Energy Policy Act of 1992
PL 102-486 (H.R.776), enacted 10/24/1992

106 STAT. 2776 
PUBLIC LAW 102-486—OCT. 24, 1992 
Public Law 102-486 
102d Congress 
An Act 
Oct. 24, 1992 
[H.R. 776] 
To provide for improved energy efficiency. 
Be it enacted by the Senate and House of Representatives 
of 
Energy Policy 
the United States of America in Congress assembled. 
Act of 1992 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
42 use 13201 
(a) SHORT TITLE.—This Act may be cited as the "Energy Policy 
"ote. 
Act of 1992". 
(b) TABLE OF CONTENTS.— 
TITLE I—ENERGY EFFICIENCY 
Subtitle A—Buildings 
Sec. 101. Building energy efficiency standards. 
Sec. 102. Residential ener^ efficiency rating. 
Sec. 103. Ener^ efficient ughting and building centers. 
Sec. 104. Manufactured housing energy efficiency. 
Sec. 105. Energy efficient mortgages. 
Sec. 106. Energy efficient mortgages pilot program. 
> 
Subtitle B—Utilities 
Sec. 111. Encouragement of investments in conservation and energy efficiency by 
electric utilities. 
Sec. 112. Energy efficiency grants to State regulatory authorities. 
Sec. 113. Tennessee Valley Authority least-cost planning program. 
Sec. 114. Amendment of Hoover Power Plant Act. 
Sec. 115. Encouragement of investments in conservation and energy efficiency by 
gas utilities. 
Subtitle C—^Appliance and Equipment Energy Efficiency Standards 
Sec. 121. Energy efficiency labeling for windows and window systems. 
Sec. 122. Energy conservation requirements for certain commercial and industrial 
equipment. 
Sec. 123. Energy conservation requirements for certain lamps and plumbing prod-
ucts. 
Sec. 124. High-intensity discharge lamps, distribution transformers, and small elec-
tric motors. 
Sec. 125. Energy efficiency information for commercial office equipment. 
Sec. 126. Energy efficiency information for luminaires. 
Sec. 127. Report on the potential of cooperative advanced appliance development. 
Sec. 128. Evaluation of utility early replacement programs for appliances. 
Subtitle D—Industrial 
Sec. 131. Energy efficiency in industrial facilities. 
Sec. 132. Process-oriented industrial energy efficiency. 
— 
Sec. 133. Industrial insulation and audit guidelines. 
Subtitle E—State and Local Assistance 
Sec. 141. Amendments to State energy conservation program. 
Sec. 142. Amendments to low-income weatherization program. 
Sec. 143. Energy Extension Service program. 
Subtitle F—Federal Agency Energy Management 
Sec. 151. Definitions. 
Sec. 152. Federal energy management amendments. 
I 
Sec. 153. Creneral Services Administration Federal Buildings Fund. 
Sec. 154. Report by General Services Administration. 
Sec. 155. Energy savings performance contracts. 
69-139 O - 92 (486) 
. PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2777 
Sec. 156. Intergovernmental energy management planning and coordination. 
Sec. 157. Federal agency energy management training. 
Sec. 158. Energy audit teams. 
Sec. 159. Federal energy cost accounting and management. 
Sec. 160. Inspector General review and agency accountability. 
Sec. 161. PrcKmrement and identification of energy efficient products. 
Sec. 162. Federal energy efficiency funding study. 
Sec. 163. United States Postal Service energy regulations. 
Sec. 164. United States Postal Service building energy survey and report. 
Sec. 165. United States Postal Service energy management report. 
Sec. 166. Energy management requirements for the United States Postal Service. 
Sec. 167. Government contract incentives. 
Sec. 168. Energy management requirements for congressional buildings. 
Subtitle G—^Miscellaneous 
Sec. 171. Energy information. 
Sec. 172. District heating and cooling programs. 
Sec. 173. Study and report on vibration reduction technologies. 
TITLE II—NATURAL GAS 
Sec. 201. Fewer restrictions on certain natural gas imports and exports. 
Sec. 202. Sense of Congress. 
TITLE III—ALTERNATIVE FUELS—GENERAL 
Sec. 301. Definitions. 
Sec. 302. Amendments to the Energy Policy and Conservation Act. 
Sec. 303. Minimum Federal fleet requirement. 
Sec. 304. Refueling. 
Sec. 305. Federal agency promotion, education, and coordination. 
Sec. 306. Agency incentives program. 
Sec. 307. Recognition and incentive awards program. 
Sec. 308. Measurement of alternative fuel use. 
Sec. 309. Information collection. 
Sec. 310. General Services Administration report. 
Sec. 311. United States Postal Service. 
TITLE IV—ALTERNATIVE FUELS—NON-FEDERAL PROGRAMS 
Sec. 401. Truck commercial application program. 
Sec. 402. Conforming amendments. 
Sec. 403. Alternative motor fuels amendments. 
Sec. 404. Vehicular natviral gas jurisdiction. 
Sec. 405. Public information program. 
Sec. 406. Labeling requirements. 
Sec. 407. Data acquisition program. 
Sec. 408. Federal Energy Regulatory Commission authority to approve recovery of 
certain expenses in advance. 
Sec. 409. State and local incentives programs. 
Sec. 410. Alternative fuel bus program. 
Sec. 411. Certification of training programs. 
Sec. 412. Alternative fuel use in nonroad vehicles and engines. 
Sec. 413. Reports to Congress. 
Sec. 414. Low interest loan program. 
TITLE V—AVAILABIUTY AND USE OF REPLACEMENT FUELS, 
ALTERNATIVE FUELS, AND ALTERNATIVE FUELED PRIVATE VEHICLES 
Sec. 501. Mandate for alternative fuel providers. 
Sec. 502. Replacement fuel supply and demand program. 
Sec. 503. Replacement fuel demand estimates and supply information. 
Sec. 504. Modification of goals; additional rulemaking authority. 
Sec. 505. Voluntary suppfy commitments. 
Sec. 506. Technical and policy analysis. 
Sec. 507. Fleet requirement program. 
Sec. 508. Credits. 
Sec. 509. Secretary's recommendations to Congress. 
Sec. 510. Effect on other laws. 
Sec. 511. Prohibited acts. 
Sec. 512. Enforcement. 
Sec. 513. Powers of the Secretary. 
Sec. 514. Authorization of appropriations. 
TITLE VI—ELECTRIC MOTOR VEfflCLES 
Sec. 601. Definitions. 
106 STAT. 2778 
PUBLIC LAW 102-486—OCT. 24, 1992 • 
Subtitle A—^Electric Motor Vehicle Clommercial Demonstration Program 
Sec. 611. Program and solicitation. 
Sec. 612. Selection of proposals. 
Sec. 613. Discount payments. 
Sec. 614. Cost-shanng. 
Sec. 615. Reports to Congress. 
Sec. 616. Authorization of appropriations. 
Subtitle B—^Electric Motor Vehicle Infrastructure and Support Systems 
Development Program 
Sec. 621. General authority. 
.,s. ? -
Sec. 622. Proposals. 
Sec. 623. Protection of i>roprietaiy information. 
Sec. 624. Compliance with existing law. 
Sec. 625. Electric utility participation study. 
Sec. 626. Authorization of appropriations. 
TITLE VII—ELECTRICiry 
Subtitle A—^Exempt Wholesale Generators 
Sec. 711. Public Utility Holding Company Act reform. 
Sec. 712. State consideration of the effects of power purchases on utility cost of cap-
ital; consideration of the effects of leveraged capital structures on the 
reliability of wholesale power sellers; and consideration of adequate fbel 
supplies. 
Sec. 713. Public utility holding companies to own interests in cogeneration facili-
ties. 
Sec. 714. Books and records. 
Sec. 715. Investment in foreign utilities. 
Subtitle B—^Federal Power Act; Interstate Commerce in Electricity 
Sec. 721. Amendments to section 211 of Federal Power Act. 
Sec. 722. Transmission services. 
Sec. 723. Information requirements. 
Sec. 724. Sales by exempt wholesale generators. 
Sec. 725. Penalties. 
Sec. 726. Definitions. 
Subtitle C—State and Local Authorities 
Sec. 731. State authorities. 
TITLE Vin—IflGH-LEVEL RADIOACTIVE WASTE 
Sec. 801. Nuclear waste disposal. 
Sec. 802. Office of the Nuclear Waste Negotiator. 
Sec. 803. Nuclear Waste Management Plan. 
TITLE K—UNITED STATES ENRICHMENT CORPORATION 
Sec. 901. Establishmentof the United States Enrichment Corporation. 
Sec. 902. Conforming amendments and repealers. 
Sec. 903. Restrictions on nuclear exports. 
Sec. 904. Severability. 
TITLE X—REMEDIAL ACTION AND URANIUM REVITALIZATION 
Subtitle A—^Remedial Action at Active Processing Sites 
Sec. 1001. Remedial action program. 
Sec. 1002. Regulations. 
Sec. 1003. Authorization of appropriations. 
Sec. 1004. Definitions. 
Subtitle B—^Uranium Revitalization 
Sec. 1011. Overfeed program. 
Sec. 1012. National Strategic Uranium Reserve. 
Sec. 1013. Saleof remaining DOE inventories. 
Sec. 1014. Responsibility for the industiy. 
Sec. 1015. Annual uramum purchase reports. 
Sec. 1016. Uranium inventory study. 
Sec. 1017. Regulatory treatment of uranium purchases. 
Sec. 1018. Definitions. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2779 
Subtitle C—^Remedial Action at Inactive Processing Sites 
Sec. 1031. Uraniiun Mill Tailings Radiation Control Act extension. 
TITLE XI—URANIUM ENRICHMENT HEALTH, SAFETY, AND ENVIRONMENT 
ISSUES 
Sec. 1101. Uranium enrichment health, safety, and environment issues. 
Sec. 1102. Licensing of AVLIS. 
Sec. 1103. Table of contents. 
TITLE XII—RENEWABLE ENERGY 
Sec. 1201. Purposes. 
Sec. 1202. Demonstration and commercial application projects for renewable energy 
and energy eCEiciency technologies. 
Sec. 1203. Renewable energy export technology training. 
Sec. 1204. Renewable energy advancement awards. 
Sec. 1205. Study of tax andrate treatment of renewable energy projects. 
Sec. 1206. Study of rice milling energy by-product marketing. 
Sec. 1207. Duties of interagency worung group on renewable energy and energy ef-
ficient^ exporte. 
Sec. 1208. Study of export promotion practices. 
Sec. 1209. Data system and energy technology evaluation. 
Sec. 1210. Outreach. 
Sec. 1211. Innovative renewable e n e i ^ technology transfer program. 
Sec. 1212. Renewable energy production incentive. 
TITLE XIII—COAL 
Subtitle A—Research, Development, Demonstration, and Commercial Application 
Sec. 1301. Coal research, development, demonstration, and commercial application 
programs. 
Sec. 1302. Coal-nred diesel engines. 
Sec. 1303. Clean coal, waste-to-energy. 
Sec. 1304. Nonfuel use of coal. 
Sec. 1305. Coal refinery program. 
Sec. 1306. Coalbed methane recovery. 
Sec. 1307. Metallurgical coal development. 
Sec. 1308. Utilization of coal wastes. 
Sec. 1309. Underground coal gasification. 
Sec. 1310. Low-rank coal research and development. 
Sec. 1311. Magnetohydrodynamics. 
Sec. 1312. Oil substitution through coal liquefaction. 
Sec. 1313. Authorization of appropriations. 
Subtitle B—Clean Coal Technology Program 
Sec. 1321. Additional clean coal technology solicitations. 
Subtitle C—Other Coal Provisions 
Sec. 1331. Clean coal technolo^ export promotion and interagency coordination. 
Sec. 1332. Innovative clean coal technology transfer program. 
Sec. 1333. Conventional coal technology transfer. 
Sec. 1334. Study of utilization of coal combustion byproducts. 
Sec. 1335. Calculation of avoided cost. 
Sec. 1336. Coal fiiel mixtures. 
Sec. 1337. National clearinghouse. 
Sec. 1338. Coal exports. 
Sec. 1339. Ownership of coalbed methane. 
Sec. 1340. Establishment of data base and study of transportation rates. 
Sec. 1341. Authorization of appropriations. 
TITLE XIV-STRATEGIC PETROLEUM RESERVE 
Sec. 1401. Drawdown and distribution of the reserve. 
Sec. 1402. Expansion of reserve. 
Sec. 1403. Availabili^ of fimding for leasing. 
Sec. 1404. Purchase from stripper well properties. 
Sec. 1405. Redesignation of island States. 
Sec. 1406. Insular areas study. 
TITLE XV—OCTANE DISPLAY AND DISCLOSURE 
Sec. 1501. Certification and posting of automotive fiiel ratings. 
