Sec. 40401. Department of Energy loan programs

1,761 words·~8 min read·/bill/117/hr/3684/eas/section-40401

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Section 1702(d)(1) of the Energy Policy Act of 2005 ( 42 U.S.C. 16512(d)(1) ) is amended— by striking the paragraph designation and heading and all that follows through No guarantee and inserting the following: No guarantee ; and by adding at the end the following: 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— the strength of the contractual terms of the eligible project (if commercially reasonably available); the forecast of noncontractual cash flows supported by market projections from reputable sources, as determined by the Secretary; cash sweeps and other structure enhancements; the projected financial strength of the borrower— at the time of loan close; and throughout the loan term after the project is completed; the financial strength of the investors and strategic partners of the borrower, if applicable; and other financial metrics and analyses that are relied on by the private lending community and nationally recognized credit rating agencies, as determined appropriate by the Secretary. . Section 1703(b) of the Energy Policy Act of 2005 ( 42 U.S.C. 16513(b) ) is amended by adding at the end the following: Projects that increase the domestically produced supply of critical minerals (as defined in section 7002(a) of the Energy Act of 2020 ( 30 U.S.C. 1606(a) ), including through the production, processing, manufacturing, recycling, or fabrication of mineral alternatives. . Amounts appropriated to the Department of Energy before the date of enactment of this Act shall not be made available for the cost of loan guarantees made under paragraph

(13)of section 1703(b) of the Energy Policy Act of 2005 ( 42 U.S.C. 16513(b) ). Amounts made available to the Department of Energy for commitments to guarantee loans under section 1703 of the Energy Policy Act of 2005 ( 42 U.S.C. 16513 ) before the date of enactment of this Act shall not be made available for commitments to guarantee loans for projects described in paragraph

(13)of section 1703(b) of the Energy Policy Act of 2005 ( 42 U.S.C. 16513(b) ). Section 1702 of the Energy Policy Act of 2005 ( 42 U.S.C. 16512 ) is amended by adding at the end the following: For each project selected for a guarantee under this title, the Secretary shall certify that political influence did not impact the selection of the project. . Section 136(a)(1) of the Energy Independence and Security Act of 2007 ( 42 U.S.C. 17013(a)(1) ) is amended— in subparagraph (C), by striking the period at the end and inserting a semicolon; by redesignating subparagraphs

(A)through

(C)as clauses

(i)through (iii), respectively, and indenting appropriately; in the matter preceding clause

(i)(as so redesignated), by striking means an ultra and inserting the following: means— an ultra ; and by adding at the end the following: a medium duty vehicle or a heavy duty vehicle that exceeds 125 percent of the greenhouse gas emissions and fuel efficiency standards established by the final rule of the Environmental Protection Agency entitled Greenhouse Gas Emissions and Fuel Efficiency Standards for Medium- and Heavy-Duty Engines and Vehicles—Phase 2 (81 Fed. Reg. 73478 (October 25, 2016)); a train or locomotive; a maritime vessel; an aircraft; and hyperloop technology. . Section 136(d) of the Energy Independence and Security Act of 2007 ( 42 U.S.C. 17013(d) ) is amended— by striking paragraph

(3)and inserting the following: The Secretary shall select eligible projects to receive loans under this subsection if the Secretary determines that— the loan recipient— has a reasonable prospect of repaying the principal and interest on the loan; will provide sufficient information to the Secretary for the Secretary to ensure that the qualified investment is expended efficiently and effectively; and has met such other criteria as may be established and published by the Secretary; and the amount of the loan (when combined with amounts available to the loan recipient from other sources) will be sufficient to carry out the project. The Secretary shall base a determination of whether there is a reasonable prospect of repayment of the principal and interest on a loan under subparagraph (A)(i)(I) on a comprehensive evaluation of whether the loan recipient has a reasonable prospect of repaying the principal and interest, including, as applicable, an evaluation of— the strength of the contractual terms of the eligible project (if commercially reasonably available); the forecast of noncontractual cash flows supported by market projections from reputable sources, as determined by the Secretary; cash sweeps and other structure enhancements; the projected financial strength of the loan recipient— at the time of loan close; and throughout the loan term after the project is completed; the financial strength of the investors and strategic partners of the loan recipient, if applicable; and other financial metrics and analyses that are relied on by the private lending community and nationally recognized credit rating agencies, as determined appropriate by the Secretary. ; and in paragraph (4)— in subparagraph (C), by striking and after the semicolon; in subparagraph (D), by striking the period at the end and inserting ; and ; and by adding at the end the following: shall be subject to the condition that the loan is not subordinate to other financing. . Section 136 of the Energy Independence and Security Act of 2007 ( 42 U.S.C. 17013 ) is amended— in subsection

