An Act to authorize appropriations to the Department of Energy, for energy research, development, and demonstration, and related programs in accordance with section 261 of the Atomic Energy Act of 1954, as amended, section 305 of the Energy Reorganization Act of 1974, and section 16 of the Federal Nonnuclear Energy Research and Development Act of 1974, and for other purposes.
PL 95-238 (S.1340), enacted 02/25/1978

PUBLIC LAW 95-238—FEB. 25, 1978 
92 STAT. 47 
Public Law 95-238 
95th Congress 
An Act 
To authorize appropriatioirs to the Department of Energy, for energy research, 
feb. 25, 1978 
development, and demonstration, and related programs in accordance with sec- 
[S. 1340] 
tion 261 of the Atomic Energy Act of 1954, as amended, section 305 of the 
Energy Reorganization Act of 1974, and section 16 of the Federal Nonnuclear 
Energy Research and Development Act of 1974, and for other purposes. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ That this Act may be Department of 
cited as the "Department of Energy Act of 1978—Civilian Energy Act of 
Applications". 
' 
1978—Civihan 
SEC. 2. In accordance with section 261 of the Atomic Energy Act of Apphcations. 
1954 (42 U.S.C. 2017), section 305 of the Energy Eeorganization Act 
of 1974 (42 U.S.C. 5875), section 16 of the Federal Nonnuclear Energy 
Research and Development Act of 1974 (42 U.S.C. 5915), there is 
hereby authorized to be appropriated to the Department of Energy, 
for energy research, development, and demonstration, and related 
activities, the sum of $6,081,445,000. 
TITLE 
I—ENERGY RESEARCH, DEVELOPMENT, 
AND 
DEMONSTRATION, AND RELATED ACTIVITIES 
OPERATING 
EXPENSES 
SEC. 101. For "Operating expenses", for the following programs, a 
sum of dollars equal to the total of the following amounts: 
Fossil Energy Development 
Fossil energy 
(1) C o a l : 
development. 
(A) Coal liquefaction, $107,000,000. 
(B) High Btu gasification (coal), $51,200,000. 
(C J Low Btu gasification (coal), $73,900,000. 
(D) Advanced power systems, $25,500,000. 
(E) Direct combustion (coal), $65,200,000. 
(F) Advanced research and supporting technology, $50,000,000: 
Provided^ That of those funds authorized, funds as may be neces-
sary are hereby authorized for the following purpose: The Secre- Study, 
tary of Energy shall conduct a feasibility study of the technology 
and the commercial applications of the process of fine grinding of 
coal and dry vegetable residues for the purpose of preparing these 
substances as clean burning fuels. 
(G) Demonstration plants and major test facilities (coal), 
$60,900,000. 
(H) Magnetohydrodynamics, $70,800,000: Provided, That at 
least 5 percent of the amount appropriated for magnetohydrody-
namics shall be expended for closed cycle technology. 
(2) Petroleum and natural gas: 
(A) Enhanced oil recovery, $46,100,000. 
(B) Enhanced gas recovery, $30,000,000. 
-
(C) Drilling, exploration and offshore technology, $7,600,000. 
(D) Processing and utilization, $1,400,000. 
(3) Oil shale and in situ technology: 
(A) Oil shale, $28,000,000. 
: 
. 
(B) In situ coal gasification, $19,000,000. 
92 STAT. 48 
PUBLIC LAW 95-238—FEB. 25, 1978 
Solar energy 
development. 
Geothermal 
energy 
development. 
Conservation 
research and 
development. 
Environment and 
safety research 
and development. 
Nuclear research 
and development. 
Solar Energy Development 
* 
" 
(4) Thermal applications, $104,700,000, including $94,400,000 for 
heating and cooling of buildings. 
(5) Fuels from biomass, $20,500,000; and under such rules and 
regulations as he may establish, the Department of Energy is author-
ized to guarantee a loan or loans for the demonstration of a 50 MW 
wood-fueled power generating facility. 
(6) 
Other Solar Energy Programs, $219,700,000, including 
$7,000,000 for a parallel design of a 1500 kilowatt wind energy con-
version system and the production of two test units, and $203,700,000 
for other solar electric applications: Provided^ That $7,500,000 of such 
sum is hereby authorized for design work for small community appli-
cations. 
Geothermal Energy Development 
(7) Engineering research and development, $15,500,000. 
(8) Resource exploration and assessment, $17,600,000. 
(9) Hydrothermal technology applications, $28,000,000. 
(10) Advanced technology applications, $24,300,000. 
(11) Utilization experiments, $16,000,000. 
(12) Environmental control and institutional studies, $8,100,000. 
(13) Low head hydroelectric program, $15,000,000. 
Conservation Research and Development 
(14) Electric energy systems and energy storage: 
'. 
> * ; 
(A) Electric energy systems, $36,800,000. 
(B) Energy storage systems, $48,500,000. 
(15) End use conservation and technologies to improve efficiency: 
(A) Industrial energy conservation, $38,000,000. 
(B) Buildings and community systems, $59,500,000: Provided, 
That $2,000,000 of such sum are hereby authorized for a research 
and development program in residential gas and oil furnaces. 
(C) Transportation energy conservation, $87,000,000, of which 
$1,000,000 shall be available to the Alternative Fuels Utilization 
Program for study of automotive utilization of alcohol fuels and 
blends: Provided, That of those funds authorized for the Alter-
native Fuels Utilization Program, funds as may be necessary are 
hereby authorized for the Department of Energy to conduct 
studies to determine the feasibility of utilizing existing distillery 
facilities or other types of refineries including but not limited to 
sugar refineries, in the implementation of programs to extend the 
supply of gasoline by means of a mixture of gasoline and alcohol. 
(D) Improved conversion efficiency, $69,700,000. 
(16) Energy extension service, $8,000,000. 
•: 
(17) Small grants for appropriate technology, $8,000,000. 
Environment and Safety Research and Development 
(18) Environmental and Safety Research and Development: 
(A) Overview and Assessmient, $50,010,000. 
(B) Environmental Research, $143,970,000. 
(C) Life Sciences Research, $38,113,000. 
(D) Decontamination and Decommissioning, $19,000,000. 
Nuclear Research and Development 
(19) Magnetic fusion, $207,900,000. 
(20) Fuel cycle research and development, $363,885,000, including 
$20,000,000 for international spent fuel disposition, pursuant to sec-
tion 107 and including $13,000,000 for research, development, assess-
ment, evaluation, and other activities at the Barnwell Nuclear Fuels 
PUBLIC LAW 95-238—FEB. 25, 1978 
92 STAT. 49 
Plant related to alternative fuel cycle technologies, safeguard systems, 
spent fuel storage and waste management, except that none of the 
authorized funds may be used for operations of the plant to process 
spent fuel from reactors. 
(21) Liquid metal fast breeder reactor, $333,300,000: Provided^ 
That $5,000,000 of such sums are hereby authorized for research and 
development on means to reduce the ability to divert plutonium from 
its intended purposes and to increase the detectability of plutonium 
if it should be so diverted. 
(22) Nuclear research and applications, $228,829,000. 
(23) Light water reactor safety facilities, $24,000,000. 
(24) High energy physics, nuclear physics, and basic energy sci-
ences, $413,394,000. 
(25) Nuclear materials security and safeguards, $40,106,000. 
(26) Uranium enrichment, $989,185,000. 
All Other Programs, $444,604,000, including— 
(27) (i) Not more than $1,000,000 for the Water Resources Council 
to carry out the provisions of section 13 of tlie Federal Nonnuclear 
Energy Research and Development Act of 1974 (42 TJ.S.C 5912) ; 
(ii) Funds to carry out the provisions of section 11 of the Federal 
Nonnuclear Energy Research and Development Act of 1974 (42 U.S.C 
6910), in the amount of $500,000 for the Council on Environmental 
Quality; and 
(iii) Program management and support: 
(a) Program direction, $222,900,000. 
(b) Institutional relations, $34,179,000, including funds to 
reimburse the National Bureau of Standards for costs incurred in 
carrying out the provisions of section 14 of the Federal Non-
nuclear Energy Research and Development Act of 1974 (42 U.S.C. 
5913), as amended and including $1,800,000, is authorized to be 
appropriated pursuant to this paragraph (iii) for financial awards 
by the Department of Energy to independent inventors for the 
purpose of carrying out section 14 of the Federal Nonnuclear 
. 
Energj' Research and Development Act of 1974 (42 U.S.C. 5913) 
as amended. 
(c) Supporting activities, $37,460,000. 
(d) International cooperation, $5,000,000. 
Prior Year Authorizations 
(28) The sum of $40,000,000 which represents the portion of the 
appropriations heretofore made in the total amount of $56,000,000 for 
project 76-1-a (clean boiler fuel demonstration plant (A-E) and 
long-lead procurement) which remains unobligated and is no longer 
needed is hereby authorized to be made available instead, in addition to 
any amounts appropriated for the purposes involved pursuant to this 
Act for the low Btu gasification program. 
PLANT AND CAPITAL EQUIPMENT 
SEC. 102. (a) For "Plant and capital equipment", including con-
struction, acquisition, or modification of facilities, including land 
acquisition; and acquisition and fabrication of capital equipment not 
related to construction, a sum of dollars equal to the total of the follow-
ing amounts: 
(1) Conservation Research and Development: 
(A) Project 78-1-a, high bay addition, Los Alamos Scientific 
Laboratory, New Mexico, $800,000, 
92 STAT. 50 
PUBLIC LAW 95-238—FEB. 25, 1978 
(2) Fossil Energy Development: 
' 
(A) Project 78-2-a, analytical research, chemistry and coal 
carbonization laboratory, Pittsburgh Energy Research Center, 
Pennsylvania, $6,600,000. 
? 
(B) Project 78-2-b, modifications and additions to Energy 
Research Centers, various locations, $3,000,000. 
^ 
(C) Project 78-2-c, low Btu fuel gas small industrial demon-
stration plants, sites undetermined (A-E and long-lead procure-
ment only), $6,000,000. 
(D) Project 78-2-d, solvent refined coal demonstration plant, 
site undetermined (total estimated cost is $300,000,000, including 
the Federal share thereof), $30,000,000. 
(3) Magnetic Fusion: 
(A) Project 78-3-a, mirror fusion test facility, Lawrence 
Livermore Laboratory, California, $94,200,000. 
(B) Project 78-3-b, fusion materials irradiation test facility, 
Hanford Engineering Development Laboratory, Washington 
' 
(A-E and long-lead procurement), $14,400,000. 
(4) Fuel Cycle Research and Development: 
' 
(A) Project 78-5-a, facilities for the national waste terminal 
storage program, site undetermined (land acquisition, A-E and 
long-lead procurement), $10,000,000. 
(B) Project 78-5-b, liquid metal fast breeder reactor integrated 
prototype equipment test facility, Oak Ridge National Labora-
tory, Oak Ridge, Tennessee (A-E and long-lead procurement 
only), $3,000,000. 
(C) Project 78-5-c, advanced isotope separation facility, site 
undetermined (A-E only), $3,500,000. 
(5) Liquid Metal Fast Breeder Reactor: 
(A) Project 78-6-a, modifications to reactors, $8,700,000. 
(B) Project 78-6-b, safeguards and security upgrading, Idaho 
Falls, Idaho, and Chicago, Illinois, $4,935,000. 
(C) Project 78-6-c, safety research experimental facility, 
Idaho National Engineering Laboratory, Idaho (A-E, long-lead 
procurement and limited construction only), $20,100,000. 
(D) Project 78-6-d, experimental breeder reactor II modifica-
tion, Idaho Falls, Idaho (A-E and selected long-lead procure-
ment only), $3,100,000. 
(E) Project 78-6-e, modifications to facilities. Liquid Metal 
Engineering Center, Santa Susanna, California (A-E only), 
$4,000,000. 
(F) Project 78-6-f, fuels and materials examination facility, 
Hanford Engineering Development Laboratory, Washington, 
$134,800,000. 
(G) Project 78-7-a, modifications to utility system 300 area, 
Hanford Engineering Development Laboratory, Washington. 
$3,600,000. 
(H) Project 78-7-b, test reactor area steam distribution sys-
tem upgrade, Idaho National Engineering Laboratory, Idaho, 
J 
$1,100,000. 
(6) Light Water Reactor Safety Facilities: 
(A) Project78-8-a, upgrade Test Area North hot shop facility, 
Idaho National Engineering Laboratory, Idaho, $3,000,000. 
(7) Environmental Research and Development: 
(A) Project 78-9-a, modifications and additions to biomedical 
and environmental research facilities, various locations, $6,000,000. 
PUBLIC LAW 95-238—FEB. 25, 1978 
92 STAT. 51 
(8) High Energy Physics: 
(A) Project 78-10-a, accelerator improvements and modifica-
tions, various locations, $4,500,000. 
(B) 78-10-b, proton-proton intersecting storage accelerator 
facility, Brookhaven National Laboratory, $10,500,000. 
(C) Project 78-11-a, master substation reliability and capacity 
improvements, Stanford Linear Accelerator Center, California, 
$1,700,000. 
(9) Nuclear Physics: 
(A) Project 78-12-a, accelerator and reactor improvements and 
modifications, various locations, $1,900,000. 
(B) Project 78-12-b, high intensity uranium beams, Lawrence 
Berkeley Laboratory, California, $6,000,000. 
(10) Basic Energy Sciences: 
(A) Project 78-13-a, national synchrotron light source, Brook-
haven National Laboratory, New York, $24,000,000. 
(B) Project 78-13-b, combustion research facility, Sandia Lab-
oratories, Livermore, California, $9,400,000. 
(11) Uranium Enrichment: 
(A) Project 78-14-a, centrifuge facilities modifications, vari-
ous locations, $30,000,000. 
(B) Project 78-14-b, process control modifications, plants, vari-
ous locations, $17,400,000, 
(C) Project 78-15-a, water system improvements, gaseous dif-
fusion plant, Paducah, Kentucky, $4,500,000. 
(12) Program Management and Support: 
(A) Project 78-1-b, chiller mcdifications for energy conserva-
tion, Bendix Plant, Kansas City, Missouri, $830,000. 
(B) Project 78-1-c, process waste heat utilization, gaseous dif-
fusion plant, Paducah, Kentucky, $5,700,000. 
(C) Project 78-19-a, prograjn support facility, Argonne 
National Laboratory, Illinois (A-E and long-lead procurement 
only), $5,000,000. 
(13) Project 78-21, General Plant Projects, $44,265,000. 
(14) Project 78-22, Construction Planning and Design, $10,000,000. 
(15) Capital Equipment Not Related to Construction: 
(A) Conservation research and development, $8,670,000. 
(B) Fossil energy development, $5,500,000. 
(C) Solar energy development, $7,900,000. 
(D) Geothermal energy development, $2,500,000. 
(E) Magnetic fusion, $27,600,000. 
(F) Fuel cycle research and development, $25,300,000. 
(G) Liquid metal fast breeder reactor, $35,650,000. 
(H) Nuclear research and applications, $18,595,000. 
(I) Light water reactor safety facilities, $800,000. 
(J) High energy physics, nuclear physics, and basic energy sci-
ences, $61,300,000." 
(K) Nuclear materials, security and safeguards, $2,794,000. 
(L) Uranium enrichment, $19,000,000. 
(M) Environmental research and development, $19,025,000. 
(N) Program management and support, $4,955,000. 
CHANGES TO PRIOR YEAR AUTHORIZATIONS 
(b)(1) There is authorized an additional sum of $100,000,000 for Appropriation 
the process equipment modifications, gaseous diffusion plants (project authorization. 
92 STAT. 52 
PUBLIC LAW 95-238—FEB. 25, 1978 
84 Stat. 299. 
7l-l-f), authorized by section 101(b) (1) of Public Law 91-273 (for 
a total project authorization of $920,000,000). 
(2) There is authorized an additional sum of $42,700,000 for the 
cascade uprating program, gaseous diffusion plants (project 74-1-g), 
87 Stat. 143. 
authorized by section 101(b)(1) of Public Law 93-60 (for a total 
project authorization of $460,000,000). 
(3) There is authorized an additional sum of $30,000,000 for the high 
Btu synthetic pipeline gas demonstration plant (project 76-1-b) 
89 Stat. 1063. 
authorized by section 101(b) (1) of Public Law 94-187 (for a total 
project authorization of $55,000,000). 
(4) There is authorized an additional sum of $131,250,000 for the 
low Btu fuel gas demonstration plant (project 76-1-c) authorized by 
section 101(b) (1) of Public Law 94-187 (for a total project authoriza-
tion of $150,000,000). 
(5) There is authorized an additional sum of $41,000,000 for the 
ten megawatt central receiver solar thermal powerplant, Barstow, 
California (project 76-2-b), authorized by section 101(b)(2) of 
Public Law 94-187 (for a total project authorization of $47,250,000) : 
Provided, That if the solar electrical generating facility hereby sup-
ported contributes electricity to a distribution network serving the 
public on a commercial basis and if any Federal monetary contribu-
tion is included in the rate base for the purpose of computing return 
on capital investment to such utilities, that portion of the capital costs 
derived from Federal funds and included in the rate base shall be 
recovei'cd with interest from the revenues of the solar facility. 
(6) There is authorized an additional sum of $24,000,000 for the 
Tokamak fusion test reactor, Princeton Plasma Physics Laboratory, 
Plainsboro, New Jersey (project 76-5-a), authorized by section 
101(b)(5) of Public Law 94-187 (for a total project authorization 
of $238,600,000). 
(7) There is authorized an additional smn of $1,750,000 for the 
conversion of existing steamplants to coal capability, gaseous diffusion 
plants and Feed Materials Production Center, Fernald, Ohio (project 
76-8-e), authorized by section 101(b) (8) of Public Law 94-187 (for 
a total project authorization of $15,250,000). 
(8) There is authorized an additional sum of $107,630,000 for the 
enriched uranium production facilities, gas centrifuge 
(project 
76-8-g), authorized by section 101(b) (8) of Public Law 94-187 (for 
a total project authorization of $362,630,000). 
(9) There is authorized an additional sum of $5,500,000 for the 
MHD component development and integration facility 
(project 
90 Stat. 1043. 
77-1-d) authorized by Public Law 94-373 (for a total project author-
ization of $13,200,000). 
(10) There is authorized an additional sum of $5,000,000 for the 
high performance fuel laboratory, Kichland, Washington (A-E only) 
(project 77-4-c) (for a total project authorization of $6,500,000). 
(11) There is authorized an additional sum of $23,000,000 for the 
fuel storage facility, Richland, Washington (project 77-4-d) (for a 
total project authorization of $30,000,000). 
(12) there is authorized an additional $3,200,000 for the 14 Mev 
intense neutron source facility, Los Alamos Scientific Laboratory, 
New Mexico (project 76-5-b) authorized by Public Law 94-187 (for 
a total project authorization of $25,300.000). 
