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PL 95–620, NOVEMBER 9, 1978, 92 Stat 3289

UNITED STATES PUBLIC LAWS

95th Congress - Second Session

Convening January 19, 1978

Copr. (C) West Group 1998. No Claim to Orig. U.S. Govt. Works

DATA SUPPLIED BY THE U.S. DEPARTMENT OF JUSTICE. (SEE SCOPE)

Additions and Deletions are not identified in this document.

PL 95–620 (HR 5146)

NOVEMBER 9, 1978

An Act to amend the Tariff Schedules of the United States to provide for the duty-free entry of competition bobsleds 

and luges.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

TITLE I—BOBSLEDS AND LUGES

Sec. 101. Subpart D of part 5 of schedule 7 of the Tariff Schedules of the United States (19 U.S.C. 1202) is amended

by striking out item 734.97 and inserting in lieu thereof the following:

“734.98 Bobsleds and luges of a kind used in international competition

international competition.......................... Free Free

734.99 Other......................................9% ad val. 45% ad val. “.

Sec. 102. The amendments made by the first section of this title shall apply with respect to articles entered, or withdrawn from warehouse, for comsumption on or after the date of enactment of this title.

TITLE I—GENERAL PROVISIONS

SEC. 101. SHORT TITLE; Table OF CONTENTS.

(a) Short Title.—This Act may be cited as the ” Powerplant and Industrial Fuel Use Act of 1978”.

(b) Table of Contents.—,

TITLE I—GENERAL PROVISIONS

Sec. 101. Short title; table of contents. Sec. 102. Findings; statement of purposes. Sec. 103. Definitions. Sec. 104. 

Territorial application.

TITLE II— NEW FACILITIES

SUBTITLE A—PROHIBITIONS

Sec. 201. New electric powerplants. Sec. 202. New major fuel-burning installations.

SUBTITLE B—EXEMPTIONS

Sec. 211. Temporary exemptions. Sec. 212. Permanent exemptions. Sec. 213. General requirements for exemptions. 

Sec. 214. Terms and conditions; compliance plans.
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TITLE III— EXISTING FACILITIES

SUBTITLE A—PROHIBITIONS

Sec. 301. Exislting electric powerplants. Sec. 302. Existing major fuel–burning installations. Sec. 303. Rules relating 

to case-by-case and category prohibitions.

TITLE III- EXISTING FACILITIES— Continued

SUBTITLE B—EXEMPTIONS

Sec. 311. Temporary exemptions. Sec. 312. Permanent exemptions. Sec. 313. General requirements for exemptions. 

Sec. 314. Terms and conditions; compliance plans.

TITLE IV— ADDITIONAL PROHIBITIONS; EMERGENCY AUTHORITIES

Sec. 401. Authority to prohibit use of natural gas in certain boilers used for space heating. Sec. 402. Prohibition on use 

of natural gas for decorative outdoor lighting. Sec. 403. Conservation in Federal facilities, contracts, and financial 

assistance programs. Sec. 404. Emergency authorities. Sec. 405. Authority to restrict incrased use of petroleum by 

existing powerplants.

TITLE V—SYSTEM COMPLIANCE OPTION

Sec. 501. Electric utility system compliance option.

TITLE VI— FINANCIAL ASSISTANCE

Sec. 601. Assistance to areas impacted by increased coal or uranium production. Sec. 602. Loans to assist powerplant 

acquisitions of air pollution control equipment.

TITLE VII— ADMINISTRATION AND ENFORCEMENT

SUBTITLE A—PROCEDURES

Sec. 701. Administrative procedures. Sec. 702. Judicial review.

SUBTITLE B—INFORMATION AND REPORTING

Sec. 721. Notice of violation; other general provisions. Sec. 722. Criminal penalties. Sec. 723. Civil penalties. Sec. 

724. Injunctions and other equitable relief. Sec. 725. Citizen suits.

SUBTITLE D—PRESERVATION OF CONTRACTUAL RIGHTS

Sec. 731. Preservation of contractual rights.

SUBTITLE E—STUDIES

Sec. 741. National coal policy study. Sec. 742. Coal industry performance and competition study. Sec. 743. Impact on 

employees. Sec. 744. Study of compliance problems of small electric utility systems. Sec. 745. Emissions monitoring. 

Sec. 746. Socioeconomic impacts of increased coal production and other energy development. Sec. 747. Use of petroleum and natural gas in combustors.

SUBTITLE F—APPROPRIATIONS AUTHORIZATION

Sec. 751. Authorization of appropriations.

SUBTITLE G—COORDINATION WITH OTHER PROVISIONS OF LAW

Sec. 761. Effect on environmental requirements. Sec. 762. Effect of orders under section 2 of ESECA; amendments to 

ESECA. Sec. 763. Environmental impact statements under NEPA.

TITLE VIII— MISCELLANEOUS PROVISIONS
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Sec. 801. Coal reserves disclosure. Sec. 802. Coal preparation facilities. Sec. 803. Railroad rehabilitation for carriage 

of coal. Sec. 804. Office of Rail Public Counsel. Sec. 805. Retroactive application of certain remedial orders. Sec. 806. 

Annual report. Sec. 807. Submission of reports.

TITLE IX— EFFECTIVE DATES

Sec. 901. Effective date. Sec. 902. Interim petition and consideration for certain exemptions.

SEC. 102. FINDINGS; STATEMENT OF PURPOSES.

(a) Findings.—The Congress finds that—,

(1) the protection of public health and welfare, the preservation of national security, and the regulation of interstate 

commerce require the establishment of a program for the expended use, consistent with applicable environmental 

requirements, of coal and other alternate fuels as primary energy sources for existing and new electric powerplants and 

major fuel–burning installations; and

(2) the purposes of this Act are furthered in cases in which coal or other alternate fuels are used by electric powerplants 

and major fuel-burning installations, consistent with applicable environmental requirements, as primary energy 

sources in lieu of natural gas or petroleum.

(b) Statement of Purposes.—The purpose of this Act, which shall be carried out in a manner consistent with applicable 

environmental requirements, are—,

(1) to reduce the importation of pertroleum and increase the Nation's capability to use indigenous energy resources of 

the United States to the extent such reduction and use further the goal of national energy self-sufficiency and otherwise 

are in the best interests of the United States;

(2) to conserve natural gas and petroleum for uses, other than electric utility or other industrial or commercial generation of steam or electricity, for which there are no feasible alternative fuels or raw material substitutes;

(3) to encourage and foster the greater use of coal and other alternate fuels, in lieu of natural gas and petroleum, as a 

primary energy source;

(4) to the extent permitted by this Act, to encourage the use of synthetic gas derived from coal or other alternate fuels;

(5) to encourage the rehabilitation and upgrading of railroad service and equipment necessary to transport coal to 

regions or States which can use coal in greater quantities;

(6) to prohibit or, as appropriate, minimize the use of natural gas and petroleum as a primary energy source and to 

conserve such gas and petroleum for the benefit of present and future generations;

(7) to encourage the modernization or replacement of existing and new electric powerplants and major fuel-burning 

installations which utilize natural gas or petroleum as a primary energy source and which cannot utilize coal or other 

alternate fuels where to do so furthers the conservation of natural gas and petroleum;

(8) to require that existing and new electric powerplants and major fuel-burning installations which utilize natural gas, 

petroleum, or coal or other alternate fuels pursuant to this Act comply with applicable environmental requirements;

(9) to insure that all Federal agencies utilize their authorities fully in furtherance of the purposes of this Act by carrying 

out programs designed to prohibit or discourage the use of natural gas and petroleum as a primary energy source and 

by taking such actions as lie within their authorities to maximize the efficient use of energy and conserve natural gas 

and petroleum in programs funded or carried out by such agencies;

(10) to insure that adequate supplies of natural gas are available for essential agricultural uses (including crop drying, 

seed drying, irrigation, fertilizer production, and production of essential fertilizer ingredients for such uses);

(11) to reduce the vulnerability of the United States to energy supply interruptions; and

(12) to regulate interstate commerce.

SEC. 103. DEFINITIONS.

(a) Unless otherwise expressly provided, for the purposes of this Act—,

(1) The term ” Secretary” means the Secretary of Energy.

(2) The term “person” means any (A) individual, corporation, company, partnership, association, firm, institution, 

society, trust, joint venture, or joint stock company, (B) any State, the District of Columbia, Puerto Rico, and any 
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territory or possession of the United States, or (C) any agency or instrumentality (including any municipality) thereof.

(3) (A) Except as provided in subparagraph (B), the term “natural gas” means any fuel consisting in whole or in part 

of—,

(i) natural gas;

(ii) liquid petroleum gas;

(iii) synthetic gas derived from petroleum or natural gas liquids; or

(iv) any mixture of natural gas and synthetic gas.

(B) The term “natural gas” does not include—,

(i) natural gas which is commercially unmarketable (either by reason of quality or quantity), as determined under rules 

prescribed by the Secretary;

(ii) natural gas produced by the user from a well the maximum effcient production rate of which is less than 250 

million Btu's per day;

(iii) natural gas to the extent the exclusion of such gas is provided for in subsection (b); or

(iv) synthetic gas, derived from coal or other alternate fuel, the heat content of which is less than 600 Btu's per cubic 

foot at 14.73 pounds per square inch (absolute) and 60 degrees Fahrenheit.

(4) The term “petroleum” means crude oil and products derived from crude oil, other than—,

(A) synthetic gas derived from crude oil;

(B) liquid petroleum gas;

(C) liquid, solid, or gaseous waste byproducts of refinery operations which are commercially unmarketable, either by 

reason of quality or quantity, as determined under rules prescribed by the Secretary; or

(D) petroleum coke or waste gases from industrial operations.

(5) The term “coal” means anthracite and bituminous coal, lignite, and any fuel derivative thereof.

(6) The term “alternate fuel” means electricity or any fuel, other than natural gas or petroleum, and includes—,

(A) petroleum coke, shale oil, uranium, biomass, and municipal, industrial, or agricultural wastes, wood, and renewable and geothermal energy sources;

(B) liquid, solid, or gaseous waste byproducts of refinery or industrial operations which are commercially unmarketable, either by reason of quality or quantity, as determined under rules prescribed by the Secretary; and

(C) waste gases from industrial operations.

(7) (A) The terms “electric powerplant” and “powerplant” mean any stationary electric generating unit, consisting of a 

boiler, a gas turbine, or a combined cycle unit, which produces electric power for purposes of sale or exchange and—,

(i) has the design capability of consuming any fuel (or mixture thereof) at a fuel heat input rate of 100 million Btu's per 

hour or greater; or

(ii) is in a combination of two or more electric generating units which are located at the same site and which in the 

aggregate have a design capability of consuming any fuel (or mixture thereof) at a fuel heat input rate of 250 million 

Btu's per hour or greater.

(B) For purposes of subparagraph (A), the term “electric generating unit” does not include—,

(i) any electric generating unit subject to the licensing jurisdiction of the Nuclear Regulatory Commission; and

(ii) any cogeneration facility, less than half of the annual electric power generation of which is sold or exchanged for 

resale, as determined by the Secretary.

(C) For purposes of clause (ii) of subparagraph (A), there shall be excluded any unit which has a design capability to 

consume any fuel (including any mixture thereof) that does not equal or exceed 100 million Btu's per hour and the 

exclusion of which for purposes of such clause is determined by the Secretary, by rule, to be appropriate.

(8) The term “new electric powerplant” means—,

(A) any electric powerplant for which construction or acquisition began on a date on or after the date of enactment of 

this Act; and

(B) any electric powerplant for which construction or acquisition began on a date after April 20, 1977, and before the 

date of the enactment of this Act, unless the Secretary finds the construction or acquisition of such powerplant could 

not be canceled, rescheduled, or modified to comply with the applicable requirements of this Act without—,

(i) adversely affecting electric system reliability (as determined by the Secretary after consultation with the Federal 

Energy Regulatory Commission and the appropriate State authority), or

(ii) imposing substantial financial penalty (as determined under rules prescribed by the Secretary).

(9) (A) The term “existing electric powerplant” means any electric powerplant other than a new electric powerplant.
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(B) Any powerplant treated under this Act as an existing electric powerplant shall not be treated thereafter as a new 

electric powerplant merely by reason of a transfer of ownership.

(10) (A) The terms “major fuel-burning installation” and “installation” means a stationary unit consisting of a boiler, 

gas turbine unit, combined cycle unit, or internal combustion engine which—,

(i) has a design capability of consuming any fuel (or mixture thereof) at a fuel heat input rate of 100 million Btu's per 

hour or greater; or

(ii) is in a combination of two or more such units which are located at the same site and which in the aggregate have a 

design capability of consuming any fuel (or mixture thereof) at a fuel heat input rate of 250 million Btu's per hour or 

greater.

(B) The terms “major fuel-burning installation” and “installation” do not include—,

(i) any electric powerplant; or

(ii) any pump or compressor used solely in connection with the production, gathering, transmission, storage, or distribution of gases or liquids, but only if there is certification to the Secretary of such use (in accordance with rules 

prescribed by the Secretary).

(C) For purposes of clause (ii) of subparagraph (A), there shall be excluded any unit which has a design capability to 

consume any fuel (including any mixture thereof) that does not equal or exceed 100 million Btu's per hour and the 

exclusion of which for purposes of such clause is determined by the Secretary, by rule to be appropriate.

(11) The term “new major fuel-burning installation” means—,

(A) any major fuel-burning installation on which construction or acquisition began on a date on or after the date of the 

enactment of this Act; and

(B) any major fuel-burning installation on which construction or acquisition began on a date after April 20, 1977, and 

before the date of the enactment of this Act, unless the Secretary finds the construction or acquisition of such installation could not be canceled, rescheduled, or modified to comply with applicable requirements of this Act 

without—,

(i) incurring significant operational detriment of the unit (as determined by the Secretary); or

(ii) imposing substantial financial penalty (as determined under rules prescribed by the Secretary).

(12) (A) The term “existing major fuel-burning installation” means any installation which is not a new major 

fuel-burning installation.

(B) Such term does not include a major fuel-burning installation for the extraction of mineral resources located—,

(i) on or above the Continental Shelf of the United States, or

(ii) on wetlands areas adjacent to the Continental Shelf of the United States, where coal storage is not practicable or 

would produce adverse effects on environmental quality.

(C) Any installation treated as an existing major fuel-burning installation shall not be treated thereafter as a new major 

fuel–burning installation merely by reason of a transfer of ownership.

(13) The term “construction or acquisition began” means, when used with reference to a certain date, that—,

(A) construction in accordance with final drawings or equivalent design documents (as defined by the Secretary, by 

rule) began on or after that date; or

(B) (1) construction or acquisition had been contracted for on or after that date, or (ii) if the construction or acquisition

had been contracted for before such date, such construction or acquisition could be canceled, rescheduled, or 

modified to comply with the applicable requirements of this Act—,

(I) without imposing substantial financial penalty, as determined under rules prescribed by the Secretary;

(II) in the case of a powerplant, without adversely affecting electric system reliability (as determined by the Secretary 

after consultation with the Federal Energy Regulatory Commission and the appropriate State authority); or

(III) in the case of a major fuel-burning installation, without incurring significant operational detriment of the unit (as 

determined by the Secretary).

(14) The term “construction” means substantial onsite construction or reconstruction, as defined by rule by the Secretary.

(15) The term “primary energy source” means the fuel or fuels used by any existing or new electric powerplant or 

major fuel–burning installation, except it does not include, as determined under rules prescribed by the Secretary—,

(A) the minimum amounts of fuel required for unit ignition, startup, testing, flame stabilization, and control uses, and

(B) the minimum amounts of fuel required to alleviate or prevent (i) unanticipated equipment outages and (ii) emergencies directly affecting the public health, safety, or welfare which would result from electric power outages.
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(16) The term “site limitation” means, when used with respect to any powerplant or installation, any specific physical 

limitation associated with a particular site which relates to the use of coal or other alternate fuels as a primary energy 

source for such powerplant or installation, such as—,

(A) inaccessibility to coal or other alternate fuels;

(B) lack of transportation facilities for coal or other alternate fuels;

(C) lack of adequate land or facilities for the handling, use, and storage of coal or other alternate fuels;

(D) lack of adequate land or facilities for the control or disposal of wastes from such powerplant or installation, including lack of pollution control equipment or devices necessary to assure compliance with applicable environmental requirements; and

(E) lack of an adequate and reliable supply of water, including water for use in compliance with applicable environmental requirements.

(17) The term “applicable environmental requirements” includes—,

(A) any standard, limitation, or other requirement established by or pursuant to Federal or State law (including any 

final order of any Federal or State court) applicable to emissions of environmental pollutants (including air and 

water pollutants) or disposal of solid waste residues resulting from the use of coal or other alternate fuels or natural 

gas or petroleum as a primary energy source or from the operation of pollution control equipment in connection with 

such use, taking into account any variance of law granted or issued in accordance with Federal law or in accordance 

with State law to the extent consistent with Federal law; and

(B) any other standard, limitation, or other requirement established by, or pursuant to, the Clean Air Act, the Federal 

Water Pollution Control Act, the Solid Waste Disposal Act, or the National Environmental Policy Act of 1969.

(18) (A) The term “peakload powerplant” means a powerplant the electrical generation of which in kilowatt hours 

does not exceed, for any 12–calendar–month period, such powerplant's design capacity multiplied by 1,500 hours.

(B) The term “intermediate load powerplant” means a powerplant (other than a peakload powerplant), the electrical 

generation of which in kilowatt hours does not exceed, for any 12–calendar–month period, such powerplant's design 

capacity multiplied by 3,500 hours.

(D) Not later than 90 days after the date of the enactment of this Act, the Federal Energy Regulatory Commission shall 

prescribe rules under which a powerplant's design capacity may be determined for purposes of this paragraph.

(19) the term “cogeneration facility” means an electric powerplant or a major fuel-burning installation which produces—,

(A) electric power; and

(B) any other form of useful energy (such as steam, gas, or heat) which is, or will be, used for industrial, commercial, 

or space heating purposes.

(20) The term “cost”, unless the context indicates otherwise, means total costs (both operating and capital) incurred 

over the estimated remaining useful life of an electric powerplant or major fuel–burning installation, discounted to 

present value, as determined by the Secretary (in the case of powerplants, in consultation with the State regulatory 

authorities). In the case of an electric powerplant, such costs shall take into account any change required in the use of 

existing electric powerplants in the relevant dispatching system and other economic factors which are included in 

planning for the production, transmission, and distribution of electric power within such system.

(21) The term “State regulatory authority” means any State agency which has ratemaking authority with respect to the 

sale of electricity by any State regulated electric utility.

(22) The Term “air pollution control agency” has the same meaning as given such term by section 302(b) of the Clean 

Air Act.

(23) The term “electric utility” means any person, including any affiliate, or Federal agency which sells electric power.

(24) The term “affiliate”, when used in relation to a person, means another person which controls, is controlled by, or 

is under common control with, such person.

(25) The term “Federal agency” means each authority of the Government of the United States, whether or not it is 

within or subject to review by another agency, but does not include—,

(A) the Congress;

(B) the courts of the United States;

(C) the governments of the territories or possessions of the United States; and

(D) the government of the District of Columbia.

(26) The term “Btu” means British thermal unit.
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(27) the term “Mcf” means, when used in relation to natural gas, 1,000 cubic feet of natural gas.

(28) The term “mixture”, when used in relation to fuels used in a unit, means a mixture of such fuels or a combination 

of such fuels used simultaneously or alternately in such unit.

(29) The term “fluidized bed combustion” means combustion of fuel in connection with a bed of inert material, such as 

limestone or dolomite, which is held in a fluid-like state by the means of air or other gases being passed through such 

materials.

