7 U.S.C. § 4002 — Alcohol processor grain reserve program

Page 1674 TITLE 7—AGRICULTURE § 4002 1 See References in Text note below. AMENDMENTS 1998—Subsec. (d)(2). Pub. L. 105–385 made technical amendment to reference in original act which appears in text as reference to section 1736f–1 of this title. 1996—Subsec. (d)(2). Pub. L. 104–127 added par. (2) and struck out former par. (2) which read as follows: ‘‘The provisions of subsections (c), (d), (e), (f), and (g)(2) of section 1736f–1 of this title shall apply to commodities in any reserve established under paragraph (1) of this subsection, and (except for the last sentence of sub- section (c) of section 1736f–1 of this title) the references to ‘wheat’ in such subsections of section 1736f–1 of this title shall be deemed to be references to ‘agricultural commodities’.’’ 1981—Subsec. (c)(2)(A). Pub. L. 97–98, § 1004(1), sub- stituted ‘‘third sentence’’ for ‘‘second sentence’’. Subsec. (c)(2)(B)(i). Pub. L. 97–98, § 1004(2), substituted ‘‘110 per centum’’ for ‘‘105 per centum’’, ‘‘Secretary may encourage repayment’’ for ‘‘Secretary may call for repayment’’, and ‘‘clause (5) of the third sentence’’ for ‘‘clause (6) of the second sentence’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97–98 effective Dec. 22, 1981, see section 1801 of Pub. L. 97–98, set out as an Effective Date note under section 4301 of this title. EFFECTIVE DATE Pub. L. 96–494, title II, § 213, Dec. 3, 1980, 94 Stat. 2578, provided that: ‘‘Except as otherwise provided herein, this title [enacting this chapter and section 1445h of this title, amending sections 1444c, 1445b, 1445e, and 1446 of this title, and enacting provisions set out as notes under this section, sections 1445e and 1445h of this title, and section 714c of Title 15, Commerce and Trade] shall become effective October 1, 1980, or the date of enact- ment [Dec. 3, 1980], whichever is later.’’ SHORT TITLE Pub. L. 96–494, § 1, Dec. 3, 1980, 94 Stat. 2570, provided: ‘‘That this Act [enacting this chapter and sections 1445h and 1736f–1 of this title, amending sections 608c, 1444c, 1445b, 1445e, and 1446 of this title, and enacting provisions set out as notes under this section, sections 1445e, 1445h, and 1736f–1 of this title, and section 714c of Title 15, Commerce and Trade] may be cited as the ‘Ag- ricultural Act of 1980’.’’ Pub. L. 96–494, title II, § 201, Dec. 3, 1980, 94 Stat. 2570, provided that: ‘‘This title [enacting this chapter and section 1445h of this title, amending sections 1444c, 1445b, 1445e, and 1446 of this title, and enacting provi- sions set out as notes under this section, sections 1445e and 1445h of this title, and section 714c of Title 15, Com- merce and Trade] may be cited as the ‘Agricultural Trade Suspension Adjustment Act of 1980’.’’ § 4002. Alcohol processor grain reserve program (a) Definitions As used in this section— (1) The term ‘‘Secretary’’ means the Sec- retary of Agriculture. (2) The term ‘‘processor’’ means any person engaged within the United States in the busi- ness 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. (5) The term ‘‘small scale biomass energy project’’ shall have the same meaning as de- fined 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 Sec- retary may formulate and administer a program under which processors purchasing and storing grain needed by them for manufacturing into al- cohol 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 proc- essors that (1) operate small scale biomass en- ergy projects financed in whole or in part by the United States Government or any agency there- of, 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 re- serve program and producer storage pro- gram 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 proc- essor 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 quan- tity of grain on which one or more loans may be outstanding at any time in the case of any proc- essor 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 re- moved from storage by a processor, the proc- essor 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 re- ceived 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, manipu- late, or curtail the free market in such grain. (g) Terms and conditions of loan; security; non- recourse loans Loans made under this section shall be made subject to such terms and conditions and subject to such security as the Secretary deems appro- priate, except that such loans may not be made as nonrecourse loans. Page 1675 TITLE 7—AGRICULTURE § 4004 (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 ap- propriate 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 pro- ducer storage program for the same period; and (2) prescribe conditions under which the Sec- retary may require processors to repay loans made under this section, plus accrued interest thereon, refund amounts paid to the proc- essors 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 regu- lation 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 pro- gram as far in advance of making loans as prac- ticable. (j) Use of Commodity Credit Corporation facili- ties The Secretary may use the facilities of the Commodity Credit Corporation to carry out this section. (k) Authorization of appropriations; appropria- tion 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 sec- tion. Any loans made under this section shall be made to such extent and such amounts as pro- vided 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, § 209, Dec. 3, 1980, 94 Stat. 2575.) Editorial Notes REFERENCES IN TEXT The producer storage program provided for under sec- tion 1445e of this title, referred to in subsec. (a)(4), re- fers to section 1445e prior to the general amendment of such section by Pub. L. 101–624, title XI, § 1123, Nov. 28, 1990, 104 Stat. 3503. As amended, section 1445e now pro- vides for a farmer owned reserve program. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Dec. 3, 1980, see section 213 of Pub. L. 96–494, set out as a note under section 4001 of this title. § 4003. Study of potential for expansion of United States agricultural export markets; report to President and Congress (a) The Secretary of Agriculture, in consulta- tion with the United States Trade Representa- tive and any other appropriate agency of the United States Government as determined by the Secretary, shall perform a study of the potential for expansion of United States agricultural ex- port markets and the use of agricultural exports in obtaining natural resources or other commod- ities and products needed by the United States. The Secretary shall complete the study and sub- mit to the President and Congress a report on the study before June 30, 1981. (b) In performing the study, the Secretary shall determine for the next five years— (1) world food, feed, and fiber needs; (2) estimated United States and world food, feed, and fiber production capabilities; (3) potential new or expanded foreign mar- kets for United States agricultural products; (4) the potential for the development of international agreements for the exchange of United States agricultural products for nat- ural resources, including energy sources, or other commodities and products needed by the United States; and (5) the steps that the United States must take to (A) increase agricultural export trade, and (B) obtain needed natural resources or other commodities and products in exchange for agricultural products, to the maximum ex- tent feasible. (Pub. L. 96–494, title II, § 210, Dec. 3, 1980, 94 Stat. 2576.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Dec. 3, 1980, see section 213 of Pub. L. 96–494, set out as a note under section 4001 of this title. § 4004. Food bank special nutrition projects (a) Distribution of agricultural commodities to community food banks for emergency dis- tribution; availability of agricultural com- modities; use of currently used distributor- ship systems; selection of food banks The Secretary of Agriculture shall carry out special nutrition projects to provide agricul- tural commodities and other foods that might not otherwise be used, or might be more effec- tively used by organizations assisted under this section, to community food banks for emer- gency food box distribution to needy individuals and families. Notwithstanding any other provi- sions of law, the Secretary shall make available for purposes of such special nutrition projects, agricultural commodities and other foods avail- able to the Secretary under section 1431 of this title, section 1446a–1 of this title, and section 612c of this title. For purposes of distributing agricultural commodities and other foods to community food banks under this section, the Secretary may, in consultation with State agen- cies, use food distribution systems currently used to distribute agricultural commodities and other foods under the Richard B. Russell Na- tional School Lunch Act [42 U.S.C. 1751 et seq.] and Child Nutrition Act of 1966 [42 U.S.C. 1771 et seq.]. The Secretary shall select food banks, in consultation with the Director of the Commu- nity Services Administration, for participation