42 U.S.C. § 8812 — Program responsibility and administra-

Page 7651 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 8812 Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this title’’, meaning title II of Pub. L. 96–294, June 30, 1980, 94 Stat. 683, known as the Biomass Energy and Al- cohol Fuels Act of 1980, which is classified principally to this chapter. For complete classification of title II to the Code, see Short Title note set out under section 8801 of this title and Tables. SUBCHAPTER I—GENERAL BIOMASS ENERGY DEVELOPMENT § 8811. Biomass energy development plans (a) Plan respecting maximized production and use by December 31, 1982; preparation, trans- mission, etc. Not later than 180 days after June 30, 1980, the Secretary of Agriculture and the Secretary of Energy shall jointly prepare, and transmit to the President and the Congress, a plan for maxi- mizing in accordance with this subchapter bio- mass energy production and use. Such plan shall be designed to achieve a total level of alcohol production and use within the United States of at least 60,000 barrels per day of alcohol by De- cember 31, 1982. (b) Comprehensive plan respecting maximized production and use from January 1, 1983, to December 31, 1990, preparation, trans- mission, etc. (1) Not later than January 1, 1982, the Sec- retary of Agriculture and the Secretary of En- ergy shall jointly prepare, and transmit to the President and the Congress, a comprehensive plan for maximizing in accordance with this subchapter biomass energy production and use, for the period beginning January 1, 1983, and ending December 31, 1990. Such plan shall be de- signed to achieve a level of alcohol production within the United States equal to at least 10 per- cent of the level of gasoline consumption within the United States as estimated by the Secretary of Energy for the calendar year 1990. (2) The plan prepared under this subsection shall evaluate the feasibility of reaching the goals set forth in such subsection. (c) Required guidelines The plans prepared under subsections (a) and (b) shall each include guidelines for use in awarding financial assistance under this sub- chapter which are designed to increase, during the period covered by the plan, the amount of motor fuel displaced by biomass energy. (Pub. L. 96–294, title II, § 211, June 30, 1980, 94 Stat. 686.) § 8812. Program responsibility and administra- tion and effect on other programs (a) Duties and functions of Secretary of Agri- culture and Secretary of Energy over projects (1) Except as provided in paragraph (2), in the case of any financial assistance under this sub- chapter for a biomass energy project, the Sec- retary concerned shall be— (A) the Secretary of Agriculture, in the case of any biomass energy project which will have an anticipated annual production capacity of less than 15,000,000 gallons of ethanol (or the energy equivalent of other forms of biomass energy) and which will use feedstocks other than aquatic plants; and (B) the Secretary of Energy, in the case of any biomass energy project which will use aquatic plants as feedstocks or which will have an anticipated annual production capac- ity of 15,000,000 gallons or more of ethanol (or the energy equivalent of other forms of bio- mass energy). (2)(A) Either the Secretary of Agriculture or the Secretary of Energy may be the Secretary concerned in the case of any biomass energy project which will have an anticipated annual production capacity of 15,000,000 gallons or more of ethanol (or the energy equivalent of other forms of biomass energy) and— (i) which will use wood or wood wastes or residue, or (ii) which is owned and operated by a cooper- ative and will use feedstocks other than aquatic plants. (B) Financial assistance may not be provided by either Secretary under subparagraph (A) without the written concurrence of the other Secretary. Such concurrence shall be granted or denied by such Secretary in accordance with subparagraph (C) and on the same standards as that Secretary applies in making his own awards of financial assistance under this para- graph. (C)(i) In the case of a project described in sub- paragraph (A), the Secretary concerned shall provide the other Secretary a copy of the appli- cation and such supporting information as may be material, and shall provide the other Sec- retary at least 15 days to review the project. If during such 15-day period the reviewing Sec- retary provides written notification to the Sec- retary concerned specifying reasons why such project should not proceed, the Secretary con- cerned shall defer the final decision on the appli- cation for an additional 30 days. During such 30- day period, both Secretaries shall attempt to reach agreement regarding all issues raised in the written notice. Before the end of the 30-day period, the reviewing Secretary shall notify the Secretary concerned of his decision regarding concurrence. If the reviewing Secretary fails to provide such notice before the end of such pe- riod, concurrence shall be deemed to have been given. (ii) The project applicant may reapply for fi- nancial assistance for such project, after mak- ing such modifications to the project as may be necessary to address issues raised by the review- ing Secretary in the original notice of objection. The subsequent review of such project by the re- viewing Secretary shall be limited to the issues originally raised by the reviewing Secretary and any issues raised by changed circumstances. (D) Both Secretaries may jointly act as the Secretary concerned in accordance with such procedures as the Secretaries may jointly pre- scribe, in which case— (i) subparagraphs (B) and (C) and subsection (c) shall not apply, and (ii) the proportion of financial assistance provided by each