106 STAT. 2780 
PUBLIC LAW 102-486—OCT. 24, 1992 
Sec. 1502. Increased authority for enforcement. 
Sec. 1503. Studies. 
TITLE XVI—GLOBAL CUMATE CHANGE 
Sec. 1601. Report. 
Sec. 1602. Least-cost energy strategy. 
Sec. 1603. Director of Climate Protection. 
Sec. 1604. Assessment of alternative policy mechanisms for addressing greenhouse 
gas emissions. 
Sec. 1605. National inventory and volimtary reporting of greenhouse gases. 
Sec. 1606. Repeal. 
Sec. 1607. Conforming amendment. 
Sec. 1608. Innovative environmental technology transfer program. 
Sec. 1609. Global climate change response fund. 
TITLE XVII—ADDITIONAL FEDERAL POWER ACT PROVISIONS 
Sec. 1701. Additional Federal Power Act provisions. 
TITLE XVIII—OIL PIPELINE REGULATORY REFORM 
Sec. 1801. Oil pipeline ratemaking methodology. 
Sec. 1802. Streamlining of Commission procedures. 
Sec. 1803. Protection of certain existing rates. 
Sec. 1804. Definitions. 
TITLE XX—GENERAL PROVISIONS; REDUCTION OF OIL VULNERABILITY 
Sec. 2001. Goals. 
Subtitle A—Oil and Gas Supply Enhancement 
Sec. 2011. Enhanced oil recovery. 
Sec. 2012. Oil shale. 
Sec. 2013. Natural gas supply. 
Sec. 2014. Natural gas end-use technologies. 
Sec. 2015. Midcontinent Energy Research Center. 
Subtitle B—Oil and Gas Demand Reduction and Substitution 
Sec. 2021. General transportation. 
Sec. 2022. Advanced automotive fuel economy. 
Sec. 2023. Alternative fuel vehicle program. 
Sec. 2024. Biofuels user facility. 
Sec. 2025. Electric motor vehicles and associated equipment research and develop-
ment. 
Sec. 2026. Renewable hydrogen energy. 
Sec. 2027. Advanced diesel emissions program. 
Sec. 2028. Telecommuting study. 
TITLE XXI—ENERGY AND ENVIRONMENT 
Subtitle A—Improved Energy Efficiency 
Sec. 2101. General improved enei^gy efficiency. 
Sec. 2102. Natural gas and electric heating and cooling technologies. 
Sec. 2103. Pulp anapaper. 
Sec. 2104. Advanced buildings for 2005. 
Sec. 2105. Electric drives. 
Sec. 2106. Steel, aluminum, and metal research. 
Sec. 2107. Improving efficiency in energy-intensive industries. 
Sec. 2108. Energy efficient environmental program. 
Subtitle B—^Electricity Generation and Use 
Sec. 2111. Renewable energy. 
Sec. 2112. High efficiency heat engines. 
Sec. 2113. Civilian nuclear waste. 
Sec. 2114. Fusion energy. 
Sec. 2115. Fuel cells. 
Sec. 2116. Environmental restoration and waste management program. 
Sec. 2117. High-temperature superconductivity program. 
Sec. 2118. Electric and magnetic fields research and public information dissemina-
tion pronam. 
Sec. 2119. Spark M. Matsunaga Renewable Energy and Ocean Technology Center. 
Subtitle C—^Advanced Nuclear Reactors 
Sec. 2121. Purposes and definitions. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2781 
Sec. 2122. Program, goals, and plan. 
Sec. 2123. Commercialization or advanced light water reactor technology. 
Sec. 2124. Prototype demonstration of advanced nudear reactor technology. 
Sec. 2125. Repeab. 
Sec. 2126. Authorization of appropriations. 
TITLE XXU—ENERGY AND ECONOMIC GROWTH 
Sec. 2201. National advanced materials initiative. 
Sec. 2202. National advanced manufiBctttring technologiee initiative. 
Sec. 2203. Supporting research and technictu analysis. 
Sec. 2204. Math and science education proeram. 
Sec. 2206. Integration of research and oevelopment. 
Sec. 2206. Definitions. 
TITLE XXm—POUCY AND ADMINISTRATIVE PROVISIONS 
Sec. 2301. Policy on miyor construction projects. 
Sec. 2302. Energy research, development, demonstration, and ootmnerdal applica-
tion advisory board. 
Sec. 2303. Amendments to existing law. 
Sec. 2304. Management plan. 
Sec. 2305. Costs related to decommissioning and the storage and disposal of nu-
clear waste. 
Sec. 2306. Limits on participation by companies. 
Sec. 2307. Uncosted obligations. 
TITLE XXIV—NON-FEDERAL POWER ACT HYDROPOWER t>ROVISIONS 
Sec. 2401. Rights-of-way on certain Federal lands. 
Sec. 2402. Dams in national park swstem units. 
Sec. 2403. Third party contracting by FERC. 
Sec. 2404. Improvement at existing Federal facilities. 
Sec. 2405. Water conservation ana energy production. 
Sec. 2406. Federal projects in the Pacific Northwest. 
Sec. 2407. Certain projects in Alaska. 
Sec. 2408. Projects on 
firesh 
waters in State of Hawaii. 
Sec. 2409. Evaluation of development potential. 
TITLE XXV—COAL. OIL, AND GAb 
Sec. 2501. Hot dry rock geothermal energy. 
Sec. 2502. Hot diy rock geothermal energy in eastern United States. 
Sec. 2503. Coal remining. 
Sec. 2504. Surface Mining Act implementation. 
Sec. 2505. Federal lignite coal rovalties. 
Sec. 2506. Acquired Federal land mineral receipts management. 
Sec. 2507. Reserved oil and gas. 
Sec. 2508. Certain outstanding oil and gas. 
Sec. 2509. Federal onshore oil and gas basing. 
Sec. 2510. Oil placer claims. 
Sec. 2511. Oil shale claims. 
Sec. 2512. Health, safety, and mining technology research program. 
Sec. 2513. Assistance to small coal operators. 
Sec. 2514. Surface mining regulations. 
Sec. 2515. Amendment to Surface Mining Act. 
TITLE XXVI—INDIAN ENERGY RESOURCES 
Sec. 2601. Definitions. 
Sec. 2602. Tribal consultation. 
Sec. 2603. Promoting energy resource development and energy vertical integration 
on Indian reservations. 
Sec. 2604. Indian energy resource regulation. 
Sec. 2605. Indian Energy Resource Commission. 
Sec. 2606. Tribal government energy assistance program. 
TITLE XXVn—INSULAR AREAS ENERGY SECURITY 
Sec. 2701. Insular areas energy assistance program. 
Sec. 2702. Definition. 
Sec. 2703. Electricity requirements in Trust Territory of the Pacific Islands. 
Sec. 2704. PCB cleanup m Marshall Islands and Federated States of Micronesia. 
TITLE XXVni—NUCLEAR PLANT UCENSING 
Sec. 2801. Combined licenses. 
106 STAT. 2782 
PUBLIC LAW 102-486—OCT. 24,1992 
Sec. 2802. Post-construction hearings on combined licenses. 
Sec. 2803. Rulemaking. 
Sec. 2804. Amendment of a combined license pending a hearing. 
Sec. 2805. Judicial review. 
Sec. 2806. Effect on pending proceedings. 
Sec. 2807. Conforming amendment. 
TITLE XXK—ADDITIONAL NUCLEAR ENERGY PROVISIONS 
Sec. 2901. State authority to regulate radiation below level of NRC regulatory con-
cern. 
Sec. 2902. Employee protection for nuclear whistleblowers. 
Sec. 2903. Exemption of certain research and educational licensees from annual 
charges. 
Sec. 2904. Study and implementation plan on safety of shipments of plutonium by 
sea. 
TITLE XXX—MISCELLANEOUS 
Subtitle A—General Provisions 
Sec. 3001. Research, development, demonstration, and commercial application ac-
tivities. 
Sec. 3002. Cost sharing. 
Subtitle B—Other Miscellaneous Provisions 
Sec. 3011. Powerplant and Industrial Fuel Use Act of 1978 repeal. 
Sec. 3012. Alaska Natural Gas Transportation Act of 1976 repeal. 
Sec. 3013. Geothermal heat pumps. 
Sec. 3014. Use of energy futures for fuel purchases. 
Sec. 3015. Energy subsidy study. 
Sec. 3016. Tar sands. 
Sec. 3017. Amendments to title 11 of the United States Code. 
Sec. 3018. Radiation exposure compensation. 
Sec. 3019. Strategic diversification. 
Sec. 3020. Consultative Commission on Western Hemisphere Energy and Environ-
ment. 
Sec. 3021. Disadvantaged business enterprises. 
42 use 13201. 
SEC. 2. DEFINITION. 
For purposes of this Act, the term "Secretary" means the Sec-
retary of Energy. 
TITLE I—ENERGY EFFICIENCY 
Subtitle A—^Buildings 
SEC. 101. BUILDING ENERGY EFFICIENCY STANDARDS. 
(a) IN GENERAL.—^Title III of the Ener^ Conservation and 
Production Act (42 U.S.C, 6831 et seq.) is amended— 
42 use 6832. 
(1) in section 303— 
(A) by striking paragraph (9); 
(B) by redesignating paragraphs (10), (11), (12), and 
(13) as paragraphs (9), (10), (11), and (12), respectively; 
and 
(C) by adding at the end the following 
new 
paragraphs— 
"(13) The term 'Federal building energy standards' means 
energy consumption objectives to be met without specification 
of the methods, materials, or equipment to be employed in 
achieving those objectives, but including statements of the 
requirements, criteria, and evaluation methods to be used, and 
any necessary commentary. 
"(14) The term Voluntary building energy code' means a 
building energy code developed and updated through a consen-
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2783 
sus process among interested persons, such as that used by 
the Council of American Building Officials; the American Soci-
ety of Heating, Refrigerating, and Air-Conditioning Engineers; 
or other appropriate organizations. 
"(15) The term 'CABO' means the Council of American 
Building Officials. 
"(16) The term 'ASHRAE' means the American Society 
of Heating, Refrigerating, and Air-Conditioning Engineers. ; 
and 
(2) by striking sections 304, 306, 308, 309, 310, and 311 
42 use 6833, 
and inserting the following: 
^
^
^
^
' 6837-6840. 
"SEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES. 
42 USC 6833. 
"(a) CONSIDERATION AND DETERMINATION RESPECTING RESIDEN-
TIAL BUILDING ENERGY CODES.—(1) Not later than 2 years after 
the date of the enactment of the Energy Policy Act of 1992, each 
State shall certify to the Secretary that it has reviewed the provi-
sions of its residential building code regarding energy efficiency 
and made a determination as to whether it is appropriate for 
such State to revise such residential building code provisions to 
meet or exceed CABO Model Energy Code, 1992. 
"(2) The determination referred to in paragraph (1) shall be— 
"(A) made after public notice and hearing; 
"(B) in writing; 
"(C) based upon findings included in such determination 
and upon the evidence presented at the hearing; and 
"(D) available to the public. 
"(3) Each State may, to the extent consistent with otherwise 
applicable State law, revise the provisions of its residential building 
code regarding energy efficiency to meet or exceed CABO Model 
Energy Code, 1992, or may decline to make such revisions. 
"(4) If a State makes a determination under paragraph (1) 
that it is not appropriate for such State to revise its residential 
building code, such State shall submit to the Secretary, in writing, 
the reasons for such determination, and such statement shall c^ 
available to the public. 
"(5XA) Whenever CABO Model Energy Code, 1992, (or any 
successor of such code) is revised, the Secretary shall, not later 
than 12 months after such revision, determine whether such revi-
sion would improve energy efficiencv in residential buildings. The 
Secretary shall publish notice of such determination in the Federal 
Register. 
"(B) If the Secretary makes an affirmative determination tinder 
subparagraph (A), each State shall, not later than 2 years after 
the date of the publication of such determination, certify that it 
has reviewed the provisions of its residential building code regard-
ing energy efficiency and made a determination as to whether 
it is appropriate for such State to revise such residential building 
code provisions to meet or exceed the revised code for which the 
Secretary made such determination. 
"(C) Paragraphs (2), (3), and (4) shall apply to any detem^na-
tion made under subparagraph (B). 
"(b) CERTIFICATION OF COMMERCIAL BUILDING ENERGY CODE 
UPDATES.—(1) Not later than 2 years after the date of the enactitient 
of the Energy Policy Act of 1992, each State shall certify to the 
Secretary that it has reviewed and updated the provisions of its 
commercial building code regarding energy efficiency. Such certifi-
106 STAT. 2784 
PUBLIC LAW 102-486—OCT. 24, 1992 
cation shall include a demonstration that such State's code provi-
sions meet or exceed the requirements of ASHRAE Standard 
90 1—1989 
"(2)(A) Whenever the provisions of ASHRAE Standard 90.1-
1989 (or any successor standard) regarding energy efficiencv in 
commercial Duildings are revised, the Secretary shall, not later 
than 12 months after the date of such revision, determine whether 
such revision will improve energy efficiency in commercial buildings. 
