Public Utility Regulatory Policies Act
PL 95-617 (H.R.4018), enacted 11/09/1978

PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3117 
Public Law 95-617 
95th Congress 
An Act 
To suspend until the close of June 30. 1980, the duty on certain doxorubicin 
Nov. 9, 1978 
hydrochloride antibiotics. 
[H.R. 4018] 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled. 
Public Utility 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
pSi^fArt of 
(a) SHORT TITLE.—This Act may be cited as the "Public Utility 1978*** 
Regulatory Policies Act of 1978". 
16 USC 2601 
(b) TABLE OF CONTENTS.— 
note. 
Sec. 1. Short title and table of contents. 
Sec. 2. Findings. 
Sec. 3. Definitions. 
Sec. 4. Relationship to antitrust laws. 
TITLE I—RETAIL REGULATORY POLICIES FOR ELECTRIC 
UTILITIES 
Subtitle A—General Provisions 
Sec. 101. Purposes. 
Sec. 102. Coverage. 
Sec. 103. Federal contracts. 
Subtitle B—Standards for Electric Utilities 
Sec. 111. Consideration and determination respecting certain 
ratemaking 
standards. 
Sec. 112. Obligations to consider and determine. 
Sec. 113. Adoption of certain standards. 
Sec. 114. Lifeline rates. 
Sec. 115. Special rules for standards. 
Sec. 116. Reports respecting standards. 
Sec. 117. Relationship to State law. 
Subtitle C—Intervention and Judicial Review 
Sec. 121. Intervention in proceedings. 
Sec. 122. Consumer representation. 
Sec. 123. Judicial review and enforcement. 
Sec. 124. Prior and pending proceedings. 
Subtitle D—Administrative Provisions 
Sec. 131. Voluntary guidelines. 
Sec. 132. Responsibilities of Secretary of Energy. 
Sec. 133. Gathering information on costs of service. 
Sec. 134. Relationship to other authority. 
Subtitle E3—State Utility Regulatory Assistance 
Sec. 141. Grants to carry out titles I and III. 
Sec. 142. Authorizations. 
Sec. 143. Conforming amendments. 
92 STAT. 3118 
PUBLIC LAW 95-617—NOV. 9, 1978 
TITLE II—CERTAIN FEDERAL ENERGY REGULATORY COMMISSION 
AND DEPARTMENT OF ENERGY AUTHORITIES 
Sec. 201. Definitions. 
Sec. 202. Interconnection. 
Sec. 203. WheeUng. 
Sec. 204. General provisions regarding certain interconnection and wheeling 
!^ 
• 
authority. 
Sec. 205. Pooling. 
Sec. 206. Continuance of service. 
Sec. 207. Consideration of proposed rate increases. 
' : 
Sec. 208. Automatic adjustment clauses. 
Sec. 209. Reliability. 
Sec. 210. Cogeneration and small power production. 
Sec. 211. Interlocking directorates. 
Sec. 212. Public participation before Federal Energy Regulatory Commission. 
Sec. 213. Conduit hydroelectric facilities. 
Sec. 214. Prior action; effect on other authorities. 
TITLE III—RETAIL POLICIES FOR NATURAL GAS UTILITIES 
Sec. 301. Purposes; coverage. 
Sec. 302. Definitions. 
Sec. 303. Adoption of certain standards. 
Sec. 304. Special rules for standards. 
Sec. 305. Federal participation. 
Sec. 306. Gas utility rate design proposals. 
Sec. 307. Judicial review and enforcement. 
Sec. 308. Relationship to other applicable law. 
Sec. 309. Reports respecting standards. 
Sec. 310. Prior and pending proceedings. 
Sec. 311. Relationship to other authority. 
TITLE IV—SMALL HYDROELECTRIC POWER PROJECTS 
Sec. 401. Establishment of program. 
Sec. 402. Loans for feasibility studies. 
Sec. 403. Loans for project costs. 
Sec. 404. Loan rates and repayment. 
Sec. 405. Simplified and expeditious licensing procedures. 
Sec. 406. New impoundments. 
Sec. 407. Authorizations. 
Sec. 408. Definitions. 
TITLE V—CRUDE OIL TRANSPORTATION SYSTEMS 
Sec. 501. Findings. 
Sec. 502. Statement of purposes. 
Sec. 503. Definitions. 
Sec. 504. Applications for approval of proposed crude oil transportation systems. 
Sec. 505. Review schedule. 
Sec. 506. Environmental impact statements. 
Sec. 507. Decision of the President. 
Sec. 508. Procedures for waiver of Federal law. 
Sec. 509. Expedited procedures for issuance of permits: enforcement of rights-
of-way. 
Sec. 510. Negotiations with the Government of Canada. 
Sec. 511. Judicial review. 
Sec. 512. Authorization for appropriation. 
TITLE VI—MISCELLANEOUS PROVISIONS 
Sec. 601. Study concerning electric rates of State utility agencies. 
Sec. 602. Seasonal diversity electricity exchange. 
Sec. 603. Utility regulatory institute. 
Sec. 604. Coal research laboratories. 
Sec. 605. Conserved natural gas. 
Sec. 606. Voluntary conversion of natural gas users to heavy fuel oil users. 
Sec. 607. Emergency conversion of utilities and other facilities. 
Sec. 608. Natural gas transportation policies. 
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3119 
SEC. 2. FINDINGS. 
• 
. . . . . . . . 
16 USC 2601. 
The Congress finds that the protection of the public health, safety, 
and welfare, the preservation of national security, and the proper 
exercise of congressional authority under the Constitution to regulate 
interstate commerce require— 
(1) a program providing for increased conservation of electric 
energy, increased efficiency in the use of facilities and resources by 
electric utilities, and equitable retail rates for electric consumers, 
(2) a program to improve the wholesale distribution of electric 
energy, the reliability of electric service, the procedures concern-
ing consideration of wholesale rate applications before the Fed-
eral Energy Regulatory Commission, the participation of the 
public in matters before the Commission, and to provide other 
measures with respect to the regulation of the wholesale sale of 
electric energy, 
(3) a program to provide for the expeditious development of 
hydroelectric potential at existing small dams to provide needed 
hydroelectric power, 
(4^ a program for the conservation of natural gas while insur-
ing tnat rates to natural gas consumers are equitable, 
(5) a program to encourage the development of crude oil trans-
portation systems^and 
(6) the establishment of certain other authorities as provided in 
title VI of this Act. 
SEC. 3. DEFINITIONS. 
16 USC 2602. 
As used in this Act, except as otherwise specifically provided— 
(1) The term "antitrust laws" includes the Sherman Antitrust 
Ace (15 U.S.C. 1 and following), the Clayton Act (15 U.S.C. 12 
and following), the Federal Trade Commission Act (15 U.S.C. 
14 and following), the Wilson Tariff Act (15 U.S.C. 8 and 9), and 
the Act of June 19,1936, chapter 692 (15 U.S.C. 13,13a, 13b, and 
21A). 
(2) The term "class" means, with respect to electric consumers, 
any group of such consumers who have similar characteristics of 
electric energy use. 
(3) The term "Commission" means the Federal Energy Regula-
tory Commission. 
(4) The term "electric utility" means any person. State agency, 
or Federal agency, which sells electric energy. 
(5) The term "electric consumer" means any person. State 
agency, or Federal agency, to which electric energy is sold other 
than tor purposes of resale. 
(6) The term "evidentiary hearing" means— 
(A) in the case of a State agency, a proceeding which (i) 
is open to the public, (ii) includes notice to participants and 
an opportunity for such participants to present direct and 
rebuttal evidence and to cross-examine witnesses, (iii) 
includes a written decision, based upon evidence appearing 
in a written record of the proceeding, and (iv) is subject to 
judicial review; 
(B) in the case of a Federal agency, a proceeding con-
ducted as provided in sections 554, 556, and 557 of title 5, 
United States Code; and 
;: 
(C) in the case of a proceeding conducted by any entity 
other than a State or Federal agency, a proceeding which con-
92 STAT. 3120 
PUBLIC LAW 95-617—NOV. 9, 1978 
forms, to the extent appropriate, with the requirements of 
subparagraph (A). 
(7) The term "Federal agency" means an executive agency (as 
defined in section 105 of title 5 of the United States Code). 
(8) The term "load management technique" means any tech-
nique (other than a time-of-day or seasonal rate) to reduce the 
maximum kilowatt demand on the electric utility, including rip-
ple or radio control mechanisms, and other types of interruptible 
electric service, energy storage devices, and load-limiting devices. 
(9) The term "nonregulated electric utility" means any electric 
utility other than a State regulated electric utility. 
(10) The term "rate" means (A) any price, rate, charge, or clas-
sification made, demanded, observed, or received with respect 
to sale of electric energy by an electric utility to an electric con-
sumer, (B) any rule, regulation, or practice respecting any such 
rate, charge, or classification, and (C) any contract pertaining 
to the sale of electric energy to an electric consumer. 
(11) The term "ratemaking authority" means authority to fix, 
modify, approve, or disapprove rates. 
(12) The term "rate schedule" means the designation of the 
rates which an electric utility charges for electric energy. 
(13) The term "sale" when used with respect to electric energy 
includes any exchange of electric energy. 
(14:) The term "Secretary" means the Secretary of Energy. 
(15) The term "State" means a State, the District of Columbia, 
and Puerto Rico. 
(16) The term "State agency" means a State, political subdivi-
sion tnereof, and anv agency or instrumentality of either. 
(17) The term "State regulatory authority" means any State 
agency which has ratemaking authority with respect to the sale of 
electric energy by any electric utility (other than such State 
agency), and in the case of an electric utility with respect to 
which the Tennessee Valley Authority has ratemaking authority, 
such term means the Tennessee Valley Authority. 
(18) The term "State regulated electric utility" means any elec-
tric utility with respect to which a State regulatory authority 
has ratemaking authority. 
16 use 2603. 
SEC. 4. RELATIONSHIP TO ANTITRUST LAWS. 
Nothing in this Act or in any amendment made by this Act affects— 
(1) the applicability of the antitrust laws to any electric utility 
Post, p. 3150. 
or gas utility (as defined in section 302), or 
(2) any authority of the Secretary or of the Commission under 
any other provision of law (including the Federal Power Act and 
16 use 791a, 15 
the Natural Gas Act) respecting unfair methods of competition 
use 717w. 
or anticompetitive acts or practices. 
TITLE I—RETAIL REGULATORY POLICIES 
FOR ELECTRIC UTILITIES 
Subtitle A—General Provisions 
16 use 2611. 
SEC. 101. PURPOSES. 
The purposes of this title are to encourage— 
(1) conservation of energy supplied by electric utilities; 
(2) the optimization of the efficiency of use of facilities and 
resources by electric utilities; and 
(3) equitable rates to electric consumers. 
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3121 
SEC. 102. COVERAGE. 
16 USC 2612. 
(a) VOLUME OF TOTAL RETAIL SALES.—This title applies to each 
electric utility in any calendar year, and to each proceeding relating to 
each electric utility in such year, if the total sales of electric energy by 
such utility for purposes other than resale exceeded 500 million kilo-
watt-hours during any calendar year beginning after December 31, 
1975, and before uie immediately preceding calendar year. 
(b) EXCLUSION OF WHOLESALE SALES.—The requirements of this 
title do not apply to the operations of an electric utility, or to proceed-
ings respecting such operations, to the extent that such operations or 
proceedings relate to sales of electric energy for purposes of resale. 
(c) LIST OF COVERED UTILITIES.—Before the beginning of each cal-
endar year, the Secretary shall publish a list identifying each electric 
utility to which this title applies during such calendar year. Promptly 
after publication of such list each State regulatory authority shall 
k; 
notify the Secretary of each electric utility on the list for which such 
State regulatory authority has ratemaking authority. 
SEC. 103. FEDERAL CONTRACTS. 
16 USC 2613. 
Notwithstanding the limitation contained in section 102(b), no con-
tract between a Federal agency and any electric utility for the sale 
of electric energy by such Federal agency for resale which is entered 
into or renewed after the date of the enactment of this Act maj con-
tain any provision which will have the effect of preventing the imple-
mentation of any requirement of subtitle B or C. Any provision in any 
such contract which has such effect shall be null and void. 
Subtitle B—Standards For Electric Utilities 
SEC. 111. CONSIDERATION AND DETERMINATION RESPECTING CER- 16 USC 2621. 
TAIN RATEMAKING STANDARDS. 
(a) CONSIDERATION AND DETERMINATION.—Each State regulatory 
authority (with respect to each electric utility for which it has rate-
making authority) and each nonregulatecl electric utility shall 
consider each standard established by subsection (d) and make a deter-
mination concerning whether or not it is appropriate to implement 
such standard to carry out the purposes of this title. For purposes of 
such consideration and determination in accordance with subsections 
(b) and (c), and for purposes of any review of such consideration and 
determination in any court in accordance with section 123, the pur-
poses of this title supplement otherwise applicable State law. Nothing 
in this subsection prohibits any State regulatory authority or nonreg-
ulated electric utility from making any determination that it is not 
appropriate to implement any such standard, pursuant to its authority 
imder otherwise applicable State law. 
(b) PROCEDURAL REQUIREMENTS FOR CONSIDERATION AND DETERMINA-
TION.— (1) The consideration referred to in subsection (a) shall be Notice and 
made after public notice and hearing. The determination referred to in hearing, 
subsection (a) shallbe— 
(A^ in writing, 
(B) based upon findings included in such determination and 
upon the evidence presented at the hearing, and 
(C) available to the public. 
(2) Except as otherwise provided in paragraph (1), in the second 
sentence of section 112(a), and in sections 121 and 122, the procedures 
for the consideration and determination referred to in subsection (a) 
shall be those established by the State regulatory authority or the non-
regulated electric utility. 
92 STAT. 3122 
PUBLIC LAW 95-617—NOV. 9, 1978 
' * ' 
(c) IMPLEMENTATION.—(1) The State regulatory authority (with 
respect to each electric utility for which it has ratemaking authority) 
or nonregulated electric utility may, to the extent consistent with 
otherwise applicable State law— 
(A) implement any such standard determined under subsec-
tion (a) to be appropriate to carry out the purposes of this title, or 
(B) decline to implement any such standard. 
(2) If a State regulatory authority (with respect to each electric 
utility for which it has ratemaking authority) or nonregulated electric 
utility declines to implement any standard established by subsection 
(d) which is determmed under subsection (a) to be appropriate to 
carry out the purposes of this title, such authority or nonregulated 
electric utility shall state in writing the reasons therefor. Such state-
ment of reasons shall be available to the public. 
Federal 
(d) ESTABLISHMENT.—The following Federal standards are hereby 
standards. 
established: 
(1) COST OF SERVICE.—Kates charged by any electric utility for 
y^ 
,. 
providing electric service to each class of electric consumers shall 
be designed, to the maximum extent practicable, to reflect the 
costs of providing electric service to such class, as determined 
under section 115(a). 
(2) DECLINING BLOCK RATES.—The energy component of a rate, 
or the amount attributable to the energy component in a rate, 
charged by any electric utility for providing electric service dur-
ing any period to any class of electric consumers may not decrease 
as kilowatt-hour consumption by such class increases during such 
period except to the extent that such utility demonstrates that the 
costs to such utility of providing electric service to such class, 
^ , 
, 
which costs are attributable to such energy component, decrease as 
such consumption increases during such period. 
(3) TiME-OF-DAY RATES.—The rates charged by any electric 
utility for providing electric service to each class of electric con-
[ 
sumers shall be on a time-of-day basis which reflects the costs of 
providing electric service to such class of electric consumers at 
different times of the day unless such rates are not cost-effective 
: 
with respect to such class, as determined under section 115(b). 
(4) SEASONAL RATES.—The rates charged by an electric utility 
for providing electric service to each class of electric consumers 
shall be on a seasonal basis which reflects the costs of providing 
service to such class of consumers at different seasons of the year 
• 
to the extent that such costs vary seasonally for such utility. 
(5) INTERRUPTIBLE RATES.—Each electric Utility shall offcr each 
industrial and commercial electric consumer an interruptible rate 
which reflects the cost of providing interruptible service to the 
class of which such consumer is a member. 
(6) LOAD 
MANAGEMENT TECHNIQUES.—Each electric 
utility 
" " ' ^ 
shall offer to its electric consumers such load management tech-
m '?K 
niques as the State regulatory authority (or the nonregulated 
electric utility) has determined will—• 
(A) be practicable and cost-effective, as determined under 
section 115(c), 
(B) be reliable, and 
(C) provide 
useful 
energy or capacity 
management 
advantages to the electric utility. 
16 use 2622. 
SEC. 112. OBLIGATIONS TO CONSIDER AND DETERMINE. 
(a) REQUEST FOR CONSIDERATION AND DETERMINATION.—Each State 
regulatory authority (with respect to each electric utility for which 
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3123 
it has ratemaking authority) and each nonregulated electric utility 
may undertake the consideration and make the determination referred 
to in section 111 with respect to any standard established by section 
111(d) in any proceeding respecting the rates of the electric utility. 
Any participant or intervenor (including an intervenor referred to in 
section 121) in such a proceeding may request, and shall obtain, such 
consideration and determination in such proceeding. In undertaking 
such consideration and making such determination in any such pro-
ceeding with respect to the application to any electric utility of any 
standard established by section 111(d), a State regulatory authority 
(with respect to an electric utility for which it has ratemaking 
authority) or nonregulated electric utility may take into account in 
such proceeding-— 
(1) any appropriate prior determination with respect to such 
standard— 
(A) which is made in a proceeding which takes place after 
the date of the enactment of this Act, or 
(B) which was made before such date (or is made in a 
proceeding pending on such date) and complies, as provided 
in section 124, with the requirements of this title; and 
(2) the evidence upon which such prior determination was based 
(if such evidence is referenced in such proceeding). 
(b) TIME LIMITATIONS.— (1) Not later than 2 years after the date of 
the enactment of this Act, each State regulatory authority (with 
respect to each electric utility for which it has ratemaking authority) 
and each nonregulated electric utility shall commence the considera-
tion referred to in section 111, or set a hearing date for such considera-
tion, with respect to each standard established by section 111(d). 
(2) Not later than three years after the date of the enactment of this 
Act, each State regulatory authority (with respect to each electric 
utility for which it has ratemaking authority), and each nonregulated 
electric utility, shall complete the consideration, and shall make the 
determination, referred to in section 111 with respect to each standard 
established by section 111(d). 
(c) FAILURE To COMPLY.—Each State regulatory authority (with 
respect to each electric utility for which it has ratemaking authority) 
and each nonregulated electric utility shall undertake the considera-
tion, and make the determination, referred to in section 111 with 
respect to each standard established by section 111(d) in the first rate 
proceeding commenced after the date three years after the date of 
enactment of this Act respecting the rates of such utility if such State 
regulatory authority or nonregulated electric utility has not, before 
such date, complied with subsection (b) (2) with respect to such 
standard. 
SEC. 113. ADOPTION OF CERTAIN STANDARDS. 
16 USC 2623. 
(a) ADOPTION or STANDARDS.—Not later than two years after the date 
of the enactment of this Act, each State regulatory authoritv (with 
respect to each electric utility for which it has ratemaking authority), 
and each nonre^lated electric utility, shall provide public notice and 
conduct a hearing respecting the standards established by subsection 
(b) and, on the basis of such hearing, shall— 
(1) adopt the standards established by subsection (b) (other 
than paragraph (4) thereof) if, and to the extent, such authority 
or nonregulated electric utility determines that such adoption is 
appropriate to carry out the purposes of this title, is otherwise 
appropriate, and is consistent with otherwise applicable State 
law, and 
92 STAT. 3124 
PUBLIC LAW 95-617—NOV. 9, 1978 
(2) adopt the standard established by subsection (b) (4) if, 
and to the extent, such authority or nonregulated electric utility 
determines that such adoption is appropriate and consistent with 
otherwise applicable State law. 
For purposes of any determination under paragraphs (1) or (2) and 
any review of such determination in any court in accordance with sec-
tion 123, the purposes of this title supplement otherwise applicable 
State law. Nothing in this subsection prohibits any State regulatory 
authority or nonregulated electric utility from making any determina-
tion that it is not appropriate to adopt any such standard, pursuant to 
its authority under otherwise applicable State law. 
Federal 
(b) ESTABLISHMENT.—The following Federal standards are hereby 
standards. 
established: 
(1) MASTiaj METERING.—To the extent determined appropriate 
under section 115(d), master metering of jelectric service in the 
case of new buildings shall be prohibited or restricted to the 
extent necessary to carry out the purposes of this title. 
(2) AUTOMATIC ADJUSTMENT CLAUSES.—No electric utility may 
increase any rate pursuant to an automatic adjustment clause 
unless such clause meets the requirements of section 115(e). 
