To amend the Rural Electrification Act of 1936.

SA 1726. Mr. BENNETT (for himself and Mr. Kohl) proposed an amendment to the bill H.R. 2744, making appropriations for Agriculture, Rural Development, Food and Drug Administration, and Related Agencies for the fiscal year ending September 30, 2006, and for other purposes; as follows:

On Page 154, line 20, after “Iowa,”, insert the following:

“the Steeple Run and West Branch DuPage River Watershed projects in DuPage County, Illinois,”

On page 167, line 22, strike “(a)” through and including “required fee.” on page 170, line 11, and insert the following:

“The Rural Electrification Act of 1936 is amended by inserting after section 315 (7 U.S.C. 940e) the following:

“SEC. 316. EXTENSION OF PERIOD OF EXISTING GUARANTEE.

“(a) In General.--Subject to the limitations in this section and the provisions of the Federal Credit Reform Act of 1990, as amended, a borrower of a loan made by the Federal Financing Bank and guaranteed under this Act may request an extension of the final maturity of the outstanding principal balance of such loan or any loan advance thereunder. If the Secretary and the Federal Financing Bank approve such an extension, then the period of the existing guarantee shall also be considered extended.

“(b) Limitations.--

“(1) Feasibility and Security.--Extensions under this section shall not be made unless the Secretary first finds and certifies that, after giving effect to the extension, in his judgment the security for all loans to the borrower made or guaranteed under this Act is reasonably adequate and that all such loans will be repaid within the time agreed.

“(2) Extension of Useful Life of Collateral.--Extensions under this section shall not be granted unless the borrower first submits with its request either--

“(A) evidence satisfactory to the Secretary that a Federal or State agency with jurisdiction and expertise has made an official determination, such as through a licensing proceeding, extending the useful life of a generating plant or transmission line pledged as collateral to or beyond the new final maturity date being requested by the borrower, or

“(B) a certificate from an independent licensed engineer concluding, on the basis of a thorough engineering analysis satisfactory to the Secretary, that the useful life of the generating plant or transmission line pledged as collateral extends to or beyond the new final maturity date being requested by the borrower.

“(3) Amount Eligible for Extension.--Extensions under this section shall not be granted if the principal balance extended exceeds the appraised value of the generating plant or transmission line referred to in subsection paragraph (2).

“(4) Period of Extension.--Extensions under this section shall in no case result in a final maturity greater than 55 years from the time of original disbursement and shall in no case result in a final maturity greater than the useful life of the plant.

“(5) Number of Extensions.--Extensions under this section shall not be granted more than once per loan advance.

“(c) Fees.--

“(1) In General.--A borrower that receives an extension under this section shall pay a fee to the Secretary which shall be credited to the Rural Electrification and Telecommunications Loans Program account. Such fees shall remain available without fiscal year limitation to pay the modification costs for extensions.

“(2) Amount.--The amount of the fee paid shall be equal to the modification cost, calculated in accordance with section 502 of the Federal Credit Reform Act of 1990, as amended, of such extension.

“(3) Payment.--The borrower shall pay the fee required under this section at the time the existing guarantee is extended by making a payment in the amount of the required fee.”.