§16511. Definitions — Inbound Citations
42 U.S.C. § 16511
Cited by 98 provisions in release 119-102.
Citations to 42 U.S.C. § 16511 as a whole
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(e) Not later than 120 days after February 15, 2007, and annually thereafter, the Secretary of Energy shall transmit to the Committees on Appropriations of the House of Representatives and the Senate a report containing a summary of all activities under title XVII of the Energy Policy Act of 2005 [42 U.S.C. 16511 et seq.], beginning in fiscal year 2007, with a listing of responses to loan guarantee solicitations under such title, describing the technologies, amount of loan guarantee sought, and the applicants’ assessment of risk.
Citations to §16511(1)(A)
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(2) employ new or significantly improved technologies as compared to commercial technologies in service in the United States at the time the guarantee is issued, including projects that employ elements of commercial technologies in combination with new or significantly improved technologies.
Citations to §16511(3)
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(B) The Secretary shall base a determination of whether there is reasonable prospect of repayment under subparagraph (A) on a comprehensive evaluation of whether the borrower has a reasonable prospect of repaying the guaranteed obligation for the eligible project, including, as applicable, an evaluation of—(i) the strength of the contractual terms of the eligible project (if commercially reasonably available);(ii) the forecast of noncontractual cash flows supported by market projections from reputable sources, as determined by the Secretary;(iii) cash sweeps and other structure enhancements;(iv) the projected financial strength of the borrower—(I) at the time of loan close; and(II) throughout the loan term after the project is completed;(v) the financial strength of the investors and strategic partners of the borrower, if applicable; and
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(i) the strength of the contractual terms of the eligible project (if commercially reasonably available);
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(3) conduct outreach to encourage participation of supporting finance institutions and private lenders in eligible projects and projects described in section 16517(a) of this title.
Citations to §16511(4)(A)
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(a) Except for division C of Public Law 108–324 [15 U.S.C. 720 et seq.], the Secretary shall make guarantees under this or any other Act for projects, including projects receiving financial support or credit enhancements from a State energy financing institution, on such terms and conditions as the Secretary determines, after consultation with the Secretary of the Treasury, only in accordance with this section.
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(1) Except as provided in paragraph (2), the cost of a guarantee shall be paid by the Secretary using an appropriation made for the cost of the guarantee, subject to the availability of such an appropriation.
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(2) If sufficient appropriated funds to pay the cost of a guarantee are not available, then the guarantee shall not be made unless—(A) the Secretary has received from the borrower a payment in full for the cost of the guarantee and deposited the payment into the Treasury; or(B) a combination of one or more appropriations and one or more payments from the borrower under this subsection has been made that is sufficient to cover the cost of the guarantee.
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(B) a combination of one or more appropriations and one or more payments from the borrower under this subsection has been made that is sufficient to cover the cost of the guarantee.
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(A) No guarantee, including a guarantee for a project receiving financial support or credit enhancements from a State energy financing institution, shall be made unless the Secretary determines that there is reasonable prospect of repayment of the principal and interest on the obligation by the borrower.
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(2) No guarantee shall be made unless the Secretary determines that the amount of the obligation (when combined with amounts available to the borrower from other sources) will be sufficient to carry out the project.
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(A) If a borrower defaults on the obligation (as defined in regulations promulgated by the Secretary and specified in the guarantee contract), the holder of the guarantee shall have the right to demand payment of the unpaid amount from the Secretary.
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(B) Within such period as may be specified in the guarantee or related agreements, the Secretary shall pay to the holder of the guarantee the unpaid interest on, and unpaid principal of the obligation as to which the borrower has defaulted, unless the Secretary finds that there was no default by the borrower in the payment of interest or principal or that the default has been remedied.
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(A) If the Secretary makes a payment under paragraph (1), the Secretary shall be subrogated to the rights of the recipient of the payment as specified in the guarantee or related agreements including, where appropriate, the authority (notwithstanding any other provision of law) to—(i) complete, maintain, operate, lease, or otherwise dispose of any property acquired pursuant to such guarantee or related agreements; or
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(i) complete, maintain, operate, lease, or otherwise dispose of any property acquired pursuant to such guarantee or related agreements; or
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(1) The Secretary shall charge, and collect on or after the date of the financial close of an obligation, a fee for a guarantee in an amount that the Secretary determines is sufficient to cover applicable administrative expenses (including any costs associated with third-party consultants engaged by the Secretary).
