30 USC CHAPTER 24 - GEOTHERMAL ENERGY RESEARCH, DEVELOPMENT, AND
DEMONSTRATION

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 24 - GEOTHERMAL ENERGY RESEARCH, DEVELOPMENT, AND DEMONSTRATION

Sec.

1101\. Congressional findings.

1102\. Definitions.

SUBCHAPTER I - GEOTHERMAL ENERGY COORDINATION AND MANAGEMENT PROJECT

1121\. Formation of Project.

\(a\) Establishment.

\(b\) Composition; members and chairman.

\(c\) Responsibility for geothermal energy research,

development, and demonstration program.

\(d\) Allocation of functions to certain agencies;

loaning of personnel.

\(e\) Exclusive authority of the Project.

1122\. Program definition.

1123\. Resource inventory and assessment program.

1124\. Research and development.

1125\. Geothermal demonstration plants and projects.

\(a\) Design and construction.

\(b\) Establishment of demonstration projects.

\(c\) Agreements for the cooperative development of

facilities for demonstration.

\(d\) Construction of demonstration projects without

entering into agreements.

\(e\) Factors considered for entry into agreements.

\(f\) Limits on project costs.

\(g\) Disposal of Federal property interests and

resource byproducts.

1126\. Scientific and technical education.

\(a\) Congressional declaration of policy.

\(b\) Support of educational programs in science and

engineering.

\(c\) Selection of programs of education; coordination

with National Science Foundation.

\(d\) International participation and cooperation.

SUBCHAPTER II - LOAN GUARANTIES

1141\. Establishment of loan guaranty program.

\(a\) Congressional declaration of policy.

\(b\) Authorization of heads of designated agencies to

guarantee loans.

\(c\) Extent of guarantee.

\(d\) Terms and conditions of guaranties.

\(e\) Limitations on amount of guaranty; exceptions;

procedures applicable.

\(f\) \'\'Qualified borrower\'\' defined.

\(g\) Payment of interest; criteria.

\(h\) Pledge of full faith and credit of United States

to guaranties.

\(i\) Fees for guaranties; amount, collection, etc.

\(j\) Minimization of capital market impact of

guaranties.

1142\. Payment of guaranteed obligation by Secretary of Energy.

\(a\) Default by borrower and demand by holder of

obligation of unpaid amount; amount of payment

by Secretary of Energy; defenses available;

forebearance by holder of obligation.

\(b\) Rights and authorities of Secretary of Energy

upon payment.

\(c\) Rights and authorities of Attorney General upon

default on any guarantee.

\(d\) Contracts to pay, and payment, from Geothermal

Resources Development Fund of principal and

interest of unpaid balance of obligation;

preconditions.

1143\. Period of guaranties and interest assistance.

1144\. Geothermal Resources Development Fund.

\(a\) Establishment; purposes for which Fund moneys may

be expended.

\(b\) Deposits into the Fund.

\(c\) Borrowing authority of Secretary of Energy.

\(d\) Reports to Congress.

1145\. Community impact assistance functions of Secretary of Energy.

\(a\) Determination of adequacy of community planning

and development financing in covered project

localities; review of State and local actions

and sufficiency of available financing for

projects on leased Federal lands.

\(b\) Discretionary activities for communities with

projects not subject to coverage.

\(c\) Guarantees, commitments to guarantee, direct

loans, and grants; scope, terms and conditions,

amount, etc.

1146\. Approval or disapproval of loan guarantee applications.

1147\. Application of national environmental policy provisions.

SUBCHAPTER III - GENERAL PROVISIONS

1161\. Protection of environment.

1162\. Final report to President and Congress on terminated

projects.

1163\. Transfer of functions.

1164\. Authorization of appropriations.

\(a\) Fiscal years ending June 30, 1976, and September

30, 1977, through September 30, 1980.

\(b\) Fiscal year ending June 30, 1975.

\(c\) Additional sums for Project.

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in title 42 sections 5902, 5905,

7135a.

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Sec. 1101. Congressional findings

The Congress hereby finds that -

\(1\) the Nation is currently suffering a critical shortage of

environmentally acceptable forms of energy;

\(2\) the inadequate organizational structures and levels of

funding for energy research have limited the Nation\'s current and

future options for meeting energy needs;

\(3\) electric energy is a clean and convenient form of energy at

the location of its use and is the only practicable form of

energy in some modern applications, but the demand for electric

energy in every region of the United States is taxing all of the

alternative energy sources presently available and is projected

to increase; some of the sources available for electric power

generation are already in short supply, and the development and

use of other sources presently involve undesirable environmental

impacts;

\(4\) the Nation\'s critical energy problems can be solved only if

a national commitment is made to dedicate the necessary financial

resources, and enlist the cooperation of the private and public

sectors, in developing geothermal resources and other

nonconventional sources of energy;

\(5\) the conventional geothermal resources which are presently

being used have limited total potential; but geothermal resources

which are different from those presently being used, and which

have extremely large energy content, are known to exist;

\(6\) some geothermal resources contain energy in forms other

than heat; examples are methane and extremely high pressures

available upon release as kinetic energy;

\(7\) some geothermal resources contain valuable byproducts such

as potable water and mineral compounds which should be processed

and recovered as national resources;

\(8\) technologies are not presently available for the

development of most of these geothermal resources, but

technologies for the generation of electric energy from

geothermal resources are potentially economical and

environmentally desirable, and the development of geothermal

resources offers possibilities of process energy and other

nonelectric applications;

\(9\) much of the known geothermal resources exist on the public

lands;

\(10\) Federal financial assistance is necessary to encourage the

extensive exploration, research, and development in geothermal

resources which will bring these technologies to the point of

commercial application;

\(11\) the advancement of technology with the cooperation of

private industry for the production of useful forms of energy

from geothermal resources is important with respect to the

Federal responsibility for the general welfare, to facilitate

commerce, to encourage productive harmony between man and his

environment, and to protect the public interest; and

\(12\) the Federal Government should encourage and assist private

industry through Federal assistance for the development and

demonstration of practicable means to produce useful energy from

geothermal resources with environmentally acceptable processes.

SOURCE

(Pub. L. 93-410, Sec. 2, Sept. 3, 1974, 88 Stat. 1079.)

SHORT TITLE

Section 1 of Pub. L. 93-410 provided that: \'\'This Act (enacting

this chapter) may be cited as the \'Geothermal Energy Research,

Development, and Demonstration Act of 1974\'.\'\'

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Sec. 1102. Definitions

For the purposes of this chapter -

\(1\) the term \'\'geothermal resources\'\' means (A) all products of

geothermal processes, embracing indigenous steam, hot water, and

brines, (B) steam and other gases, hot water and hot brines,

resulting from water, gas, or other fluids artificially

introduced into geothermal formations, and (C) any byproduct

derived from them;

\(2\) the term \'\'byproduct\'\' means any mineral or minerals which

are found in solution or in association with geothermal resources

and which have a value of less than 75 percent of the value of

the geothermal steam and associated geothermal resources or are

not, because of quantity, quality, or technical difficulties in

extraction and production, of sufficient value to warrant

extraction and production by themselves;

\(3\) \'\'pilot plant\'\' means an experimental unit of small size

used for early evaluation and development of new or improved

processes and to obtain technical, engineering, and cost data;

\(4\) \'\'demonstration plant\'\' means a complete facility which

produces electricity, heat energy, or useful byproducts for

commercial disposal from geothermal resources and which will make

a significant contribution to the knowledge of full-size

technology, plant operation, and process economics;

\(5\) the term \'\'Project\'\' means the Geothermal Energy

Coordination and Management Project established by section

1121(a) of this title;

\(6\) the term \'\'fund\'\' means the Geothermal Resources

Development Fund established by section 1144(a) of this title;

and

\(7\) the term \'\'Chairman\'\' means the Chairman of the Project.

