
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC8816]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
              CHAPTER 96--BIOMASS ENERGY AND ALCOHOL FUELS
 
            SUBCHAPTER I--GENERAL BIOMASS ENERGY DEVELOPMENT
 
Sec. 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.

(Pub. L. 96-294, title II, Sec. 216, June 30, 1980, 94 Stat. 692.)