(b) SPECIAL RULES RELATING TO DEFINITIONS OF NATURAL GAS AND ALTERNATE FUEL.—(1) 

Subject to paragraph (2), natural gas which is to be used by a powerplant or major fuel-burning installation shall, for 

purposes of this Act (other than this subsection), be excluded from the definition of “natural gas” under subsection (a) 

(3) (B) (iii) and shall be included within the definition of “alternate fuel” under subsection (a) (6) if the person proposing to use such natural gas certifies to the Secretary (together with such supporting documents as the Secretary may 

require) that—,

(A) such person owns, or is entitled to receive, at the point of manufacture, synthetic gas derived from coal or another 

alternate fuel;

(B) the BTU content of such synthetic gas is equal to, or greater than, the Btu content of the natural gas to be covered 

by this subsection by reason of such certification, plus the approximate Btu content of any natural gas consumed or 

lost in transportation;

(C) such person delivers, or arranges for the delivery of, such synthetic gas to a pipeline or pipelines which by 

transport or displacement are capable of delivering such synthetic gas, mixed with natural gas, to such person; and

(D) all necessary permits, licenses, or approvals from appropriate Federal, State, and local agencies (including Indian 

tribes) have been obtained for construction and operation of the facilities for the manufacture of the synthetic gas 

involved, except that for purposes of the prohibition under section 201(2) against powerplants being constructed 

without the capability of using coal or another alternate fuel, only permits, licenses, and approvals for the construction 

of such synthetic gas facilities shall be required under this subparagraph to be certified and documented.

(2) The application of paragraph (1) with respect to the use of natural gas by any powerplant or major-fuel burning 

installation shall be conditioned on the person using such natural gas submitting to the Secretary a report not later than 

one year after certification is made under paragraph (1), and annually thereafter, containing the following information:

(A) the source, amount, quality, and point of delivery to the pipeline of the synthetic gas to which paragraph (1) applied during the annual period ending with the calendar month preceding the date of such report; and

(B) the amount, quality, and point of delivery by the pipeline to such person of the natural gas covered by paragraph 

(1) which is used by the person during such annual period.

(3) In the case of any boiler subject to a prohibition under section 401, the preceding provisions of this subsection shall 

apply with respect to such boiler to the same extent and in the same manner as they apply in the case of major 

fuel-burning installations.

(4) For purposes of this subsection, the term “pipeline” means any interstate or intrastate pipeline or local distribution 

company.

SEC. 104. TERRITORIAL APPLICATION.

The provisions of this Act shall apply in all the States, Puerto Rico, and the territories and possessions of the United 

States, except that—,

(1) the provisions of titles II and III (other than section 301) shall only apply to powerplants and installations situated 

within the contiguous 48 States, Alaska, and the District of Columbia; and

(2) the provisions of section 301 shall only apply to powerplants situated within the contiguous 48 States and the 

District of Columbia.

TITLE II— NEW FACILITIES

Subtitle A—Prohibitions

SEC. 201. NEW ELECTRIC POWERPLANTS.

Except to such extent as may be authorized under subtitle B—,
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(1) natural gas or petroleum shall not be used as a primary energy source in any new electric powerplant; and

(2) no new electric powerplant may be constructed without the capability to use coal or any other alternate fuel as a 

primary energy source.

SEC. 202. NEW MAJOR FUEL- BURNING INSTALLATIONS.

(a) GENERAL PROHIBITION.— Except to such extent as may be authorized under subtitle B, natural gas or petroleum shall not be used as a primary energy source in a new major fuel-burning installation consisting of a boiler.

(b) AUTHORITY OF SECRETARY TO PROHIBIT NONBOILERS FROM USING NATURAL GAS or PETROLEUM.—(1) The Secretary may, by rule, prescribe categories (identified in such rules) of new major 

fuel-burning installations, other than boilers, in which natural gas or petroleum, or both, shall be prohibited from being 

used as a primary energy source. In identifying categories of new major fuel-burning installations pursuant to this 

paragraph, the Secretary shall take into account any special circumstances or characteristics of each category of such 

installations (such as the technical feasibility of burning coal or other alternate fuels and the size or geographic location of such installations). The application of any such final rule in the case of any new major fuel–burning installation 

subject to such rule shall be stayed pending a resolution (including judicial review) of any petition for an exemption 

for such installation which is filed with the Secretary not later than 60 days after such final rule is published under 

section 702(a). Any such final rule shall not apply in the case of any installation with respect to which a comparable 

prohibition was issued by order (or was proposed but was not issued because it was demonstrated that it could qualify 

for an exemption under subtitle B).

(2)(A) The Secretary may, by order, prohibit the use of natural gas or petroleum, or both, as a primary energy source in 

any new major fuel–burning installation, other than a boiler, if such installation is not, at the time of the issuance of the 

proposed order, in a category identified in a final rule issued under paragraph (1).

(B) Subject to subpragraph (C), the Secretary shall not issue a final order under this paragraph with respect to any 

installation if it is demonstrated that there would have been granted an exemption for such installation if such prohibition had been established by rule pursuant to paragraph (1) rather than by order pursuant to this paragraph, except 

that if a temporary exemption would have been granted, such a final order may be issued but may not take effect until 

such time as such temporary exemption would have terminated.

(C) In any case in which an order is not issued by reason of subparagraph (B) or in which the effective date of such 

order is delayed under subparagraph (B), the Secretary shall take such steps as may be necessary to assure the installation involved complies with the same requirements (including provisions of section 214(a)) as would have been 

applicable if an exemption had been granted based upon the grounds for which the order is not issued or the effective 

date of which is delayed.

(3) A prohibition under this subsection shall only apply with respect to an installation for which construction or acquisition began on or after the date of the publication under section 701(b) of the proposed rule or order establishing 

the prohibition. Any installation not subject to such a prohibition because of the preceding sentence shall be considered an existing major fuel-burning installation for purposes of title III.

SUBTITLE B—EXEMPTIONS

SEC. 211. TEMPORARY EXEMPTIONS.

(a) GENERAL EXEMPTION DUE TO LACK OF ALTERNATE FUEL SUPPLY, SITE LIMITATIONS, OR 

ENVIRONMENTAL REQUIREMENTS.— After consideration of a petition (and comments thereon) for an exemption for a powerplant or installation from one or more of the prohibitions of subtitle A, the Secretary shall, by 

order, grant an exemption under this subsection for the use of natural gas or petroleum, if he finds that the petitioner 

has demonstrated that for the period of the proposed exemption, despite diligent good faith efforts—,

(1) it is likely that an adequate and reliable supply of coal or other alternate fuel of the quality necessary to conform 

with design and operational requirements for use as a primary energy source will not be available to such powerplant 

or installation at a cost (taking into account associated facilities for the transportation and use of such fuel) which, 

based upon the best practicable estimates, does not substantially exceed the cost, as determined by rule by the Secretary, of using imported petroleum as a primary energy source;
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(2) one or more site limitations exist which would ot permit the location or operation of such a powerplant or installation using coal or any other alternate fuel as a primary energy source; or

(3) the prohibitions of section 201 or 202 could not be satisfied without violating applicable environmental requirements.

(b) Temporary Exemption Based Upon Future Use of Synthetic Fuels.— After consideration of a petiton (and comments thereon) for an exemption for a powerplant or installation from one or more of the prohibitions of subtitle A, the 

Secretary shall, by order, grant an exemption under this subsection for the use of natural gas or petroleum if he finds 

that the petitoner has demonstrated that—,

(1) the petitioner will comply with the prohibitions of subitile A by the end of the proposed exemption by the use of a 

synthetic fuel derived from coal or another alternate fuel; and

(2) the petitioner is not able to comply with such prohibitions by the use of such synthetic fuel until the end of the 

proposed exemption.

The effectiveness of an exemption under this subsection is conditioned on the petitioner filing and maintaining a 

compliance plan meeting the requirements of section 214 (b).

(c) TEMPORARY PUBLIC INTEREST EXEMPTION.— After consideration of a petition (and comments thereon) 

for an exemption for a powerplant or installation from one or more of the prohibitions of subtitle A, the Secretary may, 

by order, grant an exemption under this subsection for the use of natural gas or petroleum, if he finds that the petitioner 

has demonstrated that for the period of the proposed exemption the issuance of such exemption would be in the public 

interest and would be consistent with the purposes of this Act.

(d) TEMPORARY EXEMPTION FOR THE USE OF PETROLEUM BY CERTAIN INSTALLATIONS.—After 

consideration of a petition (and comments thereon) for an exemption from the prohibition of the use of petroleum 

under section 202 for an installation with a design capacity of consuming any fuel (or any mixture thereof) at a fuel 

heat input rate which does not exceed 300 million Btu's per hour, the Secretary may, by order, grant an exemption 

under this subsection for the use of petroleum if he finds that the petitioner has demonstrated, by the existence of 

binding contracts or other evidence, including appropriate State construction permits, that he will use coal or another 

alternate fuel for at least 75 percent of the annual fuel heat input rate upon the expiration of such exemption. For 

provisions relating to authority to receive, consider and granting (or denying) certain petitions for an exemption under 

this subsection, see section 902(b).

(e) DURATION OF TEMPORARY EXEMPTIONS.—(1) Except as provided in paragraph (2), exemptions under 

this section for any powerplant or installation may not exceed, taking into account any extension or renewal, 5 years.

(2) (A) An exemption under subsection (a) (1) may be granted for a period of more than 5 years, but may not exceed, 

taking into account any extension or renewal, 10 years.

(B) An exemption under subsection (b) may be extended beyond the 5–year limit under paragraph (1), but such exemption, so extended, may not exceed 10 years.

(3) If an exemption is granted for any powerplant or installation before the powerplant or installation is placed in 

service, the period before it is placed in service shall not be taken into account in computing the 5–year and the 

10–year limitations of paragraphs (1) and (2).

SEC. 212. PERMANENT EXEMPTIONS.

(a) PERMANENT EXEMPTION DUE TO LACK OF ALTERNATE FUEL SUPPLY, SITE LIMITATIONS, ENVIRONMENTAL REQUIREMENTS, OR ADEQUATE CAPITAL.—(1) After consideration of a petition (and 

comments thereon) for an exemption for a powerplant or installation from one or more of the prohibitions of subtitle 

A, the Secretary shall, by order, grant a permanent exemption under this subsection with respect to natural gas or 

petroleum, if he finds that the petitioner has demonstrated that despite diligent good faith efforts—,

(A) it is likely that an adequate and reliable supply of coal or other alternate fuel of the quality necessary to conform 

with design and operational requirements for use as a primary energy source (i) will not be available within the first 10 

years of the useful life of the powerplant or installation, or (ii) will not be available at a cost (taking into account 

associated facilities for the transportation and use of such fuel) which, based upon the best practicable estimates, does 

not substantially exceed the cost, as determined by rule by the Secretary, of using imported petroleum as a primary 
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energy source during the useful life of the powerplant or installation involved;

(B) one or more site limitations exist which would not permit the location or operation of such powerplant or installation using coal or any other alternate fuel as a primary energy source;

(C) the prohibitions of subtitle A could not be satisfied without violating applicable environmental requirements; or

(D) the required use of coal or any other alternate fuel would not allow the petitioner to obtain adequate capital for the 

financing of such powerplant or installation.

(2) The demonstration required to be made by a petitioner under paragraph (1) shall—,

(A) in the case of a new major fuel-burning installation, be made with respect to the site of such installation proposed 

by the petitioner; and

(B) in the case of a new electric powerplant, be made with respect to the site of such powerplant and reasonable alternative sites.

(3) Notwithstanding the preceding provisions of this subsection, a powerplant which has been granted an exemption 

under subsection (h) may not be granted an exemption under this subsection.

(b) PERMANENT EXEMPTION DUE TO CERTAIN STATE OR LOCAL REQUIREMENTS.— After consideration of a petition (and comments thereon) for an exemption for a powerplant or installation from one or more of the 

prohibitions of subtitle A, the Secretary may, by order, grant a permanent exemption under this subsection with respect to natural gas or petroleum, if he finds that the petitioner has demonstrated that—,

(1) with respect to the proposed site of the powerplant or installation, the construction or operation of such a facility 

using coal or any other alternate fuel is infeasible because of a State or local requirement (other than a building code or 

a nuisance or zoning law);

(2) in the case of a powerplant, there is no reasonable alternative site for such powerplant which meets the criteria set 

forth in subsection (a) (1) (A) through (D); and

(3) the granting of the exemption would be in the public interest and would be consistent with the purposes of this Act.

(c) PERMANENT EXEMPTION FOR COGENERATION.— After consideration of a petition (and comments 

thereon) for an exemption from one or more of the prohibitions of subtitle A for a cogeneration facility, the Secretary 

may, by order, grant a permanent exemption under this subsection with respect to natural gas or petroleum, if he—,

(1) finds that the petitioner has demonstrated that economic and other benefits of cogeneration are unobtainable unless 

petroleum or natural gas, or both, are used in such facility, and

(2) includes in the final order a statement of the basis for such finding.

(d) PERMANENT EXEMPTION FOR CERTAIN MIXTURES CONTAINING NATURAL GAS OR PETROLEUM.—(1) After consideration of a petition (and comments thereon) for an exemption for a powerplant or installation from one or more of the prohibitions of subtitle A, the Secretary shall, by order, grant a permanent exemption 

under this subsection with respect to natural gas or petroleum, if he finds that the petitioner has demonstrated that—,

(A) the powerplant or installation uses, or proposes to use, a mixture of petroleum or natural gas and coal or another 

alternate fuel as a primary energy source; and

(B) the amount of the petroleum or natural gas used in such mixture will not exceed the minimum percentage of the 

total Btu heat input of the primary energy sources of such powerplant or installation needed to maintain reliability of 

operation of such powerplant or installation consistent with maintaining a reasonable level of fuel efficiency, as determined in accordance with rules prescribed by the Secetary.

(2) In the case of a new major fuel-burning installation, the percentage determined by the Secretary under subparagraph (B) of paragraph (1) shall not be less than 25 percent.

(e) PERMANENT EXEMPTION FOR EMERGENCY PURPOSES.— After consideration of a petition (and comments thereon) for an exemption from one or more of the prohibitions of subtitle A for a powerplant or installation, the 

Secretary shall, by order, grant a permanent exemption under this subsection with respect to natural gas or petroleum, 

if he finds that the petitioner has demonstrated that such powerplant or installation will be maintained and operated

only for emergency purposes (as defined by rule by the Secretary).

(f) PERMANENT EXEMPTION FOR POWERPLANTS NECESSARY TO MAINTAIN RELIABILITY OF 

SERVICE.— After consideration of a petition (and comments thereon) for an exemption for a powerplant from one or 

more of the prohibitions of subtitle A, the Secretary may, by order, grant a permanent exemption under this subsection 

with respect to natural gas or petroleum if he finds that the petitioner has demonstrated that—,

(1) such exemption is necessary to prevent impairment of reliability of service, and

(2) the petitioner, despite diligent good faith efforts, is not able to make the demonstration necessary to obtain an 
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exemption under subsection (a) or (b) in the time required to prevent such impairment of service.

(g) PERMANENT EXEMPTION FOR PEAKLOAD POWERPLANTS.— After consideration of a petition (and 

comments thereon) for an exemption for a powerplant—,

(1) in the case of a proposed use of petroleum, the Secretary shall, by order, grant a permanent exemption under this 

subsection with respect to petroleum if the petitioner certifies that such powerplant is to be operated solely as a 

peakload powerplant; and

(2) in the case of a proposed use of natural gas, the Secretary shall, by order, grant a permanent exemption under this 

subsection with respect to natural gas if—,

(A) the Administrator of the Environmental Protection Agency (or the appropriate State air pollution control agency) 

certifies to the Secretary that the use by such powerplant of coal or any available alternate fuel as a primary energy 

source will cause or contribute to a concentration, in an air quality control region or any area within such region, of 

a pollutant for which any national ambient air quality standard is or would be exceeded; and

(B) the petitioner certifies that such powerplant is to be operated solely as a peakload powerplant.

(h) PERMANENT EXEMPTION FOR INTERMEDIATE LOAD POWER- PLANTS.—, (1) After consideration of a 

petition (and comments thereon) for an exemption from one or more of the prohibitions of subtitle A on the use of 

petroleum by a powerplant, the Secretary may grant a permanent exemption under this subsection for such use, by 

order, if he finds that the petitioner has demonstrated that—,

(A) the Administrator of the Environmental Protection Agency (or the appropriate State air pollution control agency) 

certifies to the Secretary that the use by such powerplant of coal or any available alternate fuel as a primary energy 

source will cause or contribute to a concentration, in an air quality control region or any area within such region, of a 

pollutant for which any national ambient air quality standard is or would be exceeded;

(B) such powerplant is to be constructed and operated only to replace no more than the equivalent capacity of existing 

electric powerplants—,

(i) which use natural gas or petroleum as a primary source,

(ii) which are owned by the same person who is to operate such powerplant, and

(iii) which, if they used coal as a primary energy source, would cause or contribute to such a concentration in such 

area;

(C) such powerplant is to be operated solely as an intermediate load powerplant;

(D) the net heat input rate for such powerplant will be maintained at or less than 9,500 Btu's per kilowatt hour 

throughout the useful life of the powerplant;

(E) there is no reasonable alternative site for such powerplant which meets the criteria set forth in subsection (a)( 1) 

(A) through (D); and

(F) the powerplant is to be constructed with the capability to use a synthetic fuel derived from coal or other alternate 

fuel.

(2) The Secretary shall, from time to time, review each exemption granted to a powerplant under this subsection, and 

shall terminate such exemption when he finds that there is available a supply of synthetic fuel derived from coal or 

other alternate fuel suitable for use as a primary energy source by such powerplant.

(i) PERMANENT EXEMPTIONS FOR INSTALLATIONS BASED UPON PRODUCT OR PROCESS REQUIREMENTS.— After consideration of a petition (and comments thereon) for an exemption for an installation from 

one or more of the prohibitions of subtitle A, the Secretary shall, by order, grant a permanent exemption under this 

subsection with respect to natural gas or petroleum, if he finds that the petitioner has demonstrated that—,

(1) the use of coal or another alternate fuel is not technically feasible due to the necessity to maintain satisfactory 

control of product quality; and

(2) substitution of steam is not technically feasible due to process requirements.

(j) PERMANENT EXEMPTION FOR INTALLATIONS NECESSARY TO MEET SCHEDULED EQUIPMENT 

OUTAGES.— After consideration of a petition (and comments thereon) for any exemption from one or more of the 

prohibitions of subtitle A for an installation, the Secretary may, by order, grant a permanent exemption under this 

subsection if he finds that the petitioner has demonstrated that such exemption is necessary to meet scheduled 

equipment outages (as defined by the Secretary by rule).

SEC. 213. GENERAL REQUIREMENTS FOR EXEMPTIONS.
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(a) USE OF MIXTURES OR FLUIDIZED BED COMBUSTION NOT FEASIBLE.—, Except in the case of an 

exemption under section 212 (d) or (g), the Secretary may grant a permanent exemption for a powerplant or installation under this subtitle only—,

(1) if the applicant has demonstrated that the use of a mixture of natural gas or petroleum and coal or another alternate 

fuel, for which an exemption under section 212(d) would be available, is not economically or technically feasible; and

(2) if the Secretary has not made a finding that the use of a method of fluidized bed combustion of coal or another 

alternate fuel is economically and technically feasible.