(3) INFORMATION TO CONSUMERS.—Each electric utility shall 
transmit to each of its electric consumers information regarding 
rate schedules in accordance with the requirements of section 
115(f). 
(4) 
PROCEDURES FOR TERMINATION OF ELECTRIC SERVICE.—No 
electric utility may terminate electric service to any electric con-
sumer except pursuant to procedures described in section 115(g). 
(5) ADVERTISING.—No electric utility may recover from any 
person other than the shareholders (or other owners) of such 
utility any direct or indirect expenditure by such utility for pro-
motional or political advertising as defined in section 115(h). 
(c) PROCEDURAL REQUIREMENTS.—Each State regulatory authority 
(with respect to each electric utility for which it has ratemaking 
authority) and each nonregulated electric utility, within the two-year 
period specified in subsection (a), shall (1) adopt, pursuant to subsec-
tion (a), each of the standards established by subsection (b) or, (2) 
with respect to any such standard which is not adopted, such authority 
or nonregulated electric utility shall state in writing that it has deter-
mined not to adopt such standard, together with the reasons for such 
determination. Such statement of reasons shall be available to the 
public. 
16 use 2624. 
SEC. 114. LIFELINE RATES. 
(a) LOWER RATES.—No provision of this title prohibits a State reg-
ulatory authority ^with respect to an electric utility for which it has 
; 
ratemaking authority) or a nonregulated electric utility from 
fixing, 
approving, or allowing to go into effect a rate for essential needs (as 
defined by the State regulatory authority or by the nonregulated elec-
tric utility, as the case may be) of residential electric consumers which 
is lower than a rate under the standard referred to in section 
111(d)(1). 
(b) DETERMINATION.—If any State regulated electric utility or non-
regulated electric utility does not have a lower rate as described in sub-
section (a) in effect two years after the date of the enactment of this 
Act, the State regulatory authority having ratemaking authority with 
respect to such State regulated electric utility or the nonregulated 
electric utility, as the case may be, shall determine, after an evidentiary 
hearing, whether such a rate should be implemented by such utility. 
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3125 
(c) PRIOR PROCEEDINGS.—Section 124 shall not apply to the require-
ments of this section. 
SEC. 115. SPECIAL RULES FOR STANDARDS. 
16 USC 2625. 
(a) COST OP SERVICE.—In undertaking the consideration and making 
the determination under section 111 with respect to the standard con-
cerning cost of service established by section 111(d) (1), the costs of 
providing electric service to each class of electric consumers shall, to 
the maximum extent practicable, be determined on the basis of methods 
prescribed by the State regulatory authority (in the case of a State 
regulated electric utility) or by the electric utility (in the case of a 
nonregulated electric utility). Such methods shall to the maximum 
extent practicable— 
(1) permit identification of differences in cost-incurrence, for 
each such class of electric consumers, attributable to daily and 
seasonal time of use of service and 
(2) permit identification of differences in cost-incurrence 
attributable to differences in customer demand, and energy 
components of cost. In prescribing such methods, such State 
regulatory authority or nonregulated electric utility shall take 
into account the extent to which total costs to an electric utility 
are likely to change if— 
(A) additional capacity is added to meet peak demand rela-
tive to base demand; and 
(B) additional kilowatt-hours of electric energy are 
delivered to electric consumers. 
(b) TIME-OF-DAY RATES.—In undertaking the consideration and 
making the determination required under section 111 with respect to 
the standard for time-of-day rates established by section 111 (d) (3), a 
time-of-day rate charged by an electric utility for providing electric 
service to each class of electric consumers shall be determined to be 
cOst-effective with respect to each such class if the long-run benefits of 
such rate to the electric utility and its electric consumers in the class 
concerned are likely to exceed the metering costs and other costs asso-
ciated with the use of such rates. 
(c) LOAD MANAGEMENT TECHNIQUES.—In undertaking the consider-
ation and making the determination required under section 111 with 
respect to the standard for load management techniques established by 
section 111(d) (6), a load management technique shall be determined, 
by the State regulatory authority or nonregulated electric utility, to be 
cost-effective if— 
(1) such technique is likely to reduce maximum kilowatt demand 
on the electric utility, and 
(2) the long-run cost-savings to the utility of such reduction are 
likely to exceed the long-run costs to the utility associated with 
implementation of such technique. 
(d) MASTER METERING.—Separate metering shall be determined 
appropriate for any new building for purposes of section 113(b) (1) 
if— 
(1) there is more than one unit in such building, 
(2) the occupant of each such unit has control over a portion of 
the electric energy used in such unit, and 
(3) with respect to such portion of electric energy used in such 
unit, the long-run benefits to the electric consumers in such 
building exceed the costs of purchasing and installing separate 
meters m such building. 
92 STAT. 3126 
PUBLIC LAW 95-617—NOV. 9, 1978 
(e) AUTOMATIC ADJUSI-MENT CLAUSES.—(1) An automatic adjust-
ment clause of an electric utility meets the requirements of this sub-
section if— 
(A) such clause is determined, not less often than every four 
years, by the State regulatory authority (with respect to an electric 
utility for which it has ratemaking authority) or by the electric 
utility (in the case of a nonregulated electric utility), after an 
evidentiary hearing, to provide incentives for efficient use of 
resources (including incentives for economical purchase and use of 
fuel and electric energy) by such electric utility, and 
(B) such clause is reviewed not less often than every two years, 
in the manner described in paragraph (2), by the State regulatory 
authority having ratemaking authority with respect to such utility 
(or by the electric utility in the case of a nonregulated electric 
utility), to insure the maximum economies in those operations and 
purchases which affect the rates to which such clause applies. 
(2) In making a review under subparagraph (B) of paragraph (1) 
with respect to an electric utility, the reviewing authority shall examine 
and, if appropriate, cause to be audited the practices of such electric 
utility relating to costs subject to an automatic adjustment clause, and 
shall require such reports as may be necessary to carry out such review 
(including a disclosure of any ownership or corporate relationship 
between such electric utility and the seller to such utility of fuel, 
electric energy, or other items). 
Definition. 
(3) As used in this subsection and section 113(b), the term "auto-
matic adjustment clause" means a provision of a rate schedule which 
provides for increases or decreases (or both), without prior hearing, in 
rates reflecting increases or decreases (or both) in costs incurred by an 
electric utility. Such term does not include an interim rate which takes 
effect subject to a later determination of the appropriate amount of the 
rate. 
(f) INFORMATION TO CONSUMERS.—(1) For purposes of the standard 
for information to consumers established by section 113(b) (3), each 
electric utility shall transmit to each of its electric consumers a clear 
and concise explanation of the existing rate schedule and any rate 
schedule applied for (or proposed by a nonregulated electric utility) 
applicable to such consumer. Such statement shall be transmitted to 
each such consumer— 
(A) not later than sixty days after the date of commencement of 
service to such consumer or ninety days after the standard estab-
lished by section 113 (b) (3) is adopted with respect to such electric 
utility, whichever last occurs, and 
(B) not later than thirty days (sixty days in the case of an elec-
tric utility which uses a bimonthly billing system) after such 
utility's application for any change in a rate schedule applicable 
to such consumer (or proposal of such a change in the case of a 
nonregulated utility). 
(2) For purposes of the standard for information to consumers 
established by section 113(b) (3), each electric utility shall transmit to 
each of its electric consumers not less frequently than once each year— 
(A) a clear and concise summary of the existing rate schedules 
applicable to each of the major classes of its electric consumers for 
which there is a separate rate, and 
(B) an identification of any classes whose rates are not 
summarized. 
Such summaiy may be transmitted together with such consumer's bill-
ing or in such other manner as the State regulatory authority or non-
regulated electric utility deems appropriate. 
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3127 
(3) For purposes of the standard for information to consumei-s 
established by section 113(b) (3), each electric utility, on request of 
an electric consumer of such utility, shall transmit to such consumer 
a clear and concise statement of the actual consumption (or degree-day 
adjusted consumption) of electric energy by such consumer for each 
billing period during the prior year (unless such consumption data is 
not reasonably ascertainable by the utility). 
(g) PROCEDURES FOR TERMINATION or ELECTRIC SERVICE.—The pro-
cedures for termination of service referred to in section 113(b)(4) 
are procedures prescribed by the State regulatory authority (with 
respect to electric utilities for which it has ratemaking authority) or 
by the nonregulated electric utility which provide that— 
(1) no electric service to an electric consumer may be termi-
nated unless reasonable prior notice (including notice of rights 
and remedies) is given to such consumer and such consumer has 
a reasonable opportunity to dispute the reasons for such termi-
nation, and 
(2) during any period when termination of service to an electric 
consumer would be especially dangerous to health, as determined 
by the State regulatory authority (with respect to an electric 
utility for which it has ratemaking authority) or nonregulated 
electric utility, and such consumer establishes that— 
(A) he is unable to pay for such service in accordance 
with the requirements of the utility's billing, or 
(B) he is able to pay for such service but only in install-
ments, 
such service may not be terminated. 
Such procedures shall take into account the need to include reasonable 
provisions for elderly and handicapped consumers. 
(h) ADVERTISING.— (1) For purposes of this section and section 113 Definitions. 
(A) The term "advertising" means the commercial use, by an 
electric utility, of any media, including newspaper, printed 
matter, radio, and television, in order to transmit a message to a 
substantial number of members of the public or to such utility's 
electric consumers. 
(B) The term "political advertising" means any advertising 
for the purpose of influencing public opinion with respect to 
legislative, administrative, or electoral matters, or with respect 
to any controversial issue of public importance. 
(C) The term "promotional advertising" means any advertis-
ing for the purpose of encouraging any person to select or use 
the service or additional service of an electric utility or the selec-
tion or installation of any appliance or equipment designed to 
use such utility's service. 
(2) For purposes of this subsection and section 113(b)(5), the 
terms "political advertising" and "promotional advertising" do not 
include— 
(A) advertising which informs electric consumers how they 
can conserve energy or can reduce peak demand for electric 
energy, 
(B) advertising required by law or regulation, including 
advertising required under part 1 of title II of the National 
Energy Conservation Policy Act, 
Post, p. 3209. 
(C) advertising regarding service interruptions, safety meas-
ures, or emergency conditions, 
(D) advertising concerning employment opportunities with 
-^ 
such utility, 
92 STAT. 3128 
PUBLIC LAW 95-617~-NOV. 9, 1978 
(E) advertising which promotes the use of energy efficient 
appliances, equipment or services, or 
(F) any explanation or justification of existing or proposed 
rate schedules, or notifications of hearings thereon. 
16 use 2626. 
SEC. 116. REPORTS RESPECTING STANDARDS. 
(a) STATE AUTHORITIES AND NONKEGHLATED UTILITIES.—Not later 
than one year after the date of the enactment of this Act and annually 
thereafter for ten years, each State regulatory authority (with respect 
to each State regulated electric utility for which it has ratemaking 
authority), and each nonregulated electric utility, shall report to the 
Secretary, in such manner as the Secretary shall prescribe, respecting 
its consideration of the standards established by sections 111(d) and 
113(b). Such report shall include a summary of the determinations 
made and actions taken with respect to each such standard on a utility-
by-utility basis. 
(b) SECRETARY.—Not later than eighteen months after the date of 
the enactment of this Act and annually thereafter for ten years, the 
Secretary shall submit a report to the President and the Congress 
containing— 
(1) a summary of the reports submitted under subsection (a), 
(2) his analysis of such reports, and 
(3) his actions under this title, and his recommendations for 
such further Federal actions, including any legislation, regarding 
retail electric utility rates (and other practices) as may be neces-
sary to carry out the purposes of this title. 
16 use 2627. 
SEC. 117. RELATIONSHIP TO STATE LAW. 
(a) REVENUE AND RATE OF RETURN.—Nothing in this title shall 
authorize or require the recovery by an electric utility of revenues, or 
of a rate of return, in excess of, or less than, the amoimt of revenues 
or the rate of return determined to be lawful under any other provi-
sion of law. 
(b) STATE AUTHORITY.—Nothing in this title prohibits any State 
regulatory authority or nonregulated electric utility from adopting, 
pursuant to State law, any standard or rule affecting electric utilities 
which is different from any standard established by this subtitle. 
(c) FEDERAL AGENCIES.—^With respect to any electric utility which 
is a Federal agency, and with respect to the Tennessee Valley Author-
ity when it is treated as a State regulatory authority as provided in 
section 3(17), any reference in section 111 or 113 to State law shall be 
treated as a reference to Federal law. 
Subtitle C—Intervention and Judicial Review 
16 use 2631. 
SEC. 121. INTERVENTION IN PROCEEDINGS. 
(a) AUTHORITY To INTERVENE AND PARTICIPATE.—In order to ini-
tiate and participate in the consideration of one or more of the stand-
ards established by subtitle B or other concepts which contribute to 
the achievement of the purposes of this title, the Secretary, any 
affected electric utility, or any electric consumer of an affected electric 
utility may intervene and participate as a matter of right in any 
ratemaking proceeding or other appropriate regulatory proceeding 
relating to rates or rate design which is conducted by a State regula-
tory authority (with respect to an electric utility for which it has 
ratemaking authority) or by a nonregulated electric utility. 
(b) ACCESS TO INFORMATION.—Any intervenor or participant in a 
proceeding described in subsection (a) shall have access to informa-
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3129 
tion available to other parties to the proceeding if such information 
is relevant to the issues to which his intervention or participation in 
such proceeding relates. Such information may be obtained through 
reasonable rules relating to discovery of information prescribed by 
the State regulatory authority (in the case of proceedings concerning 
electric utilities for which it has ratemaking authority) or by the 
nonregulated electric utility (in the case of a proceeding conducted 
by a nonregulated electric utility). 
(c) EFFECTIVE DATE; PROCEDURES.—Any intervention or participa-
tion under this section, in any proceeding commenced before the date of 
the enactment of this Act but not completed before such date, shall be 
permitted under this section only to the extent such intervention or 
participation is timely under otherwise applicable law. 
SEC. 122. CONSUMER REPRESENTATION. 
16 USC 2632, 
(a) COMPENSATION FOR COSTS OF PARTICIPATION OR INTERVENTION.— 
(1) If no alternative means for assuring representation of electric 
consumers is adopted in accordance with subsection (b) and if an 
electric consumer of an electric utility substantially contributed to the 
approval, in whole or in part, of a position advocated by such con-
sumer in a proceeding concerning such utility, and relating to any 
standard set forth in subtitle B, such utility shall be liable to compen-
sate such consumer (pursuant to paragraph (2)) for reasonable 
attorneys' fees, expert witness fees, and other reasonable costs incurred 
in preparation and advocacy of such position in such proceeding 
(including fees and costs of obtaining judicial review of any determi-
nation made in such proceeding with respect to such position). 
(2) A consumer entitled to fees and costs under paragraph (1) may 
collect such fees and costs from an electric utility by bringing a civil 
action in any State court of competent jurisdiction, unless the State 
regulatory authority (in the case of a proceeding concerning a State 
regulated electric utility) or nonregulated electric utility (in the case 
of a proceeding concerning such nonregulated electric utility) has 
adopted a reasonable procedure pursuant to which such authority or 
nonregulated electric utility— 
(A) determines the amount of such fees and costs, and 
(B) includes an award of such fees and costs in its order in the 
proceeding. 
(3) The procedure adopted by such State regulatory authority or 
nonregulated utility under paragraph (2) may include a preliminary 
proceeding to require that— 
(A) as a condition of receiving compensation under such pro-
cedure such consumer demonstrate that, but for the ability to 
receive such award, participation or intervention in such pro-
ceeding may be a significant financial hardship for such consumer, 
and 
(B) persons with the same or similar interests have a common 
legal representative in the proceeding as a condition to receiving 
compensation. 
(b) Ai.TERNAiivE MEANS.—Compensation shall not be required 
under subsection (a) if the State, the State regulatory authority (in 
the case of a proceeding concerning a State regulated electric utility), 
or the nonregulated electric utility (in the case of a proceeding con-
cerning such nonregulated electric utility) has provided an alternative 
means for providing adequate compensation to persons— 
(1) who have, or represent, an interest— 
(A) which would not otherwise be adequately represented 
in the proceeding, and 
39-194 O—80—pt. 3 
32 : QL3 
92 STAT. 3130 
PUBLIC LAW 95-617—NOV. 9, 1978 
(B) representation of which is necessary for a fair deter-
mination in the proceeding, and 
(2) who are, or represent an interest which is, unable to effec-
tively participate or intervene in the proceeding because such 
persons cannot afford to pay reasonable attorneys' fees, expert 
witness fees, and other reasonable costs of preparing for, and 
participating or intervening in, such proceeding (including fees 
and costs of obtaining judicial review of such proceeding). 
(c) TRANSCRIPTS.—^The State regulatory authority or nonregulated 
electric utility as the case may be, shall make transcripts of the pro-
ceeding available, at cost of reproduction, to parties or intorvenors in 
any ratemaking proceeding, or other regulatory proceeding relating 
to rates or rate design, before a State regulatory authority or non-
,
r 
regulated electric utility. 
(d) FEDERAL AGENCIES.—Any claim under this section against any 
Federal agency shall be subject to the availability of appropriated 
funds. 
(e) RIGHTS UNDER OTHER AUTHORITY.—Nothing in this section 
affects or restricts any rights of any participant or intervenor in any 
proceeding under any other applicable law or rule of law. 
16 use 2633. 
SEC. 123. JUDICIAL REVIEW AND ENFORCEMENT. 
(a) LIMITATION OF FEDERAL JURISDICTION.—Notwithstanding any 
other provision of law, no court of the United States shall have juris-
diction over any action arising under any provision of subtitle A or B 
or of this subtitle except for— 
(1) an action over which a court of the United States has juris-
diction under subsection (b)or(c)(2); and 
(2) review of any action in the Supreme Court of the United 
States in accordance with sections 1257 and 1258 of title 28 of the 
United States Code. 
(b) ENFORCEMENT O
F INTERVENTION RIGHT.—(1) The Secretary may 
bring an action in any appropriate court of the United States to enforce 
his right to intervene and participate under section 121(a), and such 
court shall have jurisdiction to grant appropriate relief. 
(2) If any electric utility or electric consumer having a right to 
intervene under section 121(a) is denied such right by any State court, 
such electric utility or electric consumer may bring an action in the 
appropriate United States district court to require the State regulatory 
authority or nonregulated electric utility to permit such intervention 
and participation, and such court shall have jurisdiction to grant 
appropriate relief. 
(3) Nothing in this subsection prohibits any person bringing any 
action under this subsection in a court of the United States from 
seeking review and enforcement at any time in any State court of any 
rights he may have with respect to any motion to intervene or par-
ticipate in any proceeding. 
(c) REVIEW AND ENFORCEMENT.—(1) Any person (including the 
Secretary) may obtain review of any determination made under 
subtitle A or B or under this subtitle with respect to any electric utility 
(other than a utility which is a Federal agency) in the appropriate 
State court if such person (or the Secretary) intervened or otherwise 
participated in the original proceeding or if State law otherwise 
permits such review. Any person (including the Secretary) may bring 
an action to enforce the requirements of this title in the appropriate 
State court, except that no such action may be brought in a State court 
with respect to a utility which is a Federal agency. Such review or 
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3131 
action in a State court shall be pursuant to any applicable State 
procedures. 
(2) Any person (including the Secretary) may obtain review in the 
appropriate court of the United States of any determination made 
under subtitle A or B or this subtitle by a Federal agency if such person 
(or the Secretary) intervened or otherwise participated in the original 
proceeding or if otherwise applicable law permits such review. Such 
court shall have jurisdiction to grant appropriate relief. Any person 
(including the Secretary) may bring an action to enforce the require-
ments of subtitle A or B or this subtitle with respect to any Federal 
agency in the appropriate court of the United States and such court 
shall have jurisdiction to grant appropriate relief. 
(3) In addition to his authority to obtain review under paragraph 
(1) or (2), the Secretary may also participate as an amicus curiae 
in any review by any court of an action arising under the provisions 
of subtitle A or B or this subtitle. 
(d) OTHER AUTHORITY OF THE SECRETARY.—Nothing in this section 
prohibits the Secretary from— 
(1) intervening and participating in any proceeding, or 
(2) intervening and participating in any review by any court 
of any action 
under section 204 of the Energy Conservation and Production Act. 42 USC 6804. 
SEC. 124. PRIOR AND PENDING PROCEEDINGS. 