88 Stat. 115. 
SEC. 103. Public Law 93-276, as amended, is further amended by 
, 
rescinding therefrom authorization for project 75-5-g, molten salt 
breeder reactor (preliminary planning preparatory to possible future 
PUBLIC LAW 95-238—FEB. 25, 1978 
92 STAT. 53 
demonstration project), $1,500,000, except for any funds heretofore 
obligated. 
SEC. 104. (a) Notwithstanding any other provision of Liw, juris-
diction over matters transferred to the Department of Energy from 
the Energy Research and Development Administration which on the 
effective date of such transfer were required by law, regulation, or 
administrative order to be made on the record after an opportunity 
for an agency hearing may be assigned to the Federal Energy Regu-
latory Commission or retained by the Secretary at his discretion. 
(b) Notwithstanding any other provision of law, the Secretary of 
Energy shall not be required to delegate to the Administrator of the 
Energy Information Administration any energy research, develop-
ment, and demonstration function vested in the Secretary, pursuant 
to the Atomic Energy Act, the Federal Nonnuclear Energy Research 
and Development Act, the Geothermal Research, Development and 
Demonstration Act, the Electric and Hybrid Vehicle Research, Devel-
opment and Demonstration Act, the Solar Heating and Cooling 
Demonstration Act, the Solar Energy Research, Development and 
Demonstration Act, and the Energy Reorganization Act. Additionally, 
the Secretary may utilize the capabilities of the Energy Information 
Administration as he deems appropriate for the conduct of such 
programs. 
(c) As part of the Department of Energy's responsibility to keep 
the Congress fully and currently informed, the Secretary shall make 
the following reports: 
(i) any proposal by the Secretary of the Department of Energy 
to terminate or make major changes in activities of the Govern-
ment-owned and contractor-operated facilities, the national 
laboratories, energy research centers and the operations offices 
managing such laboratories, shall not be implemented until the 
Secretary transmits the proposal, together with all pertinent data, 
to the Committee on Science and Technology of the House of 
Representatives and the Committee on Energy and Natural 
Resources of the Senate, and waits a period of thirty calendar 
days (not including any day on which either House of Congress 
is not in session because of an adjournment of more than three 
calendar days to a day certain) from the date on Avhich such 
report is received by such committees; and 
(ii) by January 31, 1978, the Secretary shall file a full and 
complete report on each such proposal which he has implemented, 
as described in the preceding paragraph, and any major program 
structure change with the Committee on Science and Technology 
of the House of Representatives and the Committee on Energy 
and Natural Resources of the Senate. 
SEC. 105. (a) The Secretary of Energy shall prepare and submit 
to the Congress within one year after the date of the enactment of this 
Act a study which considers the available options, including, but not 
limited to— 
(1) Federal technical and financial aid in support of decom-
missioning high level waste disposal operations at the Western 
New York Nuclear Service Center; 
(2) Federal operation of the Western New York Nuclear 
Service Center for the purposes of decommissioning existing 
facilities and disposing of existing high level wastes, including 
a demonstration program for the solidification of high level 
wastes for permanent burial; 
Jurisdiction over 
functions, 
transfer. 
42 u s e 7151a. 
42 u s e 7135a. 
Reports to 
congressional 
committees. 
42 u s e 7257 
note. 
Study, submittal 
to eongress. 
92 STAT. 54 
PUBLIC LAW 95-238—FEB. 25, 1978 
Public comments 
on study, 
submittal to 
Congress. 
(3) permanent Federal ownership of and responsibility for 
all or part of the Western New York Nuclear Service Center, 
and Federal receipt of the license from the present co-licensees; 
and 
(4) use of the Western New York Nuclear Service Center for 
other purposes. 
Public hearings. 
(b) Preparation of such study shall be in cooperation with the 
Nuclear Kegulatory Commission and other Federal agencies, the State 
of New York, the industrial participants, and the public, and the 
Secretary of Energy shall conduct informational public hearings (in 
lieu of any formal administrative hearings) prior to completion of 
the study. The study shall recommend allocation of existing and 
future responsibilities among the Federal Government, the State of 
New York, and present industrial participants in the Western New 
York Nuclear Service Center. 
(c) Ninety days prior to submission of the study to the Congress 
the Secretary of Energy shall release the proposed study for com-
ment by interested parties, and such comments as are received shall be 
submitted as attachments to the final study submitted to the Congress. 
(d) Nothing in this section shall be construed as intending to com-
mit the Federal Government to any new assistance or participation 
in the Western New York Nuclear Service Center, nor as relieving 
any party of any duties or responsibilities under any law, regulation, 
or contract to provide for the safe storage of nuclear waste. 
(e) For the purpose of carrying out the provisions of this section. 
Ante, p. 48. 
there is included in subsection 101(20) of this Act authorization of 
appropriations in the amount of $1,000,000. 
Barnwell Nuclear 
SEC. 106. (a) The Department of Energy shall conduct a study 
Fuel Plant, S.C, 
of the Barnwell Nuclear Fuel Plant located in South Carolina to 
^^^^y- 
determine if that facility may be utilized in support of the non-
proliferation objectives of the United States. 
(b) The study required under subsection (a) shall— 
(1) include an evaluation of the multinational and international 
management options available for utilizing the Barnwell facility; 
(2) include an evaluation of how Barnwell facility might be 
used to contribute to the INFCE, including preliminary studies 
on siting and design for adjacent facilities to the Barnwell 
Separations Plant to solidify liquid waste and mixed oxide evolv-
ing from the chemical separations process (these preliminary 
efforts being consistent with similar efforts undertaken as part 
of the INFCE); 
(3) include an evaluation of a possible role for the IAEA in 
utilization of Barnwell facility for international non-prolifera-
tion programs; 
(4) include an evaluation of the means b
;
y
^ which the Barnwell 
facility could be used in demonstration of improved safeguards 
equipment and proceedings; 
(5) include an evaluation of how the Barnwell facility can be 
used to complement the United States-approved research and 
development program at the Japanese Tokai Mura Reprocessing 
Plant, and non-proliferation research activities to be undertaken 
at the British Windscale Reprocessing Plant; and 
(6) include an evaluation of whether and how the Barnwell 
facility might be transferred to the Federal Government. 
(c) In carrying out the study required under subsection (a) due 
consideration shall be given to the impact which the effective and 
PUBLIC LAW 95-238—FEB. 25, 1978 
92 STAT. 55 
efficient use of resources and the independence of resource supply 
can have in assuring our national security objectives. 
(d) The study shall be completed and a report submitted to the 
Congress not later than six months after the date that funds are 
appropriated for carrying out the purposes of this section. In addi-
tion, the report shall include recommendations and funding require-
ments to implement recommended programs resulting from such 
study. 
(e) For the purpose of carrying out the provisions of this sec-
tion, there is included in subsection 101(20) of this Act an authoriza-
tion of appropriations in the amount of $1,000,000. 
SEC. 107. Department of Energy is hereby authorized to nndertako 
studies, in cooperation with other nations, on a multinational or inter-
national basis designed to determine tlie general feasibility of expand-
ing capacity of existing spent fuel storage facilities; to enter into 
agreements, subject to the consent of the Congress (by joint or con-
current resolution or legislation hereafter enacted), with other nations 
or groups of nations, for providing appropriate support to increase 
international or multinational spent fuel storage capacity; to conduct 
studies on the feasibility of establishing regional storage sites; and to 
conduct studies on international transportation and storage systems. 
For the purpose of carrying out the provisions of this section, there is 
included in subsection 101(20) of this Act authorization of appropri-
ations in the amount of $20,000,000: Provided^ That, notwithstanding 
any other provision of law, that none of the funds made available to the 
Secretary of Energy under any other authorization or aj)propriation 
Act shall be used, directly or indirectly, for the repurchase, transpor-
tation or storage of any foreign spent nuclear fuel (including anj'^ 
nuclear fuel irradiated in any nuclear power reactor located outside of 
the United States and operated by any foreign legal entity, govern-
ment or nongovernment, regardless of the legal ownership or control 
of the fuel or the reactor, and regardless of the origin or licensing of 
the fuel or the reactor, but not including fuel irradiated in a research 
reactor, and not including fuel irradiated in a power reactor if the 
President determines that (1) use of funds for repurchase, transporta-
tion or storage of such fuel is required by an emergency situation, (2) 
it is in the interest of the common defense and security of the United 
States to take such action, and (3) he notifies the Congress of the 
determination and action, with a detailed explanation and justifica-
tion thereof, as soon as possible) unless the President formally noti-
fies, with the report information specified herein, the Committee on 
Energy and Natural Resources of the Senate and the Committee on 
Science and Technology of the House of Representatives of such use 
of funds thirty calendar days, during such time as either House of 
Congress is in session, before the commitment, expenditure, or obliga-
tion of such funds: And -provided further^ That, notwithstanding any 
other provision of law, that none of tHe funds appropriated pursuant to 
this Act or any other funds made available to the Secretary of Energy 
under any other authorization or appropriation Act shall be used, 
directly or indirectly, for the repurchase, transportation, or storage of 
any such foreign spent nuclear fuel for storage or other disposition, 
interim or permanent, in the United States, unless the use of the funds 
for that specific purpose has been (1) previously and expressly 
authorized by Congress in legislation hereafter enacted, (2) previously 
and expressly authorized by a concurrent resolution, or (3) the Presi-
dent submits a plan for such use, with the report information specified 
herein, thirty days during which the Congress is in continuous session, 
Report, submittal 
to Congress. 
Ante, p. 48. 
Spent fuel storage 
facilities, studies 
and agreements. 
22 u s e 3224si. 
Report to 
congressional 
committees. 
92 STAT. 56 
PUBLIC LAW 95-238—FEB. 25, 1978 
31 use 1301 
as defined in the Impoundment Control Act of 1974, prior to snch use 
"ote. 
and neither House of Congress approves a resolution of disapproval of 
the plan prior to the expiration of the aforementioned thirty-day 
period. If such a resolution of disapproval has been introduced, but has 
not been reported by the Committee on or before the twentieth day after 
transmission of the Presidential message, a privileged motion shall be 
in order in the respective body to discharge the Committee from fur-
ther consideration of the resolution and to provide for its immediate 
consideration, using the procedures specified for consideration of aji 
impoundment resolution in section 1017 of the Impoundment Control 
Act of 1974 (31 U.S.C. 1407). Any report or plan proposed under this 
proviso shall include information and any supporting documentation 
thereof relating to policy objectives, technical description and discus-
sion, geographic information, cost data, justification and projections, 
legal and regulatory considerations, environmental impact informa-
tion and any related bilateral or international agreements, arrange-
ments or understandings: And provided 
further, 
That nothing con-
tained in this section shall be construed in any executive branch 
action, administrative proceeding, regulatory proceeding, or legal pro-
ceeding as being intended to delay, modify, or reverse the Memoran-
dum and Order of the Nuclear Regulatory Commission of June 28, 
1977, for the issuance of License No. XSNM-845 to the agent-applicant 
for the Government of India and the subsequent export thereby 
licensed of the special nuclear material to be used as fuel for the Tara-
pur Atomic Power Station or any other order of the Nuclear Regula-
tory Commission to issue a license for the export of special nuclear 
material and subsequent exports thereby licensed, or any consideration 
by the Nuclear Regulatory (Commission of a license application for 
the export of special nuclear material. 
T I T L E I I — G E N E R A L P R O V I S I O N S 
SEC. 201. Title I of the Energy Reorganization Act of 1974 is 
amended by adding at the end thereof the following new section: 
"PROVISIONS APPLICABLE TO AXXUAL AUTHORIZATION ACTS 
42 use 5821. 
"SEC. 111. (a) All appropriations made to the Energy Research 
and Development Adndnistration or the Administrator shall, except 
as otherwise provided by law, be subject to annual authorization in 
42 use 2017. 
accordance with section 261 of the Atomic Energy Act of 1954, sec-
tion 16 of the Federal Nonnuclear Energy Research and Development 
42 use 5915. 
Act of 1974, and section 305 of this Act. The provisions of this section 
Post, p. 81. 
shall apply with respect to appropriations made pursuant to the Act 
providing such authorization (hereinafter in this section referred to 
as 'annual authorization Acts'). 
"(b)(1) Funds appropriated pursuant to an annual authorization 
Act for 'Operating expenses' may be used for— 
" ( A ) the construction or acquisition of any facilities, or major 
items of equipment, which may be required at locations other than 
installations of the Administration, for the performance of 
research, development, and demonstration activities, and 
" ( B ) grants to any organization for purchase or construction 
of research facilities. 
No such funds shall be used under this subsection for the acquisition 
of land. Fee title to all such facilities and items of equipment shall be 
vested in the United States, unless the Administrator or his designee 
PUBLIC LAW 95-238—FEB. 25, 1978 
92 STAT. 57 
determines in writing that the research, development, and demonstra-
tion authorized by such Act would best be implemented by permitting 
fee title or any other property interest to be vested in an entity other 
than the United States; but before approving the vesting of such title 
or interest in such entity, the Administrator shall (i) transmit such 
determination, together with all pertinent data, to the Committee on 
Science and Technology of the House of Representatives and the Com-
mittee on Energy and Natural Resources of the Senate and (ii) wait 
a period of thirty calendar days (not including any day in which 
either House of Congress is not in session because of adjournment of 
more than three calendar days to a day certain), unless prior to the 
expiration of such period each such committee has transmitted to the 
Administrator written notice to the effect that such committee has no 
objection to the proposed action. 
"(2) No funds shall be used under paragraph (1) for any facility 
or major item of equipment, including collateral equipment, if the 
estimated cost to the Federal Government exceeds $5,000,000 in the 
case of such a facility or $2,000,000 in the case of such an item of 
equipment, unless such facility or item has been previously authorized 
by the appropriate committees of the House of Representatives and 
the Senate, or the Administrator— 
"(A) transmit to the appropriate committees of the House of 
Representatives and the Senate a report on such facility or item 
showing its nature, purpose, and estimated cost, and 
"(B) waits a period of thirty calendar days (not including any 
day in which either House of Congress is not in session because 
of adjournment of more than three calendar days to a day cer-
tain), unless prior to the expiration of such period each such 
committee has transmitted to the Administrator written notice to 
the effect that such committee has no objection to the proposed 
action. 
"(c)(1) Not to exceed 1 per centum of all funds appropriated 
pursuant to any annual authorization Act for 'Operating expenses' 
may be used by the Administrator to construct, expand, or modify 
laboratories and other facilities, including the acquisition of land, 
at any location under the control of the Administrator, if the Admin-
istrator determines that (A) such action would be necessary because of 
changes in the national programs authorized to be funded by such 
Act or because of new scientific or engineering developments, and 
(B) deferral of such action until the enactment of the next author-
ization Act would be inconsistent with the policies established by 
Congress for the Administration. 
"(2) No funds may be obligated for expenditure or expended under 
paragraph (1) for activities described in such paragraph unless— 
"(A) a period of thirty calendar days (not including any day 
in which either House of Congress is not in session because of 
adjournment of more than three calendar days to a day certain) 
has passed after the Administrator has transmitted to the appro-
priate committees of the House of Representatives and the Senate 
a written report containing a full and complete statement con-
cerning (i) the nature of the construction, expansion, or modifi-
cation involved, (ii) the cost thereof, including the cost of any 
real estate action pertaining thereto, and (iii) the reapon why 
such construction, expansion, or modification is necessary and 
in the national interest, or 
Report to 
congressional 
committees; 
Expenditure 
limitations. 
Report to 
congressional 
committees. 
Limitation. 
Report, 
transmittal to 
cong 
committees. 
Notice. 
92 STAT. 58 
PUBLIC LAW 95-238—FEB. 25, 1978 
Report, 
transmittal to 
cong 
committees. 
Notice. 
Funds merger, 
limitation. 
Construction 
design services. 
"(B) each such committee before the expiration of such period 
has transmitted to the Administrator a written notice to the effect 
that such committee has no objection to the proposed action; 
except that this paragraph shall not apply to any project the esti-
mated total cost of which does not exceed $50,000. 
"(d)(1) Except as otherwise provided in the authorization Act 
involved— 
"(A) no amount appropriated pursuant to any annual author-
ization Act may be used for any program in excess of the amount 
actually authorized for that particular program by such Act, and 
"(Bj no amount appropriated pursuant to any annual author-
ization Act may be used for any program which has not been 
presented to, or requested of the Congress, 
unless (i) a period of thirty calendar days (not including any day in 
which either House of Congress is not in session because of adjourn-
ment of more than three calendar days to a day certain) has passed 
after the receipt by the appropriate committees of the House of Repre-
sentatives and the Senate of notice given by the Administrator contain-
ing a full and complete statement of the action proposed to be taken and 
the facts and circumstances relied upon in support of such proposed 
action, or (ii) each such committee before the expiration of such period 
has transmitted to the Administrator written notice to the effect that 
such committee has no objection to the proposed action. 
"(2) Notwithstanding any other provision of this section or the 
authorization Act involved, the aggregate amount available for use 
within the categories of coal, petroleum and natural gas, oil shale, 
solar, geothermal, nuclear energy (non-weapons), environment and 
safety, and conservation from sums appropriated pursuant to an 
annual authorization Act may not, as a result of reprograming, be 
decreased by more than 10 per centum of the total of the sums appro-
priated pursuant to such Act for those categories. 
"(e) Subject to the applicable requirements and limitations of this 
section and the authorization Act involved, when so specified in an 
appropriation Act, amounts appropriated pursuant to any annual 
authorization Act for 'Operating expenses' or for 'Plant and capital 
equipment' may be merged with any other amounts appropriated for 
like purposes pursuant to any other Act authorizing appropriations for 
the Administration: Provided^ That no such amounts appropriated 
for 'Plant and capital equipment' may be merged with amounts appro-
priated for 'Operating expenses'. 
"(f) When so specified in an appropriation Act, amounts appro-
priated pursuant to any annual authorization Act for 'Operating 
expenses' or for 'Plant and capital equipment' may remain available 
until expended. 
" (g) The Administrator is authorized to perform construction design 
services for any administration construction project whenever (1) such 
construction project has been included in a proposed authorization 
bill transmitted to the Congress by the Administration, and (2) the 
Administration determines that the project is of such urgency in order 
to meet the needs of national defense or protection of life and property 
or health and safety that construction of the project should be ini-
tiated promptly upon enactment of legislation appropriating funds 
for its construction. 
