---
kind: "section"
citation: "16 U.S.C. § 838k"
title: "16"
title_heading: "Conservation"
number: "838k"
heading: "Bonneville Power Administration bonds"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/16/838k"
units:
  - "Chapter 12G — Pacific Northwest Federal Transmission System"
---

# §838k. Bonneville Power Administration bonds

- (a) **Issuance and sale; terms and conditions; interest rate; limitation on aggregate principal amount outstanding—** The [Administrator](/usc/16/838a.md?p=a) is authorized to issue and sell to the [Secretary](/usc/16/410r–5.md?p=c-1) of the Treasury from time to time in the name and for and on behalf of the Bonneville Power Administration bonds, notes, and other evidences of indebtedness (in this chapter collectively referred to as “bonds”) to assist in financing the construction, [acquisition](/usc/16/620e.md?p=1), and replacement of the transmission system, to implement the [Administrator](/usc/16/838a.md?p=a)’s authority pursuant to the Pacific Northwest [Electric Power](/usc/16/838a.md?p=b) Planning and Conservation Act [[16 U.S.C. 839](/usc/16/839.md) et seq.] (including his authority to provide financial assistance for conservation measures, renewable resources, and [fish and wildlife](/usc/16/3102.md?p=17), but not including the authority to [acquire](/usc/16/620e.md?p=1) under [section 6](/usc/16/6.md) of that Act [[16 U.S.C. 839d](/usc/16/839d.md)] [electric power](/usc/16/838a.md?p=b) from a generating facility having a planned capability greater than 50 average megawatts), and to issue and sell bonds to refund such bonds. Such bonds shall be in such forms and denominations, bear such maturities, and be subject to such terms and conditions as may be prescribed by the [Secretary](/usc/16/410r–5.md?p=c-1) of the Treasury [taking](/usc/16/3102.md?p=18) into account terms and conditions prevailing in the market for similar bonds, the useful life of the facilities for which the bonds are issued, and financing practices of the utility industry. Refunding provisions may be prescribed by the [Administrator](/usc/16/838a.md?p=a). Such bonds shall bear interest at a rate determined by the [Secretary](/usc/16/410r–5.md?p=c-1) of the Treasury [taking](/usc/16/3102.md?p=18) into consideration the current average market yield on outstanding marketable obligations of the United States of comparable maturities, plus an amount in the judgment of the [Secretary](/usc/16/410r–5.md?p=c-1) of the Treasury to provide for a rate comparable to the rates prevailing in the market for similar bonds issued by Government corporations. Beginning in fiscal year 1982, if the [Administrator](/usc/16/838a.md?p=a) fails to repay by the end of any fiscal year all of the amounts projected immediately prior to such year to be repaid to the Treasury by the end of such year under the repayment criteria of the [Secretary](/usc/16/410r–5.md?p=c-1) of Energy and if such failure is due to reasons other than (A) a decrease in power sale revenues due to fluctuating streamflows or (B) other reasons beyond the control of the [Administrator](/usc/16/838a.md?p=a), the [Secretary](/usc/16/410r–5.md?p=c-1) of the Treasury may increase the interest rate applicable to the outstanding bonds issued by the [Administrator](/usc/16/838a.md?p=a) during such fiscal year. Such increase shall be effective commencing with the fiscal year immediately following the fiscal year during which such failure occurred and shall not exceed 1 per centum for each such fiscal year during which such repayments are not in accord with such criteria. The [Secretary](/usc/16/410r–5.md?p=c-1) of the Treasury shall [take](/usc/16/3102.md?p=18) into account amounts that the [Administrator](/usc/16/838a.md?p=a) has repaid in advance of any repayment criteria in determining whether to increase such rate. Before such rate is increased, the [Secretary](/usc/16/410r–5.md?p=c-1) of the Treasury, in consultation with the [Administrator](/usc/16/838a.md?p=a) and the Federal Energy Regulatory [Commission](/usc/16/544.md?p=c), must be satisfied that the [Administrator](/usc/16/838a.md?p=a) will have the ability to pay such increased rate, [taking](/usc/16/3102.md?p=18) into account the [Administrator](/usc/16/838a.md?p=a)’s obligations. Such increase shall terminate with the fiscal year in which repayments (including repayments of the increased rate) are in accordance with the repayment criteria of the [Secretary](/usc/16/410r–5.md?p=c-1) of Energy. The aggregate principal amount of any such bonds outstanding at any one time shall not exceed $1,250,000,000 prior to October 1, 1981. Such aggregate principal limitation shall be increased by an additional $1,250,000,000 after October 1, 1981, as provided in advance in annual appropriation Acts, and such increased amount shall be reserved for the purpose of providing funds for conservation and renewable resource loans and grants in a special revolving account created therefor in the Fund. The funds from such revolving account shall not be deemed [State](/usc/16/590q.md?p=a) or local funds.
- (b) **Payment of principal, premiums, and interest from net proceeds; “net proceeds” defined—** The principal of, premiums, if any, and interest on such bonds shall be payable solely from the [Administrator](/usc/16/838a.md?p=a)’s net proceeds as hereinafter defined. “Net proceeds” shall mean for the purposes of this section the remainder of the [Administrator](/usc/16/838a.md?p=a)’s gross receipts from all sources after first deducting [trust](/usc/16/450ss–1.md?p=4) funds and the costs listed in [section 838i(b)(2)](/usc/16/838i.md?p=b-2) through (b)(7), (b)(11), and (b)(12) of this title, and shall include reserve or other funds created from such receipts.
- (c) **Purchase and sale by Secretary of the Treasury; public debt transactions—** The [Secretary](/usc/16/410r–5.md?p=c-1) of the Treasury shall purchase forthwith any bonds issued by the [Administrator](/usc/16/838a.md?p=a) under this chapter and for that purpose is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under [chapter 31](/usc/31/chstIII/ch31.md) of title 31, as now or hereafter in force, and the purposes for which securities may be issued under [chapter 31](/usc/31/chstIII/ch31.md) of title 31, as now or hereafter in force, are extended to include any purchases of the bonds issued by the [Administrator](/usc/16/838a.md?p=a) under this chapter. The [Secretary](/usc/16/410r–5.md?p=c-1) of the Treasury may, at any time, sell any of the bonds acquired by him under this chapter. All redemptions, purchases, and sales by the [Secretary](/usc/16/410r–5.md?p=c-1) of the Treasury of such bonds shall be treated as public debt transactions of the United States.

