42 U.S.C. § 18715: Transmission facility…

Summary

Congress gave the Secretary $2,000,000,000 for fiscal year 2022, to be used through September 30, 2030, to pay for direct loans to non-Federal borrowers building or upgrading electric transmission lines the Secretary finds are needed for the national interest. The Secretary must not make any loan deal that could cause money to be paid out after September 30, 2031. Use of the money must follow the limits that apply to loan guarantees in section 50141(d) and any other terms the Secretary sets. Each direct loan can be no more than 80% of the project cost. The loan length can be no longer than the smaller of 90% of the project’s useful life in years or 30 years. At first issuance, the loan cannot be made junior to other financing. The interest rate is set by the Secretary based on market yields for comparable U.S. marketable government obligations on the loan date. Direct loan — see the meaning in 2 U.S.C. 661a.

Title 42, §18715

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(a)Appropriation

In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,000,000,000, to remain available through September 30, 2030, to carry out this section: Provided, That the Secretary shall not enter into any loan agreement pursuant to this section that could result in disbursements after September 30, 2031.

(b)Use of funds

The Secretary shall use the amounts made available by subsection (a) to carry out a program to pay the costs of direct loans to non-Federal borrowers, subject to the limitations that apply to loan guarantees under section 50141(d) and under such terms and conditions as the Secretary determines to be appropriate, for the construction or modification of electric transmission facilities designated by the Secretary to be necessary in the national interest under section 824p(a) of title 16.

(c)Loans

A direct loan provided under this section— (1)

(2)shall not exceed 80 percent of the project costs; and

(3)shall, on first issuance, be subject to the condition that the direct loan is not subordinate to other financing.

(d)Interest rates

A direct loan provided under this section shall bear interest at a rate determined by the Secretary, taking into consideration market yields on outstanding marketable obligations of the United States of comparable maturities as of the date on which the direct loan is made.

(e)Definition of direct loan

In this section, the term “direct loan” has the meaning given the term in section 661a of title 2.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 50141(d), referred to in subsec. (b), is section 50141(d) of Pub. L. 117–169, title V, Aug. 16, 2022, 136 Stat. 2043, which is not classified to the Code. Codification Section was enacted as part of Pub. L. 117–169, and not as part of div. D of Pub. L. 117–58, which enacted this chapter.

Statutory Notes and Related Subsidiaries

Definition of “Secretary” “Secretary” means the Secretary of Energy, see section 50111 of Pub. L. 117–169, set out as a note under section 17113b of this title.

§18715 Transmission Facility Financing