
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC8402]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
             CHAPTER 92--POWERPLANT AND INDUSTRIAL FUEL USE
 
                   SUBCHAPTER VI--FINANCIAL ASSISTANCE
 
Sec. 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.

(Pub. L. 95-620, title VI, Sec. 602, Nov. 9, 1978, 92 Stat. 3327.)

                       References in Text

    The effective date of this chapter, referred to in subsecs. (a) and 
(d)(1)(E), is the effective date of Pub. L. 95-620. See section 901 of 
Pub. L. 95-620, set out as an Effective Date note under section 8301 of 
this title.
    The Clean Air Act, referred to in subsec. (d)(1)(C), is act July 14, 
1955, ch. 360, 69 Stat. 322, as amended, which is classified generally 
to chapter 85 (Sec. 7401 et seq.) of this title. For complete 
classification of this Act to the Code, see Short Title note set out 
under section 7401 of this title and Tables.
