An act entitled the "Methane Transportation Research, Development and Demonstration Act of 1980".
PL 96-512 (H.R.6889), enacted 12/12/1980

PUBLIC LAW 96-512—DEC. 12, 1980 
94 STAT. 2827 
Public Law 96-512 
96th Congress 
An Act 
Entitled the "Methane Transportation Research, Development, and Demonstration 
Act of 1980". 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled. That this Act may be 
cited as the "Methane Transportation Research, Development, and 
Demonstration Act of 1980". 
FINDINGS AND POLICY 
SEC. 2. (a) The Congress finds and declares that— 
(1) gasoline and diesel fuel for vehicular use are in short supply 
and constitute a sizable portion of domestic petroleum consump-
tion; 
(2) methane use in fleet-operated vehicles would result in 
substantial reduction in oil imports; 
(3) methane is in more abundant domestic supply than petro-
leum products, is the primary component of natural gas and can 
be derived in increased quantities from coal, biomass, waste 
products, and other renewable resources; 
(4) recoverable methane presently available in the United 
States is not fully utilized; 
(5) test results to date indicate that methane use as a substitute 
for gasoline as a motor fuel can result in emission reductions; 
(6) experience to date has shown methane to be a safe motor 
fuel in properly modified vehicles and is therefore particularly 
suitable as fuel for fleet vehicles; and 
(7) the introduction into commerce of methane-fueled vehicles 
would be expedited and facilitated by the establishment of a 
Federal program of research, development, and demonstration to 
explore and refine technologies related to methane use as a 
vehicular fuel. 
OJ) It is therefore declared to be the policy of the Congress in this 
Act to— 
(1) provide for and support advanced and accelerated research 
into, and development of, methane vehicle design, and related 
technologies; 
(2) demonstrate the economic and technological practicalities 
of methane-fueled vehicles for fleet use and of methane-fueled 
farm equipment; 
(3) facilitate, and remove barriers to, the use of methane-fueled 
vehicles in lieu of gasoline- or diesel-powered motor vehicles 
where practicable; 
(4) promote the substitution of methane-fueled vehicles for 
gasoline- and diesel-powered vehicles currently used on farms 
and in fleet operations, particularly in areas where such substi-
tution would facilitate plans to meet air quality standards set 
under the Clean Air Act, as amended; and 
Dec. 12, 1980 
[H.R. 6889] ' 
Methane 
Transportation 
Research, 
Development, 
and 
Demonstration 
Act of 1980. 
15 u s e 3801 
note. 
15 u s e 3801. 
42 u s e 7401 
note. 
94 STAT. 2828 
PUBLIC LAW 96-512—DEC. 12, 1980 
(5) supplement, but neither supplant nor duplicate, the auto-
motive propulsion system research and development efforts of 
private industry. 
DEFINITIONS 
15 use 3802. 
SEC. 3. For purposes of this Act— 
(a) the term "methane" means either natural gas (as defined in 
15 use 3301. 
section 2(1) of the Natural Gas Policy Act of 1978), gas derived 
from coal, liquefied natural gas, or any gaseous transportation 
fuel produced from biomass, waste products, and other renew-
able resources; 
(b) the term "Secretary" means the Secretary of Energy; 
(c) the term "public entities" means any unit or units of State 
and/or local governments: 
<d) the term "private entities" means any person, such as any 
organization incorporated under State law, for profit or not-for-
profit, or a consortium of such organizations, but does not include 
public entities; 
(e) the term "vehicle" means any truck, van, station wagon, 
bus, or car used on public roads or highways as well as off-road 
agricultural equipment, such as tractors, harvesters, and so 
forth, which presently burn gasoline or diesel fuel; and 
(f) the terms "facilities for the transmission and storage of 
methane", "methane transmission, storage and dispensing facili-
ties", and any variant thereof means such facilities which are (1) 
directly necessary for the conduct of a demonstration, (2) for the 
exclusive use of a demonstration and (3) reasonably incidental to 
a demonstration. 
DUTIES OF THE SECRETARY 
15 use 3803. 