16 USC 2634. 
For purposes of subtitles A and B, and this subtitle, proceedings 
commenced by State regulatory authorities (with respect to electric 
utilities for which it has ratemaking authority) and nonregulated 
electric utilities before the date of the enactment of this Act and 
actions taken before such date in such proceedings shall be treated as 
complying with the requirements of subtitles A and B, and this sub-
title if such proceedings and actions substantially conform to such 
requirements. For purposes of subtitles A and B, and this subtitle, 
any such proceeding or action commenced before the date of enactment 
of this Act, but not completed before such date, shall comply with the 
requirements of subtitles A and B, and this subtitle, to the maximum 
extent practicable, with respect to so much of such proceeding or 
action as takes place after such date, except as otherwise provided in 
section 121(c). 
Subtitle D—Administrative Provisions 
SEC. 131. VOLUNTARY GUIDELINES. 
16 USC 2641. 
The Secretary may prescribe voluntary guidelines respecting the 
standards established by sections 111(d) and 113(b). Such guidelines 
may not expand the scope or legal effect of such standards or establish 
additional standards respecting electric utility rates. 
SEC. 132. RESPONSIBILITIES OF SECRETARY OF ENERGY. 
16 USC 2642. 
(a) AUTHORITY.—The Secretary may periodically notify the State Notification, 
regulatory authorities, and electric utilities identified pursuant to 
section 102(c), of— 
(1) load management techniques and the results of studies 
and experiments concerning load management techniques; 
(2) developments and innovations in electric utility ratemak-
ing throughout the United States, including the results of studies 
and experiments in rate structure and rate reform; 
(3) methods for determining cost of service; and 
92 STAT. 3132 
PUBLIC LAW 95-617—NOV. 9, 1978 
(4) any other data or information which the Secretarjr deter-
mines would assist such authorities and utilities in carrying out 
the provisions of this title. 
(b) TECHNICAL ASSISTANCE.—The Secretary may provide such 
technical assistance as he determines appropriate to assist the State 
regulatory authorities in carrying out their responsibilities under sub-
title B and as is requested by any State regulatory authority relating 
to the standards established by subtitle B. 
(c) ALPPROPRIATIONS.—There are authorized to be appropriated to 
carry out the purposes of subsection (b) not to exceed $1,000,000 for 
each of the fiscal years 1979 and 1980. 
16 use 2643. 
SEC. 133. GATHERING INFORMATION ON COSTS OF SERVICE. 
(a) INFORMATTON REQUIRED To B E GATHERED.—Each electric utility 
shall periodically gather information under such rules (promulgated 
by the Commission) as the Commission determines necessary to allow 
determination of the costs associated with providing electric service. 
For purposes of this section, and for purposes of any consideration and 
determination 
respecting 
the standard 
established 
by 
section 
111(d)(2), such costs shall be separated, to the maximum extent 
practicable, into the following components: customer cost component, 
demand cost component, and energy cost component. Rules under this 
subsection shall include requirements for the gathering of the fol-
lowing information with respect to each electric utility— 
(1) the costs of serving each electric consumer class, including 
costs of serving different consumption patterns within such class, 
based on voltage level, time of use, and other appropriate factors; 
(2) daily kilowatt demand load curves for all electric consumer 
classes combined representative of daily and seasonal differences in 
demand, and daily kilowatt demand load curves for each electric 
consumer class for which there is a separate rate, representative 
of daily and seasonal differences in demand; 
(3) annual capital, operating, and maintenance costs— 
(A) for transmission and distribution services, and 
(B) for each type of generating unit: and 
(4) costs of purchased power, including representative daily 
and seasonal differences in the amount of such costs. 
Such rules shall provide that information required to be gathered 
imder this section shall be presented in such categories and such detail 
as may be necessary to carry out the purposes of this section. 
(b) COMMISSION RULES.—^The Commission shall, within 180 days 
after the date of enactment of this Act, by rule, prescribe the methods, 
procedure, and format to be used by electric utilities in gathering the 
information described in this section. Such rules may provide for the 
exemption by the Commission of an electric utility or class of electric 
utilities from gathering all or part of such information, in cases where 
such utility or utilities show and the Commission finds, after public 
notice and opportunity for the presentation of written data, views, and 
arguments, that gathering such information is not likely to carry out 
Review. 
the purposes of this section. The Commission shall periodically review 
such findings and may revise such rules. 
(c) FILING AND PUBLICATION.—Not later than two years after the 
date of enactment of this Act, and periodically, but not less frequently 
than every two years thereafter, each electric utility shall file with— 
(1) the Commission, and 
(2) any State regulatory authority which has ratemaking 
authority for such utility, 
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3133 
the information gathered pursuant to this section and make such 
information available to the public in such form and manner as the 
Commission shall prescribe. In addition, at the time of application for, 
or pro])osal of, any rate increase, each electric utility shall make such 
information available to the public in such form and manner as the 
Commission shall prescribe. The two-year period after the date of the 
enactment specified in this subsection may be extended by the Com-
mission for a reasonable additional period in the case of any electric 
utility for good cause shown. 
(d) ENFORCEMEXT.—For purposes of enforcement, any violation 
of a requirement of this section shall be treated as a violation of a 
provision of the Energy Supply and P^nvironmental Coordination 
Act of 1974 enforceable under section 12 of such Act (notwithstanding 
15 USC 797. 
any expiration date in such Act) except that in applying the provi-
sions of such section 12 any reference to the Federal Energy Admin-
istrator shall be treated as a reference to the Commission. 
SEC. 134. RELATIONSHIP TO OTHER AUTHORITY. 
16 USC 2644. 
?\othing in this title shall be construed to limit or affect any author-
ity of the Secretary or tlie Commission under any other provision of 
law. 
Subtitle E—State Utility Regulatory Assistance 
SEC. 141. GRANTS TO CARRY OUT TITLES I AND IIL 
Section 207 of title I I of the Energy Conservation and Production 
42 USC 6807. 
Act is amended to read as follows: 
"STATE UTILITY REGULATORY ASSISTANCE 
"SEC. 207. (a) The Secretary may make grants to State utility regu- Grants, 
atory commissions and nonregulated electric utilities (as defined in the 
Public Utility Regulatory Policies Act of 1978) to carry out duties Ante, p. 3117. 
and responsibilities imder titles I and I I I , and section 210, of the Public 
Utility Regulatory Policies Act of 1978. No grant may be made under Ante, p. 3120, 
this section to any Federal agency. 
P°^^' pp-3149, 
" (b) Any requirements established by the Secretary with respect to ^144. 
grants under this section may be only such requirements as are neces-
sary to assure that such grants are expended solely to carry out duties 
and responsibilities referred to in subsection (a) or such as are other-
wise required by law. 
"(c) No gi-ant may be made under this section unless an applica-
tion for such grant is submitted to the Secretary in such form and 
manner as the Secretary may require. The Secretary may not approve 
an application of a State utility regulatory commission or nonregu-
lated electric utility unless such commission or nonregulated electric 
utility assures the Secretary that funds made available under this 
section will be in addition to, and not in substitution for, funds made 
available to such commission or nonregulated electric utility from 
other governmental sources. 
"(d) The funds appropriated for purposes of this section shall be 
apportioned among the States in such manner that grants made under 
this section in each State shall not exceed the lesser of— 
"(1) the amount determined by dividing equally among all 
States the total amount available under this section for such 
grants, or 
"(2) the amount which the Secretary is authorized to provide 
pursuant to subsections (b) and (c) of this section for such State.". 
92 STAT. 3134 
PUBLIC LAW 95-617—NOV. 9, 1978 
SEC. 142. AUTHORIZATIONS. 
Title II of the Energy Conservation and Production Act is amended 
by adding the following at the end thereof: 
"AUTHORIZATIOX OF APPROPRIATIONS 
42 use 6808. 
"SEC. 208. There are authorized to be appropriated— 
"(1) not to exceed $40,000,000 for each of the fiscal years 1979 
and 1980 to carry out section 207 (relating to State utility regula-
tory assistance) ; 
"(2) not to exceed $10,000,000 for each of the fiscal years 1979 
and 1980 to carry out section 205 (relating to State offices of con-
sumer services^ * and 
"(3) not to 'exceed $8,000,000 for the fiscal year 1979, and 
$10,000,000 for the fiscal year 1980 to carry out section 204(1) (B) 
(relating to innovative rate structures).". 
SEC. 143. CONFORMING AMENDMENTS. 
42 use 6801 
(a) ADMINISTRATOR.—Title II of the Energy Conservation and 
et seq. 
Production Act is amended by striking out "Administrator" in each 
place it appears and substituting "Secretary". Section 202(1) of the 
42 use 6802. 
Energy Conservation and Production Act is amended to read as 
follows: 
" ( b ) DEriNITION.— 
"(1) The term 'Secretary' means the Secretary of Energy.". 
TITLE II—CERTAIN FEDERAL ENERGY REGU-
LATORY COMMISSION AND DEPARTMENT OF 
ENERGY AUTHORITIES 
SEC. 201. DEFINITIONS. 
16 use 796. 
Section 3 of the Federal Power Act is amended by inserting the 
following before the period at the end thereof: 
"(17) (A) 'small power production facility' means a facility 
which— 
" (i) produces electric energy solely by the use, as a primary 
energy source of biomass, waste, renewable resources, or any 
combination thereof; and 
" (ii) has a power production capacity which, together Avith 
any other facilities located at the same site (as determined by 
the Commission), is not greater than 80 megawatts; 
"(B) 'primary energy source' means the fuel or fuels used for 
the generation of electric energy, except that such term does not 
include, as determined under rules prescribed by the Commission, 
in consultation with the Secretary of Energj-— 
"(i) the minimum amounts of fuel required for ignition, 
startup, testing, flame stabilization, and control uses, and 
"(ii) the minimum amounts of fuel required to alleviate or 
prevent— 
"(I) unanticipated equipment outages, and 
" (IT) emergencies, directly affecting the public health, 
safety, or welfare, which would result from electric power 
outages; 
"(C) 'qualifying small power production facility' means a small 
power production facility— 
"(i) which the Commission determines, by rule, meets such 
requirements (including requirements respecting fuel use, fuel 
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3135 
efficiency, and reliability) as the Commission may, by rule, 
prescribe; and 
"(ii) which is owned by a person not primarily engaged in 
the generation or sale of electric power (other than electric 
power solely from cogeneration facilities or small power 
production facilities); 
"(D) 'qualifying small power producer' means the owner or 
operator of a qualifying small power production facility; 
"(18) (A) 'cogeneration facility' means a facility which pro-
duces— 
" (i) electric energy, and 
" (ii) steam or forms of useful energy (such as heat) which 
are used for industrial, commercial, heating, or cooling 
purposes; 
"(B) 'qualifying cogeneration facility' means a cogeneration 
facility which— 
"(i) the Commission determines, by rule, meets such 
requirements (including requirements respecting minimum 
size, fuel use, and fuel efficiency) as the Commission may, by 
rule, prescribe; and 
"(ii) is owned by a person not primarily engaged in the 
generation or sale of electric power (other than electric 
power solely from cogeneration facilities or small power pro-
duction facilities); 
"(C) 'qualifying cogenerator' means the owner or operator of 
a qualifying cogeneration facility; 
"(19) 'Federal power marketing agency' means any agency or 
instrumentality of the United States (other than the Tennessee 
Valley Authority) which sells electric energy; 
" (20) 'evidentiary hearings' and 'evidentiary proceeding' mean 
a proceeding conducted as provided in sections 554, 556, and 557 
of title 5, United States Code; 
"(21) 'State regulatory authority' has the same meaning as 
the term 'State commission', except that in the case of an electric 
utility with respect to which the Tennessee Valley Authority has 
ratemaking authority (as defined in section 3 of the Public Utility 
Regulatory Policies Act of 1978), such term means the Tennessee 
Valley Authority; 
"(22) 'electric utility' means any person or State agency which 
sells electric energy; such term includes the Tennessee Valley 
Authority, but does not include any Federal power marketing 
agency". 
SEC. 202. INTERCONNECTION. 
Part II of the Federal Power Act is amended by adding the fol-
lowing new section at the end thereof: 
(( 
CBRTAIX INTERCONNECTION 
AUTHORITY 
"SEC. 210. (a)(1) Upon application of any electric utility. Federal 16 USC 824i. 
power marketing agency, qualifying cogenerator, or qualifying small 
power producer, the Commission may issue an order requiring— 
"(A) the physical connection of any cogeneration facility, any 
small power production facility, or the transmission facilities of 
any electric utility, with the facilities of such applicant, 
"(B) such action as may be necessary to make effective any 
physical connection described in subparagraph (A), which physi-
cal connection is ineffective for any reason, such as inadequate 
size, poor maintenance, or physical unreliability. 
92 STAT. 3136 
PUBLIC LAW 95-617--NOV. 9, 1978 
"(C) such sale or exchange of electric energy or other coordina-
tion, as may be necessary to carry out the purposes of any order 
under subparagraph (A) or (B),or 
"(D) such increase in transmission capacity as may be neces-
sary to carry out the purposes of any order under subparagraph 
"(2) Any State regulatory authority may apply to the Commission 
for an order for any action referred to in subparagraph (A), (B), (C), 
or (D) of paragraph (1), No such order may be issued by the Com-
mission with respect to a Federal power marketing agency upon 
application of a State regulatory authority. 
"(b) Upon receipt of an application under subsection (a), the 
Commission shall— 
"(1) issue notice to each affected State regulatory authority, 
each affected electric utility, each affected Federal power mar-
keting agency, each affex^ted owner or operator of a cogeneration 
facility or of a small power production facility, and to the public. 
"(2) afford an opportunity for an evidentiary hearing, and 
"(8) make a determination with respect to the matters referred 
to in subsection (c). 
" (c) No order jnay be issued by the Commission under subsection (a) 
unless the Commission determines that such order— 
" (1) is in the public interest, 
"(2) would— 
" (A) encourage overall conservation of energy or capital, 
"(B) optimize the efficiency of use of facilities and 
resources, or 
"(C) improve the reliability of any electric utility system 
or Federal power marketing agency to which the order 
applies, and 
Post, p. 3138. 
" (3) meets the requirements of section 212. 
"(d) The Commission may, on its own motion, after compliance 
with the requirements of paragraphs (1) and (2) of subsection (b), 
issue an order requiring any action described in subsection (a) (1) if 
the Commission determines that such order meets the requirements of 
subsection (c). No such order may be issued upon the Commission's 
own motion with respect to a Federal power marketing agency. 
Definitions. 
"(6)(1) As used in this section, the term 'facilities' means only 
facilities used for the generation or transmission of electric energy. 
" (2) With respect to an order issued pursuant to an application of a 
qualifying cogenerator or qualifying small power producer under sub-
section (a)(1), the term 'facilities of such applicant' means the 
qualifying cogeneration facilities or qualifying small power produc-
tion facilities of the applicant, as specified in the application. With 
respect to an order issued pursuant to an application under subsection 
(a) (2), the term 'facilities of such applicant' means the qualifying 
cogeneration facilities, qualifying small power production facilities, or 
the transmission facilities of an electric utility, as specified in the 
/. 
application. With respect to an order issued by the Commission on its 
own motion under subsection (d), such term means the qualifying 
cogeneration facilities, qualifying small power production facilities, or 
the transmission facilities of an electric utility, as specified in the 
proposed order.". 
SEC. 203. WHEELING. 
Part II of the Federal Power Act, as amended by section 202 of this 
Act, is further amended by adding the following new section at the end 
thereof: 
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3137 
"CERTAIN WHEELING AUTHORITY 
"SEC. 211. (a) Any electric utility or Federal power marketing 16 USC 824j. 
agency may apply to the Commission for an order under this subsection 
requiring any other electric utility to provide transmission services to 
the applicant (including any enlargement of transmission capacity 
necessary to provide such services). Upon receipt of such application, 
after public notice and notice to each affected State regulatory 
authority, each affected electric utility, and each affected Federal 
power marketing agency, and after affording an opportunity for an 
evidentiary hearing, the Commission may issue such order if it finds 
that such order— 
" (1) is in the public interest, 
"(2) would— 
" (A^ conserve a significant amount of energy, 
"(B) significantly promote the efficient use of facilities and 
resources, or 
"(C) improve the reliability of any electric utility system 
to which the order applies, and 
" (3) meets the requirements of section 212. 
Pbst, p. 3138. 
"(b) Any electric utility, or Federal power marketing agency, 
which purchases electric energy for resale from any other electric 
utility may apply to the Commission for an order under this subsec-
tion requiring such other electric utility to provide transmission serv-
ices to the applicant (including any increase in transmission capacity 
necessary to provide such services). Upon receipt of an application 
under this subsection, after public notice and notice to each affected 
State regulatory authority, each affected electric utility, and each 
affected Federal power marketing agency, and after affording an 
opportunity for an evidentiary hearing, the Commission may issue 
such an order if the Commission determines that— 
"(1) such other electric utility has given actual or constructive 
notice that it is unwilling or unable to provide electric service 
to the applicant and has been requested by the applicant to pro-
vide the transmission services requested in the application under 
this subsection, and 
"(2) such order meets the requirements of section 212. 
"(c)(1) No order may be issued under subsection (a) unless the 
Commission determines that such order would reasonably preserve 
existing competitive relationships. 
"(2) No order may be issued under subsection (a) or (b) which 
requires the electric utility subject to the order to transmit, during any 
period, an amount of electric energy which replaces any amount of 
electric energy— 
"(A) required to be provided to such applicant pursuant to a 
contract during such period, or 
"(B) currently provided to the applicant by the utility subject 
to the order pursuant to a rate schedule on file during such period 
with the Commission. 
"(3) No order may be issued under the authority of subsection (a) 
or (b) which is inconsistent with any State law which governs the 
retail marketing areas of electric utilities. 
"(4) No order may be issued under subsection (a) or (b) which 
provides for the transmission of electric energy directly to an ultimate 
consumer. 
"(d)(1) Any electric utility ordered under subsection (a) or (b) 
to provide transmission services may apply to the Commission for an 
92 STAT. 3138 
PUBLIC LAW 95-617—NOV. 9, 1978 
order permitting such electric utility to cease providing all, or any 
portion of, such services. After public notice, notice to each affected 
State regulatory authority, each affected Federal power marketing 
agency, and each affected electric utility, and after an opportunity 
for an evidentiary hearing, the Commission shall issue an order ter-
minating or modifying the order issued under subsection (a) or (b), 
if the electric utility providing such transmission services has demon-
strated, and the Commission has found, that— 
"(A) due to changed circumstances, the requirements appli-
Infra. 
cable, under this section and section 212, to the issuance of an order 
under subsection (a) or (b) are no longer met, or 
"(B) any transmission capacity of the utility providing trans-
mission services under such order which was, at the time such order 
was issued, in excess of the capacity necessary to serve its own 
customers is no longer in excess of the capacity necessary for such 
purposes. 
No order shall be issued under this subsection pursuant to a 
finding 
under subparagraph (A) unless the Commission finds that such order 
is in the public interest. 
"(2) 
Any order issued under this subsection terminating or 
modifying an order issued under subsection (a) or (b) shall— 
"(A) provide for any appropriate compensation, and 
"(B) provide the affected electric utilities adequate opportunity 
and time to— 
"(i) make suitable alternative arrangements for any trans-
mission services terminated or modified, and 
" (ii) insure that the interests of ratepayers of such utilities 
are adequately protected. 
"(3) No order may be issued under this subsection terminating or 
modifying any order issued under subsection (a) or (b) if the order 
under subsection (a) or (b) includes terms and conditions agreed upon 
by the parties which— 
"(A) fix a iDeriod during which transmission services are to be 
provided under the order under subsection (a) or (b), or 
"(B) otherwise provide procedures or methods for terminating 
or modifying such order (including, if appropriate, the return of 
the transmission capacity when necessary to take into account an 
increase, after the issuance of such order, in the needs of the 
electric utility subject to such order for transmission (;apacity). 
" (e) As used in this section, the term 'facilities' means only facilities 
used for the generation or transmission of electric energy.". 
SEC. 204. GENERAL PROVISIONS REGARDING CERTAIN INTERCONNEC-
TION AND WHEELING AUTHORITY. 
(a) 
EESTKIGTTGXS AND OTHER PROVISTONS.—Part II of the Federal 
16 use 824. 
Power Act, as amended by sections 202 and 203 of this Act, is further 
amended by adding the following new section at the end thereof: 
"PROVISIONS REGARDING CERTAIN ORDERS REQUIRING INTERCONNECTION 
OR WHEELING 
16 use 824k. 
