§16501 Commercial Byproducts From Municipal Solid Waste and Cellulosic Biomass Loan Guarantee Program

Summary

Creates a program where the Secretary must guarantee loans made by private lenders to build plants that turn municipal solid waste (as defined in section 6903) and cellulosic biomass into fuel ethanol and other commercial byproducts. The Secretary may guarantee a loan only if the borrower cannot get reasonable credit otherwise, the borrower’s earnings and the pledged security give a reasonable chance the loan will be repaid, and the interest rate is reasonable compared with current average yields on U.S. government securities of similar maturity. When picking who gets guarantees, the Secretary must prefer projects that have required federal and state permits, are most likely to succeed, and serve markets with the biggest need because of limited landfill space, available biomass, or high demand for ethanol or other byproducts. Guaranteed loans may mature in no more than 20 years, cannot be changed without the Secretary’s consent, must have at least 20 percent repayment assurance (bond, insurance, collateral, or similar), require the borrower to pay an administrative fee, are backed by the full faith and credit of the United States, require yearly reports to Congress until paid off, may be funded as needed, and the authority to issue guarantees ends 10 years after August 8, 2005.