SOURCE

(Pub. L. 93-410, Sec. 3, Sept. 3, 1974, 88 Stat. 1080.)

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Sec. 1121. Formation of Project

\(a\) Establishment

There is hereby established the Geothermal Energy Coordination

and Management Project.

\(b\) Composition; members and chairman

\(1\) The Project shall be composed of six members as follows:

\(A\) one appointed by the President;

\(B\) an Assistant Director of the National Science Foundation;

\(C\) an Assistant Secretary of the Department of the Interior;

\(D\) an Associate Administrator of the National Aeronautics and

Space Administration;

\(E\) the Assistant Administrator of the Energy Research and

Development Administration for Solar, Geothermal, and Advanced

Energy Systems;

\(F\) an Assistant Administrator of the Federal Energy

Administration;

\(G\) an Assistant Administrator of the Environmental Protection

Agency;

\(H\) an Assistant Secretary of Treasury; and

\(I\) an Assistant Secretary of Agriculture.

\(2\) The President shall designate the Assistant Administrator of

the Energy Research and Development Administration for Solar,

Geothermal, and Advanced Energy Systems to serve as Chairman of the

Project.

\(3\) If the individual appointed under paragraph (1)(A) of this

subsection is an officer or employee of the Federal Government, he

shall receive no additional pay on account of his service as a

member of the Project. If such individual is not an officer or

employee of the Federal Government, he shall be entitled to receive

the daily equivalent of the annual rate of basic pay in effect for

level IV of the Executive Schedule (5 U.S.C. 5315) for each day

(including traveltime) during which he is engaged in the actual

performance of duties vested in the Project.

\(c\) Responsibility for geothermal energy research, development, and

demonstration program

The Project shall have overall responsibility for the provision

of effective management and coordination with respect to a national

geothermal energy research, development, and demonstration

program. Such program shall include -

\(1\) the determination and evaluation of the resource base;

\(2\) research and development with respect to exploration,

extraction, and utilization technologies;

\(3\) the demonstration of appropriate technologies; and

\(4\) the loan guaranty program under subchapter II of this

chapter.

\(d\) Allocation of functions to certain agencies; loaning of

personnel

\(1\) The Project shall carry out its responsibilities under this

section acting through the following Federal agencies:

\(A\) the Department of the Interior, the responsibilities of

which shall include evaluation and assessment of the resource

base, including development of exploration technologies;

\(B\) the National Aeronautics and Space Administration, the

responsibilities of which shall include the provision of contract

management capability, evaluation and assessment of the resource

base, and the development of technologies pursuant to section

1122(b) of this title;

\(C\) the Atomic Energy Commission, the responsibilities of which

shall include the development of technologies; and

\(D\) the National Science Foundation, the responsibilities of

which shall include basic and applied research.

\(2\) Upon request of the Project, the head of any such agency is

authorized to detail or assign, on a reimbursable basis or

otherwise, any of the personnel of such agency to the Project to

assist it in carrying out its responsibilities under this chapter.

\(e\) Exclusive authority of the Project

The Project shall have exclusive authority with respect to the

establishment or approval of programs or projects initiated under

this chapter, except that the agency involved in any particular

program or project shall be responsible for the operation and

administration of such program or project.

SOURCE

(Pub. L. 93-410, title I, Sec. 101, Sept. 3, 1974, 88 Stat. 1080;

Pub. L. 95-238, title V, Sec. 502, Feb. 25, 1978, 92 Stat. 86.)

AMENDMENTS

1978 - Subsec. (b)(1). Pub. L. 95-238, Sec. 502(1)-(3), in

subpar. (E) substituted \'\'Assistant Administrator of the Energy

Research and Development Administration for Solar, Geothermal, and

Advanced Energy Systems;\'\' for \'\'General Manager of the Atomic

Energy Commission; and\'\', and added subpars. (G) to (I).

Subsec. (b)(2). Pub. L. 95-238, Sec. 502(4), substituted \'\'the

Assistant Administrator of the Energy Research and Development

Administration for Solar, Geothermal, and Advanced Energy Systems\'\'

for \'\'one member of the Project\'\'.

TRANSFER OF FUNCTIONS

Energy Research and Development Administration terminated and

functions vested by law in Administrator thereof transferred to

Secretary of Energy (unless otherwise specifically provided) by

sections 7151(a) and 7293 of Title 42, The Public Health and

Welfare.

Atomic Energy Commission abolished and functions transferred by

sections 5814 and 5841 of Title 42. See, also, Transfer of

Functions notes set out under those sections.

Federal Energy Administration terminated and all functions

transferred to Secretary of Energy (unless otherwise specifically

provided) by sections 7151(a) and 7293 of Title 42.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1102 of this title.

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Sec. 1122. Program definition

(a)(1) The Chairman, acting through the Administrator of the

National Aeronautics and Space Administration, is authorized and

directed to prepare a comprehensive program definition of an

integrated effort and commitment for effectively developing

geothermal energy resources. Such Administrator, in preparing such

comprehensive program definition, is authorized to consult with

other Federal agencies and non-Federal entities.

\(2\) The Chairman shall transmit such comprehensive program

definition to the President and to each House of the Congress.

Interim reports shall be transmitted not later than November 30,

1974, and not later than January 31, 1975. Such comprehensive

program definition shall be transmitted as soon as possible

thereafter, but in any case not later than August 31, 1975.

\(3\) As part of the comprehensive program definition required by

paragraph (1) of this subsection, the Chairman, acting through the

United States Geological Survey, shall transmit to the President

and to each House of the Congress a schedule and objectives for the

inventorying of geothermal resources.

\(b\) The National Aeronautics and Space Administration is

authorized to undertake and carry out those programs assigned to it

by the Project.

SOURCE

(Pub. L. 93-410, title I, Sec. 102, Sept. 3, 1974, 88 Stat. 1081;

Pub. L. 102-154, title I, Nov. 13, 1991, 105 Stat. 1000.)

CHANGE OF NAME

\'\'United States Geological Survey\'\' substituted for \'\'Geological

Survey\'\' in subsec. (a)(3) pursuant to provision of title I of Pub.

L. 102-154, set out as a note under section 31 of Title 43, Public

Lands.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1121, 1164 of this title.

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Sec. 1123. Resource inventory and assessment program

\(a\) The Chairman shall initiate a resource inventory and

assessment program with the objective of making regional and

national appraisals of all types of geothermal resources, including

identification of promising target areas for industrial exploration

and development. The specific goals shall include -

\(1\) the improvement of geophysical, geochemical, geological,

and hydrological techniques necessary for locating and evaluating

geothermal resources;

\(2\) the development of better methods for predicting the power

potential and longevity of geothermal reservoirs;

\(3\) the determination and assessment of the nature and power

potential of the deeper unexplored parts of high temperature

geothermal convection systems; and

\(4\) the survey and assessment of regional and national

geothermal resources of all types.

\(b\) The Chairman, acting through the United States Geological

Survey and other appropriate agencies, shall -

\(1\) develop and carry out a general plan for the orderly

inventorying of all forms of geothermal resources of the Federal

lands and, where consistent with property rights and determined

by the Chairman to be in the national interest, of non-Federal

lands;

\(2\) conduct regional surveys, based upon such a general plan,

using innovative geological, geophysical, geochemical, and

stratagraphic drilling techniques, which will lead to a national

inventory of geothermal resources in the United States;

\(3\) publish and make available maps, reports, and other

documents developed from such surveys to encourage and facilitate

the commercial development of geothermal resources for beneficial

use and consistent with the national interest;

\(4\) make such recommendations for legislation or administrative

regulations as may from time to time appear to be necessary to

make Federal leasing, environmental and taxing policy for

geothermal resources consistent with known inventories of various

resource types, with the current state of technologies for

geothermal energy development, and with current evaluations of

the environmental impacts of such development; and

\(5\) participate with appropriate Federal agencies and

non-Federal entitles in research to develop, improve, and test

technologies for the discovery and evaluation of all forms of

geothermal resources, and conduct research into the principles

controlling the location, occurrence, size, temperature, energy

content, producibility, and economic lifetimes of geothermal

reservoirs.

