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US (United States) Code. Title 42. Chapter 96: Biomass energy and alcohol fuels

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-CITE-

42 USC CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

-HEAD-

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

-MISC1-

Sec.

8801. Congressional findings.

8802. Definitions.

8803. Funding.

(a) Authorization of appropriations.

(b) Availability of funds until expended.

appropriations remaining available.

(d) Financial assistance provided only to extent

advanced in appropriation Acts.

8804. Coordination with other authorities and programs.

SUBCHAPTER I - GENERAL BIOMASS ENERGY DEVELOPMENT

8811. Biomass energy development plans.

(a) Plan respecting maximized production and use by

December 31, 1982; preparation, transmission,

etc.

(b) Comprehensive plan respecting maximized

production and use from January 1, 1983, to

December 31, 1990, preparation, transmission,

etc.

8812. Program responsibility and administration and effect

on other programs.

(a) Duties and functions of Secretary of

Agriculture and Secretary of Energy over

projects.

(b) Procedural requirements applicable.

Secretary concerning application for financial

assistance.

(d) Notification of applicant upon disapproval of

application for financial assistance.

(e) Implementation of functions assigned to

Secretary of Agriculture by administrative

entities within Department of Agriculture;

issuance of regulations; coordination of

functions by designated entities.

(f) Implementation of functions assigned to

Secretary of Energy by Office of Alcohol

Fuels.

(g) Energy equivalency determinations respecting

biomass energy and ethanol.

8813. Insured loans.

(a) Authority of Secretary of Agriculture; maximum

amount per project.

(b) Estimated project construction costs as

determinative of initial and revised amount of

loan; interest rate.

(d) Preconditions.

8814. Loan guarantees.

(a) Authority of Secretary concerned.

(b) Estimated project construction costs as

determinative of initial and revised amount of

guarantee.

etc., by Federal Financing Bank or any Federal

agency.

(d) Terms and conditions.

(e) Termination, cancellation, or revocation, and

conclusive nature of guarantee.

(f) Payment to lender.

(g) Preconditions.

8815. Price guarantees.

(a) Authority of Secretary concerned; minimum sales

price.

(b) Cost-plus arrangements as basis.

States.

(d) Renegotiation of sales price and maximum

liability.

8816. Purchase agreements.

(a) Authority of Secretary concerned; consultative

requirements.

(b) Maximum sales price.

(d) Arrangements for delivery pursuant to

agreement; charge to Federal agency receiving

delivery.

(e) Consultative requirements.

(f) Terms and conditions.

(g) Maximum dollar amount of liability of United

States.

(h) Renegotiation of sales price and maximum

liability.

8817. General requirements regarding financial assistance.

(a) Priorities, terms, availability, etc.

(b) Terms, conditions, maturity, etc., for insured

loans, and loan guarantees.

(d) Reports and recordkeeping.

(e) Contracts and instruments of Secretary

concerned backed by full faith and credit of

United States.

(f) Contestability of contracts.

(g) Fees for loan guarantees, etc.

(h) Deposit of amounts received by Secretary

concerned.

8818. Reports.

(a) Repealed.

(b) Comprehensive list of loans, grants, etc.

impact and plan for termination of Office of

Alcohol Fuels.

8819. Review; reorganization.

8820. Office of Alcohol Fuels.

(a) Establishment in Department of Energy;

appointment and compensation of Director.

(b) Responsibilities of Director.

for support of Office.

(d) Consultations respecting coordination of

programs.

8821. Termination of authorities; modification of terms and

conditions of conditional commitments for loan

guarantees.

SUBCHAPTER II - MUNICIPAL WASTE BIOMASS ENERGY

8831. Municipal waste energy development plan.

(a) Preparation by Secretary of Energy;

consultative requirements.

(b) Transmittal to President and Congress.

(d) Report to President and Congress; contents.

8832. Construction loans.

(a) Authority of Secretary of Energy.

(b) Estimated project construction costs as

determinative of initial and revised amount of

loan; interest rate.

8833. Guaranteed construction loans.

(a) Authority of Secretary of Energy.

(b) Estimated project construction costs as

determinative of revised amount of guarantee.

(d) Termination, cancellation, or revocation, and

conclusive nature of guarantee.

(e) Payment to lender.

(f) Preconditions.

(g) Payment of interest; tax consequences.

(h) Fees.

8834. Price support loans and price guarantees.

(a) Authority of Secretary of Energy with respect

to loans for existing projects; disbursements,

etc.

(b) Authority of Secretary of Energy with respect

to loans for new projects; disbursements, etc.

to guarantees for new projects; pricing

determinations, etc.

(d) Definitions; sale price of retained fuel; rules

relating to fuel displacement.

8835. General requirements regarding financial assistance.

(a) Priorities, terms, availability, etc.

(b) Terms, conditions, maturity, etc.

(d) Reports and recordkeeping.

(e) Deposit of amounts received.

(f) Contracts and instruments backed by full faith

and credit of United States.

(g) Contestability of contracts.

(h) Eligibility of debt obligations for purchase,

sale, or issuance to Federal Financing Bank or

any Federal agency.

8836. Financial assistance program administration.

8837. Commercialization demonstration program pursuant to

Federal nonnuclear energy research and development.

(a) Establishment and conduct pursuant to other

Federal statutory authorities; required

undertakings subsequent to consultations.

(b) Financial assistance.

(d) Obligation and expenditure of funds.

(e) Deposit of moneys received.

8838. Jurisdiction of Department of Energy and Environmental

Protection Agency.

8839. Office of Energy from Municipal Waste.

(a) Establishment in Department of Energy;

appointment of Director.

(b) Functions.

functions.

(d) Transfer of related functions and personnel

from Department of Energy.

8840. Termination of authorities.

SUBCHAPTER III - RURAL, AGRICULTURAL, AND FORESTRY BIOMASS ENERGY

8851. Model demonstration biomass energy facilities;

establishment, public inspection, etc.; authorization

of appropriations.

8852. Coordination of research and extension activities;

consultative requirements.

8853. Lending for energy production and conservation

projects by production credit associations, Federal

land banks, and banks for cooperatives.

8854. Utilization of National Forest System in wood energy

development projects.

8855. Forest Service leases and permits.

SUBCHAPTER IV - MISCELLANEOUS BIOMASS PROVISIONS

8871. Use of gasohol in Federal motor vehicles.

(a) Exercise of President's authority pursuant to

executive order respecting use.

(b) Exceptions.

-End-

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42 USC Sec. 8801 01/06/03

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TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

-HEAD-

Sec. 8801. Congressional findings

-STATUTE-

The Congress finds that -

(1) the dependence of the United States on imported petroleum

and natural gas must be reduced by all economically and

environmentally feasible means, including the use of biomass

energy resources; and

(2) a national program for increased production and use of

biomass energy that does not impair the Nation's ability to

produce food and fiber on a sustainable basis for domestic and

export use must be formulated and implemented within a

multiple-use framework.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 202, June 30, 1980, 94 Stat. 683.)

-MISC1-

SHORT TITLE

Section 1 of Pub. L. 96-294 provided: "That this Act [enacting

chapters 95 to 97, and sections 6347, 7361 to 7364, 7371 to 7375,

8235 to 8235i, 8281 to 8284, 8285 to 8285c, and 8286 to 8286b of

this title, sections 1435 and 3129 of Title 7, Agriculture,

sections 3601 to 3620 of Title 12, Banks and Banking, section 3391a

of Title 15, Commerce and Trade, sections 1146, 1147, 1501, 1511 to

1516, 1521, 1522, 1531, 1541, and 1542 of Title 30, Mineral Lands

and Mining, and sections 2075, 2076, and 2095 to 2098 of the

Appendix to Title 50, War and National Defense, amending sections

6240, 6862 to 6872, 8211, 8213, 8214, 8216, 8217, 8221, 8255, 8271,

and 8274 to 8276 of this title, sections 341, 342, 427, and 3154 of

Title 7, section 7430 of Title 10, Armed Forces, sections 1451,

1454, 1717, 1723g, and 1723h of Title 12, section 753 of Title 15,

sections 590h, 796, 824a-3, 824i, 824j, 1642, 2705, and 2708 of

Title 16, Conservation, sections 1141 and 1143 of Title 30, and

sections 2062, 2091 to 2093, 2151, 2161, and 2166 of the Appendix

to Title 50, repealing section 1723f of Title 12, and enacting

provisions set out as notes under this section and sections 6240,

7371, 8211, 8235, 8701, and 8901 of this title, section 3601 of

Title 12, section 2701 of Title 16, section 1501 of Title 30, and

sections 2061 and 2062 of the Appendix to Title 50] may be cited as

the 'Energy Security Act'."

Section 201 of title II of Pub. L. 96-294 provided that: "This

title [enacting this chapter, sections 1435 and 3129 of Title 7,

Agriculture, and section 3391a of Title 15, Commerce and Trade, and

amending sections 341, 342, 427, and 3154 of Title 7, section 753

of Title 15, and sections 590h and 1642 of Title 16, Conservation]

may be cited as the 'Biomass Energy and Alcohol Fuels Act of

1980'."

-End-

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42 USC Sec. 8802 01/06/03

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TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

-HEAD-

Sec. 8802. Definitions

-STATUTE-

As used in this chapter -

(1) The term "alcohol" means alcohol (including methanol and

ethanol) which is produced from biomass and which is suitable for

use by itself or in combination with other substances as a fuel

or as a substitute for petroleum or petrochemical feedstocks.

(2)(A) The term "biomass" means any organic matter which is

available on a renewable basis, including agricultural crops and

agricultural wastes and residues, wood and wood wastes and

residues, animal wastes, municipal wastes, and aquatic plants.

(B) For purposes of subchapter I of this chapter, such term

does not include municipal wastes; and for purposes of subchapter

III of this chapter, such term does not include aquatic plants

and municipal wastes.

(3) The term "biomass fuel" means any gaseous, liquid, or solid

fuel produced by conversion of biomass.

(4) The term "biomass energy" means -

(A) biomass fuel; or

(B) energy or steam derived from the direct combustion of

biomass for the generation of electricity, mechanical power, or

industrial process heat.

(5) The term "biomass energy project" means any facility (or

portion of a facility) located in the United States which is

primarily for -

(A) the production of biomass fuel (and byproducts); or

(B) the combustion of biomass for the purpose of generating

industrial process heat, mechanical power, or electricity

(including cogeneration).

(6) The term "Btu" means British thermal unit.

(7) The term "cogeneration" means the combined generation by

any facility of -

(A) electrical or mechanical power, and

(B) steam or forms of useful energy (such as heat) which are

used for industrial, commercial, heating, or cooling purposes.

(8) The term "cooperative" means any agricultural association,

as that term is defined in section 1141j(a) of title 12.

(9)(A) The term "construction" means -

(i) the construction or acquisition of any biomass energy

project;

(ii) the conversion of any facility to a biomass energy

project; or

(iii) the expansion or improvement of any biomass energy

project which increases the capacity or efficiency of that

facility to produce biomass energy.

(B) Such term includes -

(i) the acquisition of equipment and machinery for use in or

at the site of a biomass energy project; and

(ii) the acquisition of land and improvements thereon for the

construction, expansion, or improvement of such a project, or

the conversion of a facility to such a project.

which was operated as a biomass energy project before the

acquisition.

(10) The term "Federal agency" means any Executive agency, as

defined in section 105 of title 5.

(11)(A) The term "financial assistance" means any of the

following forms of financial assistance provided under this

chapter, or any combination of such forms:

(i) loans,

(ii) loan guarantees,

(iii) price guarantees, and

(iv) purchase agreements.

(B) Such term includes any commitment to provide such

assistance.

(12) The term "Indian tribe" means any Indian tribe, band,

nation, or other organized group or community, including any

Alaska Native village or regional or village corporation as

defined in or established pursuant to the Alaska Native Claims

Settlement Act [43 U.S.C. 1601 et seq.] which is recognized as

eligible for the special programs and services provided by the

United States to Indians because of their status as Indians.

