Source: https://www.law.cornell.edu/uscode/text/42/7651o
Timestamp: 2017-10-23 08:22:58
Document Index: 217615996

Matched Legal Cases: ['§ 7651', '§\n42', '§ 7651', '§\u202f7651', '§\u202f416', '§\u202f401', '§\u202f1263', 'art 715']

42 U.S. Code § 7651o - Contingency guarantee, auctions, reserve | US Law | LII / Legal Information Institute
U.S. Code › Title 42 › Chapter 85 › Subchapter IV-A › §
42 U.S. Code § 7651o - Contingency guarantee, auctions, reserve
§ 7651o.
The term “independent power producer” means any person who owns or operates, in whole or in part, one or more new independent power production facilities.
(2) The term “new independent power production facility” means a facility that—
is used for the generation of electric energy, 80 percent or more of which is sold at wholesale;
is nonrecourse project-financed (as such term is defined by the Secretary of Energy within 3 months of November 15, 1990);
does not generate electric energy sold to any affiliate (as defined in section 79b(a)(11) [1] of title 15) of the facility’s owner or operator unless the owner or operator of the facility demonstrates that it cannot obtain allowances from the affiliate; and
is a new unit required to hold allowances under this subchapter.
The term “required allowances” means the allowances required to operate such unit for so much of the unit’s useful life as occurs after January 1, 2000.
(b) Special reserve of allowancesWithin 36 months after November 15, 1990, the Administrator shall promulgate regulations establishing a Special Allowance Reserve containing allowances to be sold under this section. For purposes of establishing the Special Allowance Reserve, the Administrator shall withhold—
2.8 percent of the allocation of allowances for each year from 1995 through 1999 inclusive; and
2.8 percent of the basic Phase II allowance allocation of allowances for each year beginning in the year 2000
(3) Entitlement to written guaranteeAny independent power producer that submits an application to the Administrator establishing that such independent power producer—
proposes to construct a new independent power production facility for which allowances are required under this subchapter;
will apply for financing to construct such facility after January 1, 1990, and before the date of the first auction under this section;
has submitted to each owner or operator of an affected unit listed in table A (in section 7651c of this title) a written offer to purchase the required allowances for $750 per ton; and
has not received (within 180 days after submitting offers to purchase under subparagraph (C)) an acceptance of the offer to purchase the required allowances,
shall, within 30 days after submission of such application, be entitled to receive the Administrator’s written guarantee (subject to the eligibility requirements set forth in paragraph (4)) that such required allowances will be made available for purchase from the Direct Sale Subaccount established under this subsection and at a guaranteed price. The guaranteed price at which such allowances shall be made available for purchase shall be $1,500 per ton, adjusted by the percentage, if any, by which the Consumer Price Index (as determined under section 7661a(b)(3)(B)(v) of this title) for the year in which the allowance is purchased exceeds the Consumer Price Index for the calendar year 1990.
(4) Eligibility requirementsThe guarantee issued by the Administrator under paragraph (3) shall be subject to a demonstration by the independent power producer, satisfactory to the Administrator, that—
made good faith efforts to purchase the required allowances from the owners or operators of affected units to which allowances will be allocated, including efforts to purchase at annual auctions under this section, and from industrial sources that have elected to become affected units pursuant to section 7651i of this title; and
such bids and efforts were unsuccessful in obtaining the required allowances; and
the independent power producer will continue to make good faith efforts to purchase the required allowances from the owners or operators of affected units and from industrial sources.
Notwithstanding section 3302 of title 31 or any other provision of law, the Administrator shall require that the proceeds of any sale under this subsection be transferred, within 90 days after the sale, without charge, on a pro rata basis to the owners or operators of the affected units from whom the allowances were withheld under subsection (b) and that any unsold allowances be transferred to the Subaccount for Auction Sales established under subsection (d). No proceeds of any sale under this subsection shall be held by any officer or employee of the United States or treated for any purpose as revenue to the United States or to the Administrator.
If the Administrator determines that, during any period of 2 consecutive calendar years, less than 20 percent of the allowances available in the subaccount for direct sales established under this subsection have been purchased under this paragraph, the Administrator shall terminate the subaccount and transfer such allowances to the Auction Subaccount under subsection (d).
Notwithstanding section 3302 of title 31 or any other provision of law, within 90 days of receipt, the Administrator shall transfer the proceeds from the auction under this section, on a pro rata basis, to the owners or operators of the affected units at an affected source from whom allowances were withheld under subsection (b). No funds transferred from a purchaser to a seller of allowances under this paragraph shall be held by any officer or employee of the United States or treated for any purpose as revenue to the United States or the Administrator.
At the end of each year, any allowances offered for sale but not sold at the auction shall be returned without charge, on a pro rata basis, to the owner or operator of the affected units from whose allocation the allowances were withheld.
The Administrator may terminate the withholding of allowances and the auction sales under this section if the Administrator determines that, during any period of 3 consecutive calendar years after 2002, less than 20 percent of the allowances available in the auction subaccount have been purchased. Pursuant to regulations under this section, the Administrator may by delegation or contract provide for the conduct of sales or auctions under the Administrator’s supervision by other departments or agencies of the United States Government or by nongovernmental agencies, groups, or organizations.
(July 14, 1955, ch. 360, title IV, § 416, as added Pub. L. 101–549, title IV, § 401, Nov. 15, 1990, 104 Stat. 2626.)
Section 79b of title 15, referred to in subsec. (a)(2)(C), was repealed by Pub. L. 109–58, title XII, § 1263, Aug. 8, 2005, 119 Stat. 974. See section 16451(1) of this title.
10 CFR Part 715 - DEFINITION OF NON-RECOURSE PROJECT-FINANCED