American
Recovery and Reinvestment Act of 2009 -
Borrowing Authority
| Title III - Borrowing Authority -------------------------------------------------------------------------------- ‘‘SEC. 301. WESTERN AREA POWER ADMINISTRATION BORROWING AUTHORITY. ‘‘(a) DEFINITIONS.—In this section: ‘‘(1) ADMINISTRATOR.—The term ‘Administrator’ means the Administrator of the Western Area Power Administration. ‘‘(2) SECRETARY.—The term ‘Secretary’ means the Secretary of the Treasury. ‘‘(b) AUTHORITY.— ‘‘(1) IN GENERAL.—Notwithstanding any other provision of law, subject to paragraphs (2) through (5)— ‘‘(A) the Western Area Power Administration may borrow funds from the Treasury; and |
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‘‘(i) constructing, financing, facilitating, planning, operating, maintaining, or studying construction 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 the date of enactment of this section.
‘‘(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, 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 may permit other entities to participate in the financing, construction and ownership projects financed under this section.
‘‘(5) CONGRESSIONAL REVIEW OF DISBURSEMENT.—Effective upon the date of enactment of this section, the Administrator shall have the authority to have utilized $1,750,000,000 at any one time. If the Administrator 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.—
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‘‘(1) IN GENERAL.—For repayment purposes, each transmission line and related facility project 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; 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 under this section to the repayment of the principal and interest of the loan from the Treasury attributable to that project, 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 from which the revenues are derived. ‘‘(3) SOURCE OF REVENUE.—Revenue from the use of projects
under this section shall be the only source of revenue for— ‘‘(A) repayment of the associated loan for the project; and
‘‘(B) payment of expenses for ancillary services and operation and maintenance. ‘‘(4) LIMITATION ON AUTHORITY.—Nothing in this section
confers on the Administrator 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 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 in which the Western Area Power Administration participates pursuant to this section, the Administrator shall certify, prior to committing funds for any such project, that—
‘‘(A) the project is in the public interest; ‘‘(B) the project 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 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, 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 that are considered pursuant to this section but that are not constructed shall be forgiven.
‘‘(C) NOTIFICATION.—The Administrator shall notify the Secretary 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 shall use a public
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process to develop practices and policies that implement the authority granted by this section.
‘‘(2) REQUESTS FOR INTEREST.—In the course of selecting potential projects to be funded under this section, the Administrator shall seek Requests For Interest from entities interested in identifying potential projects through one or more notices published in the Federal Register.’’ SEC. 403. SET-ASIDE FOR MANAGEMENT AND OVERSIGHT. Up
to 0.5 percent of each amount appropriated in this title may be used for the expenses of management and oversight of the programs, grants, and activities funded by such appropriation, and may be transferred by the head of the Federal department or agency involved to any other appropriate account within the department or agency for that purpose: Provided, That the Secretary will provide a report to the Committees on Appropriations of the House of Representatives and the Senate 30 days prior to the transfer: Provided further, That funds set aside under this section shall remain available for obligation until September 30, 2012.
SEC. 404. TECHNICAL CORRECTIONS TO THE ENERGY INDEPENDENCE AND SECURITY ACT OF 2007. (a) Section 543(a) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17153(a)) is amended—
(1)
by redesignating paragraphs (2) through (4) as paragraphs (3) through (5), respectively; and
(2)
by striking paragraph (1) and inserting the following: ‘‘(1) 34 percent to eligible units of local government—alternative 1, in accordance with subsection (b);
‘‘(2) 34 percent to eligible units of local government—alternative 2, in accordance with subsection (b);’’.
(b)
Section 543(b) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17153(b)) is amended by striking ‘‘subsection (a)(1)’’ and inserting ‘‘subsection (a)(1) or (2)’’.
(c)
Section 548(a)(1) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17158(a)(1)) is amending by striking ‘‘; provided’’ and all that follows through ���‘541(3)(B)’’.