"(h) When so specified in appropriation Acts, any moneys received 
by the Administration may be retained and used for operating 
expenses, and may remain available until expended, notwithstanding 
PUBLIC LAW 95-238—FEB. 25, 1978 
92 STAT. 59 
the provisions of section 3617 of the Kevised Statutes (31 U.S.C. 484); 
except that— 
"(1) this subsection shall not apply with respect to sums 
received from disposal of property under the Atomic Energy Com-
munity Act of 1955 or the Strategic and Critical Materials Stock-
piling Act, as amended, or with respect to fees received for tests or 
investigations under the Act of May 16, 1910, as amended (42 
U.S.C. 2301; 50 U.S.C. 98h; 30 U.S.C. 7); and 
"(2) revenues received by the Administration from the enrich-
ment of uranium shall (when so specified) be retained and used 
for the specific purpose of ofi^settin^ costs incurred by the Adminis-
tration in providing uranium enrichment service activities, 
"(i) When so specified in an appropriation Act, transfers of sums 
from the 'Operating expenses' appropriation made pursuant to an 
annual authorization Act may be made to other agencies of the Govern-
ment for the performance of the work for which the appropriation 
is made, and in such cases the sums so transferred may be merged 
with the appropriations to which they are transferred.". 
SEC. 202. (a) The Secretary of Energy is authorized to start any 
project set forth in section 102(a) (1) through (12) only if at the 
time the project is started the then currently estimated cost does not 
exceed by more than 25 per centum the estimated cost set forth for 
that project; and the total cost of any such project shall not exceed the 
estimated cost set forth for that project by more than 25 per centum 
(if such estimated cost was $5,000,000 or more) unless and until 
appropriations covering such excess are authorized. 
(b) The Secretary of Energy is authorized to start any project under 
section 102(a) (13) only if the maximum currently estimated cost of 
such project does not exceed $750,000 and the then maximum currently 
estimated cost of any building included in the project does not exceed 
$300,000 and the total cost of all projects undertaken under such sec-
tion shall not exceed the estimated cost set forth in such section by 
more than 10 per centum. 
SKC. 203. The Secretary of Energy, in C(X)peration with the Secre-
tary of State, shall report to the Committees on Science and Technol-
ogy and International Relations of the House of Representatives and 
the Committees on Energy and Natural Resources and Foreign Rela-
tions of the Senate, within six months after the date of the enactment 
of this Act, on the effects of the April 20, 1977, message from the 
President of the United States, "Establishing for the United States a 
Strong and Effective Nuclear Non-Proliferation Policy", on nuclear 
research and development cooperative agreements. This report shall 
include impacts of the message and related initiatives through the pro-
mulgation, repeal, or modification of Executive orders. Presidential 
proclamations, treaties, other international agreements, and other 
pertinent documents of the President, the Executive Office of the Presi-
dent, the administrative agencies, and the departments, on cooperation 
between the ITnited States and any other nation in the research, devel-
opment, demonstration, and commercialization of all nuclear fission 
and nuclear fusion technologies. After the initial report, the Admin-
istrator shall report to such Committees on each subsequent major 
related initiative. 
SEC. 204. (a) In carrying out the programs for which funds are 
authoiized by this Act, the Secretary of Energy shall provide a real-
istic and adequate opportunity for small business concerns to partici-
pate in such programs to the optimum extent feasible consistent with 
the size and nature of the projects and activities involved. 
Funds, transfer. 
Limitation. 
Ante, p. 49. 
Limitation. 
Report to 
congressional 
committees. 
22 u s e 2429 
note. 
Small businesses 
participation in 
programs. 
42 u s e 7256 
note. 
39-194 O—80—pt. 1 
8 : QL3 
92 STAT. 60 
PUBLIC LAW 95-238—FEB. 25, 1978 
Report to 
congressional 
committees. 
Transfer of 
municipal 
installations, 
annual 
assistance. 
42 use 2391. 
Report to 
congressional 
committees. 
(b) At least once every six months, or upon request, the Secretary 
of Energy shall submit to the appropriate committees of the House 
of Representatives and the Senate a full report on the actions taken 
in carrying out subsection (a) during the preceding six months, includ-
ing the extent to which small business concerns are participating in 
the programs involved and in projects and activities of various types 
and sizes within each such program, and indicating the steps currently 
being taken to assure such participation in the future. 
SEC. 205. (a) Section 91 of chapter 9 of the Atomic Energy Com-
munity Act of 1955 is amended— 
(1) by striking out subsection a. and inserting in lieu thereof 
the following: 
"a. From the date of transfer of any municipal installations to a 
governmental or other entity at or for the community, the Admin-
istrator is authorized, for a period of ten years, to make annual assist-
ance payments of just and reasonable sums to the State, county, or 
local entity having jurisdiction to collect property taxes or to the 
entity receiving the installation transferred hereunder: Provided^ how-
ever^ That with respect to the cities of Oak Ridge, Tennessee, and 
Richland, Washington, the Richland School District, the T^s Alamos 
School Board, and the county of Los Alamos, New Mexico, the Admin-
istrator is authorized to continue to make assistance payments of just 
and reasonable sums after expiration of such ten-year period: Pro-
vided further, That the Administrator is also authorized to make pay-
ments of just and reasonable sums to Anderson County and Roane 
County, Tennessee. In determining the amount and recipient of such 
payments the Administrator shall consider— 
"(1) the approximate real property taxes and assessments for 
local improvements which would be paid to the governmental 
entity upon property within the community if such property were 
not exempt from taxation by reason of Federal ownership; 
" (2) the maintaining of municipal services at a level which will 
not impede the recruitment or retention of personnel essential to 
the Energy Research and Development Administration programs; 
" (3) the fiscal problems peculiar to the governmental entity by 
reason of the construction at the community as a single-purpose 
national defense installation under emergency conditions; 
"(4) the municipal services and other burdens imposed on the 
governmental or other entities at the community by the United 
States in its operations in the project area; and 
" (5) the tax revenues and sources available to the governmental 
entity, its efforts and diligence in collection of taxes, assessment of 
pix)perty, and the efficiency of its operations."; and 
(2) by striking out subsection d. and inserting in lieu thereof 
the following: 
"d. With respect to any entity not less than six months prior to the 
expiration of the ten-year period referred to in subsection a. (or not 
less than six months prior to June 30, 1979, in the case of the cities of 
Oak Ridge, Tennessee, and Richland, Washington, and the Richland 
School District; or not less than six months prior to June 30, 1986, in 
the case of Anderson County and Roane County, Tennessee, and the 
Los Alamos School Board; and not less than six months prior to 
June 30, 1987, in the case of the county of Los Alamos, New Mexico), 
the Administrator shall present to the appropriate committees of the 
House of Representatives and the Senate recommendations as to the 
need for any further assistance payments to such entity.". 
PUBLIC LAW 95-238—FEB. 25, 1978 
92 STAT. 61 
(b) Chapter 9 of such Act is further amended by striking out sec-
tion 94 and inserting in lieu thereof the following: 
"SEC. 94. CONTRACTS.—The Administrator is authorized, without 
regard to section 3679 of the Revised Statutes, to enter into a contract 
with any governmental or other entity to which payments are author-
ized to be made pursuant to section 91, obligating the Administrator to 
make to such entity the payments directed or authorized to be made by 
section 91: Provided^ however^ That the term of such contracts, in the 
case of the cities of Oak Ridge, Tennessee, and Richland, Washington, 
and the Richland School District, shall not extend beyond June 30, 
1979; and in the case of the Los Alamos School Board shall not extend 
beyond June 30, 1986; and in the case of the county of Los Alamos, 
New Mexico, shall not extend beyond June 30,1987.". 
SEC. 206. (a) Section 6 of the Federal Nonnuclear Energy Research 
and Development Act of 1974 is amended by adding at the end thereof 
the following new subsection: 
"(c) Based upon the comprehensive plan developed under subsection 
(a), the Administrator shall develop and transmit to the Congress, on 
or before September 1, 1978, a comprehensive environment and 
safety program to insure the full consideration and evaluation of all 
environmental, health, and safety impacts of each element, program, or 
initiative contained in the nuclear and nonnuclear energy research, 
development, and demonstration plans.". 
(b) Section 15 (a) of such Act is amended— 
(1) by striking out "and" at the end of paragraph (2), 
(2) by striking out the comma at the end of paragraph (3) and 
inserting in lieu thereof "; and", and 
(3) by inserting after paragraph (3) the following new 
paragraph: 
"(4) a detailed description of the environmental and safety 
research, development, and demonstration activities carried out 
and in progress including the procedures adopted to mitigate 
undesirable environmental and safety impacts,". 
SEC. 207. (a) Section 7(a) of the Federal Nonnuclear Energy 
Research and Development Act of 1974 (42 U.S.C. 5906) is amended— 
(1) by striking out "and" after the semicolon at the end of 
paragraph (5), 
(2) by striking out the period at the end of paragraph (6) and 
inserting in lieu thereof "; and", and 
(3) by adding at the end thereof the following new paragraph: 
"(7) Federal loan guarantees and commitments thereof as 
provided in section 19.". 
(b) The Federal Nonnuclear Energy Research and Development 
Act of 1974 (42 U.S.C. 5901, et seq.) is further amended by adding 
at the end thereof the following new section: 
Contract 
authority. 
42 u s e 2394. 
31 u s e 665. 
42 u s e 2391. 
eomprehensive 
environment and 
safety program, 
transmittal to 
Congress. 
42 use 5905. 
42 use 5914. 
Infra. 
LOAN GUARANTEES FOR ALTERNATIVE FUEL DEMONSTRATION FACILITIES 
"SEC. 19. (a) It is the purpose of this section— 
"(1) to assure adequate Federal support to foster a demonstra-
tion program to produce alternative fuels from coal, oil shale, 
biomass, and other domestic resources; 
"(2) to authorize assistance, through loan guarantees under 
subsection (b) and (y) for construction and startup and related 
costs, to demonstration facilities for the conversion of domestic 
coal, oil shale, biomass, and other domestic resources into alterna-
tive fuels; and 
42 use 5919. 
92 STAT. 62 
PUBLIC LAW 95-238—FEB. 25, 1978 
Rules and 
regulations. 
Cooperative 
agreemeiits. 
42 use 5907. 
Limitation. 
Financial 
assistance, 
eligibility for 
certain facilities. 
"(3) to gather information about the technological, economic, 
environmental, and social costs, benefits, and impacts of such 
demonstration facilities. 
"(b)(1) Except as provided in paragraph (5) of this subsection 
and subsection (y) of this section the Administrator is authorized, in 
accordance with such rules and regulations as he shall prescribe after 
consultation with the Secretary of the Treasury, to guarantee and to 
make commitments to guarantee, in such manner and subject to such 
conditions (not inconsistent with the provisions of this Act) as he 
deems appropriate, the payment of interest on, and the principal bal-
ance of, bonds, debentures, notes, and other obligations issued by, or 
on behalf of, any borrower for the purpose of financing the construc-
tion and startup costs of demonstration facilities for the conversion of 
domestic coal, oil shale, biomass, and other domestic resources into 
alternative fuels: Provided^ That no loan guarantee for a full sized 
oil shale facility shall be provided under this section until after suc-
cessful demonstration of a modular facility producing between six 
and ten thousand barrels per day, taking into account such considera-
tions as water usage, environmental effects, waste disposal, labor con-
ditions, health and safety, and the socioeconomic impacts on local 
communities: Provided further^ That no loan guarantee shall be 
available under this subsection for the manufacture of component 
parts for demonstration facilities eligible for assistance under this 
subsection. 
"(2) An applicant for any financial assistance under this section 
shall provide information to the Administrator in such form and with 
such content as the Administrator deems necessary. 
"(3) Prior to issuing any guarantee under this section the Admin-
istrator shall obtain the concurrence of the Secretai-y of the Treasury 
with respect to the timing, interest rate, and substantial terms and con-
ditions of such guarantee. The Secretary of the Treasury shall insure 
to the maximum extent feasible that the timing, intei-est rate, and sub-
stantial terms and conditions of such guarantee will have the minimum 
possible impact on the capital markets of the T"ni+ed States, taking 
into account other Federal direct and indirect securities activities. 
"(4) The full faith and credit of the United States is pledged 
to the payment of all guarantees issued under this section with respect 
to principal and interest. 
"(5) (A) The Administrator is authorized, in the case of a facility 
for the conversion of oil shale to alternative fuels which is determined 
by the Administrator pursuant to the proviso in paragraph (1) of this 
subsection, to be constructed at a modular size, to enter into a coopera-
tive agreement with the applicant in accordance with section 8 of this 
Act and the other provisions of this Act to share the estimated total 
design and construction costs, plus operation and maintenance costs, of 
such modular facility. The Federal share shall not exceed 75 per 
centum of such costs. All receipts for the sale of any products pro-
duced during the operation of the facility shall be used to offset the 
costs incurred in the operation and maintenance of the facility. The 
provisions of subsections (d), (e), (k), (m), (p), (s), (t), (u), (v), 
(w), and (x) shall apply to any such modular facility. The provisions 
of this section shall apply to any loan guarantee for such modular 
facility. 
"(B) After successful demonstration of the modular facility, as 
determined by the Administrator, the facility is eligible for financial 
assistance under this section for purposes of expansion to a full sized 
PUBLIC LAW 95-238—FEB. 25, 1978 
92 STAT. 63 
facility and the applicant may purchase the Federal interest in the 
modular facility as represented by the Federal share thereof by means 
of (i) a cash payment to the United States, or (ii) a share of the 
product or sales resulting from such expanded operation, as deter-
mined by the Administrator. If expansion of such facility is deter-
mined not to be warranted by the Administrator, he may, at the option 
of the applicant, dispose of the modular facility to the applicant at 
not less than fair market value, as determined by the Administrator 
as of the date of the disposal, or otherwise dispose of it, in accordance 
with applicable provisions of law, and distribute the net proceeds 
thereof, after expenses of such disposal, to the applicant in propor-
tion to the applicant's share of the costs of such facility. 
"(6) To the extent possible, loan guarantees shall be issued on the 
basis of competitive bidding among guarantee applicants in a par-
ticular technology area. 
"(c) The Administrator, with due regard for the need for competi-
tion, shall guarantee or make a commitment to guarantee any obliga-
tion under subsection (b) or (y) only if— 
"(1) the Administrator is satisfied that the financial assistance 
applied for is necessary to encourage financial participation; 
"(2) the amount guaranteed to any borrower at any time does Limitation, 
not exceed— 
"(A) an amount equal to 75 per centum of the project cost 
of the demonstration facility as estimated at the time the 
guarantee is issued, which cost shall not include amounts 
expended for facilities and equipment used in the extraction 
of a mineral other than coal or shale, and in the case of coal 
only to the extent that the Administrator determines that 
the coal is to be converted to alternative fuel; and 
"(B) an amount equal to 60 per centum of that portion of 
the actual total project cost of any demonstration facility 
which exceeds the project cost of such facility as estimated 
at the time the loan guarantee is issued; 
"(3) the Administrator has determined that there will be a 
continued reasonable assurance of full repayment; 
"(4) the obligation is subject to the condition that it not be 
subordinated to any other financing; 
"(5) the Administrator has determined, taking into considera-
tion all reasonably available forms of assistance under this section 
and other Federal and State statutes, that the impacts resulting 
from the proposed demonstration facility have been fully evalu-
ated by the borrower, the Administrator, and the Governor of the 
affected State, and that effective steps have been taken or will be 
taken in a timely manner to finance community planning and 
development costs resulting from such facility under this section, 
under other provisions of law, or by other means; 
"(6) the maximum maturity of the obligation does not exceed 
twenty years, or 90 per centum of the projected useful economic 
life of the physical assets of the demonstration facility covered 
by the guarantee, whichever is less, as determined by the 
Administrator ; 
"(7) the Administrator has determined that, in the case of any 
demonstration or modular facility planned to be located on 
Indian lands, the appropriate Indian tribe, wuth the approval 
of the Secretary of the Interior, has given written consent to 
such location; 
Maturity 
limitation. 
Facilities on 
Indian lands, 
tribal consent. 
92 STAT. 64 
PUBLIC LAW 95-238—FEB. 25, 1978 
Federal 
participation 
termination, 
determination. 
Notification to 
borrower. 
Additional fee. 
Recommendations 
from Attorney 
General and FTC 
Chairman. 
Referral to 
President. 
Written 
determination. 
Location, 
notification to 
State Governors 
and officials. 
Recommenda-
tions. 
Written 
communication. 
Judicial review. 
"(8) the obligation provides for the orderly and ratable retire-
ment of the obligation and includes sinking fund provisions, 
installment payment provisions or other methods of payments 
and reserves as may be reasonably required by the Adminis-
trator. Prior to approving any repayment schedule the Admin-
istrator may consider the date on which operating revenues are 
anticipated to be generated by the project. To the maximum 
extent possible repayment or provision therefor shall be required 
to be made in equal payments payable at equal intervals; and 
"(9) the obligation provides that the Administrator shall, 
after a period of not less than ten years from issuance of the 
obligation, taking into consideration whether the Government's 
needs for information to be derived from the project have been 
substantially met and whether the project is capable of commer-
cial operation, determine the feasibility and advisability of termi-
nating the Federal participation in the project. In the event that 
such determination is positive, the Administrator shall notify 
the borrower and provide the borrower with not less than two 
nor more than three years in which to find alternative financing. 
At the expiration of the designated period of time, if the 
borrower has been unable to secure alternative financing, the 
Administrator is authorized to collect from the borrower an addi-
tional fee of 1 per centum per annum on the remaining obliga-
tion to which the Federal guarantee applies. 
"(d) Prior to submitting a report to Congress pursuant to sub-
section (m) of this section on each guarantee and cooperative agree-
ment, the Administrator shall request from the Attorney General 
and the Chairman of the Federal Trade Commission written views, 
comments, and recommendations concerning the impact of such 
guarantee or commitment or agreement on competition and concen-
tration in the production of energy and give due consideration to 
views, comments, and recommendations received: Provided^ That 
if either official, within sixty days after receipt of such request or at 
any time prior to the Administrator submitting such report to Con-
gress, recommends against making such guarantee or commitment 
or agreement, the proposed guarantee or commitment or agreement 
shall be referred to the President, and the Administrator shall not 
do so unless the President determines in writing that such guarantee 
or commitment or agreement is in the national interest. 
"(e) (1) As soon as the Administrator knows the geographic loca-
tion of a proposed facility for which a guarantee or a commitment to 
guarantee or cooperative agreement is sought under this section, he 
shall inform the Governor of the State, and officials of each political 
subdivision and Indian tribe, as appropriate, in which the facility 
would be located or which would be impacted by such facility. The 
Administrator shall not guarantee or make a commitment to guarantee 
or enter into a cooperative agreement under subsection (b) or subsec-
tion (y) of this section, if the Governor of the State in which the 
proposed facility would be located recommends that such action not be 
taken, unless the Administrator finds that there is an overriding 
national interest in taking such action in order to achieve the purpose 
of this section. If the Administrator decides to guarantee or make a 
commitment to guarantee or enter into a cooperative agreement despite 
a Governor's recommendation not to take such action, the Adminis-
trator shall communicate, in writing, to the Governor reasons for not 
concurring with such recommendation. This Administrator's decision, 
PUBLIC LAW 95-238—FEB. 25, 1978 
92 STAT. 65 
pursuant to this subsection, shall be final unless determined upon 
judicial review initiated by the Governor to be unlawful by the review-
ing court pursuant to 5 U.S.C. 706(2) (A) through (D)."Such review 
shall take place in the United States court of appeals for the circuit in 
which the State involved is located, upon application made within 
ninety days from the date of such decision. The Administrator shall, 
by regulation, establish procedures for review of, and comment on, the 
proposed facility by States, local political subdivisions, and Indian 
tribes which may be impacted by such facility, and the general public. 