SOURCE

(Pub. L. 93-410, title I, Sec. 103, Sept. 3, 1974, 88 Stat. 1082;

Pub. L. 95-238, title V, Sec. 503, Feb. 25, 1978, 92 Stat. 86; Pub.

L. 102-154, title I, Nov. 13, 1991, 105 Stat. 1000.)

AMENDMENTS

1978 - Subsec. (b)(4). Pub. L. 95-238 inserted \'\'or

administrative regulations\'\' after \'\'legislation\'\' and \'\',

environmental and taxing\'\' after \'\'leasing\'\'.

CHANGE OF NAME

\'\'United States Geological Survey\'\' substituted for \'\'Geological

Survey\'\' in subsec. (b) pursuant to provision of title I of Pub. L.

102-154, set out as a note under section 31 of Title 43, Public

Lands.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1126 of this title.

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Sec. 1124. Research and development

\(a\) The Chairman, acting through the appropriate Federal agencies

and in cooperation with non-Federal entities, shall initiate a

research and development program for the purpose of resolving all

major technical problems inhibiting the fullest possible commercial

utilization of geothermal resources in the United States. The

specific goals of such programs shall include -

\(1\) the development of effective and efficient drilling methods

to operate at high temperatures in formations of geothermal

interest;

\(2\) the development of reliable predictive methods and control

techniques for the production of geothermal resources from

reservoirs;

\(3\) the exploitation of new concepts for fracturing rock to

permit recovery of contained heat reserves;

\(4\) the improvement of equipment and technology for the

extraction of geothermal resources from reservoirs;

\(5\) the development of improved methods for converting

geothermal resources and byproducts to useful forms;

\(6\) the development of improved methods for controlling

emissions and wastes from geothermal utilization facilities,

including new monitoring methods to any extent necessary;

\(7\) the development and evaluation of waste disposal control

technologies and the evaluation of surface and subsurface

environmental effects of geothermal development;

\(8\) the improvement of the technical capability to predict

environmental impacts resulting from the development of

geothermal resources, the preparation of environmental impact

statements, and the assuring of compliance with applicable

standards and criteria;

\(9\) the identification of social, legal, and economic problems

associated with geothermal development (both locally and

regionally) for the purpose of developing policy and providing a

framework of policy alternatives for the commercial utilization

of geothermal resources;

\(10\) the provision for an adequate supply of scientists to

perform required geothermal research and development activities;

and

\(11\) the establishment of a program to encourage States to

establish and maintain geothermal resources clearinghouses, which

shall serve to (A) provide geothermal resources developers with

information with respect to applicable local, State, and Federal

laws, rules, and regulations, (B) coordinate the processing of

permit applications, impact statements, and other information

which geothermal resources developers are required to provide,

\(C\) encourage uniformity with respect to local and State laws,

rules, and regulations with respect to geothermal resources

development, and (D) encourage establishment of land use plans,

which would include zoning for geothermal resources development

and which would assure that geothermal resources developers will

be able to carry out development programs to the production

stage.

\(b\) The Chairman, acting through the appropriate Federal agencies

and in cooperation with non-Federal entities, shall implement a

coordinated program of research and development in order to

demonstrate the technical means for the extraction and utilization

of the resource base, including any by-products of such base, and

in order to accomplish the goals established by subsection (a) of

this section. Research authorized by this chapter having potential

applications in matters other than geothermal energy may be pursued

to the extent that the findings of such research can be published

in a form for utilization by others.

SOURCE

(Pub. L. 93-410, title I, Sec. 104, Sept. 3, 1974, 88 Stat. 1083.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1126 of this title.

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Sec. 1125. Geothermal demonstration plants and projects

\(a\) Design and construction

The Chairman, acting through the appropriate Federal agencies and

in cooperation with non-Federal entities, shall initiate a program

to design and construct geothermal demonstration plants. The

specific goals of such program shall include -

\(1\) the development of economical geothermal resources

production systems and components which meet environmental

standards;

\(2\) the design of plants to produce electric power and, where

appropriate, the large-scale production and utilization of any

useful by-products;

\(3\) the involvement of engineers, analysts, technicians, and

managers from industry field and powerplant development, which

shall lead to the early industrial exploitation of advanced

geothermal resources;

\(4\) the provision for an adequate supply of trained geothermal

engineers and technicians;

\(5\) the provision of experimental test beds for component

testing an evaluation by laboratories operated by the Federal

Government, industry, or institutions of higher education;

\(6\) the construction and operation of pilot plants; and

\(7\) the construction and operation of demonstration plants.

\(b\) Establishment of demonstration projects

In carrying out his responsibilities under this section, the

Chairman, acting through the appropriate Federal agencies, and in

cooperation with non-Federal entities, may provide for the

establishment of one or more demonstration projects utilizing each

geothermal resource base involved, which shall include, as

appropriate, all of the exploration, siting, drilling, pilot plant

construction and operation, demonstration plant construction and

operation, and other facilities and activities which may be

necessary for the generation of electric energy and the utilization

of geothermal resource byproducts.

\(c\) Agreements for the cooperative development of facilities for

demonstration

The Chairman, acting through the appropriate Federal agencies, is

authorized to investigate and enter into agreements for the

cooperative development of facilities to demonstrate the production

of energy from geothermal resources. The responsible Federal

agency may consider -

\(1\) cooperative agreements with utilities and non-Federal

governmental entities for construction of facilities to produce

energy for commercial disposition; and

\(2\) cooperative agreements with other Federal agencies for the

construction and operation of facilities to produce energy for

direct Federal consumption.

\(d\) Construction of demonstration projects without entering into

agreements

The responsible Federal agency is authorized to investigate the

feasibility of, construct, and operate, demonstration projects

without entering into cooperative agreements with respect to such

projects, if the Chairman finds that -

\(1\) the nature of the resource, the geographical location, the

scale and engineering design of the facilities, the techniques of

production, or any other significant factor of the proposal

offers opportunities to make important contributions to the

general knowledge of geothermal resources, the techniques of its

development, or public confidence in the technology; and

\(2\) there is no opportunity for cooperative agreements with any

utility or non-Federal governmental entity willing and able to

cooperate in the demonstration project under subsection (c)(1) of

this section, and there is no opportunity for cooperative

agreements with other Federal agencies under subsection (c)(2) of

this section.

\(e\) Factors considered for entry into agreements

Before favorably considering proposals under subsection (c) of

this section, the responsible Federal agency must find that -

\(1\) the nature of the resource, the geographical location, the

scale and engineering design of the facilities, the techniques of

production, or any other significant factor of the proposal

offers opportunities to make important contributions to the

general knowledge of geothermal resources, the techniques of its

development, or public confidence in the technology;

\(2\) the development of the practical benefits as set forth in

paragraph (1) of this subsection are unlikely to be accomplished

without such cooperative development; and

\(3\) where non-Federal participants are involved, the proposal

is not eligible for adequate Federal assistance under the loan

guaranty provisions of subchapter II of this chapter or such

assistance would not be adequate to satisfy the goals and

requirements of the demonstration program under this section.

\(f\) Limits on project costs

If the estimate of the Federal investment with respect to

construction and operation costs of any demonstration project

proposed to be established under this section exceeds \$10,000,000,

no amount may be appropriated for such project except as

specifically authorized by legislation hereafter enacted by the

Congress.