(13) The term "motor fuel" means gasoline, kerosene, and middle

distillates (including diesel fuel).

(14)(A) The term "municipal waste" means any organic matter,

including sewage, sewage sludge, and industrial or commercial

waste, and mixtures of such matter and inorganic refuse -

(i) from any publicly or privately operated municipal waste

collection or similar disposal system, or

(ii) from similar waste flows (other than such flows which

constitute agricultural wastes or residues, or wood wastes or

residues from wood harvesting activities or production of

forest products).

(B) Such term does not include any hazardous waste, as

determined by the Secretary of Energy for purposes of this

chapter.

(15)(A) The term "municipal waste energy project" means any

facility (or portion of a facility) located in the United States

primarily for -

(i) the production of biomass fuel (and byproducts) from

municipal waste; or

(ii) the combustion of municipal waste for the purpose of

generating steam or forms of useful energy, including

industrial process heat, mechanical power, or electricity

(including cogeneration).

(B) Such term includes any necessary transportation,

preparation, and disposal equipment and machinery for use in or

at the site of the facility involved.

(16) The term "Office of Alcohol Fuels" means the Office of

Alcohol Fuels established under section 8820 of this title.

(17) The term "person" means any individual, company,

cooperative, partnership, corporation, association, consortium,

unincorporated organization, trust, estate, or any entity

organized for a common business purpose, any State or local

government (including any special purpose district or similar

governmental unit) or any agency or instrumentality thereof, or

any Indian tribe or tribal organization.

(18) The term "State" means any of the fifty States, the

District of Columbia, the Commonwealth of Puerto Rico, the Virgin

Islands of the United States, Guam, American Samoa, the

Commonwealth of the Northern Mariana Islands, and the Trust

Territory of the Pacific Islands.

(19) The term "small scale biomass energy project" means a

biomass energy project with an anticipated annual production

capacity of not more than 1,000,000 gallons of ethanol per year,

or its energy equivalent of other forms of biomass energy.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 203, June 30, 1980, 94 Stat. 683.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in provision preceding par. (1) and in

pars. (11)(A) and (14)(B), was in the original "this title",

meaning title II of Pub. L. 96-294, June 30, 1980, 94 Stat. 683, as

amended, known as the Biomass Energy and Alcohol Fuels Act of 1980,

which enacted this chapter, sections 1435 and 3129 of Title 7,

Agriculture, and section 3391a of Title 15, Commerce and Trade, and

amended sections 341, 342, 427, and 3154 of Title 7, section 753 of

Title 15, and sections 590h and 1642 of Title 16, Conservation. For

complete classification of title II to the Code, see Short Title

note set out under section 8801 of this title and Tables.

Subchapter III of this chapter, referred to in par. (2)(B), was

in the original "subtitle C", meaning subtitle C of title II of

Pub. L. 96-294, June 30, 1980, 94 Stat. 705, which enacted

subchapter III of this chapter and sections 1435 and 3129 of Title

7, and amended sections 341, 342, 427, and 3154 of Title 7 and

sections 590h and 1642 of Title 16.

The Alaska Native Claims Settlement Act, referred to in par.

(12), is Pub. L. 92-203, Dec. 18, 1971, 85 Stat. 688, as amended,

which is classified generally to chapter 33 (Sec. 1601 et seq.) of

Title 43, Public Lands. For complete classification of this Act to

the Code, see Short Title note set out under section 1601 of Title

43 and Tables.

-TRANS-

TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS

For termination of Trust Territory of the Pacific Islands, see

note set out preceding section 1681 of Title 48, Territories and

Insular Possessions.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 7 section 4002.

-End-

-CITE-

42 USC Sec. 8803 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

-HEAD-

Sec. 8803. Funding

-STATUTE-

(a) Authorization of appropriations

To the extent provided in advance in appropriation Acts, for the

two year period beginning October 1, 1980, there is authorized to

be appropriated and transferred $1,170,000,000 from the Energy

Security Reserve established in the Treasury of the United States

under title II of the Act entitled "An Act making appropriations

for the Department of the Interior and related agencies for the

fiscal year ending September 30, 1980, and for other purposes"

(Public Law 96-126; 93 Stat. 970) and made available for obligation

by such Act only to the extent provided in advance in appropriation

Acts, as follows:

(1) $460,000,000 to the Secretary of Agriculture for carrying

out activities under subchapter I of this chapter, except of the

amount of the financial assistance provided by the Secretary of

Agriculture under subchapter I of this chapter, up to one-third

shall be for small-scale biomass energy projects;

(2) $460,000,000 to the Secretary of Energy for carrying out

biomass energy activities under subchapter I of this chapter, of

which at least $500,000,000 (!1) shall be available to the Office

of Alcohol Fuels for carrying out its activities, and any amount

not made available to the Office of Alcohol Fuels shall be

available to the Secretary to carry out the purposes of

subchapter I of this chapter under available authorities of the

Secretary, including authorities under subchapter I of this

chapter; and

(3) $250,000,000 shall be available to the Secretary of Energy

for carrying out activities under subchapter II of this chapter.

(b) Availability of funds until expended

Funds made available under subsection (a) of this section shall

remain available until expended.

available

(1) For purposes of determining the amount of such appropriations

which remain available for purposes of this chapter -

(A) loans shall be counted at the initial face value of the

loan;

(B) loan guarantees shall be counted at the initial face value

of such loan guarantee;

at the value determined by the Secretary concerned as of the date

of each such contract based upon the Secretary's determination of

the maximum potential liability of the United States under the

contract; and

(D) any increase in the liability of the United States pursuant

to any amendment or other modification to a contract for a loan,

loan guarantee, price guarantee, or purchase agreement, shall be

counted to the extent of such increase.

(2) Determinations under paragraph (1) shall be made in

accordance with generally accepted accounting principles,

consistently applied.

(3) If more than one form of financial assistance is to be

provided to any one project, the obligations and commitments

thereunder shall be counted at the maximum potential exposure of

the United States on such project at any time during the life of

such project.

(4) Any commitment to provide financial assistance shall be

treated the same as such assistance for purposes of this

subsection; except that any such commitment which is nullified or

voided for any reason shall not be considered for purposes of this

subsection.

(d) Financial assistance provided only to extent advanced in

appropriation Acts

Financial assistance may be provided under this chapter only to

the extent provided in advance in appropriation Acts.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 204, June 30, 1980, 94 Stat. 685;

Pub. L. 97-35, title X, Secs. 1061-1063, Aug. 13, 1981, 95 Stat.

622.)

-REFTEXT-

REFERENCES IN TEXT

The Energy Security Reserve established in the Treasury of the

United States under title II of the Act entitled "An Act making

appropriations for the Department of the Interior and related

agencies for the fiscal year ending September 30, 1980, and for

other purposes" (Public Law 96-126; 93 Stat. 970), referred to in

subsec. (a), was established by Pub. L. 96-126, title II, Sec. 201,

Nov. 27, 1979, 93 Stat. 970, which is set out as a note under

section 5915 of this title.

-MISC1-

AMENDMENTS

1981 - Subsec. (a). Pub. L. 97-35, Sec. 1063, substituted

"$1,170,000,000" for "$1,450,000,000".

Subsec. (a)(1). Pub. L. 97-35, Sec. 1061, substituted

"$460,000,000" for "$600,000,000".

Subsec. (a)(2). Pub. L. 97-35, Sec. 1062, substituted

"$460,000,000" for "$600,000,000".

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective Aug. 13, 1981, see section

1038 of Pub. L. 97-35, set out as a note under section 6240 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 8813 of this title.

-FOOTNOTE-

(!1) So in original. Pub. L. 97-35 decreased appropriation to

$460,000,000 from $600,000,000 without amending sum of

$500,000,000.

-End-

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42 USC Sec. 8804 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

-HEAD-

Sec. 8804. Coordination with other authorities and programs

-STATUTE-

The authorities in this chapter are in addition to and do not

modify (except to the extent expressly provided for in this

chapter) authorities and programs of the Department of Energy and

of the Department of Agriculture under other provisions of law.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 205, June 30, 1980, 94 Stat. 686.)

-End-

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42 USC SUBCHAPTER I - GENERAL BIOMASS ENERGY DEVELOPMENT 01/06/03

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TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER I - GENERAL BIOMASS ENERGY DEVELOPMENT

-HEAD-

SUBCHAPTER I - GENERAL BIOMASS ENERGY DEVELOPMENT

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 8802, 8803 of this

title.

-End-

-CITE-

42 USC Sec. 8811 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER I - GENERAL BIOMASS ENERGY DEVELOPMENT

-HEAD-

Sec. 8811. Biomass energy development plans

-STATUTE-

(a) Plan respecting maximized production and use by December 31,

1982; preparation, transmission, etc.

Not later than 180 days after June 30, 1980, the Secretary of

Agriculture and the Secretary of Energy shall jointly prepare, and

transmit to the President and the Congress, a plan for maximizing

in accordance with this subchapter biomass energy production and

use. Such plan shall be designed to achieve a total level of

alcohol production and use within the United States of at least

60,000 barrels per day of alcohol by December 31, 1982.

(b) Comprehensive plan respecting maximized production and use from

January 1, 1983, to December 31, 1990, preparation, transmission,

etc.

(1) Not later than January 1, 1982, the Secretary of Agriculture

and the Secretary of Energy shall jointly prepare, and transmit to

the President and the Congress, a comprehensive plan for maximizing

in accordance with this subchapter biomass energy production and

use, for the period beginning January 1, 1983, and ending December

31, 1990. Such plan shall be designed to achieve a level of alcohol

production within the United States equal to at least 10 percent of

the level of gasoline consumption within the United States as

estimated by the Secretary of Energy for the calendar year 1990.

(2) The plan prepared under this subsection shall evaluate the

feasibility of reaching the goals set forth in such subsection.

The plans prepared under subsections (a) and (b) of this section

shall each include guidelines for use in awarding financial

assistance under this subchapter which are designed to increase,

during the period covered by the plan, the amount of motor fuel

displaced by biomass energy.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 211, June 30, 1980, 94 Stat. 686.)

-End-

-CITE-

42 USC Sec. 8812 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER I - GENERAL BIOMASS ENERGY DEVELOPMENT

-HEAD-

Sec. 8812. Program responsibility and administration and effect on

other programs

-STATUTE-

(a) Duties and functions of Secretary of Agriculture and Secretary

of Energy over projects

(1) Except as provided in paragraph (2), in the case of any

financial assistance under this subchapter for a biomass energy

project, the Secretary concerned shall be -

(A) the Secretary of Agriculture, in the case of any biomass

energy project which will have an anticipated annual production

capacity of less than 15,000,000 gallons of ethanol (or the

energy equivalent of other forms of biomass energy) and which

will use feedstocks other than aquatic plants; and

(B) the Secretary of Energy, in the case of any biomass energy

project which will use aquatic plants as feedstocks or which will

have an anticipated annual production capacity of 15,000,000

gallons or more of ethanol (or the energy equivalent of other

forms of biomass energy).

(2)(A) Either the Secretary of Agriculture or the Secretary of

Energy may be the Secretary concerned in the case of any biomass

energy project which will have an anticipated annual production

capacity of 15,000,000 gallons or more of ethanol (or the energy

equivalent of other forms of biomass energy) and -

(i) which will use wood or wood wastes or residue, or

(ii) which is owned and operated by a cooperative and will use

feedstocks other than aquatic plants.

(B) Financial assistance may not be provided by either Secretary

under subparagraph (A) without the written concurrence of the other

Secretary. Such concurrence shall be granted or denied by such

Secretary in accordance with subparagraph (C) and on the same

standards as that Secretary applies in making his own awards of

financial assistance under this paragraph.

