§8815 — Title 42 The Public Health and Welfare | U.S. Code

Summary

The Secretary may promise or issue a guarantee that the price an owner or operator of a biomass energy project gets for all or part of its output will not fall below a sales price set on the day the guarantee is made. This power is used under sections 8812 and 8817. Guarantees may not be based on cost-plus schemes that lock in a profit, but approved cost-of-service pricing by law or a regulator is okay. Each guarantee must state the maximum dollar amount the United States could be liable for. The Secretary may decide, in the Secretary’s discretion, that a project would not be finished or kept going and that finishing it is needed to meet the chapter’s goals.

Title 42, §8815

The Public Health and Welfare — Source: USLM XML via OLRC

(a)Subject to section 8812 and 8817 of this title, 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 chapter,

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsec. (d)(2), 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.

§8815 Price guarantees