\(g\) Disposal of Federal property interests and resource byproducts

\(1\) At the conclusion of the program under this section or as

soon thereafter as may be practicable, the responsible Federal

agencies shall, by sale, lease, or otherwise, dispose of all

Federal property interests which they have acquired pursuant to

this section (including mineral rights) in accordance with existing

law and the terms of the cooperative agreements involved.

\(2\) The agency involved shall, under appropriate agreements or

other arrangements, provide for the disposition of geothermal

resource byproducts of the project administered by such agency.

SOURCE

(Pub. L. 93-410, title I, Sec. 105, Sept. 3, 1974, 88 Stat. 1084;

Pub. L. 95-238, title V, Sec. 504, Feb. 25, 1978, 92 Stat. 86.)

AMENDMENTS

1978 - Subsec. (e)(3). Pub. L. 95-238 inserted provisions

relating to goals and requirements of the demonstration program.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1126, 1162 of this title.

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Sec. 1126. Scientific and technical education

\(a\) Congressional declaration of policy

It is the policy of the Congress to encourage the development and

maintenance of programs through which there may be provided the

necessary trained personnel to perform required geothermal

research, development, and demonstration activities under sections

1123, 1124, and 1125 of this title.

\(b\) Support of educational programs in science and engineering

The National Science Foundation is authorized to support programs

of education in the sciences and engineering to carry out the

policy of subsection (a) of this section. Such support may include

fellowships traineeships, technical training programs, technologist

training programs, and summer institute programs.

\(c\) Selection of programs of education; coordination with National

Science Foundation

The National Science Foundation is authorized and directed to

coordinate its actions, to the maximum extent practicable, with the

Project or any permanent Federal organization or agency having

jurisdiction over the energy research and development functions of

the United States, in determining the optimal selection of programs

of education to carry out the policy of subsection (a) of this

section.

\(d\) International participation and cooperation

The National Science Foundation is authorized to encourage, to

the maximum extent practicable international participation and

cooperation in the development and maintenance of programs of

education to carrying out the policy of subsection (a) of this

section.

SOURCE

(Pub. L. 93-410, title I, Sec. 106, Sept. 3, 1974, 88 Stat. 1085.)

TRANSFER OF FUNCTIONS

Functions of National Science Foundation relating to geothermal

power development transferred to Administrator of Energy Research

and Development Administration (unless otherwise specifically

provided) by section 5814 of Title 42, The Public Health and

Welfare. Energy Research and Development Administration terminated

and functions vested by law in Administrator thereof transferred to

Secretary of Energy (unless otherwise specifically provided) by

sections 7151(a) and 7293 of Title 42.

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Sec. 1141. Establishment of loan guaranty program

\(a\) Congressional declaration of policy

It is the policy of the Congress to encourage and assist in the

commercial development of practicable means to produce useful

energy from geothermal resources with environmentally acceptable

processes. Accordingly, it is the policy of the Congress to

facilitate such commercial development by authorizing the Chairman

of the Project to designate an appropriate Federal agency to

guarantee loans for such purposes.

\(b\) Authorization of heads of designated agencies to guarantee

loans

In order to encourage the commercial production of energy from

geothermal resources, the head of the designated agency is

authorized to, in consultation with the Secretary of the Treasury,

guarantee, and to enter into commitments to guarantee, lenders

against loss of principal or interest on loans made by such lenders

to qualified borrowers for the purposes of -

\(1\) the determination and evaluation of the resource base;

\(2\) research and development with respect to extraction and

utilization technologies;

\(3\) acquiring rights in geothermal resources;

\(4\) development, construction, and operation of facilities for

the demonstration or commercial production of energy using

geothermal resources; or

\(5\) construction and operation of a new commercial,

agricultural, or industrial structure or facility or modification

and operation of an existing commercial, agricultural, or

industrial structure or facility, when geothermal hot water or

steam is to be used within or by such structure or facility, or

modification thereto, for the purposes of space heating or

cooling, industrial or agricultural processes, onsite generation

of electricity for use other than for sale or resale in commerce,

other commercial applications, or combinations of applications

separately eligible under this subchapter for loan guarantee

assistance.

\(c\) Extent of guarantee

Any guaranty under this subchapter shall apply only to so much of

the principal amount of any loan as does not exceed 75 percent of

the aggregate cost of the project with respect to which the loan is

made, except that any guarantee made for a loan to an electric,

housing, or other cooperative, or to a municipality (as defined in

section 796(7) of title 16), may apply to so much of the principal

amount of the loan as does not exceed 90 percent of the aggregate

cost of the project. In determining the aggregate cost of a

project for purposes of the preceding sentence, there shall be

excluded the cost of constructing electrical transmission lines to

the extent that the cost of constructing such lines exceeds 25

percent of the aggregate cost of the project (as determined without

regard to this sentence); except that the Secretary may waive or

limit the application of this sentence with respect to any project

located in the State of Hawaii upon a finding that such project is

remote from the area of primary consumption, that a transmission

line is required before the geothermal reservoir can be developed,

and that the particular transmission line involved will be used for

more than the plant which is the subject of the loan guarantee. In

the case of a guaranty for the purposes specified in subsection

(b)(5) of this section, the aggregate cost of the project shall be

deemed to be that portion of the total cost of construction and

operation which is directly related to the utilization of

geothermal energy within the structure or facility in question,

except that the aggregate cost of the project with respect to which

the loan is made may be the total cost including construction and

operation in cases where the facility or structure has been located

near a geothermal energy resource predominantly for the purpose of

utilizing geothermal energy, or as determined by the Secretary of

Energy the economic viability of the project is substantially

dependent upon the performance of the geothermal reservoir.

\(d\) Terms and conditions of guaranties

Loan guaranties under this subchapter shall be on such terms and

conditions as the head of the designated agency determines, except

that a guaranty shall be made under this subchapter only if -

\(1\) the loan bears interest at a rate not to exceed such annual

per centum on the principal obligation outstanding as the head of

the designated agency determines to be reasonable, taking into

account the range of interest rates prevailing in the private

sector for similar loans and risks by the United States;

\(2\) the terms of such loan require full repayment over a period

not to exceed thirty years, or the useful life of any physical

asset to be financed by such loan, whichever is less (as

determined by the head of the designated agency);

\(3\) in the judgment of the head of the designated agency, the

amount of the loan (when combined with amounts available to the

qualified borrower from other sources) will be sufficient to

carry out the project; and

\(4\) in the judgment of the head of the designated agency, there

is reasonable assurance of repayment of the loan by the qualified

borrower of the guaranteed indebtedness.

\(e\) Limitations on amount of guaranty; exceptions; procedures

applicable

The amount of the guaranty for any loan for a project shall not

exceed \$100,000,000: Provided, That in the case of a guaranty under

subsection (b)(5) of this section, the amount of the guaranty for

any loan for a project shall not exceed \$50,000,000 and the amount

of the guaranty for any combination of loans for any single

qualified borrower shall not exceed \$200,000,000, unless the

Secretary of Energy determines in writing that a guaranty in excess

of these amounts is in the national interest. Any such

determination shall be submitted to the Speaker of the House and

the Committee on Science, Space, and Technology of the House of

Representatives, and to the President of the Senate and the

Committee on Energy and Natural Resources of the Senate,

accompanied by a full and complete report on the proposed project

and guaranty. The proposed guaranty or commitment to guarantee

shall not be finalized under authority granted by this chapter

prior to the expiration of thirty calendar days (not including any

date on which either House of Congress is not in session) from the

date on which such report is received by the Speaker of the House

and the President of the Senate.

