I
110th CONGRESS
1st Session
H. R. 2389
IN THE HOUSE OF REPRESENTATIVES
May 17, 2007
Mr. Shuler (for himself and Ms. Velázquez) introduced the following bill; which was referred to the Committee on Small Business
A BILL
To help small businesses to develop, invest in, and purchase energy efficient buildings, fixtures, equipment, and technology.
Short title; table of contents
Short title
This Act may be cited
as the Small Energy Efficient
Businesses Act
.
Table of contents
The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Larger 504 loan limits to help business develop energy efficient technologies and purchases.
Sec. 4. Reduced 7(
a) fees and higher loan guarantees for purchase of energy efficient technologies.Sec. 5. Small Business Sustainability Initiative.
Sec. 6. Small Business Administration to educate and promote energy efficiency ideas to small businesses and work with the small business community to make such information widely available.
Sec. 7. Energy saving debentures.
Sec. 8. Investments in energy saving small businesses.
Sec. 9. Renewable fuel capital investment company.
Sec. 10. Study and report.
Findings
Congress finds the following:
Energy efficiency is in our national interest for our long term economic well being, for the health and safety of our citizens and the world, and for our independence and security.
Small businesses are more efficient, nimble, and innovative than large businesses and therefore more likely to integrate and benefit from energy efficient technology advances and upgrades, but they are less likely to have the capital to institute these advances quickly.
The majority of businesses (two-thirds) say they have been unable to invest in comprehensive energy efficiency programs for their businesses thus far, though they know of them and believe they are effective.
A pilot program has demonstrated that individualized counseling and training combined with loan and grant availability and other incentives are very popular and effective in helping small businesses learn about and adopt energy conservation methods.
The energy saving benefit of such programs, if they can be implemented on a national basis, would contribute significantly to our energy independence and security.
New and emerging technologies are on the rise, and small businesses are leading the way, for example the vast majority of renewable fuels producers, such as biodiesel and ethanol, are small businesses.
Small businesses currently use almost half of the Nation’s business related energy consumption and employ half of the Nation’s workforce, yet the Energy Star program, the lead Federal energy efficiency program allocates less than 2 percent of its resources to its small business program and should allocate more to educate small businesses.
Therefore, it is in the national interest for the Federal Government to invest in incentives in the form of improved loan terms, additional investment inducements, and expert counseling and information to assist small businesses to develop, invest in, and purchase energy efficient buildings, equipment, fixtures, and other technology.
Larger 504 loan limits to help business develop energy efficient technologies and purchases
Eligibility for energy efficiency projects
Section 501(d)(3) of the Small Business Investment Act of 1958 (15 U.S.C. 695(d)(3)) is amended—
in subparagraph
(G) by striking or
at the end;
in subparagraph (H) by striking the period at the end and inserting a comma; and
by inserting after subparagraph (H) the following:
reduction of energy consumption by at least 10 percent,
increased use of sustainable design or low-impact design to produce buildings that reduce the use of non-renewable resources, minimize environmental impact, and relate people with the natural environment, or
plant, equipment and process upgrades of renewable energy sources such as micropower or renewable fuels producers including biodiesel and ethanol producers.
.
Loans for plant projects used for energy-efficient purposes
Section 502(2)(A) of the Small Business Investment Act of 1958 (15 U.S.C. 696(2)(A)) is amended—
in clause (ii) by
striking and
at the end;
in clause (iii) by striking the period at the end and inserting a semicolon; and
by adding at the end the following new clauses:
$4,000,000 for each project that reduces the borrower's energy consumption by at least 10 percent; and
$4,000,000 for each project that generates renewable energy or renewable fuels, such as biodiesel or ethanol production.
.
