Energy Security Act
PL 96-294 (S.932), enacted 06/30/1980

PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 611 
Public Law 96-294 
96th Congress 
An Act 
To extend the Defense Production Act of 1950, and for other purposes. 
June 30, 1980 
[S. 932] 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled, That this Act may be Energy Security 
cited as the "Energy Security Act". 
42'^usc 870i 
TITLE I-SYNTHETIC FUEL 
"''^ 
TABLE OF CONTENTS 
Sec. 100. Findings and purpose. 
Part A—Development of Synthetic Fuel Under the Defense Production Act of 1950 
Sec. 101. Short title. 
Sec. 102. Declaration of policy. 
Sec. 103. Restriction on rationing. 
Sec. 104. Expansion of productive capacity and supply. 
Sec. 105. General provisions. 
Sec. 106. Reports. 
Sec. 107. Effective date. 
Part B—United States Synthetic Fuels Corporation 
SUBTITLE A—GENERAL PROVISIONS 
Sec. 111. Short title. 
Sec. 112. General definitions. 
Sec. 113. Effective date. 
SUBTITLE B—ESTABUSHMENT OF CORPORATION 
Sec. 115. Establishment. 
Sec. 116. Board of Directors. 
Sec. 117. Officers and employees. 
Sec. 118. Conflicts of interest and financial disclosure. 
Sec. 119. Delegation. 
Sec. 120. Authorization of administrative expenses. 
Sec. 121. Public access to information. 
Sec. 122. Inspector General. 
Sec. 123. Advisory Committee. 
SUBTITLE C—PRODUCTION GOAL OF THE CORPORATION 
Sec. 125. National synthetic fuel production goal. 
Sec. 126. Production strategy. 
Sec. 127. Solicitation of proposals. 
Sec. 128. Congressional disapproval procedure. 
Sec. 129. Congressional approval procedure. 
SUBTITLE D—FINANCIAL ASSISTANCE 
Sec. 131. Authorization of financial assistance. 
Sec. 132. Loans made by the Corporation. 
Sec. 133. Loan guarantees made by the Corporation. 
Sec. 134. Price guarantees made by the Corporation. 
94 STAT. 612 
PUBLIC LAW 96-294—JUNE 30, 1980 
SUBTITLE D—FINANCIAL ASSISTANCE—Continued 
Sec. 135. Purchase agreements made by the Corporation. 
Sec. 136. Joint ventures by the Corporation. 
Sec. 137. Control of assets. 
Sec. 138. Unlawful contracts. 
Sec. 139. Fees. 
Sec. 140. Disposition of securities. 
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B E—CORPORATION CONSTRUCTION PROJECTS 
Sec. 141. Corporation construction and contractor operation. 
Sec. 142. Limitations on Corporation construction projects. 
Sec. 143. Environmental, land use, and siting matters. 
Sec. 144. Project reports. 
Sec. 145. Financial records. 
SUBTITLE F—CAPITALIZATION AND FINANCE 
Sec. 151. Obligations of the Corporation. 
Sec. 152. Limitations on total amount of obligational authority. 
Sec. 153. Budgetary treatment. 
Sec. 154. Receipts of the Corporation. 
Sec. 155. Tax status. 
SUBTITLE G—UNLAWFUL ACTS, PENALTIES, AND SUITS AGAINST THE CORPORATION 
Sec. 161. False statements. 
Sec. 162. Forgery. 
Sec. 163. Misappropriation of funds and unauthorized activities. 
Sec. 164. Conspiracy. 
Sec. 165. Infringement on name. 
Sec. 166. Additional penalties. 
Sec. 167. Suits by the Attorney General. 
Sec. 168. Civil actions against the Corporation. 
SUBTITLE H—GENERAL PROVISIONS 
Sec. 171. General powers. 
Sec. 172. Coordination with Federal entities. 
Sec. 173. Patents. 
Sec. 174. Small and disadvantaged business utilization. 
Sec. 175. Relationship to other laws. 
Sec. 176. Severability. 
Sec. 177. Fiscal year, audits and reports. 
Sec. 178. Water rights. 
Sec. 179. Western hemisphere projects. 
Sec. 180. Completion guarantee study. 
SUBTTTLE I—DISPOSAL OP ASSETS 
Sec. 181. Tangible assets. 
Sec. 182. Disposal of other assets. 
SUBTTFLE J—TERMINATION OF CORPORATION 
Sec. 191. Date of termination. 
Sec. 192. Termination of the Corporation's affairs. 
Sec. 193. Transfer of powers to E)epartment of the Treasury. 
SUBTTTLE K—DEPARTMENT OF THE TREASURY 
Sec. 195. Authorizations. 
TITLE n-BIOMASS ENERGY AND ALCOHOL FUELS 
Sec. 201. Short title. 
Sec. 202. Findings. 
Sec. 203. Definitions. 
Sec. 204. Funding for subtitles A and B. 
Sec. 205. Coordination with other authorities and programs. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 613 
TITLE II-BIOMASS ENERGY AND ALCOHOL FUELS-Continued 
SUBTITLE A—GENERAL BIOMASS ENERGY DEVELOPMENT 
Sec. 211. Biomass energy development plans. 
Sec. 212. Program responsibility and administration; effect on other programs. 
Sec. 213. Insured loans. 
Sec. 214. Lo£in guarantees. 
Sec. 215. Price guarantees. 
Sec. 216. Purchase agreements. 
Sec. 217. General requirements regarding financial assistance. 
Sec. 218. Reports. 
Sec. 219. Review; reorganization. 
Sec. 220. Establishment of Office of Alcohol Fuels in Department of Energy. 
Sec. 221. Termination. 
SUBTITLE B—MUNICIPAL WASTE BIOMASS ENERGY 
Sec. 231. Municipal waste energy development plan. 
Sec. 232. Construction loans. 
Sec. 233. Guaranteed construction loans. 
Sec. 234. Price support loans and price guarantees. 
Sec. 235. General requirements regarding financial assistance. 
Sec. 236. Financial assistance program administration. 
Sec. 237. Commercialization demonstration program pursuant to Federal Nonnu-
clear Energy Research and Development Act of 1974. 
Sec. 238. Jurisdiction of Department of Energy and Environmental Protection 
Agency. 
Sec. 239. Establishment of Office of Energy From Municipal Waste in Department 
of Energy. 
Sec. 240. Termination. 
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E C—RURAL, AGRICULTURAL, AND FORESTRY BIOMASS ENERGY 
Sec. 251. Model demonstration biomass energy facilities. 
Sec. 252. Biomass energy research and demonstration projects. 
Sec. 253. Applied research regarding energy conservation and biomass energy pro-
duction and use. 
Sec. 254. Forestry energy research. 
Sec. 255. Biomass energy educational and technical assistance. 
Sec. 256. Rural energy extension work. 
Sec. 257. Coordination of research and extension activities. 
Sec. 258. Lending for energy production and conservation projects by production 
credit associations, Federal land banks, and banks for cooperatives. 
Sec. 259. Agricultural conservation program; energy conservation cost sharing. 
Sec. 260. Production of commodities on se^aside acreage. 
Sec. 261. Utilization of National Forest System in wood energy development 
projects. 
Sec. 262. Forest Service leases and permits. 
SUBTITLE D—MISCELLANEOUS BIOMASS PROVISIONS 
Sec. 271. Use of gasohol in Federal motor vehicles. 
Sec. 272. Motor vehicle alcohol usage study. 
Sec. 273. Natural gas priorities. 
Sec. 274. Standby authority for allocation of alcohol fueL 
TITLE in-ENERGY TARGETS 
Sec. 301. Preparation of energy targets. 
Sec. 302. Congressional consideration. 
Sec. 303. Energy target form. 
Sec. 304. General provisions regarding targets. 
TITLE IV-RENEWABLE ENERGY INITIATIVES 
Sec. 401. Short title. 
Sec. 402. Purpose. 
Sec. 403. Definitions. 
Sec. 404. Coordinated dissemination of information on renewable eneigy resources 
and conservation. 
Sec. 405. Establishment of lifeK^ycle eneigy costs for Federal buildings. 
94 STAT. 614 
PUBLIC LAW 96-294—JUNE 30, 1980 
TITLE IV-RENEWABLE ENERGY INITIATIVES-Contmued 
Sec. 406. Energy self-sufficiency initiatives. 
Sec. 407. Photovoltaic amendments. 
Sec. 408. Small-scale hydropower initiatives. 
Sec. 409. Authorizations of appropriations. 
TITLE V-SOLAR ENERGY AND ENERGY CONSERVATION 
Sec. 501. Short title. 
SUBTITLE A—SOLAR ENERGY AND ENERGY CONSERVATION BANK 
Sec. 502. Short title. 
Sec. 503. Purpose. 
Sec. 604. Definitions. 
Part 1—Establishment and Operation of the Bank 
Sec. 505. Establishment of the Bank. 
Sec. 506. Board of Directors. 
Sec. 507. Officers and personnel. 
Sec. 508. Advisory committees. 
Sec. 509. Provision of financial assistance. 
Sec. 510. Establishing levels of financial assistance. 
Sec. 511. Maximum amounts of financial assistance for residential and commercial 
energy conserving improvements. 
Sec. 512. Maximum amounts of financial assistance for solar energy systems. 
Sec. 513. General conditions on financial assistance for loans. 
Sec. 514. Conditions on financial assistance for residential and commercial energy 
conserving improvements. 
Sec. 515. Conditions on financial assistance for solar energy sjrstems. 
Sec. 516. Limitations on the provision of financial assistance for residential and 
commercial energy conserving improvements. 
Sec. 517. Limitations on the provision of financial assistance for solar energy s}rs-
tems. 
Sec. 518. Promotion. 
Sec. 519. Reports. 
Sec. 520. Rules and regulations. 
Sec. 521. Penalties. 
Sec. 522. Funding. 
Part 2—Secondary Financing 
Sec. 531. Authority of solar energy and energy conservation bank to purchase loans 
and advances of credit for residential energy conserving improvements 
or solar energy systems. 
Sec. 532. Authority of solar energy and energy conservation bank to purchase mort-
gages secured by newly constructed homes with solar energy systems. 
Sec. 533. Repeal. 
Sec. 534. Secondan' financing by Federal Home Loan Mortgage Corporation and by 
Federal National Mortgage Association. 
SUBTITLE B—UTILTTY PROGRAM 
Sec. 541. Definitions. 
Sec. 542. State list of suppliers and contractors—required warranty. 
Sec. 543. State list of financial institutions. 
Sec. 544. Treatment of utility costs. 
Sec. 545. Tax treatment. 
Sec. 546. Supply, installation, and financing by public utilities. 
Sec. 547. Authority to monitor and terminate supply, installation, and financing by 
utilities. 
Sec. 548. Unfair competitive practices. 
Sec. 549. Effective date. 
Sec. 550. Relationship to other laws. 
SUBTITLE C—RESIDENTIAL ENERGY EFFICIENCY PROGRAM 
Sec. 561. Purpose. 
Sec. 562. Amendment to the National Energy Conservation Policy Act. 
Sec. 563. Amendment to the table of contents. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 615 
TITLE V-SOLAR ENERGY AND ENERGY (X)NSERVATION-Continued 
SUBTITLE D—ENERGY CONSERVATION FOR COMMERCIAL BUILDINGS AND MULTIFAMILY 
DWELLINGS 
Sec. 565. Amendment to the National Energy Conservation Policy Act. 
Sec. 566. Amendment to the table of contents. 
SUBTITLE E—WEATHERIZATION PROGRAM 
Sec. 571. Limitations on administrative expenditures. 
Sec. 572. Expenditures for labor. 
Sec. 573. Selection of local agencies. 
Sec. 574, Standards and procedures for the weatherization program. 
Sec. 575. Limitations on expenditures. 
Sec. 576. Authorization of appropriations. 
Sec. 577. Technical amendments. 
SUBTITLE F—ENERGY AUDITOR TRAINING AND C
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Sec. 581. Purpose. 
Sec. 582. Definitions. 
Sec. 583. Grants. 
Sec. 584. Authorization of appropriations. 
SUBTITLE G—INDUSTRIAL ENERGY CONSERVATION 
Sec. 591. Authorization of appropriations. 
SUBTITLE H—COORDINATION OF FEDERAL ENERGY CONSERVATION FACTORS AND DATA 
Sec. 595. Consensus on factors and data for energy conservation standards. 
Sec. 596. Use of factors and data. 
Sec. 597. Report. 
TITLE VI-GEOTHERMAL ENERGY 
Sec. 601. Short title. 
Sec. 602. Findings. 
SUBTITLE A 
Sec. 611. Loans for geothermal reservoir confirmation. 
Sec. 612. Loan size limitation. 
Sec. 613. Loan rate and repayment. 
Sec. 614. Program termination. 
Sec. 615. Regulations. 
Sec. 616. Authorizations. 
SUBTITLE B 
Sec. 621. Reservoir insurance program study. 
Sec. 622. Establishment of program. 
SUBTITLE C 
Sec. 631. Feasibility study loan program. 
SUBTITLE D 
Sec. 641. Amendments to Geothermal Research, Development, and Demonstration 
Act. 
Sec. 642. Use of geothermal energy in Federal facilities. 
Sec. 643. Amendments to Federal Power Act and Public Utility R^^atoiy Policies 
Act. 
Sec. 644. Regulations. 
94 STAT. 616 
PUBLIC LAW 96-294—JUNE 30, 1980 
TITLE Vn-ACro PRECIPITATION PROGRAM AND CARBON DIOXTOE STUDY 
SUBTITLE A—ACID PRECIPITATION 
Sec. 701. Short title. 
Sec. 702. Statement of findings and purpose. 
Sec. 703. Interagency Task Force; comprehensive program. 
Sec. 704. Comprehensive research plan. 
Sec. 705. Implementation of comprehensive plan. 
Sec. 706. Authorization of appropriations. 
SUBTITLE B—CARBON DIOXIDE 
Sec. 711. Study. 
Sec. 712. Authorization of appropriations. 
TITLE 
Vm—STRATEGIC 
PETROLEUM 
RESERVE 
Sec. 801. President required to resume fill operations. 
Sec. 802. Use of crude oil from Elk Hills Reserve. 
Sec. 803. Suspension during emergency situations. 
Sec. 804. Naval petroleum reserves. 
Sec. 805. Allocation to Strategic Petroleum Reserve of lower tier crude oil; use of 
Federal royalty oil. 
FINDINGS AND PURPOSE 
42 use 8701. 
SEC. 100. (a) The Ck)ngress 
finds 
and declares that— 
(1) the achievement of energy security for the United States is 
essential to the health of the national economy, the well-being of 
our citizens, and the maintenance of national security; 
(2) dependence on foreign energy resources can be significantly 
reduced by the production from domestic resources of the equiva-
lent of at least 500,000 barrels of crude oil per day of synthetic 
fuel by 1987 and of at least 2,000,000 barrels of crude oil per day 
of synthetic fuel by 1992; 
(3) attainment of 
synthetic fuel production in the United States 
in a timely manner and in a manner consistent with the 
protection of the environment will require financial coromit-
ments beyond those expected to be forthcoming from nongovern-
mental capital sources and existing government incentives; and 
(4) establishment of an independent Federal entity of limited 
duration which will provide additional financial assistance in 
conjunction with private sources of capital to assist the develop-
ment of domestic nonnuclear energy resources for the production 
of synthetic fuel will facilitate the expeditious achievement of 
synthetic fuel production from domestic resources. 
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D The purposes of this title, and the amendments made by this 
title, are to utilize to the fullest extent the constitutional powers of 
the Congress to improve the Nation's balance of pa^^ents, reduce the 
threat of economic disruption from oil supply interruptions and 
incresise the Nation's security by reducing its dependence upon 
imported oil. 
(2) Congress finds and declares that these purposes can be served 
by— 
(A) demonstrating at the earliest feasible time the practicality 
of commercial production of synthetic fuel fi'om domestic re-
sources emplojdng the widest diversity of feasible technologies; 
(B) fostering the creation of commercial synthetic fuel produc-
tion facilities of diverse types with the aggregate capability to 
produce from domestic resources in an environmentally accept-
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 617 
able manner the equivalent of at least 500,000 barrels of 
crude oil 
per day by 1987 and of at least 2,000,000 barrels of crude oil per 
day by 1992; 
(C) creating the United States Synthetic Fuels Corporation, a 
Federal entity of limited duration formed to provide financial 
assistance to undertake synthetic fuel projects; 
(D) providing for financial assistance to encourage and assure 
the flow of capital funds to those sectors of the national economy 
which are important to the domestic production of synthetic fuel; 
(E) encouraging private capital investment and activities in 
the development of domestic sources of synthetic fuel and to 
foster competition in the development of the Nation's synthetic 
fuel resources; 
(F) encouraging and supplementing and not competing with or 
supplanting private capital investments in the development of 
domestic sources of 
sjoithetic fuel; 
(G) fostering greater energy security and reducing the Nation's 
economic vulnerability to disruptions in imported energy sup-
plies; and 
(H) giving special consideration to the production of sjmthetic 
fuel which has national defense applications and expediting its 
initial development through the Defense Production Act of 1950. ^^ use app. 
Part A—Development of S3mthetic Fuel Under the Defense 
Defense 
Production Act of 1950 
W n ^ m e n t t o f 
1980. 
SHORT TITLE 
SEC. 101. This part may be cited as the "Defense Production Act so use app. 206I 
Amendments of 1980". 
"°^^ 
DECLARATION OF POUCY 
SEC. 102. The second sentence of section 2 of the Defense Produc-
tion Act of 1950 (50 U.S.C. App. 2062) is amended by striking out the 
period at the end thereof and inserting in lieu thereof "or to respond 
to actions occurring outside of the United States which could result in 
the termination or reduction of the availability of strategic and 
critical materials, including energy, and which would adversely 
affect the national defense preparedness of the United States. In 
order to insure the national defense preparedness which is essential 
to national security, it is also necessary and appropriate to assure 
domestic energy supplies for national defense needs.". 
RESTRICTION ON RATIONING 
SEC. 103. Title I of the Defense Production Act of 1950 (50 U.S.C. 
App. 2071 et seq.) is amended by adding at the end thereof the 
following: 
"SEC. 105. Nothing in this Act shall be construed to authorize the so use app. 
President to institute, without the approval of the Congress, a ^^^^ 
program for the rationing of gasoline among classes of end-users. 
"SEC. 106. For purposes of this Act, 'energy' shall be designated as a so^usc app. 
'strategic and critical material' after the date of the enactment of this 
section: Provided, That no provision of this Act shall, by virtue of 
such designation— 
"(1) grant any new direct or indirect authority to the President 
for the mandatory allocation or pricing of any fuel or feedstock 
2076. 
94 STAT. 618 
PUBLIC LAW 96-294—JUNE 30, 1980 
Post, pp. 619,623. 
(including, but not limited to, crude oil, residual fuel oil, any 
refined petroleum product, natural gas, or coal) or electricity or 
any other form of energy; or 
"(2) grant any new direct or indirect authority to the President 
to engage in the production of energy in any manner whatsoever 
(such as oil and gas exploration and development, or any energy 
facility construction), except as expressly provided in sections 
305 and 306 for sjmthetic fuel production.". 
50 u s e app. 
2091-2093. 
Guarantees, 
maximum 
obligations. 
Notification to 
congressional 
committees. 
EXPANSION OF PRODUCTIVE CAPACITY AND SUPPLY 
SEC. 104. (aXD Section 301(a) of the Defense Production Act of 1950 
(50 U.S.C. App. 2091(a)) is amended by inserting "(1)" after "(a)" and 
by striking out "the Department of the Army, the Department of the 
Navy, the Department of the Air Force, the Department of Com-
merce," and inserting in lieu thereof "the Department of Defense, the 
Department of Energy, the Department of 0)mmerce,". 
(2) Section 301(a) of the Defense Production Act of 1950 (50 U.S.C. 
App. 2091(a)) is amended by adding at the end thereof the following: 
"(2) Except as provided in section 305 and section 306, no authority 
contained in sections 301, 302, or 303 may be used in any manner— 
"(A) in the development, production, or distribution of 
synthetic fuel; 
"(B) for any sjoithetic fuel project; 
"(C) to assist any person for the purpose of providing goods or 
services to a S3nithetic fuel project; or 
"(D) to provide any assistance to any person for the purchase of 
sj^thetic fuel.". 
(b) Section 301(e)(1) of the Defense Production Act of 1950 (50 U.S.C. 
App. 2091(e)(1)) is amended— 
(1) by striking out "Except with the approval of the Congress, 
the" and inserting in lieu thereof "(A) Except as provided in 
subparagraph (B), the"; 
(2) by striking out "$20,000,000" and inserting in lieu thereof 
"$38,000,000"; and 
(3) by adding at the end thereof the following: 
"(B) Guarantees which exceed the amount specified in subpara-
graph (A) may be entered into under this section only if the Commit-
tees on Armed Services of the Senate and the House of Representa-
tives have been notified in writing of such proposed obligation and 60 
days of continuous session of 0)ngress have expired following the 
date on which such notice was transmitted to such committees and 
neither House of CJongress has adopted, within such ^0-day period, a 
resolution disapproving such obligation. For purposes of this subpara-
graph, the continuity of a session of Congress is broken only by an 
adjournment of the Congress sine die, and the days on which either 
House is not in session because of an adjournment of more than 3 
days to a day certain are excluded in the computation of such 60-day 
period.". 
(c) The second sentence of section 302 of the Defense Production Act 
of 1950 (50 U.S.C. App. 2092) is amended by striking out "$25,000,000" 
and inserting in lieu thereof "$48,000,000'' 
(d)(1) Section 303(a) of the Defense Production Act of 1950 
(50 U.S.C. App. 2093(a)) is amended by striking out "and metals" 
each place it appears therein and inserting in lieu thereof ", metals, 
and materials". 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 619 
(2) Section 303(b) of the Defense Production Act of 1950 (50 U.S.C. 
App. 20930))) is amended by striking out "September 30,1985" and 
inserting in Ueu thereof "September 30,1995". 
(3) Section 303(g) of the Defense Production Act of 1950 (50 U.S.C. 
App. 2093^)) is amended— 
(A) by striking out "and upon a certification" and all that 
follows through other nationsd emergency,"; and 
(B) by striMng out "such" after "of 
substitutes for". 
(e) Title III of the Defense Production Act of 1950 (50 U.S.C. App. 
2091 et seq.) is amended by adding at the end thereof the following 
new sections: 
"SEC. 305. (aXlXA) Subject to subsection (kXD, in order to encour-
age and expedite the development of S3mthetic fuel for use for 
national defense purposes, the President, utilizing the provisions of 
this Act (other than sections 101(a), 101(b), 301,302,303, and 306), and 
any other applicable provision of law, shall t ^ e immediate action to 
achieve production of synthetic fuel to meet national defense needs. 
"(B) The President shall exercise the authority granted by this 
section— 
"(i) in consultation with the Secretary of Energy; 
"(ii) through the Department of Defense and any other Federal 
department or agency designated by the President; and 
"(iii) consistent with an orderly transition to the separate 
authorities established pursuant to the United States Synthetic 
Fuels Corporation Act of 1980. 
"(2) This section shall not affect the authority of the United States 
Sjoithetic Fuels (Corporation. 
"(bXlXA) To assist in carrying out the objectives of this section, the 
President, subject to subsections (c) and (d), shall— 
"(i) contract for purchases of, or commitments to purchase, 
S3mthetic fuel for Government use for defense needs; 
"(ii) subject to paragraph (3), issue guarantees in accordance 
with the provisions of section 301, except that the provisions of 
section 301(eXlXB) shall not apply with respect to such guaran-
tees; and 
"(iii) subject to paragraph (3), make loans in accordance with 
the provisions of section 302, except that the provisions of section 
302(2) shall not apply with respect to such loans. 
"(2XA) Except as provided in subparagraph (B) assistance author-
ized under this subsection may be provided only to persons who are 
participating in a sjoithetic fuel project. 
"(B) For purposes of fabrication or manufacture of any component 
of a synthetic fuel project, assistance authorized under paragraph 
dXAXii) and paragraph (IXAXiii) may be provided to any fabricator or 
manufacturer of 
such component. 
"(3) The President may not utilize the authority under paragraph 
(1) to provide any loan or guarantee in accordance with the provisions 
of section 301 or section 302 in amounts which exceed the limitations 
established in such sections unless the President submits to the 
Congress notification of the proposed loan or guarantee in the 
manner specified under section 307 and such proposed action is either 
approved or not disapproved by the Congress under such section. For 
purposes of section 307, any proposal pertaining to a proposed loan or 
guarantee, notice of which is transmitted to the Congress under this 
paragraph, shall be considered to be a synthetic fuel action. 
"(cXD Subject to paragraph (2), purchases and commitments to 
purchase imder subsection (b) may be made— 
Synthetic fuel, 
development. 
50 u s e app. 
2095. 
50 u s e app. 
2061, 2071, 
2091-2093, post, 
p. 623. 
Post, p. 633. 
eontracts. 
Loan 
guarantees. 
Proposed loan or 
guarantee, 
notification to 
Congress. 
Post, p. 628. 
94 STAT. 620 
PUBLIC LAW 96-294—JUNE 30, 1980 
"(A) without regard to the limitations of existing law (other 
than the limitations contained in this Act) regarding the procure-
ment of goods or services by the Government; and 
50 use app. 
"(B) subject to section 717(a), for such quantities, on such terms 
and conditions (including advance payments subject to para-
graph (3)), and for such periods as the President deems necessary. 
"(2) Purchases or commitments to purchase under subsection (b) 
involving higher than established ceiling prices (or if there are no 
established ceiling prices, currently prevailing market prices as 
determined by the Secretary of Energy) shall not be made unless it is 
determined that supplies of sjnithetic fuel could not be effectively 
increased at lower prices or on terms more favorable to the Govern-
ment, or that such commitments or purchases are necessary to assure 
the availability to the United States of supplies overseas for use for 
national defense purposes. 
"(3) Advance payments may not be made under this section unless 
construction has begun on the synthetic fuel project involved or the 
President determines that all conditions precedent to construction 
have been met. 
Competitive 
"(dXD Except as provided in paragraph (2), any purchase of or 
° 
commitment to purchase synthetic fuel under subsection (b) shall be 
made by solicitation of sealed competitive bids. 
"(2) In any case in which no such bids are submitted to the 
President or the President determines that no such bids which have 
been submitted to the President are acceptable, the President may 
negotiate contracts for such purchases and commitments to 
purchase. 
"(3) Any contract for such purchases or commitments to purcheise 
shall provide that the President has the right to refuse delivery of the 
synthetic fuel involved and to pay the person involved an amount 
equal to the amount by which the price for such synthetic fuel, as 
specified in the contract involved, exceeds the market price, as 
determined by the Secretary of Energy, for such S3aithetic fuel on the 
delivery date specified in such contract. 
"(4XA)(i) With respect to any person, including any other person 
who is substantially controlled by such person (as determined by the 
Secretary of Energy), the President, subject to subparagraph (AXii), 
may not award contracts for the purchase of or commitment to 
purchase more than 100,000 barrels per day crude oil equivalent of 
synthetic fuel. 
"(ii) With respect to any person, including any other person who is 
substantially controlled by such person (as determined by the Secre-
tary of Energy), the President may not award any contract for the 
purchase or commitment to purchase of more than 75,000 barrels per 
day crude oil equivalent of sjmthetic fuel unless the President 
submits to the Congress notification of such proposed contract or 
commitment in the manner specified under section 307 and such 
proposed action is either approved or not disapproved by the Congress 
Post, p. 628. 
under such section. For purposes of section 307, any proposal pertain-
ing to such a proposed contract or commitment, notice of which is 
transmitted to the Congress under this subparagraph, shall be 
considered to be a S3nithetic fuel action. 
"(B) A contract for the purcheise of or commitment to purchase 
synthetic fuel may be entered into only for synthetic fuel which is 
produced in a synthetic fuel project which is located in the United 
States. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 621 
"(C) Each contract entered into under this section for the purchase Review. 
of or commitment to purchase S5nnthetic fuel shall provide that all 
parties to such contract agree to review and to possibly renegotiate 
such contract within 10 years after the date of the initial production 
at the sjrnthetic fuel project involved. At the time of such review, the 
President shall determine the need for continued financisd assistance 
pursuant to such contract. 
"(5) In any case in which the President, under the provisions of this 
section, accepts delivery of any synthetic fuel, such synthetic fuel 
may be used by an appropriate Federal agency. Such Federal agency 
shall pay for such synthetic fuel the prevailing market price for the 
product which such synthetic fuel is replacing, as determined by the 
Secretary of Energy, from sums appropriated to such Federal agency 
for the purchase of fuel, and the President shall pay, from sums 
appropriated for such purpose pursuant to the authorizations con-
tained in sections 711(aX2) and 711(aX3), an amount equal to the Post, p. 632. 
amount by which the contract price for such synthetic fuel as 
specified in the contract involved exceeds such prevailing market 
price. 
"(6) In considering any proposed contract under this section, the 
President shall take into account the socioeconomic impacts on 
communities which would be affected by any new or expanded 
facilities required for the production of the sjmthetic fuel under such 
contract. 
"(e) The procurement power granted to the President under this 
section shall include the power to transport and store and have 
processed and refined any product procured under this section. 
"(f)(1) No authority contained in this section may be exercised to 
acquire any amount of sjmthetic fuel unless the President determines 
that such synthetic fuel is needed to meet national defense needs and 
that it is not anticipated that such sjmthetic fuel will be resold by the 
Government. 
"(2) In any case in which S5nithetic fuel is acquired by the Govern-
ment under this section, such synthetic fuel is no longer needed to 
meet national defense needs, and such synthetic fuel is not accepted 
by a Federal agency pursuant to subsection (dX5), the President shall 
offer such synthetic fuel to the Secretary of Energy for purposes of 
meeting the storage requirements of the Strategic Petroleum 
Reserve. 
"(3) Any synthetic fuel which is acquired by the Government under 
this section and which is not used by the Government or accepted by 
the Secretary of Energy pursuant to paragraph (2) shall be sold in 
accordance with applicable Federal law. 
"(gXD Any contract under this section including any amendment 
or other modification of such contract, shall, subject to the availabil-
ity of unencumbered appropriations in advance, specify in dollars the 
maximum liability of the Federal Government under such contract 
as determined in accordance with paragraph (2). 
"(2) For the purpose of determining the maximum liability under 
any contract under paragraph (1)— 
"(A) loans shall be valued at the initial face value of the loan; 
"(B) guarantees shall be valued at the initial face value of such 
guarantee (including any amount of interest which is guaranteed 
under such guarantee); 
"(C) purchase agreements shall be valued as of the date of each 
such contract based upon the President's estimate of the maxi-
mum liability under such contract; and 
Contracts, 
maximum 
liability. 
94 STAT. 622 
PUBLIC LAW 96-294—JUNE 30, 1980 
"(D) any increase in the liability of the Government pursuant 
to any amendment or other modification to a contract for a loan, 
guarantee, or purchase agreement shall be valued in accordance 
with the applicable preceding subparagraph. 
"(3) If more than one form of assistance is provided under this 
section to any synthetic fuel project, then the maximum liability 
under such contract for purposes of paragraphs (1) and (2) shall be 
valued at the maximum potential exposure on such project at any 
time during the life of such project. 
"(4) Any such contract shall be accompanied by a certification by 
the Director of the Office of Management and Budget that the 
necessary appropriations have been made for the purpose of such 
contract and are available. The remaining available and unencum-
bered appropriations shall equal the total aggregate appropriations 
less the aggregate maximum liability of the Federal Government 
under all contracts pursuant to this section. 
"(5) Any commitment made under this section which is nullified or 
voided for any reason shall not be considered in the aggregate 
maximum liability for the purposes of paragraph (4). 
"(h) For purposes of section 102(2)(C) of the National Environmen-
tal Policy Act of 1969 (42 U.S.C. 4332(2)(C)), no action in providing any 
loan, guarantee, or purchase agreement under this section shall be 
deemed to be a major Federal action significantly affecting the 
quality of the human environment. 
"(i) All laborers and mechanics employed for the construction, 
repair, or alteration of any synthetic fuel project funded, in whole or 
in part, by a guarantee or loan entered into pursuant to this section 
shall be paid wages at rates not less than those prevailing on projects 
of a similar character in the locality as determined by the Secretary 
of Labor in accordance with the Act entitled "An Act relating to the 
rate of wages for laborers and mechanics employed on public build-
ings of the United States and the District of Columbia by contractors 
and subcontractors, and for other purposes", approved March 3,1931 
(40 U.S.C. 276a et seq.) and commonly known as the Davis-Bacon Act. 
Guaranteeing agencies shall not extend guarantees and the Presi-
dent shall not make loans for the construction, repair or alteration of 
any synthetic fuel project unless a certification is provided to the 
agency or the President, as the case may be, prior to the commence-
ment of construction or at the time of filing an application for a loan 
or guarantee, if construction has already commenced, that these 
labor standards will be maintained at the synthetic fuel project. With 
respect to the labor standards specified in this subsection, the 
Secretary of Labor shall have the authority and functions set forth in 
5 use app. 
Reorganization Plan Numbered 14 of 1950 and section 276(c) of title 
40. 
"(j)(l) Nothing in this section shall— 
"(A) affect the jurisdiction of the States and the United States 
over waters of any stream or over any ground water resource; 
"(B) alter, amend, repeal, interpret, modify, or be in conflict 
with any interstate compact made by any States; or 
"(C) confer upon any non-Federal entity the ability to exercise 
any Federal right to the waters of any stream or to any ground 
water resource. 
"(2) No synthetic fuel project constructed pursuant to the authori-
ties of this section shall be considered to be a Federal project for 
purposes of the application for or assignment of water rights. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 623 
"(k)(l) Subject to paragraph (2), the authority of the President to 
enter into any new contract or commitment under this section shall 
cease to be effective on the date on which the President determines 
that the United States Synthetic Fuels Ck)rporation is established and 
fully operational consistent with the provisions of the United States 
Synthetic Fuels Corporation Act of 1980. 
Post, p. 633. 
"(2) Contracts entered into under this section before the date 
specified in paragraph (1) may be renewed and extended by the 
President after the date specified in paragraph (1) but only to the 
extent that Congress has specifically appropriated funds for such 
renewals and extensions. 
"SEC. 306. (aXD At any time after the date of the enactment of this 50 use app. 
section, the President may, subject to paragraph (2), invoke the ^'^^^ 
authorities provided under this section upon making all the following 
determinations and transmitting a report to the Congress regarding 
such determinations: 
"(A) a national energy supply shortage has resulted or is likely 
to result in a shortfall of petroleum supplies in the United States, 
and such shortage is expected to persist for a period of time 
sufficient to seriously threaten the adequacy of defense fuel 
supplies essential to direct defense and direct defense industrial 
base programs; 
"(B) the continued adequacy of such supplies cannot be assured 
and requires expedited production of S3mthetic fuel to provide 
such defense fuel supplies; 
"(C) the expedited production of synthetic fuel to provide such 
defense fuel supplies will not be accomplished in a timely 
manner by the United States Synthetic Fuels Corporation; and 
"(D) the exercise of the authorities provided under subsection 
(c) is necessary to provide for the expedited production of 
synthetic fuel to provide such defense fuel supplies. 
"(2)(A) Any transmittal under paragraph (1) shall contain a deter-
mination by the President regarding the extent of the anticipated 
shortage of petroleum supplies. If the President determines that such 
shortage is greater than 25 percent, the authorities invoked by the 
President under this section shall be effective on the date on which 
the report required under p2u*agraph (1) is transmitted to the 
Congress. 
"(B) If the President determines that such shortage is less than 25 
percent, the transmittal under paragraph (1) shall be made in 
accordance with section 307 and the authorities under this section Post, p. 628. 
shall be effective only as provided under such section. For purposes of 
section 307, any determination to invoke authorities under this 
section, notice of which is transmitted to the Congress under this 
subsection, shall be considered to be a synthetic fuel action. 
"(3) No court shall have the authority to review any determination 
made by the President under this subsection. 
"Ot)XlXA) Subject to the requirements of subsection (a), in order to 
encourage and expedite the development of synthetic fuel for use for 
national defense purposes, the President, utilizing the provisions of 
this Act (other than sections 101(a), 1010)), 301,302,303, and 305), and so use app. 
any other applicable provision of law, shall take immediate action to 207i, 2091-2093, 
achieve production of synthetic fuel to meet national defense needs. ""^^' ^ 
"(B) TTie President shall exercise the authority granted by this 
section— 
"(i) in consultation with the Secretary of 
Energy; and 
79-194 
O—81—pt. 1 
43 : QL3 
94 STAT. 624 
PUBLIC LAW 96-294—JUNE 30, 1980 
50 u s e app. 
2091. 
50 u s e app. 
2092. 
Synthetic fuel 
projects, 
Government 
ownership. 
"(ii) through the Department of Defense and any other Federal 
department or agency designated by the President. 
"(2) This section shall not affect the authority of the United States 
S3mthetic Fuels Corporation. 
"(cXlXA) To assist in carrying out the objectives of this section, the 
President, subject to subsections (d) and (e), shall— 
"(i) contract for purchases of or commitments to purchase 
synthetic fuel for Government use for defense needs; 
"(ii) subject to paragraph (4), issue guarantees in accordance 
with the provisions of section 301, except that the provisions of 
section 301(eXlXB) shall not apply with respect to such 
guarantees; 
"(iii) subject to paragraph (4), make loans in accordance with 
the provisions of section 302, except that the provisions of section 
302(2) shall not apply with respect to such loans; 
"(iv) have the authority to require fuel suppliers to provide 
sjnithetic fuel in any case in which the President deems it 
practicable and necessary to meet the national defense needs of 
the United States. Nothing in this paragraph shall be intended to 
provide authority for the President to require fuel suppliers to 
produce synthetic fuel if such suppliers are not already produc-
ing synthetic fuel or do not intend to produce synthetic fuel; 
"(v) have the authority to install additional equipment, facili-
ties, processes, or improvements to plants, factories, and other 
industrial facilities owned by the Government, and to install 
Government-owned equipment in plants, factories, and other 
industrial facilities owned by private persons; and 
"(vi) have the authority to undertake Government synthetic 
fuel projects in accordance with the provisions of paragraph (2). 
"(BXi) Except as provided in clause (ii), assistance authorized under 
this subsection may be provided only to persons who are participating 
in a synthetic fuel project. 
"(ii) For purposes of fabrication or manufacture of any component 
of a synthetic fuel project, assistance authorized under paragraph 
(IXAXii) and paragraph (IXAXiii) may be provided to any fabricator or 
manufacturer of such component. 
"(2XA) The Government, acting through the President, is author-
ized to own Government sjmthetic fuel projects. In any case in which 
the CSrovernment owns a Government sjmthetic fuel project, the 
Government shall contract for the construction and operation of such 
project. 
"(B) The authority of the Government pursuant to subparagraph 
(A) to own and contract for the construction and operation of any 
Government sjnithetic fuel project shall include, among other things, 
the authority to— 
"(i) subject to subparagraph (C), take delivery of synthetic fuel 
from such project; and 
"(ii) transport and store and have processed and refined such 
sjmthetic fuel. 
"(C) Any synthetic fuel which the Government takes delivery of 
from a Government S3rnthetic fuel project shsQl be disposed of in 
accordance with subsection (g). 
"(D) To the maximum extent feasible, the President shall utilize 
the private sector for the activities associated with this paragraph. 
"(3XA) Except as provided in subparagraph (B), any contract for the 
construction or operation of a Government S5nithetic fuel project 
shall be made by solicitation of 
sealed competitive bids. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 625 
"(B) In any case in which no such bids are submitted to the 
President or the President determines that no such bids have been 
submitted which are acceptable to the President, the President may 
negotiate contracts for such construction and operation. 
"(4) The President may not utilize the authority under paragraph 
(1) to provide any loan or guarantee in accordance with the provisions 
of section 301 or section 302 in amounts which exceed the limitations 
9^QY^£QP' 
established in such sections unless the President submits to the 
' 
Congress notification of the proposed loan or guarantee in the 
manner specified under section 307 and such proposed action is either 
Post, p. 628. 
approved or not disapproved by the Congress under such section. For 
purposes of section 307, any proposal pertaining to a proposed loan or 
guarantee, notice of which is transmitted to the Congress under this 
paragraph, shall be considered to be a synthetic fuel action. 
"(5) Before the President may utilize any specific authority 
described under paragraph (1), the President shall transmit to the 
Congress a statement containing a certification that the determina-
tions made by the President in the transmittal to the Congress under 
subsection (aXD are still valid at the time of the transmittal of such 
certification. 
"(6)(A) No authority contained in paragraphs (l)(A)(i) through 
(l)(A)(iv) may be utilized by the President unless the use of such 
authority has been authorized by the Congress in an Act hereinafter 
enacted by the Congress. 
"(B) The President may not utilize any authority under paragraph 
(l)(A)(v) or paragraph (l)(A)(vi) unless the proposed exercise of 
authority has been specifically authorized on a project-by-project 
basis in an Act hereinafter enacted by the Congress and funds have 
been specifically appropriated by the Congress for purposes of exer-
cising such authority. 
'Xd)(l) Subject to paragraph (2), purchases and commitments to 
purchase under subsection (c) may be made— 
"(A) without regard to the limitations of existing law (other 
than those limitations contained in this Act) regarding the 
procurement of goods or services by the Government; and 
"(B) subject to section 717(a), for such quantities, on such terms 
50 USC app. 
and conditions (including advance payments subject to para- ^^^^• 
graph (3)), and for such periods as the President deems necessary. 
"(2) Purchases or commitments to purchase under subsection (c) 
involving higher than established ceiling prices (or if there are no 
established ceiling prices, currently prevailing market prices as 
determined by the Secretary of Energy) shall not be made unless it is 
determined that supplies of synthetic fuel could not be effectively 
increased at lower prices or on terms more favorable to the Govern-
ment, or that such commitments or purchases are necessary to assure 
the availability to the United States of supplies overseas for use for 
national defense purposes. 
"(3) Advance payments may not be made under this section unless 
construction has begun on the synthetic fuel project involved or the 
President determines that all conditions precedent to construction 
have been met. 
"(eXD Except as provided in paragraph (2), any purchase or 
commitment to purchase synthetic fuel under subsection (c) shall be 
made by solicitation of sealed competitive bids. 
"(2) In any case in which no such bids are submitted to the 
President or the President determines that no such bids which have 
been submitted to the President are acceptable, the President may 
94 STAT. 626 
PUBLIC LAW 96-294—JUNE 30, 1980 
negotiate contracts for such purchases and commitments to 
purchase. 
"(3) Any contract for such purchases or commitments to purchase 
shall provide that the President has the right to refuse delivery of the 
synthetic fuel involved and to pay the person involved an amount 
equal to the amount by which the price for such synthetic fuel, as 
specified in the contract involved, exceeds the market price, as 
determined by the Secretary of Energy, for such synthetic fuel on the 
delivery date specified in such contract. 
"(4XA) With respect to any person, including any other person who 
is substantially controlled by such person (as determined by the 
Secretary of Energy), the President, subject to subparagraph (B), may 
not award contracts for the purchase of or commitment to purchase 
more than 100,000 barrels per day crude oil equivalent of synthetic 
fuel. 
"(B) With respect to any person, including any other person who is 
substantially controlled by such person (as determined by the Secre-
tary of Energy), the President may not award any contract for the 
purchase of or commitment to purchase more than 75,000 barrels per 
day crude oil equivalent of synthetic fuel unless the President 
submits to the Congress notification of such proposed contract or 
Post, p. 628. 
commitment in the manner specified under section 307 and such 
proposed action is either approved or not disapproved by the Congress 
under such section. For purposes of section 307, any proposal pertain-
ing to such a proposed contract or commitment, notice of which is 
transmitted to the Congress under this subparagraph, shall be 
considered to be a synthetic fuel action. 
"(5) A contract for the purchase of or commitment to purchase 
synthetic fuel may be entered into only for synthetic fuel which is 
produced in a synthetic fuel project which is located in the United 
States. 
"(6) Each contract entered into under this section for the purchase 
of or commitment to purchase synthetic fuel shall provide that all 
parties to such contract agree to review and to possibly renegotiate 
such contract within 10 years after the date of the initial production 
at the synthetic fuel project involved. At the time of such review, the 
President shall determine the need for continued financial assistance 
pursuant to such contract. 
"(7) In any case in which the President, under the provisions of this 
section, accepts delivery of any synthetic fuel, such synthetic fuel 
may be used by an appropriate Federal agency. Such Federal agency 
shall pay for such synthetic fuel the prevailing market price for the 
product which such synthetic fuel is replacing, as determined by the 
Secretary of Energy, from sums appropriated to such Federal agency 
for the purchase of fuel, and the President shall pay, from sums 
appropriated for such purpose, an amount equal to the amount by 
which the contract price for such synthetic fuel as specified in the 
contract involved exceeds such prevailing market price. 
"(8) In considering any proposed contract under this section, the 
President shall take into account the socioeconomic impacts on 
communities which would be affected by any new or expanded 
facilities required for the production of the synthetic fuel under such 
contract. 
"(f) The procurement power granted to the President under this 
section shall include the power to transport and store and have 
processed and refined any product procured under this section. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 627 
"(g)(1) No authority contained in this section may be exercised to 
acquire any amount of synthetic fuel unless the President determines 
that such synthetic fuel is needed to meet national defense needs and 
that it is not anticipated that such synthetic fuel will be resold by the 
Government. 
"(2) In any case in which synthetic fuel is acquired by the Govern-
ment under this section, such synthetic fuel is no longer needed to 
meet national defense needs, and such synthetic fuel is not accepted 
by a Federal agency pursuant to subsection (eX?), the President shall 
offer such synthetic fuel to the Secretary of Energy for purposes of 
meeting the storage requirements of the Strategic Petroleum 
Reserve. 
"(3) Any synthetic fuel which is acquired by the Government under 
this section and which is not used by the Government or accepted by 
the Secretary of Energy pursuant to paragraph (2), shall be sold in 
accordance with applicable Federal law. 
"(h)(1) Any contract under this section, including any amendment 
or other modification of such contract, shall, subject to the availabil-
ity of unencumbered appropriations in advance, specify in dollars the 
maximum liability of the Federal Government under such contract 
as determined in accordance with paragraph (2). 
"(2) For the purpose of determining the maximum liability under Contracts, 
any contract under paragraph (1)— 
i^lyn^"^ 
"(A) loans shall be valued at the initial face value of the loan; 
^^ ^ ^ y-
"(B) guarantees shall be valued at the initial face value of such 
guarantee (including any amount of interest which is guaranteed 
under such guarantee); 
"(C) purchase agreements shall be valued as of the date of each 
such contract based upon the President's estimate of the maxi-
mum liability under such contract; 
"(D) contracts for activities under subsection (cXlXA)(v) shall 
be valued at the initial face value of such contract; 
"(E) Government synthetic fuel projects pursuant to subsec-
tion (cXl)(AXvi) shall be valued at the current estimated cost to 
the Government, as determined annually by the President; and 
"(F) any increase in the liability of the Government pursuant 
to any amendment or other modification to a contract for a loan, 
guarantee, purchase agreement, contract for activities under 
subsection (cXl)(A)(v), or Government synthetic fuel project pur-
suant to subsection (cXlXAXvi) shall be valued in accordance 
with the applicable preceding subparagraph. 
"(3) If more than one form of assistance is provided under this 
section to any synthetic fuel project then the maximum liability 
under such contract for purposes of paragraphs (1) and (2) shall be 
valued at the maximum potential exposure on such project at any 
time during the life of such project. 
"(4) Any such contract shall be accompanied by a certification by 
the Director of the Office of Management and Budget that the 
necessary appropriations have been made for the purpose of such 
contract and are available. The remaining available and unencum-
bered appropriations shall equal the total aggregate appropriations 
less the aggregate maximum liability of the Federal Government 
under all contracts pursuant to this section. 
"(5) Any commitment made under this section which is nullified or 
voided for any reason shall not be considered in the aggregate 
maximum liability for the purposes of paragraph (4). 
94 STAT. 628 
PUBLIC LAW 96-294—JUNE 30, 1980 
Wages. 
5 u s e app. 
"Synthetic fuel 
action." 
50 u s e app. 
2097. 
Transmittal to 
Congress. 
"(i) For purposes of section 102(2XC) of the National Environmental 
Policy Act of 1969 (42 U.S.C. 4332(2)(C)), no action in providing any 
loan, guarantee, or purchase agreement under this section, shall be 
deemed to be a major Federal action significantly affecting the 
quality of the human environment. 
"(j) All laborers and mechanics employed for the construction, 
repair, or alteration of any synthetic fuel project funded, in whole or 
in part, by a guarantee or loan entered into pursuant to this section 
shall be paid wages at rates not less than those prevailing on projects 
of a similar character in the locality as determined by the Secretary 
of Labor in accordance with the Act entitled "An Act relating to the 
rate of wages for laborers and mechanics employed on public build-
ings of the United States and the District of Columbia by contractors 
and subcontractors and for other purposes", approved March 3,1931 
(40 U.S.C. 276a et seq.) and commonly known as the Davis-Bacon Act. 
Guaranteeing agencies shall not extend guarantees and the Presi-
dent shall not make loans for the construction, repair or alteration of 
any synthetic fuel project unless a certification is provided to the 
agency or the President, as the case may be, prior to the commence-
ment of construction or at the time of filing an application for a loan 
or guarantee, if construction has already commenced, that these 
labor standards will be maintained at the synthetic fuel project. With 
respect to the labor standards specified in this subsection, the 
Secretary of Labor shall have the authority and functions set forth in 
Reorganization Plan Numbered 14 of 1950 and section 276(c) of title 
40. 
"(kXD Nothing in this section shall— 
"(A) affect the jurisdiction of the States and the United States 
over waters of any stream or over any ground water resource; 
"(B) alter, amend, repeal, interpret, modify, or be in conflict 
with any interstate compact made by any States; or 
"(C) confer upon any non-Federal entity the ability to exercise 
any Federal right to the waters of any stream or to any ground 
water resource. 
"(2) No synthetic fuel project constructed pursuant to the authori-
ties of this section shall be considered to be a Federal project for 
purposes of the application for or assignment of water righte. 
"(1) Renewals and extensions of contracts entered into under this 
section shall be made only to the extent that Congress has specifically 
appropriated funds for such renewals and extensions, unless the 
President certifies that the determinations under section 306(a)(1) 
remain in effect for purposes of the use of such authority. 
"SEC. 307. (a) For purposes of this section, the term 'sjnithetic fuel 
action' means any matter required to be transmitted, or submitted to 
the Congress in accordance with the procedures of this section. 
"(b) The President shall transmit any sjnithetic fuel action (bearing 
an identification number) to both Houses of the Congress on the same 
day. If both Houses are not in session on the day on which any 
synthetic fuel action is received by the appropriate officers of each 
House, such S3nithetic fuel action shall be deemed to have been 
received on the first succeeding day on which both Houses are in 
session. 
"(cXD Except as provided in paragraph (2) and in subsection (e), if a 
synthetic fuel action is transmitted to both Houses of Congress, such 
synthetic fuel action shall take effect at the end of the first period of 
30 calendar days of continuous session of the Congress after the date 
on which such synthetic fuel action is received by such Houses, unless 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 629 
between the date on which such synthetic fuel action is received and 
the end of such 30 calendar day period, either House passes a 
resolution stating in substance that such House does not favor such 
action. 
"(2) A synthetic fuel action described in paragraph (1) may take 
effect prior to the expiration of the 30-calendar-day period after the 
date on which such action is received, if each House of Congress 
approves a resolution affirmatively stating in substance that such 
House does not object to such s)mthetic fuel action. Except as 
provided in subsection (e), in any such case, such synthetic fuel action 
shall take effect on the date on which such resolution is approved. 
"(d) For purposes of subsection (c)— 
"(1) continuity of session is broken only by an adjournment of 
the Congress sine die; and 
"(2) the days on which either House is not in session because of 
an adjournment of more than 3 days to a day certain are 
excluded in the computation of the 30-calendar-day period. 
"(e) Under provisions contained in a synthetic fuel action, any 
provision of such synthetic fuel action may take effect on a date later 
than the date on which such synthetic fuel action otherwise would 
take effect, if such action is not disapproved, pursuant to the 
provisions of this section. 
"(f) This section is enacted by the Congress— 
"(1) as an exercise of the rulemaking power of the Senate and 
the House of Representatives, respectively, and as such it is 
deemed a part of the rules of each House, respectively, but 
applicable only with respect to the procedure to be followed in 
that House in the case of resolutions described by subsection (g) 
of this section, and it supersedes other rules only to the extent 
that it is inconsistent with such rules; and 
"(2) with full recognition of the constitutional right of either 
House to change the rules (so far as they relate to the procedure 
of that House) at any time, in the same manner and to the same 
extent as in the case of any other rule of the House. 
"(g)(1) For purposes of subsection (b), the term 'resolution' means a 
"Resolution." 
resolution of either House of the Congress described in paragraph (2) 
or paragraph (3). 
"(2) A resolution the matter after the resolving clause of which is as 
follows: 'That the 
does not object to the synthetic fuel action 
numbered 
received by the Congress on 
, 19 
', the 
first blank space therein being filled with the name of the resolving 
House and the other blank spaces being appropriately filled. Any 
such resolution may only contain a reference to one synthetic fuel 
action. 
"(3) A resolution the matter after the resolving clause of which is as 
follows: 'That the 
does not favor the synthetic fuel action 
numbered 
received by the Congress on 
, 19 
', the first 
blank space therein being filled with the name of the resolving House 
and the other blank spaces therein being appropriately filled. Any 
such resolution may only contain a reference to one synthetic fuel 
action. 
"(4) A resolution once introduced with respect to a synthetic fuel 
action shall immediately be referred to a committee (and all resolu-
tions with respect to the same synthetic fuel action shall be referred 
to the same committee) by the President of the Senate or the Speaker 
of the House of Representatives, as the case may be. 
94 STAT. 630 
PUBLIC LAW 96-294—JUNE 30, 1980 
Debate, time 
limitation. 
Appeals. 
"(5)(A) If the committee to which a resolution with respect to a 
synthetic fuel action has been referred has not reported it at the end 
of 20 calendar days after it was received by the House involved, it 
shall be in order to move either to discharge the committee from 
further consideration of such resolution or to discharge the commit-
tee from further consideration of any other resolution with respect to 
such sjoithetic fuel action which has been referred to the committee. 
"(B) A motion to discharge may be made only by an individual 
favoring the resolution, shall be highly privileged (except that it may 
not be made after the committee has reported a resolution with 
respect to the same S3nithetic fuel action), and debate thereon shall be 
limited to not more than one hour, to be divided equally between 
those favoring and those opposing the resolution. An amendment to 
the motion shall not be in order, and it shall not be in order to move to 
reconsider the vote by which the motion was agreed to or disagreed 
to. 
"(C) If the motion to discharge is agreed to or disagreed to, the 
motion may not be renewed, nor may another motion to discharge the 
committee be made with respect to any other resolution v/ith respect 
to the same sjmthetic fuel action. 
"(6XA) When the committee has reported (or has been discharged 
from further consideration of) a resolution, it shall be at any time 
thereafter in order (even though a previous motion to the same effect 
has been disagreed to) to move to proceed to the consideration of the 
resolution. The motion shall be highly privileged and shall not be 
debatable. An amendment to the motion shall not be in order, and it 
shall not be in order to move to reconsider the vote by which the 
motion was agreed to or disagreed to. 
"(B) Debate on the resolution referred to in subparagraph (A) of 
this paragraph shall be limited to not more than 5 hours, which shall 
be divided equally between those favoring and those opposing such 
resolution. A motion further to limit debate shall not be debatable. 
An amendment to, or motion to recommit, the resolution shall not be 
in order, and it shall not be in order to move to reconsider the vote by 
which such resolution was agreed to or disagreed to, except that it 
shall be in order— 
"(i) to offer an amendment in the nature of a substitute, 
consisting of the text of the resolution described in paragraph (2) 
with respect to a synthetic fuel action, for a resolution described 
in paragraph (3) with respect to the same sjmthetic fuel action; or 
"(ii) to offer an amendment in the nature of a substitute, 
consisting of the text of a resolution described in paragraph (3) 
with respect to a synthetic fuel action, for a resolution described 
in paragraph (2) with respect to the same such synthetic fuel 
action. 
"(C) The amendments described in clauses (i) and (ii) of subpara-
graph (B) shall not be amendable and shall be debatable under the 5-
minute rule in the House of Representatives by the offering of pro 
forma amendments. 
"(7XA) Motions to postpone made with respect to the discharge 
from committee or the consideration of a resolution and motions to 
proceed to the consideration of other business, shall be decided 
without debate. 
"(B) Appeals from the decision of the Chair relating to the applica-
tion of the rules of the Senate or the House of Representatives, as the 
case may be, to the procedure relating to a resolution shall be decided 
without debate. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 631 
"(8) Notwithstanding any of the provisions of this subsection, if a 
House has approved a resolution with respect to a S3mthetic fuel 
action, then a motion to recommit shall not be in order nor shall it be 
in order to consider in that House any other resolution with respect 
to the same synthetic fuel action. 
"SEC. 308. (a) For purposes of this Act, the term 'Government 
synthetic fuel project' means a sjmthetic fuel project undertaken in 
accordance with the provisions of section 306(c). 
"Ot))(l)(A) For purposes of this Act, the term 's3nithetic fuel' means 
any solid, liquid, or gas, or combination thereof, which can be used as 
a substitute for petroleum or natural gas (or any derivatives thereof, 
including chemical feedstocks) and which is produced by chemical or 
physical transformation (other than washing, coking, or desulfuriz-
ing) of domestic sources o
f
— 
"(i) coal, including lignite and peat; 
"(ii) shale; 
"(iii) tar sands, including those heavy oil resources where— 
"(I) the cost and the technical and economic risks make 
extraction and processing of a heavy oil resource uneconomi-
cal under applicable pricing and tax policies; and 
"(II) the costs and risks are comparable to those associated 
with shale, coal, and tar sand resources (other than heavy 
oil) qualif5ring for assistance under section 305 or section 306; 
and 
"(iv) water, as a source of hydrogen only through electrolysis. 