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(3) Notwithstanding paragraph (1) and subject to the availability of appropriations, the Secretary may reduce the amount of a fee for a guarantee under this subsection.
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(j) The full faith and credit of the United States is pledged to the payment of all guarantees issued under this section with respect to principal and interest.
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(3) If the Secretary makes a guarantee the financial terms and conditions of which are not consistent with the written analysis required under this subsection, not later than 30 days after making such guarantee, the Secretary shall submit to the Committee on Energy and Commerce and the Committee on Science, Space, and Technology of the House of Representatives, and the Committee on Energy and Natural Resources of the Senate, a written explanation of any material inconsistencies.
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(1) If the Secretary does not make a final decision on an application for a guarantee under this subchapter by the date that is 180 days after receipt of the application by the Secretary, the applicant may request, on or after that date and not more than once every 60 days thereafter until a final decision is made, that the Secretary provide to the applicant a response described in paragraph (2).
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(1) provide assistance with the completion of applications for a guarantee under this subchapter;
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(q) Not later than 2 years after December 27, 2020, and every 3 years thereafter, the Secretary shall submit to Congress a report on the status of applications for, and projects receiving, guarantees under this title, including—(1) a list of such projects, including the guarantee amount, construction status, and financing partners of each such project;(2) the status of each such project’s loan repayment, including interest paid and future repayment projections;(3) an estimate of the air pollutant or greenhouse gas emissions avoided or reduced from each such project;(4) data regarding the number of direct and indirect jobs retained, restored, or created by such projects;(5) identification of—(A) technologies deployed by projects that have received guarantees that have subsequently been deployed commercially without guarantees; and(B) novel technologies that have been deployed by such projects and deployed in the commercial energy market;(6) the number of new projects projected to receive a guarantee under this subchapter during the next 2 years and the aggregate guarantee amount;(7) the number of outreach engagements conducted with potential applicants;(8) the number of applications received and currently pending for each open solicitation; and(9) any other metrics the Secretary finds appropriate.
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(1) a list of such projects, including the guarantee amount, construction status, and financing partners of each such project;
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(A) technologies deployed by projects that have received guarantees that have subsequently been deployed commercially without guarantees; and
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(1) To be eligible for a guarantee under this subchapter, a project receiving financial support or credit enhancements from a State energy financing institution—(A) shall meet the requirements of section 16513(a)(1) of this title; and(B) shall not be required to meet the requirements of section 16513(a)(2) of this title.
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(2) In carrying out a project receiving a loan guarantee under this subchapter, State energy financing institutions may enter into partnerships with private entities, Tribal entities, and Alaska Native corporations.
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(a) The Secretary may make guarantees under this section only for projects that—(1) avoid, reduce, utilize, or sequester air pollutants or anthropogenic emissions of greenhouse gases; and(2) employ new or significantly improved technologies as compared to commercial technologies in service in the United States at the time the guarantee is issued, including projects that employ elements of commercial technologies in combination with new or significantly improved technologies.
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(2) employ new or significantly improved technologies as compared to commercial technologies in service in the United States at the time the guarantee is issued, including projects that employ elements of commercial technologies in combination with new or significantly improved technologies.
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(1) Renewable energy systems.(2) Advanced fossil energy technology (including coal gasification meeting the criteria in subsection (d)).(3) Hydrogen fuel cell technology for residential, industrial, or transportation applications.(4) Advanced nuclear energy facilities, including manufacturing of nuclear supply components for advanced nuclear reactors.(5) Carbon capture, utilization, and sequestration practices and technologies, including—(A) agricultural and forestry practices that store and sequester carbon; and(B) synthetic technologies to remove carbon from the air and oceans.(6) Efficient electrical generation, transmission, and distribution technologies.(7) Efficient end-use energy technologies.(8) Production facilities for the manufacture of fuel efficient vehicles or parts of those vehicles, including electric drive vehicles and advanced diesel vehicles.(9) Pollution control equipment.(10) Refineries, meaning facilities at which crude oil is refined into gasoline.(11) Energy storage technologies for residential, industrial, transportation, and power generation applications.(12) Technologies or processes for reducing greenhouse gas emissions from industrial applications, including iron, steel, cement, and ammonia production, hydrogen production, and the generation of high-temperature heat.(13) Projects that increase the domestically produced supply of critical minerals (as defined in section 1606(a) of title 30), including through the production, processing, manufacturing, recycling, or fabrication of mineral alternatives.
