42 U.S.C. § 8402 : US Code - Section 8402: Loans to assist powerplant acquisitions of air pollution control equipment

Search 42 U.S.C. § 8402 : US Code - Section 8402: Loans to assist powerplant acquisitions of air pollution control equipment

(a) Authority to make loans
The Secretary may, in accordance with the provisions of this
section and such rules and regulations as he shall prescribe, make
a loan (and may make a commitment to loan) to any person who owns
or operates any existing electric powerplant converting to coal or
other alternate fuel as its primary energy source after the
effective date of this chapter for the purpose of financing the
purchase and installation of one or more certified air pollution
control devices for such electric powerplant.
(b) Limitations and conditions
A loan made under this section shall -
(1) not exceed two-thirds of the cost of purchasing and
installing the certified air pollution control devices;
(2) have a maturity date not extending beyond 10 years after
the date such loan is made;
(3) bear interest at a rate not less than (A) a rate determined
by the Secretary of the Treasury, taking into consideration the
average market yield of outstanding Treasury obligations of
comparable maturity, plus (B) 1 percent;
(4) be made on the condition of payment to the Secretary of a
loan fee in an amount equal to (A) such insurance fee as the
Secretary determines is necessary to avoid a Federal revenue loss
under this section, plus (B) 1 percent of the loan amount; and
(5) be made only if the Secretary finds that -
(A) the financial assistance applied for is not otherwise
available from other Federal agencies;
(B) the applicant is unable to obtain sufficient funds on
reasonable terms and conditions from any other source;
(C) there is continued reasonable assurance of full repayment
of the principal, interest, and fees; and
(D) competition among private entities for the provision of
air pollution control devices for electric powerplants using
coal as their primary energy source to be assisted under this
section will be in no way limited or precluded.
(c) Allocation and priorities
In making loans or commitments to loan pursuant to this section,
the Secretary shall -
(1) allocate a minimum of 25 percent of available financial
assistance to existing small municipal and rural powerplants; and
(2) give priority consideration to requests for financial
assistance by existing electric powerplants subject to any
prohibition under subchapter III of this chapter (or under
section 792 of title 15).
(d) Definitions
For purposes of this section -
(1) The term "certified pollution control device" means a new
identifiable device which -
(A) is used, in connection with a powerplant, to abate or
control atmospheric pollution by removing, altering, disposing,
storing, or preventing the emission of pollutants;
(B) the appropriate State air pollution control agency has
certified to the Administrator of the Environmental Protection
Agency that such device is needed to meet, and is in conformity
with, State requirements for abatement or control of
atmospheric pollution or contamination;
(C) the Administrator of the Environmental Protection Agency
has certified to the Secretary as not duplicating or displacing
existing air pollution control devices with a remaining useful
economic life in excess of 2 years and as otherwise being in
furtherance of the requirements and purposes of the Clean Air
Act [42 U.S.C. 7401 et seq.];
(D) does not constitute or include a building, or a
structural component of a building, other than a building used
exclusively for the purposes set forth in subparagraph (A); and
(E) the construction of which began after the effective date
of this chapter.
(2) The term "small municipal or rural cooperative electric
powerplant" means an electric generating unit, which -
(A) by design is not capable of consuming fuel at a fuel heat
input rate in excess of a rate determined appropriate by the
Secretary by rule; and
(B) is owned or operated by a municipality or a rural
electric cooperative.
(e) Records
(1) The Secretary shall require all persons receiving financial
assistance under this section to keep such records as the Secretary
shall prescribe, including records which fully disclose the amount
and disposition by such recipient of the proceeds of such
assistance, the total cost of the project or undertaking in
connection with which such assistance was given or used, the amount
of that portion of the cost of the project or undertaking supplied
by other sources, and such other records as will facilitate an
effective audit.
(2) The Secretary and the Comptroller General of the United
States, or any of their duly authorized representatives, shall,
until the later of -
(A) the expiration of 3 years after completion of the project
or undertaking referred to in subsection (a) of this section, or
(B) full repayment of interest and principal on a loan made
under this section, occurs,
have access for the purposes of audit, evaluation, examination to
any books, documents, papers, and records of such receipts which in
the opinion of the Secretary or the Comptroller General may be
related or pertinent to such loan.
(f) Default
(1) If there is a default in any payment by the obligor of
interest or principal due under a loan entered into by the
Secretary under this section and such default has continued for 90
days, the Secretary has the right to demand payment of such unpaid
amount, unless the Secretary finds that such default has been
remedied, or a satisfactory plan to remedy such default by the
obligor has been accepted by the Secretary.
(2) In demanding payment of unpaid interest or principal by the
obligor, the Secretary has all rights specified in the loan-related
agreements with respect to any security which he held with respect
to the loan, including the authority to complete, maintain,
operate, lease, sell, or otherwise dispose of any property acquired
pursuant to such loan or related agreements.
(3) If there is a default under any loan, the Secretary shall
notify the Attorney General who shall take such action against the
obligator or other parties liable thereunder as is, in his
discretion, necessary to protect the interests of the United
States. The holder of such loan shall make available to the United
States all records and evidence necessary to prosecute any such
suit.
(g) Deposit of receipts
Amounts received by the Secretary as principal, interest, fees,
proceeds from security acquired following default, or other amounts
received by the Secretary in connection with loans made under this
section shall be paid into the Treasury of the United States as
miscellaneous receipts.
(h) Authorization of appropriation
There are hereby authorized to be appropriated to the Secretary
such sums as may be necessary to carry out the purposes of this
section, but not to exceed $400,000,000 for fiscal year 1979 and
$400,000,000 for fiscal year 1980. Authority granted to the
Secretary under subsection (a) of this section may be exercised
only to the extent as may be provided in advance in appropriation
Acts.