§16503 — Title 42 The Public Health and Welfare | U.S. Code

Summary

Pays for federal loan guarantees to back commercial demonstration projects that make ethanol from sugarcane, bagasse, or other sugarcane byproducts. The Secretary may issue these guarantees to projects that try to prove ethanol can be made from those feedstocks on a commercial scale. Applicants must show the design worked in a continuous process facility, the project passed a full technical review, it will be economically viable with the guarantee, and loan repayment is reasonably assured. Guarantees may cover up to 80% of estimated costs and no more than $50,000,000 per project. The Secretary may add extra guarantees to cover up to 80% of cost overruns but only up to 15% of the original guarantee, and those extra guarantees are 100% guaranteed for principal and interest.

Title 42, §16503

The Public Health and Welfare — Source: USLM XML via OLRC

(a)Funds may be provided for the cost (as defined in section 661a of title 2) of loan guarantees issued under title XIV 11 See References in Text note below. to carry out commercial demonstration projects for ethanol derived from sugarcane, bagasse, and other sugarcane byproducts.

(b)The Secretary may issue loan guarantees under this section to projects to demonstrate commercially the feasibility and viability of producing ethanol using sugarcane, sugarcane bagasse, and other sugarcane byproducts as a feedstock.

(c)An applicant for a loan guarantee under this section may provide assurances, satisfactory to the Secretary, that—

(1)the project design has been validated through the operation of a continuous process facility;

(2)the project has been subject to a full technical review;

(3)the project, with the loan guarantee, is economically viable; and

(4)there is a reasonable assurance of repayment of the guaranteed loan.

(d)(1)Except as provided in paragraph (2), a loan guarantee under this section—

(A)may be issued for up to 80 percent of the estimated cost of a project; but

(B)shall not exceed $50,000,000 for any 1 project.

(2)(A)The Secretary may issue additional loan guarantees for a project to cover—

(i)up to 80 percent of the excess of actual project costs; but

(ii)not to exceed 15 percent of the amount of the original loan guarantee.

(B)Subject to subparagraph (A), the Secretary shall guarantee 100 percent of the principal and interest of a loan guarantee made under subparagraph (A).

Editorial Notes

References in Text

Title XIV, referred to in subsec. (a), is title XIV of Pub. L. 109–58, Aug. 8, 2005, 119 Stat. 1061, which enacted subchapter XIII of this chapter and section 13557 of this title.

§16503 Sugar ethanol loan guarantee program

Summary

Title 42, §16503

Notes & Related Subsidiaries

Editorial Notes

References in Text

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