The Secretary shall publish a notice of such determination in the 
Federal Register. 
''(B)(i) If the Secretary makes an affirmative determination 
under subparagraph (A), each State shall, not later than 2 years 
after the date of the publication of such determination, certify 
that it has reviewed and updated the provisions of its commercial 
building code regarding energy efficiency in accordance with the 
revised standard for which such determination was made. Such 
certification shall include a demonstration that the provisions of 
such State's commercial building code regarding energy efficiency 
meet or exceed such revised standard. 
"(ii) If the Secretary makes a determination imder subpara-
graph (A) that such revised standard will not improve energy effi-
ciency in commercial buildings, State commercial building code 
Provisions regarding energy efnciency shall meet or exceed ASHRAE 
tandard 90.1-1989, or if such standard has been revised, the 
last revised standard for which the Secretary has made an affirma-
tive determination under subparagraph (A). 
"(c) EXTENSIONS.—^The Secretary shall permit extensions of the 
deadlines for the certification requirements under subsections (a) 
and (b) if a State can demonstrate that it has made a good faith 
effort to comply with such requirements and that it nas made 
significant progress in doing so. 
"(d) TECHNICAL ASSISTANCE.—The Secretary shall provide tech-
nical assistance to States to implement the requirements of this 
section, and to improve and implement State residential and 
commercial building energy efficiency codes or to otherwise promote 
the design and construction of energy efficient buildings. 
"(e) AVAILABILITY OF INCENTIVE FUNDING.—(1) The Secretary 
shall provide incentive funding to States to implement the require-
ments of this section, and to improve and implement State residen-
tial and commercial building energy efficiency codes. In determining 
whether, and in what amount, to provide incentive funding under 
this subsection, the Secretary shall consider the actions proposed 
by the State to implement the requirements of this section, to 
improve and implement residential and commercial building energy 
efficiency codes, and to promote building energy efficiency through 
the use of such codes. 
Appropriation 
"(2) There are authorized to be appropriated such sums as 
authorization. 
^^^y y^ necessary to carry out this subsection. 
42 use 6834. 
"SEC. 305. FEDERAL BUILDING ENERGY EFFICIENCY STANDARDS. 
"(a)(1) IN GENERAL.—^Not later than 2 years after the date 
of the enactment of the Energy Policy Act of 1992, the Secretan^, 
after 
consulting with 
appropriate 
Federal 
agencies, CABO, 
ASHRAE, the National Association of Home Builders, the Illuminat-
ing Engineering Society, the American Institute of Architects, the 
National Conference of the States on Building Codes and Standards, 
and other appropriate persons, shall establish, by rule. Federal 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2785 
building energy standards that require in new Federal buildings 
those energy efficiency measures that are technologically feasible 
and economically justified. Such standards shall become effective 
no later than 1 year after such rule is issued. 
"(2) The standards established under paragraph (1) shall— 
"(A) contain energy saving and renewable energy specifica-
tions that meet or exceed the energy saving ancT renewable 
energy specifications of CABO Model Energy^ Code, 1992 (in 
the case of residential buildings) or ASHRAE Standard 90.1-
1989 (in the case of commercial Duildings); 
"(B) to the extent practicable, use the same format as 
the appropriate voluntary building energy code; and 
"(U) consider, in consultation with the Environmental 
Protection Agency and other Federal agencies, and where appro-
priate contain, measures with regard to radon and other indoor 
air pollutants. 
"(b) REPORT ON COMPARATIVE STANDARDS.—^The Secretary shall 
identify and describe, in the report required under section 308, 
the basis for any substantive difference between the Federal build-
ing ener^ standards established under this section (including dif-
ferences in treatment of energy efficiency and renewable energy) 
and the appropriate voluntary building energy code. 
"(c) PERIODIC REVIEW.—The Secretary shall periodically, but 
not less than once every 5 years, review the Federal building 
energy standards established under this section and shall, if signifi-
cant energy savings would result, upgrade such standards to include 
all new energy efficiency and renewable energy measures that 
are technologically feasible and economically justified. 
"(d) INTERIM STANDARDS.—Interim energy performance stand-
ards for new Federal buildings issued by the Secretary under this 
title as it existed before the date of the enactment of the Energy 
Policy Act of 1992 shall remain in effect imtil the standards estab-
lished under subsection (a) become effective. 
"SEC. 306. FEDERAL COMPLIANCE. 
42 USC 6835. 
"(a) PROCEDURES.—(1) The head of each Federal agency shall 
adopt procedures necessary to assure that new Federal buildings 
meet or exceed the Federal building energy standards established 
imder section 305. 
"(2) The Federal building energy standards esteblished under 
section 305 shall apply to new buildings under the jurisdiction 
of the Architect of the Capitol. The Architect shall adopt procedures 
necessary to assure that such buildings meet or exceed such stand-
ards. 
"(b) CONSTRUCTION OF NEW BUILDINGS.—The head of a Federal 
agency may expend Federal funds for the construction of a new 
Federal building only if the building meets or exceeds the appro-
priate Federal building energy standards esteblished imder section 
305. 
"SEC. 307. SUPPORT FOR VOLUNTARY BUILDING ENERGY CODES. 
42 USC 6836. 
"(a) IN GENERAL.—^Not later than 1 year after the date of 
the enactment of the Energy Policy Act of 1992, the Secretery, 
after consulting with the Secretery of Housing and Urban Develop-
ment, the Secretery of Veterans Affairs, other appropriate Federal 
agencies, CABO, ASHRAE, the National Conference of States on 
Building Codes and Stendards, and any other appropriate building 
codes and standards organization, shall support the upgrading of 
106 STAT. 2786 
PUBLIC LAW 102-486—OCT. 24, 1992 
voluntary building energy codes for new residential and commercial 
buildings. Such support shall include— 
"(1) a compilation of data and other information regarding 
building energy efficiency standards and codes in the possession 
of the Federal Grovemment, State and local governments, and 
industry organizations; 
"(2) assistance in improving the technical basis for such 
standards and codes; 
"(3) assistance in determining the cost-effectiveness and 
the technical feasibility of the energy efficiency measures 
included in such standards and codes; and 
"(4) assistance in identif)dng appropriate measures with 
regard to radon and other indoor air pollutants. 
"(b) REVIEW.—^The Secretary shall periodically review the tech-
nical and economic basis of voluntary building energy codes and, 
based upon ongoing research activities— 
"(1) recommend amendments to such codes including meas-
ures with regard to radon and other indoor air pollutants; 
"(2) seek adoption of all technologically feasible and 
economically justified energy efficiency measures; and 
"(3) otherwise participate in any industry process for review 
and modification of such codes. 
42 u s e 6837. 
"SEC. 308. REPORTS. 
'The Secretary, in consultation with the Secretary of Housing 
and Urban Development, the Secretary of Veterans Affairs, and 
other appropriate Federal agencies, shall report annually to the 
Congress on activities conducted pursuant to this title. Such report 
shall include— 
"(1) recommendations made under section 307(b) regarding 
the prevailing voluntary building energy codes; 
"(2) a State-by-State summary of actions taken under this 
title; and 
"(3) recommendations to the Congress with respect to 
oin>ortunities to further promote building energy efficiency and 
otnerwise carry out the purposes of this title.". 
(b) CONFORMING AMENDMENT.—The table of contents of such 
Act is amended by striking the items relating to sections 304, 
306, 308, 309, 310 and 311, and inserting in lieu thereof the 
following— 
"Sec. 304. Updating State building energy efficiency codes. 
"Sec. 305. Federal building energy efficiency standards. 
"Sec. 306. Federal compliance. 
"Sec. 307. Support for voluntary building energy codes. 
"Sec. 308. Reports.". 
(c) FEDERAL MORTGAGE REQUIREMENTS.— 
(1) AMENDMENT TO CRANSTON-GONZALEZ NATIONAL AFFORD-
ABLE HOUSING ACT.—Section 109 of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12709) is amended 
to read as follows: 
•^EC. 109. ENERGY EFFICIENCY STANDARDS. 
"(a) ESTABLISHMENT.— 
"(1) IN GENERAL.—The Secretary of Housing and Urban 
Development and the Secretary of Agriculture shall, not later 
than 1 year after the date of the enactment of the Energy 
Policy Act of 1992, jointly establish, by rule, energy efficiency 
standards for— 
PUBUC LAW 102-486—OCT. 24,1992 
106 STAT. 2787 
"(A) new construction of public and assisted housing 
and single family and multifamily residential housing 
(other than manufactured homes) subject to mortgages 
insured under the National Housing Act; and 
"(B) new construction of single family housing (other 
than manufactured homes) subject to mortgages msvired, 
guaranteed, or made by the Secretary of Agnctdture under 
title V of the Housing Act of 1949. 
"(2) CONTENTS.—Such standards shall meet or exceed the 
requirements of the Council of American Building Officials 
Model Energy Code, 1992 (hereafter in this section referred 
to as 'CABO Model Energy Code, 1992'), or, in the case of 
multifamily high rises, the requirements of the American Soci-
ety of Heating, Refrigerating, and Air-Conditioning Engineers 
Standard 90.1-1989 (hereafter in this section referred to as 
'ASHRAE Standard 90.1-19890, and shall be cost-effective with 
respect to construction and operating costs on a life-cycle cost 
basis. In developing such standards, the Secretaries shall con-
sult with an advisory task force composed of homebuilders, 
national, State, and local housing agencies (including public 
housing agencies), energr agencies, building code organizations 
and agencies, energy einciency organizations, utility orj^aniza-
tions, low-income housing organizations, and other parties des-
ignated by the Secretaries. 
"(b) MODEL ENERGY CODE.—If the Secretaries have not, within 
1 year after the date of the enactment of the Energy Policy Act 
of 1992, established energy efidciency standards under subsection 
(a), all new construction of housing specified in such subsection 
shall meet the requirements of CABO Model Energy Code, 1992, 
or, in the case of multifamily high rises, the requirements of 
ASHRAE Standard 90.1-1989. 
"(c) REVISIONS OF MODEL ENERGY CODE.—If the requirements 
of CABO Model Energy Code, 1992, or, in the case of multifamily 
high rises, ASHRAE Standard 90.1-1989, are revised at any time, 
the Secretaries shall, not later than 1 year after such revision, 
amend the standards established under subsection (a) to meet or 
exceed the requirements of such revised code or standard imless 
the Secretaries determine that compliance with such revised code 
or standard would not result in a significant increase in energy 
efficiency or would not be technologically feasible or economically 
justified.". 
(2) AMENDMENT TO TITLE 38, UNITED STATES CODE.—Section 
3704 of title 38, United States Code, is amended by adding 
at the end thereof the following new subsection: 
"(g) A loan for the purchase or construction of new residential 
property, the construction of which began after the energy efficiency 
standards under section 109 of the Cranston-Cjonzalez National 
Affordable Housing Act (42 U.S.C. 12709), as amended by section 
101(c) of the Energy Policy Act of 1992, take effect, may not be 
financed through the assistance of this chapter unless the new 
residential property is constructed in compliance with such stand-
ards.". 
SEC. 102. RESIDENTIAL ENERGY EFFICIENCY RATINGS. 
(a) RATINGS.—^Title II of the National Energy Conservation 
Policy Act (42 U.S.C. 8211 et seq.) is amended by adding at the 
end tne following new part: 
106 STAT. 2788 
PUBLIC LAW 102-486—OCT. 24, 1992 
**PART 6—RESIDENTIAL ENERGY EFFICIENCY 
RATING GUIDELINES 
42 use 8236. 
'^EC. 271. VOLUNTARY RATING GUIDELINES. 
"(a) IN GENERAL.—Not later than 18 months after the date 
of the enactment of the Energy Policy Act of 1992, the Secretary, 
in consultation with the Secretary of Housing and Urban Develop-
ment, the Secretary of Veterans Affairs, representatives of existing 
home energy rating programs, and other appropriate persons, shall, 
by rule, issue voluntary guidelines that may be used by State 
and local governments, utilities, builders, real estate agents, lend-
ers, agencies in mortgage markets, and others, to enable and encour-
age the assignment of energy efficiency ratings to residential build-
ings. 