\(f\) \'\'Qualified borrower\'\' defined

As used in this subchapter, the term \'\'qualified borrower\'\' means

any public or private agency, institution, association,

partnership, corporation, political subdivision, or other legal

entity which (as determined by the head of the designated agency)

has presented satisfactory evidence of an interest in geothermal

resources and is capable of performing research or completing the

development and production of energy in an acceptable manner.

\(g\) Payment of interest; criteria

With respect to any guaranty which is issued after February 25,

1978, by, or in behalf of, any State, political subdivision, or

Indian tribe and which is either guaranteed under, or supported by

taxes levied by said issuer which are guaranteed under this

subchapter and for which the interest paid on such obligation and

received by the purchaser thereof is included in gross income for

the purposes of chapter 1 of title 26, the Secretary of Energy

shall pay to such issuer out of the fund established by this

subchapter such portion of the interest on such obligations, as

determined by the Secretary of Energy, in consultation with the

Secretary of the Treasury, to be appropriated after taking into

account current market yields (1) on obligations of such issuer, if

any, or (2) on other obligations with similar terms and conditions,

the interest on which is not so included in gross income for

purposes of chapter 1 of title 26, and in accordance with such

terms and conditions as the Secretary of Energy shall require in

consultation with the Secretary of the Treasury.

\(h\) Pledge of full faith and credit of United States to guaranties

The full faith and credit of the United States is pledged to the

payment of all guaranties issued under this subchapter with respect

to principal and interest.

\(i\) Fees for guaranties; amount, collection, etc.

The Secretary of Energy shall charge and collect fees for

guaranties in amounts sufficient in his judgment to cover

applicable administrative costs and probable losses on guaranteed

obligations, but in any event not to exceed 1 per centum per annum

of the outstanding indebtedness covered by each guaranty. Fees

collected under this subsection shall be deposited in the fund

established by this subchapter.

\(j\) Minimization of capital market impact of guaranties

The Secretary of the Treasury shall insure to the maximum extent

feasible that the timing, interest rate, and substantial terms and

conditions of any guaranty exceeding \$25,000,000 will have the

minimum possible impact on the capital markets of the United

States, taking into account other Federal direct and indirect

commercial securities activities.

SOURCE

(Pub. L. 93-410, title II, Sec. 201, Sept. 3, 1974, 88 Stat. 1086;

Pub. L. 95-91, title III, Sec. 301(a), title VII, Sec. 703, 707,

Aug. 4, 1977, 91 Stat. 577, 606, 607; Pub. L. 95-238, title V, Sec.

505-509, Feb. 25, 1978, 92 Stat. 86, 87; Pub. L. 96-294, title VI,

Sec. 641(1), June 30, 1980, 94 Stat. 768; Pub. L. 99-514, Sec. 2,

Oct. 22, 1986, 100 Stat. 2095; Pub. L. 103-437, Sec. 11(b), Nov. 2,

1994, 108 Stat. 4589.)

AMENDMENTS

1994 - Subsec. (e). Pub. L. 103-437 substituted \'\'Science, Space,

and Technology\'\' for \'\'Science and Technology\'\'.

1986 - Subsec. (g). Pub. L. 99-514 substituted \'\'Internal Revenue

Code of 1986\'\' for \'\'Internal Revenue Code of 1954\'\', which for

purposes of codification was translated as \'\'title 26\'\' thus

requiring no change in text.

1980 - Subsec. (c). Pub. L. 96-294 inserted provisions relating

to guarantees for loans to an electric, housing, or other

cooperative, or to a municipality (as defined in section 796(7) of

title 16).

1978 - Subsec. (b)(4). Pub. L. 95-238, Sec. 506, substituted

\'\'using\'\' for \'\'from\'\'.

Subsec. (b)(5). Pub. L. 95-238, Sec. 505, added par. (5).

Subsec. (c). Pub. L. 95-238, Sec. 507, inserted provisions

relating to guarantees for the purposes specified in subsec. (b)(5)

of this section.

Subsec. (e). Pub. L. 95-238, Sec. 508, inserted proviso relating

to guaranty under subsec. (b)(5) of this section, and provisions

relating to exceptions to limitations on amounts guaranteed and

procedures applicable to implementation of greater amounts, and

substituted \'\'\$100,000,000\'\' for \'\'\$25,000,000\'\' and

\'\'\$200,000,000\'\' for \'\'\$50,000,000\'\'.

Subsecs. (g) to (j). Pub. L. 95-238, Sec. 509, added subsecs. (g)

to (j).

CHANGE OF NAME

Committee on Science, Space, and Technology of House of

Representatives treated as referring to Committee on Science of

House of Representatives by section 1(a) of Pub. L. 104-14, set out

as a note preceding section 21 of Title 2, The Congress.

TRANSFER OF FUNCTIONS

\'\'Secretary of Energy\'\' substituted for \'\'Administrator\'\'

(meaning Administrator of Energy Research and Development

Administration, see section 501(2) of Pub. L. 95-238, title V, Feb.

25, 1978, 92 Stat. 86) in subsecs. (c), (e), (g), and (i), pursuant

to sections 301(a), 703, and 707 of Pub. L. 95-91, which are

classified to sections 7151(a), 7293, and 7297 of Title 42, The

Public Health and Welfare, and which terminated Energy Research and

Development Administration and transferred its functions and

functions of Administrator thereof (with certain exceptions) to

Secretary of Energy.

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

Sec. 1142. Payment of guaranteed obligation by Secretary of Energy

\(a\) Default by borrower and demand by holder of obligation of

unpaid amount; amount of payment by Secretary of Energy;

defenses available; forebearance by holder of obligation

If there is a default by the borrower, as defined in regulations

promulgated by the Secretary of Energy and set forth in the

guarantee contract, the holder of the obligation shall have the

right to demand payment of the unpaid amount from the Secretary of

Energy. Within such period as may be specified in the guarantee or

related agreements, the Secretary of Energy shall pay to the holder

of the obligation the unpaid interest on, and unpaid principal of

the guaranteed obligation as to which the borrower has defaulted,

unless the Secretary of Energy finds that there was no default by

the borrower in the payment of interest or principal or that such

default has been remedied. Nothing in this section shall be

construed to preclude any forebearance by the holder of the

obligation for the benefit of the borrower which may be agreed upon

by the parties to the guaranteed obligation and approved by the

Secretary of Energy.

\(b\) Rights and authorities of Secretary of Energy upon payment

If the Secretary of Energy makes a payment under subsection (a)

of this subsection, the Secretary of Energy shall be subrogated to

the rights of the recipient of such payment as specified in the

guarantee or related agreements including, where appropriate, the

authority (notwithstanding any other provision of law) to complete,

maintain, operate, lease, or otherwise dispose of any property

acquired pursuant to such guarantee or related agreements, or to

permit the borrower, pursuant to an agreement with the Secretary of

Energy, to continue to pursue the purposes of the project if the

Secretary of Energy determines this to be in the public interest.

The rights of the Secretary of Energy with respect to any property

acquired pursuant to such guarantee or related agreements, shall be

superior to the rights of any other person with respect to such

property.

\(c\) Rights and authorities of Attorney General upon default on any

guarantee

In the event of a default on any guarantee under this subchapter,

the Secretary of Energy shall notify the Attorney General, who

shall take such action as may be appropriate to recover the amounts

of any payments made under subsection (a) of this section,

including any payment of principal and interest under subsection

\(d\) of this section, from such assets of the defaulting borrower as

are associated with the project, or from any other security

included in the terms of the guarantee.

