
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC8834]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
              CHAPTER 96--BIOMASS ENERGY AND ALCOHOL FUELS
 
              SUBCHAPTER II--MUNICIPAL WASTE BIOMASS ENERGY
 
Sec. 8834. Price support loans and price guarantees


(a) Authority of Secretary of Energy with respect to loans for existing 
        projects; disbursements, etc.

    (1) In the case of any existing municipal waste energy project which 
produces and sells biomass energy, the Secretary of Energy may commit to 
make, and make, a price support loan in amounts determined under 
paragraph (3) for the operation of such project. Payments under any such 
loan shall be disbursed on an annual basis, as determined (in accordance 
with paragraph (3)) on the basis of the amount of biomass energy 
produced and sold by that project during the 12-month period involved 
and the type and cost of fuel displaced by the biomass energy sold.
    (2)(A) In the case of any support loan under this section for an 
existing municipal waste energy project--
        (i) disbursements under such loan may not be made for more than 
    5 consecutive 12-month periods;
        (ii) the amount of the disbursement for the second and any 
    subsequent 12-month period for which disbursements are to be made 
    under the support loan shall be reduced by an amount determined by 
    multiplying the amount calculated under paragraph (3) by a factor 
    determined by dividing the number of 12-month periods for which 
    disbursements are made under the support loan into the number of 
    such periods which have elapsed;
        (iii) commencing at the end of the last of such 12-month 
    periods, the support loan shall be repayable over a period equal to 
    the then remaining useful life of the project (as determined by the 
    Secretary) or 10 years, whichever is shorter; and
        (iv) commencing at the end of such last 12-month period, such 
    loan shall bear interest at a rate determined by the Secretary of 
    Energy (taking into consideration the current average market yield 
    on outstanding marketable obligations of the United States with 
    remaining periods to maturity comparable to the average maturities 
    of such loans) plus not to exceed one per centum, as determined by 
    the Secretary of Energy, and adjusted to the nearest one-eighth of 
    one per centum.

    (3) The amount of the loan payment to be disbursed under this 
subsection for any year with respect to each type of biomass energy 
produced and sold by an existing municipal waste energy project shall be 
equal to--
        (A)(i) the standard support price reduced by the cost of the 
    fuel displaced by the biomass energy sold, or (ii) $2.00, whichever 
    is lower, multiplied by
        (B) the amount of such biomass energy sold (in millions of 
    Btu's).

(b) Authority of Secretary of Energy with respect to loans for new 
        projects; disbursements, etc.

    (1) In the case of any new municipal waste energy project which 
produces and sells biomass energy, the Secretary of Energy may commit to 
make, and make, a price support loan in amounts determined in accordance 
with the provisions of subsection (a) of this section, except as 
provided in paragraph (2).
    (2) In the case of any loan under this subsection for a new 
municipal waste energy project--
        (A) disbursements under such loan may not be made for more than 
    7 consecutive 12-month periods (with reductions as provided in 
    subsection (a)(2)(A)(ii)) of this section;
        (B) such loan shall bear interest at a rate not in excess of the 
    rate prescribed under subsection (a) of this section; and
        (C) the principal of or interest on such loan shall, in 
    accordance with the support loan agreement, be repayable, commencing 
    at the end of the last 12-month period covered by the support loan, 
    over a period not in excess of the period equal to the then 
    remaining useful life of the project (as determined by the 
    Secretary) or 15 years, whichever is shorter.

(c) Authority of Secretary of Energy with respect to guarantees for new 
        projects; pricing determinations, etc.

    (1) In the case of any new municipal waste energy project which 
produces and sells biomass energy, the Secretary of Energy may commit to 
make, and make, a price guarantee for the operation of such project 
which guarantees that the price the owner or operator 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 
guarantee agreement.
    (2)(A) 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.
    (B) 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 subparagraph (A).
    (3) In the case of any price guarantee under this subsection for a 
new municipal waste energy project--
        (A) disbursements under such guarantee may not be made for more 
    than 7 consecutive 12-month periods; and
        (B) amounts paid under this subsection may be required to be 
    repaid to the Secretary of Energy under such terms and conditions as 
    the Secretary may prescribe, including interest at a rate not in 
    excess of the rate prescribed under subsection (a) of this section.

(d) Definitions; sale price of retained fuel; rules relating to fuel 
        displacement

    For purposes of this section--
        (1) The term ``new municipal waste energy project'' means any 
    municipal waste energy project which--
            (A) is initially placed in service after June 30, 1980; or
            (B) if initially placed in service before June 30, 1980, has 
        an increased capacity by reason of additional construction, and 
        as such is placed in service after such date.

        (2) The term ``existing municipal waste energy project'' means 
    any municipal waste energy project which is not a new municipal 
    waste project.
        (3) The term ``placed in service'' means operated at more than 
    50 percent of the estimated operational capacity.
        (4)(A) Except as provided in subparagraphs (B) and (C), the term 
    ``standard support price'' means the average price (per million 
    Btu's) for No. 6 fuel oil imported into the United States on June 
    30, 1980, as determined, by rule, by the Secretary of Energy not 
    later than 90 days after June 30, 1980.
        (B) In any case in which the fuel displaced is No. 6 fuel oil or 
    any higher grade of petroleum (as determined by the Secretary of 
    Energy), the term ``standard support price'' means 125 per centum of 
    the price determined by rule under subparagraph (A).
        (C) In any case in which biomass energy produced and sold by a 
    project is steam or electricity, the term ``standard support price'' 
    means the price determined by rule under subparagraph (A), subject 
    to such adjustments as the Secretary of Energy may authorize by 
    rule.
        (5) The term ``cost of the fuel displaced'' means the cost of 
    the fuel (per million Btu's) which the purchaser of biomass energy 
    would have purchased if the biomass energy had not been available 
    for sale to that purchaser.
        (6) Any biomass energy produced by a municipal waste energy 
    project which may be retained for use by the owner or operator of 
    such project shall be considered to be sold at such price as the 
    Secretary of Energy determines.
        (7) Not later than 90 days after June 30, 1980, the Secretary of 
    Energy shall prescribe, by rule, the manner of determining the fuel 
    displaced by the sale of any biomass energy, and the price of the 
    fuel displaced.

(Pub. L. 96-294, title II, Sec. 234, June 30, 1980, 94 Stat. 699.)

                  Section Referred to in Other Sections

    This section is referred to in sections 8835, 8836 of this title.