Reduced 7(a) fees and higher loan guarantees for purchase of energy efficient technologies
Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended by adding at the end the following:
Loans for energy efficient technologies
The Administrator shall carry out a program for loans the proceeds of which are used to purchase energy efficient equipment or fixtures or to reduce the energy consumption of the borrower, including, but not limited to, renewable fuels and energy products such as biodiesel and ethanol, by 10 percent or more. For a loan made under this paragraph, the following shall apply:
The loan shall include the participation by the Administration equal to 90 percent of the balance of the financing outstanding at the time of disbursement.
The fees on the loan under paragraphs (18) and (23) shall be reduced by half.
.
Small Business Sustainability Initiative
Section 21 of the Small Business Act (15 U.S.C. 648) is amended by adding at the end the following:
Small Business Sustainability Initiative
In general
A Small Business Development Center may apply for an additional grant to carry out a small business sustainability initiative program.
Elements of program
Under a program under paragraph (1), the Center shall—
provide necessary support to smaller and medium-sized businesses to—
evaluate energy efficiency and green building opportunities;
evaluate renewable energy sources such as the use of solar and small wind to supplement power consumption;
secure financing to achieve energy efficiency or to construct green buildings; and
empower management to implement energy efficiency projects;
assist entrepreneurs with clean technology development and technology commercialization through—
technology assessment;
intellectual property;
Small Business Innovation Research submissions;
strategic alliances;
business model development; and
preparation for investors; and
help small business improve environmental performance by shifting to less hazardous materials and reducing waste and emissions at the source, including by providing assistance for businesses to adapt the materials they use, the processes they operate, and the products and services they produce.
Minimum amount
Each grant under this subsection shall be for at least $150,000.
Maximum amount
A grant under this subsection may not exceed $300,000.
Authorization of appropriations
Subject to amounts approved in advance in appropriations Acts and separate from amounts approved to carry out section 21(a)(1), the Administrator may make grants or enter into cooperative agreements to carry out the provisions of this subsection.
.
Small Business Administration to educate and promote energy efficiency ideas to small businesses and work with the small business community to make such information widely available
The Small Business Act is amended—
by redesignating section 37 as section 99; and
by inserting after section 36 (15 U.S.C. 657f) the following:
Program to provide education on energy efficiency
Program required
The Administrator shall develop and coordinate a Government-wide program, building on the Energy Star for Small Business program, to assist small businesses in—
becoming more energy efficient;
understanding the cost savings from improved energy efficiency; and
identifying financing options for energy efficiency upgrades.
Consultation and cooperation
The program required by subsection (a) shall be developed and coordinated—
in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency; and
in cooperation with any entities the Administrator considers appropriate, such as industry trade associations, industry members, and energy efficiency organizations.
Availability of information
The Administrator shall make available the information and materials developed under the program required by subsection (a) to—
small businesses; and
other Federal programs for energy efficiency, such as the Energy Star for Small Business program.
Strategy and report
Strategy required
The Administrator shall develop a strategy to educate, encourage, and assist small business to adopt energy efficient building fixtures and equipment.
Report
Not later than December 31, 2008, the Administrator shall submit to Congress a report containing a plan to implement the strategy.
.
Energy saving debentures
Section 303 of the Small Business Investment Act of 1958 (15 U.S.C. 683) is amended by adding at the end the following new subsection:
Energy saving debentures
In general
In addition to any other authority under this Act, a small business investment company licensed after September 30, 2007, shall have authority to issue Energy Saving debentures.
Energy saving debenture defined
As used in this Act, the term Energy
Saving debenture
means a deferred interest debenture that—
is issued at a discount;
has a five-year maturity or a ten-year maturity;
requires no interest payment or annual charge for the first five years;
is restricted to Energy Saving qualified investments; and
is issued at no cost (as defined in section 502 of the Credit Reform Act of 1990) with respect to purchasing and guaranteeing the debenture.
Energy saving qualified investment defined
As used in this Act, the term
Energy Saving qualified investment
means investment in a small
business that is primarily engaged in researching, manufacturing, developing,
or providing products, goods, or services that reduce the use or consumption of
non-renewable energy
resources.
