{"identifier":"/us/usc/t42/s7546","title":42,"num":"\u00a7\u202f7546.","heading":"Renewable fuel","text":"\u00a7\u202f7546.\nRenewable fuel\n(a)\nDefinitions\nIn this section:\n(1)\nMunicipal solid waste\nThe term \u201cmunicipal solid waste\u201d has the meaning given the term \u201csolid waste\u201d in\nsection 6903 of this title\n(2)\nRFG State\nThe term \u201cRFG State\u201d means a State in which is located one or more covered areas (as defined in\nsection 7545(k)(10)(D) of this title\n(3)\nSecretary\nThe term \u201cSecretary\u201d means the Secretary of Energy.\n(b)\nCellulosic biomass ethanol and municipal solid waste loan guarantee program\n(1)\nIn general\nFunds may be provided for the cost (as defined in the Federal Credit Reform Act of 1990 (\n2 U.S.C. 661\n1\n1 See References in Text note below.\n2\n2 So in original.\n(2)\nDemonstration projects\n(A)\nIn general\nThe Secretary shall issue loan guarantees under this section to carry out not more than 4 projects to commercially demonstrate the feasibility and viability of producing cellulosic biomass ethanol or sucrose-derived ethanol, including at least 1 project that uses cereal straw as a feedstock and 1 project that uses municipal solid waste as a feedstock.\n(B)\nDesign capacity\nEach project shall have a design capacity to produce at least 30,000,000 gallons of cellulosic biomass ethanol each year.\n(3)\nApplicant assurances\nAn applicant for a loan guarantee under this section shall provide assurances, satisfactory to the Secretary, that\u2014\n(A) the project design has been validated through the operation of a continuous process facility with a cumulative output of at least 50,000 gallons of ethanol;\n(B) the project has been subject to a full technical review;\n(C) the project is covered by adequate project performance guarantees;\n(D) the project, with the loan guarantee, is economically viable; and\n(E) there is a reasonable assurance of repayment of the guaranteed loan.\n(4)\nLimitations\n(A)\nMaximum guarantee\nExcept as provided in subparagraph (B), a loan guarantee under this section may be issued for up to 80 percent of the estimated cost of a project, but may not exceed $250,000,000 for a project.\n(B)\nAdditional guarantees\n(i)\nIn general\nThe Secretary may issue additional loan guarantees for a project to cover up to 80 percent of the excess of actual project cost over estimated project cost but not to exceed 15 percent of the amount of the original guarantee.\n(ii)\nPrincipal and interest\nSubject to subparagraph (A), the Secretary shall guarantee 100 percent of the principal and interest of a loan made under subparagraph (A).\n(5)\nEquity contributions\nTo be eligible for a loan guarantee under this section, an applicant for the loan guarantee shall have binding commitments from equity investors to provide an initial equity contribution of at least 20 percent of the total project cost.\n(6)\nInsufficient amounts\nIf the amount made available to carry out this section is insufficient to allow the Secretary to make loan guarantees for 3 projects described in subsection (b), the Secretary shall issue loan guarantees for one or more qualifying projects under this section in the order in which the applications for the projects are received by the Secretary.\n(7)\nApproval\nAn application for a loan guarantee under this section shall be approved or disapproved by the Secretary not later than 90 days after the application is received by the Secretary.\n(c)\nAuthorization of appropriations for resource center\nThere is authorized to be appropriated, for a resource center to further develop bioconversion technology using low-cost biomass for the production of ethanol at the Center for Biomass-Based Energy at the Mississippi State University and the Oklahoma State University, $4,000,000 for each of fiscal years 2005 through 2007.\n(d)\nRenewable fuel production research and development grants\n(1)\nIn general\nThe Administrator shall provide grants for the research into, and development and implementation of, renewable fuel production technologies in RFG States with low rates of ethanol production, including low rates of production of cellulosic biomass ethanol.\n(2)\nEligibility\n(A)\nIn general\nThe entities eligible to receive a grant under this subsection are academic institutions in RFG States, and consortia made up of combinations of academic institutions, industry, State government agencies, or local government agencies in RFG States, that have proven experience and capabilities with relevant technologies.\n(B)\nApplication\nTo be eligible to receive a grant under this subsection, an eligible entity shall submit to the Administrator an application in such manner and form, and accompanied by such information, as the Administrator may specify.\n(3)\nAuthorization of appropriations\nThere is authorized to be appropriated to carry out this subsection $25,000,000 for each of fiscal years 2006 through 2010.\n(e)\nCellulosic biomass ethanol conversion assistance\n(1)\nIn general\nThe Secretary may provide grants to merchant producers of cellulosic biomass ethanol in the United States to assist the producers in building eligible production facilities described in paragraph (2) for the production of cellulosic biomass ethanol.\n(2)\nEligible production facilities\nA production facility shall be eligible to receive a grant under this subsection if the production facility\u2014\n(A) is located in the United States; and\n(B) uses cellulosic biomass feedstocks derived from agricultural residues or municipal solid waste.