Price guarantees

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. 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. 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). 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. a biomass energy project would not otherwise be satisfactorily completed or continued, and completion or continuation of such project would be necessary to achieve the purposes of this chapter, If the Secretary determines, in the discretion of the Secretary, that— (Source: (Pub. L. 96–294, title II, § 215, June 30, 1980, 94 Stat. 692.))