SEC. 405. AMENDMENTS TO TITLE XIII OF THE ENERGY INDEPENDENCE AND SECURITY ACT OF 2007. Title XIII of the Energy Independence and Security Act of 2007 (42 U.S.C. 17381 and following) is amended as follows:
(1)
By amending subparagraph (A) of section 1304(b)(3) to read as follows: ‘‘(A) IN GENERAL.—In carrying out the initiative, the Secretary shall provide financial support to smart grid demonstration projects in urban, suburban, tribal, and rural areas, including areas where electric system assets are controlled by nonprofit entities and areas where electric system assets are controlled by investor-owned utilities.’’.
(2)
By amending subparagraph (C) of section 1304(b)(3) to read as follows:
‘‘(C) FEDERAL SHARE OF COST OF TECHNOLOGY INVEST-MENTS.—The Secretary shall provide to an electric utility described in subparagraph (B) or to other parties financial assistance for use in paying an amount equal to not more than 50 percent of the cost of qualifying advanced grid technology investments made by the electric utility or other party to carry out a demonstration project.’’.
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(3) By inserting after section 1304(b)(3)(D) the following new subparagraphs:
‘‘(E) AVAILABILITY OF DATA.—The Secretary shall establish and maintain a smart grid information clearinghouse in a timely manner which will make data from smart grid demonstration projects and other sources available to the public. As a condition of receiving financial assistance under this subsection, a utility or other participant in a smart grid demonstration project shall provide such information as the Secretary may require to become available through the smart grid information clearinghouse in the form and within the timeframes as directed by the Secretary. The Secretary shall assure that business proprietary information and individual customer information is not included in the information made available through the clearinghouse.
‘‘(F) OPEN PROTOCOLS AND STANDARDS.—The Secretary shall require as a condition of receiving funding under this subsection that demonstration projects utilize open protocols and standards (including Internet-based protocols and standards) if available and appropriate.’’.
(4)
By amending paragraph (2) of section 1304(c) to read as follows: ‘‘(2) to carry out subsection (b), such sums as may be necessary.’’.
(5)
By amending subsection (a) of section 1306 by striking ‘‘reimbursement of one-fifth (20 percent)’’ and inserting ‘‘grants of up to one-half (50 percent)’’.
(6)
By striking the last sentence of subsection (b)(9) of section 1306.
(7)
By striking ‘‘are eligible for’’ in subsection (c)(1) of section 1306 and inserting ‘‘utilize’’.
(8)
By amending subsection (e) of section 1306 to read as follows: ‘‘(e) PROCEDURES AND RULES.—(1) The Secretary shall, within
60 days after the enactment of the American Recovery and Reinvest
ment Act of 2009, by means of a notice of intent and subsequent
solicitation of grant proposals— ‘‘(A) establish procedures by which applicants can obtain grants of not more than one-half of their documented costs; ‘‘(B) require as a condition of receiving funding under this subsection that demonstration projects utilize open protocols and standards (including Internet-based protocols and standards) if available and appropriate; ‘‘(C) establish procedures to ensure that there is no duplication or multiple payment for the same investment or costs, that the grant goes to the party making the actual expenditures for the qualifying Smart Grid investments, and that the grants made have a significant effect in encouraging and facilitating the development of a smart grid; ‘‘(D) establish procedures to ensure there will be public records of grants made, recipients, and qualifying Smart Grid investments which have received grants; and ‘‘(E) establish procedures to provide advance payment of moneys up to the full amount of the grant award. ‘‘(2) The Secretary shall have discretion and exercise reasonable
judgment to deny grants for investments that do not qualify.’’.
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SEC. 406. RENEWABLE ENERGY AND ELECTRIC POWER TRANSMISSION LOAN GUARANTEE PROGRAM. (a) AMENDMENT.—Title XVII of the Energy Policy Act of 2005 (42 U.S.C. 16511 et seq.) is amended by adding the following at the end:
‘‘SEC. 1705. TEMPORARY PROGRAM FOR RAPID DEPLOYMENT OF RENEWABLE ENERGY AND ELECTRIC POWER TRANSMISSION PROJECTS.
