Gov. loans for off-grid power

Small beginnings There has been a rush of government announcements for loans to bring off-grid power to both rural and urban areas.

The Department of Agriculture has issued two schemes and the Public Health and Welfare section of the United States code calls for the Energy Secretary to favor projects which include “designing a local distributed energy system that incorporates renewable hydrogen production, off- grid electricity production….in industrial or commercial service.”

United States Code

Title 7, Chapter 31, Section 904

English

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TITLE 7 — AGRICULTURE

CHAPTER 31 — RURAL ELECTRIFICATION AND TELEPHONE SERVICE

Subchapter I — RURAL ELECTRIFICATION

§ 904. Loans by Secretary of Agriculture for electrical plants and transmission lines; preferences; consent of State authorities

    (a) In general

      The Secretary is authorized and empowered, from the sums hereinbefore 

    authorized, to make loans for rural electrification to persons, 

    corporations, States, Territories, and subdivisions and agencies thereof, 

    municipalities, peoples’ utility districts and cooperative, nonprofit, or 

    limited-dividend associations, organized under the laws of any State or 

    Territory of the United States, for the purpose of financing the 

    construction and operation of generating plants, electric transmission and 

    distribution lines or systems for the furnishing and improving of electric 

    service to persons in rural areas, including by assisting electric 

    borrowers to implement demand side management, energy efficiency and 

    conservation programs, and on-grid and off-grid renewable energy systems, 

    and loans, from funds available under section 903 of this title, to 

    cooperative associations and municipalities for the purpose of enabling 

    said cooperative associations, and municipalities to the extent that such 

    indebtedness was incurred with respect to electric transmission and 

    distribution lines or systems or portions thereof serving persons in rural 

    areas, to discharge or refinance long-term debts owned by them to the 

    Tennessee Valley Authority on account of loans made or credit extended 

    under the terms of the Tennessee Valley Authority Act of 1933, as amended 

    16 U.S.C. 831 et seq.: Provided, That the Secretary, in making such loans, 

    shall give preference to States, Territories, and subdivisions and agencies 

    thereof, municipalities, peoples’ utility districts, and cooperative, 

    nonprofit, or limited-dividend associations, the projects of which comply 

    with the requirements of this chapter.

    (b) Terms and conditions

      Such loans shall be on such terms and conditions relating to the 

    expenditure of the moneys loaned and the security therefor as the Secretary 

    shall determine and may be made payable in whole or in part out of the 

    income, except that no loan for the construction, operation, or enlargement 

    of any generating plant shall be made unless the consent of the State 

    authority having jurisdiction in the premises is first obtained.

    (c) Direct loans

      (1) Direct hardship loans

        Direct hardship loans under this section shall be for the same purposes 

      and on the same terms and conditions as hardship loans made under section 

      935(c)(1) of this title.

      (2) Other direct loans

        All other direct loans under this section shall bear interest at a rate 

      equal to the then current cost of money to the Government of the United 

      States for loans of similar maturity, plus 1/8 of 1 percent.

    (d) Certification

      Loans under this section shall not be made unless the Secretary finds and 

    certifies that in his judgment the security therefor is reasonably adequate 

    and such loan will be repaid within the time agreed.

TITLE 7 — AGRICULTURE

CHAPTER 31 — RURAL ELECTRIFICATION AND TELEPHONE SERVICE

Subchapter I — RURAL ELECTRIFICATION

§ 902. General authority of Secretary of Agriculture

    (a) Loans

      The Secretary of Agriculture (referred to in this chapter as the 

    ”Secretary”) is authorized and empowered to make loans in the several 

    States and Territories of the United States for rural electrification and 

    for the purpose of furnishing and improving electric and telephone service 

    in rural areas, as provided in this chapter, and for the purpose of 

    assisting electric borrowers to implement demand side management, energy 

    efficiency and conservation programs, and on-grid and off-grid renewable 

    energy systems.

    (b) Investigations and reports

      The Secretary may make, or cause to be made, studies, investigations, and 

    reports regarding matters, including financial, technological, and 

    regulatory matters, affecting the condition and progress of electric, 

    telecommunications, and economic development in rural areas, and publish 

    and disseminate information with respect to the matters.

