---
kind: "section"
citation: "42 U.S.C. § 16421a"
title: "42"
title_heading: "The Public Health and Welfare"
number: "16421a"
heading: "Western Area Power Administration borrowing authority"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/16421a"
units:
  - "Chapter 149 — National Energy Policy and Programs"
  - "Subchapter XII — Electricity"
  - "Part A — Transmission Infrastructure Modernization"
---

# §16421a. Western Area Power Administration borrowing authority

- (a) **Definitions—** In this section:
  - (1) **Administrator—** The term “[Administrator](/usc/42/15951.md?p=b-1)” means the [Administrator](/usc/42/15951.md?p=b-1) of the Western Area Power Administration.
  - (2) **Secretary—** The term “[Secretary](/usc/42/15801.md?p=4)” means the [Secretary](/usc/42/15801.md?p=4) of the Treasury.
- (b) **Authority—**
  - (1) **In general—** Notwithstanding any other provision of law, subject to paragraphs [(2)](#b-2) through [(5)](#b-5)—
    - (A) the Western Area Power Administration may borrow funds from the Treasury; and
    - (B) the [Secretary](/usc/42/15801.md?p=4) shall, without further appropriation and without fiscal year limitation, loan to the Western Area Power Administration, on such terms as may be fixed by the [Administrator](/usc/42/15951.md?p=b-1) and the [Secretary](/usc/42/15801.md?p=4), such sums (not to exceed, in the aggregate (including deferred interest), $3,250,000,000 in outstanding repayable balances at any one time) as, in the judgment of the [Administrator](/usc/42/15951.md?p=b-1), are from time to time required for the purpose of—
      - (i) constructing, financing, facilitating, planning, operating, maintaining, or studying [construction](/usc/42/300s–3.md?p=7) of new or upgraded electric power transmission lines and related facilities with at least one terminus within the area served by the Western Area Power Administration; and
      - (ii) delivering or facilitating the delivery of power generated by renewable energy resources constructed or reasonably expected to be constructed after February 17, 2009.
  - (2) **Interest—** The rate of interest to be charged in connection with any loan made pursuant to this subsection shall be fixed by the [Secretary](/usc/42/15801.md?p=4), taking into consideration market yields on outstanding marketable obligations of the United States of comparable maturities as of the date of the loan.
  - (3) **Refinancing—** The Western Area Power Administration may refinance loans taken pursuant to this section within the Treasury.
  - (4) **Participation—** The [Administrator](/usc/42/15951.md?p=b-1) may permit other entities to participate in the financing, [construction](/usc/42/300s–3.md?p=7) and ownership [projects](/usc/42/16371.md?p=12) financed under this section.
  - (5) **Congressional review of disbursement—** Effective upon February 17, 2009, the [Administrator](/usc/42/15951.md?p=b-1) shall have the authority to have utilized $1,750,000,000 at any one time. If the [Administrator](/usc/42/15951.md?p=b-1) seeks to borrow funds above $1,750,000,000, the funds will be disbursed unless there is enacted, within 90 calendar days of the first such request, a joint resolution that rescinds the remainder of the balance of the borrowing authority provided in this section.
- (c) **Transmission line and related facility projects—**
  - (1) **In general—** For repayment purposes, each transmission line and related facility [project](/usc/42/16371.md?p=12) in which the Western Area Power Administration participates pursuant to this section shall be treated as separate and distinct from—
    - (A) each other such [project](/usc/42/16371.md?p=12); and
    - (B) all other Western Area Power Administration power and transmission facilities.
  - (2) **Proceeds—** The Western Area Power Administration shall apply the proceeds from the use of the transmission capacity from an individual [project](/usc/42/16371.md?p=12) under this section to the repayment of the principal and interest of the loan from the Treasury attributable to that [project](/usc/42/16371.md?p=12), after reserving such funds as the Western Area Power Administration determines are necessary—
    - (A) to pay for any ancillary services that are provided; and
    - (B) to meet the costs of operating and maintaining the new [project](/usc/42/16371.md?p=12) from which the revenues are derived.
  - (3) **Source of revenue—** Revenue from the use of [projects](/usc/42/16371.md?p=12) under this section shall be the only source of revenue for—
    - (A) repayment of the associated loan for the [project](/usc/42/16371.md?p=12); and
    - (B) payment of expenses for ancillary services and operation and maintenance.
  - (4) **Limitation on authority—** Nothing in this section confers on the [Administrator](/usc/42/15951.md?p=b-1) any additional authority or obligation to provide ancillary services to users of transmission facilities developed under this section.
  - (5) **Treatment of certain revenues—** Revenue from ancillary services provided by existing Federal power systems to users of transmission [projects](/usc/42/16371.md?p=12) funded pursuant to this section shall be treated as revenue to the existing power system that provided the ancillary services.
- (d) **Certification—**
  - (1) **In general—** For each [project](/usc/42/16371.md?p=12) in which the Western Area Power Administration participates pursuant to this section, the [Administrator](/usc/42/15951.md?p=b-1) shall certify, prior to committing funds for any such [project](/usc/42/16371.md?p=12), that—
    - (A) the [project](/usc/42/16371.md?p=12) is in the public interest;
    - (B) the [project](/usc/42/16371.md?p=12) will not adversely impact system reliability or operations, or other statutory obligations; and
    - (C) it is reasonable to expect that the proceeds from the [project](/usc/42/16371.md?p=12) shall be adequate to make repayment of the loan.
  - (2) **Forgiveness of balances—**
    - (A) **In general—** If, at the end of the useful life of a [project](/usc/42/16371.md?p=12), there is a remaining balance owed to the Treasury under this section, the balance shall be forgiven.
    - (B) **Unconstructed projects—** Funds expended to study [projects](/usc/42/16371.md?p=12) that are considered pursuant to this section but that are not constructed shall be forgiven.
    - (C) **Notification—** The [Administrator](/usc/42/15951.md?p=b-1) shall notify the [Secretary](/usc/42/15801.md?p=4) of such amounts as are to be forgiven under this paragraph.
- (e) **Public processes—**
  - (1) **Policies and practices—** Prior to requesting any loans under this section, the [Administrator](/usc/42/15951.md?p=b-1) shall use a public process to develop [practices](/usc/42/17061.md?p=19) and policies that implement the authority granted by this section.
  - (2) **Requests for interest—** In the course of selecting potential [projects](/usc/42/16371.md?p=12) to be funded under this section, the [Administrator](/usc/42/15951.md?p=b-1) shall seek Requests For Interest from entities interested in identifying potential [projects](/usc/42/16371.md?p=12) through one or more notices published in the Federal Register.

## Source credit

(Pub. L. 98–381, title III, § 301, as added Pub. L. 111–5, div. A, title IV, § 402, Feb. 17, 2009, 123 Stat. 141.)

## Notes

### Editorial Notes

### Codification

Section was enacted as part of the Hoover Power Plant Act of 1984, and not as part of the Electricity Modernization Act of 2005, which comprises this subchapter, or the Energy Policy Act of 2005, which comprises this chapter.