(b) STATE APPROVAL REQUIRED FOR POWERPLANT.— If the appropriate State regulatory authority has not 

approved a powerplant for which a petition has been filed, such exemption—,

(1) to the extent it applies to the prohibition under section 201 (2) against construction without the capability of using 

coal or another alternate fuel, shall not take effect until all approvals required by such State regulatory authority which 

relate to construction have been obtained; and

(2) to the extent it applies to the prohibition under section 201 (1) against the use of natural gas or petroleum as a 

primary energy source, shall not take effect until all approvals required by such State regulatory authority which relate 

to construction or operation have been obtained.

(c) NO ALTERNATIVE POWER SUPPLY IN THE CASE OF A POWER- PLANT.—, (1) Except in the case of an 

exemption under section 212 (c) or (g), the Secretary may not grant an exemption for a new powerplant unless he finds 

that the petitioner has demonstrated that there is no alternative supply of electric power which is available within a 

reasonable distance at a reasonable cost without impairing short-run or long-run reliability of service and which can be 

obtained by the petitioner, despite reasonable good faith efforts.

(2) The Secretary shall forward a copy of any such petition to the Federal Energy Regulatory Commission promptly 

after it is filed with the Secretary and shall consult with such Commission before making any finding on such petition 

under paragraph (1).

SEC. 214. TERMS AND CONDITIONS; COMPLIANCE PLANS.

(a) TERMS AND CONDITIONS GENERALLY.— Any exemption from any prohibition under this subtitle shall be 

on such terms and conditions as the Secretary determines appropriate, including terms and conditions requiring the use 

of effective fuel conservation measures which are practicable and consistent with the purposes of this Act. In the case 

of any temporary exemption, the terms and conditions (which may include a compliance plan meeting the requirements of subsection (b)) shall be designed to insure that upon the expiration of such exemption, the persons and 

powerplant or installation covered by such exemption will comply with the applicable prohibitions.

(b) COMPLIANCE PLANS.— A compliance plan meets the requirements of this subsection if it is approved by the 

Secretary and—,

(1) contains (A) a schedule indicating how compliance with applicable prohibitions of this Act will occur and (B) 

evidence of binding contracts for fuel, or facilities for the production of fuel, which would allow or such compliance; 

and

(2) is revised at such times and to such extent as the Secretary may require to reflect changes in circumstances.

TITLE III— EXISTING FACILITIES

Subtitle A—Prohibitions

SEC. 301. EXISTING ELECTRIC POWERPLANTS.

(a) GENERAL PROHIBITIONS.— Except to such extent as may be authorized under subtitle B—,

(1) natural gas shall not be used as a primalry energy source in an existing electric powerplant on or after January 1, 

1990;

(2) natural gas shall not be used as a primairy energy source in an existing electric powerplant before January 1, 1990, 

unless such powerplant used natural gas as a primalry energy source at any time during calendar year 1977; and

(3) natural gas shall not be used as a primary energy source in an existing electric powerplant in any calendar year 

before 1990 in greater proportions than the average yearly proportion of natural gas which—,
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(A) such powerplant used as a primary energy source in calendar years 1974 through 1976, or

(B) if such powerplant began operations on or after January 1, 1974, such powerplant used as a primary energy source 

during the first two calendar years of its operation.

The prohibition of paragraph (1) shall be stayed with respect to any existing powerplant pending a resolution (including judicial review) of any petition for any exemption from such prohibition which is filed for such powerplant at 

any time after the effective date of this Act, but at least one year before the date such prohibition first takes effect.

(b) AUTHORITY OF SECRETARY TO PROHIBIT WHERE COAL OR ALTERNATE FUEL CAPABILITY 

EXISTS.— The Secretary may prohibit, in accordance with section 303 (a) or (b), the use of petroleum or natural gas, 

or both, as a primary energy source in any existing electric powerplant, if the Secretary finds that—,

(1) such powerplant has or previously had the technical capability to use coal or another alternate fuel as a primary 

energy source;

(2) such powerplant has the technical capability to use coal or another alternate fuel as a primary energy source, or it 

could have such capability without—,

(A) substantial physical modification of the powerplant, or

(B) substantial reduction in the rated capacity of the powerplant; and

(3) it is financially feasible to use coal or another alternate fuel as a primary energy source in such powerplant.

The requirement of paragraph (1) shall not be considered to be satisfied unless the finding under such paragraph is 

made before the date of the publication of the notice of proposed prohibition under section 701(b) and is published 

with such notice.

(c) AUTHORITY OF SECRETARY TO PROHIBIT EXCESSIVE USE IN MIXTURES.—, In the case of any existing electric powerplant in which the Secretary finds it is technically and financially feasible to use a mixture of 

petroleum or natural gas and coal or an alternate fuel as a primary energy source, the Secretary may prohibit, in accordance with section 303(a), the use of petroleum or natural gas, or both, in such powerplant in amounts in excess of 

the minimum amount necessary to maintain reliability of operation of the unit consistent with maintaining reasonable 

fuel efficiency of such mixture.

SEC. 302. EXISTING MAJOR FUEL- BURNING INSTALLATIONS.

(a) AUTHORITY OF SECRETARY TO PROHIBIT WHERE COAL OR ALTERNATE FUEL CAPABILITY 

EXISTS.— The Secretary may prohibit, in accordance with section 303 (a) or (b), the use of petroleum or natural gas, 

or both, as a primary energy source in any existing major fuel-burning installation, if the Secretary finds that—,

(1) such installation has or previously had the technical capability to use coal or another alternate fuel as a primary 

energy source;

(2) such installation has the technical capability to use coal or another alternate fuel as a primary energy source, or it 

could have such capability without—,

(A) substantial physical modification of the unit, or

(B) substantial reduction in the rated capacity of the unit; and

(3) it is financially feasible to use coal or another alternate fuel as a primary energy source in such installation.

The requirement of paragraph (1) shall not be considered to be satisfied unless the finding under such paragraph is 

made before the date of the publication of the notice of proposed prohibition under section 701(b) and is published 

with such notice.

(b) AUTHORITY OF SECRETARY TO PROHIBIT EXCESSIVE USE IN MIXTURES.—,

(1) In the case of any existing major fuel-burning installation in which the Secretary finds it is technically and financially feasible to use a mixture of petroleum or natural gas and coal or another alternate fuel as a primary energy source 

the Secretary may prohibit, in accordance with section 303(a), the use of petroleum or natural gas, or both, in such 

installation in amounts in excess of the minimum percentage of the total Btu heat input of the primary energy sources 

needed to maintain reliability of operation of the unit consistent with maintaining reasonable fuel efficiency of such 

mixture.
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(2) The percentage determined by the Secretary under paragraph (1) shall not be less than 25 percent.

SEC. 303. RULES RELATING TO CASE- BY- CASE AND CATEGORY PROHIBITIONS.

(a) CASE- BY- CASE PROHIBITIONS.—(1) Except to the extent authorized by subsection (b), the Secretary shall 

prohibit any powerplant or installation from using natural gas or petroleum under the authority granted him under 

section 301 (b) or (c) or 302 only by means of a final order issued by him which shall be limited to the particular 

powerplant or installation involved.

(2) The Secretary may issue such a final order only with respect to a powerplant or installation which is not, at the time 

the proposed order is issued, covered by a final rule issued under section (b).

(3) (A) Subject to subparagraph (B), the Secretary shall not issue a final order under this subsection to any powerplant 

or installation if it is demonstrated that such powerplant or installation would have been granted an exemption if such 

prohibition had been established by a final rule pursuant to subsection (b) rather than by order pursuant to this subsection, except that if a temporary exemption would have been granted, such a final order may be issued but may not 

take effect until such time as the temporary exemption would have terminated.

(B) In any case in which an order is not issued by reason of subparagraph (A) or in which the effective date of such 

order is delayed under subparagraph (A), the Secretary shall take such steps as may be necessary to assure the installation involved complies with the same requirements (including provisions of section 314(a)) as would have been 

applicable if an exemption had been granted based upon the grounds for which the order is not issued or the effective 

date of which is delayed.

(b) PROHIBITIONS APPLICABLE TO CATEGORIES OF FACILITIES.—(1) The Secretary may, by rule, prohibit 

the use of natural gas or petroleum pursuant to section 301(b) or 302(a)—,

(A) in the case of any category of existing electric powerplants identified in such rule; and

(B) in the case of any category of existing major fuel-burning installations which have design capabilities of consuming fuel (or any mixture thereof) at a fuel heat input rate of 300 million Btu's per hour or greater which are identified in such rule.

(2) Each powerplant or installation to be covered by any final rule issued under this subsection shall be specifically 

identified in the proposed rule published under section 701(b).

(3) In prescribing any final rule under this subsection, the Secretary shall take into account any special circumstances 

or characteristics of each category of powerplants or installations (such as the intermittent use, size, age, or geographic 

location of such powerplants or installations). Any such rules shall not apply in the case of any existing electric 

powerplant or major fuel-burning installation—,

(A) pending a resolution (including judicial review) of any petition for any exemption for such powerplant or installation which may be filed with the Secretary not later than 60 days after such final rule is published under section 

702(a); or

(B) with respect to which a comparable prohibition was issued by order (or was proposed but was not issued by reason 

of subsection (a) (3)).

SUBTITLE B—EXEMPTIONS

SEC. 311. TEMPORARY EXEMPTIONS.

(a) TEMPORARY EXEMPTION DUE TO LACK OF ALTERNATE FUEL SUPPLY, SITE LIMITATIONS, OR 

ENVIRONMENTAL REQUIREMENTS.— After consideration of a petition (and comments thereon) for an exemption from one or more of the prohibitions of subtitle A for a powerplant or installation, the Secretary shall, by 

order, grant such an exemption for the use of natural gas or petroleum, if he finds that the petitioner has demonstrated 

that for the period of the proposed exemption, despite diligent good faith efforts—,

(1) it is likely that an adequate and reliable supply of coal or other alternate fuel of the quality necessary to conform 

with design and operational requirements for use as a primary energy source, will not be available to such powerplant 

or installation at a cost (taking into account associated facilities for the transportation and use of such fuel) which, 

based upon the best practicable estimates, does not substantially exceed the costs, as determined by rule by the Secretary, of using imported petroleum as a primary energy source;
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(2) one or more site limitations exist which would not permit the operation of such a powerplant or installation using 

coal or any other alternate fuel as a primary energy source; or

(3) the prohibitions of section 301 or 302 could not be satified without violating applicable environmental requirements.

(b) TEMPORARY EXEMPTION BASED UPON FUTURE USE OF SYNTHETIC FUELS.— After consideration of 

a petition (and comments thereon) for an exemption from one or more of the prohibitions of subtitle A for a 

powerplant or installation, the Secretary, by order, shall grant an exemption under this subsection for the use of natural 

gas or petroleum, if he finds that the petitioner has demonstrated that—,

(1) the petitioner will comply with the prohibitions of subtitle A by the end of the proposed exemption by the use of a 

synthetic fuel derived from coal or another alternate fuel; and

(2) the petitioner is not able to comply with such prohibitions by the use of such synthetic fuel until the end of the 

proposed exemption.

The effectiveness of an exemption under this subsection is conditioned on the petitioner filing and maintaining a 

compliance plan meeting the requirements of section 314(b).

(c) TEMPORARY EXEMPTION BASED UPON USE OF INNOVATIVE TECHNOLOGIES.—, After consideration of a petition (and comments thereon) for an exemption from one or more of the prohibitions of subtitle A for a 

powerplant or installation, the Secretary, by order, shall grant an exemption under this subsection for the use of natural 

gas or petroleum, if he finds that the petitioner has demonstrated that such powerplant or installation will comply with 

such prohibitions at the expiration of such exemption by the adoption of a technology for the use of coal or another 

alternate fuel which at the time of the granting of the exemption is determined by the Secretary to be an innovative 

technology. The effectiveness of an exemption under this subsection is conditioned on the petitioner filing and 

maintaining a compliance plan meeting the requirements of section 314(b).

(d) TEMPORARY EXEMPTION FOR UNITS TO BE RETIRED.—(1) After consideration of a petition (and 

comments thereon) for an exemption from one or more of the prohibitions of subtitle A for a powerplant or installation, the Secretary shall, by order, grant an exemption under this subsection for the use of natural gas or petroleum, if 

he finds that the petitioner has demonstrated that such powerplant or installation is to permanently cease operation at 

or before the expiration of the exemption period. An exemption under this subsection is conditioned on the petitioner 

filing and maintaining a compliance plan meeting the requirements of section 314(b) (other than paragraph (1) (B)).

(2) Notwithstanding any other provision of this Act, an exemption under this subtitle may not be granted for any 

powerplant or installation once an exemption under this subsection has been granted for such powerplant or installation.

(e) TEMPORARY PUBLIC INTEREST EXEMPTION.— After consideration of a petition (and comments thereon) 

for an exemption for a powerplant or installation from one or more of the prohibitions of subtitle A for a powerplant or 

installation, the Secretary may, by order, grant an exemption under this subsection for the use of natural gas or petroleum, if he finds that the petitioner has demonstrated that for the period of the proposed exemption the issuance of 

such exemption is in the public interest and is consistent with the purposes of this Act.

(f) TEMPORARY EXEMPTION FOR PEAKLOAD POWERPLANTS.— After consideration of a petition (and 

comments thereon) for an exemption from one or more of the prohibitions of subtitle A for a powerplant, the Secretary 

shall, by order, grant an exemption under this subsection for the use of natural gas or petroleum, if the petitioner 

certifies that such powerplant is to be operated solely as a peakload powerplant.

(g) TEMPORARY EXEMPTION FOR POWERPLANTS WHERE NECESSARY TO MAINTAIN RELIABILITY 

OF SERVICE.—(1) After consideration of a petition (and comments thereon) for an exemption from one or more of 

the prohibitions of subtitle A for a powerplant, the Secretary shall, by order, grant an exemption under this subsection 

for the use of natural gas or petroleum, if he finds that the petitioner has demonstrated that such exemption is necessary 

to prevent impairment of reliability of service.

(2) Notwithstanding any other provision of this Act, an exemption under this subtitle (other than a permanent exemption under section 312(f) for the use of petroleum) may not be granted for any powerplant for which an exemption 

under this subsection has been granted.

(h) DURATION OF TEMPORARY EXEMPTIONS.—(1) Except as provided in paragraphs (2) and (3), exemptions 

under this section for any powerplant or installation may not exceed, taking into account any extension or renewal 5, 

years.
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(2) (A) An exemption under subsection (a)(1) may be granted for a period of more than 5 years, but may not exceed, 

taking into account any extension or renewal, 10 years.

(B) Subject to paragraph (3), an exemption under subsections (b), (c), and (g) may be extended beyond the 5–year 

limit under paragraph (1), but such exemption, so extended, may not exceed 10 years.

(3) An exemption under subsections (d), (f), and (g) for the use of natural gas by a powerplant may not extend beyond 

December 31, 1994.

(4) In computing the 5–year and 10–year limitations of paragraphs (1) and (2) in the case of any exemption under this 

section, the period before the prohibition on the use of natural gas and petroleum would first apply (if the exemption 

had not been granted) shall be disregarded.

SEC. 312. PERMANENT EXEMPTIONS.

(a) PERMANENT EXEMPTION DUE TO LACK OF ALTERNATE FUEL SUPPLY, SITE LIMITATIONS, OR 

ENVIRONMENTAL REQUIREMENTS.—(1) After consideration of a petition (and comments thereon) for an 

exemption from one or more of the prohibitions of subtitle A for a powerplant or installation, the Secretary shall, by 

order, grant a permanent exemption under this subsection for the use of natural gas or petroleum, if he finds that the 

petitioner has demonstrated that despite diligent good faith efforts—,

(A) it is likely that an adequate and reliable supply of coal or other alternate fuels of the quality necessary to conform 

with design and operational requirements for use as a primary energy source will not be available to such powerplant 

or installation at a cost (taking into account associated facilities for the transportation and use of such fuel) which, 

based upon the best practicable estimates, does not substantially exceed the cost, as determined by rule by the Secretary, of using imported petroleum as a primary energy source during the remaining useful life of the powerplant or 

installation;

(B) one or more site limitations exist which would not permit the operation of such a powerplant or installation using 

coal or any other alternate fuel as a primary energy source; or

(C) the prohibitions of subtitle A could not be satisfied without violating applicable environmental requirements.

(2) Notwithstanding the preceding provisions of this subsection, a powerplant which has been granted an exemption 

under subsection (g) may not be granted an exemption under this subsection.

(b) PERMANENT EXEMPTION DUE TO CERTAIN STATE OR LOCAL REQUIREMENTS.— After consideration of a petition (and comments thereon) for an exemption from one or more of the prohibitions of subtitle A for a 

powerplant or installation, the Secretary may, by order, grant a permanent exemption under this subsection, if he finds 

that the petitioner has demonstrated that—,

(1) with respect to the site of the powerplant or installation, the operation of such a facility using coal or any other 

alternate fuel is infeasible because of a State or local requirement;

(2) if such State or local requirement is under a building code or nuisance or zoning law, no other exemption under this 

subtitle could be granted for such facility; and

(3) the granting of the exemption would be in the public interest and would be consistent with the purposes of this Act.

(c) PERMANENT EXEMPTION FOR COGENERATION.— After consideration of a petition (and comments 

thereon) for an exemption from one or more of the prohibitions of subtitle A for a cogeneration facility, the Secretary 

may, by order, grant a permanent exemption under this subsection, if he—,

(1) finds that the petitioner has demonstrated that economic and other benefits of cogeneration are unobtainable unless 

petroleum or natural gas, or both, are used in such facility, and

(2) includes in the final order a statement of the basis for such finding.

(d) PERMANENT EXEMPTION FOR CERTAIN FUEL MIXTURES CONTAINING NATURAL GAS OR PETROLEUM.—(1) After consideration of a petition (and comments thereon) for an exemption from one or more of the 

prohibitions of subtitle A for a powerplant or installation, the Secretary shall, by order, grant a permanent exemption 

under this subsection, if he finds that the petitioner has demonstrated that—,

(A) the powerplant or installation uses, or proposes to use, a mixture of petroleum or natural gas and coal or another 

alternate fuel as a primary energy source; and

(B) the amount of the petroleum or natural gas used in such mixture will not exceed the minimum percentage of the 

total Btu heat input of the primary energy sources of such powerplant or installation needed to maintain reliability of 
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operation of the unit consistent with maintaining a reasonable level of fuel efficiency, as determined in accordance 

with rules prescribed by the Secretary.

(2) In the case of an existing major fuel-burning installation, the percentage determined by the Secretary under subparagraph (B) of paragraph (1) shall not be less than 25 percent.

(3) In the case of an existing electric powerplant, the Secretary may authorize a higher percentage than that referred to 

in paragraph (1)(B) if he finds that the higher percentage of natural gas allowed would be mixed with synthetic fuels 

derived from municipal wastes or agricultural wastes and would encourage the use of alternate or new technologies 

which use renewable sources of energy.

(e) PERMANENT EXEMPTION FOR EMERGENCY PURPOSES.— After consideration of a petition (and comments thereon) for an exemption from one or more of the prohibitions of subtitle A for a powerplant or installation, the 

Secretary shall, by order, grant a permanent exemption underr this subsection, if he finds that the petitioner has 

demonstrated that such powerplant or installation will be maintained and operated only for emergency purposes (as 

defined by rule by the Secretary).

(f) PERMANENT EXEMPTION FOR PEAKLOAD POWERPLANTS.— After consideration of a petition (and 

comments thereon) for an exemption from one or more of the prohibitions of subtitle A for a powerplant, the Secretary 

shall, by order, grant a permanent exemption under this subsection, if he finds that—,

(1) the powerplant is operated solely as a peakload powerplant;

(2) a denial of such petition is likely to result in an impairment of reliability of service; and

(3)(A) modification of the powerplant to permit compliance with such prohibitions is technically infeasible; or

(B) such modification would result in an unreasonable expense.