(C)(i) In the case of a project described in subparagraph (A),

the Secretary concerned shall provide the other Secretary a copy of

the application and such supporting information as may be material,

and shall provide the other Secretary at least 15 days to review

the project. If during such 15-day period the reviewing Secretary

provides written notification to the Secretary concerned specifying

reasons why such project should not proceed, the Secretary

concerned shall defer the final decision on the application for an

additional 30 days. During such 30-day period, both Secretaries

shall attempt to reach agreement regarding all issues raised in the

written notice. Before the end of the 30-day period, the reviewing

Secretary shall notify the Secretary concerned of his decision

regarding concurrence. If the reviewing Secretary fails to provide

such notice before the end of such period, concurrence shall be

deemed to have been given.

(ii) The project applicant may reapply for financial assistance

for such project, after making such modifications to the project as

may be necessary to address issues raised by the reviewing

Secretary in the original notice of objection. The subsequent

review of such project by the reviewing Secretary shall be limited

to the issues originally raised by the reviewing Secretary and any

issues raised by changed circumstances.

(D) Both Secretaries may jointly act as the Secretary concerned

in accordance with such procedures as the Secretaries may jointly

prescribe, in which case -

(i) subparagraphs (B) and (C) and subsection (c) of this

section shall not apply, and

(ii) the proportion of financial assistance provided by each

Secretary shall be determined in accordance with the procedures

jointly prescribed.

(b) Procedural requirements applicable

(1) Each Secretary shall take such action as may be necessary to

assure that -

(A) guidelines for soliciting and receiving applications for

financial assistance are established within 90 days after June

30, 1980;

(B) applications for financial assistance for biomass energy

projects are initially solicited within 30 days after such

guidelines are established;

solicited within 1 year after the date of the initial

solicitation;

(D) any application is evaluated and a decision made on such

application within 120 days after the receipt of the application,

including review under subsections (a)(2)(C), (a)(2)(D), or (c)

of this section; and

(E) all interested persons are provided the easiest possible

access to the application process, including procedures which

assure that -

(i) information concerning financial assistance from either

Secretary is available through all appropriate offices of the

Department of Agriculture and the Department of Energy, and

other regional and local offices of the Federal Government, as

may be appropriate;

(ii) all such locations where such information is available

will be able to accept and file applications, and will forward

them to the Secretary concerned; and

(iii) the procedures established for accepting, evaluating,

and awarding financial assistance will provide for categories

of biomass energy projects, according to size and provide to

the maximum extent practicable the simplest procedures for

small producers.

(2) The procedural requirements of subparagraphs (A) through (D)

of paragraph (1) shall not apply to either Secretary to the extent

that the Secretary finds that other procedures are adopted for the

solicitation, evaluation, and awarding of financial assistance

which will result in applications being processed more

expeditiously.

application for financial assistance

(1) After evaluating any application and before awarding any

financial assistance on the basis of that application, the

Secretary concerned shall provide the other Secretary with -

(A) a copy of the application and such supporting material as

may be appropriate, and

(B) an opportunity of not less than 15 days to review the

application.

This subsection shall not apply in the case of a project subject to

review under subsection (a)(2)(C) of this section.

(2) If the reviewing Secretary provides written notice specifying

any issues regarding matters subject to the Secretary's review to

the Secretary concerned before the end of the 15-day review period,

the Secretary concerned shall defer a final decision on the

application for an additional 30 days to provide an opportunity for

both Secretaries to answer and resolve such issues. At the

expiration of the 30-day period, the Secretary concerned may make a

final decision with respect to the application, using the best

judgment of the Secretary concerned to resolve any remaining

issues.

(3) Reviews of projects under the provisions of subsection

(a)(2)(C) of this section or paragraph (1)(B) by the Secretary of

Agriculture shall be for the purpose of considering the national,

regional, and local agricultural policy impacts of such project on

agricultural supply, production, and use, and reviews by the

Secretary of Energy under such provisions shall be for the purpose

of considering national energy policy impacts and the technical

feasibility of the project.

(4) The Secretary of Agriculture and the Secretary of Energy may

jointly establish categories of projects to which paragraphs (1)

and (2) shall not apply. Within 90 days after June 30, 1980, the

Secretaries shall identify potential categories and make an initial

determination of exempted categories.

(d) Notification of applicant upon disapproval of application for

financial assistance

If any application for financial assistance under this subchapter

is disapproved, the applicant shall be provided written notice of

the reasons for the disapproval.

(e) Implementation of functions assigned to Secretary of

Agriculture by administrative entities within Department of

Agriculture; issuance of regulations; coordination of functions

by designated entities

(1) The functions assigned under this subchapter to the Secretary

of Agriculture may be carried out by any of the administrative

entities in the Department of Agriculture which the Secretary of

Agriculture may designate. Within 30 days after June 30, 1980, the

Secretary of Agriculture shall make such designations and notify

the Congress of the administrative entity or entities so designated

and the officials in such administrative entity or entities who are

to be responsible for such functions.

(2) The Secretary of Agriculture may issue such regulations as

are necessary to carry out functions assigned to the Secretary of

Agriculture under this subchapter.

(3) The entities or entity designated under paragraph (1) shall

coordinate the administration of functions assigned to it under

this subsection with any other biomass energy programs within the

Department of Agriculture established under other provisions of

law.

(f) Implementation of functions assigned to Secretary of Energy by

Office of Alcohol Fuels

The functions under this subchapter which are assigned to the

Secretary of Energy and which relate to alcohol production shall be

carried out by the Office of Alcohol Fuels.

(g) Energy equivalency determinations respecting biomass energy and

ethanol

For purposes of this subchapter, the quantity of any biomass

energy which is the energy equivalent to 15,000,000 gallons of

ethanol shall be prescribed jointly by the Secretary of Agriculture

and the Secretary of Energy within 30 days after June 30, 1980.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 212, June 30, 1980, 94 Stat. 687.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8813, 8814, 8815, 8816 of

this title.

-End-

-CITE-

42 USC Sec. 8813 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER I - GENERAL BIOMASS ENERGY DEVELOPMENT

-HEAD-

Sec. 8813. Insured loans

-STATUTE-

(a) Authority of Secretary of Agriculture; maximum amount per

project

Subject to sections 8812 and 8817 of this title, the Secretary of

Agriculture may commit to make, and make, insured loans in amounts

not to exceed $1,000,000 per project for the construction of

small-scale biomass energy projects.

(b) Estimated project construction costs as determinative of

initial and revised amount of loan; interest rate

(1) Any insured loan under this section -

(A) may not exceed 90 per centum of the total estimated cost of

construction of the biomass energy project involved, and

(B) shall bear interest at rates determined by the Secretary of

Agriculture, taking into consideration the current average market

yield on outstanding marketable obligations of the United States

with remaining periods to maturity comparable to the average

maturities of such loans, plus not to exceed one per centum, as

determined by the Secretary of Agriculture, and adjusted to the

nearest one-eighth of one per centum.

(2) In the event the total estimated costs of construction of the

project thereafter exceed the total estimated costs initially

determined by the Secretary of Agriculture, the Secretary may in

addition, upon application therefor, make an insured loan for so

much of the additional estimated total costs as does not exceed 10

per centum of the total costs initially estimated.

(1) The Secretary of Agriculture shall make insured loans under

this section using, to the extent provided in advance in

appropriations Acts, the Agricultural Credit Insurance Fund in

section 309 of the Consolidated Farm and Rural Development Act [7

U.S.C. 1929] or the Rural Development Insurance Fund in section

309A of such Act [7 U.S.C. 1929a] (hereinafter in this section

referred to as the "Funds"). The Secretary of Agriculture may not

use an aggregate amount of funds to make or commit to make insured

loans under this section in excess of the aggregate amount for

insured loans and administrative costs appropriated and transferred

under section 8803 of this title. The terms, conditions, and

requirements applicable to such insured loans shall be in

accordance with this subchapter.

(2) There shall be reimbursed to the Funds, from appropriations

made under section 8803 of this title, amounts equal to the

operating and administrative costs incurred by the Secretary of

Agriculture in insuring loans under this section.

(3) Notwithstanding any provision of the Consolidated Farm and

Rural Development Act [7 U.S.C. 1921 et seq.], no funds made

available to the Secretary of Agriculture under this section for

insured loans shall be used for any other purpose.

(4) For purposes of this section, the term "insured loan" means a

loan which is made, sold, and insured.

(d) Preconditions

An insured loan may not be made under this section unless the

applicant for such loan has established to the satisfaction of the

Secretary that the applicant is unable without such a loan to

obtain sufficient credit elsewhere at reasonable rates and terms,

taking into consideration prevailing private and cooperative rates

and terms for loans for similar purposes and periods of time, to

finance the construction of the biomass energy project for which

such loan is sought.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 213, June 30, 1980, 94 Stat. 690.)

-REFTEXT-

REFERENCES IN TEXT

The Consolidated Farm and Rural Development Act, referred to in

subsec. (c)(3), is title III of Pub. L. 87-128, Aug. 8, 1961, 75

Stat. 307, as amended, which is classified principally to chapter

50 (Sec. 1921 et seq.) of Title 7, Agriculture. For complete

classification of this Act to the Code, see Short Title note set

out under section 1921 of Title 7 and Tables.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 8817 of this title.

-End-

-CITE-

42 USC Sec. 8814 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER I - GENERAL BIOMASS ENERGY DEVELOPMENT

-HEAD-

Sec. 8814. Loan guarantees

-STATUTE-

(a) Authority of Secretary concerned

Subject to sections 8812 and 8817 of this title, the Secretary

concerned may commit to guarantee, and guarantee, against loss of

principal and interest, loans which are made to provide funds for

the construction of biomass energy projects.

(b) Estimated project construction costs as determinative of

initial and revised amount of guarantee

(1) Any guarantee of a loan under this section may not exceed 90

per centum of the cost of the construction of the biomass energy

project involved, as estimated by the Secretary on the date of the

guarantee or commitment to guarantee.

(2) In the event the construction costs of the project are

thereafter estimated by the Secretary concerned to exceed the

construction costs initially estimated by the Secretary, the

Secretary may in addition, upon application therefor, guarantee,

against loss of principal and interest, a loan for up to 60 per

centum of the difference between the construction costs then

estimated and the construction costs initially estimated.

Financing Bank or any Federal agency

Notwithstanding the provisions of the Federal Financing Bank Act

of 1973 (12 U.S.C. 2281 et seq.) or any other provision of law

(except as may be specifically provided by reference to this

subsection in any Act enacted after June 30, 1980), no debt

obligation which is guaranteed or committed to be guaranteed by the

Secretary of Agriculture or the Secretary of Energy under this

section shall be eligible for purchase by, or commitment to

purchase by, or sale or issuance to, the Federal Financing Bank or

any Federal agency.

(d) Terms and conditions

The terms and conditions of loan guarantees under this section

shall provide that, if the Secretary concerned makes a payment of

principal or interest upon the default by a borrower, the Secretary

shall be subrogated to the rights of the recipient of such payment

(and such subrogation shall be expressly set forth in the loan

guarantee or related agreements).

(e) Termination, cancellation, or revocation, and conclusive nature

of guarantee

Any loan guarantee under this section shall not be terminated,

canceled, or otherwise revoked, except in accordance with the terms

thereof and shall be conclusive evidence that such guarantee

complies fully with the provisions of this chapter and of the

approval and legality of the principal amount, interest rate, and

all other terms of the securities, obligations, or loans and of the

guarantee.

(f) Payment to lender

If the Secretary concerned determines that -

(1) the borrower is unable to meet payments and is not in

default,

(2) it is in the public interest to permit the borrower to

continue with such project, and

(3) the probable net benefit to the United States in paying the

principal and interest due under the loan will be greater than

that which would result in the event of a default,

then the Secretary may pay to the lender under a loan guarantee

agreement an amount not greater than the principal and interest

which the borrower is obligated to pay to such lender, if the

borrower agrees to reimburse the Secretary for such payment on

terms and conditions, including interest, which the Secretary

determines are sufficient to protect the financial interests of the

United States.