\n(3)\nAuthorization of appropriations\nThere is authorized to be appropriated to carry out this subsection\u2014\n(A) $250,000,000 for fiscal year 2006; and\n(B) $400,000,000 for fiscal year 2007.","url":"https://projectusc.org/usc/t42/s7546.html","content":[{"t":"sec","id":"/us/usc/t42/s7546","children":[{"t":"num","text":"\u00a7\u202f7546."},{"t":"heading","text":"Renewable fuel"},{"t":"subsec","id":"/us/usc/t42/s7546/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Definitions"},{"t":"chapeau","text":"In this section:"},{"t":"para","id":"/us/usc/t42/s7546/a/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Municipal solid waste"},{"t":"content","children":[{"t":"p","text":"The term \u201cmunicipal solid waste\u201d has the meaning given the term \u201csolid waste\u201d in ","children":[{"t":"ref","text":"section 6903 of this title","href":"/us/usc/t42/s6903","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s7546/a/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"RFG State"},{"t":"content","children":[{"t":"p","text":"The term \u201cRFG State\u201d means a State in which is located one or more covered areas (as defined in ","children":[{"t":"ref","text":"section 7545(k)(10)(D) of this title","href":"/us/usc/t42/s7545/k/10/D","tail":")."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s7546/a/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Secretary"},{"t":"content","children":[{"t":"p","text":"The term \u201cSecretary\u201d means the Secretary of Energy.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t42/s7546/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Cellulosic biomass ethanol and municipal solid waste loan guarantee program"},{"t":"para","id":"/us/usc/t42/s7546/b/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"Funds may be provided for the cost (as defined in the Federal Credit Reform Act of 1990 (","children":[{"t":"ref","text":"2 U.S.C. 661","href":"/us/usc/t2/s661","tail":" et seq.)) of loan guarantees issued under title XIV of the Energy Policy Act\u202f"},{"t":"ref","text":"1"},{"t":"num","text":"1","tail":"\u202fSee References in Text note below."},{"t":"text","text":"\u202fSee References in Text note below.","tail":" to carry out commercial demonstration projects for celluosic\u202f"},{"t":"ref","text":"2"},{"t":"num","text":"2","tail":"\u202fSo in original."},{"t":"text","text":"\u202fSo in original.","tail":" biomass and sucrose-derived ethanol."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s7546/b/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Demonstration projects"},{"t":"subpara","id":"/us/usc/t42/s7546/b/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"The Secretary shall issue loan guarantees under this section to carry out not more than 4 projects to commercially demonstrate the feasibility and viability of producing cellulosic biomass ethanol or sucrose-derived ethanol, including at least 1 project that uses cereal straw as a feedstock and 1 project that uses municipal solid waste as a feedstock.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s7546/b/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Design capacity"},{"t":"content","children":[{"t":"p","text":"Each project shall have a design capacity to produce at least 30,000,000 gallons of cellulosic biomass ethanol each year.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s7546/b/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Applicant assurances"},{"t":"chapeau","text":"An applicant for a loan guarantee under this section shall provide assurances, satisfactory to the Secretary, that\u2014"},{"t":"subpara","id":"/us/usc/t42/s7546/b/3/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the project design has been validated through the operation of a continuous process facility with a cumulative output of at least 50,000 gallons of ethanol;","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s7546/b/3/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the project has been subject to a full technical review;","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s7546/b/3/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" the project is covered by adequate project performance guarantees;","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s7546/b/3/D","children":[{"t":"num","text":"(D)"},{"t":"content","text":" the project, with the loan guarantee, is economically viable; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s7546/b/3/E","children":[{"t":"num","text":"(E)"},{"t":"content","text":" there is a reasonable assurance of repayment of the guaranteed loan.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s7546/b/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Limitations"},{"t":"subpara","id":"/us/usc/t42/s7546/b/4/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Maximum guarantee"},{"t":"content","children":[{"t":"p","text":"Except as provided in subparagraph (B), a loan guarantee under this section may be issued for up to 80 percent of the estimated cost of a project, but may not exceed $250,000,000 for a project.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s7546/b/4/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Additional guarantees"},{"t":"clause","id":"/us/usc/t42/s7546/b/4/B/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"The Secretary may issue additional loan guarantees for a project to cover up to 80 percent of the excess of actual project cost over estimated project cost but not to exceed 15 percent of the amount of the original guarantee.