42 U.S.C. § 16421: Third-party finance

Summary

The Secretary, using the Western Area Power Administration (WAPA) or the Southwestern Power Administration (SWPA), may plan, build, own, or join others to build and run projects that upgrade existing power lines or add new transmission lines inside states where WAPA or SWPA work. Projects are allowed only if they either sit in a national interest transmission corridor under section 216(a) of the Federal Power Act and will cut interstate transmission congestion, or are needed for actual or expected growth in transmission demand. Projects must match transmission needs identified by the proper Transmission Organization or an approved regional reliability group, support efficient and reliable grid operation, be run according to sound utility practice, and for new projects follow the rules of the Transmission Organization (or the regional reliability group if none exists) and not duplicate facilities already built or in approved siting or permitting. The Secretary can take and use money from other parties to pay for a project. Those contributions can be spent without a year-by-year limit and are treated like money specifically provided for the project. Any project costs not covered by contributions must be paid by rates charged to customers who use the new transmission capacity, shared fairly among those beneficiaries. Decisions must use the best available data. Environmental laws, state and federal siting laws, and existing authorizing statutes still apply, and the Administrators keep any other powers they already have. The Secretary cannot accept more than $100,000,000 in outside contributions for projects for the period covering fiscal years 2006 through 2015.

Title 42, §16421

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(a)Existing facilities

The Secretary, acting through the Administrator of the Western Area Power Administration (hereinafter in this section referred to as “WAPA”), or through the Administrator of the Southwestern Power Administration (hereinafter in this section referred to as “SWPA”), or both, may design, develop, construct, operate, maintain, or own, or participate with other entities in designing, developing, constructing, operating, maintaining, or owning, an electric power transmission facility and related facilities (“Project”) needed to upgrade existing transmission facilities owned by SWPA or WAPA if the Secretary, in consultation with the applicable Administrator, determines that the proposed Project—

(1)(A)is located in a national interest electric transmission corridor designated under section 216(a) of the Federal Power Act [16 U.S.C. 824p(a)] and will reduce congestion of electric transmission in interstate commerce; or

(B)is necessary to accommodate an actual or projected increase in demand for electric transmission capacity;

(2)is consistent with—

(A)transmission needs identified, in a transmission expansion plan or otherwise, by the appropriate Transmission Organization (as defined in the Federal Power Act [16 U.S.C. 791a et seq.]), if any, or approved regional reliability organization; and

(B)efficient and reliable operation of the transmission grid; and

(3)would be operated in conformance with prudent utility practice.

(b)New facilities

The Secretary, acting through WAPA or SWPA, or both, may design, develop, construct, operate, maintain, or own, or participate with other entities in designing, developing, constructing, operating, maintaining, or owning, a new electric power transmission facility and related facilities (“Project”) located within any State in which WAPA or SWPA operates if the Secretary, in consultation with the applicable Administrator, determines that the proposed Project—

(1)(A)is located in an area designated under section 216(a) of the Federal Power Act [16 U.S.C. 824p(a)] and will reduce congestion of electric transmission in interstate commerce; or

(B)is necessary to accommodate an actual or projected increase in demand for electric transmission capacity;

(2)is consistent with—

(A)transmission needs identified, in a transmission expansion plan or otherwise, by the appropriate Transmission Organization (as defined in the Federal Power Act [16 U.S.C. 791a et seq.]) if any, or approved regional reliability organization; and

(B)efficient and reliable operation of the transmission grid;

(3)will be operated in conformance with prudent utility practice;

(4)will be operated by, or in conformance with the rules of, the appropriate (A) Transmission Organization, if any, or (B) if such an organization does not exist, regional reliability organization; and

(5)will not duplicate the functions of existing transmission facilities or proposed facilities which are the subject of ongoing or approved siting and related permitting proceedings.

(c)Other funds

(1)In general

In carrying out a Project under subsection (a) or (b), the Secretary may accept and use funds contributed by another entity for the purpose of carrying out the Project.

(2)Availability

The contributed funds shall be available for expenditure for the purpose of carrying out the Project—

(A)without fiscal year limitation; and

(B)as if the funds had been appropriated specifically for that Project.

(3)Allocation of costs

In carrying out a Project under subsection (a) or (b), any costs of the Project not paid for by contributions from another entity shall be collected through rates charged to customers using the new transmission capability provided by the Project and allocated equitably among these project beneficiaries using the new transmission capability.

(d)Relationship to other laws

Nothing in this section affects any requirement of— (1)

(2)any Federal or State law relating to the siting of energy facilities; or

(3)any existing authorizing statutes.

(e)Savings clause

Nothing in this section shall constrain or restrict an Administrator in the utilization of other authority delegated to the Administrator of WAPA or SWPA.

(f)Secretarial determinations

Any determination made pursuant to subsections (a) or (b) shall be based on findings by the Secretary using the best available data.

(g)Maximum funding amount

The Secretary shall not accept and use more than $100,000,000 under subsection (c)(1) for the period encompassing fiscal years 2006 through 2015.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Federal Power Act, referred to in subsecs. (a)(2)(A) and (b)(2)(A), is act June 10, 1920, ch. 285, 41 Stat. 1063, which is classified generally to chapter 12 (§ 791a et seq.) of Title 16, Conservation. For complete classification of this Act to the Code, see section 791a of Title 16 and Tables. The National Environmental Policy Act of 1969, referred to in subsec. (d)(1), is Pub. L. 91–190, Jan. 1, 1970, 83 Stat. 852, which is classified generally to chapter 55 (§ 4321 et seq.) of this title. For complete classification of this Act to the Code, see

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note set out under section 4321 of this title and Tables.

Statutory Notes and Related Subsidiaries

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For

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of title XII of Pub. L. 109–58, which enacted this subchapter, as the “Electricity Modernization Act of 2005”, see section 1201 of Pub. L. 109–58, set out as a note under section 15801 of this title.

§16421 Third-party Finance

Summary

Title 42, §16421

Notes & Related Subsidiaries

Editorial Notes

References in Text

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Statutory Notes and Related Subsidiaries

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