42 U.S.C. § 8835 : US Code - Section 8835: General requirements regarding financial assistance

Search 42 U.S.C. § 8835 : US Code - Section 8835: General requirements regarding financial assistance

(a) Priorities, terms, availability, etc.
(1) Priority for financial assistance under the provisions of
sections 8832, 8833, and 8834 of this title and the most favorable
financial terms available, shall be provided for any municipal
waste energy project that will -
(A) produce a liquid fuel from municipal waste; or
(B) will displace petroleum or natural gas as a fuel.
(2)(A) With respect to projects producing biomass energy other
than biomass fuel, financial assistance under the provisions of
sections 8832, 8833, and 8834 of this title shall be available only
if the Secretary of Energy finds that the project does not use
petroleum or natural gas except for flame stabilization or start-
up.
(B) With respect to projects producing biomass fuel, financial
assistance under such provisions shall be available to such project
only if the Secretary of Energy finds that the Btu content of the
biomass fuel produced substantially exceeds the Btu content of any
petroleum or natural gas used in the project to produce the biomass
fuel.
(3) Financial assistance may not be provided under section 8832,
8833, or 8834 of this title unless the Secretary of Energy finds
that necessary municipal waste feedstocks are available and it is
reasonable to expect they will continue to be available for the
expected economic life of the project.
(4) In providing financial assistance under section 8832, 8833,
or 8834 of this title, the Secretary of Energy shall give due
consideration to promoting competition.
(5) In determining the amount of financial assistance for any
municipal waste energy project which will yield byproducts in
addition to biomass energy, the Secretary shall consider the value
of such byproducts and the costs attributable to their production.
(6) The Secretary of Energy shall not provide financial
assistance under section 8832, 8833, or 8834 of this title for any
municipal waste energy unless the Secretary determines -
(A) the project will be technically and economically viable;
(B) the financial assistance provided encourages and
supplements, but does not compete with nor supplant, any private
capital investment which otherwise would be available to the
proposed municipal waste energy project on reasonable terms and
conditions which would permit such project to be undertaken;
(C) assurances are provided that the project will not use, in
any substantial quantities, waste paper which would otherwise be
recycled for a use other than as a fuel and will not
substantially compete with facilities in existence on the date of
the financial assistance which are engaged in the separation or
recovery of reuseable materials from municipal waste; and
(D) that the amount of financial assistance provided for the
project is not greater than is necessary to achieve the purposes
of this chapter.
(b) Terms, conditions, maturity, etc.
Financial assistance may not be provided under section 8832,
8833, or 8834 of this title unless the Secretary of Energy
determines that -
(1) the terms, conditions, maturity, security and schedule and
amounts of repayments with respect to such assistance are
reasonable and meet such standards as the Secretary determines
are sufficient to protect the financial interests of the United
States; and
(2) the person receiving such financial assistance will bear a
reasonable degree of risk with respect to the project.
(c) Application requirements
(1) No financial assistance may be provided to any person under
section 8832, 8833, or 8834 of this title unless an application
therefor -
(A) has been submitted to the Secretary of Energy by such
person in such form and under such procedures as the Secretary
shall prescribe, consistent with the requirements of this
subchapter, and
(B) has been approved by the Secretary in accordance with such
procedures.
(2) Each such application shall include information regarding the
construction costs of the municipal waste energy project involved
(if appropriate), and estimates of operating costs and income
relating to that project (including the sale of any byproducts from
that project). In addition, each applicant shall provide -
(A) access at reasonable times to such other information, and
(B) such assurances,
as the Secretary of Energy may require.
(d) Reports and recordkeeping
(1) Every person receiving financial assistance under section
8832, 8833, or 8834 of this title shall, as a condition precedent
thereto, consent to such examinations and reports thereon regarding
the municipal waste energy project involved as the Secretary of
Energy may require.
(2) With respect to each municipal waste energy project for which
financial assistance is provided under section 8832, 8833, or 8834
of this title, the Secretary shall -
(A) require from the recipient of financial assistance such
reports and records relating to that project as the Secretary
deems necessary;
(B) prescribe the manner in which such recipient shall keep
such records; and
(C) have access to such records at reasonable times for the
purpose of ensuring compliance with the terms and conditions upon
which financial assistance is provided.
(e) Deposit of amounts received
All amounts received by the Secretary of Energy as fees,
interest, repayment of principal, and any other moneys received by
the Secretary from operations under section 8832, 8833, or 8834 of
this title shall be deposited in the general fund of (!1) Treasury
of the United States as miscellaneous receipts.
(f) Contracts and instruments backed by full faith and credit of
United States
All contracts and instruments of the Secretary of Energy to
provide, or providing, for financial assistance shall be general
obligations of the United States backed by its full faith and
credit.
(g) Contestability of contracts
Subject to the conditions of any contract for financial
assistance, such contract shall be incontestable in the hands of
the holder, except as to fraud or material misrepresentation on the
part of the holder.
(h) Eligibility of debt obligations for purchase, sale, or issuance
to Federal Financing Bank or any Federal agency
Notwithstanding the provisions of the Federal Financing Bank Act
of 1973 (12 U.S.C. 2281 et seq.) or any other provision of law
(except as may be specifically provided by reference to this
subsection in any Act enacted after June 30, 1980), no debt
obligation which is made or committed to be made, or which is
guaranteed or committed to be guaranteed by the Secretary of Energy
under section 8832, 8833, or 8834 of this title shall be eligible
for purchase by, or commitment to purchase by, or sale or issuance
to, the Federal Financing Bank or any Federal agency.