SEC. 4. (a) The Secretary shall designate prior to February 1,1981, 
an appropriate organizational entity within the Department of 
Energy to manage the methane vehicle research, development, and 
demonstration program. 
(b) The Secretary shall have the responsibility for monitoring and 
Agreements 
assuring proper management of the program. The Secretary may 
with agencies. 
enter into agreements or arrangements with the National Aeronau-
tics and Space Administration, the Department of Transportation, 
the Environmental Protection Agency, or any other Federal depart-
ment or agency, pursuant to which such department or agency shall 
conduct specified parts or aspects of the program as the Secretary 
deems necessary or appropriate and within the particular compe-
tence of such agency, to the extent that such agency has capabilities 
which would enable it to contribute to the success of the program and 
attainment of the purposes of this Act. 
(c) In assuring the effective management of this program, the 
Secretary shall have specific responsibility to ascertain that the 
program includes activities to— 
(1) promote basic and applied research on methane-fueled 
vehicle construction, modification, and safety; 
(2) conduct research and development on optimum overall 
specifications for rnethane-fueled vehicles; 
(3) determine appropriate means and facilities for safely and 
economically storing, transporting, and dispensing methane for 
use as a vehicular fuel; 
(4) conduct demonstration projects with respect to the feasibil-
ity of methane-fueled vehicles and methane transmission, stor-
PUBLIC LAW 96-512—DEC. 12, 1980 
94 STAT. 2829 
Report to 
Congress. 
age and dispensing facilities (A) by providing necessary financial 
or technical assistance for the construction, modification, or 
operation of motor vehicles to be methane-fueled for practical 
use or of methane transmission, storage and dispensing facilities, 
and (B) by entering into agreements or arrangements with other 
entities, governmental and nongovernmental, for the demonstra-
tion of 
such vehicles and facilities; 
(5) gather performance data, including but not limited to 
emissions data, on methane-fueled vehicles and related transmis-
sion and storage facilities; 
(6) determine that the participants in each demonstration 
assisted under this Act have made satisfactory arrangements to 
obtain an adequate supply of methane for vehicular use in the 
project; 
(7) ascertain the need for modifications in available methane-
fueled vehicles to improve their efficiency and performance and 
to facilitate their widespread use by fleet owners; and 
(8) ascertain and report to the Congress on any changes in fuel 
supply patterns, tax policies, and standards governing the manu-
facture of vehicles which are needed to facilitate the manufac-
ture and use of 
methane-fueled vehicles. 
(d)(1) The Secretary of Energy shall insure that the conduct of the 
research and development program of 
this Act— 
(A) supplements the automotive propulsion system research 
and development efforts of industry; 
(B) is not formulated in a manner that will supplant private 
industry research and development or displace or lessen indus-
try's research and development; and 
(C) avoids duplication of private research and development. 
(2) To that end, the Secretary of Energy shall issue administrative Regulations 
regulations, within 60 days after the date of the enactment of this 
Act, which shall specify procedures, standards, and criteria for the 
timely review for compliance of each new contract, grant. Depart-
ment of Energy project, or other agency project funded or to be 
funded under the authority of this Act. Such regulations shall require 
that the Secretary of Energy or his designee shall certify that each 
such contract, grant, or project satisfies the requirement of this 
subsection, and shall include in such certification a discussion of the 
relationship of any related or comparable industry research and 
development, in terms of this subsection, to the proposed research 
and development under the authority of 
this Act. The discussion shall 
also address related issues, such as cost sharing and patent rights; 
(3) Such certifications shall be available to the Committee on 
Science and Technology of the House of Representatives and the 
Committee on Energy and Natural Resources of the Senate. The 
provisions of chapter 5 of title 5, United States Code, shall not apply 
to such certifications and no court shall have any jurisdiction to 
review the preparation or adequacy of 
such certifications; but section 
553 of title 5, United States Code, and section 17 of the Federal 
Nonnuclear Energy Research and Development Act of 1974, as 42 use 5916. 
amended, shall apply to public disclosure of such certifications. 
