Title 42 — The Public Health and WelfareRelease 119-73

§8832 Construction loans

Title 42 › Chapter CHAPTER 96— - BIOMASS ENERGY AND ALCOHOL FUELS › Subchapter SUBCHAPTER II— - MUNICIPAL WASTE BIOMASS ENERGY › § 8832

Last updated Apr 6, 2026|Official source

Summary

The Secretary of Energy can make loans to build municipal waste energy projects, subject to sections 8835 and 8836. Each loan cannot be more than 80% of the project’s estimated construction cost. The interest rate will be set by the Secretary based on current average market yields on similar U.S. government securities, plus up to 1%, and rounded to the nearest one‑eighth of one percent. If construction costs later go up, the Secretary may give an extra loan of up to 10% of the original estimated cost if the borrower applies. An applicant must prove to the Secretary that they cannot get enough credit elsewhere at reasonable rates and terms, considering current market rates for similar loans.

Full Legal Text

Title 42, §8832

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

(a)Subject to section 8835 and 8836 of this title, the Secretary of Energy may commit to make, and make, loans for the construction of municipal waste energy projects.

(b)(1)Any loan under this section—

(A)may not exceed 80 per centum of the total estimated cost of the construction of the municipal waste energy project involved, and

(B)shall bear interest at a rate determined by the Secretary of Energy (taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loans) plus not to exceed one per centum, as determined by the Secretary of Energy, and adjusted to the nearest one-eighth of one per centum.

(2)In the event the total estimated costs of construction of the project thereafter exceed the total estimated costs initially determined by the Secretary of Energy, the Secretary may in addition, upon application therefor, make a loan for so much of the additional estimated costs as does not exceed 10 per centum of the initial total estimated costs of construction.

(c)A loan may not be made under this section unless the person applying for such loan has established to the satisfaction of the Secretary of Energy that the applicant is unable without such a loan to obtain sufficient credit elsewhere at reasonable rates and terms, taking into consideration prevailing market rates and terms for loans for similar periods of time, to finance the construction of the project for which such loan is sought.

Reference

Citations & Metadata

Citation

42 U.S.C. § 8832

Title 42 — The Public Health and Welfare

Last Updated

Apr 6, 2026

Release point: 119-73