text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Rural Energy Communities Development 
  Act of 2010''.
  
  SEC. 2. RURAL ENERGY COMMUNITIES LOAN PROGRAM.
  
      (a) Authority.--The Secretary of Agriculture may make loans 
  pursuant to section 306(a)(1) of the Consolidated Farm and Rural 
  Development Act (7 U.S.C. 1926), to eligible communities for essential 
  community facilities (as such term is defined in section 3570.53 of 
  title 7, Code of Federal Regulations or any successor regulation to 
  such section), for any purpose described in subsection (c).
      (b) Eligible Communities.--For purposes of this section, an 
  eligible community--
              (1) is a city, town, or incorporated area that has a 
          population of less than 20,000 individuals; and
              (2) has, during the period from January 1999 through 
          December 2009, experienced net job growth in the energy sector 
          of not less than 20 percent, as determined by the Bureau of the 
          Census or a State agency that collects information on such 
          growth.
      (c) Use of Loan Funds.--An eligible community may use funds 
  provided from a loan under this section for any of the following 
  purposes:
              (1) Essential community facilities, including--
                      (A) the conservation, development, use, and control 
                  of water;
                      (B) the installation or improvement of drainage or 
                  waste disposal facilities;
                      (C) transportation facilities; and
                      (D) affordable housing (as determined by the 
                  Secretary).
              (2) Land acquisition for such facilities.
              (3) Municipal staff necessary to carry out projects for 
          such facilities.
              (4) Updates to comprehensive plans or housing plans of the 
          community.
      (d) Application.--To be eligible to receive a loan under this 
  section, an eligible community shall submit to the Secretary an 
  application at such time and in such manner as the Secretary shall 
  require that contains, in addition to any other information the 
  Secretary may require, the following information:
              (1) The identification of projects for which loan funds 
          will be used.
              (2) A certification that loan funds will be used only for 
          the purposes described in subsection (c).
              (3) Documentation demonstrating the legal capacity and 
          financial ability of the community to repay the loan. Such 
          documentation shall include--
                      (A) evidence that the community has a dedicated 
                  source of revenue from any energy tax revenue it 
                  receives from the State;
                      (B) an estimate of any energy tax revenue the 
                  community expects to receive during the 10-year period 
                  beginning on the first day of the first fiscal year 
                  that begins after the date funds from the loan are made 
                  available to the eligible community from the State 
                  office, if any, that distributes energy tax revenue to 
                  energy-producing communities; and
                      (C) documentation of any non-Federal supplemental 
                  funds to be made available for essential community 
                  facilities to be funded with loan amounts received 
                  under this section.
      (e) Priority Treatment.--In approving applications for loans under 
  this section, the Secretary shall give priority to any applicant acting 
  on behalf of an eligible community, that--
              (1) has submitted to the Secretary completed plans or 
          studies that identify specific infrastructure or capacity needs 
          that will be addressed by projects funded with the loan amounts 
          received under this section; or
              (2) demonstrates that projects funded with loan amounts 
          received under this section will be carried out with regional 
          cooperation with adjacent jurisdictions.
      (f) Loan Terms.--
              (1) Amount.--The principal amount of any loan under this 
          section may not exceed the lesser of--
                      (A) $20,000,000; or
                      (B) 80 percent of the energy tax revenue that the 
                  applicant expects to receive during the period 
                  described in subsection (d)(2)(B).
              (2) Interest rate.--Interest rates on loans under this 
          section shall be subject to the provisions of section 307(a)(4) 
          of the Consolidated Farm and Rural Development Act (7 U.S.C. 
          1927(a)(4)) applicable to loans under sections 306(a)(1) and 
          310B of such Act (7 U.S.C. 1926(a) and 1932).
              (3) Term to maturity.--The period for repayment of loans 
          under this section shall not be longer than 15 years.
      (g) Forgiveness.--If an applicant is unable to repay the full 
  balance of the loan it receives under this section because 
  circumstances beyond the control of the applicant prevented the 
  applicant from collecting the amount of expected energy tax revenue 
  specified in the application submitted under subsection (c), the 
  Secretary may forgive an amount that equals not more than 50 percent of 
  the remaining balance of such loan.
      (h) Report.--Each year, until the loan an eligible community 
  receives under this section is repaid, such community shall submit to 
  the Secretary of Agriculture a report. Each report shall contain a 
  description of the progress made on each project or investment financed 
  with funds received from a loan under this section.
      (i) Appropriations.--For costs (as such term is defined under 
  section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) 
  of loans under this section, there are authorized to be appropriated an 
  aggregate of $75,000,000 for fiscal year 2011 and 2012.
      (j) Maximum Amount of Commitments.--The Secretary may not make 
  loans under this section or enter into commitments to make such loans, 
  the total amount of which, exceeds $400,000,000.
      (k) Sunset.--The Secretary may not make or enter into a commitment 
  to make a loan under this section after September 30, 2012.
  
  SEC. 3. WAIVER OF INCOME MAXIMUMS FOR SELECTED USDA RURAL DEVELOPMENT 
                PROGRAMS.
  
      (a) Section 502 Loans.--For each of fiscal years 2011 through 2016, 
  with respect to an applicant for a direct loan or a guaranteed loan 
  under section 502 of the Housing Act of 1949 (42 U.S.C. 1472), who 
  resides in an eligible community described in section 2(b)--
              (1) the Secretary shall waive any income limitations 
          related to obtaining a loan under section 502 of such Act (42 
          U.S.C. 1472); and
              (2) the requirement related to eligibility of borrowers 
          under section 502(h)(3) of such Act (42 U.S.C. 1472(h)(3)) 
          shall not apply.
      (b) Site Loans; Multi-Family Housing Loans.--For each of fiscal 
  years 2011 through 2016, the following shall apply:
              (1) Section 524.--Any organization or tribe receiving a 
          loan under section 524 of the Housing Act of 1949 (42 U.S.C. 
          1490d) shall waive any income limitations related to the 
          occupancy of any housing built on any building site that is 
          located in an eligible community described in section 2(b) of 
          this Act and that is financed by such loan.
              (2) Section 538.--Any organization, State agency, 
          subdivision thereof, Indian tribe, or private entity that 
          receives a loan under section 538 of such Act (42 U.S.C. 1490p-
          2) shall waive any income limitations related to the occupancy 
          of any housing that is located in an eligible community 
          described in section 2(b) of this Act and for which the 
          development costs were funded by such a loan.
target: Rural Energy Communities Development Act of 2010 - Authorizes the Secretary of Agriculture (USDA) to make water and waste facility loans to an eligible city, town, or incorporated area with a population of less than 20,000 that has, from January 1999 through December 2009, experienced energy sector job growth of not less than 20%.
  
  Makes such loans available for: (1) essential community facilities, including water conservation, waste disposal facilities, transportation facilities, and affordable housing; (2) land acquisition; (3) staff; and (4) comprehensive community or housing plan updates.
  
  Prohibits the Secretary from making or entering into a loan commitment after September 30, 2012.
  
  Directs the Secretary to waive income limitations for FY2011-FY2016 for certain: (1) rural housing loans, including Doug Bereuter single-family housing loan guarantees; (2) low- and moderate-income rural housing loans; and (3) multifamily rural rental housing loan guarantees.
feat_title: To provide for loans to rural energy-producing communities in the United States, and for other purposes.