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t42/s7546/b/4/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Principal and interest"},{"t":"content","children":[{"t":"p","text":"Subject to subparagraph (A), the Secretary shall guarantee 100 percent of the principal and interest of a loan made under subparagraph (A).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s7546/b/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Equity contributions"},{"t":"content","children":[{"t":"p","text":"To be eligible for a loan guarantee under this section, an applicant for the loan guarantee shall have binding commitments from equity investors to provide an initial equity contribution of at least 20 percent of the total project cost.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s7546/b/6","children":[{"t":"num","text":"(6)"},{"t":"heading","text":"Insufficient amounts"},{"t":"content","children":[{"t":"p","text":"If the amount made available to carry out this section is insufficient to allow the Secretary to make loan guarantees for 3 projects described in subsection (b), the Secretary shall issue loan guarantees for one or more qualifying projects under this section in the order in which the applications for the projects are received by the Secretary.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s7546/b/7","children":[{"t":"num","text":"(7)"},{"t":"heading","text":"Approval"},{"t":"content","children":[{"t":"p","text":"An application for a loan guarantee under this section shall be approved or disapproved by the Secretary not later than 90 days after the application is received by the Secretary.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t42/s7546/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Authorization of appropriations for resource center"},{"t":"content","children":[{"t":"p","text":"There is authorized to be appropriated, for a resource center to further develop bioconversion technology using low-cost biomass for the production of ethanol at the Center for Biomass-Based Energy at the Mississippi State University and the Oklahoma State University, $4,000,000 for each of fiscal years 2005 through 2007.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t42/s7546/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Renewable fuel production research and development grants"},{"t":"para","id":"/us/usc/t42/s7546/d/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"The Administrator shall provide grants for the research into, and development and implementation of, renewable fuel production technologies in RFG States with low rates of ethanol production, including low rates of production of cellulosic biomass ethanol.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s7546/d/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Eligibility"},{"t":"subpara","id":"/us/usc/t42/s7546/d/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"The entities eligible to receive a grant under this subsection are academic institutions in RFG States, and consortia made up of combinations of academic institutions, industry, State government agencies, or local government agencies in RFG States, that have proven experience and capabilities with relevant technologies.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s7546/d/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Application"},{"t":"content","children":[{"t":"p","text":"To be eligible to receive a grant under this subsection, an eligible entity shall submit to the Administrator an application in such manner and form, and accompanied by such information, as the Administrator may specify.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s7546/d/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Authorization of appropriations"},{"t":"content","children":[{"t":"p","text":"There is authorized to be appropriated to carry out this subsection $25,000,000 for each of fiscal years 2006 through 2010.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t42/s7546/e","children":[{"t":"num","text":"(e)"},{"t":"heading","text":"Cellulosic biomass ethanol conversion assistance"},{"t":"para","id":"/us/usc/t42/s7546/e/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"The Secretary may provide grants to merchant producers of cellulosic biomass ethanol in the United States to assist the producers in building eligible production facilities described in paragraph (2) for the production of cellulosic biomass ethanol.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s7546/e/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Eligible production facilities"},{"t":"chapeau","text":"A production facility shall be eligible to receive a grant under this subsection if the production facility\u2014"},{"t":"subpara","id":"/us/usc/t42/s7546/e/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" is located in the United States; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s7546/e/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" uses cellulosic biomass feedstocks derived from agricultural residues or municipal solid waste.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s7546/e/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Authorization of appropriations"},{"t":"chapeau","text":"There is authorized to be appropriated to carry out this subsection\u2014"},{"t":"subpara","id":"/us/usc/t42/s7546/e/3/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" $250,000,000 for fiscal year 2006; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s7546/e/3/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" $400,000,000 for fiscal year 2007.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}