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

# §838l. Bonneville Power Administration refinancing

- (a) **Definitions—** For the purposes of this section—
  - (1) “[Administrator](/usc/16/838a.md?p=a)” means the [Administrator](/usc/16/838a.md?p=a) of the Bonneville Power Administration;
  - (2) “capital investment” means a capitalized cost funded by Federal appropriations that—
    - (A) is for a [project](/usc/16/410r–5.md?p=c-4), facility, or separable [unit](/usc/16/430f–7.md?p=4) or feature of a [project](/usc/16/410r–5.md?p=c-4) or facility;
    - (B) is a cost for which the [Administrator](/usc/16/838a.md?p=a) is required by law to establish rates to repay to the United States Treasury through the sale of [electric power](/usc/16/838a.md?p=b), transmission, or other services;
    - (C) excludes a Federal irrigation investment; and
    - (D) excludes an investment financed by the current revenues of the [Administrator](/usc/16/838a.md?p=a) or by bonds issued and sold, or authorized to be issued and sold, by the [Administrator](/usc/16/838a.md?p=a) under [section 838k of this title](/usc/16/838k.md);
  - (3) “new capital investment” means a capital investment for a [project](/usc/16/410r–5.md?p=c-4), facility, or separable [unit](/usc/16/430f–7.md?p=4) or feature of a [project](/usc/16/410r–5.md?p=c-4) or facility, placed in service after September 30, 1996;
  - (4) “old capital investment” means a capital investment the capitalized cost of which—
    - (A) was incurred, but not repaid, before October 1, 1996, and
    - (B) was for a [project](/usc/16/410r–5.md?p=c-4), facility, or separable [unit](/usc/16/430f–7.md?p=4) or feature of a [project](/usc/16/410r–5.md?p=c-4) or facility, placed in service before October 1, 1996;
  - (5) “repayment date” means the end of the period within which the [Administrator](/usc/16/838a.md?p=a)’s rates are to assure the repayment of the principal amount of a capital investment; and
  - (6) “Treasury rate” means—
    - (A) for an old capital investment, 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 prevailing market yields, during the month preceding October 1, 1996, on outstanding interest-bearing obligations of the United States with periods to maturity comparable to the period between October 1, 1996, and the repayment date for the old capital investment; and
    - (B) for a new capital investment, 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 prevailing market yields, during the month preceding the beginning of the fiscal year in which the related [project](/usc/16/410r–5.md?p=c-4), facility, or separable [unit](/usc/16/430f–7.md?p=4) or feature is placed in service, on outstanding interest-bearing obligations of the United States with periods to maturity comparable to the period between the beginning of the fiscal year and the repayment date for the new capital investment.
- (b) **New principal amounts—**
  - (1) **Principal amount—** Effective October 1, 1996, an old capital investment has a new principal amount that is the sum of—
    - (A) the present value of the old payment amounts for the old capital investment, calculated using a discount rate equal to the Treasury rate for the old capital investment; and
    - (B) an amount equal to $100,000,000 multiplied by a fraction whose numerator is the principal amount of the old payment amounts for the old capital investment and whose denominator is the sum of the principal amounts of the old payment amounts for all old capital investments.
  - (2) **Determination—** With the approval of the [Secretary](/usc/16/410r–5.md?p=c-1) of the Treasury based solely on consistency with this section, the [Administrator](/usc/16/838a.md?p=a) shall determine the new principal amounts under [subsection (b)](#b) and the assignment of interest rates to the new principal amounts under [subsection (c)](#c).
  - (3) **Old payment amounts—** For the purposes of this subsection, “old payment amounts” means, for an old capital investment, the annual interest and principal that the [Administrator](/usc/16/838a.md?p=a) would have paid to the United States Treasury from October 1, 1996, if this section had not been enacted, assuming that—
    - (A) the principal were repaid—
      - (i) on the repayment date the [Administrator](/usc/16/838a.md?p=a) assigned before October 1, 1994, to the old capital investment, or
      - (ii) with respect to an old capital investment for which the [Administrator](/usc/16/838a.md?p=a) has not assigned a repayment date before October 1, 1994, on a repayment date the [Administrator](/usc/16/838a.md?p=a) shall assign to the old capital investment in accordance with paragraph 10(d)(1) of the version of Department of Energy Order RA 6120.2 in effect on October 1, 1994; and
    - (B) interest were paid—
      - (i) at the interest rate the [Administrator](/usc/16/838a.md?p=a) assigned before October 1, 1994, to the old capital investment, or
      - (ii) with respect to an old capital investment for which the [Administrator](/usc/16/838a.md?p=a) has not assigned an interest rate before October 1, 1994, 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 prevailing market yields, during the month preceding the beginning of the fiscal year in which the related [project](/usc/16/410r–5.md?p=c-4), facility, or separable [unit](/usc/16/430f–7.md?p=4) or feature is placed in service, on outstanding interest-bearing obligations of the United States with periods to maturity comparable to the period between the beginning of the fiscal year and the repayment date for the old capital investment.
- (c) **Interest rate for new principal amounts—** As of October 1, 1996, the unpaid balance on the new principal amount established for an old capital investment under [subsection (b)](#b) bears interest annually at the Treasury rate for the old capital investment until the earlier of the date that the new principal amount is repaid or the repayment date for the new principal amount.
- (d) **Repayment dates—** As of October 1, 1996, the repayment date for the new principal amount established for an old capital investment under [subsection (b)](#b) is no earlier than the repayment date for the old capital investment assumed in [subsection (b)(3)(A)](#b-3-A).
