42 U.S.C. § 8816 : US Code - Section 8816: Purchase agreements

Search 42 U.S.C. § 8816 : US Code - Section 8816: Purchase agreements

(a) Authority of Secretary concerned; consultative requirements
Subject to sections 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.
Each Secretary concerned shall consult with the other Secretary
before making any determination under paragraph (2).
(b) Maximum sales price
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) Assurances required
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) Arrangements for delivery pursuant to agreement; charge to
Federal agency receiving delivery
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) Consultative requirements
The Secretary concerned shall consult with the Secretary of
Defense and the Administrator of the General Services
Administration in carrying out this section.
(f) Terms and conditions
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) Maximum dollar amount of liability of United States
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) Renegotiation of sales price and maximum liability
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,
the sales price set forth in the purchase agreement, and maximum
liability under such agreement, may be renegotiated.