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Title 42, The Public Health and WelfareRelease 119-110

§7546 Renewable Fuel

Title 42 › CHAPTER 85 — AIR POLLUTION PREVENTION AND CONTROL › SUBCHAPTER II — EMISSION STANDARDS FOR MOVING SOURCES › Part A — Motor Vehicle Emission and Fuel Standards › § 7546

Last updated Sep 23, 2026|Official source

Summary

The Secretary of Energy can back loans and give grants to build and test plants that make ethanol from plant leftovers and from trash. Municipal solid waste means regular trash. An RFG State is a state that has one or more covered reformulated gasoline areas. The Secretary is the Secretary of Energy. Up to four commercial demonstration projects can get loan guarantees. At least one must use cereal straw and one must use municipal solid waste. Each plant must be sized to make at least 30,000,000 gallons a year. Applicants must show a tested design (a continuous process that has made at least 50,000 gallons), a full technical review, performance guarantees, economic viability with the loan guarantee, and reasonable assurance the loan will be repaid. A guarantee can cover up to 80% of estimated project cost and cannot be more than $250,000,000. Extra guarantees can cover some cost overruns but not more than 15% of the original guarantee. Applicants must have at least 20% of the project cost committed from investors. The Secretary must decide on applications within 90 days. The law also authorizes $4,000,000 per year for 2005–2007 for a biomass resource center at Mississippi State and Oklahoma State. It authorizes $25,000,000 per year for 2006–2010 for grants to RFG State schools and partners to research renewable fuel production. Finally, the Secretary may give grants to producers to build facilities using agricultural residues or municipal solid waste, with $250,000,000 authorized for 2006 and $400,000,000 for 2007.

Full Legal Text

Title 42, §7546

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

(a)Definitions
In this section: (1) Municipal solid waste
(2)RFG State
The term “RFG State” means a State in which is located one or more covered areas (as defined in section 7545(k)(10)(D) of this title).
(3)Secretary
The term “Secretary” means the Secretary of Energy.
(b)Cellulosic biomass ethanol and municipal solid waste loan guarantee program
(1)In general
Funds may be provided for the cost (as defined in the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.)) of loan guarantees issued under title XIV of the Energy Policy Act to carry out commercial demonstration projects for celluosic biomass and sucrose-derived ethanol.
(2)Demonstration projects
(A)In general
The Secretary shall issue loan guarantees under this section to carry out not more than 4 projects to commercially demonstrate the feasibility and viability of producing cellulosic biomass ethanol or sucrose-derived ethanol, including at least 1 project that uses cereal straw as a feedstock and 1 project that uses municipal solid waste as a feedstock.
(B)Design capacity
Each project shall have a design capacity to produce at least 30,000,000 gallons of cellulosic biomass ethanol each year.
(3)Applicant assurances
An applicant for a loan guarantee under this section shall provide assurances, satisfactory to the Secretary, that—
(A)the project design has been validated through the operation of a continuous process facility with a cumulative output of at least 50,000 gallons of ethanol;
(B)the project has been subject to a full technical review;
(C)the project is covered by adequate project performance guarantees;
(D)the project, with the loan guarantee, is economically viable; and
(E)there is a reasonable assurance of repayment of the guaranteed loan.
(4)Limitations
(A)Maximum guarantee
Except as provided in subparagraph (B), a loan guarantee under this section may be issued for up to 80 percent of the estimated cost of a project, but may not exceed $250,000,000 for a project.
(B)Additional guarantees
(i)In general
The Secretary may issue additional loan guarantees for a project to cover up to 80 percent of the excess of actual project cost over estimated project cost but not to exceed 15 percent of the amount of the original guarantee.
(ii)Principal and interest
Subject to subparagraph (A), the Secretary shall guarantee 100 percent of the principal and interest of a loan made under subparagraph (A).
(5)Equity contributions
To be eligible for a loan guarantee under this section, an applicant for the loan guarantee shall have binding commitments from equity investors to provide an initial equity contribution of at least 20 percent of the total project cost.
(6)Insufficient amounts
If the amount made available to carry out this section is insufficient to allow the Secretary to make loan guarantees for 3 projects described in subsection (b), the Secretary shall issue loan guarantees for one or more qualifying projects under this section in the order in which the applications for the projects are received by the Secretary.
(7)Approval
An application for a loan guarantee under this section shall be approved or disapproved by the Secretary not later than 90 days after the application is received by the Secretary.
(c)Authorization of appropriations for resource center
There is authorized to be appropriated, for a resource center to further develop bioconversion technology using low-cost biomass for the production of ethanol at the Center for Biomass-Based Energy at the Mississippi State University and the Oklahoma State University, $4,000,000 for each of fiscal years 2005 through 2007.
(d)Renewable fuel production research and development grants
(1)In general
The Administrator shall provide grants for the research into, and development and implementation of, renewable fuel production technologies in RFG States with low rates of ethanol production, including low rates of production of cellulosic biomass ethanol.
(2)Eligibility
(A)In general
The entities eligible to receive a grant under this subsection are academic institutions in RFG States, and consortia made up of combinations of academic institutions, industry, State government agencies, or local government agencies in RFG States, that have proven experience and capabilities with relevant technologies.
(B)Application
To be eligible to receive a grant under this subsection, an eligible entity shall submit to the Administrator an application in such manner and form, and accompanied by such information, as the Administrator may specify.
(3)Authorization of appropriations
There is authorized to be appropriated to carry out this subsection $25,000,000 for each of fiscal years 2006 through 2010.
(e)Cellulosic biomass ethanol conversion assistance
(1)In general
The Secretary may provide grants to merchant producers of cellulosic biomass ethanol in the United States to assist the producers in building eligible production facilities described in paragraph (2) for the production of cellulosic biomass ethanol.
(2)Eligible production facilities
A production facility shall be eligible to receive a grant under this subsection if the production facility—
(A)is located in the United States; and
(B)uses cellulosic biomass feedstocks derived from agricultural residues or municipal solid waste.
(3)Authorization of appropriations
There is authorized to be appropriated to carry out this subsection— (A)
(B)$400,000,000 for fiscal year 2007.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Federal Credit Reform Act of 1990, referred to in subsec. (b)(1), is title V of Pub. L. 93–344, as added by Pub. L. 101–508, title XIII, § 13201(a), Nov. 5, 1990, 104 Stat. 1388–609, which is classified generally to subchapter III (§ 661 et seq.) of chapter 17A of Title 2, The Congress. For complete classification of this Act to the Code, see