"(b) CONTENTS OF GUIDELINES.—The voluntary guideUnes 
issued under subsection (a) shall— 
"(1) encourage uniformity with regard to systems for rating 
the annual energy efficiency of residential buildings; 
"(2) establish protocols and procedures for— 
"(A) certification of the technical accuracy of building 
energy analysis tools used to determine energy efficiency 
ratings; 
"(B) training of personnel conducting energy efficiency 
ratings; 
"(C) data collection and reporting; 
"(D) quality control; and 
"(E) monitoring and evaluation; 
"(3) encourage consistency with, and support for, the uni-
form plan for Federal energy efficient mortgages, including 
that developed under section 946 of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12712 note) and 
pursuant to sections 105 and 106 of the Energy Policy Act 
of 1992; 
"(4) provide that rating systems take into account local 
climate conditions and construction practices, solar energy col-
lected on-site, and the benefits of peak load shifting construction 
practices, and not discriminate among fuel types; and 
"(5) establish procedures to ensure that residential build-
ings can receive an energy efficiency rating at the time of 
sale and that such rating is communicated to potential buyers. 
42 use 8236a. 
"SEC. 272. TECHNICAL ASSISTANCE. 
"Not later than 2 years aff;er the date of the enactment of 
the Energy Policy Act of 1992, the Secretary shall establish a 
program to provide technical assistance to State and local organiza-
tions to encourage the adoption of and use of residential energy 
efficiency rating systems consistent with the volimtary guidelines 
issued imder section 271. 
42 use 8236b. 
"SEC. 273. REPORT. 
"Not later than 3 years aft«r the date of the enactment of 
the Energy Policy Act of 1992, the Secretary shall transmit to 
the President and the Congress a final report conteining— 
"(1) a description of actions token by the Secretary and 
other Federal agencies to implement this part; 
"(2) a description of the action taken by States, local govern-
ments, and other organizations to implement the voluntory 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2789 
guidelines issued under section 271 and any problems encoun-
tered in implementing such guidelines; and 
"(3) recommendations on the feasibility of requiring, as 
a prerequisite to receiving federally assisted, guaranteed, or 
insured mortgages, the achievement of a minimum energy effi-
ciency rating. . 
(b) CONFORMING AMENDMENT.—^The table of contents for such 
Act is amended by adding at the end of title II the following: 
"PART 6—RESIDENTIAL ENERGY EFFICIENCY RATINGS 
"Sec. 271. Voluntary rating guidelines. 
"Sec. 272. Technical assistance. 
"Sec. 273. Report.". 
SEC. 103. ENERGY EFFICIENT UGHTING AND BUILDING CENTERS. 
42 USC 13458. 
(a) PURPOSE.—^The purpose of this section is to encoiurage 
energy efficiency in buildings through the establishment of regional 
centers to promote energy efficient lighting, heating and cooling, 
and building design. 
(b) GRANTS FOR ESTABLISHMENT.—Not later than 18 months 
after the date of the enactment of this Act, the Secretary shall 
make grants to nonprofit institutions, or to consortiums that may 
include nonprofit institutions. State and local governments, univer-
sities, and utilities, to establish or enhance one regional building 
energy efficiency center (hereafter in this section referred to as 
a "regional center") in each of the 10 regions served by a Depart-
ment of Energy regional support office. 
(c) PERMITTED ACTIYITIES.—^Each regional center established 
under this section may— 
(1) provide information, training, and technical assistance 
to building professionals such as architects, designers, engi-
neers, contractors, and building code officials, on building 
energy efficiency methods and technologies, including lighting, 
heating and cooling, and passive solar; 
(2) operate an outreach program to inform such building 
professionals of the benefits and opportunities of energy effi-
ciency, and of the services of the center; 
(3) provide displays demonstrating building energy effi-
ciency methods and technologies, such as lighting, windows, 
and heating and cooling equipment; 
(4) coordinate its activities and programs with other institu-
tions within the region, such as State and local governments, 
utilities, and educational institutions, in order to support their 
efforts to promote building energy efficiency; 
(5) serve as a clearinghouse to ensure that information 
about new building energy efficiency technolo^es, including 
case studies of successful applications, is disseminated to end-
users in the region; 
(6) study the building energy needs of the region and 
make available region-specific ener^ efficiency information to 
facilitate the adoption of cost-effective 
energy 
efficiency 
improvements; 
(7) assist educational institutions in establishing building 
enerjgy efficiency engineering and technical programs and 
curricula; and 
(8) evaluate the performance of the center in promoting 
building energy efficiency. 
106 STAT. 2790 
PUBLIC LAW 102-486—OCT. 24, 1992 
(d) APPLICATION.—Any nonprofit institution or consortium 
interested in receiving a grant under this section shall submit 
to the Secretary an application in such form and containing such 
information as the Secretary may require. A lighting or building 
energy center in existence on the date of the enactment of this 
section which is owned and operated by a nonprofit institution 
or a consortium as described in subsection (b) shall be eligible 
for a grant imder this section. 
(e) SELECTION CRITERIA.—^The Secretary shall select recipients 
of grants under this section on the basis of the following criteria: 
(1) The capability of the grant recipient to establish a 
board of directors for the regional center composed of represent-
atives firom utilities, State and local governments, building 
trade and professional organizations, manufacturers, and non-
profit energy and environmental organizations. 
(2) The demonstrated or potential resources available to 
the grant recipient for carrying out this subsection. 
(3) The demonstrated or potential ability of the grant recipi-
ent to promote building energy efficiency by carrying out the 
activities specified in subsection (c). 
(4) The activities which the grant recipient proposes to 
carry out under the grant. 
(f) REQUIREMENT OF MATCHING FUNDS.— 
(1) FEDERAL SHARE.—^The Federal share of a grant under 
this section shall be no more than 50 percent of the costs 
of establishing, and no more than 25 percent of the cost of 
operating the regional center. 
(2) NON-FEDERAL CONTRIBUTIONS.—NO grant may be made 
under this section in any fiscal year unless the recipient of 
such grant enters into such agreements with the Secretary 
as the Secretary may require to ensure that such recipient 
will provide the necessary non-Federal contributions. Such non-
Federal contributions may be provided by utilities, State and 
local governments, nonprofit institutions, foundations, corpora-
tions, and other non-Federal entities. 
Establishment. 
(g) T
A
S
K FORCE.—The Secretary shall establish a task force 
to— 
(1) advise the Secretary on activities to be carried out 
by grant recipients; 
(2) review and evaliiate programs carried out by grant 
recipients; and 
(3) make recommendations regarding the building energy 
efficiency center grant program. 
(h) MEMBERSHIP TERMS AND ADMINISTRATION OF TASK FORCE.— 
(1) IN GENERAL.—^The task force shall be composed of 
approximately 20 members, appointed by the Secretary, with 
expertise in the area of builcUng energy efficiency, including 
representatives fi-om— 
(A) State or local energy offices; 
(B) utilities; 
(C) building construction trade or professional associa-
tions; 
(D) architectiure, engineering or professional associa-
tions; 
(E) building component or equipment manufacturers; 
(F) 
from 
national laboratories; 
PUBLIC LAW 102-486—CKTT. 24, 1992 
106 STAT. 2791 
(G) building code officials or professional associations; 
and 
(H) nonprofit energy or environmental organizations. 
(2) GEOGRAPHIC REPRESENTATION.—The Secretary shall 
ensure that there is broad geographical representation among 
task force members. 
(3) TERMS.—^Members shall be appointed for a term of 
3 years. A vacancy in the taali force shall be filled in the 
manner in which the original appointment was made. 
(4) PAY.—^Members shall serve without pay. Each member 
shall receive travel expenses, including per diem in lieu of 
subsistence, in accordance with sections 5702 and 5703 of title 
5, United States Code. 
(5) CHAIRPERSON.—^The Chairperson and Vice Chairperson 
of the task force shall be elected by the members. 
(6) MEETINGS.—^The task force shall meet biannually and 
at the call of the Chairperson. 
(7) INAPPUCABILITY OF TERMINATION DATE.—Section 14 of 
the Federal Advisory Committee Act shall not apply to the 
task force. 
(i) REPORT.—^The Secretary shall transmit annually to the Con-
gress a report on the activities of regional centers established under 
this section, including the degree to which matching funds are 
being leveraged from private sources to establish and operate such 
centers. 
(j) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated for purposes of carrying out this section, to 
remain available until expended, not more than $10,000,000 for 
each of 
fiscal 
years 1994,1995, and 1996. 
SEC. 104. MANUFACTURED HOUSING ENERGY EFFICIENCY. 
(a) AMENDMENTS TO CRANSTON-GONZALEZ NATIONAL AFFORD-
A
B
L
E HOUSING ACT.—Section 943(dXl) of the Cranston-Gonzalez 
National Affordable Housing Act (Public Law 101-625; 109 Stat. 
4413) is amended— 
104 Stat. 4413. 
(1) in subparagraph (D), by striking "thermal insulation, 
energy efficiency"; 
(2) by redesignating subparagraphs (E), (F), (G), and (H) 
as subparagraphs (F), (G), (H), and (I), respectively; and 
(3) by inserting after subparagraph (D) the following new 
subparagraph: 
"(E) consult with the Secretary of Energy and make 
recommendations regarding additional or revised standards 
for thermal insulation and energy efficiency applicable to 
manufactured housing;". 
(b) DUTIES OF THE SECRETARY.—^The Secretary of Housing and 
Urban Development shall assess the energy performance of manu-
factured housing and make recommendations to the National 
Commission on Manufactured Housing established under section 
943 of the Cranston-Gonzalez National Affordable Housing Act 
regarding any thermal insulation and energy efficiency improve-
ments applicable to manufactured housing which are tectmologically 
feasible and economically justified. The Secretary shall also test 
the performance and determine the cost effectiveness of manufac-
tured housing constructed in compliance with the standards estab-
lished under such section. 
106 STAT. 2792 
PUBLIC LAW 102-486—OCT. 24, 1992 
42 use 5403 
(c) EXCEPTION TO FEDERAL PREEMPTION.—If the Secretary of 
°°^' 
Housing and Urban Development has not issued, within 1 year 
after the date of the enactment of this Act, final regulations 
pursuant to section 604 of the National Manufactured Housing 
Construction and Safety Standards Act of 1974 (42 U.S.C. 5403) 
that establish thermal insulation and energy efficiency standards 
for manufactured housing that take effect before January 1, 1995, 
then States may establish thermal insulation and energy efficiency 
standards for manufactured housing if such standards are at least 
as stringent as thermal performance standards for manufactured 
hoiising contained in the Second Public Review Draft of BSR/ 
ASHRAE 90.2P entitled "Energy Efficient Design of Low-Rise Resi-
dential Buildings" and all public reviews of Independent Sub-
stantive Changes to such document that have been approved on 
or before the date of the enactment of this Act. 
SEC. 105. ENERGY EFFICIENT MORTGAGES. 
(a) DEFINITION OF ENERGY EFFICIENT MORTGAGE.—Section 104 
of the Cranston-Gronzalez National Affordable Housing Act (42 
U.S.C. 12704) is amended by adding at the end the following new 
paragraph: 
"(24) The term 'energy efficient mortgage' means a mort-
gage that provides financing incentives for the purchase of 
energy efficient homes, or that provides financing incentives 
to make energy efficiency improvements in existing homes by 
incorporating tne cost of such improvements in the mortgage. . 
(b) UNIFORM MORTGAGE FINANCING PLAN FOR ENERGY EFFI-
CIENCY.—Section 946 of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12712 note) is amended— 
(1) in subsection (a), by striking "mortgage financing incen-
tives for energy efficiency" and inserting "energy efficient mort-
gages (as sudn term is defined in section 104 of this Act)"; 
and 
(2) in subsection (b)— 
(A) in the second sentence, by inserting ", but not 
be limited to," after "include"; and 
(B) by inserting after the period at the end of the 
following new sentence: "The Task Force shall determine 
whether notifying potential home purchasers of the avail-
ability of energy efficient mortgages would promote energy 
efficiency in residential buildings, and if so, the Task Force 
shall recommend appropriate notification guidelines, and 
agencies and organizations referred to in the preceding 
sentence are authorized to implement such guidelines. . 
42 use 12712 
SEC. 106. ENERGY EFFICIENT MORTGAGES PILOT PROGRAM. 
"
*
*
*
*
• 
(a) ESTABLISHMENT OF PILOT PROGRAM.— 
(1) IN GENERAL.—^Not later than 6 months after the date 
of enactment of this Act, the Secretary of Housing and Urban 
Development (hereafter referred to as the "Secretary^) shall 
establish an energy efficient mortgage pilot progreun in 5 States, 
to promote the purchase of existing energjr efficient residential 
buildings and the installation of cost-enective improvements 
in existing residential buildings. 
(2) PILOT PROGRAM.—^The pilot program established imder 
this subsection shall include the following criteria, where 
appUcable: 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2793 
(A) ORIGINATION.—^The lender shall originate a housing 
loan that is insured under title II of the National Housing 
Act in accordance with the applicable requirements. 
(B) APPROVAL.—^The mortgagor's base loan application 
shall be approved if the mortgagor's income and credit 
record is found to be satisfactory. 