\(d\) Contracts to pay, and payment, from Geothermal Resources

Development Fund of principal and interest of unpaid balance of

obligation; preconditions

With respect to any obligation guaranteed under this subchapter,

the Secretary of Energy is authorized to enter into a contract to

pay, and to pay, holders of the obligation, for and on behalf of

the borrower, from the Geothermal Resources Development Fund, the

principal and interest payments which become due and payable on the

unpaid balance of such obligation if the Secretary of Energy finds

that -

\(1\) the borrower is unable to meet such payments and is not in

default; it is in the public interest to permit the borrower to

continue to pursue the purposes of such project; and the probable

net benefit to the Federal Government in paying such principal

and interest will be greater than that which would result in the

event of a default;

\(2\) the amount of such payment which the Secretary of Energy is

authorized to pay shall be no greater than the amount of

principal and interest which the borrower is obligated to pay

under the loan agreement; and

\(3\) the borrower agrees to reimburse the Secretary of Energy

for such payment on terms and conditions, including interest,

which are satisfactory to the Secretary of Energy.

SOURCE

(Pub. L. 93-410, title II, Sec. 202, Sept. 3, 1974, 88 Stat. 1087;

Pub. L. 95-91, title III, Sec. 301(a), title VII, Sec. 703, 707,

Aug. 4, 1977, 91 Stat. 577, 606, 607; Pub. L. 95-238, title V, Sec.

510, Feb. 25, 1978, 92 Stat. 88.)

AMENDMENTS

1978 - Subsec. (a). Pub. L. 95-238 substituted provisions

relating to default by the borrower and payment by the

Administrator of the guaranteed amount remaining unpaid upon demand

by the holder of the obligation, for provisions relating to

contracts to pay, and payment, by the head of the designated agency

to the lender on behalf of the borrower of interest charges on the

unpaid balance of any guaranteed loan where the borrower is unable

to meet the interest charges and the amount payable is the same as

the amount the borrower would be required to pay.

Subsec. (b). Pub. L. 95-238 substituted provisions relating to

rights and authorities of the Administrator subsequent to making a

payment under subsec. (a) of this section, for provisions relating

to rights and authorities of the head of the designated agency and

the Attorney General upon payment of the guaranty subsequent to

default on a guaranteed loan.

Subsecs. (c), (d). Pub. L. 95-238 added subsecs. (c) and (d).

TRANSFER OF FUNCTIONS

\'\'Secretary of Energy\'\' substituted in text for
\'\'Administrator\'\'

(meaning Administrator of Energy Research and Development

Administration, see section 501(2) of Pub. L. 95-238, title V, Feb.

25, 1978, 92 Stat. 86), pursuant to sections 301(a), 703, and 707

of Pub. L. 95-91, which are classified to sections 7151(a), 7293,

and 7297 of Title 42, The Public Health and Welfare, and which

terminated Energy Research and Development Administration and

transferred its functions and functions of Administrator thereof

(with certain exceptions) to Secretary of Energy.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1145 of this title.

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

Sec. 1143. Period of guaranties and interest assistance

No loan guaranties shall be made, or interest assistance contract

entered into, pursuant to this subchapter, after the expiration of

fiscal year 1993.

SOURCE

(Pub. L. 93-410, title II, Sec. 203, Sept. 3, 1974, 88 Stat. 1087;

Pub. L. 96-294, title VI, Sec. 641(2), June 30, 1980, 94 Stat. 769;

Pub. L. 102-558, title III, Sec. 301, Oct. 28, 1992, 106 Stat.

4224.)

AMENDMENTS

1992 - Pub. L. 102-558 substituted \'\'1993\'\' for \'\'1990\'\'.

1980 - Pub. L. 96-294 substituted reference to fiscal year 1990,

for reference to the ten-calendar-year period following Sept. 3,

1974\.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-558 deemed to have become effective Mar.

1, 1992, see section 304 of Pub. L. 102-558, set out as a note

under section 2062 of the Appendix to Title 50, War and National

Defense.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1144 of this title.

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

Sec. 1144. Geothermal Resources Development Fund

\(a\) Establishment; purposes for which Fund moneys may be expended

There is established in the Treasury of the United States a

Geothermal Resources Development Fund, which shall be available to

the head of the designated agency for carrying out the loan

guaranty and interest assistance program authorized by this

subchapter, including the payment of administrative expenses

incurred in connection therewith. Moneys in the fund not needed

for current operations may, with the approval of the Secretary of

the Treasury, be invested in bonds or other obligations of, or

guaranteed by, the United States.

\(b\) Deposits into the Fund

There shall be paid into the fund the amounts appropriated

pursuant to section 1164(c) of this title and such amounts as may

be returned to the United States pursuant to section 1142(b) of

this title, and the amounts in the fund shall remain available

until expended, except that after the expiration of the ten-year

period established by section 1143 of this title, such amounts in

the fund which are not required to secure outstanding guaranty

obligations shall be paid into the general fund of the Treasury.

\(c\) Borrowing authority of Secretary of Energy

If at any time the moneys available in the fund are insufficient

to enable the Secretary of Energy to discharge his responsibilities

under this subchapter he shall issue to the Secretary of the

Treasury, notes or other obligations in such forms and

denominations bearing such maturities, and subject to such terms

and conditions, as may be prescribed by the Secretary of the

Treasury. This borrowing authority shall be effective only to such

extent or in such amounts as are specified in appropriation Acts.

Such authorizations may be without fiscal year limitations.

Redemption of such notes or obligations shall be made by the

Secretary of Energy from appropriations or other moneys available

under this section. Such notes or other obligations shall bear

interest at a rate determined by the Secretary of the Treasury,

which shall not be less than a rate determined by taking into

consideration the average market yield on outstanding marketable

obligations of the United States of comparable maturities during

the month preceding the issuance of the notes or other

obligations. The Secretary of the Treasury shall purchase any

notes or other obligations issued hereunder and for that purpose he

is authorized to use as a public debt transaction the proceeds from

the sale of any securities issued under chapter 31 of title 31, and

the purposes for which securities may be issued under that chapter

are extended to include any purchase of such notes or obligations.

The Secretary of the Treasury may at any time sell any of the notes

or other obligations acquired by him under this subsection. All

redemptions, purchases, and sales by the Secretary of the Treasury

of such notes or other obligations shall be treated as public debt

transactions of the United States.

\(d\) Reports to Congress

Business-type financial reports covering the operations of the

fund shall be submitted to the Congress by the head of the

designated agency annually upon the completion of an appropriate

accounting period.

SOURCE

(Pub. L. 93-410, title II, Sec. 204, Sept. 3, 1974, 88 Stat. 1087;

Pub. L. 95-91, title III, Sec. 301(a), title VII, Sec. 703, 707,

Aug. 4, 1977, 91 Stat. 577, 606, 607; Pub. L. 95-238, title V, Sec.

511, Feb. 25, 1978, 92 Stat. 89.)

CODIFICATION

In subsec. (c), \'\'chapter 31 of title 31\'\' and \'\'that chapter\'\'

substituted for \'\'the Second Liberty Bond Act, as amended\'\' and

\'\'that Act\'\', respectively, on authority of Pub. L. 97-258, Sec.

4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which

enacted Title 31, Money and Finance.

AMENDMENTS

1978 - Subsecs. (c), (d). Pub. L. 95-238 added subsec. (c) and

redesignated former subsec. (c) as (d).

TRANSFER OF FUNCTIONS

\'\'Secretary of Energy\'\' substituted in subsec. (c) for

\'\'Administrator\'\' (meaning Administrator of Energy Research and

Development Administration, see section 501(2) of Pub. L. 95-238,

title V, Feb. 25, 1978, 92 Stat. 86), pursuant to sections 301(a),

703, and 707 of Pub. L. 95-91, which are classified to sections

7151(a), 7293, and 7297 of Title 42, The Public Health and Welfare,

and which terminated Energy Research and Development Administration

and transferred its functions and functions of Administrator

thereof (with certain exceptions) to Secretary of Energy.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1102, 1511, 1522, 1531 of

this title.