(g) Preconditions

(1) A loan may not be guaranteed under this section unless the

applicant for such loan has established to the satisfaction of the

Secretary concerned that the lender is not willing without such a

guarantee to extend credit to the applicant at reasonable rates and

terms, taking into consideration prevailing rates and terms for

loans for similar purposes and periods of time, to finance the

construction of the biomass energy project for which such loan is

sought.

(2) The Secretary concerned shall ensure that the lender bears a

reasonable degree of risk in the financing of such project.

-SOURCE-

(Pub. L. 96-294, title II Sec. 214, June 30, 1980, 94 Stat. 690.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Financing Bank Act of 1973, referred to in subsec.

(c), is Pub. L. 93-224, Dec. 29, 1973, 87 Stat. 937, as amended,

which is classified generally to chapter 24 (Sec. 2281 et seq.) of

Title 12, Banks and Banking. For complete classification of this

Act to the Code, see Short Title note set out under section 2281 of

Title 12 and Tables.

-MISC1-

DEFAULTED LOANS UNDER DEPARTMENT OF ENERGY ALCOHOL FUELS LOAN

GUARANTEE PROGRAM; SALE OF ASSETS; UNOBLIGATED FUNDS

Pub. L. 101-121, title II, Oct. 23, 1989, 103 Stat. 732, provided

that:

"Notwithstanding 31 U.S.C. 3302, funds derived from the sale of

assets as a result of defaulted loans made under the Department of

Energy Alcohol Fuels Loan Guarantee program, or any other funds

received in connection with this program, shall hereafter be

credited to the Biomass Energy Development account, and shall be

available solely for payment of the guaranteed portion of defaulted

loans and associated costs of the Department of Energy Alcohol

Fuels Loan Guarantee program for loans guaranteed prior to January

1, 1987.

"Unobligated balances available in the 'Alternative fuels

production' account may hereafter be used for payment of the

guaranteed portion of defaulted loans and associated costs of the

Department of Energy Alcohol Fuels Loan Guarantee program, subject

to the determination by the Secretary of Energy that such

unobligated funds are not needed for carrying out the purposes of

the Alternative Fuels Production program: Provided, That the use of

these unobligated funds for payment of defaulted loans and

associated costs shall be available only for loans guaranteed prior

to January 1, 1987: Provided further, That such funds shall be used

only after the unobligated balance in the Department of Energy

Alcohol Fuel Loan Guarantee reserve has been exhausted."

-End-

-CITE-

42 USC Sec. 8815 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER I - GENERAL BIOMASS ENERGY DEVELOPMENT

-HEAD-

Sec. 8815. Price guarantees

-STATUTE-

(a) Authority of Secretary concerned; minimum sales price

Subject to sections 8812 and 8817 of this title, the Secretary

concerned may commit to guarantee, and guarantee, that the price

that the owner or operator of any biomass energy project will

receive for all or part of the production from that project shall

not be less than a specified sales price determined as of the date

of execution of the price guarantee or commitment to guarantee.

(b) Cost-plus arrangements as basis

(1) No price guarantee under this section may be based upon a

cost-plus arrangement, or variant thereof, which guarantees a

profit to the owner or operator involved.

(2) The use of a cost-of-service pricing mechanism by a person

pursuant to law, or by a regulatory body establishing rates for a

regulated person, shall not be deemed to be a cost-plus

arrangement, or variant thereof, for purposes of paragraph (1).

Each price guarantee, or commitment to guarantee, which is made

under this section shall specify the maximum dollar amount of

liability of the United States under that guarantee.

(d) Renegotiation of sales price and maximum liability

If the Secretary determines, in the discretion of the Secretary,

that -

(1) a biomass energy project would not otherwise be

satisfactorily completed or continued, and

(2) completion or continuation of such project would be

necessary to achieve the purposes of this chapter,

the sales price set forth in the price guarantee, and maximum

liability under such guarantee, may be renegotiated.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 215, June 30, 1980, 94 Stat. 692.)

-End-

-CITE-

42 USC Sec. 8816 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER I - GENERAL BIOMASS ENERGY DEVELOPMENT

-HEAD-

Sec. 8816. Purchase agreements

-STATUTE-

(a) Authority of Secretary concerned; consultative requirements

Subject to sections 8812 and 8817 of this title, the Secretary

concerned may commit to make, and make, purchase agreements for all

or part of the biomass energy production of any biomass energy

project, if the Secretary determines -

(1) that such biomass energy is of a type, quantity, and

quality that can be used by Federal agencies; and

(2) that the quantity of such biomass energy, if delivery is

accepted, would not exceed the likely needs of Federal agencies.

Each Secretary concerned shall consult with the other Secretary

before making any determination under paragraph (2).

(b) Maximum sales price

The sales price specified in a purchase agreement under this

section may not exceed the estimated prevailing market price as of

the date of delivery, as determined by the Secretary of Energy,

unless the Secretary concerned determines that such sales price

must exceed the estimated prevailing market price in order to

ensure the production of biomass energy to achieve the purposes of

this chapter.

The Secretary concerned in entering into, or committing to enter

into, a purchase agreement under this section shall require -

(1) assurances that the quality of the biomass energy purchased

will meet standards for the use for which such energy is

purchased;

(2) assurances that the ordered quantities of such energy will

be delivered on a timely basis; and

(3) such other assurances as may reasonably be required.

(d) Arrangements for delivery pursuant to agreement; charge to

Federal agency receiving delivery

The Secretary concerned may take delivery of biomass energy

pursuant to a purchase agreement under this section if appropriate

arrangements have been made for its distribution to and use by one

or more Federal agencies. Any Federal agency receiving such energy

shall be charged (in accordance with otherwise applicable law),

from sums appropriated to such Federal agency, for the prevailing

market price as of the date of delivery, as determined by the

Secretary of Energy, for the product which the biomass energy is

replacing.

(e) Consultative requirements

The Secretary concerned shall consult with the Secretary of

Defense and the Administrator of the General Services

Administration in carrying out this section.

(f) Terms and conditions

Each purchase agreement, and commitment to enter into a purchase

agreement, under this section shall provide that the Secretary

concerned retains the right to refuse delivery of the biomass

energy involved upon such terms and conditions as shall be

specified in the purchase agreement.

(g) Maximum dollar amount of liability of United States

Each purchase agreement, or commitment to enter into a purchase

agreement, which is made under this section shall specify the

maximum dollar amount of liability of the United States under that

agreement.

(h) Renegotiation of sales price and maximum liability

If the Secretary concerned determines, in the discretion of the

Secretary, that -

(1) a biomass energy project would not otherwise be

satisfactorily completed or continued, and

(2) completion or continuation of such project would be

necessary to achieve the purposes of this chapter,

the sales price set forth in the purchase agreement, and maximum

liability under such agreement, may be renegotiated.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 216, June 30, 1980, 94 Stat. 692.)

-End-

-CITE-

42 USC Sec. 8817 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER I - GENERAL BIOMASS ENERGY DEVELOPMENT

-HEAD-

Sec. 8817. General requirements regarding financial assistance

-STATUTE-

(a) Priorities, terms, availability, etc.

(1) Priority for financial assistance under this subchapter, and

the most favorable financial terms available, shall be provided to

a person for any biomass energy project that -

(A) uses a primary fuel other than petroleum or natural gas in

the production of biomass fuel, such as geothermal energy

resources, solar energy resources, or waste heat; or

(B) applies new technologies which expand the possible

feedstocks, produces new forms of biomass energy, or produces

biomass fuel using improved or new technologies.

Nothing in this paragraph shall be construed to exclude financial

assistance for any project which does not use such a fuel or apply

such a technology.

(2)(A) Financial assistance under this subchapter shall be

available for a biomass energy project only if the Secretary

concerned finds that the Btu content of the motor fuels to be used

in the facility involved to produce the biomass fuel will not

exceed the Btu content of the biomass fuel produced in the

facility.

(B) In making the determination under subparagraph (A), the

Secretary concerned shall take into account any displacement of

motor fuel or other petroleum products which the applicant has

demonstrated to the satisfaction of the Secretary would result from

the use of the biomass fuel produced in the facility involved.

(3) No financial assistance may be provided under this subchapter

to any person for any biomass energy project if the Secretary

concerned finds that the process to be used by the project will not

extract the protein content of the feedstock for utilization as

food or feed for readily available markets in any case in which to

do so would be technically and economically practicable.

(4) Financial assistance may not be provided under this

subchapter to any person unless the Secretary concerned -

(A) finds that necessary feedstocks are available and it is

reasonable to expect they will continue to be available in the

future, and, for biomass energy projects using wood or wood

wastes or residues from the National Forest System, there shall

be taken into account current levels of use by then existing

facilities;

(B) has obtained assurance that the person receiving such

financial assistance will bear a reasonable degree of risk in the

construction and operation of the project; and

provided for the project is not greater than is necessary to

achieve the purposes of this chapter.

(5) In providing financial assistance under this subchapter, the

Secretary concerned shall give due consideration to promoting

competition.

(6) In determining the amount of financial assistance for any

biomass energy project which will yield byproducts in addition to

biomass energy, the Secretary shall consider the potential value of

such byproducts and the costs attributable to their production.

(b) Terms, conditions, maturity, etc., for insured loans, and loan

guarantees

An insured loan may not be made, and a loan guarantee may not be

issued, under this subchapter unless the Secretary concerned

determines that the terms, conditions, maturity, security, and

schedule and amounts of repayments with respect to such loan are

reasonable and meet such standards as the Secretary determines are

sufficient to protect the financial interests of the United States.

(1) No financial assistance may be provided to any person under

this subchapter unless an application therefor -

(A) has been submitted to the Secretary concerned by that

person in such form and under such procedures as the Secretary

shall prescribe, consistent with the requirements of this

subchapter, and

(B) has been approved by the Secretary in accordance with such

procedures.

(2) Each such application shall include information regarding the

construction costs of the biomass energy project involved, and

estimates of operating costs and income relating to that project

(including the sale of any byproducts from that project). In

addition, each applicant shall provide -

(A) access at reasonable times to such other information, and

(B) such assurances,

as the Secretary concerned may require.

(d) Reports and recordkeeping

(1) Every recipient of financial assistance under this subchapter

shall, as a condition precedent thereto, consent to such

examinations and reports regarding the biomass energy project

involved as the Secretary concerned may require.

(2) With respect to each biomass energy project for which

financial assistance is provided under this subchapter, the

Secretary shall -

(A) require from the recipient of financial assistance such

reports and records relating to that project as the Secretary

deems necessary;

(B) prescribe the manner in which such recipient shall keep

such records; and

purpose of ensuring compliance with the terms and conditions upon

which financial assistance is provided.

(e) Contracts and instruments of Secretary concerned backed by full

faith and credit of United States

All contracts and instruments of the Secretary concerned to

provide, or providing, for financial assistance shall be general

obligations of the United States backed by its full faith and

credit.

(f) Contestability of contracts

Subject to the conditions of any contract for financial

assistance, such contract shall be incontestable in the hands of

the holder, except as to fraud or material misrepresentation on the

part of the holder.

(g) Fees for loan guarantees, etc.

(1) A fee or fees may be charged and collected by the Secretary

concerned for any loan guarantee, price guarantee, or purchase

agreement provided under this subchapter.

(2) The amount of such fee shall be based on the estimated

administrative costs and risk of loss, except that such fee may not

exceed 1 per centum of the amount of the financial assistance

provided.

(h) Deposit of amounts received by Secretary concerned

All amounts received by the Secretary of Agriculture or the

Secretary of Energy as fees, interest, repayment of principal, and

any other moneys received by either Secretary from activities under

this subchapter shall be deposited in the Treasury of the United

States as miscellaneous receipts. The preceding sentence shall not

apply to insured loans made under section 8813 of this title.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 217, June 30, 1980, 94 Stat. 693.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8813, 8814, 8815, 8816 of

this title.