(b)by striking ultra efficient vehicle manufacturers, and component suppliers and inserting ultra efficient vehicle manufacturers, advanced technology vehicle manufacturers, and component suppliers ; in subsection (h)— in the subsection heading, by striking and inserting Automobile ; and Advanced technology vehicle in paragraph (1)(B), by striking automobiles, or components of automobiles and inserting advanced technology vehicles, or components of advanced technology vehicles ; by striking subsection (i); by redesignating subsection

(j)as subsection (i); and by adding at the end the following: In carrying out this section, the Secretary shall coordinate with relevant vehicle, bioenergy, and hydrogen and fuel cell demonstration project activities supported by the Department. In carrying out this section, the Secretary shall— provide assistance with the completion of applications for awards or loans under this section; and conduct outreach, including through conferences and online programs, to disseminate information on awards and loans under this section to potential applicants. Amounts appropriated to the Secretary before the date of enactment of this subsection shall not be available to the Secretary to provide awards under subsection

(b)or loans under subsection

(d)for the costs of activities that were not eligible for those awards or loans on the day before that date. Not later than 2 years after the date of enactment of this subsection, and every 3 years thereafter, the Secretary shall submit to Congress a report on the status of projects supported by a loan under this section, including— a list of projects receiving a loan under this section, including the loan amount and construction status of each project; the status of the loan repayment for each project, including future repayment projections; data regarding the number of direct and indirect jobs retained, restored, or created by financed projects; the number of new projects projected to receive a loan under this section in the next 2 years, including the projected aggregate loan amount over the next 2 years; evaluation of ongoing compliance with the assurances and commitments, and of the predictions, made by applicants pursuant to paragraphs

(2)and

(3)of subsection (d); the total number of applications received by the Department each year; and any other metrics the Secretary determines appropriate. . Section 136(d) of the Energy Independence and Security Act of 2007 ( 42 U.S.C. 17013(d) ) is amended by adding at the end the following: For each eligible project selected to receive a loan under this subsection, the Secretary shall certify that political influence did not impact the selection of the eligible project. . Section 1701 of the Energy Policy Act of 2005 ( 42 U.S.C. 16511 ) is amended by adding at the end the following: The term State has the meaning given the term in section 202 of the Energy Conservation and Production Act ( 42 U.S.C. 6802 ). The term State energy financing institution means a quasi-independent entity or an entity within a State agency or financing authority established by a State— to provide financing support or credit enhancements, including loan guarantees and loan loss reserves, for eligible projects; and to create liquid markets for eligible projects, including warehousing and securitization, or take other steps to reduce financial barriers to the deployment of existing and new eligible projects. The term State energy financing institution includes an entity or organization established to achieve the purposes described in clauses

(i)and

(ii)of subparagraph

(A)by an Indian Tribal entity or an Alaska Native Corporation. . Section 1702 of the Energy Policy Act of 2005 ( 42 U.S.C. 16512 ) is amended— in subsection (a), by inserting , including projects receiving financial support or credit enhancements from a State energy financing institution, after for projects ; in subsection (d)(1), by inserting , including a guarantee for a project receiving financial support or credit enhancements from a State energy financing institution, after No guarantee ; and by adding at the end the following: To be eligible for a guarantee under this title, a project receiving financial support or credit enhancements from a State energy financing institution— shall meet the requirements of section 1703(a)(1); and shall not be required to meet the requirements of section 1703(a)(2). In carrying out a project receiving a loan guarantee under this title, State energy financing institutions may enter into partnerships with private entities, Tribal entities, and Alaska Native corporations. Amounts appropriated to the Department of Energy before the date of enactment of this subsection shall not be available to be used for the cost of loan guarantees for projects receiving financing support or credit enhancements under this subsection. . Section 116 of the Alaska Natural Gas Pipeline Act ( 15 U.S.C. 720n ) is amended— in subsection (a)— in paragraph (1), by striking to West Coast States ; and in paragraph (3), in the second sentence, by striking to the continental United States ; in subsection (b)(1), in the first sentence, by striking to West Coast States ; and in subsection (g)(4)— by inserting by striking plants liquification plants and and inserting plants, liquification plants, and ; by striking to the West Coast ; and by striking to the continental United States .

Connectionstraces to 7

Traces to 7 documents

U.S. Code