16 U.S.C. § 838l — Bonneville Power Administration refi-

Page 1515 TITLE 16—CONSERVATION § 838l (b) Payment of principal, premiums, and interest from net proceeds; ‘‘net proceeds’’ defined The principal of, premiums, if any, and inter- est on such bonds shall be payable solely from the Administrator’s net proceeds as hereinafter defined. ‘‘Net proceeds’’ shall mean for the pur- poses of this section the remainder of the Ad- ministrator’s gross receipts from all sources after first deducting trust funds and the costs listed in section 838i(b)(2) through (b)(7), (b)(11), and (b)(12) of this title, and shall include reserve or other funds created from such receipts. (c) Purchase and sale by Secretary of the Treas- ury; public debt transactions The Secretary of the Treasury shall purchase forthwith any bonds issued by the Adminis- trator under this chapter and for that purpose is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under chapter 31 of title 31, as now or hereafter in force, and the purposes for which se- curities may be issued under chapter 31 of title 31, as now or hereafter in force, are extended to include any purchases of the bonds issued by the Administrator under this chapter. The Sec- retary of the Treasury may, at any time, sell any of the bonds acquired by him under this chapter. All redemptions, purchases, and sales by the Secretary of the Treasury of such bonds shall be treated as public debt transactions of the United States. (Pub. L. 93–454, § 13, Oct. 18, 1974, 88 Stat. 1380; Pub. L. 96–501, § 8(c), (d), Dec. 5, 1980, 94 Stat. 2728, 2729.) Editorial Notes REFERENCES IN TEXT The Pacific Northwest Electric Power Planning and Conservation Act, referred to in subsec. (a), is Pub. L. 96–501, Dec. 5, 1980, 94 Stat. 2697, which is classified principally to chapter 12H (§ 839 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 839 of this title and Tables. CODIFICATION In subsec. (c), ‘‘chapter 31 of title 31’’ substituted for ‘‘the Second Liberty Bond Act’’ on authority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first sec- tion of which enacted Title 31, Money and Finance. AMENDMENTS 1980—Subsec. (a). Pub. L. 96–501, § 8(d), inserted provi- sion relating to the implementation of the Administra- tor’s authority pursuant to the Pacific Northwest Elec- tric Power Planning and Conservation Act, inserted ‘‘issued by Government corporations’’ after ‘‘rates pre- vailing in the market for similar bonds’’, increased the existing $1,250,000,000 aggregate principal limitation by an additional $1,250,000,000 after Oct. 1, 1981, to be used to provide funds for conservation and renewable re- source loans and grants in a special revolving account created for that purpose, and inserted provision that, beginning in fiscal year 1982, if the Administrator fails to repay by the end of any fiscal year all of the amounts projected immediately prior to that year to be repaid to the Treasury by the end of that year under the repayment criteria of the Secretary of Energy and if that failure is due to reasons other than a decrease in power sale revenues due to fluctuating streamflows or other reasons beyond the control of the Adminis- trator, the Secretary of the Treasury may increase the interest rate applicable to the outstanding bonds issued by the Administrator during that fiscal year. Subsec. (b). Pub. L. 96–501, § 8(c), substituted ‘‘, (b)(11), and (b)(12) of this title,’’ for ‘‘and (b)(11) of this title,’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–501 effective Dec. 5, 1980, see section 11 of Pub. L. 96–501, set out as an Effective Date note under section 839 of this title. TRANSFER OF FUNCTIONS Functions of Secretary of the Interior with respect to Bonneville Power Administration transferred to Sec- retary of Energy by section 7152(a)(1)(D), (2) of Title 42, The Public Health and Welfare, with Bonneville Power Administration to be preserved as a distinct organiza- tional entity within Department of Energy and headed by an Administrator. § 838l. Bonneville Power Administration refi- nancing (a) Definitions For the purposes of this section— (1) ‘‘Administrator’’ means the Adminis- trator of the Bonneville Power Administra- tion; (2) ‘‘capital investment’’ means a capitalized cost funded by Federal appropriations that— (A) is for a project, facility, or separable unit or feature of a project or facility; (B) is a cost for which the Administrator is required by law to establish rates to repay to the United States Treasury through the sale of electric power, transmission, or other services; (C) excludes a Federal irrigation invest- ment; and (D) excludes an investment financed by the current revenues of the Administrator or by bonds issued and sold, or authorized to be issued and sold, by the Administrator under section 838k of this title; (3) ‘‘new capital investment’’ means a cap- ital investment for a project, facility, or sepa- rable unit or feature of a project or facility, placed in service after September 30, 1996; (4) ‘‘old capital investment’’ means a capital investment the capitalized cost of which— (A) was incurred, but not repaid, before Oc- tober 1, 1996, and (B) was for a project, facility, or separable unit or feature of a project or facility, placed in service before October 1, 1996; (5) ‘‘repayment date’’ means the end of the period within which the Administrator’s rates are to assure the repayment of the principal amount of a capital