"(2) The Administrator shall review and approve the plans of the 
applicant for the construction and operation of any demonstration and 
related facilities constructed or to be constructed with assistance under 
this section. Such plans and the actual construction shall include such 
monitoring and other data-gathering costs associated with such facil-
ity as are required by the comprehensive plan and program under this 
section. The Administrator shall determine the estimated total cost of 
such demonstration facility, including, but not limited to, construction 
costs, startup costs, costs to political subdivisions and Indian tribe by 
such facility, and cost of any water storage facilities needed in connec-
tion with such demonstration facility, and determine who shall pay 
such costs. Such determination shall not be binding upon the States, 
political subdivisions, or Indian tribes. 
"(3) There is hereby established a panel to advise the Administra-
tor on matters relating to the program authorized by this section, 
including, but not limited to, the impact of the demonstration facili-
ties on communities and States and Indian tribes, the environmental 
and health and safety effects of such facilities, and the means, measures, 
and planning for preventing or mitigating svich impacts, and other 
matters relating to the development of alternative fuels and other 
energy sources under this section. The panel shall include such Gov-
ernors or their designees as shall be designated by the Chairman 
of the National Governors Conference. Representatives of Indian 
tribes, industry, environmental organizations, and the general public 
shall be appointed by the Administrator. The Chairman of the panel 
shall be selected by the Administrator. No person shall be appointed 
to the panel who has a financial interest in any applicant applying for 
assistance under this section. Members of the panel shall serve without 
compensation. The provisions of section 106(e) of the Energy Reor-
ganization Act of 1974 (42 U.S.C. 5816(e)) shall apply to the panel. 
"(f) Except in accordance with reasonable terms and conditions 
contained in the written contract of guarantee, no guarantee issued 
or commitment to guarantee made under this section shall be ter-
minated, canceled, or otherwise revoked. Such a guarantee or commit-
ment shall be conclusive evidence that the underlying obligation is in 
compliance with the provisions of this section and that such obliga-
tion has been approved and is legal as to principal, interest, and other 
terms. Subject to the conditions of the guarantee or commitment to 
guarantee, such a guarantee shall be incontestable in the hands of the 
holder of the guaranteed obligation, except as to fraud or material 
misrepresentation on the part of the holder. 
"(s) (1) If there is a default by the borrower, as defined in regula-
tions promulgated by the Administrator and in the guarantee contract, 
the holder of the obligation shall have the right to demand payment 
of the unpaid amount from the Administrator. Within such period 
as may be specified in the guarantee or related agreements, the Admin-
istrator shall pay to the holder of the obligation the unpaid interest on, 
and unpaid principal of, the guaranteed obligation as to which the 
Proposed 
facilities, review 
and comment. 
Procedures, 
regulations. 
Plans, review and 
approval. 
Estimated total 
costs, 
determination. 
Advisory panel. 
Establishment. 
Membership. 
Cha 
Compensation. 
Default, payment. 
92 STAT. 66 
PUBLIC LAW 95-238—FEB. 25, 1978 
Administrator's 
rights, 
subrogation. 
40 u s e 471 note. 
Default, 
notification to 
Attorney 
General. 
Recovery. 
Patents and 
technologies. 
42 u s e 5908. 
Default 
protection, terms 
and conditions. 
Proprietary 
rights, 
availability. 
Payment, 
contracts to pay. 
borrower has defaulted, unless the Administrator finds that there was 
no default by the borrower in the payment of interest or principal or 
that such de'fault has been remedied. Nothing in this section shall be 
construed to preclude any forebearance by the holder of the obligation 
for the benefit of the borrower which may be agreed upon by the par-
ties to the guaranteed obligation and approved by the Administrator. 
"(2) If the Administrator makes a payment under paragraph (1) 
of this subsection, the Administrator shall be subrogated to the rights 
of the recipient of such payment (and such subrogation shall be 
expressly set forth in the guarantee or related agreements), including 
the authority to complete, maintain, operate, lease, or otherwise dispose 
of any property acquired pursuant to such guarantee or related agree-
ments, or any other property of the borrower (of a value equal to the 
amount of such payment) to the extent that the guarantee applies to 
amounts in excess of the estimated project cost under subsection (c) 
(2) (B), without regard to the provisions of the Federal Property and 
Administrative Services Act of 1949, as amended, except section 207 
of that Act (40 U.S.C. 488), or any other law, or to permit the borrower, 
pursuant to an agreement Avith the Administrator, to continue to pursue 
the purposes of the demonstration facility if the Administrator deter-
mines that this is in the public interest. The rights of the Administra-
tor with respect to any property acquired pursuant to such guarantee 
or related agreements, shall be superior to the rights of any other 
person with respect to such property. 
"(3) In the event of a default on any guarantee under this section, 
the Administrator shall notify the Attorney General, who shall take 
such action as may be appropriate to recover the amounts of any pay-
ments made under paragraph (1) including any payment of principal 
and interest under subsection (h) from such assets of the defaulting 
borrower as are associated with the demonstration facility, or from 
any other security included in the terms of the guarantee. 
"(4) For purposes of this section, patents, including any inventions 
for Avhich a waiver was made by the Administrator under section 9 
of this Act, and technology resulting from the demonstration facility, 
shall be treated as project assets of such facility. The guarantee agree-
ment shall include such detailed terms and conditions as the Admin-
istrator deems appropriate to protect the interests of the United States 
in the case of default and to have available all the patents and tech-
nology necessary for any person selected, including, but not limited to 
the Administrator, to complete and operate the defaulting project. 
Furthermore, the guarantee agreement shall contain a provision spec-
ifying that patents, technology, and other proprietary rights which 
are necessary for the completion or operation of the demonstration 
facility shall be available to the United States and its designees on 
equitable terms, including due consideration to the amount of the 
United States default payments. Inventions made or conceived in the 
course of or under such guarantee, title to which is vested in the United 
States under this Act, shall not be treated as project assets of such 
facility for disposal purposes under this subsection, unless the Admin-
istrator determines in writing that it is in the best interests of the 
United States to do so. 
"(h) With respect to any obligation guaranteed under this section, 
the Administrator is authorized to enter into a contract to pay, and to 
pay, holders of the obligations, for and on behalf of the borrowers, 
from the fund established by this section, the principal and interest 
PUBLIC LAW 95-238—FEB. 25, 1978 
92 STAT. 67 
payments which become due and payable on the unpaid balance of 
such obligation if the Administrator jfinds that— 
"(1) the borrower is unable to meet such payments and is not 
in default; it is in the public interest to permit the borrower to 
continue to pursue the purposes of such demonstration facility; 
and the probable net benefit to the Federal Government in paying 
such principal and interest will be greater than that which would 
result in the event of a default; 
"(2) the amount of such payment which the Administrator is 
authorized to pay shall be no greater than the amount of principal 
and interest which the borrower is obligated to pay under the 
loan agreement; and 
"(3) the borrower agrees to reimburse the Administrator for 
such payment on terms and conditions, including interest, which 
are satisfactory to the Administrator, 
"(i) Regulations required by this section shall be issued within one 
hundred and eighty days after enactment of this section. All regula-
tions under this section and any amendments thereto shall be issued in 
accordance with section 553 of title 5, of the United States Code. 
"(j) The Administrator shall charge and collect fees for guaran-
tees of obligations authorized by subsection (b) (1), in amounts which 
(1) are sufficient in the judgment of the Administrator to cover the 
applicable administrative costs, and (2) reflect the percentage of 
projects costs guaranteed. In no event shall the fee be less than 1 per 
centum per annum of the outstanding indebtedness covered by the 
guarantee. Nothing in this subsection shall be construed to apply to 
community planning and development assistance pursuant to sub-
section (k) of this section. 
"(k)(l) In accordance with such rules and regulations as the 
Administrator in consultation with the Secretary of the Treasury shall 
prescribe, and subject to such terms and conditions as he deems appro-
priate, the Administrator is authorized, for the purpose of financing 
essential community development and planning which directly result 
from, or are necessitated by, one or more demonstration facilities 
assisted under this section to— 
"(A) guarantee and make commitments to guarantee the pay-
ment of interest on, and the principal balance of obligations for 
such financing issued by eligible States, political subdivisions, or 
Indian tribes, 
"(B) guarantee and make commitments to guarantee the pay-
ment of taxes imposed on such demonstration facilities by eligible 
non-Federal taxing authorities which taxes are earmarked by such 
authorities to support the payment of interest and principal on 
obligations for such financing, and 
"(C) require that the applicant for assistance for a demonstra-
tion facility under this section advance sums to eligible States, 
political subdivisions, and Indian tribes to pay for the financing 
of such development and planning: Provided^ That the State, 
political subdivision, or Indian tribe agrees to provide tax abate-
ment credits over the life of the facilities for such payments by 
such applicant. 
"(2) Prior to issuing any guarantee under this subsection, the 
Administrator shall obtain the concurrence of the Secretary of the 
Treasury with respect to the timing, interest rate, and substantial 
terms and conditions of such guarantee. The Secretary of the Treasury 
shall insure to the maximum extent feasible that the timing, interest 
rate, and substantial terms and conditions of such guarantee will have 
Regulations. 
Guarantees of 
obligations, fees. 
Consultation with 
Treasury 
Secretary. 
Payment, 
guarantees and 
commitments. 
Advancements. 
Concurrence of 
Treasury 
Secretary. 
92 STAT. 68 
PUBLIC LAW 95-238—FEB. 25, 1978 
Default, payment. 
Consultation. 
Loans; repayment 
waiver. 
Grants. 
Debt obligations, 
redemption. 
Assistance, 
sharing. 
Facility title, 
default status. 
the minimum possible impact on the capital markets of the United 
States, taking into account other Federal direct and indirect securities 
activities. 
"(3) In the event of any default by the borrower in the payment of 
taxes guaranteed by the Administrator under this subsection, the 
Administrator shall pay out of the fund established by this section 
such taxes at the time or times they may fall due, and shall have by 
reason of such payment a claim against the borrower for all sums 
paid plus interest. 
"(4) If after consultation with the State, political subdivision, or 
Indian tribe, the Administrator finds that the financial assistance pro-
grams of paragraph (1) of this subsection will not result in sufficient 
funds to carry out the purposes of this subsection, then the Adminis-
trator may— 
"(A) make direct loans to the eligible States, political subdivi-
sions, or Indian tribes for such purposes: Provided., That such 
loans shall be made on such reasonable terms and conditions as 
the Administrator shall prescribe: Provided further, That the 
Administrator may waive repayment of all or part of a loan made 
imder this paragraph, including interest, if the State or political 
subdivision or Indian tribe involved demonstrates to the satisfac-
tion of the Administi-ator that due to a change in circumstances 
there will be net adverse impacts resulting from such demonstra-
tion facility that would probably cause such State, subdivision, 
or tribe to default on the loan; or 
"(B) require that any community development and planning 
costs which are associated with, or result from, such demonstration 
facility and which are determined by the Administrator to be 
appropriate for such inclusion shall be included in the total costs 
of the demonstration facility. 
"(5) The Administrator is further authorized to make grants to 
States, political subdivisions, or Indian tribes for studying and plan-
ning for the potential economic, environmental, and social consequences 
of demonstration facilities, and for establishing related management 
expertise. 
"(6) At any time the Administrator may, with the concurrence of 
the Secretary of the Treasury, redeem, in whole or in part, out of the 
fund established by this section, the debt obligations guaranteed or the 
debt obligations for which tax payments are guaranteed under this 
subsection. 
"(7) When one or more States, political subdivisions, or Indian 
tribes would be eligible for assistance under this subsection, but for the 
fact that construction and operation of the demonstration facilities 
occurs outside its jurisdiction, the Administrator is authorized to pro-
vide, to the greatest extent possible, arrangements for equitable sharing 
of such assistance. 
" (8) Such amounts as may be necessary for direct loans and grants 
pursuant to this subsection shall be available as provided in annual 
authorization Acts. 
"(9) The Administrator, if appropriate, shall provide assistance in 
the financing of up to 100 per centum of the costs of the required com-
munity development and planning pursuant to this subsection. 
" (10) In carrying out the provisions of this subsection, the Adminis-
trator shall provide that title to any facility receiving financial assist-
ance under this subsection shall vest in the applicable State, political 
subdivision, or Indian tribe, as appropriate, and in the case of default 
by the borrower on a loan guarantee such facility shall not be con-
PUBLIC LAW 95-238—FEB. 25, 1978 
92 STAT. 69 
sidered a project asset for the purposes of subsection (g) of this section. 
"(1)(1) The Administrator is directed to submit a report to the 
Congress within one hundred and eighty days after the enactment of 
this section setting forth his recommendations on the best opportunities 
to implement a program of Federal financial assistance with the objec-
tive of demonstrating production and conservation of energy. Such 
report shall be updated and submitted to Congress at least annually 
and shall include specific comments and recommendations by the Secre-
tary of the Treasury on the methods and procedures set forth in sub-
paragraph (B) (viii) of this subsection, including their adequacy, and 
changes necessary to satisfy the objectives stated in this subsection. 
This report shall include— 
"(A) a study of the purchase or commitment to purchase by 
the Federal Government, for the use by the United States, of all 
or a portion of the products of any alternative fuel facilities con-
structed pursuant to this program as a direct or an alternate form 
of Federal assistance, which assistance, if recommended, shall be 
carried out pursuant to section 7(a) (4) of this Act; and 
"(B) a comprehensive plan and program to acquire information 
and evaluate the environmental, economic, social, and technologi-
cal impacts of the demonstration program under this section. In 
preparing such a comprehensive plan and program, the Admin-
istrator shall consult with the Environmental Protection Agency, 
the Federal Energy Administration, the Department of Housing 
and Urban Development, the Department of the Interior, the 
Department of Agriculture, and the Department of the Treasury, 
and shall include therein, but not be limited to, the following: 
"(i) information about potential demonstration facilities 
proposed in the program under this section; 
1 
"(ii) any significant adverse impacts which may result 
from any activity included in the program ; 
"(iii) the extent to which it is feasii)le to commercialize the 
technologies as they affect different regions of the Nation; 
"(iv) proposed regulations required to carry out the pur-
poses of this section; 
"(v) a list of Federal agencies, governmental entities, and 
other persons that will be consulted or utilized to implement 
the program; 
"(vi) the methods and procedures by which the informa-
tion gathered under the program will be analyzed and 
disseminated; 
"(vii) a plan for the study and monitoring of the health 
effects of such facilities on workers and other persons, includ-
ing, but not limited to, any carcinogenic effect of alternative 
fuels; and 
"(viii) the methods and procedures to insure that (I) the 
use of the Federal assistance for demonstration facilities is 
kept to the minimum level necessary for the information 
objectives of this section, (II) the impact of loan guarantees 
on the capital markets of the United States is minimized, 
taking into account other Federal direct and indirect secu-
rities activities, and any economic sectors which may be nega-
tively impacted as a result of the reduction of capital by the 
placement of guaranteed loans, and (III) the granting of 
, 
Federal loan guarantees under this Act does not impede move-
ment toward improvement in the climate for attracting pri-
Annual report to 
Congress. 
Recommenda-
tions. 
Study. 
42 use 5906. 
Comprehensive 
plan and 
program. 
Consultations. 
92 STAT. 70 
PUBLIC LAW 95-238—FEB. 25, 1978 
Annual report to 
Congress. 
42 u s e 5914. 
Transmittal to 
Speaker of the 
House, President 
of the Senate, and 
congressional 
committees. 
Report to 
congressional 
committees. 
Finalization. 
Congressional 
authorization. 
vate capital to develop alternative fuels without continued 
direct Federal incentives. 
"(2) The Administrator shall annually submit a detailed report to 
the Congress concerning— 
" (A) the actions taken or not taken by the Administrator under 
this section during the preceding fiscal year, and including, but 
not be limited to (i) a discussion of the status of each demonstra-
tion facility and related facilities financed under this section, 
including progress made in the development of such facilities, and 
the expected or actual production from each such facility, includ-
ing byproduct production therefrom, and the distribution of such 
products and byproducts, (ii) a detailed statement of the financial 
conditions of each such demonstration facility, (iii) data concern-
ing the environmental, community, and health and safety impacts 
of each such facility and the actions taken or planned to prevent 
or mitigate such impacts, (iv) the administrative and other costs 
incurred by the Administrator and other Federal agencies in 
carrying out this program, and (v) such other data as may be 
helpful in keeping Congress and the public fully and currently 
informed about the program authorized by this section; and 
"(B) the activities of the fund referred to in subsection (n) 
of this section during the preceding fiscal year, including a state-
ment of the amount and source of fees or other moneys, property, 
or assets deposited into the funds, all payments made, the notes 
or other obligations issued by the Administrator, and such other 
data as may be appropriate. 
"(3) The annual reports required by this subsection shall be a part 
of the annual report required by section 15 of this Act, except that 
the matters required to be reported by this subsection shall be clearly 
set out and identified in such annual reports. Such reports and the 
one-hundred-and-eighty-day report required in paragraph (1) of this 
subsection shall be transmitted to the Speaker of the House of Kepre-
sentatives and the House Committee on Science and Technology and 
to the President of the Senate and the Committee on Energy and 
Natural Resources of the Senate. 
" (m) Prior to issuing any guarantee or commitment to guarantee or 
cooperative agreement pursuant to subsection (b) or subsection (y) of 
this section the Administrator shall submit to the Committee on 
Science and Technology of the House of Representatives and the Com-
mittee on Energy and Natural Resources of the Senate a full and 
complete report on the proposed demonstration facility and such 
guarantee, agreement, or contract. Such guarantee, commitment to 
guarantee, cooperative agreement, or contract shall not be finalized 
under the authority granted by this section prior to the expiration of 
ninety calendar days (not including any day on which either House 
of Congress is not in session because of an adjournment of more than 
three calendar days to a day certain) from the date on which such 
report is received by such committees: Provided^ That, where the 
cost of a demonstration facility to be assisted with a guarantee or 
cooperative agreement pursuant to subsection (b) or subsection (y) 
of this section exceeds $50,000,000 such guarantee or commitment to 
guarantee or cooperative agreement shall not be finalized unless (1) 
the making of such guarantee or commitment or agreement is specifi-
cally authorized by legislation hereafter enacted by the Congress 
or (2) both Houses pass a resolution stating in substance that the 
PUBLIC LAW 95-238—FEB. 25, 1978 
92 STAT. 71 
Congress favors the making of such guarantee or commitment or 
agreement. 
