Source: https://uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title42-chapter149-subchapter15&saved=%7CKHRpdGxlOjQyIHNlY3Rpb246MTY1MTUgZWRpdGlvbjpwcmVsaW0p%7C%7C%7C0%7Cfalse%7Cprelim&edition=prelim
Timestamp: 2020-01-29 17:08:09
Document Index: 351065139

Matched Legal Cases: ['§16511', '§1701', '§16512', '§1702', '§310', '§305', '§720', '§1703', '§1', '§134', '§16514', '§1704', '§1', '§20320', '§2', '§307', '§2', '§16516', '§1705', '§406']

[USC02] 42 USC CHAPTER 149, SUBCHAPTER XV: INCENTIVES FOR INNOVATIVE TECHNOLOGIES
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42 USC CHAPTER 149, SUBCHAPTER XV: INCENTIVES FOR INNOVATIVE TECHNOLOGIES
§16511. Definitions
(1) Commercial technology
The term "commercial technology" means a technology in general use in the commercial marketplace.
The term "commercial technology" does not include a technology solely by use of the technology in a demonstration project funded by the Department.
The term "cost" has the meaning given the term "cost of a loan guarantee" within the meaning of section 661a(5)(C) of title 2.
(3) Eligible project
The term "eligible project" means a project described in section 16513 of this title.
The term "guarantee" has the meaning given the term "loan guarantee" in section 661a of title 2.
The term "guarantee" includes a loan guarantee commitment (as defined in section 661a of title 2).
(Pub. L. 109–58, title XVII, §1701, Aug. 8, 2005, 119 Stat. 1117.)
§16512. Terms and conditions
Except for division C of Public Law 108–324 [15 U.S.C. 720 et seq.], the Secretary shall make guarantees under this or any other Act for projects on such terms and conditions as the Secretary determines, after consultation with the Secretary of the Treasury, only in accordance with this section.
(b) Specific appropriation or contribution
(A) an appropriation for the cost of the guarantee has been made;
(B) the Secretary has received from the borrower a payment in full for the cost of the guarantee and deposited the payment into the Treasury; or
(C) a combination of one or more appropriations under subparagraph (A) and one or more payments from the borrower under subparagraph (B) has been made that is sufficient to cover the cost of the guarantee.
Unless otherwise provided by law, a guarantee by the Secretary shall not exceed an amount equal to 80 percent of the project cost of the facility that is the subject of the guarantee, as estimated at the time at which the guarantee is issued.
No guarantee shall be made unless the Secretary determines that there is reasonable prospect of repayment of the principal and interest on the obligation by the borrower.
No guarantee shall be made unless the Secretary determines that the amount of the obligation (when combined with amounts available to the borrower from other sources) will be sufficient to carry out the project.
The obligation shall be subject to the condition that the obligation is not subordinate to other financing.
An obligation shall bear interest at a rate that does not exceed a level that the Secretary determines appropriate, taking into account the prevailing rate of interest in the private sector for similar loans and risks.
The term of an obligation shall require full repayment over a period not to exceed the lesser of—
(1) 30 years; or
(2) 90 percent of the projected useful life of the physical asset to be financed by the obligation (as determined by the Secretary).
(g) Defaults
If a borrower defaults on the obligation (as defined in regulations promulgated by the Secretary and specified in the guarantee contract), the holder of the guarantee shall have the right to demand payment of the unpaid amount from the Secretary.
Within such period as may be specified in the guarantee or related agreements, the Secretary shall pay to the holder of the guarantee the unpaid interest on, and unpaid principal of the obligation as to which the borrower has defaulted, unless the Secretary finds that there was no default by the borrower in the payment of interest or principal or that the default has been remedied.
If the Secretary makes a payment under paragraph (1), the Secretary shall be subrogated to the rights of the recipient of the payment as specified in the guarantee or related agreements including, where appropriate, the authority (notwithstanding any other provision of law) to—
(i) complete, maintain, operate, lease, or otherwise dispose of any property acquired pursuant to such guarantee or related agreements; or
(ii) permit the borrower, pursuant to an agreement with the Secretary, to continue to pursue the purposes of the project if the Secretary determines this to be in the public interest.
The rights of the Secretary, with respect to any property acquired pursuant to a guarantee or related agreements, shall be superior to the rights of any other person with respect to the property.
A guarantee agreement shall include such detailed terms and conditions as the Secretary determines appropriate to—
(i) protect the interests of the United States in the case of default; and
(ii) have available all the patents and technology necessary for any person selected, including the Secretary, to complete and operate the project.
(3) Payment of principal and interest by Secretary
With respect to any obligation guaranteed under this section, the Secretary may enter into a contract to pay, and pay, holders of the obligation, for and on behalf of the borrower, from funds appropriated for that purpose, the principal and interest payments which become due and payable on the unpaid balance of the obligation if the Secretary finds that—
(A)(i) the borrower is unable to meet the payments and is not in default;
(ii) it is in the public interest to permit the borrower to continue to pursue the purposes of the project; and
(iii) the probable net benefit to the Federal Government in paying the principal and interest will be greater than that which would result in the event of a default;
(B) the amount of the payment that the Secretary is authorized to pay shall be no greater than the amount of principal and interest that the borrower is obligated to pay under the agreement being guaranteed; and
(C) the borrower agrees to reimburse the Secretary for the payment (including interest) on terms and conditions that are satisfactory to the Secretary.