"(B) Such term includes mixtures of coal and combustible liquids, 
including petroleum. 
"(C) Such term does not include solids, liquids, or gases, or combina-
tions thereof, derived from biomass, which includes timber, animal 
and timber waste, municipal and industrial waste, sewage, sludge, 
oceanic and terrestrial plants, and other organic matter. 
"(2)(A) For purposes of this Act, the term 'sjrnthetic fuel project' 
means any facility using an integrated process or processes at a 
specific geographic location in the United States for the purpose of 
commercial production of synthetic fuel. The project may include 
only— 
"(i) the facility, including the equipment, plant, machinery, 
supplies, and other materials associated with the facility, which 
converts the domestic resource to S3nithetic fuel; 
"(ii) the land and mineral rights required directly for use in 
connection with the facilities for the production of S3mthetic 
fuels; 
"(iii) any facility or equipment to be used in the extraction of a 
mineral for use directly and exclusively in such conversion; 
"(I) which— 
"(aa) is co-located with the conversion facility or is 
located in the immediate vicinity of the conversion 
facility; or 
"(bb) if not co-located or located in the immediate 
vicinity, is incidental to the project (except in the event 
of a coal mine where no other reasonable source of coal 
is available to the project); and 
"(II) which is necessary to the project; and 
"(iv) any transportation facility, electric powerplant, electric 
transmission line or other facility— 
"(I) which is for the exclusive use of the project; 
"(II) which is incidental to the project; and 
"Government 
synthetic fuel 
project." 
50 u s e app. 
2098. 
Ante, p. 623. 
"Synthetic fuel. 
Ante, pp. 619, 
623. 
"Synthetic fuel 
project." 
94 STAT. 632 
PUBLIC LAW 96-294—JUNE 30, 1980 
Definitions. 
"United States." 
Ante, pp. 619, 
623. 
"(Ill) which is necessary to the project, except that trans-
portation facilities used to transport synthetic fuel away 
from the project shall be used exclusively to transport 
synthetic fuel to a storage facility or pipeline connecting to 
an existing pipeline or processing facility or area within 
close proximity of the project. 
"(B)(i) Such term may also include a project which will result in the 
replacement of a significant amount of oil and is— 
"(I) used solely for the production of a mixture of coal and 
combustible liquids, including petroleum, for direct use as a fuel, 
but shall not include— 
"(aa) any mineral right; or 
"(bb) any facility or equipment for extraction of any 
mineral; 
"(II) used solely for the commercial production of hydrogen 
from water through electrolysis; and 
"(III) a magnetohydrodynamic topping cycle used solely for the 
commercial production of electricity, 
"(ii) Such a synthetic fuel project using magnetohydrodynamic 
technology shall only be eligible for guarantees under section 305 or 
section 306. 
"(C) For purposes of this paragraph— 
"(i) the term 'exclusive' means for the sole use of the project, 
except that an incidental by-product might be used for other 
purposes; 
"(ii) the term 'incidental' means a relatively small portion of 
the total project cost; and 
"(iii) the term 'necessary' means an integrated part of the 
project taking into account considerations of economy and effi-
ciency of operation. 
"(c) For purposes of section 305 and section 306, the term 'United 
States' means the several States, the District of Columbia, the 
Commonwealth of Puerto Rico, Guam, the Virgin Islands, the North-
ern Mariana Islands, the Trust Territory of the Pacific Islands, and 
any other territory or possession of the United States." 
Appropriation 
authorization. 
Ante, p. 619. 
GENERAL PROVISIONS 
SEC. 105. (a) Section 711(a) of the Defense Production Act of 1950 (50 
U.S.C. App. 2161(a)) is amended— 
(1) by inserting ", but excluding sections 305 and 306" after 
"payment of interest under subsection (b) of this section"; 
(2) by inserting "pursuant to this paragraph" after "Funds 
made available"; 
(3) by striking out "There" and inserting in lieu thereof "(1) 
Except as provided in paragraph (2), there"; and 
(4) by adding at the end thereof the following new paragraphs: 
"(2XA) 'There are hereby authorized to be appropriated without 
fiscal year limitation not to exceed $3,000,000,000 to carry out the 
provisions of section 305 until the date on which the authority of the 
President under such section ceases to be effective in accordance with 
section 305(kXl). Subject to subparagraphs (B) and (C), all such funds 
shall remain available until expended. 
"(B) Such funds may be expended to carry out section 305 after such 
date only if such funds were obligated by the President before such 
date, or are required to be retained as a reserve against a contingent 
obligation incurred before such date. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 633 
"(C) Any sums appropriated pursuant to this paragraph which 
have not been expended or obligated pursuant to subparagraph (B) as 
of the date determined under section 305(k)(l) or are not required to Ante, p. 619. 
be retained as a reserve against a contingent obligation as specified in 
subparagraph (B), shall be transferred to the Energy Security Re-
serve and made available to the Secretary of the Treasury for the 
United States Sjmthetic Fuels Corporation pursuant to section 195 of 
the United States Synthetic Fuels Corporation Act of 1980. 
Post, p. 682. 
"(3) There are hereby authorized to be appropriated such sums as 
may be necessary to carry out the provisions of section 305(k)(2).". 
(b) The first sentence of section 717(a) of the Defense Production 
Act of 1950 (50 U.S.C. App. 2166(a)) is amended by striking out 
"August 27,1980" and inserting in lieu thereof "September 30,1981". 
(c) Section 701(d) of the Defense Production Act of 1950 (50 U.S.C. 
App. 2151(d)) is amended by striking out "Defense Production Act 
Amendments of 1955" and inserting in lieu thereof "Defense Produc-
tion Act Amendments of 1980" 
REPORTS 
SEC. 106. Beginning one year after the effective date of this part, 
and annually thereafter, the President shall submit a report to the 
Congress on actions taken under sections 305 and 306 of the Defense 
Production Act of 1950. 
EFFECTIVE DATE 
SEC. 107. The amendments made by this part shall take effect on 
the date of the enactment of this part. 
Part B—United States Synthetic Fuels Corporation 
SUBTITLE A—GENERAL PROVISIONS 
SHORT TITLE 
SEC. 111. This part may be cited as the "United States Synthetic 
Fuels Corporation Act of 1980" 
50 u s e app. 
2096a. 
Ante, pp. 619, 
623. 
50 u s e app. 2062 
note. 
United States 
Synthetic Fuels 
eorporation Act 
of 1980. 
42 u s e 8701 
note. 
GENERAL DEFINITIONS 
SEC. 112. For purposes of this part: 
(1) The term "Board of Directors" means the Board of Directors 
of the Corporation, including the Chairman and the six other 
Directors. 
(2) The term "Chairman" means the Chairman of the Board of 
Directors of the Corporation. 
(3) The term "concern" means any— 
(A) person; 
(B) State or political subdivision or governmental entity 
thereof, or an Indian tribe or tribal organization; 
(C) multi-State entity which possesses legal powers 
necessary to carry out activities under this part; 
(D) foreign government or agency thereof when participat-
ing in joint ventures with any entity described in subpara-
graph (A) or (B); or 
(E) combination of the aforementioned, which is engaged, 
or proposes to engage, in a S5aithetic fuel project pursuant to 
this part. 
42 u s e 8702. 
94 STAT. 634 
PUBLIC LAW 96-294—JUNE 30, 1980 
(4) The term "Corporation" means the United States Synthetic 
Fuels Corporation, 
(5) The term "Corporation construction project" means a 
synthetic fuel project undertaken in accordance with the provi-
sions of subtitle E. 
(6) The term "Director" means a member of the Board of 
Directors, including the Chairman. 
(7)(A) The term "financial assistance" means any of the follow-
ing forms of financial assistance, or combinations thereof, as 
provided in subtitle D— 
(i) loans; 
(ii) loan guarantees; 
(iii) price guarantees; 
(iv) purchase agreements; 
(v) joint-ventures; and 
(vi) acquisition and lease back of a synthetic fuel project 
^^«^' P- ^^^- 
pursuant to section 137(c); 
(B) Such term shall not include any form of grant, except cost-
Post, p. 654. 
sharing agreements pursuant to section 131(u). 
(8) The term "Indian tribe" means any Indian tribe, band, 
nation, or other organized group or community, including any 
Alaska Native village or regional or village corporation as 
defined in or established pursuant to the Alaska Native Claims 
Settlement Act which is recognized as eligible for the special 
programs and services provided by the United States to Indians 
because of their status as Indians. 
(9) The term "joint venture" means a synthetic fuel project 
module undertaken in accordance with the provisions of section 
136. 
(10) The term "loan" means a loan, or commitment to loan. 
Post, p. 658. 
made under section 132; 
(11) The term "loan guarantee" means a guarantee of, or 
commitment to guarantee, indebtedness, which is made under 
Post, p. 660. 
section 133. 
(12) The term "person" means any individual, company, coop-
erative, partnership, corporation, association, consortium, unin-
corporated organization, trust, estate, or any entity organized for 
a common business purpose. 
(13) The term "price guarantee" means a guarantee of, or 
commitment to guarantee, the price received or to be received by 
a concern from the sale of synthetic fuel. Such term includes only 
a guarantee, or commitment to guarantee, which is made under 
Post, p. 661. 
section 134. 
(14) The term "purcheise agreement" means any contract to 
purchase synthetic fuel, any guarantee thereof, or a commitment 
Post, p. 661. 
thereof, which is made under section 135. 
(15) The term "qualified concern" means a concern which 
demonstrates to the satisfaction of the Board of Directors evi-
dence of its capability directly or by contract to undertake and 
complete the design, construction, and operation of a proposed 
synthetic fuel project. 
(16) The term "State" means any of the several States, the 
District of Columbia, the Commonwealth of Puerto Rico, the 
Virgin Islands, Guam, American Samoa, and the Commonwealth 
of the Northern Mariana Islands. 
(17)(A) The term "synthetic fuel" means any solid, liquid, or 
gas, or combination thereof, which can be used as a substitute for 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 635 
petroleum or natural gas (or any derivatives thereof, including 
chemical feedstocks) and which is produced by chemical or 
physical transformation (other than washing, coking, or desul-
furizing) of 
domestic sources o
f
— 
(i) coal, including lignite and peat; 
(ii) shale; 
(iii) tar sands, including those heavy oil resources where— 
(I) the cost and the technical and economic risks make 
extraction and processing of a heavy oil resource un-
economical under applicable pricing 
and tax policies; and 
(II) the costs and risks are comparable to those associ-
ated with shale, coal and tar sand resources (other than 
heavy oil) qualifying for financial assistance under this 
part; and 
(iv) water, as a source of hydrogen only through 
electrolysis. 
(B) Such term includes mixtures of coal and combustible 
liquids, including petroleum. 
(C) Such term does not include solids, liquids, or g:ases, or 
combinations thereof, derived from biomass, which includes 
timber, animal and timber waste, municipal and industrial 
waste, sewage, sludge, oceanic and terrestrial plants, and other 
organic matter. 
(18)(A) The term "synthetic fuel project" means any facility 
using an integrated process or processes at a specific geographic 
location in the United States for the purpose of commercial 
production of synthetic fuel. The project may include only— 
(i) the facility, including the equipment, plant, machinery, 
supplies, and other materials associated with the facility, 
which converts the domestic resource to synthetic fuel; 
(ii) the land and mineral rights required directly for use in 
connection with the facilities for the production of synthetic 
fuels; 
(iii) any facility or equipment to be used in the extraction 
of a mineral for use directly and exclusively in such 
conversion; 
(I) which— 
(aa) is co-located with the conversion facility or is 
located in the immediate vicinity of the conversion 
facility; or 
(bb) if not co-located or located in the immediate 
vicinity, is incidental to the project (except in the 
event of a coal mine where no other reasonable 
source of coal is available to the project); and 
(II) which is necessary to the project; and 
(iv) any transportation facility, electric powerplant, elec-
tric transmission line or other facility— 
(I) which is for the exclusive use of the project; 
(II) which is incidental to the project; and 
(III) which is necessary to the project, except that 
transportation facilities used to transport synthetic fuel 
away from the project shall be used exclusively to 
transport synthetic fuel to a storage facility or pipeline 
connecting to an existing pipeline or processing facility 
or area within close proximity of the project. 
(B)(i) Such term may also include a project which will result in 
the replacement of 
a significant amount of 
oil and is— 
94 STAT. 636 
PUBLIC LAW 96-294—JUNE 30, 1980 
(I) used solely for the production of a mixture of coal and 
combustible liquids, including petroleum, for direct use as a 
fuel, but shall not include— 
(aa) any mineral right; or 
(bb) any facility or equipment for extraction of any 
mineral; 
(II) used solely for the commercial production of hydrogen 
from water through electrolysis; and 
(III) a magnetohydrodynamic topping cycle used solely for 
the commercial production of electricity. 
(ii) Such a synthetic fuel project using magnetohydrodynamic 
technology shall only be eligible for financial assistance pursu-
Post, pp. 660,662. 
ant to section 133 or section 136, but not both, and shall not be 
Post, p. 665. 
authorized for purposes of subtitle E. 
(iii) Such a synthetic fuel project for commercial production of 
hydrogen from water shall not be eligible for financial assistance 
pursuant to section 136. 
(C) For purposes of this paragraph— 
(i) the term "exclusive" means for the sole use of the 
project, except that an incidental byproduct might be used 
for other purposes; 
(ii) the term "incidental" means a relatively small portion 
of the total project cost; and 
(iii) the term "necessary" means an integrated part of the 
project taking into account considerations of economy and 
efficiency of operation. 
42 use 8701 
note. 
EFFECTIVE DATE 
SEC. 113. This part shall take effect on the date of the enactment of 
this part. 
SUBTITLE B—ESTABUSHMENT OF CORPORATION 
United States 
Synthetic Fuels 
Corporation. 
42 use 8711. 
Post, p. 673. 
42 use 8712. 
Membership. 
Terms. 
ESTABUSHMENT 
SEC. 115. (a) There is hereby created the United States Synthetic 
Fuels Corporation. 
(b) The principal office of the Corporation shall be located in the 
District of Columbia. The Corporation may establish offices else-
where in the United States as determined by the Board of Directors of 
the Corporation. The Corporation is deemed to be a resident of the 
District of Columbia. 
(c) The general powers of the Corporation are those powers speci-
fied in section 171. 
BOARD OF DIRECTORS 
SEC. 116. (aXD The powers of the Corporation shall be vested in the 
Board of Directors, except those functions, powers, and duties vested 
in the Chairman by or pursuant to this part. 
(2) The Board of Directors shall consist of a Chairman and six other 
Directors appointed by the President by and with the advice and 
consent of 
the Senate. Not more than four Directors shall be members 
of any one political party. The Chairman shall devote full working 
time to the affairs of the Corporation and shall hold no other salaried 
position. 
(bXD The Directors shall serve for seven-year terms. Of the Direc-
tors first appointed, the Chairman shall serve as Chairman for a 
seven-year term, one Director shall serve for a term of six years, one 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 637 
Removal. 
shall serve for a term of five years, one shall serve for a term of four 
years, one shall serve for a term of three years, one shall serve for a 
term of two years, and one shall serve for a term of one year, 
(2) Upon expiration of the initial term of each initial Director, each 
Director appointed thereafter shall serve for a term of seven years. 
Whenever a vacancy shall occur on the Board of Directors, the 
President shall appoint, by and with the advice and consent of the 
Senate, an individual to fill such vacancy for the remainder of the 
applicable term. Upon the expiration of a term, a Director may 
continue to serve for a maximum of one year or until a successor shall 
have been appointed and shall have taken office, whichever occurs 
first. 
(8) Any Director may be removed from office by the President only 
for neglect of duty, or malfeasance in office. 
(c) The President shall designate, at the time of appointment of a 
Director, whether such Director, other than the Chairman, will serve 
in either a full-time or part-time capacity. Directors serving in a part-
time capacity may not hold any full-time salaried position in the 
Federal Government or in any State or local government. Directors 
serving in a full-time capacity shall hold no other salaried position. 
(d) Before assuming office, each Director shall take an oath faith- Oath, 
fully to discharge the duties thereof. All Directors shall be citizens of 
the United States. 
(e) The Board of Directors shall meet at any time pursuant to the 
call of the Chairman and as may be provided by the bylaws of the 
Corporation, but not less than quarterly. A majority of the Board of 
Directors shall constitute a quorum, and any action by the Board of 
Directors shall be effected by majority vote of all members of the 
Board of Directors. The Board of Directors shall adopt, and may from 
time to time amend, such bylaws as are necessary for the proper 
management and functioning of the Corporation. 
(f)(1) All meetings of the Board of Directors held to conduct official 
Open meetings. 
business of the Corporation shall be open to public observation, and 
shall be preceded by reasonable public notice. Pursuant to such Exceptions. 
bylaws as it may establish, the Board of Directors may close a 
meeting if the meeting is likely to disclose— 
(A) information which is likely to adversely sdfect financial or 
securities markets or institutions; 
(B) information the premature disclosure of which would be 
likely to— 
(i) lead to speculation in securities, commodities, minerals, 
or land; or 
(ii) impede— 
(I) the ability of the Corporation to establish procure-
ment or synthetic fuel project selection criteria; or 
(II) its ability to negotiate a contract for financial 
assistance; or 
(C) matters or information exempted from public disclosure 
pursuant to paragraph (1), (2), (4), (5), or (6) of subsection (c) of 
section 552b, title 5 of the United States Code. 
(2) The determination to close any meeting of the Board of Direc-
tors for any of the purposes specified in subparagraphs (A) through 
(C) of paragraph (1) shall be made in a meeting of the Board of 
Directors open to public observation preceded by reasonable notice. 
The Board of Directors shall prepare minutes of any meeting which is 
closed to the public and such minutes shall be made promptly 
available to the public, except for those portions thereof which, in the 
94 STAT. 638 
PUBLIC LAW 96-294—JUNE 30, 1980 
judgment of the Board of Directors, may be withheld under the 
provisions of subparagraphs (A) through (C) of paragraph (1). 
(g) The levels of compensation of the Board of Directors shall be 
fixed initially by the President and may be adjusted from time to time 
upon recommendation by the Board of Directors and concurrence of 
the President. 
OFFICERS AND EMPLOYEES 
42 use 8713. 
SEC. 117. (a) The Chairman shall be the chief executive officer of the 
Corporation, and shall be responsible for the management and 
direction of the Corporation. 
(b) The Board of Directors shall— 
(1) establish the offices and appoint the officers of the Corpora-
tion (including a General Counsel and Treasurer) and define 
their duties; 
(2) fix the compensation of individual officer positions and 
categories of other employees of the Corporation taking into 
consideration the rates of compensation in effect under the 
Executive Schedule and the General Schedule prescribed by 
5 use 5311, 
subchapters II and III of chapter 53 of title 5, United States Code 
5331. 
for comparable positions or categories. If the Board of Directors 
determines that it is necessary to fix the compensation of any 
officer position or category of other positions at a rate or rates in 
excess of that prescribed for level I of the Executive Schedule 
under section 5312 of title 5, the Board of Directors may transmit 
to the President its recommendations with respect to the rates of 
compensation it deems advisable for such positions and catego-
ries. Such recommendations shall become effective at the begin-
ning of the first pay period which begins after the thirtieth day 
following the transmittal of such recommendations unless the 
President has specifically disapproved such recommendation and 
notified the Board of Directors to such effect; and 
(3) provide a system of organization to fix responsibility and 
promote efficiency. 
(c) Except as specifically provided herein, Directors, officers, and 
employees of the Corporation shall not be subject to any law of the 
United States relating to governmental employment. 
(d) The Chairman shall appoint such employees as may be neces-
sary for the transaction of the Corporation's business to, and may 
discharge such employees from, positions established in accordance 
with this section: Provided, however, That the Corporation shall not 
be authorized to employ more than three hundred individuals in full-
time professional positions at any time: And provided further. That 
for purposes of the preceding limitation, individuals employed for 
Post, p. 665. 
Corporation construction projects under subtitle E shall not be 
counted. 
(e) No political test or qualification shall be used in selecting, 
appointing, promoting, or taking other personnel actions with respect 
to officers, agents, and employees of the Corporation, except as 
provided in section 116(a)(2). 
CONFUCTS OF INTEREST AND FINANCIAL DISCLOSURE 
42 use 8714. 
SEC. 118. (a) The financial disclosure provisions of the Ethics in 
2 use 701 note. 
Government Act of 1978 (92 Stat. 1824; Public Law 95-521) applicable 
to individuals occupying positions compensated under the Executive 
Schedule shall apply to the Directors and officers of the Corporation 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 639 
and to employees of the Corporation whose position in the schedule 
established by the Board of Directors pursuant to section 117(bX2) is 
compensated at a rate equivalent to that payable for grade GS-16 or 
above of the General Schedule established by chapter 58 of title 5, 5 usg 5332 note. 
United States Code. The financial disclosure provisions of the Ethics ^^ ^^ ^^^^^ 
in Grovemment Act of 1978 shall apply to the Corporation as if it were ^ ^^^ '^^^ ^°^^-
a Federal agency. 
(b) Any provision of law governing post-Federal emplojnnent 
activities shall not apply to former Federal employees who may be 
employed by the Corporation while acting on behalf of the 
Corporation. 
(cXD Except as permitted by paragraph (3), no Director shall vote 
on any matter respecting any application, contract, claim, or other 
particular matter pending before the Corporation, in which, to his or 
her knowledge, he or she, his or her spouse, minor child, partner, or 
an organization (other than the Corporation) in which he or she is 
serving as officer, director, trustee, partner, or employee, or any 
person or organization with whom he or she is negotiating or has any 
arrangement concerning prospective emplojnnent, has a financial 
interest. 
(2) Action by a Director contrary to the prohibition contained in 
paragraph (1) shall be cause for removal of such Director pursuant to 
section 116(bX3), but shall not impair or otherwise affect the validity 
of any otherwise lawful action by the Corporation in which the 
Director or officer participated. 
(3) The prohibition contained in paragraph (1) shall not apply if the 
Director first advises the Board of Directors of the nature of the 
particular matter in which he or she proposes to participate and 
makes full disclosure of such financial interest, and the Board of 
Directors determines by majority vote that the financial interest is 
too remote or too inconsequential to affect the integrity of such 
Director's services for the Corporation in that matter. The Director 
involved shall not participate in such determination. 
(d) Section 207(a) of title 18, United States Code (and subsections (f), 
(h), and (j) of such section to the extent they relate to subsection (a)) 
shall apply to former Directors, officers, and employees of the 
Corporation as if they were former officers or employees of the 
executive branch of the United States Government. Such section 
shall apply to the Corporation as if it were an agency of the executive 
branch of 
the United States Government, 
DELEGATION 
SEC. 119. (a) The Board of Directors may, by resolution, delegate to ^^ use 8715. 
the Chairman and the other Directors functions, powers, and duties 
assigned to the Corporation under this part other than those ex-
pressly vested in the Board of Directors pursuant to sections 116(f), 
117(b), 118(cX3), 126(aXlXD), 126(b), 127(c), (e), and (f), 131(a), (b), and (f), 
132(a) and (d), 133(a) and (b), 134,135(a), 136(a) and (b), 137(b) and (c). Post, pp. 658,660, 
141(a), 154,171(aX8) and (c), 173(a) and (b), 181(a) and (c), and 191(b). The ^61, 662, 663, 
Chairman may, only by written instrument, delegate such functions, 5
7
5
^ ggoj ggi 
powers, and duties as are assigned to the Chairman by or pursuant to 
the provisions of 
this part to such other full-time Directors, officers, or 
employees of the Corporation as the Chairman deems appropriate. 
(bXl) Notwithstanding any other provision of law, the President 
and any other officer or employee of the United States shall not make 
any delegation to the Chairman, the Board of Directors, or the 
79-194 
O—81—pt. 1 
44 : QL3 
94 STAT. 640 
PUBLIC LAW 96-294—JUNE 30, 1980 
Corporation of any power, function, or authority not expressly 
authorized by the provisions of this part, except where such delega-
tion is pursuant to an authority in law which expressly makes 
reference to this section. 
(2) Notwithstanding any other provision of law, the Reorganization 
Act of 1977 (5 U.S.C. 901 et seq.) shall not apply to authorize the 
transfer to the Corporation of any power, function, or authority. 
AUTHORIZATION OF ADMINISTRATIVE EXPENSES 
42 use 8716. 
SEC. 120. (a)(1)(A) The Corporation is authorized to expend during 
any fiscal year for— 
(i) subject to paragraph (2), reasonable and necessary adminis-
trative expenses, not to exceed $35,000,000; and 
(ii) subject to paragraph (4), generic studies and specific re-
views of individual proposals for financial assistance, not to 
exceed $10,000,000. 
(B) For purposes of section 122(e), and from the amount specified in 
subsection (a)(l)(A)(i), the Inspector General may expend not more 
than $2,000,000 during any fiscal year for reasonable and necessary 
administrative expenses. 
(2) For purposes of this section, administrative expenses shall 
include all ordinary and necessary expenses, including all compensa-
tion for personnel and consultants, expenses for computer usage, for 
space needs of the Corporation and similar expenses. For each fiscal 
year commencing after September 30, 1980, the $35,000,000 limita-
tion in subsection (aXlXA)(i) and the $2,000,000 limitation in subsec-
tion (a)(1)(B) shall be increased as of October 1 each year by an 
amount equal to the percentage increase in the Gross National 
Product implicit price deflator, as published by the Department of 
Commerce or its successor, for the year then ended over the level so 
established for the year ending September 30,1979. 
(3) Administrative expenses include reimbursement to Directors 
for reasonable expenses which are incurred in connection with their 
service as Directors of the Corporation. 
(4) Expenditures authorized under subsection (a)(l)(A)(ii) shall not 
be available— 
(A) for administrative expenses; 
(B) for the reimbursement of governmental agencies for the 
salaries of personnel of such agencies detailed to the Corporation; 
(C) to exceed the personnel limits established pursuant to 
section 117(d); or 
(D) for operating expenses. 
(b) Funds authorized for administrative expenses shall not be 
available for the acquisition of real property or for expenses related 
Post, p. 665. 
to Corporation construction projects pursuant to subtitle E. 
(c) The Corporation may make expenditures, without further 
appropriation, for reasonable and necessary administrative expenses 
not to exceed the limit provided in subsection (a) in any fiscal year 
and then only in accordance with a detailed statement of such 
expenditures which has been transmitted to the Congress, the Com-
mittee on Energy and Natural Resources of the Senate and the 
appropriate committees of the House of Representatives in accord-
Post, p. 669. 
ance with the provisions of section 153 along with the President's 
proposed budget for such fiscal year: Provided, That such expendi-
tures for fiscal years 1980 and 1981 may be made without such prior 
statement. It is the intention of this section that the Corporation's 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 641 
expenditures for administrative expenses shall reflect due considera-
tion for economy and efficiency. 
PUBLIC ACCESS TO INFORMATION 
SEC. 121. (a) The Corporation shall make available to the public, 42 USC 8717. 
upon request, any information regarding its organization, proce-
dures, requirements, and activities: Provided, That the Corporation is 
authorized to withhold information which is exempted from disclo-
sure pursuant to subsection (b) of section 552 of title 5, United States 
Code, and section 116(f) of this part as it pertains to minutes of 
meetings of the Board of Directors. 
(b) The Corporation, upon receipt of any request for information, 
shall determine promptly whether to comply with such request and 
shall promptly notify the person making the request of such determi-
nation. In the event of an adverse determination, and if requested by 
the person requesting the information, such determination shall be 
reviewed by the General Counsel of the Corporation. 
(c) Section 1905 of title 18, United States Code, shall apply— 
(1) to Directors, officers, and employees of the Corporation as if 
they were officers or employees of the United States; and 
(2) to the Corporation as if it were a Federal agency. 
INSPECTOR GENERAL 
SEC. 122. (a)(1) In addition to the officers provided for in section 42 use 8718. 
117(b)(1), there shall be in the Corporation an officer with the title of 
"Inspector General" who shall be appointed for a term of seven years 
by the President, by and with the advice and consent of the Senate, 
solely on the basis of integrity and demonstrated ability and without 
regard to political affiliation. The Inspector General shall report 
directly to, and be under the general supervision of, the Board of 
Directors, and shall not be under the control of, or subject to 
supervision by, any other officer of the Corporation. 
(2) Neither the Board of Directors nor any other officer or employee 
of the Corporation shall prevent or prohibit the Inspector General 
from initiating, carrying out, or completing any audit, investigation, 
or inspection. 
(3) There shall also be in the Corporation a Deputy Inspector 
General who shall be appointed for a term of seven years by the 
President, by and with the advice and consent of the Senate, solely on 
the basis of integrity and demonstrated ability and without regard to 
political affiliation. The Deputy Inspector General shall assist the 
Inspector General in carrying out his duties under this section and 
shall, during the absence or temporary incapacity of the Inspector 
General, or during a vacancy in that office, act as Inspector General. 
(4) The Inspector General or the Deputy Inspector General may be Removal. 
removed from office by the President only for neglect of duty, or 
malfeasance in office. The President shall communicate the reasons 
for any such removal to both Houses of Congress. 
(5) The Inspector General and the Deputy Inspector General shall Compensation. 
be compensated at a rate fixed by the Board of Directors in accord-
ance with section 117(bX2), which rate for the Inspector General shall 
be not less than the rate provided for level III of the Executive 
Schedule under section 5314 of title 5, United States Code, and for the 44 FR 58678. 
Deputy Inspector General not less than the rate provided for level IV 
of such schedule under section 5315 of title 5, United States Code. 
Deputy 
Inspector 
General. 
94 STAT. 642 
PUBLIC LAW 96-294—JUNE 30, 1980 
Duties. 
Annual reports. 
Public 
availability. 
(b)(1) It shall be the duty and responsibility of the Inspector 
General— 
(A) to supervise, coordinate, and provide policy direction for 
auditing, investigative, and inspection activities relating to the 
promotion of economy and efficiency in the administration of, or 
the prevention or detection of fraud and abuse in, programs and 
operations of the Corporation; 
(B) to determine the extent to which such programs and 
operations are consonant with the purposes of this title, and in 
compliance with the provisions of this part; 
(C) to make recommendations for correcting deficiencies in, or 
improving, the programs and operations of the Corporation; and 
(D) to keep the Board of Directors and the Congress fully and 
currently informed, by means of the reports required by subsec-
tions (c), (d), and (h), and otherwise, concerning problems, abuses, 
and deficiencies relating to the administration of programs 
authorized by this part, to recommend corrective action concern-
ing such problems, abuses, and deficiencies, and to report on the 
progress made in implementing such corrective action. 
(2) In carrying out his duties and responsibilities, the Inspector 
General shall give particular regard to the activities of the Comptrol-
ler General of the United States in relation to the Corporation, with a 
view toward avoiding duplication and insuring effective coordination 
and cooperation. 
(3) In carrying out his duties and responsibilities, the Inspector 
General shall report expeditiously to the Attorney General whenever 
he has reasonable grounds to believe there has been a violation of 
Federal criminal law. 
(c) The Inspector General shall, not later than November 30 of each 
year, prepare an annual written report summarizing the activities of 
his office during the immediately preceding fiscal year. Each such 
report shall include— 
(1) an identification and description of significant problems, 
abuses, and deficiencies relating to the administration of pro-
grams and operations of the Corporation disclosed by such 
activities; 
(2) a description of recommendations for corrective action with 
respect to significant problems, abuses, or deficiencies identified 
and described under paragraph (1); and 
(3) a summary of matters referred to law enforcement authori-
ties and the extent to which prosecutions and convictions have 
resulted. 
(d) The annual report of the Inspector General shall be furnished to 
the Board of Directors not later than November 30 of each year and 
shall be transmitted by the Board of Directors to the President, the 
Committee on Energy and Natural Resources of the Senate, and the 
Speaker of the House of Representatives within thirty days after the 
receipt of the report, together with a report by the Board of Directors 
containing any comments it deems appropriate. The Board of Direc-
tors shall make copies of each annual report available to the public 
upon request and at a reasonable cost within sixty days after its 
transmittal to the Congress. 
(e) In addition to the authority otherwise provided by this section, 
the Inspector General, in carrying out the provisions of this section, is 
authorized— 
(1) to have access to all records, reports, audits, reviews, 
documents, papers, recommendations, or other material availa-
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 643 
ble to the Corporation which relate to programs and operations 
with respect to which the Inspector General has responsibilities 
under this section; 
(2) to request such information or assistance as may be neces-
sary for carrying out the duties and responsibilities provided by 
this section from any Federal, State, or local governmental 
agency or unit thereof; 
(3) to require by subpena the production of all information, 
documents, reports, answers, records, accounts, papers, and 
other data and documentary evidence necessary in the perform-
ance of the functions eissigned by this section, which subpena, in 
the case of contumacy or refusal to obey, shall be enforceable by 
order of any appropriate United States district court; 
(4) to have direct and prompt access to the Board of Directors 
when necessary for any purpose pertaining to the performance of 
functions and responsibUities under this section; 
(5) to select, appoint, and employ such employees as may be 
necessary for carrying out the functions, powers, and duties of 
the Inspector General, which employees shall be compensated in 
accordance with salary schedules established pursuant to section 
117(b)(2); 
(6) to obtain services of consultants at daily rates not to exceed 
the equivalent rate prescribed for grade GS-18 of the General 
Schedule by section 5332 of title 5, United States Code; and 44 FR 58672. 
(7) to enter into contracts and other arrangements for audits, 
studies, analyses, and other services with public agencies and 
with private persons, and to make such payments as may be 
necessary to carry out the provisions of 
this section. 
(f)(1) Upon request of the Inspector General for information or 
assistance under subsection (e)(2), the head of any Federal agency 
involved shall, insofar as is practicable and not in contravention of 
any existing statutory restriction or regulation of the Federal agency 
from which the information is requested, furnish to such Inspector 
General, or to an authorized designee, such information or assistance. 
(2) Whenever information or assistance requested under subsection 
(eXl) or (e)(2) is, in the judgment of the Inspector General, unreason-
ably refused or not provided, the Inspector General shall report the 
circumstances to the head of the establishment involved without 
delay. 
(g) The Board of Directors shall make available to the Inspector 
General appropriate and adequate office space at offices of the 
Corporation. 
(h) The Inspector General— 
(1) may make such additional investigations and reports relat-
ing to the operations of 
the Corporation as are, in the 
judgment of 
the Inspector Gteneral, necessary or desirable; and 
(2) shall provide such additional information or documents as 
may be requested by any committee or subcommittee of either 
House of Congress with respect to matters within their 
jurisdiction. 
(i) Notwithstanding any other provision of law, the reports, infor-
mation, or documents required by or under this section shall be 
transmitted to the Board of Directors and to the Congress, or 
committees or subcommittees thereof, by the Inspector General 
without further clearance or approval. 
94 STAT. 644 
PUBLIC LAW 96-294—JUNE 30, 1980 
Establishment. 
42 u s e 8719. 
Membership. 
ADVISORY COMMITTEE 
SEC. 123. (a) There is hereby established an Advisory Committee to 
the Board of Directors for the purpose o
f
— 
(1) reviewing the Corporation's solicitations of proposals for 
financial assistance proposed for issuance pursuant to section 
127; and 
(2) advising the Corporation in relation to other matters within 
the expertise of the Advisory Committee, or any member thereof, 
as the Board of Directors may request of the Advisory Committee 
from time to time. 
(b) The Advisory Committee is composed of the Secretary of the 
Treasury, the Secretary of Defense, the Secretary of the Interior, the 
Secretary of Energy, the Administrator of the Environmental Protec-
tion Agency, and the Chairman of the Energy Mobilization Board. 
The Chairman of the Advisory Committee shall be designated by the 
President from among its members. 
(c) The Advisory Committee shall meet with the Board of Directors 
not less than semiannually, and the Corporation shall furnish to the 
Advisory Committee such professional, secretarial, and other services 
as the Advisory Committee may request. 
(d) During any meeting with the Board of Directors or in any 
communication with the Corporation, the members of the Advisory 
Committee shall be governed by the laws and regulations respecting 
conflicts of interest applicable to their respective departments ana 
agencies as such laws and regulations relate to meetings with 
representatives of a private corporation. 
SUBTITLE C—PRODUCTION GOAL OF THE CORPORATION 
NATIONAL SYNTHETIC FUEL PRODUCTION GOAL 
Establishment. 
SEC. 125. There is hereby established a national goal of achieving a 
42 use 8721. 
synthetic fuel production capability equivalent to at least 500,000 
barrels per day of crude oil by 1987 and of at least 2,000,000 barrels 
per day of 
crude oil by 1992, from domestic resources. 
PRODUCTION STRATEGY 
42 use 8722. 
SEC. 126. (aXD In order to assure achievement of the purposes of 
this title and the national synthetic fuel production goal set forth in 
section 125, the Corporation— 
(A) shall, pursuant to section 127(a), solicit proposals for 
synthetic fuel projects; 
(B) shall, pursuant to section 131(a), award financial assistance 
to those qualified concerns submitting proposals acceptable to 
the Board of Directors; 
(C) shall, after soliciting proposals pursuant to subparagraph 
(A) and reviewing such proposals, if in the judgment of the Board 
of Directors, there are, or will be, insufficient acceptable propos-
a^ as necessary to achieve the purposes of this title, undertake to 
negotiate contracts pursuant to subtitle D as necessary to 
achieve the purposes of 
this title; and 
(D) may, only after fulfilling the requirements of subpara-
graphs (A), (B), and (C), and paragraph (3), if in the judgment of 
the Board of Directors, there still are, or will be, insufficient 
acceptable proposals as necessary to achieve the purposes of this 
title, consistent with the objectives set forth in paragraph (2) and 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 645 
"Domestic 
resource." 
Publication in 
Federal 
Register. 
subject to the limitations of subtitle E, undertake Corporation Post, p. 665. 
construction projects pursuant to subtitle E as necessary to 
achieve the purposes of this title, 
(2)(A) Prior to the approval of a comprehensive strategy pursuant 
to subsection (c), the Corporation in discharging its responsibilities 
under paragraph (1) shall employ financial assistance pursuant to 
subtitle D or Corporation construction projects pursuant to subtitle E 
in such manner as will, in the judgment of the Board of Directors, (i) 
incorporate a technological diversity of processes, methods and tech-
niques for each domestic resource that offers significant potential for 
use as a synthetic fuel feedstock as well as (ii) offer the potential for 
achieving the national synthetic fuel production goal set forth in 
section 125. 
(B) For the purposes of this paragraph, the term "domestic re-
source" shall be construed so as to require the consideration of 
different types and qualities of coal (such as high- and low-sulphur 
coal, or Eastern and Western coal), shale, and tar sands, as different 
domestic resources. 
(3) Prior to undertaking a Corporation construction project pursu-
ant to subtitle E, the Corporation shall publish in the Federal 
Register its intent to undertake a Corporation construction project 
and the objectives of such a Corporation construction project, and 
shall solicit proposals to meet such objectives through the use of 
financial assistance mechanisms established under subtitle D. If the 
Corporation does not receive, within thirty days after the publication 
of the objectives pursuant to the preceding sentence, an acceptable 
notice of intent to submit a proposal, the Corporation may undertake 
such a Corporation construction project pursuant to subtitle E. 
(b)(1) Subject to the requirements of paragraph (2), the Corporation 
shall, consistent with the purposes of this title, establish a compre-
hensive strategy to achieve the national synthetic fuel production 
goal established by section 125. In the formulation of such compre-
hensive strategy, the Corporation— 
(A) shall consider all practicable means for the commercial 
production of synthetic fuel from domestic resources, employing 
the widest diversity of feasible technologies; and 
(B) after consultation with the Secretary of Defense, shall 
consider the feasibility of meeting national defense fuel require-
ments utilizing synthetic fuel produced pursuant to the provi-
sions of this part. 
(2) Subject to the requirements of paragraph (3), not later than four Submittal to 
years after the effective date of this part, the Board of Directors shall Congress. 
adopt and directly submit its proposed comprehensive strategy to the 
Congress. Such comprehensive strategy, when approved pursuant to 
subsection (c), shall become the comprehensive strategy of the Corpo-
ration to achieve the national synthetic fuel production goal estab-
lished by section 125. 
(3) The proposed comprehensive strategy shall— 
(A) to the extent feasible, set forth the recommendations of the 
Board of Directors on the Corporation's objectives and schedules 
for their achievement; 
(B) directly address and give emphasis to private sector respon-
sibilities in the efforts necessary to achieve the national 
synthetic fuel production goal established by section 125; 
(C) specifically address how any Corporation involvement 
recommended in the comprehensive strategy will be expressly 
Comprehensive 
strategy, 
establishment. 
94 STAT. 646 
PUBLIC LAW 96-294—JUNE 30, 1980 
Additional 
authorizations. 
Approval. 
"Joint 
resolution." 
limited and ultimately terminated upon a date or event certain 
in the future; 
(D) include a financial or investment strategy prospectus 
which sets forth the justification for the requested authorization 
of appropriations; 
(E) include findings, based upon accompanying comprehensive 
reports, regarding synthetic fuel projects which received finan-
cial assistance prior to submission of such comprehensive strat-
egy to the Congress with respect to— 
(i) the economic and technological feasibility of each such 
project including information on product quality, quantity, 
and cost per unit of production; and 
(ii) the environmental effects associated with each such 
project as well as projected environmental effects and water 
requirements; and 
(F) include recommendations based upon accompanying com-
prehensive reports concerning the specific mix of technologies 
and resource types which the Corporation proposes to support 
after approval pursuant to subsection (c) of the comprehensive 
strategy. 
(4) After the approval of the comprehensive strategy, the Board of 
Directors may request, pursuant to subsection (cXlO), additional 
authorizations of appropriations. Such requests shall include a finan-
cial or investment prospectus which sets forth the justification for the 
requested authorizations of appropriations. 
(c)(1)(A) The comprehensive strategy submitted by the Board of 
Directors to the Congress pursuant to subsection (bX2) shall be 
deemed approved if a joint resolution of approval has been enacted 
into law during the same Congress in which such comprehensive 
strategy was submitted to the Congress. If either House of the 
Congress within ninety calendar days of continuous session after 
introduction fails to pass such a joint resolution or rejects such a joint 
resolution, the comprehensive strategy shall be deemed disapproved. 
For purposes of this subsection, the term "joint resolution" means 
only a joint resolution of either House of Congress as described in 
paragraph (5) or paragraph (lOXB). 
(B) Ninety calendar days after receipt by the Congress of the 
comprehensive strategy, on the first day that both Houses of the 
Congress are in session after such ninety-day period, a joint resolu-
tion of approval containing the authorization of appropriations 
requested by the Corporation for the proposed comprehensive strat-
egy shall be introduced in their respective Houses by the Chairman of 
the Committee on Energy and Natural Resources of the Senate and 
the Majority Leader of the House of Representatives. 
(C) The Corporation may withdraw the comprehensive strategy any 
time prior to the adoption of such joint resolution by either House of 
the Congress. 
(2) Upon introduction, the joint resolution shall be referred imme-
diately to the Committee on Energy and Natural Resources of the 
Senate and the appropriate committee or committees of the House of 
Representatives. 
(3) For the purpose of subsection (cXlXA) of this section— 
(A) continuity of session is broken only by an adjournment of 
Congress sine die at the end of the second session of a Congress; 
and 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 647 
(B) the days on which either House is not in session because of 
an adjournment of more than 3 days to a day certain are 
excluded in the computation of the calendar-day period involved. 
(4) This subsection is enacted by C!ongress— 
(A) as an exercise of the rulemaking power of the Senate and 
House of Representatives, respectively, and as such it is deemed 
a part of the rules of each House, respectively, but applicable 
only with respect to the procedure to be followed in that House in 
the case of resolutions described by paragraph (5) of this subsec-
tion; and it supersedes other rules only to the extent that it is 
inconsistent therewith; and 
(B) with full recognition of the constitutional right of either 
House to change the rules (so far as relating to the procedure of 
that House) at any time, in the same manner and to the same 
extent as in the case of any other rule of the respective House. 
(5) The joint resolution approving the comprehensive strategy 
under this part shall read as follows after the resolving clause: "That 
the Congress of the United States approves the comprehensive 
strategy submitted to the Congress by the United States Synthetic 
Fuels Corporation on 
and 
dollars 
are hereby authorized to be appropriated without fiscal year limita-
tion to the Secretary of the Treasury to purchase and retain notes or 
other obligations of the United States Synthetic Fuels Corporation.", 
the first blank space therein being filled with the date and year, the 
second blank space therein being filled with the appropriate dollar 
figure. 
(6)(A) If any committee to which such joint resolution with respect 
to the comprehensive strategy has been referred has not reported it 
at the end of 60 calendar days after its referral, it shall be in order to 
move either to discharge any such committee from further considera-
tion of such joint resolution or to discharge any such committee from 
further consideration of any other joint resolution with respect to 
such comprehensive strategy which has been referred to such 
committee. 
(B) A motion to discharge may be made only by an individual 
favoring such joint resolution, shall be highly privileged (except that 
it may not be made after all committees to which such joint resolu-
tion has been referred have reported a joint resolution with respect to 
the comprehensive strategy), and debate thereon shall be limited to 
not more than 1 hour, to be divided equally between those favoring 
and those opposing the 
joint resolution. Except to the extent provided 
in paragraph (9XA), an amendment to the motion shall not be in 
order, and it shall not be in order to move to reconsider the vote by 
which the motion was agreed to or disagreed to. 
(C) If the motion to discharge is agreed to or disagreed to, the 
motion may not be renewed, nor may another motion to discharge the 
committee be made with respect to any other joint resolution with 
respect to the same comprehensive strategy. 
(7)(A) When all such committees have reported, or have been 
discharged from further consideration of, a joint resolution, it shall 
be at any time thereafter in order (even though a previous motion to 
the same effect has been disagreed to) to move to proceed to the 
consideration of such a joint resolution. The motion shall be highly 
privileged and shall not be debatable. An amendment to the motion 
shall not be in order, and it shall not be in order to move to reconsider 
the vote by which the motion was agreed to or disagreed to. 
94 STAT. 648 
PUBLIC LAW 96-294—JUNE 30, 1980 
Debate, time 
(B) Debate on the joint resolution and all amendments thereto 
limitation. 
pursuant to paragraph (9)(A) shall be limited to not more than 10 
hours and final action on the joint resolution shall occur immediately 
following conclusion of such debate. A motion further to limit debate 
shall not be debatable. Except to the extent provided in paragraph 
(9)(B), an amendment to, or motion to recommit such a joint resolu-
tion shall not be in order, and it shall not be in order to move to 
reconsider the vote by which such a joint resolution was agreed to or 
disagreed to. 
(8)(A) Motions to postpone made with respect to the discharge from 
committee or the consideration of a joint resolution, shall be decided 
without debate. 
(B) Appeals from the decision of the Chair relating to the applica-
tion of the rules of the Senate or the House of Representatives, as the 
case may be, to the procedures relating to a joint resolution shall be 
decided without debate. 
(9) With respect to the comprehensive strategy— 
(A) In the consideration of any such joint resolution on any 
such comprehensive strategy, it shall be in order to offer an 
amendment to the dollar figure in the second blank of the text of 
the joint resolution described in paragraph (5), and any amend-
ments thereto only containing such a dollar figure. No other 
amendments except pro forma amendments shall be in order. 
(B) If one House receives from the other House a joint resolu-
tion with respect to the comprehensive strategy, then the follow-
ing procedure applies: 
(i) the joint resolution of the other House with respect to 
such comprehensive strategy shall not be referred to a 
committee; and 
(ii) in the case of a joint resolution of the first House with 
respect to such plan— 
(I) the procedure with respect to that or other resolu-
tions of such House with respect to such plan shall be 
the same as if no joint resolution from the other House 
with respect to such comprehensive strategy had been 
received; but 
(II) on any vote on final passage of a resolution of the 
first House with respect to such plan a resolution from 
the other House with respect to such plan where the text 
is identical shall be automatically substituted for the 
joint resolution of the first House. 
(10)(A) The Corporation at any time after the approval of the 
comprehensive strategy may submit requests pursuant to subsection 
(bX4) for additional authorizations of appropriations each of which 
shall be in the form of a joint resolution of approval (bearing an 
identification number). 
(B) Such joint resolution shall read as follows after the resolving 
clause: "That the Congress of the United States approves the request 
transmitted to the Congress by the United States Synthetic Fuels 
Corporation on 
and there are hereby authorized to 
be appropriated without fiscal year limitation to the Secretary of the 
Treasury to purchase and retain notes or other obligations of 
the United States Synthetic Fuels Corporation the sum of 
dollars.", the first blank space therein being filled 
with the day and year, and the second blank space therein being filled 
with the appropriate dollar figure. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 649 
(C) On the first day that both Houses of the Congress are in session 
after receipt of a joint resolution of approval containing the addition-
al authorization of appropriations requested by the Corporation, the 
joint resolution described in subparagraph (B) shall be introduced in 
their respective Houses by the Chairman of the Committee on Energy 
and Natural Resources of the Senate and the Majority Leader of the 
House of Representatives. Such resolution shall be considered in 
accordance with the procedures of this subsection. 
(11) The aggregate of the authorizations of appropriations under 
paragraph (5) enacted into law and any subsequent requests by the 
Corporation for additional authorizations for appropriations under 
paragraph (10) enacted into law shall not exceed $68,000,000,000. 
(dXD Notwithstanding the provisions of subsection (c), if at the 
expiration of such time as the Corporation is permitted for submis-
sion of its comprehensive strategy to the Congress, the Corporation 
determines that an adequate basis of knowledge has not yet been 
developed upon which to formulate and implement a comprehensive 
strategy for the achievement of the national synthetic fuel produc-
tion goal established in section 125, the Corporation shall report the 
reasons for such determination to the Congress, and may request, in a 
Corporation sjmithetic fuel action pursuant to section 128, such 
additional time up to one year as the Corporation considers necessary 
for the formulation of its proposed comprehensive strategy, 
(2) Such request shall be deemed approved unless disapproved by 
either House of CJongress pursuant to section 128, If such request is 
disapproved pursuant to section 128, the Corporation shall submit its 
proposed comprehensive strategy to the Congress within ninety days 
of such disapproval, 
(3) The Board of Directors may, consistent with the purposes of this 
title, amend the approved comprehensive strategy if, in their judg-
ment, such amendment is necessary to achieve the national S3mthetic 
fuel production goal set forth in section 125. If such amendment 
would substantially alter the use of funds previously approved by the 
Congress pursuant to subsection (c), the Board of Directors may not 
implement such amendment unless such amendment has been sub-
mitted to the Congress and has been approved pursuant to section 
129, Any such amendment and its justification shall be included in 
the subsequent quarterly report to the Congress pursuant to section 
177(c). 
Post, p. 678. 
SOUCITATION OF PROPOSALS 
SEC. 127. (aXD The Corporation is hereby directed to solicit propos- 42 use 8723. 
als from time to time from concerns interested in the construction or 
operation, or both, of sjmthetic fuel projects. The Corporation shall 
provide notice of such solicitations in the Federal Register and by 
such other notice as is customarily used to inform the public of 
Federal 
assistance 
for 
major 
research 
and development 
undertakings, 
(2) All proposed solicitations under paragraph (1) shall be submit-
ted to the Advisory Committee established under section 123, The 
Advisory Committee shall have 30 calendar days to review and 
comment on such solicitations prior to their initial issuance. 
(3) Within six months after the date of the enactment of this part, 
the Corporation shall make an initial set of solicitations directed by 
paragraph (1). Such set of solicitations shall encompass a diversity of 
technologies (including differing processes, methods, and techniques) 
94 STAT. 650 
PUBLIC LAW 96-294—JUNE 30, 1980 
for each potential domestic resource as well as all of the forms of 
financial assistance authorized in subtitle D. 
(b) All solicitations of proposals for financial assistance shall be 
conducted in a manner so as to encourage maximum open and free 
competition. 
(c) Any concern may request the Board of Directors to issue a 
solicitation pursuant to this section for proposals for a general type of 
synthetic fuel project and the Board of Directors, if it deems the 
action to be in accordance with the purposes of this title and the 
provisions of this part, may issue such a solicitation. 
(d) Each solicitation for proposals pursuant to the authority of this 
section shall set forth general evaluation criteria, as determined by 
the Board of Directors, taking into account— 
(1) the achievement of the national synthetic fuel production 
goal established in section 125; and 
(2) the requirements of section 126(a), for a general type of 
synthetic fuel project concerning— 
(A) the type of domestic resource to be used by the 
proposed synthetic fuel project; 
(B) the type or types of technologies to be employed; and 
(C) the type and amount of synthetic fuel to be produced. 
(e) Thirty days after the date of the enactment of this part, the 
Secretary of Energy, on behalf of the Corporation and pursuant to the 
authorities in this part, may make a solicitation for commercial scale 
high-Btu coal gas plants which shall be reviewed and acted upon by 
the Corporation pursuant to this part. 
(f) The Corporation shall give priority consideration to applications 
for financial assistance from any concern proposing a synthetic fuel 
project in any State which, in the judgment of the Board of Directors, 
indicates an intention to expedite all regulatory, licensing, and 
related government agency activities related to such project. 
(g) The Corporation shall consult with the Governor of any State in 
which a proposed Corporation construction project or a proposed joint 
venture project under section 136 would be located with regard to (1) 
the manner in which the project would be developed and (2) regula-
tory, licensing, and related governmental activities pertaining to 
such project. The States shall have the opportunity to provide written 
response to the Corporation on all aspects of such project develop-
ment, licensing, and operation. 
CONGRESSIONAL DISAPPROVAL PROCEDURE 
"Corporation 
SEC. 128. (a) For purposes of this section, the term "Corporation 
synthetic fuel 
Synthetic fuel action" means any matter required to be transmitted, 
action." 
or submitted to the Congress in accordance with the procedures of 
42 use 8724. 
this section. 
(b) The Corporation shall transmit any Corporation S3ntithetic fuel 
action G)earing an identification number) to both Houses of the 
Congress on the same day. If both Houses are not in session on the 
day on which any Corporation synthetic fuel action is transmitted to 
the appropriate officers of each House, for the purposes of this section 
such Corporation synthetic fuel action shall be deemed to have been 
received on the first succeeding day on which both Houses are in 
session. 
(c) Except as provided in subsection (e), if a Corporation synthetic 
fuel action is transmitted to both Houses of Congress, such Corpora-
tion synthetic fuel action shall take effect at the end of the first 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 651 
period of 30 calendar days of continuous session of the Congress after 
the date on which such Corporation synthetic fuel action is received 
by such Houses, unless between the date on which such Corporation 
synthetic fuel action is received and the end of such 30 calendar day 
period, either House passes a resolution stating in substance that 
such House does not favor such action. 
(d) For purposes of 
subsection (c)— 
(1) continuity of session is broken only by an adjournment of 
the Congress sine die; and 
(2) the days on which either House is not in session because of 
an adjournment of more than 3 days to a day certain are 
excluded in the computation of the 30-calendar-day period. 
(e) Under provisions contained in a Corporation synthetic fuel 
action, any provision of such Corporation S5mthetic fuel action may 
take effect on a date later than the date on which such Corporation 
synthetic fuel action otherwise would take effect, if such action is not 
disapproved, pursuant to the provisions of this section. 
(f) This section is enacted by the Congress— 
(1) as an exercise of the rulemaJ^ing power of the Senate and 
the House of Representatives, respectively, and as such, it is 
deemed a part of the rules of each House, respectively, but 
applicable only with respect to the procedure to be followed in 
that House in the case of resolutions described by subsection (g) 
of this section, and it supersedes other rules only to the extent 
that it is inconsistent with such rules; and 
(2) with full recognition of the constitutional right of either 
House to change the rules (so far as they relate to the procedure 
of that House) at any time, in the same manner and to the same 
extent as in the case of any other rule of the House. 
(g)(1) For purposes of subsection db), the term "resolution" means "Resolution." 
only a resolution of either House of the Congress the matter after the 
resolving clause of which is as follows: "ITiat the 
does not 
favor the Corporation S5mthetic fuel action numbered 
received 
by the Congress on 
, 19 ", the first blank space therein being 
filled with the name of the resolving House and the other blank 
spaces therein being appropriately filled. Any such resolution may 
only contain a reference to one Corporation synthetic fuel action. 
(2) A resolution once introduced with respect to a Corporation 
synthetic fuel action shall immediately be referred to the Committee 
on Energy and Natural Resources of the Senate and to the appropri-
ate committee or committees of the House of Representatives (and all 
resolutions with respect to the same Corporation sjoithetic fuel action 
shall be referred to the same committee or committees). 
(3XA) If any committee to which a resolution with respect to a 
Corporation synthetic fuel action has been referred has not reported 
it at the end of 20 cedendar days after it was received by the House 
involved, it shall be in order to move either to discharge such 
committee from further consideration of such resolution or to dis-
charge such committee from further consideration of any other 
resolution with respect to such Corporation sjoithetic fuel action 
which has been referred to the committee. 
(B) A motion to discharge may be made only by an individual 
favoring the resolution, shall be highly privileged (except that it may 
not be made after the committee has reported a resolution with 
respect to the same Corporation synthetic fuel action), and debate 
thereon shall be limited to not more than one hour, to be divided 
equally between those favoring and those opposing the resolution. An 
94 STAT. 652 
PUBLIC LAW 96-294—JUNE 30, 1980 
Debate, time 
limitation. 
Appeals. 
amendment to the motion shall not be in order, and it shall not be in 
order to move to reconsider the vote by which the motion was agreed 
to or disagreed to. 
(C) If the motion to discharge is agreed to or disagreed to, the 
motion may not be renewed, nor may another motion to discharge the 
committee be made with respect to any other resolution with respect 
to the same Corporation synthetic fuel action. 
(4)(A) When all committees to which the resolution was referred 
have reported (or have been discharged from further consideration of) 
a resolution, it shall be at any time thereafter in order (even though a 
previous motion to the same effect has been disagreed to) to move to 
proceed to the consideration of the resolution. The motion shall be 
highly privileged and shall not be debatable. An amendment to the 
motion shall not be in order, and it shall not be in order to move to 
reconsider the vote by which the motion was agreed to or disagreed 
to. 
