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" has the meaning given the term "solid waste" in section 6903 of this title.

(b) Establishment of program: The Secretary^* must establish a program to provide guarantees of loans by private institutions for constructing facilities to process and convert municipal solid waste and cellulosic biomass into fuel ethanol and other commercial byproducts.

(c) Requirements: The Secretary may provide a loan guarantee under subsection (b) to an applicant if: (1) without a loan guarantee, credit is not available to the applicant on reasonable terms or conditions sufficient to finance construction of a facility described in subsection (b); (2) the applicant's prospective earning power and the character and value of the security pledged provide reasonable assurance that the loan will be repaid according to its terms; and (3) the loan has an interest rate the Secretary determines is reasonable, taking into account the current average yield on outstanding obligations of the United States with remaining maturities comparable to the loan's maturity.

(d) Criteria: When selecting recipients from among applicants, the Secretary must give preference to proposals that: (1) meet all applicable Federal and State^* permitting requirements; (2) are most likely to be successful; and (3) are located in local markets with the greatest need for the facility because of: (A) limited availability of land for waste disposal; (B) availability of sufficient quantities of cellulosic biomass; or (C) a high level of demand for fuel ethanol or other commercial byproducts of the facility.

(e) Maturity: A loan guaranteed under subsection (b) may have a maturity of no more than 20 years.

(f) Terms and conditions: The loan agreement for a loan guaranteed under subsection (b) must provide that no provision of the agreement may be amended or waived without the Secretary's consent.

(g) Assurance of repayment: The Secretary must require an applicant for a loan guarantee under subsection (b) to provide repayment assurance in the form of a performance bond, insurance, collateral, or another means acceptable to the Secretary. The amount of that assurance must be at least 20 percent of the loan amount.

(h) Guarantee fee: The recipient of a loan guarantee under subsection (b) must pay the Secretary an amount the Secretary determines is enough to cover the Secretary's administrative costs related to the loan guarantee.

(i) Full faith and credit: The full faith and credit of the United States is pledged to pay all guarantees made under this section. A guarantee made by the Secretary is conclusive evidence that the loan is eligible for the guarantee as to principal and interest. The guarantee's validity cannot be contested by a holder of the guaranteed loan.

(j) Reports: Until each guaranteed loan under this section has been fully repaid, the Secretary must submit an annual report to Congress about the Secretary's activities under this section.

(k) Authorization of appropriations: Congress may appropriate whatever amounts are necessary to carry out this section.

(l) Termination of authority: The Secretary's authority to issue a loan guarantee under subsection (b) ends on the date 10 years after August 8, 2005.