§1531 Feasibility Study Loan Program

Summary

Create a program to speed up the development of geothermal energy for nonelectric uses by geothermal utility districts, geothermal industrial development districts, and other people and groups. The program can make loans that pay up to 90% of the cost of studies to see if a project is workable and to prepare needed permit or license applications. If a study shows the project is not technically or economically feasible, the loan balance and interest for that study can be cancelled. The program can also make loans that pay up to 75% of the direct construction costs for nonelectric geothermal systems if required approvals will be in place, the project meets environmental laws, and the borrower needs the help. Each loan gets the same interest rate that applies at the time to water resources planning projects under section 80 of the Water Resources Development Act of 1974 (42 U.S.C. 1962d–17(a)). Study loans may be for up to 10 years and construction loans up to 30 years. Loans come from the Geothermal Resources Development Fund, and repayments go back into that Fund. For fiscal year 1981, up to $5,000,000 may be appropriated for study loans under clause (A) and will remain available until spent. Later years need future laws to authorize money for those studies or for the other loans. "Person" here includes cities and towns, cooperatives, industrial development agencies, nonprofits, Indian tribes, the named districts, and similar entities.