(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 § 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 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.