§ 838k. — Bonneville Power Administration bonds.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 16USC838k]
TITLE 16--CONSERVATION
CHAPTER 12G--PACIFIC NORTHWEST FEDERAL TRANSMISSION SYSTEM
Sec. 838k. Bonneville Power Administration bonds
(a) Issuance and sale; terms and conditions; interest rate; limitation
on aggregate principal amount outstanding
The Administrator is authorized to issue and sell to the Secretary
of the Treasury from time to time in the name and for and on behalf of
the Bonneville Power Administration bonds, notes, and other evidences of
indebtedness (in this chapter collectively referred to as ``bonds'') to
assist in financing the construction, acquisition, and replacement of
the transmission system, to implement the Administrator's authority
pursuant to the Pacific Northwest Electric Power Planning and
Conservation Act [16 U.S.C. 839 et seq.] (including his authority to
provide financial assistance for conservation measures, renewable
resources, and fish and wildlife, but not including the authority to
acquire under section 6 of that Act [16 U.S.C. 839d] electric power from
a generating facility having a planned capability greater than 50
average megawatts), and to issue and sell bonds to refund such bonds.
Such bonds shall be in such forms and denominations, bear such
maturities, and be subject to such terms and conditions as may be
prescribed by the Secretary of the Treasury taking into account terms
and conditions prevailing in the market for similar bonds, the useful
life of the facilities for which the bonds are issued, and financing
practices of the utility industry. Refunding provisions may be
prescribed by the Administrator. Such bonds shall bear interest at a
rate determined by the Secretary of the Treasury taking into
consideration the current average market yield on outstanding marketable
obligations of the United States of comparable maturities, plus an
amount in the judgment of the Secretary of the Treasury to provide for a
rate comparable to the rates prevailing in the market for similar bonds
issued by Government corporations. 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 such year to be repaid to the
Treasury by the end of such year under the repayment criteria of the
Secretary of Energy and if such failure is due to reasons other than (A)
a decrease in power sale revenues due to fluctuating streamflows or (B)
other reasons beyond the control of the Administrator, the Secretary of
the Treasury may increase the interest rate applicable to the
outstanding bonds issued by the Administrator during such fiscal year.
Such increase shall be effective commencing with the fiscal year
immediately following the fiscal year during which such failure occurred
and shall not exceed 1 per centum for each such fiscal year during which
such repayments are not in accord with such criteria. The Secretary of
the Treasury shall take into account amounts that the Administrator has
repaid in advance of any repayment criteria in determining whether to
increase such rate. Before such rate is increased, the Secretary of the
Treasury, in consultation with the Administrator and the Federal Energy
Regulatory Commission, must be satisfied that the Administrator will
have the ability to pay such increased rate, taking into account the
Administrator's obligations. Such increase shall terminate with the
fiscal year in which repayments (including repayments of the increased
rate) are in accordance with the repayment criteria of the Secretary of
Energy. The aggregate principal amount of any such bonds outstanding at
any one time shall not exceed $1,250,000,000 prior to October 1, 1981.
Such aggregate principal limitation shall be increased by an additional
$1,250,000,000 after October 1, 1981, as provided in advance in annual
appropriation Acts, and such increased amount shall be reserved for the
purpose of providing funds for conservation and renewable resource loans
and grants in a special revolving account created therefor in the Fund.
The funds from such revolving account shall not be deemed State or local
funds.
(b) Payment of principal, premiums, and interest from net proceeds;
``net proceeds'' defined
The principal of, premiums, if any, and interest on such bonds shall
be payable solely from the Administrator's net proceeds as hereinafter
defined. ``Net proceeds'' shall mean for the purposes of this section
the remainder of the Administrator'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 Treasury; public debt
transactions
The Secretary of the Treasury shall purchase forthwith any bonds
issued by the Administrator 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 securities 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 Secretary 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, Sec. 13, Oct. 18, 1974, 88 Stat. 1380; Pub. L. 96-501,
Sec. 8(c), (d), Dec. 5, 1980, 94 Stat. 2728, 2729.)
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 (Sec. 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, Sec. 4(b),
Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title
31, Money and Finance.
Amendments
1980--Subsec. (a). Pub. L. 96-501, Sec. 8(d), inserted provision
relating to the implementation of the Administrator's authority pursuant
to the Pacific Northwest Electric Power Planning and Conservation Act,
inserted ``issued by Government corporations'' after ``rates prevailing
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
resource 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 Administrator, 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, Sec. 8(c), substituted ``, (b)(11), and
(b)(12) of this title,'' for ``and (b)(11) of this title,''.
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 Secretary 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
organizational entity within Department of Energy and headed by an
Administrator.
Section Referred to in Other Sections
This section is referred to in sections 838i, 838l, 839e of this
title; title 2 section 905.
