Attach_7_15R0711.pdf

Attachment 7

Terms Applicable to Biofuel/Alternative Fuel Blend Contract Line Items

A. Contractors providing biofuel or alternative fuel blend offers agree to the following terms and conditions:

1. Each gallon of biofuel/alternative fuel blend must contain the agreed upon minimum percentage by volume of biofuel/alternative fuel. Contractor shall not vary the amount of the biofuel/alternative fuel content per gallon over the life of the contract.

2. Each gallon of biofuel/alternative fuel must be produced using only the feedstock(s) identified in the contract.

3. Each gallon of biofuel/alternative fuel must be produced using the pathway and process identified in the contract.

B. If the contractor wants to provide fuel produced from a feedstock or using a pathway or process not identified in the contract, then the contractor must obtain the express written approval of the Contracting Officer. Contractor shall submit a request in writing identifying the new feedstock, pathway or process, to be used and the reasons for the change. Contractor shall provide the Contracting Officer with any other additional information requested, including information demonstrating that the biofuel/alternative fuel meets Section 526.

C. For all biofuel/alternative fuel blends expressly identified and supplied under the contract, the lifecycle greenhouse gas emissions of the biofuel/alternative fuel component must be less than or equal to the lifecycle greenhouse gas emission of fuel produced from conventional petroleum sources as required by Section 526 of the Energy Independence and Security Act, 42 U.S.C.A. § 17142.

D. At its discretion, the Government may request supporting documents such as invoices or receipts demonstrating that contractor has purchased or otherwise obtained sufficient biofuel/alternative fuel to fulfill the requirements of its contract. The Government may also test the fuel for biofuel content using ASTM D 6866 – “Standard Test Method for Determining the Biobased Content of Solid, Liquid, and Gaseous Samples Using Radiocarbon Analysis” or may test using any other reasonable techniques.

Alternative I. Add the following to the basic clause if the contractor will be receiving a biofuel production incentive under the Commodity Credit Corporation (CCC) program.

E. If the contractor is awarded a contract as a result of the biofuels production incentive evaluation factor, the contractor’s price per gallon will be allocated across two line items. The first line item will represent the competitive petroleum price and the second line item will represent the biofuels production incentive.

F. The contractor’s right to payment of the biofuel production incentive is dependent on the feedstock and percentage of the biofuel content as agreed to in this contract. The biofuel component must be produced from a domestic feedstock approved by the CCC. The biofuel blend must contain the minimum agreed upon biofuel content. In the event that the contractor delivers fuel that is produced from ineligible feedstocks or contains less than the minimum required biofuel content, the contractor will not be entitled to payment for the biofuel production incentive for those gallons. The contractor will not be paid a higher biofuel production incentive in the event that the contractor delivers fuel that exceeds the minimum biofuel content.

The amount of the biofuel production incentive will be fixed for the life of the contract and not be subject to an economic price adjustment. The biofuel production incentive is authorized only up to the total amount obligated on the contract for that line item.

G. DLA Energy is not responsible for payment of the biofuel production incentive. The contractor is required to split bill the CCC separately for the biofuels production incentive.