Secretary shall be deter- Page 7652 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 8812 mined in accordance with the procedures jointly prescribed. (b) Procedural requirements applicable (1) Each Secretary shall take such action as may be necessary to assure that— (A) guidelines for soliciting and receiving applications for financial assistance are estab- lished within 90 days after June 30, 1980; (B) applications for financial assistance for biomass energy projects are initially solicited within 30 days after such guidelines are estab- lished; (C) additional applications for financial as- sistance are solicited within 1 year after the date of the initial solicitation; (D) any application is evaluated and a deci- sion made on such application within 120 days after the receipt of the application, including review under subsections (a)(2)(C), (a)(2)(D), or (c); and (E) all interested persons are provided the easiest possible access to the application proc- ess, including procedures which assure that— (i) information concerning financial assist- ance from either Secretary is available through all appropriate offices of the De- partment of Agriculture and the Department of Energy, and other regional and local of- fices of the Federal Government, as may be appropriate; (ii) all such locations where such informa- tion is available will be able to accept and file applications, and will forward them to the Secretary concerned; and (iii) the procedures established for accept- ing, evaluating, and awarding financial as- sistance will provide for categories of bio- mass energy projects, according to size and provide to the maximum extent practicable the simplest procedures for small producers. (2) The procedural requirements of subpara- graphs (A) through (D) of paragraph (1) shall not apply to either Secretary to the extent that the Secretary finds that other procedures are adopt- ed for the solicitation, evaluation, and awarding of financial assistance which will result in appli- cations being processed more expeditiously. (c) Notice to and reviewing functions of other Secretary concerning application for finan- cial assistance (1) After evaluating any application and before awarding any financial assistance on the basis of that application, the Secretary concerned shall provide the other Secretary with— (A) a copy of the application and such sup- porting material as may be appropriate, and (B) an opportunity of not less than 15 days to review the application. This subsection shall not apply in the case of a project subject to review under subsection (a)(2)(C). (2) If the reviewing Secretary provides written notice specifying any issues regarding matters subject to the Secretary’s review to the Sec- retary concerned before the end of the 15-day re- view period, the Secretary concerned shall defer a final decision on the application for an addi- tional 30 days to provide an opportunity for both Secretaries to answer and resolve such issues. At the expiration of the 30-day period, the Sec- retary concerned may make a final decision with respect to the application, using the best judgment of the Secretary concerned to resolve any remaining issues. (3) Reviews of projects under the provisions of subsection (a)(2)(C) or paragraph (1)(B) by the Secretary of Agriculture shall be for the purpose of considering the national, regional, and local agricultural policy impacts of such project on agricultural supply, production, and use, and re- views by the Secretary of Energy under such provisions shall be for the purpose of consid- ering national energy policy impacts and the technical feasibility of the project. (4) The Secretary of Agriculture and the Sec- retary of Energy may jointly establish cat- egories of projects to which paragraphs (1) and (2) shall not apply. Within 90 days after June 30, 1980, the Secretaries shall identify potential cat- egories and make an initial determination of ex- empted categories. (d) Notification of applicant upon disapproval of application for financial assistance If any application for financial assistance under this subchapter is disapproved, the appli- cant shall be provided written notice of the rea- sons for the disapproval. (e) Implementation of functions assigned to Sec- retary of Agriculture by administrative enti- ties within Department of Agriculture; issuance of regulations; coordination of func- tions by designated entities (1) The functions assigned under this sub- chapter to the Secretary of Agriculture may be carried out by any of the administrative entities in the Department of Agriculture which the Sec- retary of Agriculture may designate. Within 30 days after June 30, 1980, the Secretary of Agri- culture shall make such designations and notify the Congress of the administrative entity or en- tities so designated and the officials in such ad- ministrative entity or entities who are to be re- sponsible for such functions. (2) The Secretary of Agriculture may issue such regulations as are necessary to carry out functions assigned to the Secretary of Agri- culture under this subchapter. (3) The entities or entity designated under paragraph (1) shall coordinate the administra- tion of functions assigned to it under this sub- section with any other biomass energy programs within the Department of Agriculture estab- lished under other provisions of law. (f) Implementation of functions assigned to Sec- retary of Energy by Office of Alcohol Fuels The functions under this subchapter which are assigned to the Secretary of Energy and which relate to alcohol production shall be carried out by the Office of Alcohol Fuels. (g) Energy equivalency determinations respect- ing biomass energy and ethanol For purposes of this subchapter, the quantity of any biomass energy which