenue sources dedicated to re-
payment of credit support-based project financ-
ing, such as revenue—
‘‘(i) from the sale of sequestered carbon;
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‘‘(ii) from the sale of energy, elec-
tricity, or other products from eligible
projects that employ advanced climate tech-
nologies and systems;
‘‘(iii) from the sale of electricity or
generating capacity, in the case of elec-
tricity infrastructure; or
‘‘(iv) associated with energy efficiency
gains, in the case of other energy projects;
‘‘(E) include a project proposal and agree-
ment for project financing repayment that dem-
onstrates to the satisfaction of the Board that the
dedicated revenue sources described in subpara-
graph (D) will be adequate to repay project fi-
nancing provided under this section; and
‘‘(F) reduce greenhouse gas intensity on a
national, regional, or company basis.
‘‘(2) LIMITATIONS.—Except as otherwise pro-
vided in this section—
‘‘(A) the total cost of an eligible project pro-
vided Federal financial assistance under this sec-
tion shall be at least $40,000,000;
‘‘(B) the Federal share of an eligible project
provided Federal financial assistance under this
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section shall be not more than 25 percent of eli-
gible project costs;
‘‘(C) not more than $200,000,000 in Federal
financial assistance shall be provided to any in-
dividual eligible project; and
‘‘(D) an eligible project shall not be eligible
for financial assistance from any other Federal
grant program during any period that Federal
financial assistance (other than a Federal loan
or loan guarantee) is provided to the eligible
project under this section.
‘‘(3) SELECTION AMONG ELIGIBLE PROJECTS.—
‘‘(A) ESTABLISHMENT OF SELECTION CRI-
TERIA.—The Board, in consultation with the
Secretary and ƒthe Interagency Coordinating
Committee on Climate Change Technology estab-
lished under section 1610(c)(1)≈, shall, in ac-
cordance with the regulations issued under sub-
section (b)(4)(A), establish criteria for selecting
which eligible projects will receive assistance
under this section.
‘‘(B) REQUIREMENTS.—The selection cri-
teria shall include a determination by the Board
of the extent to which—
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‘‘(i) the eligible project reduces green-
house gas intensity beyond reductions
achieved by technology available as of Octo-
ber 15, 1992;
‘‘(ii) financing for the eligible project
has appropriate security features, such as a
rate covenant, to ensure repayment;
‘‘(iii) assistance under this section for
the eligible project would foster innovative
public-private partnerships and attract pri-
vate debt or equity investment;
‘‘(iv) assistance under this section for
an eligible project would enable the eligible
project to proceed at an earlier date than
would otherwise be practicable; and
‘‘(v) the eligible project uses new tech-
nologies that enhance the efficiency, reduce
greenhouse gas intensity, improve the reli-
ability, or improve the safety, of the eligible
project.
‘‘(C) FINANCIAL INFORMATION.—An appli-
cation for assistance for an eligible project under
this section shall include such information as the
Secretary 
determines 
to 
be 
necessary
concerning—
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‘‘(i) the amount of budget authority re-
quired to fund the Federal credit instru-
ment requested for the eligible project;
‘‘(ii) the estimated construction costs of
the proposed eligible project;
‘‘(iii) estimates of construction and op-
erating costs of the eligible project;
‘‘(iv) projected revenues from the eligi-
ble project; and
‘‘(v) any other financial aspects of the
eligible project, including assurances, that
the Board determines to be appropriate.
‘‘(D) PRELIMINARY
RATING
OPINION
LET-
TER.—The Board shall require each applicant
seeking assistance for an eligible project under
this section to provide a preliminary rating
opinion letter from at least 1 credit rating agen-
cy indicating that the senior obligations of the
eligible project have the potential to achieve an
investment-grade rating.
‘‘(E) RISK
ASSESSMENT.—Before entering
into any agreement to provide assistance for an
eligible project under this section, the Board, in
consultation with the Secretary, the Director of
the Office of Management and Budget, and each
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credit rating agency providing a preliminary
rating opinion letter under subparagraph (D),
shall determine and maintain an appropriate
capital reserve subsidy amount for each line of
credit established for the eligible project, taking
into account the information contained in the
preliminary rating opinion letter.
‘‘(F) INVESTMENT-GRADE RATING REQUIRE-
MENT.—
‘‘(i) IN GENERAL.—The funding of any
assistance under this section shall be contin-
gent on the senior obligations of the eligible
project receiving an investment-grade rating
from at least 1 credit rating agency.
‘‘(ii) 
CONSIDERATIONS.—In 
deter-
mining whether an investment-grade rating
is appropriate under clause (i), the credit
rating agency shall take into account the
availability of Federal financial assistance
under this section.
‘‘(4) MAXIMUM AVAILABLE CLIMATE CREDIT SUP-
PORT.—Notwithstanding any assistance limitation
under any other provision of this section, the Sec-
retary shall not provide energy credit support to any
eligible project in the form of a secured loan or loan
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guarantee under subsection (f), production incentive
payments under subsection (g), or other credit-based
financial assistance under subsection (h), the com-
bined total of which exceeds 25 percent of eligible
project costs, excluding the value of standby default
coverage under subsection (d) and standby interest
coverage under subsection (e), as determined by the
Secretary.
