§2703 Loans for Project Costs

Summary

The Secretary can make loans for small hydroelectric projects that cover up to 75 percent of the project costs. Loans go to towns, electric co-ops, industrial development agencies, nonprofits, or other people. A loan can only be given if the project uses an existing dam, has all needed Federal, State, and local approvals, will not cause significant harm to the environment (including fish, wildlife, recreation, and stream flow), and will not significantly hurt other water uses. The Secretary may promise a loan before approvals are complete for up to 3 years (longer only for good cause), but the money is not paid until all approvals are met. The Secretary must favor applicants who have no other suitable financing and whose projects will show useful technical or economic results about producing and using power. Loan recipients must give the Secretary information about the equipment and services they will use. The Secretary can ban equipment he finds too costly, poor performing, or not fitting the program. Information collected will be made public except for items protected as confidential under section 796(d) of title 15. The Secretary should also encourage eligible parties to join together on the same project when allowed by law.