§ 2669. — Pilot projects for production and marketing of industrial hydrocarbons and alcohols from agricultural commodities and forest products.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC2669]
TITLE 7--AGRICULTURE
CHAPTER 59--RURAL FIRE PROTECTION, DEVELOPMENT, AND SMALL FARM RESEARCH
AND EDUCATION
SUBCHAPTER II--RURAL DEVELOPMENT AND SMALL FARM RESEARCH AND EDUCATION
Sec. 2669. Pilot projects for production and marketing of
industrial hydrocarbons and alcohols from agricultural
commodities and forest products
(a) Formulation and execution of program
The Secretary is authorized and directed to formulate and carry out
a pilot program for the production and marketing of industrial
hydrocarbons derived from agricultural commodities and forest products
for the purpose of stabilizing and expanding the market for such
commodities and products and expanding the Nation's supply of industrial
hydrocarbons.
(b) Loan guarantees
The Secretary shall provide for four pilot projects for the
production of industrial hydrocarbons and alcohols from agricultural
commodities and forest products by guaranteeing loans, not to exceed
$15,000,000 per each such project, to public, private, or cooperative
organizations organized for profit or nonprofit, or to individuals for a
term not to exceed twenty years at a rate of interest agreed upon by the
borrower and lender.
(c) Conditions
No loan may be guaranteed under this section unless (1) research
indicates the total energy content of the products and byproducts to be
manufactured by the loan applicant will exceed the total energy input
from fossil fuels used in the manufacture of such products and
byproducts, and (2) such other conditions as the Secretary deems
appropriate to achieve the purposes of this section are met.
(d) Long-term contracts to supply agricultural commodities to loan
recipients
In order to assure that the recipients of loans made under this
section have a dependable supply of agricultural commodities at a stable
price for use in the pilot projects provided for in this section, the
Secretary is authorized to enter into long-term contracts, not exceeding
five years, with the recipients of such loans. Such contracts shall
guarantee the recipients of such loans a specified quantity of
agricultural commodities annually at mutually agreed upon prices, but
the agricultural commodities shall not be sold under any such contracts
at less than the price support level prescribed for the commodity
concerned unless the commodities are out of condition, unstorable, or
sample-grade or lower, as prescribed in Department of Agriculture
standards.
(e) Commodity Credit Corporation stocks as supply sources; outside
purchases
The Secretary shall supply from Commodity Credit Corporation stocks
or, to such extent or in such amounts as are provided in appropriation
Acts, purchase such quantities of agricultural commodities as may be
necessary to comply with the terms of agreements entered into under this
section.
(f) Commodity Credit Corporation
The provisions of this section shall be carried out through the
Commodity Credit Corporation.
(Pub. L. 92-419, title V, Sec. 508, formerly Sec. 509, as added Pub. L.
95-113, title XIV, Sec. 1420, Sept. 29, 1977, 91 Stat. 998; renumbered
Pub. L. 97-98, title XIV, Sec. 1444(b), Dec. 22, 1981, 95 Stat. 1326.)
Effective Date
Section effective Oct. 1, 1977, see section 1901 of Pub. L. 95-113,
set out as an Effective Date of 1977 Amendment note under section 1307
of this title.
Section Referred to in Other Sections
This section is referred to in section 3311 of this title.
