Laws: Cases and Codes : U.S. Code : Title 20 : Section 3605


   
U.S. Code as of: 01/19/04
Section 3605. Asbestos Hazards Control Loan Program

    (a) Establishment; administration; loans to local educational
      agencies for share of project costs; project criteria; increase
      in amount of loans
      (1) There is established within the Department of Education an
    Asbestos Hazards Control Loan Program (hereinafter in this chapter
    referred to as the "Loan Program"), which shall be administered by
    the Secretary in accordance with this section.
      (2) The Secretary may make loans under this section to local
    educational agencies in an amount equal to 50 percent of the costs
    of carrying out projects for - 
        (A) the containment or removal of any materials containing
      asbestos in school buildings in which such materials pose an
      imminent hazard to the health and safety of children or
      employees;
        (B) the replacement of the asbestos materials removed from
      school buildings with other appropriate building materials; and
        (C) making repairs which the Secretary determines to be
      necessary to restore school buildings to conditions comparable to
      those existing before containment or removal activities were
      undertaken under subparagraph (A).

    Loans may be made under this section only for projects affecting
    more than 2,500 square feet of surface and in which the asbestos
    material to be contained or removed consists of a minimum asbestos
    level, as determined by the Secretary under section 3606(a)(2) of
    this title.
      (3) If the Secretary determines that an applicant has limited
    fiscal resources and would be unable to carry out the projects
    described in paragraph (2) without receiving a loan under this
    section for an amount greater than the amount permitted under such
    paragraph, the Secretary may increase the amount of the loan
    payable to such applicant to an amount the Secretary considers
    appropriate to enable the applicant to carry out such projects.
    (b) Loan agreements; required terms; additional terms and
      conditions
      Loans under this section shall be made pursuant to loan
    agreements which shall provide for the following terms:
        (1) The loan shall not bear any interest except as otherwise
      provided under paragraph (5).
        (2) The loan shall have a maturity period of not more than 20
      years (as determined by the Secretary) and shall be repayable
      during such period at such times and in such amounts as the
      Secretary may specify in the loan agreement.
        (3) Repayment of the loan shall be made to the Secretary of the
      Treasury for deposit in the general fund of the Treasury.

    Such loans shall be subject to such other terms and conditions as
    the Secretary may establish for the protection of the financial
    interest of the United States and in furtherance of the purposes of
    this chapter.
    (c) Application for loans; procedures applicable for approval;
      projects completed before January 1, 1976
      (1) No loan may be made under this section unless an application
    has been submitted to and approved by the Secretary, after
    consultation with the Task Force, within the two-year period
    beginning on June 14, 1980. The Secretary may not approve an
    application unless - 
        (A) the application contains such information as the Secretary
      may require, including information describing - 
          (i) the nature of the asbestos problem for which the loan is
        sought;
          (ii) the asbestos content of the material to be contained or
        removed by the local educational agency, as determined under
        preliminary testing which was conducted in accordance with the
        standards established by the Secretary under section 3606(a)(1)
        of this title, or, in the case of testing conducted before June
        14, 1980, was conducted in a manner which substantially
        conforms to such standards; and
          (iii) the methods which will be used to contain or remove the
        asbestos materials, in accordance with section 3606(b) of this
        title, and any other pertinent details relating to the project
        or projects to be conducted by the applicant (as described in
        subsection (a)(2) of this section); and

        (B) the application contains assurances that - 
          (i) any employee engaged in any activity to carry out
        programs under this section shall be notified in writing by the
        local educational agency conducting the program of the hazards
        of working with asbestos, and shall be required to utilize all
        appropriate safety procedures to minimize health risks;
          (ii) no child or school employee shall be permitted in the
        vicinity of any asbestos containment or removal activity; and
          (iii) the local educational agency shall pay employees
        engaged in containment, removal, or replacement activities to
        carry out programs under this section at reasonable rates of
        pay, as established by the Secretary on the basis of prevailing
        wage rates in the location of such work.

      (2) The Secretary shall provide the Task Force with a copy of any
    application submitted to the Secretary under paragraph (1).
      (3) No loans may be made by the Secretary under this section for
    projects described in subsection (a)(2) of this section which
    commenced before the availability of loans under the Loan Program
    unless the local educational agency submits to the Secretary an
    application which - 
        (A) meets the requirements of paragraph (1); and
        (B) contains assurances that any work already completed by the
      applicant has been carried out in substantial conformity with
      section 3606(b) of this title.

    No loan may be awarded under this section for any project described
    in subsection (a)(2) of this section which was completed before
    January 1, 1976.
    (d) Reporting requirements for Secretary
      During each of the three calendar years after 1980, the Secretary
    shall submit before February 1 of such year a report to the
    appropriate committees of the House of Representatives and the
    Senate, which shall - 
        (1) describe the number of loans made in the preceding calendar
      year and specify each applicant for and recipient of a loan;
        (2) describe the nature of the asbestos problem of each
      applicant;
        (3) describe the types of programs for which loans were made;
        (4) specify the estimated total costs of such programs to the
      recipients of loans and specify the amount of loans made under
      the Loan Program; and
        (5) specify the number of loan applications which were
      disapproved during the preceding calendar year and describe the
      reasons for such disapprovals.



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