Collapse to view only § 4002. Alcohol processor grain reserve program

§ 4001. Trade suspension reservesNotwithstanding any other provision of law—
(a) Gasohol feedstock or food security reserves; establishment
(b) Announcement of intention to establish reserves; contents
(c) Acquisition of suitable agricultural commodities; payment of transportation and storage costs; disposition of acquired commodities
(1) To establish a gasohol feedstock reserve under this section, the Secretary of Agriculture may acquire agricultural commodities (the export of which is suspended or restricted as described in subsection (a) of this section) that are suitable for use in the production of alcohol for motor fuel through purchases from producers or in the market and by designation by the Secretary of stocks of the commodities held by the Commodity Credit Corporation, and to pay such storage, transportation, and related costs as may be necessary to permit maintenance of the commodities in the reserve for the purposes of this section and disposition of the commodities as provided in paragraph (2) of this subsection.
(2) The Secretary of Agriculture may dispose of stocks of agricultural commodities acquired under paragraph (1) of this subsection only through sale—
(A) for use in the production of alcohol for motor fuel, at not less than the fuel conversion price (as defined in section 4005 of this title) for the commodity involved: Provided, That, for wheat and feed grains, if the fuel conversion price for the commodity involved is less than the then current release price at which producers may repay producer storage loans on the commodity and redeem the commodity prior to the maturity dates of the loans, as determined under clause (5) of the third sentence of section 1445e(b) 1
1 See References in Text note below.
of this title, the Secretary may dispose of stocks of the commodity for such use only through sale at not less than the release price: Provided further, That such sales shall only be made to persons for use in the production of alcohol for motor fuel at facilities that, whenever supplies of the commodity are not readily available, can produce alcohol from other agricultural or forestry biomass feedstocks; or
(B) for any other use, when sales for use under clause (A) of this paragraph are impracticable, (i) if there is a producer storage program in effect for the commodity, at not less than 110 per centum of the then current level at which the Secretary may encourage repayment of producer storage loans on the commodity prior to the maturity dates of the loans, as determined under clause (5) of the third sentence of section 1445e(b) 1 of this title, or, (ii) if there is no producer storage program in effect for the commodity, at not less than the average market price producers received for the commodity at the time the trade suspension was imposed.
(d) Acquisition of agricultural commodities suitable for providing emergency food assistance
(1) To establish a food security reserve under this section, the Secretary of Agriculture may acquire agricultural commodities (the export of which is suspended or restricted as described in subsection (a) of this section) that are suitable for use in providing emergency food assistance and urgent humanitarian relief through purchases from producers or in the market and by designation by the Secretary of stocks of the commodities held by the Commodity Credit Corporation, and to pay such storage, transportation, and related costs as may be necessary to permit maintenance of the commodities in the reserve for the purposes of this section and disposition of the commodities as provided in paragraph (2) of this subsection.
(2)Applicability of certain provisions.—Subsections (c), (d), (e), and (f)(2) of section 1736f–1 of this title shall apply to commodities in any reserve established under paragraph (1), except that the references to “eligible commodities” in the subsections shall be deemed to be references to “agricultural commodities”.
(3) Any determination by the President or the Secretary of Agriculture under this section shall be final.
(e) Use of Commodity Credit Corporation funds, facilities, and authorities
(f) Safeguards for protection of free market
(g) Replenishment of reserves with replacement stocks prohibited
(h) Effective date
(Pub. L. 96–494, title II, § 208, Dec. 3, 1980, 94 Stat. 2573; Pub. L. 97–98, title X, § 1004, Dec. 22, 1981, 95 Stat. 1260; Pub. L. 104–127, title II, § 225(b), Apr. 4, 1996, 110 Stat. 962; Pub. L. 105–385, title II, § 212(b)(4), Nov. 13, 1998, 112 Stat. 3467.)
§ 4002. Alcohol processor grain reserve program
(a) Definitions
As used in this section—
(1) The term “Secretary” means the Secretary of Agriculture.
(2) The term “processor” means any person engaged within the United States in the business of manufacturing grain into alcohol for use as a fuel either by itself or in combination with some other product.
(3) The terms “agricultural grain” and “grain” mean any agricultural commodity (A) that is suitable for processing into alcohol for use as a fuel, and (B) with respect to which a price support operation is in effect.
(4) The term “producer storage program” means the producer storage program provided for under section 1445e 1
1 See References in Text note below.
of this title.
(5) The term “small scale biomass energy project” shall have the same meaning as defined in section 8802(19) of title 42.
(b) Loans on stored grain; processors eligible
(c) Terms and conditions of processor grain reserve program and producer storage program
(d) Amount of loan
(e) Replacement of removed grain
(f) Purposes for which grain to be used
(g) Terms and conditions of loan; security; non­recourse loans
(h) Payment for cost of storage; repayment of loans
In carrying out the processor grain reserve program under this section, the Secretary may—
(1) provide for the payment to processors of such amounts as the Secretary determines appropriate to cover the cost of storing grain held in the processor grain reserve, except that in no event may the rate of the payment paid under this clause for any period exceed the rate paid by the Secretary under the producer storage program for the same period; and
(2) prescribe conditions under which the Secretary may require processors to repay loans made under this section, plus accrued interest thereon, refund amounts paid to the processors for storage, and require the processors to pay such additional interest and other charges as may be required by regulation in the event any processor fails to abide by the terms and conditions of the loan or any regulation prescribed under this section.
(i) Announcement of terms and conditions of program
(j) Use of Commodity Credit Corporation facilities
(k) Authorization of appropriations; appropriation acts as determining amount and extent of loans; expiration of authority to make loans
(Pub. L. 96–494, title II, § 209, Dec. 3, 1980, 94 Stat. 2575.)
§ 4003. Study of potential for expansion of United States agricultural export markets; report to President and Congress
(a) The Secretary of Agriculture, in consultation with the United States Trade Representative and any other appropriate agency of the United States Government as determined by the Secretary, shall perform a study of the potential for expansion of United States agricultural export markets and the use of agricultural exports in obtaining natural resources or other commodities and products needed by the United States. The Secretary shall complete the study and submit to the President and Congress a report on the study before June 30, 1981.
(b) In performing the study, the Secretary shall determine for the next five years—
(1) world food, feed, and fiber needs;
(2) estimated United States and world food, feed, and fiber production capabilities;
(3) potential new or expanded foreign markets for United States agricultural products;
(4) the potential for the development of international agreements for the exchange of United States agricultural products for natural resources, including energy sources, or other commodities and products needed by the United States; and
(5) the steps that the United States must take to (A) increase agricultural export trade, and (B) obtain needed natural resources or other commodities and products in exchange for agricultural products, to the maximum extent feasible.
(Pub. L. 96–494, title II, § 210, Dec. 3, 1980, 94 Stat. 2576.)
§ 4004. Food bank special nutrition projects
(a) Distribution of agricultural commodities to community food banks for emergency distribution; availability of agricultural commodities; use of currently used distributorship systems; selection of food banks
(b) Application by food bank; recordkeeping and internal procedures
(1) No food bank may participate in the special nutrition projects conducted under this section unless an application therefor is submitted to and approved by the Secretary. Such application shall be submitted in such form and manner and shall contain such information as the Secretary shall prescribe.
(2) Each food bank participating in the special nutrition projects under this section shall establish a recordkeeping system and internal procedures to monitor the use of agricultural commodities and other foods provided under this section. The Secretary shall develop standards by which the feasibility and effectiveness of the projects shall be measured, and shall conduct an ongoing review of the effectiveness of the projects.
(c) Quantities and types of agricultural commodities; regulations for designation of eligible participants
(d) Report to Congress; contents; recommendations
(e) Sale of food prohibited; fines and penalties
(f) Paperwork minimization and encouragement of participation
(g) Authorization of appropriations
(Pub. L. 96–494, title II, § 211, Dec. 3, 1980, 94 Stat. 2577; Pub. L. 97–98, title XI, § 1114(b), Dec. 22, 1981, 95 Stat. 1269; Pub. L. 106–78, title VII, § 752(b)(4), Oct. 22, 1999, 113 Stat. 1169.)
§ 4004a. Applicability of supplemental nutrition assistance requirements