investment; and (6) ‘‘Treasury rate’’ means— (A) for an old capital investment, a rate determined by the Secretary of the Treas- ury, taking into consideration prevailing market yields, during the month preceding October 1, 1996, on outstanding interest-bear- ing obligations of the United States with pe- riods to maturity comparable to the period between October 1, 1996, and the repayment date for the old capital investment; and (B) for a new capital investment, a rate de- termined by the Secretary of the Treasury, Page 1516 TITLE 16—CONSERVATION § 838l taking into consideration prevailing market yields, during the month preceding the be- ginning of the fiscal year in which the re- lated project, facility, or separable unit or feature is placed in service, on outstanding interest-bearing obligations of the United States with periods to maturity comparable to the period between the beginning of the fiscal year and the repayment date for the new capital investment. (b) New principal amounts (1) Principal amount Effective October 1, 1996, an old capital in- vestment has a new principal amount that is the sum of— (A) the present value of the old payment amounts for the old capital investment, cal- culated using a discount rate equal to the Treasury rate for the old capital investment; and (B) an amount equal to $100,000,000 multi- plied by a fraction whose numerator is the principal amount of the old payment amounts for the old capital investment and whose denominator is the sum of the prin- cipal amounts of the old payment amounts for all old capital investments. (2) Determination With the approval of the Secretary of the Treasury based solely on consistency with this section, the Administrator shall determine the new principal amounts under subsection (b) and the assignment of interest rates to the new principal amounts under subsection (c). (3) Old payment amounts For the purposes of this subsection, ‘‘old payment amounts’’ means, for an old capital investment, the annual interest and principal that the Administrator would have paid to the United States Treasury from October 1, 1996, if this section had not been enacted, assuming that— (A) the principal were repaid— (i) on the repayment date the Adminis- trator assigned before October 1, 1994, to the old capital investment, or (ii) with respect to an old capital invest- ment for which the Administrator has not assigned a repayment date before October 1, 1994, on a repayment date the Adminis- trator shall assign to the old capital in- vestment in accordance with paragraph 10(d)(1) of the version of Department of En- ergy Order RA 6120.2 in effect on October 1, 1994; and (B) interest were paid— (i) at the interest rate the Administrator assigned before October 1, 1994, to the old capital investment, or (ii) with respect to an old capital invest- ment for which the Administrator has not assigned an interest rate before October 1, 1994, at a rate determined by the Secretary of the Treasury, taking into consideration prevailing market yields, during the month preceding the beginning of the fis- cal year in which the related project, facil- ity, or separable unit or feature is placed in service, on outstanding interest-bearing obligations of the United States with peri- ods to maturity comparable to the period between the beginning of the fiscal year and the repayment date for the old capital investment. (c) Interest rate for new principal amounts As of October 1, 1996, the unpaid balance on the new principal amount established for an old capital investment under subsection (b) bears interest annually at the Treasury rate for the old capital investment until the earlier of the date that the new principal amount is repaid or the repayment date for the new principal amount. (d) Repayment dates As of October 1, 1996, the repayment date for the new principal amount established for an old capital investment under subsection (b) is no earlier than the repayment date for the old cap- ital investment assumed in subsection (b)(3)(A). (e) Prepayment limitations During the period October 1, 1996, through Sep- tember 30, 2001, the total new principal amounts of old capital investments, as established under subsection (b), that the Administrator may pay before their respective repayment dates shall not exceed $100,000,000. (f) Interest rates for new capital investments during construction (1) New capital investment The principal amount of a new capital in- vestment includes interest in each fiscal year of construction of the related project, facility, or separable unit or feature at a rate equal to the one-year rate for the fiscal year on the sum of— (A) construction expenditures that were made from the date construction com- menced through the end of the fiscal year, and (B) accrued interest during construction. (2) Payment The Administrator is not required to pay, during construction of the project, facility, or separable unit or feature, the interest cal- culated, accrued, and capitalized under sub- section (f)(1). (3) One-year rate For the purposes of this section, ‘‘one-year rate’’ for a fiscal year means a rate deter- mined by the Secretary of the Treasury, tak- ing into consideration prevailing market yields, during the month preceding the begin- ning of the fiscal year, on outstanding inter- est-bearing obligations of the United States with periods to maturity of approximately one year. (g) Interest rates for new capital