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

Sec. 1145. Community impact assistance functions of Secretary of Energy

\(a\) Determination of adequacy of community planning and development

financing in covered project localities; review of State and

local actions and sufficiency of available financing for

projects on leased Federal lands

The Secretary of Energy, for any project which has a guarantee

under this subchapter of not less than \$50,000,000 and which will

have an intended operating life of not less than five years to

satisfy the purposes under this subchapter for which the guarantee

has been made, shall endeavor to insure that, taking into

consideration appropriate local community action and all reasonably

available forms of assistance under this section and other Federal

and State statutes, that (FOOTNOTE 1) the impacts resulting from

the proposed project have been fully evaluated by the borrower, the

Secretary of Energy, and the Governor of the affected State, and

that effective steps have been taken or will be taken in a timely

manner to finance community planning and development costs

resulting from such project under this section, if applicable under

other provisions of law, or by other means. When the project will

be located on leased Federal lands, the Secretary of Energy shall

specifically review State and local actions under section 9(a) of

the Mineral Leasing Act Amendments of 1976 (Public Law 94-377) and

insure that any funds made available to the State pursuant to such

section 9(a) are used to finance such planning and development

costs before any Federal assistance under subsection (c) of this

section is considered or authorized.

(FOOTNOTE 1) So in original. The second \'\'that\'\' appearing in

this sentence probably should not appear.

\(b\) Discretionary activities for communities with projects not

subject to coverage

The Secretary of Energy, for projects not included under

subsection (a) of this section, may in his discretion consider the

community impacts which may result from such projects, and may take

such actions, under authority directly available to him under other

statutes or in coordination with other Federal agencies or the

State, as he considers necessary and appropriate to insure timely

and effective planning and financing for such community impacts.

\(c\) Guarantees, commitments to guarantee, direct loans, and grants;

scope, terms and conditions, amount, etc.

\(1\) In order to discharge his responsibilities under subsection

\(a\) of this section, and in accordance with such rules and

regulations as the Secretary of Energy in consultation with the

Secretary of the Treasury shall prescribe, and subject to such

terms and conditions as he deems appropriate, the Secretary of

Energy is authorized, for the purposes of financing essential

community development and planning which directly result from, or

are necessitated by, a project under subsection (a) of this

section, to -

\(A\) guarantee and make commitments to guarantee the payment of

interest on, and the principal balance of, obligations for such

financing issued by eligible States, political subdivisions, or

Indian tribes,

\(B\) guarantee and make commitments to guarantee the payment of

taxes imposed on such project by eligible non-Federal taxing

authorities which taxes are earmarked by such authorities to

support the payment of interest and principal on obligations for

such financing, and

\(C\) require that the qualified borrower receiving assistance

for a project under this section advance sums to eligible States,

political subdivisions, and Indian tribes to pay for the

financing of such development and planning: Provided, That the

State, political subdivision, or Indian tribe agrees to provide

tax abatement credits over the life of the project for such

payments by such applicant.

\(2\) No guarantee or commitment to guarantee under paragraph (1)

of this subsection shall exceed \$1,000,000.

\(3\) In the event of any default by the borrower in the payment of

taxes guaranteed by the Secretary of Energy under this section, the

Secretary of Energy shall pay out of the fund established by this

subchapter such taxes at the time or times they may fall due, and

shall have by reason of such payment a claim against the borrower

for all sums paid plus interest.

\(4\) If after consultation with (FOOTNOTE 2) State, political

subdivision, or Indian tribe, the Secretary of Energy finds that

the financial assistance programs of paragraph (1) of this section

will not result in sufficient funds to carry out the purposes of

this subsection, then the Secretary of Energy may -

(FOOTNOTE 2) So in original. Probably should be followed by

\'\'the\'\'.

\(A\) make direct loans to the eligible States, political

subdivisions, or Indian tribes for such purposes: Provided, That

such loans shall be made on such reasonable terms and conditions

as the Secretary of Energy shall prescribe: Provided further,

That the Secretary of Energy may waive repayment of all or part

of a loan made under this paragraph, including interest, if the

State or political subdivision or Indian tribe involved

demonstrates to the satisfaction of the Secretary of Energy that

due to a change in circumstances there will be net adverse

impacts resulting from such project that would probably cause

such State, subdivision, or tribe to default on the loan; or

\(B\) require that any community development and planning costs

which are associated with, or result from, such project, and

which are determined by the Secretary of Energy to be appropriate

for such inclusion, shall be included in the aggregate costs of

the project.

\(5\) The Secretary of Energy is further authorized to make grants

to States, political subdivisions, or Indian tribes for studying

and planning for the potential economic, environmental, and social

consequences of projects and for establishing related management

expertise.

\(6\) At any time the Secretary of Energy may, in consultation with

the Secretary of the Treasury, redeem, in whole or in part, out of

the fund established by this section, the debt obligations

guaranteed or the debt obligations for which tax payments are

guaranteed under this subsection.

\(7\) When one or more States, political subdivisions, or Indian

tribes would be eligible for assistance under this subsection, but

for the fact that construction and operation of the project occurs

outside its jurisdiction, the Secretary of Energy is authorized to

provide, to the greatest extent possible, arrangements for

equitable sharing of such assistance.

\(8\) Such amounts as may be necessary for direct loans and grants

pursuant to this subsection shall be available as provided in

annual authorization Acts.

\(9\) The Secretary of Energy, if appropriate, shall provide

assistance in the financing of up to 100 per centum of the costs of

the required community development and planning pursuant to this

section.

\(10\) In carrying out the provisions of this section, the

Secretary of Energy shall provide that title to any facility

receiving financial assistance under this section shall vest in the

applicable State, political subdivision, or Indian tribe, as

appropriate, and in the case of default by the borrower on a loan

guarantee made or committed under subsection (b) of this section,

such facility shall not be considered a project asset for the

purposes of section 1142 of this title.

\(11\) The Secretary of Energy shall not use his authority under

this subsection to provide Federal assistance unless any Federal

funds transferred pursuant to section 9(a) of the Mineral Leasing

Act Amendments of 1976 (Public Law 94-377) to the State from the

lease of Federal land for or associated with the project have been

or, with assurance, will be committed, to the maximum extent

allowable under Federal statutes, to financing such essential

community development or planning directly resulting from, or

necessitated by, a project on leased Federal lands.

SOURCE

(Pub. L. 93-410, title II, Sec. 205, as added Pub. L. 95-238, title

V, Sec. 512, Feb. 25, 1978, 92 Stat. 89; amended Pub. L. 95-91,

title III, Sec. 301(a), title VII, Sec. 703, 707, Aug. 4, 1977, 91

Stat. 577, 606, 607.)

REFERENCES IN TEXT

Section 9(a) of the Mineral Leasing Act Amendments of 1976

(Public Law 94-377), referred to in subsecs. (a) and (c)(11),

probably means the Federal Coal Leasing Amendments Act of 1976,

Pub. L. 94-377, Sec. 9(a), Aug. 4, 1976, 90 Stat. 1090, as amended,

which amended section 191 of this title.

TRANSFER OF FUNCTIONS

\'\'Secretary of Energy\'\' substituted in text for
\'\'Administrator\'\'

(meaning Administrator of Energy Research and Development

Administration, see section 501(2) of Pub. L. 95-238, title V, Feb.

25, 1978, 92 Stat. 86), pursuant to sections 301(a), 703, and 707

of Pub. L. 95-91, which are classified to sections 7151(a), 7293,

and 7297 of Title 42, The Public Health and Welfare, and which

terminated Energy Research and Development Administration and

transferred its functions and functions of Administrator thereof

(with certain exceptions) to Secretary of Energy.

