
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document affected by Public Law 106-469 Section 103(1)]
[CITE: 42USC6211]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                     CHAPTER 77--ENERGY CONSERVATION
 
               SUBCHAPTER I--DOMESTIC SUPPLY AVAILABILITY
 
                         Part A--Domestic Supply
 
Sec. 6211. Incentives to develop underground coal mines


(a) Loan guarantees

    The Secretary may, in accordance with subsection (b) of this section 
and rules prescribed under subsection (d) of this section, guarantee 
loans made to eligible persons described in subsection (c)(1) of this 
section for the purpose of developing new underground coal mines.

(b) Secretary's determinations prerequisite to loan guarantee; maximum 
        guarantees; aggregate outstanding guaranteed loans; new 
        underground coal mines

    (1) A person may receive for a loan guarantee under subsection (a) 
of this section only if the Secretary determines that--
        (A) such person is capable of successfully developing and 
    operating the mine with respect to which the loan guarantee is 
    sought;
        (B) such person has provided adequate assurance that the mine 
    will be constructed and operated in compliance with the provisions 
    of the Federal Coal Mine Health and Safety Act [30 U.S.C. 801 et 
    seq.] and that no final judgment holding such person liable for any 
    fine or penalty under such Act is unsatisfied;
        (C) there is a reasonable prospect of repayment of the 
    guaranteed loan;
        (D) such person has obtained a contract, of at least the 
    duration of the period during which the loan is required to be 
    repaid, for the sale or resale of coal to be produced from such mine 
    to a person who the Administrator of the Environmental Protection 
    Agency certifies will be able to burn such coal in compliance with 
    all applicable requirements of the Clean Air Act [42 U.S.C. 7401 et 
    seq.], and of any applicable implementation plan (as defined in 
    section 110 of such Act) [42 U.S.C. 7410];
        (E) the loan will be adequately secured;
        (F) such person would be unable to obtain adequate financing 
    without such guarantee;
        (G) the guaranteeing of a loan to such person will enhance 
    competition or encourage new market entry; and
        (H) such person has adequate coal reserves to cover contractual 
    commitments described in subparagraph (D).

    (2) The total amount of guarantees issued to any person (including 
all persons affiliated with such person) may not exceed $30,000,000. The 
amount of a guarantee issued with respect to any loan may not exceed 80 
percent of the lesser of (A) the principal balance of the loan or, (B) 
the cost of developing such new underground coal mine.
    (3) The aggregate outstanding principal amount of loans which are 
guaranteed under this section may not at any time exceed $750,000,000. 
Not more than 20 percent of the amount of guarantees issued under this 
section in any fiscal year may be issued with respect to loans for the 
purpose of opening new underground coal mines which produce coal which 
is not low sulfur coal.

(c) Construction and definition of terms

    For purposes of this section--
        (1) A person shall be considered eligible for a guarantee under 
    this section if such person (together with all persons affiliated 
    with such person)--
            (A) did not produce more than 1,000,000 tons of coal in the 
        calendar year preceding the year in which he makes application 
        for a loan guarantee under this section;
            (B) did not produce more than 300,000 barrels of crude oil 
        or own an oil refinery in such preceding calendar year; and
            (C) did not have gross revenues in excess of $50,000,000 in 
        such calendar year.

        (2) A person is affiliated with another person if he controls, 
    is controlled by, or is under common control with such other person, 
    as such term may be further defined by rule by the Secretary.
        (3) The term ``low sulfur coal'' means coal which, in a quantity 
    necessary to produce one million British thermal units, does not 
    contain sulfur or sulfur compounds the elemental sulfur content of 
    which exceeds 0.6 pound. Sulfur content shall be determined after 
    the application of any coal preparation process which takes place 
    before sale of the coal by the producer.
        (4) The term ``developing new underground coal mine'' includes 
    expansion of any existing underground coal mine in a manner designed 
    to increase the rate of production of such mine, and the reopening 
    of any underground coal mine which had previously been closed. Such 
    term also includes construction of a coal preparation plant which is 
    designed to reduce the sulfur content of coal produced from any coal 
    mine.

