Amends the Public Utility Regulatory Policies Act of 1978 (PURPA) to instruct the Secretary of Energy to make loans to publicly owned electric utilities to carry out qualified projects, approved by the Secretary, which comply with federal energy efficiency resource standards.
Authorizes such loans to be used to: (1) finance or refinance the costs of the acquisition, construction, or improvement of an electric generation, transmission, distribution facility, or utility property or assets, including the costs of any indirect acquisition of such facility, utility property or assets; and (2) refinance bonds issued by specified state utilities.
Authorizes the Secretary to disapprove a loan application for a project if the Secretary determines that revenues available to repay the loan are unlikely to be sufficient to cover its repayment obligations.
Sets a maximum loan terms of 30 years. Authorizes appropriations.