[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC4002]
TITLE 7--AGRICULTURE
CHAPTER 71--AGRICULTURAL TRADE SUSPENSION ADJUSTMENT
Sec. 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.
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\1\ See References in Text note below.
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(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.
(Pub. L. 96-494, title II, Sec. 209, Dec. 3, 1980, 94 Stat. 2575.)