"(n)(l) There is hereby created within the Treasury a separate 
fund (hereafter in this section called the 'fund') which shall be avail-
able to the Administrator without fiscal year limitation as a revolving 
fund for the purpose of carrying out the program authorized by 
subsection (b)(1) and subsections (g), (h), (k), and (y) of this 
section. 
"(2) There are hereby authorized to be appropriated to the fund 
for administrative expenses from time to time such amounts as may 
be necessary to carry out the purposes of the applicable provisions 
of this section, including, but not limited to, the payments of interest 
and principal and the payment of interest differentials and redemp-
tion of debt. All amounts received by the Administrator as interest 
payments or repayments of principal on loans which are guaranteed 
under this section, fees, and any other moneys, property, or assets 
derived by him from operations under this section shall be deposited 
in the fund. 
"(3) All payments on obligations, appropriate expenses (including 
reimbursements to other Government accounts), and repayments 
pursuant to operations of the Administrator under this section shall 
be paid from the fund subject to appropriations. If at any time the 
Administrator determines that moneys in the fund exceed the present 
and reasonably foreseeable future requirements of the fund, such 
excess shall be transferred to the general fund of the Treasury. 
"(4) If at any time the moneys available in the fund are insufficient 
to enable the Administrator to discharge his responsibilities as author-
ized by subsections (b)(1), (g), (h), and (y) of this section, the 
Administrator shall issue to the Secretary of the Treasury notes or 
other obligations in such forms and denominations, bearing such matu-
rities, and subject to such terms and conditions as may be prescribed 
by the Secretary of the Treasury. Redemption of such notes or obli-
gations shall be made by the Administrator from appropriations or 
other moneys available under paragraph (2) of this subsection for 
loan guarantees authorized by subsection (b) (1) and subsections (g), 
(h), (k), and (y) of this section. Such notes or other obligations shall 
bear interest at a rate determined by the Secretary of the Treasury, 
which shall be not less than a rate determined by taking into consid-
eration the average market yield on outstanding marketable obliga-
tions of the United States of comparable maturities during the month 
preceding the issuance of the notes or other obligations. The Secretary 
of the Treasury may at any time sell any of the notes or other obliga-
tions acquired by him under this subsection. 
"(5) The provisions of this subsection do not apply to direct loans 
or planning grants made under subsection (k) of this section. 
" (o) For the purposes of this section, the term— 
"(1) 'State' means any State of the United States, the District 
of Columbia, the Commonwealth of Puerto Rico, Guam, the Vir-
gin Islands, American Samoa, any territory or possession of the 
United States, 
"(2) 'United States' means the several States, the Common-
wealth of Puerto Rico, the Virgin Islands, Guam, and American 
Samoa, 
" (3) 'borrower' or 'applicant' shall include any individual, firm, 
corporation, company, partnership, association, society, trust, 
joint venture, joint stock company, or other non-Federal entity, 
and 
Revolving fund. 
Administrative 
expenses. 
Funds, transfer. 
Notes or 
obligations, 
issuance to 
Treasury 
Secretary. 
Interest rate. 
Sale. 
Definitions. 
92 STAT. 72 
PUBLIC LAW 95-238—FEB. 25, 1978 
Waiver, 
consultation. 
Non-
transferability. 
42 use 5908. 
"(4) 'biomass' shall include, but is not limited to, animal and 
timber waste, municipal and industrial waste, sewage, sludge, 
and oceanic and terrestrial crops. 
Citizenship 
" (p) (1) An applicant seeking a guarantee or cooperative agreement 
requirement. 
under subsection (b) or subsection (y) of this section must be a citizen 
or national of the United States. A corporation, partnership, firm, or 
association shall not be deemed to be a citizen or national of the United 
States unless the Administrator determines that it satisfactorily meets 
all the requirements of section 802 of title 46, United States Code, for 
determining such citizenship, except that the provisions in subsection 
(a) of such section 802 concerning (A) the citizenship of officers or 
directors of a corporation, and (B) the interest required to be owned in 
the case of a corporation, association, or partnership operating a vessel 
in the boastwise triade, shall not be applicable. 
" (2) The Administrator, in consultation with the Secretary of State, 
may waive such requirements in the case of a corporation, partnership, 
firm, or association, controlling interest in which is owned by citizens 
bf countries which are participants in the International Energy 
Agreement. 
" (q) No part of the program authorzed by this section shall be trans-
ferred to any other agency or authority, except pursuant to Act of 
Congress enacted after the date of enactment of this section. 
"(r) Inventions made or conceived in the course of or under a guar-
antee authorized by this section shall be subject to the title and waiver 
requirements and conditions of section 9 of this Act. 
"(s) Nothing in this section shall be construed as affecting the obli-
gations of any person receiving financial assistance pursuant to this 
section to comply with Federal and State environmental, land use, 
water, and health and safety laws and regulations or to obtain appli-
cable Federal and State permits, licenses, and certificates. 
"(t) The information maintained by the Administrator under this 
section shall be made available to the public subject to the provision 
of section 552 of title 5, United States Code, and section 1905 of title 18 
United States Code, and to other Government a<i'encies in a manner 
that will facilitate its dissemination: Provided^ That upon a showing 
satisfactory to the Administrator by any person that any information, 
or portion thereof obtained under this section by the Administrator 
directly or indirectly from such person would, if made public, divulge 
(1) trade secrets or (2) other proprietary information of such person, 
,^, 
the Administrator shall not disclose such information and disclosure 
thereof shall be punishable under section 1905 of title 18, United 
Cooperation with 
States Code: Provided further^ That the Administrator shall, upon 
Federal agencies, request, provide such information to (A) any delegate of the Admin-
istrator for the purpose of carrying out this Act, and (B) the Attorney 
General, the Secretary of Agriculture, the Secretary of the Interior, 
" ' ' 
the Federal Trade Commission, the Federal Energy Administration, 
the Environmental Protection Agency, the Federal Power Commis-
sion, the General Accounting Office, other Federal agencies, or heads 
of other Federal agencies, when necessary to carry out their duties and 
responsibilities under this and other statutes, but such agencies and 
agency heads shall not release such information to the public. This 
section is not authority to withhold information from Congress, or 
"Person." 
from any committee of Congress upon request of the Chairman. For the 
purposes of this subsection, the term 'person' shall include the 
borrower. 
Information, 
availability to 
public. 
Nondisclosure. 
PUBLIC LAW 95-238—FEB. 25, 1978 
92 STAT. 73 
"(u) Notwithstanding any other provision of this section, the 
authority provided in this section to make guarantees or commitments 
to guarantee or enter into cooperative agreements under subsection (b) 
(1) or subsection (y), to make guarantees or commitments to guar-
antees, or to make loans or grants, under subsection (k), to make con-
tracts under subsection (h), and to use fees and receipts collected under 
subsections (b), (j), and (y) of this section, and the authorities pro-
vided under subsection (n) of this section shall be effective only to the 
extent provided, without fiscal year limitation, in appropriation Acts 
enacted after the date of enactment of this section. 
"(v) No person in the United States shall on the grounds of race, 
color, religion, national origin, or sex, be excluded from participation 
in, be denied benefits of, or be subjected to discrimination under any 
program or activity funded in whole or in part with assistance made 
available under this section: Provided, That Indian tribes are exempt 
from the operation of this subsection: Provided further, That such 
exemption shall be limited to the planning and provision of public 
facilities which are located on reservations and which are provided for 
members of the affected Indian tribes as the primary beneficiaries. 
"(w) In carrying out his functions under this section, the Adminis-
trator shall provide a realistic and adequate opportunity for small 
business concerns to participate in the program to the optimum extent 
feasible consistent with the size and nature of each project. 
"(x)(l)(A) Rocipionts of financial assistance under this section 
shall keep such records and other pertinent documents, as the Admin-
istrator shall prescribe by regulation, including, but not limited io, 
records which fully disclose the disposition of the proceeds of such 
assistance, the cost of any facility, the total cost of the provision of 
public facilities for which assistance was used and such other records 
as the Administrator may require to facilitate an effective audit. The 
Administrator and the Comptroller General of the United States, or 
their duly authorized representative shall have access, for the purpose 
of audit, to such records and other pertinent documents. 
"(B) Within 6 months after the date of enactment of this section 
and at 6-month intervals thereafter, the Comptroller General of the 
United States shall make an audit of recipients of financial assistance 
under this section. The Comptroller General may prescribe such regu-
lations as he deems necessary to carry out this subparagraph. 
"(2) All laborers and mechanics employed by contractors or sub-
contractors in the performance of construction work financed in whole 
or in part with assistance under this section shall be paid wages at 
rates not less than those prevailing on similar construction in the 
locality as determined by the Secretary of Labor in accordance with 
the Davis-Bacon Act, as amended (40 U.S.C. 276a—276a-5). The 
Secretary of Labor shall have, with respect to such labor standards, 
the authority and functions set forth in Reorganization Plan Num-
bered 14 of 1950 (15 F.R. 3176; 64 Stat. 1267) and section 2 of the Act 
of June 13,1934, as amended (48 Stat. 948; 40 U.S.C. 276(c)). 
"(y) (1) The Administrator is authorized in accordance with such 
rules and regulations as he shall prescribe after consultation Avith the 
Secretary of the Treasury, to guarantee and to make commitments to 
guarantee the payment of interest on, and the principal balance of, 
bonds, debentures, notes, and other obligations issued by or on behalf 
of any borrower for the purpose of (A) financing the construction 
and startup costs of demonstration facilities for the conversion of 
municipal or industrial waste, sewage sludge, or other municipal 
organic wastes into synthetic fuels, and (B) financing the construc-
Non-
discrimination. 
Indian tribes, 
exemption. 
Small business 
opportunities. 
Record retention. 
Audit. 
Regulations. 
Laborers and 
mechanics, 
wages. 
5 u s e app. 
40 u s e 276c. 
Payment 
obligations, 
guarantees. 
92 STAT. 74 
PUBLIC LAW 95-238—FEB. 25, 1978 
Outstanding 
indebtedness, 
limitation. 
Certification to 
Administrator. 
42 use 6907. 
Amount 
guaranteed, 
limitation. 
Maturity, 
limitation. 
Fees. 
Non-
transferability. 
Project 
agreements, 
administration. 
42 u s e 6901 
note. 
tion and startup costs of demonstration facilities to generate desirable 
forms of energy (including synthetic fuels) from municipal or indus-
trial waste, sewage sludge, or other municipal organic waste. With 
respect to a guarantee or a commitment to guarantee authorized by 
this subsection; the following subsections of this section shall not 
apply: (b)(1), (b)(5), (c)(2), (c)(5), (c)(6), (c)(7), (c)(8), 
(c)(9),(e)(3),(j),(k),and(q). 
"(2) In the case where the Administrator seeks to guarantee or to 
make commitments to guarantee as provided by this subsection he is 
authorized to incur an outstanding indebtedness which at no time shall 
exceed $300,000,000. 
"(3) The Administrator shall apply the following provisions 
thereto: 
" (A) With respect to any demonstration facility for the conver-
sion of solid waste (as the term is defined in the Eesource Conser-
vation and Recovery Act (42 U.S.C. 6903)), the Administrator, 
prior to issuing any guarantee under this section, must be in receipt 
of a certification from the Administrator of the Environmental 
Protection Agency and any appropriate State or areawide solid 
waste management planning agency that the proposed application 
for a guarantee is consistent with any applicable suggested guide-
lines published pursuant to section 1008(a) of the E«source Con-
servation and Recovery Act, and any applicable State or regional 
solid waste management plan. 
"(B) The amount guaranteed shall not exceed 75 per centum of 
the total cost of the commercial demonstration facility, as deter-
mined by the Administrator: Provided, That the amount guaran-
teed may not exceed 90 per centum of the total cost of the 
commercial demonstration facility during the period of construc-
tion and startup. 
"(C) The maximum maturity of the obligation shall not exceed 
thirty years, or 90 per centum of the projected useful economic 
life of the physical assets of the commercial demonstration facility 
covered by the guarantee, whichever is less, as determined by the 
Administrator. 
"(D) The Administrator shall charge and collect fees for guar-
antees of obligations in amounts sufficient in the judgment of the 
Administrator to cover the applicable administrative costs and 
probable losses on guaranteed obligations, but in any event not 
to exceed 1 per centum per annum of the outstanding indebtedness 
covered hy the guarantee. 
"(E) No part of the program authorized by this section shall 
be transferred to any other agency or authority, except pursuant 
to Act of Congress enacted after the date of enactment of this 
section: Provided, That project agreements entered into pursuant 
to this section for any commercial demonstration facility for the 
conversion or bioconversion of solid waste (as that term is defined 
in the Resource Conservation and Recovery Act) shall be admin-
istered in accordance with the May 7, 1976, Interagency Agree-
ment between the Environmental Protection Agency and the 
Energy Research and Development Administration on the Devel-
opment of Energy From Solid Wastes, and provided specifically 
that in accordance with this agreement (i) for those energy-
related projects of mutual interest, planning will be conducted 
jointly by the Environmental Protection Agency and the Energy 
Research and Development Administration, following which 
PUBLIC LAW 95-238—FEB. 25, 1978 
92 STAT. 75 
project responsibility will be assigned to one agency; (ii) energy-
related projects for recovery of synthetic fuels or other forms of 
energy from solid waste shall be the responsibility of the Energy 
Kesearch and Development Administration; and (iii) the Envi-
ronmental Protection Agency shall retain responsibility for the 
environmental, economic, and institutional aspects of solid waste 
projects and for assurance that such projects are consistent with 
any applicable suggested guidelines pursuant to section 1008 of 
the Resource Conservation and Recovery Act of 1976 (42 U.S.C. 
6901 et seq.), as amended, and any applicable State or regional 
solid waste management plan. 
"(F) With respect to any obligation which is issued after the 
enactment of this section by, or in behalf of, any State, political 
subdivision, or Indian tribe and which is either guaranteed under, 
or supported by taxes levied by said issuer which are guaranteed 
under, this section, the interest paid on such obligation and 
received by the purchaser thereof (or the purchaser's successor in 
interest) shall be included in gross income for the purpose of 
chapter 1 of the Internal Revenue Code of 1954, as amended: 
Provided, That the Administrator shall pay to such issuer out of 
the fund established by this section such portion of the interest on 
such obligations, as determined by the Secretary of the Treasury 
to be appropriate after taking into account current market yields 
(i) on obligations of said issuer, if any, and (ii) on other obliga-
tions with similar terms and conditions the interest on which is 
not so included in gross income for purposes of chapter 1 of such 
Code, and in accordance with, such terms and conditions as the 
Secretary of the Treasury shall require.". 
SEC. 208. (a) The Secretary of Energy shall— 
(1) initiate and conduct an "application and system design 
study", cooperatively with appropriate Federal agencies, to deter-
mine the potential for the use of solar photovoltaic systems at 
specific Federal installations; and this study shall— 
(A) include an analysis of those sites that are currently 
cost-effective for solar photovoltaic energy systems, using 
life-cycle costing techniques, as well as those which would be 
cost-effective at expected future market prices; 
(B) identify potential sites and uses of solar photovoltaic 
energy systems at the following agencies as well as any others 
which the Secretary of Energy deems necessary: 
(i) the Department of Defense; 
(ii) the Department of Transportation (including the 
United States Coast Guard, the Federal Aviation Admin-
istration, and the Federal Highway Administration); 
(iii) the Department of Commerce; 
(iv) the Department of Agriculture; and 
(v) the Department of the Interior; 
• 
(C) provide a preliminary report to Congress within nine 
months following the enactment of this Act; 
(D) include the presentation of a detailed plan for the 
implementation of solar photovoltaic energy systems for 
power generation at specific sites in Federal (jovernment 
agencies to Congress within twelve months following the 
enactment of this Act; 
(2) initiate and conduct a study of the options available to the 
Federal Government to provide for the adequate growth of the 
solar photovoltaic industry and to include such possible incentives 
42 use 6907. 
26 u s e 1 et seq. 
Interest, 
payment. 
42 u s e 5556a. 
Solar 
photovoltaic 
systems at 
Federal 
installations, 
study. 
Preliminary 
report to 
eongress. 
Solar 
photovoltaic 
industry growth 
study, report to 
eongress. 
39-194 O—80—pt. 1 
9 : QL3 
92 STAT. 76 
PUBLIC LAW 95-238—FEB. 25, 1978 
Foreign countries' 
use, study. 
Cooperation. 
Report to 
Additional 
systems 
acquisition. 
Appropriation 
authorization. 
Technology 
development. 
Appropriation 
authorization. 
Military 
applications, 
prohibition. 
42 use 5821 
note. 
Definitions. 
42 use 2011 
note. 
Idaho flood 
damages. 
Land transfers, 
availability to 
farmers. 
as government funding, loan guarantees, tax incentives, the oper-
ation of pilot plants or production lines and other incentives 
deemed worthy of consideration by the Secretary of Energy, A 
preliminary report shall be submitted to Congress within six 
months following the enactment of this Act; 
(3) initiate and conduct a study involving the prospects for 
applications of solar photovoltaic energy systems for power gen-
eration in foreign countries, particularly lesser developed coun-
tries, and the potential for the exportation of these energy systems. 
This study shall involve the cooperation of the Department of 
State and the Department of Commerce, as well as other Federal 
agencies which the Secretary of P^nergy deems appropriate. A 
final report shall be submitted to the Congress, as well as a pre-
liminary report within twelve months of the enactment of this 
Act; and 
(4) be authorized to acquire up to an additional 4.0 megawatts 
(peak) of solar photovoltaic energy systems. The sum of 
$13,000,000 is hereby authorized to be appropriated (in addition 
to any other amounts authorized by this Act to be appropriated) 
for the fiscal year ending September 30, 1978, and for delivery in 
the following twelve months. Such sums shall remain available 
until expended. The solar photovoltaic energy systems acquired 
shall be available for use for power generation by Federal 
agencies, provided that no procurement takes place until their 
application on Federal sites is determined to be life cycle cost 
effective, 
(b) For technology development, particularly for engineering 
design and development of the manufacturing process of solar photo-
voltaic energy systems (primarily for the implementation of auto-
mated processes and other cost reducing production technologies), the 
sum of $6,000,000 is hereby authorized by this Act to be appropri-
ated for the fiscal year ending September 30,1978. 
SEC. 209. (a) Nothing in this title shall apply with respect to any 
authorization or appropriation for any military application of nuclear 
energy, for research and development in support of the Armed Forces, 
or for the common defense and security of the United States. 
(b) (1) The term "military application" means any activity author-
ized or permitted by chapter 9 of the Atomic Energy Act of 1954, 
as amended (Public Law 83-703, as amended; 42 U.S.C. 2121, 2122). 
(2) The term "research and development," as used in this section, 
is defined by section 11 x., of the Atomic Energy Act of 1954, as 
amended (Public Law 83-703, as amended; 42 U.S.C. 2014). 
(3) The term "common defense and security" means the common 
defense and security of the United States as used in the Atomic 
Energy Act of 1954, as amended (Public Law 83-703, as amended). 