(C) COST OF IMPROVEMENTS.—^The cost of cost-effective 
energy efficiency improvements shall not exceed the greater 
of— 
(i) 5 percent of the property value (not to exceed 
$8,000); or 
(ii) $4,000. 
(3) AUTHORITY FOR MORTGAGEES.—In granting mortgages 
vmder the pilot program established pursuant to this subsection, 
the Secretary shall grant mortgagees the authority— 
(A) to permit the final loan amount to exceed the 
loan limits established under title II of the National Hous-
ing Act by an amount not to exceed 100 percent of the 
cost of the cost-effective energy efficiency improvements, 
if the mortgagor's request to add the cost of such improve-
ments is received by the mortgagee prior to funding of 
the base loan; 
(B) to hold in escrow all funds provided to the mortga-
gor to undertake the energy efficiency improvements until 
the efficiency improvements are actually installed; and 
(C) to transfer or sell the energy efficient mortgage 
to the appropriate secondary market agency, after the mort-
gage is issued, but before the energy efficiency improve-
ments are actually installed. 
(4) PROMOTION OF PILOT PROGRAM.—The Secretary shall 
encourage participation in the energy efficient mortgage pilot 
program by— 
(A) making available information to lending agencies 
and other appropriate authorities regarding the availability 
and benefits of energy efficient mortgages; 
(B) requiring mortgagees and designated 
lending 
authorities to provide written notice of the availability 
and benefits of the pilot program to mortgagors appljdng 
for financing in those States designated by the Secretary 
as participating under the pilot program; and 
(C) requiring each applicant for a mortgage insured 
imder title II of the National Housing Act in those States 
participating luider the pilot program to sign a statement 
that such applicant has been informed of the program 
requirements and understands the benefits of energy effi-
cient mortgages. 
(5) TRAINING PROGRAM.—Not later than 9 months after 
the date of enactment of this Act, the Secretary, in consultation 
with the Secretary of Energy, shall establish and implement 
a program for training personnel at relevant lending agencies, 
real estate companies, and other appropriate organizations 
regarding the benefits of energy efficient mortgages and the 
operation of the pilot program under this subsection. 
(6) REPORT.—Not later than 18 months after the date of 
enactment of this Act, the Secretary shall prepare and submit 
a report to the Congress describing the effectiveness and 
implementation of the energy efficient mortgage pilot program 
106 STAT. 2794 
PUBLIC LAW 102-486—OCT. 24, 1992 
as described under this subsection, and assessing the potential 
for expanding the pilot program nationwide. 
(b) EXPANSION OF PROGRAM.—Not later than the expiration 
of the 2-year period beginning on the date of the implementation 
of the energy efficient mortgage pilot program under this section, 
the Secretary of Housing and Urban Development shall expand 
the pilot program on a nationwide basis and shall expand the 
program to include new residential housing, imless the Secretary 
determines that either such expansion would not be practicable, 
in which case the Secretary shall submit to the Congress, before 
the expiration of such period, a report explaining why either expan-
sion would not be practicable. 
(c) DEFINITIONS.—For purposes of this section: 
(1) The term "base loan" means any mortgage loan for 
a residential building eligible for insurance under title II of 
the National Housing Act or title 38, United States Code, 
that does not include the cost of cost-effective energy improve-
ments. 
(2) The term "cost-effective" means, with respect to energy 
efficiency improvements to a residential building, improvements 
that result in the total present value cost of the improvements 
(including £iny maintenance and repair expenses) being less 
than the total present value of the energy saved over the 
useful life of the improvement, when 100 percent of the cost 
of improvements is added to the base loan. For purposes of 
this paragraph, savings and cost-effectiveness shall be deter-
mined pursuant to a home energy rating report sufficient for 
purposes of the Federal National Mortgage Association and 
the Federal Home Loan Mortgage Corporation, or by other 
technically accurate methods. 
(3) The term "energy efficient mortgage" means a mortgage 
on a residential building that recognizes the energy savings 
of a home that has cost-effective energy saving construction 
or improvements (including solar water heaters, solar-assisted 
air conditioners and ventilators, super-insulation, and insulat-
ing glass and film) and that has the effect of not disqualifying 
a Dorrower who, but for the expenditures on energy saving 
construction or improvements, would otherwise have qualified 
for a base loan. 
(4) The term "residential building" means any attached 
or unattached single family residence. 
(d) RULE OF CONSTRUCTION.—^This section may not be construed 
to affect any other programs of the Secretary of Housing and 
Urban Development for energy-efficient mortgages. The pilot pro-
gram carried out under this section shall not replace or result 
in the termination of such other programs. 
(e) REGULATIONS.—^The Seoretary shall issue any regulations 
necessary to carry out this section not later than the expiration 
of the 180-day period beginning on the date of the enactment 
of this Act. The regulations shall be issued after notice and oppor-
tunity for public comment pursuant to the provisions of section 
553 of title 5, United States Code (notwithstanding subsections 
(aX2), (bXB), and (dX3) of such section). 
(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated such sums as may be necessary to carry out 
this section. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2795 
Subtitle B—Utilities 
SEC. 111. ENCOURAGEMENT OF INVESTMENTS IN CONSERVATION 
AND ENERGY EFFICIENCY BY ELECTRIC UTILITIES. 
(a) AMENDMENT TO THE PUBLIC UTILITY REGULATORY POUCIES 
ACT.—The Public Utility Regulatory Policies Act of 1978 (P.L. 95-
617; 92 Stat. 3117; 16 U.S.C. 2601 and following) is amended 16USC2621. 
by adding the following at the end of section 111(d): 
"(7) INTEGRATED RESOURCE PLANNING.—^Each electric utility 
shall employ integrated resource planning. All plans or filings 
before a State regulatory authority to meet the requirements 
of this paragraph must be updated on a regular basis, must 
provide the opportiuiity for public participation and comment, 
and contain a requirement that the plan be implemented. 
"(8) INVESTMENTS IN CONSERVATION AND DEMAND MANAGE-
MENT.—^The rates allowed to be charged by a State regulated 
electric utility shall be such that the utilitjr's investment in 
and expenditures for energy conservation, energy efficiency 
resources, and other demand side management measiures are 
at least as profitable, giving appropriate consideration to income 
lost from reduced sales due to investments in and expenditiires 
for conservation and efficiency, as its investments in and 
expenditiures for the construction of new generation, trans-
mission, and distribution equipment. Such energy conservation, 
energy efficiency resources and other demand side management 
measures shall be appropriately monitored and evaluated. 
"(9) ENERGY EFFICIENCY INVESTMENTS IN POWER GENERA-
TION AND SUPPLY.—^The rates charged by any electric utility 
shall be such that the utility is encouraged to make investments 
in, and expenditures for, all cost-effective improvements in 
the energy efficiency of power generation, transmission and 
distribution. In considering regulatory changes to achieve the 
objectives of this paragraph. State regulatory authorities and 
nonregulated electric utilities shall consider the disincentives 
caused by existing ratemaking policies, and practices, and con-
sider incentives that would encourage better maintenance, and 
investment in more efficient power generation, transmission 
and distribution equipment.". 
(b) PROTECTION FOR SMALL BUSINESS.—The Public Utility Regu-
latory Policies Act of 1978 (Public Law 95-617; 92 Stat. 3117; 
16 U.S.C. 2601 and following) is amended by inserting the following 
new paragraph at the end of subsection 111(c): 
"(3) If a State regvdatory authority implements a standard 
established by subsection (dX7) or (8), such authority shall— 
''(A) consider the impact that implementation of such 
standard would have on small businesses engaged in the 
design, sale, supply, installation or servicing of energy con-
servation, energy efficiency or other demand side manage-
ment measures, and 
"(B) implement such standard so as to assure that 
utility actions would not provide such utilities with unfair 
competitive advantages over such small businesses.". 
(c) EFFECTIVE DATE.—Section 112(b) of such Act is amended 
16 use 2622. 
by inserting "(or after the enactment of the Comprehensive National 
Energy Policy Act in the case of standards under paragraphs (7), 
106 STAT. 2796 
PUBLIC LAW 102-486—OCT. 24, 1992 
(8), and (9) of section llKd))" after "Act" in both places such 
word appears in paragraphs (1) and (2). 
16 use 2602. 
(d) DEFiNrnONS.—Section 3 of such Act is amended by adding 
the following new paragraphs at the end thereof: 
"(19) The term integrated resource planning* means, in 
the case of an electric utiUty, a planning and selection process 
for new energy resources that evaluates the full range of alter-
natives, including new generating capacity, power purchases, 
energy conservation and efiEiciency, cogeneration and district 
heating and cooling applications, and renewable energy 
resoiut^es, in order to provide adequate and reliable service 
to its electric customers at the lowest system cost. The process 
shall take into account necessary features for system operation, 
such as diversity, reliability, dispatchabilily, and other factors 
of risk; shall take into account the ability to verify energy 
savings achieved through energy conservation and efficiency 
and the projected durability of such savings measured over 
time; and shall treat demand and supply resources on a consist-
ent and integrated basis. 
"(20) The term 'system cost' means all direct and quantifi-
able net costs for an energy resource over its available life, 
including the cost of production, distribution, transportation, 
utilization, waste management, and environmental compliance. 
"(21) The term 'demand side management' includes load 
management techniques.". 
1
6 use 2621 
(e) REPORT.—Not later than 2 years after the date of the 
enactment of this Act, the Secretary shall transmit a report to 
the President and to the Congress containing— 
(1) a survey of all State laws, regulations, practices, and 
policies under which State regulatory authorities implement 
the provisions of paragraphs (7), (8), and (9) of section 111(d) 
of the Public Utility Regulatory Policies Act of 1978; 
(2) an evaluation by the Secretary of whether and to what 
extent, integrated resource planning is likely to result in— 
(A) higher or lower electricity costs to an electric util-
ity's ultimate consumers or to classes or groups of such 
consiuners; 
(B) enhanced or reduced reliability of electric service; 
and 
(C) increased or decreased dependence on particular 
energy resources; and 
(3) a survey of practices and policies under which electric 
cooperatives prepare integrated resource plans, submit such 
plans to the Rural Electrification Administration and the extent 
to which such integrated resource planning is reflected in rates 
charged to customers. 
The report shall include an analysis prepared in coi^unction with 
the Federal Trade Commission, of the competitive impact of 
implementation of energy conservation, energy efficiency, and other 
demand side management programs by utilities on small businesses 
engaged in the design, sale, supply, installation, or servicing of 
similar energy conservation, energy efficiency, or other demand 
side management measures and whether any unfair, deceptive, 
or predatory acts exist, or are likely to exist, from implementation 
of such programs. 
note 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2797 
SEC. 112. ENERGY EFFICIENCY GRANTS TO STATE REGULATORY 42 USC 6807a. 
AUTHORITIES. 
(a) ENERGY EFFICIENCY GRANTS.—The Secretary is authorized 
in accordance with the provisions of this section to provide grants 
to State regulatory authorities in an amount not to exceed $250,000 
per authority, for purposes of encouraging demand-side manage-
ment including energy conservation, energy efficiency and load 
management techniques and for meeting the requirements of para-
graphs (7), (8), and (9) of section 111(d) of the Public Utility Regu-
latory Policies Act of 1978 and as a means of meeting gas supply 
needs and to meet the requirements of paragraphs (3) and (4) 
of section 303G>) of the Public Utility Regulatory Policies Act of 
1978. Such grants may be utilized by a State regulatory authority 
to provide financial assistance to nonprofit subgrantees of the 
Department of Energy's Weatherization Assistance Program in 
order to facilitate participation by such subgrantees in proceedings 
of such regulatory authority to examine energy conservation, energy 
efficiency, or other demand-side management programs. 
(b) PLAN.—^A State regulatory authority wishing to receive a 
grant under this section shall submit a plan to the Secretary 
that specifies the actions such authority proposes to take that 
would achieve the purposes of this section. 
(c) SECRETARIAL ACTION.—(1) In determining whether, and in 
what amount, to provide a grant to a State regulatory authority 
under this section the Secretary shall consider, in addition to other 
appropriate factors, the actions proposed by the State regulatory 
authority to achieve the purposes of this section and to consider 
implementation of the ratemaking standards established in— 
(A) paragraphs (7), (8) and (9) of section 111(d) of the 
Public Utility Regulatory Policies Act of 1978; or 
(B) paragraphs (3) and (4) of section 303(b) of the Public 
Utility Regulatory Policies Act of 1978. 
(2) Such actions— 
(A) shall include procedures to facilitate the participation 
of grantees and nonprofit subgrantees of the Department of 
Energy's Weatherization Assistance Program in proceedings 
of such regulatory authorities examining demand-side manage-
ment programs; and 
(B) shall provide for coverage of the cost of such grantee 
and subgrantees' participation in such proceedings. 
(d) RECORDKEEPING.—^Each State regulatory authority that 
receives a grant under this section shall keep such records as 
the Secretary shall require. 