(B) Debate on the resolution referred to in subparagraph (A) of this 
paragraph shall be limited to not more than 5 hours, which shall be 
divided equally between those favoring and those opposing such 
resolution. A motion further to limit debate shall not be debatable. 
An amendment to, or motion to recommit, the resolution shall not be 
in order, and it shall not be in order to move to reconsider the vote by 
which such resolution was agreed to or disagreed to. 
(5)(A) Motions to postpone made with respect to the discharge from 
committee or the consideration of a resolution and motions to proceed 
to the consideration of other business, shall be decided without 
debate. 
(B) Appeals from the decision of the Chair relating to the applica-
tion of the rules of the Senate or the House of Representatives, as the 
case may be, to the procedure relating to a resolution shall be decided 
without debate. 
(6) Notwithstanding any of the provisions of this subsection, if a 
House has approved a resolution with respect to a Corporation 
synthetic fuel action, then it shall not be in order to consider in that 
House any other resolution with respect to the same Corporation 
synthetic fuel action. 
CONGRESSIONAL APPROVAL PROCEDURE 
42 use 8725. 
SEC. 129. (a)(1) Any amendment to the comprehensive strategy 
submitted by the Board of Directors to the Congress pursuant to 
section 126(d) shall be deemed approved if a concurrent resolution of 
approval has been approved by the Congress during the same Con-
gress in which such request was submitted. If the Congress, within 90 
calendar days of continuous session after introduction, fails to ap-
prove such a concurrent resolution or either House of Congress 
rejects such a concurrent resolution, the request shall be deemed 
disapproved. 
(2) On the first day that both Houses of Congress are in session after 
receipt of such amendment, a concurrent resolution of approval shall 
be introduced in their respective Houses by the Chairman of the 
Committee on Energy and Natural Resources of the Senate and the 
Majority Leader of the House of Representatives. 
(3) The Corporation may withdraw the amendment any time prior 
to the adoption of such concurrent resolution by. either House of the 
Congress. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 653 
(b) Upon introduction, the concurrent resolution shall be referred 
immediately to the Committee on Ener^ and Natural Resources of 
the Senate and the appropriate committee or committees of the 
House of Representatives. 
(c) For the purpose of 
subsection (a)(1) of this section— 
(1) continuity of session is broken only by an adjournment of 
Congress sine die at the end of the second session of a Congress; 
and 
(2) the days on which either House is not in session because of 
an adjournment of more than 3 days to a day certain are 
excluded in the computation of the calendar day period involved. 
(d) This subsection is enacted by Congress— 
(1) as an exercise of the rulemaking power of the Senate and 
House of Representatives, respectively, and as such it is deemed 
a part of the rules of each House, respectively, but applicable 
only with respect to the procedure to be foUowea in that House in 
the case of resolutions described by subsection (e) of this section; 
and it supersedes other rules only to the extent that it is 
inconsistent therewith; and 
(2) with full recognition of the constitutional right of either 
House to change the rules (so far as relating to the procedure of 
that House) at any time, in the same manner and to the same 
extent as in the case of any other rule of the respective House. 
(e) The concurrent resolution approving the amendment under this 
part shall read as follows after the resolving clause: "That the 
Congress of the United States approves the amendment to the 
comprehensive strategy submitted to the Congress by the United 
States Synthetic Fuels Corporation on 
", the blank space 
therein being 
filled 
with the date and the year. 
(f)(1) If any committee to which such concurrent resolution with 
respect to the amendment to the comprehensive strategy has been 
referred has not reported it at the end of 60 calendar days after its 
referral, it shall be in order to move either to discharge any such 
committee from further consideration of such concurrent resolution 
or to discharge any such committee from further consideration of any 
other concurrent resolution with respect to such amendment to the 
comprehensive strategy which has been referred to such committee. 
(2) A motion to discharge may be made only by an individual 
favoring such concurrent resolution, shall be highly privileged 
(except that it may not be made after all committees to which such 
joint resolution has been referred have reported a concurrent resolu-
tion with respect to the request), and debate thereon shall be limited 
to not more than 1 hour, to be divided equally between those favoring 
and those opposing the concurrent resolution. An amendment to the 
motion shall not be in order, and it shall not be in order to move to 
reconsider the vote by which the motion was agreed to or disagreed 
to. 
(3) If the motion to discharge is agreed to or disagreed to, the 
motion may not be renewed, nor may another motion to discharge the 
committee be made with respect to any other concurrent resolution 
with respect to the same amendment to the comprehensive strategy. 
(gXD When all such committees have reported (or have been 
discharged from further consideration of) a concurrent resolution, it 
shall be at any time thereafter in order (even though a previous 
motion to the same effect has been disagreed to) to move to proceed to 
the consideration of such a concurrent resolution. The motion shall 
be highly privileged and shall not be debatable. An amendment to the 
94 STAT. 654 
PUBLIC LAW 96-294—JUNE 30, 1980 
Debate, time 
limitation. 
Appeals. 
motion shall not be in order, and it shall not be in order to move to 
reconsider the vote by which the motion was agreed to or disagreed 
to. 
(2) Debate on the concurrent resolution shall be limited to not more 
than 5 hours and final action on the concurrent resolution shall occur 
immediately following conclusion of such debate. The 5 hours shall be 
equally divided between supporters and opponents of such resolution. 
A motion further to limit debate shall not be debatable. Except to the 
extent provided in subsection (i), an amendment to, or motion to 
recommit such a concurrent resolution shall not be in order, and it 
shall not be in order to move to reconsider the vote by which such a 
concurrent resolution was agreed to or disagreed to. 
(h)(1) Motions to postpone, made with respect to the discharge from 
committee, or the consideration of a concurrent resolution, shall be 
decided without debate, 
(2) Appeals from the decision of the Chair relating to the applica-
tion of the rules of the Senate or the House of Representatives, as the 
case may be, to the procedures relating to a concurrent resolution 
shall be decided without debate. 
(i) With respect to a concurrent resolution related to an amend-
ment to the comprehensive strategy, if one House receives from the 
other House a concurrent resolution with respect to such amend-
ment, then the following procedure applies: 
(1) the concurrent resolution of the other House with respect to 
such request shall not be referred to a committee; and 
(2) in the case of a concurrent resolution of the first House with 
respect to such request— 
(A) the procedure with respect to that or other concurrent 
resolutions of such House with respect to such amendment 
shall be the same as if no concurrent resolution from the 
other House with respect to such request had been received; 
but 
(B) on any vote on final passage of a concurrent resolution 
of the first House with respect to such amendment a concur-
rent resolution from the other House with respect to such 
plan where the text is identical shall be automatically 
substituted for the concurrent resolution of the first House. 
SUBTITLE D—FINANCIAL ASSISTANCE 
AUTHORIZATION OF FINANCIAL ASSISTANCE 
42 use 8731. 
SEC. 131. (a) Financial assistance shall be awarded to a qualified 
concern whose proposal is most responsive to a solicitation for 
proposals issued under the authority of section 127 and is most likely 
to advance the purposes of this title, including consideration of price 
and other factors. Whenever, in the judgment of the Board of 
Directors, it is practicable and provident to do so, the Corporation 
shall award financial assistance on the basis of competitive bids. 
(b)(1) Subject to the limitations set forth in this part, the Corpora-
tion is authorized, upon such terms and conditions as the Board of 
Directors shall determine— 
(A) to provide financial assistance to a qualified concern whose 
proposal is most responsive to a solicitation for proposals issued 
under the authority of section 127; 
(B) with the consent of the recipient, to renew, modify, or 
extend such financial assistance; and 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 655 
(C) in connection with the awarding of financial assistance, to 
require such security and collateral as the Corporation deems 
appropriate for the repayment of any fixed or contingent obliga-
tions to the Corporation. 
(2) The proposal selected for financial assistance pursuant to any 
solicitation shall be that proposal which, in the judgment of the 
Board of Directors, is most advantageous in meeting the national 
synthetic fuel production goal established under section 125. Prefer-
ence in such selection shall be given to— 
(A) the proposal which represents the least commitment of 
financial assistance by the Corporation and the lowest unit 
production cost within a given technological process, taking into 
account the amount and value of the anticipated synthetic fuel 
products; and 
(B) in determining the relative commitment of the Corpora-
tion, in decreasing order of priority— 
(i) price guarantees, purchase agreements, or loan guaran-
tees; 
(ii) loans; and 
(iii) joint-ventures. 
(3) The Corporation shall also consider, in awarding financial 
assistance, among other relevant factors— 
(A) the diversity of technologies (including differing processes, 
methods, and techniques); and 
(B)(i) the potential cost per barrel or unit production of 
synthetic fuel from the proposed synthetic fuel project; 
(ii) the overall production potential of the technology, consider-
ing the potential for replication, the extent of the resource and 
its geographic distribution, and the potential end use; and 
(iii) the potential of the technology for complying with applica-
ble regulatory requirements. 
(4) If after a formal solicitation for competitive bids no bids are 
received during the period for response, or those received are not 
acceptable to the Board of Directors, and the Board of Directors 
makes a finding (A) that the synthetic fuel project is essential for the 
achievement of the national synthetic fuel production goal estab-
lished under section 125 and the requirements of section 126(a) and 
(B) that competitive bids are not appropriate, the Board of Directors Report to 
shall report such findings to the Committee on Energy and Natural ^"^^i^^ffi^^^^ 
Resources of the Senate and the Speaker of the House of Representa-
tives and may then proceed to negotiate a contract of financial 
assistance for such project with a qualified concern. 
(c) All contracts and instruments of the Corporation to provide, or 
providing, for financial assistance shall be general obligations of the 
United States backed by its full faith and credit. 
(d) Subject to the conditions of any contract for financial assistance, 
such contract shall be incontestable in the hands of the holder, except 
as to fraud or material misrepresentation on the part of the holder. 
(e) Any contract for financial assistance shall require the 
development of a plan, acceptable to the Board of Directors, for the 
monitoring of environmental and health related emissions from the 
construction and operation of the S3nithetic fuel project. Such plan 
shall be developed by the recipient of financial assistance after 
consultation with the Administrator of the Environmental Protec-
tion Agency, the Secretary of Energy, and appropriate State agencies. 
(f) Notwithstanding the provisions of the Federal Financing Bank 
Act of 1973 (12 U.S.C. 2281 et seq.) or any other provision of law 
79-194 
O—81—pt. 1 
45 : QL3 
committees. 
94 STAT. 656 
PUBLIC LAW 96-294—JUNE 30, 1980 
Application. 
Notification. 
Post, p. 682. 
(except as may be specifically provided by reference to this subsection 
in any Act enacted after the effective date of this part), no debt 
obligation which is made or committed to be made, or which is 
guaranteed or committed to be guaranteed by the Corporation, or 
which is secured in whole or in part by financial assistance provided 
by the Corporation, shall be eligible for purchase by, or commitment 
to purchase by, or sale or issuance to, the Federal Financing Bank or 
any Federal agency or department of the United States, except as 
provided in section 151. 
(g) No financial assistance may be awarded unless an application 
therefor has been submitted to the Corporation in such manner and 
containing such information as the Corporation may require. 
(h) The Corporation in awarding financial assistance shall give due 
consideration to promoting competition. 
(i) Every applicant for financial assistance under this part shall, as 
a condition precedent thereto, consent to such examinations and 
reports thereon as the Corporation or its designee may require for the 
provisions of this part. The Corporation shall require such reports 
and records as it deems necessary from any recipient of financial 
assistance in connection with activities carried out pursuant to this 
part. The Corporation is authorized to prescribe the manner of 
keeping records by any recipient of financial assistance and the 
Corporation or its designee shall have access to such records at all 
reasonable times for the purpose of insuring compliance with the 
terms and conditions upon which financial assistance was awarded. 
(j)(l) In no case shall the aggregate amount of financial assistance 
awarded or committed under this part exceed at any one time 15 per 
centum of the total obligational authority of the Corporation author-
ized under section 152— 
(A) to any one synthetic fuel project, either directly or 
indirectly; or 
(B) to any one person, including such person's affiliates and 
subsidiaries, either directly or indirectly. 
(2) For the purpose of determining compliance with paragraph 
(1)(B), any financial assistance to a synthetic fuel project under this 
part shall be allocated among the project participants in direct 
proportion to each person's participation in such project. 
(k)(l) Any contract for financial assistance shall specify in dollars 
the maximum amount of the liability of the Corporation under such 
contract, as computed in accordance with section 152. 
(2) The Corporation shall notify the Secretary of the Treasury of its 
intention to enter into a contract for financial assistance prior to the 
execution of such contract. 
(3) Any such contract shall be accompanied by a certification by the 
Secretary of the Treasury pursuant to section 195(aX3) that sufficient 
unencumbered appropriations are available in the Energy Security 
Reserve to satisfy the obligation of the contract. 
(1) With regard to a sjnithetic fuel project proposed by a concern 
whose rates are regulated, or with regard to a S3nithetic fuel project 
the management of which proposes to sell synthetic fuels to a person 
whose rates for the use or transportation of such fuels are regulated, 
the Corporation is authorized to consider as a factor in any decision to 
award financial assistance whether the regulatory body, or bodies, 
are likely to issue a ratemaking decision which will protect the 
financial interests of the investors and the Corporation. 
(m) For the purposes of determining (1) the total costs of the 
S5rnthetic fuel project for sections 132 and 133, and (2) the total costs of 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 657 
the sjmthetic fuel project module for section 136, any real or personal 
property or services obtained for the facility in a transaction with any 
person or concern (including an affiliated company as defined in 
section 2(aX2) of the Investment Company Act of 1940 (15 U.S.C. 
80a-2(a)(2)) and an affiliated person as defined in section 2(aX3) of 
such Act (15 U.S.C. 80a-2(aX3))) who has, or will have, an ownership 
or profit interest in the facility shall be valued at the lower of the cost 
to the project or fair market value, disregarding any portion of such 
fair market value which is attributable to the prospect of receiving 
financial assistance under this part. 
(n) The (Corporation, as a condition to providing financial assist-
ance, other than loans pursusint to section 132 and loan guarantees 
pursuant to section 133, may require that the Corporation share in 
profits from the operation of a sjmthetic fuel project on a fair basis. 
(o) Whenever the (Corporation, by one or more actions, awards a 
combination of two or more forms of financial assistance for a single 
sjrnthetic fuel project, the (Corporation shall insure that the recipient 
of such financial assistance shall bear a reasonable degree of risk in 
the construction and operation of such project: Provided, however. 
That any person who is solely in the position of a lender shall not be 
required to bear such risk. The Corporation shall not award more 
than a single form of financial assistance under this part unless the 
Board of Directors determines that multiple forms of financial 
assistance are required for the viability of the project, and further, 
that the project is necessary to achieve the purposes of this title and 
the provisions of this part. 
(p) The Corporation shall not award financial assistance in the 
form of loans pursuant to section 132 or joint ventures pursuant to 
section 136 unless the Board of Directors determines that neither 
price guarantees, purchsise agreements, nor loan guarsuitees will 
adequately support the construction and operation of the s)nithetic 
fuel project or will restrict the available participants for such project. 
(q) The (Corporation, in consultation with the Secretary of the 
Treasury, shall insure to the maximum extent feasible that the 
timing, interest rate, and substantial terms and conditions of any 
financial assistance will have the minimum possible impact on the 
capital markets of the United States, taking into account Federal 
activities which directly or indirectly influence such capital markets. 
Additionally, the Corporation shall impose such terms and conditions 
on any financial assistance (after evaluating the financing of the 
synthetic fuel project, the tax benefits which would be available to 
investors in the synthetic fuel project, and any regulatory actions 
associated with the sjmthetic fuel project) as may be necessary to 
assure that any investors having an ownership or profit interest in 
the s)Tithetic fuel project bear a substantial risk of after tax loss in 
the event of any default or other cancellation of the S5mthetic fuel 
project. 
(r) The (Corporation shall insure that financial assistance awarded 
under this part for (1) loans pursuant to section 132, (2) loan 
guarantees pursuant to section 133, (3) joint ventures pursuant to 
section 136, or (4) any combination of forms of financial assistance 
including one or more of the aforementioned forms, in the judgment 
of the Board of Directors, encourages and supplements, but does not 
compete with or supplant, any private capital investment which 
otherwise would be available to a proposed synthetic fuel project on 
reasonable terms and conditions which would permit such project to 
be undertaken. To that end, the (Corporation shall establish intern^ 
94 STAT. 658 
PUBLIC LAW 96-294—JUNE 30, 1980 
procedures, standards and criteria for the timely review for compli-
ance with such requirement of each new award of financial assistance 
for a specific proposed synthetic fuel project and, further, the Board 
of Directors shall determine, in its judgment, that any financial 
assistance by the Corporation for the project will not compete with 
nor supplant such available private capital investment and that 
adequate financing for the project would not otherwise be available to 
a proposed synthetic fuel project on reasonable terms and conditions 
which would permit such project to be undertaken. 
(s) Any price guarantee pursuant to section 134 or purchase 
agreement pursuant to section 135 shall include an express provision 
to the effect that the price guarantee or purchase agreement shall be 
the subject of review and possible renegotiation, pursuant to section 
131(b)(lXB), within ten years from the date of initial production by 
the synthetic fuel project, at which point the Corporation shall 
specifically determine the need for continued financial assistance 
pursuant to such price guarantee or purchase agreement. 
(t) The Corporation shall, in its determination of the need for 
financial assistance awarded pursuant to this part, take into consid-
eration (1) any specific tax credit directly associated with a synthetic 
fuel project, (2) any financial assistance that has been or will be 
provided by Federal or State agencies, and (3) the potential revenues 
generated by the project from the production of non-synthetic fuel 
products. 
Cost sharing 
(u)(l) The Corporation is authorized to enter into cost-sharing 
agreements. 
agreements with applicants for financial assistance to refine the 
design of proposed sjmthetic fuel projects so as to improve the 
accuracy of the preliminary total estimated costs upon which finan-
cial assistance in the form of loans and loan guarantees will be based. 
In the event of an award of a loan or loan guarantee, the Corpora-
tion's share of any such cost-sharing agreement shall be incorporated 
in such loan or loan guarantee. 
(2) Such cost-sharing agreements shall not exceed 1 percent of the 
preliminary total estimated cost of the applicant's proposed synthetic 
fuel project. 
(3) The Corporation is authorized to expend not to exceed 1 percent 
of the aggregate obligational authority under section 151 for cost-
sharing agreements under this subsection. 
LOANS MADE BY THE CORPORATION 
42 use 8732. 
SEC. 132. (a)(1) Subject to the limitations set forth in paragraphs (2) 
and (3), the Corporation is authorized, on such terms and conditions 
as the Board of Directors may prescribe, to commit to, or enter into, 
loans to any concern for a S3mthetic fuel project. 
(2)(A) Subject to the limitation contained in subparagraph (B), 
loans under this section shall not exceed 75 per centum of the initial 
total estimated cost of the S3rnthetic fuel project, as estimated by the 
Corporation as of the date of the loan or commitment to loan. 
(B) Any loan under this section shall be limited to the lesser of 49 
per centum of the initial total estimated cost or not more than a 
minority financial position in the project, unless the Board of Direc-
tors determines that the borrower has satisfactorily demonstrated 
that the limits established in this subparagraph would prevent the 
financial viability of the proposed project and therefore additional 
loan assistance is necessary. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 659 
(3) In the event the total cost of the project are thereafter estimated 
by the Corporation to exceed the total cost estimated under para-
graph (2), the Corporation may, upon application therefor, lend 
additional amounts as follows: 
(A) up to 50 per centum of the difference between the revised 
total estimated cost and the initial total estimated cost under 
paragraph (2): Provided, That the revised total estimated cost 
does not exceed 200 per centum of the initial total estimated cost 
under paragraph (2); and 
(B) if the revised total estimated cost exceeds 200 per centum of 
the initial total estimated cost, up to 40 per centum of the 
amount in excess of 200 per centum of the initial total estimated 
cost, except that if the revised total estimated cost exceeds 250 
per centum of the initial total estimated cost the Corporation 
shall not award such additional amounts unless the Corporation 
has transmitted to the Congress a Corporation synthetic fuel 
action pursuant to section 128, and such Corporation sjoithetic 
fuel action has not been disapproved. 
(4) The per centum specified in the exception contained in para-
graph (3XB) shall be computed based upon the initial total estimated 
cost of the project adjusted to include any increase or decrease 
pursuant to an appropriate construction price index for the type of 
construction involved. 
Ob) Each loan made under this section shall bear interest at such interest rate. 
rate as the Corporation may determine, giving consideration to the 
needs and capacities of the recipient and the prevailing rates of 
interest (public and private): Provided, That such rate shall not be 
less than a rate determined by the Secretary of the Treasury, for the 
Corporation, taking into consideration the current average yield on 
outstanding marketable obligations of the United States with re-
maining periods of maturity comparable to the average maturities of 
such loans. No loan shall be made unless the Corporation shall have 
determined that there is a reasonable prospect of repayment or that 
successful completion and operation of the synthetic fuel project will 
have a substantial value in helping to meet the national sj^thetic 
fuel production goal established under section 125. 
(c) Loans may be made either directly or in cooperation or partici-
pation with banks or other lenders. Loans may be made directly upon 
promissory notes or other evidence of indebtedness or by way of 
discount or rediscount of obligations tendered for the purpose. 
(d) If the Board of Directors determines that the borrower is unable 
to meet pajmients under a loan agreement and is not in default, it is 
in the public interest to permit the borrower to continue to pursue 
the purposes of the sjnithetic fuel project, and the probable net 
benefit to the Corporation in forbearing from exercising its rights 
under a loan agreement will be greater than that which would result 
in the event of a default, and tf the borrower agrees to make such 
payments to the Corporation on terms and conditions, including 
interest, which are satisfactory to the Corporation, then the Corpora-
tion may forbear from exercising its rights under the loan agreement. 
(e) No loan under this section shall have a maturity date of more Maturity date. 
than 30 years or the useful life of the sjmthetic fuel project involved, 
whichever is less. 
94 STAT. 660 
PUBLIC LAW 96-294—JUNE 30, 1980 
LOAN GUARANTEES MADE BY THE CORPORATION 
42 use 8733. 
SEC. 133. (a)(1) Subject to the limitations set forth in paragraphs (2) 
and (3), the Corporation is authorized, on such terms and conditions 
(including the right of subrogation) as the Board of Directors may 
prescribe, to commit to, or enter into loan guarantees against loss of 
principal and interest on bonds, notes, or other obligations (including 
refinancing thereof) issued solely to provide funds to any concern for 
a synthetic fuel project. 
(2) Loan guarantees under this section shall not exceed 75 per 
centum of the initial total estimated cost of the synthetic fuel project, 
as estimated by the Corporation as of the date of the guarantee or 
commitment to guarantee. 
(3) In the event that the total cost of the project are thereafter 
estimated by the Corporation to exceed the total cost estimated under 
paragraph (2), by the Corporation, the Corporation may, upon appli-
cation therefor, guarantee additional amounts as follows: 
(A) up to 50 per centum of the difference between the revised 
total estimated cost and the initial total estimated cost under 
paragraph (2): Provided, That the revised total estimated cost 
does not exceed 200 per centum of the initial total estimated cost 
under paragraph (2); and 
(B) if the revised total estimated cost exceeds 200 per centum of 
the initial total estimated cost, up to 40 per centum of the 
amount in excess of 200 per centum of the initial total estimated 
cost, except if the revised total estimated cost exceeds 250 per 
centum of the initial total estimated cost, the Corporation shall 
not award such additional amounts unless the (Corporation has 
transmitted to the Congress a (Corporation S3^thetic fuel action 
pursuant to section 128 and such Corporation synthetic fuel 
action has not been disapproved pursuant to such section. 
(C) The per centum specified in the exception contained in 
subparagraph (B) shall be computed based upon the initial total 
estimated cost of the project adjusted to include any increase or 
decrease pursuant to an appropriate construction price index for 
the type of construction involved. 
(4) The Corporation, in reviewing the need for financial assistance 
pursuant to applications for loan guarantees, shall consider whether 
the concern or concerns making such application otherwise would be 
unable, exercising prudent business judgment, as determined by the 
Board of Directors, to finance the synthetic fuel project, taking into 
account among other factors, the availability of debt financing under 
normal lending criteria based on the assets associated with the 
project. 
(5) Any loan guarantee made by the (Corporation under this section 
shall not be terminated, canceled, or otherwise revoked, except in 
accordance with the terms thereof, and shall be conclusive evidence 
that such loan guarantee complies fully with the provisions of this 
part and of the approval and legality of the principal amount, 
interest rate, and all other terms of the securities, obligations, or 
loans and of the guarantee. 
(6) The Corporation is authorized pursuant to paragraph (1) to 
award loan guarantees to any concern with a partial interest in a 
synthetic fuel project. 
(b) If the Board of Directors determines that— 
(1) the borrower is unable to meet pajrments and is not in 
default; it is in the public interest to permit the borrower to 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 661 
continue to pursue the purposes of such project; and the probable 
net benefit to the Corporation in paying the principal and 
interest due under a loan guarantee agreement will be greater 
than that which would result in the event of 
a default; 
(2) the amount of any pa3maent which the Corporation would be 
required to pay shall be no greater than the amount of principal 
and interest which the borrower is obligated to pay at that time; 
and 
(3) the borrower agrees to reimburse the Corporation for such 
payment on terms and conditions, including interest, which are 
satisfactory to the Corporation, 
then the Corporation is authorized to pay the lender under a loan 
guarantee agreement, an amount not greater than the principal and 
interest which the borrower is obligated to pay and which the 
Corporation has guaranteed under such agreement. 
(c) No loan guaranteed under this section shall have a maturity Maturity date. 
date of more than 30 years or the useful life of the synthetic fuel 
project involved, whichever is less. 
PRICE GUARANTEES MADE BY THE CORPORATION 
SEC. 134. The Corporation is authorized, on such terms and condi- 42 use 8734. 
tions as the Board of Directors may prescribe, to commit to, or enter 
into, price guarantees providing that the price that a concern will 
receive for all or part of the proKduction from a synthetic fuel project 
shall not be less than a specified sales price determined as of the date 
of execution of the commitment or the price guarantee: Provided, 
That no such price guarantee may be based upon a "cost plus" 
arrangement or variant thereof which guarantees a profit to the 
concern, except that the use of a "cost of service" pricing mechanism 
by a concern pursuant to law, or by a regulatory body establishing 
rates for a regulated concern, shall not be deemed to be a "cost plus" 
arrangement or variant thereof: Provided further. That if the Corpo-
ration determines in its sole discretion that such project would not 
otherwise be satisfactorily completed or continued and that comple-
tion or continuation of such project would be necessary to achieve the 
purposes of this title, the sales price set forth in the price guarantee 
may be renegotiated. In awarding financial assistance under this 
section, the Corporation shall establish such specified sales price at 
the level which will provide the minimum subsidy determined by the 
Board of Directors to be necessary to provide an adequate incentive, 
in light of projected prices of competing fuels and the requirements 
for economic and financial viability of the synthetic fuel project. 
PURCHASE AGREEMENTS MADE BY THE CORPORATION 
SEC. 135. (a) The Corporation is authorized, on such terms and 4
2 use 8735. 
conditions as the Board of Directors may prescribe, to commit to, or 
enter into purchase agreements for all or part of the production from 
a synthetic fuel project. The sales price specified in a purchase 
agreement shall not exceed the estimated prevailing market price as 
of the date of delivery, as determined by the Secretary of Energy, 
unless the Corporation determines that such sales price must exceed 
such estimated prevailing market price in order to insure the 
production of s)mthetic fuel to achieve the purposes of this title. 
O
t
)
) The Corporation in entering into, or committing to enter into a 
purchase agreement shall require— 
94 STAT. 662 
PUBLIC LAW 96-294—JUNE 30, 1980 
(1) assurance that the quality of the synthetic fuel purchased 
meets standards for the use for which such fuel is purchased; 
(2) assurances that the ordered quantities of such fuels are 
delivered on a timely basis; and 
(3) such other assurances as may reasonably be required. 
(c) Each purchase agreement, or commitment to enter into a 
purchase agreement, shall provide that the Corporation retain the 
right to refuse delivery of the synthetic fuel involved upon such terms 
and conditions as shall be specified in the purchase agreement. 
(d) The Corporation is authorized to take delivery of sjrnthetic fuel 
pursuant to a purchase agreement and, subject to section 172(d), to 
sell such synthetic fuel. In any case in which the Corporation accepts 
delivery of and does not sell such synthetic fuel to a person, such 
synthetic fuel may be purchased by the Federal Government for use 
by an appropriate Federal agency. Such Federal agency shall pay the 
prevailing market price, as determined by the Secretary of Energy, 
for the product which such S3aithetic fuel is replacing from sums 
appropriated to such Federal agency for the purchase of fuel. 
(e) The Corporation is authorized to transport and store and have 
processed and refined any s.vnthetic fuel obtained pursuant to a 
purchase agreement under this section. 
JOINT VENTURES BY THE CORPORATION 
42 use 8736. 
SEC. 136. (a) Prior to the approval of a comprehensive strategy 
pursuant to section 126(c), the Corporation is authorized, on such 
terms and conditions as the Board of Directors may prescribe, to 
commit to, or to enter into joint ventures for synthetic fuel project 
modules. In the selection of a concern or concerns for a joint venture 
and in the negotiation of a joint venture agreement pursuant to this 
section, the Corporation may, to the extent that the Corporation does 
not have available sufficient capability for evaluation or manage-
ment of the proposed joint venture, utilize personnel of the Depart-
ment of Energy, pursuant to section 171(aX9), to the extent that such 
personnel have technical expertise related to the technical matters 
associated with such selection and negotiation. In a joint venture the 
Corporation may undertake the construction and operation of a 
synthetic fuel project module only by contract: Provided, however, 
That the Corporation shall not finance more than 60 per centum of 
the total costs of the synthetic fuel project module, as estimated by 
the Corporation as of the date of execution of the joint venture 
agreement. 
(b) Any joint venture shall be restricted to a synthetic fuel project 
module which, in the judgment of the Board of Directors, will— 
(1) demonstrate the commercial feasibility of a technology for 
the production of synthetic fuel from a significant domestic 
resource which offers potential for achievement of the national 
synthetic fuel production goal set forth in section 125; and 
(2) can, at the same site, be expanded into a synthetic fuel 
project. 
(c) With regard to any joint venture, the initial contract may 
provide for purchase pursuant to such joint venture agreement of the 
equity interest of the Corporation in such joint venture by the 
participating concern, or concerns, after an appropriate interval, not 
to exceed five years after the date of operation of a synthetic fuel 
project module. The purchase price set forth in the joint venture 
agreement shall be established by the Board of Directors: Provided, 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 663 
That if such purchase from the Corporation is not provided for in the 
initial joint venture agreement or is not exercised by such concern, or 
concerns, the Corporation, after an appropriate interval, not to 
exceed five years after the date of operation of a synthetic fuel project 
module pursuant to a joint venture agreement, shall dispose of its 
participation in such agreement pursuant to section 18L 
(dXlXA) For the purposes of this section, the term "sjmthetic fuel 
project module" means any facility located in the United States 
which— 
(i) is of a size smaller than a sjmthetic fuel project; 
(ii) will, if successful, demonstrate the technical and economic 
feasibility of the commercial production of S5nithetic fuels; and 
(iii) can eventually be expanded at the same site into a 
sjmthetic fuel project. 
(B) Such term may include the necessarily related transportation 
or other facilities, equipment, plant, machinery, supplies, other 
materials, land, and mineral rights as described in section 112(18), 
(including all limitations and requirements in section 112(18)) associ-
ated with a sjoithetic fuel project module. 
(2) For purposes of this section, the term "joint venture" means an 
agreement under which the Corporation and one or more persons 
participate in construction and operation of a synthetic fuel project 
module: Provided, That the interest of the Corporation in such joint 
venture shall be in proportion to the relative contribution of the 
Corporation to the joint venture. 
(e) The Corporation participation in any joint venture pursuant to 
this section shall be limited to financial participation only and shall 
not include any direct role in the construction or operation of the 
module, other than as provided in subsection (f). Additionally, the 
Corporation's participation in any joint venture shall, pursuant to 
partnership law applicable to such joint venture, be limited to limited 
partnership status. 
(fKD Nothing in this section shall prohibit the Corporation from 
negotiating, as part of the joint venture agreement pursuant to this 
section, such participation of the Corporation in the management 
decisions of the joint venture as the Board of Directors deems 
appropriate and necessary pursuant to the Corporation's financial 
interest in the joint venture. 
(2) In no event, however, shall the persons in the joint venture 
agreement be denied the primary responsibility for management of 
the joint venture. The CJorporaticn shall be liable only to the extent of 
its contractual commitment to contribute capital to the venture. No 
additional liability shall ensue even if, and to the extent that, the 
Corporation were to assume a role which might be construed to 
constitute the role of a general partner. 
"Synthetic fuel 
project module.' 
'Joint venture.' 
CONTROL OF ASSETS 
SEC. 137. (a) The Corporation may acquire or retain control of a 
synthetic fuel project only— 
(1) by foreclosure of a security interest or pursuant to a default 
under any financial assistance contract; 
(2) pursuant to section 136 or subsection (b) of this section; or 
(3) pursuant to subtitle E. 
(b) The Corporation may acquire control of a synthetic fuel project 
which, prior to the approval of the comprehensive strategy pursuant 
42 use 8737. 
94 STAT. 664 
PUBLIC LAW 96-294—JUNE 30, 1980 
Ante, p. 644. 
"Operating 
asset." 
"Control." 
to section i26(c), is the subject of financial assistance under this part 
under the following circumstances: 
(1) substantial progress has been made toward completion of 
the construction and operation of such project and the Board of 
Directors determines that such project will not commence oper-
ation, or will cease operation unless acquired by the Corporation; 
(2) the operation of such project will make a significant 
contribution toward achieving the purposes of this title; 
(3) such acquisition of control will not result in losses to the 
Corporation disproportionate to the benefits that operation of 
the project will produce in demonstrating a 
particular 
technology; 
(4) failure of the Corporation to acquire such project would 
result in a greater financial liability of the Corporation than 
acquisition of the project by the Corporation; and 
(5) with respect to projects subject to loans or loan guarantees, 
the Board of Directors determines that the concern is in default 
or immediately will go into default: 
Provided, That the Corporation may not acquire any such control 
until it has submitted a plan for such acquisition to the President and 
the President approves such plan and transmits, with respect to such 
plan, a Corporation synthetic fuel action pursuant to section 128 and 
such Corporation synthetic fuel action has not been disapproved 
pursuant to such section: Provided further. That completion of the 
construction or operation of any such project, the control of which 
was acquired pursuant to this subsection, may only be undertaken by 
contract: Provided additionally, That authorities in this subsection 
shall not be available for synthetic fuel projects which are the subject 
of price guarantees or purchase agreements. 
(c) With respect to a synthetic fuel project subject to a loan or loan 
guarantee where the Corporation acquires control pursuant to sub-
section (b), the Corporation, on such terms and conditions as the 
Board of Directors may prescribe, is authorized to lease back to the 
concern involved such synthetic fuel project where such lease will 
assure the production of synthetic fuels from such project consistent 
with the purposes of this title: Provided, That the Corporation may 
not lease back such a project until it has submitted a plan regarding 
such lease-back to the President and the President approves such 
plan and transmits, with respect to such plan, a Corporation synthet-
ic fuel action pursuant to section 128 and such Corporation synthetic 
fuel action has not been disapproved pursuant to such section. 
(d) For the purposes of this section, the term— 
(1) "operating asset" means any real or personal property used 
in the synthetic fuel project; and 
(2) "control" means the power to direct the use or disposition of 
operating assets of the synthetic fuel project through (A) direct 
ownership; or (B) ownership of the majority of the voting securi-
ties of a corporation or other concern which (i) owns or (ii) leases 
a synthetic fuel project: Provided, That "control" shall not be 
deemed to result from the ownership of operating assets of a 
synthetic fuel project which are leased back in accordance with 
subsection (c). 
(e) Any control of synthetic fuel projects obtained pursuant to 
subsection (b) or (c) must be disposed of within not more than five 
years after the date of the acquisition of such control. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 665 
UNLAWFUL CONTRACTS 
SEC. 138. Sections 431 and 432 of title 18, United States Code, shall 4
2 use 8738. 
apply to all contracts, instruments, or agreements of the Corporation, 
other than those contracts, instruments, or agreements of the Corpo-
ration which are exempted from the application of such sections by 
section 433 of such title, as if the Corporation were an agency of the 
United States. Such contracts, instruments, or agreements include 
financial assistance, advances, discounts and rediscounts, accept-
ances, releases, and substitution of security, together with extensions 
or renewals thereof. 
FEES 
SEC. 139. (a) The Corporation may charge and collect fees in 42 use 8739. 
connection with the financial assistance provided pursuant to this 
part: Provided, That such fees shall not exceed 1 per centum of the 
amount of such financial assistance. Fees received by the Corporation 
may be applied against the administrative expenses of the Corpora-
tion related to providing financial assistance and probable losses. 
(b) The Corporation shall prescribe and collect an annual fee in 
connection with each loan guarantee provided pursuant to this part 
of one-half of 1 per centum of the amount of such loan guarantee. 
Sums realized from such loan guarantee fees shall be deposited in the 
Energy Security Reserve and shall be used solely to meet obligations 
arising from default by a recipient of financial assistance under this 
part. 
DISPOSITION OF SECURITIES 
SEC. 140, The Corporation shall, as soon as practicable, sell in 4
2 use 8740. 
public or private transactions all or any part of the notes, bonds, or 
any other evidences of indebtedness (except for the instrument of 
indebtedness received by the Corporation for any loan pursuant to 
section 132) of any other person ownership of which is acquired by the 
Corporation pursuant to this part: Provided, That, in the case of 
joint 
ventures pursuant to section 136 and Corporation construction proj-
ects, any contract by the Corporation in connection therewith shall 
provide for the disposition, as soon as practicable, of any notes, bonds, 
or other evidences of ownership acquired by the Corporation pursu-
ant to this part. 
SUBTITLE E—CORPORATION CONSTRUCTION PROJECTS 
CORPORATION CONSTRUCTION AND CONTRACTOR OPERATION 
SEC. 141. (a) Subject to the requirements of section 126(aKlXD), 4
2 use 874i. 
section 126(a)(3), and section 142, the Corporation is authorized to Ante, p. 644. 
own synthetic fuel projects, and the Corporation shall contract for the 
construction and operation of any such synthetic fuel proiect (herein-
after referred to as a "Corporation construction project ): Provided, 
That, prior to the approval of a comprehensive strategy pursuant to 
section 126(c), the Corporation may undertake such projects only if, in 
the judgment of the Board of Directors, the Corporation construction 
project is necessary to meet the objectives of section 126(aX2) and 
would not otherwise be constructed with financial assistance 
av/arded under subtitle D. 
94 STAT. 666 
PUBLIC LAW 96-294—JUNE 30, 1980 
(b) The power of the Corporation to own and contract for the 
construction and operation of a Corporation construction project 
shall include, among other things, the authority to— 
(1) take delivery of synthetic fuel from such project; 
(2) transport and store and have processed and refined such 
S5Tithetic fuel; 
(3) subject to section 172(d), sell such sjnithetic fuel to a person; 
and 
(4) take all actions reasonably necessary therewith: Provided, 
That to the maximum extent feasible, the Corporation shall 
utilize the private sector for the activities associated with this 
subsection. 
(c) Contracts for Corporation construction projects shall be negoti-
ated on the basis of solicited bids pursuant to section 127: Provided, 
That any such contracts shall be expressly contingent upon the 
availability of sufficient funds. 
(d) If, after undertaking a Corporation construction project, the 
Board of Directors determines that the total revised estimated cost of 
such Corporation construction project will exceed the initial 
estimated cost specified in the contract pursuant to subsection (c), the 
Board of Directors may, in its sole discretion, amend, modify, or 
renegotiate such contract to cover such additional costs; except that, 
if the revised estimated cost exceeds 175 per centum of the initial 
estimated cost, the Corporation shall not make such amendment, 
modification, or renegotiation unless the Corporation has transmit-
ted to the Congress a Corporation S3aithetic fuel action pursuant to 
section 128 and such Corporation synthetic fuel action has not been 
disapproved. 
(e) The Corporation is authorized to undertake contractual agree-
ments with, among others, any Federal department or agency 
(including the Department of Energy, the United States Army C!orps 
of Engineers, and the Tennessee Valley Authority) to provide the 
design, the construction, or the management of the operation of 
Corporation construction projects: Provided, That in the case of a 
Federal department or agency, such department or agency has the 
available, experienced personnel to perform such project manage-
ment function. 
UMITATIONS ON CORPORATION CONSTRUCTION PROJECTS 
42 use 8742. 
SEC. 142. (a) Prior to the approval of a comprehensive strategy 
Ante, p. 644. 
pursuant to section 126(c), the Corporation is authorized not more 
than three Corporation construction projects subject to the require-
ments of sections 126(aXlXD) and 141. 
(b) After the approval of a comprehensive production strategy 
pursuant to section 126(c), the Corporation shall not undertake any 
new, or expand any existing. Corporation construction project. 
ENVIRONMENTAL, LAND USE, AND SITING MATTERS 
42 use 8743. 
SEC. 143. (a) Corporation construction projects and joint ventures 
by the Corporation pursuant to section 136 shall be subject to all 
Federal and nondiscriminatory State and local environmental, land 
use, and siting laws to the same extent as such laws apply to privately 
sponsored synthetic fuel projects receiving financial assistance under 
this part and other similarly situated and used property. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 667 
(b) CJontracts for the construction or operation of any Corporation 
construction project shall provide for the monitoring of the environ-
mental and health related emissions from the construction and 
operation of such project. Such monitoring shall be conducted in 
accordance with a plan developed by the contractor after consulta-
tion with the Administrator of the Environmental Protection Agency 
and the Secretary of Energy. 
PROJECT REPORTS 
SEC, 144. Within three years of the initial operation of each 
Corporation construction project, the Corporation shall publish a 
report providing detailed information including— 
(1) whether the S3mthetic fuel product can be sold at a price 
which is competitive with imported crude oil; 
(2) whether such technology can be operated on a commercial 
scale in compliance with applicable environmental require-
ments, including the Federal Water Pollution Control Act (33 
U.S.C. 1151-1175) and the Clean Air Act ( 42 U.S.C. 7400 et seq.); 
(3) the effect on regional and local water supplies of the project 
and the commercial operation of such technology; 
(4) the health effects on workers and other persons of the 
project including any carcinogenic effects; and 
(5) the social and economic impacts on local communities 
which were most directly affected by such project. 
Publication. 
42 u s e 8744. 
FINANCIAL RECORDS 
SEC. 145. Recipients of contracts under this subtitle shall keep such 42 use 8745. 
records and other pertinent documents as the Corporation shall 
prescribe, including records which fully disclose the disposition of the 
proceeds of such assistance, the cost of any Corporation construction 
project and such other records as the Corporation may require to 
facilitate an effective audit. The Corporation and the Comptroller Accessibility. 
General of the United States or their duly authorized representatives 
shall have access, for the purpose of audit, to such records and other 
directly pertinent documents. 
SUBTITLE F—CAPITAUZATION AND FINANCE 
OBUGATIONS OF THE CORPORATION 
SEC. 151. (aXD Subject to the limitations in section 152 and to the 42 use 8751. 
extent provided in advance in appropriation Acts, the Corporation is 
authorized to issue, solely to the United States of America acting by 
and through the Secretary of the Treasury (who shall purchase 
within five days of each such issuance and retain), notes or other 
obligations of the Corporation in the aggregate principal amount of 
$20,000,000,000-
(A) plus such sums as are authorized pursuant to section 126; 
and 
(B) less such sums— 
(i) as are obligated for purposes of carrying out the provi-
sions of section 305 of the Defense Production Act of 1950 Ante, p. 619. 
before the date determined under section 305(k)(l) of the 
Defense Production Act of 1950 or are required to be 
retained as a reserve against a contingent obligation in-
94 STAT. 668 
PUBLIC LAW 96-294—JUNE 30, 1980 
curred before such date under such section, up to a maxi-
mum of $3,000,000,000; and 
(ii) as are obligated from the Energy Security Reserve by 
the Department of Energy pursuant to the Federal Non-
Nuclear Energy Research and Development Act of 1974 
(Public Law 93-577; 42 U.S.C. 5901 et seq.), up to a maximum 
of $2,208,000,000. 
(2) Such aggregate principal amounts shall become available to the 
Corporation upon the date of enactment of this part or under 
Ante, p. 644. 
paragraph (1)(A) upon satisfying the requirements of section 126. 
(b) The Corporation shall not issue any note or other obligation to 
the Secretary of the Treasury without prior consultation with the 
Secretary of the Treasury. 
UMITATIONS ON TOTAL AMOUNT OF OBUGATIONAL AUTHORITY 
42 use 8752. 
SEC. 152. (a) The Corporation may not incur obligations or make 
commitments, including administrative expenses pursuant to section 
120 and operating expenses, in excess of the aggregate principal 
amount of $20,000,000,000— 
(1) plus such sums, if any, as are authorized pursuant to section 
126; and 
(2) less such sums— 
(A) as are obligated for purposes of 
carrying out section 305 
of the Defense Production Act of 1950 before the date 
determined under section 305(kXl) of the Defense Produc-
Ante, p. 619. 
tion Act of 1950 or are required to be reteiined as a reserve 
against a contingent obligation incurred before such date 
under such section, up to a maximum of $3,000,000,000; and 
(B) as are obligated from the Energy Security Reserve by 
the Department of Energy pursuant to the Federal Non-
Nuclear Energy Research and Development Act of 1974 
(Public Law 93-577; 42 U.S.C. 5901 et seq.) up to a maximum 
of $2,208,000,000. 
(b)(1) For purposes of determining the Corporation's compliance 
with this section— 
(A) loans shall be counted at the initial face value of the loan 
plus such amounts as are subsequently obligated pursuant to 
section 132(aX3); 
(B) loan guarantees shall be counted at the initial face value of 
such loan guarantee (including any amount of interest which is 
guaranteed under such loan guarantee) plus such amounts as are 
subsequently obligated pursuant to section 133(aX3); 
(C) price guarantees and purchase agreements shall be valued 
by the Corporation as of the date of each such contract, based 
upon the Corporation's estimate of its maximum potential 
liability; 
(D) joint ventures and Corporation construction projects shall 
be valued at the current estimated cost to the Corporation, as 
determined smnually by the Corporation; and 
(E) any increase in the liability of the Corporation pursuant to 
any amendment or other modification to a contract for a loan, 
loan guarantee, price guarantee, purchase agreement, joint ven-
ture, or Corporation construction project shall be counted. 
(2) Determinations made under paragraph (1) shall be made in 
accordance ^vith generally accepted accounting principles, consist-
ently applied. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 669 
(3) If more than one form of financial assistance is to be provided to 
any one synthetic fuel project or if the financial assistance agreement 
provides a right to the Corporation to purchase the S5^thetic fuel 
project, then the obligations and commitments thereunder shall be 
valued at the maximum potential exposure on such project at any 
time during the life of such project. 
(c) Any commitment by the Corporation to provide financial 
assistance or make capital expenditures which is nullified or voided 
for any reason shall not be considered in the aggregate for the 
purpose of 
subsection (a). 
BUDGETARY TREATMENT 
SEC. 153. The obligations and outlays incurred by the Secretary of 42 use 8753. 
the Treasury in connection with the purchase of notes and other 
obligations of the Corporation shall be included in the totals of the 
Budget of the United States Government. The receipts and disburse-
ments of the Corporation in the discharge of its functions shall be 
presented annually in the Budget of the United States Government 
but shall not be included in the totals of 
the Budget. 
RECEIPTS OF THE CORPORATION 
SEC. 154. (a) Subject to the limitations contained in section 152, 42 use 8754. 
moneys of the Corporation, other than those received pursuant to 
sections 139(b) and 151, shall be used to defray administrative 
expenses and, to the extent that surplus is available thereafter, to 
provide financial assistance pursuant to subtitle D. In the event that 
additional surplus is available thereafter such additional surplus 
shall, when authorized by the Board of Directors, be used in the 
purchase for redemption and retirement of any notes or other 
obligations of 
the Corporation. 
(b) Moneys of the Corporation not otherwise employed shall be— 
(1) deposited with the Treasury of the United States subject to 
withdrawal by the Corporation by check drawn on the Treasury 
of the United States by a Treasury disbursing officer; or 
(2) with approval of the Secretary of the Treasury, deposited in 
any Federal Reserve bank. 
(c) In the event that moneys of the Corporation, including moneys 
received pursuant to sections 139(b) and 151, exceed the limitation set 
forth in section 152, such surplus shall be deposited as miscellaneous 
receipts in the general fund of the Treasury of the United States. 
(d) Not later than 10 calendar days after the end of each fiscal Report. 
quarter, the Corporation shall submit a written report to the Secre-
tary of the Treasury detailing all moneys received by the Corporation 
during the previous fiscal quarter. Such reports shall be incorporated 
in the quarterly and annual reports required under section 177. 
TAX STATUS 
SEC. 155. (a) The Corporation, its franchise, capital, reserves, 42 use 8755. 
surplus, income, and intangible property shall be exempt from all 
taxation now or hereafter imposed by the United States, or by any 
State, county, municipality, or local taxiing authority, except that— 
(1) any real property owned in fee by the Corporation shall be 
subject to State, territorial, county, municipal, or other local 
taxation to the same extent, according to its value, as other 
94 STAT. 670 
PUBLIC LAW 96-294—JUNE 30, 1980 
similarly situated and used real property, without discrimina-
tion in the valuation, classification, or £issessment thereof; 
(2) the Corporation and its employees shall be subject to any 
nondiscriminatory payroll and employment taxes intended to 
finance benefits based upon emplo3maent (such as social security 
and unemployment benefits) to the same extent as any privately 
owned corporation; and 
(3) with respect to any Corporation construction project under-
taken pursuant to subtitle E, the Corporation shall be subject to 
any nondiscriminatory tax levied or imposed by any State, 
county, municipality, or local taxing authority on— 
(A) the extraction or severance of minerals owned or 
leased by the Corporation; and 
(B) the purchase or lease of tangible personal property, 
(b) With respect to any loan or debt obligation which is (1) issued 
after the enactment of this part by, or on behalf of, any State or any 
political subdivision or governmental entity thereof, (2) guaranteed 
or otherwise secured by the Corporation prior to the approval of a 
Ante, p. 644. 
Comprehensive strategy under section 126(c), and (3) not supported by 
the full faith and credit of the issuer as a general obligation of the 
issuer, the interest paid on such obligation and received by the 
purchaser thereof (or the purchaser's successors in interest) shall be 
included in gross income for the purposes of chapter 1 of the Internal 
26 use 1 et seq. Revenue Code of 1954: Provided, That with respect to the amount of 
such obligations that the issuer would have been able to issue as tax 
exempt obligations (other than obligations secured by the full faith 
and credit of the issuer as a general obligation of the issuer), the 
Corporation is authorized to pay only to the issuer any portion of the 
interest on such obligations, as determined by the Secretary of the 
Treasury after taking into account the interest rate which would 
have been paid on the obligations had they been issued as tax exempt 
obligations without being so guaranteed or otherwise secured by the 
Corporation and the interest rate actually paid on the obligations 
when issued as taxable obligations. Such payments shall be made in 
amounts determined by the Corporation, and in accordance with such 
terms and conditions as the Secretary of the Treasury shall require. 
SUBTITLE G—UNLAWFUL ACTS, PENALTIES, AND SUITS AGAINST THE 
CORPORATION 
FALSE STATEMENTS 
42 use 8761. 
SEC. 161. Whoever makes any false statement, knowing or having 
reason to believe it to be false, or whoever knowingly overvalues any 
security, for the purpose ox obtaining for himself or for any applicant 
any financial assistance under this part, extension thereof by 
renewal, deferment of action, or otherwise, or the acceptance, release, 
or substitution of security therefor, or for the purpose of influencing 
in any way the action of the Corporation or for the purpose of 
obtaining money, property, contract rights, or an3i:hing of value, 
under this part, shall be punished by a fine of not more than $5,000 or 
by imprisonment for not more than two years, or both. 
FORGERY 
42 use 8762. 
SEC. 162. V/hoevsr— 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 671 
(1) falsely makes, forges, or counterfeits any agreement, instru-
ment, contract, or other obligation or thing of value, which 
purports to have been issued by the Corporation; or 
(2) passes, utters, or publishes, or attempts to pass, utter, or 
publish, any false, forged, or counterfeited agreement, instru-
ment, contract, or other obligation or thing of value, which 
purports to have been issued by the Corporation, knowing the 
same to be false, forged, or counterfeited; or 
(3) falsely alters any agreement, instrument, contract, or other 
obligation or thing of value, issued by the Corporation; or 
(4) passes, utters, or publishes, or attempts to pass, utter, or 
publish, as true, any falsely altered agreement, instrument, 
contract, or other obligation or thing of value, issued by the 
Corporation, knowing the same to be falsely altered, 
shall be punished by a fine of not more than $10,000 or by imprison-
ment for not more than five years, or both. 
MISAPPROPRIATION OF FUNDS AND UNAUTHORIZED ACTIVITIES 
SEC. 163. (a) Whoever— 
42 use 8763. 
(1) embezzles, extracts, purloins, or willfully misapplies any 
moneys, funds, securities, or other things of value, whether 
belonging to it or pledged or otherwise entrusted to the Corpora-
tion; 
(2) makes any false entry in any book, report, or statement of 
or to the Corporation or, without being duly authorized, draws 
any bond, other obligation, draft, bill of exchange, mortgage, 
judgment, or decree thereof, with intent to defraud the Corpora-
tion, any other body politic or corporate, or any individual, or to 
deceive any officer, auditor, or examiner of the Corporation; 
(3) participates in, shares in, or receives directly or indirectly 
any money, profit, property, or benefit through any transaction, 
loan, commission, contract, or any other act of the Corporation, 
with intent to defraud; or 
(4) gives to any person any unauthorized information concern-
ing any future action or plan of the Corporation, or having such 
knowledge invests or speculates, directly or indirectly, in the 
securities or property of any company, bank, or corporation, 
receiving financial assistance from the Corporation, 
shall be punished by a fine of not more than $10,000 or by imprison-
ment for not more than five years, or both. With respect to paragraph 
(4), the Corporation is authorized to obtain injunctive relief against 
the threatened misuse of information. 
O
t
>
) Whoever falsely assumes or pretends to be a Director, officer, or 
employee acting under authority of the Corporation, and acts as such, 
or in such pretended character demands or obtains any money, paper, 
document, or thing of value, shall be fined not more than $1,000 or 
imprisoned not more than three years, or both. 
CONSPIRACY 
SEC. 164. If two or more persons conspire to commit any of the acts 42 use 8764. 
made unlawful by section 161,162, or 163, each such person shall be 
fined or imprisoned, or both, as if such person committed the 
unlawful acts. 
79-194 
O—81—pt. 1 
46 : QL3 
94 STAT. 672 
PUBLIC LAW 96-294—JUNE 30, 1980 
INFRINGEMENT ON NAME 
42 use 8765. 
SEC. 165. (a) No person or other government entity may use the 
words "United States Synthetic Fuels Corporation" or a combination 
of these words in a manner which is likely to mislead or deceive. 
(b) A violation of this section may be enjoined at the suit of the 
Corporation. 
ADDITIONAL PENALTIES 
42 use 8766. 
SEC. 166. In addition to any penalties imposed as a result of a 
violation of any provision of this subtitle or section 138, the Corpora-
tion shall have the authority to bring an action to recover damages 
for losses incurred by the Corporation or any profit or gain acquired 
by the defendant as a result of a violation of any section of this 
subtitle. 
SUITS BY THE ATTORNEY GENERAL 
42 use 8767. 
SEC. 167. (a) If the Corporation shall engage in or adhere to any 
action, practices, or policies inconsistent with the the provisions of 
this part, or if the Corporation or any other person shall violate any 
provision of this part or shall obstruct or interfere with any activities 
authorized by this part, or shall refuse, fail, or neglect to discharge 
the duties and responsibilities under this part, or shall threaten any 
such violation, obstruction, interference, refusal, failure, or neglect, 
the district court of the United States for any district in which such 
Corporation or such other person resides or may be found shall have 
jurisdiction, except as otherwise prohibited by law, upon petition of 
the Attorney General of the United States, or upon petition of the 
Comptroller General of the United States, to grant such relief as may 
be necessary or appropriate to prevent or terminate such conduct or 
threat. 
(b) Nothing contained in this section shall be construed as relieving 
any person of any punishment, liability, or sanction which may be 
imposed otherwise than under this part. 
(c) Nothing in this section shall be deemed or construed to prevent 
the enforcement of the other provisions of this part by appropriate 
officers of the United States. 
CIVIL ACTIONS AGAINST THE CORPORATION 
42 use 8768. 
SEC. 168. District courts of the United States constituted under 
28 use 81 ef seq. chapter 5 of title 28, United States Code, and courts constituted under 
section 22 of the Organic Act of Guam (48 U.S.C. 1424), section 21 of 
the Revised Organic Act of the Virgin Islands (48 U.S.C. 1611), section 
76A Stat. 51. 
1 of title 3 of the Canal Zone Code, and the first section of the Act 
entitled "An Act to create the District Court for the Northern 
Mariana Islands, implementing article IV of the Covenant to Estab-
lish a Commonwealth of the Northern Mariana Islands in Political 
Union with the United States of America", approved November 8, 
48 use 1694. 
1977 (91 Stat. 1265), shall have original jurisdiction for all civil 
actions against the Corportion: Provided, however. That the Federal 
Tort Claims Act (28 U.S.C. 2671 et seq.) shall apply to the Corporation 
as if it were a Federal agency and any judgment or compromised 
claim resulting from any action thereunder shall be paid by the 
Corporation from its funds: And provided further. That the Corpora-
tion shall be liable for contract claims only if such claims are based 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 673 
upon a written contract to which the Corporation is an executing 
party. The liability of the Corporation shall be limited to the assets of 
the Corporation. 