‘‘(a) IN GENERAL.—Notwithstanding section 1703, the Secretary may make guarantees under this section only for the following categories of projects that commence construction not later than September 30, 2011:
‘‘(1) Renewable energy systems, including incremental hydropower, that generate electricity or thermal energy, and facilities that manufacture related components.
‘‘(2) Electric power transmission systems, including upgrading and reconductoring projects.
‘‘(3) Leading edge biofuel projects that will use technologies performing at the pilot or demonstration scale that the Secretary determines are likely to become commercial technologies and will produce transportation fuels that substantially reduce life-cycle greenhouse gas emissions compared to other transportation fuels. ‘‘(b) FACTORS RELATING TO ELECTRIC POWER TRANSMISSION SYS-
TEMS.—In determining to make guarantees to projects described in subsection (a)(2), the Secretary may consider the following factors:
‘‘(1) The viability of the project without guarantees. ‘‘(2) The availability of other Federal and State incentives. ‘‘(3) The importance of the project in meeting reliability
needs.
‘‘(4) The effect of the project in meeting a State or region’s environment (including climate change) and energy goals. ‘‘(c) WAGE RATE REQUIREMENTS.—The Secretary shall require
that each recipient of support under this section provide reasonable assurance that all laborers and mechanics employed in the performance of the project for which the assistance is provided, including those employed by contractors or subcontractors, will be paid wages at rates not less than those prevailing on similar work in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of part A of subtitle II of title 40, United States Code (commonly referred to as the ‘Davis-Bacon Act’).
‘‘(d) LIMITATION.—Funding under this section for projects described in subsection (a)(3) shall not exceed $500,000,000. ‘‘(e) SUNSET.—The authority to enter into guarantees under this section shall expire on September 30, 2011.’’.
(b) TABLE OF CONTENTS AMENDMENT.—The table of contents for the Energy Policy Act of 2005 is amended by inserting after the item relating to section 1704 the following new item:
‘‘Sec. 1705. Temporary program for rapid deployment of renewable energy and electric power transmission projects.’’. SEC. 407. WEATHERIZATION ASSISTANCE PROGRAM AMENDMENTS. (a) INCOME LEVEL.—Section 412(7) of the Energy Conservation and Production Act (42 U.S.C. 6862(7)) is amended by striking ‘‘150 percent’’ both places it appears and inserting ‘‘200 percent’’.
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(b)
ASSISTANCE LEVEL PER DWELLING UNIT.—Section 415(c)(1) of the Energy Conservation and Production Act (42 U.S.C. 6865(c)(1)) is amended by striking ‘‘$2,500’’ and inserting ‘‘$6,500’’.
(c)
EFFECTIVE USE OF FUNDS.—In providing funds made available by this Act for the Weatherization Assistance Program, the Secretary may encourage States to give priority to using such funds for the most cost-effective efficiency activities, which may include insulation of attics, if, in the Secretary’s view, such use of funds would increase the effectiveness of the program.
(d)
TRAINING AND TECHNICAL ASSISTANCE.—Section 416 of the Energy Conservation and Production Act (42 U.S.C. 6866) is amended by striking ‘‘10 percent’’ and inserting ‘‘up to 20 percent’’.
(e)
ASSISTANCE FOR PREVIOUSLY WEATHERIZED DWELLING UNITS.—Section 415(c)(2) of the Energy Conservation and Production Act (42 U.S.C. 6865(c)(2)) is amended by striking ‘‘September 30, 1979’’ and inserting ‘‘September 30, 1994’’. SEC. 408. TECHNICAL CORRECTIONS TO PUBLIC UTILITY REGULATORY POLICIES ACT OF 1978. (a) Section 111(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by redesignating paragraph (16) relating to consideration of smart grid investments (added by section 1307(a) of Public Law 110–140) as paragraph (18) and by redesignating paragraph (17) relating to smart grid information (added by section 1308(a) of Public Law 110–140) as paragraph (19).
(b)
Subsections (b) and (d) of section 112 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622) are each amended by striking ‘‘(17) through (18)’’ in each place it appears and inserting ‘‘(16) through (19)’’.