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(c) The Secretary may make guarantees for the following gasification projects:(1) Integrated gasification combined cycle plants meeting the emission levels under subsection (d), including—(A) projects for the generation of electricity—(i) for which, during the term of the guarantee—(I) coal, biomass, petroleum coke, or a combination of coal, biomass, and petroleum coke will account for at least 65 percent of annual heat input; and(II) electricity will account for at least 65 percent of net useful annual energy output;(ii) that have a design that is determined by the Secretary to be capable of accommodating the equipment likely to be necessary to capture the carbon dioxide that would otherwise be emitted in flue gas from the plant;(iii) that have an assured revenue stream that covers project capital and operating costs (including servicing all debt obligations covered by the guarantee) that is approved by the Secretary and the relevant State public utility commission; and(iv) on which construction commences not later than the date that is 3 years after the date of the issuance of the guarantee;(B) a project to produce energy from coal (of not more than 13,000 Btu/lb and mined in the western United States) using appropriate advanced integrated gasification combined cycle technology that minimizes and offers the potential to sequester carbon dioxide emissions and that—(i) may include repowering of existing facilities;(ii) may be built in stages;(iii) shall have a combined output of at least 100 megawatts;(iv) shall be located in a western State at an altitude greater than 4,000 feet; and(v) shall demonstrate the ability to use coal with an energy content of not more than 9,000 Btu/lb;(C) a project located in a taconite-producing region of the United States that is entitled under the law of the State in which the plant is located to enter into a long-term contract approved by a State public utility commission to sell at least 450 megawatts of output to a utility;(D) facilities that—(i) generate one or more hydrogen-rich and carbon monoxide-rich product streams from the gasification of coal or coal waste; and(ii) use those streams to facilitate the production of ultra clean premium fuels through the Fischer-Tropsch process; and(E) a project to produce energy and clean fuels, using appropriate coal liquefaction technology, from Western bituminous or subbituminous coal, that—(i) is owned by a State government; and(ii) may include tribal and private coal resources.(2) Facilities that gasify coal, biomass, or petroleum coke in any combination to produce synthesis gas for use as a fuel or feedstock and for which electricity accounts for less than 65 percent of the useful energy output of the facility.(3) The Secretary is encouraged to make loan guarantees under this subchapter available for petroleum coke gasification projects.(4) Notwithstanding any other provision of law, funds awarded under the Department of Energy’s Clean Coal Power Initiative for Fischer-Tropsch coal-to-oil liquefaction projects may be used to finance the cost of loan guarantees for projects awarded such funds.
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(i) for which, during the term of the guarantee—(I) coal, biomass, petroleum coke, or a combination of coal, biomass, and petroleum coke will account for at least 65 percent of annual heat input; and(II) electricity will account for at least 65 percent of net useful annual energy output;
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(iii) that have an assured revenue stream that covers project capital and operating costs (including servicing all debt obligations covered by the guarantee) that is approved by the Secretary and the relevant State public utility commission; and
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(iv) on which construction commences not later than the date that is 3 years after the date of the issuance of the guarantee;
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(3) The Secretary is encouraged to make loan guarantees under this subchapter available for petroleum coke gasification projects.
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(4) Notwithstanding any other provision of law, funds awarded under the Department of Energy’s Clean Coal Power Initiative for Fischer-Tropsch coal-to-oil liquefaction projects may be used to finance the cost of loan guarantees for projects awarded such funds.
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(f) Notwithstanding subsection (a)(2), the Secretary may, if regional variation significantly affects the deployment of a technology, make guarantees under this subchapter for up to 6 projects that employ the same or similar technology as another project, provided no more than 2 projects that use the same or a similar technology are located in the same region of the United States.