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

Sec. 1146. Approval or disapproval of loan guarantee applications

The Secretary, within sixty days after June 30, 1980, shall

establish and implement procedures providing for a final decision

on any loan guarantee application within four months of the date of

filing. To the maximum extent practical, an applicant should be

advised (prior to the submission of the application) of all

information which will be required of the applicant in processing

the application; and the date of filing shall be considered to be

the date when all of such information has been submitted by the

applicant. Any application proposed and filed as of June 30, 1980,

shall be subject to final decision within not more than four months

after such date.

SOURCE

(Pub. L. 93-410, title II, Sec. 206, as added Pub. L. 96-294, title

VI, Sec. 641(3), June 30, 1980, 94 Stat. 769.)

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

Sec. 1147. Application of national environmental policy provisions

The Secretary shall ensure, to the maximum extent possible, that

any action undertaken pursuant to section 4332(2)(C) of title 42

which is associated with the granting of a loan guarantee under

this subchapter takes the maximum cognizance allowable under law of

any other action theretofore undertaken pursuant to such section

4332(2)(C) of title 42 with respect to the project which is the

subject of such loan guarantee, and that no such action associated

with the loan guarantee shall duplicate any action theretofore

undertaken under such section 4332(2)(C) of title 42 in connection

with such project, so long as all of the requirements which are

applicable to such project under such section 4332(2)(C) of title

42 will have been satisfied.

SOURCE

(Pub. L. 93-410, title II, Sec. 207, as added Pub. L. 96-294, title

VI, Sec. 641(3), June 30, 1980, 94 Stat. 769.)

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Sec. 1161. Protection of environment

In the conduct of its activities, the Project and any

participating public or private persons or agencies shall place

particular emphasis upon the objective of assuring that the

environment and the safety of persons or property are effectively

protected; and the program under subchapter I of this chapter shall

include such special research and development as may be necessary

for the achievement of that objective.

SOURCE

(Pub. L. 93-410, title III, Sec. 301, Sept. 3, 1974, 88 Stat.

1088.)Sec. 1162. Final report to President and Congress on terminated

projects

\(a\) Repealed. Pub. L. 104-66, title I, Sec. 1051(m), Dec. 21,

1995, 109 Stat. 717.

\(b\) No later than one year after the termination of each

demonstration project under section 1125 of this title, the

Chairman of the Project shall submit to the President and the

Congress a final report on the activities of the Project related to

each project, including his recommendations with respect to any

further legislative, administrative, and other actions which should

be taken in support of the objectives of this chapter.

SOURCE

(Pub. L. 93-410, title III, Sec. 302, Sept. 3, 1974, 88 Stat. 1088;

Pub. L. 104-66, title I, Sec. 1051(m), Dec. 21, 1995, 109 Stat.

717.)

AMENDMENTS

1995 - Subsec. (a). Pub. L. 104-66 struck out subsec. (a) which

read as follows: \'\'The Chairman of the Project shall submit to the

President and the Congress full and complete annual reports of the

activities of the Project, including such projections and estimates

as may be necessary to evaluate the progress of the national

geothermal energy research, development and demonstration program

and to provide the basis for as accurate a judgment as is possible

concerning the extent to which the objectives of this chapter will

have been achieved by June 30, 1980.\'\'

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Sec. 1162. Final report to President and Congress on terminated projects

\(a\) Repealed. Pub. L. 104-66, title I, Sec. 1051(m), Dec. 21,

1995, 109 Stat. 717.

\(b\) No later than one year after the termination of each

demonstration project under section 1125 of this title, the

Chairman of the Project shall submit to the President and the

Congress a final report on the activities of the Project related to

each project, including his recommendations with respect to any

further legislative, administrative, and other actions which should

be taken in support of the objectives of this chapter.

SOURCE

(Pub. L. 93-410, title III, Sec. 302, Sept. 3, 1974, 88 Stat. 1088;

Pub. L. 104-66, title I, Sec. 1051(m), Dec. 21, 1995, 109 Stat.

717.)

AMENDMENTS

1995 - Subsec. (a). Pub. L. 104-66 struck out subsec. (a) which

read as follows: \'\'The Chairman of the Project shall submit to the

President and the Congress full and complete annual reports of the

activities of the Project, including such projections and estimates

as may be necessary to evaluate the progress of the national

geothermal energy research, development and demonstration program

and to provide the basis for as accurate a judgment as is possible

concerning the extent to which the objectives of this chapter will

have been achieved by June 30, 1980.\'\'

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Sec. 1163. Transfer of functions

\(a\) Within sixty days after the effective date of the law

creating a permanent Federal organization or agency having

jurisdiction over the energy research and development functions of

the United States (or within sixty days after September 3, 1974, if

the effective date of such law occurs prior to September 3, 1974),

all of the research, development, and demonstration functions

(including the loan guaranty program) vested in the Project under

this chapter, along with related records, documents, personnel,

obligations, and other items to the extent necessary or

appropriate, shall, in accordance with regulations prescribed by

the Office of Management and Budget, be transferred to and vested

in such organization or agency.

\(b\) Upon the establishment of a permanent Federal organization or

agency having jurisdiction over the energy research and development

functions of the United States, and when all research and

development (and other) functions of the Project are transferred,

the members of the Project may provide advice and counsel to the

head of such organization or agency, in accordance with

arrangements made at that time.

SOURCE

(Pub. L. 93-410, title III, Sec. 303, Sept. 3, 1974, 88 Stat.

1088.)

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Sec. 1164. Authorization of appropriations

\(a\) Fiscal years ending June 30, 1976, and September 30, 1977,

through September 30, 1980

For the fiscal years ending June 30, 1976, and September 30,

1977, 1978, 1979, and 1980, only such sums may be appropriated as

the Congress may hereafter authorize by law.

\(b\) Fiscal year ending June 30, 1975

There are authorized to be appropriated to the National

Aeronautics and Space Administration not to exceed \$2,500,000 for

the fiscal year ending June 30, 1975, for the purpose of preparing

the program definition under section 1122(a) of this title.

\(c\) Additional sums for Project

In addition to sums authorized to be appropriated by subsection

\(b\) of this section, there are authorized to be appropriated to the

fund not to exceed \$50,000,000 annually, such sums to carry out the

provisions of the loan guaranty program by the Project under

subchapter II of this chapter.

SOURCE

(Pub. L. 93-410, title III, Sec. 304, Sept. 3, 1974, 88 Stat.

1089.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1144 of this title.

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Sec. 1164. Authorization of appropriations

\(a\) Fiscal years ending June 30, 1976, and September 30, 1977,

through September 30, 1980

For the fiscal years ending June 30, 1976, and September 30,

1977, 1978, 1979, and 1980, only such sums may be appropriated as

the Congress may hereafter authorize by law.

\(b\) Fiscal year ending June 30, 1975

There are authorized to be appropriated to the National

Aeronautics and Space Administration not to exceed \$2,500,000 for

the fiscal year ending June 30, 1975, for the purpose of preparing

the program definition under section 1122(a) of this title.

\(c\) Additional sums for Project

In addition to sums authorized to be appropriated by subsection

\(b\) of this section, there are authorized to be appropriated to the

fund not to exceed \$50,000,000 annually, such sums to carry out the

provisions of the loan guaranty program by the Project under

subchapter II of this chapter.

SOURCE

(Pub. L. 93-410, title III, Sec. 304, Sept. 3, 1974, 88 Stat.

1089.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1144 of this title.

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SUBCHAPTER I - GEOTHERMAL ENERGY COORDINATION AND MANAGEMENT

PROJECT

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in section 1161 of this title.

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SUBCHAPTER II - LOAN GUARANTIES

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 1121, 1125, 1164 of

this title.

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SUBCHAPTER III - GENERAL PROVISIONS

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