42 U.S.C. § 8817 — General requirements regarding financial

Page 7655 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 8817 the sales price set forth in the price guarantee, and maximum liability under such guarantee, may be renegotiated. (Pub. L. 96–294, title II, § 215, June 30, 1980, 94 Stat. 692.) 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 prin- cipally 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 (a) Authority of Secretary concerned; consult- ative 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 Fed- eral 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 determina- tion under paragraph (2). (b) Maximum sales price The sales price specified in a purchase agree- ment under this section may not exceed the es- timated prevailing market price as of the date of delivery, as determined by the Secretary of Energy, unless the Secretary concerned deter- mines that such sales price must exceed the es- timated prevailing market price in order to en- sure 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 bio- mass 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 agree- ment; charge to Federal agency receiving de- livery The Secretary concerned may take delivery of biomass energy pursuant to a purchase agree- ment under this section if appropriate arrange- ments have been made for its distribution to and use by one or more Federal agencies. Any Fed- eral agency receiving such energy shall be charged (in accordance with otherwise applica- ble law), from sums appropriated to such Fed- eral 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 car- rying out this section. (f) Terms and conditions Each purchase agreement, and commitment to enter into a purchase agreement, under this sec- tion shall provide that the Secretary concerned retains the right to refuse delivery of the bio- mass energy involved upon such terms and con- ditions 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 li- ability If the Secretary concerned determines, in the discretion of the Secretary, that— (1) a biomass energy project would not oth- erwise be satisfactorily completed or contin- ued, and (2) completion or continuation of such project would be necessary to achieve the pur- poses of this chapter, the sales price set forth in the purchase agree- ment, and maximum liability under such agree- ment, may be renegotiated. (Pub. L. 96–294, title II, § 216, June 30, 1980, 94 Stat. 692.) 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 Bio- mass 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. § 8817. General requirements regarding financial assistance (a) Priorities, terms, availability, etc. (1) Priority for financial assistance under this subchapter, and the most favorable financial terms available, shall be provided to a person for any biomass energy project that— (A) uses a primary fuel other than petroleum or natural gas in the production of biomass fuel, such as geothermal energy resources, solar energy resources, or waste heat; or (B) applies new technologies which expand the possible feedstocks, produces new forms of biomass energy, or produces biomass fuel using improved or new technologies. Nothing in this paragraph shall be construed to exclude financial assistance for any project Page 7656 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 8817 which does not use such a fuel or apply such a technology. (2)(A) Financial assistance under this sub- chapter shall be available for a biomass energy project only if the Secretary concerned finds that the Btu content of the motor fuels to be used in the facility involved to produce the bio- mass fuel will not exceed the Btu content of the biomass fuel produced in the facility. (B) In making the determination under sub- paragraph (A), the Secretary concerned shall take into account any displacement of motor fuel or other petroleum products which the ap- plicant has demonstrated to the satisfaction of the Secretary would result from the use of the biomass fuel produced in the facility involved. (3) No financial assistance may be provided under this subchapter to any person for any bio- mass energy project if the Secretary concerned finds that the process to be used by the project will not extract the protein content of the feed- stock for utilization as food or feed for readily available markets in any case in which to do so would be technically and economically prac- ticable. (4) Financial assistance may not be provided under this subchapter to any person unless the Secretary concerned— (A) finds that necessary feedstocks are avail- able and it is reasonable to expect they will continue to be available in the future, and, for biomass energy projects using wood or wood wastes or residues from the National Forest System, there shall be taken into account cur- rent levels of use by then existing facilities; (B) has obtained assurance that the person receiving such financial assistance will bear a reasonable degree of risk in the construction and operation of the project; and (C) has determined that the amount of finan- cial assistance provided for the project is not greater than is necessary to achieve the pur- poses of this chapter. (5) In providing financial assistance under this subchapter, the Secretary concerned shall give due consideration to promoting competition. (6) In determining the amount of financial as- sistance for any biomass energy project which will yield byproducts in addition to biomass en- ergy, the Secretary shall consider the potential value of such byproducts and the costs attrib- utable to their production. (b) Terms, conditions, maturity, etc., for insured loans, and loan guarantees An insured loan may not be made, and a loan guarantee may not be issued, under this sub- chapter unless the Secretary concerned deter- mines that the terms, conditions, maturity, se- curity, and schedule and amounts of repayments with respect to such loan are reasonable and meet such standards as the Secretary deter- mines are sufficient to protect the financial in- terests of the United States. (c) Application requirements (1) No financial assistance may be provided to any person under this subchapter unless an ap- plication therefor— (A) has been submitted to the Secretary con- cerned by that person in such form and under such procedures as the Secretary shall pre- scribe, consistent with the requirements of this subchapter, and (B) has been approved by the Secretary in accordance with such procedures. (2) Each such application shall include infor- mation regarding the construction costs of the biomass energy project involved, and estimates of operating costs and income relating to that project (including the sale of any byproducts from that project). In addition, each applicant shall provide— (A) access at reasonable times to such other information, and (B) such assurances, as the Secretary concerned may require. (d) Reports and recordkeeping (1) Every recipient of financial assistance under this subchapter shall, as a condition precedent thereto, consent to such examinations and reports regarding the biomass energy project involved as the Secretary concerned may require. (2) With respect to each biomass