.
Investments in energy saving small businesses
Maximum leverage
Paragraph (2) of subsection (b) of section 303 of the Small Business Investment Act of 1958 (15 U.S.C. 303(b)(2)) is amended by adding at the end the following new subparagraph:
Investments in energy saving small businesses
In calculating the outstanding leverage of a company for purposes of subparagraph (A), the Administrator shall not include the amount of the cost basis of any Energy Saving qualified investment (as defined in subsection (k)) made after September 30, 2007, by a company licensed after September 30, 2007, in a smaller enterprise, to the extent that the total of such amounts does not exceed 50 percent of the company’s private capital, subject to such terms as the Administrator may impose to assure no cost (as defined in section 502 of the Federal Credit Reform Act of 1990) with respect to purchasing or guaranteeing any debenture involved.
.
Maximum aggregate amount of leverage
Paragraph (4) of subsection (b) of section 303 of the Small Business Investment Act of 1958 (15 U.S.C. 303(b)(4)) is amended by adding at the end the following new subparagraph:
Investments in energy saving small businesses
In calculating the aggregate outstanding leverage of a company for purposes of subparagraph (A), the Administrator shall not include the amount of the cost basis of any Energy Saving qualified investment (as defined in subsection (k)) made after September 30, 2007, by a company licensed after September 30, 2007, in a smaller enterprise, to the extent that the total of such amounts does not exceed 50 percent of the company’s private capital, subject to such terms as the Administrator may impose to assure no cost (as defined in section 502 of the Federal Credit Reform Act of 1990) with respect to purchasing or guaranteeing any debenture involved.
.
Renewable fuel capital investment company
Title III of the Small Business Investment Act of 1958 (15 U.S.C. 681 et seq.) is amended by adding at the end the following new part:
Renewable Fuel Capital Investment Pilot Program
Definitions
In this part, the following definitions apply:
Venture capital
The term venture capital means capital in the form of equity capital investments. For the purposes of this paragraph, the term equity capital has the same meaning given such term in section 303(g)(4).
Renewable fuel capital investment company
The term Renewable Fuel Capital Investment Company means a company that—
has been granted final approval by the Administrator under section 384(e); and
has entered into a participation agreement with the Administrator.
Operational assistance
The term operational assistance
means
management, marketing, and other technical assistance that assists a small
business concern with business development.
Participation agreement
The term participation agreement means an agreement, between the Administrator and a company granted final approval under section 384(e), that—
details the company’s operating plan and investment criteria; and
requires the company to make investments in smaller enterprises primarily engaged in researching, manufacturing, developing, or bringing to market renewable energy sources.
Renewable energy
The term renewable energy means
energy
derived from resources that are regenerative or that cannot be depleted,
including but not limited to ethanol and biodiesel fuels.
State
The term State means such of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and any other commonwealth, territory, or possession of the United States.
Purposes
The purposes of the Renewable Fuel Capital Investment Program established under this part are—
to promote the research, development, manufacture and bringing to market of renewable energy sources by encouraging venture capital investments in smaller enterprises primarily engaged such activities; and
to establish a venture capital program, with the mission of addressing the unmet equity investment needs of small enterprises engaged in researching, developing, manufacturing, and bringing to market renewable energy sources, to be administered by the Administrator—
to enter into participation agreements with Renewable Fuel Capital Investment companies;
to guarantee debentures of Renewable Fuel Capital Investment companies to enable each such company to make venture capital investments in smaller enterprises engaged in the research, development, manufacture, and bringing to market renewable energy sources; and
to make grants to Renewable Fuel Investment Capital companies, and to other entities, for the purpose of providing operational assistance to smaller enterprises financed, or expected to be financed, by such companies.
