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(B) 
REQUIRED
CONSIDERATIONS.—The
recommendations under subparagraph (A) shall
take into account the need to provide advance
notice of required modifications to refinery and
fuel distribution systems in order to ensure an
adequate supply of motor vehicle fuel in all
States.
(3) CONSULTATION.—In developing the report
under this subsection, the Administrator and the
Secretary of Energy shall consult with—
(A) the Governors of the States;
(B) automobile manufacturers;
(C) motor vehicle fuel producers and dis-
tributors; and
(D) the public.
SEC. 1511. COMMERCIAL BYPRODUCTS FROM MUNICIPAL
SOLID WASTE AND CELLULOSIC BIOMASS
LOAN GUARANTEE PROGRAM.
(a) DEFINITION OF MUNICIPAL SOLID WASTE.—In
this section, the term ‘‘municipal solid waste’’ has the
meaning given the term ‘‘solid waste’’ in section 1004 of
the Solid Waste Disposal Act (42 U.S.C. 6903).
(b) ESTABLISHMENT OF PROGRAM.—The Secretary
of Energy (hereinafter in this section referred to as the
‘‘Secretary’’) shall establish a program to provide guaran-
744
tees of loans by private institutions for the construction
of facilities for the processing and conversion of municipal
solid waste and cellulosic biomass into fuel ethanol and
other commercial byproducts.
(c) REQUIREMENTS.—The Secretary may provide a
loan guarantee under subsection (b) to an applicant if—
(1) without a loan guarantee, credit is not
available to the applicant under reasonable terms or
conditions sufficient to finance the construction of a
facility described in subsection (b);
(2) the prospective earning power of the appli-
cant and the character and value of the security
pledged provide a reasonable assurance of repayment
of the loan to be guaranteed in accordance with the
terms of the loan; and
(3) the loan bears interest at a rate determined
by the Secretary to be reasonable, taking into ac-
count the current average yield on outstanding obli-
gations of the United States with remaining periods
of maturity comparable to the maturity of the loan.
(d) CRITERIA.—In selecting recipients of loan guar-
antees from among applicants, the Secretary shall give
preference to proposals that—
(1) meet all applicable Federal and State per-
mitting requirements;
745
(2) are most likely to be successful; and
(3) are located in local markets that have the
greatest need for the facility because of—
(A) the limited availability of land for
waste disposal;
(B) the availability of sufficient quantities
of cellulosic biomass; or
(C) a high level of demand for fuel ethanol
or other commercial byproducts of the facility.
(e) MATURITY.—A loan guaranteed under subsection
(b) shall have a maturity of not more than 20 years.
(f) TERMS AND CONDITIONS.—The loan agreement
for a loan guaranteed under subsection (b) shall provide
that no provision of the loan agreement may be amended
or waived without the consent of the Secretary.
(g) ASSURANCE
OF REPAYMENT.—The Secretary
shall require that an applicant for a loan guarantee under
subsection (b) provide an assurance of repayment in the
form of a performance bond, insurance, collateral, or other
means acceptable to the Secretary in an amount equal to
not less than 20 percent of the amount of the loan.
(h) GUARANTEE FEE.—The recipient of a loan guar-
antee under subsection (b) shall pay the Secretary an
amount determined by the Secretary to be sufficient to
746
cover the administrative costs of the Secretary relating to
the loan guarantee.
(i) FULL FAITH AND CREDIT.—The full faith and
credit of the United States is pledged to the payment of
all guarantees made under this section. Any such guar-
antee made by the Secretary shall be conclusive evidence
of the eligibility of the loan for the guarantee with respect
to principal and interest. The validity of the guarantee
shall be incontestable in the hands of a holder of the guar-
anteed loan.
(j) REPORTS.—Until each guaranteed loan under this
section has been repaid in full, the Secretary shall annu-
ally submit to Congress a report on the activities of the
Secretary under this section.
(k) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated such sums as are nec-
essary to carry out this section.
(l) TERMINATION OF AUTHORITY.—The authority of
the Secretary to issue a loan guarantee under subsection
(b) terminates on the date that is 10 years after the date
of enactment of this Act.
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SEC. 1512. CONVERSION ASSITANCE FOR CELLULOSIC BIO-
MASS, WASTE-DERIVED ETHANOL, APPROVED
RENEWABLE FUELS.
Section 211 of the Clean Air Act (42 U.S.C. 7545)
is amended by adding at the end the following:
‘‘(r) CONVERSION ASSISTANCE
FOR CELLULOSIC
BIOMASS, WASTE-DERIVED ETHANOL, APPROVED RE-
NEWABLE FUELS.—
‘‘(1) IN GENERAL.—The Secretary of Energy
may provide grants to merchant producers of cel-
lulosic biomass ethanol, waste-derived ethanol, and
approved renewable fules in the United States to as-
sist the producers in building eligible production fa-
cilities described in paragraph (2) for the production
of ethanol or approved renewable fuels.
‘‘(2) ELIGIBLE
PRODUCTION
FACILITIES.—A
production facility shall be eligible to receive a grant
under this subsection if the production facility—
‘‘(A) is located in the United States; and
‘‘(B) uses cellulosic or renewable biomass
or waste-derived feedstocks derived from agri-
cultural residues, wood residues, municipal solid
waste, or agricultural byproducts as that term
is used in section 919 of the Energy Policy Act
of 2005.