§4002 Alcohol Processor Grain Reserve Program

Summary

Allows the Secretary of Agriculture to make loans to processors who buy and store grain to turn into alcohol fuel. Loans are only for processors that run small scale biomass energy projects partly or fully financed by the U.S. government and that the Secretary finds cannot get a steady supply of grain at reasonable prices. The loan amount equals the current price support loan rate for the grain times the quantity bought. A processor cannot have loans outstanding for more grain than the amount estimated to be needed for one year. If grain is removed, the processor must either replace the same amount within the time set by the Secretary or repay that part of the loan. The grain must be used only to make alcohol for fuel, and the Secretary must set safeguards so it is not used otherwise or to hurt the market. Loans must have appropriate security and may not be nonrecourse. The Secretary may pay storage costs up to the same rate paid under the producer storage program and can require repayment, refunds, extra interest, or other charges if terms are broken. The Secretary must announce program terms before making loans, may use Commodity Credit Corporation facilities, and loans may be made only as funding is provided by appropriation acts. The authority to make loans expires five years after December 3, 1980. Definitions (one line each): Secretary — the Secretary of Agriculture. Processor — someone in the U.S. who makes grain into alcohol for fuel. Agricultural grain/grain — any commodity fit for making fuel alcohol and under a price support operation. Producer storage program — the program under section 1445e. Small scale biomass energy project — the term as defined in 42 U.S.C. 8802(19).