42 U.S.C. § 8815 : US Code - Section 8815: Price guarantees

Search 42 U.S.C. § 8815 : US Code - Section 8815: Price guarantees

(a) Authority of Secretary concerned; minimum sales price
Subject to sections 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) Cost-plus arrangements as basis
(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) Maximum dollar amount of liability of United States
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) Renegotiation of sales price and maximum liability
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,
the sales price set forth in the price guarantee, and maximum
liability under such guarantee, may be renegotiated.