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

Summary

The government can guarantee loans for commercial projects that make ethanol from sugarcane and bagasse. The Secretary may approve a guarantee if the applicant shows the design ran in continuous operation, passed a technical review, is economically viable with the guarantee, and is likely to repay. Guarantees can cover up to 80% of estimated project cost and must not exceed $50,000,000 for any 1 project. Extra guarantees can cover up to 80% of added costs, limited to 15% of the original guarantee; the Secretary may guarantee 100% of principal and interest on those extras. Cost — defined in 2 U.S.C. 661a.

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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