(4) The Secretary of Energy also shall include in the report required 
by section 9 of this Act a detailed discussion of how each research and 
development contract, grant, or project funded under the authority of 
this Act satisfies the requirement of 
this subsection. 
(5) Further, the Secretary of Energy in each annual budget submis-
sion to the Congress, or amendment thereto, for the programs 
authorized by this Act shall describe how each identified research 
Certifications, 
availability to 
congressional 
committees. 
5 u s e 500 et seq. 
94 STAT. 2830 
PUBLIC LAW 96-512—DEC. 12, 1980 
and development effort in such submission satisfies the requirements 
of this subsection. 
(6) The provisions and requirements of this subsection shall not 
apply with respect to any contract, grant, or project which was 
entered into, made, or formally approved and initiated prior to the 
enactment of this Act, or with respect to any renewal or extension 
thereof. 
COORDINATION WITH OTHER AGENCIES 
15 use 3804. 
SEC. 5. (a) In carrying out the programs established under sections 4 
and 7, the Secretary shall assure, to the maximum extent practicable, 
that the functions of this program are coordinated with related 
regulatory activities and other responsibilities of the Department of 
Energy and any other Federal departments or agencies. 
(b) Each department, agency, and instrumentality of the executive 
branch of the Federal Government shall carefully consider any 
written request from the Secretary, the head of any organizational 
entity designated by the Secretary pursuant to section 4(a), or the 
head of any agency which is party to an agreement or arrangement 
pursuant to section 4(b), to furnish such assistance, on a reimbursable 
basis, as the Secretary or such head deems necessary to carry out the 
program and to achieve the purposes of this Act. Such assistance may 
include transfer of personnel with their consent and without preju-
dice to their position and rating. 
RESEARCH AND DEVELOPMENT 
15 use 3805. 
SEC. 6. The Secretary, acting through appropriate agencies and 
contractors, shall initiate and provide for the conduct of research and 
development in areas relating to methane-fueled vehicles, including 
but not limited to— 
(1) flammability and combustibility of methane under condi-
tions likely to develop in storage or during vehicular use; 
(2) handling, storage, and distribution of methane for vehicular 
propulsion purposes; 
(3) comprehensive assessment of the relative hazards under 
identical circumstances of methane, propane, gasoline, and 
diesel fuel; 
(4) feasibility, economy, and efficiency of technologies for the 
production and recovery of methane from unconventional and 
supplemental sources, as provided for in other authorization 
Acts; 
(5) engine and fuel tank design including, but not limited to, 
optimum design for dual fuel capacity vehicles; 
(6) total vehicle construction and design; 
(7) the nature and quantities of emissions, and alterations in or 
alternatives to emission control systems presently in use; and 
(8) overcoming institutional barriers to widespread use, includ-
ing but not limited to restrictions on the transportation of 
methane for vehicular use through tunnels, and the potential 
expansion of the distribution of methane for vehicular purposes. 
DEMONSTRATIONS 
15 use 3806. 
SEC. 7. (a) Not later than January 1, 1982, the Secretary shall 
develop data assessing the current state-of-the-art with respect to 
PUBLIC LAW 96-512—DEC. 12, 1980 
94 STAT. 2831 
vehicles fueled by methane to serve as baseline data to be utilized in 
evaluating improvements in methane-fueled vehicle technologies. 
(b) Not later than April 1,1982, the Secretary shall have promul- Guidelines. 
^ated necessary and appropriate guidelines for demonstrations and 
issued an initial request for proposals for technical and financial 
assistance to support public and private entities in developing and 
implementing demonstration projects to gather data on the operation 
of methane-fueled vehicles and methane transmission, storage and 
dispensing facilities, under differing climatic, atmospheric, and oper-
ating conditions and on design and technical modifications of those 
vehicles and facilities: 
(1) In the case of public entities, the Secretary is authorized to 
provide— 
(A) technical assistance reasonably associated with the 
modification or acquisition of vehicles to be fueled by meth-
ane or with dual fuel capacity, the installation of methane 
transmission, storage and dispensing facilities, and compli-
ance with data acquisition and reporting requirements 
under this Act; and 
(B) grants to cover up to 50 per centum of reasonable and 
necessary costs associated with the installation of methane 
transmission, storage and dispensing facilities: Provided, 
That the Secretary shall be authorized to direct and require 
recipients of assistance under this section to enter into 
cooperative agreements for the planning and use of such 
facilities with other recipients of assistance under this sec-
tion, under a cost-sharing agreement where appropriate and 
economical. 