Short Title

note set out under section 621 of Title 2 and Tables. The Energy Policy Act, referred to in subsec. (b)(1), probably means the Energy Policy Act of 2005, Pub. L. 109–58, Aug. 8, 2005, 119 Stat. 594. Title XIV of the Act probably should be a reference to title XV of the Act which relates to ethanol and motor fuels and enacted subchapter XIV (§ 16501 et seq.) of chapter 149 of this title and sections 6991i to 6991m and 7546 of this title, amended sections 6991 to 6991f, 6991h, 1991i, 7135, 7545, and 13220 of this title, and enacted provisions set out as notes under section 7545 of this title. Title XIV of the Act, which contains miscellaneous provisions, is classified principally to subchapter XIII (§ 16491 et seq.) of chapter 149 of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 15801 of this title and Tables.

Prior Provisions

A prior section 7546, act
July 14, 1955, ch. 360, title II, § 212, as added Dec. 31, 1970, Pub. L. 91–604, § 10(c), 84 Stat. 1700; amended Dec. 31, 1970, Pub. L. 91–605, § 202(a), 84 Stat. 1739; Apr. 9, 1973, Pub. L. 93–15, § 1(b), 87 Stat. 11;
June 22, 1974, Pub. L. 93–319, § 13(b), 88 Stat. 265, related to low-emission vehicles, prior to repeal by Pub. L. 101–549, title II, § 230(10), Nov. 15, 1990, 104 Stat. 2529. A prior section 212 of act
July 14, 1955, was renumbered section 213 by Pub. L. 91–604, renumbered section 214 by Pub. L. 93–319, and renumbered section 216 by Pub. L. 95–95, and is classified to section 7550 of this title.

Reference

Citations & Metadata

Citation

42 U.S.C. § 7546

Title 42, The Public Health and Welfare

Last Updated

Sep 23, 2026

Release point: 119-110