Establishment
In accordance with this part, the Administrator shall establish a Renewable Fuel Capital Investment Program, under which the Administrator may—
enter into participation agreements with companies granted final approval under section 384(e) for the purposes set forth in section 382; and
guarantee the debentures issued by Renewable Fuel Capital Investment companies as provided in section 385.
Selection of renewable fuel capital investment companies
Eligibility
A company shall be eligible to apply to participate, as a Renewable Fuel Capital Investment company, in the program established under this part if—
the company is a newly formed for-profit entity or a newly formed for-profit subsidiary of an existing entity;
the company has a management team with experience in alternative energy financing or relevant venture capital financing; and
the company has a primary objective of investment in companies that research, manufacture, develop, or bring to market renewable energy sources.
Application
To participate, as a Renewable Fuel Capital Investment company, in the program established under this part a company meeting the eligibility requirements set forth in subsection (a) shall submit an application to the Administrator that includes—
a business plan describing how the company intends to make successful venture capital investments in smaller businesses primarily engaged in the research, manufacture, development, or bringing to market of renewable energy sources;
information regarding the relevant venture capital qualifications and general reputation of the company’s management;
a description of how the company intends to seek to address the unmet capital needs of the smaller businesses served;
a proposal describing how the company intends to use the grant funds provided under this part to provide operational assistance to smaller enterprises financed by the company, including information regarding whether the company intends to use licensed professionals when necessary on the company’s staff or from an outside entity;
with respect to binding commitments to be made to the company under this part, an estimate of the ratio of cash to in-kind contributions;
a description of the criteria to be used to evaluate whether and to what extent the company meets the objectives of the program established under this part;
information regarding the management and financial strength of any parent firm, affiliated firm, or any other firm essential to the success of the company’s business plan; and
such other information as the Administrator may require.
Conditional Approval
In general
From among companies submitting applications under subsection (b), the Administrator shall, in accordance with this subsection, conditionally approve companies to participate in the Renewable Fuel Capital Investment Program.
Selection criteria
In selecting companies under paragraph (1), the Administrator shall consider the following:
The likelihood that the company will meet the goal of its business plan.
The experience and background of the company’s management team.
The need for venture capital investments in the geographic areas in which the company intends to invest.
The extent to which the company will concentrate its activities on serving the geographic areas in which it intends to invest.
The likelihood that the company will be able to satisfy the conditions under subsection (d).
The extent to which the activities proposed by the company will expand economic opportunities in the geographic areas in which the company intends to invest.
The strength of the company’s proposal to provide operational assistance under this part as the proposal relates to the ability of the applicant to meet applicable cash requirements and properly utilize in-kind contributions, including the use of resources for the services of licensed professionals, when necessary, whether provided by persons on the company’s staff or by persons outside of the company.
Any other factors deemed appropriate by the Administrator.
Nationwide distribution
The Administrator shall select companies under paragraph (1) in such a way that promotes investment nationwide.
Requirements To Be Met for Final Approval
The Administrator shall grant each conditionally approved company a period of time, not to exceed 2 years, to satisfy the following requirements:
Capital requirement
Each conditionally approved company shall raise not less than $5,000,000 of private capital or binding capital commitments from one or more investors (other than agencies or departments of the Federal Government) who met criteria established by the Administrator.
Nonadministration resources for operational assistance
In general
In order to provide operational assistance to smaller enterprises expected to be financed by the company, each conditionally approved company—
shall have binding commitments (for contribution in cash or in kind)—
from any sources other than the Small Business Administration that meet criteria established by the Administrator;
payable or available over a multiyear period acceptable to the Administrator (not to exceed 10 years); and
in an amount not less than 30 percent of the total amount of capital and commitments raised under paragraph (1);
shall have purchased an annuity—
from an insurance company acceptable to the Administrator;
using funds (other than the funds raised under paragraph (1)), from any source other than the Administrator; and
that yields cash payments over a multiyear period acceptable to the Administrator (not to exceed 10 years) in an amount not less than 30 percent of the total amount of capital and commitments raised under paragraph (1); or
shall have binding commitments (for contributions in cash or in kind) of the type described in clause (i) and shall have purchased an annuity of the type described in clause (ii), which in the aggregate make available, over a multiyear period acceptable to the Administrator (not to exceed 10 years), an amount not less than 30 percent of the total amount of capital and commitments raised under paragraph (1).