SUBTITLE H—GENERAL PROVISIONS 
GENERAL POWERS 
SEC. 171. (a) In carrying out the provisions of this part, the 42 use 8771. 
Corporation shall have the power, consistent with the provisions of 
this part— 
(1) to adopt, alter, and rescind bylaws and to adopt and alter a 
corporate seal, which shall be judicially noticed; 
(2) to make agreements and contracts with persons and private 
or governmentel entities: Provided, however, That the Corpora-
tion shall not provide any financial assistance except as specifi-
cally permitted under this part; 
(3) to lease, purchase, accept gifts or donations of, or otherwise 
to acquire, and to own, hold, improve, use, or otherwise deal in or 
with, and to sell, convey, mortgage, pledge, lease, exchange, or 
otherwise dispose of, any property, real, personal, or mixed, or 
any interest therein; 
(4) to sue and be sued, subject to the provisions of section 168, in 
its corporate name and to complain and defend in any court of 
competent jurisdiction; 
(5) to represent itself, or to contract for representation, in all 
judicial, legal, and other proceedings, except actions cognizable 
under the Federal Tort Claims Act (28 U.S.C. 2671 et seq.), in 
which actions it will be represented by the Attorney General; 
(6) subject to section 117, to select, employ, and fix the compen- Ante, p. 638. 
sation (including, without limitation, pension plans, health bene-
fits, incentive compensation plans, paid vacation, sick leave, and 
other fringe benefits) of such officers, employees, attorneys, and 
agents as shall be necessary for the transaction of the business of 
the Corporation; 
(7) to make provision for and designate such committees, and 
the functions thereof, as the Board of Directors may deem 
necessary or desirable; 
(8) to indemnify Directors and officers of the Corporation, as 
the Board of Directors may deem necessary or desirable; 
(9) with the approval of the agency concerned, to make use of 
services, facilities, and property of any board, commission, inde-
pendent establishment, or executive agency or department of the 
executive branch in canying out the provisions of this part and 
to pay for such use, such payments to be credited to the 
applicable appropriation that incurred the expense; 
(10) to determine and prescribe the manner in which obliga-
tions of the Corporation shall be incurred and its expenses 
allowed and paid; 
(11) to obtain the services and fix the compensation of experts; 
(12) to use the United States mails on the same terms and 
conditions as the executive departments of the United States 
Government; and 
(13) to exercise all other lawful powers necessarily or reason-
ably related to the establishment of the Corporation, to carry out 
the provisions of this part and the exercise of its powers, 
purposes, functions, duties, and authorized activities. 
94 STAT. 674 
PUBLIC LAW 96-294—JUNE 30, 1980 
(b) Tlie foregoing powers shall only be exercised in connection with, 
as authorized by this part, administrative activities, financial assist-
ance, and Corporation construction projects and, notwithstanding 
any other provision of law, the Corporation shall have no legal 
authority, power, or purpose pursuant to this part or any other law to 
engage in any other activities of a business, commercial, financial, or 
investment nature or perform any other governmental function; and 
any violation of this subsection shall be punished by— 
(1) a fine of not more than $10,000 or by imprisonment for not 
more than five years, or both; 
(2) additional penalties pursuant to section 166; and 
(3) relief pursuant to section 167. 
(c) In addition to the powers granted under subsections (a) and (b), 
and only in connection with Corporation construction projects, the 
Corporation is authorized to exercise the power of eminent domain in 
the United States district court for the district in which the real 
property is located to acquire interests in real property, including 
property owned by any State or local government body or entity or 
any Indian tribe, in the following cases: (1) when it is necessary to 
provide access to the site of a Corporation construction project for 
site-related transportation, power transmission, and other services, 
and (2) when it is necessary to construct a pipeline to transport 
synthetic fuel from a Corporation construction project to the nearest 
pipeline: Provided, That such power shall not be exercised to acquire 
property for the site of any Corporation construction project, or 
property for any coal slurry pipeline except within the immediate 
vicinity of the site of such a project: Provided further. That the 
Corporation may acquire property or interests in property by emi-
nent domain only upon a finding by its Board of Directors that the 
property in question is necessary for a Corporation construction 
project and that no other alternative property is reasonably availa-
ble. These findings of the Board of Directors shall not be subject to 
judicial review in £iny court. 
COORDINATION WITH FEDERAL ENTITIES 
42 use 8772. 
SEC. 172. (a) Prior to awarding, or making any commitment to 
award, financial assistance for any sjnithetic fuel project, the Corpo-
ration may seek the advice and recommendations of, or information 
or data maintained by, any Federal department or agency to assist 
the Corporation in determinations to be made hereunder. Any such 
advice, recommendation, information, or data, to the extent permit-
ted by law, shall be provided to the Corporation within thirty days of 
its request: Provided, however. That where such information or data 
comprises a trade secret, or confidential or proprietary data, the 
Corporation shall agree to receive such data under the same terms of 
confidentiality agreed to by the agency involved. 
Ot)) The Secretary of Energy is authorized to provide such technical 
assistance to the Corporation as is necessary to carry out the 
provisions of this part. 
(c) The Corporation and the Secretary of Energy are authorized and 
directed, in accordance with applicable law, to exchange technical 
information relating to S3Tithetic fuel development. 
(dXD The Corporation is authorized and directed to consult with 
the Secretary of Defense in order to identify those national defense 
fuel supply requirements which may be achieved under this part. 
Such consultation shall include identification of the technical specifi-
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 675 
cations for particular fuels and such other information as may be 
necessary to facilitate the production of 
synthetic fuel under this part 
for the purposes of national defense. 
(2) With regard to any synthetic fuel which may be acquired by the 
Corporation through purchase agreements, joint ventures, or Corpo-
ration construction projects, the Corporation shall offer to sell such 
fuels first to the Department of Defense for national defense needs in 
accordance with such terms and conditions as the Corporation and 
the Secretary of Defense may provide by contract. 
PATENTS 
SEC. 173. (a) Any contract to provide financial assistance under 4
2 use 8773. 
subtitle D in the form of a loan, a loan guarantee, or a joint venture Ante, p. 654. 
may, in the judgment of the Board of Directors, require that when-
ever any invention is made or conceived in the course of or under 
such contract, title to the patent for such invention shall vest in the 
Corporation. The Corporation shall have the right to license the 
patent on a nonexclusive basis. 
(bXD The Corporation may grant a nonexclusive license for the use 
of any invention for which it holds the patent but it may not grant an 
exclusive or partially exclusive license except as provided in para-
graph (2). 
(2) The Corporation is authorized to grant an exclusive or partially 
exclusive license for the use of any invention for which it holds the 
patent to a responsible applicant or applicants, upon terms reason-
able under the circumstances, on the basis of competitive bids and 
following an opportunity for a hearing, upon notice in the Federal 
Register thereof to the public, only when, in the judgment of the 
Board of Directors, such exclusive or partially exclusive license is 
necessary to assure substantial utilization of such invention within a 
reasonable time. 
(c) Each exclusive or partially exclusive license for the use of an 
invention granted under subsection (b) shall contain such terms and 
conditions as the Corporation may determine to be appropriate for 
the protection of the interests of the United States and the general 
public, including provision for the Corporation, commencing two 
years after the grant of a license pursuant to subsection (b), to 
terminate such license if (1) it has not been applied to the commercial-
ization of domestic energy resources or (2) steps have not been taken 
as necessary to assure substantial utilization of 
such invention within 
a reasonable time. 
(d) Loan or loan guarantee agreements entered into pursuant to 
sections 132 and 133, respectively, shall include such terms and 
conditions consistent with this subsection with respect to patents as 
the Corporation deems appropriate to protect the interests of the 
Corporation in the case of default. Such agreements shall require in 
the case of default that all patents, technology, and other proprietaiy 
rights resulting from the synthetic fuel project shall be available to 
the Corporation or its designee, to complete and operate the default-
ing project. Such agreements shall contain a provision specifying that 
other patents, tecnnology, and other proprietary rights owned by the 
borrower which are necessary for the purpose of completion and 
operation of the synthetic fuel project shall be licensed to the 
Corfwration and its designees on equitable terms, including due 
consideration to the amount of the default payments due to the 
Corporation. 
94 STAT. 676 
PUBLIC LAW 96-294—JUNE 30, 1980 
(e) Patents, technology, and proprietary rights vested in the Corpo-
ration as a result of defeult on a loan or loan guarantee agreement or 
vested in the Corporation pursuant to subsection (a) shall be trans-
ferred to the Secretary of Energy for administration under applicable 
law upon termination and liquidation of the Corporation. 
(f)(1) Any contract entered into by the Corporation pursuant to 
subtitle E shall be subject to subsections (a) through (m) of 
section 9 of 
the Federal Non-Nuclear Energy Research and Development Act of 
Definitions. 
1974 (42 U.S.C. 5908 (a) through (m)). In applying such subsections to 
^nte, p.665. 
subtitle E— 
(A) the term "Administrator" in such subsections shall mean 
the Chairman of 
the Board of 
Directors; 
(B) the term "Administration" in such subsections shall mean 
the Corporation; 
(C) the term "United States" in such subsections shall mean 
the Corporation; 
(D) the term "Government" in subsections (a) and (d) of such 
sections shall include the Corporation for purposes of such 
subsection; and 
(E) the term "any Government agency" in subsection (hX2) of 
such section shall mean the United States. 
(2) Section 9 of the Federal Non-Nuclear Energy Research and 
42 use 5908. 
Development Act of 1974 shall not apply to finemcial assistance 
Ante, p. 654. 
granted pursuant to subtitle D. 
(g) The United States Government shall have a royalty-free, nonex-
clusive license to any invention in which the Corporation owns title 
or reserves a license pursuant to subsection (a). The Corporation may 
assign title to any invention in which it has the title to the United 
States Government. 
SMALL AND DISADVANTAGED BUSINESS UTILIZATION 
42 use 8774. 
SEC. 174. In providing financial assistance, the Corporation shall 
require the recipient thereof to provide for the fair and reasonable 
participation by small and disadvantaged businesses in the synthetic 
fuel project receiving financial assistance and the Corporation shall 
do so with respect to Corporation construction projects under 
Ante, p. 665. 
subtitle E. 
RELATIONSHIP TO OTHER LAWS 
42 use 8775. 
SEC. 175. (a) No Federal law shall apply to the Corporation as if it 
were an agency or instrumentality of the United States, except as 
expressly provided in this part. 
(b) No action of the Corporation except the construction and 
operation of synthetic fuel projects pursuant to subtitle E shall be 
deemed to be a "major Federal action significantly affecting the 
quality of the human environment" for purposes of section 102(2XC) 
42 use 4332. 
of the National Environmental Policy Act of 1969, and with respect to 
Corporation construction projects, the Corporation shall be deemed to 
be a Federal agency for the purposes of such Act. 
(c) The provisions of 
the Act entitled "An Act Relating to the rate of 
wages for laborers and mechanics employed on public buildings of the 
United States and the District of Columbia by contractors and 
subcontractors, and for other purposes", approved March 3,1931 (40 
U.S.C. 276a et seq.) and commonly known as the Davis-Bacon Act, and 
41 use 351 note, the provisions of the Service Contracts Act shall apply to the 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 677 
Corporation as if it were an agency of the United States. All laborers 
and mechanics employed for the construction, repair, or alteration of 
sjnithetic fuel projects funded, in whole or in part, by the Corporation 
pursuant to section 132,133, or 136 of this part shall be paid wages at ^"APo^ ^^^' 
rates not less than tliose prevailing on projects of a similar character 
in the locality as determined by the Secretary of Labor in accordance 
with the Act commonly known as the Davis-Bacon Act. The Corpora- 40 use 276a 
tion shall not extend any loan or loan guarantee for construction, note. 
repair or alteration of a synthetic fuel project unless a certification is 
provided to the Corporation prior to the commencement of construc-
tion, or at the time of filing an application for a loan or loan 
guarantee if construction has already commenced, that these labor 
standards will be maintained at the S3nithetic fuel project. The 
Secretary of Labor shall have, with respect to the labor standards 
specified in this subsection, the authority and functions set forth in 
Reorganization Plan Numbered 14 of 1950 and section 276c of title 40. 5 use app. 
(d) The securities laws of the United States as defined in section 
21(g) of the Securities Exchange Act of 1934 (15 U.S.C. 78u(g)) shall 
apply to the Corporation as if it were an agency or instrumentality of 
the United States. 
(e) The antitrust laws, as defined in section 12 of title 15, United 
States Code, shall apply to the Corporation as if it were an agency of 
the United States. 
(f) The Government Corporation Control Act (31 U.S.C. 841 et seq.) 
shall not apply with respect to the Corporation. 
(g) Except to the extent expressly provided herein, the Corporation 
shall not be deemed to be an agency of the United States or an 
instrumentality of the United States. 
(h) The Longshoremen's and Harbor Workers' Compensation Act 
shall apply with respect to the injury and disability or death resulting 
from injury as defined in section 2(2) of such Act occurring to any 33 use 902. 
Director, officer, or employee of the Corporation. 
(i) Nothing in this part shall be deemed to limit the powers of the 
Energy Mobilization Board with respect to a sjmthetic fuel project or 
synthetic fuel project module receiving financial assistance under 
this part or Corporation construction projects. 
(jXD For purposes of section 211(b) of the Powerplant and Indus-
trial Fuel Use Act of 1978 (92 Stat. 3300), a petitioner under such 42 use 8321. 
section shall be deemed to have made the demonstrations required by 
section 211CD)(1) and section 2110t)X2) of such Act if he has entered into 
a legally valid agreement with a qusilified producer of synthetic fuel 
for the future delivery of sufficient quantities of synthetic fuel to be 
used at the facility for which the exemption is sought. The submission 
to the Secretary of Energy of evidence of the existence of such a 
legally valid agreement also shall be deemed to satisfy the require-
ment of section 2110)) of such Act that the petitioner file and 
maintain a compliance plan satisfying the requirements of section 
2140b) of such Act. 
(2) For purposes of paragraph (1), a person shall be deemed to be a 
"qualified producer of S3mthetic fuel" if he received financial assist-
ance in the form of a loan, loan guarantee, purchsise agreement, or 
price guarantee pursuant to subtitle D. 
Ante, p. 654. 
(3) In addition, in order to constitute a "legally valid agreement" 
for purposes of paragraph (1), the agreement with the qualified 
sjnithetic fuel producer must provide for the intitial delivery of 
synthetic fuel within the period of time during which such facility is 
exempted pursuant to section 211(e) of such Act. 
94 STAT. 678 
PUBLIC LAW 96-294—JUNE 30, 1980 
42 use 8321. 
(4) For purposes of section 211(b) of such Act, an extension or 
renewal under section 211(e)(1) of such Act or section 211(e)(2)(B) of 
such Act may be granted at the time the original exemption is issued 
or at any subsequent date. 
(5) Nothing in this subsection shall be construed to relieve the 
petitioner from compliance with subtitle A of title II of the Power-
42 use 8311. 
plant and Industrial Fuel Use Act of 1978. 
(k) This part shall not affect any authority contained in the Defense 
5
0 use app. 
Production Act of 1950. 
2061. 
SEVERABIUTY 
42 use 8776. 
SEC. 176. If any provision of this part, or the application of any such 
provision to any person or circumstance, shall for anj^ reason be 
adjudged by any court of competent jurisdiction to be invalid, the 
remainder of this part, or the application of such provision to persons 
or circumstances other than those to which it is held invalid, shall not 
be affected thereby. 
FISCAL YEAR, AUDITS AND REPORTS 
42 use 8777. 
SEC. 177. (a) The fiscal year of the Corporation shall coincide with 
the fiscal year of the United States Government. 
(bXD The Corporation shall retain a firm or firms of nationally 
recognized public accountants who shall prepare, in accordance with 
generally accepted accounting principles, and report an annual audit 
of the accounts of the Corporation including statements of the t3rpe 
required in section 106 of the Government Corporation Control Act 
(31U.S.C.851). 
(2) The General Accounting Office is authorized to conduct such 
audits of the accounts of the Corporation and to report upon the same 
to the Congress, as the General Accounting Office shall deem neces-
sary or as the Congress may request, but not less than every three 
years. 
(3) All books, accounts, financial records, reports, files, papers, and 
property belonging to or in use by the Corporation sh^l be made 
available to the person or persons conducting the audit for verifying 
transactions. 
(cXD The Corporation shall submit quarterly reports to the Con-
gi-ess and the President. Each report will state the aggregate sums 
then outstanding or committed for financial assistance under subtitle 
D and for Corporation construction projects under subtitle E, and a 
summary of any financial assistance retired or any synthetic fuel 
project liquidated by the Corporation pursuant to subtitle I. Each 
report shall contain a list of the concerns receiving financial assist-
ance involved in Corporation construction projects. 
(2) The quarterly report in which any expenditure or commitment 
to a concern or synthetic fuel project is first noted shall contain a 
brief description of the factors considered by the Corporation in 
making such expenditure or commitment. The report shall include 
(A) financial statements prepared in accordance with generally 
accepted accounting principles, consistently applied, as of the end of 
the Corporation's fiscal quarter preceding the date of the report and 
(B) compensation of persons employed or under contract by the 
Corporation at salary rates exceeding $2,500 per month. 
(dXD Not later than 120 days after the end of each fiscal year, the 
Corporation shall submit to the Congress and the President an 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 679 
annual report containing, in addition to the information required in 
the quarterly report required under subsection (cX2), (A) a general 
description of the Corporation's operations during the year, (B) a 
specific description of each synthetic fuel project in which the 
Corporation is involved, (C) a status report on each such project, and 
(D) an evaluation of the contribution which the project has made and 
is expected to make in fulfilling the purposes of this title (including, 
where possible, a precise statement of the amount of domestic energy 
produced or to be produced thereby). 
(2) The annual report shall describe progress made toward meeting 
the purposes (including the national synthetic fuel production goal 
established in section 125) of this title and contain specific recommen- Ante, p. 644. 
dations on what actions the Congress could take in order to facilitate 
the work of the Corporation in achieving the purposes of this title. 
The annual report shall address the environmental impacts of the 
Corporation's generic programs and decisions. 
(3) The annual report shall contain financial statements prepared 
by the Corporation in accordance with generally accepted accounting 
principles, consistently applied, and certified by the accountants 
retained under section (b)(1). 
(e) On or before September 30,1990, the Corporation shall submit to 
the Congress ,and the President a report evaluating the overall 
impact made by the Corporation and describing the status of each 
then current synthetic fuel project. This report shall contain a 
liquidation plan. The liquidation plan shall describe how each syn-
thetic fuel project, and every substantial asset or liability of the 
Corporation, will be liquidated, terminated, satisfied, sold, trans-
ferred, or otherwise disposed of Each annual report thereafter made 
by the Corporation will describe the progress made in carrying out 
such liquidation plan. 
WATER RIGHTS 
SEC. 178. (a) Nothing in this part shall (1) affect the jurisdiction of 42 use 8778. 
the States and the United States over waters of any stream or over 
any ground water resource, (2) alter, amend, repeal, interpret, 
modify, or be in conflict with any interstate compact made by any 
States, or (3) confer upon any non-Federal entity the ability to 
exercise any Federal right to the waters of any stream or to any 
ground water resource. 
O
t
>
) No project constructed pursuant to the authorities of this part 
shall be considered to be a Federal project for purposes of the 
application for or assignment of water rights. 
WESTERN HEMISPHERE PROJECTS 
SEC. 179. (a) The Corporation is authorized to transmit a Corpora- 42 use 8779. 
tion synthetic fuel action under section 128 relating to an award of Ante, p. 650. 
financial assistance pursuant to subtitle D for not to exceed two Ante, p. 654. 
synthetic fuel projects located in the Western Hemisphere outside 
the United States. If such Corporation synthetic fuel action is not 
disapproved by either House during the period specified in section 
128, the Corporation shall be authorized to award such financial 
assistance. 
O
b
) The Corporation may use the authority of subsection (a) if the 
Corporation determines that— 
(1) the project will use a class of resource that is located in the 
United States but that such class of resource will not be subject to 
94 STAT. 680 
PUBLIC LAW 96-294—JUNE 30, 1980 
Ante, p. 644. 
timely commercial production in the United States even if the 
Corporation provided financial assistance; 
(2) the project will receive financial assistance from the govern-
ment of the country in which the project is located; 
(3) the synthetic fuel produced by such project will be available 
to users in the United States in quantities the Corporation 
determines to be equitable considering the nature and amounts 
of financial assistance; and 
(4) all technology, patents, and trade secrets developed in 
connection with such project shall be available to citizens of the 
United States through rights in the Corporation or through 
licensing at reasonable cost for use in the United States, 
(c) There is authorized for the purpose of this section not to exceed 
10 percent of the aggregate obligational authority under section 
152(a). Such authorization shall terminate upon approval of the 
comprehensive production strategy pursuant to section 126(c). 
42 u s e 8780. 
Report and 
recommenda-
tions. 
COMPLETION GUARANTEE STUDY 
SEC. 180. The Corporation shall conduct a study of supplemental 
financial protection for lenders including completion guarantees and 
other mechanisms to ascertain the desirability of employing such 
mechanisms to enlarge the number of potential participants in the 
synthetic fuel development program. A report on such study and 
recommendations based thereon shall be included in the comprehen-
sive strategy submitted under section 12603). 
SUBTITLE I—DISPOSAL OF ASSETS 
42 u s e 8781. 
Notice. 
Publication in 
Federal 
Register. 
Notification to 
President, 
Senate 
committee and 
Speaker of the 
House. 
TANGIBLE ASSETS 
SEC. 181. (aXD The Corporation, by and through its Board of 
Directors, is authorized, from time to time, on the basis of the criteria 
of subsection Ot)), to dispose of any portion or all of the tangible assets 
of the Corporation when such disposal is in the best interests of the 
Corporation for purposes of carrying out the provisions of this part 
either— 
(A) on the basis of competitive bids, by selling to any person or 
concern any portion of the assets of the Corporation; or 
(B) by transferring to a Federal agency of any portion or all of 
the tangible assets of the Corporation; or 
(C) on the basis of a negotiated contract, consistent with 
paragraph (2), by selling to a person or concern any portion or all 
of the tangible assets of the Corporation. 
(2) With regard to the sale of tangible assets pursuant to subsection 
(a)(1)(C), the Corporation shall— 
(A) publish in the Federal Register notice of the proposed sale 
of such asset; 
(B) convene a prospective bidders conference; and 
(C) no earlier than thirty days after such notice and confer-
ence, undertake negotiations for the sale of such asset. 
(3) At least thirty days prior to the disposal of any tangible asset 
pursuant to paragraph (1), the Corporation shall notify the President, 
the Senate Committee on Energy and Natural Resources and the 
Speaker of the House of Representatives of the intended disposal of 
such tangible asset. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 681 
(b) For the purpose of this section, the term "tangible asset" means "Tangible asset." 
any single asset, or aggregation of assets, with a value of $1,000,000 or 
more. 
(c) In establishing the acceptable terms and conditions of 
the sale or 
transfer of tangible assets constituting a synthetic fuel project, or 
portion thereof, or a CJorporation construction project, or portion 
thereof, the Board of Directors shall make every reasonable effort— 
(1) to recover the financial investment, if any, of the C!orpora-
tion in such assets; 
(2) to foster competition within the industry to which the assets 
are to be sold; and 
(3) to assure that such assets will be productively utilized and, 
if possible, will continue in operation. 
(d) With regard to the sale or transfer of tangible assets not 
included under subsection (c), the Corporation shall establish terms 
and conditions for the sale or transfer of such tangible assets in order 
to achieve the greatest financial return to the Corporation. 
DISPOSAL OF OTHER ASSETS 
SEC. 182. Except as provided for in section 181, the Corporation is 42 use 8782. 
authorized, from time to time, (1) consistent with the requirements of 
the Federal Property and Administrative Services Act, to sell to any 
person any portion of the assets of the Corporation, or (2) transfer to a 
Federal agency any portion or all of the assets of the Corporation. 
SUBTITLE J—TERMINATION OP CORPORATION 
DATE OF TERMINATION 
SEC. 191. Notwithstanding any other provision of this title— 42 use 8791. 
(1) the Corporation shall msdce no new awards or commitments 
for financial assistance under subtitle D for synthetic fuel Ante, p. 654. 
projects after September 30,1992; and 
(2) the Corporation shall terminate on September 30, 1997: 
Provided, however, That the President, on recommendation of 
the Board of Directors, may by Executive order terminate the 
Corporation at an earlier date, but in no event prior to Septem-
ber 30,1992. 
TERMINATION OF THE CORPORATION'S AFFAIRS 
SEC. 192. (a) On and after the final commitment date under section 
42 use 8792. 
191(1), the Board of Directors shall diligently commence all practical 
and reasonable steps to achieve an orderly termination of the 
Corporation's affairs on or prior to its date of termination pursuant to 
section 191(2). 
O
t
)
) The steps taken pursuant to subsection (a) may include the 
disposal of the tangible assets of the Corporation pursuant to section 
181 and the disposal of 
other assets pursuant to section 182. 
(c) On termination of the Corporation, any contract or obligation 
for financial assistance pursuant to subtitle D shall be administered 
pursuant to section 193. 
TRANSFER OF POWERS TO DEPARTMENT OF THE TREASURY 
SEC. 193. (a) If, on the date of termination of the Corporation, its 42 use 8793. 
Board of Directors shall not have completed the termination of its 
94 STAT. 682 
PUBLIC LAW 96-294—JUNE 30, 1980 
affairs and the liquidation of its assets pursuant to subtitle I, the duty 
of completing such winding up of its affairs and liquidation shall be 
transferred to the Secretary of the Treasury, who for such purposes 
shall succeed to all the powers, duties, rights, and obligations of the 
Corporation, its Board of Directors and Chairman under this part and 
nothing herein shall be construed to affect any right or privilege 
accrued, any penalty or liability incurred, any criminal or civil 
proceeding commenced, or any authority conferred hereunder, 
except as herein specifically provided in connection with such termi-
nation of the affairs and liquidation of the remaining assets of the 
Corporation. Following such transfer, the Secretary of the Treasury 
may assign to any officer or officers of the United States in the 
Treasury Department the exercise and performance, under such 
Secretary's general supervision and direction, of any powers, duties, 
rights, and obligations so transferred from the Corporation to the 
Secretary. 
(b) When the Secretary of the Treasury finds that the liquidation of 
any remaining assets will no longer be advantageous to the United 
States and that all of the legal obligations of the Corporation have 
been provided for, the Secretary shall pay into the general fund of the 
Treasury as miscellaneous receipts the unused balance of the moneys 
belonging to the Corporation and shall make a final report on the 
Corporation to the Congress. Thereupon the Corporation shall be 
deemed to be dissolved. 
SUBTITLE K—DEPARTMENT OF THE TREASURY 
AUTHORIZATIONS 
42 use 8795. 
SEC. 195. (a)(1)(A) There is hereby authorized to be appropriated 
without fisced year limitation to the Secretary of the Treasury to 
purchase and retain notes and other obligations of the Corporation, 
$20,000,000,000— 
(i) plus such sums, if any, as are authorized pursuant to section 
126; and 
(ii) less such sums— 
(I) as are obligated for purposes of carrying out the 
provisions of section 305 of the Defense Production Act of 
Ante, p. 619. 
1950 before the date determined under section 305(kXl) of 
the Defense Production Act of 1950 or are required to be 
retained as a reserve against a contingent obligation in-
curred before such date under such section, up to a maxi-
mum of $3,000,000,000; and 
(II) as are obligated from the Energy Security Reserve by 
the Department of Energy pursuant to the Federal Non-
Nuclear Energy Research and Development Act of 1974 
(Public Law 93-577, 42 U.S.C. 5901), up to a maximum of 
$2,208,000,000. 
(B) Such moneys shall be deposited in the Energy Security Reserve 
established in the Treasury of the United States by the Department 
of the Interior and Related Agencies Appropriation Act, 1980 (93 Stat. 
954; Public Law 96-126), which account, and the appropriations 
therefor, shall be available to the Secretary of the Treasury for the 
purpose of carrying out the purposes of this title. The appropriations 
and authorities provided for alternative fuels production in such 
appropriations Act are hereby authorized without fiscal year limita-
tion. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 683 
(2) On the basis of each notification by the Corporation made 
pursuant to section 131(k)(2) to the Secretary of the Treasury of an 
award of financial assistance by the Corporation, and consistent with 
the provisions of section 152, the Secretary of the Treasury shall 
reserve within the Energy Security Reserve an amount equal to the 
amount determined pursuant to section 131(kXl). 
(3) Upon receipt of notification from the Corporation under section 
131(kX2), the Secretary of the Treasury, within 15 calendar days, 
shall certify to the Corporation that the amount required by para-
graph (2) has been reserved within the Energy Security Reserve. 
(b) For purposes of purchasing the obligations of the Corporation 
pursuant to subsection (a), the Secretary of the Treasury is author-
ized to use as a public debt transaction the proceeds from the sale of 
any securities hereafter issued under the Second Liberty Bond Act 
(31 U.S.C. 752 et seq.), and the purposes for which securities may be 
issued under such Act are extended to include such purchases. 
(c) All redemptions, purchases, and sales by the Secretary of the 
Treasury of such obligations under this section shall be treated as 
public debt transactions of the United States. 
TITLE II-BIOMASS ENERGY AND ALCOHOL FUELS 
Biomass Energy 
and Alcohol 
SHORT TITLE 
[j|^s ^^^ °f 
SEC. 201. This title may be cited as the "Biomass Energy and 4
2 use 880i 
Alcohol Fuels Act of 1980". 
"ote. 
FINDINGS 
SEC. 202. The Congress 
finds 
that— 
42 use ssoi. 
(1) the dependence of the United States on imported petroleum 
and natural gas must be reduced by all economically and envi-
ronmentally feasible means, including the use of biomass energy 
resources; and 
(2) a national program for increased production and use of 
biomass energy that does not impair the Nation's ability to 
produce food and fiber on a sustainable basis for domestic and 
export use must be formulated and implemented within a multi-
ple-use framework. 
DEFINITIONS 
SEC. 203. As used in this title— 
42 use 8802. 
(1) The term "alcohol" means alcohol (including methanol and 
ethanol) which is produced from biomass and which is suitable 
for use by itself or in combination with other substances as a fuel 
or as a substitute for petroleum or petrochemical feedstocks. 
(2)(A) The term "biomass" means any organic matter which is 
available on a renewable basis, including agricultural crops and 
agricultural wastes and residues, wood and wood wastes and 
residues, animal wastes, municipal wastes, and aquatic plants. 
(B) For purposes of subtitle A, such term does not include 
municipal wastes; and for purposes of subtitle C, such term does 
not include aquatic plants and municipal wastes. 
(3) The term "biomass fuel" means any gaseous, liquid, or solid 
fuel produced by conversion of 
biomass. 
(4) The term "biomass energy" means— 
(A) biomass fuel; or 
94 STAT. 684 
PUBLIC LAW 96-294—JUNE 30, 1980 
(B) energy or steam derived from the direct combustion of 
biomass for the generation of electricity, mechanical power, 
or industrial process heat. 
(5) The term "biomass energy project" means any facility (or 
portion of a facility) located in the United States which is 
primarily for— 
(A) the production of biomass fuel (and byproducts); or 
(B) the combustion of biomass for the purpose of generat-
ing industrial process heat, mechanical power, or electricity 
(including cogeneration). 
(6) The term "Btu" means British thermal unit. 
(7) The term "cogeneration" means the combined generation 
by any facility o
f
— 
(A) electrical or mechanical power, and 
(B) steam or forms of useful energy (such as heat) which 
are used for industrial, commerciaJ, heating, or cooling 
purposes. 
(8) The term "cooperative" means any agricultural association, 
as that term is defined in section 15(a) of the Act of 
June 15,1929, 
as amended (46 Stat. 18; 12 U.S.C. 1141j), commonly known as the 
Agricultural Marketing Act. 
(9)(A) The term "construction" means— 
(i) the construction or acquisition of any biomass energy 
project; 
(ii) the conversion of any facility to a biomass energy 
project; or 
(iii) the expgmsion or improvement of any biomass energy 
project which increases the capacity or efficiency of that 
facility to produce biomass energy. 
(B) Such term includes— 
(i) the acquisition of equipment and machinery for use in 
or at the site of a biomass energy project; and 
(ii) the acquisition of land and improvements thereon for 
the construction, expansion, or improvement of such a 
project, or the conversion of a facility to such a project. 
(C) Such term does not include the acquisition of any facility 
which was operated as a biomass energy project before the 
acquisition. 
(10) The term "Federal agency" means any Executive agency, 
as defined in section 105 of title 5, United States Code. 
(IIXA) The term "financial assistance" means any of the 
following forms of financial assistance provided under this title, 
or any combination of such forms: 
(i) loans, 
(ii) loan guarantees, 
(iii) price guarantees, and 
(iv) purchase agreements. 
(B) Such term includes any commitment to provide such 
assistance. 
(12) The term "Indian tribe" means any Indian tribe, band, 
nation, or other organized group or community, including any 
Alaska Native village or regional or village corporation as 
defined in or established pursuant to the Alaska Native Claims 
Settlement Act which is recognized as eligible for the special 
programs and services provided by the United States to Indians 
because of their status as Indians. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 685 
(13) The term "motor fuel" means gasoline, kerosene, and 
middle distillates (including diesel fuel). 
(14XA) The term "municipal waste" means any organic matter, 
including sewage, sewage sludge, and industrial or commercial 
waste, and mixtures of such matter and inorganic refuse— 
(i) from any publicly or privately operated municipal 
waste collection or similar disposal system, or 
(ii) from similar waste flows (other than such flows which 
constitute agricultural wastes or residues, or wood wastes or 
residues from wood harvesting activities or production of 
forest products). 
(6) Such term does not include any hazardous waste, as 
determined by the Secretary of Energy for purposes of this title. 
(15)(A) The term "municipal waste energy project" means any 
facility (or portion of a facility) located in the United States 
primarily for-
(i) the production of biomass fuel (and byproducts) from 
municipal waste; or 
(ii) the combustion of municipal waste for the purpose of 
generating steam or forms of useful enei^, including indus-
trial process heat, mechanical power, or electricity (includ-
ing cogeneration). 
(B) Such term includes any necessary transportation, prepara-
tion, and disposal equipment and machinery for use in or at the 
site of 
the facility involved. 
(16) The term "Office of Alcohol Fuels" means the Office of 
Alcohol Fuels established under section 220. 
(17) The term "person" means any individual, company, coop-
erative, partnership, corporation, association, consortium, unin-
corporated organization, trust, estate, or any entity organized for 
a common business purpose, any State or local government 
(including any special purpose district or similar governmental 
unit) or any agency or instrumentality thereof, or any Indian 
tribe or tribal organization. 
(18) The term "State" means any of 
the fifty States, the District 
of Columbia, the Commonwealth of Puerto Rico, the Virgin 
Islands of the United States, Guam, American Samoa, the 
Commonwealth of the Northern Mariana Islands, and the Trust 
Territory of 
the Pacific Islands. 
(19) The term "small scale biomass energy project" means a 
biomass energy project with an anticipated annual production 
capacity of not more than 1,000,000 gallons of ethanol per year, 
or its energy equivalent of other forms of biomass energy. 
FUNDING FOR SUBTITLES A AND B 
SEC. 204. (a) To the extent provided in advance in appropriation Appropriation 
Acts, for the two year period beginning October 1, 1980, there is authorization. 
authorized to be appropriated and transferred $1,450,000,000 from ^2 use 8803. 
the Energy Security Reserve established in the Treasury of the 
United States under title II of the Act entitled "An Act making 
appropriations for the Department of the Interior and related agen-
cies for the fiscal year ending September 30, 1980, and for other 
, 
purposes" (Public Law 96-126; 93 Stat. 970) and made available for 
obligation by such Act only to the extent provided in advance in 
appropriation Acts, as follows: 
94 STAT. 686 
PUBLIC LAW 96-294—JUNE 30, 1980 
(1) $600,000,000 to the Secretary of Agriculture for carrying out 
activities under subtitle A, except of the amount of the financial 
assistance provided by the Secretary of Agriculture under sub-
title A, up to one-third shall be for small-scale biomass energy 
projects; 
(2) $600,000,000 to the Secretary of Energy for carrying out 
biomass energy activities under subtitle A, of which at least 
$500,000,000 shall be available to the Office of Alcohol Fuels for 
carrying out its activities, and any amount not made available to 
the Office of Alcohol Fuels shall be available to the Secretary to 
carry out the purposes of subtitle A under available authorities 
of the Secretary, including authorities under subtitle A; and 
(3) $250,000,000 shall be available to the Secretary of Energy 
for carrying out activities under subtitle B. 
(h) Funds made available under subsection (a) shall remain availa-
ble until expended. 
(c)(1) For purposes of determining the amount of such appropri-
ations which remain available for purposes of this title— 
(A) loans shall be counted at the initial face value of the loan; 
(B) loan guarantees shall be counted at the initial face value of 
such loan guarantee; 
(C) price guarantees and purchsise agreements shall be counted 
at the value determined by the Secretary concerned as of the 
date of each such contract based upon the Secretary's determina-
tion of the maximum potential liability of the United States 
under the contract; and 
(D) any increase in the liability of the United States pursuant 
to any amendment or other modification to a contract for a loan, 
loan guarantee, price guarantee, or purchase agreement, shall be 
counted to the extent of such increase. 
(2) Determinations under paragraph (1) shall be made in accord-
ance with generally accepted accounting principles, consistently 
applied. 
(3) If more than one form of financial assistance is to be provided to 
any one project, the obligations and commitments thereunder shall 
be counted at the maximum potential exposure of the United States 
on such project at any time during the life of such project. 
(4) Any commitment to provide financial assistance shall be treated 
the same as such assistance for purposes of this subsection; except 
that any such commitment which is nullified or voided for any reason 
shall not be considered for purposes of this subsection. 
(d) Financial assistance may be provided under this title only to the 
extent provided in advance in appropriation Acts. 
COORDINATION WITH OTHER AUTHORITIES AND PROGRAMS 
42 use 8804. 
SEC. 205. The authorities in this title are in addition to and do not 
modify (except to the extent expressly provided for in this title) 
authorities and programs of the Department of Energy and of the 
Department of Agriculture under other provisions of law. 
SUBTITLE A—GENERAL BIOMASS ENERGY DEVELOPMENT 
BIOMASS ENERGY DEVELOPMENT PLANS 
Transmittal to 
SEC. 211. (a) Not later than 180 days after the date of the enactment 
President and 
©
f this Act, the Secretary of Agriculture and the Secretary of Energy 
Congress. 
42 u s e 8811. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 687 
Transmittal to 
President and 
Congress. 
shall jointly prepare, and transmit to the President and the Congress, 
a plan for maximizing in accordance with this subtitle biomass 
energy production and use. Such plan shall be designed to achieve a 
total level of alcohol production and use within the United States of 
at least 60,000 barrels per day of alcohol by December 31, 1982. 
(b)(1) Not later than January 1,1982, the Secretary of Agriculture 
and the Secretary of Energy shall jointly prepare, and transmit to the 
President and the Congress, a comprehensive plan for maximizing in 
accordance with this subtitle biomass energy production and use, for 
the period beginning January 1,1983, and ending December 31,1990. 
Such plan shall be designed to achieve a level of alcohol production 
within the United States equal to at least 10 percent of the level of 
gasoline consumption within the United States as estimated by the 
Secretary of Energy for the calendar year 1990. 
(2) The plan prepared under this subsection shall evaluate the Evaluation. 
feasibility of reaching the goals set forth in such subsection. 
(c) The plans prepared under subsections (a) and (b) shall each 
include guidelines for use in awarding financial assistance under this 
subtitle which are designed to increase, during the period covered by 
the plan, the amount of motor fuel displaced by biomass energy. 
Guidelines for 
financial 
assistance. 
PROGRAM RESPONSIBIUTY AND ADMINISTRATION; EFFECT ON OTHER 
PROGRAMS 
SEC. 212. (a)(1) Except as provided in paragraph (2), in the case of 42 use 8812. 
any financial assistance under this subtitle for a biomass energy 
project, the Secretary concerned shall be— 
(A) the Secretary of Agriculture, in the case of any biomass 
energy project which will have an anticipated annual production 
capacity of less than 15,000,000 gallons of ethanol (or the energy 
equivalent of other forms of biomass energy) and which will use 
feedstocks other than aquatic plants; and 
(B) the Secretary of Energy, in the case of any biomass energy 
project which will use aquatic plants as feedstocks or which will 
have an anticipated annual production capacity of 15,000,000 
gallons or more of ethanol (or the energy equivalent of other 
forms of biomass energy). 
(2)(A) Either the Secretary of Agriculture or the Secretary of 
Energy may be the Secretary concerned in the case of any biomass 
energy project which will have an anticipated annual production 
capacity of 15,000,000 gallons or more of ethanol (or the energy 
equivalent of other forms of biomass energy) and— 
(i) which will use wood or wood wastes or residue, or 
(ii) which is owned and operated by a cooperative and will use 
feedstocks other than aquatic plants. 
(B) Financial assistance may not be provided by either Secretary 
under subparagraph (A) without the written concurrence of the other 
Secretary. Such concurrence shall be granted or denied by such 
Secretary in accordance with subparagraph (C) and on the same 
standards as that Secretary applies in making his own awards of 
financial assistance under this paragraph. 
(C)(i) In the case of a project described in subparagraph (A), the Review of 
Secretary concerned shall provide the other Secretary a copy of the project. 
application and such supporting information as may be material, and 
shall provide the other Secretary at least 15 days to review the 
project. If during such 15-day period the reviewing Secretary provides 
written notification to the Secretary concerned specifying reasons 
79-194 
O - 8 1 - p t . 1 
47 : QL3 
94 STAT. 688 
PUBLIC LAW 96-294—JUNE 30, 1980 
why such project should not proceed, the Secretary concerned shall 
defer the fined decision on the application for an additional 30 days. 
During such 30-day period, both Secretaries shall attempt to reach 
agreement regarding all issues raised in the written notice. Before 
the end of the 30-day period, the reviewing Secretary shall notify the 
Secretary concerned of his decision regarding concurrence. If the 
reviewing Secretary fails to provide such notice before the end of such 
period, concurrence shall be deemed to have been given. 
Reappiication 
(ii) The projcct applicant may reapply for financial assistance for 
for financial 
such project, after making such modifications to the project as may be 
assistance. 
neccssary to address issues raised by the reviewing Secretary in the 
original notice of objection. The subsequent review of such project by 
the reviewing Secretary shall be limited to the issues originally 
raised by the reviewing Secretary and any issues raised by changed 
circumstances. 
(D) Both Secretaries may jointly act as the Secretary concerned in 
accordance with such procedures as the Secretaries may jointly 
prescribe, in which case— 
(i) subparagraphs (B) and (C) and subsection (c) shall not apply, 
and 
(ii) the proportion of financial assistance provided by each 
Secretary shall be determined in accordance with the procedures 
jointly prescribed. 
(bXD Each Secretary shall take such action as may be necessary to 
assure that— 
(A) guidelines for soliciting and receiving applications for 
financial assistance are established within 90 days after the date 
of 
the enactment of 
this Act; 
(B) applications for financial assistance for biomass energy 
projects are initially solicited within 30 days after such guide-
lines are established; 
(C) additional applications for financial assistance are solicited 
within 1 year after the date of 
the initial solicitation; 
(D) any application is evaluated and a decision made on such 
application within 120 days after the receipt of the application, 
including review under subsections (aX2XC), (aX2XD), or (c); and 
(E) all interested persons are provided the easiest possible 
access to the application process, including procedures which 
assure that— 
(i) information concerning financial assistance from either 
Secretary is available through all appropriate offices of the 
Department of Agriculture and the Department of Energy, 
and other regional and local offices of the Federal Govern-
ment, as may be appropriate; 
(ii) all such locations where such information is available 
will be able to accept and file applications, and will forward 
them to the Secretary concerned; and 
(iii) the procedures established for accepting, evaluating, 
and awarding financial assistance will provide for categories 
of biomass energy projects, according to size and provide to 
the maximum extent practicable the simplest procedures for 
small producers. 
(2) The procedural requirements of subparagraphs (A) through (D) 
of paragraph (1) shall not apply to either Secretary to the extent that 
the Secretary finds that other procedures are adopted for the solicita-
tion, evaluation, and awarding of financial assistance which will 
result in applications being processed more expeditiously. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 689 
(c)(1) After evaluating any application and before awarding any 
financial assistance on the bsisis of that application, the Secretary 
concerned shall provide the other Secretary with— 
(A) a copy of the application and such supporting material as 
may be appropriate, and 
(B) an opportunity of not less than 15 days to review the 
application. 
This subsection shall not apply in the case of a project subject to 
review under subsection (a)(2XC). 
(2) If the reviewing Secretary provides written notice specifying 
any issues regarding matters subject to the Secretary's review to the 
Secretary concerned before the end of the 15-day review period, the 
Secretary concerned shall defer a final decision on the application for 
an additional 30 days to provide an opportunity for both Secretaries 
to answer and resolve such issues. At the expiration of the 30-day 
period, the Secretary concerned may make a final decision with 
respect to the application, using the best judgment of the Secretary 
concerned to resolve any remaining issues. 
(3) Reviews of projects under the provisions of subsection (a)(2)(C) or 
paragraph (1)(B) by the Secretary of Agriculture shall be for the 
purpose of considering the national, regional, and local agricultural 
policy impacts of such project on agricultural supply, production, and 
use, and reviews by the Secretary of Energy under such provisions 
shall be for the purpose of considering national energy policy impacts 
and the technical feasibility of the project. 
(4) The Secretary of Agriculture and the Secretary of Energy may 
jointly establish categories of projects to which paragraphs (1) and (2) 
shall not apply. Within 90 days after the date of the enactment of this 
Act, the Secretaries shall identify potential categories and make an 
initial determination of exempted categories. 
(d) If any application for financial assistance under this subtitle is 
disapproved, the applicant shall be provided written notice of the 
reasons for the disapproval. 
(eXD The functions assigned under this subtitle to the Secretary of 
Agriculture may be carried out by any of the administrative entities 
in the Department of Agriculture which the Secretary of Agriculture 
may designate. Within 30 days after the date of the enactment of this 
Act, the Secretary of Agriculture shall make such designations and 
notify the Congress of the administrative entity or entities so desig-
nated and the officials in such administrative entity or entities who 
are to be responsible for such functions. 
(2) The Secretary of Agriculture may issue such regulations as are Regulations 
necessary to carry out functions assigned to the Secretary of Agricul-
ture under this subtitle. 
(3) The entities or entity designated under paragraph (1) shall 
coordinate the administration of functions assigned to it under this 
subsection with any other biomass energy programs within the 
Department of Agriculture established under other provisions of law. 
(0 The functions under this subtitle which are assigned to the 
Secretary of Energy and which relate to alcohol production shall be 
carried out by the Office of Alcohol Fuels. 
(g) For purposes of this subtitle, the quantity of any biomass energy 
which is the energy equivalent to 15,000,000 gallons of ethanol shall 
be prescribed jointly by the Secretary of Agriculture and the Secre-
tary of Energy within 30 days after the date of the enactment of this 
Act. 
Notice of 
disapproval. 
Administrative 
entities. 
Notification to 
Congress. 
94 STAT. 690 
PUBLIC LAW 96-294—JUNE 30, 1980 
INSURED LOANS 
42 use 8813. 
SEC. 213. (a) Subject to sections 212 and 217, the Secretary of 
Agriculture may commit to make, and make, insured loans in 
amounts not to exceed $1,000,000 per project for the construction of 
sm£ill-scale biomass energy projects, 
(bXl) Any insured loan under this section— 
(A) may not exceed 90 per centum of the total estimated cost of 
construction of the biomass energy project involved, and 
(B) shall bear interest at rates determined by the Secretary of 
Agriculture, taking into consideration the current average 
market yield on outstanding marketable obligations of the 
United States with remaining periods to maturity comparable to 
the average maturities of such loans, plus not to exceed one per 
centum, as determined by the Secretary of Agriculture, and 
adjusted to the nearest one-eighth of one per centum. 
(2) In the event the total estimated costs of construction of the 
project thereafter exceed the total estimated costs initially deter-
mined by the Secretary of Agriculture, the Secretary may in addition, 
upon application therefor, make an insured loan for so much of the 
additional estimated total costs as does not exceed 10 per centum of 
the total costs initisdly estimated. 
(c)(1) The Secretary of Agriculture shall make insured loans under 
this section using, to the extent provided in advance in appropri-
ations Acts, the Agricultural Credit Insurance Fund in section 309 of 
7 use 1929. 
the Consolidated Farm and Rural Development Act or the Rural 
7 use 1929a. 
Development Insurance Fund in section 309A of such Act (herein-
after in this section referred to as the "Funds"). The Secretary of 
Agriculture may not use an aggregate amount of funds to make or 
commit to make insured loans under this section in excess of the 
aggregate gunount for insured loans and administrative costs appro-
Terms and 
priated and transferred under section 204. The terms, conditions, and 
conditions. 
requirements applicable to such insured loans shall be in accordance 
with this subtitle. 
(2) There shall be reimbursed to the Funds, from appropriations 
made under section 204, amounts equal to the operating and adminis-
trative costs incurred by the Secretary of Apiculture in insuring 
loans under this section. 
(3) Notwithstanding any provision of the Consolidated Farm and 
7 use 1921 note. Rural Development Act, no funds made available to the Secretary of 
Agriculture under this section for insured loans shall be used for any 
other purpose. 
"Insured loan." 
(4) For Durposes of this section, the term "insured loan" means a 
loan which is made, sold, and insured. 
(d) An insured loan may not be made under this section unless the 
applicant for such loan has established to the satisfaction of the 
Secretary that the applicant is unable without such a loan to obtain 
sufficient credit elsewhere at reasonable rates and terms, taking into 
consideration prevailing private and cooperative rates and terms for 
loans for similar purposes and periods of time, to finance the 
construction of the biomass ener^ project for which such loan is 
sought. 
LOAN GUARANTEES 
42 use 8814. 
SEC. 214. (a) Subject to sections 212 and 217, the Secretary con-
cerned may comnut to guarantee, and guarantee, against loss of 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 691 
principal and interest, loans which are made to provide funds for the 
construction of biomass energy projects. 
(b)(1) Any guarantee of a loan under this section may not exceed 90 
per centum of the cost of the construction of the biomass energy 
project involved, as estimated by the Secretary on the date of the 
guarantee or commitment to guarantee. 
(2) In the event the construction costs of the project are thereafter 
estimated by the Secretary concerned to exceed the construction costs 
initially estimated by the Secretary, the Secretary may in addition, 
upon application therefor, guarantee, against loss of principal and 
interest, a loan for up to 60 per centum of the difference between the 
construction costs then estimated and the construction costs initially 
estimated. 
(c) Notwithstanding the provisions of the Federal Financing Bank 
Act of 1973 (12 U.S.C. 2281 et seq.) or any other provision of law 
(except £is may be specifically provided by reference to this subsection 
in any Act enacted after the date of the enactment of this Act), no 
debt obligation which is guaranteed or committed to be guaranteed 
by the Secretary of Agriculture or the Secretary of Energy under this 
section shall be eligible for purchase by, or commitment to purchase 
by, or sale or issuance to, the Federal Financing Bank or any Federal 
agency. 
(d) The terms and conditions of loan guarantees under this section 
shall provide that, if the Secretary concerned makes a payment of 
principal or interest upon the default by a borrower, the Secretary 
shall be subrogated to the rights of the recipient of such payment (and 
such subrogation shall be expressly set forth in the loan guarantee or 
related agreements). 
(e) Any loan guarantee under this section shall not be terminated, 
canceled, or otherwise revoked, except in accordance with the terms 
thereof and shall be conclusive evidence that such guarantee com-
plies fully with the provisions of this title and of the approval and 
legality of the principal amount, interest rate, and all other terms of 
the securities, obligations, or loans and of the guarantee. 
(f) If the Secretary concerned determines that— 
(1) the borrower is unable to meet payments and is not in 
default, 
(2) it is in the public interest to permit the borrower to continue 
with such project, and 
(3) the probable net benefit to the United States in paying the 
principal and interest due under the loan will be greater than 
that which would result in the event of a default, 
then the Secretary may pay to the lender under a loan guarantee 
agreement an amount not greater than the principal and interest 
which the borrower is obligated to pay to such lender, if the borrower 
agrees to reimburse the Secretary for such payment on terms and 
conditions, including interest, which the Secretary determines are 
sufficient to protect the financial interests of the United States. 
(g)(1) A loan may not be guaranteed under this section unless the 
applicant for such loan has established to the satisfaction of the 
Secretary concerned that the lender is not willing without such a 
guarantee to extend credit to the applicant at reasonable rates and 
terms, taking into consideration prevailing rates and terms for loans 
for similar purposes and periods of time, to finance the construction 
of the biomeiss energy project for which such loan is sought. 
(2) The Secretary concerned shall ensure that the lender bears a 
reasonable degree of risk in the financing of such project. 
Terms and 
conditions. 
Payment to 
lender, 
conditions. 
94 STAT. 692 
PUBLIC LAW 96-294—JUNE 30, 1980 
PRICE GUARANTEES 
42 use 8815. 
SEC. 215. (a) Subject to sections 212 and 217, the Secretary con-
cerned may commit to guarantee, and guarantee, that the price that 
the owner or operator of any biomass energy project will receive for 
all or part of the production from that project shall not be less than a 
specified sales price determined as of the date of execution of the 
price guarantee or commitment to guarantee. 
(b)(1) No price guarantee under this section may be based upon a 
cost-plus arrangement, or variant thereof, which guarantees a profit 
to the owner or operator involved. 
(2) The use of a cost-of-service pricing mechanism by a person 
pursuant to law, or by a regulatory body establishing rates for a 
regulated person, shall not be deemed to be a cost-plus arrangement, 
or variant thereof, for purposes of paragraph (1). 
(c) Each price guarantee, or commitment to guarantee, which is 
made under this section shall specify the maximum dollar amount of 
liability of the United States under that guarantee. 
(d) If the Secretary determines, in the discretion of the Secretary, 
that— 
(1) a biomass energy project would not otherwise be satisfacto-
rily completed or continued, and 
(2) completion or continuation of such project would be neces-
sary to achieve the purposes of this title, 
the sales price set forth in the price guarantee, and maximum 
liability under such guarantee, may be renegotiated. 
PURCHASE AGREEMENTS 
Conditions. 
SEC. 216. (a) Subject to sections 212 and 217, the Secretary con-
42 use 8816. 
cerned may commit to make, and make, purchase agreements for all 
or part of the biomass energy production of any biomass energy 
project, if the Secretary determines— 
(1) that such biomass energy is of a type, quantity, and quality 
that can be used by Federal agencies; and 
(2) that the quantity of such biomass energy, if delivery is 
accepted, would not exceed the likely needs of Federal agencies. 
Each Secretary concerned shall consult with the other Secretary 
before making any determination under paragraph (2). 
(b) The sales price specified in a purchase agreement under this 
section may not exceed the estimated prevailing market price as of 
the date of delivery, as determined by the Secretary of Energy, unless 
the Secretary concerned determines that such sales price must 
exceed the estimated prevailing market price in order to ensure the 
production of biomass energy to achieve the purposes of this title. 
Requirements. 
(c) The Secretary concerned in entering into, or committing to 
enter into, a purchase agreement under this section shall require— 
(1) assurances that the quality of the biomass energy pur-
chased will meet standards for the use for which such energy is 
purchased; 
(2) assurances that the ordered quantities of such energy will 
be delivered on a timely basis; and 
(3) such other assurances as may reasonably be required, 
(d) The Secretary concerned may take delivery of biomass energy 
pursuant to a purchase agreement under this section if appropriate 
arrangements have been made for its distribution to and use by one 
or more Federal agencies. Any Federal agency receiving such energy 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 693 
Terms and 
conditions. 
shall be charged (in accordance with otherwise applicable law), from 
sums appropriated to such Federal agency, for the prevailing market 
price as of the date of delivery, as determined by the Secretary of 
Energy, for the product which the biomass energy is replacing. 
(e) The Secretary concerned shall consult with the Secretary of Consultation. 
Defense and the Administrator of the General Services Administra-
tion in carrying out this section. 
(f) Each purchase agreement, and commitment to enter into a 
purchase agreement, under this section shall provide that the Secre-
tary concerned retains the right to refuse delivery of the biomass 
energy involved upon such terms and conditions as shall be specified 
in the purchase agreement. 
(g) Each purchase agreement, or commitment to enter into a 
purchase agreement, which is made under this section shall specify 
the maximum dollar amount of liability of the United States under 
that agreement. 
(h) If the Secretary concerned determines, in the discretion of the 
Secretary, that— 
(1) a biomass energy project would not otherwise be satisfacto-
rily completed or continued, and 
(2) completion or continuation of such project would be neces-
sary to achieve the purposes of this title, 
the sales price set forth in the purchase agreement, and maximum 
liability under such agreement, may be renegotiated. 
GENERAL REQUIREMENTS REGARDING FINANCIAL ASSISTANCE 
SEC. 217. (aXD Priority for financial assistance under this subtitle, 42 use 8817. 
and the most favorable financial terms available, shall be provided to 
a person for any biomass energy project that— 
(A) uses a primary fuel other than petroleum or natural gas in 
the production of biomass fuel, such as geothermal energy 
resources, solar energy resources, or wgiste heat; or 
(B) applies new technologies which expand the possible feed-
stocks, produces new forms of biomass energy, or produces 
biomass fuel using improved or new technologies. 
Nothing in this paragraph shall be construed to exclude financial 
assistance for any project which does not use such a fuel or apply such 
a technology. 
(2XA) Financial assistance under this subtitle shall be available for 
a biomass energy project only if the Secretary concerned finds that 
the Btu content of the motor fuels to be used in the facility involved to 
produce the biomass fuel will not exceed the Btu content of the 
biomass fuel produced in the facility. 
(B) In making the determination under subparagraph (A), the 
Secretary concerned shall take into account any displacement of 
motor fuel or other petroleum products which the applicant has 
demonstrated to the satisfaction of the Secretary would result from 
the use of the biomass fuel produced in the facility involved. 
