15 U.S.C. § 720n — Loan guarantees

Page 1228 TITLE 15—COMMERCE AND TRADE § 720l (1) the Governor of the State of Alaska re- quests the grant funds and certifies in writing to the Secretary that there is a reasonable ex- pectation that the construction of the Alaska natural gas pipeline system will commence by the date that is 2 years after the date of the certification; and (2) the Secretary of Energy concurs in writ- ing to the Secretary with the certification made under paragraph (1) after considering— (A) the status of necessary Federal and State permits; (B) the availability of financing for the Alaska natural gas pipeline project; and (C) other relevant factors. (c) Authorization of appropriations There are authorized to be appropriated to the Secretary to carry out this section $20,000,000. Not more than 15 percent of the funds may be used for the facility described in subsection (a)(1)(B). (Pub. L. 108–324, div. C, § 113, Oct. 13, 2004, 118 Stat. 1264; Pub. L. 113–128, title V, § 512(c), July 22, 2014, 128 Stat. 1706.) Editorial Notes AMENDMENTS 2014—Subsec. (a)(2). Pub. L. 113–128 substituted ‘‘con- sistent with the vision and goals set forth in the State of Alaska unified plan or combined plan, as appro- priate, as developed pursuant to section 3112 or 3113, as appropriate, of title 29’’ for ‘‘consistent with the vision and goals set forth in the State of Alaska Unified Plan, as developed pursuant to the Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.)’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2014 AMENDMENT Amendment by Pub. L. 113–128 effective on the first day of the first full program year after July 22, 2014 (July 1, 2015), see section 506 of Pub. L. 113–128, set out as an Effective Date note under section 3101 of Title 29, Labor. § 720l. Sense of Congress concerning natural gas demand It is the sense of Congress that— (1) North American demand for natural gas will increase dramatically over the course of the next several decades; (2) both the Alaska Natural Gas Pipeline and the Mackenzie Delta Natural Gas project in Canada will be necessary to help meet the in- creased demand for natural gas in North America; (3) Federal and State officials should work together with officials in Canada to ensure both projects can move forward in a mutually beneficial fashion; (4) Federal and State officials should ac- knowledge that the smaller scope, fewer per- mitting requirements, and lower cost of the Mackenzie Delta project means it will most likely be completed before the Alaska Natural Gas Pipeline; (5) natural gas production in the 48 contig- uous States and Canada will not be able to meet all domestic demand in the coming dec- ades; and (6) as a result, natural gas delivered from Alaskan North Slope will not displace or re- duce the commercial viability of Canadian natural gas produced from the Mackenzie Delta or production from the 48 contiguous States. (Pub. L. 108–324, div. C, § 114, Oct. 13, 2004, 118 Stat. 1264.) § 720m. Sense of Congress concerning Alaskan ownership It is the sense of Congress that— (1) Alaska Native Regional Corporations, companies owned and operated by Alaskans, and individual Alaskans should have the op- portunity to own shares of the Alaska natural gas pipeline in a way that promotes economic development for the State; and (2) to facilitate economic development in the State, all project sponsors should negotiate in good faith with any willing Alaskan person that desires to be involved in the project. (Pub. L. 108–324, div. C, § 115, Oct. 13, 2004, 118 Stat. 1265.) § 720n. Loan guarantees (a) Authority (1) The Secretary may enter into agreements with 1 or more holders of