(g) PERMANENT EXEMPTION FOR INTERMEDIATE LOAD POWERPLANTS.—, (1) After consideration of a 

petition (and comments thereon) for an exemption from one or more of the prohibitions of subtitle A on the use of 

petroleum by a powerplant, the Secretary may, by order, grant a permanent exemption under this subsection, if he 

finds that the petitioner has demonstrated that—,

(A) the Administrator of the Environmental Protection Agency (or the appropriate State air pollution control agency) 

certifies to the Secretary that the use by such powerplant of coal or any available alternate fuel as a primary energy 

source will cause or contribute to a concentration, in an air quality control region or any area within such region, of a 

pollutant for which any national ambient air quality standard is or would be exceeded for such area;

(B) such powerplant is to be operated only to replace no more than the equivalent capacity of existing electric 

powerplants—,

(i) which use natural gas or petroleum as a primary energy source,

(ii) which are owned by the same person who is to operate such powerplant, and

(iii) which, if they used coal as a primary energy source, would cause or contribute to such a concentration in such 

region;

(C) such powerplant is and shall continue to be operated solely as an intermediate load powerplant;

(D) the net fuel heat input rate for such powerplant will be maintained at or less than 9,500 Btu's per kilowatt hour 

throughout the remaining useful life of the powerplant; and

(E) the powerplant has the capability to use synthetic fuels derived from coal or other alternate fuel.

(2) The Secretary shall, from time to time, review each exemption granted to a powerplant under this subsection, and 

shall terminate such exemption if he finds that there is available a supply of synthetic fuel derived from coal or other 

alternate fuel suitable for use as a primary energy source by such powerplant.

(h) PERMANENT EXEMPTION FOR USE OF NATURAL GAS BY CETAIN POWERPLANTS WITH CAPACITIES OF LESS THAN 250 MILLION Btu's PER HOUR.—(1) Subject to paragraph (2), after consideration of a 

petition (and comments thereon) for an exemption from any prohibition of subtitle A for the use of natural gas by a 

powerplant, the Secretary shall, by order, grant a permanent exemption under this subsection for such use, if he finds 

that the petitioner has demonstrated that—,

(A) such powerplant has a design capability of consuming fuel (or any mixture thereof) at a fuel heat input rate of less 

than 250 million Btu's per hour;

(B) such powerplant was a baseload powerplant on April 20, 1977; and

(C) such powerplant is not capable of consuming coal without—,

(i) substantial physical modification of the unit; or

(ii) substantial reduction in the rated capacity of the unit (as determined by the Secretary).
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(2) An exemption under this subsection may only apply to the prohibitions under section 301 and prohibitions established by final rules or orders issued before January 1, 1990.

(i) PERMANENT EXEMPTION FOR THE USE OF LNG BY CERTAIN POWERPLANTS.—, After consideration 

of a petition (and comments thereon) for an exemption from one or more of the prohibitions of subtitle A for a 

powerplant, the Secretary shall, by order, grant a permanent exemption under this subsection for the use of liquefied 

natural gas if the Administrator of the Environmental Protection Agency (or the appropriate State air pollution control 

agency) has certified to the Secretary that the use of coal by such powerplant as a primary energy source will cause or 

contribute to a concentration, in an air quality control region or any area within such region, of a pollutant for which 

any national ambient air quality standard is or would be exceeded for such region or area and the use of coal would not 

comply with applicable environmental requirements.

(j) PERMANENT EXEMPTION FOR INSTALLATIONS SERVED BY CERTAIN INTERNATIONAL PIPELINES.—(1) After consideration of a petition (and comments thereon) for an exemption for an installation from one 

or more of the prohibitions of subtitle A, the Secretary shall, by order, grant a permanent exemption under this subsection for the use of natural gas, if he finds that the petitioner has demonstrated that—,

(A) such installation's primary source of natural gas is under a contract with a pipeline between Canada and the United 

States which cannot be cancelled by the petitioner without his suffering substantial financial penalty;

(B) such pipeline was supplying to such installation before April 21, 1977, natural gas from Canada under such contract;

(C) such pipeline serves high-priority users within the United States service to whom would be jeopardized if service 

to such installation is terminated;

(D) the revenues from the transportation and sale of natural gas transported by such pipeline are essential to the 

economic vitality of the pipeline; and

(E) the exemption is consistent with the purposes of this Act, and the denial of such exemption would not result in 

natural gas being made available for any other use within the United States.

(2) For purposes of this subsection, the term “high-priority user” means any residential user of natural gas, or any 

commercial user whose consumption of natural gas on a peak day is less than 50 Mcf, as determined by the Secretary.

(k) PERMANENT EXEMPTION FOR INSTALLATION BASED UPON PRODUCT OR PROCESS REQUIREMENTS.— After consideration of a petition (and comments thereon) for an exemption for an installation from one or 

more of the prohibitions of subtitle A, the Secretary shall, by order, grant a permanent exemption under this subsection, if he finds that the petitioner has demonstrated that—,

(1) the use of coal or other alternate fuels is not technically feasible due to the necessity to maintain satisfactory control 

of product quality; and

(2) substitution of steam is not technically feasible due to process requirements.

(1) PERMANENT EXEMPTION FOR INSTALLATIONS NECESSARY TO MEET SCHEDULED EQUIPMENT 

OUTAGES.— After consideration of a petition (and comments thereon) for any exemption from one or more of the 

prohibitions of subtitle A for an installation, the Secretary may, by order, grant a permanent exemption under this 

subsection, if he finds that the petitioner has demonstrated that such exemption is necessary to meet scheduled 

equipment outages (as defined by the Secretary by rule).

SEC. 313. GENERAL REQUIREMENTS FOR EXEMPTIONS.

(a) USE OF MIXTURES OR FLUIDIZED BED COMBUSTION NOT FEASIBLE.— Except in the case of an 

exemption under section 312 (b), (f), (i) or (j), the Secretary may grant a permanent exemption for a powerplant or 

installation under this subtitle only—,

(1) if the applicant has demonstrated that the use of a mixture of natural gas or petroleum and coal (or other alternate 

fuels), for which an exemption under section 312(b) would be available, is not economically or technically feasible; 

and

(2) if the Secretary has not made a finding that the use of a method of fluidized bed combustion of coal or an alternate 

fuel is economically and technically feasible.

(b) NO ALTERNATIVE POWER SUPPLY IN THE CASE OF A POWERPLANT.—, (1) In the case of an exemption under section 312 (b) or (g), the Secretary may not grant an exemption for an existing powerplant unless he finds 
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that the petitioner has demonstrated that there is no alternative supply of electric power which is available within a 

reasonable distance at a reasonable cost without impairing short-run or long-run reliability of service and which can be 

obtained by the petitioner, despite reasonable good faith efforts.

(2) The Secretary shall forward a copy of any such petition to the Federal Energy Regulatory Commission promptly 

after it is filed with the Secretary and shall consult with the Commission before making any finding on such petition 

under paragraph (1).

SEC. 314. TERMS AND CONDITIONS; COMPLIANCE PLANS.

(a) TERMS AND CONDITIONS GENERALLY.— Any exemption from any prohibition under this subtitle shall be 

on such terms and conditions as the Secretary determines appropriate, including terms and conditions requiring the use 

of effective fuel conservation measures which are practicable and consistent with the purposes of this Act. In the case 

of any temporary exemption, the terms and conditions (which may include a compliance plan meeting the requirements of subsection (b)) shall be designed to insure that upon the expiration of such exemption, the persons and 

powerplant or installation covered by such exemption will comply with the applicable prohibitions.

(b) COMPLIANCE PLANS.— A compliance plan meets the requirements of this subsection if it is approved by the 

Secretary and—,

(1) contains (A) a schedule indicating how compliance with applicable prohibition of this Act will occur and (B) 

evidence of binding contracts for fuel, or facilities for the production of fuel, which would allow for such compliance; 

and

(2) is revised at such times and to such extent as the Secretary may require to reflect changes in circumstances.

TITLE IV— ADDITIONAL PROHIBITIONS; EMERGENCY AUTHORITIES

SEC. 401. AUTHORITY TO PROHIBIT USE OF NATURAL GAS IN CERTAIN BOILERS USED FOR SPACE 

HEATING.

(a) Existing Boilers.—The Secretary may prohibit the use of natural gas as a primary energy source in any existing 

boiler (other than a major fuel-burning installation) if he finds that—,

(1) such boiler is used to produce steam for space heating purposes;

(2) such boiler consumes 300 Mcf or more of natural gas per day on a peak day;

(3) such boiler has, or previously had, the technical capability to use petroleum as a primary energy source;

(4) such boiler has the technical capability to use petroleum as a primary energy source or it could have such capability 

without—,

(A) substantial physical modification of the boiler, or

(B) substantial reduction in the rated capacity of the unit;

(5) it is financially feasible for such boiler to use petroleum as a primary energy source; and

(6) such prohibition is consistent with the purposes of this Act.

The requirement of paragraph (3) shall not be considered to be satisfied unless the finding under such paragraph is 

made before the date of the publication of the notice of proposed prohibition under section 701(b).

(b) NEW BOILERS.— The Secretary may prohibit the use of natural gas as a primary energy source in any new boiler 

(other than a major fuel–burning installation) if he determines that—,

(1) such boiler will be used to produce steam for space heating purposes;

(2) such boiler will, by design, be capable of consuming 300

Mcf or more of natural gas per day; and

(3) such prohibition is consistent with the purposes of this Act.

(c) EXEMPTION.— The Secretary shall exempt any person from any prohibition prescribed pursuant to subsection 

(a) or (b) if such person demonstrates to the Secretary that an adequate and reliable source of petroleum is not likely to 

be available to such person during the period of the exemption.

(d) DEFINITIONS.—,

(1) the term “new boiler” means any boiler for which there was not a commitment for construction or acquisition as of 
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the date of the publication under section 701(b) of the proposed rule or order establishing the prohibition.

(2) The term “existing boiler” means any boiler other than a new boiler.

(e) METHOD OF PROHIBITION.—(1)( A) Except to the extent authorized by paragraph (2), the Secretary shall 

prohibit boiler fuel use of natural gas under the authority granted him in subsection (a) or (b) only by means of a final 

order issued by him which shall be limited to the particular boiler involved.

(B) The Secretary may issue such an order only with respect to a boiler which is not, at the time the proposed order is 

issued, covered by a final rule issued under paragraph (2).

(C) The Secretary shall not issue a final order under this subsection with respect to any boiler if it is demonstrated that 

an exemption under subsection (c) would have been granted with respect to such boiler if such prohibition had been 

established by rule pursuant to paragraph (2) rather than by order.

(2)(A) The Secretary may, by rule, prohibit the use of natural gas under the authority of subsection (a) or (b) in the case 

of any category of boilers identified in such rule.

(B) Any existing boiler to be covered by any rule issued under this subsection shall be specifically identified in the 

proposed rule published under section 701(b).

(C) In prescribing any rule under this subsection, the Secretary shall take into account any special circumstances or 

characteristics of each category of boilers (such as the technical feasibility of burning petroleum and the size, age, or 

geographic location of such boilers). Any such final rule shall not apply in the case of any boiler—,

(i) subject to such rule pending a resolution of any petition (including judicial review) for any exemption for such 

boiler which may be filed with the Secretary not later than 60 days after such rule is published under section 701(b); 

or

(ii) with respect to which a comparable prohibition was issued by order (or was proposed but was not issued because it 

was demonstrated that it could qualify for an exemption under subsection (c)).

SEC. 402. PROHIBITION ON USE OF NATURAL GAS FOR DECORATIVE OUTDOOR LIGHTING.

(a) PROHIBITION ON INSTALLATION OF NEW OUTDOOR LIGHTING.—, Effective beginning on the date of 

the enactment of this Act, no local distribution company, or any industrial user of natural gas who obtains such gas 

under a contract between such user and a natural gas pipeline, or any agent thereof, shall install any outdoor lighting 

fixture using natural gas.

(b) PROHIBITION ON SELLING NATURAL GAS TO BE USED IN OUTDOOR LIGHTING.—(1) Not later than 

180 days after the date of the enactment of this Act, the Secretary shall, by rule, prohibit any local distribution company (unless an exemption has been obtained under subsection (c)) from providing natural gas service for use in 

outdoor lighting—,

(A) effective on the date such final rule is issued, in the case of any residential, commercial, or industrial customer 

unless a later effective date is applicable under subparagraph (B) or (C) of this paragraph;

(B) effective beginning 180 days after the date such final rule is issued, in the case of any industrial or commercial 

structure for which natural gas was being provided by such company for outdoor lighting use on the date of the enactment of this Act; and

(C) effective beginning January 1, 1982, in the case of—,

(i) any municipal outdoor lighting fixture, and

(ii) any outdoor lighting fixture used in connection with a residence, for which natural gas was being provided by such 

company for outdoor lighting use on the date of the enactment of this Act.

(2) The rule prescribed under paragraph (1) shall provide that any industrial user of natural gas who obtains such 

natural gas under a contract between such user and a natural gas pipeline shall be prohibited from using such natural 

gas for outdoor lighting (unless an exemption has been obtained under subsection (c))—,

(A) effective 180 days after the date such final rule takes effect, if the industrial user was using natural gas for outdoor 

lighting on the date of the enactment of this Act; or

(B) beginning on the date such final rule takes effect, if such industrial user was not so using natural gas on such date.

(c) EXEMPTIONS.—(1) The Secretary shall, by order—,

(A) exempt from the prohibition under subsection (a) the installation of a replacement lighting fixture for any memorial light or light of historical signficance, and
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(B) permanently exempt from a prohibition under subsection (b) the use natural gas in any memorial light or light of 

historial significance.

if a petition for such exemption is made by a Federal, State, or local government agency or by any appropriate historical association.

(2) The Secretary shall, by order—,

(A) exempt from the prohibition under subsection (a), upon a petition therefor, the installation of a replacement 

lighting fixture for any natural gas outdoor lighting, and

(B) permanently exempt from a prohibition under subsection (b), upon a petition therefor, use of natural gas for 

outdoor lighting,

which is used for commercial purposes, which is of a traditional nature, and which conforms with the cultural or 

architectural style of the area in which such light is located.

(3) The Secretary shall, by order, exempt any local distribution company or industrial user described in subsection (b) 

(2), from the rule required to be prescribed under subsection (b) concerning the continuation of such service in effect 

on the date of the enactment of this Act upon the filing of a petition therefor by such pipeline or company, or by any 

other interested person. Such exemption shall be for such period as, and to the extent that, the Secretary finds—,

(A) such exemption is necessary to protect the dafety of persons or property;

(B) such exemption is necessary to permit the installation of substitute lighting where no adequate outdoor lighting 

(other than that using natural gas) exists on the date of the enactment of this Act;

(C) compliance with such rule would entail substantial expense and would not be cost justified; or

(D) the issuance of the exemption is in the public interest and is consistent with the purposes of this Act.

(4) Determinations on any petition for an exemption under this section shall be made under criteria which the Secretary shall establish by rule, which rule shall be prescribed not later than 180 days after the effective date of this Act.

(d) PROCEDURES.— Rules and orders under this section shall be made in accordance with the provisions of section 

553 of title 5, United States Code, except that determinations on any petition for exemption under this section shall be 

made only after interested persons have been afforded an opportunity for a public hearing. Under rules prescribed by 

the Secretary, the Secretary may stay the application of any prohibition under subsection (b) applicable to any person 

pending the resolution of any petition for an exemption for such person.

(e) AUTHORITY MAY BE DELEGATED TO STATES.—(1) Under regulations prescribed by the Secretary, the 

responsibility and authority of the Secretary with regard to outdoor lighting under this section may be delegated to the 

appropriate regulatory authority of a State if he determines that such delegation would be consistent with the purposes 

of this section.

(2) Any delegation under paragraph (1) shall be on terms and conditions prescribed by the Secretary and may be 

rescinded by the Secretary at any time by notifying the State authority of such rescission.

(3) Any State authority to which the Secretary has delegated authority under this subsection shall prepare and transmit 

reports to the Secretary on a periodic basis (as determined by the Secretary) on actions taken to carry out the purposes 

of this section.

(f) DEFINITIONS.— As used in this section—,

(1) The term “outdoor lighting” means lighting by any stationary source which is not located inside any building.

(2) The term “pipeline company” means any person engaged in the business of transporting natural gas by pipeline 

other than as a local distribution company.

(3) The term “local distribution company” means any person engaged in the business of transportation and local 

distribution of natrual gas and the sale of natural gas for ultimate consumption.

(4) The term “residence” means any single or multiple family dwelling unit, including commonly held areas associated with any such unit.

SEC. 403. CONSERVATION IN FEDERAL FACILITIES, CONTRACTS, AND FINANCIAL ASSISTANCE 

PROGRAMS.

(a) FEDERAL FACILITIES.—(1) Each Federal agency owning or operating any electric powerplant, major 
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fuel-burning installation, or other unit shall comply with any prohibition, term, condition, or other substantial or 

procedural requirement under this Act, to the same extent as would be the case if such powerplant, installation, or unit 

were owned or operated by a nongovernmental person.

(2) The President may, by order, exempt from the application of paragraph (1) any powerplant, installation, or other 

unit owned or operated by any Federal agency, if the President determines that—,

(A) such use is in the paramount interest of the United States and that the powerplant, installation, or unit involved is a 

component of or is used solely in connection with any weaponry, equipment, aircraft, vessels, vehicles or other classes 

or categories of property which—,

(i) are owned or operated by the Armed Forces of the United States (including the Coast Guard) or by the National 

Guard of any State; and

(ii) are uniquely military in nature; or

(B) there is a lack of appropriation for such use but only if the President specifically requested such appropriations as 

a part of the budgetary process and the Congress failed to make available such requested appropriation.

Such order shall not take effect until 60 days after a copy of such order has been transmitted to each House of the 

Congress. The President shall review each such determination every 2 years and submit a report to the Congress on the 

results of such review. Any powerplant, installation, or other unit permitted to use natural gas or petroleum under an 

exemption under this paragraph shall establish and carry out effective fuel conservation measures, as determined by 

the Secretary.

(3) Any powerplant, installation, or unit owned or operated by any such Federal agency shall be entitled to any exemption by the Secretary to the same extent, in the same manner, and under the same terms and conditions as would 

apply if it were owned or operated by a nongovernmental person.

(b) FEDERAL CONTRACTS AND FINANCIAL ASSISTANCE.—(1) In order to implement the purposes of this 

Act, the President shall, not later than 30 days after the effective date of this Act, issue an order—,

(A) requiring each Federal agency which is authorized to extend Federal assistance by way of grant, loan, contract, or 

other form of financial assistance, to promptly effectuate the purposes of this Act relating to the conservation of petroleum and natural gas, by rule, in such contracting or assistance activities within 180 days after issuance of such 

order, and

(B) setting forth procedures, sanctions, penalties, and such other provisions as the President determines necessary to 

carry out such requirement effectively, including a requirement that each agency annually transmit to the President, 

and make available to the public, a report on the actions taken and to be taken to implement such order.

(2) The President may exempt by order any specific grant, loan, contract, or other form of financial assistance from all 

or part of the provisions of this subsection if he determines such exemption is in the national interest. The President 

shall notify the Congress in writing of such exemption at least 60 days before it is effective.

(3) The President or any Federal agency may not use the authority granted under paragraph (1) to require compliance, 

including the use of coal, by any person or facility with any prohibition under other sections of this Act if such person 

or facility has been specifically determined by the Secretary as subject to such prohibition or has been exempted from 

the application of such prohibition.

