II 110th CONGRESS 1st Session S. 1837 IN THE SENATE OF THE UNITED STATES July 19, 2007 Mr. Coleman introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry A BILL To amend the Farm Security and Rural Investment Act of 2002 to authorize the Secretary of Agriculture to provide loans to eligible agricultural producers of eligible commodities that are used to produce bioenergy to ensure that the capacities of the commodity storage facilities of the agricultural producers are adequate for the storage requirements of the agricultural producers, and for other purposes.
1.
Feedstock security for agricultural producers of bioenergy
Title IX of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8101 et seq.) is amended by adding at the end the following:
9012.
Commodity storage capacity loans
(a)
Revision of regulations
Not later than 30 days after the date of enactment of this section, the Secretary shall revise part 1436 of title 7, Code of Federal Regulations (as in effect on the date of enactment of this section), in accordance with subsection (b). (b)
Commodity storage capacity loans
(1)
Definition of eligible commodity
In this subsection, the term eligible commodity has the meaning given the term in section 9010. (2)
Authority of Secretary
In carrying out subsection (a), the Secretary may provide loans to eligible agricultural producers to ensure that the capacities of the commodity storage facilities of the eligible agricultural producers are adequate for the storage requirements of the eligible agricultural producers. (3)
Application
To be eligible to receive a loan under paragraph (2), an eligible agricultural producer shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. (4)
Amount
(A)
In general
The amount of a loan that may be provided by the Secretary to an eligible agricultural producer under paragraph (2) shall be equal to the amount necessary for the eligible agricultural producer to construct, or make improvements to, 1 or more commodity storage facilities to meet the storage requirements of the eligible agricultural producer, as determined by the Secretary in accordance with subparagraph (B). (B)
Determination of storage requirements of eligible agricultural producers
(i)
In general
Except as provided in clause (ii), the storage requirements of an eligible agricultural producer shall be equal to the difference between— (I)the average annual total quantity of eligible commodities produced by the eligible agricultural producer during the preceding 3 crop years; and (II)the maximum quantity of eligible commodities that may be stored in the commodity storage facilities of the eligible agricultural producer as of the date of application for the loan. (ii)
New agricultural producers of eligible commodities
If an eligible agricultural producer has produced an eligible commodity for a period that is less than the 3-crop year period described in clause (i)(I), the Secretary shall determine the storage requirements of the eligible agricultural producer. (5)
Requirements of loan
In providing a loan to an eligible agricultural producer under paragraph (2), the Secretary shall require— (A)a lien only on each commodity storage facility constructed or improved by the eligible agricultural producer using funds provided under this subsection; and (B)the eligible agricultural producer to enter into an egress agreement with the Secretary with respect to each commodity storage facility constructed or improved by the eligible agricultural producer using funds provided under this subsection. (6)
Term
The term of a loan provided to an eligible agricultural producer under paragraph (2) shall be a term of not less than 20 years that is agreed to by the Secretary and the borrower.
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