a certificate of public convenience and necessity issued under section 720a(b) of this title or section 719g of this title or with an entity the Secretary determines is qualified to construct and operate a liquefied natural gas project to transport liquefied nat- ural gas from Southcentral Alaska, to issue Fed- eral guarantee instruments with respect to loans and other debt obligations for a qualified infrastructure project. (2) Subject to the requirements of this section, the Secretary may also enter into agreements with 1 or more owners of the Canadian portion of a qualified infrastructure project to issue Federal guarantee instruments with respect to loans and other debt obligations for a qualified infrastructure project as though such owner were a holder described in paragraph (1). (3) The authority of the Secretary to issue Federal guarantee instruments under this sec- tion for a qualified infrastructure project shall expire on the date that is 2 years after the date on which the final certificate of public conven- ience and necessity (including any Canadian cer- tificates of public convenience and necessity) is issued for the project. A final certificate shall be considered to have been issued when all certifi- cates of public convenience and necessity have been issued that are required for the initial transportation of commercially economic quan- tities of natural gas from Alaska. (b) Conditions (1) The Secretary may issue a Federal guar- antee instrument for a qualified infrastructure project only after a certificate of public conven- ience and necessity under section 720a(b) of this title or an amended certificate under section 719g of this title has been issued for the project, or after the Secretary certifies there exists a qualified entity to construct and operate a liq- Page 1229 TITLE 15—COMMERCE AND TRADE § 720n uefied natural gas project to transport liquefied natural gas from Southcentral Alaska. In no case shall loan guarantees be issued for more than one qualified project. (2) The Secretary may issue a Federal guar- antee instrument under this section for a quali- fied infrastructure project only if the loan or other debt obligation guaranteed by the instru- ment has been issued by an eligible lender. (3) The Secretary shall not require as a condi- tion of issuing a Federal guarantee instrument under this section any contractual commitment or other form of credit support of the sponsors (other than equity contribution commitments and completion guarantees), or any throughput or other guarantee from prospective shippers greater than such guarantees as shall be re- quired by the project owners. (4) Such loan guarantee may be utilized only by the project chosen by the Federal Energy Regulatory Commission as the qualified project. (c) Limitations on amounts (1) The amount of loans and other debt obliga- tions guaranteed under this section for a quali- fied infrastructure project shall not exceed 80 percent of the total capital costs of the project, including interest during construction. (2) The principal amount of loans and other debt obligations guaranteed under this section shall not exceed, in the aggregate, $18,000,000,000, which amount shall be indexed for United States dollar inflation from October 13, 2004, as meas- ured by the Consumer Price Index, except that the total amount of principal that may be guar- anteed for a qualified liquefied natural gas project may not exceed a principal amount in which the cost of loan guarantees, as defined by section 661a(5) of title 2, exceeds $2,000,000,000. (d) Loan terms and fees (1) The Secretary may issue Federal guarantee instruments under this section that