§8816 — Title 42 The Public Health and Welfare | U.S. Code

Summary

The Secretary in charge can agree to buy some or all of the energy a biomass project makes, if the energy is the right type, amount, and quality for federal agencies and if the amount would not be more than those agencies are likely to need. The price in any buying agreement cannot be higher than the estimated market price on the delivery date, unless the Secretary decides a higher price is needed to make the project happen. The Secretary must get promises that the energy will meet the needed quality, arrive when ordered, and include any other reasonable guarantees. The energy can be taken only if there are plans to send it to and use it at one or more federal agencies, and those agencies must pay (from their budgets) the market price for whatever fuel or product the biomass replaces. The Secretary must consult the Secretary of Defense and the GSA Administrator. Every agreement must let the Secretary refuse delivery under specified terms and must state the maximum dollar liability of the United States. The Secretary may make a determination when both (1) a project would not otherwise be finished or continued and (2) finishing or continuing it is needed to meet the chapter’s goals.

Title 42, §8816

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 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.

(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 chapter.

(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 shall be charged (in accordance with otherwise applicable law), from sums appropriated to such Federal agency, for the prevailing market price as of the date of delivery, as determined by the Secretary of Energy, for the product which the biomass energy is replacing.

(e)The Secretary concerned shall consult with the Secretary of Defense and the Administrator of the General Services Administration in carrying out this section.

(f)Each purchase agreement, and commitment to enter into a purchase agreement, under this section shall provide that the Secretary concerned retains the right to refuse delivery of the biomass energy involved upon such terms and conditions as shall be specified in the purchase agreement.

(g)Each purchase agreement, or commitment to enter into a purchase agreement, which is made under this section shall specify the maximum dollar amount of liability of the United States under that agreement.

(h)If the Secretary concerned 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 subsecs. (b) and (h)(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.

§8816 Purchase agreements