§8832 Construction Loans

Summary

If allowed by sections 8835 and 8836, the Secretary of Energy can approve and make loans to build municipal waste energy projects. Each loan cannot be more than 80% of the project’s estimated construction cost. The Secretary sets the interest rate by looking at current average yields on U.S. government marketable securities with similar remaining maturities, then may add up to 1% and round to the nearest one‑eighth of a percent. If costs rise later, the Secretary may approve an extra loan up to 10% of the original estimated cost. The applicant must prove they cannot get enough private credit at reasonable rates and terms.