II 110th CONGRESS 1st Session S. 1813 IN THE SENATE OF THE UNITED STATES July 18 (legislative day, July 17), 2007 Mr. Coleman (for himself and Mr. Feingold) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources A BILL To amend the Energy Policy Act of 2005 to provide individuals with an opportunity to participate in the financing or ownership of local biorefineries.
1.
Local ownership of biorefineries
(a)
In general
Subtitle A of title II of the Energy Policy Act of 2005 (42 U.S.C. 15851 et seq.) is amended by adding at the end the following:
212.
Local ownership of biorefineries
(a)
Definitions
In this section: (1)
Biorefinery
The term biorefinery has the meaning given the term in section 9003(b) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8103(b)). (2)
Eligible purchaser
The term eligible purchaser, with respect to a biorefinery, means— (A)a natural person with a principal residence that is located not more than 50 miles from the biorefinery; or (B)a farmer or rancher cooperative. (b)
Requirement
(1)
In general
Subject to paragraphs (2) and (3), in the case of a biorefinery that is financed, refinanced, or financially supported, in whole or in part, using a loan, loan guarantee, or grant made by a Federal agency on or after the date of enactment of this section, as a condition of the receipt of the loan, loan guarantee, or grant, the recipient shall provide eligible purchasers with an opportunity to participate in the financing or ownership of the biorefinery in accordance with this section. (2)
Farmers and rancher cooperatives
(A)
In general
If the recipient of a loan, loan guarantee, or grant made by a Federal agency under paragraph (1) is a farmer or rancher cooperative, the requirement described in paragraph (1) is fulfilled. (B)
Authority of farmer and rancher cooperative
A farmer or rancher cooperative described in subparagraph (A) may provide eligible purchasers with an opportunity to participate in the financing or ownership of the biorefinery in accordance with this section. (3)
Level of Federal support
Paragraph (1) shall apply to a biorefinery only if not less than 3 percent of the total amount of funds that is used to finance, refinance, or financially support the biorefinery is derived from Federal funds. (c)
Terms and conditions
To be eligible to receive a loan, loan guarantee, or grant from a Federal agency in connection with a biorefinery, the recipient— (1)during the 60-day period beginning on the date of receipt of the loan, loan guarantee, or grant by the recipient, shall permit eligible purchasers to participate in the financing or ownership of the biorefinery on the conditions that— (A)eligible purchasers, collectively, be allowed to invest not less than 40 percent of the projected total amount of non-Federal funds that will be used to construct or expand the biorefinery; and (B)an individual eligible purchaser be allowed to invest not more than 2.5 percent of the projected total amount of non-Federal funds that will be used to construct or expand the biorefinery; (2)shall provide to eligible purchasers competitive terms and conditions that are no less favorable than the terms and conditions that are offered for funding for similar recipients or classes of recipients or, if there are no similar recipients or classes of recipients, other entities with similar risk characteristics, as determined by the Secretary; (3)if the amount of funding offered by eligible purchasers for a biorefinery exceeds the amount that is solicited by a recipient, may— (A)accept all such offered amounts; or (B)award the amounts on a competitive basis; and (4)shall conduct the financing or refinancing of the biorefinery in accordance with Federal law (including Federal law governing securities).
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