SEC. 210. (a) In order to provide economic farm units to qualifying 
farmers whose land is economically infeasible to reclaim from dam-
ages resulting from the Teton flood of June 5, 1976, and who are 
unable to find suitable replacement land for their flood damaged 
farm, and in order to restore the economic and agricultural base of 
the flood damaged region, there is hereby transferred 5,955 acres of 
land, hereinafter described, in the State of Idaho presently under 
the jurisdiction of the Department of Energy, to the Secretary of the 
Interior who, acting through the Bureau of Reclamation, shall make 
such lands available for sale to qualifying farmers according to the 
terms hereafter provided. 
PUBLIC LAW 95-238—FEB. 25, 1978 
92 STAT. 77 
(b) As used in this section, the term: 
(1) "Teton flood" means the flood resulting from the collapse 
of Teton Dam of the Lower Teton Division of the Teton Basin 
Federal Reclamation Project on June 5,1976. 
(2) "Department of Energy land" means those public and 
acquired lands in the State of Idaho identified as sections num-
bered fourteen 
(14), twenty-three (23), twenty-four 
(24), 
twenty-five (25), and thirty-six (36), in township six (6) north, 
or range thirty-three (33) east of the Boise meridian; sections 
numbered nineteen (19), thirty (30), and thirty-one (31) in 
township six (6) north, of range thirty-four (34) east of the 
Boise meridian; and the southeast quarter, the south half of 
the northeast quarter, the east half of the southwest quarter and 
the southeast quarter of the northwest quarter, of section num-
bered eight (8) and the south half of the north half of section 
numbered nine (9) in township five (5) north, of range thirty-
four (34) east of the Boise meridian, all situated in the county 
of Jefferson and State of Idaho, and containing 5,955 acres, more 
or less, which w^ould be transferred for the purposes of this Act. 
(3) "Qualifying farmer" means the resident, owner-operator 
of a farm who resides in the immediate locality, whose livelihood 
is derived from his farming operation and whose land was dam-
aged due to the collapse of the Teton Dam on June 5,1976, to the 
extent that in the opinion of the Secretary of the Interior, it is 
not economically feasible to reclaim such land so that it produces 
an income commensurate with that earned prior to^ the Teton 
flood. 
(4) "Irrigable land" means farm land that is suitable for 
irrigated agriculture and has been certified as irrigable by the 
Secretary of the Interior. 
(c) For a period of not more than five years after transfer to the 
Bureau of Reclamation, the land heretofore described shall be avail-
able for purchase by those who, on or before October 1, 1978, are 
determined to be qualifying farmers pursuant to regulations issued 
in accordance with subsection (f) of this section by the Secretary of 
the Interior. 
(d) Department of Energy land as described in subsection (b) (2) 
of this section shall be certified as irrigable by the Secretary of the 
Interior, and lands so certified shall be made available in a manner to 
be prescribed by the Secretary for purchase by qualifying farmers at 
its current fair market value as determined by a board of appraisers 
composed of a Federal appraiser, a State appraiser, and one appraiser 
from the disaster region: Provided^ That irrigable land transferred 
to a single ownership shall not exceed 160 acres of class I land as 
defined by the Secretary or the equivalent thereof in other land classes 
as determined by the Secretary. The United States, through the Secre-
tary, shall convey fee simple title of the Department of Energy land 
to the qualifying farmer. The cost of developing the replacement land 
for farming shall be borne by the qualifying farmer who purchases 
the land. 
(e) Any part of the Department of Energy land remaining in the 
possession of the Bureau of Reclamation at the end of the five year 
period, except land needed for public rights-of-way, as determined by 
the Secretary, shall be returned to the Department of Energy. 
(f) Within ninety days after the enactment of this Act the Secre-
tary shall prescribe and publish in the Federal Register such rules and 
regulations as may be necessary and proper to carry out the provisions 
of this section. 
Definitions. 
Lands, purchase. 
Irrigable lands, 
certification. 
Land purchases, 
fair market value. 
Single ownership 
acreage 
limitation. 
Title conveyance. 
Development 
costs. 
Remaining lands, 
disposition. 
Rules and 
regulations, 
publication in 
Federal Register. 
92 STAT. 78 
PUBLIC LAW 95-238—FEB. 25, 1978 
Farm losses, 
(g) Full recovery for the loss of all or part of flood-damaged farms 
recovery. 
gj^g^jj j^g obtained by owners pursuant to the Teton Dam Disaster 
Assistance Act of 1976. Public Law 94-400, 90 Stat. 1211, and the 
Supplemental Appropriation Act of 1976, Public Law 94-438, 90 
Stat. 1415. 
Appropriation 
(j^) There is hereby authorized to be appropriated such sums as 
authorization. 
^^^ j^p necessary for the purposes of administration of this section. 
Automotive 
TITLE III—AUTOMOTIVE PROPULSION RESEARCH AND 
Propulsion 
DEVELOPMENT 
Kesearch and 
, 
^ 
Development Act 
of 1978. 
SHORT TITLE 
15 use 2701 
SEC. 301. This title may be cited as the "Automotive Propulsion 
"''t^- 
Research and Development Act of 1978''. 
FINDINGS AND PURPOSES 
15 use 2701. 
SEC. 302. (a) The Congress finds that— 
(1) existing automobile propulsion systems, on the average, fall 
short of meeting the long-term goals of the Nation with respect 
to environmental protection, and energy conservation; 
(2) advanced alternatives to existing automobile propulsion 
systems could, with sufficient research and development effort, 
meet these long-term goals, and have the potential to be mass 
produced at reasonable cost; and advanced automobile propulsion 
systems could operate with significantly less adverse environmental 
impact and fuel consumption than existing automobiles, while 
meeting all of the other requirements of Federal law; 
(3) insufficient resources are being devoted to both research on 
'""" i 
and development of advanced automobile propulsion system 
technology; 
(4) an expanded research and development effort with respect 
to advance automobile propulsion system technology would com-
plement and stimulate corresponding efforts by the private sector 
and would encourage automobile manufacturers to consider 
seriously the incorporation of such advanced technology into auto-
mobiles and automobile components; and 
(5) the Nation's energy and environmental problems are urgent, 
and therefore advanced automobile propulsion system technology 
should be developed, tested, demonstrated, and prepared for manu-
facture within the shortest practicable time. 
'" " 
'•'' • 
(b) It is therefore the purpose of the Congress, in this title to— 
(1) (A) direct the Department of Energy to make contracts and 
grants for research and development leading to the development 
of advanced automobile propulsion systems within 5 years of the 
date of enactment of this Act, or within the shortest practicable 
time consistent with appropriate research and development tech-
niques, and (B) evaluate and disseminate information with respect 
to advanced automobile propulsion system technology; 
*
• - 
''" 
(2) preserve, enhance, and facilitate competition in research, 
•'' ' • 
development, and production with respect to existing and alterna-
tive automobile propulsion systems; and 
(3) supplement, but neither supplant nor duplicate, the auto-
motive propulsion system research and development efforts of 
private industry. 
PUBLIC LAW 95-238—FEB. 25, 1978 
92 STAT. 79 
DEFINITIONS 
SEC. 303. As used in this title, the term— 
15 USC 2702. 
(1) "advanced automobile propulsion system" means an energy 
conversion system, including engine and drive train, which utilizes 
advanced technology and is suitable for use in an advanced 
automobile; 
(2) "developer" means any person engaged in whole or in part 
in research or other efforts directed toward the development of 
advanced automobile technology; 
(3) "fuel" means any energy source capable of propelling an 
automobile; 
(4) "fuel economy" refers to the average distance traveled in 
representative driving conditions by an automobile per unit of 
fuel consumed, as determined by the Administrator of the Envi-
ronmental Protection Agency in accordance with test procedures 
which shall be established oy rule and shall require that fuel 
economy tests be conducted in conjunction with the exhaust emis-
sions tests mandated by section 206 of the Clean Air Act (42 
U.S.C. 1857f-5); 
(5) "intermodal adaptability" refers to any characteristics of 
an automobile which enable it to be operated or carried, or which 
facilitate its operation or carriage, by or on an alternative mode 
or other system of transportation; 
(6) "reliability" refers to (A) the average time and distance 
over which normal automobile operation can be expected without 
significant repair or replacement of parts, and (B) the ease of 
diagnosis and repair of an automobile, its systems, and parts in 
the event of failure during use or damage from an accident; 
. , . • 
(7) "safety" refers to the performance of an automobile pro-
pulsion system or equipment in such a manner that the public 
is protected against unreasonable risk of accident and against 
unreasonable risk of death or bodily injury in case of accident; 
(8) "State" means any State, the District of Columbia, the 
. . 
Commonwealth of Puerto Rico, the Virgin Islands, Guam, Amer-
ican Samoa, or any other territory or possession of the United 
States. 
DUTIES OF THE SECRETARY OF ENERGY 
SEC. 304. (a) The Secretary of Energy shall establish, within the 
Department of Energy, a program to insure the development of 
advanced automobile propulsion systems within 5 years after the date 
of enactment of this Act, or within the shortest practicable time, 
consistent with appropriate research and development technique. In 
conducting such program, the Secretary of Energy shall— 
(1) establish and conduct new projects and accelerate existing 
projects which may contribute to the development of advanced 
automobile propulsion systems; 
(2) give priority attention to the development of advanced pro-
pulsion systems with appropriate attention to those advanced pro-
pulsion systems which are flexible in the type of fuel used; and 
(3) insure that research and development under this title sup-
plements, but neither supplants nor duplicates, the automotive 
research and development efforts of private industry. 
(b) The Secretary of Energy shall, in fulfilling his responsibilities Contracts and 
under this title, make contracts and grants with any Federal agency, grants, 
laboratory, university, nonprofit organization, industrial organiza-
Advanced 
automobile 
propulsion 
systems, 
development 
program, 
establishment. 
15 USC 2703. 
92 STAT. 80 
PUBLIC LAW 95-238—FEB. 25, 1978 
Administrative 
regulations. 
Certification, 
provisions. 
Certifications, 
availability to 
congressional 
committees. 
5 u s e 500 et seq. 
42 u s e 5916. 
tion, public or private agency, institution, organization, corporation, 
partnership, or individual for research and development leading to 
advanced automobile propulsion systems which are likely to help meet 
the Nation's long-term goals with respect to fuel economy, environ-
mental protection, and other objectives. 
(c) In providing financial assistance under this title, the Secretary 
of Energy shall give fidl consideration to the capabilities of Federal 
laboratories, except that not more than 60 per centum of the funds 
appropriated pursuant to the authorization under section 312 shall be 
directly expended in Federal laboratories. In accordance with section 
307, such laboratories shall be available for testing components and 
subsystems which, in the Secretary of Energy's judgment, is likely to 
contribute to the development of advanced automobile propulsion 
systems. 
(d) The Secretary of Energy shall conduct evaluations, arrange for 
tests, and disseminate information pursuant to section 307 and submit 
reports required under section 310. 
(e) The Department of Energy shall intensify research in key basic 
science areas in which the lack of knowledge limits development of 
advanced automobile propulsion systems. 
(f) (1) The Secretary of Energy shall insure that the conduct of the 
program as defined in subsection (a) of this section— 
(A) supplements the autoniotive propulsion system research 
and development efforts of industry; 
(B) is not formulated in a manner that will supplant private 
industry research and development or displace or lessen indus-
try's research and development; and 
(C) avoids duplication of private research and development. 
(2) To that end, the Secretary of Energy shall issue administrative 
regulations, within 60 days after the date of the enactment of this Act, 
which shall specify procedures, standards, and criteria for the timely 
review for compliance of each new contract, grant. Department of 
Energy project, or other agency project funded or to be funded under 
the authority of this Act. Such regulations shall require that the Sec-
retary of Energy or his designee shall certify that each such contract, 
grant, or project satisfies the requirement of this subsection, and shall 
include in such certification a discussion of the relationship of any 
related or comparable industry research and development, in terms of 
this subsection, to the proposed research and development under the 
authority of this Act. The discussion shall also address related issues, 
such as cost sharing and patent rights. 
(3) Such certifications shall be available to the Committee on Sci-
ence and Technology of the House of Representatives and the Com-
mittee on Energy and Natural Resources of the Senate. The provisions 
of chapter 5 of title 5, United States Code, shall not apply to such cer-
tifications and no court shall have any jurisdiction to review the prepa-
ration or adequacy of such certifications; but section 553 of title 5, 
United States Code, and section 17 of the Federal Nonnuclear Energy 
Research and Development Act of 1974, as amended, shall apply to 
public disclosure of such certifications. 
(4) The Secretary of Energy also shall include in the report 
required by section 310(a) of this Act a detailed discussion of how 
each research and development contract, grant, or project funded 
under the authority of this Act satisfies the requirement of this 
subsection. 
(5) Further, the Secretary of Energy in each annual budget submis-
sion to the Congress, or amendment thereto, for the programs author-
PUBLIC LAW 95-238—FEB. 25, 1978 
92 STAT. 81 
ized by this Act shall describe how each identified research and devel-
opment effort in such submission satisfies the requirements of this 
subsection. 
(6) The provisions and requirements of this subsection shall not 
apply with respect to any contract, grant, or project which was entered 
into, made, or formally approved and initiated prior to the enactment 
of this Act, or with respect to any renewal or extension thereof. 
DUTIES OF THE SECRETARY OF TRANSPORTATION 
SEC. 305. The Secretary of Transportation, in furtherance of the 
purposes of this title, shall evaluate the extent to which the automo-
bile industry utilizes advanced automotive technology which is or 
could be made available to it. The Secretary of Transportation shall 
submit a report to the Congress each year on the results of such evalua-
tion including any appropriate recommendations which may encour-
age the utilization of advanced automobile technology by the auto-
mobile industry. 
Annual report to 
Congress. 
15 use 2704. 
COORDINATION AND CONSULTATION 
Program 
management. 
15 use 2705. 
SEC 306. (a) The Secretary of Energy shall have overall manage-
ment responsibility for carrying out the program under section 304. 
In carrying out such program, the Socrotary of Energy, consistent 
with such oveiall management responsibility— 
(1) shall utilize the expertise of the Department of Transporta-
tion to the extent deemed appropriate by the Secretary of Energy; 
and 
(2) may utilize any other Federal agency (except as provided 
in paragraph (1)) in accordance with subsection (c) in carrying 
out any activities under this title, to the extent that the Secretary 
of Energy determines that any such agency has capabilities which 
would allow such agency to contribute to the purposes of this 
title. 
(b) The Secretary of Transportation, whenever the expertise of the 
Department of Transportation is utilized in accordance with subsec-
tion (a), may exercise the powers granted to the Secretary of Energy 
under subsection (c) and shall enter into contracts and make grants 
for such purpose, subject to the overall management responsibility of 
the Secretary of Energy. 
(c) The Secretary of Energy may, in accordance with subsection 
(a), obtain the assistance of any department, agency, or instrumental-
ity of the executive branch of the Federal Government upon written 
request, on a reimbursable basis or otherwise and with the consent of 
such department, agency, or instrumentality. Each such request shall 
identify the assistance the Secretary of Energy deems necessary to 
carry out any duty under this title. 
(d) The Secretary of Energy shall consult with the Administrator 
' i . 
. 
of the Environmental Protection Agency and the Secretary of Trans-
portation, and shall establish procedures for periodic consultation 
with representatives of science, industry, and such other groups as may 
have special expertise in the area of automobile propulsion system 
research, development, and technology. The Secretary of Energy may Advisory panels. 
establish such advisory panels as he deems appropriate to review and 
make recommendations with respect to applications for funding under 
this title. 
eontracts and 
grants. 
Federal agencies 
cooperation, 
requests. 
92 STAT. 82 
PUBLIC LAW 95-238—FEB. 25, 1978 
(e) Nothing contained in this title shall be construed to reduce in 
any way the responsibilities of the Secretary of Energy for automotive 
research, development, and demonstration under the Energy Keor-
ganization Act of 1974 (42 U.S.C. 5801 et seq.) and the Federal Non-
nuclear Energy Research and Development Act of 1974 (42 U.S.C. 
5901 et seq.). 
EVALUATIGN, TESTING, AND INFORMATION 
DISSEMINATION 
15 use 2706. 
SEC. 307. (a) The Secretary of Energy shall, for the purposes of 
performing his responsibilities under this title, consider any reason-
able new or improved technology, a description of which is submitted 
•" -5.. 
to the Secretary of Energy in writing, which could lead or contribute 
to the development of advanced automobile propulsion system 
technology. 
(b) The Administrator of the Environmental Protection Agency 
shall test, or cause to be tested, in a facility subject to Environmental 
Protection Agency supervision, each advanced automobile propulsion 
system in an appropriately modified production vehicle equipped with 
such a system developed in whole or in part with Federal financial 
assistance under this title, or referred to the Administrator of the 
Environmental Protection Agency for such purpose by the Secretary 
of Energy, to determine whether such vehicle complies with any 
exhaust emission standards or any other requirements promulgated or 
reasonably expected to be promulgated under any provision of the 
Clean Air Act (42 U.S.C. 1857 et seq.), the Noise Control Act of 1972 
(42 U.S.C. 4901 et seq.), or any other provision of Federal law admin-
istered by the Administrator of the Environmental Protection Agency. 
In conjunction with any test for compliance with exhaust emission 
standards under this section, the Administrator of the Environmental 
Protection Agency shall also conduct tests to determine the fuel econ-
EPA test data and omy of such vehicle. The Administrator of the Environmental Pro-
results, submittal tection Agency shall submit all test data and the results of such tests 
to Secretary. 
to the Secretary of Energy. 
(c) The Secretary of Energy shall collect, analyze, and disseminate 
to developers information, data, and materials that may be relevant to 
the 
development 
of 
advanced 
automobile 
propulsion 
system 
technology. 
PATENTS 
15 use 2707. 
SEC. 308. Section 9 of the Federal Nonnuclear Energy Research and 
Development Act of 1974 (42 U.S.C. 5908) shall apply to any contract 
(including any assignment, substitution of parties, or subcontract 
thereunder) or grant, entered into, made, or issued by the Secretary 
of Energy under this title. 
COMPTROLLER GENERAL AUDIT AND EXAMINATION 
15 use 2708. 
SEC. 309. Section 306 of the Energy Reorganization Act of 1974 
(42 U.S.C. 5876) shall apply with respect to the authority of the 
Comptroller General to have access to and rights of examination of 
books, documents, papers, and records of recipients of financial 
"eontract." 
assistance under this title; except that for the purposes of this title, the 
term "contract" (as used in section 166 of the Atomic Energy Act 
(42 U.S.C. 2206), insofar as it relates to such section 306) means "con-
tract or grant". 