(2)(A) In the case of private entities, the Secretary is authorized 
to provide— 
(i) technical assistance reasonably associated with the 
modification or acquisition of vehicles to be fueled by meth-
ane or with dual fuel capacity, the installation of methane 
transmission, storage and dispensing facilities, and compli-
ance with data acquisition and reporting requirements 
under this Act; and 
(ii) loans to cover up to 50 per centum of reasonable and 
necessary costs associated with the installation of methane 
transmission, storage and dispensing facilities: Provided, 
That the Secretary shall be authorized to direct and require 
recipients of assistance under this section to enter into 
cooperative agreements for the planning and use of such 
faculties with other recipients of assistance under this sec-
tion under a cost-sharing agreement where appropriate and 
economical. 
(B) Loans issued under this section shall bear interest at such 
rate as the Secretary may determine, giving consideration to the 
needs and capacities of the recipient and the prevailing rates of 
interest (public and private), except that such rate shall not be 
less than a rate determined by the Secretary of the Treasury, 
taking into consideration the current average yield on outstand-
ing marketable obligations of the United States with remaining 
periods of maturity comparable to the average maturities of such 
loans. No loan shall be made unless the Secretary shall have 
determined that there is reasonable prospect of repayment. 
(C) The terms and conditions of loans issued under this section 
shall take into account the scope of the particular demonstration 
and any particular conditions which might reasonably be 
Loans, interest 
rate. 
Terms and 
conditions. 
94 STAT. 2832 
PUBLIC LAW 96-512—DEC. 12, 1980 
expected to result in additional costs to the recipient, and shall 
reflect the relative costs of gasoline and diesel fuel and methane 
and the projected savings in fuel costs to the recipient as a result 
of participating in the demonstration. In no instance shall a loan 
issued under this section be for a period in excess of five years. 
(3) The Secretary shall provide for appropriate assistance to 
defray costs associated with complying with data acquisition and 
reporting requirements under this Act. 
(4) In the case of an organization comprised of both public and 
private entities, a package of technical and financial assistance 
shall be designed to the maximum extent feasible, in such a 
manner as to assist its public components as provided for in 
paragraph (1) and to assist its private components as provided for 
in paragraph (2) of this section. 
(c) Not fewer than fifty demonstrations shall be assisted under this 
section with not fewer than ten being initiated in the fiscal year 
ending September 30,1982, and not fewer than twenty being initiated 
in each of the fiscal years ending September 30,1983, and September 
30,1984. In the case of demonstrations initiated under this Act after 
the first fiscal year in which demonstrations are funded, the Secre-
tary shall ascertain that plans for such demonstrations take into 
consideration information and findings included in reports filed on 
other demonstrations assisted under this Act. 
(d) Each demonstration shall have a duration of at least three years 
during which time records including, but not limited to, fuel effi-
ciency indicators, emissions data, repair statistics, and detailed 
reports of any accidents, shall be maintained and reports made to the 
Secretary in accordance with guidelines promulgated by the Secre-
tary prior to issuance of the first loan or grant under this section and 
amended no more often than twice annually. 
(e) In selecting proposed demonstrations to be supported under this 
section, the Secretary shall, to the maximum extent practicable, 
assure representation of diverse operating conditions and vehicle 
types including, but not limited to— 
(1) altitude and topography, 
(2) climatic conditions, 
(3) air quality conditions, 
(4) industrial, commercial, and agricultural uses, 
(5) varying vehicular structures, and 
(6) average trip lengths: 
Provided, however, That not fewer than two demonstrations initiated 
in each year shall be located in a county or standard metropolitan 
statistical area designated by the Secretary upon recommendation of 
the Administrator of the Environmental Protection Agency based on 
severity or uniqueness of air quality conditions: And provided fur-
ther. That the fleet or portions of fleets participating in each 
demonstration with funding under this Act shall consist of not fewer 
than fifty vehicles, except in the case of one demonstration each year 
involving methane-fueled off-road agricultural equipment. 