(4) Action by Attorney General
(i) such assets of the defaulting borrower as are associated with the obligation; or
(ii) any other security pledged to secure the obligation.
The Secretary shall charge and collect fees for guarantees in amounts the Secretary determines are sufficient to cover applicable administrative expenses.
Fees collected under this subsection shall—
(A) be deposited by the Secretary into the Treasury; and
(i) Records; audits
A recipient of a guarantee shall keep such records and other pertinent documents as the Secretary shall prescribe by regulation, including such records as the Secretary may require to facilitate an effective audit.
(j) Full faith and credit
(k) Wage rate requirements
All laborers and mechanics employed by contractors and subcontractors in the performance of construction work financed in whole or in part by a loan guaranteed under this subchapter shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40. With respect to the labor standards in this subsection, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40.
(Pub. L. 109–58, title XVII, §1702, Aug. 8, 2005, 119 Stat. 1117; Pub. L. 111–85, title III, §310, Oct. 28, 2009, 123 Stat. 2873; Pub. L. 112–74, div. B, title III, §305(1), Dec. 23, 2011, 125 Stat. 877.)
Division C of Public Law 108–324, referred to in subsec. (a), is division C of Pub. L. 108–324, Oct. 13, 2004, 118 Stat. 1255, known as the Alaska Natural Gas Pipeline Act, which is classified principally to chapter 15D (§720 et seq.) of Title 15, Commerce and Trade. For complete classification of division C to the Code, see Short Title note set out under section 720 of Title 15 and Tables.
2011—Subsec. (b). Pub. L. 112–74 added subsec. (b) and struck out former subsec. (b). Prior to amendment, text read as follows: "No guarantee shall be made unless—
"(1) an appropriation for the cost has been made; or
"(2) the Secretary has received from the borrower a payment in full for the cost of the obligation and deposited the payment into the Treasury."
2009—Subsec. (k). Pub. L. 111–85 added subsec. (k).
The Secretary may make guarantees under this section only for projects that—
Integrated gasification combined cycle plants meeting the emission levels under subsection (d), including—
In addition to any other applicable Federal or State emission limitation requirements, a project shall attain at least—
(Pub. L. 109–58, title XVII, §1703, Aug. 8, 2005, 119 Stat. 1120; Pub. L. 109–168, §1(b)(1), Jan. 10, 2006, 119 Stat. 3580; Pub. L. 110–140, title I, §134(b), Dec. 19, 2007, 121 Stat. 1513.)
2007—Subsec. (b)(8). Pub. L. 110–140 added par. (8) and struck out former par. (8) which read as follows: "Production facilities for fuel efficient vehicles, including hybrid and advanced diesel vehicles."
2006—Subsec. (c)(4). Pub. L. 109–168 substituted "Department of Energy's Clean Coal Power Initiative for Fischer-Tropsch" for "clean coal power initiative under part A of subchapter IV for".
§16514. Authorization of appropriations
There are authorized to be appropriated such sums as are necessary to provide the cost of guarantees under this subchapter.
(b) Use of other appropriated funds
The Department may use amounts awarded under the Clean Coal Power Initiative to carry out the project described in section 16513(c)(1)(C) of this title, on the request of the recipient of such award, for a loan guarantee, to the extent that the amounts have not yet been disbursed to, or have been repaid by, the recipient.
(Pub. L. 109–58, title XVII, §1704, Aug. 8, 2005, 119 Stat. 1122; Pub. L. 109–168, §1(b)(2), Jan. 10, 2006, 119 Stat. 3580.)
2006—Subsec. (b). Pub. L. 109–168 substituted "Clean Coal Power Initiative" for "clean coal power initiative under part A of subchapter IV".
(b) No loan guarantees may be awarded under title XVII of the Energy Policy Act of 2005 [42 U.S.C. 16501 et seq.] until final regulations are issued that include—
(Pub. L. 109–289, div. B, title II, §20320, as added Pub. L. 110–5, §2, Feb. 15, 2007, 121 Stat. 21; amended Pub. L. 113–76, div. D, title III, §307, Jan. 17, 2014, 128 Stat. 175.)
Section 101, referred to in subsec. (a), is section 101 of title I of div. B of Pub. L. 109–289, as added by Pub. L. 110–5, §2, Feb. 15, 2007, 121 Stat. 8. Subsec. (b) of section 101 is classified as a note under section 12651i of this title. Subsecs. (a) and (c) of section 101 are not classified to the Code.
2014—Subsec. (c). Pub. L. 113–76 substituted "a review every three years" for "an annual review".
§16516. Omitted
Section, Pub. L. 109–58, title XVII, §1705, as added Pub. L. 111–5, div. A, title IV, §406(a), Feb. 17, 2009, 123 Stat. 145, which related to temporary program for rapid deployment of renewable energy and electric power transmission projects, was omitted from the Code due to expiration of authority to enter into guarantees under this section on Sept. 30, 2011.