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(a) There are authorized to be appropriated such sums as are necessary to provide the cost of guarantees under this subchapter.
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(b) The Department may use amounts awarded under the Clean Coal Power Initiative to carry out the project described in section 16513(c)(1)(C) of this title, on the request of the recipient of such award, for a loan guarantee, to the extent that the amounts have not yet been disbursed to, or have been repaid by, the recipient.
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(a) Notwithstanding section 101,1 subject to the Federal Credit Reform Act of 1990, as amended [2 U.S.C. 661 et seq.], commitments to guarantee loans under title XVII of the Energy Policy Act of 2005 [42 U.S.C. 16501 et seq.] shall not exceed a total principal amount, any part of which is to be guaranteed, of $4,000,000,000: Provided, That there are appropriated for the cost of the guaranteed loans such sums as are hereafter derived from amounts received from borrowers pursuant to section 16512(b)(2) of this title, to remain available until expended: Provided further, That the source of payments received from borrowers for the subsidy cost shall not be a loan or other debt obligation that is made or guaranteed by the Federal government.2 In addition, fees collected pursuant to section 16512(h) of this title in fiscal year 2007 shall be credited as offsetting collections to the Departmental Administration account for administrative expenses of the Loan Guarantee Program: Provided further, That the sum appropriated for administrative expenses for the Loan Guarantee Program shall be reduced by the amount of fees received during fiscal year 2007: Provided further, That any fees collected under section 16512(h) of this title in excess of the amount appropriated for administrative expenses shall not be available until appropriated.
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(b) No loan guarantees may be awarded under title XVII of the Energy Policy Act of 2005 [42 U.S.C. 16501 et seq.] until final regulations are issued that include—(1) programmatic, technical, and financial factors the Secretary will use to select projects for loan guarantees;(2) policies and procedures for selecting and monitoring lenders and loan performance; and(3) any other policies, procedures, or information necessary to implement title XVII of the Energy Policy Act of 2005.
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(1) programmatic, technical, and financial factors the Secretary will use to select projects for loan guarantees;
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(d) The Secretary of Energy shall promulgate final regulations for loan guarantees under title XVII of the Energy Policy Act of 2005 [42 U.S.C. 16501 et seq.] within 6 months of February 15, 2007.
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(e) Not later than 120 days after February 15, 2007, and annually thereafter, the Secretary of Energy shall transmit to the Committees on Appropriations of the House of Representatives and the Senate a report containing a summary of all activities under title XVII of the Energy Policy Act of 2005 [42 U.S.C. 16511 et seq.], beginning in fiscal year 2007, with a listing of responses to loan guarantee solicitations under such title, describing the technologies, amount of loan guarantee sought, and the applicants’ assessment of risk.
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(a) Notwithstanding section 16513 of this title, the Secretary may make guarantees, including refinancing, under this section only for projects that—(1) retool, repower, repurpose, or replace energy infrastructure that has ceased operations;(2) enable operating energy infrastructure to increase capacity or output; or(3) support or enable the provision of known or forecastable electric supply at time intervals necessary to maintain or enhance grid reliability or other system adequacy needs.
Citations to §16511(5)
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(3) The source of a payment received from a borrower under subparagraph (A) or (B) of paragraph (2) may not be a loan or other debt obligation that is made or guaranteed by the Federal Government.
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(A) No guarantee, including a guarantee for a project receiving financial support or credit enhancements from a State energy financing institution, shall be made unless the Secretary determines that there is reasonable prospect of repayment of the principal and interest on the obligation by the borrower.
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(B) The Secretary shall base a determination of whether there is reasonable prospect of repayment under subparagraph (A) on a comprehensive evaluation of whether the borrower has a reasonable prospect of repaying the guaranteed obligation for the eligible project, including, as applicable, an evaluation of—(i) the strength of the contractual terms of the eligible project (if commercially reasonably available);(ii) the forecast of noncontractual cash flows supported by market projections from reputable sources, as determined by the Secretary;(iii) cash sweeps and other structure enhancements;(iv) the projected financial strength of the borrower—(I) at the time of loan close; and(II) throughout the loan term after the project is completed;(v) the financial strength of the investors and strategic partners of the borrower, if applicable; and
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(2) No guarantee shall be made unless the Secretary determines that the amount of the obligation (when combined with amounts available to the borrower from other sources) will be sufficient to carry out the project.