(c) ANNUAL REPORT.— The President shall annually submit a detailed report to each House of the Congress on the 

actions taken by the President and each Federal agency to implement this section, including the progress and problems 

associated with implementation of this section.

SEC. 404. EMERGENCY AUTHORITIES.

(a) COAL ALLOCATION AUTHORITY.—(1) If the President—,

(A) declares a severe energy supply interruption, as defined in section 3(8) of the Energy Policy and Conservation Act, 

or

(B) finds, and publishes such finding, that a national or regional fuel supply shortage exists or may exist which the 

President determines—,

(i) is, or is likely to be, of significant scope and duration, and of an emergency nature;

(ii) causes, or may cause, major adverse impact on public health, safety, or welfare or on the economy; and
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(iii) results, or is likely to result, from an interruption in the supply of coal or from sabotage, or an act of God;

the President may, by order, allocate coal (and require the transportation thereof) for the use of any electric powerplant 

or major fuel–burning installation, in accordance with such terms and conditions as he may prescribe, to insure reliability of electric service or prevent unemployment, or protect public health, safety, or welfare.

(2) For purposes of this subsection, the term “coal” mans anthracite and bituminous coal and lignite (but does not 

mean any fuel derivative thereof).

(b) EMERGENCY PROHIBITION ON USE OF NATURAL GAS OR PETROLEUM.—, If the President declares a 

severe energy supply interruption, as defined in section 3(8) of the Energy Policy and Conservation Act, the President 

may, by order, prohibit any electric powerplant or major fuel-burning installation from using natural gas or petroleum, 

or both, as a primary energy source for the duration of such interruption. Notwithstanding any other provision of this 

section, any suspension of emission limitations or other requirements of applicable implementation plans, as defined 

in section 110(d) of the Clean Air Act, required by such prohibition shall be issued only in accordance with section 

110(f) of the Clean Air Act.

(c) EMERGENCY STAYS.— The President may, by order, stay the application of any provision of this Act, or any 

rule or order thereunder, applicable to any new or existing electric powerplant, if the President finds, and publishes 

such finding, that an emergency exists, due to national, regional, or systemwide shortages of coal or other alternate 

fuels, or disruption of transportation facilities, which emergency is likely to affect reliability of service of any such 

electric powerplant.

(d) DURATION OF EMERGENCY ORDERS.—(1) Except as provided in paragraph (3), any order issued by the 

President under this section shall not be effective for longer than the duration of the interruption or emergency, or 90 

days, whichever is less.

(2) Any such order may be extended by a subsequent order which the President shall transmit to the Congress in 

accordance with section 551 of the Energy Policy and Conservation Act. Such order shall be subject to congressional 

review pursuant to such section.

(3) Notwithstanding paragraph (1), the effectiveness of any order issued under this section shall not terminate under 

this subsection during the 15–calendar–day period during which any such subsequent order described in paragraph (2) 

is subject to congressional review under section 551 of the Energy Policy and Conservation Act.

(4) For purposes of this subsection, the provisions of this subsection supersede the provisions of title II of the Act of 

September 14, 1976 (Public Law 94—412; 50 U.S.C. 1621 and following).

(e) DELEGATION OF AUTHORITY PROHIBITED.— The authority of the President to issue any order under this 

section may not be delegated. This subsection shall not be construed to prevent the President from directing any 

Federal agency to issue rules or regulations or take such other action, consistent with this section, in the implementation of such order.

(f) PUBLICATION AND REPORTS TO CONGRESS OF ORDERS.— Any order issued under this section shall be 

published in the Federal Register. To the greatest extent practicable, the President shall, before issuing any order under 

this section, but in no event later than 5 days after issuing such order, report to the Congress of his intention to issue 

such order and state his reasons therefor.

(g) EMERGENCY USES OF NATURAL GAS OR PETROLEUM.—(1) During a temporary emergency condition 

(other than emergency conditions provided for under section 103(a) (15)), any person operating a peak-load 

powerplant or a major fuel-burning installation may, under rules prescribed by the Secretary, use natural gas or petroleum as a primary energy source in such powerplant or installation, notwithstanding any prohibition otherwise 

imposed by or pursuant to this Act, if—,

(A) such person notifies the Secretary within 24 hours after commencing such use; and

(B) the Secretary has not notified such person that in his judgement the emergency condition does not exist or does not 

warrant the use of natural gas or petroleum involved.

(2) Within 90 days after the effective date of this Act, the Secretary shall, by rule, prescribe the form and content of 

such notices and the conditions which may constitute a temporary emergency.

(3) Hours of operation allowed under paragraph (1) shall not be included in the peakload powerplant's operating hours 

for the purposes of the penalties in section 723(b).
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SEC. 405. AUTHORITY TO RESTRICT INCREASED USES OF PETROLEUM BY EXISTING 

POWERPLANTS.

The Secretary shall, by rule, require that, in the case of any existing electric powerplant which during calendar year 

1977 uses coal or another alternate fuel as a primary energy source, petroleum may not be used in such powerplant as 

a primary energy source in excess of the quantities of petroleum used in such powerplant as a primary energy source 

during such year unless a permit is issued by the Secretary authorizing such increased use of petroleum. Such permit 

shall be issued if—,

(1) the Administrator of the Environmental Protection Agency (or the appropriate State air pollution control agency) 

certifies to the Secretary (A) that the powerplant cannot comply with the requirements of the Clean Air Act, including 

any applicable implementation plan, as defined in section 110(d) of the Clean Air Act, without the issuance of such 

permit and (B) the petitioner has established the duration of the need for increased petroleum to comply with such 

plan; and

(2) the appropriate State regulatory authority has certified to the Secretary that the increased use of petroleum by such 

powerplant is necessary to prevent impairment of reliability of service.

Such permit shall be issued only for such period as the Secretary determines necessary under paragraph (1) or (2) for 

such increased use of petroleum.

TITLE V—SYSTEM COMPLIANCE OPTION

SEC. 501. ELECTRIC UTILITY SYSTEM COMPLIANCE OPTION.

(a) General Rule.—Existing electric powerplants owned or operated by an electric utility shall be considered in 

compliance with any prohibition under title III relating to the use of natural gas if there is in effect a plan of system 

compliance for such utility approved by the Secretary under subsection (b). No exemption under title III relating to the 

use of natural gas shall be available for any powerplant which is, or has ever been, covered by such an approved plan 

(other than an exemption under section 312(e)).

(b) Requirements for Plan Approval.—The Secretary shall, by order, approve any plan of system compliance submitted by an electric utility to the Secretary before January 1, 1980, if the Secretary finds that such plan—,

(1) identifies all powerplants owned or operated by such electric utility and indicates which of the powerplants—,

(A) would be subject to, or could be subject to, prohibitions under title III relating to the use of natural gas if such plan

were not approved; and

(B) of those so indicated in subparagraph (A), would be, or in the opinion of such electric utility would be likely to be, 

entitled to an exemption under title III relating to the use of natural gas if such plan were not approved;

(2) contains a commitment that, if such plan is approved, no new electric powerplant which is or is to be a base load 

powerplant owned or operated by such utility shall use natural gas or petroleum as its primary energy source (whether 

or not such powerplant

could qualify for an exemption under title II for such use);

(3) contains a commitment (including a schedule for an orderly

progression in satisfying such commitment) that, if such plan is approved, all existing electric powerplants owned or 

operated by such utility—,

(A) subject to subparagraph (B), on and after January 1, 1995, would not use natural gas as a primary energy source, 

except in the case of an intermediate load powerplant or a peakload powerplant, and then only in accordance with 

rules prescribed by the Secretary; and

(B) on and after January 1, 2000, would not use natural gas as a primary energy source except in the case of a temporary extension obtained under subsection (d);

(4) contains a commitment that, if such plan is approved, natural gas will not, on and after January 1, 1990, be used by 

powerplants owned or operated by such utility in excess of—,

(A) 20 percent (or such higher percentage as may be allowed under subsection (d)(2) of the electric utility's base 

period usage of natural gas, or, if lower,
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(B) the electric utility's minimum peakload requirement for the calendar year;

(5) contains a commitment that, if such plan is approved, the natural gas used by such utility will be obtained only 

under—,

(A) a contract entered into before the date of the enactment of this Act (other than under an extension or renewal of 

such contract occurring on or after such date); or

(B) a contract entered into on or after such date, or an extension or renewal occuring on or after such date of a contract 

extension, or renewal has been approved by the Secretary under subsection (g); and

(6) contains a 10–year forecast of such utility's demand for electricity, a 10–year construction forecast, and a 10–year 

financial plan, which provide a reasonable basis for concluding that the commitments in such plan will be carried out.

Approval of the Secretary under this subsection shall be conditioned on the utility involved updating on an annual 

basis the information contained in such plan to the extent provided under rules prescribed by the Secretary.

(c) Plan Revision.—A plan under subsection (b) may be revised but only if the Secretary, by order, approves such 

revision.

(d) Extension for Emergency or Peakload Purposes.—(1) For purposes of subsection (b)(3)(B), the Secretary may 

extend the date specified therein for not more than 5 years with respect to the use of natural gas by any powerplant if it 

is demonstrated that such use of natural gas is to be—,

(A) for emergency purposes consistent with section 312(e), or

(B) for peakload purposes, consistent with section 312(f).

(2) The Secretary may exempt from the requirements of subsection (b)(4) such quantities of natural gas as would 

otherwise exceed such requirement if it is demonstrated that such natural gas is used solely for emergency or peakload 

purposes described in paragraph (1)(A) or (B).

(e) Determination of Base Period Usage.—(1) For purposes of subsection (b)(4)(A), an electric utility's base period 

usage of natural gas shall be the sum of—,

(A) the quantities of natural gas used in calendar year 1976 by powerplants which are owned or operated by such 

utility and which were placed in service on or before Januray 1, 1976; plus

(B) one-half of the quantities used during the first 24 calendar–months after being placed in service by powerplants 

which are owned or operated by such utility and which were placed in service after January 1, 1976, and before the 

effective date of this Act.

(2) The Secretary may allow for the substitution of a higher percentage for the 20 percent specified in subparagraph 

(A) of subsection (b)(4) if he determines that the utility has demonstrated that such higher percentage is necessary—,

(A) because of delays which occurred, despite diligent good faith efforts, in the construction of powerplants which will 

use a primary energy source other than natural gas, or

(B) because it would not be feasible for such utility to comply with the requirements of such subsection (b)(4) in the 

absence of such higher percentage without impairing reliability of service.

(f) Determination of Minimum Peakload Requirement.—For purposes of subsection (b)(4)(B), an electric utility's 

minimum peakload requirement for any calendar year shall be defined as the total kilowatt hours generated during the 

calendar year by natural gas on the system of the applicant electric utility company system divided by the aggregate 

capacity of all the electric powerplants in such system, but not to exceed 1,500 full-load hours per year.

(g) Approval of Natural Gas Contracts.—The Secretary shall approve any contract, or contract extension or renewal, 

for purposes of applying subsection (b)(5)(B) with respect to any plan, if he determines that the electric utility which 

submitted such plan has demonstrated that the quantities available under such contract, or extension or renewal, do not 

exceed those which are necessary to meet the requirements of the powerplants under such plan. The Secretary may not 

approve any contract, or extension or renewal, which provides for the delivery of such natural gas after December 31, 

1999.

(h) Terms and Conditions—Any approval by the Secretary under subsection (b) shall be on such terms and conditions 

as the Secretary determines appropriate, including terms and conditions requiring the use of effective fuel conservation measures which are practicable and consistent with the purposes of this Act.

TITLE VI— FINANCIAL ASSISTANCE

SEC 601. ASSISTANCE TO AREAS IMPACTED BY INCREASED COAL OR URANIUM PRODUCTION.

(a) Designation of Impacted Areas.—(1) In accordance with such criteria and guidelines as the Secretary of Agriculture shall, by rule, prescribe, the Governor of any State may designate any area within such State for the purposes of 
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this section, if he finds that—,

(A) either (i) employment in coal or uranium production development activities in such area has increased for the most 

recent calendar year by 8 percent or more from the immediately preceding year or (ii) employment in such activities 

will increase 8 percent or more per year during each of the 3 calendar years beginning after the date of such finding;

(B) such employment increase has required or will require substantial increases in housing or public facilities and 

services or a combination of both in such area; and

(C) the State and the local government or governments serving such area lack the financial and other resources to meet 

any such increases in public facilities and services within a reasonble time.

The Secretary of Agriculture shall prescribe a rule containing criteria and guidelines for making a designation under 

this subsection, after consultation with the Secretary of Labor and the Secretary of Energy, not later than 180 days after 

the effective date of this Act.

(2) For purposes of paragraph (1)(C), increased revenues, including severance tax revenues, royalties, and similar fees 

to the State and local governments which are associated with the increase in coal or uranium development activities 

and which are not prohibited from being used under provisions of law in effect on the date of the enactment of this Act 

shall be taken into account in determining if a State or local government lacks financial resources.

(3) The Secretary shall, after consultation with the Secretary of Agriculture, approve any desgnation of an area under 

paragraph (1) only if—,

(A) the Governor of the State making the designation provides the Secretary in writing with the data and information 

on which such designation was made, together with such additional information as the Secretary may require to carry 

out the purposes of this section; and

(B) the Secretary determines that the requirements of subparagraphs (A), (B), and (C) of paragraph (1) have been met.

(b) Planning Grants.—(1) The Secretary of Agriculture may make a grant to any State in which there is an area designated and approved under subsection (a) for the purposes of developing a plan for such area which shall include 

determinations of—, (A) the anticipated level of coal or uranium production activities in such area;

(B) the socio-economic impacts which have occured or which are reasonably projected to occur as a result of the 

increase in coal or uranium production activities;

(C) the availability and location of resources within such area to meet the increased needs resulting from socio-economic impacts determined under subparagraph (B) (such as any increased need for housing, or public facilities 

and services); and

(D) the nature and expense of measures necessary to meet within a reasonable time the increased needs resulting from 

such impact for which there are no resources reasonably available other than under this section.

(2)(A) any grant for developing a plan under this subsection shall be for an amount equal to 100 percent of the costs of 

such plan, as determined by the Secretary of Agriculture.

(B) The aggregate amount granted under this subsection in any fiscal year may not exceed 10 percent of the total 

amount appropriated for purposes of this section for such year.

(3) The Governor of a State receiving a grant under this subsection for developing a plan shall submit a copy of such 

plan to the Secretary of Agriculture as soon as practicable after it has been prepared.

(c) Land Acquistion and Development Grants.—(1) In the case of any real property—,

(A) within an area for which a plan meeting the requirements of subsection (b)(1) has been approved;

(B) which is for housing or public facilities determined in such plan as necessary due to an increase in employment due 

to coal or uranium development activities;

(C) with respect to which the Secretary of Agriculture has determined that the State and the local governments serving 

such area do not have the financial resources to acquire or the legal authority to acquire by condemnation; and (D) with 

respect to which there has been an approval in writing by the Governor of such State that the Secretary of Agriculture 

exercise his authority under this paragraph;

the Secretary of Agriculture may acquire such real property or interest therein, by purchase, donation, lease, or exchange. Property so acquired shall be transferred to the State under such terms and conditions as the Secretary of 

Agriculture deems appropriate. Such terms and conditions shall provide for the reimbursement to the Secretary of 

Agriculture for the fair market value of the property, as determined by the Secretary of Agriculture. The value of any 
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improvement of such property made after such acquisition shall not be taken into account in determining the fair 

market value of such property under this subsection. Amounts so received by the Secretary of Agriculture shall be 

deposited in the Treasury of the United States as miscellaneous receipts.

(2) Any approval by a Governor of a State under paragraph (1) (D) shall constitute a binding commitment of such State 

to accept the property to be acquired and to provide reimbursement for the amount of the fair market value of such 

property as determined under paragraph (1).

(3) The Secretary of Agriculture may acquire property under paragraph (1) by condemnation only if he finds that—,

(A) such property is not available by means other than condemnation at a price which does not substantially exceed the 

fair market value of such property;

(B) other real property is not similarly available which is within the same designated area and which is suitable for the 

purposes to which the property involved is to be applied; and

(C) the State and the local governments serving such area lack the legal authority to acquire such property by condemnation.

(4)(A) In the case of any real property which meets the requirements of subparagraphs (A), (B), and (C) of paragraph 

(1), the Secretary of Agriculture may make a grant to the State in which such property is located for the purposes of 

acquiring such property, and for any site development which is consistent with the plan developed under subsection 

(b).

(B) In the case of property acquired by the Secretary of Agriculture under paragraph (1) and transferred to the State, 

the Secretary of Agriculture may make a grant to such unit of government for the purposes of the site development 

which is consistent with such plan.

(C) Grants for real property acquisition or site development or both under this paragraph may not exceed 75 percent of 

the costs therof, as determined by the Secretary of Agriculture.

(5) In the selection of real propery for acquisition and in such acquisition under this subsection, preference shall be 

given to real property which the Secretary of Agriculture determines at such time to be unoccupied or previously 

mined and abandoned.

(6)(A) Property held by the United States in trust for Indians or any Indian tribe may not be acquired by condemnation 

under this section.

(B) No property within the National Forest System (as defined in section 10 of the Forest and Rangeland Renewable 

Resources Planning Act of 1974) may be exchanged by the Secretary in any acquisition under paragraph (1).

(d) General Requirements Regarding Assistance.—(1) Assistance under this section shall be provided only upon 

application, which application shall contain such information as the Secretary of Agriculture shall prescribe.

(2) The Secretary of Agriculture may make any grant under this section in whole or in part to the local government or 

governments serving an area designated and approved under subsection (a), or to a council of local governments 

which includes one or more local governments serving such area (in lieu of making such grant solely to the State), if he 

has determined, after consultation with the Governor of the State, that to do so would be appropriate.

(3) The Secretary of Agriculture shall prescribe, by rule criteria for the allocation of assistance under this section. Such 

criteria shall give due weight to the magnitude of the employement increase involved, the financial resources of the 

designated area, and the ratio of the financial burden on the area to the resources available to such area.

(4) Assistance under this section shall be provided only if the Secretary of Agriculture is satisfied that—,

(A) the amounts expended by the State and the local governments involved for the same purposes for which such 

assistance is provided will not be reduced; and

(B) the amount of such assistance does not reflect any amount for which other Federal financial assitance is provided 

or on proper application would be provided.

(e) Definitions.—For the purposes of this section—,

(1) The term “coal or uranium development activities” means the production, processing, or transportation of coal or 

uranium.

(2) The term “site development” means necessary off-site improvements, such as the construction of sewer and water 

connections, construction of access roads, and appropriate site restoration, but does not include any portion of the 

construction of housing or public facilities.

(f) Reports.—Any person regularly engaged in any coal or uranium development activity within an area designated 

and approved under subsection (a) shall prepare and transmit a report to the Secretary of Energy within 90 days after a 

written request to such person by the Governor of the State in which such area is located. Such report shall include—,
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(1) projected employment levels for such activity by such person within such area during each of the following 3 

calendar years;

(2) the projected increase in employees in such area to engage in such activity during each of such calendar years;

(3) the projected quantity of coal (or uranium) to be produced, processed, or transported by such person during each of 

such calendar years; and

(4) actions such companies plan to take or are taking to provide needed housing and other facilities for their employees 

directly or by providing funds to the States or local communities for this purpose.

Copies of the report shall be provided to the Secretary of Energy and the Secretary shall, subject to the provisions of 

section 11(d) of the Energy Supply and Environmental Coordination Act of 1974, provide the report to the Secretary 

of Agriculture, the Governor, and the appropriate county or local officials and make it available for public review.

