I 
108TH CONGRESS 
2D SESSION 
H. R. 4297 
To provide loan guarantees for renewable energy projects using biomass 
material. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 5, 2004 
Mr. SIMPSON (for himself and Mr. OTTER) introduced the following bill; which 
was referred to the Committee on Agriculture 
A BILL 
To provide loan guarantees for renewable energy projects 
using biomass material. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. RENEWABLE ENERGY SYSTEM LOAN GUARAN-
TEES. 
Section 9006 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 8106) is amended— 
(1) in subsection (c)(1), by striking ‘‘The’’ each 
place it appears and inserting ‘‘Except as provided 
in subsection (e), the’’;
(2) by redesignating subsections (e) and (f) as 
subsections (f) and (g), respectively; and 
(3) by inserting after subsection (d) the fol-
lowing: 
‘‘(e) LOAN GUARANTEES FOR MAJOR PROJECTS.— 
‘‘(1) DEFINITION OF SUBSIDY COSTS.—In this 
subsection, the term ‘subsidy costs’ has the meaning 
given the term ‘cost’ in section 502 of the Federal 
Credit Reform Act of 1990 (2 U.S.C. 661a). 
‘‘(2) PROJECTS.—Subsection (c)(1) shall not 
apply to a loan guarantee made under this section 
to carry out a project if— 
‘‘(A) the loan will be used— 
‘‘(i) to purchase a renewable energy 
system associated with a commercial pro-
duction agricultural enterprise; and 
‘‘(ii) to promote a solution to an envi-
ronmental problem of the State in which 
the project will be carried out; 
‘‘(B) the principal amount of the loan is 
not less than $50,000,000 and not more than 
$100,000,000; 
‘‘(C) the lender of the loan exercises due 
diligence with respect to the borrower of the 
loan;
‘‘(D) the borrower of the loan pays in full, 
before the guarantee is issued, a guarantee fee 
in the amount of the estimated subsidy cost of 
the guarantee, as determined by the Director of 
the Office of Management and Budget; 
‘‘(E) the project is certified by the appro-
priate State agency, as designated by the Gov-
ernor of the State in which the project will be 
carried out; 
‘‘(F) the project requires no Federal or 
State financial assistance, other than the loan 
guarantee provided under this subsection; and 
‘‘(G) the project complies with all nec-
essary permits, licenses, and approvals required 
under the laws of the State. 
‘‘(3) PRIORITY.—In making loan guarantees 
under this section for projects described in para-
graph (2), the Secretary shall give priority to renew-
able energy projects that promote the production of 
an agricultural commodity that is imported into the 
United States. 
‘‘(4) COST SHARING.— 
‘‘(A) IN GENERAL.—The amount of a loan 
guarantee under this section for a project de-
scribed in paragraph (2) shall not exceed 80 
percent of the total project cost. 
‘‘(B) SUBORDINATION.—Any financing for 
the non-Federal share of the total project cost 
shall be subordinated to the federally guaran-
teed portion of the total project cost. 
‘‘(5) MAXIMUM AMOUNT.— 
‘‘(A) INDIVIDUAL LOANS.—The amount of 
principal for a loan under this section for a 
project described in paragraph (2) shall not ex-
ceed $100,000,000. 
‘‘(B) ALL LOANS.—The total outstanding 
amount of principal for loans under this section 
for all projects described in paragraph (2) shall 
not exceed $1,000,000,000 for fiscal year 
2004.’’. 
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