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(3) The obligation shall be subject to the condition that the obligation, including any reorganization, restructuring, or termination thereof, shall not at any time be subordinate to other financing.
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(e) An obligation shall bear interest at a rate that does not exceed a level that the Secretary determines appropriate, taking into account the prevailing rate of interest in the private sector for similar loans and risks.
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(f) The term of an obligation shall require full repayment over a period not to exceed the lesser of—(1) 30 years; or(2) 90 percent of the projected useful life of the physical asset to be financed by the obligation (as determined by the Secretary).
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(2) 90 percent of the projected useful life of the physical asset to be financed by the obligation (as determined by the Secretary).
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(A) If a borrower defaults on the obligation (as defined in regulations promulgated by the Secretary and specified in the guarantee contract), the holder of the guarantee shall have the right to demand payment of the unpaid amount from the Secretary.
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(B) Within such period as may be specified in the guarantee or related agreements, the Secretary shall pay to the holder of the guarantee the unpaid interest on, and unpaid principal of the obligation as to which the borrower has defaulted, unless the Secretary finds that there was no default by the borrower in the payment of interest or principal or that the default has been remedied.
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(C) Nothing in this subsection precludes any forbearance by the holder of the obligation for the benefit of the borrower which may be agreed upon by the parties to the obligation and approved by the Secretary.
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(3) With respect to any obligation guaranteed under this section, the Secretary may enter into a contract to pay, and pay, holders of the obligation, for and on behalf of the borrower, from funds appropriated for that purpose, the principal and interest payments which become due and payable on the unpaid balance of the obligation if the Secretary finds that—(i) the borrower is unable to meet the payments and is not in default;(ii) it is in the public interest to permit the borrower to continue to pursue the purposes of the project; and(iii) the probable net benefit to the Federal Government in paying the principal and interest will be greater than that which would result in the event of a default;(B) the amount of the payment that the Secretary is authorized to pay shall be no greater than the amount of principal and interest that the borrower is obligated to pay under the agreement being guaranteed; and
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(A) If the borrower defaults on an obligation, the Secretary shall notify the Attorney General of the default.
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(i) such assets of the defaulting borrower as are associated with the obligation; or
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(ii) any other security pledged to secure the obligation.
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(1) The Secretary shall charge, and collect on or after the date of the financial close of an obligation, a fee for a guarantee in an amount that the Secretary determines is sufficient to cover applicable administrative expenses (including any costs associated with third-party consultants engaged by the Secretary).
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(iii) that have an assured revenue stream that covers project capital and operating costs (including servicing all debt obligations covered by the guarantee) that is approved by the Secretary and the relevant State public utility commission; and
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(a) Notwithstanding section 101,1 subject to the Federal Credit Reform Act of 1990, as amended [2 U.S.C. 661 et seq.], commitments to guarantee loans under title XVII of the Energy Policy Act of 2005 [42 U.S.C. 16501 et seq.] shall not exceed a total principal amount, any part of which is to be guaranteed, of $4,000,000,000: Provided, That there are appropriated for the cost of the guaranteed loans such sums as are hereafter derived from amounts received from borrowers pursuant to section 16512(b)(2) of this title, to remain available until expended: Provided further, That the source of payments received from borrowers for the subsidy cost shall not be a loan or other debt obligation that is made or guaranteed by the Federal government.2 In addition, fees collected pursuant to section 16512(h) of this title in fiscal year 2007 shall be credited as offsetting collections to the Departmental Administration account for administrative expenses of the Loan Guarantee Program: Provided further, That the sum appropriated for administrative expenses for the Loan Guarantee Program shall be reduced by the amount of fees received during fiscal year 2007: Provided further, That any fees collected under section 16512(h) of this title in excess of the amount appropriated for administrative expenses shall not be available until appropriated.
