---
kind: "section"
citation: "42 U.S.C. § 8835"
title: "42"
title_heading: "The Public Health and Welfare"
number: "8835"
heading: "General requirements regarding financial assistance"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/8835"
units:
  - "Chapter 96 — Biomass Energy and Alcohol Fuels"
  - "Subchapter II — Municipal Waste Biomass Energy"
---

# §8835. General requirements regarding financial assistance

- (a) **Priorities, terms, availability, etc.**
  - (1) Priority for [financial assistance](/usc/42/8802.md?p=11-A) under the provisions of sections [8832](/usc/42/8832.md), [8833](/usc/42/8833.md), and [8834](/usc/42/8834.md) of this title and the most favorable financial terms available, shall be provided for any [municipal waste energy project](/usc/42/8802.md?p=15-A) that will—
    - (A) produce a liquid fuel from [municipal waste](/usc/42/8802.md?p=14-A); or
    - (B) will displace petroleum or natural gas as a fuel.
  - (2)
    - (A) With respect to [projects](/usc/42/13641.md?p=2) producing [biomass energy](/usc/42/8802.md?p=4) other than [biomass fuel](/usc/42/8802.md?p=3), [financial assistance](/usc/42/8802.md?p=11-A) under the provisions of sections [8832](/usc/42/8832.md), [8833](/usc/42/8833.md), and [8834](/usc/42/8834.md) of this title shall be available only if the [Secretary](/usc/42/242q–4.md?p=2) of Energy finds that the [project](/usc/42/13641.md?p=2) does not use petroleum or natural gas except for flame stabilization or start-up.
    - (B) With respect to [projects](/usc/42/13641.md?p=2) producing [biomass fuel](/usc/42/8802.md?p=3), [financial assistance](/usc/42/8802.md?p=11-A) under such provisions shall be available to such [project](/usc/42/13641.md?p=2) only if the [Secretary](/usc/42/242q–4.md?p=2) of Energy finds that the [Btu](/usc/42/8802.md?p=6) content of the [biomass fuel](/usc/42/8802.md?p=3) produced substantially exceeds the [Btu](/usc/42/8802.md?p=6) content of any petroleum or natural gas used in the [project](/usc/42/13641.md?p=2) to produce the [biomass fuel](/usc/42/8802.md?p=3).
  - (3) [Financial assistance](/usc/42/8802.md?p=11-A) may not be provided under section [8832](/usc/42/8832.md), [8833](/usc/42/8833.md), or [8834](/usc/42/8834.md) of this title unless the [Secretary](/usc/42/242q–4.md?p=2) of Energy finds that necessary [municipal waste](/usc/42/8802.md?p=14-A) feedstocks are available and it is reasonable to expect they will continue to be available for the expected economic life of the [project](/usc/42/13641.md?p=2).
  - (4) In providing [financial assistance](/usc/42/8802.md?p=11-A) under section [8832](/usc/42/8832.md), [8833](/usc/42/8833.md), or [8834](/usc/42/8834.md) of this title, the [Secretary](/usc/42/242q–4.md?p=2) of Energy shall give due consideration to promoting competition.
  - (5) In determining the amount of [financial assistance](/usc/42/8802.md?p=11-A) for any [municipal waste energy project](/usc/42/8802.md?p=15-A) which will yield byproducts in addition to [biomass energy](/usc/42/8802.md?p=4), the [Secretary](/usc/42/242q–4.md?p=2) shall consider the value of such byproducts and the costs attributable to their production.
  - (6) The [Secretary](/usc/42/242q–4.md?p=2) of Energy shall not provide [financial assistance](/usc/42/8802.md?p=11-A) under section [8832](/usc/42/8832.md), [8833](/usc/42/8833.md), or [8834](/usc/42/8834.md) of this title for any [municipal waste](/usc/42/8802.md?p=14-A) energy unless the [Secretary](/usc/42/242q–4.md?p=2) determines—
    - (A) the [project](/usc/42/13641.md?p=2) will be technically and economically viable;
    - (B) the [financial assistance](/usc/42/8802.md?p=11-A) provided encourages and supplements, but does not compete with nor supplant, any private capital investment which otherwise would be available to the proposed [municipal waste energy project](/usc/42/8802.md?p=15-A) on reasonable terms and conditions which would permit such [project](/usc/42/13641.md?p=2) to be undertaken;
    - (C) assurances are provided that the [project](/usc/42/13641.md?p=2) will not use, in any substantial quantities, waste paper which would otherwise be recycled for a use other than as a fuel and will not substantially compete with facilities in existence on the date of the [financial assistance](/usc/42/8802.md?p=11-A) which are engaged in the separation or recovery of reuseable materials from [municipal waste](/usc/42/8802.md?p=14-A); and
    - (D) that the amount of [financial assistance](/usc/42/8802.md?p=11-A) provided for the [project](/usc/42/13641.md?p=2) is not greater than is necessary to achieve the purposes of this chapter.
- (b) **Terms, conditions, maturity, etc.** [Financial assistance](/usc/42/8802.md?p=11-A) may not be provided under section [8832](/usc/42/8832.md), [8833](/usc/42/8833.md), or [8834](/usc/42/8834.md) of this title unless the [Secretary](/usc/42/242q–4.md?p=2) of Energy determines that—
  - (1) the terms, conditions, maturity, security and schedule and amounts of repayments with respect to such assistance are reasonable and meet such standards as the [Secretary](/usc/42/242q–4.md?p=2) determines are sufficient to protect the financial interests of the United States; and
  - (2) the [person](/usc/42/8802.md?p=17) receiving such [financial assistance](/usc/42/8802.md?p=11-A) will bear a reasonable degree of risk with respect to the [project](/usc/42/13641.md?p=2).
- (c) **Application requirements—**
  - (1) No [financial assistance](/usc/42/8802.md?p=11-A) may be provided to any [person](/usc/42/8802.md?p=17) under section [8832](/usc/42/8832.md), [8833](/usc/42/8833.md), or [8834](/usc/42/8834.md) of this title unless an application therefor—
    - (A) has been submitted to the [Secretary](/usc/42/242q–4.md?p=2) of Energy by such [person](/usc/42/8802.md?p=17) in such form and under such procedures as the [Secretary](/usc/42/242q–4.md?p=2) shall prescribe, consistent with the requirements of this subchapter, and
    - (B) has been approved by the [Secretary](/usc/42/242q–4.md?p=2) in accordance with such procedures.
  - (2) Each such application shall include information regarding the [construction](/usc/42/8802.md?p=9-A) costs of the [municipal waste energy project](/usc/42/8802.md?p=15-A) involved (if appropriate), and estimates of operating costs and income relating to that [project](/usc/42/13641.md?p=2) (including the sale of any byproducts from that [project](/usc/42/13641.md?p=2)). In addition, each applicant shall provide—
    - (A) access at reasonable times to such other information, and
    - (B) such assurances,

