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§ 16503.
Sugar ethanol loan guarantee program
(a)
In general
Funds may be provided for the cost (as defined in section 661a of title 2) of loan guarantees issued under title XIV 1
1 See References in Text note below.
to carry out commercial demonstration projects for ethanol derived from sugarcane, bagasse, and other sugarcane byproducts.
(b)
Demonstration projects
The Secretary may issue loan guarantees under this section to projects to demonstrate commercially the feasibility and viability of producing ethanol using sugarcane, sugarcane bagasse, and other sugarcane byproducts as a feedstock.
(c)
Requirements
An applicant for a loan guarantee under this section may provide assurances, satisfactory to the Secretary, that—
(1)
the project design has been validated through the operation of a continuous process facility;
(2)
the project has been subject to a full technical review;
(3)
the project, with the loan guarantee, is economically viable; and
(4)
there is a reasonable assurance of repayment of the guaranteed loan.
(d)
Limitations
(1)
Maximum guarantee
Except as provided in paragraph (2), a loan guarantee under this section—
(A)
may be issued for up to 80 percent of the estimated cost of a project; but
(B)
shall not exceed $50,000,000 for any 1 project.
(2)
Additional guarantees
(A)
In general
The Secretary may issue additional loan guarantees for a project to cover—
(i)
up to 80 percent of the excess of actual project costs; but
(ii)
not to exceed 15 percent of the amount of the original loan guarantee.
(B)
Principal and interest
Subject to subparagraph (A), the Secretary shall guarantee 100 percent of the principal and interest of a loan guarantee made under subparagraph (A).