-End-

-CITE-

42 USC Sec. 8818 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER I - GENERAL BIOMASS ENERGY DEVELOPMENT

-HEAD-

Sec. 8818. Reports

-STATUTE-

(a) Repealed. Pub. L. 99-386, title I, Sec. 101(a), Aug. 22, 1986,

100 Stat. 821

(b) Comprehensive list of loans, grants, etc.

Within 120 days after June 30, 1980, the Secretary of Energy and

the Secretary of Agriculture shall submit to the Congress a

comprehensive list of all the types of loans, grants, incentives,

rebates, or any other such private, State, or Federal economic or

financial benefits now in effect or proposed which can be or have

been used for production of alcohol to be used as a motor fuel or

petroleum substitute.

termination of Office of Alcohol Fuels

(1)(A) The Office of Alcohol Fuels shall submit to the Congress

and the President annual reports containing a general description

of the Office's operations during the year and a description and

evaluation of each biomass energy project for which financial

assistance by the Office is then in effect.

(B) Each annual report shall describe progress made toward

meeting the goals of this subchapter and contain specific

recommendations on what actions the Congress could take in order to

facilitate the work of the Office in achieving such goals.

financial statements prepared by the Office.

(2) On or before September 30, 1990, the Office shall submit to

the Congress and the President a report evaluating the overall

impact made by the Office and describing the status of each biomass

energy project which has received financial assistance under this

subchapter from the Office. Such report shall contain a plan for

the termination of the work of the Office.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 218, June 30, 1980, 94 Stat. 695;

Pub. L. 99-386, title I, Sec. 101(a), Aug. 22, 1986, 100 Stat.

821.)

-MISC1-

AMENDMENTS

1986 - Subsec. (a). Pub. L. 99-386 struck out subsec. (a) which

related to submission of quarterly reports to the President and

Congress by Secretary of Agriculture and Secretary of Energy.

TERMINATION OF REPORTING REQUIREMENTS

For termination, effective May 15, 2000, of provisions in subsec.

(c)(1) of this section relating to the requirement that the Office

of Alcohol Fuels submit annual reports to Congress, see section

3003 of Pub. L. 104-66, as amended, set out as a note under section

1113 of Title 31, Money and Finance, and the 12th item on page 91

of House Document No. 103-7.

-End-

-CITE-

42 USC Sec. 8819 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER I - GENERAL BIOMASS ENERGY DEVELOPMENT

-HEAD-

Sec. 8819. Review; reorganization

-STATUTE-

(a) The President shall review periodically the progress of the

Secretary of Agriculture and the Secretary of Energy in carrying

out the purposes of this subchapter.

(b) If the President determines it necessary in order to achieve

such purposes the President may, in accordance with the provisions

of chapter 9 of title 5, provide for a reorganization, including

any required realignment of the respective programs of the

Secretaries under this subchapter.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 219, June 30, 1980, 94 Stat. 695.)

-End-

-CITE-

42 USC Sec. 8820 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER I - GENERAL BIOMASS ENERGY DEVELOPMENT

-HEAD-

Sec. 8820. Office of Alcohol Fuels

-STATUTE-

(a) Establishment in Department of Energy; appointment and

compensation of Director

There is hereby established within the Department of Energy an

Office of Alcohol Fuels (hereinafter in this section referred to as

the "Office") to be headed by a Director, who shall be appointed by

the President, by and with the advice and consent of the Senate,

and who shall be compensated at the rate provided for level IV of

the Executive Schedule under section 5315 of title 5.

(b) Responsibilities of Director

(1) The Director shall be responsible for carrying out the

functions of the Secretary of Energy under this subchapter which

relate to alcohol, including the terms and conditions of financial

assistance and the selection of recipients for that assistance,

subject to the general supervision of the Secretary of Energy.

(2) The Director shall be responsible directly to the Secretary

of Energy.

Office

In each annual authorization and appropriation request, the

Secretary shall identify the portion thereof intended for the

support of the Office and include a statement by the Office (1)

showing the amount requested by the Office in its budgetary

presentation to the Secretary and the Office of Management and

Budget and (2) an assessment of the budgetary needs of the Office.

Whenever the Office submits to the Secretary, the President, or the

Office of Management and Budget, any formal legislative

recommendation or testimony, or comments on legislation, prepared

for submission to Congress, the Office shall concurrently transmit

a copy thereof to the appropriate committees of Congress.

(d) Consultations respecting coordination of programs

The Secretary of Energy, after consultation with the Director,

shall consult with the Secretary of the Treasury, the Secretary of

Agriculture, the Secretary of Transportation, the Secretary of

Commerce, the Administrator of the Community Services

Administration, the Administrator of the Environmental Protection

Agency, or their appointed representatives, in order to coordinate

the programs under the Director's responsibility with other

programs within the Department of Energy and in such Federal

agencies, which are related to the production of alcohol.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 220, June 30, 1980, 94 Stat. 696.)

-MISC1-

COMMUNITY SERVICES ADMINISTRATION

Community Services Administration, which was established by

section 601 of Economic Opportunity Act of 1964, as amended (42

U.S.C. 2941), terminated when Economic Opportunity Act of 1964,

Pub. L. 88-452, Aug. 20, 1964, 78 Stat. 508, as amended, was

repealed, except for titles VIII and X, effective Oct. 1, 1981, by

section 683(a) of Pub. L. 97-35, title VI, Aug. 13, 1981, 95 Stat.

519, which is classified to 42 U.S.C. 9912(a). An Office of

Community Services, headed by a Director, was established in

Department of Health and Human Services by section 676 of Pub. L.

97-35, which is classified to 42 U.S.C. 9905.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 8802 of this title.

-End-

-CITE-

42 USC Sec. 8821 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER I - GENERAL BIOMASS ENERGY DEVELOPMENT

-HEAD-

Sec. 8821. Termination of authorities; modification of terms and

conditions of conditional commitments for loan guarantees

-STATUTE-

No insured loan, loan guarantee, price guarantee, or purchase

agreement may be committed to or made under this subchapter after

September 30, 1984, except that all conditional commitments for

loan guarantees under this subchapter which were in existence on

September 30, 1984, are hereby extended through June 30, 1987. This

section shall not be construed to affect the authority of the

Secretary concerned to spend funds after such date pursuant to any

contract for financial assistance made on or before that date under

this subchapter. Notwithstanding any other provision of this

subchapter, the Secretary of Energy may modify the terms and

conditions of any conditional commitment for a loan guarantee under

this subchapter made before October 1, 1984, including the amount

of the loan guarantee. Nothing in this section shall be interpreted

as indicating Congressional approval with respect to any pending

conditional commitments under this Act.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 221, June 30, 1980, 94 Stat. 696;

Pub. L. 99-24, Sec. 1(a), Apr. 16, 1985, 99 Stat. 50; Pub. L.

99-190, Sec. 101(a), Dec. 19, 1985, 99 Stat. 1185; Pub. L. 99-272,

title VII, Sec. 7301, Apr. 7, 1986, 100 Stat. 143; Pub. L. 99-500,

Sec. 101(h) [title III, Sec. 318], Oct. 18, 1986, 100 Stat.

1783-242, 1783-286, and Pub. L. 99-591, Sec. 101(h) [title III,

Sec. 318], Oct. 30, 1986, 100 Stat. 3341-242, 3341-287; Pub. L.

100-202, Sec. 106, Dec. 22, 1987, 101 Stat. 1329-433.)

-REFTEXT-

REFERENCES IN TEXT

This Act, referred to in text, is Pub. L. 96-294, June 30, 1980,

94 Stat. 611, as amended, known as the Energy Security Act. For

complete classification of this Act to the Code, see Short Title

note set out under section 8801 of this title and Tables.

-COD-

CODIFICATION

Pub. L. 99-591 is a corrected version of Pub. L. 99-500.

Amendment of section by Pub. L. 99-190 is based on section 630 of

title VI of H.R. 3037 [Agriculture, Rural Development, and Related

Agencies Appropriations Act, 1986], as incorporated by reference by

section 101(a) of Pub. L. 99-190, and enacted into law by section

106 of Pub. L. 100-202.

-MISC1-

AMENDMENTS

1987 - For amendment by Pub. L. 100-202, see 1985 Amendment note

below.

1986 - Pub. L. 99-500 and Pub. L. 99-591 substituted "through

June 30, 1987" for "through June 30, 1986".

Pub. L. 99-272 made amendment substantially identical to that by

Pub. L. 99-190, substituting "through June 30, 1986" for "through

September 30, 1985" and inserting provisions authorizing the

Secretary of Energy to modify the terms and conditions of any

conditional commitment for a loan guarantee under this subchapter

made before Oct. 1, 1984, including the amount of the guarantee,

and further providing that nothing in this section shall be

interpreted as indicating Congressional approval with respect to

any pending conditional commitments.

1985 - Pub. L. 99-190, Sec. 101(a), as enacted by Pub. L.

100-202, substituted "through June 30, 1986" for "through September

30, 1985" and inserted provisions authorizing the Secretary of

Energy to modify the terms and conditions of any conditional

commitment for a loan guarantee under this subchapter made before

Oct. 1, 1984, including the amount of the guarantee, and further

providing that nothing in this section shall be interpreted as

indicating Congressional approval with respect to any pending

conditional commitments. See Codification note above.

Pub. L. 99-24 inserted ", except that all conditional commitments

for loan guarantees under this subchapter which were in existence

on September 30, 1984, are hereby extended through September 30,

1985".

EFFECTIVE DATE OF 1985 AMENDMENT

Section 106 of Pub. L. 100-202 provided that the amendment made

by that section is effective on date of enactment [Dec. 19, 1985]

of the "pertinent joint resolution" making continuing

appropriations for fiscal year 1986 [Pub. L. 99-190].

PENDING CONDITIONAL COMMITMENTS

Section 1(b) of Pub. L. 99-24 provided that: "Enactment of this

Act [amending this section] shall not be interpreted as indicating

congressional approval with respect to any pending conditional

commitments under this Act."

-End-

-CITE-

42 USC SUBCHAPTER II - MUNICIPAL WASTE BIOMASS ENERGY 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER II - MUNICIPAL WASTE BIOMASS ENERGY

-HEAD-

SUBCHAPTER II - MUNICIPAL WASTE BIOMASS ENERGY

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in section 8803 of this title.

-End-

-CITE-

42 USC Sec. 8831 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER II - MUNICIPAL WASTE BIOMASS ENERGY

-HEAD-

Sec. 8831. Municipal waste energy development plan

-STATUTE-

(a) Preparation by Secretary of Energy; consultative requirements

The Secretary of Energy shall prepare a comprehensive plan for

carrying out this subchapter. In the preparation of such plan, the

Secretary shall consult with the Administrator of the Environmental

Protection Agency, the Secretary of Commerce, and the head of such

other Federal agencies as the Secretary deems appropriate.

(b) Transmittal to President and Congress

Not later than 90 days after June 30, 1980, the Secretary shall

transmit the comprehensive plan to the President and the Congress.

The comprehensive plan under this section shall include a

statement setting forth -

(1) the anticipated research, development, demonstration, and

commercialization objectives to be achieved;

(2) the management structure and approach to be adopted to

carry out such plan;

(3) the program strategies, including detailed milestone goals

to be achieved;

(4) the specific funding requirements for individual program

elements and activities, including the total estimated

construction costs of proposed projects; and

(5) the estimated relative financial contributions of the

Federal Government and non-Federal participants in the program.

(d) Report to President and Congress; contents

Not later than January 1, 1982, the Secretary shall prepare and

submit to the President and the Congress a report containing a

complete description of any financial, institutional,

environmental, and social barriers to the development and

application of technologies for the recovery of energy from

municipal wastes.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 231, June 30, 1980, 94 Stat. 696.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8836, 8837 of this title.

-End-

-CITE-

42 USC Sec. 8832 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER II - MUNICIPAL WASTE BIOMASS ENERGY

-HEAD-

Sec. 8832. Construction loans

-STATUTE-

(a) Authority of Secretary of Energy

Subject to sections 8835 and 8836 of this title, the Secretary of

Energy may commit to make, and make, loans for the construction of

municipal waste energy projects.