(3) No financial assistance may be provided under this subtitle to 
any person for any biomass energy project if the Secretary concerned 
finds that the process to be used by the project will not extract the 
protein content of the feedstock for utilization as food or feed for 
readily available markets in any case in which to do so would be 
technically and economically practicable. 
(4) Financial assistance may not be provided under this subtitle to 
any person unless the Secretary concerned— 
94 STAT. 694 
PUBLIC LAW 96-294—JUNE 30, 1980 
Byproducts. 
Loan 
repayments. 
Application for 
financial 
assistance. 
Reports; 
recordkeeping 
requirements. 
(A) finds that necessary feedstocks are available and it is 
reasonable to expect they will continue to be available in the 
future, and, for biomass energy projects using wood or wood 
wastes or residues from the National Forest System, there shall 
be taken into account current levels of use by then existing 
facilities; 
(B) has obtained assurance that the person receiving such 
financial assistance will bear a reasonable degree of risk in the 
construction and operation of the project; and 
(C) has determined that the amount of financial assistance 
provided for the project is not greater than is necessary to 
achieve the purposes of this title. 
(5) In providing financial assistance under this subtitle, the Secre-
tary concerned shall give due consideration to promoting competi-
tion. 
(6) In determining the amount of financial assistance for any 
biomass energy project which will yield byproducts in addition to 
biomass energy, the Secretary shall consider the potential value of 
such byproducts and the costs attributable to their production. 
(b) An insured loan may not be made, and a loan guarantee may not 
be issued, under this subtitle unless the Secretary concerned deter-
mines that the terms, conditions, maturity, security, and schedule 
and amounts of repayments with respect to such loan are reasonable 
and meet such standards as the Secretary determines are sufficient to 
protect the financial interests of the United States. 
(cXl) No financial assistance may be provided to any person under 
this subtitle unless an application therefor— 
(A) has been submitted to the Secretary concerned by that 
person in such form and under such procedures as the Secretary 
shall prescribe, consistent with the requirements of this subtitle, 
and 
(B) has been approved by the Secretary in accordance with 
such procedures. 
(2) Each such application shall include information regarding the 
construction costs of the biomass energy project involved, and esti-
mates of operating costs and income relating to that project (includ-
ing the sale of any byproducts from that project). In addition, each 
applicant shall provide— 
(A) access at reasonable times to such other information, and 
(B) such assurances, 
as the Secretary concerned may require. 
(d)(1) Every recipient of financial assistance under this subtitle 
shall, as a condition precedent thereto, consent to such examinations 
and reports regarding the biomass energy project involved as the 
Secretary concerned may require. 
(2) With respect to each biomass energy project for which financial 
assistance is provided under this subtitle, the Secretary shall— 
(A) require from the recipient of financial assistance such 
reports and records relating to that project as the Secretary 
deems necessary; 
(B) prescribe the manner in which such recipient shall keep 
such records; and 
(C) have access to such records at reasonable times for the 
purpose of ensuring compliance with the terms and conditions 
upon which financial assistance is provided. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 695 
(e) All contracts and instruments of the Secretary concerned to 
provide, or providing, for financial assistance shall be general obliga-
tions of the United States backed by its full faith and credit. 
(f) Subject to the conditions of any contract for financial assistance, 
such contract shall be incontestable in the hands of the holder, except 
as to fraud or material misrepresentation on the part of the holder. 
(gXD A fee or fees may be charged and collected by the Secretary 
concerned for any loan guarantee, price guarantee, or purchase 
agreement provided under this subtitle. 
(2) The amount of such fee shall be based on the estimated 
administrative costs and risk of loss, except that such fee may not 
exceed 1 per centum of the amount of the financial assistance 
provided. 
(h) All amounts received by the Secretary of Agriculture or the 
Secretary of Energy as fees, interest, repayment of principal, and any 
other moneys received by either Secretary from activities under this 
subtitle shall be deposited in the Treasury of the United States as 
miscellaneous receipts. The preceding sentence shall not apply to 
insured loans made under section 213. 
Fees. 
REPORTS 
SEC. 218. (a) The Secretary of Agriculture and the Secretary of 
Energy shall each prepare and submit to the President and the 
Congress quarterly reports on their activities under this subtitle. 
(b) Within 120 days after the date of enactment of this Act, the 
Secretary of Energy and the Secretary of Agriculture shall submit to 
the Congress a comprehensive list of all the types of loans, grants, 
incentives, rebates, or any other such private. State, or Federal 
economic or financial benefits now in effect or proposed which can be 
or have been used for production of alcohol to be used as a motor fuel 
or petroleum substitute. 
(cXlXA) The Office of Alcohol Fuels shall submit to the Congress 
and the President annual reports containing a general description of 
the Office's operations during the year and a description and evalua-
tion of each biomass energy project for which financial assistance by 
the Office is then in effect. 
(B) Each annual report shall describe progress made toward meet-
ing the goals of this subtitle and contain specific recommendations on 
what actions the Congress could take in order to facilitate the work of 
the Office in achieving such goals. 
(C) Each annual report under this subsection shall contain finan-
cial statements prepared by the Office. 
(2) On or before September 30, 1990, the Office shall submit to the 
Congress and the President a report evaluating the overall impact 
made by the Office and describing the status of each biomass energy 
project which has received financial assistance under this subtitle 
from the Office. Such report shall contain a plan for the termination 
of the work of the Office. 
Submittal to 
Congress. 
42 u s e 8818. 
List of loans or 
grants for 
alcohol 
production. 
Termination 
plan. 
REVIEW; REORGANIZATION 
SEC. 219. (a) The President shall review periodically the progress of 42 USC 8819. 
the Secretary of Agriculture and the Secretary of Energy in carrying 
out the purposes of this subtitle. 
Ot)) If the President determines it necessary in order to achieve such 
purposes the President may, in accordance with the provisions of 
94 STAT. 696 
PUBLIC LAW 96-294—JUNE 30, 1980 
5 use 901 et seq. chapter 9 of title 5, United States Code, provide for a reorganization, 
including any required realignment of the respective programs of the 
Secretaries under this subtitle. 
42 u s e 8820. 
44 FR 58678. 
Functions. 
Legislative 
recommendation 
or testimony, 
transmittal to 
congressional 
committes. 
ESTABUSHMENT OF OFFICE OF ALCOHOL FUELS IN DEPARTMENT OF 
ENERGY 
SEC. 220. (a) There is hereby established within the Department of 
Energy an Office of Alcohol Fuels (hereinafter in this section referred 
to as the "Office") to be headed by a Director, who shall be appointed 
by the President, by and with the advice and consent of the Senate, 
and who shall be compensated at the rate provided for level IV of the 
Executive Schedule under section 5315 of title 5, United States Code. 
(bXD The Director shall be responsible for carrying out the func-
tions of the Secretary of Energy under this subtitle which relate to 
alcohol, including the terms and conditions of financial assistance 
and the selection of recipients for that assistance, subject to the 
general supervision of the Secretary of Energy. 
(2) The Director shall be responsible directly to the Secretary of 
Energy. 
(c) In each annual authorization and appropriation request, the 
Secretary shall identify the portion thereof intended for the support 
of the Office and include a statement by the Office (1) showing the 
amount requested by the Office in its budgetary presentation to the 
Secretary and the Office of Management and Budget and (2) an 
assessment of the budgetary needs of the Office. Whenever the Office 
submits to the Secretary, the President, or the Office of Management 
and Budget, any formal legislative recommendation or testimony, or 
comments on legislation, prepared for submission to Congress, the 
Office shall concurrently transmit a copy thereof to the appropriate 
committees of Congress. 
(d) The Secretary of Energy, after consultation with the Director, 
shall consult with the Secretary of the Treasury, the Secretary of 
Agriculture, the Secretary of Transportation, the Secretary of Com-
merce, the Administrator of the Community Services Administra-
tion, the Administrator of the Environmental Protection Agency, or 
their appointed representatives, in order to coordinate the programs 
under the Director's responsibility with other programs within the 
Department of Energy and in such Federal agencies, which are 
related to the production of alcohol. 
TERMINATION 
42 use 8821. 
SEC. 221. No insured loan, loan guarantee, price guarantee, or 
purchase agreement may be committed to or made under this subtitle 
after September 30,1984. This section shall not be construed to affect 
the authority of the Secretary concerned to spend funds after such 
date pursuant to any contract for financial assistance made on or 
before that date under this subtitle. 
SUBTITLE B—MUNICIPAL WASTE BIOMASS ENERGY 
Plan prepara-
tion, consulta-
tion. 
42 u s e 8831. 
MUNICIPAL WASTE ENERGY DEVELOPMENT PLAN 
SEC. 231. (a) The Secretary of Energy shall prepare a comprehen-
sive plan for carrying out this subtitle. In the preparation of such 
plan, the Secretary shall consult with the Administrator of the 
Environmental Protection Agency, the Secretary of Commerce, and 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 697 
Transmittal to 
President and 
Congress. 
the head of such other Federal agencies as the Secretary deems 
appropriate. 
(b) Not later than 90 days after the date of the enactment of this 
Act, the Secretary shall transmit the comprehensive plan to the 
President and the Congress. 
(c) The comprehensive plan under this section shall include a Statement. 
statement setting forth— 
(1) the anticipated research, development, demonstration, and 
commercialization objectives to be achieved; 
(2) the management structure and approach to be adopted to 
carry out such plan; 
(3) the program strategies, including detailed milestone goals 
to be achieved; 
(4) the specific funding requirements for individual program 
elements and activities, including the total estimated construc-
tion costs of proposed projects; and 
(5) the estimated relative financial contributions of the Federal 
Government and non-Federal participants in the program. 
(d) Not later than January 1,1982, the Secretary shall prepare and 
submit to the President and the Congress a report containing a 
complete description of any financial, institutional, environmental, 
and social barriers to the development and application of technol-
ogies for the recovery of energy from municipal wastes. 
Report to 
President and 
Congress. 
CONSTRUCTION LOANS 
SEC. 232. (a) Subject to sections 235 and 236, the Secretary of Energy 42 USC 8832. 
may commit to make, and make, loans for the construction of 
municipal waste energy projects. 
OIJXD Any loan under this section— 
(A) may not exceed 80 per centum of the total estimated cost of 
the construction of the municipal waste energy project involved, 
and 
(B) shall bear interest at a rate determined by the Secretary of 
Energy (taking into consideration the current average market 
yield on outstanding marketable obligations of the United States 
with remaining periods to maturity comparable to the average 
maturities of such loans) plus not to exceed one per centum, as 
determined by the Secretary of Energy, and adjusted to the 
nearest one-eighth of one per centum. 
(2) In the event the total estimated costs of construction of the 
project thereafter exceed the total estimated costs initially deter-
mined by the Secretary of Energy, the Secretary may in addition, 
upon application therefor, make a loan for so much of the additional 
estimated costs as does not exceed 10 per centum of the initial total 
estimated costs of construction. 
(c) A loan may not be made under this section unless the person 
applying for such loan has established to the satisfaction of the 
Secretary of Energy that the applicant is unable without such a loan 
to obtain sufficient credit elsewhere at reasonable rates and terms, 
taking into consideration prevailing market rates and terms for loans 
for similar periods of time, to finance the construction of the project 
for which such loan is sought. 
94 STAT. 698 
PUBLIC LAW 96-294—JUNE 30, 1980 
42 u s e 8833. 
Terms and 
conditions. 
Payment to 
lender, 
conditions. 
GUARANTEED CONSTRUCTION LOANS 
SEC, 233. (a) Subject to sections 235 and 236, the Secretary of Energy 
may commit to guarantee, and guarantee, against loss on up to 90 per 
centum of the principal and interest, any loan which is made solely to 
provide funds for the construction of a municipal waste energy 
project and which does not exceed 90 per centum of the cost of the 
construction of the project involved, as estimated by the Secretary on 
the date of the guarantee or commitment to guarantee. 
0)) In the event the total estimated costs of construction of the 
project thereafter exceed the total estimated costs initially deter-
mined by the Secretary of Energy, the Secretary may in addition, 
upon application therefor, guarantee, against loss on up to 90 per 
centum of the principal and interest, a loan for so much of the 
additional estimated total costs as does not exceed 10 per centum of 
the total estimated costs. 
(c) The terms and conditions of loan guarantees under this section 
shall provide that, if the Secretary of Energy makes a payment of 
principal or interest upon the default by a borrower, the Secretary 
shall be subrogated to the rights of the recipient of such payment (and 
such subrogation shall be expressly set forth in the loan guarantee or 
related agreements). 
(d) Any loan guarantee under this section shall not be terminated, 
canceled, or otherwise revoked, except in accordance with the terms 
thereof and shall be conclusive evidence that such guarantee com-
plies fully with the provisions of this title and of the approval and 
legality of the principal amount, interest rate, and all other terms of 
the securities, obligations, or loans and of the guarantee. 
(e) If the Secretary of Energy determines that— 
(1) the borrower is unable to meet payments and is not in 
default, 
(2) it is in the public interest to permit the borrower to continue 
to pursue the purposes of such project, and 
(3) the probable net benefit to the United States in paying the 
principal and interest due under a loan guarantee agreement 
will be greater than that which would result in the event of a 
default, 
then the Secretary may pay to the lender under a loan guarantee 
agreement an amount not greater than the principal and interest 
which the borrower is obligated to pay to such lender, if the borrower 
agrees to reimburse the Secretary/ for such payment on terms and 
conditions, including interest, which the Secretary determines are 
sufficient to protect the financial interests of the United States. 
(f) A loan may not be guaranteed under this section unless the 
applicant for such loan has established to the satisfaction of the 
Secretary of Energy that the lender is not willing without such a 
guarantee to extend credit to the applicant at reasonable rates and 
terms, taking into consideration prevailing market rates and terms 
for loans for similar periods of time, to finance the construction of the 
project for which such loan is sought. 
(g)(1) With respect to any loan or debt obligation which is— 
(A) issued after the date of the enactment of this Act by, or on 
behalf of, any State or any political subdivision or governmental 
entity thereof, 
(B) guaranteed by the Secretary of Energy under this section, 
and 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 699 
(C) not supported by the full faith and credit of the issuer as a 
general obligation of the issuer, 
the interest paid on such obligation and received by the purchaser 
thereof (or the purchaser's successors in interest) shall be included in 
gross income for the purposes of chapter 1 of the Internal Revenue 
Code of 1954. 
26 u s e l et seq. 
(2) With respect to the amount of obligations described in para-
graph (1) that the issuer would have been able to issue as tax exempt 
obligations (other than obligations secured by the full faith and credit 
of the issuer as a general obligation of the issuer), the Secretary of 
Energy is authorized to pay only to the issuer any portion of the 
interest on such obligations, as determined by the Secretary of the 
Treasury after taking into account the interest rate which would 
have been paid on the obligations had they been issued as tax exempt 
obligations without being so guaranteed by the Secretary of Energy 
and the interest rate actually paid on the obligations when issued as 
taxable obligations. Such pajmients shall be made in amounts deter-
mined by the Secretary of Energy, and in accordance with such terms 
and conditions as the Secretary of the Treasury shall require. 
(h)(1) A fee or fees may be charged and collected by the Secretary of Fee charge. 
Energy for any loan guarantee under this section. 
(2) The amount of such fee shall be based on the estimated 
administrative costs and risk of loss, except that such fee may not 
exceed 1 per centum of the maximum of the guarantee. 
PRICE SUPPORT LOANS AND PRICE GUARANTEES 
SEC. 234. (a)(1) In the case of any existing municipal waste energy 42 USC 8834. 
project which produces and sells biomass energy, the Secretary of 
Energy may commit to make, and make, a price support loan in 
amounts determined under paragraph (3) for the operation of such 
project. Payments under any such loan shall be disbursed on an 
annual basis, £is determined (in accordance with paragraph (3)) on the 
basis of the amount of biomass energy produced and sold by that 
project during the 12-month period involved and the type and cost of 
fuel displaced by the biomass energy sold. 
(2XA) In the case of any support loan under this section for an 
existing municipal waste energy project— 
(i) disbursements under such loan may not be made for more 
than 5 consecutive 12-month periods; 
(ii) the amount of the disbursement for the second and any 
subsequent 12-month period for which disbursements are to be 
made under the support loan shall be reduced by an amount 
determined by multipljdng the amount calculated under para-
graph (3) by a factor determined by dividing the number of 12-
month periods for which disbursements are made under the 
support loan into the number of such periods which have elapsed; 
(iii) commencing at the end of the last of such 12-month 
periods, the support loan shall be repayable over a period equal 
to the then remaining useful life of the project (as determined by 
the Secretary) or 10 years, whichever is shorter; and 
(iv) commencing at the end of such last 12-month period, such 
loan shall bear interest at a rate determined by the Secretary of 
Energy (taking into consideration the current average market 
jdeld on outstanding marketable obligations of the United States 
with remaining periods to maturity comparable to the average 
maturities of such loans) plus not to exceed one per centum, as 
94 STAT. 700 
PUBLIC LAW 96-294—JUNE 30, 1980 
Definitions. 
determined by the Secretary of Energy, and adjusted to the 
nearest one-eighth of one per centum. 
(3) The amount of the loan payment to be disbursed under this 
subsection for any year with respect to each type of biomass energy 
produced and sold by an existing municipal waste energy project 
shall be equal to— 
(A)(i) the standard support price reduced by the cost of the fuel 
displaced by the biomass energy sold, or (ii) $2.00, whichever is 
lower, multiplied by 
(B) the amount of such biomass energy sold (in millions of 
Btu's). 
OJXD In the case of any new municipal waste energy project which 
produces and sells biomass energy, the Secretary of Energy may 
commit to make, and make, a price support loan in amounts deter-
mined in accordance with the provisions of subsection (a), except as 
provided in paragraph (2). 
(2) In the case of any loan under this subsection for a new municipal 
waste energy project— 
(A) disbursements under such loan may not be made for more 
than 7 consecutive 12-month periods (with reductions as provided 
in subsection (a)(2XAXii)); 
(B) such loan shall bear interest at a rate not in excess of the 
rate prescribed under subsection (a); and 
(C) the principal of or interest on such loan shall, in accordance 
with the support loan agreement, be repayable, commencing at 
the end of the last 12-month period covered by the support loan, 
over a period not in excess of the period equal to the then 
remaining useful life of the project (as determined by the 
Secretary) or 15 years, whichever is shorter. 
(cXD In the case of any new municipal waste energy project which 
produces and sells biomass energy, the Secretary of Energy may 
commit to make, and make, a price guarantee for the operation of 
such project which guarantees that the price the owner or operator 
will receive for all or part of the production from that project shall 
not be less than a specified sales price determined as of the date of 
execution of the guarantee agreement. 
(2XA) No price guarantee under this section may be based upon a 
cost-plus arrangement, or variant thereof, which guarantees a profit 
to the owner or operator involved. 
(B) The use of a cost-of-service pricing mechanism by a person 
pursuant to law, or by a regulatory body establishing rates for a 
regulated person, shall not be deemed to be a cost-plus arrangement, 
or variant thereof, for purposes of subparagraph (A). 
(3) In the case of any price guarantee under this subsection for a 
new municipal waste energy project— 
(A) disbursements under such guarantee may not be made for 
more than 7 consecutive 12-month periods; and 
(B) amounts paid under this subsection may be required to be 
repaid to the Secretary of Energy under such terms and condi-
tions as the Secretary may prescribe, including interest at a rate 
not in excess of the rate prescribed under subsection (a). 
(d) For purposes of this section— 
(1) The term "new municipal waste energy project" means any 
municipal waste energy project which— 
(A) is initially placed in service after the date of the 
enactment of this Act; or 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 701 
(B) if initially placed in service before such date, has an 
increased capacity by reason of additional construction, and 
as such is placed in service after such date. 
(2) The term "existing municipal waste energy project" means 
any municipal waste energy project which is not a new municipal 
waste project. 
(3) Tlie term "placed in sendee" means operated at more than 
50 percent of 
the estimated operationgJ capacity. 
(4XA) Except as provided in subparagraphs (B) and (C), the 
term "standard support price" means the average price (per 
million Btu's) for No. 6 fuel oil imported into the United States 
on the date of the enactment of this Act, as determined, by rule, 
by the Secretary of Energy not later than 90 days after the date 
of the enactment of this Act. 
(B) In any case in which the fuel displaced is No. 6 fuel oil or 
any higher grade of petroleum (as determined by the Secretary of 
Energy), the term "standard support price" means 125 per 
centum of the price determined by rule under subparagraph (A). 
(C) In any case in which biomass energy produced and sold by a 
project is steam or electricity, the term standard support price" 
means the price determined by rule under subparagraph (A), 
subject to such adjustments as the Secretary of Energy may 
authorize by rule. 
(5) The term "cost of the fuel displaced" means the cost of the 
fuel (per million Btu's) which the purchaser of biomass energy 
would have purchased if the biomass energy had not been 
available for sale to that purchaser. 
(6) Any biomeiss energy produced by a municipal waste energy 
project which may be retained for use by the owner or operator of 
such project shall be considered to be sold at such price as the 
Secretary of Energy determines. 
(7) Not later than 90 days after the date of the enactment of 
this Act, the Secretary of Energy shall prescribe, by rule, the 
manner of determining the fuel displaced by the sale of any 
biomass energy, and the price of the fuel displaced. 
GENERAL REQUIREMENTS REGARDING FINANCIAL ASSISTANCE 
SEC. 235. (aXD Priority for financial assistance under the provisions 42 use 8835. 
of sections 232, 233, and 234, and the most favorable financial terms 
available, shall be provided for any municipal waste energy project 
that will— 
(A) produce a liquid fuel from municipal waste; or 
(B) will displace petroleum or natural gas as a fuel. 
(2XA) With respect to projects producing biomass energy other than Biomass energy 
biomass fuel, financial assistance under the provisions of sections projects. 
232, 233, and 234 shall be available only if the Secretary of Energy 
finds that the project does not use petroleum or natural gas except for 
flame stabilization or start-up. 
(B) With respect to projects producing biomass fuel, financial Btu content. 
assistance under such provisions shall be available to such project 
only if the Secretary of Energy finds that the Btu content of the 
biomass fuel produced substantially exceeds the Btu content of any 
petroleum or natural gas used in the project to produce the biomass 
fuel. 
(3) Financial assistance may not be provided under section 232,233, 
or 234 unless the Secretary of Energy finds that necessary municipal 
94 STAT. 702 
PUBLIC LAW 96-294—JUNE 30, 1980 
Byproducts, 
value and 
production costs. 
Application. 
waste feedstocks are available and it is reasonable to expect they will 
continue to be available for the expected economic life of the project. 
(4) In providing financial assistance under section 232, 233, or 234, 
the Secretary of Energy shall give due consideration to promoting 
competition. 
(5) In determining the amount of financial assistance for any 
municipal waste energy project which will yield byproducts in addi-
tion to biomass energy, the Secretary shall consider the value of such 
byproducts and the costs attributable to their production. 
(6) The Secretary of Energy shall not provide financial assistance 
under section 232, 233, or 234 for any municipal waste energy unless 
the Secretary determines— 
(A) the project will be technically and economically viable; 
(B) the financial assistance provided encourages and supple-
ments, but does not compete with nor supplant, any private 
capital investment which otherwise would be available to the 
proposed municipal waste energy project on reasonable terms 
and conditions which would permit such project to be under-
taken; 
(C) assurances are provided that the project will not use, in any 
substantial quantities, waste paper which would otherwise be 
recycled for a use other than as a fuel and will not substantially 
compete with facilities in existence on the date of the financial 
assistance which are engaged in the separation or recovery of 
reuseable materials from municipal waste; and 
(D) that the amount of financial assistance provided for the 
project is not greater than is necessary to achieve the purposes of 
this title. 
(b) Financial assistance may not be provided under section 232,233, 
or 234 unless the Secretary of Energy determines that— 
(1) the terms, conditions, maturity, security and schedule and 
amounts of repayments with respect to such assistance are 
reasonable and meet such standards as the Secretary determines 
are sufficient to protect the financial interests of the United 
States; and 
(2) the person receiving such financial assistance will bear a 
reasonable degree of risk with respect to the project. 
(c)(1) No financial assistance may be provided to any person under 
section 232,233, or 234 unless an application therefor— 
(A) has been submitted to the Secretary of Energy by such 
person in such form and under such procedures as the Secretary 
shall prescribe, consistent with the requirements of this subtitle, 
and 
(B) has been approved by the Secretary in accordance with 
such procedures. 
(2) Each such application shall include information regarding the 
construction costs of the municipal waste energy project involved (if 
appropriate), and estimates of operating costs and income relating to 
that project (including the sale of any byproducts from that project). 
In addition, each applicant shall provide— 
(A) access at reasonable times to such other information, and 
(B) such assurances, 
as the Secretary of Energy may require. 
(d)(1) Every person receiving financial assistance under section 232, 
233, or 234 shall, as a condition precedent thereto, consent to such 
examinations and reports thereon regarding the municipal waste 
energy project involved as the Secretary of Energy may require. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 703 
(2) With respect to each municipal waste energy project for which 
financial assistance is provided under section 232, 233, or 234, the 
Secretary shall— 
(A) require from the recipient of financial assistance such 
reports and records relating to that project as the Secretary 
deems necessary; 
(B) prescribe the manner in which such recipient shall keep 
such records; and 
(C) have access to such records at reasonable times for the 
purpose of ensuring compliance with the terms and conditions 
upon which financial assistance is provided. 
(e) All amounts received by the Secretary of Energy as fees, 
interest, repayment of principal, and any other moneys received by 
the Secretary from operations under section 232, 233, or 234 shall be 
deposited in the general fund of Treasury of the United States as 
miscellaneous receipts. 
(0 AH contracts and instruments of the Secretary of Energy to 
provide, or providing, for financial assistance shall be general obliga-
tions of the United States backed by its full faith and credit. 
(g) Subject to the conditions of any contract for financial assistance, 
such contract shall be incontestable in the hands of the holder, except 
as to fraud or material misrepresentation on the part of the holder. 
(h) Notwithstanding the provisions of the Federal Financing Bank 
Act of 1973 (12 U.S.C. 2281 et seq.) or any other provision of law 
(except as may be specifically provided by reference to this subsection 
in any Act enacted after the date of the enactment of this Act), no 
debt obligation which is made or committed to be made, or which is 
guaranteed or committed to be guaranteed by the Secretary of 
Energy under section 232,233, or 234 shall be eligible for purchase by, 
or commitment to purchase by, or sale or issuance to, the Federal 
Financing Bank or any Federal agency. 
FINANCIAL ASSISTANCE PROGRAM ADMINISTRATION 
SEC. 236. The Secretary of Energy shall establish procedures and 42 use 8836. 
take such other actions as may be necessary regarding the solicita-
tion, review, and evaluation of applications, and awarding of finan-
cied assistance under section 232, 233, or 234 as may be necessary to 
carry out the plan established under section 231. 
COMMERCIAUZATION DEMONSTRATION PROGRAM PURSUANT TO FEDERAL 
NONNUCLEAR ENERGY RESEARCH AND DEVELOPMENT ACT OF 1974 
SEC. 237. (aXD The Secretary of Energy shall establish and conduct, 42 use 8837. 
pursuant to the authorities contained in the Federal Nonnuclear 
Energy Research and Development Act of 1974, an accelerated 42 use 5901 
research, development, and demonstration program for promoting note. 
the commercial viability of processes for the recovery of energy from 
municipal wastes. 
(2) The provisions of subsections (d), (m), and (xX2) of section 19 of 
such Act shall not apply with respect to the program established 42 use 5919. 
under this section. 
(3) As part of the program established under this section, the 
Secretary, after consulting with the Administrator of the Environ-
mental Protection Agency and the Secretary of Commerce, shall 
undertake— 
79-194 
O—81—pt. 1 
48 : QL3 
94 STAT. 704 
PUBLIC LAW 96-294—JUNE 30, 1980 
Financial 
assistance. 
Priority for 
funding. 
(A) the research, development, and demonstration of technol-
ogies to recover energy from municipal wastes; 
(B) the development and application of new municipal waste-
to-energy recovery technologies; 
(C) the assessment, evaluation, demonstration, and improve-
ment of the performance of existing municipal waste-to-energy 
recovery technologies with respect to capital costs, operating and 
maintenance costs, total project financing, recovery efficiency, 
and the quality of recovered energy and energy intensive materi-
als; 
(D) the evaluation of municipal waste energy projects for the 
purpose of developing a base of engineering data that can be used 
in the design of future municipal waste energy projects to 
recover energy from municipal wastes; and 
(E) research studies on the size and other significant character-
istics of potential markets for municipal waste-to-energy recov-
ery technologies, and recovered energy, and energy intensive 
materials. 
(b) Under such program, the Secretary of Energy may provide 
financial assistance consisting of price supports, loans, and loan 
guarantees, for the cost of planning, designing, constructing, operat-
ing, and maintaining demonstration facilities, and, in the case of 
existing facilities, modifications of such facilities solely for demon-
stration purposes, for the conversion of municipal WEistes into energy 
or the recovery of materials. 
(c) Priority for funding of activities under subsection (a) and 
financial assistance under subsection (b) shall be provided for any 
activity or project for the demonstration of technologies for the 
production of liquid fuels or biomass energy which substitute for 
petroleum or natural gas. 
(d) The Secretary of Energy may not obligate or expend any funds 
authorized under this title in carrying out subsection (b) of this 
section until the plan required under section 231(a) has been pre-
pared and submitted to the Congress. 
(e) All amounts received by the Secretary of Energy as fees, 
interest, repayment of principal, and any other moneys received by 
the Secretary from operations under this section shall be deposited in 
the general fund of the Treasury of the United States as miscella-
neous receipts. 
JURISDICTION OF DEPARTMENT OF ENERGY AND ENVIRONMENTAL 
PROTECTION AGENCY 
42 use 8838. 
SEC. 238. The provisions of section 20(c) of the Federal Nonnuclear 
42 use 5920. 
Research and Development Act of 1974, relating to the responsibil-
ities of the Environmental Protection Agency and the Department of 
Energy, shall apply with respect to actions under this subtitle to the 
same extent and in the same manner as such provisions apply to 
actions under section 20 of such Act. 
ESTABUSHMENT OF OFFICE OF ENERGY FROM MUNICIPAL WASTE IN 
DEPARTMENT OF ENERGY 
42 use 8839. 
SEC. 239. (a) There is hereby established within the Department of 
Energy an Office of Energy from Municipal Waste (hereinafter in this 
section referred to as the "Office") to be headed by a Director, who 
shall be appointed by the Secretary of Energy. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 705 
(b) It shall be the function of the Office to perform— 
(1) the research, development, demonstration, and commercial-
ization activities authorized under this subtitle (including those 
authorized under section 237), and 
(2) such other duties relating to the production of energy from 
municipal w£iste £is the Secretary of Energy may assign to the 
Office. 
(c) In carrying out functions tranferred or assigned to the Office, 
the Secretary of Energy shall consult with the Administrator of the 
Environmental Protection Agency, the Secretary of Commerce, and 
the heads of such other Federal agencies, as appropriate. 
(d) The Secretary shall provide for the transfer to the Office of the 
functions relating to, and personnel of the Department who are 
responsible for the administration of, programs in existence on the 
date of the enactment of this Act which relate to the research, 
development, demonstration, and commercialization of technologies 
for the recovery of energy from municipal waste. 
Functions. 
Consultation 
with Federal 
agencies. 
TERMINATION 
SEC. 240. No financial assistance may be committed to or made 
under this subtitle after September 30,1984. This section shall not be 
construed to affect the authority of the Secretary of Energy to spend 
funds after such date pursuant to any award of financial assistance 
made on or before that date. 
42 u s e 8840. 
SUBTITLE C—RURAL, AGRICULTURAL, AND FORESTRY BIOMASS 
ENERGY 
MODEL DEMONSTRATION BIOMASS ENERGY FACIUTIES 
SEC. 251. (a) The Secretary of Agriculture shall establish not more 
than ten model demonstration biomass energy facilities for purposes 
of exhibiting the most advanced technology available for producing 
biomass energy. Such facilities and information regarding the oper-
ation of such facilities shall be available for public inspection, and, to 
the extent practicable, such facilities shall be established in various 
regions in the United States. Such facilities may be established in 
cooperation with appropriate departments or agencies of the States, 
or appropriate departments, agencies, or other instrumentalities of 
the United States. 
Ot)) For purposes of carrying out subsection (a), there is authorized 
to be appropriated $5,000,000 for each of the fiscal years 1981, 1982, 
1983, and 1984. 
42 u s e 8851. 
Public 
inspection, 
availability. 
Cooperation 
with State and 
Federal 
agencies. 
Appropriation 
authorization. 
BIOMASS ENERGY RESEARCH AND DEMONSTRATION PROJECTS 
SEC. 252. Section 1419 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3154) is 
amended— 
(1) by striking out "colleges and universities" the first place it 
appears and inserting in lieu thereof "colleges, universities, and 
Government corporations"; 
(2) by striking out "(2) alcohol made from agricultural commod-
ities and forest products as a substitute for alcohol made from 
petroleum products," and inserting in lieu thereof the following 
94 STAT. 706 
PUBLIC LAW 96-294—JUNE 30, 1980 
Grants for 
research. 
Appropriation 
authorization. 
Definitions. 
new paragraph: "(2) alcohol and other forms of biomass energy as 
substitutes for petroleum or natural gas,"; 
(3) by inserting after the first sentence thereof the following: 
"The authority to conduct research under paragraph (2) does not 
include authority to conduct research with respect to technology 
demonstrations of integrated systems for commercialization of 
technologies for applications other than agricultural or uniquely 
rural applications. The Secretary may make grants under this 
subsection to such colleges, universities, and Government corpo-
rations for the purpose of conducting research relating to the 
development of the most economical and commercially feasible 
means of collecting and transporting wastes, residues, and by-
products for use as feedstocks for the production of alcohol and 
other forms of biomass energy. At least 25 per centum of the 
amount appropriated in any fiscal year for research under 
paragraph (2) shall be made available for grants under this 
subsection for research, relating to the production of alcohol, to 
identify and develop agricultural commodities, including alfalfa, 
sweet sorghum, black locust, and cheese whey, which may be 
suitable for such production. At least 25 per centum of the 
amount appropriated in any fiscal year for research under 
paragraph (2) shall be made available for grants under this 
subsection for research relating to the development of technol-
ogies for increasing the energy efficiency and commercial feasi-
bility of alcohol production, including processes of cellulose 
conversion and cell membrane technology."; 
(4) by striking out "section" each place it appears and inserting 
in lieu thereof "subsection"; 
(5) by inserting "(a)" after "SEC. 1419."; 
(6) by adding at the end of subsection (a), as so designated, the 
following new sentence: "In addition to the authorization of 
appropriations provided in the preceding sentence, there is 
authorized to be appropriated for grants to conduct research 
described in paragraph (2) and in the third sentence of this 
subsection $12,000,000 for each of the fiscal years ending Septem-
ber 30, 1981; September 30, 1982; September 30,' 1983; and 
September 30,1984."; and 
(7) by adding at the end thereof the following new subsection: 
"(h) For purposes of subsection (a)— 
"(1) the term 'biomass' means any organic matter which is 
available on a renewable basis, including agricultural crops and 
agricultural wastes and residues, wood and wood wastes and 
residues, and animal wastes, except that such term does not 
include aquatic plants and municipal wastes; 
"(2) the term 'biomass energy' means any gaseous, liquid, or 
solid fuel produced by conversion of biomass, and energy or 
steam derived from the direct combustion of biomass for the 
generation of electricity, mechanical power, or industrial process 
heat; and 
"(3) the term 'municipal wastes' means any organic matter, 
including sewage, sewage sludge, and industrial or commercial 
waste, and mixtures of such matter and inorganic refuse— 
"(i) from any publicly or privately operated municipal 
waste collection or similar disposal system; or 
"(ii) from similar waste flows (other than such flows which 
constitute agricultural wastes or residues, or wood wastes or 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 707 
residues from wood harvesting activities or production of 
forest products).". 
APPUED RESEARCH REGARDING ENERGY CONSERVATION AND BIOMASS 
ENERGY PRODUCTION AND USE 
SEC. 253. The third sentence of section 1 of the Act of June 29,1935 
(49 Stat. 436; 7 U.S.C. 427), commonly known as the Bankhead-Jones 
Act, is amended by inserting "appUed research to develop agri-
cultural, forestry, and rural energy conservation and biomass energy 
production and use;" after "irrigation);". 
FORESTRY ENERGY RESEARCH 
SEC. 254. Section 3(a) of the Forest and Rangeland Elenewable 
Resources Research Act of 1978 (16 U.S.C. 1642(a)) is amended— 
(1) in paragraph (1) by inserting "energy production, activities 
related to energy conservation," after "wilderness,"; and 
(2) in paragraph (4) by inserting "producing and conserving 
energy;" after "wood fiber;". 
BIOMASS ENERGY EDUCATIONAL AND TECHNICAL ASSISTANCE 
SEC. 255. (a) Subtitle B of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3121-3128) is 
amended by adding at the end thereof the following new section: 
"BIOMASS ENERGY EDUCATIONAL AND TECHNICAL 
ASSISTANCE PROGRAMS 
"SEC. 1413A. (a) The Secretary, in cooperation with State directors '
^ ^sc 3129. 
of cooperative extension, administrators of extension for land-grant 
colleges and universities, State foresters or equivalent State officials, 
and the heads of other Federal departments and agencies, shall 
provide educational programs for producers of agricultural commod-
ities, wood, and wood products to— 
"(1) inform such producers of the feasibility of using biomass 
for energy; 
"(2) disseminate to such producers information regarding the 
results of research regarding the use of biomass for energy; 
"(3) inform such producers of the best available technology for 
the use of biomass for energy; 
"(4) provide technical assistance to such producers to improve 
their ability to efficiently use biomass for energy; and 
"(5) disseminate to such producers the results of research on 
energy conservation techniques and encourage such producers to 
adopt such techniques. 
"(b) All appropriate educational methods, including meetings, 
short courses, workshops, tours, demonstrations, publications, news 
releases, and radio and television programs, may be used to cariy out 
subsection (a). 
"(c) The State director of cooperative extension in each State shall State plan. 
develop a single, comprehensive, and coordinated plan which in-
cludes every biomass energy educational and technical assistance 
program in effect or proposed in such State, except that in those 
States which contain more than one land-grgmt college or university, 
such plan shall be jointly developed by the administrative heads of 
94 STAT. 708 
PUBLIC LAW 96-294—JUNE 30, 1980 
Review. 
Annual report. 
Definitions. 
Appropriation 
authorization. 
7 u s e 341. 
7 u s e 342. 
extension of such institutions. Such plan shall be developed with the 
full participation of the State forester or the equivalent State official 
of such State. Each State's plan shall be submitted to the Secretary 
annually for approval. The Advisory Board shall review and make 
recommendations to the Secretary pertaining to programs conducted 
under this section. Each State shall submit an annual progress report 
on the operation of its plan to the Secretary before January 1 
following the fiscal year for which such report is made. 
"(d) Funds made available under this section shall be provided to 
the State director of cooperative extension and the administrators of 
extension for land-grant colleges and universities in each State in a 
manner consistent with the effective implementation of this section. 
"(e) For purposes of this section— 
"(1) the term 'biomass' means any organic matter which is 
available on a renewable basis, including agricultural crops and 
agricultural wastes and residues, wood and wood wastes and 
residues, and animal wastes, except that such term does not 
include aquatic plants and municipal wastes; 
"(2) the term 'biomass energy' means any gaseous, liquid, or 
solid fuel produced by conversion of biomass, and energy or 
steam derived from the direct combustion of biomass for the 
generation of electricity, mechanical power, or industrial process 
heat; and 
"(3) the term 'municipal wastes' means any organic matter, 
including sewage, sewage sludge, and industrial or commercial 
waste, and mixtures of such matter and inorganic refuse— 
"(i) from any publicly or privately operated municipal 
waste collection or similar disposal system; or 
"(ii) from similar waste flows (other than such flows which 
constitute agricultural wastes or residues, or wood wastes or 
residues from wood harvesting activities or production of 
forest products). 
"(0 There is authorized to be appropriated to carry out this section 
$10,000,000 for each of the fiscal years 1981, 1982, 1983, and 1984.". 
O
t
>
) The table of contents of the Food and Agriculture Act of 1977 (91 
Stat. 913) is amended by inserting after the item relating to section 
1413 the following new item: 
"Sec. 1413A. Biomass energy educational and technical assistance programs.". 
RURAL ENERGY EXTENSION WORK 
SEC. 256. The Act of May 14, 1914 (38 Stat. 372; 7 U.S.C. 341-349), 
commonly known as the Smith-Lever Act, is amended— 
(1) in section 1 by striking out "and home economics," and 
inserting in lieu thereof ", home economics, and rural energy,"; 
and 
(2) in section 2 by striking out "and home economics" and 
inserting in lieu thereof ", home economics, and rural energy". 
42 u s e 8852. 
7 u s e 3154, 
3121-3128, 427. 
COORDINATION OF RESEARCH AND EXTENSION ACTIVITIES 
SEC. 257. (a) The Secretary of Agriculture shall coordinate the 
applied research and extension programs conducted under this subti-
tle and under the amendments made by this subtitle to section 1419 
and subtitle B of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977, section 1 of the Bankhead-Jones Act, 
section 3 of the Forest and Rangeland Renewable Resources Research 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 709 
Act of 1978, and sections 1 and 2 of the Smith-Lever Act with the 1
6 use 1642. 
programs of 
the Department of 
Energy. 
"
^ use 341, 342. 
(b) In carrying out this subtitle and the amendments made by this 
subtitle, the Secretary of Agriculture shall consult on a continuing 
basis with-
al) the Subcommittee on Food and Renewable Resources of the 
Federal Coordinating Council for Science, Engineering, and 
Technology; 
(2) the Joint Council on Food and Agricultural Sciences; and 
(3) the National Agricultural Research and Extension Users 
Advisory Board; 
for the purpose of coordinating research and extension activities. 
LENDING FOR ENERGY PRODUCTION AND CONSERVATION PROJECTS BY 
PRODUCTION CREDIT ASSOCIATIONS, FEDERAL LAND BANKS, AND 
BANKS FOR COOPERATIVES 
SEC 258. The Farm Credit Administration shall encourage produc- 42 use 8853. 
tion credit associations, Federal land banks, and banks for coopera-
tives to use existing authorities to make loans to eligible persons for 
commercially feasible biomeiss energy projects. 
AGRICULTURAL CONSERVATION PROGRAM; ENERGY CONSERVATION COST 
SHARING 
SEC. 259. Section 8(b) of the Soil Conservation and Domestic 
Allotment Act (16 U.S.C. 590h(b)) is amended— 
(1) in the first sentence by inserting "(including energy conser-
vation)" after "conservation"; and 
(2) by inserting after the first undesignated paragraph the 
following new undesignated paragraph: 
"The Secretary may provide financial assistance to agricultural 
producers for the purpose of encoursiging energy conservation by 
sharing the costs of and providing technicsil assistance for (1) the 
establishment, restoration, and better use of shelter belts to conserve 
energy on farmsteads and feed lots, (2) the establishment and use of 
minimum tillsige systems, (3) the efficient storage and application of 
manure and other suitable wastes to the land for land fertility and 
soil improvement, (4) the use of integrated pest management, (5) the 
use of energy-efficient irrigation water mgmagement, and (6) such 
other land, water, and related resource management practices as the 
Secretary may determine to have significant energy-conserving ef-
fects.". 
PRODUCTION OF COMMODITIES ON SET-ASIDE ACREAGE 
SEC. 260. (a) The Food and Agriculture Act of 1977 (91 Stat. 913) is 
amended by adding at the end thereof the following new title: 
"TITLE XX—PRODUCTION OF COMMODITIES ON SET-ASIDE 
ACREAGE 
"SEC. 2001. (a) The Secretary of Agriculture shall permit, subject to 7 use 1435. 
such terms and conditions as the Secretary shall prescribe, all or any 
part of the acreage set aside or diverted under the Agricultural Act of 
1949 from the production of a commodity for any crop year to be 
devoted to the production of any commodity for conversion into 
alcohol or hydrocarbons for use as motor fuel or other fuel, if the 
94 STAT. 710 
PUBLIC LAW 96-294—JUNE 30, 1980 
Production of 
commodities for 
fuel, 
administration. 
7 u s e 1421 note. 
Payment rates. 
Appropriation 
authorization. 
Secretary of Agriculture determines that such production is desirable 
in order to provide an adequate supply of commodities for such 
conversion, is not likely to increase the cost of price support pro-
grams, and will not adversely affect farm income. 
"(bXD During any year in which no set-aside or diversion of acreage 
is in effect under the Agricultural Act of 1949, the Secretary of 
Agriculture may formulate and administer a program for the produc-
tion, subject to such terms and conditions as he may prescribe, of 
commodities for conversion into alcohol or hydrocarbons for use as 
motor fuel or other fuel. Under such program, producers of wheat, 
feed grains, upland cotton, and rice shall be paid incentive pajrments 
to devote a portion of their acreage to such production. 
"(2) The payments under this subsection shall be made at such rate 
or rates as the Secretary of Agriculture determines to be fair and 
reasonable, taking into consideration the participation necessary to 
ensure an adequate supply of commodities for such conversion. 
"(3) The Secretary may issue any regulations necessary to carry out 
the provisions of 
this subsection. 
"(4) There are authorized to be appropriated such sums as may be 
necessary to carry out the provisions of this subsection.". 
(b) The table of contents of the Food and Agriculture Act of 1977 (91 
Stat. 913) is amended by adding at the end thereof the following new 
items: 
"TITLE XX-PRODUCTION OF COMMODITIES ON SET-ASIDE ACREAGE 
"Sec. 2001. Production of commodities on set-eiside acreage.". 
UTIUZATION OP NATIONAL FOREST SYSTEM IN WOOD ENERGY 
DEVELOPMENT PROJECTS 
42 use 8854. 
SEC. 261. The Secretary of Agriculture may make available the 
timber resources of the National Forest System, in accordance with 
appropriate timber appraisal and sale procedures, for use by biomass 
energy projects. 
FOREST SERVICE LEASES AND PERMITS 
42 use 8855. 
SEC. 262. It is the intent of the C!ongress that the Secretary of 
Agriculture shall process applications for leases of National Forest 
System lands and for permits to explore, drill, and develop resources 
on land leased from the Forest Service, notwithstanding the current 
status of any plan being prepared under section 6 of the Forest and 
Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 
1604). 
SUBTITLE D—MISCELLANEOUS BIOMASS PROVISIONS 
USE OF GASOHOL IN FEDERAL MOTOR VEHICLES 
4
2 use 8871. 
SEC 271. (a) The President shall, by executive order, require that 
motor vehicles which are owned or leased by Federal agencies and are 
capable of operating on gasohol shall use geisohol where available at 
resisonable prices and in reasonable quantities. 
Exceptions. 
(b) The President may provide for exceptions to the requirement of 
subsection (a) where necessary, including to protect the national 
security. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 711 
(c) Such executive order shall specify the alcohol-gasoline mixture Gasohoi. 
or mixtures which shall constitute "gasohoi" for purposes of such 
order, as well as specifications for its use. 
MOTOR VEHICLE ALCOHOL USAGE STUDY 
SEC. 272. The Secretary of Energy shall, in consultation with the 
Secretary of Transportation, submit to the Congress within 9 months 
after the date of the enactment of this Act a report on— 
(1) the need for, and practicality of, mandating through legisla-
tion that any new motor vehicle sold in the United States shall be 
capable of using alcohol as a motor fuel in specified alcohol-
gasoline mixtures, or using alcohol as the only fuel; 
(2) the need for any other legislation to address technical or 
institutional barriers to the widespread marketing of alcohol, 
including requirements that would mandate specified propor-
tions of alcohol in all motor gasoline sold; and 
(3) any other aspects of the use of alcohol as a motor fuel, as the 
Secretary considers appropriate. 
NATURAL GAS PRIORITIES 
Report to 
Congress. 
Essential 
agricultural use. 
15 u s e 3391a. 
15 u s e 3391. 
SEC. 273. For the purposes of section 401 of the Natural Gas Policv 
Act of 1978 (Public Law 95-621), the term "essential agricultural use ' 
shall-
(1) include use of natural gas in sugar refining for production of 
alcohol; 
(2) include use of natural gas for agricultural production on set-
aside acreage or acreage diverted from the production of a 
commodity (as provided under the Agricultural Act of 1949) to be 7 use I42i note 
devoted to the production of any commodity for conversion into 
alcohol or hydrocarbons for use as motor fuel or other fuels; and 
(3) for the 5-year period beginning on the date of the enactment 
of this Act, include use of natural gas in the distillation of fuel-
grade alcohol from food grains or other biomass by facilities in 
existence on the date of the enactment of this Act which do not 
have the installed capability to burn coal lawfully. 
STANDBY AUTHORITY FOR ALLOCATION OF ALCOHOL FUEL 
SEC. 274. Section 4 of the Emergency Petroleum Allocation Act of 
1973 is amended by adding at the end thereof the following new 15 use 753. 
subsection: 
"(fXD If the President finds that there are significant quantities of 
alcohol available for use in motor fuel that are not being used for that 
purpose because of an unavailability of crude oil with respect to a 
refiner or unavailability of gasoline with respect to persons engaged 
in marketing of petroleum products, the President shall, to the extent 
practicable and subject to the provisions of this Act, use the authori-
ties under subsection (a) to provide for the allocation o
f
— 
"(A) crude oil to refineries engaged in the production of refined 
petroleum products to be mixed with alcohol, and 
"(B) refined petroleum products to persons engaged in the 
marketing of petroleum products, 
so as to result in the use of such quantities of alcohol in motor fuel. 
"(2) In exercising such authorities pursuant to this subsection, the 
President shall— 
94 STAT. 712 
PUBLIC LAW 96-294—JUNE 30, 1980 
'Alcohol." 
"(A) seek to avoid disruption of crude oil and refined petroleum 
product markets and to avoid causing unreasonable increases in 
the price of alcohol, and 
"(B) give due consideration to the adequacy of quality control 
in any refinery operations related to the receipt of an allocation 
of crude oil. 
"(3) For the purposes of this subsection, 'alcohol' means methanol, 
ethanol, or any other alcohol which is produced from any source and 
which is suitable for use in combination with other fuels as a motor 
fuel. 
"(4) Nothing in this subsection shall limit the allocation authorities 
under subsection (a).". 
TITLE III—ENERGY TARGETS 
Transmittal to 
Congress. 
42 u s e 7361. 
PREPARATION 
OF 
ENERGY 
TARGETS 
SEC. 301. (a) During the first calendar week beginning in February 
of 1981, and of every second year thereafter, the President shall 
transmit to the Congress energy targets for net imports, domestic 
production, and end-use consumption of energy for the calendar years 
1985, 1990, 1995, and 2000. Such targets shall be transmitted in the 
form prescribed in section 303. 
(Jo) In preparing energy targets under this section, the President 
shall take into account anticipated energy conservation and antici-
pated production of energy from new technologies, and shall transmit 
with the targets supporting data together with a statement of the 
assumptions on which the targets are based. 
(c) During the first calendar week beginning in February of 1982, 
and of every second year thereafter, the President shall transmit to 
the Congress reports regarding the energy targets transmitted during 
the preceding year. 
(d) The President shall not transmit any revised target (or support-
ing data) for any calendar year which has then elapsed. 
DOE 
authorization 
bills. 
42 u s e 7362. 
Transmittal to 
eongress. 
Amendments. 
CONGRESSIONAL CONSIDERATION 
SEC. 302. (a)(1) Any Department of Energy authorization bill for 
fiscal year 1982 and any such bill for fiscal year 1984 which is 
proposed in an executive communication to the Congress shall 
include the targets required by section 301(a) to be transmitted in 
February of the preceding fiscal year. Such targets shall be in the 
form prescribed in section 303 and shall be set forth as a separate title 
at the end of the proposed bill. 
(2) The energy targets transmitted to the Congress under section 
301 shall be considered by any committee of the House of Representa-
tives or the Senate in connection with any Department of Energy^ 
authorization bill for fiscal year 1982 or fiscal year 1984. This 
paragraph shall apply during the Ninety-seventh Congress and the 
Ninety-eighth Congress, and during any subsequent Congress (with 
respect to Department of Energy authorization bills for later fiscal 
years) to the extent expressly provided in any Act (other than an 
appropriation Act) approved after the date of the enactment of this 
Act. 
(3XA) During the Ninety-seventh Congress and the Ninety-eighth 
Congress, it shall be in order (notwithstanding any rule or provision 
of law) during the consideration in the House of Representatives, in 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 713 
Reporting dates. 
the Senate, or in any committee of either, of any Department of 
Energy authorization bill for fiscal year 1982 or fiscal year 1984, or a 
joint resolution (as defined in subsection (d)(1)(B)), to offer and 
consider, except as provided in subparagraph (B)— 
(i) any amendment (or series of amendments) only changing 
the number of any energy target contained in such bill or 
resolution, or 
(ii) in the case of any such authorization bill, any amendment 
only adding a title containing only energy targets in the form 
prescribed in section 303 if such bill does not contain such a title, 
or only deleting such a title contained in such bill. 
(B) Any amendment (or series of amendments) referred to in 
subparagraph (A) shall not be in order unless it continues or achieves 
mathematical consistency within the targets. 
(b)(1) If-
(A) on or before May 15, 1981, no Department of Energy 
authorization bill for fiscal year 1982 has been reported to either 
House of the Congress by any of the respective authorizing 
committees, or 
(B) no committee which has reported such an authorization bill 
in either House by such date has included energy targets in the 
form prescribed in section 303 as a separate title, 
a joint resolution introduced in the Senate or the House of Repre-
sentatives after such date shall be subject to the provisions of this 
section and shall immediately be referred to the appropriate author-
izing committees, which shall have until July 15, 1981, to consider 
and report such resolution. 
(2) If on or before July 15, 1981, the appropriate authorizing 
committees of the House of Representatives or the Senate have not 
reported such a joint resolution, such committees of that House may 
be discharged from further consideration of such joint resolution (or 
any other joint resolution) in accordance with paragraph (4) of section 
552(d) of the Energy Policy and Conservation Act (as if it were a 42 USC 6422. 
resolution relating to a contingency plan) if a motion for such a 
discharge is made during the period of 20 calendar days of continuous 
session of Congress which follows July 15,1981. 
(3) The provisions of subsections (c) and (dX5) and (6) of section 552 
of such Act shall apply with respect to the consideration of such a 
joint resolution in either House, except that— 
(A) debate on such joint resolution shall be limited to not more 
than 3 hours, 
(B) it shall be in order (notwithstanding any rule or provision 
of law) to offer and consider any amendment (or series of 
amendments) permitted under subsection (a)(3), and 
(C) the references in such provisions to any resolution relating 
to a contingency plan shall be considered to refer to a joint 
resolution under this section. 
(c) In the consideration of any Department of Energy authorization 
bill containing a title setting forth energy targets, the question of 
whether any amendment (other than an amendment referred to in 
subsection (aX3)) to any portion of such bill (including such title) is in 
order in the House of Representatives, in the Senate, or in any 
committee of either, shall be determined as if the title containing 
such targets were not in the bill. 
(dX 1) F o r p u r p o s e s of t h i s section— 
Definitions. 
Joint 
resolutions. 
94 STAT. 714 
PUBLIC LAW 96-294—JUNE 30, 1980 
(A) the term "Department of Energy authorization bill" means 
any general authorization of appropriations for the civilian 
prqCTams and activities of the Department of Energy; 
(B) the term "joint resolution" means only a joint resolution of 
either House of Congress (i) which is entitled "Joint resolution 
relating to energy targets.", (ii) which does not contain a pream-
ble, and (iii) the matter after the resolving clause of which only 
contains energy targets in the form prescribed by section 303; 
and 
(C) the term "energy target" means any number contained in 
the form prescribed in section 303. 
Rulemaking 
(2) This section is enacted by Congress— 
powers. 
(A) as an exercise of the rulemaking power of the Senate and 
the House of Representatives, respectively, and as such it is 
deemed a part of the rules of each House, respectively, but 
applicable only with respect to the procedure to be followed in 
that House in the case of Department of Energy authorization 
bills and joint resolutions described by paragraph (1) of this 
subsection; and it supersedes other rules only to the extent that it 
is inconsistent therewith; and 
(B) with full recognition of the constitutional right of either 
House to change the rules (so far as relating to the procedure of 
that House) at any time, in the same manner and to the same 
extent as in the case of any other rule of the House. 
ENERGY TARGET FORM 
42 use 7363. 
SEC. 303. (a) For purposes of this title, energy targets shall be set 
forth in the following form: 
ENERGY TARGETS 
[Quadrillion Btu's per year] 
1985 
1990 
1995 
2000 
Domestic production: 
Crude oil and NGL 
Natural gas 
Coal 
Nuclear 
Renewables and geothermal 
Other 
Subtotal 
Imports: 
Crude oil and refined petroleum . 
Natural gas 
Coal 
Other 
Subtotal 
Total supply 
End-use consumption: 
Petroleum liquids 
Natural gas 
Direct coal 
Electricity 
Decentralized renewables 
Other 
Subtotal 
Conversion loss 
Total consumption 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 715 
(b) As used in subsection (a)— 
(1) the term "crude oil and NGL" includes liquid products 
obtained from lease operations, field facilities, and natural gas 
processing plants and liquid petroleum obtained from shale and 
tarsands; 
(2) the term "coal", when used under the domestic production 
category, includes coal which is converted to gaseous or liquid 
fuels; 
(3) the term "renewables" includes energy or fuel derived 
directly from sunlight or from biomass (as defined in section 203), 
and hydropower sources; 
(4) the term "end-use consumption" does not include exports of 
fuel or electricity; 
(5) the term "decentralized renewables" does not include 
electricity produced for delivery to multiple points of end-use 
consumption; and 
(6) the term "conversion loss" includes heat or other forms of 
energy not recovered in the conversion of raw energy resources, 
fuels, or electricity into alternate form prior to delivery for end-
use consumption. 
Definitions. 
Ante, p. 683. 