(e) DEFINITION.—^For purposes of this section, the term "State 
regulatory authority" shall have the same meaning as provided 
by section 3 of the Public Utility Regulatory Policies Act of 1978 
in the case of electric utilities, and such term shall have the same 
meaning as provided by section 302 of the Public Utility Regulatory 
Policies Act of 1978 in the case of gas utilities, except that in 
the case of any State without a statewide ratemaking authority, 
sudi term shall mean the State energy office. 
(f) AUTHORIZATION.—^There are authorized to be appropriated 
$5,000,000 for each of the fiscal years 1994, 1995 and 1996 to 
carry out the purposes of this section. 
106 STAT. 2798 
PUBLIC LAW 102-486—OCT. 24, 1992 
16 use 831m-l. 
SEC. 113. TENNESSEE VALLEY AUTHORITY LEAST-COST PLANNING 
PROGRAM. 
(a) IN GENERAL.—^The Tennessee Valley Authority shall conduct 
a least-cost planning program in accordance with tiiis section. 
(b) CONDUCT OF PROGRAM.— 
(1) IN GENERAL.—^In conducting a least-cost planning pro-
gram under subsection (a), the Tennessee Valley Authority 
shall employ and implement a planning and selection process 
for new enei^ resources whidn evaluates the full range of 
existing and incremental resources (including new power sup-
plies, ener^ conservation and efficiency, and renewable enei^ 
resources) m order to provide adequate and reliable service 
to electric customers of the Tennessee Valley Authority at the 
lowest s^tem cost. 
(2) PLANNING AND SELECTION PROCESS.—The planning and 
selection process referred to in paragraph (1) shall— 
(A) take into account necessary featiires for system 
operation, including diversity, reliability, dispatchability, 
and other factors of risk; 
(B) take into account the ability to verify ene^y sav-
ings achieved through energy conservation and emciency 
and the projected durability of such savings measured over 
time; and 
(C) treat demand and supply resources on a consistent 
and integrated basis. 
(3) S
^
n
s
T
E
M C
O
S
T DEFINED.—As used in paragraph (1), the 
term "system cost" means all direct and quantifiable net costs 
for an energy resource over its available life, including the 
cost of production, transportation, utilization, waste manage-
ment, environmental compliance, and, in the case of imported 
energy resources, maintaining access to foreign sources of 
supply. 
(c) PARTICIPATION BY DISTRIBUTORS.— 
(1) IN GENERAL.—^In conducting a least-cost planning pro-
gram under subsection (a), the Tennessee Valley Authority 
shaU— 
(A) provide an opportunity for distributors of the Ten-
nessee Valley Authority to recommend cost-effective energy 
efficiency opportunities, rate structure incentives, and 
renewable energy proposals for inclusion in such program; 
and 
(B) encourage and assist such distributors in the plan-
ning and implementation of cost-eCTective energy efficiency 
options. 
(2) ASSISTANCE.—The Tennessee Valley Authority shall pro-
vide appropriate assistance to distributors under paragraph 
(IXB). Such assistance shall, where cost effective, be provided 
by the Tennessee Valley Authority acting through, or in 
cooperation with, an association of distributors. Such assistance 
may include publications, workshops, conferences, one-on-one 
assistance, financial assistance, equipment loans, technology 
assessment studies, marketing studies, and other appropriate 
mechanisms to transfer information on energy efficiency and 
renewable energy options and programs to customers. 
(d) PuBUC REVIEW AND COMMENT.—Before the selection and 
addition of a migor new energy resource on the Tennessee Valley 
Authority system, the Tennessee Valley Authority shall provide 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2799 
an opportunity for public review and comment and shall include 
a description of any sudi action in an annual report to the President 
and Congress. 
(e) £bcEMPnoN FROM CERTAIN REQUIREMENTS.—The Tennessee 
Valley Authority shedl not be subject to the least-cost planning 
requirements contained in section 111(d) of the Public Utihty Regu-
latory Policies Act of 1978 or any similar requirement which might 
arise out of the Tennessee Valley Authoritys electric power trans-
actions with the Southeastern Power Administration. 
SEC. 114. AMENDMENT OF HOOVER POWER PLANT ACT. 
Title II of the Hoover Power Plant Act of 1984 (42 U.S.C. 
7275-7276, Public Law 98-381) is amended to read as follows: 
TITLE II—INTEGRATED RESOURCE PLANNING 
"Sec. 201. Definitioiis. 
"Sec. 202. Regulations to require integrated resource planning. 
"Sec. 203. Tedmical assistance. 
"Sec. 204. Integrated resource plans. 
"Sec. 206. Miscellaneous provisions. 
••SEC. 201. DEFINITIONS. 
42 USC 7275. 
"As used in this title: 
"(1) The term 'Administrator' means the Administrator of 
the Western Area Power Administration. 
"(2) The term 'integrated resource planning* means a plan-
ning process for new energ;^ resources that evaluates the full 
range of alternatives, inclucung new generating capacity, power 
S
urdiases, energy conservation and efiGdent^, cogeneration and 
istrict heating and cooling applications, ana renewable enerjgy 
resources, in order to provide adequate and reUable service 
to ite electric customers at the lowest system cost. The process 
shall take into account necessary features for system operation, 
such as diversity, reliabilily, dispatchabili^, and other factors 
of risk; shall take into account the ability to verify energy 
savings achieved throu^ eneny conservation and efiELciency 
and the projected durabiUtv or such savings measured over 
time; and shall treat demand and supply resources on a consist-
ent and integrated basis. 
"(3) The term least cost option' means an option for provid-
ing reliable electric services to electric customers whicn will, 
to the extent practicable, minimize life-<7cle system coste, 
including adverse environmental efiecte, of providing such serv-
ice. To tne extent practicable, energy efficiency and renewable 
resources may be given priority in any least-cost option. 
"(4) The term long-term &rm power service contract' means 
any contract for the sale by Western Area Power Administration 
of nrm capacity, with or without energy, which is to be delivered 
over a period of 
more than one year. 
"(5) The terms 'customer* or 'customers' means any entity 
or entities purchasing firm capacity with or without energy, 
from the Western Area Power Administration under a long-
term firm power service contract. Such terms include parent-
type entities and their distribution or user members. 
"(6) For any customer, the term 'appUcable integrated 
resource plan' means the integrated resource plan approved 
by the Administrator under this title for that customer. 
106 STAT. 2800 
PUBLIC LAW 102-486—OCT. 24, 1992 
42 use 7276. 
''SEC. 202. REGULATIONS TO REQUIRE INTEGRATED RESOURCE PLAN-
NING. 
"(a) REGULATIONS.—^Within 1 year after the enactment of this 
section, the Administrator shall, by regulation, revise the Final 
Amended Guidelines and Acceptance Criteria for Customer Con-
servation and Renewable Energy Programs published in the Federal 
Register on August 21, 1985 (50 F.R. 33892), or any subsequent 
amendments thereto, to require each customer purchasing electric 
energy under a long-term firm power service contract with the 
Western Area Power Administration to implement, within 3 years 
after the enactment of this section, integrated resource planning 
in accordance vdth the requirements of this title. 
"(b) CERTAIN SMALL CUSTOMERS.—Notwithstanding subsection 
(a), for customers with total annual energy sales or usage of 25 
Gigawatt Hours or less which are not members of a joint action 
agency or a generation and transmission cooperative with power 
supply responsibility, the Administrator may establish different 
regulations and apply such regulations to customers that the 
Administrator finos have limited economic, managerial, and 
resource capability to conduct integrated resource planning. The 
regulations under this subsection shall require such customers to 
consider all reasonable opportunities to meet their future energy 
service requirements using demand-side techniques, new renewable 
resources and other programs that will provide retail customers 
with electricity at the lowest possible cost, and minimize, to the 
extent practicable, adverse environmental effects. 
42 use 7276a. 
<n3EC. 208. TECHNICAL ASSISTANCE. 
The Administrator may provide technical assistance to cus-
tomers to, among other things, conduct integrated resource plan-
ning, implement applicable integrated resource plans, and otherwise 
comply with the requirements of this title. Technical assistance 
may include publications, workshops, conferences, one-to-one assist-
ance, equipment loans, technology and resource assessment studies, 
marketing studies, and other mechanisms to transfer information 
on energy efficiency and renewable energy options and programs 
to customers. The Administrator shall give priority to providing 
technical assistance to customers that have limitea capability to 
conduct integrated resource planning. 
42 use 7276b. 
'«EC. 204. INTEGRATED RESOURCE PLANS. 
"(a) REVIEW BY WESTERN AREA POWER ADMINISTRATION.— 
Regulations. 
Within 1 year after the enactment of this section, the Administrator 
shall, by regulation, revise the Final Amended Guidelines and 
Acceptance Criteria for Customer Conservation and Renewable 
Energy Programs published in the Federal Register on August 
21, 1985 (50 F.R. 33892), or any subsequent amendments thereto, 
to require each customer to submit an integrated resource plan 
to the Administrator within 12 months after such regulations are 
amended. The regulation shall require a revision of such plan 
to be submitted every 5 years after the initial submission. The 
Administrator shall review the initial plan in accordance with a 
sdiedule established by the Administrator (which schedule will 
provide for the review of all initial plans within 24 months after 
such regulations are amended), and each revision thereof within 
120 days after his receipt of the plan or revision and determine 
whether the customer has in the development of the plan or revi-
PUBLIC LAW 102-486—OCT. 24,1992 
106 STAT. 2801 
edon, complied with this title. Plan amendments may be submitted 
to the Administrator at any time and the Administrator shall review 
each such amendment within 120 days after receipt thereof to 
determine whether the customer in amending its plan has complied 
with this title. If the Administrator determines that the customer, 
in developing its plan, revision, or amendment, has not complied 
witii the requirements of this title, the customer shall resubmit 
the plan at any time thereafter. )^enever a plan or revision or 
amendment is resubmitted the Administrator shall review the plan 
or revision or amendment within 120 days after his receipt thereof 
to determine whether the customer has complied with this title. 
"
X
b
) CRITERIA FOR APPROVAL OF INTEGRATED RESOURCE 
PLANS.—The Administrator shall approve an integrated resource 
plan submitted as required under siusection (a) if, in developing 
the plan, the customer has: 
"(1) Identified and accuratelv compared all practicable 
energy efficiency and energy supply resource options available 
to the customer. 
"(2) Included a 2-year action plan and a 5-year action 
plan which describe specific actions the customer will take 
to implement its integrated resource plan. 
"(3) Designated least-cost options' to be utilized by the 
customer for the purpose of providing reUable electric service 
to its retail consumers and explain^ the reasons why such 
options were selected. 
"(4) To the extent practicable, minimized adverse environ-
mental effects of new resource acauisitions. 
"(5) In preparation and development of the plan (and each 
revision or amendment of the plan) has provided for fall public 
participation, including participation by governing boards. 
"(6) Included load forecastmg. 
'^7) Provided methods of validating predicted performance 
in order to determine whether objectives in the plan are being 
met. 
"(8) Met such other criteria as the Administrator shall 
require. 
^c) USE OF OTHER INTEGRATED RESOURCE PLANS.—Where a 
customer or ^ u p of customers are implementing integrated 
resource planning under a program responding to Federal, State, 
or other initiatives, including integrated resource planning consid-
ered and implemented pursuant to section 111(a) of the Public 
Utility Regulatory PoUdes Act of 1978, in evaluating that customer's 
integrated resource plan under this title, the Administrator shall 
accept such plan as fulfillment of the requirements of this title 
to the extent such plan substantially complies with the require-
ments of this title. 
"(d) COMPLIANCE WITH INTEGRATED RESOURCE PLANS.—Within Regulations. 
1 year after the enactment of this section, the Administrator shall, 
hy regulation, revise the Final Amended Guidelines and Acceptance 
Cfriteria for Customer Conservation and Renewable Ener^ Pro-
grams pubUshed in the Federal Register on August 21, 1985 (50 
F.R. 33892), or any subsequent amendments thereto, to require 
each customer to ftilly comply with the applicable integrated 
resource plan and submit an annual report to the Administrator 
(in such form and containing such information as the Administrator 
may re(iuire) describing the customer's progress to the goals estab-
lished in such plan. Alter the initial review under subsection (a) 
59-194 O—93 
3:QL3(Pt. 4) 
106 STAT. 2802 
PUBLIC LAW 102-486—OCT. 24, 1992 
the Administrator shall periodically conduct reviews of a representa-
tive sample of applicable integrated resource plans and the cus-
tomer's implementation of the applicable integrated resource plan 
to determine if the customers are in compliance with their plans. 
If the Administrator finds a customer out-of-compliance, the 
Administrator shall impose a surcharge under this section on all 
electric energy purchased by the customer from the Western Area 
Power Administration or reduce such customer's power allocation 
by 10 percent, imless the Administrator finds that a good faith 
effort has been made to comply with the approved plan. 
