§16421a Western Area Power Administration borrowing authority

Summary

The Western Area Power Administration can borrow up to $3,250,000,000 from the U.S. Treasury (counting deferred interest) to build or upgrade electric transmission lines and related facilities that serve its area, and to help deliver power from renewable projects built or expected after February 17, 2009. The Treasury Secretary sets the loan interest rate based on similar government market yields. The Administrator (head of WAPA) may refinance loans inside the Treasury and let other parties join in financing, building, or owning projects. As of February 17, 2009, WAPA may use $1,750,000,000 at one time without delay; if it asks for more, the extra funds will be released unless Congress passes a joint resolution within 90 days canceling the rest. Each project must stand alone for repayment. Income from a project’s transmission use must pay that project’s loan and its operating and ancillary service costs, after keeping money needed for those services. Before funding a project, the Administrator must certify it is in the public interest, won’t harm reliability or other duties, and is likely to earn enough to repay the loan. Any loan balance left at the end of a project’s useful life is forgiven, and money spent studying projects that are not built is forgiven; the Administrator must tell the Treasury about forgiven amounts. Before requesting loans, the Administrator must create public policies and seek Requests for Interest by publishing notices in the Federal Register.