
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC2669]

 
                          TITLE 7--AGRICULTURE
 
CHAPTER 59--RURAL FIRE PROTECTION, DEVELOPMENT, AND SMALL FARM RESEARCH 
                              AND EDUCATION
 
 SUBCHAPTER II--RURAL DEVELOPMENT AND SMALL FARM RESEARCH AND EDUCATION
 
Sec. 2669. Pilot projects for production and marketing of 
        industrial hydrocarbons and alcohols from agricultural 
        commodities and forest products
        

(a) Formulation and execution of program

    The Secretary is authorized and directed to formulate and carry out 
a pilot program for the production and marketing of industrial 
hydrocarbons derived from agricultural commodities and forest products 
for the purpose of stabilizing and expanding the market for such 
commodities and products and expanding the Nation's supply of industrial 
hydrocarbons.

(b) Loan guarantees

    The Secretary shall provide for four pilot projects for the 
production of industrial hydrocarbons and alcohols from agricultural 
commodities and forest products by guaranteeing loans, not to exceed 
$15,000,000 per each such project, to public, private, or cooperative 
organizations organized for profit or nonprofit, or to individuals for a 
term not to exceed twenty years at a rate of interest agreed upon by the 
borrower and lender.

(c) Conditions

    No loan may be guaranteed under this section unless (1) research 
indicates the total energy content of the products and byproducts to be 
manufactured by the loan applicant will exceed the total energy input 
from fossil fuels used in the manufacture of such products and 
byproducts, and (2) such other conditions as the Secretary deems 
appropriate to achieve the purposes of this section are met.

(d) Long-term contracts to supply agricultural commodities to loan 
        recipients

    In order to assure that the recipients of loans made under this 
section have a dependable supply of agricultural commodities at a stable 
price for use in the pilot projects provided for in this section, the 
Secretary is authorized to enter into long-term contracts, not exceeding 
five years, with the recipients of such loans. Such contracts shall 
guarantee the recipients of such loans a specified quantity of 
agricultural commodities annually at mutually agreed upon prices, but 
the agricultural commodities shall not be sold under any such contracts 
at less than the price support level prescribed for the commodity 
concerned unless the commodities are out of condition, unstorable, or 
sample-grade or lower, as prescribed in Department of Agriculture 
standards.

(e) Commodity Credit Corporation stocks as supply sources; outside 
        purchases

    The Secretary shall supply from Commodity Credit Corporation stocks 
or, to such extent or in such amounts as are provided in appropriation 
Acts, purchase such quantities of agricultural commodities as may be 
necessary to comply with the terms of agreements entered into under this 
section.

(f) Commodity Credit Corporation

    The provisions of this section shall be carried out through the 
Commodity Credit Corporation.

(Pub. L. 92-419, title V, Sec. 508, formerly Sec. 509, as added Pub. L. 
95-113, title XIV, Sec. 1420, Sept. 29, 1977, 91 Stat. 998; renumbered 
Pub. L. 97-98, title XIV, Sec. 1444(b), Dec. 22, 1981, 95 Stat. 1326.)


                             Effective Date

    Section effective Oct. 1, 1977, see section 1901 of Pub. L. 95-113, 
set out as an Effective Date of 1977 Amendment note under section 1307 
of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 3311 of this title.