(b) Estimated project construction costs as determinative of

initial and revised amount of loan; interest rate

(1) Any loan under this section -

(A) may not exceed 80 per centum of the total estimated cost of

the construction of the municipal waste energy project involved,

and

(B) shall bear interest at a rate determined by the Secretary

of Energy (taking into consideration the current average market

yield on outstanding marketable obligations of the United States

with remaining periods to maturity comparable to the average

maturities of such loans) plus not to exceed one per centum, as

determined by the Secretary of Energy, and adjusted to the

nearest one-eighth of one per centum.

(2) In the event the total estimated costs of construction of the

project thereafter exceed the total estimated costs initially

determined by the Secretary of Energy, the Secretary may in

addition, upon application therefor, make a loan for so much of the

additional estimated costs as does not exceed 10 per centum of the

initial total estimated costs of construction.

A loan may not be made under this section unless the person

applying for such loan has established to the satisfaction of the

Secretary of Energy that the applicant is unable without such a

loan to obtain sufficient credit elsewhere at reasonable rates and

terms, taking into consideration prevailing market rates and terms

for loans for similar periods of time, to finance the construction

of the project for which such loan is sought.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 232, June 30, 1980, 94 Stat. 697.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8835, 8836 of this title.

-End-

-CITE-

42 USC Sec. 8833 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER II - MUNICIPAL WASTE BIOMASS ENERGY

-HEAD-

Sec. 8833. Guaranteed construction loans

-STATUTE-

(a) Authority of Secretary of Energy

Subject to sections 8835 and 8836 of this title, the Secretary of

Energy may commit to guarantee, and guarantee, against loss on up

to 90 per centum of the principal and interest, any loan which is

made solely to provide funds for the construction of a municipal

waste energy project and which does not exceed 90 per centum of the

cost of the construction of the project involved, as estimated by

the Secretary on the date of the guarantee or commitment to

guarantee.

(b) Estimated project construction costs as determinative of

revised amount of guarantee

In the event the total estimated costs of construction of the

project thereafter exceed the total estimated costs initially

determined by the Secretary of Energy, the Secretary may in

addition, upon application therefor, guarantee, against loss on up

to 90 per centum of the principal and interest, a loan for so much

of the additional estimated total costs as does not exceed 10 per

centum of the total estimated costs.

The terms and conditions of loan guarantees under this section

shall provide that, if the Secretary of Energy makes a payment of

principal or interest upon the default by a borrower, the Secretary

shall be subrogated to the rights of the recipient of such payment

(and such subrogation shall be expressly set forth in the loan

guarantee or related agreements).

(d) Termination, cancellation, or revocation, and conclusive nature

of guarantee

Any loan guarantee under this section shall not be terminated,

canceled, or otherwise revoked, except in accordance with the terms

thereof and shall be conclusive evidence that such guarantee

complies fully with the provisions of this chapter and of the

approval and legality of the principal amount, interest rate, and

all other terms of the securities, obligations, or loans and of the

guarantee.

(e) Payment to lender

If the Secretary of Energy determines that -

(1) the borrower is unable to meet payments and is not in

default,

(2) it is in the public interest to permit the borrower to

continue to pursue the purposes of such project, and

(3) the probable net benefit to the United States in paying the

principal and interest due under a loan guarantee agreement will

be greater than that which would result in the event of a

default,

then the Secretary may pay to the lender under a loan guarantee

agreement an amount not greater than the principal and interest

which the borrower is obligated to pay to such lender, if the

borrower agrees to reimburse the Secretary for such payment on

terms and conditions, including interest, which the Secretary

determines are sufficient to protect the financial interests of the

United States.

(f) Preconditions

A loan may not be guaranteed under this section unless the

applicant for such loan has established to the satisfaction of the

Secretary of Energy that the lender is not willing without such a

guarantee to extend credit to the applicant at reasonable rates and

terms, taking into consideration prevailing market rates and terms

for loans for similar periods of time, to finance the construction

of the project for which such loan is sought.

(g) Payment of interest; tax consequences

(1) With respect to any loan or debt obligation which is -

(A) issued after June 30, 1980, by, or on behalf of, any State

or any political subdivision or governmental entity thereof,

(B) guaranteed by the Secretary of Energy under this section,

and

a general obligation of the issuer,

the interest paid on such obligation and received by the purchaser

thereof (or the purchaser's successors in interest) shall be

included in gross income for the purposes of chapter 1 of title 26.

(2) With respect to the amount of obligations described in

paragraph (1) that the issuer would have been able to issue as tax

exempt obligations (other than obligations secured by the full

faith and credit of the issuer as a general obligation of the

issuer), the Secretary of Energy is authorized to pay only to the

issuer any portion of the interest on such obligations, as

determined by the Secretary of the Treasury after taking into

account the interest rate which would have been paid on the

obligations had they been issued as tax exempt obligations without

being so guaranteed by the Secretary of Energy and the interest

rate actually paid on the obligations when issued as taxable

obligations. Such payments shall be made in amounts determined by

the Secretary of Energy, and in accordance with such terms and

conditions as the Secretary of the Treasury shall require.

(h) Fees

(1) A fee or fees may be charged and collected by the Secretary

of Energy for any loan guarantee under this section.

(2) The amount of such fee shall be based on the estimated

administrative costs and risk of loss, except that such fee may not

exceed 1 per centum of the maximum of the guarantee.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 233, June 30, 1980, 94 Stat. 698;

Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in subsec. (d), was in the original

"this title", meaning title II of Pub. L. 96-294, June 30, 1980, 94

Stat. 683, as amended, known as the Biomass Energy and Alcohol

Fuels Act of 1980, which enacted this chapter, sections 1435 and

3129 of Title 7, Agriculture, and section 3391a of Title 15,

Commerce and Trade, and amended sections 341, 342, 427, and 3154 of

Title 7, section 753 of Title 15, and sections 590h and 1642 of

Title 16, Conservation. For complete classification of title II to

the Code, see Short Title note set out under section 8801 of this

title and Tables.

-MISC1-

AMENDMENTS

1986 - Subsec. (g)(1). Pub. L. 99-514 substituted "Internal

Revenue Code of 1986" for "Internal Revenue Code of 1954", which

for purposes of codification was translated as "title 26" thus

requiring no change in text.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8835, 8836 of this title.

-End-

-CITE-

42 USC Sec. 8834 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER II - MUNICIPAL WASTE BIOMASS ENERGY

-HEAD-

Sec. 8834. Price support loans and price guarantees

-STATUTE-

(a) Authority of Secretary of Energy with respect to loans for

existing projects; disbursements, etc.

(1) In the case of any existing municipal waste energy project

which produces and sells biomass energy, the Secretary of Energy

may commit to make, and make, a price support loan in amounts

determined under paragraph (3) for the operation of such project.

Payments under any such loan shall be disbursed on an annual basis,

as determined (in accordance with paragraph (3)) on the basis of

the amount of biomass energy produced and sold by that project

during the 12-month period involved and the type and cost of fuel

displaced by the biomass energy sold.

(2)(A) In the case of any support loan under this section for an

existing municipal waste energy project -

(i) disbursements under such loan may not be made for more than

5 consecutive 12-month periods;

(ii) the amount of the disbursement for the second and any

subsequent 12-month period for which disbursements are to be made

under the support loan shall be reduced by an amount determined

by multiplying the amount calculated under paragraph (3) by a

factor determined by dividing the number of 12-month periods for

which disbursements are made under the support loan into the

number of such periods which have elapsed;

(iii) commencing at the end of the last of such 12-month

periods, the support loan shall be repayable over a period equal

to the then remaining useful life of the project (as determined

by the Secretary) or 10 years, whichever is shorter; and

(iv) commencing at the end of such last 12-month period, such

loan shall bear interest at a rate determined by the Secretary of

Energy (taking into consideration the current average market

yield on outstanding marketable obligations of the United States

with remaining periods to maturity comparable to the average

maturities of such loans) plus not to exceed one per centum, as

determined by the Secretary of Energy, and adjusted to the

nearest one-eighth of one per centum.

(3) The amount of the loan payment to be disbursed under this

subsection for any year with respect to each type of biomass energy

produced and sold by an existing municipal waste energy project

shall be equal to -

(A)(i) the standard support price reduced by the cost of the

fuel displaced by the biomass energy sold, or (ii) $2.00,

whichever is lower, multiplied by

(B) the amount of such biomass energy sold (in millions of

Btu's).

(b) Authority of Secretary of Energy with respect to loans for new

projects; disbursements, etc.

(1) In the case of any new municipal waste energy project which

produces and sells biomass energy, the Secretary of Energy may

commit to make, and make, a price support loan in amounts

determined in accordance with the provisions of subsection (a) of

this section, except as provided in paragraph (2).

(2) In the case of any loan under this subsection for a new

municipal waste energy project -

(A) disbursements under such loan may not be made for more than

7 consecutive 12-month periods (with reductions as provided in

subsection (a)(2)(A)(ii)) of this section;

(B) such loan shall bear interest at a rate not in excess of

the rate prescribed under subsection (a) of this section; and

accordance with the support loan agreement, be repayable,

commencing at the end of the last 12-month period covered by the

support loan, over a period not in excess of the period equal to

the then remaining useful life of the project (as determined by

the Secretary) or 15 years, whichever is shorter.

new projects; pricing determinations, etc.

(1) In the case of any new municipal waste energy project which

produces and sells biomass energy, the Secretary of Energy may

commit to make, and make, a price guarantee for the operation of

such project which guarantees that the price the owner or operator

will receive for all or part of the production from that project

shall not be less than a specified sales price determined as of the

date of execution of the guarantee agreement.

(2)(A) No price guarantee under this section may be based upon a

cost-plus arrangement, or variant thereof, which guarantees a

profit to the owner or operator involved.

(B) The use of a cost-of-service pricing mechanism by a person

pursuant to law, or by a regulatory body establishing rates for a

regulated person, shall not be deemed to be a cost-plus

arrangement, or variant thereof, for purposes of subparagraph (A).

(3) In the case of any price guarantee under this subsection for

a new municipal waste energy project -

(A) disbursements under such guarantee may not be made for more

than 7 consecutive 12-month periods; and

(B) amounts paid under this subsection may be required to be

repaid to the Secretary of Energy under such terms and conditions

as the Secretary may prescribe, including interest at a rate not

in excess of the rate prescribed under subsection (a) of this

section.

(d) Definitions; sale price of retained fuel; rules relating to

fuel displacement

For purposes of this section -

(1) The term "new municipal waste energy project" means any

municipal waste energy project which -

(A) is initially placed in service after June 30, 1980; or

(B) if initially placed in service before June 30, 1980, has

an increased capacity by reason of additional construction, and

as such is placed in service after such date.

(2) The term "existing municipal waste energy project" means

any municipal waste energy project which is not a new municipal

waste project.

(3) The term "placed in service" means operated at more than 50

percent of the estimated operational capacity.

(4)(A) Except as provided in subparagraphs (B) and (C), the

term "standard support price" means the average price (per

million Btu's) for No. 6 fuel oil imported into the United States

on June 30, 1980, as determined, by rule, by the Secretary of

Energy not later than 90 days after June 30, 1980.

(B) In any case in which the fuel displaced is No. 6 fuel oil

or any higher grade of petroleum (as determined by the Secretary

of Energy), the term "standard support price" means 125 per

centum of the price determined by rule under subparagraph (A).

project is steam or electricity, the term "standard support

price" means the price determined by rule under subparagraph (A),

subject to such adjustments as the Secretary of Energy may

authorize by rule.

(5) The term "cost of the fuel displaced" means the cost of the

fuel (per million Btu's) which the purchaser of biomass energy

would have purchased if the biomass energy had not been available

for sale to that purchaser.