take into account repayment profiles and grace periods justified by project cash flows and project-spe- cific considerations. The term of any loan guar- anteed under this section shall not exceed 30 years. (2) An eligible lender may assess and collect from the borrower such other fees and costs as- sociated with the application and origination of the loan or other debt obligation as are reason- able and customary for a project finance trans- action in the oil and gas sector. (e) Regulations The Secretary may issue regulations to carry out this section. (f) Authorization of appropriations There are authorized to be appropriated such sums as may be necessary to cover the cost of loan guarantees under this section, as defined by section 661a(5) of title 2. Such sums shall remain available until expended. (g) Definitions In this section: (1) Consumer Price Index The term ‘‘Consumer Price Index’’ means the Consumer Price Index for all-urban con- sumers, United States city average, as pub- lished by the Bureau of Labor Statistics, or if such index shall cease to be published, any successor index or reasonable substitute there- of. (2) Eligible lender The term ‘‘eligible lender’’ means any non- Federal qualified institutional buyer (as de- fined by section 230.144A(a) of title 17, Code of Federal Regulations (or any successor regula- tion), known as Rule 144A(a) of the Securities and Exchange Commission and issued under the Securities Act of 1933 [15 U.S.C. 77a et seq.]), including— (A) a qualified retirement plan (as defined in section 4974(c) of title 26) that is a quali- fied institutional buyer; and (B) a governmental plan (as defined in sec- tion 414(d) of title 26) that is a qualified in- stitutional buyer. (3) Federal guarantee instrument The term ‘‘Federal guarantee instrument’’ means any guarantee or other pledge by the Secretary to pledge the full faith and credit of the United States to pay all of the principal and interest on any loan or other debt obliga- tion entered into by a holder of a certificate of public convenience and necessity. (4) Qualified infrastructure project The term ‘‘qualified infrastructure project’’ means an Alaskan natural gas transportation project or system consisting of the design, en- gineering, finance, construction, and comple- tion of pipelines and related transportation and production systems (including gas treat- ment plants, liquification plants, and liquefied natural gas tankers for transportation of liq- uefied natural gas from southcentral Alaska), and appurtenances thereto, that are used to transport natural gas from the Alaska North Slope. (Pub. L. 108–324, div. C, § 116, Oct. 13, 2004, 118 Stat. 1265; Pub.L. 108–199, div. H, § 146, Jan. 23, 2004, 118 Stat. 444; Pub. L. 108–447, div. J, title I, § 114, Dec. 8, 2004, 118 Stat. 3346; Pub. L. 117–58, div. D, title IV, § 40401(d), Nov. 15, 2021, 135 Stat. 1037.) Editorial Notes REFERENCES IN TEXT The Securities Act of 1933, referred to in subsec. (g)(2), is title I of act May 27, 1933, ch. 38, 48 Stat. 74, which is classified generally to subchapter I (§ 77a et seq.) of chapter 2A of this title. For complete classifica- tion of this Act to the Code, see section 77a of this title and Tables. AMENDMENTS 2021—Subsec. (a)(1). Pub. L. 117–58, § 40401(d)(1)(A), struck out ‘‘to West Coast States’’ after ‘‘Alaska’’. Subsec. (a)(3). Pub. L. 117–58, § 40401(d)(1)(B), struck out ‘‘to the continental United States’’ after ‘‘Alaska’’. Subsec. (b)(1). Pub. L. 117–58, § 40401(d)(2), struck out ‘‘to West Coast States’’ after ‘‘Alaska’’. Subsec. (g)(4). Pub. L. 117–58, § 40401(d)(3), substituted ‘‘plants, liquification plants, and’’ for ‘‘plants liquification plants and’’ and struck out ‘‘to the West Coast’’ after ‘‘southcentral Alaska’’ and ‘‘to the conti- nental United States’’ after ‘‘Alaska North Slope’’. 