§ 16421a — Western Area Power Administration Borrowing Authority

(a) In this section: (1) The term “Administrator” means the Administrator of the Western Area Power Administration. (2) The term “Secretary” means the Secretary of the Treasury. (1) 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 (B) the Secretary shall, without further appropriation and without fiscal year limitation, loan to the Western Area Power Administration, on such terms as may be fixed by the Administrator and the Secretary, such sums (not to exceed, in the aggregate (including deferred interest), $3,250,000,000 in outstanding repayable balances at any one time) as, in the judgment of the Administrator, are from time to time required for the purpose of— (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 February 17, 2009. (2) 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) The Western Area Power Administration may refinance loans taken pursuant to this section within the Treasury. (4) The Administrator may permit other entities to participate in the financing, construction and ownership projects financed under this section. (5) Effective upon February 17, 2009, 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. (1) 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) 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) 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) 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) 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. (1) 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. (A) 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) Funds expended to study projects that are considered pursuant to this section but that are not constructed shall be forgiven. (C) The Administrator shall notify the Secretary of such amounts as are to be forgiven under this paragraph. (1) Prior to requesting any loans under this section, the Administrator shall use a public process to develop practices and policies that implement the authority granted by this section. (2) 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.