Exception
The Administrator may, in the discretion of the Administrator and based upon a showing of special circumstances and good cause, consider an applicant to have satisfied the requirements of subparagraph (A) if the applicant has—
a viable plan that reasonably projects the capacity of the applicant to raise the amount (in cash or in-kind) required under subparagraph (A); and
binding commitments in an amount equal to not less than 20 percent of the total amount required under paragraph (A).
Limitation
In order to comply with the requirements of subparagraphs (A) and (B), the total amount of a company’s in-kind contributions may not exceed 50 percent of the company’s total contributions.
Final Approval; Designation
The Administrator shall, with respect to each applicant conditionally approved to operate as a Renewable Fuel Capital Investment Company under subsection (c), either—
grant final approval to the applicant to operate as a Renewable Fuel Capital Investment company under this part and designate the applicant as such a company, if the applicant—
satisfies the requirements of subsection (d) on or before the expiration of the time period described in that subsection; and
enters into a participation agreement with the Administrator; or
if the applicant fails to satisfy the requirements of subsection (d) on or before the expiration of the time period described in that subsection, revoke the conditional approval granted under that subsection.
Debentures
In General
The Administrator may guarantee the timely payment of principal and interest, as scheduled, on debentures issued by any Renewable Fuel Capital Investment company.
Terms and Conditions
The Administrator may make guarantees under this section on such terms and conditions as it deems appropriate, except that the term of any debenture guaranteed under this section shall not exceed 15 years.
Full Faith and Credit of the United States
The full faith and credit of the United States is pledged to pay all amounts that may be required to be paid under any guarantee under this part.
Maximum Guarantee
In general
Under this section, the Administrator may guarantee the debentures issued by a Renewable Fuel Capital Investment company only to the extent that the total face amount of outstanding guaranteed debentures of such company does not exceed 150 percent of the private capital of the company, as determined by the Administrator.
Treatment of certain federal funds
For the purposes of paragraph (1), private capital shall include capital that is considered to be Federal funds, if such capital is contributed by an investor other than an agency or department of the Federal Government.
Issuance and guarantee of trust certificates
Issuance
The Administrator may issue trust certificates representing ownership of all or a fractional part of debentures issued by a Renewable Fuel Capital Investment company and guaranteed by the Administrator under this part, if such certificates are based on and backed by a trust or pool approved by the Administrator and composed solely of guaranteed debentures.
Guarantee
In general
The Administrator may, under such terms and conditions as it deems appropriate, guarantee the timely payment of the principal of and interest on trust certificates issued by the Administrator or its agents for purposes of this section.
Limitation
Each guarantee under this subsection shall be limited to the extent of principal and interest on the guaranteed debentures that compose the trust or pool.
Prepayment or default
In the event that a debenture in a trust or pool is prepaid, or in the event of default of such a debenture, the guarantee of timely payment of principal and interest on the trust certificates shall be reduced in proportion to the amount of principal and interest such prepaid debenture represents in the trust or pool. Interest on prepaid or defaulted debentures shall accrue and be guaranteed by the Administrator only through the date of payment of the guarantee. At any time during its term, a trust certificate may be called for redemption due to prepayment or default of all debentures.
Full Faith and Credit of the United States
The full faith and credit of the United States is pledged to pay all amounts that may be required to be paid under any guarantee of a trust certificate issued by the Administrator or its agents under this section.
Fees
The Administrator shall not collect a fee for any guarantee of a trust certificate under this section, but any agent of the Administrator may collect a fee approved by the Administrator for the functions described in subsection (f )(2).