11 April 2009

United States Code

Title 42, Chapter 149, Section 16157

English

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TITLE 42 — THE PUBLIC HEALTH AND WELFARE

CHAPTER 149 — NATIONAL ENERGY POLICY AND PROGRAMS

Subchapter VIII — HYDROGEN

§ 16157. Demonstration

    (a) In general

      In carrying out the programs under this section, the Secretary shall fund 

    a limited number of demonstration projects, consistent with this subchapter 

    and a determination of the maturity, cost-effectiveness, and environmental 

    impacts of technologies supporting each project. In selecting projects 

    under this subsection, the Secretary shall, to the extent practicable and 

    in the public interest, select projects that—

        (1) involve using hydrogen and related products at existing facilities 

      or installations, such as existing office buildings, military bases, 

      vehicle fleet centers, transit bus authorities, or units of the National 

      Park System;

        (2) depend on reliable power from hydrogen to carry out essential 

      activities;

        (3) lead to the replication of hydrogen technologies and draw such 

      technologies into the marketplace;

        (4) include vehicle, portable, and stationary demonstrations of fuel 

      cell and hydrogen-based energy technologies;

        (5) address the interdependency of demand for hydrogen fuel cell 

      applications and hydrogen fuel infrastructure;

        (6) raise awareness of hydrogen technology among the public;

        (7) facilitate identification of an optimum technology among competing 

      alternatives;

        (8) address distributed generation using renewable sources;

        (9) carry out demonstrations of evolving hydrogen and fuel cell 

      technologies in national parks, remote island areas, and on Indian tribal 

      land, as selected by the Secretary;

        (10) carry out a program to demonstrate developmental hydrogen and fuel 

      cell systems for mobile, portable, and stationary uses, using improved 

      versions of the learning demonstrations program concept of the Department 

      including demonstrations involving—

          (A) light-duty vehicles;

          (B) heavy-duty vehicles;

          (C) fleet vehicles;

          (D) specialty industrial and farm vehicles; and 

          (E) commercial and residential portable, continuous, and backup 

        electric power generation;

        (11) in accordance with any code or standards developed in a region, 

      fund prototype, pilot fleet, and infrastructure regional hydrogen supply 

      corridors along the interstate highway system in varied climates across 

      the United States; and

        (12) fund demonstration programs that explore the use of hydrogen 

      blends, hybrid hydrogen, and hydrogen reformed from renewable 

      agricultural fuels, including the use of hydrogen in hybrid electric, 

      heavier duty, and advanced internal combustion-powered vehicles.

      The Secretary shall give preference to projects which address multiple 

    elements contained in paragraphs (1) through (12).

    (b) System demonstrations

        (1) 1 In general

          (A) devising system design concepts that provide for the use of 

        advanced composite vehicles in programs under section 16122 of this 

        title that—

            (i) have as a primary goal the reduction of drive energy 

          requirements;

            (ii) after 2010, add another research and development phase, as 

          defined in subsection (c), including the vehicle and infrastructure 

          partnerships developed under the learning demonstrations program 

          concept of the Department; and

            (iii) are managed through an enhanced FreedomCAR program within the 

          Department that encourages involvement in cost-shared projects by 

          manufacturers and governments; and

          (B) designing a local distributed energy system that—

            (i) incorporates renewable hydrogen production, off- grid 

          electricity production, and fleet applications in industrial or 

          commercial service;

            (ii) integrates energy or applications described in clause (i), 

          such as stationary, portable, micro, and mobile fuel cells, into a 

          high-density commercial or residential building complex or 

          agricultural community; and

            (iii) is managed in cooperation with industry, State, tribal, and 

          local governments, agricultural organizations, and nonprofit 

          generators and distributors of electricity.

    (c) Identification of new program requirements

      In carrying out the demonstrations under subsection (a), the Secretary, 

    in consultation with the Task Force and the Technical Advisory Committee, 

    shall—

        (1) after 2008 for stationary and portable applications, and after 2010 

      for vehicles, identify new requirements that refine technological 

      concepts, planning, and applications; and

        (2) during the second phase of the learning demonstrations under 

      subsection (b)(1)(A)(ii), redesign subsequent program work to incorporate 

      those requirements.

    (d) Authorization of appropriations

      There are authorized to be appropriated to carry out this section—

        (1) $185,000,000 for fiscal year 2006;

        (2) $200,000,000 for fiscal year 2007;

        (3) $250,000,000 for fiscal year 2008;

        (4) $300,000,000 for fiscal year 2009;

        (5) $375,000,000 for fiscal year 2010; and

        (6) such sums as are necessary for each of fiscal years 2011 through 

      2020.

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