GENERAL PROVISIONS REGARDING TARGETS 
SEC. 304. (a) The energy targets set forth pursuant to this title in 42 use 7364 
any joint resolution or any Act authorizing appropriations for the 
Department of Energy shall be considered as an expression of 
national goals and sh^l not be considered to have any legal force or 
effect. 
(b) Expenses paid or incurred by the President for preparing the Expenses. 
energy targets and reports under this title shall be from funds 
otherwise available to the Department of Energy, consistent with 
otherwise applicable law. Such targets and reports shall be prepared 
using the minimum extent of contracting assistance that is required 
for their preparation. If any assistance is required to be obtained by 
contract for the preparation of the targets and reports, that assist-
ance shall be limited to the providing of supporting information and 
may not include the preparation or recommendation of any proposed 
or final energy target. 
(c) The preparation and transmission of such targets or reports 
shall not be considered a major Federal action for the purposes of the 
National Environmental Policy Act of 1969. 
42 u s e 4321 
note. 
TITLE IV—RENEWABLE ENERGY INITIATIVES 
SHORT TITLE 
SEC. 401. This title may be cited as the "Renewable Energy 
Resources Act of 1980". 
PURPOSE 
SEC. 402. The purpose of this title is to establish incentives for the 
use of renewable energy resources, to improve and coordinate the 
Renewable 
Energy 
Resources Act of 
1980. 
42 u s e 7371 
note. 
42 u s e 7371. 
94 STAT. 716 
PUBLIC LAW 96-294—JUNE 30, 1980 
42 u s e 7372. 
dissemination of information to the public with respect to renewable 
energy resources, to encourage the use of certain cost effective solar 
energy systems and conservation measures by the Federal Govern-
ment, to establish a program for the promotion of local energy self-
sufficiency, to broaden the existing program for accelerating the 
procurement and use of photovoltaic systems, and to provide further 
encouragement for the development of small hydroelectric power 
projects. 
DEFINITIONS 
SEC. 403. For purposes of 
this title— 
(1) the term "Secretary" means the Secretary of Energy; and 
(2) the term "renewable energy resource" means any energy 
resource which has recently originated in the sun, including 
direct and indirect soiar radiation and intermediate solar energy 
forms such as wind, ocean thermal gradients, ocean currents and 
waves, hydropower, photovoltaic energy, products of photosyn-
thetic processes, organic wastes, and others. 
COORDINATED DISSEMINATION OF INFORMATION ON RENEWABLE 
ENERGY RESOURCES AND CONSERVATION 
42 use 7373. 
SEC. 404. In order to improve the effectiveness of Federal informa-
tion dissemination activities in the fields of renewable energy re-
sources and energy conservation with the objective of developing and 
promoting better public understanding of these resources and their 
potential uses, the Secretary shall— 
(1) take affirmative steps to coordinate all of the activities of 
the Department of Energy, whether conducted by the Depart-
ment itself or by other public or private entities with assistance 
from the Department, which are aimed at or involve the dissemi-
nation of information with respect to renewable energy resources 
or energy conservation, and 
Annual report to 
(2) report annually to the Congress on the status of such 
Congress. 
activities, including a description of how the information dis-
semination activities and services of the Department of Energy 
in the fields of renewable energy resources and energy conserva-
tion are being coordinated with similar or related activities and 
services of 
other Federal agencies. 
42 u s e 8255. 
Program 
establishment. 
42 u s e 7374. 
ESTABUSHMENT OF UFE-CYCLE ENERGY COSTS FOR FEDERAL BUILDINGS 
Ssc. 405. Section 545(aXl) of the National Energy Conservation 
Policy Act is amended by inserting before the period at the end 
thereof the following: ", using the sum of all capital and operating 
expenses associated with the energy system of the building involved 
over the expected life of such system or during a period of 25 years, 
whichever is shorter, and using marginal fuel costs as determined by 
the Secretary and a discount rate of 7 per centum per year" 
ENERGY SELF-SUFFICIENCY INITIATIVES 
SEC. 403. (a) There is hereby established under the direction of the 
Secretary a 3-year pilot energy self-sufficiency program to demon-
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 717 
strate energy self-sufficiency through the use of renewable energy 
resources in one or more States in the United States. 
(h) As a part of the pilot program, the Secretary shall establish such Subprograms 
subprograms as the Secretary determines are necessary to achieve 
the purpose of this section, including subprograms— 
(1) to promote the development and utilization of synergistic 
combinations of different renewable energy resources in specific 
projects aimed at reducing fossil fuel importation; 
(2) to initiate and encourage energy self-sufficiency at appro-
priate levels of government; 
(3) to stimulate private industry participation in the realiza-
tion of the objective stated in subsection (a); and 
(4) to stimulate the utilization of abandoned or underutilized 
industrial facilities for the generation of energy from any locally 
available renewable resource, such as municipal solid waste, 
agricultural waste, or forest products waste. 
(c) In carrying out the provisions of this section, the Secretary is 
authorized to assign to an existing office in the Department of Energy 
the responsibility of undertaking and carrying out the subprograms 
established under subsection (b). In addition, the Secretary shall 
prepare a detailed plan within one hundred eighty days of the 
enactment of this Act, setting forth (1) the 3-year pilot program itself, 
and (2) any additional Federal actions needed to encourage and 
promote the adoption of programs for energy self-sufficiency. 
(d) The Secretary shall submit to the Congress, within one year 
after the date of the enactment of this Act, the plan prepared under 
the second sentence of subsection (c) along with a report suggesting 
the legislative initiatives needed to fully implement such plan. 
Plan, submittal 
to Congress. 
PHOTOVOLTAIC AMENDMENTS 
SEC. 407. The Federal Photovoltaic Utilization Act (42 U.S.C. 8271 
et seq.) is amended— 
(1) by adding at the end of section 562(1) the following new 42 USC 8271. 
sentence: "Such term also applies to facilities related to pro-
grams administered by Federal agencies."; 
(2)(A) by inserting before the period at the end of the first 
sentence of section 565 the following: ", and for the acquisition of 42 USC 8274. 
such systems and associated capability by Federal agencies for 
their own use in cases where the authority to make such 
acquisition has been delegated to the agency involved by the 
Secretary"; 
(B) by inserting "(or other Federal agency acting under delega-
tion from the Secretary)" after "Secretary" in the third sentence 
of section 565; 
(C) by inserting "(or other Federal agency acting under delega-
tion from the Secretary)" after "Secretary" in the second sen-
tence of section 567(a); 
42 USC 8276. 
(D) by inserting "and other Federal agencies acting under 
delegation from the Secretary" after "Secretary" in the third 
sentence of section 567(a); 
(3) by striking out "rules and regulations" in section 566(2) and 42 USC 8275. 
inserting in lieu thereof "requirements"; and 
94 STAT. 718 
PUBLIC LAW 96-294—JUNE 30, 1980 
42 use 8275. 
(4) by adding at the end of section 566 (after and below 
paragraph (3)) the following new sentence: 
"Notwithstanding any other provision of law, the Secretary shall not 
be subject to the requirements of section 553 of title 5, United States 
Code, in the performance of his functions under this part.". 
SMALL-SCALE HYDROPOWER INITIATIVES 
SEC. 408. (a) Section 408(1) of the Public Utility Regulatory Policies 
Act of 1978 (16 U.S.C. 2708(1)) is amended by striking out "15,000 
kilowatts" and inserting in lieu thereof "30,000 kilowatts". 
(b) Section 405 of such Act (16 U.S.C. 2705) is amended by adding at 
the end thereof the following new subsection: 
"(d) 
EXEMPTIONS FROM LICENSING REQUIREMENTS IN CERTAIN 
CASES.—The Commission may in its discretion (by rule or order) grant 
an exemption in whole or in part from the requirements (including 
16 use 791a. 
the licensing requirements) of part I of the Federal Power Act to 
small hydroelectric power projects having a proposed installed capac-
ity of 5,000 kilowatts or less, on a case-bj^-case basis or on the basis of 
classes or categories of projects, subject to the same limitations (to 
ensure protection for fish and wildlife as well as other environmental 
concerns) as those which are set forth in subsections (c) and (d) of 
16 use 791. 
section 30 of the Federal Power Act with respect to determinations 
made and exemptions granted under subsection (a) of such section 30; 
and subsections (c) and (d) of such section 30 shall apply with respect 
to actions taken and exemptions granted under this subsection. 
Except as specifically provided in this subsection, the granting of an 
exemption to a project under this subsection shall in no case have the 
effect of waiving or limiting the application (to such project) of the 
second sentence of subsection (b) of this section.". 
16 use 2708. 
(c) Section 408 of such Act (as amended by subsection (a) of this 
section) is further amended— 
(1) by inserting "(a)" before "For purposes of this title"; and 
(2) by adding at the end thereof the following new subsection: 
"(b) The requirement in subsection (a)(1) that a project be located at 
the site of an existing dam in order to qualify as a small hydroelectric 
power project, and the other provisions of this title which require that 
a project be at or in connection with an existing dam (or utilize the 
potential of such dam) in order to be assisted under or included 
within such provisions, shall not be construed to exclude— 
"(1) from the definition contained in such subsection (a)(1), or 
"(2) from any other provision of this title, 
any project which utilizes or proposes to utilize natural water 
features for the generation of electricity, without the need for any 
dam or impoundment, in a manner which (as determined by the 
Commission) will achieve the purposes of this title and will do so 
without any adverse effect upon such natural water features.". 
Rules and 
(d) The Secretary shall take such action as may be necessary to 
regulations, 
assure the establishment, as soon as possible after the date of the 
16 use 2701 
enactment of this Act (and in any event within six months after such 
note. 
date in the case of the amendments made by subsections (a) and (c) of 
this section and in the case of the loan program under section 403 of 
16 use 2703. 
the Public Utility Regulatory Policies Act of 1978), of such rules and 
regulations as may be necessary to fully implement his responsibil-
16 use 2701. 
ities under title IV of the Public Utility Regulatory Policies Act of 
1978 and the amendments thereto made by this section. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 719 
(e) Not later than three months after the date of the enactment of 
this Act, the Secretary shall complete a study of the existing Federal 
programs and policies relating to the development and commercial-
ization of small-scale hydropower, including (1) a suryey and descrip-
tion of such Federal programs and policies, (2) an assessment of the 
efficacy of such Federal programs and related policies, and (3) an 
identification of any need for consolidation, reorganization, or change 
in such programs and policies in order to improve and insure their 
effectiveness. 
AUTHORIZATIONS OF APPROPRIATIONS 
Study. 
SEC. 409. (a) There is authorized to be appropriated for each of the 42 use 7375. 
fiscal years 1981 and 1982 not to exceed $10,000,000 for loans under 
section 402 of the Public Utility Regulatory Policies Act of 1978, in 16 use 2702. 
addition to any amounts authorized for such loans by that Act; and 
the amounts appropriated pursuant to this subsection shall remain 
available until expended. 
Ot)) There is authorized to be appropriated for each of the fiscal 
years 1981 and 1982 not to exceed $100,000,000 for loans under section 
403 of the Public Utility Regulatory Policies Act of 1978; and the 16 use 2703. 
amounts appropriated pursuant to this subsection shall remain 
available until expended. 
(c) There is authorized to be appropriated for the fiscal year 1981 
not to exceed $10,000,000 to carry out section 406 of this Act (relating 16 use 2706. 
to energy self-sufficiency initiatives). 
TITLE 
V—SOLAR 
ENERGY 
AND 
ENERGY 
CONSERVATION 
SHORT TITLE 
SEC. 501. This title may be cited as the "Solar Energy and Energy 
Conservation Act of 1980". 
Solar Energy 
and Energy 
eonservation 
Act of 1980. 
12 u s e 3601 
note. 
SUBTITLE A—SOLAR ENERGY AND ENERGY CONSERVATION BANK 
SHORT TITLE 
SEC. 502. This subtitle may be cited as the 
Energy Conservation Bank Act". 
'Solar Energy and 
Solar Energy 
and Energy 
Conservation 
Bank Act. 
12 u s e 3601 
note. 
PURPOSE 
SEC. 503. It is the purpose of this subtitle to encourage energy 
conservation and the use of solar energy, and thereby reduce the 
Nation's dependence on foreign sources of energy supplies, by estab-
lishing a Solar Energy and Energy Conservation Bank (hereafter 
referred to as the "Bank"). 
12 u s e 3601. 
DEFINITIONS 
SEC. 504. For purposes of this subtitle— 
(1) the term "Board" means the Board of Directors of the Bank, 
which is established pursuant to section 506(a); 
(2) the term "residential building" means any building used as 
a residence which contains not more than 4 dwelling units and 
has a system for heating or cooling, or both; 
12 u s e 3602. 
79-194 
O—81—pt. 1 
49 : QL3 
94 STAT. 720 
PUBLIC LAW 96-294—JUNE 30, 1980 
(3) the term "multifamily residential building" means any 
building used as a residence which contains 5 or more dwelling 
units and has a system for heating or cooling, or both; 
(4) the term "commercial building" means any building other 
than a residential, or multifamily residential, building which is 
used primarily to carry on a business (including any nonprofit 
business) and is not used primarily for the manufacture or 
production of raw materials, products, or agricultural commod-
ities; 
(5) the term "agricultural building" means any building used 
exclusively in connection with the production, harvesting, stor-
age, or drying of agricultural commodities; 
(6) the term "residential energy conserving improvements" 
means, with respect to a residential, or multifamily residential, 
building— 
(A) caulking and weatherstripping; 
(B) furnace efficiency modifications including— 
(i) replacement burners, furnaces, boilers, or any 
combination thereof which, as determined by the Board, 
substantially increases the energy efficiency of the heat-
ing system; 
(ii) devices for modifying flue openings which will 
increase the energy efficiency of the heating system; and 
(iii) electrical or mechanical furnace ignition systems 
which replace standing gas pilot lights; 
(C) clock thermostats; 
(D) ceiling, attic, wall, floor, and duct insulation; 
(E) water heater insulation; 
(F) storm windows and doors, multiglazed windows and 
doors, heat-absorbing or heat-reflecting window and door 
materials; 
(G) devices associated with load management techniques; 
(H) such other improvements (not including solar energy 
systems) as the Board by rule identifies for purposes of this 
subtitle; and 
(I) planning and technical services, any residential energy 
audit, and any conversion from master utility meters to 
individual utility meters, which are directly related to and 
undertaken with the installation of any of the items speci-
fied in subparagraphs (B) through (H); 
(7) the term "commercial energy conserving improvements" 
means the installation or the modification of an installation 
which is designed primarily to reduce the consumption of petro-
leum, natural gas, or electrical power in a commercial or agricul-
tural building, including— 
(A) caulking and weatherstripping; 
(B) the insulation of the building structure and any sys-
tems within the building; 
(C) storm windows and doors, multiglazed windows and 
doors, heat-absorbing or heat-reflecting window and door 
systems, glazing, reductions in glass area, and other window 
and door system modifications; 
(D) automatic energy control systems; 
(E) equipment, associated with automatic energy control 
systems, which is required to operate variable steam, hy-
draulic, and ventilating systems; 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 721 
(F) furnace, or utility plant and distribution system, modi-
fications including— 
(i) replacement burners, furnaces, boilers, or any 
combination thereof, which (as determined by the 
Board) substantially increases the energy efficiency of 
the heating system; 
(ii) devices for modifying flue openings which will 
increase the energy efficiency of the heating system; and 
(iii) electrical or mechanical furnace ignition systems 
which replace standing gas pilot lights; 
(G) replacement or modification of a lighting system which 
increases the energy efficiency of the lighting system with-
out increasing the overall illumination of the building 
(unless the increase in illumination is necessary to conform 
to any applicable State or local law or the increase is 
considered appropriate by the Board); 
(H) energy recovery systems; 
(I) cogeneration systems which produce electricity, as well 
as steam or other forms of thermal or mechanical energy, 
and which meet such fuel efficiency requirements as the 
Board may by rule prescribe; 
(J) such other improvements (not including solar e n e r ^ 
systems) as the Board identifies, by rule, for purposes of this 
subtitle; and 
(K) planning and technical services, and any commercial 
energy audit, which are directly related to and undertaken 
with the installation, or the modification of an installation, 
which includes any of the items specified in subparagraphs 
(B) through (J). 
(8) the term "solar energy system" means, with respect to a 
building, any addition, alteration, or improvement which is 
designed to utilize wind energy, energy produced by a wood-
burning appliance, or solar energy, either of the active type 
based on mechanically forced energy transfer or of the passive 
type based on convective, conductive, or radiant energy transfer 
(or some combination of these types), to reduce the energy 
requirements of the building, and which is in conformity with 
such criteria and standards as shall be prescribed by the Board in 
consultation with the Secretary of Housing and Urban Develop-
ment, the Secretary of Energy, and the National Institute of 
Building Sciences, except that such term shall include solar 
process heat devices, solar electric devices, and any earth shel-
tered building where such sheltering substantially reduces the 
energy requirements of such building from nonrenewable energy 
sources and shall include only those fireplaces which are integral 
parts of a system which is designed to utilize passive type solar 
energy; 
(9) the term "financial institution" means any lender (includ-
ing any nonprofit entity and any State or local governmental 
entity) designated by the Board based on the qualifications 
established for the insurance of financial institutions under 
section 2 of title I of the National Housing Act, or any utility 12 USC 1703. 
providing financing for the purchase and installation of residen-
tial energy conservation measures in accordance with the re-
quirements of title II of the National Energy Conservation Policy 
Act; 
42 USC 8211. 
(10) the term "residential energy audit" means— 
94 STAT. 722 
PUBLIC LAW 96-294—JUNE 30, 1980 
(A) an inspection or energy audit of a residential, or 
multifamily residential, building, or a dwelling unit in such 
building, performed for purposes of title II or VII of the 
42 use 8211, 
National Energy Conservation Policy Act; or 
pos«, p. 752. 
^g^ g^^ onsite inspection of a residential, or multifamily 
inspection of 
residential, building, or a dwelling unit in such building, 
residential or 
which includes a determination of and provides information 
multifamily 
o n — 
buildmg. 
0 ^jjg type, quantity, and rate of energy consumption 
of such building or dwelling unit; 
(ii) energy conserving maintenance and operating 
procedures which can be employed to significantly 
reduce the energy consumption of such building or 
dwelling unit; 
(iii) in the case of a residential building, a multifamily 
residential building which does not contain a central 
heating or cooling system, or a dwelling unit in such 
building, the cost of purchasing and installing appropri-
ate residential energy conserving improvements, a solar 
energy system, or both, and the savings in energy costs 
which are likely to result from the installation of such 
improvements or system; and 
(iv) in the case of a multifamily residential building 
which contains a central heating or cooling system, or a 
dwelling unit in such building, the need if any, for the 
purchase and installation of appropriate residential 
energy conserving improvements, a solar energy 
system, or both; and 
(11) the term "commercial energy audit" means— 
(A) an energy audit performed for purposes of title VII of 
the National Energy Conservation Policy Act; or 
(B) an onsite inspection of a commercial or agricultural 
building which includes a determination of, and provides 
information on— 
(i) the type, quantity, and rate of energy consumption 
of such building; 
(ii) appropriate energy conserving maintenance and 
operating procedures which can be employed to signifi-
cantly reduce the energy consumption of such building; 
and 
(iii) the need if any, for the purchase and installation 
of commercial energy conserving improvements, a solar 
energy system, or both, in such building. 
Part 1—Establishment and Operation of the Bank 
ESTABUSHMENT OF THE BANK 
Solar Energy 
SEC. 505. (a) There is hereby created the Solar Energy and Energy 
and Enerp 
Conservation Bank which shall be in the Department of Housing and 
BaniL^^^ ^°^ 
Urban Development and shall have the same powers as those powers 
12 use 3603. 
given to the Government National Mortggige Association by section 
12 use 1723a. 
309(a) of the National Housing Act. The Bank shall not exist after 
September 30,1987. 
Audit. 
(b) The General Accounting Office shall audit, not later than the 
date occurring 2 years after the date of the enactment of this subtitle, 
and not later than each date occurring 3 years after such audit, the 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 723 
financial transactions of the Bank, and for this purpose shall have 
access to all of the books, records, and accounts of the Bank. 
(c) The Bank may impose fees or charges for its services which shall 
be deposited into the miscellaneous receipts of the Treasury. 
BOARD OF DIRECTORS 
SEC. 506. (a) The Bank shall be governed by a Board of Directors. 12 use 3604. 
The Board shall consist of the Secretary of Housing and Urban 
Development, the Secretary of Energy, the Secretary of the Treasury, 
the Secretary of Agriculture, and the Secretary of Commerce. 
(b) Three members of the Board shall constitute a quorum. 
(c) The Chairperson of the Board shall be the Secretary of Housing 
and Urban Development. 
(d) The President of the Bank shall be the Secretary of the Board. 
(e) The Board shall carry out the functions of the Bank as set forth 
in this subtitle and shall adopt such regulations, subject to the 
provisions of section 7(o) of the Department of Housing and Urban 
Development Act (42 U.S.C. 3535(o)), as the Board determines are 
necessary to carry out such functions. 
(f) The Board shall provide to the Secretary of the Treasury such 
information as the Secretary of the Treasury determines is necessary 
to insure that no individual is allowed for the same expenditure 
both— 
(1) a credit against taxes under section 38 or section 44C of the 
Internal Revenue Code of 1954; and 
26 USC 38, 44C. 
(2) financial assistance under this subtitle. 
OFFICERS AND PERSONNEL 
SEC. 507. (a) There is established in the Department of Housing and President of the 
Urban Development the position of President of the Bank, which ^^"^ 
shall be filled by an individual appointed by the President of the ^^ ^^^ ^^"^• 
United States with the advice and consent of the Senate and which 
shall be compensated at the rate now or thereafter prescribed for 
executive level V by section 5316 of title 5, United States Code. 44 FR 58678. 
Ot)) The President of the Bank shall appoint an Executive Vice 
President for Energy Conservation, and an Executive Vice President 
for Solar Energy, who shall be paid at a rate set by the Board and 
shall have the functions, powers, and duties prescribed by the 
President of the Bank. 
(c) Subject to the direction of the Board, the President of the Bank Functions. 
shall manage and supervise the affairs of the Bank with the assist-
ance of the Executive Vice Presidents and shall perform any func-
tions of the Bank which the Board may prescribe. 
(d) The Secretary of Housing and Urban Development may permit 
the Bank to utilize the services or personnel of the Department of 
Housing and Urban Development, including the personnel of the 
Government National Mortgage Association, for the purpose of 
carrying out this subtitle. 
ADVISORY COMMITTEES 
SEC 508. (a) As part of the Bank, there is established an Energy 
Conservation Advisory Committee composed of 5 members which 
shall provide advice to the Board for the purpose of assisting the 
Bank in carrying out the activities of the Bank which relate to 
residential and commercial energy conserving improvements. The 
Energy 
Conservation 
Advisory 
Committee. 
Establishment. 
12 USC 3606. 
94 STAT. 724 
PUBLIC LAW 96-294—JUNE 30, 1980 
Solar Energy 
Advisory 
Committee. 
Membership. 
Term of office. 
members of the advisory committee shall be appointed by the Board, 
from among individuals who are not officers or employees of any 
governmental entity, as follows: 
(1) One individual who is able to represent the views of 
consumers as a result of the individual's education, training, and 
experience. 
(2) One individual who is able to represent the views of 
financial institutions as a result of the individual's education, 
training, and experience. 
(3) One individual who is able to represent the views of build-
ers as a result of the individual's education, training, and 
experience. 
(4) One individual who is able to represent the views of 
architectural or engineering interests as a result of the individ-
ual's education, training, and experience. 
(5) One individual who is able to represent the views of 
producers or installers of residential and commercial energy 
conserving improvements as a result of the individual's educa-
tion, training, and experience. 
(b) As part of the Bank, there is established a Solar Energy 
Advisory Committee composed of 5 members which shall provide 
advice to the Board for the purpose of assisting the Bank in carrying 
out the activities of the Bank which relate to solar energy systems. 
The members of the advisory committee shall be appointed by the 
Board, from among individuals who are not officers or employees of 
any governmental entity, as follows: 
(1) One individual who is able to represent the views of 
consumers as a result of the individual's education, training, and 
experience. 
(2) One individual who is able to represent the views of 
financial institutions as a result of the individual's education, 
training, and experience. 
(3) One individual who is able to represent the views of build-
ers as a result of the individual's education, training, and 
experience. 
(4) One individual who is able to represent the views of 
architectural or engineering interests as a result of the individ-
ual's education, training, and experience. 
(5) One individual who is able to represent the views of the 
solar energy industry as a result of the individual's education, 
training, and experience. 
(c)(1) Except as provided in paragraphs (2) and (3), members of the 
Energy Conservation Advisory Committee and the Solar Energy 
Advisory Committee shall be appointed for terms of 2 years, 
(2) Of the members first appointed, those appointed pursuant to 
paragraphs (1) and (2) of subsections (a) and (b) shall be appointed for 
a term of 3 years and those appointed pursuant to paragraphs (3), (4), 
and (5) of subsections (a) and (b) shall be appointed for a term of 2 
years. 
(3) Any member appointed to fill a vacancy occurring before the 
expiration of the term for which the member's predecessor was 
appointed shall be appointed only for the remainder of such term. A 
member may serve after the expiration of the member's term until 
the member s successor has taken office. 
(d) If any member of the Energy Conservation Advisory Committee 
or the Solar Energy Advisory Committee becomes an officer or 
employee of any governmental entity, the member may continue as a 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 725 
member of such advisory committee for not longer than the 90-day 
period beginning on the date the member becomes such an officer or 
employee. 
(e) Subject to the availability of appropriations, members of the 
Energy Conservation Advisory Committee and the Solar Energy 
Advisory Committee shall each be paid at a rate equal to the daily 
equivalent of the maximum annual rate of basic pay in effect for 
grade GS-15 of the General Schedule (5 U.S.C. 5332(a)) for each day 44 FR 58672. 
(including travel time) during which they are engaged in the actual 
performance of 
the duties vested in such advisory committee. 
(f) Three members of the Energy Conservation Advisory (Dommittee Quorum. 
shall constitute a quorum, and 3 members of the Solar Energy 
Advisory (Committee shall constitute a quorum, but a lesser number 
of members of either advisory committee may hold hearings. 
(g) The Chairperson of the Energy (Conservation Advisory C!ommit-
tee and the Chairperson of the Solar Energy Advisory Committee 
sh£dl each be elected by the members of such advisory committee. 
(h) The Energy CHonservation Advisory CJommittee and the Solar Termination. 
Energy Advisory Committee shsill not terminate until the Bank 
ceases to exist. 
PROVISION OF FINANCIAL ASSISTANCE 
SEC. 509. (a) Subject to the conditions contained in sections 513,514, 1
2 use 3607. 
and 515 and the limitations contained in sections 516 and 517, the 
Bank may make payments to financial institutions to provide finan-
cial assistance in the form o
f
— 
(1) reductions of the principal obligations of loans, or portions 
of loans, made— 
(A)(i) to owners of, and tenants in, existing residential and 
multifamily residential buildings for the purchase and in-
stallation of residential energy conserving improvements in 
such buildings; and (ii) to owners who occupy, and tenants in, 
existing commercial and agricultural buil(ungs for the pur-
chase and installation of commercial energy conserving 
improvements in such buildings; and 
(BXi) to owners of existing residential, multifamily resi-
dential, commercial, and agricultural buildings for the pur-
chase and installation of solar energy systems in such 
buildings; (ii) to builders of newly constructed or substan-
tially^ rehabilitated residential buildings for the purchase 
and installation of solar energy systems in such buildings; 
and (iii) to purchasers of newly constructed or substantially 
rehabilitated residential, multifamily residential, commer-
cial, and agricultur£il buildings which have such systems; 
(2) prepajonents of the interest which would otherwise be due 
with respect to such loans, or portions of loans; and 
(3) grants to owners of, and tenants in, existing residential 
buildings and tenants in existing multifamily residential build-
ings for the purchsise and installation of residential energy 
conserving improvements in such buildings. 
(b) Financial assistance may be provided under subsection (a) only Conditions. 
i
f
— 
(1) the expenditures for residential and commercial energy 
conserving improvements and solar energy systems, made using 
financial assistance provided under this subtitle, are made after 
the date of 
the enactment of this subtitle; or 
94 STAT. 726 
PUBLIC LAW 96-294—JUNE 30, 1980 
(2) the financial assistance is provided in the form described in 
paragraph (1) or (2) of subsection (a) and— 
(A) the financial assistance is for the purchase and instal-
lation of residential or commercial energy conserving 
improvements; 
(B) the purchase and installation of residential or commer-
cial energy conserving improvements was financed by a loan 
made after January 1, 1980, and before the date of the 
enactment of this subtitle; 
(C) the financial assistance is provided not later than 90 
days after the date of the promulgation by the Board of 
regulations with respect to such financial assistance; 
(D) the determination of the amount of the 
financial 
assistance pursuant to section 511 is made on the basis of the 
amount of the principal obligation of the loan outstanding on 
the date of the provision of such financial assistance; and 
(E) the owner or tenant receiving such loan has not applied 
for or received any credit against taxes allowed by section 38 
26 use 38, 44C. 
or section 44C of the Internal Revenue Code of 1954 for the 
expenditures made with the proceeds of such loan, or portion 
of a loan. 
(c) The amount of any financial assistance provided under this 
subtitle shall not be included in the gross income of any person for 
26 use 1 et seq. 
purposes of the Internal Revenue Code of 1954, and such person shall 
not receive any increase in basis under the Internal Revenue Code of 
1954 which is attributable to the amount of any financial assistance 
provided under this subtitle. 
ESTABLISHING LEVELS OF FINANCIAL ASSISTANCE 
12 use 3608. 
SEC. 510. (a) The Board shall establish, from time to time, the 
various levels of financial assistance which will be made under 
section 509, subject to the maximum amounts allowed under sections 
511 and 512. 
03) In establishing such levels the Board shall consider at least— 
(1) the prevailing market rates of interest for home mortgages, 
home improvement loans, commercial and agricultural building 
loans, and Federal Government and corporate bonds; 
(2) the availability of other Federal incentives and subsidies for 
energy conservation expenditures and solar energy system ex-
penditures, including Federal tax credits; 
(3) the costs and efficiencies of nonrenewable energy resources 
and systems, residential and commercial energy conserving 
improvements, and solar energy systems; and 
(4) the levels of financial assistance needed to induce owners 
and tenants from various income groups to purchase and install 
residential and commercial energy conserving improvements 
and solar energy systems in residential, multifamily residential, 
commercial, and agricultural buildings and to induce the pur-
chase of newly constructed or substantially rehabilitated build-
ings which include solar energy systems. 
MAXIMUM AMOUNTS OF FINANCIAL ASSISTANCE FOR RESIDENTIAL AND 
COMMERCIAL ENERGY CONSERVING IMPROVEMENTS 
12 use 3609. 
SEC 511. (a) The maximum amount of financial assistance which 
may be provided to an owner or tenant under this subtitle for the 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 727 
purchase and installation of residential energy conserving improve-
ments in a residential building may not exceed— 
(1) in the case of an owner or tenant whose income does not 
exceed an amount equal to 80 percent of the median area 
income— 
(A) an amount equal to 50 percent of the cost of the 
residential energy conserving improvements; or 
(B) $1,250 in the case of a residential building with one 
dwelling unit, $2,000 in the case of a residential building 
with 2 dwelling units, $2,750 in the case of a residential 
building with 3 dwelling units, or $3,500 in the case of a 
residential building with 4 dwelling units, 
whichever is less; 
(2) in the case of an owner or tenant whose income exceeds an 
amount equal to 80 percent, but does not exceed an amount equal 
to 100 percent, of the median area income— 
(A) an amount equal to 35 percent of the cost of the 
residential energy conserving improvements; or 
(B) $875 in the case of a residential building with one 
dwelling unit, $1,400 in the case of a residential building 
with 2 dwelling units, $1,925 in the case of a residential 
building with 3 dwelling units, or $2,450 in the case of a 
residential building with 4 dwelling units, 
whichever is less; 
(3) in the case of an owner or tenant whose income exceeds an 
amount equal to 100 percent, but does not exceed an amount 
equal to 120 percent, of the median area income— 
(A) an amount equal to 30 percent of the cost of the 
residential energy conserving improvements; or 
(B) $750 in the case of a residential building with one 
dwelling unit, $1,200 in the case of a residential building 
with 2 dwelling units, $1,650 in the case of a residential 
building with 3 dwelling units, or $2,100 in the case of a 
residential building with 4 dwelling units, 
whichever is less; and 
(4) in the case of an owner or tenant whose income exceeds an 
amount equal to 120 percent, but does not exceed an amount 
equal to 150 percent, of the median area income— 
(A) an amount equal to 20 percent of the cost of the 
residential energy conserving improvements; or 
(B) $500 in the case of a residential building with one 
dwelling unit, $800 in the case of a residential building with 
2 dwelling units, $1,100 in the case of a residential building 
with 3 dwelling units, or $1,440 in the case of a residential 
building with 4 dwelling units, 
whichever is less. 
(b) The maximum amount of financial assistance which may be 
provided to an owner or tenant under this subtitle for the purchase 
and installation of residential energy conserving improvements in a 
multifamily residential building may not exceed— 
(1) an amount equal to 20 percent of the cost of such improve-
ments; or 
(2) the sum of $400 times the number of dwelling units in such 
building in the case of an owner, or $400 in the case of a tenant, 
whichever is less. 
(c) The maximum amount of financial assistance which may be 
provided under this subtitle to an owner of, or tenant in, a commer-
94 STAT. 728 
PUBLIC LAW 96-294—JUNE 30, 1980 
cial or agricultural building for the purchase and installation of 
commercial energy conserving improvements may not exceed an 
amount equal to 20 percent of the cost of such improvements or 
$5,000, whichever is less. 
MAXIMUM AMOUNTS OP FINANCIAL ASSISTANCE FOR SOLAR ENERGY 
SYSTEMS 
12 use 3610. 
SEC. 512. (a) Subject to subsection (d)(2), the maximum amount of 
financial assistance which may be provided under this subtitle to an 
owner of an existing residential building for the purchase and 
installation of a solar energy system in such building, or to a 
purchaser or builder of a newly constructed or substantially rehabili-
tated residential building which has such a system, may not exceed— 
(1) in the case of an owner or purchaser whose income does not 
exceed an amount equal to 80 percent of the median area 
income— 
(A) an amount equal to 60 percent of the cost of the solar 
energy system; or 
(B) $5,000 in the case of a residential building with one 
dwelling unit, $7,500 in the case of a residential building 
with 2 dwelling units, or $10,000 in the case of a residential 
building with 3 or 4 dwelling units, 
whichever is less; 
(2) in the case of an owner or purchaser whose income exceeds 
an amount equal to 80 percent, but does not exceed an amount 
equal to 160 percent of the median area income— 
(A) an amount equal to 50 percent of the cost of the solar 
energy system; or 
(B) $5,000 in the case of a residential building with one 
dwelling unit, $7,500 in the case of a residential building 
with 2 dwelling units, or $10,000 in the case of a residential 
building with 3 or 4 dwelling units, 
whichever is less; 
(3) in the case of an owner or purchaser whose income exceeds 
an amount equal to 160 percent of the median area income— 
(A) an amount equal to 40 percent of the cost of the solar 
energy system; or 
(B) $5,000 in the case of a residential building with one 
dwelling unit, $7,500 in the case of a residential building 
with 2 dwelling units, or $10,000 in the case of a residential 
building with 3 or 4 dwelling units, 
whichever is less; and 
(4) in the case of a builder of a residential building— 
(A) an amount equal to 40 percent of the cost of the solar 
energy system; or 
(B) $5,000 in the case of a residential building with one 
dwelling unit, $7,500 in the case of a residential building 
with 2 dwelling units, or $10,000 in the case of a residential 
building with 3 or 4 dwelling units, 
whichever is less. 
O
t
>
) Subject to subsection (d)(2), the maximum amount of financial 
assistance which may be provided under this subtitle to an owner of 
an existing multifamily residential building for the purchase and 
installation of a solar energy system in such building, or to a 
purchaser of a newly constructed or substantially rehabilitated 
multifamily residential building which has such a system, either— 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 729 
(1) may not exceed— 
(A) an amount equal to 40 percent of the cost of the solar 
energy system; or 
(B) the sum of $2,500 times the number of dwelling units in 
such building, 
whichever is less; or 
(2) if the owner or purchaser certifies pursuant to procedures 
established by the Board that a majority of the dwelling units in 
such building are occupied by tenants whose income does not 
exceed an amount equal to 80 percent of the median area income, 
may not exceed— 
(A) an amount equal to 60 percent of the cost of the solar 
energy system; or 
(B) the sum of $2,500 times the number of dwelling units in 
such building, 
whichever is less. 
(c) Subject to subsection (dX2), the maximum amount of financial 
assistance which may be provided under this subtitle to an owner of 
an existing commercial or agricultural building for the purchase and 
installation of a solar energy system in such building, or to a 
purchaser of a newly constructed or substantially rehabilitated 
commercial or agricultural building which has such a system, may 
not exceed an amount equal to 40 percent of the cost of the solar 
energy system or $100,000, whichever is less. 
(d) In the case of financial assistance provided under this subtitle 
for the purchase and installation of a solar energy system in a 
building or for the purchase of a building which has such a system— 
(1) with respect to any active type solar energy system (subject 
to the limitations on the maximum amounts of such assistance 
contained in subsections (a), 0>), and (c)) the amount of such 
assistance provided after January 1, 1983, shall vary by the 
estimated amount of energy to be saved by the use of such 
system, unless the Board determines that such variance is not 
practicable; and 
(2) with respect to any passive tsrpe solar energy system, 
(despite the limitations on the maximum amounts of such assist-
ance contained in subsections (a), (b), and (c)) the amount of such 
assistance shall vary (to the extent practicable) by the estimated 
amount of energy to be saved by the use of such system, except 
that the amount of such assistance may not exceed $5,000 in the 
case of a residential building with one dwelling unit, $7,500 in the 
case of a residential building with 2 dwelling units, $10,000 in the 
case of a residential building with 3 or 4 dwelling units, $100,000 
in the case of 
a commercial or agricultural building, or the sum of 
$2,500 times the number of dwelling units in a multifamily 
residential building in the case of 
such a building. 
Active type solar 
energy system. 
Passive type 
solar energy 
system. 
GENERAL CONDITIONS ON HNANCIAL ASSISTANCE FOR LOANS 
SEC. 513. Financial assistance may be provided by a financial 1
2 use 36ii. 
institution under this subtitle with respect to a loan only i
f
— 
(1) the loan bears a rate of interest acceptable to the Board; 
(2) the security for the loan meets the requirements of the 
Board; 
(3) in the case of prepayment of interest by the Bank with 
respect to a loan, the financial institution agrees to repay to the 
Bank that portion of such prepayment which is in excess of the 
Interest 
prepayment, 
waiver. 
94 STAT. 730 
PUBLIC LAW 96-294—JUNE 30, 1980 
actual interest due on the loan at the time the borrower fails to 
meet his or her obligation under the loan, except that the Bank 
may waive the repayment where such excess is minimal; and 
(4) the borrower agrees to certify to the financial institution 
that the borrower has used the proceeds of the loan to purchase 
and install a solar energy system or residential or commercial 
energy conserving improvements, or to purchase a building with 
such a system, immediately after such purchase and installation 
or purchase of a building, which certification shall be made 
available to the Bank by the financial institution upon the 
request of the Board. 
12 u s e 3612. 
Term of 
repayment. 
Warranty. 
CONDITIONS ON FINANCIAL ASSISTANCE FOR RESIDENTIAL AND 
COMMERCIAL ENERGY CONSERVING IMPROVEMENTS 
SEC. 514. (a) In addition to the conditions contained in section 513, 
financial assistance may be provided under this subtitle to an owner 
or tenant with respect to a loan made for the purchase and installa-
tion of residential or commercial energy conserving improvements in 
a building only if— 
(1) the term of repayment of the loan is not less than 5 years 
and does not exceed 15 years, except that the financial institution 
may establish a shorter term of repayment at the request of the 
borrower and that there shall be no penalty imposed on the 
borrower if the loan is repaid before the end of the term of 
repayment; 
(2)(A) the manufacturer of such residential or commercial 
energy conserving improvements shall, in connection with such 
improvements, warrant in writing that the owner or tenant 
receiving the proceeds of such loan, the installation contractor 
who installs the improvements, and the supplier of the improve-
ments shall (for those improvements found within one year from 
the date of installation to be defective due to materials, manufac-
ture, or design), at a minimum, be entitled to obtain, within a 
reasonable period of time and at no charge, appropriate replace-
ment parts or materials, (B) the supplier of such residential or 
commercial energy conserving improvements shall, in connec-
tion with such improvements, provide, at a minimum, to the 
owner or tenant receiving the proceeds of such loan a warranty 
equivalent to that required under clause (A), and (C) the contrac-
tor for the installation of such residential or commercial energy 
conserving improvements shall, in connection with such im-
provements, warrant in writing that, at a minimum, any defect 
in materials, manufacture, design, or installation found within 
one year from the date of installation shall be remedied without 
charge and within a reasonable period of time; 
(3) the residential or commercial energy conserving improve-
ments are installed in a building which was completed before 
January 1,1980; 
(4) in the case of a loan made to a tenant, the owner of such 
building agrees in writing to the installation of such residential 
or commercial energy conserving improvements before the 
making of the loan; 
(5) in the case of a loan made for the purchase and installation 
of residential energy conserving improvements, the financial 
institution informs the borrower before the loan is made of the 
availability of residential energy audits; 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 731 
(6) in the case of a loan made for the purchase and installation 
of commercial energy conserving improvements in a commercial 
or agricultural building, the borrower submits to the financial 
institution before the loan is made a copy of a commercial energy 
audit of such building; 
(7) in the case of a loan made to an owner of, or tenant in, a 
residential building, or a tenant in a multifamily residential 
building, the income of such owner or tenant does not exceed 150 
percent of the median area income; and 
(8) in the case of a loan made to an owner who occupies or a 
tenant of a commercial or agricultural building, the gross annual 
sales of such owner or tenant are not more than $1,000,000 
during the fiscal year of such owner or tenant preceding the 
fiscal year in which such loan is made. 
(b) Financial assistance may be provided by a financial institution 
under this subtitle in the form of a grant to an owner or tenant only 
if— 
(1) the owner or tenant has income which does not exceed 80 
percent of the median area income; 
(2) the owner or tenant certifies to the financial institution, as 
prescribed by the Board, that financial resources are available to 
the owner or tenant which when added to the financial assist-
ance provided under this subtitle will be sufficient to pay the cost 
of the residential energy conserving improvements purchased 
and installed with such grant; 
(3) the total cost of the residential energy conserving improve-
ments to be purchased and installed with such grant exceeds 
$250; 
(4) the supplier or contractor who sells or installs the residen-
tial energy conserving improvements purchased and installed 
with such grant is included on a list provided under section 213(a) 
of the National Energy Conservation Policy Act; 
(5)(A) the manufacturer of the residential energy conserving 
improvements to be purchased and installed with such grant 
shall, in connection with such improvements, warrant in writing 
that the owner or tenant receiving such grant, the installation 
contractor who installs the improvements, and the supplier of 
the improvements shall (for those improvements found within 
one year from the date of installation to be defective due to 
materials, manufacture, or design), at a minimum, be entitled to 
obtain, within a reasonable period of time and at no charge, 
appropriate replacement parts or materieds, (B) the supplier of 
such residential energy conserving improvements shall, in con-
nection with such improvements, provide, at a minimum, to the 
owner or tenant receiving such grant a warranty equivalent to 
that required under clause (A), and (C) the contractor for the 
installation of such residential energy conserving improvements 
shall, in connection with such improvements, warrant in writing 
that, at a minimum, any defect in materials, manufacture, 
design, or installation found within one year from the date of 
installation shall be remedied without charge and within a 
reasonable period of time; 
(6) the financial institution informs the owner or tenant of the 
availability of residential energy audits; 
(7) in the case of a grant made to a tenant, the owner of the 
building in which the residential energy conserving improve-
Commercial 
energy building 
audit. 
Owner or tenant 
grants. 
Post, p. 742. 
Warranty. 
94 STAT. 732 
PUBLIC LAW 96-294—JUNE 30, 1980 
ments are to be installed agrees in writing to the installation 
before the making of the grant; 
(8) the owner or tenant agrees to certify to the financial 
institution, immediately after such installation, that such owner 
or tenant has purchased and installed with the grant residential 
energy conserving improvements, which certiHcation shall be 
available to the Bank upon request; and 
(9) any residential energy conserving improvements purchased 
and installed with such grant are purchased and installed in a 
residential, or multifamily residential, building which was com-
pleted before January 1,1980. 
CONDITIONS ON FINANCIAL ASSISTANCE FOR SOLAR ENERGY SYSTEMS 
1
2 use 3613. 
SEC. 515. (a) In addition to the conditions contained in section 513, 
financial assistance may be provided under this subtitle to an owner 
or builder with respect to a loan made for the purchase and installa-
tion of a solar energy system, or to a purchaser for the purchase of a 
newly constructed or substantially rehabilitated building with such a 
system, only i
f
— 
Term o
f loan 
(1) the term of repajmient of 
the loan— 
repayment. 
(^j jj^ ^^le caso of a residential building, is not less than 5 
years in the case of an owner or purchaser, and does not 
exceed 30 years; or 
(B) in the case of a multifamily residential building, 
commercial building, or agricultural building, is not less 
than 5 years and does not exceed 40 years, 
except that the financial institution may establish a shorter terra 
of repajonent at the request of the borrower and that there shall 
be no penalty imposed on the borrower if the loan is repaid before 
the end of the term of repayment; 
Warranty. 
(2)(A) the manufacturer of such solar energy system, shall, in 
connection with such system, warrant in writing that the owner, 
builder, or purchaser receiving the proceeds of the loan, the 
installation contractor who installs the system, and the supplier 
of the system shall (for those solar energy systems found within 3 
years from the date of installation to be defective due to materi-
als, manufacture, or design), at a minimum, be entitled to obtain, 
within a reasonable period of time and at no charge, appropriate 
replacement parts or materials, (B) the supplier of such solar 
energy system shall, in connection with such system, provide, at 
a minimum, to such owner, builder, or purchaser a warranty 
equivalent to that required under clause (A), (C) the contractor 
for the installation of such solar energy system shall, in connec-
tion with such system, warrant in writing that, at a minimum, 
any defect in materials, manufacture, design, or installation 
found within one year from the date of installation shall be 
remedied without charge and within a reasonable period of time, 
and (D) the contractor for the installation of such solar energy 
system shall provide an onsite inspection of the system and its 
components for the purpose of discovering and remedying any 
defects during the 15 day period before the expiration of the 
warranty under clause (C), if the Board decides to require such 
an inspection; 
(3) in the case of a loan made to a purchaser or builder of a 
newly constructed or substantially rehabilitated residential or 
multifamily residential building, the purchaser or builder pro-
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 733 
vides certification that the building meets or exceeds the cost-
effective energy conservation standards established by the 
Secretary of Housing and Urban Development, which are in 
effect on the date of the enactment of this subtitle and as such 
standards may be revised after such date by the Secretary after 
consultation with the Board, the Secretary of Energy, the Secre-
tary of Agriculture, the National Institute of Building Sciences, 
the National Bureau of Standards, and any other Federal agency 
which is responsible for developing such standards; and 
(4) in the case of a loan made to an owner of an existing 
residential building after December 31, 1985, the income of such 
owner does not exceed an amount equal to 250 percent of the 
median area income. 
OaXD In addition to the conditions contained in section 513 and 
subsection (a), financial assistance may be provided by a financial 
institution to a builder under this subtitle for the purchase and 
installation of a solar energy system in a residential building only 
if— 
(A) the Board determines that— 
(i) in order to encourage the construction or substantial 
rehabilitation of a greater number of residential buildings 
containing solar energy systems it is necessary to provide 
financial assistance under this subtitle directly to builders; 
(ii) providing any financial assistance under this subtitle 
directly to builders is a more effective expenditure of such 
assistance to encourage the construction or substantial reha-
bilitation of residential buildings containing solar energy 
systems than providing such assistance only to the purchas-
ers of such buildings; and 
(iii) the Board, in consultation with the Secretary of the 
Treasury, is able to establish a procedure which will prevent 
the purchaser (who buys the building from the builder) of a 
residential building for which a builder received financial 
assistance under this subtitle from receiving additional 
assistance under this subtitle for the same expenditures for 
which the builder received assistance and from being al-
lowed a credit against taxes under section 38 or section 44C 
of the Internal Revenue Code of 1954 for such expenditures; 
(B) the Board establishes a procedure which prevents the 
purchaser (who buys the building from the builder) of a residen-
tial building for which a builder received financial assistance 
under this subtitle from receiving additional assistance under 
this subtitle for the same expenditures for which the builder 
received assistance and from being allowed a credit against taxes 
under section 38 or section 44C of the Internal Revenue Code of 
1954 for such expenditures; 
(C) the builder agrees to, and does, disclose to the purchaser 
(who buys the building from the builder) in writing at the time of 
signing the sales contract for such building— 
(i) the expenditures with respect to such building for which 
the builder received financial assistance under this subtitle; 
and 
(ii) that the purchaser may not be allowed a credit against 
taxes for such expenditures under section 38 or section 44C 
of the Internal Revenue Code of 1954; and 
(D) in addition to any other information required by this 
subtitle to be provided, the builder agrees to, and does, provide to 
Additional 
assistance, 
prohibition. 
26 u s e 38, 44C. 
Additional 
assistance, 
prohibition. 
94 STAT. 734 
PUBLIC LAW 96-294—JUNE 30, 1980 
26 use 38, 44C. 
Subsidized 
energy 
financing. 
Payments to 
utility. 
the Bank such information as the Board determines, in consulta-
tion with the Secretary of the Treasury, is necessary to assure 
that the purchaser (who buys the building from the builder) is 
not allowed a credit against taxes for such expenditures under 
section 38, or section 44C, of the Internal Revenue Code of 1954. 
(2) Any expenditures, made by a builder for the purchase and 
installation of a solar energy system in a building, for which the 
builder received financial assistance under this subtitle shall be 
considered expenditures from subsidized energy financing by the 
purchaser (who buys such building from the builder) for purposes of 
section 38 and section 44C of the Internal Revenue Code of 1954. 
(c) Payments may be made to a utility for the provision of financial 
assistance under this subtitle for the purchase and installation of a 
solar energy system only if the financial assistance is used for such 
purchase and installation in existing buildings. 
(d) In providing financial assistance with respect to loans for newly 
constructed and substantially rehabilitated residential buildings 
with solar energy systems, the Board shall establish a priority for 
residential buildings which contain at least a solar space heating or 
cooling system, except in areas or regions of the United States where 
it is impractical or inefficient to establish such a priority. 
LIMITATIONS ON THE PROVISION OF FINANCIAL ASSISTANCE FOR 
RESIDENTIAL AND COMMERCIAL ENERGY CONSERVING IMPROVEMENTS 
12 use 3614. 
SEC. 516. (a) An amount equal to not less than 80 percent of the 
funds appropriated for a fiscal year under the authorization con-
tained in section 522(a) shall be provided during such fiscal year for 
financial assistance under this subtitle for the purchase and installa-
tion of residential energy conserving improvements in residential 
and multifamily residential buildings. 
(b)(1) An amount equal to not less than 15 percent of the funds 
appropriated for a fiscal year under the authorization contained in 
section 522(a) shall be provided during such fiscal year for financial 
assistance for the purchase and installation of residential energy 
conserving improvements in residential buildings owned by individ-
uals whose income is less than 80 percent of the median area income, 
or in multifamily residential buildings with a majority of the dwell-
ing units occupied by such individuals. 
(2) Funds made available during any fiscal year for the provision of 
financial assistance required by paragraph (1) which are not 
expended during such fiscal year shall be available during the 
following fiscal year for the provision of any financial assistance 
under this subtitle for residential and commercial energy conserving 
improvements. 
(c) Any failure during any fiscal year to provide the amount of 
financial assistance required by subsection (a) or subsection (b) shall 
not delay the provision of other financial assistance under this 
subtitle. 
LIMITATIONS ON THE PROVISION OF FINANCIAL ASSISTANCE FOR SOLAR 
ENERGY SYSTEMS 
12 use 3615. 
SEC. 517. (aXD The total amount of all payments made to utilities in 
any fiscal year for the provision of financial assistance under this 
subtitle for the purchase and installation of solar energy systems 
shall not exceed 10 percent of the amount of funds appropriated for 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 735 
such fiscal year under the authorization contained in section 522(b), 
except that the Board may allow the total amount of such payments 
to exceed 10 percent of the amount of such funds, but not to exceed 20 
percent of the amount of such funds, if the Board determines that it 
would further the purpose of this subtitle of encouraging the use of 
solar energy. 
(2) The total amount of any payments provided to utilities for the 
provision of financial assistance under this subtitle for the purchase 
and installation of solar energy systems shall be distributed 
regionally, among utilities throughout the United States, in a reason-
able manner. 
Qi) An amount equal to not less than 70 percent of the funds 
appropriated for a fiscal year under the authorization contained in 
section 522G)) shall be provided during such fiscal year for financial 
assistance under this subtitle for the purchase and installation of 
solar energy systems in residential and multifamily residential 
buildings and for the purchase of residential and multifamily residen-
tial buildings which have such systems. 
(c)(1) An amount equal to not less than 5 percent of the funds 
appropriated for a fiscal year under the authorization contained in 
section 522(b) shall be provided during such fiscal year for financial 
assistance under this subtitle for the purchase and installation of 
solar energy systems in residential buildings owned by individuals 
whose income is less than 80 percent of the median area income, or in 
multifamily residential buildings with a majority of the dwelling 
units occupied by such individuals. 
(2) Funds made available during any fiscal year for the provision of 
financial 
assistance required by paragraph (1) which are not 
expended during such fiscal year shall be available during the 
following fiscal year for the provision of any financial assistance 
under this subtitle for solar energy systems. 
(d) Any failure during any fiscal year to provide the amount of 
financial assistance required by subsection (b) or subsection (c) shall 
not delay the provision of other financial assistance under this 
subtitle. 
PROMOTION 
SEC. 518. (a) The Bank shall promote the program established by 12 USC 3616. 
this subtitle by informing financial institutions, builders, and con-
sumers of the benefits of this program and by actively seeking their 
participation in the program. The Bank shall not duplicate any Duplication of 
promotion or assistance activities undertaken by the Department of activities. 
Energy, the Department of Housing and Urban Development, or 
other Federal agencies to encourage greater use of residential and 
commercial energy conserving improvements and solar energy sys-
tems, but shall cooperate with those agencies in— 
(1) the dissemination of information relating to residential and 
commercial energy conserving improvements and solar technol-
ogy and their applicability to new and existing construction; 
(2) the development and dissemination of reliable appraisal 
techniques with respect to residential and commercial energy 
conserving improvements and solar energy systems; 
(3) the provision of technical assistance to nonprofit entities, 
low-income groups, and local governments in the use of financial 
assistance under this subtitle to undertake solar and conserva-
tion strategies; and 
79-194 O—81—pt. 1 
50 : QL3 
94 STAT. 736 
PUBLIC LAW 96-294—JUNE 30, 1980 
(4) the provision of such other assistance and information as 
the Board determines is necessary to encourage the use of 
residential and commercial energy conserving improvements 
and solar energy systems. 
(b) The Bank shall seek the advice and assistance of the Federal 
Home Loan Mortgage Corporation and the Federal National Mort-
gage Association in coordinating the programs of the Bank with the 
secondary market for loans used to finance the purchase and installa-
tion of residential and commercial energy conserving improvements 
and solar energy systems. 
(c) Where possible the Bank shall coordinate its promotional 
program with promotional and assistance programs undertaken by 
State, regional, and local governments. 
(d) The Secretary is authorized to use any available means of 
communication to accomplish the goals of this section by using the 
electronic media, print media, and the United States Postal Service. 
Submittal to 
Congress and 
President. 
12 u s e 3617. 
Submittal to 
Congress. 
12 u s e 3618. 
REPORTS 
SEC. 519. (a) The Board shall submit an annual report, to the 
Congress and to the President of the United States which includes, 
among other matters, the views of the President of the Bank, the 
Energy Conservation Advisory Committee, and the Solar Energy 
Advisory Committee, with respect to— 
(1) the operation of the Bank during the previous year; 
(2) the problems of the energy conservation and solar energy 
industries, the Federal Government, and financial institutions 
which may be inhibiting the operation of the Bank or the 
acceptance by the public of the use of residential and commerical 
energy conserving improvements and solar energy systems; 
(3) the cost effectiveness of the program in terms of expendi-
ture, specific residential and commercial energy conserving 
improvements, and energy savings, using statistically valid sam-
ples of the improvements assisted under this subtitle; 
(4) the relative number of persons from various income groups 
who have received financial assistance under this subtitle; 
(5) the total energy savings achieved because of the assistance 
provided under this subtitle, based on an estimate of such savings 
using a statistically valid sample; and 
(6) recommendations for improvements in the operation of the 
Bank. 
(b) The Board shall submit to the Congress not later than 2 years 
after the date of the enactment of this subtitle a report on the 
limitation on the amount of financial assistance provided to utilities 
pursuant to section 517(a), including the recommendations of the 
Board on the continuation of the limitation and the level of such 
limitation. 
RULES AND REGULATIONS 
SEC. 520. As soon as practicable, but not later than 180 days after 
the date of the enactment of this subtitle, the Board shall issue such 
final rules and regulations as the Board determines are necessary to 
carry out this subtitle, including rules and regulations to assure that 
there will be no fraud in the provision of financial assistance through 
grants under this subtitle, except that any final rules and regulations 
with respect to multifamily residential, commercial, or agricultural 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 737 
buildings mav be issued later than 180 days after such date but not 
later than 270 days after such date. 
PENALTIES 
SEC. 521. Any person who knowingly makes any false statement or 
misrepresents any material fact with respect to any financial assist-
ance provided under this subtitle, or fails to make any disclosure or 
statement required by this subtitle, shall be fined not more than 
$10,000 or imprisoned not more than one year, or both, for each 
offense. 
