Page:United States Statutes at Large Volume 94 Part 1.djvu/742

 94 STAT. 692

PUBLIC LAW 96-294—JUNE 30, 1980 PRICE GUARANTEES

42 USC 8815.

SEC. 215. (a) Subject to sections 212 and 217, the Secretary concerned may commit to guarantee, and guarantee, that the price that the owner or operator of any biomass energy project will receive for all or part of the production from that project shall not be less than a specified sales price determined as of the date of execution of the price guarantee or commitment to guarantee. (b)(1) No price guarantee under this section may be based upon a cost-plus arrangement, or variant thereof, which guarantees a profit to the owner or operator involved. (2) The use of a cost-of-service pricing mechanism by a person pursuant to law, or by a regulatory body establishing rates for a regulated person, shall not be deemed to be a cost-plus arrangement, or variant thereof, for purposes of paragraph (1). (c) Each price guarantee, or commitment to guarantee, which is made under this section shall specify the maximum dollar amount of liability of the United States under that guarantee. (d) If the Secretary determines, in the discretion of the Secretary, that— (1) a biomass energy project would not otherwise be satisfactorily completed or continued, and (2) completion or continuation of such project would be necessary to achieve the purposes of this title, the sales price set forth in the price guarantee, and maximum liability under such guarantee, may be renegotiated. PURCHASE AGREEMENTS

Conditions. 42 USC 8816.

Requirements.

SEC. 216. (a) Subject to sections 212 and 217, the Secretary concerned may commit to make, and make, purchase agreements for all or part of the biomass energy production of any biomass energy project, if the Secretary determines— (1) that such biomass energy is of a type, quantity, and quality that can be used by Federal agencies; and (2) that the quantity of such biomass energy, if delivery is accepted, would not exceed the likely needs of Federal agencies. Each Secretary concerned shall consult with the other Secretary before making any determination under paragraph (2). (b) The sales price specified in a purchase agreement under this section may not exceed the estimated prevailing market price as of the date of delivery, as determined by the Secretary of Energy, unless the Secretary concerned determines that such sales price must exceed the estimated prevailing market price in order to ensure the production of biomass energy to achieve the purposes of this title. (c) The Secretary concerned in entering into, or committing to enter into, a purchase agreement under this section shall require— (1) assurances that the quality of the biomass energy purchased will meet standards for the use for which such energy is purchased; (2) assurances that the ordered quantities of such energy will be delivered on a timely basis; and (3) such other assurances as may reasonably be required, (d) The Secretary concerned may take delivery of biomass energy pursuant to a purchase agreement under this section if appropriate arrangements have been made for its distribution to and use by one or more Federal agencies. Any Federal agency receiving such energy

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