; or (ii) the transmission and distribution capability to improve reliability in rural areas, including high energy cost rural areas. (B) Use of energy storage systems to improve the security of emergency response infrastructure. (C) Integration of energy storage systems with a renewable energy resource production source, at the source or away from the source. (D) Use of energy storage systems to provide ancillary services for grid management. (E) Advancement of power conversion systems to make the systems smarter, more efficient, able to communicate with other inverters, and able to control voltage. (F) Use of energy storage systems to optimize transmission and distribution operation and power quality to address overloaded lines and maintenance of transformers and substations. (G) Use of energy storage systems for peak load management of homes, businesses, and the grid, particularly to offset investments in new grid capacity. (H) Use of energy storage system devices to meet electricity demand during nonpeak generation periods to make better use of existing grid assets. (5) Restriction on use of funds Any eligible entity that receives a loan under paragraph (1) may only use the loan to fund programs relating to the demonstration and deployment of energy storage systems in households, businesses, and communities. (b) Loan terms and conditions (1) Terms and conditions Notwithstanding any other provision of law, in providing a loan under this section, the Secretary shall provide the loan on such terms and conditions as the Secretary determines, after consultation with the Secretary of the Treasury, in accordance with this section. (2) Specific appropriation No loan shall be made unless an appropriation for the full amount of the loan has been specifically provided for that purpose. (3) Repayment No loan shall be made unless the Secretary determines that there is reasonable prospect of repayment of the principal and interest by the borrower of the loan. (4) Interest rate A loan provided under this section shall bear