Subrogation and Ownership Rights
Subrogation
In the event the Administrator pays a claim under a guarantee issued under this section, it shall be subrogated fully to the rights satisfied by such payment.
Ownership rights
No Federal, State, or local law shall preclude or limit the exercise by the Administrator of its ownership rights in the debentures residing in a trust or pool against which trust certificates are issued under this section.
Management and Administration
Registration
The Administrator may provide for a central registration of all trust certificates issued under this section.
Contracting of functions
In general
The Administrator may contract with an agent or agents to carry out on behalf of the Administrator the pooling and the central registration functions provided for in this section including, notwithstanding any other provision of law—
maintenance, on behalf of and under the direction of the Administrator, of such commercial bank accounts or investments in obligations of the United States as may be necessary to facilitate the creation of trusts or pools backed by debentures guaranteed under this part; and
the issuance of trust certificates to facilitate the creation of such trusts or pools.
Fidelity bond or insurance requirement
Any agent performing functions on behalf of the Administrator under this paragraph shall provide a fidelity bond or insurance in such amounts as the Administrator determines to be necessary to fully protect the interests of the United States.
Regulation of brokers and dealers
The Administrator may regulate brokers and dealers in trust certificates issued under this section.
Electronic registration
Nothing in this subsection may be construed to prohibit the use of a book-entry or other electronic form of registration for trust certificates issued under this section.
Fees
In general
Except as provided in section 386(d), the Administrator may charge such fees as it deems appropriate with respect to any guarantee or grant issued under this part, in an amount established annually by the Administration, as necessary to reduce to zero the cost (as defined in section 502 of the Federal Credit Reform Act of 1990) to the Administration of purchasing and guaranteeing debentures under this Act, which amounts shall be paid to and retained by the Administration.
Offset
The Administrator may, as provided by section 388, offset fees changed and collected under subsection (a).
Fee contribution
In general
To the extent that amounts are made available to the Administrator for the purpose of fee contributions, the administrator shall contribute to fees paid by the Renewable Fuel Capital Investment companies under section 387.
Annual adjustment
Each fee contribution under subsection (a) shall be effective for one fiscal year and shall be adjusted as necessary for each fiscal year thereafter to ensure that amounts under subsection (a) are fully used. The fee contribution for a fiscal year shall be based on the outstanding commitments made and the guarantees and grants that the Administrator projects will be made during that fiscal year, given the program level authorized by law for that fiscal year and any other factors that the Administrator deems appropriate.
Operational assistance grants
In General
Authority
In accordance with this section, the Administrator may make grants to Renewable Fuel Capital Investment companies and to other entities, as authorized by this part, to provide operational assistance to smaller enterprises financed, or expected to be financed, by such companies or other entities.
Terms
Grants made under this subsection shall be made over a multiyear period not to exceed 10 years, under such other terms as the Administrator may require.
Grants to specialized small business investment companies
Authority
In accordance with this section, the Administrator may make grants to specialized small business investment companies to provide operational assistance to smaller enterprises financed, or expected to be financed, by such companies after the effective date of the Small Energy Efficient Businesses Act.
Use of funds
The proceeds of a grant made under this paragraph may be used by the company receiving such grant only to provide operational assistance in connection with an equity investment (made with capital raised after the effective date of the Small Energy Efficient Businesses Act) in a business located in a low-income geographic area.
Submission of plans
A specialized small business investment company shall be eligible for a grant under this section only if the company submits to the Administrator, in such form and manner as the Administrator may require, a plan for use of the grant.
Grant amount
Renewable Fuel Capital Investment companies
The amount of a grant made under this subsection to a Renewable Fuel Capital Investment company shall be equal to the resources (in cash or in kind) raised by the company under section 354(d)(2).