"SEC. 212. (a) No order may be issued by the Commission under 
Ante, pp. 3135, 
section 210 or subsection (a) or (b) of section 211 unless the Commis-
3137. 
sion determines that such order— 
"(1) is not likely to result in a reasonably ascertainable uncom-
pensated economic loss for any electric utility, qualifying cogen-
erator, or qualifying small power producer, as the case may be, 
affected by the order; 
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3139 
"(2) will not place an undue burden on an electric utility, quali-
fying cogenerator, or qualifying small power producer, as the case 
may be, affected by the order; 
"(3) will not unreasonably impair the reliability of any electric 
utility affected by the order; and 
"(4) will not impair the ability of any electric utility affected 
by the order to, render adequate service to its customers. 
The determination under paragraph (1) shall be based upon a show-
ing of the parties. The Commission shall have no authority under 
section 210 or 211 to compel the enlargement of generating facilities. Ante, pp. 3135, 
" (b) No order may be issued under section 210 or subsection (a) or 3137. 
(b) of section 211 unless the applicant for such order demonstrates 
that he is ready, willing, and able to reimburse the party subject to 
such order for— 
"(1) in the case of an order under section 210, such party's 
share of the reasonably anticipated costs incurred under such 
order, and 
" (2) in the case of an order under subsection (a) or (b) of sec-
tion 211— 
"(A) the reasonaj^le costs of transmission services, includ-
ing the costs of any enlargement of transmission facilities, 
and 
"(B) a reasonable rate of return on such costs, as appro-
priate, as determined by the Commission. 
"(c) (1) Before issuing an order under section 210 or subsection (a) 
or (b) of section 211, the Commission shall issue a proposed order and 
set a reasonable time for parties to the proposed interconnection or 
transmission order to agree to terms and conditions under which such 
order is to be carried out, including the apportionment of costs 
between them and the compensation or reimbursement reasonably 
due to any of them. Such proposed order shall not be reviewable or 
enforceable in any court. The time set for such parties to agree to such 
terms and conditions may be shortened if the Commission determines 
that delay would jeopardize the attainment of the purposes of any 
proposed order. Any terms and conditions agreed to by the parties 
shall be subject to the approval of the Commission. 
"(2) (A) If the parties agree as provided in paragraph (1) within 
the time set by the Commission and the Commission approves such 
agreement, the terms and conditions shall be included in the final 
order. In the case of an order under section 210, if the parties fail to 
agree within the time set by the Commission or if the Commission 
does not approve any such agreement, the Commission shall prescribe 
such terms and conditions and include such terms and conditions in 
the final order. 
"(B) In the case of any order applied for under section 211, if the 
parties fail to agree within the time set by the Commission, the Com-
mission shall prescribe such terms and conditions in the final order. 
"(d) If the Commission does not issue any order applied for under 
section 210 or 211, the Commission shall, by order, deny such applica-
tion and state the reasons for such denial. 
"(e) No provision of section 210 or 211 shall be treated— 
"(1) as requiring any person to utilize the authority of such 
section 210 or 211 in lieu of any other authority of law, or 
"(2) as limiting, impairing, or otherwise affecting any author-
ity of the Commission under any other provision of law. 
"(f) (1) No order under section 210 or 211 requiring the Tennessee 
Valley Authority (hereinafter in this subsectioii referred to as the 
92 STAT. 3140 
PUBLIC LAW 95-617—NOV. 9, 1978 
'TVA') to take any action shall take effect for 60 days following the 
date of issuance of the order. Within 60 days following the issuance by 
the Commission of any order under section 210 or of section 211 
requiring the TVA to enter into any contract for the sale or delivery 
of power, the Commission may on its own motion initiate, or upon 
petition of any aggrieved person shall initiate, an evidentiary hearing 
to determine whether or not such sale or delivery would result in viola-
tion of the third sentence of section 15d(a) of the Tennessee Valley 
Authority Act of 1933 (16 U.S.C. 831n-4), hereinafter in this sub-
section referred to as the TVA Act. 
"(2) Upon initiation of any evidentiary hearing under paragraph 
(1), the Commission shall give notice thereof to any applicant who 
applied for and obtained the order from the Commission, to any elec-
tric utility or other entity subject to such order, and to the public, and 
shall promptly make the determination referred to in paragraph (1). 
Upon initiation of such hearing, the Commission shall stay the effec-
Ante, pp. 2135, 
tiveness of the order under section 210 or 211 until whichever of the 
2137. 
following dates is applicable— 
"(A) the date on which there is a final determination (including 
any judicial review thereof under paragraph (3)) that no such 
violation would result from such order, or 
"(B) the date on which a specific authorization of the Congress 
(within the meaning of the third sentence of section 15d(a) of the 
TVA Act) takes effect. 
"(3) Any determination under paragraph (1) shall be reviewable 
only in the appropriate court of the United States upon petition filed 
by any aggrieved person or municipality within 60 days after such 
determination, and such court shall have jurisdiction to grant appro-
priate relief. Any applicant who applied for and obtained the order 
under section 210 or 211, and any electric utility or other entity subject 
to such order shall have the right to intervene in any such proceeding 
in such court. Except for review by such court (and any appeal or 
other review bv an appellate court of the United States), no court shall 
have jurisdiction to consider any action brought by any person to 
enjoin the carrying out of any order of the Commission under section 
210 or section 211 requiring the TVA to take any action on the grounds 
that such action requires a specific authorization of the Congress pur-
suant to the third sentence of section 15d(a) of the TVA Act.", 
(b) APPLICATION OF FEDKRAL POWER ACT.— (1) Section 201(b) of 
16 use 824. 
such Act is amended by inserting "(1)" after "(b)", by inserting 
"except as provided in paragraph (2)" after "but" in the first sentence 
thereof, and by adding the following at the end thereof: 
Ante, p. 3138. 
" (2) The provisions of sections 210, 211, and 212 shall apply to the 
entities described in such provisions, and such entities shall be subject 
to the jurisdiction of the Commission for purposes of carrying out such 
provisions and for purposes of applying the enforcement authorities of 
this Act with respect to such provisions. Compliance with any order of 
the Commission under the provisions of section 210 or 211, shall not 
make an electric utility or other entity subject to the jurisdiction of the 
Commission for any purposes other than the purposes specified in the 
preceding sentence.". 
(2) Section 201 (e) of such Act is amended by inserting " (other than 
facilities subject to such jurisdiction solely by reason of section 210,211, 
or 212)" after "under this part". 
16 use 824a-l. 
SEC. 205. POOLING. 
(a) STATE LAWS.—The Commission may, on its own motion, and 
shall, on application of any person or governmental entity, after 
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3141 
public notice and notice to the Governor of the affected State and after 
affording an opportunity for public hearing, exempt electric utilities, 
in whole or in part, from any provision of State law, or from any State 
rule or regulation, which prohibits or prevents the voluntary coordina-
tion of electric utilities, including any agreement for central dispatch, 
if the Commission determines that such voluntary coordination is 
designed to obtain economical utilization of facilities and resources in 
any area. No such exemption may be granted if the Commission finds 
that such provision of State law, or rule or regulation— 
(1) is required by any authority of Federal law, or 
(2) is designed to protect public health, safety, or welfare, or 
the environment or conserve energy or is designed to mitigate the 
effects of emergencies resulting from fuel shortages. 
(b) POOLING STUDY.— (1) The Commission, in consultation with 
the reliability councils established under section 202(a) of the Federal 
Power Act, the Secretary, and the electric utility industry shall study 16 USC 824a. 
the opportunities for— 
(A) conservation of energy, 
(B) optimization in the efficiency of use of facilities and 
resources, and 
(C) increased reliability, 
through pooling arrangements. Not later than 18 months after the 
date of the enactment of this Act, the Commission shall suhimit a 
report containing the results of such study to the President and the 
Congress. 
(2) The Commission may recommend to electric utilities that such 
utilities should voluntarily enter into negotiations where the oppor-
tunities referred to in paragraph (1) exist. The Commission shall Report to 
report annually to the President and the Congress regarding any such President and 
recommendations and subsequent actions taken by electric utilities, by Congress, 
the Commission, and by the Secretary under this Act, the Federal 
Power Act, and any other provision of law. Such annual reports shall 
be included in the Commission's annual report required under the 
Department of Energy Organization Act. 
42 USC 7101 
SEC. 206. CONTINUANCE OF SERVICE. 
°°*®-
(a) AMENDMENT OF FEDERAL POWER ACT.—Section 202 of the Fed- 16 USC 824a. 
eral Power Act is amended by adding the following new subsection at 
the end thereof: 
" (g) In order to insure continuity of service to customers of public 
utilities, the Commission shall require, by rule, each public utility to— 
"(1) report promptly to the Commission and any appropriate 
State regulatory authorities any anticipated shortage of electric 
energy or capacity which would affect such utility's capability 
of serving its wholesale customers, 
"(2) submit to the Commission, and to any appropriate State 
regulatory authority, and periodically revise, contingency plans 
respecting— 
"(A) shortages of electric energy or capacity, and 
"(B) circumstances which may result in such shortages, 
and 
"(3) accommodate any such shortages or circumstances in a 
manner which shall— 
" (A) give due consideration to the public health, safety, 
and welfare, and 
"(B) provide that all persons served directly or indirectly 
by such public utility will be treated, without undue prej-
udice or disadvantage.". 
92 STAT. 3142 
PUBLIC LAW 95-617—NOV. 9, 1978 
16 use 824a 
(b) EFFECTI^^ DATE.—The amendment made by subsection (a) shall 
note. 
not affect any proceeding of the Commission pending on the date of the 
enactment of this Act or any case pending on such date respecting a 
I)roceeding of the Commission. 
SEC. 207. CONSIDERATION OF PROPOSED RATE INCREASES. 
16USC824d. 
(a) NOTICE PERIOD.—Section 205(d) of the Federal Power Act is 
amended bv striking out "thirty" each place it appears and substituting 
"sixty". 
16 use 824d 
(b) STUDY.—^The chairman of the Federal Energy Regulatory Com-
note. 
mission, in consultation with the Secretary, is directed to conduct a 
study of the legal requirements and administrative procedures involved 
in the consideration and resolution of proposed wholesale electric rate 
increases under the Federal Power Act for the purposes of (1) pro-
viding for expeditious handling of hearings consistent with due 
process, (2) preventing the imposition of successive rate increases 
before they have been determined by the Commission to be just and 
reasonable and otherwise lawful, and (3) improving procedures 
designed to prohibit anticompetitive or unreasonable differences in 
Report to 
wholesale and retail rates, or both. The chairman shall report to 
Congress. 
Congress within nine months from the date of enactment of this Act 
on the results of the study required under this section, on the adminis-
trative actions taken as a result of this study, and on any recom-
mendations for changes in existing law that will aid the purposes of 
this section. 
SEC. 208. AUTOMATIC ADJUSTMENT CLAUSES. 
Section 205 of the Federal Power Act is amended by adding the 
following new subsection at the end thereof: 
"(f) (1) Not later than 2 years after the date of the enactment of 
this subsection and not less often than every 4 years thereafter, the 
Commission shall make a thorough review of automatic adjustment 
clauses in public utility rate schedules to examine— 
"(A) whether or not each such clause effectively provides 
incentives for efficient use of resources (including economical pur-
chase and use of fuel and electric energy), and 
" (B) whether any such clause reflects any costs other than costs 
which are— 
" (i) subject to periodic fluctuations and 
"(ii) not susceptible to precise determinations in rate cases 
prior to the time such costs are incurred. 
Such review may take place in individual rate proceedings or in generic 
or other separate proceedings applicable to one or more utilities. 
" (2) Not less frequently than every 2 years, in rate proceedings or 
in generic or other separate proceedings, the Commission shall review, 
with respect to each public utility, practices under any automatic 
adjustment clauses of such utility to insure efficient use of resources 
(including economical purchase and use of fuel and electric energy) 
under such clauses. 
"(3) The Commission may, on its own motion or upon complaint, 
after an opportunity for an evidentiary hearing, order a public utility 
to— 
"(A) modify the terms and provisions of any automatic adjust-
ment clause, or 
"(B) cease any practice in connection with the clause, 
if such clause or practice does not result in the economical purchase 
and use of fuel, electric energy, or other items, the cost of which is 
included in any rate schedule under an automatic adjustment clause. 
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3143 
"(4) As used in this subsection, the term 'automatic adjustment 
clause' means a provision of a rate schedule which provides for 
increases or decreases (or both), without prior hearing, in rates 
reflecting increases or decreases (or both) in costs incurred by an 
electric utility. Such term does not include any rate which takes effect 
subject to refund and subject to a later determination of the appro-
priate amount of such rate.". 
SEC. 209. RELIABILITY. 
(a) STXTDY.— (1) The Secretary, in consultation with the Com-
mission, shall conduct a study with respect to— 
(A) the level of reliability appropriate to adequately serve the 
needs of electric consumers, taking into account cost effectiveness 
and the need for energy conservation, 
(B) the various methods which could be used in order to achieve 
such level of reliability and the cost effectiveness of such methods, 
and 
(C) the various procedures that might be used in case of an 
emergency outage to minimize the public disruption and economic 
loss that might be caused by such an outage and the cost effec-
tiveness of such procedures. 
Such study shall be completed and submitted to the President and the 
Congress not later than 18 months after the date of the enactment of 
this Act. Before such submittal the Secretary shall provide an oppor-
tunity for public comment on the results of such study. 
(2) The study under paragraph (1) shall include consideration of 
the following: 
(A) the cost effectiveness of investments in each of the com-
ponents involved in providing adequate and reliable electric 
service, including generation, transmission, and distribution 
facilities, and devices available to the electric consumer; 
(B) the environmental and other effects of the investments con-
sidered under subparagraph (A); 
(C) various types of electric utility sj'^stems in terms of gen-
eration, transmission, distribution and customer mix. the extent 
to Avhich differences in reliability levels may be desirable, and the 
cost-eff'ectiveness of the various methods which could be used to 
decrease the number and severity of any outages among the 
various tvpes of systems; 
(D) alternatives to adding new generation facilities to achieve 
such desired levels of reliabilitv (including conservation) ; 
(E) the cost-effectiveness of adding a number of small, decen-
tralized conventional and n on 
conventional generating units 
rather than a small number of large ffeneratins: units with a sim-
ilar total megawatt capacity for achieving the desired level of 
reliability; and 
(F) any standards for electric utility reliability used by, or 
suggested for use by, the electric utility industry in terms of 
cost-effectiveness in achieving the desired level of reliability, 
including equipment standards, standards for operating pro-
cedures and training of personnel, and standards relating the 
number and severity of outages to periods of time. 
( b ) 
EXAMTNAITON OF RELIABILITY IsSUES BY RELIABILITY CoTTN-
ciLS.—The Secretary, in consultation with the Commission, may, from 
time to time, request the reliability councils established under section 
202(a) of the Federal Power Act or other appropriate persons 
(including Federal agencies) to examine and report to him concerning 
"Automatic 
adjustment 
clause." 
16 u s e 824a-2. 
Report to 
President and 
Congress. 
16 u s e 824a. 
92 STAT. 3144 
PUBLIC LAW 95-617—NOV. 9, 1978 
Report to 
any electric utility reliability issue. The Secretary shall report to the 
Congress. 
Congress (in its annual report or in the report required under subsec-
tion (a) if appropriate) the results of any examination under the 
preceding sentence. 
(c) DEPARTMENT OF ENERGY RECOMMENDATIONS.—The Secretary, 
in consultation with the Commission, and after opportunity for public 
comment, may recommend industry standards for reliability to the 
electric utility industry, including standards with respect to equip-
ment, operating procedures and training of personnel, and standards 
relating to the level or levels of reliability appropriate to adequately 
and reliably serve the needs of electric consumers. The Secretary shall 
include in his annual report— 
(1) any recommendations made under this subsection or any 
recommendations respecting electric utility reliability problems 
under any other provision of law, and 
(2) a description of actions taken by electric utilities with 
respect to such recommendations. 
16 use 824a-3. 
SEC. 210. COGENERATION AND SMALL POWER PRODUCTION. 
(a) COGENERATION AND SMALL POWER PRODUCTION RULES.—Not 
later than 1 year after the date of enactment of this Act, the Commis-
sion shall prescribe, and from time to time thereafter revise, such rules 
as it determines necessary to encourage cogeneration and small power 
production which rules require electric utilities to offer to— 
(1) sell electric energy to qualifying cogeneration facilities 
and qualifying small power production facilities and 
(2) purchase electric energy from such facilities. 
Such rules shall be prescribed, after consultation with representatives 
of Federal and State regulatory agencies having ratemaking author-
ity for electric utilities, and after public notice and a reasonable 
opportunity for interested persons (including State and Federal 
agencies) to submit oral as well as written data, views, and arguments. 
Such rules shall include provisions respecting minimum reliability of 
qualifying cogeneration facilities and qualifying small power pro-
duction facilities 
(including reliability of such facilities during 
emergencies) and rules respecting reliability of electric e n e r ^ service 
to be available to such facilities from electric utilities during emer-
gencies. Such rules may not authorize a qualifying cogeneration 
facility or qualifying small power production facility to make a>nj 
sale for purposes other than resale. 
(b) 
RATES FOR PURCHASES BY ELECTRIC UTILITIES.—The 
rules 
prescribed under subsection (a) shall insure that, in requiring any 
electric utility to offer to purchase electric energy from any qualifying 
cogeneration facility or qualifying small power production facility, the 
rates for such purchase— 
(1) shall be just and reasonable to the electric consumers of the 
electric utility and in the public interest, and 
(2) shall not discriminate against qualifying cogenerators or 
qualifying small power producers. 
No such rule prescribed under subse-ction (a) shall provide for a rate 
which exceeds the incremental cost to the electric utility of alternative 
electric energy, 
(c) RATES FOR SALES BY UTILITIES.—The rules prescribed under 
subsection (a) shall insure that, in requiring any electric utility to 
offer to sell electric energy to any qualifying cogeneration facility or 
- 
qualifying small power production facility, the rates for such sale— 
(1) shall be just and reasonable and in the public interest, and 
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3145 
(2) shall not discriminate against the qualifying cogenerators 
or qualifying small power producers. 
(d) DEFINITION.—For purposes of this section, the terra "incre-
mental cost of alternative electric energy" means, with respect to 
electric energy purchased from a qualifying cogenerator or qualifying 
small power producer, the cost to the electric utility of the electric 
energy which, but for the purchase from such cogenerator or small 
power producer, such utility would generate or purchase from another 
source. 
(e) EXEMPTIONS.—(1) Not later than 1 year after the date of enact- Rules, 
ment of this Act and from time to time thereafter, the Commission 
shall, after consultation with representatives of State regulatory 
authorities, electric utilities, owners of cogeneration facilities and 
owners of small power production facilities, and after public notice 
and a reasonable opportunity for interested persons (including State 
and Federal agencies) to submit oral as well as written data, views, and 
arguments, prescribe rules under which qualifying cogeneration facili-
ties and qualifying small power production facilities are exempted 
in whole or part from the Federal Power Act, from the Public Utility 16 USC 791a. 
Holding Company Act, from State laws and regulations respecting the 15 USC 79. 
rates, or respecting the financial or organizational regulation, of elec-
tric utilities, or from any combination of the foregoing, if the 
Commission determines such exemption is necessary to encourage 
cogeneration and small power production. 
(2) No qualifying small power production facility which has a power 
production capacity which, together with any other facilities located at 
the same site (as determined by the Commission), exceeds 30 mega-
watts may be exempted under rules under paragraph (1) from any 
provision of law or regulation referred to in paragraph (1), except 
that any qualifying small power production facility which produces 
electric energy solely by the use of biomass as a primary energy source, 
may be exempted by the Commission under such rules from the Public 
Utility Holding Company Act and from State laws and regulations 
referred to in such paragraph (1). 
(3) No qualifying small power production facility or qualifying 
cogeneration facility may be exempted under this subsection from— 
(A) any State law or regulation in effect in a State pursuant to 
subsection (f), 
(B) the provisions of section 210, 211, or 212 of the Federal Ante, pp. 3135, 
Power Act or the necessary authorities for enforcement of any 3137, 3138. 
such provision under the Federal Power Act, or 
(C) any license or permit requirement under part I of the 
Federal Power Act, any provision under such Act related to such 
a license or permit requirement, or the necessary authorities for 
enforcement of any such requirement. 
(f) IMPLEMENTATION OF RULES FOR QUALIFYING COGENERATION AND 
QUALIFYING SMALL POWER PRODUCTION FACILITIES.— (1) Beginning Notice and 
on or before the date one year after any rule is prescribed by the hearing. 
Commission under subsection (a) or revised under such subsection, 
each State regulatory authority shall, after notice and opportunity 
for public hearing, implement such rule (or revised rule) for each 
electric utility for which it has ratemaking authority. 
(2) Beginning on or before the date one year after any rule is pre- Notice and 
scribed by the Commission under subsection (a) or revised under such hearing, 
subsection, each nonregulated electric utility shall, after notice and 
opportunity for public hearing, implement such rule (or revised rule). 
