§ 1141. — Establishment of loan guaranty program.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 30USC1141]
TITLE 30--MINERAL LANDS AND MINING
CHAPTER 24--GEOTHERMAL ENERGY RESEARCH, DEVELOPMENT, AND DEMONSTRATION
SUBCHAPTER II--LOAN GUARANTIES
Sec. 1141. Establishment of loan guaranty program
(a) Congressional declaration of policy
It is the policy of the Congress to encourage and assist in the
commercial development of practicable means to produce useful energy
from geothermal resources with environmentally acceptable processes.
Accordingly, it is the policy of the Congress to facilitate such
commercial development by authorizing the Chairman of the Project to
designate an appropriate Federal agency to guarantee loans for such
purposes.
(b) Authorization of heads of designated agencies to guarantee loans
In order to encourage the commercial production of energy from
geothermal resources, the head of the designated agency is authorized
to, in consultation with the Secretary of the Treasury, guarantee, and
to enter into commitments to guarantee, lenders against loss of
principal or interest on loans made by such lenders to qualified
borrowers for the purposes of--
(1) the determination and evaluation of the resource base;
(2) research and development with respect to extraction and
utilization technologies;
(3) acquiring rights in geothermal resources;
(4) development, construction, and operation of facilities for
the demonstration or commercial production of energy using
geothermal resources; or
(5) construction and operation of a new commercial,
agricultural, or industrial structure or facility or modification
and operation of an existing commercial, agricultural, or industrial
structure or facility, when geothermal hot water or steam is to be
used within or by such structure or facility, or modification
thereto, for the purposes of space heating or cooling, industrial or
agricultural processes, onsite generation of electricity for use
other than for sale or resale in commerce, other commercial
applications, or combinations of applications separately eligible
under this subchapter for loan guarantee assistance.
(c) Extent of guarantee
Any guaranty under this subchapter shall apply only to so much of
the principal amount of any loan as does not exceed 75 percent of the
aggregate cost of the project with respect to which the loan is made,
except that any guarantee made for a loan to an electric, housing, or
other cooperative, or to a municipality (as defined in section 796(7) of
title 16), may apply to so much of the principal amount of the loan as
does not exceed 90 percent of the aggregate cost of the project. In
determining the aggregate cost of a project for purposes of the
preceding sentence, there shall be excluded the cost of constructing
electrical transmission lines to the extent that the cost of
constructing such lines exceeds 25 percent of the aggregate cost of the
project (as determined without regard to this sentence); except that the
Secretary may waive or limit the application of this sentence with
respect to any project located in the State of Hawaii upon a finding
that such project is remote from the area of primary consumption, that a
transmission line is required before the geothermal reservoir can be
developed, and that the particular transmission line involved will be
used for more than the plant which is the subject of the loan guarantee.
In the case of a guaranty for the purposes specified in subsection
(b)(5) of this section, the aggregate cost of the project shall be
deemed to be that portion of the total cost of construction and
operation which is directly related to the utilization of geothermal
energy within the structure or facility in question, except that the
aggregate cost of the project with respect to which the loan is made may
be the total cost including construction and operation in cases where
the facility or structure has been located near a geothermal energy
resource predominantly for the purpose of utilizing geothermal energy,
or as determined by the Secretary of Energy the economic viability of
the project is substantially dependent upon the performance of the
geothermal reservoir.
(d) Terms and conditions of guaranties
Loan guaranties under this subchapter shall be on such terms and
conditions as the head of the designated agency determines, except that
a guaranty shall be made under this subchapter only if--
(1) the loan bears interest at a rate not to exceed such annual
per centum on the principal obligation outstanding as the head of
the designated agency determines to be reasonable, taking into
account the range of interest rates prevailing in the private sector
for similar loans and risks by the United States;
(2) the terms of such loan require full repayment over a period
not to exceed thirty years, or the useful life of any physical asset
to be financed by such loan, whichever is less (as determined by the
head of the designated agency);
(3) in the judgment of the head of the designated agency, the
amount of the loan (when combined with amounts available to the
qualified borrower from other sources) will be sufficient to carry
out the project; and
(4) in the judgment of the head of the designated agency, there
is reasonable assurance of repayment of the loan by the qualified
borrower of the guaranteed indebtedness.
(e) Limitations on amount of guaranty; exceptions; procedures applicable
The amount of the guaranty for any loan for a project shall not
exceed $100,000,000: Provided, That in the case of a guaranty under
subsection (b)(5) of this section, the amount of the guaranty for any
loan for a project shall not exceed $50,000,000 and the amount of the
guaranty for any combination of loans for any single qualified borrower
shall not exceed $200,000,000, unless the Secretary of Energy determines
in writing that a guaranty in excess of these amounts is in the national
interest. Any such determination shall be submitted to the Speaker of
the House and the Committee on Science, Space, and Technology of the
House of Representatives, and to the President of the Senate and the
Committee on Energy and Natural Resources of the Senate, accompanied by
a full and complete report on the proposed project and guaranty. The
proposed guaranty or commitment to guarantee shall not be finalized
under authority granted by this chapter prior to the expiration of
thirty calendar days (not including any date on which either House of
Congress is not in session) from the date on which such report is
received by the Speaker of the House and the President of the Senate.