is the energy equivalent to 15,000,000 gallons of ethanol shall be prescribed jointly by the Secretary of Agri- culture and the Secretary of Energy within 30 days after June 30, 1980. Page 7653 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 8814 (Pub. L. 96–294, title II, § 212, June 30, 1980, 94 Stat. 687.) § 8813. Insured loans (a) Authority of Secretary of Agriculture; max- imum amount per project Subject to sections 8812 and 8817 of this title, the Secretary of Agriculture may commit to make, and make, insured loans in amounts not to exceed $1,000,000 per project for the construc- tion of small-scale biomass energy projects. (b) Estimated project construction costs as deter- minative of initial and revised amount of loan; interest rate (1) Any insured loan under this section— (A) may not exceed 90 per centum of the total estimated cost of construction of the biomass energy project involved, and (B) shall bear interest at rates determined by the Secretary of Agriculture, taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average matu- rities of such loans, plus not to exceed one per centum, as determined by the Secretary of Ag- riculture, and adjusted to the nearest one- eighth of one per centum. (2) In the event the total estimated costs of construction of the project thereafter exceed the total estimated costs initially determined by the Secretary of Agriculture, the Secretary may in addition, upon application therefor, make an insured loan for so much of the additional esti- mated total costs as does not exceed 10 per cen- tum of the total costs initially estimated. (c) Funding requirements; ‘‘insured loan’’ defined (1) The Secretary of Agriculture shall make insured loans under this section using, to the ex- tent provided in advance in appropriations Acts, the Agricultural Credit Insurance Fund in sec- tion 309 of the Consolidated Farm and Rural De- velopment Act [7 U.S.C. 1929] or the Rural De- velopment Insurance Fund in section 309A of such Act [7 U.S.C. 1929a] (hereinafter in this sec- tion referred to as the ‘‘Funds’’). The Secretary of Agriculture may not use an aggregate amount of funds to make or commit to make insured loans under this section in excess of the aggre- gate amount for insured loans and administra- tive costs appropriated and transferred under section 8803 of this title. The terms, conditions, and requirements applicable to such insured loans shall be in accordance with this sub- chapter. (2) There shall be reimbursed to the Funds, from appropriations made under section 8803 of this title, amounts equal to the operating and administrative costs incurred by the Secretary of Agriculture in insuring loans under this sec- tion. (3) Notwithstanding any provision of the Con- solidated Farm and Rural Development Act [7 U.S.C. 1921 et seq.], no funds made available to the Secretary of Agriculture under this section for insured loans shall be used for any other pur- pose. (4) For purposes of this section, the term ‘‘in- sured loan’’ means a loan which is made, sold, and insured. (d) Preconditions An insured loan may not be made under this section unless the applicant for such loan has established to the satisfaction of the Secretary that the applicant is unable without such a loan to obtain sufficient credit elsewhere at reason- able rates and terms, taking into consideration prevailing private and cooperative rates and terms for loans for similar purposes and periods of time, to finance the construction of the bio- mass energy project for which such loan is sought. (Pub. L. 96–294, title II, § 213, June 30, 1980, 94 Stat. 690.) Editorial Notes REFERENCES IN TEXT The Consolidated Farm and Rural Development Act, referred to in subsec. (c)(3), is title III of Pub. L. 87–128, Aug. 8, 1961, 75 Stat. 307, which is classified principally to chapter 50 (§ 1921 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see Short Title note set out under section 1921 of Title 7 and Tables. § 8814. Loan guarantees (a) Authority of Secretary concerned Subject to sections 8812 and 8817 of this title, the Secretary concerned may commit to guar- antee, and guarantee, against loss of principal and interest, loans which are made to provide funds for the construction of biomass energy projects. (b) Estimated project construction costs as deter- minative of initial and revised amount of guarantee (1) Any guarantee of a loan under this section may not exceed 90 per centum of the cost of the construction of the biomass energy project in- volved, as estimated by the Secretary on the date of the guarantee or commitment to guar- antee. (2) In the event the construction costs of the project are thereafter estimated by the Sec- retary concerned to exceed the construction costs initially estimated by the Secretary, the Secretary may in addition, upon application therefor, guarantee, against loss of principal and interest, a loan for up to 60 per centum of the difference between the construction costs then estimated and the construction costs initially estimated. (c) Debt obligation; ineligibility for purchase, etc., by Federal Financing Bank or any Fed- eral agency Notwithstanding the provisions of the Federal Financing Bank Act of 1973 (12 U.S.C. 2281 et seq.) or any other provision of law (except as may be specifically provided by reference to this subsection in any Act enacted after June 30, 1980), no debt obligation which is guaranteed or committed to be guaranteed by the Secretary of Agriculture or the Secretary of Energy under this section shall be eligible for purchase by, or commitment to purchase by, or sale or issuance to, the Federal Financing Bank or any Federal agency. (d) Terms and conditions The terms and conditions of loan guarantees under this section shall provide that, if the Sec-