(g) JUDICIAL REVIEW A
N
D ENFORCEMENT.—(1) Judicial review may 
39-194 O—80—pt, 3 
33 : QL3 
92 STAT. 3146 
PUBLIC LAW 95-617—NOV. 9, 1978 
be obtained respecting any proceeding conducted by a State regulatory 
authority or nonregulated electric utility for purposes of implement-
ing any requirement of a rule under subsection (a) m the same manner, 
and under the same requirements, as judicial review may be obtained 
under section 123 in the case of a proceeding to which section 123 
applies. 
(2) Any person (including the Secretary) may bring an action 
against any electric utility, qualifying small power producer, or quali-
fying cogenerator to enforce any requirement established by a State 
regulatory authority or nonregulated electric utility pursuant to sub-
section (f). Any such action shall be brought only in the manner, and 
under the requirements, as provided under section 123 with respect 
to an action to which section 123 applies. 
(h) COMMISSION ENFORCEMENT.—(1) For purposes of enforcement 
of any rule prescribed by the Commission under subsection (a) with 
respect to any operations of an electric utility, a qualifying cogenera-
tion facility or a qualifying small power production facility which 
are subject to the jurisdiction of the Commission under part IT of the 
16 use 824. 
Federal Power Act, such rule shall be treated as a rule under the 
Federal Power Act. Nothing in subsection (g) shall apply to so much 
of the operations of an electric utility, a qualifying cogeneration facil-
ity or a qualifying small power production facility as are subject to 
the jurisdiction of the Commission under part I I of the Federal Power 
Act! 
(2) (A) The Commission may enforce the requirements of subsec-
tion (f) against any State regulatory authority or nonregulated elec-
tric utility. For purposes of any such enforcement, the requirements 
of subsection (f) (1) shall be treated as a rule enforceable under the 
16 use 791a. 
Federal Power Act, For purposes of any such action, a State regula-
tory authority or nonregulated electric utility shall be treated as a 
person within the meaning of the Federal Power Act. No enforcement 
action may be brought by the Commission under this section other 
than— 
(i) an action against the State regulatory authority or nonregu-
lated electric utility for failure to comply with the requirements 
of subsection (f) or 
(ii) an action under paragraph (1). 
(B) Any electric utility, qualifying cogenerator, or qualifying small 
. .; 
power producer may petition the Commission to enforce the require-
ments of subsection (f) as provided in subparagraph (A) of this 
paragraph. If the Commission does not initiate an enforcement action 
under subparagraph (A) against a State regulatory authority or non-
regulated electric utility within 60 days following the date on which 
a petition is filed under this subparagraph with respect to such author-
ity, the petitioner may bring an action in the appropriate United 
States district court to require such State regulatory authority or non-
regulated electric utility to comply with such requirements, and such 
court may issue such injunctive or other relief as may be appropriate. 
The Commission may intervene as a matter of right in any such action. 
(i) FEDERAL CONTRACTS.—No contract between a Federal agency and 
any electric utility for the sale of electric energy by such Federal 
agency for resale which is entered into after the date of the enactment 
f
,
.
. 
of this Act may contain any provision which will have the effect of 
preventing the implementation of any rule under this section with 
respect to such utility. Any provision in any such contract which has 
such effect shall be null and void. 
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3147 
(j) DEFINITIONS.—For purposes of this section, the terms "small 
power production facility", "qualifying small j)ower production facil-
ity", "qualifying small power producer", "primary energy source", 
"cogeneration facility", "qualifying cogeneration facility", and "quali-
fying cogenerator" have the respective meanings provided for such 
terms under section 3 (17) and (18) of the Federal Power Act. 
Ante, p. 3134. 
SEC. 211. INTERLOCKING DIRECTORATES. 
(a) AMENDMENT OF FEDERAL POWER ACT.—Section 305 of the Fed- 16 USC 825d. 
eral Power Act is amended by adding the following new subsection at 
the end thereof: 
" (c) (1) On or before April 30 of each year, any person, who, during 
the calendar year preceding the filing date under this subsection, was 
an officer or director of a public utility and who held, during such 
calendar year, the position of officer, director, partner, appointee, or 
representative of any other entity listed in paragraph (2) shall file 
with the Commission, in such form and manner as the Commission 
shall by rule prescribe, a written statement concerning such positions 
held by such person. Such statement shall be available to the public. 
"(2) The entities listed for purposes of paragraph (1) are as 
follows— 
"(A) any investment bank, bank holding company, foreign 
bank or subsidiary thereof doing business in the United States, 
insurance company, or any other organization primarily engaged 
in the business of providing financial services or credit, a mutual 
savings bank, or a savings and loan association; 
"(B) any company, firm, or organization which is authorized 
by law to underwrite or participate in the marketing of securities 
of a public utility; 
"(C) any company, firm, or organization which produces or 
supplies electrical equipment or coal, natural gas, oil, nuclear 
fuel, or other fuel, for the use of any public utility; 
"(D) any company, firm, or organization which during any one 
of the 3 calendar years immediately preceding the filing date was 
one of the 20 purchasers of electric energy which purchased (for 
purposes other than for resale) one of the 20 largest annual 
amounts of electric energy sold by such public utility (or by any 
public utility which is part of the same holding company system) 
during any one of such three calendar years; 
" (E) any entity referred to in subsection (b); and 
"(F) any company, firm, or organization which is controlled by 
any company, firm, or organization referred to in this paragraph. 
On or before January 31 of each calendar year, each public utility 
shall publish a list, pursuant to rules prescribed by the Commission, 
of the purchasers to which subparagraph (D) applies, for purposes 
of any filing under paragraph (1) of such calendar year. 
" (3) For purposes of this subsection— 
Definitions. 
"(A) The term 'public utility' includes any company which is a 
E
art of a holding company system which includes a registered 
oldin^ company, unless no company in such system is an elec-
tric utility. 
"(B) The terms 'holding company', 'registered holding com-
pany', and 'holding company system' have the same meaning as 
when used in the Public Utility Holding Company Act of 1935.". 
(b) EFFECTIVE DATE.—No person shall be required to file a state- 
16 USC 825d 
ment under section 305 (c) (1) of the Federal Power Act before April note. 
92 STAT. 314« 
PUBLIC LAW 95-617—NOV. 9, 1978 
30 of the second calendar year which begins after the date of the 
enactment of this Act and no public utility shall be required to pub-
lish a list under section 305(c) (2) of such Act before January 31 of 
such second calendar year. 
SEC. 212. PUBLIC PARTICIPATION BEFORE FEDERAL ENERGY REGU-
LATORY COMMISSION. 
The Federal Power Act is amended by redesignating sections 319 
16 use 79Ia 
and 320 as 320 and 321, respectively, and by inserting the following 
note, 825r. 
new section after section 318: 
16USC825q. 
a OFFICE OF PUBLIC PARTICIPATION 
16 use 825q-l. 
"SEC. 319. (a) (1) There shall be an office in the Commission to be 
known as the Office of Public Participation (hereinafter in this sec-
tion referred to as the 'Office'). 
"(2) (A) The Office shall be administered by a Director. The Direc-
tor shall be appointed by the Chairman with the approval of the Com-
mission. The Director may be removed during his term of office by 
the Chairman, with the approval of the Commission, only for ineffi-
ciency, neglect of duty, or malfeasance in office. 
"(B) The term of office of the Director shall be 4 years. The Director 
shall be responsible for the discharge of the functions and duties of 
the Office. He shall be appointed and compensated at a rate not in 
excess of the maximum rate prescribed for GS-18 of the General 
5 use 5332 
Schedule under section 5332 of title 5 of the United States Code, 
"lote. 
"(3) The Director may appoint, and assign the duties of, employees 
of such Office, and with the concurrence of the Commission he may 
fix the compensation of such employees and procure temporary and 
intermittent services to the same extent as is authorized under section 
3109 of title 5, United States Code. 
"(b) (1) The Director shall coordinate assistance to the public with 
respect to authorities exercised by the Commission. The Director shall 
also coordinate assistance available to persons intervening or partici-
pating or proposing to intervene or participate in proceedings before 
the Commission. 
"(2"! The Commission may, under rules promulgated by it. provide 
compensation for reasonable attorney's fees, expert witness fees, and 
other costs of intervening or participating in any proceedinsr before 
the Commission to any person whose intervention or participation 
substantially contributed to the approval, in whole or in part, of f^ 
position advocated by such person. Such compensation may be paid 
only if the Commission has determined that— 
" (A) the proceeding is significant, and 
"(^B) such person's intervention or participation in such pro-
ceeding without receipt of compensation constitutes a significant 
financial hardship to him. 
" (3) Nothing in this subsection affects or restricts any rights of any 
intervenor or participant under any other applicable law or rule of law. 
Appropriation 
"(4) There are authorized to be appropriated to the Secretary of 
authorization. 
Energy to b*^ used bv the Office for purposes of compensation of per-
sons under the provisions of this subsection not to exceed $500,000 for 
the fiscal year 1978, not to exceed $2,000,000 for the fiscal year 1979. 
not to exceed $2,200,000 for the fiscal year 1980, and not to exceed 
? 
• 
$2,400,000 for the fiscal year 1981.". 
SEC. 213. CONDUIT HYDROELECTRIC FACILITIES. 
Part I of the Federal Power Act is amended by adding the follow-
ing new section at the end thereof: 
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3149 
"SEC. 30. (a) Except as provided in subsection (b) or (c), the Com- 16 USC 823a. 
mission may grant an exemption in whole or in part from the require-
ments of this part, including any license requirements contained in 
this part, to any facility (not including any dam or other impound-
ment) constructed, operated, or maintained for the generation of elec-
tric power which the Commission determines, by rule or order— 
" (1) is located on non-Federal lands, and 
"(2) utilizes for such generation only the hydroelectric poten-
tial of a manmade conduit, which is operated for the distribution 
of water for agricultural, municipal, or industrial consumption 
and not primarily for the generation of electricity. 
"(b) The Commission may not grant any exemption under subsec-
tion (a) to any facility the installed capacity of which exceeds 15 
megawatts. 
"(c) In making the determination under subsection (a) the Com-
mission shall consult with the United States Fish and Wildlife Serv-
ice and the State agency exercising administration over the fish and 
wildlife resources of the State in which the facility is or will be located, 
in the manner provided by the Fish and Wildlife Coordination Act (16 
U.S.C. 661, et seq.), and shall include in any such exemption— 
"(1) such terms and conditions as the Fish and Wildlife Serv-
ice and the State agency each determine are appropriate to pre-
vent loss of, or damage to, such resources and to otherwise carry 
C' 
out the purposes of such Act, and 
" (2) such terms and conditions as the Commission deems appro-
priate to insure that such facility continues to comply with the 
provisions of this section and terms and conditions included in 
any such exemption. 
"(d) Any violation of a term or condition of any exemption granted 
under subsection (a) shall be treated as a violation of a rule or order 
of the Commission under this Act.". 
SEC. 214. PRIOR ACTION; EFFECT ON OTHER AUTHORITIES. 
16 USC 824 note. 
(a) PRIOR ACTIONS.—No provision of this title or of any amendment 
made by this title shall apply to, or affect, any action taken by the Com-
mission before the date of the enactment of this Act. 
(b) OTHER AUTHORITIES.—No provision of this title or of any 
amendment made by this title shall limit, impair or otherwise affect any 
authority of the Commission or any other agency or instrumentality of 
the United States under any other provision of law except as specifi- 
-
cally provided in this title. 
TITLE III—RETAIL POLICIES FOR NATURAL 
GAS UTILITIES 
SEC. 301. PURPOSES; COVERAGE. 
15 USC 3201. 
(a) PURPOSES.—The purposes of this title are to encourage— 
(1) conservation of energy supplied by gas utilities; 
(2) the optimization of the efficiency of use of facilities and 
resources by gas utility systems; and 
(3) equitable rates to gas consumers of natural gas. 
(b) VOLUME OF TOTAL EETAIL SALES.—This title applies to each gas 
utility in any calendar year, and to each proceeding relating to each gas 
utility in such year, if the total sales of natural gas by such utility for 
purposes other than resale exceeded 10 billion cubic feet during any 
calendar year beginning after December 31,1975, and before the imme-
diately preceding calendar year. 
92 STAT. 3150 
PUBLIC LAW 95-617—NOV. 9, 1978 
(c) EXCLUSION OF WHOLESALE SALES.—The requirements of this 
title do not apply to the operations of a gas utility, or to proceedings 
respecting such operations, to the extent that such operations or pro-
ceedings relate to sales of natural gas for purposes of resale. 
(d) LIST OF COVERED UTILITIES.—Before the oeginning of each cal-
endar year, the Secretary shall publish a list identifying each gas util-
^ 
ity to which this title applies during such calendar year. Promptly 
after publication of such list, each State regulatory authority shall 
notify the Secretary of each gas utility on the list for which such State 
regulatory authority has ratemaking authority. 
15 use 3202. 
SEC. 302. DEFINITIONS. 
For purposes of this title— 
(1) The term "gas consumer" means any person, State agency, 
or Federal agency, to which natural gas is sold other than for 
purposes of resale. 
(2) The term "gas utility" means anjr person, State agency, or 
Federal agency, engaged in the local distribution of natural gas, 
and the sale of natural gas to any ultimate consumer of natural 
gas. 
(3) The term "State regulated gas utility" means any gas utility 
with respect to which a State regulatory authority has ratemaking 
authority. 
(4) The term "nonregulated gas utility" means any gas utility 
other than a State regulated gas utility. 
(5) The term "rate" means any (A) price, rate, charge, or clas-
sification made, demanded, observed, or received with respect to 
sale of natural gas to a gas consumer, (B) any rule, regulation, or 
practice respecting any such rate, charge, or classification, and 
(C) any contract pertaining to the sale of natural gas to a gas 
consumer. 
(6) The term "ratemaking authority" means authority to fix, 
modify, approve, or disapprove rates. 
(7) The term "sale", when used with respect to natural gas, 
includes an exchange of natural gas. 
(8) The term "State regulatorv authority" means anv State 
agency which has ratemaking authority with respect to the sale 
of natural gas by any gas utility (other than by such State 
agency). 
15 use 3203. 
SEC. 303. ADOPTION OF CERTAIN STANDARDS. 
Notice and 
(a) ADOPTION OF STANDARDS,—Not later than 2 years after the date 
hearing. 
of the enactment of this Act, each State regulatory authority (with 
respect to each gas utility for which it has ratemaking authority) and 
each nonregulated gas utility shall provide public notice and conduct 
a hearing respecting the standards established by subsection (b) and, 
,! 
. 
on the basis of such hearing, shall— 
(1) adopt the standard established by subsection (b) (1) if, 
and to the extent, such authority or nonregulated utility deter-
mines that such adoption is appropriate and is consistent with 
otherwise applicable State law, and 
(2) adopt the standard established by subsection (b) (2) if, 
and to the extent, such authority or nonregulated utility deter-
mines that such adoption is appropriate to carry out the purposes 
of this title, is otherwise appropriate, and is consistent with other-
wise applicable State law. 
For purposes of any determination under paragraphs (1) and (2) and 
any review of such determination in any court under section 307, the 
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3151 
purposes of this title supplement State law. Nothing in this subsection 
prohibits any State regulatory authority or nonregulated utility from 
making any determination that it is not appropriate to implement any 
such standard, pursuant to its authority under otherwise applicable 
State law. 
(b) ESTABLISHMENT.—The following Federal standards are hereby Federal 
established: 
standards. 
(1) PROCEDURES FOR TERMINATION or NATURAL GAS SERVICE.—No 
gas utility may terminate natural gas service to any gas consumer 
except pursuant to procedures described in section 304(a). 
(2) ADVERTISING.—No gas utility may recover from any person 
other than the shareholders (or other owners) of such utility any 
direct or indirect expenditure by such utility for promotional or 
political advertising as defined in section 304(b). 
(c) PROCEDURAL REQUIREMENTS.—Each State regulatory authority 
(with respect to each gas utility for which it has ratemaking authority) 
and each nonregulated gas utility, within the 2-year period specified in 
subsection (a), shall adopt, pursuant to subsection (a), each of the 
standards established by subsection (b) or, with respect to any such 
standard which is not adopted, such authority or nonregulated gas 
utility shall state in writing that it has determined not to adopt such 
standard, together with the reasons for such determination. Such state-
ment of reasons shall be available to the public. 
SEC. 304. SPECIAL RULES FOR STANDARDS. 
15 USC 3204. 
(a) PROCEDURES FOR TERMINATION OF GAS SERVICE.—The procedures 
for termination of service referred to in section 303(b) (1) are proce-
dures prescribed by the State regulatory authority (with respect to gas 
utilities for which it has ratemaking authority) or the nonregulated 
gas utility which provide that— 
(1) no gas service to a gas consumer may be terminated unless 
reasonable prior notice (including notice of rights and remedies) 
is given to such consumer and such consumer has a reasonable 
opportunity to dispute the reasons for such termination, and 
(2) during any period when termination of service to a gas 
consumer would be especially dangerous to health, as determined 
• 
by the State regulatory authority (with respect to each gas utility 
for which it has ratemaking authority) or nonregulated gas 
utility, and such consumer establishes that— 
(A) he is unable to pay for such service in accordance with 
the requirements of the utility's billing, or 
(B) he is able to pay for such service but only in install-
ments, 
such service may not be terminated. 
Such procedures shall take into account the need to include reasonable 
provisions for elderly and handicapped consumers. 
(b) ADVERTISING.—(1) For purposes of this section and section 303— Definitions. 
(A) The term "advertising" means the commercial use, by a gas 
utility, of any media, including newspaper, printed matter, radio, 
and television, in order to transmit a message to a substantial num-
ber of members of the public or to such utility's gas consumers. 
(B) The term "political advertising" means any advertising for 
the purpose of influencing public opinion with respect to legis-
lative, administrative, or electoral matters, or with respect to any 
controversial issue of public importance. 
(C) The term "promotional advertising" means any advertising 
for the purpose of encouraging any jjerson to select or use the serv-
ice or additional service of a gas utility or the selection or installa-
92 STAT. 3152 
PUBLIC LAW 95-617—NOV. 9, 1978 
tion of any appliance or equipment designed to use such utility's 
service. 
(2) For purposes of this section and section 303, the terms "political 
advertising" and "j)romotional advertising" do not include— 
(A) advertising which informs natural gas consumers how they 
can conserve natural gas or can reduce peak demand for natural 
g^S' 
.
.
. 
(B) advertising required by law or regulation, including adver-
tising required under part 1 of title II of the National Energy 
Post, p. 3209. 
Conservation Policy Act, 
(C) advertising regarding service interruptions, safety meas-
ures, or emergency conditions, 
(D) advertising concerning employment opportunities with 
such utility, 
(E) advertising which promotes the use of energy efficient 
appliances, equipment or services, or 
(F) any explanation or justification of existing or proposed 
rate schedules, or notification of hearings thereon. 
15 use 3205. 
SEC. 305. FEDERAL PARTICIPATION. 
(a) INTERVENTION.—In addition to the authorities vested in the 
Secretary pursuant to any other provision of law, the Secretary, on his 
own motion, may intervene as a matter of right in any proceeding 
before a State regulatory authority which relates to gas utility rates 
or rate design. Such intervention shall be solely for the purpose of 
advocating policies or methods which carry out the purposes set forth 
in section 301 of this title. 
(b) RIGHTS.—The Secretary shall have the same rights as any other 
party to a proceeding before a State regulatory authority which relates 
to gas utility rates or rate design. 
(c) NoNREGULATED GAS UTILITIES.—The Secretary, on his own 
motion, may, to the same extent as provided in subsections (a) through 
(b), intervene as a matter of right in any proceeding which relates to 
rates or rate design of nonregulated gas utilities. 
15 use 3206. 
SEC. 306. GAS UTILITY RATE DESIGN PROPOSALS. 
Report to 
(a) STUDY.— (1) the Secretary, in consultation with the Commission 
Congress. 
^nd, after affording an opportunity for consultation and comment by 
representatives of the State regulatory commissions, gas utilities, and 
gas consumers, shall study and report to Congress on gas utility rate 
design within 18 months after the date of the enactment of this Act. 
Such study shall address the effect (both separately and in combina-
tion) of the following factors upon the items listed in paragraph (2) : 
incremental pricing; marginal cost pricing; end user gas consumption 
taxes; wellhead natural gas pricing policies; demand-commodity rate 
design; declining block rates; interruptible service; seasonal rate dif-
ferentials ; and end user rate schedules. 