investments The unpaid balance on the principal amount of a new capital investment bears interest at the Treasury rate for the new capital investment from the date the related project, facility, or separable unit or feature is placed in service until the earlier of the date the new capital in- vestment is repaid or the repayment date for the new capital investment. Page 1517 TITLE 16—CONSERVATION § 838m 1 So in original. Probably should be ‘‘section;’’ or ‘‘section’’. (h) Omitted (i) Contract provisions In each contract of the Administrator that provides for the Administrator to sell electric power, transmission, or related services, and that is in effect after September 30, 1996, the Ad- ministrator shall offer to include, or as the case may be, shall offer to amend to include, provi- sions specifying that after September 30, 1996— (1) the Administrator shall establish rates and charges on the basis that— (A) the principal amount of an old capital investment shall be no greater than the new principal amount established under sub- section (b); (B) the interest rate applicable to the un- paid balance of the new principal amount of an old capital investment shall be no greater than the interest rate established under sub- section (c); (C) any payment of principal of an old cap- ital investment shall reduce the outstanding principal balance of the old capital invest- ment in the amount of the payment at the time the payment is tendered; and (D) any payment of interest on the unpaid balance of the new principal amount of an old capital investment shall be a credit against the appropriate interest account in the amount of the payment at the time the payment is tendered; (2) apart from charges necessary to repay the new principal amount of an old capital in- vestment as established under subsection (b) and to pay the interest on the principal amount under subsection (c), no amount may be charged for return to the United States Treasury as repayment for or return on an old capital investment, whether by way of rate, rent, lease payment, assessment, user charge, or any other fee; (3) amounts provided under section 1304 of title 31 shall be available to pay, and shall be the sole source for payment of, a judgment against or settlement by the Administrator or the United States on a claim for a breach of the contract provisions required by this Part; 1 and (4) the contract provisions specified in this Part 1 do not— (A) preclude the Administrator from re- covering, through rates or other means, any tax that is generally imposed on electric utilities in the United States, or (B) affect the Administrator’s authority under applicable law, including section 839e(g) of this title, to— (i) allocate costs and benefits, including but not limited to fish and wildlife costs, to rates or resources, or (ii) design rates. (j) Savings provisions (1) Repayment This section does not affect the obligation of the Administrator to repay the principal asso- ciated with each capital investment, and to pay interest on the principal, only from the ‘‘Administrator’s net proceeds,’’ as defined in section 838k(b) of this title. (2) Payment of capital investment Except as provided in subsection (e), this section does not affect the authority of the Administrator to pay all or a portion of the principal amount associated with a capital in- vestment before the repayment date for the principal amount. (Pub. L. 104–134, title III, § 3201, Apr. 26, 1996, 110 Stat. 1321–350.) Editorial Notes CODIFICATION Section was enacted as part of the Omnibus Consoli- dated Rescissions and Appropriations Act of 1996, and not as part of the Federal Columbia River Trans- mission System Act which comprises this chapter. Section is comprised of section 3201 of Pub. L. 104–134. Subsec. (h) of section 3201 of Pub. L. 104–134 amended section 6 of Pub. L. 103–436, which is not classified to the Code. § 838m. Power marketing administration trans- mission borrowing authority (a) Borrowing authority (1) In general Subject to paragraph (2), for the purposes of providing funds to assist in the financing of the construction, acquisition, and replacement of the Federal Columbia River Power System and to implement the authority of the Admin- istrator of the Bonneville Power Administra- tion (referred to in this section as the ‘‘Ad- ministrator’’) under the Pacific Northwest Electric Power Planning and Conservation Act (16 U.S.C. 839 et seq.), an additional $10,000,000,000 in borrowing authority is made available under the Federal Columbia River Transmission System Act (16 U.S.C. 838 et seq.), to remain outstanding at any 1 time. (2) Limitation The obligation of additional borrowing au- thority under paragraph (1) shall not exceed $6,000,000,000 by fiscal year 2028. (b) Financial plan (1) In general The Administrator shall issue an updated fi- nancial plan by the end of fiscal year 2022. (2) Requirement As part of the process of issuing an updated financial plan under paragraph (1), the Admin- istrator shall— (A) consistent with asset management planning and sound business principles, con- sider projected and planned use and alloca- tion of the borrowing authority of the Ad- ministrator across the mission responsibil- ities of the Bonneville Power Administra- tion; and (B) before issuing the final updated finan- cial plan— (i) engage, in a manner determined by the Administrator, with customers with respect to a draft of the updated plan; and