-CITE-


    16 USC Sec. 838k                                             01/26/98

-EXPCITE-


    TITLE 16 - CONSERVATION


    CHAPTER 12G - PACIFIC NORTHWEST FEDERAL TRANSMISSION SYSTEM

-HEAD-


    Sec. 838k. Bonneville Power Administration bonds

-STATUTE-


    (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.

-SOURCE-


    (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.)

-REFTEXT-


                             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.

-COD-


                                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.

-MISC3-


                                 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.

-TRANS-


                           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.

-SECREF-


                   SECTION REFERRED TO IN OTHER SECTIONS


      This section is referred to in sections 838i, 838l, 839e of this


    title; title 2 section 905.