FUNDING 
SEC. 522. (a) There is authorized to be appropriated to provide 
financial assistance under this subtitle for the purchase and in-
stallation of residential and commercial energy conserving 
improvements— 
(1) the sum of $200,000,000 for the fiscal year ending on 
September 30,1981, of which not more than $10,000,000 may be 
used to carry out section 518; 
(2) the sum of $625,000,000 for the fiscal year ending on 
September 30,1982, of which not more than $7,500,000 may be 
used to carry out section 518; 
(3) the sum of $800,000,000 for the fiscal year ending on 
September 30, 1983, of which not more than $7,500,000 may be 
used to carry out section 518; and 
(4) the sum of $875,000,000 for the fiscal year ending oh 
September 30,1984, of which not more than $7,500,000 may be 
used to carry out section 518. 
O
b
) There is authorized to be appropriated to provide financial 
assistance under this subtitle for the purchase and installation of 
solar energy systems— 
(1) the sum of $100,000,000 for the fiscal year ending on 
September 30,1981, of which not more than $10,000,000 may be 
used to carry out section 518; 
(2) the sum of $200,000,000 for the fiscal year ending on 
September 30,1982, of which not more than $7,500,000 may be 
used to carry out section 518; and 
(3) the sum of $225,000,000 for the fiscal year ending on 
September 30,1983, of which not more than $7,500,000 may be 
used to carry out section 518. 
(c) Any funds appropriated under the authorizations contained in 
this section shall remain available until expended. 
Part 2—Secondary Financing 
12 u s e 3619. 
Appropriation 
authorization. 
12 u s e 3620. 
Appropriation 
authorization. 
AUTHORITY OF SOLAR ENERGY AND ENERGY CONSERVATION BANK TO 
PURCHASE LOANS AND ADVANCES OF CREDIT FOR RESIDENTIAL ENERGY 
CONSERVING IMPROVEMENTS OR SOLAR ENERGY SYSTEMS 
SEC. 531. (a) Section 315(a) of the Federal National Mortgage 
Association Charter Act is amended— 
1
2 use i723g. 
(1) by striking out "(1) Whenever" and all that follows through 
"direct the Association" and inserting in lieu thereof "Unless the 
Board of Directors of the Solar Energy and Energy Conservation 
Bank established in section 505 of the Solar Energy and Energy 
Conservation Bank Act finds it unnecessary to utilize this section Ante, p. 722. 
94 STAT. 738 
PUBLIC LAW 96-294—JUNE 30, 1980 
in order to advance the national program of energy conservation 
in residential buildings, the Board shall direct the Bank"; and 
(2) by striking out paragraph (2). 
1
2 use I723g. 
(b) Section 315(b) of 
such Act is amended— 
(1) by striking out "Secretary" and "Association" and inserting 
in lieu thereof "Board" and "Bank", respectively; and 
(2) by striking out "which are insured under title I" and all 
that follows through the period at the end thereof and inserting 
in lieu thereof the following: ", including loans and advances 
made by public utilities in accordance with the requirements of 
42 use 8211. 
title II of the National Energy Conservation Policy Act, which 
are made for the purpose of financing, in whole or in part, the 
purchase and installation of residential energy conserving im-
provements or solar energy systems in residential buildings.". 
1
2 use I723g. 
(c) Section 315(c) of such Act is amended by striking out "Associ-
ation" and "Association's" each time they appear and inserting in 
lieu thereof "Bank" and "Bank's", respectively. 
(d) Section 315(d) of 
such Act is amended— 
(1) by inserting "or advance of credit" after "loan" each time it 
appears; and 
(2) by striking out "Association" and inserting in lieu thereof 
"Bank^'. 
(e) Section 315(e) of such Act is amended by striking out "Associ-
ation" and inserting in lieu thereof "Bank". 
(0 Section 315(f) of such Act is amended by striking out "Secretary" 
and inserting in lieu thereof "Board". 
(g) Section 315(g) of such Act is amended— 
(1) by striking out "and" at the end of 
paragraph (1); 
(2) by inserting "residential" before "energy conserving" in 
paragraph (2); 
(3) by inserting "or solar energy system" after "improve-
ments" in paragraph (2); 
(4) by inserting ", in whole or in part," after "financed" in 
paragraph (2); 
(5) by striking out "of this section." in paragraph (2) and 
inserting in lieu thereof "of the Solar Energy and Energy 
Ante, p. 719. 
Conservation Bank Act;" and; 
(6) by adding the following new paragraphs after paragraph (2): 
"(3) the term of 
repayment of 
such loan or advance of 
credit is not 
less than 5 years and not more than 15 years, except that there 
shall be no penalty imposed if the borrower repays the loan 
before the established repa3rment period; 
"(4) the interest rate charged and the security required with 
respect to such loan or advance of credit is acceptable to the 
Board; 
"(5) the amount of such loan or advance of credit does not 
exceed $15,000; 
"(6) the entity from which such loan or advance of credit is 
purchased agrees to loan or advance credit for the purpose 
specified in subsection (b) in an amount equal to the amount of 
the loan or advance of 
credit which is purchased; and 
"(7) such loan or advance of credit meets other requirements 
established by the Board as necessary to carry out this section in 
an efficient and effective manner.", 
(h) Section 315 of such Act is amended by adding the following new 
subsection at the end thereof: 
1
2 use I723h. 
"(h) For purposes of this section and section 316— 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 739 
"(1) the term 'Bank* means the Solar Energy and Energy Definitions. 
Conservation Bank established under section 505 of the Solar 
Energy and Energy Conservation Bank Act; 
Ante, p. 722. 
"(2) the term 'Board' means the Board of Directors of the Bank; 
"(3) the term 'residential building' has the meaning given such 
term in section 504(2) of the Solar Energy and Energy Conserva-
tion Bank Act; 
Ante, p. 719. 
"(4) the term 'residential energy conserving improvements* 
has the meaning given such term in section 504(6) of the Solar 
Energy and Energy Conservation Bank Act; and 
"(5) the term 'solar energy system' has the meaning given such 
term in section 504(8) of the Solar Energy and Energy Conserva-
tion Bank Act.", 
(i) The section heading of section 315 of such Act is amended to 
read as follows: 
"AUTHORITY OP SOLAR ENERGY AND ENERGY CONSERVATION BANK TO 
PURCHASE LOANS AND ADVANCES OF CREDIT FOR ENERGY CONSERV-
ING IMPROVEMENTS OR SOLAR ENERGY SYSTEMS". 
AUTHORITY OF SOLAR ENERGY AND ENERGY CONSERVATION BANK TO 
PURCHASE MORTGAGES SECURED BY NEWLY CONSTRUCTED HOMES 
WITH SOLAR ENERGY SYSTEMS 
SEC 532. (a) Section 316(a) of the Federal National Mortgage 
Association Charter Act is amended— 
(1) by striking out "The Secretary'* and inserting in lieu 
thereof "Unless the Board of Directors of the Solar Energy and 
Energy Conservation Bank established in section 505 of 
the Solar 
Energy and Energy Conservation Bank Act finds it unnecessary 
to utilize this section in order to advance the national program of 
energy conservation through the use of solar energy systems in 
residential buildings, the Board"; 
(2) by striking out "Association" and inserting in lieu thereof 
"Bank^';and 
(3) by striking out "loans and advances of credits'* and insert-
ing in lieu thereof "mortgages". 
(b) Section 316(b) of 
such Act is amended— 
(1) by striking out "Secretary", "Association", and "loans and 
advances of credit" in the first sentence and inserting in lieu 
thereof "Board", "Bank", and "mortgages", respectively; 
(2) by striking out "which are made to owners" in the first 
sentence and all that follows through the period at the end of 
such sentence and inserting in lieu thereof "which are secured by 
newly constructed one- to four-family dwelling units with solar 
energy systems and residential energy conserving improve-
ments meeting or exceeding cost-effective ener^ conservation 
standards established by the Secretary of Housing and Urban 
Development."; 
(3) by striking out "loan or advance of credit" the first time it 
appears in the second sentence and inserting in lieu thereof 
"mortgage"; 
(4) by striking out "fifteen" in paragraph (1) and inserting in 
lieu thereof "thirty"; 
(5) by striking out paragraphs (2) and (3) and inserting in lieu 
thereof the following new paragraphs: 
12 u s e 1723h. 
94 STAT. 740 
PUBLIC LAW 96-294—JUNE 30, 1980 
"(2) the interest rate charged with respect to such mortgage is 
acceptable to the Board; 
"(3) the principal amount of such mortgage does not exceed the 
principal amount which could be insured under section 203(b) of 
1
2 use 1709. 
the National Housing Act with respect to the dwelling unit 
concerned;"; 
(6) by striking out "loan or advance of 
credit" in jparagraphs (1), 
(4), and (5) and inserting in lieu thereof "mortgage ; 
(7) by striking out "Secretary" in paragraph (4) and inserting 
in lieu thereof *^oard"; 
(8) by striking out "and" at the end of paragraph (5); and 
(9) bv striking out paragraph (6) and inserting in lieu thereof 
the following new paragraphs: 
"(6) the dwelling which secures such mortgage is purchased 
after the date of enactment of the Solar Energy and Energy 
Ante, p. 719. 
Conservation Bank Act; and 
"(7) such mortgage meets other requirements established by 
the Board as necessary to carry out this section in an efficient 
and effective manner. . 
1
2 use i723h. 
(c) Section 316(c) of such Act is amended by striking out "Associ-
ation" and "Association's" each time they appear and inserting in 
lieu thereof "Bank" and "Bank's", respectively. 
(d) Section 316(d) of such Act is amended by striking out "loan" and 
"Association" each time they appear and mserting in lieu thereof 
"mortgage" and "Bank", respectively. 
(e) Section 316(e) of such act is amended by striking out "Associ-
ation" and "loans and advances of credit" and inserting in lieu 
thereof "Bank" and "mortgages", respectively. 
(f) Section 316(f) of 
such Act is amended by striking out "Secretary" 
and "$100,000,000" and inserting in Ueu thereof "Board" and 
"$800,000,000", respectively. 
(g) Section 316(g) of such Act is amended by striking out "Secre-
tary", "Association", "loans and advances of credit", "loan or ad-
vance", and "loans and advances" and inserting in lieu thereof 
"Board", "Bank", "mortgages", "mortgage", and "mortgages", 
respectively. 
(h) Section 316 of 
such Act is amended— 
(1) by striking out subsections (h), (i), and 0*); and 
(2) by striking out the section heading and inserting in lieu 
thereof the following: 
"AUTHORITY OF SOLAR ENERGY AND ENERGY CONSERVATION BANK TO 
PURCHASE MORTGAGES SECURED BY NEWLY CONSTRUCTED HOMES 
WITH SOLAR ENERGY SYSTEMS". 
REPEAL 
SEC 533. Section 314 of the Federal National Mortgage Association 
1
2 use i723f. 
Charter Act is repealed. 
SECONDARY FINANCING BY FEDERAL HOME LOAN MORTGAGE 
CORPORATION AND BY FEDERAL NATIONAL MORTGAGE ASSOCIATION 
1
2 use 1454. 
SEC. 534. (aXD Section 305(aXl) of the Federal Home Loan Mort-
gage Corporation Act is amended by inserting the following before 
the period at the end of the first sentence: "or from any public utility 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 741 
canying out activities in accordance with the requirements of title II 
of the National Energy Conservation Policy Act if the residential 42 use 8211. 
mortgage to be purchased is a loan or advance of credit the original 
proceeds of 
which are applied for in order to finance the purchase and 
installation of residential energy conservation measures (as defined 
in section 210(11) of the National Energy Conservation Policy Act) in infra. 
residential real estate". 
(2) Section 302(h) of such Act is amended by inserting ", or made by 1
2 use 1451. 
a public utility and purchased by the Corporation pursuant to the 
first sentence of section 305(aXl)," after "credit for such purposes" in Ante, p. 740. 
the third sentence. 
(b) Section 302(b)(3) of the Federal National Mortgage Association 
Charter Act is amended by inserting the following before the period 1
2 use 1717. 
at the end of the first sentence: ", including loans or advances of 
credit made, by any public utility carr3dng out activities in accord-
ance with the requirements of title II of the National Energy 
Conservation Policy Act, for the purpose of financing the purchase 
and installation of residential energy conservation measures (as 
defined in section 210(11) of the National Energy Conservation Policy 
Act) in a residential building". 
SUBTITLE B—UTILITY PROGRAM 
DEFINITIONS 
SEC. 541. Section 210 of the National Energy Conservation Policy 
Act is amended by striking out paragraph (9) and inserting in lieu 42 use 8211. 
thereof the following: 
"(9) The term 'residential building' means any building used 
for residential occupancy which— 
"(A) is not a new building to which final standards under 
sections 304(a) and 305 of the Energy Conservation and 
Production Act apply, and 
42 use 6833, 
"(B) contains at least one but not more than four dwelling 68^'*-
units and has a system for heating or cooling, or both, except 
that, after January 1,1982, such term shall also include any 
building which contains more than four dwelling units 
unless such building contains a heating or cooling system, or 
both, which is a central system.". 
STATE UST OF SUPPUERS AND CONTRACTORS—REQUIRED WARRANTY 
SEC. 542. (a) Section 210(11) of the National Energy Conservation 
Policy Act is amended by striking out the last sentence. 
42 use 8211. 
(b) Section 212ft)) of such Act is amended by striking out "and" at 42 use 8213. 
the end of paragraph (2), by redesignating paragraph (3) as paragraph 
(4), and by inserting the following new paragraph after paragraph (2): 
"(3) shall include provisions requiring that— 
"(A) the manufacturer of any residential energy conserva-
tion measure offered under a utility program shall, in 
connection with such measure, warrant in writing that the 
residential customer for whom the measure is installed, the 
installation contractor who installs the measure, and the 
supplier of the measure shall (for those measures found 
within one year from the date of installation to be defective 
due to materials, manufacture, or design), at a minimum, be 
94 STAT. 742 
PUBLIC LAW 96-294—JUNE 30, 1980 
entitled to obtain, within a reasonable period of time and at 
no charge, appropriate replacement parts or materials; 
"(B) the supplier of any residential energy conservation 
measure offered under a utility program shall, in connection 
with such measure, provide, at a minimum, to any person 
who purchases the measure from such supplier a warranty 
equivalent to that required under subparagraph (A); and 
"(C) the contractor for the installation of any residential 
energy conservation measure offered under a utility pro-
gram shall, in connection with such measure, warrant in 
writing that, at a minimum, any defect in materials, manu-
facture, design or installation found within one year from 
the date of installation shall be remedied without charge and 
within a reasonable period of time; and". 
42 use 8214. 
(c) Section 213(aX2)(B) of such Act is amended by inserting "and 
who agrees to comply with the provisions promulgated under section 
Ante, p. 741. 
212(bX3)" after "(E)". 
42 use 8221. 
(d) Section 220(d) of such Act is amended to read as follows: 
"(d) WARRANTIES.—With respect to section 2120bX3) concerning 
warranties, all Federal and State laws otherwise applicable to such 
warranties sheill apply, except to the extent inconsistent with such 
section.". 
STATE UST OF FINANCIAL INSTITUTIONS 
SEC. 543. Section 213(aX3) of the National Energy Conservation 
42 use 8214. 
Policy Act is amended by inserting the following before the semicolon 
at the end thereof: ", and provides that such list shall include a 
notation informing customers that financial assistance under the 
Ante, p. 719. 
Solar Energy and Energy Conservation Bank Act may be available 
from such lending institutions". 
TREATMENT OF UTILITY COSTS 
SEC. 544. Section 215 of the National Energy Conservation Policy 
42 use 8216. 
Act is amended— 
(1) by striking out everything that follows "subsection (b) to be" 
in subsection (cXlXC) and inserting in lieu thereof the following: 
"recovered in the manner specified by the State regulatory 
authority which has ratemaking authority over such utility (or 
in the case of a nonregulated utility in the manner specified by 
such nonregulated utility); except that the amount that may be 
recovered directly from a residential customer for whom the 
activities described in subsection Qji) are performed shall not 
exceed a total of $15 per dwelling unit or the actual cost of such 
activities, whichever is less; in determining the amount to be 
recovered directly from customers as provided under this subpar-
agraph, the State regulatory authority (in the case of a regulated 
utility) or the utility (in the case of a nonregulated utility) shall 
take into consideration, to the extent practicable, the customers' 
ability to pay and the likely levels of participation in the utility 
program which will result from such recovery."; 
(2) by striking out subsection (cXlXD); 
(3) by striking out subsection (cX2)(A); 
(4) by striking out "(B)" in subsection (cX2)(B) and inserting in 
lieu thereof "(2)(A)"; 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 743 
(5) by striking out "(C)" in subsection (c)(2)(0 and inserting in 
lieu thereof "(B)"; and 
(6) by striking out subsection (f) and inserting in lieu thereof 
the following: 
"(f) LOANS.—In the case of a loan which is arranged by a public 
utility under subsection (bXl)(C), the utility, at the request of the 
person making such loan, shall permit repayment of the loan as part 
of the periodic utility bill. The utility may recover from the person 
making such loan the cost incurred by the utility in carrying out 
such manner of repayment.". 
TAX TREATMENT 
SEC. 545. Section 216 of the National Energy C!onservation Policy 
Act is amended by adding the following new subsection at the end 42 use 8217. 
thereof: 
"(i) TAX TREATMENT.—The value of any subsidy provided by a 
utility to any residential customer for the purchase and installation 
of residental energy conservation measures shall not be included in 
the gross income of such customer for purposes of the Internal 
Revenue Code of 1954, and such customer shall not receive any 26 use i et seq. 
increase in basis under the Internal Revenue Code of 1954 which is 
attributable to any such subsidy.". 
SUPPLY, INSTALLATION, AND FINANCING BY PUBUC UTILITIES 
SEC. 546. (a) Section 216 of the National Energy Conservation 
Policy Act is amended— 
42 use 8217. 
(1) by striking out the section heading and inserting in lieu 
thereof the following: 
"SEC. 216. SUPPLY AND INSTALLATION BY PUBLIC UTILITIES."; 
(2) by striking out subsection (a) and inserting in lieu thereof 
the following: 
"(a) PROHIBITION ON SUPPLY AND INSTALLATION BY PUBUC UTIU-
TIES.—Except as provided in this section, no public utility may supply 
or install a residential energy conservation measure for any residen-
tial customer."; 
(3) by striking out "(1)" in subsection (b); and 
(4) by striking out subsection (c) and inserting in lieu thereof 
the following: 
"(c) EXEMPTION FROM PROHIBITION ON SUPPLY AND INSTALLATION.— 
(1) The prohibition contained in subsection (a) shall not apply to any 
residential energy conservation measure supplied or installed by a 
public utility through contracts between such utility and independ-
ent suppliers or contractors where the customer requests such supply 
or installation and each such supplier or contractor— 
"(A) is on the list of suppliers and contractors referred to in 
section 213(a)(2); 
Ante, p. 742. 
"(B) is not subject to the control of the public utility, except as 
to the performance of such contract, and is not an affiliate or a 
subsidiary of such utility; and 
"(C) if selected by the utility, is selected in a manner consistent 
with paragraph (2). 
"(2) As provided under the provisions described in section 
213(b)(2)(D), activities of a public utility under paragraph (1)— 
"(A) may not involve unfair methods of competition; 
94 STAT. 744 
PUBLIC LAW 96-294—JUNE 30, 1980 
"(B) may not have a substantial adverse effect on competition 
in the area in which such activities are undertaken nor result in 
providing to any supplier or contractor an unreasonably large 
share of contracts for the supply or installation of residential 
energy conservation measures; 
"(C) shall be undertaken in a manner which provides, subject 
to reasonable conditions the utility may establish to insure the 
quality of supply and installation of residential energy conserva-
tion measures, that any financing by the utility of such measures 
shall be available to finance supply or installation by any 
Ante, p. 742. 
contractor on the lists referred to in section 213(aX2) or to finance 
the purchase of such measures to be installed by the customer; 
"(D) to the extent practicable and consistent with subpara-
graphs (A), (B), and (C), shall be undertaken in a manner which 
minimizes the cost of residential energy conservation measures 
to such customers; and 
"(E) shall include making available upon request a current 
estimate of the average price of supply and installation of 
residential energy conservation measures subject to the con-
tracts entered into by the public utility under paragraph (1).", 
42 use 8214. 
(b) Section 213(bX2) of such Act is amended by striking out "and" at 
the end of subparagraph (A), by striking out the period at the end of 
subparagraph (B) and inserting in lieu thereof a semicolon, and by 
adding at the end thereof the following new subparagraphs: 
"(C) provisions to assure that, whenever any public utility 
undertakes to finance its lending program for residential 
energy conservation measures through financial institu-
tions, the utility shall (to the extent such utility determines 
feasible, consistent with good business practice, and not 
disadvantageous to its customers) seek funds for such financ-
ing from financial institutions located throughout the area 
covered by the lending program; and 
"(D) provisions to assure that, in the C£ise of any residen-
tial energy conservation plan which permits or requires any 
such utility to supply or install any residential energy 
conservation measure, the procedures under which any such 
utility undertakes such supply or installation will be consist-
Ante, p. 743. 
ent with the requirements of section 216(c)." 
(c) Section 213(a) of such Act is amended by striking out "and" at 
the end of paragraph (7), by striking out the period at the end of 
paragraph (8) and inserting in lieu thereof "; and", and by adding at 
the end thereof the following new paragraph: 
"(9) requires any utility undertaking a program involving the 
supply or installation of any residential energy conservation 
measure as permitted under section 216(c) or providing financing 
for the purchase or installation of any such measure to notify the 
Secretary of Energy when such program becomes effective." 
AUTHORITY TO MONITOR AND TERMINATE SUPPLY, INSTALLATION, AND 
FINANCING BY UTIUTIES 
SEC. 547. Section 216(g) of the National Energy Conservation Policy 
42 use 8217. 
Act is amended to read as follows: 
"(g) AUTHORITY TO MONITOR AND TERMINATE SUPPLY, INSTALLA-
Report to 
TiON, OR FINANCING B
Y UTIUTIES.—<1) The Secretary, in consultation 
Congress. 
with the Federal Trade Commission, shall monitor financing, supply, 
and installation activities of public utilities in connection with 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 745 
residential energy conservation measures and shall report annually 
to Ck}ngress on such activities. Each such report shall contain the 
comments of 
the Federal Trade Commission. 
"(2) After the date of the enactment of this subsection, no public 
utility may make any loan or finance the purchase or installation of, 
or supply or install, any residential energy conservation measure if 
the Secretary has determined, after notice and opportunity for public 
hearing, and. after consultation with the Federal Trade Commission, 
that— 
''(A) such loans are being made, or supply or installations 
carried out, by such utility at unreasonable rates or on unreason-
able terms and conditions, or 
"(B) such loans made, or supply or installations carried out, by 
such utility have a substantial adverse effect upon competition or 
involve the use of unfair, deceptive, or anticompetitive acts or 
practices or are being carried out in a manner which does not 
comply with subsection (c).". 
UNFAIR COMPETITIVE PRACTICES 
SEC. 548. Nothing in any amendment made by this subtitle shall be 42 use 82ii 
construed to— 
note. 
(1) bar any person from taking any action with respect to any 
anticompetitive act or practice related to activities conducted 
under any program established under this title; or 
(2) convey to any person immunity from civil or criminal 
liability, create defenses to actions under antitrust laws, or 
modify or abridge any private right of action under such laws. 
EFFECTIVE DATE 
SEC. 549. (a) The amendments made by this subtitle shall become 42 use 82ii 
effective on the date of 
the enactment of 
this Act. 
note. 
(b) As soon as practicable, but in no event later than 120 days after Rules. 
such date of enactment, the Secretary shall promulgate rules amend-
ing the regulations under section 212 of the National Energy Conser-
vation Policy Act so that the amendments made by this subtitle will Ante, p. 74i. 
be carried out. 
(c) The provisions of section 218 of the National Energy Conserva-
tion Policy Act shall apply with respect to temporary programs 42 use 8219. 
proposed under such section after the effective date of this subtitle; 
except that, for the {purposes of the application described in the first 
sentence of such section, the phrase "180 days after the promulgation 
of rules pursuant to section 212" shall refer to 180 days after the 
promulgation of rules required by subsection (b). 
(d) Nothing in this Act shall nave the effect of delaying the date 
required for submission and approval or disapproval of residential 
energy conservation plans meeting the requirements of the National 
Energy Conservation Policy Act in effect before the enactment of 
this 42 use 820i 
Act. 
note. 
RELATIONSHIP TO OTHER LAWS 
SEC. 550. Section 220 of the National Energy Conservation Policy 
Act is amended by adding the following new subsection at the end Ante, p. 742. 
thereof: 
"(e) PuBuc UTILTTY HOLDING COMPANY ACT.—For purposes of 
section llObXl) of the Public Utility Holding Company Act of 1935, 1
5 use 79k. 
any financing, supply, or installation of residential energy conserva-
94 STAT. 746 
PUBLIC LAW 96-294—JUNE 30, 1980 
tion measures under this part by a public utility company or utility 
holding company system subject to such Act shall be construed as an 
activity or business which is reasonably incidental or economically 
necessary or appropriate to the operations of the public utility 
company or utility holding company system.". 
SUBTITLE C~RESIDENTIAL ENERGY EFFICIENCY PROGRAM 
PURPOSE 
42 use 8235 
SEC. 561. It is the purpose of this subtitle— 
^°^^- 
(1) to establish a program under which the Secretary of Energy 
may provide assistance to State and local governments to encour-
age up to four demonstration programs that make energy conser-
vation measures available without charge to residential property 
owners and tenants under a plan designed to maximize the 
energy savings available in residential buildings in designated 
areas; and 
(2) to demonstrate through such program prototype residential 
energy efficiency plans under which State and local govern-
ments, State regulatory authorities, and public utilities may 
participate in a cooperative manner with public or private 
entities to install energy conservation measures in the greatest 
possible number of residential buildings within their respective 
jurisdictions or service areas. 
AMENDMENT TO THE NATIONAL ENERGY CONSERVATION POUCY ACT 
SEC. 562. The National Energy Conservation Policy Act is amended 
by adding after section 255 the following new part: 
"PART 5—RESIDENTIAL ENERGY EFFICIENCY PROGRAMS 
42 u s e 8235. 
"SEC. 261. DEFINITION. 
"As used in this part, the term 'residential building' means any 
building used as a residence which is not a new building to which 
final standards under sections 304(a) and 305 of the Energy Conserva-
42 use 6833, 
tion and Production Act apply and which has a system for heating, 
^8^4 
cooling, or both. 
42 u s e 8235a. 
"SEC. 262. APPROVAL OF PLANS FOR PROTOTYPE RESIDENTIAL ENERGY 
EFFICIENCY PROGRAMS AND PROVISION OF FINANCIAL 
ASSISTANCE FOR SUCH PROGRAMS. 
"(a) PLAN APPROVAL.—The Secretary may approve any plan devel-
oped by a State or local government, for the establishment of a 
prototjrpe residential energy efficiency program, which is designed to 
demonstrate the feasibility, economics, and energy conserving poten-
tial of such program, if an application for such plan is submitted 
pursuant to section 263, the application is approved pursuant to 
section 264, and the plan provides for— 
"(1) the entering into a contract by a public utility with one or 
more persons not under the control of, and not affiliates or 
subsidiaries of, such utility for the implementation of a program 
to encourage energy conservation, including the supply and 
installation of the energy conservation measures as specified in 
such contract in residential buildings located in the portion of 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 747 
the utility's service area designated by the contract, which 
contract includes the provisions described in subsection (b); 
"(2) the selection by the public utility in a fair, open, and 
nondiscriminatory manner of the person or persons to contract 
with pursuant to paragraph (1); 
"(3) the payment by the public utility to the person or persons 
contracted with under paragraph (1) of a specified price for each 
unit of energy saved by such utility as a result of the program 
during the period the contract is in effect, which price is based on 
the value to the utility of the energy saved; 
"(4) the determination, by a procedure established by the State Energy savings 
or local government developing the plan, of the amount of energy procedure. 
saved by a public utility as a result of the program carried out 
under the plan, which procedure is described in the contract; 
"(5) in the case of a regulated public utility, the approval in 
writing by the State regulatory authority exercising ratemaking 
authority over such utility of the contract described in paragraph 
(1), the manner of selection described in paragraph (2), the 
payment described in paragraph (3), and the procedure described 
in paragraph (4); and 
"(6) the enforcement of the provisions of the contract, entered 
into pursuant to paragraph (1), which are required to be included 
pursuant to subsection (b). 
"(b) C
O
N
T
R
A
C
T REQUIREMENTS.—Any contract entered into by a 
public utility under subsection (aXD shall require any person or 
persons entering into such contract with a public utility to offer to the 
owner or occupant of each residential building in the portion of the 
utility's service area designated in the contract, without charge— 
"(1) an inspection of such building to determine and inform inspection. 
such owner or occupant o
f
— 
"(A) the energy conservation measures which will be 
supplied and installed in such residential building pursuant 
to paragraph (2); 
"(B) the savings in energy costs that are likely to result 
from the installation of such energy conservation measures; 
"(C) suggestions (including suggestions developed by the 
Secretary) of energy conservation techniques, including ad-
justments in energy use patterns and modifications in house-
hold activities, which can be used by the owner or occupant 
of the building to save energy and which do not require the 
installation of 
energy conservation measures; and 
"(D) the savings in energy costs that are likely to result 
from the adoption of such suggested energy conservation 
techniques; 
"(2) the supply and installation, with the approval of the owner 
of 
the residential building, in such building in a timely manner of 
the energy conservation measures which are as specified in the 
contract and which the owner or occupant was informed (pursu-
ant to the inspection under paragraph (1)) would be supplied and 
installed in such building; and 
"(3) a written warranty that at a minimum any defect in Written 
materials, manufacture, design, or installation of any energy warranty. 
conservation measures supplied and installed pursuant to para-
graph (2), found not later than one year after the date of 
installation, will be remedied without charge and within a 
reasonable period of time. 
94 STAT. 748 
PUBLIC LAW 96-294—JUNE 30, 1980 
"(c) PROVISION OF FINANCIAL ASSISTANCE.—The Secretary 
may 
provide financial assistance to any State or local government to carry 
out any plan for the establishment of a prototype residential energy 
efficiency program if the plan is approved under subsection (a). 
"(d) LIMITATION.—The Secretary may approve under subsection (a) 
not more than 4 plans for the establishment of prototype residential 
energy efficiency programs. 
42 u s e 8235b. 
"SEC. 263. APPLICATIONS FOR APPROVAL OF PLANS FOR PROTOTYPE 
RESIDENTIAL ENERGY EFFICIENCY PROGRAMS. 
"Each application for the approval of a plan under section 262(a) 
for the establishment of a prototype residential energy 
efficiency 
program shall be submitted by a State or local government and shall 
include, at least— 
"(1) a description of the plan, including the provisions of the 
plan specified in section 262(a) and a description of the portion of 
the service area of the public utility proposing to enter into a 
contract under section 262(a)(1) which is designated under the 
contract; 
"(2) a description of the manner in which the provisions of the 
plan specified in section 262(a) are to be met; 
"(3) a description of the contract to be entered into pursuant to 
section 262(a)(1) and the manner in which the requirements of 
the contract contained in section 262(b) are to be met; 
Public hearing 
"(4) the record of the public hearing conducted pursuant to 
^•ecord. 
section 264(a)(2); and 
"(5) any other information determined by the Secretary to be 
necessary to carry out this part. 
42 u s e 8235c. 
"SEC. 264. APPROVAL OF APPLICATIONS FOR PLANS FOR PROTOTYPE 
RESIDENTIAL ENERGY EFFICIENCY PROGRAMS. 
"(a) APPROVAL REQUIREMENTS.—The Secretary may approve an 
application submitted under section 263 for a plan establishing a 
prototype residential energy efficiency program only i
f
— 
"(1) the application is approved in writing— 
"(A) by the public utility which is to enter into the contract 
under the plan; 
"(B) by the State regulatory authority having ratemaking 
authority over such public utility, in the case of a regulated 
utility; and 
"(C) by the Governor (or any State agency specifically 
authorized under State law to approve such plans) of the 
State whose government is submitting the application (if the 
application is submitted by a State government) or of the 
State in which the local government is located (if the 
application is submitted by a local government); and 
"(2) the application has been published, a public hearing on the 
application has been conducted, after notice to the public, at 
which representatives of the public utility which is to enter into 
the contract under the plan, persons engaged in the supply or 
installation of residential energy conservation measures, and 
members of the public (including ratepayers of such public utility 
and other interested individuals) had an opportunity to provide 
comment on the application, and any amendments to the appli-
cation, which may be made to take into account the proceedings 
of the hearing, are made. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 749 
"(b) FACTORS IN APPROVING APPLICATIONS.—The Secretary shall 
take into consideraton in approving an application under subsection 
(a) for a plan establishing a prototype residential energy efficiency 
program— 
"(1) the potential for energy savings from the demonstration of 
the program; 
"(2) the likelihood that the value of the energy saved by public 
utilities under the program will be sufficient to cover the 
estimated cost of the energy conservation measures to be sup-
phed and installed under the program; 
"(3) the anticipated effects of the program on competition in 
the portion of the service area of the public utility designated in 
the contract entered into under the plan; and 
"(4) such other factors as the Secretary determines are 
appropriate. 
"SEC. 265. RULES AND REGULATIONS. 
42 USC 8235d. 
"(a) PROPOSED RULES AND REGULATIONS.—The Secretary shall issue 
proposed rules and regulations to carry out this part not later than 
120 days after the date of the enactment of this part. 
"(b) FINAL RULES AND REGULATIONS.—The Secretary shall issue 
final rules and regulations to carry out this part not later than 90 
days after the issuance of proposed rules and regulations under 
subsection (a). 
"SEC. 266. AUTHORITY OF THE FEDERAL ENERGY REGULATORY COMMIS- 42 USC 8235e. 
SION TO EXEMPT APPLICATION OF CERTAIN LAWS. 
"The Federal Energy Regulatory Commission may exempt from 
any provisions in sections 4,5, and 7 of the Natural Gas Act (17 U.S.C. 15 USC 717c, 
717c, 717d, and 717f) and titles II and IV of the Natural Gas Policy Act 7iid. 7i7f. 
of 1978 (15 U.S.C. 3341 through 3348 and 3391 through 3394) the sale 
or transportation, by any public utility, local distribution company, 
interstate or intrastate pipeline, or any other person, of any natural 
gas which is determined (in the case of a regulated utility, company, 
pipeline, or person) by the State regulatory authority having rate-
making authority over such utility, company, pipeline, or person, or 
(in the case of a nonregulated utility, company, pipeline, or person) by 
such utility, company, pipeline, or person, to have been conserved 
because of a prototype residential energy efficiency program which is 
established under a plan approved under section 262(a), if the 
Commission determines that such exemption is necessary to make 
feasible the demonstration of such prototype residential energy 
efficiency program. 
"SEC. 267. APPLICATION OF OTHER LAWS. 
42 USC 8235f. 
"(a) LACK OF IMMUNITY.—NO provision contained in this part— 
"(1) shall restrict any agency of the United States or any State 
from exercising its powers under any law to prevent unfair 
methods of competition and unfair or deceptive acts or practices; 
"(2) shall provide to any person any immunity from civil or 
criminal liability; 
"(3) shall create any defenses to actions brought under the 
antitrust laws; or 
"(4) shall modify or abridge any private right of action under 
the antitrust laws. 
"(b) UTIUTY PROGRAMS UNDER PART 1.—Any public utility entering 42 use 82ii. 
into a contract under a plan for the establishment of a prototype 
residential energy efficiency program approved under section 262(a) 
94 STAT. 750 
PUBLIC LAW 96-294—JUNE 30, 1980 
shall not be required to carry out, with respect to any residential 
building located in the portion of the utility's service area designated 
in the contract, the actions required to be contained in such utility's 
42 use 8216. 
program by subsections (a) and (b) of section 215, if the contract 
requires such actions (or equivalent actions as determined by the 
Secretary) to be taken. 
"(c) DEFINITION.—For purposes of this section, the term 'antitrust 
laws' means— 
"(1) the Sherman Act (15 U.S.C. 1 et seq.); 
"(2) the Clayton Act (15 U.S.C. 12 et seq.); 
"(3) the Federal Trade Commission Act (15 U.S.C. 41 et seq.); 
"(4) sections 73 and 74 of the Wilson Tariff Act (15 U.S.C. 8 and 
9); and 
"(5) sections 2, 3, and 4 of the Act entitled 'An Act to amend 
section 2 of the Act entitled "An Act to supplement existing laws 
against unlawful restraints and monopolies, and for other pur-
poses", approved October 15, 1914, as amended (U.S.C, title 15, 
sec. 13), and for other purposes' approved June 19,1936 (15 U.S.C. 
21a, 13a, and 13b, commonly known as the Robinson-Patman 
Antidiscrimination Act). 
42 use 8235g. 
"SEC. 268. RECORDS AND REPORTS. 
"(a) RECORDS.—Each State and local government submitting any 
application for a plan which is approved under section 262(a), and 
each public utility and person or persons entering into a contract 
under such a plan, shall keep such records and make such reports as 
the Secretary may require. The Secretary and the Comptroller 
General of the United States shall have access, at reasonable times 
and under reasonable conditions, to any books, documents, papers, 
records, and reports of each such State and local government, utility, 
and person or persons which the Secretary determines, in consulta-
tion with the Comptroller General of the United States, are pertinent 
to this part. 
PresTde?t and 
"^^ REPORTS.—The Secretary shall make an annual report to the 
eongress. 
President on the activities carried out under this part which shall be 
submitted to the Congress with the annual report on the activities of 
the Department of Energy required by section 657 of the Department 
of Energy Organization Act (42 U.S.C. 7267) and which shall 
contain— 
"(1) an estimate of the total amount of energy saved as a result 
of the activities carried out under this part; 
"(2) an estimate of the annual savings in energy anticipated as 
a result of each prototype residential energy efficiency program 
established under a plan approved under section 262(a); 
"(3) an analysis, developed in consultation with the Federal 
Trade Commission and the Department of Justice, of the impact 
on competition of each prototype residential energy efficiency 
program established under a plan approved under section 262(a); 
and 
"(4) if the Secretary determines that it is appropriate, an 
analysis of the impact of expanding the approval of plans under 
section 262(a) to establish protot3T)e residential energy efficiency 
programs, and the provision of financial assistance to such 
programs, on a national basis and an assessment of the alterna-
tive methods by which such an expansion could be accomplished. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 751 
"SEC. 269. REVOKING APPROVAL OF PLANS AND TERMINATING FINAN- 42 USC 8235h 
CIAL ASSISTANCE. 
"The Secretary shall revoke the approval of 
any plan under section 
262(a) for the establishment of a prototype residential energy 
efficiency program, and shall terminate the provision of financial 
assistance under section 262(c) to carry out such plan, if the Secretary 
determines, in consultation with the Federal Trade Commission and 
after notice and the opportunity for a hearing, that carrying out such 
plan-
ed) causes unfair methods of 
competition; 
"(2) has a substantial adverse effect on competition in the 
portion of the service area of the public utility designated by the 
contract entered into under the plan; or 
"(3) provides a supplier or contractor of energy conservation 
measures with an unreasonably large share of the contracts for 
the supply or installation of such measures under such plan in 
the service area of the public utility designated by the contract 
entered into under such plan. 
"SEC. 270. AUTHORIZATION OF APPROPRUTIONS. 
42 USC 82351. 
"(a) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be 
appropriated to carry out this part-
ed) the sum of $10,000,000 for the fiscal year ending on 
September 30,1981; and 
"(2) the sum equal to $10,000,000 minus the amount appropri-
ated for the fiscal year ending on September 30,1981, under the 
authorization contained in thjs section, for the 
fiscal 
year ending 
on September 30,1982. 
"(b) AVAILABILITY.—Any funds appropriated under the authoriza-
tion contained in this section shall remain available until expend-
ed.". 
AMENDMENT TO THE TABLE OF CONTENTS 
SEC. 563. The table of 
contents of 
the National Energy Ck)nservation 
Policy Act is amended by inserting after the item relating to section 
255 the following new items: 
"PART 5—RESIDENTIAL ENERGY EFnciENCv PROGRAMS 
"Sec. 261. Definition. 
"Sec. 262. Approval of plans for protot^ residential enei^gy efficiency programs 
and provision of financial assistance for such programs. 
"Sec. 263. Applications for approval of plans for prototype residential enei^gy effi-
ciency programs. 
"Sec. 264. Approval of applications for plans for prototype residential eneigy effi-
ciency programs. 
"Sec. 265. Rules and regulations. 
"Sec. 266. Authority of the Federal Energy R^ulatory Ck)mmission to exempt 
application of certain laws. 
"Sec. 267. Application of other laws. 
"Sec. 268. Records and reports. 
"Sec. 269. Revoking approval of plans and terminating 
financial 
assistance. 
"Sec. 270. Authorization of Appropriations.". 
79-194 
O—81—pt. 1 
51: QL3 
94 STAT. 752 
PUBLIC LAW 96-294—JUNE 30, 1980 
SUBTITLE D—ENERGY CONSERVATION FOR COMMERCIAL BUILDINGS 
AND MULTIFAMILY DWELLINGS 
AMENDMENT TO THE NATIONAL ENERGY CONSERVATION POLICY ACT 
SEC. 565. The National Energy Conservation Policy Act is amended 
by adding at the end thereof the following new title: 
"TITLE VII—ENERGY CONSERVATION FOR COMMERCIAL 
BUILDINGS AND MULTIFAMILY DWELLINGS 
"PART 1—GENERAL PROVISIONS 
42 u s e 8281. 
"SEC. 710. DEFINITIONS. 
"(a) APPLICABILITY OF TITLE II DEFINITIONS.—The definitions in 
Ante, p. 741. 
section 210 are applicable to this title, except as otherwise provided in 
this section. 
"(b) ADDITIONAL DEFINITIONS.—As used in this title— 
"(1) The term 'building heating supplier' means any person 
engaged in the business of selling No. 2, No. 4, or No. 6 heating 
oil, kerosene, or propane to eligible customers. 
"(2) The term 'commercial building' means a building— 
"(A) which was completed on or before the date of enact-
ment of this title, 
"(B) which is used primarily for carrying out a business 
(including a nonprofit business) or for carrying out the 
activities or administration of a State or local government, 
"(C) which is not used primarily for the manufacture or 
production of products, raw materials, or agricultural com-
modities, and 
"(D) for which the average monthly use of energy for the 
calendar year 1980 is less than 4,000 kilowatt hours of 
electricity or 1,000 therms of natural gas or the Btu equiva-
lent thereof of any other fuel; 
except that such term does not include a Federal building as 
42 use 8241. 
defined in section 521(2). 
"(3) The term 'multifamily dwelling' means a building which is 
used for residential occupancy, was completed on or before the 
date of enactment of this title, and contains five or more dwelling 
units and a central heating or central cooling system. 
"(4) The term 'energy efficient improvements' means any 
change in the operation or maintenance of a commercial building 
or multifamily dwelling, which change is designed primarily to 
reduce energy consumption in such building or dwelling and 
which has been identified by the Secretary in the rules promul-
gated under section 712(a) or approved by the Secretary for 
consideration in the energy audits offered to eligible customers 
under section 731, 732, or 741. 
"(5) The term 'commercial energy conservation measure' 
means an installation or modification of an installation which is 
primarily designed to reduce the consumption of petroleum, 
natural gas, or electrical power in a multifamily dwelling or 
commercial building, including— 
' '(A) caulking and weatherstripping; 
"(B) the insulation of the building or dwelling structure 
and systems within the building or dwelling; 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 753 
"(C) storm windows and doors, multiglazed windows and 
doors, heat absorbing or heat reflecting window and door 
systems, glazing, reductions in glass area, and other window 
and door system modifications; 
"(D) automatic energy control systems; 
"(E) equipment, associated with automatic energy control 
systems, which is required to operate variable steam, 
hydraulic, or ventilating systems; 
"(F) furnace, or utility plant and distribution system, 
modifications, including— 
"(i) replacement burners, furnaces, boilers, or any 
combination thereof, which (as determined by the Secre-
tary) substantially increases the energy efficiency of the 
heating system, 
"(ii) devices for modifying flue openings which will 
increase the energy efficiency of the heating system, and 
"(iii) electrical or mechanical furnace ignition systems 
which replace standing gas pilot lights; 
"(G) replacement or modification of a lighting system 
which increases the energy efficiency of the lighting system 
without increasing the overall illumination of the building 
or dwelling (unless such increase in illumination is neces-
sary to conform to any applicable State or local building code 
or the increase is considered appropriate by the Secretary); 
"(H) energy recovery systems; 
"(I) cogeneration systems which produce electricity, as 
well as steam or other forms of thermal or mechanical 
energy, and which meet such fuel efficiency requirements as 
the Secretary may, by rule, prescribe; 
"(J) a solar energy system, as defined in section 504(8) of 
the Solar Energy and Energy Conservation Bank Act; and 
"(K) such other measures as the Secretary identifies, by 
rule, for purposes of this title. 
"(6) The term 'eligible customer' means— 
"(A) with respect to a public utility, the owner or tenant of 
a commercial building or the owner of a multifamily dwell-
ing to whom that public utility sells natural gas or electricity 
for use in such building or dwelling, or 
"(B) with respect to a building heating supplier, the owner 
or tenant of a commercial building or the owner of a 
multifamily dwelling to whom that building heating sup-
plier sells No. 2, No. 4, or No. 6 heating oil, kerosene, or 
propane for use in such building or dwelling. 
"(7) The term 'energy audit' means an onsite inspection of a 
commercial building or a multifamily dwelling which determines 
and informs the eligible customer of at least— 
"(A) the type, quantity, and rate of energy consumption of 
such building or dwelling; 
"(B) energy efficient improvements appropriate to such 
building or dwelling; and 
"(C) the need, if any, for the purchase and installation of 
commercial energy conservation measures in such building 
or dwelling. 
The Secretary, after consulting with appropriate State officials, 
may establish criteria for such audits on a regional basis to 
account for regional variations in energy use. 
94 STAT. 754 
PUBLIC LAW 96-294—JUNE 30, 1980 
Oral and written 
comments. 
"(8) The term 'utility program' means a program meeting the 
requirements of section 731. 
"(9) The term 'building heating supplier program' means a 
program meeting the requirements of section 732. 
42 u s e 8281a. 
"SEC. 711. COVERAGE. 
"This title shall apply to any public utility for which coverage is 
42 use 8212. 
provided under section 211. 
42 use 8281b. 
"SEC. 712. RULES OF SECRETARY FOR SUBMISSION AND APPROVAL OF 
PLANS. 
"(a) PROMULGATION OF RULES BY THE SECRETARY.—The Secretary 
shall, not later than 120 days after enactment of this title and after 
consultation with the Secretary of Housing and Urban Development 
and the heads of such other agencies as the Secretary deems appro-
priate, publish proposed rules on the content and implementation of 
State energy conservation plans for commercial buildings and multi-
family dwellings which meet the requirements of this title. After 
publication of such proposed rules, the Secretary shall afford inter-
ested persons (including Federal and State agencies) an opportunity 
to present oral and written comments on such proposed rules. Rules 
prescribing the content and implementation of State energy conser-
vation plans for commercial buildings and multifamily dwellings 
shall be published not earlier than forty-five days after publication of 
the proposed rules. 
"(b) ENERGY EFFICIENT IMPROVEMENTS OF DIFFERENT TYPES AND 
CATEGORIES.—The rules promulgated under subsection (a) may iden-
tify energy efficient improvements in different types of commercial 
buildings and multifamily dwellings by climatic region and by 
categories determined by the Secretary on the basis of type of 
construction and any other factors which the Secretary deems appro-
priate. Such improvements shall be considered in the energy audits 
offered to eligible customers under sections 731,732, and 741. 
"(c) COORDINATION.—The rules promulgated under subsection (a) 
shall, to the extent practicable, coordinate the requirements of this 
title with the provisions of section 3670t)Xl) of the Energy Policy and 
42 use 6327. 
Conservation Act and with the utility program established under 
42 use 8211. 
title II, part 1 of this Act. Such rules shall not have the effect of 
delaying the submission, approval, or implementation of residential 
energy conservation plans under title II, part 1 of this Act. 
"(d) OTHER RULES.—The Secretary may prescribe any other rules 
necessary to carry out the provisions of this title. 
"PART 2-ENERGY CONSERVATION PLANS 
42 use 8282. 
"SEC. 721. PROCEDURES FOR SUBMISSION AND APPROVAL OF STATE 
ENERGY CONSERVATION PLANS FOR COMMERCIAL BUILD-
INGS AND MULTIFAMILY DWELLINGS. 
"(a) SUBMISSION AND APPROVAL OF STATE PLANS.—Not later than 
180 days after the promulgation of rules under section 712(a), the 
Governor of each State (or any State agency specifically authorized to 
do so under State law) may submit to the Secretary a proposed energy 
conservation plan for commercial buildings and multifamily dwell-
ings which meets the requirements of the rules promulgated under 
section 712. Within such 180-day period, each nonregulated utility 
shall submit a proposed plan, which meets the requirements of the 
rules promulgated under section 712, to the Secretary unless a plan 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 755 
submitted under the preceding sentence for the State in which the 
nonregulated utility provides utility service applies to nonregulated 
utilities as provided in subsection (b). The Secretary may, upon 
request of the Governor or State agency or nonregulated utility, 
extend for good cause shown, the time period for submission of 
a plan. 
Each plan submitted in accordance with this subsection shall be 
reviewed and approved or disapproved in accordance with the proce-
dures of subparagraphs (B) and (C) of 
section 212(cXl). 
^^ use 8213. 
"(b) NONREGULATED UTIUTIES.—Any plan submitted by a Governor 
or State agency under subsection (a) may, in the discretion of the 
Governor if he notifies the Secretary within 30 days after promulga-
tion of rules under section 712(a), apply to nonregulated utilities 
providing utility service in the State in the same manner as to 
regulated utilities. In any such case, reference elsewhere in this title 
to regulated utilities (including references to utilities with respect to 
which a State regulatory authority exercises ratemaking authority) 
shall, with respect to such State, be treated as references also to 
nonregulated utilities and references elsewhere in this title to non-
regulated utilities shall not apply. For purposes of this subsection, the "Nonregulated 
term 'nonregulated utility' shall not include any public utility which utility." 
is a Federal agency. 
"(c) PLAN FOR BUILDING HEATING SUPPUERS.—A plan applicable to 
building heating suppliers may be submitted by the Governor in his 
discretion. 
"(d) TENNESSEE VALLEY AUTHORITY.—In the case of the Tennessee 
Valley Authority or any public utility with respect to which the 
Tennessee Valley Authority has ratemaking authority, the authority 
otherwise vested in the Governor or State agency under this section 
shall be vested in the Tennessee Valley Authority. 
"SEC. 722. REQUIREMENTS FOR STATE PLANS FOR REGULATED UTILI- 42 USC 8282a. 
TIES. 
"No proposed energy conservation plan for commercial buildings 
and multifamily dwellings submitted for regulated utilities shall be 
approved by the Secretary unless such plan— 
"(1) requires each regulated utility to implement a program 
which meets the requirements of section 731 and such other 
requirements as may be contained in the rules promulgated by 
the Secretary under section 712, except that no such program 
may be required to apply to all of the multifamily dwellings and 
commercial buildings located within such utility's service area if, 
within 6 months from the date on which the Secretary's rules are 
promulgated with respect to such program, the State regulatory 
authority which exercises ratemaking authority over such utility 
determines that the inclusion of such additional buildings or 
dwellings would significantly impair such utility's ability— 
"(A) to fulfill the requirements of 
section 215, or 
Ante, p. 742. 
"(B) to provide utility service to its customers. 
"(2) provides adequate State procedures for implementing the 
enforcment of 
the plan; 
"(3) provides procedures for insuring that effective coordina-
tion exists among various local, State, and Federal energy 
conserving programs within and affecting such State; and 
"(4) is adopted after notice and public hearing. 
Hearing. 
94 STAT. 756 
PUBLIC LAW 96-294—JUNE 30, 1980 
42 u s e 8282b. 
"SEC. 723. PLAN REQUIREMENTS FOR NONREGULATED UTILITIES AND 
BUILDING HEATING SUPPLIERS. 
"(a) REQUIREMENTS FOR PLANS FOR NONREGULATED UTILITIES.—No 
plan proposed by a nonregulated utility shall be approved by the 
Secretary unless such plan meets the same requirements as provided 
under section 722 for regulated utilities. In applying the require-
ments of section 722 in the case of a plan for a nonregulated utility 
under this section, any reference to a regulated utility shall be 
treated as a reference to a nonregulated utility and the reference to 
the State regulatory authority shall be treated as a reference to the 
Governor. 
"(b) REQUIREMENTS FOR PLANS FOR BUILDING HEATING SUPPLIERS.— 
No plan proposed for building heating suppliers shall be approved by 
the Secretary unless such plan meets the same requirements as 
provided under paragraphs (3) and (4) of section 722 and— 
"(1) meets the requirements of section 732 and contains 
adequate 
enforcement 
procedures 
with 
respect 
to such 
requirements; 
"(2) meets such requirements applicable to building heating 
suppliers as may be contained in the rules promulgated under 
section 712; and 
"(3) takes into account the resources of small building heating 
suppliers. 
"PART 3—UTILITY PROGRAMS 
42 u s e 8283. 
"SEC. 731. UTILITY PROGRAMS. 
"(a) GENERAL REQUIREMENTS.—Each utility program shall include 
procedures designed to provide that each public utility— 
"(1) offers to each eligible customer, no later than 12 months 
after the approval of the applicable plan and every 24 months 
thereafter until 1990, an energy audit of the eligible customer's 
commercial building or multifamily dwelling; 
"(2) conditions the availability of an energy audit in the case of 
a multifamily dwelling upon the agreement by the eligible 
customer to provide to the tenants of the customer's multifamily 
dwelling the information developed by such audit concerning 
energy efficient improvements and commercial energy conserva-
tion measures applicable to the individual dwelling units in such 
dwelling; 
"(3) maintains a report of each audit performed pursuant to 
this subsection with respect to a commercial building or multi-
family dwelling for not less than 10 years, which report shall be 
available to any subsequent eligible customer of such commercial 
building or multifamily dwelling; and 
"(4) shall not be required to conduct an energy audit of a 
commercial building or multifamily dwelling which has been 
Ante, p. 752, 42 
audited previously pursuant to this title or title III; 
use 6371 note, 
except that any public utility may contract with one or more persons, 
including another utility, to carry out directly some or all of the 
responsibilities required by this subsection. 
"(b) REQUIREMENTS CONCERNING ACCOUNTING AND PAYMENT OF 
COSTS.—Each State regulatory authority or nonregulated utility 
shall, within 180 days after promulgation of rules under section 
712(a), or such longer period as the Secretary for good cause may 
allow, provide— 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 757 
"(1) that all amounts expended or received by the utility which 
are attributable to the utility program (including any penalties 
paid by such utility under section 741) are accounted for on the 
books and records of the public utility separately from amounts 
attributable to all other activities of such utility; 
"(2) that all amounts expended by a utility for providing 
information concerning the availability of the energy audit 
offered pursuant to subsection (aXD are to be treated for such 
purposes as a current expense of providing utility service and 
charged to all ratepayers of such utility in the same manner as 
current operating expenses of providing such utility service; and 
"(3) that all other amounts expended by a public utility to 
carry out the provisions of this title, are recovered in the manner 
specified by the State regulatory authority which has rate-
making authority over such utility (or in the case of a nonregu-
lated utility in the manner specified by such nonregulated 
utility); except that, in the case of a multifamily dwelling, the 
amount which may be recovered directly from an eligible cus-
tomer for whom the activities described in subsection (a) are 
performed shall not exceed a total of $15 per dwelling unit or the 
actual cost of such activities, whichever is less; in determining 
the amount to be recovered directly from customers as provided 
under this paragraph, the State regulatory authority (in the case 
of a regulated utility) or the utility (in the case of a nonregulated 
utility) shall take into consideration, to the extent practicable, 
the customers' ability to pay and the likely levels of participation 
in the utility program which will result from such recovery. 
"(c) RATEPAYER.—For purposes of subsection (b), the term 'rate-
payer' means any person, State agency, or Federal agency who 
purchases electric energy or natural gas from a utility for purposes 
other than for resale. 
"SEC. 732. BUILDING HEATING SUPPLIER PROGRAM. 
42 USC 8283a. 
"(a) REQUIREMENTS.—Except as may be provided by the Secretary, 
the procedures for each building heating supplier program shall be 
identical to the procedures required for utilities in section 731(a). 
"(b) WAIVER.—The Governor may waive, for any building heating 
supplier, any requirement established pursuant to this section, upon 
demonstration to the Governor's satisfaction that the resources of 
such supplier do not enable the supplier to comply with such 
requirement. 
"PART 4—FEDERAL IMPLEMENTATION 
"SEC. 741. FEDERAL STANDBY AUTHORITY. 
42 USC 8284. 
"(a) PROMULGATION OF PLAN BY THE SECRETARY.—If a State does not 
have a plan approved under section 721 within 270 days after 
promulgation of rules under section 712(a), or within such additional 
period as the Secretary may allow pursuant to section 721(a), or if the 
Secretary determines after notice and opportunity for a public 
hearing that an approved plan is not being adequately implemented 
in such State, the Secretary shall— 
"(1) promulgate a plan which meets the requirements of 
section 722; and 
"(2) under such plan, by order, require each regulated utility in 
the State to offer, no later than 90 days following the date of 
issuance of such order, to its eligible customers a utility program 
94 STAT. 758 
PUBLIC LAW 96-294—JUNE 30, 1980 
prescribed in such order which meets the requirements specified 
in section 731. 
"(b) NoNREGULATED UTIUTIES.—If a nonregulated utility which is 
not covered by an approved State plan under section 721 does not 
have a plan approved under such section within 270 days after 
promulgation of rules under section 712(a) or within such additional 
period as the Secretary may allow pursuant to section 721(a), or if the 
Secretary determines that such nonregulated utility has not ade-
quately implemented an approved plan, the Secretary shall, by order, 
require such nonregulated utility— 
"(1) to promulgate a plan which meets the requirements of 
section 723 and which applies to the commercial buildings and 
multifamily dwellings which would have been covered had such a 
plan been so approved or implemented; and 
"(2) no later than 90 days following the date of issuance of such 
order, to offer to its customers a utility program prescribed in 
such plan which meets the requirements specified in section 731. 