PUBLIC LAW 95-238—FEB. 25, 1978 
92 STAT. 83 
REPORTS 
SEC. 310. (a) As a separate part of the annual report submitted 15 USC 2709. 
under section 15(a) of the Federal Nonnuclear Energy Kesearch and 
Development Act of 1974 with respect to the comprehensive plan and 42 U
S
C 5914. 
program then in effect under section 6 (a) and (b) of such Act, the 42 USC 5905. 
Secretary of Energy shall submit to Congress an annual report of 
activities under this title. Such report shall include— 
r 
• 
(1) a current comprehensive program definition for imple-
menting this title; 
(2) an evaluation of the state of automobile propulsion system 
research and development in the United States; 
(3) the number and amount of contracts and grants made under 
this title; 
-Si!: ;'; i-. 
(4) an analysis of the progress made in developing advanced 
automobile propulsion system technology; and 
(5) suggestions for improvements in advanced automobile pro-
pulsion system research and development, including recommenda-
tions for legislation. 
(b) The Secretary of Energy shall conduct a survey of developers. Survey and study, 
lending institutions, and other appropriate persons or institutions 
and shall otherwise make a study for the purpose of determining 
whether, and under what conditions, research, development, demon-
stration, and commercial availability of advanced automobile propul-
sion system technology may be aided by the guarantee of financial 
obligations by the Federal Government. The Secretary of Energy shall 
report the results of such survey and study to the Congress within 
1 year after the date of enactment of this Act. Such report shall 
include an examination of those stages of advanced automobile propul-
sion system technology research, development, demonstration, and com-
mercialization for which financial obligation guarantees may be useful 
or appropriate and shall contain such legislative recommendations as 
may be necessary. 
;-- . • 
AMENDMENT OF THE NATIONAL AERONAUTICS AND SPACE ACT 
SEC. 311. (a) Section 102 of the National Aeronautics and Space 
Act of 1958 (42 U.S.C. 2451) is amended by redesignating subsection 
(e) as subsection (f), and by inserting immediately after subsection 
(d) the following new subsection: 
"(e) The Congress declares that the general welfare of the United 
States requires that the unique competence in scientific and engineering 
systems of the National Aeronautics and Space Administration also be 
«., - ,..,. .; 
directed toward the development of advanced automobile propulsion 
systems. Such development shall be conducted so as to contribute to the 
achievement of the purposes set forth in section 302(b) of the Auto-
motive Propulsion Research and Development Act of 1978.". 
^n^«. P- 78. 
-
-
i 
(b) The subsection of section 102 of such Act redesignated as sub-
section (f) by subsection (a) of this section is amended by striking out 
' . s.: > i; 
"and (d)" and inserting in lieu thereof "(d), and (e)". 
AUTHORIZATION FOR APPROPRIATION 
' 
SEC 312. There is authorized to be appropriated to carry out the 15 USC 2710. 
purposes of this title, in addition to any amounts made available for 
j, 
such purposes pursuant to title I of this Act, the sum of $12,500,000 for Ante, p. 47. 
the fiscal year ending September 30,1978. 
92 STAT. 84 
PUBLIC LAW 95-238—FEB. 25, 1978 
Ante, p. 61. 
TITLE IV—ESTABLISHMENT OF FINANCIAL SUPPOET 
PROGRAM FOR MUNICIPAL WASTE REPROCESSING 
DEMONSTRATION FACILITIES 
SEC. 401. The Federal Nonnuclear Energy Research and Develop-
ment Act of 1974 (42 U.S.C. 5901 et seq.), as amended by section 207 of 
this Act, is further amended by adding at the end thereof the following 
new section: 
> 
42 use 5920. 
Demonstration 
project. 
Municipal waste. 
'Municipal. 
Federal share. 
Regulations. 
42 u s e 5906. 
Compliance, 
consultation. 
42 u s e 6984. 
"FINANCIAL SUPPORT PROGRAM FOR MUNICIPAL WASTE REPROCESSING 
DEMONSTRATION FACILITIES 
"SEC. 20. (a) It is the purpose of this section— 
" (1) to assure adequate Federal support to foster a program to 
demonstrate municipal waste reprocessing for the production of 
fuel and energy intensive products; and 
"(2) to gather information about the technological, economic, 
environmental, and social costs, benefits, and impacts of such 
demonstration facilities. 
"(b)(1) The Administrator is authorized and directed, to the extent 
provided in appropriation Acts, to establish such a demonstration pro-
gram by making grants, contracts, price supports, and cooperative 
agreements pursuant to this Act or any combination thereof for the 
establishment of municipal waste reprocessing demonstration facilities. 
For the purpose of this section municipal waste shall include but not be 
limited to municipal solid waste, sewage sludge, and other municipal 
organic wastes. 
"(2) The aggregate amount of funds available for grants, contracts, 
price supports, and cooperative agreements for municipal waste 
reprocessing demonstration facilities shall not exceed $20,000,000 in 
the fiscal year ending September 30,1978. 
"(3) For purposes of this section the term 'municipal' shall include 
any city, town, borough, county, parish, district, or other public body 
created by or pursuant to State law. 
"(4) Municipal waste reprocessing demonstration facilities estab-
lished under this section shall be owned or operated (or both owned 
and operated) by the municipality and shall involve the recovery of 
energy or energy intensive products. Such facilities may be estab-
lished by any public or private entity, by contract or otherwise, as 
may be determined by the local government which will own or operate 
(or both own and operate) such facilities and to which financial sup-
port is provided. The Federal share for any such facility to which 
this section applies shall not exceed 75 per centum of the cost of such 
facility, and not more than $40,000,000 in Federal funds under this 
section may be used for the construction of any one facility. 
"(5) The Administrator shall promulgate such regulations as he 
deems necessary, pursuant to section 7(a)(4) and section 7(c) (1) 
and (6) of this Act, for purposes of establishing a price support pro-
gram for revenue producing products of municipal waste reprocessing 
demonstration facilities. 
"(c) (1) The Administrator shall consult with the Environmental 
Protection Agency to assure that the provisions of section 8004 of the 
Resource Conservation and Recovery Act of 1976 (Public Law 
94-580) are applied in carrying out this section. 
PUBLIC LAW 95-238—FEB. 25, 1978 
92 STAT. 85 
"(2) Any energy-related research, development, or demonstration 
project for the conversion (including bioconversion) of municipal 
waste carried out by the Energy Kesearch and Development Adminis-
tration pursuant to this or any other Act shall be administered in 
accordance with the May 7,1976, Interagency Agreement between the 
Environmental Protection Agency and the Energy Research and 
Development Administration on the development of energy from 
solid wastes; and specifically, in accordance with such Agreement 
(A) for those energy-related projects of mutual interest, planning 
will be conducted jointly by the Environmental Protection Agency 
and the Energy Research and Development Administration, follow-
ing which project responsibility will be assigned to one agency; (B) 
energy-related aspects of projects for recovery of fuels or energy 
intensive products from municipal waste as defined in this section 
shall be the responsibility of the Energy Research and Development 
Administration including energy-related economic and institutional 
aspects; and (C) the Environmental Protection Agency shall retain 
responsibility for the environmental and other economic and institu-
tional aspects of solid waste projects and for assurance that such 
projects are consistent with any applicable suggested guidelines pub-
lished pursuant to section 1008 of the Resource Conservation and 
Recovery Act of 1976 (Public Law 94-580), and any applicable State 
or regional waste management plan. 
"(d)(1) The Administrator shall establish such guidelines as he 
deems necessary for purposes of obtaining pertinent information from 
municipalities receiving funding under this section. These guidelines 
shall include but not be limited to methods of assessment and evalu-
ation of projects authorized under this section. Such assessments and 
evaluations shall be presented by the Administrator to the House 
Committee on Science and Technology and the Senate Committee on 
Energy and Natural Resources upon the request of either such 
committee. 
"(2) The Administrator shall annually submit a report to the Con-
gress concerning the actions taken or not taken by the Administrator 
under this section during the preceding fiscal year, and including but 
not limited to (A) a discussion of the status of each demonstration 
facility and related facilities financed under this section, including 
progress made in the development of such facilities, and the expected 
or actual production from each such facility including byproduct pro-
duction therefrom, and the distribution of such products and byprod-
ucts, (B) a statement of the financial condition of each such 
demonstration facility, (C) data concerning the environmental, com-
munity, and health and safety impacts of each such facility and the 
actions taken or planned to prevent or mitigate such impacts, (D) the 
administrative and other costs incurred by the Administrator and 
other Federal agencies in carrying out this program, and (E) such 
other data as may be helpful in keeping Congress and the public fully 
and currently informed about the program authorized by this section. 
"(3) The annual reports required by this subsection shall be a part 
of the annual report required by section 15 of this Act, except that the 
matters required to be reported by this subsection shall be clearly set 
out and identified in such annual reports. Such reports shall be trans-
mitted to the Speaker of the House of Representatives and the House 
Committee on Science and Technology and to the President of the 
Senate and the Senate Committee on Energy and Natural Resources. 
"(e) No part of the program authorized by this section shall be 
Project 
administration. 
42 use 6907. 
Guidelines, 
availability to 
congressional 
committees. 
Annual report to 
Congress. 
42 use 5914. 
92 STAT. 86 
PUBLIC LAW 95-238—FEB. 25, 1978 
Definitions. 
30 use 1101 
note. 
30 use 1121. 
ehairman. 
30 use 1123. 
30 use 1125. 
Loan guaranty 
program, 
establishment. 
30 use 1141. 
transferred to any other agency or authority, except pursuant to Act 
of Congress enacted after the date of the enactment of this section. 
"(f) Nothing in this section shall be construed as abrogating any 
obligations of any municipality receiving financial assistance pursuant 
to this section to comply with Federal and State environmental, land 
use, water, and health and safety laws and regulations or to obtain 
applicable Federal and State permits, licenses, and certificates.". 
TITLE 
V—AMENDMENTS 
TO 
THE 
GEOTHERMAL 
ENERGY RESEARCH, DEVELOPMENT, AND DEMON-
STRATION ACT 
SEC. 501. As used in this title— 
(1) the term "Act" means the Geothermal Energy Research, 
Development, and Demonstration Act of 1974 (88 Stat. 1079); and 
(2) the term "Administrator" means the Administrator of the 
Energy Research and Development Administration. 
SEC. 502. Section 101 (b) of the Act is amended— 
(1) by striking out subparagraph (E) of paragraph (1) and 
inserting in lieu thereof the following: 
"(E) the Assistant Administrator of the Energy Research and 
Development 
Administration 
for 
Solar, 
Geothermal, 
and 
Advanced Energy Systems;" ; 
(2) by striking out the period at the end of paragraph (1) and 
inserting in lieu thereof a semicolon; 
(3) by adding at the end of paragraph (1) the following new 
subparagraphs: 
"(G) an Assistant Administrator of the Environmental Protec-
tion Agency; 
"(H) an Assistant Secretary of Treasury; and 
" (I) an Assistant Secretary of Agriculture."; and 
(4) by striking out "one member of the Project" in paragraph 
(2) and inserting in lieu thereof "the Assistant Administrator of 
the Energy Research and Development Administration for Solar, 
Geothermal, and Advanced Energy Systems". 
SEC. 503. Section 103(b) (4) of the Act is amended by inserting the 
phrase "or administrative regulations" after "legislation", and by 
inserting ", environmental and taxing" after "leasing". 
SEC. 504. Section 105(e) (3) of the Act is amended by striking out 
the period and inserting in lieu thereof "or such assistance would not 
be adequate to satisfy the goals and requirements of the demonstration 
program under this section.". 
SEC. 505. Section 201(b) of the Act is amended by striking out "or" 
at the end of paragraph (3), by striking out the period at the end of 
paragraph (4) and inserting in lieu thereof "; or", and by adding at 
the end thereof the following new paragraph: 
"(5) construction and operation of a new commercial, agricul-
tural, or industrial structure or facility or modification and opera-
tion of an existing commercial, agricultural, or industrial 
structure or facility, when geothermal hot water or steam is to 
be used within or by such structure or facility, or modification 
thereto, for the purposes of space heating or cooling, industrial or 
agricultural processes, onsite generation of electricity for use 
other than for sale or resale in commerce, other commercial appli-
cations, or combinations of applications separately eligible under 
this title for loan guarantee assistance.". 
PUBLIC LAW 95-238—FEB. 25, 1978 
92 STAT. 87 
SEC. 506. Section 201(b) (4) of the Act is amended by striking out 
"from" and inserting in lieu thereof "using". 
SEC. 507. Section 201 (c) of the Act is amended by adding at the end 
thereof the following new sentence: "In the case of a guaranty for the 
purposes specified in subsection (b)(5), the aggregate cost of the proj-
ect shall be deemed to be that portion of the total cost of construction 
and operation which is directly related to the utilization of geothermal 
energy within the structure or facility in question, except that the 
aggregate cost of the project with respect to which the loan is made 
may be the total cost including construction and operation in cases 
where the facility or structure has been located near a geothermal 
energy resource predominantly for the purpose of utilizing geothermal 
energy, or as determined by the Administrator the economic viability 
of the project is substantially dependent upon the performance of the 
geothermal reservoir.". 
SEC. 508. Section 201 (e) of the Act is amended— 
(1) by striking out "$25,000,000" and inserting in lieu thereof 
"$100,000,000: Provided^ That in the case of a guaranty under 
subsection (b) (5), the amount of the guaranty for any loan for a 
project shall not exceed $50,000,000"; 
(2) by striking out "$50,000,000" and inserting in lieu thereof 
"200,000,000"; and 
(3) by inserting before the period at the end thereof the follow-
ing: ", unless the Administrator determines in writing that a 
guaranty in excess of these amounts is in the national interest. 
Any such determination shall be submitted to the Speaker of the 
House and the Committee on Science and Technology of the 
House of Representatives, and to the President of the Senate and 
the Committee on Energy and Natural Resources of the Senate, 
accompanied by a full and complete report on the proposed proj-
ect and guaranty. The proposed guaranty or commitment to guar-
antee shall not be finalized under authority granted by this Act 
prior to the expiration of thirty calendar daj^s (not including any 
date on which either House of Congress is not in session) from 
the date on which such report is received by the Speaker of the 
House and the President of the Senate. 
SEC. 509. Section 201 of the Act is further amended by adding at the 
end thereof the following new subsections: 
"(g) With respect to any guaranty which is issued after the enact-
ment of this subsection by, or in behalf of, any State, political subdivi-
sion, or Indian tribe and which is either guaranteed under, or 
supported by taxes levied by said issuer which are guaranteed under 
this title, and for which the interest paid on such obligation and 
received by the purchaser thereof is included in gross income for the 
purposes of chapter 1 of the Internal Revenue Code for 1954, as 
amended, the Administrator shall pay to such issuer out of the fund 
established by this title such portion of the interest on such obligations, 
as determined by the Administrator, in consultation with the Secretary 
of the Treasury, to be appropriated after taking into account current 
market yields (1) on obligations of such issuer, if any, or (2) on other 
obligations with similar terms and conditions, the interest on which is 
not so included in gross income for purposes of chapter 1 of said Code, 
and in accordance with such terms and conditions as the Administrator 
shall require in consultation with the Secretary of the Treasury. 
"(h) The full faith and credit of the United States is pledged to 
the payment of all guaranties issued under this title with respect to 
principal and interest. 
Ante, p. 86. 
Extent of 
guaranty. 
Limitation. 
Determination, 
transmittal to 
Speaker of 
House, President 
of Senate, and 
congressional 
committees. 
Finalization. 
Interest payment 
consultation. 
26 u s e 1 et seq. 
92 STAT. 88 
Guaranties, fees. 
Capital market 
impact 
minimization. 
30 use 1142. 
PUBLIC LAW 95-238—FEB. 25, 1978 
"(i) The Administrator shall charge and collect fees for guaranties 
in amounts sufficient in his judgment to cover applicable administra-
tive costs and probable losses on guaranteed obligations, but in any 
event not to exceed 1 per centum per annum of the outstanding indebt-
edness covered by each guaranty. Fees collected under this subsection 
shall be deposited in the fund established by this title. 
"(j) The Secretary of the Treasury shall insure to the maximum 
extent feasible that the timing, interest rate, and substantial terms and 
conditions of any guaranty exceeding $25,000,000 will have the mini-
mum possible impact on the capital markets of the United States, tak-
ing into account other Federal direct and indirect commercial 
securities activities.". 
SEC. 510. Section 202 of the Act is amended to read as follows: 
Rights, 
subrogation. 
Notification to 
Attorney 
General. 
Payment 
recovery. 
Payments, 
contracts. 
"DEFAULT; PAYMENT or INTEREST 
IK 
"SEC. 202. (a) If there is a default by the borrower, as defined in 
regulations promulgated by the Administrator and set forth in the 
guarantee contract, the holder of the obligation shall have the right 
to demand payment of the unpaid amount from the Administrator. 
Within such period as may be specified in the guarantee or related 
agreements, the Administrator shall pay to the holder of the obli-
gation the unpaid interest on, and unpaid principal of the guaranteed 
obligation as to which the borrower has defaulted, unless the Adminis-
trator finds that there was no default by the borrower in the payment 
of interest or principal or that such default has been remedied. Noth-
ing in this section shall be construed to preclude any forebearance by 
the holder of the obligation for the benent of the borrower which may 
be agreed upon by the parties to the guaranteed obligation and 
approved by the Administrator,. 
"(b) If the Administrator makes a payment under subsection (a) 
of this subsection, the Administrator shall be subrogated to the rights 
of the recipient of such payment as specified in the guarantee.or 
related agreements including, where appropriate, the authority (not-
withstanding any other provision of law) to complete, maintain, oper-
ate, lease, or otherwise dispose of any property acquired pursuant to 
such guarantee or related agreements, or to permit the borrower, 
pursuant to an agreement with the Administrator, to continue to 
pursue the purposes of the project if the Administrator determines 
this to be in the public interest. The rights of the Administrator with 
respect to any property acquired pursuant to such guarantee or related 
agreements, shall be superior to the rights of any other person with 
respect to such-property. 
"(c) In the event of a default on any guarantee under this title, 
the Administrator shall notify the Attorney General, who shall take 
such action as may be appropriate to recover the amounts of any 
payments made under subsection (a), including any payment of prin-
cipal and interest under subsection (d), from such assets of the default-
ing borrower as are associated with the project, or from any other 
security included in the terms of the guarantee. 
"(d) With respect to any obligation guaranteed under this title, 
the Administrator is authorized to enter into a contract to pay, and to 
pay, holders of the obligation, for and on behalf of the borrower, 
from the Geothernial Resources Development Fund, the principal 
and interest payments which become due and payable on the unpaid 
balance of su6li obligation if the Administrator finds that— 
"(1) the borrower is unable to meet such payments and is not 
in default; it is in the public interest to permit the borrower to 
PUBLIC LAW 95-238—FEB. 25, 1978 
92 STAT. 89 
continue to pursue the purposes of such project; and the probable 
net benefit to the Federal Government in paying such principal 
and interest will be greater than that which would result in the 
event of a default; 
"(2) the amount of such payment which the Administrator is 
authorized to pay shall be no greater than the amount of principal 
and interest which the borrower is obligated to pay under the loan 
agreement; and 
"(3) the borrower agrees to reimburse the Administrator for 
such payment on terms and conditions, including interest, which 
are satisfactory to the Administrator.". 
