42 U.S.C. § 17012 — Advanced battery loan guarantee pro-

Page 8942 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 17012 (2) Electric vehicle competition The program established under paragraph (1) shall include a plug-in hybrid electric vehicle competition for institutions of higher edu- cation, which shall be known as the ‘‘Dr. An- drew Frank Plug-In Electric Vehicle Competi- tion’’. (3) Engineers In carrying out the program established under paragraph (1), the Secretary shall pro- vide financial assistance to institutions of higher education to create new, or support ex- isting, degree programs to ensure the avail- ability of trained electrical and mechanical engineers with the skills necessary for the ad- vancement of— (A) plug-in electric drive vehicles; and (B) other forms of electric drive transpor- tation technology vehicles. (4) Authorization of appropriations There are authorized to be appropriated such sums as may be necessary to carry out this subsection. (Pub. L. 110–140, title I, § 131, Dec. 19, 2007, 121 Stat. 1508.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on the date that is 1 day after Dec. 19, 2007, see section 1601 of Pub. L. 110–140, set out as a note under section 1824 of Title 2, The Congress. § 17012. Advanced battery loan guarantee pro- gram (a) Establishment of program The Secretary shall establish a program to provide guarantees of loans by private institu- tions for the construction of facilities for the manufacture of advanced vehicle batteries and battery systems that are developed and pro- duced in the United States, including advanced lithium ion batteries and hybrid electrical sys- tem and component manufacturers and software designers. (b) Requirements The Secretary may provide a loan guarantee under subsection (a) to an applicant if— (1) without a loan guarantee, credit is not available to the applicant under reasonable terms or conditions sufficient to finance the construction of a facility described in sub- section (a); (2) the prospective earning power of the ap- plicant and the character and value of the se- curity pledged provide a reasonable assurance of repayment of the loan to be guaranteed in accordance with the terms of the loan; and (3) the loan bears interest at a rate deter- mined by the Secretary to be reasonable, tak- ing into account the current average yield on outstanding obligations of the United States with remaining periods of maturity com- parable to the maturity of the loan. (c) Criteria In selecting recipients of loan guarantees from among applicants, the Secretary shall give pref- erence to proposals that— (1) meet all applicable Federal and State permitting requirements; (2) are most likely to be successful; and (3) are located in local markets that have the greatest need for the facility. (d) Maturity A loan guaranteed under subsection (a) shall have a maturity of not more than 20 years. (e) Terms and conditions The loan agreement for a loan guaranteed under subsection (a) shall provide that no provi- sion of the loan agreement may be amended or waived without the consent of the Secretary. (f) Assurance of repayment The Secretary shall require that an applicant for a loan guarantee under subsection (a) pro- vide an assurance of repayment in the form of a performance bond, insurance, collateral, or other means acceptable to the Secretary in an amount equal to not less than 20 percent of the amount of the loan. (g) Guarantee fee The recipient of a loan guarantee under sub- section (a) shall pay the Secretary an amount determined by the Secretary to be sufficient to cover the administrative costs of the Secretary relating to the loan guarantee. (h) Full faith and credit The full faith and credit of the United States is pledged to the payment of all guarantees made under this section. Any such guarantee made by the Secretary shall be conclusive evi- dence of the eligibility of the loan for the guar- antee with respect to principal and interest. The validity of the guarantee shall be incontestable in the hands of a holder of the guaranteed loan. (i) Reports Until each guaranteed loan under this section has been repaid in full, the Secretary shall an- nually submit to Congress a report on the ac- tivities of the Secretary under this section. (j) Authorization of appropriations There are authorized to be appropriated such sums as are necessary to carry out this section. (k) Termination of authority The authority of the Secretary to issue a loan guarantee under subsection (a) terminates on the date that is 10 years after December 19, 2007. (Pub. L. 110–140, title I, § 135, Dec. 19, 2007, 121 Stat. 1513.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on the date that is 1 day after Dec. 19, 2007, see section 1601 of Pub. L. 110–140, set out as a note under section 1824 of Title 2, The Congress. § 17013. Advanced technology vehicles manufac- turing incentive program (a) Definitions In this section: (1) Advanced technology vehicle The term ‘‘advanced technology vehicle’’ means—