SALE OF THE STAGECOACH RESERVOIR PROJECT LOAN.

SEC. 1002. SALE OF THE STAGECOACH RESERVOIR PROJECT LOAN. (a) Agreement.— (1) In general.—As soon as practicable after the date of enactment of this Act, the Secretary of the Interior shall conduct appropriate investigations regarding, and is authorized to sell, or accept prepayment on, the loan contract described in paragraph (2) to the Upper Yampa Water Conservancy District in Colorado (referred to in this title as the “District”) for the Stagecoach Reservoir Project. (2) Loan contract.— The loan contract described in paragraph (1) is numbered 7-07-40-R0480 and was entered into pursuant to the Small Reclamation Projects Act of 1956 (43 U.S.C. 422a et seq.). (b) Payment. —Any agreement negotiated pursuant to subsection (a) shall realize an amount to the Federal Government 108 STAT. 4548 calculated by discounting the remaining payments due on the loans by the interest rate determined pursuant to subsection (c). (c) Interest Rate.— (1) In general.—The Secretary shall determine the interest rate in accordance with the guidelines set forth in Circular A–129 issued by the Office of Management and Budget concerning loan sales and prepayment of loans. (2) Determination.—In determining the interest rate, the Secretary— (A) shall not equate an appropriate amount of prepayment with the price of the loan if it were to be sold on the open market to a third party; and (B) shall, in following the guidelines set forth in Circular A-129 regarding an allowance for administrative expenses and possible losses, make such an allowance from the perspective of the Federal Government as lender and not from the perspective of a third party purchasing the loan on the open market. (3) Adjustment.—If the borrower or purchaser of the loan has access to tax-exempt financing, including tax-exempt bonds, tax-exempt cash reserves, and cash and loans of any kind from any tax-exempt entity, to finance the transaction, and if the Office of Management and Budget grants the Secretary the right to conduct such a transaction, then the interest rate by which the Secretary discounts the remaining payments due on the loan shall be adjusted by an amount that compensates the Federal Government for the direct or indirect loss of future tax revenues. (4) Limitation.—Notwithstanding any other provision of law, the interest rate shall not exceed a composite interest rate consisting of the current market yield on Treasury securities of comparable maturities. (5) Approval.—The Secretary shall obtain approval from the Secretary of the Treasury and the Director of the Office of Management and Budget of the final terms of any loan sale or prepayment made pursuant to this title.