---
kind: "section"
citation: "42 U.S.C. § 13239"
title: "42"
title_heading: "The Public Health and Welfare"
number: "13239"
heading: "Low interest loan program"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/13239"
units:
  - "Chapter 134 — Energy Policy"
  - "Subchapter II — Alternative Fuels—non-Federal Programs"
---

# §13239. Low interest loan program

- (a) **Establishment—** Within 1 year after October 24, 1992, the [Secretary](/usc/42/242q–4.md?p=2) shall establish a program for making low interest loans, giving preference to small businesses that own or operate [fleets](/usc/42/13211.md?p=9), for—
  - (1) the conversion of [motor vehicles](/usc/42/13211.md?p=13) to operation on [alternative fuels](/usc/42/13211.md?p=2);
  - (2) covering the incremental costs of the purchase of [motor vehicles](/usc/42/13211.md?p=13) which operate on [alternative fuels](/usc/42/13211.md?p=2), when compared with purchase costs of [comparable conventionally fueled motor vehicles](/usc/42/13211.md?p=4); or
  - (3) covering the incremental costs of purchase of non-road vehicles and engines designated by the [Secretary](/usc/42/242q–4.md?p=2) pursuant to [section 13238(c) of this title](/usc/42/13238.md?p=c).
- (b) **Loan terms—** The [Secretary](/usc/42/242q–4.md?p=2), to the extent practicable, shall establish reasonable terms for loans made under this subsection, with preference given to repayment schedules that enable such loans to be repaid by the borrower from the cost differential between gasoline and the [alternative fuel](/usc/42/13211.md?p=2) on which the [motor vehicle](/usc/42/13211.md?p=13) operates.
- (c) **Criteria—** In deciding to whom loans shall be made under this subsection, the [Secretary](/usc/42/242q–4.md?p=2) shall consider—
  - (1) the financial need of the applicant;
  - (2) the goal of assisting the greatest number of applicants; and
  - (3) the ability of an applicant to repay the loan, taking into account the fuel cost savings likely to accrue to the applicant.
- (d) **Priorities—** Priority shall be given under this section to [fleets](/usc/42/13211.md?p=9) where the use of [alternative fuels](/usc/42/13211.md?p=2) would have a significant beneficial effect on energy security and the environment.
- (e) **Authorization of appropriations—** There are authorized to be appropriated to the [Secretary](/usc/42/242q–4.md?p=2) for carrying out this section, $25,000,000 for each of the fiscal years 1993, 1994, and 1995.

## Source credit

(Pub. L. 102–486, title IV, § 414, Oct. 24, 1992, 106 Stat. 2886.)