"(c) ENFORCEMENT.—If the Secretary determines that any person 
has violated any provision of this title, any plan approved or promul-
gated under this title, or any order issued pursuant thereto, the 
Secretary may file a petition in the appropriate United States district 
court to enjoin such person from violating such provision, plan, or 
42 use 8220. 
order. The provisions of subsections (c) and (d) of section 219 shall 
apply to any violation of any order or plan promulgated by the 
Secretary under authority of subsections (a) and (b) of this section.". 
AMENDMENT TO THE TABLE OF CONTENTS 
SEC. 566. The table of contents of the National Energy Conservation 
Policy Act is amended by adding the following new items at the end 
thereof: 
"TITLE VII—ENERGY CONSERVATION FOR COMMERCIAL BUILDINGS AND 
MULTIFAMILY DWELLINGS 
"PART 1—GENERAL PROVISIONS 
"Sec. 710. Definitions. 
"Sec. 711. Coverage. 
"Sec. 712. Rules of Secretary for submission and approval of plans. 
"PART 2—ENERGY CONSERVATION PLANS 
"Sec. 721. Procedures for submission and approval of State energy conservation 
plans for commercial buildings and multifamily dwellings. 
"Sec. 722. Requirements for State plans for regulated utilities. 
"Sec. 723. Plan requirements for nonregulated utilities and building heating suppli-
ers. 
"PART 3—UTIUTY PROGRAMS 
"Sec. 731. Utility programs. 
"Sec. 732. Building heating supplier program. 
"PART 4—FEDERAL IMPLEMENTATION 
"Sec. 741. Federal standby authority.". 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 759 
SUBTITLE E—WEATHERIZATION PROGRAM 
UMITATIONS ON ADMINISTRATIVE EXPENDITURES 
SEC. 571. Section 415(a) of the Energy Conservation in Existing 
Buildings Act of 1976 is amended by striking out ", except that" and 42 USC 6865. 
all that follows through the period at the end thereof and inserting in 
lieu thereof the following: '. Not more than an amount equal to 10 
percent of any grant made by the Secretary under this part may be 
used for administrative purposes in carrying out duties under this 
part, except that not more than one-half of such amount may be used 
by any State for such purposes." 
EXPENDITURES FOR LABOR 
SEC. 572. Section 415(c) of the Energy Conservation in Existing 
Buildings Act of 1976 is amended— 
(1) by striking out "paragraph (2)" in paragraph (1) and 
inserting in lieu thereof "paragraphs (2) and (3)"; and 
(2) by inserting the following new paragraph at the end 
thereof: 
"(3) In areas where the Secretary, after consultation with the 
Secretary of Labor, determines that there is an insufficient number 
of volunteers and training participants and public service employ-
ment workers, assisted pursuant to the Comprehensive Employment 
and Training Act of 1973, available to work on weatherization 29 USC 801 note. 
projects under the supervision of qualified supervisors and foremen, 
the Secretary may increase the limitation of $800 to not more than 
$1,600 to cover the costs of paying persons who will install the 
weatherization materials and, to the maximum extent practicable, 
who would otherwise be able to participate as training participants 
and public service employment workers pursuant to the Comprehen-
sive Employment and Training Act of 1973." 
SELECTION OF LOCAL AGENCIES 
SEC. 573. (a) Section 4150bX2) of the Energy Conservation in Exist-
ing Buildings Act of 1976 is amended— 
42 USC 6865. 
(1) by inserting "and" at the end of subparagraph (A); 
(2) by striking out subparagraph (B); and 
(3) by redesignating subparagraph (C) as subparagraph (B). 
(b) Section 413(c) of such Act is amended by striking out the second 42 USC 6863. 
sentence thereof. 
(c) Section 4140t)) of the Energy Conservation in Existing Buildings 
Act of 1976 is amended— 
42 USC 6864. 
(1) by striking out "and" at the end of paragraph (2); 
(2) by striking out the period at the end of paragraph (3) and 
inserting in lieu thereof "; and"; and 
(3) by adding the following new paragraph at the end thereof: 
"(4) selected on the basis of public comment received during a 
public hearing conducted pursuant to section 415(b)(1), and other 
appropriate findings, community action agencies or other public 
or nonprofit entities to undertake the weatherization activities 
authorized by this title: Provided, Such selection shall be based 
on the agency's experience and performance in weatherization or 
housing renovation activities, experience in assisting low-income 
persons in the area to be served, and the capacity to undertake a 
timely and effective weatherization program: Provided further. 
94 STAT. 760 
PUBLIC LAW 96-294—JUNE 30, 1980 
That in making such selection preference shall be given to any 
community action agency or other public or nonprofit entity 
which has, or is currently administering, an effective program 
under this title or under title II of the Economic Opportunity Act 
42 u s e 6851, 
of 1 9 6 4 " 
2781. 
STANDARDS AND PROCEDURES FOR THE WEATHERIZATION PROGRAM 
SEC. 574. Section 413(b) of the Energy Conservation in Existing 
42 use 6863. 
Buildings Act of 1976 is amended by adding the following new 
paragraph at the end thereof: 
"(4) In carrying out paragraphs (2XA) and (3), the Secretary shall 
establish the standards and procedures described in such paragraphs 
so that weatherization efforts being carried out under this part and 
under programs described in the fourth sentence of paragraph (3) will 
accomplish uniform results among the States in any area with a 
similar climatic condition.". 
UMITATIONS ON EXPENDITURES 
SEC. 575. Section 415(c)(1)(D) of the Energy Conservation in Exist-
Ante, p. 759. 
ing Buildings Act of 1976 is amended by striking out "$100" and 
inserting in lieu thereof "$150". 
AUTHORIZATION OF APPROPRATIONS 
SEC. 576. Section 422 of the Energy Conservation in Existing 
42 use 6872. 
Buildings Act of 1976 is amended to read as follows: 
"AUTHORIZATION OF APPROPRIATIONS 
"SEC. 422. There is authorized to be appropriated for purposes of 
carrying out the weatherization program under this part, the sum of 
$55,000,000 for the fiscal year ending on September 30,1977, the sum 
of $130,000,000 for the fiscal year ending on September 30, 1978, the 
sum of $200,000,000 for the fiscal year ending on September 30,1979, 
the sum of $200,000,000 for the fiscal year ending on September 30, 
1980, and the sum of $200,000,000 for the fiscal year ending on 
September 30, 1981, such sums to remain available until expended.". 
TECHNICAL AMENDMENTS 
SEC. 577. Part A of the Energy Conservation in Existing Buildings 
Act of 1976 is amended— 
42 use 6862. 
(1) by striking out section 412(1) and inserting in lieu thereof 
the following: 
"(1) The term 'Secretary' means the Secretary of Energy."; 
(2) by striking out "Administrator" each time it appears 
, therein and inserting in lieu thereof "Secretary"; and 
(3) by striking out "Administrator's" in the first sentence of 
42 use 6869. 
section 419(a) and inserting in lieu thereof "Secretary's". 
SUBTITLE F—ENERGY AUDITOR TRAINING AND CERTIFICATION 
PURPOSE 
42 use 8285. 
SEC. 581. It is the purpose of this subtitle to encourage the training 
and certification of individuals to conduct energy audits for residen-
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 761 
tial and commercial buildings in order to serve the various private 
and public needs of the Nation for energy audits. 
DEFINITIONS 
SEC. 582. For the purposes of 
this subtitle— 
42 use 8285a. 
(1) the term "Governor" means the chief executive officer of 
each State, including the Mayor of the District of Columbia; 
(2) the term "State" means any of the several States, the 
District of Columbia, the Commonwealth of Puerto Rico, the 
Virgin Islands, Guam, American Samoa, and the Northern 
Mariana Islands; 
(3) the term "energy audit" means an inspection as described 
in section 215(b)(1)(A) of the National Energy Conservation 
Policy Act, or an energy audit as defined in section 710(bX7) of 
such Act, which in addition may provide information on the 
utilization of renewable resources and may make energy-related 
improvements in the building; and 
(4) the term "Secretary" means the Secretary of Energy. 
GRANTS 
SEC. 583. (a) The Secretary may make grants to any Governor of a 42 use 8285b. 
State for the training and certification of individuals to conduct 
energy audits. 
(b) Before making a grant under subsection (a) to a Governor, Applications. 
the Secretary must receive from the Governor an application 
containing— 
(A) any information which the Secretary deems is necessary to 
carry out this subtitle; and 
(B) an assurance that the grant will supplement and not 
supplant other funds available for such training and certification 
and will be used to increase the total amount of funds available 
for such training and certification. 
(cXD Before making any grant under subsection (a) the Secretary 
shall establish minimum standards for the training and certification 
of individuals to conduct energy audits. 
(2) The Secretary shall require each Governor receiving any grant 
under this subtitle to agree to meet the standards established 
pursuant to paragraph (1) in any training and certification conducted 
using funds providea under this subtitle. 
AUTHORIZATION OF APPROPRIATIONS 
SEC. 584. (a) To carry out this subtitle there is authorized to be ^
2 use 8285c. 
appropriated the sum of $10,000,000 for the fiscal year ending on 
September 30, 1981, and the sum of $15,000,000 for the fiscal year 
ending on September 30,1982. 
(b) Any funds appropriated under the authorization contained in 
this section shall remain available until expended. 
SUBTITLE G—INDUSTRIAL ENERGY CONSERVATION 
AUTHORIZATION OF APPROPRIATIONS 
SEC. 591. To accelerate the program of the Department of Energy 42 use 6347. 
involving the research, development, and demonstration of energy 
conserving activities designed to substantially increase productivity 
94 STAT. 762 
PUBLIC LAW 96-294—JUNE 30, 1980 
in industry, there is authorized to be appropriated to the Secretary of 
Energy for industrial energy conservation demonstration projects 
designed to substantially increase productivity in industry, in addi-
tion to any other sums which may be available for such purposes, the 
sum of $40,000,000 for each of the fiscal years ending on September 
30,1981, and on September 30,1982. 
SUBTITLE H—COORDINATION OF FEDERAL ENERGY CONSERVATION 
FACTORS AND DATA 
CONSENSUS ON FACTORS AND DATA FOR ENERGY CONSERVATION 
STANDARDS 
42 use 8286. 
SEC. 595. The Secretary of Energy shall assure that within 6 
months after the date of the enactment of this Act, the Secretary of 
Energy, the Secretary of Housing and Urban Development, the 
Secretary of Agriculture, the Secretary of Health and Human Serv-
ices, the Secretary of Defense, the Administrator of the General 
Services Administration, and the head of any other agency responsi-
ble for developing energy conservation standards for new or existing 
residential, commercial, or agricultural buildings shall reach a con-
sensus regarding factors and data used to develop such standards. 
This consensus shall apply to, but not be limited to— 
(1) fuel price projections; 
(2) discount rates; 
(3) inflation rates; 
(4) climatic conditions and zones; and 
(5) the cost and energy saving characteristics of construction 
materials. 
USE OF FACTORS AND DATA 
42 use 8286a. 
SEC. 596. Factors and data consented to pursuant to section 595 
may be revised and agreed to by a consensus of the heads of the 
various Federal agencies involved. Such factors and data shall be 
used by all Federal agencies in establishing and revising various 
energy conservation standards used by such agencies, except that 
other factors and data may be used with respect to the standards 
applicable to any program i
f
— 
(1) the other factors and data are approved by the Secretary of 
Energy solely on the basis that such other factors and data are 
critical to meet the unique needs of the program concerned; 
(2) using the consented to factors and data would cause a 
violation of an express provision of law; or 
(3) statutory requirements or responsibilities require a modifi-
'"' cation of the consented to factors and data. 
REPORT 
42 u s e 8286b. 
Submittal to 
SEC. 597. The President shall report to the Congress on January 1, 
^o'rfon^lioQcu 
1981, and annually thereafter, with respect to— 
(1) the activities which have been carried out under this 
subtitle; and 
(2) other efforts which are being carried out to coordinate the 
various Federal energy conservation programs. 
PUBLIC LAW 96-294—JUNE 30, 1980 
TITLE VI—GEOTHERMAL ENERGY 
SHORT TITLE 
94 STAT. 763 
Geothermal 
Energy Act of 
1980. 
SEC. 601. This title may be cited as the "Geothermal Energy Act of 30 use I50i 
1980". 
''°*^-
FINDINGS 
SEC. 602. The Congress finds that— 
(1) domestic geothermal reserves can be developed into region-
ally significant energy sources promoting the economic health 
and national security of the Nation; 
(2) there are institutional and economic barriers to the com-
mercialization of geothermal technology; and 
(3) Federal agencies should consider the use of geothermal 
energy in the Government's buildings. 
SUBTITLE A 
30 u s e 1501. 
LOANS FOR GEOTHERMAL RESERVOIR CONFIRMATION 
SEC. 611. (a) The Secretary of Energy (hereafter in this title 
referred to as the "Secretary') is authorized to make a loan to any 
person, from funds appropriated (pursuant to this subtitle) to the 
Geothermal Resources Development Fund established under section 
204 of the Geothermal Energy Research, Development, and Demon-
stration Act of 1974 (30 U.S.C. 1144), to assist such person in 
undertaking and carrying out a project which (1) is designed to 
explore for or determine the economic viability of a geothermal 
reservoir and (2) consists of surface exploration and the drilling of one 
or more exploratory wells. 
(b) Subject to subsection (c) and to section 613(b), any loan under 
subsection (a) shall be repayable out of revenue from production of 
the geothermal energy reservoir with respect to which the loan was 
made, at a rate, in any year, not to exceed 20 per centum of the gross 
revenue from the reservoir in that year; except that if any disposition 
of the geothermal rights to the reservoir is made to one or more other 
persons by the borrower, the full amount of the loan balance 
outstanding, or so much of the loan balance outstanding as is equal to 
the full amount of the compensation realized by the borrower upon 
such disposition, whichever is less, shall be repaid immediately. In 
any case where the reservoir is confirmed (as determined by the 
Secretary), the Secretary may impute a reasonable revenue for 
purposes of determining repayment i
f
— 
(1) reasonable efforts are not made to put such reservoir in 
commercial operation, 
(2) the borrower (or any such other person) utilizes the 
resources of the reservoir without a sale of the energy or 
geothermal energy resources therefrom, or 
(3) a sale of energy or geothermal energy resources from the 
reservoir is made for an unreasonably low price; 
except that no such imputation of revenue shall be made during the 
three-year period immediately following such reservoir confirmation. 
In the event of failure to begin production of revenue (or, where no 
sale of energy or geothermal energy resources is made, to begin 
production of energy for commercial use) within five years after the 
date of such reservoir confirmation, the Secretary may take action to 
30 u s e 1511. 
Repayment. 
Production 
failure. 
94 STAT. 764 
PUBLIC LAW 96-294—JUNE 30, 1980 
Cancellation. 
"Person." 
recover the value, not to exceed the amount of the unpaid balance of 
the loan plus any accrued interest thereon, of 
any assets of 
the project 
in question, including resource rights. 
(c) The Secretary may at any time cancel the unpaid balance and 
any accrued interest on any loan made under this section if he 
determines, on the basis of evidence presented by the loan recipient 
or otherwise, that the geothermal energy reservoir with respect to 
which the loan was made has characteristics which make that 
reservoir economically or technically unacceptable for commercial 
development. 
(d) As used in this subtitle, the term "person" includes municipal-
ities, electric cooperatives, industrial development agencies, non-
profit organizations, and Indian tribes, as well as the entities 
included within such term under 1 U.S.C. 1. 
LOAN SIZE UMITATION 
30 use 1512. 
SEC. 612. The amount of any loan made under section 611(a) with 
respect to a project described in that section shall not exceed 50 
percent of the cost of such project; except that if the loan is made to a 
person proposing to make application of the resources of the reservoir 
involved primarily for space heating or cooling or process heat for one 
or more structures or facilities then existing or under construction, 
the loan may be in any amount up to 90 per centum of such cost. In 
any event no loan shall be made in an amount in excess of $3,000,000. 
30 use 1513. 
42 use 
1962d-17. 
LOAN RATE AND REPAYMENT 
SEC. 613. (a) Each loan made under section 611 shall bear interest at 
a discount or interest rate equal to the rate in effect (at the time the 
loan is made) for water resources planning projects under section 80 
of the Water Resources Development Act of 1974 (42 U.S.C. 
1962(d)-17(a)). 
(b) Each such loan shall be for a term which the Secretary deems 
appropriate, except that no loan term shall exceed twenty years 
beyond the date on which production of energy or geothermal energy 
resources begins from the reservoir involved. If revenues are inaa-
equate (as determined by the Secretary) to fully repay the principal 
and accrued interest within twenty years after production begins, 
any remaining unpaid amounts shall be forgiven. 
PROGRAM TERMINATION 
30 use 1514. 
SEC. 614. No new loans shall be made under this subtitle after 
September 30,1986. Amounts repaid on or before September 30,1986, 
on loans theretofore made under section 611 shall be deposited in the 
Geothermal Resources Development Fund for purposes of this subti-
tle. Amounts repaid after that date on loans theretofore made under 
section 611, and amounts deposited in the Fund for purposes of this 
subtitle which remain in the Fund after that date and are not 
required to secure outstanding obligations under this subtitle, shall 
be deposited into the United States Treasury as miscellaneous 
receipts. 
REGULATIONS 
30 use 1515. 
SEC. 615. The Secretary shall promulgate regulations to carry out 
this subtitle no later than six months after the date of the enactment 
of 
this Act. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 765 
AUTHORIZATIONS 
SEC. 616. There are hereby authorized to be appropriated for loans 30 USC 1516. 
under this subtitle not to exceed $5,000,000 for fiscal year 1981, and 
not to exceed $20,000,000 for each of the four succeeding fiscal years. 
Amounts so appropriated shall be deposited in the Geothermal 
Resources Development Fund for purposes of this subtitle, and shall 
remain available for such purposes until expended. 
SUBTITLE B 
RESERVOIR INSURANCE PROGRAM STUDY 
SEC. 621. The Secretary shall conduct a detailed study of the need Report to 
for and feasibility of establishing a reservoir insurance and reinsur- ^nlf^p^^irni 
ance program incorporating the terms, conditions, and provisions set 
forth in section 622, and shall submit to the Congress within one year 
after the date of the enactment of this Act a report on the results of 
such study including his findings and recommendations with respect 
thereto. 
ESTABLISHMENT OF PROGRAM 
SEC. 622. (a) If the report of the Secretary submitted pursuant to 30 USC 1522. 
section 621 affirmatively recommends the establishment of the pro-
gram and the Congress by law (after review of such recommendation) 
specifically authorizes the establishment of the program, the Secre-
tary shall establish and implement within six months after the date 
of the enactment of such authorization a program, in cooperation 
with the insurance and reinsurance industry, to provide reservoir 
insurance to qualified eligible applicants in accordance with this 
section. 
Ot)) For the purpose of this section— 
Definitions 
(1) the term "investment" means the expenditure of, and any 
irrevocable legal obligation to expend, funds (together with the 
reasonable interest costs thereof) for the purcheise or construc-
tion of machinery, equipment, and facilities manufactured, or for 
services contracted to be furnished, for the development and 
utilization of a geothermal resource in the United States to 
provide energy in the form of heat for direct use or for generation 
of electricity; 
(2) the term "geothermal resource" means a resource in the 
United States including (A) all products of geothermal processes 
embracing indigenous steam, hot water, and hot brines; (B) 
steam and other gases, hot water and hot brines resulting from 
water, gas, or other fluids artificially introduced into geothermal 
formations; (C) heat or other associated energy found in geother-
mal formations; and (D) any byproducts derived from them, 
where "byproduct" means any mineral or minerals (exclusive of 
oil, hydrocarbon gas, and helium) which are found in solution or 
in association with other geothermal resources and which have a 
value of less than 75 per centum of the value of the geothermal 
steam or are not, because of quantity, quality, or technical 
difficulties in extraction and production, of sufficient value to 
warrant extraction and production by themselves; 
(3) the term "risk" means the hazard that a reservoir of 
geothermal resources will cease to provide sufficient quantities 
of geothermal resources at minimum conditions required to 
94 STAT. 766 
PUBLIC LAW 96-294—JUNE 30, 1980 
maintain an economically or technically viable operation for 
utilization of the geothermal resource; 
(4) the term "reasonable premiums" means premium amounts 
determined by the Secretary to be reasonable in light of the 
amount of investment subject to the risk and premiums charged 
in similar or analogous situations by private insurers where 
private insurance is concerned and by insurers or guarantors, 
both public and private, where public insurance is concerned; 
(5) the term "other insurance" means any combination of 
private or public insurance other than investment insurance 
provided by the Secretary under this section; 
(6) the term "reservoir" means the physical subsurface geolog-
ic structure which forms the natural repository for the undis-
turbed geothermal resource; and 
(7) the term "person" means any public or private agency, 
institution, association, partnership, corporation, political subdi-
vision, or other legal entity which is a United States citizen as 
determined by application of the test for United States citizen-
ship contained in section 2(a)-(c) of the Shipping Act, 1916 (46 
U.S.C. 802), or in the first sentence of section 27A of the 
Merchant Marine Act, 1920 (46 U.S.C. 883-l(aHe)). 
Investment 
(c) Any person with a total direct investment of not less than 
insurance. 
$1,000,000 in the development and use, not including exploration and 
testing, of a geothermal resource associated with a reservoir, and 
unable to obtain other insurance at reasonable premiums for the 
amount of the investment subject to risk, as determined by 
the Secretary under this section, shall be eligible for investment 
insurance. 
(d) Any eligible person seeking investment insurance under this 
section shall file an application with the Secretary setting forth (1) 
the total amount of the contemplated investment in a geothermal 
resource and associated reservoir; (2) the views of the applicant 
concerning the nature and extent of the risk, including a geologic, 
engineering, and financial assessment based on site specific results of 
exploration and testing of the geothermal resource and the reservoir, 
stated with as much specificity as is possible; (3) the status of all 
required Federal, State, and local approvals, permits, and leases for 
the proposed development and utilization operations at the site; (4) 
the extent to which the applicant has been able to obtain other 
insurance against the risk; and (5) such other information as the 
Secretary may require. 
(e) Unless the Secretary determines the risk proposed by the 
applicant is unreasonable, the Secretary, within ninety days after 
receipt of a satisfactory application, shall determine in writing and 
submit to the applicant (1) the risk which may cause loss of invest-
ment for the applicant; (2) the total investment subject to the risk; (3) 
the amount of the other insurance which is available at reasonable 
premiums for the purpose of indemnif3dng the applicant against the 
risk; (4) the amount of investment insurance available pursuant to 
this section, which shall be the difference between the total invest-
ment subject to the risk and the total other insurance determined to 
be available at reasonable premiums, but not in excess of the lesser of 
90 per centum of, or $50,000,000 of, the loss of investment subject to 
the risk; and (5) any reasonable terms and conditions necessary for 
the prudent administration of the program, including reasonable 
premiums for the insurance pursuant to this section (which shall be 
deposited in the Geothermal Resources Development Fund). 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 767 
(f) The Secretary, within ninety days after making and submitting 
the determinations under subsection (e), and upon agreement of the 
applicant to such determinations, shall issue a certificate of insur-
ance containing such terms and conditions as the Secretary shall 
specify, which shall not be transferrable without the express approv-
al of the Secretary for good cause shown, and shall execute a contract 
with the applicant setting forth the terms and conditions of the 
investment insurance and such other provisions as may be necessary 
to protect the interests of the United States, including provisions 
with respect to the ownership, use, and disposition of any currency, 
credits, gissets, or investments on account of which payment under 
such insurance is to be made and any right, title, claim, or course of 
action existing in relation thereto. 
(g) Any holder of a certificate of insurance pursuant to subsection Compensation, 
(f) who claims a loss of value of his investment by reason of the 
specified risk shall receive compensation, to the extent the Secretary 
determines that the holder is eligible to receive compensation pursu-
ant to the certificate and the contract, in the amount of the loss 
incurred by the holder which is subject to insurance and for which 
the holder has not received and will not receive compensation from 
other insurance. 
(h) Any compensation received by the holder shall be withdrawn 
from the Geothermal Resources Development Fund. The full faith 
and credit of the United States is hereby pledged to the payment of 
any compensation under this section. 
(i) A person shall not be denied insurance pursuant to this section 
solely because such person is the recipient of other Federal assistance 
under this or any other Act. 
(j) There may be appropriated to the Geothermal Resources Devel-
opment Fund (established pursuant to section 204 of the Geothermal 
Energy Research, Development and Demonstration Act of 1974 (30 
U.S.C. 1144)), for purposes of this section, such amounts as are 
authorized for such purposes in the law referred to in subsection (a) or 
in other legislation hereafter enacted. 
(k) The Secretary may enter into agreements to reinsure any 
private insurer for any risk associated with insurance for the develop-
ment and utilization of a geothermal resource and associated reser-
voir, using the procedures set forth in subsections (c) through (i), to 
the extent that he deems it appropriate in order to provide an 
incentive for the participation of the private insurance industry in 
geothermal development; and he may also use any other available 
authority to obtain such participation. The Secretary shall submit a 
report to the Congress, within one year after the enactment of the law 
referred to in subsection (a), on the need for any additional authority 
to obtain such participation. 
Agreements. 
Report to 
Congress. 
SUBTITLE C 
FEASIBILITY STUDY LOAN PROGRAM 
SEC. 631. (a) The Secretary is authorized and directed to establish a 30 USC 1531. 
program of assistance for the accelerated development of geothermal 
resources for nonelectric applications by geothermal utility districts, 
geothermal industrial development districts, and other persons. 
(bXD In providing assistance under the program established pursu-
ant to subsection (a), the Secretary is authorized to make a loan to 
any person to defray up to 90 per centum of the costs of (A) studies to 
79-194 O—81—pt. 1 
52 ; QL3 
94 STAT. 768 
PUBLIC LAW 96-294—JUNE 30, 1980 
determine the feasibility of any geothermal development described in 
such subsection, and (B) preparing applications for any necessary 
licenses or other Federal, State, and local approvals respecting sucn 
development. 
Cancellation. 
(2) The Secretary may cancel the unpaid balance and any accrued 
interest on any loan granted for a study pursuant to clause (A) of 
paragraph (1) if he determines, on the basis of the study, that the 
geothermal development is not technically or economically feasible. 
(c) In providing assistance under such program, the Secretary is 
also authorized to make a loan to any person to defray up to 75 per 
centum of the costs directly related to the construction of a system or 
systems for nonelectric geothermal development pursuant to such 
subsection, where the Secretary finds that— 
(1) all necessary licenses and other required Federal, State, and 
local approvals for construction of such system or systems have 
been or will be issued, 
(2) the project involved will comply with all applicable laws 
relating to protection of the environment, and 
(3) the applicant requires such assistance to undertake and 
complete the project. 
(d) Each loan made pursusmt to this section shall bear interest at a 
discount or interest rate equal to the rate in effect (at the time the 
loan is made) for water resources planning projects under section 80 
of the Water Resources Development Act of 1974 (42 U.S.C. 
1962(d)-17(a)). Each loan shall be for such term as the Secretary 
deems appropriate, but not in excess of ten years for loans under 
subsection (b) or thirty years for loans under subsection (c). 
(e) Loans pursuant to this section shall be made from funds 
appropriated (pursuant to this subtitle) to the Geothermal Resources 
Development Fund established under section 204 of the Geothermal 
Energy Research, Development, and Demonstration Act of 1974 (30 
U.S.C. 1144); and amounts repaid on such loans shall be deposited in 
the Geothermal Resources Development Fund for purposes of this 
subtitle. 
(0 For loans under clause (A) of 
subsection Ot)Xl) for fiscal year 1981, 
there is authorized to be appropriated to the Geothermal Resources 
Development Fund not to exceed $5,000,000, which shall remain 
available until expended. For loans under such clause (A) for subse-
quent fiscal years, and for loans under clause (B) of 
subsection (b)(1) or 
under subsection (c) (for any such subsequent fiscal year), there may 
be appropriated to such Fund only such sums as are authorized by 
legislation hereafter enacted. 
"Person." 
(g) As used in this section, the term "person" includes municipal-
ities, cooperatives, industrial development agencies, nonprofit orga-
nizations, and Indian tribes, as well as the districts referred to in 
subsection (a) and the other entities included within such term under 
1 U.S.C. 1. 
SUBTITLED 
42 use 
1962d-17. 
30 u s e 1141. 
AMENDMENTS TO GEOTHERMAL RESEARCH, DEVELOPMENT, AND 
DEMONSTRATION ACT 
SEC. 641. Title II of the Geothermal Research, Development, and 
Demonstration Act of 1974 (30 U.S.C. 1101 et seq.) is amended— 
(1) by striking out the period at the end of the first sentence in 
section 201(c) and inserting in lieu thereof the following:", except 
that any guarantee made for a loan to an electric, housing, or 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 769 
other cooperative, or to a municipality (as defined in section 3(7), 
part I, of the Federal Power Act), may apply to so much of the 16 USC 796. 
principal amount of the loan as does not exceed 90 percent of the 
aggregate cost of the project. In determining the aggregate cost of 
a project for purposes of the preceding sentence, there shall be 
excluded the cost of constructing electrical transmission lines to 
the extent that the cost of constructing such lines exceeds 25 
percent of the aggregate cost of the project (as determined 
without regard to this sentence); except that the Secretary may 
waive or limit the application of this sentence with respect to any 
project located in the State of Hawaii upon a finding that such 
project is remote from the area of primary consumption, that a 
transmission line is required before the geothermal reservoir can 
be developed, and that the particular transmission line involved 
will be used for more than the plant which is the subject of the 
loan guarantee."; 
(2) by striking out "the ten-calendar-year period following the 
date of enactment of this Act" in section 203 and inserting in lieu 30 USC 1143. 
thereof "fiscal year 1990"; and 
(3) by adding at the end thereof the following new sections: 
"APPROVAL OR DISAPPROVAL OF LOAN GUARANTEE APPLICATIONS 
"SEC. 206. The Secretary, within sixty days after the enactment of 30 USC 1146. 
this section, shall establish and implement procedures providing for a 
final decision on any loan guarantee application within four months 
of the date of filing. To the maximum extent practical, an applicant 
should be advised (prior to the submission of the application) of all 
information which will be required of the applicant in processing the 
application; and the date of filing shall be considered to be the date 
when all of such information has been submitted by the applicant. 
Any application proposed and filed as of the date of the enactment of 
this section shall be subject to final decision within not more than 
four months after such date. 
"APPLICATION OF NATIONAL ENVIRONMENTAL POLICY ACT 
"SEC. 207. The Secretary shall ensure, to the maximum extent 30 USC 1147. 
possible, that any action undertaken pursuant to section 102(2)(C) of 
the National Environmental Policy Act of 1969 which is associated 42 USC 4332. 
with the granting of a loan guarantee under this title takes the 
maximum cognizance allowable under law of any other action there-
tofore undertaken pursuant to such section 102(2)(C) with respect to 
the project which is the subject of such loan guarantee, and that no 
such action associated with the loan guarantee shall duplicate any 
action theretofore undertaken under such section 102(2)(C) in connec-
tion with such project, so long as all of the requirements which are 
applicable to such project under such section 102(2)(C) will have been 
satisfied.". 
USE OF GEOTHERMAL ENERGY IN FEDERAL FACILITIES 
SEC. 642. The option of using geothermal energy or geothermal 30 USC 1541. 
energy resources shall be considered fully in any new Federal 
building, facility, or installation which is located in a geothermal 
resource area as designated by the Secretary. 
94 STAT. 770 
PUBLIC LAW 96-294—JUNE 30, 1980 
AMENDMENTS TO FEDERAL POWER ACT AND PUBUC UTILITY 
REGULATORY POLICIES ACT 
SEC. 643. (a) The Federal Power Act is amended— 
(1) by inserting "geothermal resources," after "renewable 
16 use 796. 
resources," in section 3(17XAXi); 
(2) by inserting "geothermal power producer (including a 
producer which is not an electric utility), after "Federal power 
16 use 824i. 
marketing agency," in section 210(a)(1); and 
(3) by striking out "Any electric utility" at the beginning of 
16 use 824j. 
section 211(a) and inserting in lieu thereof "Any electric utility, 
geothermal power producer (including a producer which is not an 
electric utilitv)" 
(b) Section 210 of the Public Utility Regulatory Policies Act of 1978 
16 use 824a-3. 
(PubUc Law 95-617) is amended— 
(1) by inserting ", and to encourage geothermal small power 
production facilities of not more than 80 megawatts capacity," 
after "to encourage cogeneration and small power production in 
the first sentence of subsection (a); 
(2) by striking out "qualifj^ing cogeneration facilities" in sub-
section (eXD and inserting in lieu thereof "geothermal small 
power production facilities of not more than 80 megawatts 
capacity, qualifying cogeneration facilities,"; and 
(3) by inserting ", or 80 megawatts for a qualifying small power 
production faciuty using geothermal energy as the primary 
energy source," after "30 megawatts" in subsection (eX2). 
REGULATIONS 
30 use 1542. 
SEC. 644. All regulations made with respect to this subtitle shall be 
promulgated no later than six months after the date of the enactment 
of this Act. 
Acid 
TITLE Vn-ACID PRECIPITATION PROGRAM AND CARBON 
icfif S r 
DIOXIDE STUDY 
SUBTITLE A—ACID PRECIPITATION 
SHORT TITLE 
42 use 8901 
SEC. 701. This title may be cited as the "Acid Precipitation Act of 
note. 
jggQ,,^ 
STATEMENT OF FINDINGS AND PURPOSE 
42 use 8901. 
SEC. 702. (a) The Congress finds and declares that acid precipitation 
resulting from other than natural sources— 
(1) could contribute to the increasing pollution of natural and 
man-made water systems; 
(2) could adversely affect agricultural and forest crops; 
(3) could adversely affect fish and wildlife and natural ecosys-
tems generally; 
(4) could contribute to corrosion of metals, wood, paint, and 
masonry used in construction and ornamentation of buildings 
and public monuments; 
(5) could adversely affect public health and welfare; and 
(6) could affect areas distant from sources and thus involve 
issues of national and international policy. 
(b) The Congress declares that it is the purpose of this subtitle— 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 771 
(1) to identify the causes and sources of acid precipitation; 
(2) to evaluate the environmental, social, and economic effects 
of acid precipitation; and 
(3) based on the results of the research program established by 
this subtitle and to the extent consistent with existing law, to 
take action to the extent necessary and practicable (A) to limit or 
eliminate the identified emissions which are sources of acid 
precipitation, and (B) to remedy or otherwise ameliorate the 
harmful effects which may result from acid precipitation. 
(c) For purposes of this subtitle the term "acid precipitation" means 
the wet or dry deposition from the atmosphere of acid chemical 
compounds. 
"Acid 
precipitation. 
INTERAGENCY TASK FORCE; COMPREHENSIVE PROGRAM 
SEC. 703. (a) There is hereby established a comprehensive ten-year 
program to carry out the provisions of this subtitle; and to implement 
this program there shall be formed an Acid Precipitation Task Force 
(hereafter in this subtitle referred to as the "Task Force"), of which 
the Secretary of Agriculture, the Administrator of the Environmen-
tal Protection Agency, and the Administrator of the National 
Oceanic and Atmospheric Administration shall be joint chairmen. 
The remaining membership of the Task Force shall consist of— 
(1) one representative each from the Department of the 
Interior, the Department of Health and Human Services, the 
Department of Commerce, the Department of Energy, the De-
partment of State, the National Aeronautics and Space Adminis-
tration, the Council on Environmental Quality, the National 
Science Foundation, and the Tennessee Valley Authority; 
(2) the director of the Argonne National Laboratory, the 
director of the Brookhaven National Laboratory, the director of 
the Oak Ridge National Laboratory, and the director of the 
Pacific Northwest National Laboratory; and 
(3) four additional members to be appointed by the President. 
(b) The four National Laboratories (referred to in subsection (aX2)) 
shall constitute a research management consortium having the 
responsibilities described in section 704(bX13) as well as the general 
responsibilities required by their representation on the Task Force. 
In carrying out these responsibilities the consortium shall report to, 
and act pursuant to direction from, the joint chairmen of the Task 
Force. 
(c) The Administrator of the National Oceanic and Atmospheric 
Administration shall serve as the director of the research program 
established by this subtitle. 
Acid 
Precipitation 
Task Force. 
42 u s e 8902. 
Research 
management 
consortium. 
Director. 
COMPREHENSIVE RESEARCH PLAN 
SEC. 704. (a) The Task Force shall prepare a comprehensive 
research plan for the ten-year program (hereafter in this subtitle 
referred to as the "comprehensive plan"), setting forth a coordinated 
program (1) to identify the causes and effects of acid precipitation and 
(2) to identify actions to limit or ameliorate the harmful effects of acid 
precipitation, 
(b) The comprehensive plan shall include programs for— 
(1) identifying the sources of atmospheric emissions contribut-
ing to acid precipitation; 
42 u s e 8903. 
94 STAT. 772 
PUBLIC LAW 96-294—JUNE 30, 1980 
Submittal to 
Congress; public 
review. 
(2) establishing and operating a nationwide long-term monitor-
ing network to detect and measure levels of acid precipitation; 
(3) research in atmospheric physics and chemistry to facilitate 
understanding of the processes by which atmospheric emissions 
are transformed into acid precipitation; 
(4) development and application of atmospheric transport 
models to enable prediction of long-range transport of substances 
causing acid precipitation; 
(5) defining geographic areas of impact through deposition 
monitoring, identification of sensitive areas, and identification of 
areas at risk; 
(6) broadening of impact data bases through collection of 
existing data on water and soil chemistry and through temporal 
trend analysis; 
(7) development of dose-response functions with respect to 
soils, soil organisms, aquatic and amphibious organisms, crop 
plants, and forest plants; 
(8) establishing and carrying out system studies with respect to 
plant physiology, aquatic ecosystems, soil chemistry systems, soil 
microbial systems, and forest ecosystems; 
(9) economic assessments of (A) the environmental impacts 
caused by acid precipitation on crops, forests, fisheries, and 
recreational and aesthetic resources and structures, and (B) 
alternative technologies to remedy or otherwise ameliorate the 
harmful effects which may result from acid precipitation; 
(10) documenting all current Federal activities related to 
research on acid precipitation and ensuring that such activities 
are coordinated in ways that prevent needless duplication and 
waste of financial and technical resources; 
(11) effecting cooperation in acid precipitation research and 
development programs, ongoing and planned, with the affected 
and contributing States and with other sovereign nations having 
a commonality of interest; 
(12) subject to subsection (fKD, management by the Task Force 
of financial resources committed to Federal acid precipitation 
research and development; 
(13) subject to subsection (fX2), management of the technical 
aspects of Federal acid precipitation research and development 
programs, including but not limited to (A) the planning and 
management of research and development programs and proj-
ects, (B) the selection of contractors and grantees to carry out 
such programs and projects, and (C) the establishment of peer 
review procedures to assure the quality of research and develop-
ment programs and their products; and 
(14) analyzing the information available regarding acid pre-
cipitation in order to formulate and present periodic recommen-
dations to the Congress and the appropriate agencies about 
actions to be taken by these bodies to alleviate acid precipitation 
and its effects. 
(c) The comprehensive plan— 
(1) shall be submitted in draft form to the Congress, and for 
public review, within six months after the date of the enactment 
of this Act; 
(2) shall be available for public comment for a period of sixty 
days after its submission in draft form under paragraph (1); 
(3) shall be submitted in final form, incorporating such needed 
revisions as arise from comments received during the review 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 773 
period, to the President and the Congress within forty-five days 
after the close of the period allowed for comments on the draft 
comprehensive plan under paragraph (2); and 
(4) shall constitute the basis on which requests for authoriza-
tions and appropriations are to be made for the nine fiscal years 
following the fiscal year in which the comprehensive plan is 
submitted in final form under paragraph (3). 
(d) The Task Force shall convene as necessary, but no less than 
twice during each fiscal year of the ten-year period covered by the 
comprehensive plan. 
(e) The Task Force shall submit to the President and the Congress Annual report to 
by January 15 of each year an annual report which shall detail the P^'^sident and 
progress of the research program under this subtitle and which shall 
""sress. 
contain such recommendations as are developed under subsection 
(bX14). 
(f)(1) Subsection (b)(12) shall not be construed as modif3dng, or as 
authorizing the Task Force or the comprehensive plan to modify, any 
provision of an appropriation Act (or any other provision of law 
relating to the use of appropriated funds) which specifies (A) the 
department or agency to which funds are appropriated, or (B) the 
obligations of such department or agency with respect to the use of 
such funds. 
(2) Subsection (b)(13) shall not be construed as modifying, or as 
authorizing the Task Force or the comprehensive plan to modify, any 
provision of law (relating to or involving a department or agency) 
which specifies (A) procurement practices for the selection, award, or 
management of contracts or grants by such department or agency, or 
(B) program activities, limitations, obligations, or responsibilities of 
such department or agency. 
IMPLEMENTATION OF COMPREHENSIVE PLAN 
SEC. 705. (a) The comprehensive plan shall be carried out during 42 USC 8904. 
the nine fiscal years following the fiscal year in which the compre-
hensive plan is submitted in its final form under section 704(c)(3); 
and— 
(1) shall be carried out in accord with, and meet the program 
objectives specified in, paragraphs (1) through (11) of section 
704(b); 
(2) shall be managed in accord with paragraphs (12) through 
(14) of such section; and 
(3) shall be funded by annual appropriations, subject to annual 
authorizations which shall be made for each fiscal year of the 
program (as provided in section 706) after the submission of the 
Task Force progress report which under section 704(e) is required 
to be submitted by January 15 of the calendar year in which such 
fiscal year begins. 
(b) Nothing in this subtitle shall be deemed to grant any new 
regulatory authority or to limit, expand, or otherwise modify any 
regulatory authority under existing law, or to establish new criteria, 
standards, or requirements for regulation under existing law. 
AUTHORIZATION OF APPROPRIATIONS 
SEC. 706. (a) For the purpose of establishing the Task Force and 42 USC 8905. 
developing the comprehensive plan under section 704 there is author-
ized to be appropriated to the National Oceanic and Atmospheric 
94 STAT. 774 
PUBLIC LAW 96-294—JUNE 30, 1980 
Administration for fiscal year 1981 the sum of $5,000,000, to remain 
available until expended. 
O
t
>
) Authorizations of appropriations for the nine fiscal years 
following the fiscal year in which the comprehensive plan is submit-
ted in final form under section 704(c)(3), for purposes of carrying out 
the comprehensive ten-year program established by section 703(a) 
and implementing the comprehensive plan under sections 704 and 
705, shall be provided on an annual basis in authorization Acts 
hereafter enacted; but the total sum of dollars authorized for such 
purposes for such nine fiscal years shall not exceed $45,000,000 except 
as may be specifically provided by reference to this paragraph in the 
authorization Acts involved. 
SUBTITLE B—CARBON DIOXIDE 
42 use 8911. 
Report to 
Congress. 
Results, report to 
Congress. 
Recommenda-
tions. 
STUDY 
SEC. 711. (a)(1) The Director of the Office of Science and Technology 
Policy shall enter into an agreement with the National Academy of 
Sciences to carry out a comprehensive study of the projected impact, 
on the level of carbon dioxide in the atmosphere, of fossil fuel 
combustion, coal-conversion and related S5nithetic fuels activities 
authorized in this Act, and other sources. Such study should also 
include an assessment of the economic, physical, climatic, and social 
effects of such impacts. In conducting such study the Office and the 
Academy are encouraged to work with domestic and foreign govern-
mental and non-governmental entities, and international entities, so 
as to develop an international, worldwide assessment of the problems 
involved and to suggest such original research on any aspect of such 
problems as the Academy deems necessary. 
(2) The President shall report to the Congress within six months 
after the date of the enactment of this Act regarding the status of the 
Office's negotiations to implement the study required under this 
section. 
(b) A report including the major findings and recommendations 
resulting from the study required under this section shall be submit-
ted to the Congress by the Office and the Academy not later than 
three years after the date of the enactment of this Act. The Academy 
contribution to such report shall not be subject to any prior clearance 
or review, nor shall any prior clearance or conditions be imposed on 
the Academy as part of the agreement made by the Office with the 
Academy under this section. Such report shall in any event include 
recommendations regarding— 
(1) how a long-term program of domestic and international 
research, monitoring, modeling, and assessment of the causes 
and effects of varying levels of atmospheric carbon dioxide 
should be structured, including comments by the Office on the 
interagency requirements of such a program and comments by 
the Secretary of State on the international agreements required 
to carry out such a program; 
(2) how the United States can best play a role in the develop-
ment of such a long-term program on an international basis; 
(3) what domestic resources should be made available to such a 
program; 
(4) how the ongoing United States Government carbon dioxide 
assessment program should be modified so as to be of increased 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 775 
utility in providing information and recommendations of the 
highest possible value to government policy makers; and 
(5) the need for periodic reports to the Congress in conjunction 
with any long-term program the Office and the Academy may 
recommend under this section. 
(c) The Secretary of Energy, the Secretary of Commerce, the 
Administrator of the Environmental Protection Agency, and the 
Director of the National Science Foundation shall furnish to the 
Office or the Academy upon request any information which the Office 
or the Academy determines to be necessary for purposes of conduct-
ing the study required by this section. 
(d) The Office shall provide a separate assessment of the inter-
agency requirements to implement a comprehensive program of the 
type described in the third sentence of subsection (b). 
AUTHORIZATION OF APPROPRIATIONS 
SEC. 712. For the expenses of carrying out the carbon dioxide study 42 USC 8912. 
authorized by section 711 (as determined by the Office of Science and 
Technology Policy) there are authorized to be appropriated such 
sums, not exceeding $3,000,000 in the aggregate, £is may be necessary. 
At least 80 percent of any amounts appropriated pursuant to the 
preceding sentence shall be provided to the National Academy of 
Sciences. 
TITLE VIII—STRATEGIC PETROLEUM RESERVE 
PRESIDENT REQUIRED TO RESUME FILL OPERATIONS 
SEC. 801. (a) Section 160 of the Energy Policy and Conservation Act 
(42 U.S.C. 6240) is amended by adding at the end thereof the following 
new subsection: 
"(c)(1) Notwithstanding subsection (b) and the requirements of 
section 159, the President shall immediately undertake, and thereaf-
ter continue (subject to paragraph (2)), crude oil acquisition, transpor-
tation, and injection activities at a level sufficient to assure that 
crude oil in storage in the Strategic Petroleum Reserve will be 
increased at an average rate of at least 100,000 barrels per day for 
fiscal year 1981 and for each fiscal year thereafter. 
"(2) The requirement in paragraph (1) shall cease to apply when 
storage in the Strategic Petroleum Reserve equals or exceeds the 
final storage level set forth in the Strategic Petroleum Reserve 
Plan.". 
(b) The amendment made by subsection (a) shall take effect on the 42 USC 6240 
date of the enactment of this Act, and shall apply with respect to the "
^
^
^
^ 
entirety of fiscal year 1981 (and each fiscal year thereafter). 
USE OF CRUDE OIL FROM ELK HILLS RESERVE 
SEC. 802. (a) Section 160 of such Act (42 U.S.C. 6240), as amended by 
section 801, is further amended by adding at the end thereof the 
following: 
"(d)(1) Notwithstanding any other provision of law, no portion of 
the United States share of crude oil in Naval Petroleum Reserve 
Numbered 1 (Elk Hills) may be sold or otherwise disposed of other 
than to the Strategic Petroleum Reserve (either directly or by 
exchange) during any fiscal year, except as provided in paragraph (2), 
unless— 
94 STAT. 776 
PUBLIC LAW 96-294—JUNE 30, 1980 
"(A) the quantity of crude oil in storage within the Strategic 
Petroleum Reserve is at least 500,000,000 barrels; or 
"(B) acquisition, transportation, and injection activities for the 
Reserve are being undertaken for that fiscal year at a level 
sufficient to assure that crude oil in storage in the Strategic 
Petroleum Reserve will be increased at an average rate of at least 
100,000 barrels per day for that fiscal year. 
"(2)(A) The requirements of paragraph (1) shall not apply to the 
United States share of crude oil in the Naval Petroleum Reserve 
Numbered 1 which is— 
"(i) sold to small refiners under section 7430(d) of title 10, 
United States Code; 
"(ii) produced, consistent with sound engineering practices, for 
the purpose of preventing a reduction in the total quantity of 
crude oil available for ultimate recovery from the Naval Petro-
leum Reserve Numbered 1, and the amount produced is the 
minimum necessary to prevent such reduction; or 
"(iii) produced for national defense purposes under section 
7422(b)(2) of title 10, United States Code, pursuant to an authori-
zation of Congress under that section during the preceding 
9-month period.". 
Effective date. 
(b) The amendments made by subsection (a) shall take effect 
42 use 6240 
October 1,1980. 
note. 
' 
SUSPENSION DURING EMERGENCY SITUATIONS 
SEC. 803. Section 160 of the Energy Policy and Conservation Act (42 
U.S.C. 6240), as amended by sections 801 and 802, is further amended 
by adding at the end thereof the following new subsection: 
"(e)(1) The provisions of subsections (c) and (d) shall not apply (A) if 
there is in effect an order of the President directing drawdown and 
distribution pursuant to section 161 or (B) if— 
"(i) the President has found in his discretion that compliance 
with such provisions significantly impairs the ability of the 
United States to respond to a severe energy supply interruption 
or to meet the obligations of the United States under the 
international energy program; 
"(ii) the President has transmitted such finding to the Con-
42 use 6422. 
gress in accordance with section 552, together with a request for 
a suspension of such provisions; and 
"(iii) such request has been approved by a resolution by each 
House of the Congress within 60 days of continuous session after 
the date of its transmittal, in accordance with the provisions of 
section 552 applicable to energy conservation contingency plans. 
"(2) The suspension of application of subsections (c) and (d) under 
paragraph (1)(B) shall take effect on the date on which a resolution 
approving that request is adopted by the second House to have so 
approved that request and shall terminate 9 months thereafter, or 
such earlier date as is specified in the request transmitted under 
paragraph (l)(B)(ii). 
"(3) In applying the provisions of section 552 for purposes of 
paragraph (1)(B)— 
"(A) subsections (d)(2) and (d)(7) shall not apply; and 
"(B) the references to any energy conservation contin-
gency plan shall be considered to refer to a request under this 
subsection. 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 777 
"(4) The period of any suspension of subsections (c) and (d) under 
this subsection, and the quantity of any crude oil involved, shall be 
disregarded in applying the provisions of 
such subsections for periods 
following such suspension.". 
NAVAL PETROLEUM RESERVES 
SEC. 804. (a) Section 7430(b) of title 10, United States Code, is 
amended by striking out "for periods of not more than one year," and 
inserting at the end thereof the following: "Each sale of the United 
States share of petroleum shall be for periods of not more than one 
year, except that a sale of natural gas may be made for a period of 
more than one year.". 
(b) Section 7430(k) of title 10, United States Code, is amended to 
read as follows; 
"(k)(l) With respect to all or any part of the United States share of 
petroleum produced from the naval petroleum reserves, the Presi-
dent may direct that the Secretary— 
"(A) place that petroleum in the Strategic Petroleum Reserve 
as authorized by sections 151 through 166 of the Energy Policy 
and Conservation Act (42 U.S.C. 6231-6246); or 
"(B) exchange, directly or indirectly, that petroleum for other 
petroleum to be placed in the Strategic Petroleum Reserve under 
such terms and conditions and by such methods as the Secretary 
determines to be appropriate, without regard to otherwise appli-
cable Federal procurement statutes and regulations. 
"(2) The requirements of section 159 of the Energy Policy and 
Conservation Act (42 U.S.C. 6239) do not apply to actions taken under 
this subsection.". 
(c) Section 7430 of title 10, United States Code, is amended by 
adding at the end thereof the following new subsection: 
"(1)(1) Notwithstanding any other provision of this chapter (but 
subject to paragraph (2)), during any period in which the production 
of petroleum is authorized from Naval Petroleum Reserves Num-
bered 1, 2, or 3, the Secretary, at the request of the Secretary of 
Defense, may provide any portion of the United States share of 
petroleum so produced to the Department of Defense for its use, 
exchange, or sale in order to meet petroleum product requirements of 
the Department of Defense. 
"(2) Petroleum may be provided to the Department of Defense 
under paragraph (1) either directly or by such exchange as the 
Secretary deems appropriate. Appropriate reimbursement reason-
ably reflecting the fair market value shall be provided by the 
Secretary of Defense for petroleum provided under this subsection. 
"(3) Any exchange made pursuant to this subsection may be made 
without regard to otherwise applicable Federal procurement statutes 
and regulations. 
"(4) Paragraph (1) does not apply to any petroleum set aside for 
small refiners under subsection (d) of this section or placed in the 
Strategic Petroleum Reserve under subsection (k) of this section.". 
ALLOCATION TO STRATEGIC PETROLEUM RESERVE OP LOWER TIER CRUDE 
OIL; USE OF FEDERAL ROYALTY OIL 
SEC 805. (a)(1) In order to cany out the requirement of the 42 use 6240 
amendment made by section 801 of this Act and to carry out the "
°
*
® 
policies and objectives established in sections 151 and 160(bXl) of the 
94 STAT. 778 
PUBLIC LAW 96-294—JUNE 30, 1980 
Energy Policy and Conservation Act (42 U.S.C. 6231 and 6240(b)(1)), 
the President shall, within 60 days after the date of the enactment of 
this Act, promulgate and make effective an amendment to the 
provisions of the regulation under section 4(a) of the Emergency 
15 use 753. 
Petroleum Allocation Act of 1973 relating to entitlements, which has 
the same effect as allocating lower tier crude oil to the Government 
for storage in the Strategic Petroleum Reserve. Such amendment 
shall not apply with respect to crude oil purchased after September 
30,1981, for storage in such reserve. 
(2) The authority provided by this subsection shall be in addition to, 
and shall not be deemed to limit, any other authority available to the 
President under the Emergency Petroleum Allocation Act of 1973 or 
any other law. 
(3) The President or his delegate may promulgate and make 
effective rules or orders to implement this subsection without regard 
to the requirements of section 501 of the Department of Energy 
42 use 7191. 
Organization Act or any other law or regulation specifying proce-
dural requirements, 
(b) In addition to the requirement under subsection (a), the Presi-
dent may direct that— 
(1) all or any portion of Federal royalty oil be placed in storage 
in the Reserve, 
(2) all or any portion of Federal royalty oil be exchanged, 
directly or indirectly, for other crude oil for storage in the 
Reserve, or 
(3) all or any portion of the proceeds from the sales of Federal 
royalty oil be transferred to the account established under 
subsection (c) for use for the purchase of crude oil for the Reserve, 
as provided in subsection (c). 
(c)(1) Any proceeds— 
(A) from the sale of entitlements received by the Government 
under the amendment to the regulation made under subsection 
(a), and 
(B) to the extent provided in subsection (b), from the sale of 
Federal royalty oil, 
shall be deposited in a special account which the Secretary of the 
Treasury shall establish on the books of the Treasury of the United 
States. 
(2)(A) Subject to the provisions of any Act enacted pursuant to 
42 use 7270. 
section 660 of the Department of Energy Organization Act, such 
account shall be available (except as provided in subparagraph (B)) 
for use by the Secretary of Ener^, without fiscal year limitation, for 
the purchase of crude oil for the Strategic Petroleum Reserve, to the 
extent provided in advance in appropriation Acts. 
(B) Amounts in such account attributable to the proceeds from the 
sale of entitlements under the amendment to the regulation under 
subsection (a) are hereby appropriated for fiscal year 1981 for 
acquisition of crude oil for the Strategic Petroleum Reserve pursuant 
to subsection (a). 
Definitions. 
(d) For purposes of this section— 
(1) the terms "entitlements", "crude oil", and "allocation" 
shall have the same meaning as those terms have as used in the 
15 use 751 note. 
Emergency Petroleum Allocation Act of 1973 (and the regulation 
thereunder); 
(2) the term "lower tier crude oil" means crude oil which is 
subject to the price ceiling established under section 212.73 of 
title 10, Code of Federal Regulations; 
PUBLIC LAW 96-294—JUNE 30, 1980 
94 STAT. 779 
(3) the term "Federal royalty oil" means crude oil which the 
United States is entitled to receive in kind as royalties from 
production on Federal land (as such term is defined in section 
3(10) of the Eneigy Policy and Conservation Act (42 U.S.C. 
6202(10)); and 
(4) the term "proceeds from the sale of Federal royalty oil" 
means that portion of 
the amounts deposited into the Treasury of 
the United States from the sale of 
Federal royalty oil which is not 
otherwise required to be disposed of (other than as miscellaneous 
receipts) pursuant to (A) the provisions of section 35 of the Act of 
February 25, 1920, as amended (41 Stat. 450; 30 U.S.C. 191), 
commomy known as the Mineral Lands Leasing Act, or (B) the 
provisions of 
any other law. 
Approved June 30, 1980. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 96-165 accompanying H.R. 3930 (Comm. on Banking, Fi-
nance, and Urban Affairs) and No. 96-1104 (Comm. of Confer-
ence). 
SENATE REPORTS: No. 96-166 (Comm. on Banking, Housing, and Urban Affairs), 
No. 96-387 (Comm. on Energy and Natural Resources and 
Comm. on Banking, Housing, and Urban Affairs), and No. 
96-824 (Comm. of Conference). 
CONGRESSIONAL RECORD: 
Vol. 125 (1979): June 20, considered and passed Senate. 
June 26, H.R. 3930 considered and passed House; passage 
vacated and S. 932, amended, passed in lieu. 
Nov. 5, 7, 8, Senate concurred in House amendments with 
amendments. 
Vol. 126 (1980): June 19, Senate agreed to conference report. 
June 26, House agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS: 
Vol. 16, No. 27 (1980): June 30, Presidential statement.