42 U.S.C. § 16501 — Commercial byproducts from municipal solid waste and cellulosic biomass loan guarantee program

(a) Definition of municipal solid waste: In this section, "municipal solid waste" means the same as "solid waste" in section 6903 of this title. (b) Establishment of program: The Secretary must establish a program to guarantee loans made by private institutions, to build facilities that process and convert municipal solid waste and cellulosic biomass into fuel ethanol and other commercial byproducts. (c) Requirements: The Secretary may give a loan guarantee under (b) if: (1) without it, the applicant cannot get reasonable credit to finance building the facility; (2) the applicant's likely future earnings and its pledged collateral give reasonable assurance the loan will be repaid; and (3) the loan's interest rate is reasonable, considering the current average yield on outstanding U.S. government obligations with a similar remaining term. (d) Criteria: In choosing among applicants, the Secretary must favor proposals that: (1) meet all applicable federal and state permit requirements; (2) are most likely to succeed; and (3) sit in local markets with the greatest need for the facility, because of— (A) limited land available for waste disposal; (B) enough cellulosic biomass available nearby; or (C) high local demand for fuel ethanol or other byproducts. (e) Maturity: A guaranteed loan can last no more than 20 years. (f) Terms and conditions: No part of the loan agreement may be amended or waived without the Secretary's consent. (g) Assurance of repayment: The Secretary must require the applicant to provide repayment assurance, in the form of a performance bond, insurance, collateral, or other means the Secretary accepts, worth at least 20 percent of the loan amount. (h) Guarantee fee: The recipient must pay the Secretary an amount sufficient to cover the Secretary's administrative costs for the guarantee. (i) Full faith and credit: The United States government's full faith and credit backs every guarantee under this section. Once made, a guarantee is final proof the loan qualified for it, and its validity cannot be challenged by anyone holding the guaranteed loan. (j) Reports: Until every guaranteed loan under this section is fully repaid, the Secretary must send Congress a yearly report on this section's activities. (k) Authorization of appropriations: Congress may provide whatever sums are necessary to carry out this section. (l) Termination of authority: The Secretary's power to issue a new loan guarantee under this section ends 10 years after August 8, 2005.