(g) Administration.—The Secretary of Agriculture shall carry out his responsibilities under this section through the 

Farmers Home Administration and such other agencies within the Department of Agriculture as he may determine 

appropriate.

(h) Appropriations Authorization.—(1) There is hereby authorized to be appropriated to the Secretary of Energy for 

purposes of this section, $60,000,000 for fiscal year 1979 and $120,000,000 for fiscal year 1980. The Secretary of 

Energy and the Secretary of Agriculture shall enter into an agreement for the allocation of funds appropriated pursuant 

to this section for carrying out their respective responsibilities under this section, including the amounts for personnel 

and administrative cost, and upon such agreement, the Secretary of Energy shall transfer to the Secretary of Agriculture amounts determined under that agreement.

(i) Protection From Certain Hazardous Actions.—Federal agencies having responsibilities concerning the health and 

safety of any person working in any coal, uranium, metal, or nonmetallic mine regulated by any Federal agency shall 

interpret and utilize their authorities fully and promply, including the promulgation of standards and regulations, to 

protect existing and future housing, property, persons, and public facilities located adjacent to or near active and 

abandoned coal, uranium, metal, and nonmetallic mines from actions occurring at such activities that pose a hazard to 

such property or persons.

(j) Reorganization.—The authority of the Secretary of Agriculture and the authority of the Secretary of Energy under 

this section may not be transferred to any other Secretary or to any other Federal agency under chapter 9 of title 5, 

United States Code, or under any other provision of law, other than under specific provisions of a law enacted after the 

date of the enactment of this Act. The preceding provisions of this subsection shall not preclude either Secretary from 

delegating any such authority to any officer, employee, or entity within such Secretary's department.

SEC. 602 LOANS TO ASSIST POWERPLANT ACQUISITIONS OF AIR POLLUTION CONTROL EQUIPMENT.

(a) Authority To Make Loans.—The Secretary may, in accordance with the provisions of this section and such rules 

and regulations as he shall prescribe, make a loan (and may make a commitment to loan) to any person who owns or 

operates any existing electric powerplant converting to coal or other alternate fuel as its primary energy source after 

the effective date of this Act for the purpose of financing the purchase and installation of one or more certified air 

pollution control devices for such electric powerplant.

(b) Limitations and Conditions.—A loan made under this section shall—,

(1) not exceed two-thirds of the cost of purchasing and installing the certified air pollution control devices;

(2) have a maturity date not extending beyond 10 years after the date such loan is made;

(3) bear interest at rate not less than (A) a rate determined by the Secretary of the Treasury, takin into consideration the 

average market yield of outstanding Treasury obligations of comparable maturity, plus (B) 1 percent;

(4) be made on the condition of payment to the Secretary of a loan fee in an amount equal to (A) such insurance fee as 

the Secretary determines is necessary to avoid a Federal revenue loss under this section, plus (B) 1 percent of the loan 

amount; and

(5) be made only if the Secretary finds that—,

(A) the financial assistance applied for is not otherwise available from other Federal agencies;

(B) the applicant is unable to obtain sufficient funds on reasonable terms and conditions from any other source;
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(C) there is continued reasonable assurance of full repayment

of the principal, interest, and fees; and

(D) competition among private entities for the provision of air pollution control devices for electric powerplants using 

coal as their primary energy source to be assisted under this section will be in no way limited or precluded.

(c) Allocation and Priorities.—In making loans or commitments to loan pursuant to this section, the Secretary shall—,

(1) allocate a minimum of 25 percent of available financial assistance to existing small municipal and rural 

powerplants; and

(2) give priority consideration to request for financial assistance by existing electric powerplants subject to any prohibition under title III (or under section 2 of the Energy Supply and Environmental Coordination Act of 1974).

(d) Definitions.—For purposes of this section—,

(1) The term “certified pollution control device” means a new indentifiable device which—,

(A) is used, in connection with a powerplant, to abate or control atmospheric pollution by removing, altering, disposing storing, or preventing the emission of pollutants;

(B) the appropriate State air pollution control agency has certified to the Administrator of the Environmental Protection Agency that such device is needed to meet, and is in conformity with, State requirements for abatement or 

control of atmospheric pollution or contamination;

(C) the Administrator of the Environmental Protection Agency has certified to the Secretary as not duplicating or 

displacing existing air pollution control devices with a remaining useful economic life in excess of 2 years and as 

otherwise being in furtherance of the requirements and purposes of the Clean Air Act;

(D) does not constitute or include a building, or a structural component of a building, other than a building used exclusively for the purposes set forth in subparagraph (A); and

(E) the construction of which began after the effective date of this Act.

(2) The term “small municipal or rural cooperative electric powerplant” means an electric generating unit, which—,

(A) by design is not capable of consuming fuel at a fuel heat input rate in excess of a rate determined appropriate by the 

Secretary by rule; and

(B) is owned or operated by a municipality or a rural electric cooperative.

(e) Records.—(1) The Secretary shall require all persons receiving financial assistance under this section to keep such 

records as the Secretary shall prescribe, including records which fully disclose the amount and disposition by such 

recipient of the proceeds of such assistance, the total cost of the project or undertaking in connection with which such 

assistance was given or used, the amount of that portion of the cost of the project or undertaking supplied by other 

sources, and such other records as will facilitate an effective audit.

(2) The Secretary and the Comptroller General of the United States, or any of their duly authorized representatives, 

shall, until the later of—,

(A) the expiration of 3 years after completion of the project or undertaking referred to in subsection (a), or

(B) full repayment of interest and principal on a loan made under this section, occurs,

have access for the purposes of audit, evaluation, examination to any books, documents, papers, and records of such 

receipts which in the opinion of the Secretary or the Comptroller General may be related or pertinent to such loan.

(f) Default.—(1) If there is a default in any payment by the obligor of interest or principal due under a loan entered into 

by the Secretary under this section and such defalut has continued for 90 days, the Secretary has the right to demand 

payment of such unpaid amount, unless the Secretary finds that such default has been remedied, or a satisfactory plan 

to remedy such default by the obligor has been accepted by the Secretary.

(2) In demanding payment of unpaid interest or principal by the obligor, the Secretary has all rights specified in the 

loan-related agreements with respect to any security which he held with respect to the loan, including the authority to 

complete, maintain, operate, lease, sell, or otherwise dispose of any property acquired pursuant to such loan or related 

agreements.

(3) If there is a default under any loan, the Secretary shall notify the Attorney General who shall take such action 

against the obligator or other parties liable thereunder as is, in his discretion, necessary to protect the interests of the 

United States. The holder of such loan shall make available to the United States all records and evidence necessary to 
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prosecute any such suit.

(g) Deposit of Receipts.—Amounts received by the Secretary as principal, interest, fees, proceeds from security acquired following default, or other amounts received by the Secretary in connection with loans made under this section 

shall be paid into the Treasury of the United States as micellaneous receipts.

(h) Authorization of Appropriation.—There are hereby authorized to be appropriated to the Secretary such sums as 

may be necessary to carry out the purposes of this section, but not to exceed $400,000,000 for fiscal year 1979 and 

$400,000,000 for fiscal year 1980. Authority granted to the Secretary under subsection (a) may be exercised only to 

the extent as may be provided in advance in appropriation Acts.

TITLE VII— ADMINISTRATION AND ENFORCEMENT

Subtitle A—Procedures

SEC. 701. ADMINISTRATIVE PROCEDURES.

(a) General Rules Making—Except to the extent other wise provided in this section or other provisions of this Act, 

rules prescribed under this Act shall be made in accordance with the procedures set forth in section 553 of title 5, 

United States Code.

(b) Notices of Rules and Orders Imposing Prohibitions.—Before the Secretary prescribes any rule or issues any order 

imposing a prohibition under this Act (other than under section 402), he shall publish such proposed rule or order in 

the Federal Register, together with a statement of the reasons for such rule or order and, in the case of a rule, a detailed 

statement of any special circumstances or characteristics required to be taken into account in prescribing such rule. A 

copy shall be transmitted to the person who operates any such powerplant or installation required to be specifically 

identified in such rule or order.

(c) Petitions for Exemptions.—(1) Any petition for an exemption from any prohibition under this Act or for any permit 

under section 405, shall be filed at such time and shall be in such form as the Secretary shall by rule prescribe. The 

Secretary, upon receipt of such petition, shall publish a notice thereof in the Federal Register together with a statement 

of the reasons set forth in such a petition for requesting such exemption or permit, and provide a period of public 

comment of at least 45 days for written comments thereon. Rules required under this paragraph shall be prescribed not 

later than 120 days after the date of the enactment of this Act.

(2) The Secretary, upon recept of such petition, shall notify the appropriate State agencies having primary authority to 

permit or regulate the construction or operation of the electric powerplant or, where appropriate, major fuel-burning 

installation which is the subject of such petition, and, to the maximum extent practicable, consult with such agencies.

(3) The Secretary, within 6 months after the period for public comment and hearing applicable to any petition for an 

exemption or permit, shall issue a final order granting or denying the petition for such exemption or permit, except that 

the Secretary may extend such period to a specified date if he publishes notice thereof in the Federal Register and 

includes with such notice a statment of the reasons for such extension.

(4) Any order for the approval of a system compliance plan under section 501, and any petition for such an order, shall 

be treated for purposes of this title the same as an order (or petition) for an exemption.

(d) PUBLIC COMMENT On PROHIBITIONS AND EXEMPTIONS.—(1) In the case of any proposed rule or order 

by the Secretary imposing a prohibition or any petition for any order granting an exemption (or permit) under this Act 

(other than under section 402), any interested person shall be afforded an opportunity to present oral data, views, and 

arguments at a public hearing. At such hearing any interested person shall have an opportunity to question—,

(A) other interested persons who make oral presentations,

(B) employees and contractors of the United States who have made written or oral presentations or who have participated in the development of the proposed rule or order or in the consideration of such petition, and

(C) experts and consultants who have provided information to any person who makes an oral presentation and which is 

contained in or referred to in such presentation,

with respect to disputed issues of material fact, except that the Secretary may restrict questioning if he determines that 

such questioning is duplicative or is not likely to result in a timely and effective resolution of such issues. Any oral or 

documentary evidence may be received, but the Secretary as a matter of policy shall provide for the exclusion of 

irrelevan, immaterial, or unduly repetitious evidence.
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(2) A rule or order subject to this section may not be issued except on consideration of the whole record or those parts 

thereof cited by a party and supported by and in accordance with the reliable, probative, and substantial evidence.

(e) TRANSCRIPT.— A transcript shall be kept of any public hearing made in accordance with this section.

(f) Environmental Protection Agency Comment.—A copy of any proposed rule or order to be prescribed or issued by 

the Secretary which imposes a prohibition under this Act (other than under section 402 or 404), or a petition for an 

exemption (or permit) under this Act (other than under section 402 or 404), shall be transmitted by the Secretary to the 

Administrator of the Environmental Protection Agency and the Secretary shall request such agency to comment 

thereon within the period provided to the public unless a longer period is provided under the Clean Air Act. In any 

such case, the Administrator of the Environmental Protection Agency shall be afforded the same opportunity to 

comment and question as is provided other interested persons under subsection (d).

(g) Federal Trade Commission Comment.—A copy of any proposed rule or order to be prescribed or issued by the 

Secreatry which imposes a prohibition under this Act (other than under section 402 or 404) with respect to a major 

fuel-burning installation or a boiler subject to section 401 or a petition by such installation or boiler for an exemption 

(or permit) under this Act (other than under section 402 or 404), shall be transmitted by the Secretary to the Federal 

Trade Commission and the Secretary shall request such Commission to comment thereon within the period provided 

to the public. In any such case, the Federal Trade Commission shall be afforded the same opportunity to comment and 

question as is provided other interested persons under subsection (d).

(h) Coordination With Other Provisions of Law.—(1) Except as provided in sections 702(c)(4), 723(d)(5), and 724 of 

this Act, title V of the Department of Energy Organization Act (42 U.S.C. 7191, et seq.) shall not apply with respect to 

this Act.

(2) The preceding provisions of this section shall not apply with respect to any exercise of authority under section 404.

(3) The procedures applicable under this Act shall not—,

(A) be considered to be modified or affected by any other provision of law unless such other provision specifically 

amends this

Act (or provisions of law cited herein), or

(B) be considered to be superseded by any other provision of law unless such other provision does so in specific terms, 

referring to this Act, and declaring that such provision supersedes, in whole or in part, the procedures of this Act.

SEC. 702. JUDICIAL REVIEW.

(a) Publication and Delay of Prohibition or Exemption To Allow for Review.—Any final rule or order prescribed by 

the Secretary imposing a prohition or granting an exemption (or permit) under this Act shall be published in the 

Federal Register, and shall not take effect earlier than the 60th calendar day after such rule or order is published.

(b) Publication of Denial of Exemption or Permit.—Any final order issued by the Secretary denying any petition for an 

exemption or a permit under this Act shall be published in the Federal Register, together with the reasons for such 

action.

(c) Judicial Review.—(1) Any person aggrieved by any final rule or order referred to in subsection (a) or in section 

404, or by the denial of a petiton for an order granting an exemption (or permit) referred to in subsection (b), may at 

any time before the 60th day after the date such rule, order, or denial is published under subsection (a) or (b), file a 

petition with the United States court of appeals for the circuit wherein such person resides, or has his principal place of 

business, for judicial review thereof. A copy of the petition shall be forthwith transmitted by the clerk of the court to 

the Secretary. The Secretary thereupon shall file in the court the written submissions to, and transcript of, the written 

or oral proceedings on which the rule or order was based as provided in section 2112 of title 28, United States Code.

(2) Upon the filing of the petition referred to in paragraph (1), the court shall have jurisdiction to review the rule, order, 

or denial in accordance with chapter 7 of title 5, United States Code, and to grant appropriate relief as provided in such 

chapter. No rule or order (or denial thereof) may be affirmed unless supported by substantial evidence.

(3) The judgment of the court affirming or setting aside, in whole or in part, any such rule, order, or denial shall be 

final, subject to review by the Supreme Court of the United States upon certiorari or certification as provided in section 

1254 of title 28, United States Code.

(4) Subject to the direction and control of the Attorney General, as provided in section 519 of title 28, United States 
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Code, attorneys appointed by the Secretary may appear for and represent the Secretary in any proceeding instituted 

under this section in accordance with section 502(c) of the Department of Energy Organization Act.

Subtitle B—Information and Reporting

SEC. 711. INFORMATION.

(a) Authority of Secretary.—For purposes of carrying out his responsibilities under this Act, the Secretary may require, under the authority of this Act or any other authority administered by him, any person owning, operating or 

controlling any electric powerplant or major fuel–burning installation, or any other person otherwise subject to this 

Act to submit such information and reports of any kind or nature directly to the Secretary necessary to implement the 

provisions of this Act and insure compliance with the provisions of this Act, and any rule or order thereunder. The 

provisions of section 11(d) of the Energy Supply and Environmental Coordination Act of 1974 shall apply with respect to information obtained under this section to the same extent and in the same manner as it applies with respect to 

energy information obtained under section 11 of such Act.

(b) Authority of President and Federal Energy Regulatory Commission.—In the case of responsibilities expressly 

given by this Act to the President or the Federal Energy Regulatory Commission, subsection (a) shall be applied as if 

the references to the Secretary were references to the President or the Federal Energy Regulatory Commission, as the 

case may be.

SEC. 712. COMPLIANCE REPORT.

Any person owning, operating, or proposing to operate one or more existing electric powerplants required to come into 

compliance with the prohibitions of this Act shall on or before January 1, 1980, and annually thereafter, submit to the 

Secretary a report identifying all such existing electric powerplants owned or operated by such person. Such report 

shall—,

(1) set forth the anticipated schedule for compliance with the applicable requirements and prohibitions by each such 

electric powerplant;

(2) indicate proposed or existing contracts or other commitments or good faith negotiations for such contracts or 

commitments for coal or another alternate fuel, equipment, or combinations thereof, which would enable such 

powerplant to comply with such prohibitions; and

(3) identify those electric powerplants, if any, for which application for temporary or permanent exemption from the 

prohibitions of this Act may be filed.

Subtitle C—–Enforcement

SEC. 721. NOTICE OF VIOLATION; OTHER GENERAL PROVISIONS.

(a) Notice of Violation.—(1) Whenever, on the basis of any information available, the Secretary finds that any person 

is in violation of any provision of this Act, or any rule or order thereunder, the Secretary shall issue notice of such 

violation. Any notice issued under this subsection shall be in writing and shall state with reasonable specificity the 

nature of the violation.

(2) Paragraph (1) shall not be construed to relieve any person of liability under the other provisions of this Act for any 

act or omission occurring before the issuance of notice.

(b) Individual Liability of Corporate Personnel—Any individual director, officer, or agent of a corporation who 

willfully authorizes, orders, or performs any of the acts or practices constituting in whole or in part a violation of this 

Act, or any rule or order thereunder, shall be subject to penalties under this section without regard to any penalties to 

which the corporation may be subject, except that no such individual director, officer, or agent shall be subject to 

imprisonment under section 722, unless he also knew of noncompliance by the corporation or had received from the 

Secretary notice of noncompliance by the corporation.

(c) Liability for Certain Peakload Operation.—No person shall be subject to any penalty under this subtitle with respect to the operation of any powerplant in excess of that allowed by an exemption granted on the basis of the operation of such powerplant as a peakload powerplant if it is demonstrated to the Secretary that such operation was 
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necessary to meet peakload demand and that other peakload powerplants within the same system as such 

powerplant—,

(1) were unavailable for service—,

(A) due to unit or system outages; or

(B) because operation of such other powerplants would result in their exceeding the hours of operation allowed under 

an exemption; and

(2) have not been operated other than to meet peakload demand.

(d) Federal Agencies.—The provisions of sections 722 and 723 shall not be construed to apply to any Federal agency 

or officer or employee therof acting in his official capacity.

SEC. 722. CRIMINAL PENALTIES

Any person who willfully violates any provision of this Act (other than section 402), or any rule or order thereunder, 

shall be subject to a fine of not more than $50,000, or to imprisonment for not more than one year, or both, for each 

violation.

SEC. 723. CIVIL PENALTIES.

(a) General Civil Penalty.—Any person who violates any provision of this Act (other than section 402), or rule or 

order thereunder, shall be subject to a civil penalty, which shall be assessed by the Secretary, of not more than $25,000 

for each violation. Each day of violation shall constitute a separate violation.

(b) Civil Penalties for Operation or Use of Fuels in Excess of Exemption.—(1) In the case of any electric powerplant 

granted an exemption, any person who operates such powerplant during any 12–calendar–month period in excess of 

that authorized in such exemption, shall be liable for a civil penalty, which shall be assessed by the Secretary. The 

amount of such civil penalty may not exceed $10 per barrel of petroleum or $3 per Mcf of natural gas used in operation 

of such powerplant in excess of that authorized in such exemption.

(2) Any person operating a major fuel-burning installation granted an exemption which, for any 12–calendar–month 

period, uses petroleum or natural gas, or both, in excess of that use allowed by such exemption shall be liable for a civil 

penalty, which shall be assessed by the Secretary. The amount of such civil penalty may not exceed $10 per barrel of 

petroleum or $3 per Mcf of natural gas which was used in excess of that use allowed by such exemption.

(c) Penalties For Violation of Section 402.—(1) Any person who violates any prohibition under subsection (b)(1) of 

section 402 with respect to providing of natural gas service to any person for use in outdoor lighting shall be subject to 

a civil penalty, which shall be assessed by the Secretary and which shall not exceed $500 for each outdoor lighting 

fixture involved.

