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U.S. Code as of:
01/03/05
Section 4002. Alcohol processor grain reserve program
(a) Definitions
As used in this section -
(1) The term "Secretary" means the Secretary of Agriculture.
(2) The term "processor" means any person engaged within the
United States in the business 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 defined 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 Secretary may formulate and administer a
program under which processors purchasing and storing grain needed
by them for manufacturing into alcohol 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 processors that (1) operate small
scale biomass energy projects financed in whole or in part by the
United States Government or any agency thereof, 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 reserve program and
producer storage program
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
processor 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 quantity of
grain on which one or more loans may be outstanding at any time in
the case of any processor 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 removed from storage by a processor,
the processor 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 received 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, manipulate, or
curtail the free market in such grain.
(g) Terms and conditions of loan; security; nonrecourse loans
Loans made under this section shall be made subject to such terms
and conditions and subject to such security as the Secretary deems
appropriate, except that such loans may not be made as nonrecourse
loans.
(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 appropriate 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 producer
storage program for the same period; and
(2) prescribe conditions under which the Secretary may require
processors to repay loans made under this section, plus accrued
interest thereon, refund amounts paid to the processors 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 regulation 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 program as far in advance of making loans
as practicable.
(j) Use of Commodity Credit Corporation facilities
The Secretary may use the facilities of the Commodity Credit
Corporation to carry out this section.
(k) Authorization of appropriations; appropriation 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 section. Any loans made under this
section shall be made to such extent and such amounts as provided
in appropriation Acts. The authority to make loans under this
section shall expire five years after December 3, 1980.
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