(6) Any biomass energy produced by a municipal waste energy

project which may be retained for use by the owner or operator of

such project shall be considered to be sold at such price as the

Secretary of Energy determines.

(7) Not later than 90 days after June 30, 1980, the Secretary

of Energy shall prescribe, by rule, the manner of determining the

fuel displaced by the sale of any biomass energy, and the price

of the fuel displaced.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 234, June 30, 1980, 94 Stat. 699.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8835, 8836 of this title.

-End-

-CITE-

42 USC Sec. 8835 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER II - MUNICIPAL WASTE BIOMASS ENERGY

-HEAD-

Sec. 8835. General requirements regarding financial assistance

-STATUTE-

(a) Priorities, terms, availability, etc.

(1) Priority for financial assistance under the provisions of

sections 8832, 8833, and 8834 of this title and the most favorable

financial terms available, shall be provided for any municipal

waste energy project that will -

(A) produce a liquid fuel from municipal waste; or

(B) will displace petroleum or natural gas as a fuel.

(2)(A) With respect to projects producing biomass energy other

than biomass fuel, financial assistance under the provisions of

sections 8832, 8833, and 8834 of this title shall be available only

if the Secretary of Energy finds that the project does not use

petroleum or natural gas except for flame stabilization or

start-up.

(B) With respect to projects producing biomass fuel, financial

assistance under such provisions shall be available to such project

only if the Secretary of Energy finds that the Btu content of the

biomass fuel produced substantially exceeds the Btu content of any

petroleum or natural gas used in the project to produce the biomass

fuel.

(3) Financial assistance may not be provided under section 8832,

8833, or 8834 of this title unless the Secretary of Energy finds

that necessary municipal waste feedstocks are available and it is

reasonable to expect they will continue to be available for the

expected economic life of the project.

(4) In providing financial assistance under section 8832, 8833,

or 8834 of this title, the Secretary of Energy shall give due

consideration to promoting competition.

(5) In determining the amount of financial assistance for any

municipal waste energy project which will yield byproducts in

addition to biomass energy, the Secretary shall consider the value

of such byproducts and the costs attributable to their production.

(6) The Secretary of Energy shall not provide financial

assistance under section 8832, 8833, or 8834 of this title for any

municipal waste energy unless the Secretary determines -

(A) the project will be technically and economically viable;

(B) the financial assistance provided encourages and

supplements, but does not compete with nor supplant, any private

capital investment which otherwise would be available to the

proposed municipal waste energy project on reasonable terms and

conditions which would permit such project to be undertaken;

any substantial quantities, waste paper which would otherwise be

recycled for a use other than as a fuel and will not

substantially compete with facilities in existence on the date of

the financial assistance which are engaged in the separation or

recovery of reuseable materials from municipal waste; and

(D) that the amount of financial assistance provided for the

project is not greater than is necessary to achieve the purposes

of this chapter.

(b) Terms, conditions, maturity, etc.

Financial assistance may not be provided under section 8832,

8833, or 8834 of this title unless the Secretary of Energy

determines that -

(1) the terms, conditions, maturity, security and schedule and

amounts of repayments with respect to such assistance are

reasonable and meet such standards as the Secretary determines

are sufficient to protect the financial interests of the United

States; and

(2) the person receiving such financial assistance will bear a

reasonable degree of risk with respect to the project.

(1) No financial assistance may be provided to any person under

section 8832, 8833, or 8834 of this title unless an application

therefor -

(A) has been submitted to the Secretary of Energy by such

person in such form and under such procedures as the Secretary

shall prescribe, consistent with the requirements of this

subchapter, and

(B) has been approved by the Secretary in accordance with such

procedures.

(2) Each such application shall include information regarding the

construction costs of the municipal waste energy project involved

(if appropriate), and estimates of operating costs and income

relating to that project (including the sale of any byproducts from

that project). In addition, each applicant shall provide -

(A) access at reasonable times to such other information, and

(B) such assurances,

as the Secretary of Energy may require.

(d) Reports and recordkeeping

(1) Every person receiving financial assistance under section

8832, 8833, or 8834 of this title shall, as a condition precedent

thereto, consent to such examinations and reports thereon regarding

the municipal waste energy project involved as the Secretary of

Energy may require.

(2) With respect to each municipal waste energy project for which

financial assistance is provided under section 8832, 8833, or 8834

of this title, the Secretary shall -

(A) require from the recipient of financial assistance such

reports and records relating to that project as the Secretary

deems necessary;

(B) prescribe the manner in which such recipient shall keep

such records; and

purpose of ensuring compliance with the terms and conditions upon

which financial assistance is provided.

(e) Deposit of amounts received

All amounts received by the Secretary of Energy as fees,

interest, repayment of principal, and any other moneys received by

the Secretary from operations under section 8832, 8833, or 8834 of

this title shall be deposited in the general fund of (!1) Treasury

of the United States as miscellaneous receipts.

(f) Contracts and instruments backed by full faith and credit of

United States

All contracts and instruments of the Secretary of Energy to

provide, or providing, for financial assistance shall be general

obligations of the United States backed by its full faith and

credit.

(g) Contestability of contracts

Subject to the conditions of any contract for financial

assistance, such contract shall be incontestable in the hands of

the holder, except as to fraud or material misrepresentation on the

part of the holder.

(h) Eligibility of debt obligations for purchase, sale, or issuance

to Federal Financing Bank or any Federal agency

Notwithstanding the provisions of the Federal Financing Bank Act

of 1973 (12 U.S.C. 2281 et seq.) or any other provision of law

(except as may be specifically provided by reference to this

subsection in any Act enacted after June 30, 1980), no debt

obligation which is made or committed to be made, or which is

guaranteed or committed to be guaranteed by the Secretary of Energy

under section 8832, 8833, or 8834 of this title shall be eligible

for purchase by, or commitment to purchase by, or sale or issuance

to, the Federal Financing Bank or any Federal agency.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 235, June 30, 1980, 94 Stat. 701.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Financing Bank Act of 1973, referred to in subsec.

(h), is Pub. L. 93-224, Dec. 29, 1973, 87 Stat. 937, as amended,

which is classified generally to chapter 24 (Sec. 2281 et seq.) of

Title 12, Banks and Banking. For complete classification of this

Act to the Code, see Short Title note set out under section 2281 of

Title 12 and Tables.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8832, 8833 of this title.

-FOOTNOTE-

(!1) So in original. Probably should be "of the".

-End-

-CITE-

42 USC Sec. 8836 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER II - MUNICIPAL WASTE BIOMASS ENERGY

-HEAD-

Sec. 8836. Financial assistance program administration

-STATUTE-

The Secretary of Energy shall establish procedures and take such

other actions as may be necessary regarding the solicitation,

review, and evaluation of applications, and awarding of financial

assistance under section 8832, 8833, or 8834 of this title as may

be necessary to carry out the plan established under section 8831

of this title.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 236, June 30, 1980, 94 Stat. 703.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8832, 8833 of this title.

-End-

-CITE-

42 USC Sec. 8837 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER II - MUNICIPAL WASTE BIOMASS ENERGY

-HEAD-

Sec. 8837. Commercialization demonstration program pursuant to

Federal nonnuclear energy research and development

-STATUTE-

(a) Establishment and conduct pursuant to other Federal statutory

authorities; required undertakings subsequent to consultations

(1) The Secretary of Energy shall establish and conduct, pursuant

to the authorities contained in the Federal Nonnuclear Energy

Research and Development Act of 1974 [42 U.S.C. 5901 et seq.], an

accelerated research, development, and demonstration program for

promoting the commercial viability of processes for the recovery of

energy from municipal wastes.

(2) The provisions of subsections (d), (m), and (x)(2) of section

19 of such Act [42 U.S.C. 5919(d), (m), and (x)(2)] shall not apply

with respect to the program established under this section.

(3) As part of the program established under this section, the

Secretary, after consulting with the Administrator of the

Environmental Protection Agency and the Secretary of Commerce,

shall undertake -

(A) the research, development, and demonstration of

technologies to recover energy from municipal wastes;

(B) the development and application of new municipal

waste-to-energy recovery technologies;

of the performance of existing municipal waste-to-energy recovery

technologies with respect to capital costs, operating and

maintenance costs, total project financing, recovery efficiency,

and the quality of recovered energy and energy intensive

materials;

(D) the evaluation of municipal waste energy projects for the

purpose of developing a base of engineering data that can be used

in the design of future municipal waste energy projects to

recover energy from municipal wastes; and

(E) research studies on the size and other significant

characteristics of potential markets for municipal

waste-to-energy recovery technologies, and recovered energy, and

energy intensive materials.

(b) Financial assistance

Under such program, the Secretary of Energy may provide financial

assistance consisting of price supports, loans, and loan

guarantees, for the cost of planning, designing, constructing,

operating, and maintaining demonstration facilities, and, in the

case of existing facilities, modifications of such facilities

solely for demonstration purposes, for the conversion of municipal

wastes into energy or the recovery of materials.

Priority for funding of activities under subsection (a) of this

section and financial assistance under subsection (b) of this

section shall be provided for any activity or project for the

demonstration of technologies for the production of liquid fuels or

biomass energy which substitute for petroleum or natural gas.

(d) Obligation and expenditure of funds

The Secretary of Energy may not obligate or expend any funds

authorized under this chapter in carrying out subsection (b) of

this section until the plan required under section 8831(a) of this

title has been prepared and submitted to the Congress.

(e) Deposit of moneys received

All amounts received by the Secretary of Energy as fees,

interest, repayment of principal, and any other moneys received by

the Secretary from operations under this section shall be deposited

in the general fund of the Treasury of the United States as

miscellaneous receipts.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 237, June 30, 1980, 94 Stat. 703.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Nonnuclear Energy Research and Development Act of

1974, referred to in subsec. (a)(1), is Pub. L. 93-577, Dec. 31,

1974, 88 Stat. 1878, as amended, which is classified generally to

chapter 74 (Sec. 5901 et seq.) of this title. For complete

classification of this Act to the Code, see Short Title note set

out under section 5901 of this title and Tables.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 8839 of this title.

-End-

-CITE-

42 USC Sec. 8838 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER II - MUNICIPAL WASTE BIOMASS ENERGY

-HEAD-

Sec. 8838. Jurisdiction of Department of Energy and Environmental

Protection Agency

-STATUTE-

The provisions of section 5920(c) of this title, relating to the

responsibilities of the Environmental Protection Agency and the

Department of Energy, shall apply with respect to actions under

this subchapter to the same extent and in the same manner as such

provisions apply to actions under section 5920 of this title.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 238, June 30, 1980, 94 Stat. 704.)

-End-

-CITE-

42 USC Sec. 8839 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER II - MUNICIPAL WASTE BIOMASS ENERGY

-HEAD-

Sec. 8839. Office of Energy from Municipal Waste

-STATUTE-

(a) Establishment in Department of Energy; appointment of Director

There is hereby established within the Department of Energy an

Office of Energy from Municipal Waste (hereinafter in this section

referred to as the "Office") to be headed by a Director, who shall

be appointed by the Secretary of Energy.

(b) Functions

It shall be the function of the Office to perform -

(1) the research, development, demonstration, and

commercialization activities authorized under this subchapter

(including those authorized under section 8837 of this title),

and

(2) such other duties relating to the production of energy from

municipal waste as the Secretary of Energy may assign to the

Office.

In carrying out functions tranferred (!1) or assigned to the

Office, the Secretary of Energy shall consult with the

Administrator of the Environmental Protection Agency, the Secretary

of Commerce, and the heads of such other Federal agencies, as

appropriate.

(d) Transfer of related functions and personnel from Department of

Energy

The Secretary shall provide for the transfer to the Office of the

functions relating to, and personnel of the Department who are

responsible for the administration of, programs in existence on

June 30, 1980, which relate to the research, development,

demonstration, and commercialization of technologies for the

recovery of energy from municipal waste.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 239, June 30, 1980, 94 Stat. 704.)

