[Code of Federal Regulations]
[Title 10, Volume 3]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 10CFR451.9]

[Page 470-471]
 
                            TITLE 10--ENERGY
 
                    CHAPTER II--DEPARTMENT OF ENERGY
 
PART 451_RENEWABLE ENERGY PRODUCTION INCENTIVES--Table of Contents
 
Sec. 451.9  Procedures for processing applications.

    (a) Supplemental information. DOE may request supplementary 
information relating to the application.
    (b) Audits. DOE may require the applicant to conduct at its own 
expense and submit an independent audit, or DOE may conduct an audit, to 
verify the number of kilowatt-hours claimed to have been generated and 
sold by the qualified renewable energy facility and for which an 
incentive payment has been requested or made.
    (c) DOE determinations. Upon evaluating the application and any 
other relevant information, DOE shall determine:
    (1) Eligibility of the applicant for receipt of an incentive 
payment, based on the criteria for eligibility specified in this part; 
and
    (2) The number of kilowatt-hours to be used in calculating the 
incentive payment, based on the sum of net electric energy generated 
from a qualified renewable energy source at the qualified renewable 
energy facility and sold during the prior fiscal year, and any accrued 
energy.
    (d) Calculating payments. Subject to the provisions of paragraph (e) 
of this section, incentive payments under this part shall be determined 
by multiplying the number of kilowatt-hours determined under Sec. 
451.9(c)(2) by 1.5 cents per kilowatt-hour, and adjusting that product 
for inflation for each fiscal year beginning after calendar year 1993 in 
the same manner as provided in section 29(d)(2)(B) of the Internal 
Revenue Code of 1986, except that in applying such provisions calendar 
year 1993 shall be substituted for calendar year 1979.
    (e) Insufficient Funds. The Assistant Secretary for Energy 
Efficiency and Renewable Energy shall determine the extent to which 
appropriated funds are available to be obligated under this program for 
each fiscal year. If funds determined to be available under the 
preceding sentence are not sufficient to make full incentive payments 
for all approved applications, DOE shall--
    (1) Make incentive payments first, and if necessary on a pro rata 
basis, to owners or operators of qualified renewable energy facilities 
using solar, wind, geothermal, and closed-loop biomass technologies;
    (2) Make incentive payments second, and if necessary on a pro rata 
basis, to owners or operators of all other qualified renewable energy 
facilities.
    (3) Treat the number of kilowatt-hours for which an incentive 
payment is not made as a result of insufficient appropriations as 
accrued energy for

[[Page 471]]

which subsequent application for incentive payment may be made.
    (f) Notice to applicant. After calculating the amount of the 
incentive payment under paragraphs (e) through (g) of this section, the 
DOE Deciding Official shall then issue a written notice of the 
determination to the applicant--
    (1) Approving the application as eligible for payment and forwarding 
a copy to the DOE Finance Office with a request to pay;
    (2) Setting forth the calculation of the approved amount of the 
incentive payment; and
    (3) Stating the amount of accrued energy, measured in kilowatt-
hours, for each qualified renewable energy facility, if any, and the 
energy source for same.
    (g) Disqualification. If the application does not meet the 
requirements of this part or some of the kilowatt-hours claimed in the 
application are disallowed as unqualified, the Deciding Official shall 
issue a written notice denying the application in whole or in part with 
an explanation of the basis for denial.