--- kind: "section" citation: "42 U.S.C. § 16421" title: "42" title_heading: "The Public Health and Welfare" number: "16421" heading: "Third-party finance" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/42/16421" units: - "Chapter 149 — National Energy Policy and Programs" - "Subchapter XII — Electricity" - "Part A — Transmission Infrastructure Modernization" --- # §16421. Third-party finance - (a) **Existing facilities—** The [Secretary](/usc/42/15801.md?p=4), acting through the [Administrator](/usc/42/15951.md?p=b-1) of the Western Area Power Administration (hereinafter in this section referred to as “WAPA”), or through the [Administrator](/usc/42/15951.md?p=b-1) 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](/usc/42/16371.md?p=12)”) needed to upgrade existing transmission facilities owned by SWPA or WAPA if the [Secretary](/usc/42/15801.md?p=4), in consultation with the applicable [Administrator](/usc/42/15951.md?p=b-1), determines that the proposed [Project](/usc/42/16371.md?p=12)— - (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)](/usc/16/824p.md?p=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](/usc/16/791a.md) 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](/usc/42/15801.md?p=4), 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](/usc/42/16371.md?p=12)”) located within any [State](/usc/42/15951.md?p=b-2) in which WAPA or SWPA operates if the [Secretary](/usc/42/15801.md?p=4), in consultation with the applicable [Administrator](/usc/42/15951.md?p=b-1), determines that the proposed [Project](/usc/42/16371.md?p=12)— - (1) - (A) is located in an area designated under section 216(a) of the Federal Power Act [[16 U.S.C. 824p(a)](/usc/16/824p.md?p=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](/usc/16/791a.md) 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](/usc/42/16371.md?p=12) under subsection [(a)](#a) or [(b)](#b), the [Secretary](/usc/42/15801.md?p=4) may accept and use funds contributed by another entity for the purpose of carrying out the [Project](/usc/42/16371.md?p=12). - (2) **Availability—** The contributed funds shall be available for expenditure for the purpose of carrying out the [Project](/usc/42/16371.md?p=12)— - (A) without fiscal year limitation; and - (B) as if the funds had been appropriated specifically for that [Project](/usc/42/16371.md?p=12). - (3) **Allocation of costs—** In carrying out a [Project](/usc/42/16371.md?p=12) under subsection [(a)](#a) or [(b)](#b), any costs of the [Project](/usc/42/16371.md?p=12) not paid for by contributions from another entity shall be collected through rates charged to [customers](/usc/42/7275.md?p=5) using the new transmission capability provided by the [Project](/usc/42/16371.md?p=12) and allocated equitably among these [project](/usc/42/16371.md?p=12) beneficiaries using the new transmission capability. - (d) **Relationship to other laws—** Nothing in this section affects any requirement of— - (1) any Federal environmental law, including the National Environmental Policy Act of 1969 ([42 U.S.C. 4321](/usc/42/4321.md) et seq.); - (2) any Federal or [State](/usc/42/15951.md?p=b-2) 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](/usc/42/15951.md?p=b-1) in the utilization of other authority delegated to the [Administrator](/usc/42/15951.md?p=b-1) of WAPA or SWPA. - (f) **Secretarial determinations—** Any determination made pursuant to subsections[^1] (a) or (b) shall be based on findings by the [Secretary](/usc/42/15801.md?p=4) using the best available data. - (g) **Maximum funding amount—** The [Secretary](/usc/42/15801.md?p=4) shall not accept and use more than $100,000,000 under [subsection (c)(1)](#c-1) for the period encompassing fiscal years 2006 through 2015. ## Footnotes [^1]: So in original. Probably should be “subsection”. ## Source credit (Pub. L. 109–58, title XII, § 1222, Aug. 8, 2005, 119 Stat. 952.) ## Notes ### 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 Short Title note set out under section 4321 of this title and Tables. ### Statutory Notes and Related Subsidiaries ### Short Title For short title 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.