- (e) **Prepayment limitations—** During the period October 1, 1996, through September 30, 2001, the total new principal amounts of old capital investments, as established under [subsection (b)](#b), that the [Administrator](/usc/16/838a.md?p=a) may pay before their respective repayment dates shall not exceed $100,000,000.
- (f) **Interest rates for new capital investments during construction—**
  - (1) **New capital investment—** The principal amount of a new capital investment includes interest in each fiscal year of construction of the related [project](/usc/16/410r–5.md?p=c-4), facility, or separable [unit](/usc/16/430f–7.md?p=4) or feature at a rate equal to the one-year rate for the fiscal year on the sum of—
    - (A) construction expenditures that were made from the date construction commenced through the end of the fiscal year, and
    - (B) accrued interest during construction.
  - (2) **Payment—** The [Administrator](/usc/16/838a.md?p=a) is not required to pay, during construction of the [project](/usc/16/410r–5.md?p=c-4), facility, or separable [unit](/usc/16/430f–7.md?p=4) or feature, the interest calculated, accrued, and capitalized under [subsection (f)(1)](#f-1).
  - (3) **One-year rate—** For the purposes of this section, “one-year rate” for a fiscal year means 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 prevailing market yields, during the month preceding the beginning of the fiscal year, on outstanding interest-bearing obligations of the United States with periods to maturity of approximately one year.
- (g) **Interest rates for new capital investments—** The unpaid balance on the principal amount of a new capital investment bears interest at the Treasury rate for the new capital investment from the date the related [project](/usc/16/410r–5.md?p=c-4), facility, or separable [unit](/usc/16/430f–7.md?p=4) or feature is placed in service until the earlier of the date the new capital investment is repaid or the repayment date for the new capital investment.
- (h) **Omitted—**
- (i) **Contract provisions—** In each contract of the [Administrator](/usc/16/838a.md?p=a) that provides for the [Administrator](/usc/16/838a.md?p=a) to sell [electric power](/usc/16/838a.md?p=b), transmission, or related services, and that is in effect after September 30, 1996, the [Administrator](/usc/16/838a.md?p=a) shall offer to include, or as the case may be, shall offer to amend to include, provisions specifying that after September 30, 1996—
  - (1) the [Administrator](/usc/16/838a.md?p=a) shall establish rates and charges on the basis that—
    - (A) the principal amount of an old capital investment shall be no greater than the new principal amount established under [subsection (b)](#b);
    - (B) the interest rate applicable to the unpaid balance of the new principal amount of an old capital investment shall be no greater than the interest rate established under [subsection (c)](#c);
    - (C) any payment of principal of an old capital investment shall reduce the outstanding principal balance of the old capital investment in the amount of the payment at the time the payment is tendered; and
    - (D) any payment of interest on the unpaid balance of the new principal amount of an old capital investment shall be a credit against the appropriate interest account in the amount of the payment at the time the payment is tendered;
  - (2) apart from charges necessary to repay the new principal amount of an old capital investment as established under [subsection (b)](#b) and to pay the interest on the principal amount under [subsection (c)](#c), no amount may be charged for return to the United States Treasury as repayment for or return on an old capital investment, whether by way of rate, rent, lease payment, assessment, user charge, or any other fee;
  - (3) amounts provided under [section 1304 of title 31](/usc/31/1304.md) shall be available to pay, and shall be the sole source for payment of, a judgment against or settlement by the [Administrator](/usc/16/838a.md?p=a) or the United States on a claim for a breach of the contract provisions required by this Part;[^1] and
  - (4) the contract provisions specified in this Part[^1] do not—
    - (A) preclude the [Administrator](/usc/16/838a.md?p=a) from recovering, through rates or other means, any tax that is generally imposed on electric utilities in the United States, or
    - (B) affect the [Administrator](/usc/16/838a.md?p=a)’s authority under applicable law, including [section 839e(g) of this title](/usc/16/839e.md?p=g), to—
      - (i) allocate costs and benefits, including but not limited to [fish and wildlife](/usc/16/3102.md?p=17) costs, to rates or resources, or
      - (ii) design rates.
- (j) **Savings provisions—**
  - (1) **Repayment—** This section does not affect the obligation of the [Administrator](/usc/16/838a.md?p=a) to repay the principal associated with each capital investment, and to pay interest on the principal, only from the “[Administrator](/usc/16/838a.md?p=a)’s net proceeds,” as defined in [section 838k(b) of this title](/usc/16/838k.md?p=b).
  - (2) **Payment of capital investment—** Except as provided in [subsection (e)](#e), this section does not affect the authority of the [Administrator](/usc/16/838a.md?p=a) to pay all or a portion of the principal amount associated with a capital investment before the repayment date for the principal amount.

## Footnotes

[^1]: So in original. Probably should be “section;” or “section”.

## Source credit

(Pub. L. 104–134, title III, § 3201, Apr. 26, 1996, 110 Stat. 1321–350.)

## Notes

### Editorial Notes

### Codification

Section was enacted as part of the Omnibus Consolidated Rescissions and Appropriations Act of 1996, and not as part of the Federal Columbia River Transmission System Act which comprises this chapter.

Section is comprised of section 3201 of Pub. L. 104–134. Subsec. (h) of section 3201 of Pub. L. 104–134 amended section 6 of Pub. L. 103–436, which is not classified to the Code.