§2669 Pilot Projects for Production and Marketing of Industrial Hydrocarbons and Alcohols From Agricultural Commodities and Forest Products

Summary

Creates a pilot program to make and sell industrial hydrocarbons and alcohols from farm crops and forest products. The goal is to grow the market for these goods and increase the Nation’s supply. The Secretary must run four pilot projects and can guarantee loans up to $15,000,000 for each project. Loans can go to public, private, cooperative, profit or nonprofit groups, or to individuals, for up to twenty years with an interest rate the borrower and lender agree on. A loan guarantee is allowed only if research shows the energy in the products and byproducts will be greater than the fossil fuel energy used to make them, and any other conditions the Secretary sets. The Secretary can make up to five-year contracts to give loan recipients a steady supply of agricultural commodities at agreed prices. Those prices cannot be below the commodity’s price support level unless the goods are out of condition, unstorable, or sample-grade or lower under USDA rules. The Secretary must supply those commodities from Commodity Credit Corporation stocks or buy them as funding allows. The Commodity Credit Corporation will carry out the program.