    as the [Secretary](/usc/42/242q–4.md?p=2) of Energy may require.

- (d) **Reports and recordkeeping—**
  - (1) Every [person](/usc/42/8802.md?p=17) receiving [financial assistance](/usc/42/8802.md?p=11-A) under section [8832](/usc/42/8832.md), [8833](/usc/42/8833.md), or [8834](/usc/42/8834.md) of this title shall, as a condition precedent thereto, consent to such examinations and reports thereon regarding the [municipal waste energy project](/usc/42/8802.md?p=15-A) involved as the [Secretary](/usc/42/242q–4.md?p=2) of Energy may require.
  - (2) With respect to each [municipal waste energy project](/usc/42/8802.md?p=15-A) for which [financial assistance](/usc/42/8802.md?p=11-A) is provided under section [8832](/usc/42/8832.md), [8833](/usc/42/8833.md), or [8834](/usc/42/8834.md) of this title, the [Secretary](/usc/42/242q–4.md?p=2) shall—
    - (A) require from the recipient of [financial assistance](/usc/42/8802.md?p=11-A) such reports and records relating to that [project](/usc/42/13641.md?p=2) as the [Secretary](/usc/42/242q–4.md?p=2) deems necessary;
    - (B) prescribe the manner in which such recipient shall keep such records; and
    - (C) have access to such records at reasonable times for the purpose of ensuring compliance with the terms and conditions upon which [financial assistance](/usc/42/8802.md?p=11-A) is provided.
- (e) **Deposit of amounts received—** All amounts received by the [Secretary](/usc/42/242q–4.md?p=2) of Energy as fees, interest, repayment of principal, and any other moneys received by the [Secretary](/usc/42/242q–4.md?p=2) from operations under section [8832](/usc/42/8832.md), [8833](/usc/42/8833.md), or [8834](/usc/42/8834.md) of this title shall be deposited in the general fund of[^1] Treasury of the United States as miscellaneous receipts.
- (f) **Contracts and instruments backed by full faith and credit of United States—** All contracts and instruments of the [Secretary](/usc/42/242q–4.md?p=2) of Energy to provide, or providing, for [financial assistance](/usc/42/8802.md?p=11-A) shall be general obligations of the United States backed by its full faith and credit.
- (g) **Contestability of contracts—** Subject to the conditions of any contract for [financial assistance](/usc/42/8802.md?p=11-A), such contract shall be incontestable in the hands of the holder, except as to fraud or material misrepresentation on the part of the holder.
- (h) **Eligibility of debt obligations for purchase, sale, or issuance to Federal Financing Bank or any Federal agency—** Notwithstanding the provisions of the Federal Financing Bank Act of 1973 ([12 U.S.C. 2281](/usc/12/2281.md) et seq.) or any other provision of law (except as may be specifically provided by reference to this subsection in any Act enacted after June 30, 1980), no debt obligation which is made or committed to be made, or which is guaranteed or committed to be guaranteed by the [Secretary](/usc/42/242q–4.md?p=2) of Energy under section [8832](/usc/42/8832.md), [8833](/usc/42/8833.md), or [8834](/usc/42/8834.md) of this title shall be eligible for purchase by, or commitment to purchase by, or sale or issuance to, the Federal Financing Bank or any [Federal agency](/usc/42/8802.md?p=10).

## Footnotes

[^1]: So in original. Probably should be “of the”.

## Source credit

(Pub. L. 96–294, title II, § 235, June 30, 1980, 94 Stat. 701.)

## Notes

### Editorial Notes

### References in Text

This chapter, referred to in subsec. (a)(6)(D), was in the original “this title”, meaning title II of Pub. L. 96–294, June 30, 1980, 94 Stat. 683, known as the Biomass Energy and Alcohol Fuels Act of 1980, which is classified principally to this chapter. For complete classification of title II to the Code, see Short Title note set out under section 8801 of this title and Tables.

The Federal Financing Bank Act of 1973, referred to in subsec. (h), is Pub. L. 93–224, Dec. 29, 1973, 87 Stat. 937, which is classified generally to chapter 24 (§ 2281 et seq.) of Title 12, Banks and Banking. For complete classification of this Act to the Code, see Short Title note set out under section 2281 of Title 12 and Tables.