energy project for which financial assistance is pro- vided under this subchapter, the Secretary shall— (A) require from the recipient of financial assistance such reports and records relating to that project as the Secretary deems necessary; (B) prescribe the manner in which such re- cipient shall keep such records; and (C) have access to such records at reasonable times for the purpose of ensuring compliance with the terms and conditions upon which fi- nancial assistance is provided. (e) Contracts and instruments of Secretary con- cerned backed by full faith and credit of United States All contracts and instruments of the Sec- retary concerned to provide, or providing, for fi- nancial assistance shall be general obligations of the United States backed by its full faith and credit. (f) Contestability of contracts Subject to the conditions of any contract for financial assistance, such contract shall be in- contestable in the hands of the holder, except as to fraud or material misrepresentation on the part of the holder. (g) Fees for loan guarantees, etc. (1) A fee or fees may be charged and collected by the Secretary concerned for any loan guar- antee, price guarantee, or purchase agreement provided under this subchapter. (2) The amount of such fee shall be based on the estimated administrative costs and risk of loss, except that such fee may not exceed 1 per centum of the amount of the financial assist- ance provided. (h) Deposit of amounts received by Secretary concerned All amounts received by the Secretary of Agri- culture or the Secretary of Energy as fees, inter- est, repayment of principal, and any other mon- eys received by either Secretary from activities under this subchapter shall be deposited in the Page 7657 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 8820 Treasury of the United States as miscellaneous receipts. The preceding sentence shall not apply to insured loans made under section 8813 of this title. (Pub. L. 96–294, title II, § 217, June 30, 1980, 94 Stat. 693.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (a)(4)(C), 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 classi- fied principally to this chapter. For complete classi- fication of title II to the Code, see Short Title note set out under section 8801 of this title and Tables. § 8818. Reports (a) Repealed. Pub. L. 99–386, title I, § 101(a), Aug. 22, 1986, 100 Stat. 821 (b) Comprehensive list of loans, grants, etc. Within 120 days after June 30, 1980, the Sec- retary of Energy and the Secretary of Agri- culture shall submit to the Congress a com- prehensive list of all the types of loans, grants, incentives, rebates, or any other such private, State, or Federal economic or financial benefits now in effect or proposed which can be or have been used for production of alcohol to be used as a motor fuel or petroleum substitute. (c) Annual reports; report evaluating overall im- pact and plan for termination of Office of Al- cohol Fuels (1)(A) The Office of Alcohol Fuels shall submit to the Congress and the President annual re- ports containing a general description of the Of- fice’s operations during the year and a descrip- tion and evaluation of each biomass energy project for which financial assistance by the Of- fice is then in effect. (B) Each annual report shall describe progress made toward meeting the goals of this sub- chapter and contain specific recommendations on what actions the Congress could take in order to facilitate the work of the Office in achieving such goals. (C) Each annual report under this subsection shall contain financial statements prepared by the Office. (2) On or before September 30, 1990, the Office shall submit to the Congress and the President a report evaluating the overall impact made by the Office and describing the status of each bio- mass energy project which has received finan- cial assistance under this subchapter from the Office. Such report shall contain a plan for the termination of the work of the Office. (Pub. L. 96–294, title II, § 218, June 30, 1980, 94 Stat. 695; Pub. L. 99–386, title I, § 101(a), Aug. 22, 1986, 100 Stat. 821.) Editorial Notes AMENDMENTS 1986—Subsec. (a). Pub. L. 99–386 struck out subsec. (a) which related to submission of quarterly reports to the President and Congress by Secretary of Agriculture and Secretary of Energy. Statutory Notes and Related Subsidiaries TERMINATION OF REPORTING REQUIREMENTS For termination, effective May 15, 2000, of provisions in subsec. (c)(1) of this section relating to the require- ment that the Office of Alcohol Fuels submit annual re- ports to Congress, see section 3003 of Pub. L. 104–66, as amended, set out as a note under section 1113 of Title 31, Money and Finance, and the 12th item on page 91 of House Document No. 103–7. § 8819. Review; reorganization (a) The President shall review periodically the progress of the Secretary of Agriculture and the Secretary of Energy in carrying out the pur- poses of this subchapter. (b) If the President determines it necessary in order to achieve such purposes the President may, in accordance with the provisions of chap- ter 9 of title 5, provide for a reorganization, in- cluding any required realignment of the respec- tive programs of the Secretaries under this sub- chapter. (Pub. L. 96–294, title II, § 219, June 30, 1980, 94 Stat. 695.) § 8820. Office of Alcohol Fuels (a) Establishment in Department of Energy; ap- pointment and compensation of Director There is hereby established within the Depart- ment of Energy an Office of Alcohol Fuels (here- inafter in this section referred to as the ‘‘Of- fice’’) to be headed by a Director, who shall be appointed by the President, by and with the ad- vice and consent of the Senate, and who shall be compensated at the rate provided for level IV of the Executive Schedule under section 5315 of title 5. (b) Responsibilities of Director (1) The Director shall be responsible for car- rying out the functions of the Secretary of En- ergy under this subchapter which relate to alco- hol, including the terms and conditions of finan- cial assistance and the selection of recipients for that assistance, subject to the general super- vision of the Secretary of Energy. (2) The Director shall be responsible directly to the Secretary of Energy. (c) Annual authorization and appropriation re- quests for support of Office In each annual authorization and appropria- tion request, the Secretary shall identify the portion thereof intended for the support of the Office and include a statement by the Office (1) showing the amount requested by the Office in its budgetary presentation to the Secretary and the Office of Management and Budget and (2) an assessment of the budgetary needs of the Office. Whenever the Office submits to the Secretary, the President, or the Office of Management and Budget, any formal legislative recommendation or testimony, or comments on legislation, pre- pared for submission to Congress, the Office shall concurrently transmit a copy thereof to the appropriate committees of Congress. (d) Consultations respecting coordination of pro- grams The Secretary of Energy, after consultation with the Director, shall consult with the Sec-