(f) ``Qualified borrower'' defined
As used in this subchapter, the term ``qualified borrower'' means
any public or private agency, institution, association, partnership,
corporation, political subdivision, or other legal entity which (as
determined by the head of the designated agency) has presented
satisfactory evidence of an interest in geothermal resources and is
capable of performing research or completing the development and
production of energy in an acceptable manner.
(g) Payment of interest; criteria
With respect to any guaranty which is issued after February 25,
1978, by, or in behalf of, any State, political subdivision, or Indian
tribe and which is either guaranteed under, or supported by taxes levied
by said issuer which are guaranteed under this subchapter and for which
the interest paid on such obligation and received by the purchaser
thereof is included in gross income for the purposes of chapter 1 of
title 26, the Secretary of Energy shall pay to such issuer out of the
fund established by this subchapter such portion of the interest on such
obligations, as determined by the Secretary of Energy, in consultation
with the Secretary of the Treasury, to be appropriated after taking into
account current market yields (1) on obligations of such issuer, if any,
or (2) on other obligations with similar terms and conditions, the
interest on which is not so included in gross income for purposes of
chapter 1 of title 26, and in accordance with such terms and conditions
as the Secretary of Energy shall require in consultation with the
Secretary of the Treasury.
(h) Pledge of full faith and credit of United States to guaranties
The full faith and credit of the United States is pledged to the
payment of all guaranties issued under this subchapter with respect to
principal and interest.
(i) Fees for guaranties; amount, collection, etc.
The Secretary of Energy shall charge and collect fees for guaranties
in amounts sufficient in his judgment to cover applicable administrative
costs and probable losses on guaranteed obligations, but in any event
not to exceed 1 per centum per annum of the outstanding indebtedness
covered by each guaranty. Fees collected under this subsection shall be
deposited in the fund established by this subchapter.
(j) Minimization of capital market impact of guaranties
The Secretary of the Treasury shall insure to the maximum extent
feasible that the timing, interest rate, and substantial terms and
conditions of any guaranty exceeding $25,000,000 will have the minimum
possible impact on the capital markets of the United States, taking into
account other Federal direct and indirect commercial securities
activities.
(Pub. L. 93-410, title II, Sec. 201, Sept. 3, 1974, 88 Stat. 1086; Pub.
L. 95-91, title III, Sec. 301(a), title VII, Secs. 703, 707, Aug. 4,
1977, 91 Stat. 577, 606, 607; Pub. L. 95-238, title V, Secs. 505-509,
Feb. 25, 1978, 92 Stat. 86, 87; Pub. L. 96-294, title VI, Sec. 641(1),
June 30, 1980, 94 Stat. 768; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100
Stat. 2095; Pub. L. 103-437, Sec. 11(b), Nov. 2, 1994, 108 Stat. 4589.)
Amendments
1994--Subsec. (e). Pub. L. 103-437 substituted ``Science, Space, and
Technology'' for ``Science and Technology''.
1986--Subsec. (g). Pub. L. 99-514 substituted ``Internal Revenue
Code of 1986'' for ``Internal Revenue Code of 1954'', which for purposes
of codification was translated as ``title 26'' thus requiring no change
in text.
1980--Subsec. (c). Pub. L. 96-294 inserted provisions relating to
guarantees for loans to an electric, housing, or other cooperative, or
to a municipality (as defined in section 796(7) of title 16).
1978--Subsec. (b)(4). Pub. L. 95-238, Sec. 506, substituted
``using'' for ``from''.
Subsec. (b)(5). Pub. L. 95-238, Sec. 505, added par. (5).
Subsec. (c). Pub. L. 95-238, Sec. 507, inserted provisions relating
to guarantees for the purposes specified in subsec. (b)(5) of this
section.
Subsec. (e). Pub. L. 95-238, Sec. 508, inserted proviso relating to
guaranty under subsec. (b)(5) of this section, and provisions relating
to exceptions to limitations on amounts guaranteed and procedures
applicable to implementation of greater amounts, and substituted
``$100,000,000'' for ``$25,000,000'' and ``$200,000,000'' for
``$50,000,000''.
Subsecs. (g) to (j). Pub. L. 95-238, Sec. 509, added subsecs. (g) to
(j).
Change of Name
Committee on Science, Space, and Technology of House of
Representatives treated as referring to Committee on Science of House of
Representatives by section 1(a) of Pub. L. 104-14, set out as a note
preceding section 21 of Title 2, The Congress.
Transfer of Functions
``Secretary of Energy'' substituted for ``Administrator'' (meaning
Administrator of Energy Research and Development Administration, see
section 501(2) of Pub. L. 95-238, title V, Feb. 25, 1978, 92 Stat. 86)
in subsecs. (c), (e), (g), and (i), pursuant to sections 301(a), 703,
and 707 of Pub. L. 95-91, which are classified to sections 7151(a),
7293, and 7297 of Title 42, The Public Health and Welfare, and which
terminated Energy Research and Development Administration and
transferred its functions and functions of Administrator thereof (with
certain exceptions) to Secretary of Energy.