SEC. 511. Section 204 of the Act is amended by redesignating subsec-
tion (c) as subsection (d) and inserting after subsection (b) the fol-
lowing new subsection (c) : 
"(c) If at any time the moneys available in the fund are insufficient 
to enable the Administrator to discharge his responsibilities under this 
title, he shall issue to the Secretary of the Treasury notes or other obli-
gations in such forms and denominations bearing such maturities, and 
subject to such terms and conditions, as may be prescribed by the Sec-
retary of the Treasury. This borrowing authority shall be effective only 
to such extent or in such amounts as are specified in appropriation 
Acts. Such authorizations may be without fiscal year limitations. 
Redemption of such notes or obligations shall be made by the Admin-
istrator from appropriations or other moneys available imder this 
section. Such notes or other obligations shall bear interest at a rate 
determined by the Secretary of the Treasury, which shall not be less 
than a rate determined by taking into consideration the average mar-
ket yield on outstanding marketable obligations of the United States 
of comparable maturities during the month preceding the issuance of 
the notes or other obligations. The Secretary of the Treasury shall 
purchase any notes or other obligations issued hereunder and for that 
purpose he is authorized to use as a public debt transaction the pro-
ceeds from the sale of any securities issued under the Second Liberty 
Bond Act, as amended, and the purposes for which securities may be 
issued under that Act are extended to include any purchase of such 
notes or obligations. The Secretary of the Treasury may at any time 
sell any of the notes or other obligations acquired by him under this 
subsection. All redemptions, purchases, and sales by the Secretary of 
the Treasury of such notes or other obligations shall be treated as 
public debt transactions of the United States.". 
SEC. 512. Title II of the Act is further amended by adding at the 
end thereof the following: new section : 
Reimbursement. 
Notes or 
obligations, 
issuance to 
Treasury. 
30 use 1144. 
Redemption. 
Interest rate. 
31 use 774. 
Sale. 
"COMMUNITY IMPACT ASSISTANCE 
"SEC. 205. (a) The Administrator, for anv project which has a 30 U
S
C 1145. 
guarantee under this title of not less than $50,000,000 and which will 
have an intended operating life of not less than five years to satisfy 
the purposes under this title for which the guarantee'has been made, 
shall endeavor to insure that, taking into consideration appropriate 
local community action and all reasonably available forms of assist-
ance under this section and other Federal"and State statutes, that the 
impacts resulting from the proposed project have been fully evaluated 
by the borrower, the Administrator, and the Governor of the affected 
State, and that effective steps have been taken or will be taken in a 
•. 
timely manner to finance community planning and development costs 
resulting from such project under this section, if applicable under 
92 STAT. 90 
PUBLIC LAW 95-238—FEB. 25, 1978 
State and local 
actions, review. 
30 use 191. 
Payments, 
guarantees and 
commitments. 
Sums, 
advancement. 
Tax abatement 
credits. 
Limitation. 
Defaults, tax 
payment. 
Consultation. 
Loans. 
Repayment, 
waiver. 
other provisions of law, or by other means. When the project will be 
located on leased Federal lands, the Administrator shall specifically 
review State and local actions under section 9(a) of the Mineral 
Leasing Act Amendments of 1976 (Public Law 94-377) and insure 
that any funds made available to the State pursuant to such section 
9(a) are used to finance such planning and development costs before 
any Federal assistance under subsection (c) of this section is consid-
ered or authorized. 
"(b) The Administrator, for projects not included under subsection 
(a), may in his discretion consider the community impacts which may 
result from such projects, and may take such actions, under authoritv 
directly available to him under other statutes or in coordination with 
other Federal agencies or the State, as he considers necessary and 
appropriate to insure timely and effective planning and financing for 
such community impacts. 
"(c) (1) In order to discharge his responsibilities under subsection 
(a), and in accordance with such rules and regulations as the Admin-
istrator in consultation w^ith the Secretary of the Treasury shall 
prescribe, and subject to such terms and conditions as he deems appro-
priate, the Administrator is authorized, for the purposes of financing 
essential community development and planning which directly result 
from, or are necessitated by, a project under subsection (a), to— 
"(A) guarantee and make commitments to guarantee the pay-
ment of interest on, and the principal balance of, obligations for 
such financing issued by eligible States, political subdivisions, or 
Indian tribes, 
"(B) guarantee and make commitments to guarantee the pay-
ment of taxes imposed on such project by eligible non-Federal 
taxing authorities which taxes are earmarked by such authorities 
to support the payment of interest and principal on obligations 
for such financing, and 
"(C) require that the qualified borrower receiving assistance 
for a project under this section advance sums to eligible States, 
political subdivisions, and Indian tribes to pay for the financing 
of such development and planning: Provided, That the State, 
political subdivision, or Indian tribe agrees to provide tax abate-
ment credits over the life of the project for such payments by 
such applicant. 
"(2) No guarantee or commitment to guarantee under paragraph 
(1) of this subsection shall exceed $1,000,000. 
"(3) In the event of any default by the borrower in the payment of 
taxes guaranteed by the Administrator under this section, the Admin-
istrator shall pay out of the fund established by this title such taxes 
at the time or times they may fall due, and shall have by reason of 
such payment a claim against the borrower for all sums paid plus 
interest. 
"(4) If after consultation with State, political subdivision, or 
Indian tribe, the Administrator finds that the financial assistance pro-
grams of paragraph (1) of this section will not result in sufficient 
funds to carry out the purposes of this subsection, then the Admin-
istrator may— 
"(A) make direct loans to the eligible States, political subdivi-
sions, or Indian tribes for such purposes: Provided,^ That such 
loans shall be made on such reasonable terms and conditions as the 
Administrator shall prescribe: Provided further, That the Admin-
istrator may waive repayment of all or part of a loan made under 
this paragraph, including interest, if the State or political sub-
division or Indian tribe involved demonstrates to the satisfaction 
PUBLIC LAW 95-238—FEB. 25, 1978 
92 STAT. 91 
Debt obligations 
redemption. 
Consultation. 
of the Administrator that due to a change in circumstances there 
will be net adverse impacts resulting from such project that would 
probably cause such State, subdivision, or tribe to default on the 
loan; or 
"(B) require that any community development and planning 
costs which are associated with, or result from, such project, and 
which are determined by the Administrator to be appropriate for 
such inclusion, shall be included in the aggregate costs of the 
project. 
"(5) The Administrator is further authorized to make grants to Grants 
States, political subdivisions, or Indian tribes for studying and plan-
ning for the potential economic, environmental, and social conse-
quences of projects and for establishing related management expertise. 
"(6) At any time the Administrator may, in consultation Avith the 
Secretary of the Treasury, redeem, in whole or in part, out of the fund 
established by this section, the debt obligations guaranteed or the debt 
obligations for which tax payments are guaranteed under this 
subsection. 
"(7) When one or more States, political subdivisions, or Indian 
tribes would be eligible for assistance under this subsection, but for the 
fact that construction and operation of the project occurs outside its 
jurisdiction, the Administrator is authorized to provide, to the greatest 
extent possible, arrangements for equitable sharing of such assistance. 
"(8) Such amounts as may be necessary for direct loans and grants 
pursuant to this subsection shall be available as provided in annual 
authorization Acts. 
"(9) The Administrator, if appropriate, shall provide assistance in Federal share 
the financing of up to 100 per centum of the costs of the required com-
munity development and planning piirsuant to this section. 
" (10) In carrying out the provisions of this section, the Administra-
tor shall provide that title to any facility receiving financial assistance 
under this section shall vest in the applicable State, political sub-
division, or Indian tribe, as appropriate, and in the case of default by 
the borrower on a loan guarantee made or committed under subsec-
tion (b) of this section, such facility shall not be considered a project 
asset for the purposes of section 202 of this Act. 
"(11) The Administrator shall not use his authority under this 
subsection to provide Federal assistance unless any Federal funds 
transferred pursuant to section 9(a) of the Mineral Leasing Act 
Amendments of 1976 (Public Law 94-377) to the State from the lease 30 USC 191 
of Federal land for or associated with the project have been or, with 
assurance, will be committed, to the maximum extent allowable under 
Federal statutes, to financing such essential community development 
or planning directly resulting from, or necessitated by, a project on 
leased Federal lands.". 
Facility title. 
Ante, p. 88. 
TITLE VI—ELECTRIC AND HYBRID VEHICLE RESEARCH, 
DEVELOPMENT, AND DEMONSTRATION PROGRAM 
SEC. 601. (a) Section 7(b) (3) of the Electric and Hybrid Vehicle 
Research, Development, and Demonstration Act of 1976 (15 U.S.C. 
2506(b) (3)) is amended by striking out ", except that rules promul-
gated under paragraph (1) shall be amended not later than 6 months 
prior to the date for contracts specified in subsection (c) (2)". 
(b) Section 7(b)(4) of such Act (15 U.S.C. 2506(b)(4)) is 
amended to read as follows: 
Demonstrations. 
39-194 O—80—pt. 1 
10 : QL3 
92 STAT. 92 
PUBLIC LAW 95-238—FEB. 25, 1978 
Standards, 
transmittal to 
Speaker of 
House, President 
of Senate, and 
congressional 
committees. 
Contracts for 
vehicle purchase 
or lease. 
Limitation. 
Information, 
availability to 
public. 
Explanation, 
transmittal to 
Speaker of 
House, President 
of Senate, and 
congressional 
committees. 
Contracts. 
" (4) The Administrator shall transmit to the Speaker of the House 
of Representatives and the President of the Senate, and to the Commit-
tee on Science and Technology of the House of Representatives and the 
Committee on Energy and Natural Resources of the Senate, the per-
formance standards developed under paragraph (1) and all revised 
performance standards established in connection with the demonstra-
tions specified in subsection (c) (2).". 
(c) Section 7(c) of such Act (15 U.S.C. 2506(c)) is amended to 
read as follows: 
" (c) (1) The Administrator shall, within 6 months after the date of 
promulgation of performance standards pursuant to subsection (b) (1), 
institute the first contracts for the purchase or lease of electric or 
hybrid vehicles which satisfy the performance standards set forth 
under (b) (1). The delivery of such vehicles shall be completed accord-
ing to the expedited best effort of the administering agency and the 
selected manufacturer. To the extent practicable, vehicles purchased or 
leased under such contracts shall represent a cross-section of the avail-
able technologies and of actual or potential vehicle use. 
"(2) Thereafter, according to a planned schedule, the Administra-
tor shall contract for the purchase or lease of additional electric or 
hybrid vehicles which satisfy amended performance standards and 
represent continuing improvements in state-of-the-art. In conducting 
demonstrations, the Administrator shall consider-— 
"(A) the need and intent of the Congress to stimulate and 
encourage private sector production as well as public knowledge, 
acceptance, and use of electric and hybrid vehicles; and 
"(B) demonstration of varying degrees of vehicle operations, 
,' management, and control for maximum widespread effectiveness 
and exposure to public use. 
"(3) The demonstration period shall extend through the fiscal year 
1986, with purchase or leasing continuing through the fiscal year 1984. 
During the demonstration period the Administrator shall demonstrate 
7,500 to 10,000 electric and hybrid vehicles. No more than 400 vehicles 
may be procured for this purpose during fiscal year 1978. In order to 
allow industry time for advanced planning, the size and nature of 
projected electric and hybrid vehicle leasing and procurements will be 
made public by the administering agency. Publications under the pre-
ceding sentence (each covering a period of two years) shall be released 
annually starting at an appropriate time in the fiscal year 1978. 
"(4) If the Administrator determines on the basis of his annual 
review of the program under this Act that— 
"(A) at least 200 vehicles cannot be added to the project during 
the fiscal year 1978, or 
"(B) at least 600 vehicles cannot b^ added to the project during 
''' 
the fiscal year 1979, or 
"(C) at least 1,700 vehicles cannot be added to the project 
during the fiscal year 1980, or 
;f5 
"(D) at least 7,500 vehicles in the aggregate cannot be added 
to the project during the fiscal years 1981 through 1984, 
he shall immediately forward a detailed explanation thereof to the 
Speaker of the House of Representatives, the President of the Senate, 
the Committee on Science and Technology of the House of Represent-
atives, and the Committee on Energy and Natural Resources of the 
Senate.". 
SEC. 602. Section 8 of the Electric and Hybrid Vehicle Research, 
Development, and Demonstration Act of 1976 (15 U.S.C. 2507) is 
amended by adding at the end thereof the folloAving new subsections: 
"(d) In addition to contracting for the purchase or lease of vehicles 
PUBLIC LAW 95-238—FEB. 25, 1978 
92 STAT. 93 
when conducting the demonstrations established under section 7, the 
Administrator may acquire or secure use of sucli vehicles, or have such 
vehicles acquired or used by others, by making agreements and uti-
lizing various forms of Federal assistance and participation which is 
authorized under the Energy Reorganization Act of 1974 (Public 
Law 93-438) and the Federal Nonnuclear Energy Research and 
Development Act of 1974 (Public Law 93-577). 
"(e) When contracting and otherwise using Federal funds to con-
duct demonstrations under this Act, the Administrator shall seek cost-
sharing with others to the maximum extent practical. During the first 
2 years of demonstration activities the Administrator may enter into 
pi-ocurement or lease contracts for purposes of carrying out demon-
strations under this Act without regard to the provisions of title III 
of the Act of March 3, 1933 (47 Stat. 1520; 41 U.S.C. IQa-lOc).". 
SEC. 603. (a) (1) Section 10(e) of the Electric and Hybrid Vehicle 
Research, Development, and Demonstration Act of 1976 (15 U.S.C. 
2509 (e)) is amended by adding at the end thereof: 
"(3) (A) There is established in the Treasuiy of the United States 
an Electric and Hybrid Vehicle Development Fund (hereinafter in 
this paragraph referred to as the 'fund'), which shall be available to 
the Administrator for carrying out the loan guarantee and principal 
and interest assistance program authorized by this Act, including the 
payment of administrative expenses incurred in connection therewith. 
Moneys in the fund not needed for current operations may, with the 
approval of the Secretary of the Treasury, be invested in bonds or 
other obligations of, or guaranteed by, the United States. 
"(B) There shall be paid into the fund such part of the amounts 
appropriated pursuant to section 16 as the Administrator deems nec-
essary to carry out the purposes of this Act and such amounts as may 
be returned to the United States pursuant to subsection (g) of this 
section, and the amounts in the fund shall remain available until 
expended, except that after the expiration of the 7-year period estab-
lished by subsection (h) of this section such amounts in the fund as 
are not required to secure outstanding guarantee obligations shall be 
paid into the general fund of the Treasury. 
"(C) If at any time the moneys available in the fund are insufficient 
to enable the Administrator to discharge his responsibilities under this 
section, he shall issue to the Secretary of the Treasury notes or other 
obligations in such forms and denominations, bearing such maturities^ 
and subject to such terms and conditions os may be prescribed by the 
Secretary of the Treasury. This borrowing autHority shall be effective 
only to such extent or in such amounts as are specified in appropriation 
Acts. Such authority shall be without fiscal year limitation. Redemp-
tion of such notes or obligations shall be made by the Administrator 
from appropriations or other moneys available under this Act. Such 
notes or other obligations shall bear interest at a rate determined by 
the Secretary of the Treasury, which shall not be less than a rate 
determined by taking into consideration the average market yield on 
outstanding marketable obligations of the United States of comparable 
maturities during the month preceding the issuance of the notes or 
other obligations. The Secretary of the Treasury shall purchase any 
notes or other obligations issued hereunder and for that purpose he is 
authorized to use as a public debt transaction the proceeds from the 
sale of any securities issued under the Second Liberty Bond Act, as 
amended, and the purposes for which securities may be issued under 
that Act are extended to include any purchase of such notes or obliga-
tions. The Secretary of the Treasury may at any time sell any of the 
42 u s e 5801 
note. 
42 use 5901 
note. 
Loan Guarantee!). 
Electric and 
Hybrid Vehicle 
Development 
Fund. 
Establishment. 
Investments. 
15 use 2514. 
Notes or 
obligations, 
issuance to 
Treasury. 
Redemption. 
Interest rate. 
31 u s e 774. 
Sale. 
92 STAT. 94 
PUBLIC LAW 95-238—FEB. 25, 1978 
Annual report to 
Congress. 
15 use 2509. 
Payments. 
Defaults, 
recovery by 
Attorney 
General. 
notes or other obligations acquired by him under this subsection. All 
redemptions, purchases, and sales by the Secretary of the Treasury 
of such notes or other obligations shall be treated as public debt trans-
actions of the United States. 
"(D) Business-type financial reports covering the operations of 
the fund shall be submitted to the Congress by the Administrator an-
nually upon the completion of the appropriate accounting period.". 
(2) Section 10 of such Act is further amended by adding at the 
end thereof the following new subsection: 
"(j) The full faith and credit of the United States is pledged to the 
payment of all obligations incurred under this section.". 
(b) Section 10(g) of such Act (15 U.S.C. 2509(g)) is amended to 
read as follows: 
"(g) (1) With respect to any loan guaranteed pursuant to this sec-
tion, the Administrator is authorized to enter into a contract to pay, 
and to pay, the lender for and on behalf of the borrower the principal 
and interest charges which become due and payable on the unpaid 
balance of such loan if the Administrator finds— 
" (A) that the borrower is unable to meet principal and interest 
charges, that it is in the public interest to permit the borrower 
to continue to pursue the purposes of the project, and that the 
probable net cost to the Federal Government in paying such prin-
cipal will be less than that which would result in the event of a 
default; and 
"(B) that the amount of such principal and interest charges 
which the Administrator is authorized to pay shall be no greater 
than the amount of principal and interest which the borrower is 
obligated to pay under the loan agreement. 
"(2) In the event of any default by a qualified borrower on a guar-
anteed loan, the Administrator is authorized to make payment in 
accordance Avith the guarantee, and the Attorney General shall take 
such action as may be appropriate to recover the amounts of such pay-
ments (including any payment of principal and interest under para-
graph (1)) from such assets of the defaulting borrower as are 
associated with the activity with respect to which the loan was made or 
from any other surety included in the terms of the guarantee.". 
(c) Section 10(h) of such Act (15 U.S.C. 2509(h)) is amended 
by striking out "the 5-year period" and inserting in lieu thereof "the 
7-year period". 
Approved February 25, 1978. 
LEGISLATIVE HISTORY: 
SENATE REPORT No. 95-179 (Comm. on Energy and Natural Resources). 
CONGRESSIONAL RECORD: 
Vol. 123 (1977): June 13, considered and passed Senate. 
December 7, considered and passed House, amended. 
Vol. 124 (1978): Feb. 8, Senate concurred in House amendment.