‘‘(d) STANDBY DEFAULT COVERAGE.—
‘‘(1) AGREEMENTS; USE OF PROCEEDS.—
‘‘(A) AGREEMENTS.—
‘‘(i) IN GENERAL.—Subject to subpara-
graph (B), the Board, in consultation with
the Secretary, may enter into agreements to
provide standby default coverage for ad-
vanced climate technologies or systems of an
eligible project.
‘‘(ii) 
RECIPIENTS.—Coverage 
under
clause (i) may be provided to 1 or more ob-
ligors and debt holders to be triggered at fu-
ture dates on the occurrence of certain
events for any eligible project selected under
subsection (c).
‘‘(B) USE OF PROCEEDS.—The proceeds of
standby default coverage made available under
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this subsection shall be available to reimburse all
or part of the debt obligation for an eligible
project issued by an obligor and funded by a
lender, plus all or part of obligor equity, in the
event that, because of a regulatory failure or
other event specified by the Secretary pursuant
to this section, an eligible advanced climate tech-
nology or system for an eligible project fails to
receive an operating license in a period of time
specified by the Board in accordance with this
subsection.
‘‘(2) TERMS AND LIMITATIONS.—
‘‘(A) IN
GENERAL.—Standby default cov-
erage under this subsection with respect to an el-
igible project shall be on such terms and condi-
tions and contain such covenants, representa-
tions, warranties, and requirements (including
requirements for audits) as the Board determines
to be appropriate.
‘‘(B) 
MAXIMUM
AMOUNTS.—The 
total
amount of standby default coverage provided for
an eligible project shall not exceed 25 percent of
the reasonably anticipated eligible project costs,
including debt and equity.
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‘‘(C) EXERCISE.—Any exercise on the
standby default coverage shall be made only if a
facility involved with the eligible project fails,
because of regulatory failure or other specific
issues specified by the Secretary, to receive an
operating license by such deadline as the Sec-
retary shall establish.
‘‘(D) COST
OF
COVERAGE.—The cost of
standby default coverage shall be assumed by the
Secretary subject to the risk assessment calcula-
tion required under subsection (c)(4)(E) and the
availability of funds for that purpose.
‘‘(E) FEES.—In carrying out this section,
the Secretary may—
‘‘(i) establish fees at a level sufficient
to cover all or a portion of the administra-
tive costs incurred by the Federal Govern-
ment in providing standby default coverage
under this subsection; and
‘‘(ii) require that the fees be paid upon
application for a standby default coverage
agreement under this subsection.
‘‘(F) PERIOD
OF
AVAILABILITY.—In the
event that regulatory approval to operate a facil-
ity is suspended as a result of regulatory failure
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or other circumstances specified by the Secretary,
standby default coverage shall be available begin-
ning on the date of substantial completion and
ending not later than 5 years after the date on
which operation of the facility is scheduled to
commence.
‘‘(G) RIGHTS
OF
THIRD-PARTY
CREDI-
TORS.—
‘‘(i) 
AGAINST
FEDERAL
GOVERN-
MENT.—A third-party creditor of an obligor
shall not have any right against the Federal
Government with respect to any amounts
other than those specified in clause (ii).
‘‘(ii) ASSIGNMENT.—An obligor may
assign all or part of the standby default
coverage for an eligible project to 1 or more
lenders or to a trustee on behalf of the lend-
ers.
‘‘(H) RESULT
OF
EXERCISE
OF
STANDBY
DEFAULT
COVERAGE.—If standby default cov-
erage is exercised by the obligor of an eligible
project—
‘‘(i) the Federal Government shall be-
come the sole owner of the eligible project,
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with all rights and appurtenances to the eli-
gible project; and
‘‘(ii) in accordance with applicable
provisions of law, the Board shall dispose of
the assets of the eligible project on terms
that are most favorable to the Federal Gov-
ernment, which may include continuing to
licensing and commercial operation or re-
sale of the eligible project, in whole or in
part, if that is the best course of action in
the judgment of the Board.
‘‘(I) ESTIMATE OF ASSETS AT TIME OF TER-
MINATION.—If standby default coverage is exer-
cised and an eligible project is terminated, the
Board, in making a determination of whether to
dispose of the assets of the eligible project or con-
tinue the eligible project to licensing and com-
mercial operation, shall obtain a fair and im-
partial estimate of the eligible project assets at
the time of termination.
‘‘(J) RELATIONSHIP TO OTHER CREDIT IN-
STRUMENTS.—An eligible project that receives
standby default coverage under this subsection
may receive a secured loan or loan guarantee
under subsection (f), production incentive pay-
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ments under subsection (g), or assistance through
a credit-based financial assistance mechanism
under subsection (h).
‘‘(K) OTHER
CONDITIONS
AND
REQUIRE-
MENTS.—The Secretary may impose such other
conditions and requirements in connection with
any insurance provided under this subsection
(including requirements for audits) as the Sec-
retary determines to be appropriate.
‘‘(e) STANDBY INTEREST COVERAGE.—
‘‘(1) IN GENERAL.—
‘‘(A) AGREEMENTS.—Subject to subpara-
graph (B), the Board, in consultation with the
Secretary, may enter into agreements to make
standby interest coverage available to 1 or more
obligors in the form of loans for advanced cli-
mate or energy technologies or systems to be
made by the Board at future dates on the occur-
rence of certain events for any eligible project se-
lected under subsection (c)(4).
‘‘(B) USE OF PROCEEDS.—Subject to sub-
section (c)(3), the proceeds of standby interest
coverage made available under this subsection
shall be available to pay the debt service on
project obligations issued to finance eligible