(d) Rules and regulations

    The Secretary shall prescribe such regulations as may be necessary 
or appropriate to carry out this section. Such rules shall require that 
each application for a guarantee under this section shall be made in 
writing to the Secretary in such form and with such content and other 
submissions as the Secretary shall require, in order reasonably to 
protect the interests of the United States. Each guarantee shall be 
issued in accordance with subsections (a) through (c) of this section, 
and--
        (1) under such terms and conditions as the Secretary, in 
    consultation with the Secretary of the Treasury, considers 
    appropriate;
        (2) with such provisions with respect to the date of issue of 
    such guarantee as the Secretary, with the concurrence of the 
    Secretary of the Treasury, considers appropriate, except that the 
    required concurrence of the Secretary of the Treasury may not, 
    without the consent of the Secretary, result in a delay in the 
    issuance of such guarantee for more than 60 days; and
        (3) in such form as the Secretary considers appropriate.

(e) Recordkeeping

    Each person who receives a loan guarantee under this section shall 
keep such records as the Secretary or the Secretary of the Treasury 
shall require, including records which fully disclose the total cost of 
the project for which a loan is guaranteed under this section and such 
other records as the Secretary or the Secretary of the Treasury 
determines necessary to facilitate an effective audit and performance 
evaluation. The Secretary, the Secretary of the Treasury, and the 
Comptroller General of the United States, or any of their duly 
authorized representatives, shall have access for the purpose of audit 
and examination to any pertinent books, documents, papers, and records 
of any person who receives a loan guarantee under this section.

(Pub. L. 94-163, title I, Sec. 102, Dec. 22, 1975, 89 Stat. 876; Pub. L. 
94-385, title I, Sec. 164, Aug. 14, 1976, 90 Stat. 1142; Pub. L. 95-619, 
title VI, Sec. 691(b)(2), Nov. 9, 1978, 92 Stat. 3288; Pub. L. 95-620, 
title VIII, Sec. 802, Nov. 9, 1978, 92 Stat. 3347.)

                       References in Text

    The Federal Coal Mine Health and Safety Act, referred to in subsec. 
(b)(1)(B), probably means the Federal Coal Mine Health and Safety Act of 
1969, Pub. L. 91-173, Dec. 30, 1969, 83 Stat. 742, as amended, which was 
redesignated the Federal Mine Safety and Health Act of 1977 by Pub. L. 
95-164, title I, Sec. 101, Nov. 9, 1977, 91 Stat. 1290, and is 
classified principally to chapter 22 (Sec. 801 et seq.) of Title 30, 
Mineral Lands and Mining. For complete classification of this Act to the 
Code, see Short Title note set out under section 801 of Title 30 and 
Tables.
    The Clean Air Act, referred to in subsec. (b)(1)(D), is act July 14, 
1955, ch. 360, 69 Stat. 322, as amended, which is classified generally 
to chapter 85 (Sec. 7401 et seq.) of this title. For complete 
classification of this Act to the Code, see Short Title note set out 
under section 7401 of this title and Tables.


                               Amendments

    1978--Pub. L. 95-619 substituted ``Secretary'' for 
``Administrator'', meaning Administrator of the Federal Energy 
Administration, wherever appearing.
    Subsec. (c)(4). Pub. L. 95-620 inserted provision expanding term 
``developing new underground coal mine'' to include construction of a 
coal preparation plant designed to reduce the sulfur content of coal 
produced from any coal mine.
    1976--Subsec. (c)(4). Pub. L. 94-385 added par. (4).


                    Effective Date of 1978 Amendment

    Amendment by Pub. L. 95-620 effective 180 days after Nov. 9, 1978, 
see section 901 of Pub. L. 95-620, set out as an Effective Date note 
under section 8301 of this title.