(2) The items referred to in paragraph (1) are as follows: 
(A) natural gas pipeline and local distribution company load 
factors; 
(B) rates to each class of user, including residential, commercial, 
and industrial users; 
(C) the change in total costs resulting from gas utility designs 
(including capital and operating costs) to gas consumers or 
classes thereof; 
(D) demand for, and consumption of, natural gas; 
(E) end use profiles of natural gas pipelines and local dis-
tribution companies; and 
(F) competition with alternative fuels. 
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3153 
(b) PROPOSALS.—Based upon the study prepared pursuant to sub-
section (a), the Secretary shall develop proposals to improve gas 
utility rate design and to encourage conservation of natural gas. Such 
proposals shall include any comments and recommendations of the 
Commission. 
(c) TRANSMISSION TO CONGRESS.—The proposals prepared under 
subsection (b) shall be transmitted, together with any legislative rec-
ommendations, to each House of Congress not later than 6 months 
after the date of submission of the study under subsection (a). Such 
proposals shall be accompanied by an analyses of— 
(1) the projected savings (if any) in consumption of natural 
gas, and other energy resources, 
(2) changes (if any) in the cost of natural gas to consumers, 
which are likely to result from the implementation nationally of 
each of such proposals, and 
(3) the effects of the proposals on other provisions of this Act 
on gas utility rate structures. 
(d) PUBLIC PARTICIPATION.—^The Secretary shall provide for public 
participation in the conduct of the study under subsection (a) and the 
preparation of proposals under subsection (b). 
SEC. 307. JUDICIAL REVIEW AND ENF0RCEMEN1\ 
15 USC 3207. 
(a) LIMITATION OF FEDERAL JURISDICTION.— (1) 
Notwithstanding 
any other provision of law, no court of the United States shall have 
jurisdiction over any action arising under any provision of this title 
except for— 
(A) an action over which a court of the United States has 
jurisdiction under paragraph (2), or 
(B) review in the Supreme Court of the United States in 
accordance with sections 1257 and 1258 of title 28 of the United 
States Code. 
(2) The Secretary may brin^ an action in any appropriate court of 
the United States to enforce his right to intervene under section 305 
and such court shall have jurisdiction to grant appropriate relief. 
(b) ENFORCEMENT.—(1) Any person may bring an action to enforce 
the recjuirements of this title in the appropriate State court. Such 
action in a State court shall be pursuant to applicable State procedures. 
(2) Nothing in this title shall authorize the Secretary to appeal or 
otherwise seek judicial review of the decisions of a State regulatory 
authority or nonregulated gas utility or to become a party to any action 
to obtain such review or appeal. The Secretary may participate as an 
amicus curiae in any judicial review of an action arising under the 
provisions of this title. 
SEC. 308. RELATIONSHIP TO OTHER APPLICABLE LAW. 
15 USC 3208. 
Nothing in this title prohibits any State regulatory authority or 
nonregulated gas utility from adopting, pursuant to State law, any 
standard or rule affecting gas utilities which is different from any 
standard established by this title. 
SEC. 309. REPORTS RESPECTING STANDARDS. 
15 USC 3209. 
(a) STATE AUTHORITIES AND NONREGULATED UTILITIES.—Not later 
than 1 year after the date of the enactment of this Act and annually 
thereafter for 10 years, each State regulator}^ authority (with respect 
to each gas utility for which it has ratemaking authority), and each 
nonregulated gas utility, shall report to the Secretary, in such manner 
as the Secretary shall prescribe, respecting its consideration of the 
standards established by this title. Such report shall include a sum-
mary of the determinations made and actions taken with respect to 
each of such standards on a utility-by-utility basis. 
92 STAT. 3154 
PUBLIC LAW 95-617—NOV. 9, 1978 
(b) SECRETARY.—Not later than 18 months after the date of the 
enactment of this Act and annually thereafter for 10 years, the Secre-
tary shall submit a report to the President and the Congress 
containing— 
(1) a summary of the reports submitted under subsection (a), 
(2) his analysis of such reports, and 
(3) his actions under this title, and his recommendations for 
such further Federal actions, including any legislation, regarding 
retail gas utility rates (and other practices) as may be necessary to 
carry out the purposes of this title. 
15 use 3210. 
SEC. 310. PRIOR AND PENDING PROCEEDINGS. 
For purposes of this title, proceedings commenced by any State 
regulatory authority (with respect to gas-utilities for which it has rate-
making authority) and any nonregulated gas utility before the date of 
the enactment of this Act and actions taken before such date in such 
proceedings shall be treated as complying with the requirements of this 
title if such proceedings and actions substantially conform to such 
requirements. For purposes of this title, any such proceeding or action 
commenced before the date of enactment of this Act but not completed 
before such date shall comply with the requirements of this title, to 
the maximum extent practicable, with r^pect to so much of such 
proceeding or action as takes place after such date. 
15 use 3211. 
SEC. 311. RELATIONSHIP TO OTHER AUTHORITY. 
Nothing in this title shall be construed to limit or affect any author-
ity of the Secretary or the Commission under any other provision of 
law. 
TITLE IV—SMALL HYDROELECTRIC POWER 
PROJECTS 
16 use 2701. 
SEC. 401. ESTABLISHMENT OF PROGRAM. 
The Secretary shall establish a program in accordance with this title 
to encourage municipalities, electric cooperatives, industrial develop-
ment agencies, nonprofit organizations, and other persons to under-
take the development of small hydroelectric power projects in connec-
tion with existing dams which are not being used to generate electric 
power. 
16 use 2702. 
SEC. 402. LOANS FOR FEASIBILITY STUDIES. 
(a) LOAN AUTHORITT.—The Secretary, after consultation with the 
Commission, is authorized to make a loan to any municipality, electric 
cooperative, industrial development agency, nonprofit organization, or 
other person to assist such person in defraying up to 90 percent of the 
costs of— 
(1) studies to determine the feasibility of undertaking a small 
hydroelectric power project at an existing dam or dams and 
(2) preparing any application for a necessary license or other 
Federal, State, and local approval respecting such a project at 
an existing dam or dams and of participating in any administra-
tive proceeding regarding any such application. 
(b) CANCELLATION.—The Secretary may cancel the unpaid balance 
and any accrued interest on any loan granted pursuant to this section 
if he determines on the basis of the study that the small hydroelectric 
power project would not be technically or economically feasible. 
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3155 
SEC. 403. LOANS FOR PROJECT COSTS. 
16 USC 2703. 
(a) AUTHORITY.—The Secretary is authorized to make loans to any 
municipality, electric cooperative, industrial development agency, 
nonprofit organization, or other person of up to 75 percent of the 
project costs of a small hydroelectric power project. N^o such loan may 
be made unless the Secretary finds that— 
(1) the project will be constructed in connection with an existing 
dam or dams, 
(2) all licenses and other required Federal, State, and local 
approvals necessary for construction of the project have been 
issued, 
(3) the project will have no significant adverse environmental 
effects, including significant adverse effects on fish and wildlife, 
on recreational use of water, and on stream flow, and 
(4) the project will not have a significant adverse effect on any 
other use of the water used by such project. 
The Secretary may make a commitment to make a loan under this 
subsection to an applicant who has not met the requirements of para-
graph (2), pending compliance by such applicant with such require-
ments. Such commitment shall be for period of not to exceed 3 years 
unless the Secretary, in consultation with the Commission, extends 
such period for good cause shown. Notwithstanding any such com-
mitment, no such loan shall be made before such person has complied 
with such requirements. 
(b) PREFERENCE.—The Secretary shall give preference to appli-
cants under this section who do not have available alternative financ-
ing which the Secretary deems appropriate to carry out the project 
and whose projects will provide useful information as to the technical 
and economic feasibility of— 
(1) the generation of electric energy by such projects, and 
(2) the use of energy produced by such projects. 
(c) INFORMATION.—Every applicant for a license for a small hydro- 
H 
electric power project receiving loans pursuant to this section shall 
|
furnish the Secretary with such information as the Secretary may 
require regarding equipment and services proposed to be used in the 
design, construction, and operation of such project. The Secretary 
shall have the right to forbid the use in such project of any equipment 
or services he finds inappropriate for such project by reason of cost, 
performance, or failure to carry out the purposes of tMs section. The 
Secretary shall make information which he obtains unmer this subsec-
tion available to the public, other than informaticm described as 
entitled to confidentiality under section 11 (d) of the Energy Supply 
and Environmental Coordination Act of 1974. 
; 
15 USC 796. 
(d) JOINT PARTICIPATION.—In making loans for small hydroelectric 
power projects under this section, the Secretary shall encourage joint 
participation, to the extent permitted by law, by applicants eligible to 
receive loans under this section with respect to the same project. 
SEC. 404. LOAN RATES AND REPAYMENT. 
16 USC 2704. 
(a) INTEREST.-—Each loan made pursuant to this title shall bear 
interest at the discount or interest rate used at the time the loan is 
made for water resources planning projects under section 80 of the 
Water Eesources Development Act of 1974 (42 U.S.C. 1962-17(a)). 
Each such loan shall be for such term, as the Secretary deems appro-
priate, but not in excess of— 
(1) 10 years fin the case of a loan under section 402) or 
(2) 30 years (in the case of a loan under section 403). 
1 
note. 
92 STAT. 3156 
PUBLIC LAW 95-617—NOV. 9, 1978 
> J- = ' 
(lb) REPAYMENTS.—Amounts repaid on loans made pursuant to this 
title shall be deposited into the United States Treasury as miscel-
laneous receipts. 
16 use 2705. 
SEC. 405. SIMPLIFIED AND EXPEDITIOUS LICENSING PROCEDURES. 
(a) ESTABLISHMENT OF PROGRAM.—The Commission shall establish, 
in such manner as the Commission deems appropriate, consistent with 
the applicable provisions of law, a program to use simple and expedi-
tious licensing procedures under the Federal Power Act for small 
hydroelectric power projects in connection with existing dams. 
(b) PREREQUISITES.—Before issuing any license under the Federal 
16 use 791a. 
Power Act for the construction or operation of any small hydroelectric 
power project the Commission— 
(1) shall assess the safety of existing structures in any pro-
posed project (including possible consequences associated with 
failure of such structures), and 
(2) shall provide an opportunity for consultation with the 
Council on Environmental Quality and the Environmental Pro-
tection Agency with respect to the environmental effects of such 
project. 
Nothing in this subsection exempts any such project from any require-
ment applicable to any such project under the National Environ-
42 use 4321 
mental Policy Act of 1969, the Fish and Wildlife Coordination Act, 
note, 16 use 661 
the Endangered Species Act, or any other provision of Federal law. 
•lote. 
(c) 
F I S H 
AND WILDLIFE 
FACILITIES.—The 
Commission 
shall 
-^•1^^^ ^^^^ 
encourage applicants for licenses for small hydroelectric 
power 
projects to make use of public funds and other assistance for the design 
and construction of fish and wildlife facilities which may be required 
in connection with any development of such project. 
16 use 2706. 
SEC. 406. NEW IMPOUNDMENTS. 
Nothing in this title authorizes (1) the loan of funds for construction 
of any new dam or other impoundment, or (2) the simple and expedi-
tious licensing of any such new dam or other impoundment. 
16 use 2707. 
SEC. 407. AUTHORIZATIONS. 
There are liereby authorized to be appropriated for each of the fiscal 
years ending September 30, 1978, September 30, 1979, and Septem-
ber 30,1980, not to exceed $10,000,000 for loans to be made pursuant to 
section 402, such funds to remain available until expended. There are 
hereby authorized to be appropriated for each of the fiscal years end-
ing September 30, 1978, September 30, 1979, September 30, 1980, not 
to exceed $100,000,000 for loans to be made pursuant to section 403, 
such funds to remain available until expended. 
16 use 2708. 
SEC. 408. DEFINITIONS. 
For purposes of this title, the term— 
(1) "small hydroelectric power project" means any hydroelec-
tric power project which is located at the site of any existing dam, 
, ,,, i,;: i 
which uses the water power potential of such dam, and which has 
not more than 15,000 kilowatts of installed capacity; 
(2) "electric cooperative" means any cooperative association 
eligible to receive loans under section 4 of the Rural Electrifica-
tion Act of 1936 (7 U.S.C. 904); 
(3) "industrial development agency" means any agency which 
is permitted to issue obligations the interest on which is exclud-
able from gross income under section 103 of the Internal Revenue 
26 use 103. 
Code of 1954; 
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3157 
(4) "project costs" means the cost of acquisiiton or constiiic-
tion of all facilities and services and the cost of acquisition of all 
land and interests in land used in the design and construction and 
operation of a small hydroelectric power project; 
(5) "nonprofit organization" means any organization described 
in section 501(c) (3) or 501(c) (4) of the Internal Kevenue Code 
of 1954 and exe;mpt from tax under section 501(a) of such Code 26 USC 501. 
(but only with respect to a trade or business carried on by such 
organization which is not an unrelated trade or business, deter-
mined by applying section 513(a) to such organization); 
26 USC 513. 
(6) "existing dam" means any dam, the construction of which 
was completed or on before April 20, 1977, and which does not 
require any construction or enlargement of impoundment struc-
tures (other than repairs or reconstruction) in connection with the 
installation of any small hydroelectric power project; 
(7) "municipality" has the meaning provided in section 3 of the 
Federal Power Act"; and 
16 USC 796. 
(8) "person" has the meaning provided in section 3 of the Fed-
eral Power Act. 
TITLE V—CRUDE OIL TRANSPORTATION 
SYSTEMS 
SEC. 501. FINDINGS, 
43 USC 2001. 
The Congress finds and declares that— 
(1) a serious crude oil supply shortage may soon exist in por-
tions of the United States; 
(2) a large surplus of crude oil on the west coast of the United 
States is projected; 
(3) any substantial curtailment of Canadian crude oil exports 
to the United States could create a severe crude oil shortage in 
the northern tier States; 
(4) pending the authorization and completion of west-to-east 
crude oil delivery systems, Alaskan crude oil in excess of west coast 
needs will be transshipped through the Panama Canal at a high 
transportation cost; 
(5) national security and regional supply requirements may be 
such that west-to-east crude delivery systems serving both the 
northern tier States and inland States, consistent with the require-
ments of section 410 of the Act approved November 16, 1973 (87 
Stat. 694), commonly known as the Trans-Alaska Pipeline Author-
ization Act, are needed; 
43 USC 1651 
(6) expeditious Federal and State decisions for west-to-east note, 
crude oil delivery systems are of the utmost priority; and 
(7) resolution of the west coast crude oil surplus and the need 
for crude oil in northern tier States and inland States require the 
assignment and coordination of overall responsibility within the 
executive branch to permit expedited action on all necessary envi-
ronmental assessments and decisions on permit applications con-
cerning delivery systems. 
SEC. 502. STATEMENT OF PURPOSES. 
43 uSC 2002. 
The purposes of this title are— 
(1) to provide a means for— 
' 
(A) selecting delivery systems to transport Alaskan and 
other crude oil to northern tier States and inland States, and 
92 STAT. 3158 
PUBLIC LAW 95-617—NOV. 9, 1978 
(B) resolving both the west coast crude oil surplus and the 
crude oil supply problems in the northern tier States; 
(2) to provide an expedited procedure for acting on applica-
tions for all Federal permits, licenses, and approvals required for 
the construction and operation or any transportation system 
approved under this title and the Long Beach-Midland project; 
r 
and 
(3) to assure that Federal decisions with respect to crude oil 
transportation systems are coordinated with State decisions to the 
maximum extent practicable, 
43 use 2003. 
SEC. 503. DEFINITIONS. 
As used in this title— 
(1) The term "northern tier States" means the States of Wash-
ington, Oregon, Idaho, Montana, North Dakota, Minnesota, Michi-
gan, Wisconsin, Illinois, Indiana, and Ohio. 
(2) The term "inland States" means those States in the United 
" ^ 
States other than northern tier States and the States of California, 
Alaska, and Hawaii. 
(3) The term "crude oil transportation system" means a crude 
oil delivery system (including the location of such system) for 
transporting Alaskan and other crude oil to northern tier States 
and inland States, but such term does not include the Long Beach-
Midland project. 
(4) The term "Long Beach-Midland project" means the crude 
oil delivery system which was the subject of, and is generally 
described in, the "Final Environmental Impact Statement, Crude 
Oil Transportation System: Valdez, Alaska, to Midland, Texas 
(as proposed by Sohio Transportation Company)", the avail-
ability of which was announced by the Department of the Interior 
in the Federal Register on June 1, 1977 (42 Fed. Reg. 28008). 
(5) The term "Federal agency" means an Executive agency, as 
defined in section 105 of title 5, United States Code. 
43 use 2004. 
SEC. 504. APPLICATIONS FOR APPROVAL OF PROPOSED CRUDE OIL 
TRANSPORTATION SYSTEMS. 
The following applications for construction and operation of a crude 
oil transportation system submitted to the Secretary of the Interior 
by an applicant are eligible for consideration under this title: 
(1) Applications received by the Secretary before the 30th 
day after the date of the enactment of this Act. 
(2) Applications received by the Secretary during the 60-day 
period beginning on the 30th day after the date of the enactment 
of this Act, if the Secretary determines that consideration and 
review of the proposal contained in such application is in the 
national interest and that such consideration and review could 
be completed within the time limits established under this title. 
An application under this section may be accepted by the Secretary 
only if it contains a general description of the route of the proposed 
system and identification of the applicant and any other person who, 
at the time of filing, has a financial or other interest in the system or 
is a party to an agreement under which such person would acquire a 
financial or other interest in the system. 
43 use 2005. 
SEC. 505. REVIEW SCHEDULE. 
(a) ESTABLISHMENT.—The Secretary of the Interior, after consul-
tation with the heads of appropriate Federal agencies, shall establish 
an expedited schedule for conducting reviews and making recom-
mendations concerning crude oil transportation systems proposed in 
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3159 
applications filed under section 504 and for obtaining information 
necessary for environmental impact statements required under section 
102 of the National Environmental Policy Act of 1969 (42 U.S.C. 
; 
4332) with respect to such proposed systems. 
(b) ADDITIONAL INFORMATION.—(1) On his own initiative or at the 
request of the head of any Federal agency covered by the review 
schedule established under subsection (a), the Secretary of the Interior 
shall require that an applicant provide such additional information as 
may be necessary to conduct the review of the applicant's proposal. 
Such information may include— 
(A) specific details of the route (and alternative routes) and 
identification of Federal lands affected by any such route; 
(B) information necessary for environmental impact state-
ments; and 
(C) information necessary for the President's determination 
under section 507(a). 
(2) If, within a reasonable time, an applicant does not— 
(A) provide information required under this subsection, or 
(B) comply with any requirement of section 304 of the Fed-
eral Land Policy and Management Act of 1976 (90 Stat. 2765; 
43 U.S.C. 1734), 
the Secretary of the Interior may declare the application ineligible for 
consideration under this title. After making such a declaration, the Notification to 
Secretary of the Interior shall notify the applicant and the President the President, 
of such ineligibility. 
(c) RECOMMENDATIONS OF THE HEADS OF FEDERAL AGENCIES.—(1) 
Crude oil 
Pursuant to the schedule established under subsection (a), heads of transportation 
Federal agencies covered by such schedule shall conduct a review of a system, review, 
proposed crude oil transportation system eligible for consideration 
under this title and shall submit their recommendations concerning 
such systems (and the basis for such recommendations) to the Secre-
tary of the Interior for submission to the President. After receipt of 
such recommendations and before their submission to the President, 
the Secretary of the Interior shall provide an opportunity for com-
ments in accordance with paragraph (2). The Secretary of the Inte-
rior shall forward such comments to the President with the 
recommendations— 
(A) in the case of applications filed under section 504(1), on or 
before December 1,1978, and 
(B) in the case of applications filed under section 504(2), on or 
before the 60th day after December 1,1978. 
(2) (A) After receipt of recommendations under paragraph (1) the 
Secretary of the Interior shall provide appropriate means by which the 
Governor and any other official of any State and any official of any 
political subdivision of a State, may submit written comments con-
cerning proposed crude oil transportation systems eligible for consid-
eration under this title. 
(B) After receipt of recommendations referred to in subparagraph 
(A), the Secretary of the Interior shall make such comments and 
recommendations available to the public and provide an opportunity 
for submission of written comments. 
i 
(d) REVIEW BY THE FEDERAL TRADE COMMISSION; ^EFFECT ON THE 
ANTITRUST LAWS.—(1) Promptly after he receives ait application for 
a proposed crude oil transportation system eligible for consideration 
under this title, the Secretary of the Interior shall submit to the Fed-
eral Trade Commission a copy of such application and such other 
information as the Commission may reasonably require. The Com- Report to 
President. 
