I 
111TH CONGRESS 
2D SESSION 
H. R. 6343 
To authorize the Secretary of Agriculture to make loans to qualified projects 
for the production of renewable source jet fuel. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 29, 2010 
Mr. INSLEE introduced the following bill; which was referred to the Committee 
on Energy and Commerce 
A BILL 
To authorize the Secretary of Agriculture to make loans 
to qualified projects for the production of renewable 
source jet fuel. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Clean, Renewable Jet 
Fuel Act’’. 
SEC. 2. LOANS FOR QUALIFYING JET FUEL PRODUCTION 
PROJECTS. 
(a) DEFINITIONS.—In this section: 
(1) DIRECT LOAN.—The term ‘‘direct loan’’ has 
the meaning given the term in section 502(1) of the 
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Federal Credit Reform Act of 1990 (2 U.S.C. 
661a(1)). 
(2) 
LIFECYCLE
GREENHOUSE
GAS
EMIS-
SIONS.—The term ‘‘lifecycle greenhouse gas emis-
sions’’ means an amount of emissions determined 
though the same methodology used by the Environ-
mental Protection Agency to evaluate lifecycle green-
house gas emissions under section 211(o) of the 
Clean Air Act (42 U.S.C. 7545). 
(3) MARKET PRICE.—The term ‘‘market price’’ 
means the weekly average closing price of the front 
month contract for West Texas Intermediate futures 
on the New York Mercantile Exchange. 
(4) QUALIFYING
JET
FUEL
PROJECT.—The 
term ‘‘qualifying jet fuel project’’ means a project lo-
cated in the United States that produces at least 
25,000,000 gallons per year of liquid aviation tur-
bine fuel or blending component that— 
(A) as produced has at least 50 percent 
less lifecycle greenhouse gas emissions than pe-
troleum; 
(B) is produced from renewable biomass, 
as defined in section 211(o)(1)(I) of the Clean 
Air Act (42 U.S.C. 7545(o)(1)(I)); and 
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(C) meets, or can be blended with other 
components to produce a fuel that meets, an 
American Society of Testing and Materials 
(ASTM) standard for aviation turbine fuels. 
(5) SALES.—The term ‘‘sales’’ means the vol-
ume of jet fuel described in paragraph (4) that has 
been sold to the open market after being produced 
from a project, as specified in an agreement entered 
into under subsection (b). 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Agriculture. 
(7) STRIKE PRICE.—The term ‘‘strike price’’ 
means a specified price below which the United 
States shall make payments in the form of a loan to 
the owner or operator of a qualified jet fuel project 
and above which the owner or operator of a qualified 
jet fuel project shall repay the loan under the terms 
specified by an agreement entered into under sub-
section (b). 
(b) LOANS.— 
(1) LOAN
AUTHORITY.—The Secretary shall 
enter into a standby loan agreement under this sec-
tion with the owners or operators of not more than 
10 qualifying jet fuel projects. Such an agreement 
shall— 
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(A) provide that the Secretary shall make 
a direct loan for the project; 
(B) define the primary term of the agree-
ment, which shall not exceed the lesser of 10 
years or 75 percent of the projected useful life 
of the project (as determined by the Secretary); 
and 
(C) define the full term of the agreement, 
which shall not exceed the lesser of 20 years or 
90 percent of the project useful life of the 
project (as determined by the Secretary). 
(2) STRIKE PRICE METHODOLOGY.—The strike 
price shall be determined by an auction process. The 
Secretary shall conduct 3 auctions over a period of 
2 years. The 3 auctions shall be structured in order 
to ensure, to the maximum extent possible, that 
number of projects awarded under each auction is 
the same. 
(3) LOAN
DISBURSEMENTS.—A loan made 
under this section shall be disbursed during the pri-
mary term of the loan agreement whenever the mar-
ket price falls below the strike price. The amount of 
such disbursement shall be equal to the excess of the 
strike price over the market price in each given 
week, times the sales of the project for the following 
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week (but not more than a total level of disburse-
ments specified in the agreement). 
(4) LOAN REPAYMENTS.—The Secretary shall 
establish terms and conditions, including interest 
rates and amortization schedules, for the repayment 
of such loan within the full term of the loan agree-
ment, subject to the following limitations: 
(A) In any calendar quarter during the 
primary term of the agreement the loan recipi-
ent may elect to defer some or all of its repay-
ment obligations due in that quarter if any new 
loan disbursements have been made in that 
quarter. Any unpaid obligations will continue to 
accrue interest. 
(B) If in any calendar quarter during the 
primary term of the agreement the market price 
is greater than the strike price, the loan recipi-
ent shall meet its scheduled repayment obliga-
tion plus deferred repayment obligations, but 
shall not be required to pay in that quarter an 
amount that is more than the excess of the 
market price over the strike price, times the 
output of the project. 
(C) Unless the Secretary determines other-
wise, at the end of the primary term of the 
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agreement, the cumulative amount of any re-
maining repayment obligations, together with 
accrued interest, shall be amortized (with inter-
est) over the remainder of the full term of the 
agreement. 
(c) COMPLIANCE WITH FEDERAL CREDIT REFORM 
ACT.—Loans under this section shall be subject to the re-
quirements of the Federal Credit Reform Act of 1990. 
Æ 
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