National Alcohols and Alcohol Fuel and Farm Commodity Production Act of 1979

(Reported to House from the Committee on Agriculture with amendment, H. Rept. 96-515 (Part I))

National Alcohols and Alcohol Fuel and Farm Commodity Production Act of 1979 - Amends the Rural Development of 1972 to authorize the Secretary of Agriculture to make: (1) direct loans (not in excess of $1,000,000 each) to certain persons, including any public, private, or cooperative organization for 90 percent of the cost of constructing alcohols and alcohol fuel plants having an annual production capacity of less than 1,000,000 gallons of alcohols and alcohol fuel; (2) guarantee payments of 90 percent of the principal and interest on private loans for the construction of such plants; and (3) sales of agricultural commodities to such persons for the production of such alcohols and alcohol fuels.

Conditions the making of any direct or guaranteed loan upon the Secretary's satisfaction that the energy contained in the alcohols and alcohol fuel produced will exceed the energy contained in any petroleum, natural gas, or petroleum-based products consumed in their production. Requires the manufacturing process employed in such production to extract for utilization as human or animal food the protein content of any agricultural feedstock used in such production.

Specifies the general terms for such loans and guarantees, and requires approval or disapproval of any application within 90 days after submission. Limits the cumulative total of the principal of guaranteed loans to $600,000,000 for fiscal years 1980 and 1981. Reserves 25 percent of such total for loans for plants whose construction costs are less than $5,000,000 each. Limits the cumulative total of the principal of all loans guaranteed under laws administered by the Secretary, the Commodity Credit Corporation, and the Farmers Home Administration to $1,000,000,000 for the same period.

Limits the cumulative total of direct loans for the same period to $200,000,000.

Terminates the loan programs authorized by this Act as of September 30, 1981.

Authorizes the Secretary to enter into sales contracts with operators of such plants (for terms not to exceed five years) to supply them annual quantities of agricultural commodities from Commodity Credit Corporation stocks or from stocks purchased from domestic producers of such commodities.

Requires an annual report to Congress on the administration of the direct and guaranteed loan programs, the performance of sales contracts, the production capacity and needs of the alcohols and alcohol fuel industry in the United States, and legislative recommendations.

Amends the Agricultural Act of 1949, effective for the 1980 crop of feed grains, to condition participation in the price support program on agreement to sell to the Secretary after harvest not more than ten percent of the feed grains produced on a farm for the purpose of alcohols and alcohol fuel production.

Directs the Secretary to study and report to Congress on the uses and marketing of the byproducts resulting from the production of alcohol fuel, including, if appropriate, a market promotion program identifying the foreign markets for such byproducts for human consumption.

Amends the National Agricultural Research, Extension, and Teaching Policy Act of 1977 to direct the Secretary to provide educational programs for producers of agricultural commodities, forest products, wood waste residues, and other renewable resources to inform such producers of the feasibility of using such resources as energy resources. Requires the Secretary to provide such producers with technical assistance to improve their ability to use such producers efficiently as energy resources. Requires the State director of cooperative extension in each State to develop a single recommended, comprehensive and coordinated plan which includes every renewable energy resource educational and technical assistance program. Authorizes appropriations for such programs for fiscal years 1980 and 1981.

Reserves at least 25 percent of the funds appropriated in any fiscal year for the production of alcohols from agricultural commodities for grants for research identifying and developing such commodities. Reserves at least another 25 percent of such funds for grants for research relating to the development of technologies for increasing the energy-efficiency and commercial feasibility of alcohol production. Requires that funds also be made available for grants for research into the development of the most economical and commercially feasible means of collecting and transporting waste residues and byproducts for use as feedstocks.

Increases from $24,000,000 to $55,000,000 the ceiling on total appropriations for the period including fiscal years 1979, 1980, and 1981.

Directs the Secretary to establish ten alcohol fuel production model demonstration facilities to demonstrate the most recent technologies available for producing alcohol fuel on farms. Authorizes appropriations for such demonstration facilities for fiscal years 1980 and 1981.

Directs the Secretary to publish, within six months after enactment of this Act, regulations that: (1) give preference, in bulk gasoline and other motor vehicle fuel sales, to suppliers or bidders who offer gasohol in lieu of ordinary gasoline; and (2) set forth the procedures for drawing up, submitting, and receiving such bids, and for awarding contracts. Prohibits the costs of any such gasohol from exceeding 115 percent of the cost by volume of ordinary gasoline. Requires annual reports to Congress evaluating such gasohol usage program.