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(d) Notwithstanding section 16512(f) of this title, the term of an obligation shall require full repayment over a period not to exceed 30 years.
Citations to §16511(6)
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(iii) that have an assured revenue stream that covers project capital and operating costs (including servicing all debt obligations covered by the guarantee) that is approved by the Secretary and the relevant State public utility commission; and
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(iv) shall be located in a western State at an altitude greater than 4,000 feet; and
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(C) a project located in a taconite-producing region of the United States that is entitled under the law of the State in which the plant is located to enter into a long-term contract approved by a State public utility commission to sell at least 450 megawatts of output to a utility;
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(i) is owned by a State government; and
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(d) In addition to any other applicable Federal or State emission limitation requirements, a project shall attain at least—(1) total sulfur dioxide emissions in flue gas from the project that do not exceed 0.05 lb/MMBtu;(2) a 90-percent removal rate (including any fuel pretreatment) of mercury from the coal-derived gas, and any other fuel, combusted by the project;(3) total nitrogen oxide emissions in the flue gas from the project that do not exceed 0.08 lb/MMBtu; and(4) total particulate emissions in the flue gas from the project that do not exceed 0.01 lb/MMBtu.
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(a) The Secretary shall make a grant to an organization of oil and gas producing States, specifically those containing significant numbers of marginal oil and natural gas wells, for conducting an annual study of low-volume natural gas reservoirs. Such organization shall work with the State geologist of each State being studied.
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(6) produce maps and literature to disseminate to States to promote conservation of natural gas reserves; and
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(1) the procedures currently used by electric utilities to perform economic dispatch;(2) identifying possible revisions to those procedures to improve the ability of nonutility generation resources to offer their output for sale for the purpose of inclusion in economic dispatch; and(3) the potential benefits to residential, commercial, and industrial electricity consumers nationally and in each state1 if economic dispatch procedures were revised to improve the ability of nonutility generation resources to offer their output for inclusion in economic dispatch.
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(3) the potential benefits to residential, commercial, and industrial electricity consumers nationally and in each state1 if economic dispatch procedures were revised to improve the ability of nonutility generation resources to offer their output for inclusion in economic dispatch.
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(c) Not later than 90 days after August 8, 2005, and on a yearly basis following, the Secretary shall submit a report to Congress and the States on the results of the study conducted under subsection (a), including recommendations to Congress and the States for any suggested legislative or regulatory changes.
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(B) an apprenticeship program that was registered with the Department of Labor or a State apprenticeship agency before the date on which the eligible entity applies for the grant under subsection (d);
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(4) plans to use the grant to carry out the pre-apprenticeship program or apprenticeship program with an entity that receives State funding or is operated by a State agency; and
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(iv) a local workforce development board or State workforce development board;
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(B) with respect to a pre-apprenticeship program, is a local educational agency, a secondary school, an area career and technical education school, a provider of adult education, a State workforce development board, a local workforce development board, or a community-based organization, that administers the program with any required coordination and necessary approvals from the Secretary of Labor or a State department of labor.
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(18) The term “State workforce development board” has the meaning given the term “State board” in section 3102 of title 29.
Citations to §16511(7)(A)
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(a) Except for division C of Public Law 108–324 [15 U.S.C. 720 et seq.], the Secretary shall make guarantees under this or any other Act for projects, including projects receiving financial support or credit enhancements from a State energy financing institution, on such terms and conditions as the Secretary determines, after consultation with the Secretary of the Treasury, only in accordance with this section.
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(A) No guarantee, including a guarantee for a project receiving financial support or credit enhancements from a State energy financing institution, shall be made unless the Secretary determines that there is reasonable prospect of repayment of the principal and interest on the obligation by the borrower.
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(1) To be eligible for a guarantee under this subchapter, a project receiving financial support or credit enhancements from a State energy financing institution—(A) shall meet the requirements of section 16513(a)(1) of this title; and(B) shall not be required to meet the requirements of section 16513(a)(2) of this title.
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(2) In carrying out a project receiving a loan guarantee under this subchapter, State energy financing institutions may enter into partnerships with private entities, Tribal entities, and Alaska Native corporations.