16 U.S.C. § 2104a: Pest and Disease Revolving…

Summary

Creates a revolving loan fund in the U.S. Treasury to help local governments buy equipment to fight tree pests and diseases. The loans pay for gear needed to manage forest land, like cherry pickers, machines for building staging areas, tools for planting and surveying, trucks to haul trees, wood chippers, and other suitable equipment chosen by the Secretary of Agriculture (through the Deputy Chief for State and Private Forestry). The money can be used for work on land the local government controls or inside quarantine zones for plant pests. Loans are limited to the smaller of what the local government has set aside for equipment or $5,000,000, and the interest rate is 2 percent. The borrower must report purchases within 180 days. Repayment begins no later than 1 year after getting the loan, payments are due every six months, and the loan must be fully repaid within 20 years. Up to 10 percent of the Fund can be used each year for administrative costs. The Treasury will transfer money into the Fund at least monthly based on estimates and will make later adjustments. Congress may appropriate whatever sums are needed to run the Fund.

Title 16, §2104a

Conservation, Source: USLM XML via OLRC

(a)Definitions

In this section: (1) Authorized equipment

(2)Fund

The term “Fund” means the Pest and Disease Revolving Loan Fund established by subsection (b).

(3)Secretary

The term “Secretary” means the Secretary of Agriculture, acting through the Deputy Chief of the State and Private Forestry organization.

(b)Establishment of Fund

There is established in the Treasury of the United States a revolving fund, to be known as the “Pest and Disease Revolving Loan Fund”, consisting of such amounts as are appropriated to the Fund under subsection (f).

(c)Expenditures from Fund

(1)In general

Subject to paragraph (2), on request by the Secretary, the Secretary of the Treasury shall transfer from the Fund to the Secretary such amounts as the Secretary determines are necessary to provide loans under subsection (e).

(2)Administrative expenses

An amount not exceeding 10 percent of the amounts in the Fund shall be available for each fiscal year to pay the administrative expenses necessary to carry out this section.

(d)Transfers of amounts

(1)In general

The amounts required to be transferred to the Fund under this section shall be transferred at least monthly from the general fund of the Treasury to the Fund on the basis of estimates made by the Secretary of the Treasury.

(2)Adjustments

Proper adjustment shall be made in amounts subsequently transferred to the extent prior estimates were in excess of or less than the amounts required to be transferred.

(e)Uses of Fund

(1)Loans

(A)In general

The Secretary shall use amounts in the Fund to provide loans to eligible units of local government to finance purchases of authorized equipment to monitor, remove, dispose of, and replace infested trees that are located—

(i)on land under the jurisdiction of the eligible units of local government; and

(ii)within the borders of quarantine areas infested by plant pests.

(B)Maximum amount

The maximum amount of a loan that may be provided by the Secretary to an eligible unit of local government under this subsection shall be the lesser of— (i)

(ii)$5,000,000.

(C)Interest rate

The interest rate on any loan made by the Secretary under this paragraph shall be a rate equal to 2 percent.

(D)Report

Not later than 180 days after the date on which an eligible unit of local government receives a loan provided by the Secretary under subparagraph (A), the eligible unit of local government shall submit to the Secretary a report that describes each purchase made by the eligible unit of local government using assistance provided through the loan.

(2)Loan repayment schedule

(A)In general

To be eligible to receive a loan from the Secretary under paragraph (1), in accordance with each requirement described in subparagraph (B), an eligible unit of local government shall enter into an agreement with the Secretary to establish a loan repayment schedule relating to the repayment of the loan.

(B)Requirements relating to loan repayment schedule

A loan repayment schedule established under subparagraph (A) shall require the eligible unit of local government—

(i)to repay to the Secretary of the Treasury, not later than 1 year after the date on which the eligible unit of local government receives a loan under paragraph (1), and semiannually thereafter, an amount equal to the quotient obtained by dividing—

(I)the principal amount of the loan (including interest); by

(II)the total quantity of payments that the eligible unit of local government is required to make during the repayment period of the loan; and

(ii)not later than 20 years after the date on which the eligible unit of local government receives a loan under paragraph (1), to complete repayment to the Secretary of the Treasury of the loan made under this section (including interest).

(f)Authorization of appropriations

There are authorized to be appropriated to the Fund such sums as are necessary to carry out this section.

Notes & Related Subsidiaries

Editorial Notes

Codification Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246. Section was enacted as part of the Food, Conservation, and Energy Act of 2008, and not as part of the Cooperative Forestry Assistance Act of 1978 which comprises this chapter.

Statutory Notes and Related Subsidiaries

Effective Date

Enactment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as a note under section 8701 of Title 7, Agriculture.

§2104a Pest and Disease Revolving Loan Fund