(2) Any industrial user who violates prohibition under subsection (b)(2) of section 402 shall be subject to a civil 

penalty, which shall be assessed by the Secretary and which shall not exceed $500 per day of violation for each 

outdoor lighting fixture involved which was used by an industrial customer, but not to exceed $5,000 per outdoor 

lighting fixture involved.

(3) The penalties under this subsection shall only apply in the case of a violation by any person who at the time of the 

violation had knowledge or reasonably should have knowledge that the action involved was prohibited under section 

402.

(d) Assessment.—(1) Before issuing an order assessing a civil penalty against any person under this Act, the Secretary 

shall provide to such person notice of the proposed penalty. Such notice shall inform such person of his opportunity to 

elect in writing within 30 days after the date of receipt of such notice to have the procedures of paragraph (3) (in lieu of 

those of paragraph (2)) apply with respect to such assessment.

(2)(A) Unless an election is made within 30 calendar days after receipt of notice under paragraph (1) to have paragraph 

(3) apply with respect to such penalty, the Secretary shall assess the penalty, by order, after a determination of violation has been made on the record after an opportunity for an agency hearing pursuant to section 554 of title 5, United 

States Code, before an administrative law judge appointed under section 3105 of such title 5. Such assessment order 

shall include the administrative law judge's findings and the basis for such assessment.

(B) Any person against whom a penalty is assessed under this paragraph may, within 60 calendar days after the date of 
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the order of the Secretary assessing such penalty, institute an action in the United States court of appeals for the appropriate judicial circuit for judicial review of such order in accordance with chapter 7 of title 5, United States Code. 

The court shall have jurisdiction to enter a judgment affirming, modifying, or setting aside in whole or in part, the 

order of the Secretary, or the court may remand the proceeding to the Secretary for such further action as the court may 

direct.

(3)(A) In the case of any civil penalty with respect to which the procedures of this paragraph have been elected, the 

Secretary shall promptly assess such penalty, by order, after the date of the receipt of the notice under paragraph (1) of 

the proposed penalty.

(B) If the civil penalty has not been paid within 60 calendar days after the assessment order has been made under 

subparagraph (A), the Secretary shall institute an action in the appropriate district court of the United States for an 

order affirming the assessment of the civil penalty. The court shall have authority to review de novo the law and the 

facts involved, and shall have jurisdiction to enter a judgement enforcing, modifying, and enforcing as so modified, or 

setting aside in whole or in part, such assessment.

(C) Any election to have this paragraph apply may not be revoked except with the consent of the Secretary.

(4) If any person fails to pay an assessment of a civil penalty after it has become a final and unappealable order under 

paragraph (2), or after the appropriate district court has entered final judgment in favor of the Secretary under paragraph (3), the Secretary shall institute an action to recover the amount of such penalty in any appropriate district court 

of the United States. In such action, the validity and appropriateness of such final assessment order or judgement shall 

not be subject to review.

(5)(A) Notwithstanding the provisions of title 28, United States Code, or of section 502(c) of the Department of Energy Organization Act, the Secretary shall be represented by the general counsel of the Department of Energy (or any 

attorney or attorneys within the Department of Energy designated by the Secretary) who shall supervise, conduct, and 

argue any civil litigation to which paragraph (3) of this subsection applies (including any related collection action 

under paragraph (4)) in a court of the United States or in any other court, except the Supreme Court. However, the 

Secretary or the general counsel shall consult with the Attorney General concerning such litigation, and the Attorney 

General shall provide, on request, such assistance in the conduct of such litigation as may be appropriate.

(B) Subject to the provisions of section 502(c) of the Department of Energy Organization Act, the Secretary shall be 

represented by the Attorney General, or the Solicitor General, as approprite, in actions under this subsection, except to 

the extent provided in subparagraph (A) of this paragraph.

(C) Section 402(d) of the Department of Energy Organization Act shall not apply with respect to the functions of the 

Secretary under this subsection.

SEC. 724. INJUNCTIONS AND OTHER EQUITABLE RELIEF.

Whenever it appears to the Secretary that any person has engaged, is engaged, or is about to engage in acts or practices 

constituting a violation of this Act, or any rule or order thereunder, a civil action, may be brought, in accordance with 

section 502(c) of the Department of Energy Organization Act, in the appropriate district court of the United States to 

enjoin such acts or practices, and, upon a proper showing, the court shall grant, without bond, mandatory or prohibitive 

injuctive relief, including interim equitable relief.

SEC. 725. CITIZENS SUITS.

(a) General Rule.—Except as otherwise provided in subsection (b), any aggrieved person may commence a civil 

action for mandatory or prohibitive injuctive relief, including interim equitable relief, against the Secretary or the head 

of any Federal agency which has a responsibility under this Act if there is an alleged failure of the Secretary or such 

agency head to perform any act or duty under this Act jurisdiction over actions brought under this section, without 

regard to the amount in controversy or the citizenship of the parties.

(b) Notice to Secretary or Agency Head.—No action may be commenced under subsection (a) before the 60th calendar day after the date on which the plaintiff has given notice of such action to the Secretary or the agency head 

involved. Notice under this subsection shall be given in such manner as the Secretary shall prescribe by rule.

(c) Authority of Secretary To Intervene.—In any action brought under subsection (a), the Secretary, if not a party, may 
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intervene as a matter of right.

(d) Costs of Litigation.—The court, in issuing any final order in any action brought under subsection (a), may award 

costs of litigation (including reasonable attorney and expert witness fees) to any party, whenever the court determines 

such award is appropriate.

(e) Other Remedies To Remain Available.—Nothing in this section shall restrict any right which any aggrieved person 

(or class of aggrieved persons) may have under any statute or common law to seek enforcement of this Act or any rule 

thereunder, or to seek any other relief (including relief against the Secretary or the agency head involved).

Subtitle D—Preservation of Contractual Rights

SEC. 731. PRESERVATION OF CONTRACTUAL INTEREST.

(a) Right To Transfer Contractual Interests.—(1) If any person receives natural gas, the use of which is prohibited by 

the provisions of title II or title III or any rule or order thereunder, and if such natural gas is received pursuant to a 

contract in effect on April 20, 1977, between such person and any other person, such person receiving such natural gas 

may transfer all or any portion of such person's contractual interests under such contract and receive consideration 

from the person to whom such contractual interests are transferred. The consideration authorized by this subsection 

shall not exceed the maximum consideration established as just compensation under this section.

(2) Any person who would have transported or distributed the natural gas subject to a contract with respect to which 

contractual interests are transferred pursuant to paragraph (1) shall be entitled to receive just compensation (as determined by the Commission) from the person to whom such contractual interests are transferred.

(b) Determination of Consideration.—(1) The Commission shall, by rule, establish guidelines for the application on a 

regional or national basis (as may be appropriate) of the criteria specified in subsection (e)(1) to determine the 

maximum consideration permitted as just compensation under this section.

(2) The person transferring contractual interests pursuant to subsection (a)(1) and the person to whom such interests 

are transferred may agree on the amount of, method of determining, the consideration to be paid for such transfer and 

certify such consideration to the Commission. Except as provided in paragraph (4), such agreed-upon consideration 

shall not exceed the consideration determined by application of the guidelines prescribed by the Commission under 

paragraph (1).

(3) In the event the person transferring contractual interests pursuant to subsection (a)(1) and the person to whom such 

interests are to be transferred fail to agree, under paragraph (2), on the amount of, or method of determining, the 

consideration to be paid for such transfer, the Commission may, at the request of both such persons, prescribe the 

amount of, or method of determining, such consideration. Upon the request of either such person, the Commission 

shall make such determination on the record, after an opportunity for agency hearing. In any such latter case, the 

determination of the Commission shall be binding upon the party requesting that such determination be made on the 

record of the agency hearing. The consideration prescribed by the Commission shall not exceed the maximum consideration permitted as just compensation under this section. In prescribing the amount of, or method of determining, 

consideration under this paragraph, to the maximum extent practicable, the Commission shall utilize any liquidated 

damages provision set forth in the applicable contract, but in no event may the Commission prescribe consideration in 

excess of the maximum consideration permitted as just compensation under this section. .

(4) In the event that the consideration agreed under paragraph (2) exceeds the consideration determined by application 

of the guidelines prescribed by the Commission under paragraph (1), the Commission may approve such agreed-upon 

consideration if the Commission determines such agreed–upon consideration does not exceed the maximum consideration permitted as just compensation under this section.

(5) If consideration is agreed upon under paragraph (2) and such consideration exceeds the consideration determined 

by application of the guidelines prescrbed under paragraph (1), but does not exceed the maximum consideration 

permitted as just compensation under this section, the Commission may not require a refund of any portion of the 

agreed–upon consideration paid with respect to deliveries of natural gas occuring prior to the Commission's action 

under paragraph (4) approving or disapproving such consideration unless the Commission determines—,

(A) such agreed-upon consideration was fraudulently established;

(B) the processing of the request for approval of such agreed–upon consideration under paragraph (4) was willfully 

delayed by a party to the transfer; or
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(C) such agreed-upon consideration exceeds the maximum consideration permitted as just compensation under this 

section.

(c) Restrictions on Transfers Unenforceable.—(1) Any provision of any contract, which prohibits any transfer authorized by subsection (a)(1) or terminates such contract on the basis of such transfer, shall be unenforceable in any 

court of the United States and in any court of any State.

(2) No State may enforce any prohibition on any transfer authorized subsection (a)(1).

(d) Contractual Obligations Unaffected.—The person acquiring contractual interests transferred pursuant to subsection (a)(1) shall assume the contractual obligations which the person transferring such contractual interests has under 

such contract. This subsection shall not relieve the person transferring such contractual interest from any contractual 

obligation of such person under such contract if such obligation is not performed by the person acquiring such contractual interests.

(e) Definitions.—For purposes of this section—,

(1) The term “just compensation”, when used with respect to any transfer of contractual interest authorized by subsection (a)(1), means the maximum amount of, or method of determining, consideration which does not exceed the 

amount by which—,

(A) the reasonable costs (excluding capital costs) incurred, during the remainder of the period of the contract with 

respect to which contractual interests are transferred under subsection (a)(1), in direct association with the use of a 

fuel, other than natural gas, as a primary energy source by the applicable existing electric powerplant or major 

fuel-burning installation, exceed

(B) the price of natural gas under such contract during such period.

For purposes of subparagraph (A), the reasonable costs associated with the use of a fuel, other than natural gas, as a 

primary energy source shall include an allowance for the amortization, over the remaining useful life, of the undepreciated value of depreciable assets located on the premises containing such electric powerplant or major fuel burning 

installation, which assets were directly associated with the use of natural gas and not usable in connection with the use 

of such other fuel.

(2) The term “just compensation”, when used with respect to subsection (a)(2), means an amount equal to any loss of 

revenue, during the remaining period of the contract with respect to which contractual interests are transferred pursuant to subsection (a)(1), to the extent such loss (A) is directly incurred by reason of the discontinuation of the 

transportation or distribution of natural gas resulting from the transfer of contractual interests pursuant to subsection 

(a)(1), and (B) is not offset by revenues derived from other transportation or distribution which would not have occurred if such contractual interests had not been transferred.

(3) The term “contractual interests” with respect to a contract described in subsection (a)(1), includes the right to 

receive natural gas as affected by any applicable curtailment plan filed with the Commission or the appropriate State 

regulatory authority.

(4) The term “State” means each of the several States, the District of Columbia, Puerto Rico, any territory or possession of the United States, and any political subdivision of any of the foregoing.

(5) The term “interstate pipeline” means any person engaged in the transportation of natural gas in interstate commerce subject to the jurisdiction of the Commission under the Natural Gas Act.

(6) The term “Commission means the Federal Energy Regulatory Commission.

(7) The term “contract”, when used with respect to a contract for receipt of natural gas, which contract was in existence 

on April 20, 1977, does not include any renewal or extension occuring after such date unless such renewal or extension 

occurs pursuant to the exercise of an option by the person receiving natural gas under such contract.

(f) Coordination With the Natural Gas Act.—(1) Consideration paid by any interstate pipeline pursuant to this section 

shall be deemed just and reasonable for purposes of sections 4, 5, and 7 of the Natural Gas Act. The Commission shall 

not deny a passthrough by such interstate pipeline of such consideration based upon the amount of such consideration 

paid pursuant to this section.

(2) No person shall be subject to the jurisdiction of the Commission under the Natural Gas Act or to regulation as a 

common carrier under any provision of Federal or State law solely by reason of making any sale, or engaging in any 

transportation, of natural gas with respect to which the transfer of contractual interest is authorized under subsection 

(a)(1).

(3) Nothing in this section shall exempt from the jurisdiction of the Commission under the Natural Gas Act any 
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transportation in interstate commerce of natural gas, any sale in interstate commerce for resale of natural gas, or any 

person engaged in such transportation or such sale to the extent such transportation, sale or person is subject to the 

juridiction of the Commission under such Act without regard to the transfer of contractual interests under subsection 

(a)(1).

(4) Nothing in this section shall exempt any person from any obligation to obtain a certificate of public convenience 

and necessity for the transportation by an interstate pipeline of natural gas with respect to which the transfer of contractual interests is authorized under subsection (a)(1). The Commission shall not deny such a certificate for the 

transportation in interstate commerce of natural gas based upon the amount of consideration paid pursuant to this 

section.

(g) Volume Limitation.—No supplier of natural gas under any contract, with respect to which contractual interests 

have been transferred under subsection (a)(1), shall be required to supply natural gas during any relevant period in 

volume amounts which exceed the lesser of—,

(1) the volume determined by reference to the maximum delivery obligations specified in such contract;

(2) the volume which such supplier would have been required to supply, under the curtailment plan in effect for such 

supplier, to the person, who transferred contractual interests under subsection (a)(1), if no such transfer had occurred;

(3) the volume which would have been delivered, or for which payment would have been made, pursuant to such 

contract but for the prohibition on the use of such natural gas under title II or title III of this Act or any rule or order 

thereunder; and

(4) the volume actually delivered or for which payment would have been made pursuant to such contract during the 

12–calendar–month period ending immediately before such transfer of contractual interests pursuant to this section.

(h) Judicial Review.—Any action by the Commission under this section is subject to judicial review in accordance 

with chapter 7 of title 5, United States Code.

Subtitle E—Studies

SEC. 741. NATIONAL COAL POLICY STUDY.

(a) Study.—The President, acting through the Secretary and the Administrator of the Enviromental Protection 

Agency, shall make a full and complete investigation and study of the alternative national uses of coal available in the 

United States to meet the Nation's energy requirements consistent with national policies for the protection and enhancement of the quality of the environment and for economic recovery and full employment. In particular the study 

should identify and evaluate—,

(1) current and prospective coal requirements of the United States;

(2) current and prospective voluntary and mandatory energy conservation measures and their potential for reduction of 

the United States coal requirements;

(3) current and prospective coal resource production, transportation, conversion, and utilization requirements;

(4) the extent and adequacy of coal research, development, and demonstration programs being carried out by Federal, 

State, local, and nongovernmental entities (including financial resources, manpower, and statutory authority);

(5) programs for the development of coal mining technologies which increase coal production and utilization while 

protecting the health and safety of coal miners;

(6) alternative strategies for meeting anticipated United States coal requirements, consistent with achieving other 

national goals, including national secrity and environmental protection;

(7) existing and prospective governmental policies and laws affecting the coal industry with the view of determining 

what, if any, changes in and implementation of such policies and laws may be advisable in order to consolidte, coordinate, and provide an effective and equitable national energy policy consistent with other national policies; and

(8) the most efficient use of the Nation's coal resources considering economic (including capital and consumer costs, 

and balance of payments), social (including employment), environmental, technological, national defense, and other 

aspects.

(b) Report.—Within 18 months after the effective date of this Act, the President shall submit to the Congress a report 

with respect to the studies and investigations, together with findings and recommendations in order that the Congress 

may have such information in a timely fashion. Such report shall include the President's determinations and recommendations with respect to—,
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(1) the Nation's projected coal needs nationally and regionally, for the next 2 decades with particular reference to 

electric power;

(2) the coal resources available or which must be developed to meet those needs, including, as applicable, the programs for research, development, and demonstration necessary to provide technological advances which may greatly 

enhance the Nation's ability to efficiently and economically utilize its fuel resources, consistent with applicable environmental requirements;

(3) the air, water, and other pollution created by coal requirements, including any programs to overcome promptly and 

efficiently any technological or economic barriers to the elimination of such pollution;

(4) the existing policies and programs of the Federal Government and of State and local governments, which have any 

significant impact on the availability, production or efficient and economic utilization of coal resources and on the 

ability to meet the Nation's energy needs and environmental requirements; and

(5) the adequacy of various transportation systems, including roads, railroads, and waterways to meet projected increases in coal production and utilization.

Before submitting a report to the Congress under subsection (b), the President shall publish in the Federal Register a 

notice and summary of the proposed report, make copies of such report available, and accord interested persons an 

opportunity (of not less than 90 days' duration) to present written comments; and shall make such modifications of 

such report as he may consider appropriate on the basis of such comments.

(c) Authorization of Appropriations.—There is hereby authorized

to be appropriated to the Secretary for allocation between the Department

of Energy and the Environmental Protection Agency for fical

years 1979 and 1980, not to exceed $18,000,000, for use in carrying out

the purposes of this section.

SEC. 742. COAL industry performance and competion study.

(a) Study.—The Secretary shall make a complete investigation of

the performance and competion of the coal industy. The study shall

be an interagency effort under the direction of the Secretary and shall

include participation by—,

(1) the Federal Trade Commission,

(2) the Department of Justice,

(3) the Department of Energy,

(4) the Federal Energy Regulatory Commission,

(5) the Department of the Interior,

(6) the Department of Transportation,

(7) the Department of Commerce,

(8) the Department of Labor,

(9) the Department of State,

(10) the Department of the Treasury,

(11) the Interstate Commerce Commission,

(12) the Council on Wage and Price Stability,

(13) the Tennessee Valley Authority, and

(14) the Applalachian Regional Commission.

(b) Coverage of Study.—The study shall consider the following elements relating to competition:

(1) interests in, or ownership or production of, coal reserves by

firms which—,

(A) own or have an interest in commodity transportation systems by rail, water, or pipeline,

(B) own or produce oil, natural gas, or uranium, or

(C) use significant amounts of coal in their processes, including electrical generation and steelmaking,
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(2) prices, profitability, and levels of concentration in sales of various identifiable submarket structures in the coal 

industry, including the market for—,

(A) steam and metallurgical coal,

(B) low-sulfur coal,

(C) lignite, anthracite, bituminous and subbituminous coal,

(D) spot sales and long-term delivery contracts, and

(E) exports,

(3) overall profitability of coal operations,

(4) capital requirements, sources and uses of funds,

(5) vertical integration of production, cleaning, processing, gasification, liquefaction, transportation, marketing, distribution, combustion, and other phases of the coal fuel cycle,

(6) the effect of interfuel ownership, vertical integration, and market concentration upon innovation, efficiency, prices 

and profits,

(7) costs of production, transportation, processing, and other components of coal prices for different regions and 

different types of mines,

(8) responsiveness of coal supply to market demand,

(9) productive capacity,

(10) productivity,

(11) economics and disconomies of scale,

(12) distribution and flow of executive, managerial, and technical personnel between the various coal producers,

(13) management and directorate interlocks, (14) relationships to financial institutions,

(14) relationships to financial institutions,

(15) government-industry relationships, including lease bidding, technology, research, development, demonstration 

and transfer, and personnel movement,

(16) joint ventures, consortia, and cross-ownership,

(17) identification of the major owners of coal industry stock,

(18) control of patents and technologies,

(19) barriers to greater competition in the market for coal, and

(20) Federal income tax policies.

