
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC8817]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
              CHAPTER 96--BIOMASS ENERGY AND ALCOHOL FUELS
 
            SUBCHAPTER I--GENERAL BIOMASS ENERGY DEVELOPMENT
 
Sec. 8817. General requirements regarding financial assistance


(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
        (C) has determined that the amount of financial assistance 
    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.

(c) Application requirements

    (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
        (C) have access to such records at reasonable times for the 
    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.

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

                  Section Referred to in Other Sections

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