incentives to develop underground coal mines

incentives to develop underground coal mines Sec. 102. (a) The Administrator may, in accordance with subsection (b) and rules prescribed under subsection (d), guarantee loans made to eligible persons described in subsection (c) (1) for the purpose of developing new underground coal mines. (b) (1) A person may receive for a loan guarantee under subsection (a) only if the Administrator determines that— (A) such person is capable of successfully developing and operating the mine with respect to which the loan guarantee is sought; (B) such person has provided adequate assurance that the mine will be constructed and operated in compliance with the provisions of the Federal Coal Mine Health and Safety Act and that no final judgment holding such person liable for any fine or penalty under such Act is unsatisfied; (C) there is a reasonable prospect of repayment of the guaranteed loan; (D) such person has obtained a contract, of at least the duration of the period during which the loan is required to be repaid, for the sale or resale of coal to be produced from such mine to a person who the Administrator of the Environmental Protection Agency certifies will be able to burn such coal in compliance with all applicable requirements of the Clean Air Act, and of any applicable implementation plan (as defined in section 110 of such Act); (E) the loan will be adequately secured: (F) such person would be unable to obtain adequate financing without such guarantee; (G) the guaranteeing of a loan to such person will enhance competition or encourage new market entry; and (H) such person has adequate coal reserves to cover contractual commitments described in subparagraph (D). (2) The total amount of guarantees issued to any person (including all persons affiliated with such person) may not exceed $30,000,000. The amount of a guarantee issued with respect to any loan may not exceed 80 percent of the lesser of (A) the principal balance of the loan or, (B) the cost of developing such new underground coal mine. (3) The aggregate outstanding principal amount of loans which are guaranteed under this section may not at any time exceed $750,000,000. Not more than 20 percent of the amount of guarantees issued under this section in any fiscal year may be issued with respect to loans for the purpose of opening new underground coal mines which produce coal which is not low sulfur coal. (c) For purposes of this section— (1) A person shall be considered eligible for a guarantee under this section if such person (together with all persons affiliated with such person) — (A) did not produce more than 1,000,000 tons of coal in the calendar year preceding the year in which he makes application for a loan guarantee under this section; (B) did not produce more than 300,000 barrels of crude oil or own an oil refinery in such preceding calendar year; and (C) did not have gross revenues in excess of $50,000,000 in such calendar year. (2) A person is affiliated with another person if he controls, is controlled by, or is under common control with such other person, as such term may be further defined by rule by the Administrator. 89 STAT. 877 (3) The term “low sulfur coal” means coal which, in a quantity necessary to produce one million British thermal units, does not contain sulfur or sulfur compounds the elemental sulfur content of which exceeds 0.6 pound. Sulfur content shall be determined after the application of any coal preparation process which takes place before sale of the coal by the producer. (d) The Administrator shall prescribe such regulations as may be necessary or appropriate to carry out this section. Such rules shall require that each application for a guarantee under this section shall be made in writing to the Administrator in such form and with such content and other submissions as the Administrator shall require, in order reasonably to protect the interests of the United States. Each guarantee shall be issued in accordance with subsections (a) through (c), and— (1) under such terms and conditions as the Administrator, in consultation with the Secretary of the Treasury, considers appropriate; (2) with such provisions with respect to the date of issue of such guarantee as the Administrator, with the concurrence of the Secretary of the Treasury, considers appropriate, except that the required concurrence of the Secretary of the Treasure may not, without the consent of the Administrator, result in a delay in the issuance of such guarantee for more than 60 days; and (3) in such form as the Administrator considers appropriate. (e) Each person who receives a loan guarantee under this section shall keep such records as the Administrator or the Secretary of the Treasury shall require, including records which fully disclose the total cost of the project for which a loan is guaranteed under this section and such other records as the Administrator or the Secretary of the Treasury determines necessary to facilitate an effective audit and performance evaluation. The Administrator, the Secretary of the Treasury, and the Comptroller General of the United States, or any of their duly authorized representatives, shall have access for the purpose of audit and examination to any pertinent books, documents, papers, and records of any person who receives a loan guarantee under this section.