(c) Impacts on Coal-producing Counties and States.—The study shall evalute the economic and social impacts upon 

coal-producing counties and States of present and prospective land ownership patterns and levels of income, property, 

severance and other taxes paid by coal producers.

(d) Export of Metallugical Coal.—The study shall identify and evalute national policies toward the export of metallurgical coal as they relate to—,

(1) national secrity,

(2) national energy goals,

(3) balance of payments,

(4) comparative advantage in world trade,

(5) materials policy,

(6) United States and international reserves and resources, and

(7) likely future metallurigical technologies.

(e) Reports.—(1) Pursuant to the provisions of the preceding subsections of this section, the Secretary shall submit to 

the President for transmittal to the Congress such interim reports as he deems advisable and, not later than 18 months 

after effective date of this Act, a comprehensive and final report to the Congress containing the findings with respect to 

such study and investigation. Such report may include such legislative and administrative recommendations as the 

President deems advisable.

(2) Before submitting a report to the Congress under paragraph (1), the President shall—,

(A) publish in the Federal Register a notice and summary of the proposed report and make copies of such report 

available and afford interested persons an opportunity (of not less than 90 days' duration) to present written comments; 

and

(B) make such modifications of such report as he may consider appropriate on the basis of such comments. (f) Au-
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thorization of Appropriations.—There is authorized to be

appropriated to the Secretary for allocation between the Department of Energy and the other agencies participating in 

the study under this section for the fiscal years 1979 and 1980, not to exceed $18,000,000 to carry out the provisions of 

this section.

SEC. 743. IMPACT ON EMPLOYEES.

(a) Evaluation.—The Secretary shall conduct continuing evaluations of potential loss or shifts of employment which 

may result from any prohibition under this Act, including, if appropriate, investigating threatened plant closures or 

reductions in employment allegedly resulting from such prohibition. The results of such evaluations and each investigation shall promptly be made available to the public.

(b) Investigation and Hearings.—On a written request filed with the Secretary by or on behalf of any employee who is 

discharged or laid off, threatened with discharge or layoff, or otherwise discriminated against, by any person because 

of the alleged effects of any such prohibition, the Secretary shall investigate the matter and, at the request of any party, 

shall hold public hearings, after not less than 30 days notice, at which the Secretary shall require the parties, including 

any employer involved, to present information on the actual or potential effect of such prohibition on employment and 

on any alleged employee discharge, layoff, or other discrimination relating to prohibitions and the detailed reasons or 

justification therefor. At the completion of such investigation, the Secretary shall make findings of fact as to the effect 

of such prohibition on employment and on the alleged employee discharge, layoff, or discrimination and shall make 

such recommendations as he deems appropriate. Such report, findings, and recommendations shall be available to the 

public. The Secretary of Labor shall participate in each such investigation.

(c) Rule of Construction.—Nothing in this section shall be construed to require or authorize the Secretary to modify or 

withdraw any prohibition under this Act.

SEC. 744. STUDY OF COMPLIANCE PROBLEM OF SMALL ELECTRIC UTILITY SYSTEMS.

(a) Study.—The Secretary shall conduct a study of the problems of compliance with this Act experienced by those 

electric utility systems which have a total system generating capacity of less than 2,000 megawatts. The Secretary 

shall report his findings and his recommendations to the Congress not later than 2 years after the effective date of this 

Act.

(b) Authorization of Appropriations.—There is authorized to be appropriated to the Secretary for the fiscal year 1979 

not to exceed $500,000 to carry out the provisions of this section.

SEC. 745. EMISSIONS MONITORING.

(a) Monitoring Program.—The Administrator of the Environmental Protection Agency shall conduct, on a continuing 

basis, a program of monitoring, to the greatest extent possible and in accordance with applicable authorities and 

provisions of the Clean Air Act, the emissions from new and existing electric powerplants and major fuel–burning 

installations required to use coal or other alternate fuels by reason of this Act or otherwise using coal or other alternate 

fuels and the effect thereof on the public health, safety, and welfare and the movement of such emissions in the atmosphere and their impact on land and water and other resources and the public health in various regions of the Nation. Such Administrator shall submit an annual report to the Congress on such program. In carrying out his responsibilities under this section, the Administrator of the Environmental Protection Agency shall consult with the other 

Federal and State agencies concerned with the health effects of such emissions.

(b) Apporpriations Authorizations.—There is authorized to be appropriated to the Administrator of the Environmental 

Protection Agency $2,000,000 in fiscal year 1979 for the report required under section 806.

SEC. 746 SOCIOECONOMIC IMPACTS OF INCREASED COAL PRODUCTION AND OTHER ENERGY 

DEVELOPMENT.
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(a) Committee.—There is hereby established an interagency committee composed of the heads of the Departments of 

Energy, Commerce, Interior, Transportation, Housing and Urban Development, and Health, Education, and Welfare, 

the Environmental Protection Agency, the Appalachian Regional Commission, the Farmers' Home Administration, 

the Office of Management and Buget, and such other Federal agencies as the Secretary shall designate. In carrying out 

its functions the committee shall consult with the National Governors' Conference and interested persons, organizations, and entities. The chairman of the committee shall be designated by the President. The committee shall terminate 

90 days after the submission of its report under subsection (c).

(b) Functions of Committee.—It is the function of the committee to conduct a study of the socioeconomic impacts of 

expanded coal production and rapid energy development in general, on States, including local communities, and on 

the public, including the adequacy of housing and public, recreational, and cultural facilities for coal miners and their 

families and the effect of any Federal or State laws or regulations on providing such housing and facilities. The 

committee shall gather data and information on—,

(1) the level of assistance provided under this Act and any other programs related to impact assistance,

(2) the timeliness of assistance in meeting impacts caused by Federal decisions on energy policy as well as private 

sector decisions, and

(3) the obstacle to effective assistance contained in regulations of existing programs related to impact assistance.

(c) Report.—Within 1 year after the effective date of this Act, the committee shall submit a detailed report on the 

results of such study to the Congress, together with any recommendations for additional legislation it may consider 

appropriate.

SEC. 747. USE OF PETROLEUM AND NATURAL GAS IN COMBUSTORS.

The Secretary shall conduct a detailed study of the uses of petroleum and natural gas as a primary energy source for 

combustors and installations not subject to the prohibitions of this Act. In conducting such study, the Secretary 

shall—,

(1) identify those categories of major fuel-burning installations in which the substitution of coal or other alternate fuels 

for petroleum and natural gas is economically and technically feasible, and

(2) determine the estimated savings of natural gas and petroleum expected from such substitution.

Within 1 year after the effective date of this Act, the Secretary shall submit a detailed report on the results of such 

study to the Congress, together with any recommendations for legislation he may consider appropriate.

Subtitle F—Appropriations Authorization

SEC. 751 AUTHORIZATION OF APPROPRIATIONS.

There is authorized to be appropriated to the Secretary for fiscal year 1979 $11,900,000, to carry out the provision of 

this Act (other than provisions for which an appropriations authorization is otherwise expressly provided in this Act) 

and section 2 of the Energy Supply and Environmental Coordination Act of 1974.

Subtitle G—Coordination with other Provisions of Law

SEC. 761 EFFECT ON ENVIRONMENTAL REQUIREMENTS.

(a) Compliance With Applicable Environmental Requirements.—Except as provided in section 404, nothing in the 

Act shall be construed as permitting any existing or new electric powerplant or major fuel-burning installation to delay 

or avoid compliance with applicable environmental requirements.

(b) Local Environmental Requirements.—In the case of any new or existing facility—,

(1) which is subject to any prohibition under this Act, and

(2) which is also subject to any requirement of any local
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environmental requirement which may be stricter than any Federal or State environmental requirement,

the existence of such local requirement shall not be construed to affect the validity or applicability of such prohibition 

to such facility, except to the extent provided under section 212(b) or section 312(b); and the existence of such prohibition shall not be construed to preempt such local requirement with respect to that facility.

SEC. 762. EFFECT OF ORDERS UNDER SECTION 2 OF ESECA; AMENDMENTS TO ESECA.

(a) Effect of Construction Orders.—Any electric powerplant or major fuel–burning installation issued an order pursuant to section 2(c) of the Energy Supply and Environmental Coordination Act of 1974 that is pending on the effective date of this Act shall, notwithstanding the provisions of such section 2(c) or any other provision of this Act, be 

subject to the provisions of this Act as if it were a new electric powerplant or new major fuel-burning installation, as 

the case may be, except that if such order became final before such date, the provisions of title II of this Act shall not 

apply to such powerplant or installation.

(b) Effect of Prohibition Orders.—The provisions of titles II and III shall not apply to any powerplant or installation 

for which an order issued pursuant to section 2(a) of the Energy Supply and Environmental Coordination Act of 1974 

before the effective date of this Act is pending or final or which, on review, was held unlawful and set aside on the 

merits; except that any installation issued such an order under such section 2(a) which is pending on the effective date 

of this Act may elect to be covered by title II or III (as the case may be) rather than such section 2. Such an election 

shall be irrevocable and shall be made in such form and manner as the Secretary shall, within 90 days after the date of 

the enactment of this Act, prescribe. Such an election shall be made not later than 60 days after the date on which the 

Secretary prescribes the form and manner of making such election.

(c) Validity of Orders.—The preceding provisions of this Act shall not affect the validity of any order issued under 

subsection (a), or any final order under subsection (c), of section 2 of the Energy Supply and Environmental Coordination Act of 1974, and the authority of the Secretary to amend, repeal, rescind, modify, or enforce any such order, 

or rules applicable thereto, shall remain in effect notwithstanding any limitation of time otherwise applicable to such 

authority. Except as provided in this section, the authority of the Secretary under section 2 of such Act terminate on the 

effective date of this Act.

(d) Amendments to ESECA.—(1) Section 11(g) of the Energy Supply and Environmental Coordination Act of 1974 is 

amended—,

(1) by striking out paragraph (2), and

(2) in paragraph (1), by striking out “(g)(1)” and inserting in lieu thereof “(g)”.

SEC. 763. ENVIRONMENTAL IMPACT STATEMENTS UNDER NEPA.

The following actions are not deemed to be major Federal actions for purposes of section 102(2)(C) of the National 

Environmental Policy Act of 1969:

(1) the grant or denial of any temporary exemption under this Act for any electric powerplant or major fuel-burning 

installation;

(2) the grant or denial of any permanent exemption under this Act for any existing electric powerplant or major 

fuel-burning installation, other than an exemption—,

(A) under section 312(c), relating to cogeneration;

(B) under section 312(1), relating to scheduled equipment outages;

(C) under section 312(b), relating to certain State or local requirements;

(D) under section 312(g), relating to certain intermediate load powerplants; and

(3) the grant or denial of any exemption under this Act for any powerplant or major fuel-burning installation for which 

the Secretary finds, in consultation with the appropriate Federal agency, and publishes such finding that an environmental impact statement is required in connection with another Federal action and such statement will be prepared 

by such agency and will reflect the exemption adequately.

Except as provided in the preceding provisions of this section, any determination of what constitutes or does not 
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constitute a major Federal action shall be made under section 102 of the National Environmental Policy Act of 1969.

TITLE VIII— MISCELLANEOUS PROVISIONS

SEC. 801. COAL RESERVES DISCLOSURE.

(a) Disclosure.—Within 2 years after the effective date of this Act, and annually thereafter, the Secretary shall require 

the disclosure, pursuant to section 11 of the Energy Supply and Environmental Coordination Act of 1974, of the 

extent, characteristics, and productive capacity of coal reserves, or interest therein, within the United States held by 

any person or governmental entity, as necessary, and shall publish a summary of such information.

(b) Exemption for Small Reserves.—The Secretary may exempt small reserves from the requirements of this section if 

the Secretary finds that the imposition of the requirements of this section would impose an unreasonable economic 

burden on such person (or entity) or would not be of significant aid to achievement of the purposes of this Act, and 

publishes such findings in the Federal Register.

SEC. 802. COAL PREPARATION FACILITIES.

Section 102(c)(4) of the Energy Policy and Conservation Act is amended by adding at the end thereof (42 U. S. C. 

6211(c)(4) the following new sentence: ” Such term also includes construction of a coal preparation plant which is 

designed to reduce the sulfur content of coal produced from any coal mine.”.

SEC. 803. RAILROAD REHABILITATION FOR CARRIAGE OF COAL.

(a) Statement of Purpose.—It is the purpose of this section to facilitate and encourage the use of and conversion to coal 

as an energy resource in regions and States which can use coal in greater quantity as a substitute for imported petroleum.

(b) Authorization.—There is authorized to be appropriated, for deposit in the Railroad Rehabilitation and Improvement Fund established under section 502 of the Railroad Revitalization and Regulatory Reform Act of 1976 (45 

U.S.C. 822), not more than $100,000,000. The money appropriated to the Railroad and Improvement Fund pursuant to 

this subsection shall be expended by the Secretary of Transportation, in the same manner as other money in such Fund, 

to provide financial assistance to railroads for maintenance, rehabilitation, improvement, and acquisition of equipment 

and facilities which will be used for the rail transportaton of coal to regions or States which can use coal in greater 

quantities (whether or not such equipment or facilities were designed specifically for such purpose).

(c) Conforming Amendments.—(1) Section 501(2) of the Railroad Revitalization and Regulatory Reform Act of 1976 

(45 U.S.C. 821(2) is amended by insertint “(except as provided in section 803 (a) and (b) of the Powerplant and Industrial Fuel Use Act of 1978)” immediately after “or other features”.

(2) Section 502(b) of such Act (45 U.S.C. 822(b)) is amended by inserting at the end thereof the following: “Money 

appropriated to the Fund under section 803 (a) and (b) the Powerplant and Industrial Fuel Use Act of 1978 shall be

used to provide financial assistance to railroads for maintenance, rehabilitation, improvement, and acquisition of 

equipment and facilities which will be used for the rail transportation of coal to regions or States which can use coal in 

greater quantities as a substitute for imported petroleum.”.

(3) Section 502(f) of such Act (45 U.S.C. 822(f) is amended—,

(A) by striking out “and” at the end of paragraph (5) thereof;

(B) by inserting between paragraphs (5) and (6) the following new paragraph:

“(6) funds as may hereafter be appropriated to the Fund as authorized under section 803(a) and (b) of the Powerplant 

and Industrial Fuel Use Act of 1978; and” and

(C) by redesignating paragraph (6) as paragraph (7).

(4) Section 502(i) of such Act (45 U.S.C. 822(i)) is amended—,

(A) by striking out “and” at the end of paragraph (4) therof; (B) by striking out “Treasury,” at the end of paragraph (5) 

and inserting in lieu therof “Treasury, and”; and

(C) by adding at the end thereof the following new paragraph:

“(6) to carry out the purposes of section 803 (a) and (b) of the Powerplant and Industrial Fuel Use Act of 1978”.
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(5) Section 505(b)(2) of such Act (45 U.S.C. 825) is amended by inserting between the fourth and fifth sentences 

thereof the following new sentence: “with respect to funds appropriated for financial assistance under this section 

which were authorized pursuant to section 803 (a) and (b) of the Powerplant and Industrial Fuel Use Act of 1978, 

applications for such funds for the purpose of coal transportation shall be deemed to be for the provision of essential 

freight services.”.

(6) Section 505(d) (3) of such Act (45 U.S.C. 825) is amended—,

(A) by striking out in the first sentence “$600,000,000” and inserting in lieu thereof “$700,000,000”, and

(B) by striking out in the second sentence “$100,000,000” and inserting in lieu therof “$150,000,000”.

SEC. 804. OFFICE OF RAIL PUBLIC COUNSEL.

Section 27 of the Interstate Commerce Act is amended—,

(1) by striking out “and” at the end of paragraph (4)(d),

(2) by striking out the period at the end of paragraph (4)(e) and inserting in lieu thereof “and”, and

(3) by inserting after paragraph (4)(e) the following:

“(f) shall present the views of users, as well as the views of the general public and affected communities and, where 

appropriate, providers of rail services in proceedings of Federal agencies concerning—,

“(1) the impact of energy proposals and actions on rail transportation,

and

“(2) whether transportation policies are consistent with National energy policies.”.

SEC. 805. RETROACTIVE APPLICATION OF CERTAIN REMEDIAL ORDERS.

(a) General Rule.—Section 503 of the Department of Energy Organization Act (42 U.S.C. 7193) is amended by 

adding at the end thereof the following new subsection;

“(g) With respect to any person whose sole petroleum industry operation relates to the marketing of petroleum 

products, the Secretary or any person acting on his behalf may not exercise discretion to maintain a civil action (other 

than an action for injunctive relief) or issue a remedial order against such person for any violation of any rule or 

regulation if—,

“(1) such civil action or order is based on a retroactive application of such rule or regulation or based upon a retroactive interpretation of such rule or regulation; and

“(2) such person relied in good faith upon rules, regulations or ruling in effect on the date of the violation interpreting 

such rules or regulations.”.

(b) Technical Conforming Amendments.—In subsections (e) and (f) of such section 503, insert “preceding provisions 

of” before “this section”.

SEC. 806. ANNUAL REPORT.

The Secretary shall submit to the Congress on March 1 of each year a detailed report prepared by him in conjunction 

with the Administrator of the Environmental Protection Agency of the actions taken under this Act and under section 

2 of the Energy Supply and Environmental Coordination Act of 1974 during the preceding calendar year, and the 

actions to be taken. Each such report shall include data on the effectiveness of this Act in achieving the purposes of this 

Act.

SEC. 807. SUBMISSION OF REPORTS.

Copies of any report required by this Act to be submitted to the Congress shall be separately submitted to the Committee on Interstate and Foreign Commerce of the House of Representatives and the Committee on Energy and Natural 
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Resources of the Senate.

TITLE IX— EFFECTIVE DATES

SEC. 901. EFFECTIVE DATES.

Unless otherwise provided in this Act, the provisions of this Act shall take effect 180 days after the date of the enactment of this Act, except that the Secretary may issue rules pursuant to such provisions at any time after such date of 

enactment, which rules may take effect no earlier than 180 days after such date of enactment.

SEC. 902. INTERIM PETITION AND CONSIDERATION FOR CERTAIN EXEMPTIONS.

(a) Exemptions in the Case of Certain Powerplants.—In the case of—,

(1) any electric powerplant which, as of April 20, 1977, has received a final decision from the appropriate State agency 

authorizing the construction of such powerplant, and

(2) any electric powerplant (A) consisting of one or more combined cycle units owned or operated by an electric utility 

which serves at least 2,000,000 customers and (B) for which an application has been filed for at least one year before 

the date of the enactment of this Act with the appropriate State agency for authorization to construct such powerplant,

the Secretary may receive, consider, and grant (or deny) any petition for an exemption under title II or III, notwithstanding section 901 or the fact that all rules related to such petition have not been prescribed at the time.

(b) Exemptions Under Section 211(d).—The Secretary may receive, consider, and grant (or deny) any petition for any 

exemption under section 211(d), notwithstanding section 901 or the fact that all rules related to such petition have not 

been prescribed at the time.

Approved November 9, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORTS: No. 95–433 (Comm. on Ways and Means), No. 95–543, Vols I and II accompanying H.R. 8444 

(ad hoc Comm. on Energy), and No. 95–1749 (Comm. of Conference).

SENATE REPORT No. 95–988 (Comm. of Conference).

CONGRESSIONAL RECORD:

Vol. 123 (1977): July 18, considered and passed House. Sept. 8, considered and passed Senate, amended. Oct. 13, 

House agreed to certain Senate amendments; insisted on House amendment to Senate amendment No. 6.

Vol. 124 (1978): July 14, 17, 18, Senate agreed to conference report. Oct. 15, House agreed to conference report.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS:

Vol. 14, No. 45: Nov. 9, Presidential statement.

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