2004—Subsec. (a)(1). Pub.L. 108–199, § 146(1), as amend- ed by Pub. L. 108–447, § 114(a)(1), (2), which directed the Page 1230 TITLE 15—COMMERCE AND TRADE §§ 721, 722 amendment of subsec. (a) by inserting ‘‘or with an enti- ty the Secretary determines is qualified to construct and operate a liquefied natural gas project to transport liquefied natural gas from Southcentral Alaska to West Coast States,’’ before ‘‘to issue’’, was executed to par. (1) of subsec. (a) to reflect the probable intent of Con- gress. Subsec. (b)(1). Pub.L. 108–199, § 146(2), as amended by Pub. L. 108–447, § 114(1)–(3), inserted before period at end ‘‘, or after the Secretary certifies there exists a quali- fied entity to construct and operate a liquefied natural gas project to transport liquefied natural gas from Southcentral Alaska to West Coast States. In no case shall loan guarantees be issued for more than one qualified project’’. Subsec. (b)(4). Pub. L. 108–447, § 114(b), added par. (4). Subsec. (c)(2). Pub. L. 108–199, § 146(3), as amended by Pub. L. 108–447, § 114(1), (2), (4), which directed the amendment of subsec. (a)(2) by inserting ‘‘, except that the total amount of principal that may be guaranteed for a qualified liquefied natural gas project may not ex- ceed a principal amount in which the cost of loan guar- antees, as defined by section 661a(5) of title 2, exceeds $2,000,000,000’’ before period at end, was executed by making the amendment to subsec. (c)(2), to reflect the probable intent of Congress. Subsec. (g)(4). Pub.L. 108–199, § 146(4), as amended by Pub. L. 108–447, § 114(1), (2), (5), inserted ‘‘or system’’ after ‘‘gas transportation project’’ and ‘‘liquification plants and liquefied natural gas tankers for transpor- tation of liquefied natural gas from Southcentral Alas- ka to the West Coast’’ after ‘‘including gas treatment plants’’. Statutory Notes and Related Subsidiaries WAGE RATE REQUIREMENTS For provisions relating to rates of wages to be paid to laborers and mechanics on projects for construction, alteration, or repair work funded under div. D or an amendment by div. D of Pub. L. 117–58, including au- thority of Secretary of Labor, see section 18851 of Title 42, The Public Health and Welfare. CHAPTER 16—EMERGENCY RELIEF §§ 721, 722. Omitted Editorial Notes CODIFICATION Sections, acts May 12, 1933, ch. 30, §§ 1, 2, 48 Stat. 55, 56; Feb. 15, 1934, ch. 13, § 1, 48 Stat. 351, were enacted as temporary legislation during the economic emergency in 1933. SUPPLEMENTARY LEGISLATION Legislation supplementary to the Federal Emergency Relief Act of 1933 was contained in the following acts, executive orders, and reorganization plans: Res. Apr. 8, 1935, ch. 48, 49 Stat. 115; Aug. 12, 1935, ch. 508, § 3, 49 Stat. 596; Aug. 24, 1935, ch. 641, § 55, 49 Stat. 781; Feb. 11, 1936, ch. 49, § 7, 49 Stat. 1134; Feb. 11, 1936, ch. 51, 49 Stat. 1135; June 22, 1936, ch. 689, title II, 49 Stat. 1608; Res. Feb. 24, 1937, ch. 17, 50 Stat. 21; June 29, 1937, 11 p.m., ch. 401, 50 Stat. 357; Mar. 2, 1938, ch. 38, 52 Stat. 83; June 21, 1938, ch. 554, 52 Stat. 817; Feb. 4, 1939, ch. 1, 53 Stat. 508; Res. Apr. 1, 1939, ch. 34, 53 Stat. 555; Apr. 13, 1939, ch. 62, 53 Stat. 578; Res. June 30, 1939, ch. 252, 53 Stat. 927; Apr. 6, 1940, ch. 77, 54 Stat. 99; June 26, 1940, ch. 428, title II, 54 Stat. 590; Res. June 26, 1940, ch. 432, 54 Stat. 611; June 27, 1940, ch. 437, title I, 54 Stat. 633; Oct. 9, 1940, ch. 780, title I, 54 Stat. 1035; Mar. 1, 1941, ch. 9, § 1, 55 Stat. 15; Apr. 5, 1941, ch. 