## Source credit

(Pub. L. 93–454, § 13, Oct. 18, 1974, 88 Stat. 1380; Pub. L. 96–501, § 8(c), (d), Dec. 5, 1980, 94 Stat. 2728, 2729.)

## Notes

### Editorial Notes

### References in Text

The Pacific Northwest Electric Power Planning and Conservation Act, referred to in subsec. (a), is Pub. L. 96–501, Dec. 5, 1980, 94 Stat. 2697, which is classified principally to chapter 12H (§ 839 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 839 of this title and Tables.

### Codification

In subsec. (c), “chapter 31 of title 31” substituted for “the Second Liberty Bond Act” on authority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance.

### Amendments

1980—Subsec. (a). Pub. L. 96–501, § 8(d), inserted provision relating to the implementation of the Administrator’s authority pursuant to the Pacific Northwest Electric Power Planning and Conservation Act, inserted “issued by Government corporations” after “rates prevailing in the market for similar bonds”, increased the existing $1,250,000,000 aggregate principal limitation by an additional $1,250,000,000 after Oct. 1, 1981, to be used to provide funds for conservation and renewable resource loans and grants in a special revolving account created for that purpose, and inserted provision that, beginning in fiscal year 1982, if the Administrator fails to repay by the end of any fiscal year all of the amounts projected immediately prior to that year to be repaid to the Treasury by the end of that year under the repayment criteria of the Secretary of Energy and if that failure is due to reasons other than a decrease in power sale revenues due to fluctuating streamflows or other reasons beyond the control of the Administrator, the Secretary of the Treasury may increase the interest rate applicable to the outstanding bonds issued by the Administrator during that fiscal year.

Subsec. (b). Pub. L. 96–501, § 8(c), substituted “, (b)(11), and (b)(12) of this title,” for “and (b)(11) of this title,”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1980 Amendment

Amendment by Pub. L. 96–501 effective Dec. 5, 1980, see section 11 of Pub. L. 96–501, set out as an Effective Date note under section 839 of this title.

### Transfer of Functions

Functions of Secretary of the Interior with respect to Bonneville Power Administration transferred to Secretary of Energy by section 7152(a)(1)(D), (2) of Title 42, The Public Health and Welfare, with Bonneville Power Administration to be preserved as a distinct organizational entity within Department of Energy and headed by an Administrator.