92 STAT. 3160 
PUBLIC LAW 95-617—NOV. 9, 1978 
mission may prepare and submit to the President a report on the 
impact of implementation of such application upon competition and 
restraint of trade and on whether such implementation would be incon-
sistent with the antitrust laws. Such report shall be made available to 
the public. Nothing in this subsection shall be construed to prevent the 
President from making his decision under section 507(a) in the absence 
of such report. 
(2) Nothing in this title shall bar the Attorney General or any other 
appropriate officer or agent of the United States from challenging any 
anticompetitive act or practice related to the ownership, construction, 
or operation of any crude oil transportation system approved under 
this title. The approval of any such system under this title shall not be 
deemed to convey to any person immunity from civil or criminal 
liability or to create defenses to actions under the antitrust laws and 
shall not modify or abridge any private right of action under such 
laws, 
(e) FiLixG AND KEVIEW or PERMITS, EIGHTS-OF-WAY APPLICATIOXS, 
ETC., NOT AFFECTED.—Nothing in this title shall be construed to pre-
vent the acceptance and review by any Federal agency of any applica-
tion for any Federal permit, right-of-way, or other authorizations 
tinder other provisions of law for a crude oil transportation system 
eligible for consideration under this title; except that any determina-
tion with respect to such an application may be made only in accord-
ance with the provisions of section 509 (a). 
43 use 2006. 
SEC. 506. ENVIRONMENTAL IMPACT STATEMENTS. 
(a) PREPARATION OF ENVIRONMENTAL IMPACT STATEMENTS.—Any 
Federal agency required under section 102 of the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4332) to issue an environmental 
impact statement concerning a proposed crude oil transportation sys-
tem eligible for consideration under this title shall, in preparing such 
statement, utilize, to the maximum extent practicable and consistent 
with such Act, appropriate data, analyses, conclusions, findings, and 
decisions regarding environmental impacts developed or made by any 
other Federal or State agency. 
Submittal to 
(b) FILING OF ENVIRONMENTAL IMPACT STATEMENTS.—On or before 
President. 
December 1,1978, all environmental impact statements concerning pro-
posed crude oil transportation systems eligible for consideration under 
this title and required under section 102 of the National Environ-
mental Policy Act of 1969 shall be completed, made available for pub-
lic review and comment, revised to the extent appropriate in light of 
such comment, and submitted to the President and the Council on 
Environmental Quality; except that in the case of any environmental 
impact statement concerning any crude oil transportation system which 
is eligible for consideration and which was filed under section 504(2) 
of this title, such actions may be taken not later than 60 days after 
December 1,1978. 
(c) 
REPORT OF THE COUNCIL ON ENVIRONMENTAL QUALITY.— 
Promptly after receiving an environmental impact statement referred 
to in subsection (b) for a crude oil transportation system, the Council 
on Environmental Quality shall submit to the President a report on 
the Council's opinion concerning such statement and concerning other 
matters related to the environmental impact of such system. 
43 use 2007. 
SEC. 507. DECISION OF THE PRESIDENT. 
(a) DECISION CONCERNING APPROVAL OR DISAPPROVAL OF PROPOSED 
SYSTEMS.—(1) After reviewing all the information submitted to him 
concerning the various proposed crude oil transportation systems eligi-
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3161 
ble for consideration under this title (including environmental impact 
statements, comments, reports, recommendations, and other informa-
tion submitted to him at any time before he makes his decision) and 
after consulting the Secretaries of Energy, the Interior, and Trans-
portation, the President shall decide which, if any, of such systems 
shall be approved for the purposes of section 508 (relating to proce-
dures for waiver of law), section 509 (relating to expedited procedures 
for issuance of permits), section 510 (relating to negotiations with the 
Government of Canada), and section 511 (relating to judicial review). 
A decis'on approving a crude oil transportation system may include 
such modifications and alterations in such system as the President finds 
appropriate. The President shall issue his decision within 45 days after 
receiving recommendations and comments submitted to him under 
section 505(c), except that the President, for such period as he deems 
necessary, but not to exceed 60 days, may delay his decision and its 
issuance if he determines that additional time is otherwise necessary to 
enable him to make a decision. If the President so delays his decision, Notification, 
he shall promptly notify the House of Representatives and the Senate 
of such delay and shall submit a full explanation of the basis for such 
delay. 
(2) Any decision made under this subsection approving a system 
proposed under this title shall include a determination that construc-
tion and operation of such system is in the national interest and shall 
be based upon the criteria specified in subsection (b). 
(b) CRITERIA.— (1) The criteria for making a decision under this 
subsection shall include findings of— 
(A) environmental impacts of the proposed systems and the 
capability of such systems to minimize environmental risks result-
ing from transportation of crude oil; 
(B) the amount of crude oil available to northern tier States 
and inland States and the projected demand in those States under 
each of such systems; 
(C) transportation costs and delivered prices of crude oil by 
region under each of such systems; 
(D) construction schedules for each of such systems and possi-
bilities for delay in such schedules; 
(E) feasibility of financing for each of such systems; 
; 
(F) capital and operating costs of each of such systems, includ-
ing an analysis of the reliability of cost estimates and the risk of 
cost overruns; 
(G) net national economic costs and benefits of each such 
system; 
(H) the extent to which each system complies with the provi-
sions of section 410 of the Act approved November 16, 19Y3 (87 
Stat. 594), commonly known as the Trans-Alaska Pipeline 
Authorization Act; 
43 USC 1651 
(I) the effect of each such system on international relations, note. 
,. 
including the status and time schedule for any necessary Canadian 
approvals and plans; 
(J) impact upon competition by each system; 
( K ) degree of safety and efficiency of design and operation of 
each system; 
(L) potential for interruption of deliveries of crude oil from 
the west coast under each such system; 
(M) capacity and cost of expanding such system to transport 
additional volumes of crude oil in excess of initial system capacity; 
(N) national security considerations under each such system; 
39-194 O—80—pt. 3 
34 : QL3 
92 STAT. 3162 
PUBLIC LAW 95-617—NOV. 9, 1978 
(O) relationship of each such system to national energy policy; 
and 
(P) such other factors as the President deems appropriate. 
(2) The period of time for which such findings shall be made shall 
be the useful life of the crude oil transportation system involved. 
(c) PUBLICATION or FINDINGS AND DECISION.—The President shall 
make available to the public at the time of issuance of a decision under 
this section a written statement setting forth findings with respect to 
each of the criteria specified in subsection (b) and describing the 
nature and route of crude oil transportation systems, if any, which are 
approved in the decision. If the President's decision is to approve a 
system, each statement shall set forth his reasons for approving such 
system over other proposed systems (if any) eligible for consideration 
Publication in 
under this title. Such statement along with notification of such deci-
Federal Register, 
sion shall be published in the Federal Register. 
43 use 2008. 
SEC. 508. PROCEDURES FOR WAIVER OF FEDERAL LAW. 
i 
(a) WAIVER OF PROVISIONS or FEDERAL LAW.—The President may 
identify those provisions of Federal law (including any law or laws 
regarding the location of a crude oil transportation system but not 
including any provision of the antitrust laws) which, in the national 
interest, as determined by the President, should be waived in whole 
or in part to facilitate construction or operation of any such system 
approved under section 507 or of the Long Beach-Midland project, 
and he shall submit any such proposed waiver to both Houses of the 
Congress. The provisions so identified shall be waived with respect to 
actions to be taken to construct or operate such system or project only 
upon enactment of a joint resolution within the first period of 60 
calendar days of continuous session of Congress beginning on the date 
of receipt by the House of Representatives and the Senate of such 
proposal. 
(b) JOINT RESOLUTION.—The resolving clause of the joint resolution 
referred to in subsection (a) is as follows: "That the House of Rep-
resentatives and Senate approve the waiver of the provisions of law 
( 
) as proposed by the President, submitted to the Congress 
on 
, 19 .". The first blank space therein being filled 
with the citation to the provisions of law proposed to be waived by 
the President and the second blank space therein being filled with 
the date on which the President submits his decision to wave such 
provisions of law to the House of Representatives and the Senate. 
Rules and procedures for consideration of any such joint resolution 
shall be governed by section 8 (c) and (d) of the Alaskan Natural 
15 use 719f. 
Gas Transportation Act, other than paragraph (2) of section 8(d), 
except that for the purposes of this subsection, the phrase "a waiver 
of provisions of law" shall be substituted in section 8(d) each place 
where the phrase "an Alaska natural gas transportation system" 
appears. 
43 use 2009. 
SEC. 509. EXPEDITED PROCEDURES FOR ISSUANCE OF PERMITS: EN-
FORCEMENT OF RIGHTS-OF-WAY. 
(a) 
EXPEDITED PROCEDURES FOR APPROVED SYSTEMS.—After issu-
ance of a decision by the President approving any crude oil trans-
portation system, all Federal officers and agencies shall expedite, to 
the maximum extent practicable, consistent with applicable provi-
sions of law, all actions necessary to determine whether to issue, 
administer, or enforce rights-of-way across Federal lands and to issue 
Federal permits in connection with, or otherwise to authorize, con-
struction and operation of such system. Any such action shall be 
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3163 
consistent with applicable provisions of law. After taking any such Publication in 
action, such officer or agency shall publish notification of the taking Federal Register, 
of such action in the Federal Register. 
(b) EXPEDITED PROCEDURES FOR LONG BEACH-MIDLAND PROJECT.— 
All decisions regarding issuance of Federal permits, rights-of-way, 
and leases and other Federal authorizations necessary for construc-
tion and operation of the Long Beach-Midland project shall be con-
sistent with applicable provisions of Federal law, except that such 
• 
decisions shall be made within 30 days after the date this title 
becomes effective. The President may extend the date by which such 
decisions, under the preceding sentence, are to be made to a date not 
later than 90 days after the effective date of this title. Notification 
Publication in 
of the making of such decisions shall be published in the Federal 
Federal Register. 
Register. Nothing in this section affects any decision made before 
the date of the enactment of this title. 
(c) 
L A W GOVERNING RIGHTS-OF-WAY.—Rights-of-way over any 
, 
, 
, 
.; 
Federal land with respect to an approved crude oil transportation sys-
tem or the Long Beach-Midland project shall be governed by the pro-
visions of section 28 of the Act of February 25, 1920, commonly 
referred to as the Mineral Leasing Act of 1920 (30 U.S.C. 185), other 
than subsection (w) (2) of such section. 
SEC. 510. NEGOTIATIONS WITH THE GOVERNMENT OF CANADA. 
43 USC 2010. 
With respect to any crude oil transportation system approved under 
section 507(a) all or any part of which is to be located in Canada, the 
President of the United States is authorized and requested to enter into 
negotiations with the Government of Canada to determine what meas-
ures can be taken to expedite the granting of approvals by the Govern-
ment of Canada for construction or operation of such system, and he 
is authorized and requested to explore the possibility of further 
exchanges of crude oil supplies between the United States and Canada. 
SEC. 511. JUDICIAL REVIEW. 
43 USC 2011. 
(a) NOTICE.—The President or any other Federal officer shall cause Publication in 
notice to be published in the Federal Register and in newspapers of Federal Register, 
general circulation in the areas affected whenever he makes any deci-
sion described in subsection (b). 
(b) REVIEW OF CERTAIN FEDERAL ACTIONS.—Any action seeking 
judicial review of an action or decision of the President or any other 
Federal officer taken or made after the date of the enactment of this 
Act concerning the approval or disapproval of a crude oil transporta-
tion system or the issuance of necessary rights-of-way, permits, leases, 
and other authorizations for the construction, operation, and mainte-
nance of the Long Beach-Midland project or a crude oil transportation 
system approved under section 507(a) may only be brought within 60 
days after the date on which notification of the action or decision of 
such officer is published in the Federal Register, or in newspapers of 
general circulation in the areas affected, whichever is later. 
(c) JURISDICTION OF COURTS.—An action under subsection (b) shall 
be barred unless a petition is filed within the time specified. Any such 
petition shall be filed in the appropriate United States district court. 
A copy of such petition shall be transmitted by the clerk of such court 
to the Secretary. Notwithstanding the amount in controversy, such 
court shall have jurisdiction to determine such proceeding in accord-
ance with the procedures hereinafter provided and to provide appro-
priate relief. No State or local court shall have jurisdiction of any such 
claim whether in a proceeding instituted before, on, or after the date 
this title becomes effective. Any such proceeding shall be assigned for 
92 STAT. 3164 
PUBLIC LAW 95-617—NOV. 9, 1978 
43 use 2012. 
hearing at the earliest possible date and shall be expedited by such 
court. No court shall have jurisdiction to grant any injunctive relief 
9,gainst the issuance of any right-of-way, permit, lease, or other 
authorization in connection with a crude oil transportation system 
approved under section 507(a) or the Long Beach-Midland project, 
except as part of a final judgment entered in a case involving a claim 
filed pursuant to this section. 
SEC. 512. AUTHORIZATION FOR APPROPRIATION. 
There are authorized to be appropriated to the Secretary of the 
Interior to carry out his responsibilities under this title not to exceed 
$500,000 for the fiscal year ending on September 30, 1978, and not to 
exceed $1,000,000 for the fiscal year ending on September 30,1979. 
TITLE VI—MISCELLANEOUS PROVISIONS 
16 u s e 2621 
note. 
Submittal to 
eongress. 
"State utility 
agency." 
16 u s e 824a-4. 
Ante, p. 3120. 
eooperation and 
technical 
assistance. 
SEC. 601. STUDY CONCERNING ELECTRIC RATES OF STATE UTILITY 
AGENCIES. 
(a) STUDY AND REPORT.—The Secretary, in consultation with the 
Commission and appropriate State rej^ulatory authorities and other 
persons, shall conduct a study concerning the effects of provisions of 
Federal law on rate established by State utility agencies. The Secretary 
shall submit a report to Congress containing the results of such study 
not later than 1 year after the date of the enactment of this Act. 
(b) DEFINITION.—The term "State utility agency" means an agency 
of a State (not including any political subdivision or agency thereof or 
any public power district) which is an electric utility. 
SEC. 602. SEASONAL DIVERSITY ELECTRICITY EXCHANGE. 
(a) AUTHORITY.—^The Secretary may acquire rights-of-way by pur-
chase, including eminent domain, through North Dakota, South 
Dakota, and Nebraska for transmission facilities for the seasonal diver-
sity exchange of electric power to and from Canada if he determines— 
(1) after opportunity for public hearing— 
(A) that the exchange is in the public interest and would 
further the purposes referred to in section 101 (1) and (2) of 
this Act and that the acquisition of such rights-of-way and the 
construction and operation of such transmission facilities for 
such purposes is otherwise in the public interest, 
(B) that a permit has been issued in accordance with sub-
section (b) for such construction, operation, maintenance, and 
connection of the facilities at the border for the transmission 
of electric energy between the United States and Canada as is 
necessary for such exchange of electric power, and 
(C) that each affected State has approved the portion of 
the transmission route located in each State in accordance with 
applicable State law, or if there is no such applicable State 
law in such State, the Governor has approved such portion; 
and 
(2) after consultation with the Secretary of the Interior and the 
heads of other affected Federal agencies, that the Secretary of the 
Interior and the heads of such, other agencies concur in writing in 
the location of such portion of the transmission facilities as crosses 
Federal land under the jurisdiction of such Secretary or such other 
Federal agency, as the case may be. 
The Secretary shall provide to any State such cooperation and technical 
assistance as the State may request and as he determines appropriate 
in the selection of a transmission route. If the transmission route 
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3165 
approved by any State does not appear to be feasible and in the public 
interest, the Secretary shall encourage such State to review such route 
and to develop a route that is feasible and in the public interest. Any 
exercise by the Secretary of the power of eminent domain under this 
section shall be in accordance with other applicable provisions of Fed-
eral law. The Secretary shall provide public notice of his intention to Notice, 
acquire any right-of-way before exercising such power of eminent 
domain with respect to such right-of-way. 
(b) PERMIT.—Notwithstanding any transfer of functions under the 
first sentence of section 301(b) of the Department of Energy Organi-
zation Act, no permit referred to in subsection ( a ) ( 1 ) ( B ) may be 42 USC 7151. 
issued unless the Commission has conducted hearings and made the 
findings required under section 202(e) of the Federal Power Act and 16 USC 824a. 
under the applicable execution order respecting the construction, opera-
tion, maintenance, or connection at the borders of the United States of 
facilities for the transmission of electric energy between the United 
States and a foreign country. Any finding of the Commission under 
an applicable executive order referred to in this subsection shall be 
treated for purposes of judicial review as an order issued under section 
202(e) of the Federal Power Act. 
(c) TIMELY ACQUISITION BY OTHER MEANS.—The Secretary may 
not acquire any rights-of-day under this section unless he determines 
that the holder or holders of a permit referred to in subsection (a) (1) 
(B) are unable to acquire such rights-of-way under State condemna-
tion authority, or after reasonable opportunity for negotiation, with-
out unreasonably delaying construction, taking into consideration the 
impact of such delay on completion of the facilities in a timely 
fashion. 
(d) PAYMENTS BY PERMITTEES.—(1) The property interest acquired 
; 
by the Secretary under this section (whether by eminent domain or 
other purchase) shall be transferred by the Secretary to the holder of 
a permit referred to in subsection (b) if such holder has made pay-
ment to the Secretary of the entire costs of the acquisition of such 
property interest, including administrative costs. The Secretary may 
accept, and expend, for purposes of such acquisition, amounts from 
any such person before acquiring a property interest to be transferred 
to such person under this section. 
(2) If no payment is made by a permit holder under paragraph (1), 
within a reasonable time, the Secretary shall offer such rights-of-way 
to the original owner for reacquisition at the original price paid by the 
Secretary. If such original owner refuses to reacquire such property 
.after a reasonable period, the Secretary shall dispose of such property 
in accordance with applicable provisions of law governing disposal of 
property of the United States. 
(e) FEDERAL L A W GOVERNING FEDERAL LANDS.—This section shall 
not affect any Federal law governing Federal lands. 
(f) REPORTS.—The Secretary shall report annually to the Congress Report to 
on the actions, if any, taken pursuant to this section. 
Congress. 
SEC. 603. UTILITY REGULATORY INSTITUTE. 
16 USC 2645. 
(a) MATCHING GRANTS.—The Secretary may make grants under this 
Grants, 
section to an institute established by the National Association of Reg-
ulatory Utility Commissioners to enable such institute to— 
(1) conduct research on electric and gas utility regulatory 
policy issues, 
(2) develop data processing and retrieval methods for electric 
and gas utility ratemaking, and 
92 STAT. 3166 
PUBLIC LAW 95-617—NOV. 9, 1978 
(3) perform other functions directly related to assisting State 
regulatory authorities in carrying out their functions under State 
law and this Act. 
(b) FEDERAL SHARE.—Grants under this section shall not be used 
to provide more than the following percentages of the cost to the 
institute of carrying out the activities specified in subsection (a) : 
(1) 80 percent for the fiscal year 1979; and 
(2) 60 percent for the fiscal year 1980. 
The remaining amounts expended by the institute may not be pro-
vided from Federal sources. 
-; 
(c) RESTRICTIONS.—Grants under this section may not be made sub-
ject to terms and conditions other than those the Secretary deems 
necefsary for purposes of administering this section and for purposes 
of assuring that— 
(1) all information gathered by the institute is available to 
the Secretary, the Commission, and the public, and 
(2) no portion of any such grant is used to support or oppose 
any legislative proposal except by means of testimony by repre-
sentatives of the institute provided by invitation to a committee 
of Congress or of a State legislature. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be 
appropriated not more than $2,000,000 for each of the fiscal years 
1979 and 1980 for purposes of making grants under this section. No 
amounts may be appropriated for any fiscal year after the fiscal year 
1980 to carry out the purposes of this section without a specific author-
ization of Congress. 
SEC. 604. COAL RESEARCH LABORATORIES, i 
(a) DESIGNATION.—So much of section 801 of the Surface Mining 
30 use 1311. 
Control and Reclamation Act of 1977 as precedes subsection (b) of 
paragraph (2) thereof is amended to read as follows: 
((. 
ESTABLISHMENT OF UNIVERSITY COAL RESEARCH LABORATORIES 
"SEC. 801. (a) The Secretary of Energy, after consultation with the 
National Academy of Engineering, shall designate thirteen institu-
tions of hisrher education at which university coal research labora-
tories will be established and operated. Ten such designations shall 
be made as provided in subsection (e) and the remaining three shall 
be made in fiscal year 1980. 
"(b) In making designations under this section, the Administrator 
shall consider the following criteria: 
"(1) Those ten institutions of higher education designated as 
provided in subsection (e) shall be located in a State with abun-
dant coal reserves.". 
30 use 1316. 
