
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC4002]

 
                          TITLE 7--AGRICULTURE
 
          CHAPTER 71--AGRICULTURAL TRADE SUSPENSION ADJUSTMENT
 
Sec. 4002. Alcohol processor grain reserve program


(a) Definitions

    As used in this section--
        (1) The term ``Secretary'' means the Secretary of Agriculture.
        (2) The term ``processor'' means any person engaged within the 
    United States in the business of manufacturing grain into alcohol 
    for use as a fuel either by itself or in combination with some other 
    product.
        (3) The terms ``agricultural grain'' and ``grain'' mean any 
    agricultural commodity (A) that is suitable for processing into 
    alcohol for use as a fuel, and (B) with respect to which a price 
    support operation is in effect.
        (4) The term ``producer storage program'' means the producer 
    storage program provided for under section 1445e \1\ of this title.
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    \1\ See References in Text note below.
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        (5) The term ``small scale biomass energy project'' shall have 
    the same meaning as defined in section 8802(19) of title 42.

(b) Loans on stored grain; processors eligible

    To assist processors in obtaining a dependable supply of grain at 
reasonable prices, the Secretary may formulate and administer a program 
under which processors purchasing and storing grain needed by them for 
manufacturing into alcohol for use as a fuel may obtain a loan from the 
Secretary on such grain. Loans under this section may be made available 
only to processors that (1) operate small scale biomass energy projects 
financed in whole or in part by the United States Government or any 
agency thereof, and (2) as determined by the Secretary, are otherwise 
unable to obtain a dependable supply of grain at reasonable prices for 
use in such projects.

(c) Terms and conditions of processor grain reserve program and producer 
        storage program

    Except as otherwise provided in this section, loans made under this 
section to carry out the processor grain reserve program may be made on 
the same terms and conditions as loans made to carry out the producer 
storage program.

(d) Amount of loan

    The amount of the loan that the Secretary may make to an eligible 
processor at any time on any quantity of grain purchased by the 
processor shall be determined by multiplying the price support loan rate 
in effect for such grain at the time the loan is made times the quantity 
of grain purchased by the processor. The quantity of grain on which one 
or more loans may be outstanding at any time in the case of any 
processor may not exceed the estimated quantity of grain needed by such 
processor for one year of operation.

(e) Replacement of removed grain

    Whenever any quantity of grain stored in the processor grain reserve 
under this section is removed from storage by a processor, the processor 
may be required to replace such grain with an equal quantity, within 
such period of time as the Secretary shall prescribe by regulation, or 
repay that portion of the loan represented by the quantity of grain 
removed from storage.

(f) Purposes for which grain to be used

    Grain on which an eligible processor has received a loan under this 
section may not be used for any purpose other than the manufacture of 
alcohol for use as a fuel, and the Secretary shall establish such 
safeguards as the Secretary deems necessary to assure that such grain is 
not used for any other purpose and is not used in any manner that would 
unduly depress, manipulate, or curtail the free market in such grain.

(g) Terms and conditions of loan; security; nonrecourse loans

    Loans made under this section shall be made subject to such terms 
and conditions and subject to such security as the Secretary deems 
appropriate, except that such loans may not be made as nonrecourse 
loans.

(h) Payment for cost of storage; repayment of loans

    In carrying out the processor grain reserve program under this 
section, the Secretary may--
        (1) provide for the payment to processors of such amounts as the 
    Secretary determines appropriate to cover the cost of storing grain 
    held in the processor grain reserve, except that in no event may the 
    rate of the payment paid under this clause for any period exceed the 
    rate paid by the Secretary under the producer storage program for 
    the same period; and
        (2) prescribe conditions under which the Secretary may require 
    processors to repay loans made under this section, plus accrued 
    interest thereon, refund amounts paid to the processors for storage, 
    and require the processors to pay such additional interest and other 
    charges as may be required by regulation in the event any processor 
    fails to abide by the terms and conditions of the loan or any 
    regulation prescribed under this section.

(i) Announcement of terms and conditions of program

    The Secretary shall announce the terms and conditions of the 
processor grain reserve program as far in advance of making loans as 
practicable.

(j) Use of Commodity Credit Corporation facilities

    The Secretary may use the facilities of the Commodity Credit 
Corporation to carry out this section.

(k) Authorization of appropriations; appropriation acts as determining 
        amount and extent of loans; expiration of authority to make 
        loans

    There are authorized to be appropriated such sums as may be 
necessary to carry out this section. Any loans made under this section 
shall be made to such extent and such amounts as provided in 
appropriation Acts. The authority to make loans under this section shall 
expire five years after December 3, 1980.

(Pub. L. 96-494, title II, Sec. 209, Dec. 3, 1980, 94 Stat. 2575.)

                       References in Text

    The producer storage program provided for under section 1445e of 
this title, referred to in subsec. (a)(4), refers to section 1445e prior 
to the general amendment of such section by Pub. L. 101-624, title XI, 
Sec. 1123, Nov. 28, 1990, 104 Stat. 3503. As amended, section 1445e now 
provides for a farmer owned reserve program.