-FOOTNOTE-

(!1) So in original. Probably should be "transferred".

-End-

-CITE-

42 USC Sec. 8840 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER II - MUNICIPAL WASTE BIOMASS ENERGY

-HEAD-

Sec. 8840. Termination of authorities

-STATUTE-

No financial assistance may be committed to or made under this

subchapter after September 30, 1984. This section shall not be

construed to affect the authority of the Secretary of Energy to

spend funds after such date pursuant to any award of financial

assistance made on or before that date.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 240, June 30, 1980, 94 Stat. 705.)

-End-

-CITE-

42 USC SUBCHAPTER III - RURAL, AGRICULTURAL, AND FORESTRY

BIOMASS ENERGY 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER III - RURAL, AGRICULTURAL, AND FORESTRY BIOMASS ENERGY

-HEAD-

SUBCHAPTER III - RURAL, AGRICULTURAL, AND FORESTRY BIOMASS ENERGY

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in section 8802 of this title.

-End-

-CITE-

42 USC Sec. 8851 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER III - RURAL, AGRICULTURAL, AND FORESTRY BIOMASS ENERGY

-HEAD-

Sec. 8851. Model demonstration biomass energy facilities;

establishment, public inspection, etc.; authorization of

appropriations

-STATUTE-

(a) The Secretary of Agriculture shall establish not more than

ten model demonstration biomass energy facilities for purposes of

exhibiting the most advanced technology available for producing

biomass energy. Such facilities and information regarding the

operation of such facilities shall be available for public

inspection, and, to the extent practicable, such facilities shall

be established in various regions in the United States. Such

facilities may be established in cooperation with appropriate

departments or agencies of the States, or appropriate in various

regions in the United States. Such facilities may be established in

cooperation with appropriate departments or agencies of the States,

or appropriate departments, agencies, or other instrumentalities of

the United States.

(b) For purposes of carrying out subsection (a) of this section,

there is authorized to be appropriated $5,000,000 for each of the

fiscal years 1981, 1982, 1983, and 1984.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 251, June 30, 1980, 94 Stat. 705.)

-End-

-CITE-

42 USC Sec. 8852 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER III - RURAL, AGRICULTURAL, AND FORESTRY BIOMASS ENERGY

-HEAD-

Sec. 8852. Coordination of research and extension activities;

consultative requirements

-STATUTE-

(a) The Secretary of Agriculture shall coordinate the applied

research and extension programs conducted under this subchapter and

under the amendments made by this subchapter to section 1419 [7

U.S.C. 3154] and subtitle B of the National Agricultural Research,

Extension, and Teaching Policy Act of 1977 [7 U.S.C. 3129],(!1)

section 1 of the Bankhead-Jones Act [7 U.S.C. 427], section 3 of

the Forest and Rangeland Renewable Resources Research Act of 1978

[16 U.S.C. 1642], and sections 1 and 2 of the Smith-Lever Act [7

U.S.C. 341, 342] with the programs of the Department of Energy.

(b) In carrying out this subchapter and the amendments made by

this subchapter, the Secretary of Agriculture shall consult on a

continuing basis with -

(1) the Subcommittee on Food, Agricultural, and Forestry

Research of the Federal Coordinating Council for Science,

Engineering, and Technology;

(2) the Joint Council on Food and Agricultural Sciences; and

(3) the National Agricultural Research and Extension Users

Advisory Board;

for the purpose of coordinating research and extension activities.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 257, June 30, 1980, 94 Stat. 708;

Pub. L. 97-98, title XIV, Sec. 1406(c), Dec. 22, 1981, 95 Stat.

1299.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original "this

subtitle", meaning subtitle C (Secs. 251-262) of title II of Pub.

L. 96-294, June 30, 1980, 94 Stat. 705, as amended, which enacted

this subchapter and sections 1435 and 3129 of Title 7, Agriculture,

and amended sections 341, 342, 427, and 3154 of Title 7 and

sections 590h and 1642 of Title 16, Conservation. For complete

classification of subtitle C to the Code, see Tables.

7 U.S.C. 3129, referred to in subsec. (a), was repealed by Pub.

L. 101-624, title XVI, Sec. 1601(f)(1)(C), Nov. 28, 1990, 104 Stat.

3704.

-MISC1-

AMENDMENTS

1981 - Subsec. (b)(1). Pub. L. 97-98 substituted "Subcommittee on

Food, Agricultural, and Forestry Research" for "Subcommittee on

Food and Renewable Resources".

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-98 effective Dec. 22, 1981, see section

1801 of Pub. L. 97-98, set out as an Effective Date note under

section 4301 of Title 7, Agriculture.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

42 USC Sec. 8853 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER III - RURAL, AGRICULTURAL, AND FORESTRY BIOMASS ENERGY

-HEAD-

Sec. 8853. Lending for energy production and conservation projects

by production credit associations, Federal land banks, and banks

for cooperatives

-STATUTE-

The Farm Credit Administration shall encourage production credit

associations, Federal land banks, and banks for cooperatives to use

existing authorities to make loans to eligible persons for

commercially feasible biomass energy projects.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 258, June 30, 1980, 94 Stat. 709.)

-End-

-CITE-

42 USC Sec. 8854 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER III - RURAL, AGRICULTURAL, AND FORESTRY BIOMASS ENERGY

-HEAD-

Sec. 8854. Utilization of National Forest System in wood energy

development projects

-STATUTE-

The Secretary of Agriculture may make available the timber

resources of the National Forest System, in accordance with

appropriate timber appraisal and sale procedures, for use by

biomass energy projects.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 261, June 30, 1980, 94 Stat. 710.)

-End-

-CITE-

42 USC Sec. 8855 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER III - RURAL, AGRICULTURAL, AND FORESTRY BIOMASS ENERGY

-HEAD-

Sec. 8855. Forest Service leases and permits

-STATUTE-

It is the intent of the Congress that the Secretary of

Agriculture shall process applications for leases of National

Forest System lands and for permits to explore, drill, and develop

resources on land leased from the Forest Service, notwithstanding

the current status of any plan being prepared under section 1604 of

title 16.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 262, June 30, 1980, 94 Stat. 710.)

-End-

-CITE-

42 USC SUBCHAPTER IV - MISCELLANEOUS BIOMASS PROVISIONS 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER IV - MISCELLANEOUS BIOMASS PROVISIONS

-HEAD-

SUBCHAPTER IV - MISCELLANEOUS BIOMASS PROVISIONS

-End-

-CITE-

42 USC Sec. 8871 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 96 - BIOMASS ENERGY AND ALCOHOL FUELS

SUBCHAPTER IV - MISCELLANEOUS BIOMASS PROVISIONS

-HEAD-

Sec. 8871. Use of gasohol in Federal motor vehicles

-STATUTE-

(a) Exercise of President's authority pursuant to executive order

respecting use

The President shall, by executive order, require that motor

vehicles which are owned or leased by Federal agencies and are

capable of operating on gasohol shall use gasohol where available

at reasonable prices and in reasonable quantities.

(b) Exceptions

The President may provide for exceptions to the requirement of

subsection (a) of this section where necessary, including to

protect the national security.

Such executive order shall specify the alcohol-gasoline mixture

or mixtures which shall constitute "gasohol" for purposes of such

order, as well as specifications for its use.

-SOURCE-

(Pub. L. 96-294, title II, Sec. 271, June 30, 1980, 94 Stat. 710.)

-MISC1-

REPORT ON EXEMPTIONS AND SENSE OF CONGRESS REGARDING PURCHASE OF

DOMESTIC GASOHOL

Pub. L. 102-190, div. A, title VIII, Sec. 841(c), (d), Dec. 5,

1991, 105 Stat. 1449, provided that:

"(c) Report on Exemptions. - The Secretary of Defense shall

review all exemptions granted for the Department of Defense, and

the Administrator of the General Services Administration shall

review all exemptions granted for Federal agencies and departments,

to the requirements of section 2398 of title 10, United States

Code, and section 271 of the Energy Security Act (Public Law

96-294; 42 U.S.C. 8871) and shall terminate any exemption that the

Secretary or the Administrator determines is no longer appropriate.

Not later than 90 days after the date of the enactment of this Act

[Dec. 5, 1991], the Secretary and the Administrator shall submit

jointly to Congress a report on the results of the review, with a

justification for the exemptions that remain in effect under those

provisions of law.

"(d) Sense of Congress. - It is the sense of Congress that

whenever any motor vehicle capable of operating on gasoline or

alcohol-gasoline blends that is owned or operated by the Department

of Defense or any other department or agency of the Federal

Government is refueled, it shall be refueled with an

alcohol-gasoline blend containing at least 10 percent domestically

produced alcohol if available along the normal travel route of the

vehicle at the same or lower price than unleaded gasoline."

-EXEC-

EX. ORD. NO. 12261. IMPLEMENTATION OF USE OF GASOHOL IN FEDERAL

MOTOR VEHICLES

Ex. Ord. No. 12261, Jan. 5, 1981, 46 F.R. 2023, provided:

By the authority vested in me as President of the United States

of America by Section 271 of the Energy Security Act (94 Stat. 710;

Public Law 96-294; 42 U.S.C. 8871), in order to require Federal

agencies which own or lease motor vehicles to use gasohol in those

vehicles which are capable of operating on gasohol where it is

available at reasonable prices and in reasonable quantities, it is

hereby ordered as follows:

1-101. In procurement actions for unleaded gasoline motor fuel,

Federal agencies shall, whenever feasible, specify that gasohol is

an acceptable substitute motor fuel. In such procurements there

shall be a preference for the purchase of gasohol.

1-102. Agencies may procure the components of gasohol and do

their own blending.

1-103. In determining the feasibility of specifying gasohol as a

substitute motor fuel in procurement actions for unleaded gasoline,

agencies shall include in their considerations such factors as the

availability of storage facilities for bulk purchases and the

number of vehicles capable of operating on gasohol.

1-104. Agencies shall designate those vehicles which are capable

of using gasohol, consistent with overall agency needs and sound

vehicle management practices. Agencies shall specify the conditions

governing the use of gasohol, including when gasohol shall be

purchased from normal retail outlets by vehicle operators.

1-105. The use of gasohol by the Department of Defense pursuant

to this Order shall be in accordance with Section 815 of the

Department of Defense Authorization Act, 1980 (93 Stat. 817; Public

Law 96-107; 10 U.S.C. 2388 note) which provides for the use of

gasohol to the maximum extent feasible and consistent with overall

defense needs and sound vehicle management practices, as determined

by the Secretary of Defense.

1-106. Vehicles used in experimental programs to test fuels other

than gasohol are excepted from this Order.

1-107. The authority vested in the President by Section 271(b) of

the Energy Security Act (42 U.S.C. 8871(b)) is delegated to the

Secretary of Defense with respect to gasohol use by the Department

of Defense, and delegated to the Administrator of General Services

with respect to gasohol use by other agencies.

1-108. Federal agencies shall make available to the Department of

Energy, upon request, relevant data or information they possess

concerning agency gasohol usage.

1-109. For purposes of this Order "Gasohol" means a motor fuel

which has an octane rating of not less than 87 (R+M)/2 and which

consists of approximately 90 percent unleaded gasoline and

approximately 10 percent anhydrous (199 proof or above) ethyl

alcohol derived from biomass, as defined in Section 203(2)(A) of

the Energy Security Act (94 Stat. 683; Public Law 96-294; 42 U.S.C.

8802(2)(A)).

1-110. (a) The Secretary of Defense with respect to gasohol use

by the Department of Defense, and the Administrator of General

Services with respect to gasohol use by other agencies, shall issue

such guidelines for the implementation of this Order as they deem

appropriate.

(b) Such guidelines shall provide for a determination of

reasonable prices and reasonable quantities based on the local

prevailing price of unleaded gasolines, the octane requirements for

vehicles in the Federal fleet, local market availability of gasohol

or its components, and other such factors, as may be appropriate.

Jimmy Carter.

-End-

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