Other entities
The amount of a grant made under this subsection to any entity other than a Renewable Fuel Capital Investment company shall be equal to the resources (in cash or in kind) raised by the entity in accordance with the requirements applicable to Renewable Fuel Capital Investment companies set forth in section 384(d)(2).
Pro rata reductions
If the amount made available to carry out this section is insufficient for the Administrator to provide grants in the amounts provided for in paragraph (4), the Administrator shall make pro rata reductions in the amounts otherwise payable to each company and entity under such paragraph.
Supplemental Grants
In general
The Administrator may make supplemental grants to Renewable Fuel Capital Investment companies and to other entities, as authorized by this part under such terms as the Administrator may require, to provide additional operational assistance to smaller enterprises financed, or expected to be financed, by the companies.
Matching requirement
The Administrator may require, as a condition of any supplemental grant made under this subsection, that the company or entity receiving the grant provide from resources (in a cash or in kind), other then those provided by the Administrator, a matching contribution equal to the amount of the supplemental grant.
Limitation
None of the assistance made available under this section may be used for any overhead or general and administrative expense of a Renewable Fuel Capital Investment company or a specialized small business investment company.
Bank participation
In General
Except as provided in subsection (b), any national bank, any member bank of the Federal Reserve System, and (to the extent permitted under applicable State law) any insured bank that is not a member of such system, may invest in any Renewable Fuel Capital Investment company, or in any entity established to invest solely in Renewable Fuel Capital Investment companies.
Limitation
No bank described in subsection (a) may make investments described in such subsection that are greater than 5 percent of the capital and surplus of the bank.
Federal financing bank
Section 318 shall not apply to any debenture issued by a Renewable Fuel Capital Investment company under this part.
Reporting requirement
Each Renewable Fuel Capital Investment company that participates in the program established under this part shall provide to the Administrator such information as the Administrator may require, including—
information related to the measurement criteria that the company proposed in its program application; and
in each case in which the company under this part makes an investment in, or a loan or a grant to, a business that is not primarily engaged in the research, development, manufacture, or bringing to market or renewable energy sources, a report on the nature, origin, and revenues of the business in which investments are made.
Examinations
In General
Each Renewable Fuel Capital Investment company that participates in the program established under this part shall be subject to examinations made at the direction of the Investment Division of the Small Business Administration in accordance with this section.
Assistance of Private Sector Entities
Examinations under this section may be conducted with the assistance of a private sector entity that has both the qualifications and the expertise necessary to conduct such examinations.
Costs
Assessment
In general
The Administrator may assess the cost of examinations under this section, including compensation of the examiners, against the company examined.
Payment
Any company against which the Administrator assesses costs under this paragraph shall pay such costs.
Deposit of Funds
Funds collected under this section shall be deposited in the account for salaries and expenses of the Small Business Administration.
Miscellaneous
To the extent such procedures are not inconsistent with the requirements of this part, the Administrator may take such action as set forth in sections 309, 311, 312, and 314 of this Act.
Removal or suspension of directors or officers
Using the procedures for removing or suspending a director or an officer of a licensee set forth in section 313 (to the extent such procedures are not inconsistent with the requirements of this part), the Administrator may remove or suspend any director or officer of any Renewable Fuel Capital Investment company.
Regulations
The Administrator may issue such regulations as it deems necessary to carry out the provisions of this part in accordance with its purposes.
Authorizations of appropriations
Grants
The Administrator is authorized to make $15,000,000 per fiscal year in operational assistance grants.
Funds Collected for Examinations
Funds deposited under section 393(c)(2) are authorized to be appropriated only for the costs of examinations under section 393 and for the costs of other oversight activities with respect to the program established under this part.
.
Study and report
The Administrator shall conduct a study of the Renewable Fuel Capital Investment Program under part C of title III of the Small Business Investment Act of 1958. Not later than 3 years after the date of the enactment of this Act, the Administrator shall complete the study and submit to the Congress a report of the results of the study.