§ 16503. Sugar ethanol loan guarantee program

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(a)In general Funds may be provided for the cost (as defined in section 661a of title 2) of loan guarantees issued under title XIV 1 to carry out commercial demonstration projects for ethanol derived from sugarcane, bagasse, and other sugarcane byproducts.

(b)Demonstration projects The Secretary may issue loan guarantees under this section to projects to demonstrate commercially the feasibility and viability of producing ethanol using sugarcane, sugarcane bagasse, and other sugarcane byproducts as a feedstock.

(c)Requirements An applicant for a loan guarantee under this section may provide assurances, satisfactory to the Secretary, that—

(1)the project design has been validated through the operation of a continuous process facility;

(2)the project has been subject to a full technical review;

(3)the project, with the loan guarantee, is economically viable; and

(4)there is a reasonable assurance of repayment of the guaranteed loan.

(d)Limitations

(1)Maximum guarantee Except as provided in paragraph (2), a loan guarantee under this section—

(A)may be issued for up to 80 percent of the estimated cost of a project; but

(B)shall not exceed $50,000,000 for any 1 project.

(2)Additional guarantees

(A)In general The Secretary may issue additional loan guarantees for a project to cover—

(i)up to 80 percent of the excess of actual project costs; but

(ii)not to exceed 15 percent of the amount of the original loan guarantee.

(B)Principal and interest Subject to subparagraph (A), the Secretary shall guarantee 100 percent of the principal and interest of a loan guarantee made under subparagraph (A).

(Pub. L. 109–58, title XV, § 1516, Aug. 8, 2005, 119 Stat. 1091.)

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Cited by 2 sections

statutes-at-large

Public Law 109–58
To ensure jobs for our future with secure, affordable, and reliable energy

statute-compilations

Sec. 1516
SUGAR ETHANOL LOAN GUARANTEE PROGRAM

Traces to 2 documents

U.S. Code

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1
Pub. L. 109–58, title XV, § 1516
119 Stat. 1091
Pub. L. 109–58
119 Stat. 1061

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cites case law

§ 16503

Sugar ethanol loan guarantee program

Stat. Comp.×1

Stat.×1

U.S.C.§ 661a

U.S.C.§ 13557

Cite1

Pub. L.Pub. L. 109–58, title XV, § 1516

Stat.119 Stat. 1091

Pub. L.Pub. L. 109–58

Stat.119 Stat. 1061

Cites 7Cited by 2 across 2 sources