Section 2013(b) of this title shall not apply with respect to distribution of surplus commodities under section 4004 of this title.

(Pub. L. 97–98, title XI, § 1114(d), Dec. 22, 1981, 95 Stat. 1269; Pub. L. 110–234, title IV, § 4002(b)(1)(B), (2)(II), May 22, 2008, 122 Stat. 1096, 1098; Pub. L. 110–246, § 4(a), title IV, § 4002(b)(1)(B), (2)(II), June 18, 2008, 122 Stat. 1664, 1857, 1859.)
§ 4005. “Fuel conversion price” defined

As used in this chapter, the phrase “fuel conversion price” means the price for an agricultural commodity determined by the Secretary of Agriculture that will permit gasoline-alcohol mixtures using alcohol produced from the commodity to be competitive in price with unleaded gasoline priced at the point it leaves the refinery, adjusted for differences in octane rating, taking into consideration the energy value of the commodity and other appropriate values designed to represent, on a national average basis, the value of byproducts also recoverable from the commodity; the direct costs and capital recovery costs for a grain alcohol distillery capable of producing forty million gallons of alcohol and recovering byproducts annually; and Federal tax and other Federal incentives applicable to alcohol used for fuel.

(Pub. L. 96–494, title II, § 212, Dec. 3, 1980, 94 Stat. 2578.)