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 806 of such Act is 
amended to read as follows: 
ii AUTHORIZATION OF APPROPRIATIONS 
"SEC. 806. (a) For the ten institutions referred to in the last sen-
tence of section 801(a), there are authorized to be appropriated not 
to exceed $30,000,000 for the fiscal year ending September 30, 1979 
(including the cost of construction, equipment, and startup expenses), 
and not to exceed $7,500,000 for the fiscal year 1980 and for each fiscal 
year thereafter through the fiscal year ending before October 1,1984, 
to carry out the provisions of this title. 
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3167 
"(b) For the three remaining institutions referred to in the last 
sentence of section 801 (a), there are authorized to be appropriated not 
30 USC 1311. 
to exceed $6,500,000 for the fiscal year 1980 (including the cost of con-
struction, equipment, and startup expenses), and not to exceed 
$2,000,000 for each fiscal year after fiscal year 1980 ending before 
October 1,1984, to carry out the provisions of this title.". 
(c) CONFORMING AMENDMENT.—Title V I I I of such Act is amended 
30 USC 1311. 
by striking out the terms "Administrator" and 
"Administrator, 
E R D A " in each place they appear and substituting "Secretary of 
Energy" in each such place. 
SEC. 605. CONSERVED NATURAL GAS. 
15 USC 717x. 
(a) GENERAL RULE.— (1) For purposes of determining the natural 
gas entitlement of any local distribution company under any curtail-
ment plan, if the Commission revises any base period established under 
such plan, the volumes of natural gas which such local distribution 
company demonstrates— 
(A) were sold by the local distribution company, for a priority 
use immediately before the implementation of conservation meas-
ures, and 
(B) were conserved by reason of the implementation of such 
conservation measures, 
shall be treated by the Commission following such revision as continu-
ing to be used for the priority use referi-ed to in subparagraph (A). 
(2) The Commission shall, by rule, prescribe methods for measure-
ment of volumes of natural gas to which subparagraphs (A) and (B) 
of paragraph (1) apply. 
(b) CONDITIONS, LIMITATIONS, ETC.—Subsection (a) shall not limit 
or otherwise affect any provision of any curtailment plan, or any other 
provision of law or regulation, under which natural gas may be 
diverted or allocated to respond to emergency situations or to protect 
public health, safety, and welfare. 
(c) DEFINITIONS.—For purposes of this section— 
(1) The term "conservation measures" means such energy con-
servation measures, as determined by the Commission, as were 
implemented after the base period established under the curtail-
ment plan in effect on the date of the enactment of this Act. 
(2) The term "local distribution company" means any person 
engaged in the transportation, or local distribution, of natural gas 
and the sale of natural gas for ultimate consumption. 
(3) The term "curtailment plan" means a plan (including any 
modification of such plan required by the Natural Gas Policy Act 
of 1978) in effect under the Natural Gas Act which provides for 
Post, p. 3350. 
recognizing and implementing priorities of service during periods 
15 USC 717w. 
of curtailed deliveries. 
SEC. 
6
0
6
. 
VOLUNTARY CONVERSION OF NATURAL GAS USERS TO 1
5 
USC 7
1
7
y
. 
HEAVY FUEL 
OIL. 
(a) I N GENERAL.— (1) In order to facilitate voluntary conversion of 
facilities from the use of natural gas to the use of heavy petroleum fuel 
oil, the Commission shall, by rule, provide a procedure for the approval 
by the Commission of any transfer to any person described m para-
graj)h 2(B) (i), (ii), or (iii) of contractual interests involving the 
receipt of natural gas described in paragraph 2 (A). 
(2) (A) The rule required under paragraph (1) shall apply to— 
(i) natural gas— 
'I) received by the user pursuant to a contract entered into 
fore September 1,1977^ not including any renewal or exten-
befc 
92 STAT. 3168 
PUBLIC LAW 95-617—NOV. 9, 1978 
sion thereof entered into on or after such date other than any 
such extension or renewal pursuant to the exercise by such 
user of an option to extend or renew such contract; 
(II) other than natural gas the sale for resale or the trans-
portation of which was subject to the jurisdiction of the Fed-
15 use 717w, 
eral Power Commission under the Natural Gas Act as of 
September 1, 1977; 
(III) which was used as a fuel in any facility in existence 
on September 1,1977. 
(ii) natural gas subject to a prohibition order issued under 
section 607. 
(B) The rule required under paragraph (1) shall permit the transfer 
of contractual interests— 
(i) to any interstate pipeline; 
(ii) to any local distribution company served by an interstate 
pipeline; and 
(iii) to any person served by an interstate pipeline for a high 
priority use by such person. 
(3) The rule required under paragraph (1) shall provide that any 
transfer of contractual interests pursuant to such rule shall be under 
such terms and conditions as the Commission may prescribe. Such rule 
shall include a requirement for refund of any consideration, received by 
the person transferring contractual interests pursuant to such rule, to 
the extent such consideration exceeds the amount by which the costs 
actually incurred, during the remainder of the period of the contract 
with respect to which such contractual interests are transferred, in 
direct association with the use of heavy petroleum fuel oil as a fuel 
in the applicable facility exceeds the price under such contract foi-
natural gas, subject to such contract, delivered during such period. 
(4) In prescribing the rule required under paragraph (1), and in 
determining whether to approve any transfer of contractual interests, 
the Commission shall consider whether such transfer of contractual 
interests is likely to increase demand for imported refined petroleum 
products. 
(b) COMMISSION APPROVAL.—(1) No transfer of contractual inter-
ests authorized by the rule required under subsection (a)(1) may take 
effect unless the Commission issues a certificate of public convenience 
and necessity for such transfer if such natural gas is to be resold by 
the person to whom such contractual interests are to be transferred. 
Such certificate shall be issued by the Commission in accordance with 
the requirements of this subsection and those of section 7 of the Natural 
15 use 717f. 
Gas Act, and the provisions of such Act applicable to the determina-
tion of satisfaction of the public convenience and necessity require-
ments of such section. 
(2) The rule required under subsection (a)(1) shall set forth guide-
lines for the application on a regional or national basis (as the Commis-
' 
sion determines appropriate) of the criteria specified in subsection 
(e) (2) and (3) to determine the maximum consideration permitted 
as just compensation under this section. 
(c) RESTRICTIONS ON TRANSFERS UNENFORCEABLE,—Any provision 
of any contract, which provision prohibits any transfer of any con-
tractual interests thereunder, or any commingling or transportation 
of natural gas subject to such contract with natural gas the sale for 
resale or transportation of which is subject to the jurisdiction of the 
Commission under the Natural Gas Act, or terminates such contract 
on the basis of any such transfer, commingling, or transportation, shall 
be unenforceable in any court of the United States and in any court 
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3169 
of any State if applied with respect to any transfer approved under 
the rule required under subsection (a)(1). 
(d) CONTRACTUAL OBLIGATIONS UNAFFECTED.—The person acquiring 
contractual interests transferred pursuant to the rule required under 
subsection (a) (1) shall assume the contractual obligations which the 
person transferring such contractual interests has under such contract. 
This section shall not relieve the person transferring such contractual 
interests from any contractual obligation of such person under such 
contract if such obligation is not performed by the person acquiring 
such contractual interests. 
(e) DEFINITIONS.—For purposes of this section— 
(1) The term "natural gas" has the same meaning as provided 
by section 2 (5) of the Natural Gas Act. 
15 USC 717a. 
(2) The term "just compensation", when used with respect to 
any contractual interests pursuant to the rule required under sub-
section (a)(1), means the maximum amount of, or method of 
determining, consideration which does not exceed the amount by 
which— 
''''''-
(A) the reasonable costs (not including capital costs) 
incurred, during the remainder of the period of the contract 
with respect to which contractual interests are transferred 
pursuant to the rule required under subsection (a)(1), in 
direct association with the use of heavy petroleum fuel oil as 
a fuel in the applicable facility, exceeds 
(B) the price under such contract for natural gas, subject 
to such contract, delivered during such period. 
For purpoi:es of subparagraph (A), the reasonable costs directly 
associated with the use of heavy petroleum fuel oil as a fuel shall 
include an allowance for the amortization, over the remaining 
useful life, of the undepreciated value of depreciable assets located 
on the premises containing such facility, which assets were directly 
associated with the use of natural gas and are not usable in connec-
tion with the use of such heavy petroleum fuel oil. 
(3) The term "just compensation", when used with respect to 
any intrastate pipeline which would have transported or distrib-
uted natural gas with respect to which contractual interests are 
transferred pursuant to the rule required under subsection (a)(1), 
means an amount equal to any loss of revenue, during the remain-
ing period of the contract with respect to which contractual inter-
ests are transferred pursuant to the rule required under subsection 
(a) (1), to the extent such loss— 
(A) is directly incurred by reason of the discontinuation 
of the transportation or distribution of natural gas resulting 
from the transfer of contractual interests pursuant to the rule 
required under subsection (a) (1); and 
(B) is not offset by— 
(i) a reduction in expenses associated with such discon-
tinuation; and 
(ii) revenues derived from other transportation or dis-
tribution which would not have occurred if such con-
tractual interests had not been transferred. 
(4) The term "contractual interests" means the right to receive 
natural gas under contract as affected by an applicable curtail-
ment plan filed with the Commission or the appropriate State 
regulatory authority. 
(5) The term "interstate pipeline" means any person engaged 
in natural gas transportation subject to the jurisdiction of the 
Commission under the Natural Gas Act. 
15 usc 717w. 
92 STAT. 3170 
PUBLIC LAW 95-617—NOV. 9, 1978 
(6) The term "high-priority use" means any use of natural 
gas (other than its use for the generation of steam for indus-
trial purposes or electricity) identified by the Commission as a 
high priority use for which the Commission determines a substi-
tute fuel is not reasonably available. 
(7) The term "heavy petroleum fuel oil" means number 4, 5, 
or 6 fuel oil which is domestically refined. 
(8) The term "local distribution company" means any person, 
other than any intrastate pipeline or any interstate pipeline, 
engaged in the transportation, or local distribution, of natural 
gas and the sale of natural gas for ultimate consumption. 
(9) The term "intrastate pipeline" means any person engaged 
in natural gas transportation (not including gathering) which is 
i, 
not subject to the jurisdiction of the Commission under the Nat-
ural Gas Act. 
(10) The term "facility" means any electric powerplant, or 
major fuel burning installation, as such terms are defined in the 
Post, p. 3289. 
Powerplant and Industrial Fuel Use Act of 1978. 
(11) The term "curtailment plan" means a plan (including 
any modification of such plan required by the Natural Gas Policy 
Act of 1978), in effect under the Natural Gas Act or State law, 
which provides for recognizing and implementing priorities of 
service during periods of curtailed deliveries by any local dis-
tribution company, intrastate pipeline, or interstate pipeline. 
(12) The term "interstate commerce" has the same meaning as 
15 use 717w. 
such term has under the Natural Gas Act. 
(f) CooRDiNATTox W T T H THE NATTTRAI. GAS ACT.—(1) Considera-
tion in any transfer of contractual interests pursuant to the rule 
required under subsection (a) (1) of this section shall be deemed iust 
15 use 717c, 
and reasonable for pumoses of sections 4 and 5 of the Natural Gas Act 
717d. 
if such consideration does not exceed just compensation. 
(2) No person shall be subject to the jurisdiction of the Commis-
15 use 717w. 
sion under the Natural Gas Act as a natural gas-company (within 
the meaning of such Act) or to regulation as a common carrier under 
any provision of Federal or State law solely by reason of making; 
any sale, or engaging in any transportation, of natural gas with 
respect to which contractual interests are transferred pursuant to the 
rule reouired under subsection (a) 
(\). 
(3) Nothing in this section shall exempt from the jurisdiction of 
the Commission under the Natural Gas Act any transportation in 
interstate commerce of natural gas, any sale in interstate commerce 
for resale of natural eras, or any person engaged in such transporta-
tion or such sale to the extent such transportation, sale, or person is 
subject to the jurisdiction of the Commission under such Act without 
regard to the transfer of contractual interests pursuant to the rule 
reouired under subpection fa) (1). 
(4) Nothinn^ in this section shall exempt any person from any obli-
gation to obtain a certificate of public convenience and necessity for 
the sale in interstate commerce for resale or the transportation in 
interstate commerce of natural gas with respect to which contractual 
interests are transferred pursuant to the rule required under subsection 
( a ) ( 1 ) . 
(g) VoLTTME LIMITATION.—No supplier of natural gas under any 
contract, with respect to which contractual interests have been trans-
ferred pursuant to the rule required under subsection (a) (1), shall be 
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3171 
required to supply natural gas during any relevant period in volume 
amounts which exceed the lesser of— 
(1) the volume determined by reference to the maximum 
delivery obligations specified in sucn contract; 
(2) the volume vs^hich such supplier would have been required 
to supply, under the curtailment plan in effect for such supplier, 
to the person, who transferred contractual interests pursuant to 
the rule required under subsection (a) (1), if no such transfer had 
occurred; and 
(3) the volume actually delivered or for which payment would 
have been made pursuant to such contract during the 12-calendar-
month period ending immediately before such transfer of con-
tractual interests. 
SEC. 637. EMERGENCY CONVERSION OF UTILITIES AND OTHER 15 USC 717z. 
FACILITIES. 
(a) 
PRESIDENTIAL DECLARATION.—The President may declare a 
natural gas supply emergency (or extend a previously declared emer-
gency) if he finds that— 
' ''-
(1) a severe natural ^as shortage, endangering the supply of 
natural gas for high-priority uses, exists or is imminent m the 
United States or in any region thereof; and 
(2) the exercise of authorities under this section is reasonably 
necessary, having exhausted other alternatives (not including 
section 303 of the Natural Gas Policy Act of 1978) to the maxi- Post, p. 3383. 
mum extent practicable, to assist in meeting natural gas require-
ments for such high-priority uses. 
(b) LIMITATION.—(1) Any declaration of a natural gas supply 
emergency (or extension thereof) under subsection (a), shall termi-
nate at the earlier of— 
(A) the date on which the President finds that any shortage 
described in subsection (a) does not exist or is not imminent; or 
(B) 120 days after the date of such declaration of emergency 
(or extension thereof). 
(2) Nothing in this subsection shall prohibit the President from 
extending, under subsection (a), any emergency (or extension thereof) 
previously declared under subsection (a), upon the expiration of sucn 
declaration of emergency (or extension thereof) under paragraph (1) 
(c) PROHIBITIONS.—During a natural gas emergency declared under 
this section, the President may, by order, prohibit the burning of 
natural gas by any electric powerplant or major fuel-burning installa-
tion if the President determines that— 
: 
(1) such powerplant or installation had on September 1, 1977 
(or at any time thereafter) the capability to bum petroleum prod-
ucts without damage to its facilities or equipment and without 
interference with operational requirements; 
(2) significant quantities of natural gas which would otherwise 
be burned by such powerplant or installation could be made avail-
able before the termination of such emergency to any person 
served by an interstate pipeline for use by such person in a high-
priority use; and 
(3) petroleum products will be available for use by such power-
plant or installation throughout the period the order is in effect. 
92 STAT. 3172 
PUBLIC LAW 95-617—NOV. 9, 1978 
(d) LIMITATIONS.—The President may specify in any order issued 
under this section the periods of time during which such order will be 
in effect and the quantity (or rate of use) of natural gas that may be 
burned by an electric powerplant or major fuel-burning installation 
during such period, including the burning of natural gas by an electric 
powerplant to meet peak load requirements. No such order may con-
tinue in effect after the termination or expiration of such natural gas 
supply emergency. 
(e) EXEMPTION FOR SECONDARY USES.—The President shall exempt 
from any order issued under this section the burning of natural gas for 
the necessary processes of ignition, startup, testing, and flame stabiliza-
tion by an electric powerplant or major fuel-burning installation. 
(f) 
EXEMPTION FOR AIR-QUALITY EMERGENCIES.—The President 
shall exempt any electric powerplant or major fuel-burning installa-
tion in whole or in part, from any order issued under this section for 
such period and to such extent as the President determines necessary to 
alleviate any imminent and substantial endangerment to the health of 
42 use 
persons within the meaning of section 303 of the Clean Air Act. 
1857h-l. 
(g) LIMITATION ON INJUNCTIVE RELIEF.—(1) Except as provided in 
paragraph (2), no court shall have jurisdiction to grant any injunctive 
relief to stay or defer the implementation of any order issued under 
this section unless such relief is in connection with a final judgment 
entered with respect to such order. 
(2) (A) On the petition of any person aggrieved by an order issued 
under this section, the United States District Court for the District of 
Columbia may, after an opportunity for a hearing before such court 
and on an appropriate showing, issue a preliminary injunction tempo-
rarily enjoining, in whole or in part, the implementation of such 
order. 
(B) For purposes of this paragraph, subpenas for witnesses who are 
required to attend the District Court for the District of Columbia may 
be served in any judicial district of the United States, except that no 
writ of subpena under the authority of this section shall issue for 
witnesses outside of the District of Columbia at a greater distance than 
100 miles from the place of holding court unless the permission of the 
District Court for the District of Columbia has been granted after 
proper application and cause shown. 
(h) DEFINITIONS.—For purposes of this section— 
(1) The terms "electric powerplant", "powerplant", "major 
fuel-burning installation", and "installation" shall have the same 
meanings as such terms have under section 103 of the Powerplant 
Post, p. 3292. 
and Industrial Fuel Use Act of 1978. 
(2) The term "petroleum products" means crude oil, or any 
product derived from crude oil other than propane. 
(3) The term "high priority use" means any— 
(A) use of natural gas in a residence; 
(B) use of natural gas in a commercial establishment in 
amounts less than 50 Mcf on a peak day; or 
(C) any use of natural gas the curtailment of which the 
President determines would endanger life, health, or main-
tenance of physical property. 
(4) The term "Mcf", when used with respect to natural gas, 
means 1,000 cubic feet of natural gas measured at a pressure of 
14.73 pounds per square inch (absolute) and a temperature of 
60 degrees Fahrenheit. 
PUBLIC LAW 95-617—NOV. 9, 1978 
92 STAT. 3173 
(i) USE OF CERTAIN TERMS.—In applying the provisions of 
this section in the case of natural gas subject to a prohibition order 
issued under this section, the term "petroleum products" (as 
defined in subsection (h) (2) of this section) shall be substituted 
for the term "heavy petroleum fuel oil" (as defined in section 
606(e) (7)) if the person subject to any order under this section 
demonstrates to the Commission that the acquisition and use of 
heavy petroleum fuel oil is not technically or economically 
feasible. 
SEC. 608. NATURAL GAS TRANSPORTATION POLICIES. 
(a) I N GENERAL.—Section 7(c) of the Natural Gas Act (15 U.S.C. 
717f (c)) is amended by adding at the end thereof the following: 
"(2) The Commission may issue a certificate of public convenience 
and necessity to a natural-gas company for the transportation in inter-
state commerce of natural gas used by any person for one or more 
high-priority uses, as defined, by rule, by the Commission, in the 
case of— 
^ 
"(A) natural gas sold by the producer to such person; and 
"(B) natural gas produced by such person.". 
(b) CONFORMING AMENDMENT.—(1^ Subsection (c) of section 7 of 
the Natural Gas Act (15 U.S.C. 7l7f (c)) is amended— 
(A) by striking out "(c)" and inserting in lieu thereof "(c) 
(l)(A)",and 
(B) by inserting "(B)" immediately before "In all other cases" 
where such term appears in the second undesignated paragraph 
of such subsection. 
(2) Subsection (e) of section 7 of the Natural Gas Act (15 U.S.C. 
7l7f (d)) is amended by striking out "subsection (c)" and inserting in 
lieu thereof "subsection (c) (1)". 
Approved November 9, 1978. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 95-429 (Coram, on Ways and Means), No. 95-543, Vols. I and 
II, accompanying H.R. 8444 (ad hoc Comm. on Energy), and No. 
95-1750 (Comm. of Conference). 
SENATE REPORTS: No. 95-442 accompanying S. 2114 (Comm. on Energy and 
Natural Resources) and No. 95-1292 (Comm. of Conference). 
CONGRESSIONAL RECORD: 
Vol. 123 (1977): July 18, H.R. 4018 considered and passed House. 
Aug. 1-5, H.R. 8444 considered and passed House. 
Oct. 5, S. 2114 considered in Senate. 
Oct. 6, H.R. 4018 considered and passed Senate, amended, in 
lieu of S. 2114 and pt. 5 of title I of H.R. 8444. 
Oct. 13, House concurred in Senate amendment with an 
amendment. 
Vol. 124 (1978): Oct. 9, Senate agreed to conference report. 
Oct. 15, House agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS: 
Vol. 14, No. 45 (1978): Nov. 9, Presidential statement.