USE OF METHANE-FUELED VEHICLES BY FEDERAL AGENCIES 
Consultation. 
SEC. 8. The Secretary shall consult with the Postmaster General of 
15 use 3807. 
tjjg United States Postal Service, the Administrator of the General 
Services Administration, the Secretary of Defense, and the heads of 
other Federal agencies where appropriate to— 
(a) determine the practicability of using methane vehicles in 
the performance of certain or all of the functions of their 
PUBLIC LAW 96-512—DEC. 12, 1980 
94 STAT. 2833 
agencies based in counties and standard metropolitan statistical 
areas in which demonstrations under section 7 of this Act are 
being conducted; and 
(b) arrange for appropriate use of methane-fueled vehicles at 
the earliest practicable date. 
REPORTS TO THE CONGRESS 
SEC. 9. The Secretary shall submit to the Senate and the House of i^ use 3808. 
Representatives, for referral to the appropriate committees, such 
reports as the Secretary deems appropriate including an annual 
report on all activities being undertaken or carried out pursuant to 
the provisions of the Act, including— 
(1) such projections and estimates as may be necessary to 
evaluate the progress of the program and to indicate the extent 
to which, and the pace at which, the objectives of this Act are 
being achieved; 
(2) an assessment of what problems exist and of the need for 
further research and development oriented toward the resolu-
tion of those problems; 
(3) an assessment of the potential for commercialization of 
methane-fueled vehicles in various markets; and 
(4) any recommendations which the Secretary may deem 
appropriate for legislation or administrative action which would 
further the purposes of this Act or facilitate expanded commer-
cial use of methane-fueled vehicles. 
AUTHORIZATIONS FOR APPROPRIATIONS 
SEC. 10. There are authorized to be appropriated to the Secretary 15 use 3809. 
for purposes of carrying out this Act, not to exceed $3,000,000 for the 
fiscal year ending September 30,1982, not less than one-half of which 
shall be for the purpose of making loans under section Kb); not to 
exceed $5,000,000 for the fiscal year ending September 30,1983, not 
less than one-half of which shall be for the purpose of making loans 
under section 1(b); not to exceed $5,000,000 for the fiscal year ending 
September 30, 1984, not less than one-half of which shall be for the 
purpose of making loans under section 7(b); and such sums as may be 
necessary for the fiscal years ending September 30,1985, and Septem-
ber 30,1986. Any amount appropriated pursuant to this section shall 
remain available until expended. 
RELATIONSHIP TO OTHER LAWS 
SEC. 11. (a) Nothing in this Act shall be construed as authorizing ^^ use 3810. 
the Secretary or any other official with respect to any activity 
pursuant to this Act to modify or waive the application of any 
Federal, State or local laws dealing with the production, transporta-
tion, storage, safety, use or pricing of methane. 
94 STAT. 2834 
PUBLIC LAW 96-512—DEC. 12, 1980 
(b) Nothing in this Act shall be construed as granting the Secretary 
or any other Federal official any authority to promulgate rules of 
general application to regulate the production, transportation, stor-
age, safety, use or pricing of methane as a transportation fuel or 
vehicles which use methane as a transportation fuel. 
Approved December 12, 1980. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 96-1237 (Comm. on Science and Technology). 
SENATE REPORT No. 96-1006 (Comm. on Energy and Natural Resources). 
CONGRESSIONAL RECORD, Vol. 126 (1980): 
Aug. 25, considered and passed House. 
Nov. 20, considered and passed Senate, amended. 
Nov. 21, passage vitiated; reconsidered and passed Senate, amended; House 
concurred in Senate amendments.