loans for power transmission facilities

loans for power transmission facilities Sec. 107. (a) Section 306(a) of the Consolidated Farm and Rural Development Act is amended by adding at the end thereof a new paragraph (14) as follows: “(14)(A) The Secretary may make or insure loans in the full amount thereof, but not to exceed $1,000,000 for any such loan, to associations, including corporations not operated for profit, Indian tribes on Federal and State reservations and other federally recognized Indian tribes, and public and quasi-public agencies, for the purpose of financing the construction, acquisition, and operation of transmission facilities for any electric system that is owned and operated by a public body located in a rural area and as of October 1, 1976, was receiving bulk power from any of the following agencies of the Department of the Interior: “(i) the Southwestern Power Administration, “(ii) the Southeastern Power Administration, “(iii) the Bonneville Power Administration, “(iv) the Bureau of Reclamation, or “(v) the Alaska Power Administration. A loan may not be made or insured under this paragraph unless the Secretary determines that the applicant for the loan cannot obtain sufficient credit elsewhere from reliable sources at reasonable rates and terms for financing the construction, acquisition, and operation of such facilities. “(B) Interest or other income from obligations evidencing loans guaranteed under this paragraph shall be included in gross income for the purposes of chapter 1 of the Internal Revenue Code of 1954. “(C) The Administrator of the Rural Electrification Administration shall administer loans made or insured under this paragraph. “(D) The authority provided to the Secretary by subparagraph (A) of this paragraph shall terminate September 30, 2006.”. (b) Section 309A(a) of the Consolidated Farm and Rural Development Act is amended by inserting “306(a)(14),” immediately after “sections 304(b), 306(a)(1),”.