SEC. 409. RENEWABLE ELECTRICITY TRANSMISSION STUDY. In completing the 2009 National Electric Transmission Congestion Study, the Secretary of Energy shall include—
(1)
an analysis of the significant potential sources of renewable energy that are constrained in accessing appropriate market areas by lack of adequate transmission capacity;
(2)
an analysis of the reasons for failure to develop the adequate transmission capacity;
(3)
recommendations for achieving adequate transmission capacity;
(4)
an analysis of the extent to which legal challenges filed at the State and Federal level are delaying the construction of transmission necessary to access renewable energy; and
(5)
an explanation of assumptions and projections made in the Study, including—
(A)
assumptions and projections relating to energy efficiency improvements in each load center;
(B)
assumptions and projections regarding the location and type of projected new generation capacity; and
(C)
assumptions and projections regarding projected deployment of distributed generation infrastructure.
SEC. 410. ADDITIONAL STATE ENERGY GRANTS. (a) IN GENERAL.—Amounts appropriated under the heading ‘‘Department of Energy—Energy Programs—Energy Efficiency and Renewable Energy’’ in this title shall be available to the Secretary of Energy for making additional grants under part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.). The Secretary shall make grants under this section in excess of the base allocation established for a State under regulations issued pursuant to the
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authorization provided in section 365(f) of such Act only if the governor of the recipient State notifies the Secretary of Energy in writing that the governor has obtained necessary assurances that each of the following will occur:
(1)
The applicable State regulatory authority will seek to implement, in appropriate proceedings for each electric and gas utility, with respect to which the State regulatory authority has ratemaking authority, a general policy that ensures that utility financial incentives are aligned with helping their customers use energy more efficiently and that provide timely cost recovery and a timely earnings opportunity for utilities associated with cost-effective measurable and verifiable efficiency savings, in a way that sustains or enhances utility customers’ incentives to use energy more efficiently.
(2)
The State, or the applicable units of local government that have authority to adopt building codes, will implement the following:
(A)
A building energy code (or codes) for residential buildings that meets or exceeds the most recently published International Energy Conservation Code, or achieves equivalent or greater energy savings.
(B)
A building energy code (or codes) for commercial buildings throughout the State that meets or exceeds the ANSI/ASHRAE/IESNA Standard 90.1–2007, or achieves equivalent or greater energy savings.
(C)
A plan for the jurisdiction achieving compliance with the building energy code or codes described in subparagraphs (A) and (B) within 8 years of the date of enactment of this Act in at least 90 percent of new and renovated residential and commercial building space. Such plan shall include active training and enforcement programs and measurement of the rate of compliance each year.
(3)
The State will to the extent practicable prioritize the grants toward funding energy efficiency and renewable energy programs, including—
(A)
the expansion of existing energy efficiency programs approved by the State or the appropriate regulatory authority, including energy efficiency retrofits of buildings and industrial facilities, that are funded�������� (i) by the State; or (ii) through rates under the oversight of the applicable regulatory authority, to the extent applicable;
(B)
the expansion of existing programs, approved by the State or the appropriate regulatory authority, to support renewable energy projects and deployment activities, including programs operated by entities which have the authority and capability to manage and distribute grants, loans, performance incentives, and other forms of financial assistance; and
(C)
cooperation and joint activities between States to advance more efficient and effective use of this funding to support the priorities described in this paragraph.
(b) STATE MATCH.—The State cost share requirement under the item relating to ‘‘Department of Energy; Energy Conservation’’ in title II of the Department of the Interior and Related Agencies
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Appropriations Act, 1985 (42 U.S.C. 6323a; 98 Stat. 1861) shall not apply to assistance provided under this section.
(c) EQUIPMENT AND MATERIALS FOR ENERGY EFFICIENCY MEASURES AND RENEWABLE ENERGY MEASURES.—No limitation on the percentage of funding that may be used for the purchase and installation of equipment and materials for energy efficiency measures and renewable energy measures under grants provided under part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.) shall apply to assistance provided under this section.