"(e) ENFORCEMENT.— 
"(1) No A
P
P
R
O
V
E
D PLAN.—If an integrated resource plan 
for any customer is not submitted before the date 12 months 
after the guidelines are amended as required under this section 
or if the plan is disapproved by the Administrator and a revised 
plan is not resubmitted by the date 9 months after the date 
of such disapproval, the Administrator shall impose a surcharge 
of 10 percent of the purchase price on all power obtained 
by that customer from the Western Area Power Administration 
after such date. The surcharge shall remain in effect until 
an integrated resource plan is approved for that customer. 
If the plan is not submitted for more than one year after 
the required date, the surcharge shall increase to 20 percent 
for the second year (or any portion thereof prior to approval 
of the plan) and to 30 percent thereafter until the plan 
is submitted or the contract for the purchase of power by 
such customer from the Western Area Power Administration 
terminates. 
"(2) FAILURE TO COMPLY WITH APPROVED PLAN.—After 
approval by the Administrator of an applicable integrated 
resource plan for any customer, the Administrator shall impose 
a 10 percent surcharge on all power purchased by such cus-
tomer from the Western Area Power Administration whenever 
the Administrator determines that such customer's activities 
are not consistent with the applicable integrated resource plan. 
The surcharge shall remain in effect imtil the Administrator 
determines that the customer's activities are consistent with 
the applicable integrated resource plan. The surcharge shall 
be increased to 20 percent if the customer's activities are out 
of compliance for more than one year and to 30 percent after 
more than 2 years, except that no surcharge shall be imposed 
if the customer demonstrates, to the satisfaction of the Adminis-
trator, that a good faith effort has been made to comply with 
the approved plan. 
"(3) REDUCTION IN POWER ALLOCATION.—In the case of any 
customer subject to a surcharge under paragraph (1) or (2), 
in lieu of imposing such surcharge the Adboiinistrator may 
reduce such customer's power allocation from the Western Area 
Regulations. 
Power Administration by 10 percent. The Administrator shall 
provide by regulation the terms and conditions under which 
a power allocation terminated under this subsection may be 
reinstated. 
•
*
(
D INTEGRATED RESOURCE PLANNING COOPERATIVES.—With the 
approval of the Administrator, customers within any State or region 
may form integrated resource planning cooperatives for the pur-
poses of complying with this title, and such customers shall be 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2803 
allowed an additional 6 months to submit an initial integrated 
resource plan to the Administrator. 
"(g) CUSTOMERS WITH MORE THAN 1 CONTRACT.—If more than 
one long-term firm power service contract exists between the 
Administrator and a customer, only one integrated resource plan 
shall be required for that customer imder this title. 
"(h) PROGRAM REVIEW.—Within 1 year after January 1, 1999, 
and at appropriate intervals thereafter, the Administrator shall 
initiate a pubUc process to review the program established by 
this section. The Administrator is authorized at that time to revise 
the criteria set forth in section 204(b) to reflect changes, if any, 
in technology, needs, or other developments. 
<«EC. 20S. MISCELLANEOUS PROVISIONS. 
42 USC 7276c. 
"(a) ENVIRONMENTAL IMPACT STATEMENT.—The provisions of 
the National Environmental Policy Act of 1969 shall apply to actions 
of the Administrator implementing this title in the same manner 
and to the same extent as such provisions apply to other msgor 
Federal actions significantly affecting the quality of the human 
environment. 
"(b) ANNUAL REPORTS.—The Administrator shall include in the 
annual report submitted by the Western Area Power Administration 
(1) a description of the activities undertaken by the Administrator 
and by customers under this title and (2) an estimate of the energy 
savings and renewable resource benefits achieved as a result of 
such activities. 
"(c) STATE REGULATED INVESTOR-OWNED UTILITIES.-Any State 
regulated electric utility (as defined in section 3(18) of the Public 
Utility Regulatory Policies Act of 1978) shall be exempt 
firom 
the 
provisions of this title. 
"(d) 
RURAL 
ELECTRIFICATION 
ADMINISTRATION REQUIRE-
MENTS.—^Nothing in this title shall require a customer to take 
any action inconsistent with a requirement imposed by the Rural 
Electrification Administration". 
SEC. 115. ENCOURAGEMENT OF INVESTMENTS IN CONSERVATION 
AND ENERGY EFFICIENCY BY GAS UTILITIES. 
(a) DEFINITIONS.—Section 302 of the Public Utility Regulatory 
Policies Act of 1978 (15 U.S.C. 3202) is amended by adding the 
following at the end thereof: 
"(9) The term Integrated resoiirce planning* means, in the 
case of a gas utility, planning by the use of any standard, 
regulation, practice, or policy to undertake a systematic 
comparison between demand-side management measures and 
the supply of gas by a gas utility to minimize life-cycle costs 
of adequate and reliable utility services to gas consumers. 
Integrated resource planning shall take into account necessary 
features for system operation sudi as diversity, reliability, 
dispatchability, and other factors of risk and shall treat demand 
ana supply to gas consumers on a consistent and integrated 
basis. 
"(10) The term 'demand-side management' includes energy 
conservation, energy efficiency, and load management tech-
niques.". 
(b) IN GENERAL.—Section 303(b) of the Public Utility Regulatory 
Policies Act of 1978 (15 U.S.C. 3202) is amended by inserting 15 use 3203. 
at the end the following new paragraphs: 
106 STAT. 2804 
PUBLIC LAW 102-486—OCT. 24, 1992 
"(3) INTEGRATED RESOURCE PLANNING.—Each gas utility 
shall employ, in order to provide adequate and reliable service 
to its gas customers at the lowest system cost. All plans or 
filings of a State regulated gas utility before a State regulatory 
authority to meet the requirements of tihds paragraph shall 
(A) be updated on a regular basis, (B) provide the opportunity 
for public participation and comment, (C) provide for methods 
of validating predicted performance, and (D) contain a require-
ment that the plan be implemented after approval of the State 
regulatory authority. Subsection (c) shall not apply to this 
paragraph to the extent that it could be construed to require 
the State regulatory authority to extend the record of a State 
proceeding in submitting reports to the Federal Government. 
"(4) INVESTMENTS IN CONSERVATION AND DEMAND MANAGE-
MENT.—^The rates charged by any Stete regulated gas utility 
shall be such that the utility's prudent investments in, and 
expenditures for, energy conservation and load shifting pro-
grams and for other demand-side management measures which 
are consistent with the findings and purposes of the Energy 
Policy Act of 1992 are at least as profiteble (taking into account 
the income lost due to reduced sales resulting from such pro-
grams) as prudent investments in, and expenditures for, the 
acquisition or construction of supplies and facilities. This objec-
tive requires that (A) regulators link the utility's net revenues, 
at least in part, to the utility's performance in implementing 
cost-effective programs promoted by this section; and (B) regu-
lators ensure that, for purposes of recovering fixed costs, includ-
ing its authorized return, the utility's performance is not 
affected by reductions in its retail sales volumes.". 
15 use 3203. 
(c) IMPACT ON SMALL BUSINESS.—Section 303 of such Act is 
amended by inserting the following new subsection at the end 
thereof: 
"(d) SMALL BUSINESS IMPACTS.—If a State regulatory authority 
implements a stendard esteblished by subsection (b) (3) or (4), 
such authority shall— 
"(1) consider the impact that implementetion of such stand-
ard would have on small businesses engaged in the design, 
sale, supply, instellation, or servicing of energy conservation, 
energy efficiency, or other demand-side management measures, 
and 
"(2) implement such standard so as to assure that utility 
actions woidd not provide such utilities with luifair competitive 
advanteges over such small businesses.", 
(d) EFFECTIVE DATE.—Section 303(a) of such Act is amended 
by inserting "(or after the enactment of the Energy Policy Act 
of 1992 in the case of stendards under paragraphs (3), and (4) 
of subsection (b))" after "Act" and by striking out "standard esteb-
lished by subsection (bX2)" in paragraph (2) and inserting "stend-
ards esteblished by paragraphs (2), (3) and (4) of subsection (b)". 
15 use 3203 
(e) REPORT.—The report under section 111(e) of this Act 
"°*®' 
transmitted by the Secretary of Energy to the President and to 
the Congress shall contain a survey of all Stete laws, regulations, 
practices, and policies under which Stete regulatory authorities 
implement the provisions of paragraphs (3) and (4) of section 303(b) 
of the Public Utility Regulatory Policies Act of 1978. The report 
shall include an analysis, prepared in conjunction with the Federal 
Trade (Commission, of the competitive impact of implementetion 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2805 
of energy conservation, energy efficiency, and other demand side 
management programs by gas utilities on small businesses engaged 
in the design, sale, supply, installation, or servicing of similar 
energy conservation, energy efficiency, or other 
demand-side 
management measures and whether any unfair, deceptive, or preda-
tory acts or practices exist, or are likely to exist, from implementa-
tion of such programs. 
Subtitle C—Appliance and Equipment 
Energy Efficiency Standards 
SEC. 121. ENERGY EFFICIENCY LABELING FOR WINDOWS AND WIN- 42 USC 6292 
DOW SYSTEMS. 
note. 
(a) IN GENERAL.—(1) The Secretary shall, after consulting with 
the National Fenestration Rating Coiuicil, industry representatives, 
and other appropriate organizations, provide financial assistance 
to support a voluntary national window rating prop;ram that will 
develop energy ratings and labels for windows and window systems. 
(2) Such rating program shall include— 
(A) specifications for testing procedures and labels that 
will enable window buyers to make more informed purchasing 
decisions about the energy efficiency of windows and window 
systems; and 
(B) information (which may be disseminated through cata-
logs, trade publications, labels, or other mechanisms) that will 
allow window buyers to assess the energy consumption and 
potential cost savings of alternative window products. 
(3) Such rating program shall be developed by the National 
Fenestration Rating Council according to commonly accepted proce-
dures for the development of national testing procedures and label-
ing programs. 
(b) MONITORING.—The Secretary shall monitor and evaluate 
the efforts of the National Fenestration Rating Coimcil and, not 
later than one year after the date of the enactment of this Act, 
make a determination as to whether the program developed by 
the Council is consistent with the objectives of subsection (a). 
(c) ALTERNATIVE SYSTEM.—(1) If the Secretary makes a deter-
mination under subsection (b) that a voluntary national window 
rating program consistent with the objectives of subsection (a) has 
not been developed, the Secretary shall, after consultation with 
the National Institute of Standards and Technology, develop, not 
later than two years after such determination, test procedures 
under section 323 of the E n e r ^ Policy and Conservation Act (42 
U.S.C. 6293) for windows and window systems. 
(2) Not later than one year after the Secretery develops test 
procedures imder paragraph (1), the Federal Trade Commission 
(hereafter in this section referred to as the "Commission") shall 
prescribe labeling rules imder section 324 of such Act (42 U.S.C. 
6294) for those windows and window systems for which the Sec-
retery has prescribed test procedures imder paragraph (1) except 
that, with respect to any tjrpe of window or window system (or 
class thereof), the Secretery may determine that such labeling 
is not technologically feasible or economically justified or is not 
likely to assist consumers in making purchasing decisions. 
(3) For purposes of sections 323, 324, and 327 of such Act, 
each product for which the Secretery has established test procedures 
106 STAT. 2806 
PUBLIC LAW 102-486—OCT. 24, 1992 
or labeling rules pursuant to this subsection shall be considered 
a new covered product under section 322 of such Act (42 U.S.C. 
6292) to the extent necessary to carry out this subsection. 
(4) For purposes of section 327(a) of such Act, Uie term "this 
part" includes this subsection to the extent necessary to carry 
out this subsection. 
SEC. 122. ENERGY CONSERVATION REQUIREMENTS FOR CERTAIN 
COMMERCIAL AND INDUSTRIAL EQUIPMENT. 
(a) DEFINITIONS.—Section 340 of the Energy Policy and Con-
servation Act (42 U.S.C. 6311) is amended— 
(1) in paragraph (1)— 
(A) by redesignating subparagraph (B) as subpara-
graph (G); and 
(B) by inserting after subparagraph (A) the following: 
"(B) Small commercial package air conditioning and 
heating equipment. 
"(C) Large commercial package air conditioning and 
heating equipment. 
"(D) Packaged terminal air-conditioners and packaged 
terminal heat pimips. 
"(E) Warm air furnaces and padcaged boilers. 