40, § 1, 55 Stat. 110; July 1, 1941, ch. 266, 55 Stat. 396; July 1, 1941, ch. 269, title II, 55 Stat. 487; Dec. 17, 1941, ch. 591, 55 Stat. 810; June 27, 1942, ch. 450, § 1, 56 Stat. 410; July 2, 1942, ch. 475, title II, 56 Stat. 571; Res. July 2, 1942, ch. 479, 56 Stat. 634; June 22, 1943, ch. 138, 57 Stat. 161; June 26, 1943, ch. 145, title I, § 101, 57 Stat. 180; July 12, 1943, ch. 221, title VII, 57 Stat. 518; July 12, 1943, 4 p.m., E. W. T., ch. 229, title I, 57 Stat. 539, 540; Dec. 23, 1943, ch. 380, title I, 57 Stat. 615; June 28, 1944, ch. 302, title II, 58 Stat. 564; June 28, 1944, ch. 304, title I, 58 Stat. 602; Apr. 25, 1945, ch. 95, title I, § 1, 59 Stat. 80. Ex. Ord. Nos. 7305, Feb. 28, 1936; 7334, Apr. 3, 1936, 1 F.R. 121; 7436, Aug. 21, 1936, 1 F.R. 1204; 7469, Oct. 13, 1936, 1 F.R. 1581; 7512, Dec. 16, 1936, 1 F.R. 2159; 7553, Feb. 17, 1937, 2 F.R. 338. Reorg. Plan No. I of 1939, §§ 201, 206, 301, 305, 306, eff. July 1, 1939, 4 F.R. 2728–2730, 53 Stat. 1424–1428. § 723. Repealed. Pub. L. 89–554, § 8(a), Sept. 6, 1966, 80 Stat. 648 Section, acts May 12, 1933, ch. 30, § 3, 46 Stat. 56; Feb. 15, 1934, ch. 13, § 1, 48 Stat. 351, was enacted as tem- porary legislation during the economic emergency in 1933. §§ 724 to 728. Omitted Editorial Notes CODIFICATION Sections, acts May 12, 1933, ch. 30, §§ 4–8, 48 Stat. 56–58; Feb. 15, 1934, ch. 13, § 1, 48 Stat. 351, were enacted as temporary legislation during the economic emer- gency in 1933. CHAPTER 16A—EMERGENCY PETROLEUM ALLOCATION §§ 751 to 760h. Omitted Editorial Notes CODIFICATION Sections 751 to 760h were omitted pursuant to section 760g of this title. Section 751, Pub. L. 93–159, § 2, Nov. 27, 1973, 87 Stat. 628, provided Congressional findings and declaration of purpose. Section 752, Pub. L. 93–159, § 3, Nov. 27, 1973, 87 Stat. 628, provided definitions for this chapter. Section 753, Pub. L. 93–159, § 4, Nov. 27, 1973, 87 Stat. 629; Pub. L. 93–511, Dec. 5, 1974, 88 Stat. 1608; Pub. L. 94–99, § 2, Sept. 29, 1975, 89 Stat. 481; Pub. L. 94–133, § 1, Nov. 14, 1975, 89 Stat. 694; Pub. L. 94–163, title IV, §§ 401(b)(1)–(3), 402(a), 403(a), 451, Dec. 22, 1975, 89 Stat. 946, 948; Pub. L. 96–294, title II, § 274, June 30, 1980, 94 Stat. 711, provided for mandatory allocation. Section 754, Pub. L. 93–159, § 5, Nov. 27, 1973, 87 Stat. 633; Pub. L. 94–163, title IV, § 452, Dec. 22, 1975, 89 Stat. 948, provided for administration, enforcement, delega- tion of authority, and civil and criminal penalties. Section 755, Pub. L. 93–159, § 6, Nov. 27, 1973, 87 Stat. 633; Pub. L. 94–163, title IV, § 453, Dec. 22, 1975, 89 Stat. 949, related to impact of this chapter on other laws. Section 756, Pub. L. 93–159, § 7, Nov. 27, 1973, 87 Stat. 635, related to monitoring of program by Federal Trade Commission. Section 757, Pub. L. 93–159, § 8, as added Pub. L. 94–163, title IV, § 401(a), Dec. 22, 1975, 89 Stat. 941; amended Pub. L. 94–385, title I, §§ 121, 122, Aug. 14, 1976, 90 Stat. 1132, 1133, related to oil pricing policy. Section 758, Pub. L. 93–159, § 9, as added Pub. L. 94–163, title IV, § 401(a), Dec. 22, 1975, 89 Stat. 946, related to passthroughs of cost price decreases. Section 759, Pub. L. 93–159, § 10, as added Pub. L. 94–163, title IV, § 402(c), Dec. 22, 1975, 89 Stat. 947, lim- ited pricing authority of President. Section 760, Pub. L. 93–159, § 11, as added Pub. L. 94–163, title IV, § 454, Dec. 22, 1975, 89 Stat. 950, related to reevaluation and promulgation of amendments to regulations and report to Congress. Section 760a, Pub. L. 93–159, § 12, as added Pub. L. 94–163, title IV, § 455, Dec. 22, 1975, 89 Stat. 950, related to conversion mechanism to standby authorities.