"(F) Storage water heaters, instantaneous water heat-
ers, and unfired hot water storage tanks."; and 
(2) in paragraph (2XB)— 
(A) by striking out "pumps)" and inserting in lieu 
thereof "pumps, small and lai^e commercial package air 
conditioning and heating equipment, packaged terminal 
air-conditioners, packaged terminal heat pumps, warm air 
furnaces, packaged boilers, storage water heaters, instanta-
neous water heaters, and unfired hot water storage tanks)"; 
and 
(B) by striking out clauses (v) and (xi) and redesignat-
ing clauses (vi), (vii), (viii), (ix), (x), (xii), (xiii), and (xiv) 
as clauses (v), (vi), (vii), (viii), (ix), (x), (xi), and (xii), respec-
tively; and 
(3) by adding at the end the following: 
"(8) The term 'small commercial package air conditioning 
and heating equipment* means air-cooled, water-cooled, evapo-
ratively-cooled, or water source (not including ground water 
source) electrically operated, unitary central air conditioners 
and central air conditioning heat pumps for commercial applica-
tion which are rated below 135,0()() Btu per hour (cooling capac-
ity). 
"(9) The term large commercial package air conditioning 
and heatinff equipment' means air-cooled, water-cooled, evapo-
ratively-cooled, or water source (not including ground water 
source) electricidly operated, unitary central air conditioners 
and central air conditioning heat pumps for commercial applica-
tion which are rated at or above 135,000 Btu per hour and 
below 240,000 Btu per hour (cooling capacity). 
"(lOXA) The term 'packaged terminal air conditioner* means 
a wall sleeve and a separate unencased combination of heatinff 
and cooling assemblies specified l^ the builder and intendea 
for mounting through the wall. It includes a prime source 
of reficigeration, separable outdoor louvers, forced ventilation, 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2807 
and heating availability by builder's choice of hot water, steam, 
or electricity. 
"(B) The term 'packaged terminal heat pump' means a 
packaged terminal air conditioner that utilizes reverse cycle 
refrigeration as its prime heat source and should have supple-
mentary heat source available to builders with the choice of 
hot water, steam, or electric resistant heat. 
"(IIXA) The term Varm air furnace' means a self-contained 
oil- or gas-fired fiimace designed to supply heated air through 
ducts to spaces that require it and includes combination warm 
air fiimace/electric air conditioning units but does not include 
unit heaters and duct furnaces. 
"(B) The term 'packaged boiler* means a boiler that is 
shipped complete with heating equipment, mechanical draft 
equipment, and automatic controls; usually shipped in one or 
more sections. 
''(12XA) The term 'storage water heater* means a water 
heater Uiat heats and stores water within the appliance at 
a thermostetically controlled temperature for delivery on 
demand. Such term does not include units with an input rating 
of 4000 Btu per hour or more per gallon of stored water. 
"(B) The term 'instantaneous water heater' means a water 
heater that has an input rating of at least 4000 Btu per 
hour per gallon of stored water. 
"(C) The term 'unfired hot water storage tank' means a 
tank used to store water that is heated externally. 
"(ISXA) The term 'electric motor' means any motor which 
is a general purpose T-frame, single-speed, foot-mounting, poly-
phase squirrel-cage induction motor of the National Electrical 
Manufacturers Association, Design A and B, continuous rated, 
operating on 230/460 volts and constant 60 Hertz line power 
as defined in NEMA Standards PubUcation MGl-1987. 
"(B) The term 'definite purpose motor* means any motor 
designed in stendard ratings with st£uidard operating 
characteristics or standard mechanical construction for use 
under service conditions other than usual or for use on a 
particular type of application and which cannot be used in 
most general purpose applications. 
"(C) The term 'special purpose motor' means any motor, 
other than a general purpose motor or definite purpose motor, 
which has special operating characteristics or special mechani-
cal construction, or both, designed for a particular application. 
"(D) The term 'open motoP means a motor having ventilat-
ing openings which permit passage of external cooling air over 
and around the windings of the machine. 
"(E) The term 'enclosed motor' means a motor so enclosed 
as to prevent the free exchange of air between the inside 
and outside of the case but not sufficiently enclosed to be 
termed airtight. 
"(F) The term 'small electric motor' means a NEMA general 
purpose alternating current single-speed induction motor, built 
m a two-digit 
firame 
number series in accordance with NEMA 
Standards Publication MGl-1987. 
"(G) The term 'efficiency' when used with respect to an 
electric motor means the ratio of an electric motor's useful 
power output to its total power input, expressed in percentage. 
106 STAT. 2808 
PUBLIC LAW 102-486—OCT. 24, 1992 
''(H) The term 'nominal full load efficiency means the aver-
age efficiency of a population of motors of duplicate design 
as determined in accordance with NEMA Standards Publication 
MGl-1987. 
"(14) The term 'ASHRAE' means the American Society 
of Heating, Refrigerating, and Air Conditioning Engineers. 
"(15) The term lES' means the Illuminating Engineering 
Society of North America. 
"(16) The term "NEMA' means the National Electrical 
Manufacturers Association. 
"(17) The term 'IEEE' means the Institute of Electrical 
and Electronics Engineers. 
"(18) The term 'energy conservation standard' means— 
"(A) a performance standard that prescribes a mini-
mum level of energy efficiency or a maximum quantity 
of energy use for a product; or 
"(B) a design requirement for a product.". 
(b) TEST PROCEDURES.—(1) Section 343(a) of such Act (42 U.S.C. 
6314) is amended— 
(A) by striking out paragraph (1) and inserting in lieu 
thereof the following: 
"(1) The Secretary may conduct an evaluation of a class of 
covered equipment and may prescribe test procedures for such 
class in accordance with the provisions of this section."; and 
(B) by adding at tne end the following new paragraphs: 
"(4)(A) With respect to small commercial package air condi-
tioning and heating equipment, large commercial package air condi-
tioning and heating equipment, packaged terminal air conditioners, 
packaged terminal heat pumps, warm-air furnaces, packaged boil-
ers, storage water heaters, instantaneous water heaters, and unflred 
hot water storage tanks to which standards are applicable under 
section 342, the test procedures shall be those generally accepted 
industry testing procedures or rating procedures developed or recog-
nized by the Air-Conditioning and Refrigeration Institute or by 
the American Society of Heating, Refrigerating and Air Conditioning 
Engineers, as referenced in ASHRAE/IES Standard 90.1 and in 
effect on June 30,1992. 
Federal 
«
*
(
B
) If such an industry test procedure or rating procedure 
™?wf^finr, 
^^^ small commercial package air conditioning and heating equip-
ment, large commercial package air conditioning and heating eouip-
ment, packaged terminal air conditioners, packaged terminal neat 
pumps, warm-air furnaces, packaged boilers, storage water heaters, 
mstantaneous water heaters, or unfired hot water storage tanks 
is amended, the Secretary shall amend the test procedure for the 
product as necessary to be consistent vath the amended industry 
test procedure or rating procedure unless the Secretary determines, 
by rule, pubUshed in tne Federal Register and supported by clear 
and convmcing evidence, that to do so would not meet the require-
ments for test procedures described in paragraphs (2) and (3) of 
this subsection. 
"(C) If the Secretary prescribes a rule conteining such a deter-
mination, the rule may esteblish an amended test procedure for 
such product that meets the requirements of paragraphs (2) and 
(3) of this subsection. In esteblishing any amended test procedure 
under this subparagraph or subparagraph (B), the Secretary shall 
follow the procedures and meet the requirements specified in section 
323(e). 
publication. 
PUBUC LAW 102-486—CKTT. 24,1992 
106 STAT. 2809 
'X5XA) With respect to electric motors to which standards are 
applicable under section 342, the test procedures shall be the test 
procedures specified in NEMA Standards Publication MGl-1987 
and IEEE Standard 112 Test Method B for motor efficiency, as 
in effect on the date of the enactment of the Energy Policy Act 
of 1992. 
'XB) If the test procedure requirements of NEMA Standards Federal 
PubUcation MG-1987 and IEEE Standard 112 Test Method B for ^^[>on 
motor efifideni^ are amended, the Secretary shall amend the test 
procedures established by subparagraph (A) to conform to such 
amended test procedure re(]uirements unless the Secretary deter-
mines, by rule, published in the Federal Register and supported 
by clear and convincing evidence, that to do so would not meet 
the requirements for test procedures described in paragraphs (2) 
and (3) of this subsection. 
"(C) If the Secretary prescribes a rule containing such a deter-
mination, the rule may establish amended test procedures for such 
electric motors that meets the requirements of paragraphs (2) and 
(3) of this subsection. In establishing any amended test procedure 
under this subparagraph or subparagraim (B), the Secretary shall 
follow the procedures and meet the requirements specified in section 
323(e).". 
(2) The second subsection designated as subsection (d) of section 
343 of such Act (42 U.S.C. 6314(dXl)) is amended in paragraph 
(1) in the material precedii^ subparagraph (A), by inserting after 
"180 days" the following: '\OT, in the case of small commercial 
package air conditiomng and heating equipment, large commercial 
package air conditioning and heating equipment, packaged terminal 
air conditioners, packaged terminal heat pumps, warm-air fiimaces, 
packaged boilers, storage water heaters, instantaneous water heat-
ers, and unfired hot water storage tanks, 360 days)". 
(c) LABELING.—Section 344 of such Act (42 U.S.C. 6315) is 
amended— 
(1) in subsection (a), by striking out "may" and inserting 
in lieu thereof "shall"; 
(2) in subsection (c), by striking out "may" in the material 
prece^ng paragraph (1) and inserting in lieu thereof "shall"; 
(3) by redesignating subsections (d), (e), (f), (g), (h), and 
(i) as subsections (f), (g), (h), (i), (j), and (k), respectively; and 
(4) by inserting after subsection (c), ^e following new 
subsections: 
"(d) Subject to subsection (h), not later than 12 months afl«r 
the Secretary establishes test procedures for electric motors under 
section 343, the Secretary shall prescribe labeling rules under this 
section applicable to electric motors taking into consideration NEMA 
Standaros Publication MGl-1987. Such rules shall provide that 
the labeling of any electric motor manufactured after the 12-month 
period beginning on the date the Secretary prescribes such labeling 
rules, shall— 
"(1) indicate the energy efiGdenQr of the motor on the 
permanent nameplate attadied to such motor; 
"(2) prominently display tiie energy efficiency of the motor 
in equipment catalogs and other material used to market tiie 
equipment; and 
(3) include such other markings as the Secretary deter-
mines necessary solely to facilitate embrcement of the standuxis 
established for electric motors under section 342. 
106 STAT. 2810 
PUBLIC LAW 102-486—OCT. 24, 1992 
"(e) Subject to subsection (h), not later than 12 months after 
the Secretary establishes test procedures for small commercied pack-
age air conditioning and heating equipment, large commercial pack-
age air conditioning and heating equipment, packaged terminal 
air conditioners, packaged terminal heat pumps, warm-air furnaces, 
packaged boilers, storage water heaters, instantaneous water heat-
ers, and unfired hot water storage tanks under section 343, the 
Secretary shall prescribe labeling rules under this section for such 
equipment. Such rules shall provide that the labeling of any small 
commercisd package air conditioning and heating equipment, large 
commercisd package air conditioning and heating equipment, 
packaged terminal air conditioner, packaged terminal heat pump, 
warm-air furnace, packaged boiler, storage water heater, instanta-
neous water heater, and luiflred hot water storage tank manufac-
tured after the 12-month period beginning on the date the Secretary 
prescribes such rules shall— 
"(1) indicate the energy efficiency of the equipment on 
the permanent nameplate attached to such equipment or other 
nearby permanent marking; 
"(2) prominently display the energy efficiency of the equip-
ment in new equipment catelogs used by the manufacturer 
to advertise the equipment; and 
"(3) include such other markings as the Secretary deter-
mines necessary solely to facilitete enforcement of the stendards 
esteblished for such equipment under section 342.". 
42 use 6313. 
(d) STANDARDS.—Section 342 of such Act is amended to read 
as follows: 
"STANDARDS 
"SEC. 342. 
(a) SMALL AND LARGE COMMERCIAL PACKAGE AIR 
CONDITIONING AND HEATING EQUIPMENT, PACKAGED TERMINAL AIR 
CONDITIONERS AND HEAT PUMPS, WARM-AIR FURNACES, PACKAGED 
BOILERS, STORAGE WATER HEATERS, INSTANTANEOUS WATER HEAT-
ERS, A
N
D UNFIRED HOT WATER STORAGE TANKS.—(1) Each small 
commercial package air conditioning and heating equipment manu-
factured on or after January 1, 1994, shall meet the following 
standard levels: 
"(A) The minimum seasonal energy efficiency ratio of air-
cooled three-phase electric central air conditioners and central 
air conditioning heat pumps less than 65,000 Btu per hour 
(cooling capacity), split systems, shall be 10.0. 
"(B) The minimum seasonal energy efficiency ratio of air-
cooled three-phase electric central air conditioners and central 
air conditioning heat piunps less than 65,000 Btu per hour 
(cooling capacity), single package, shall be 9.7. 
"(C) The minimum energy efficiency ratio of air-cooled 
central air conditioners and central air conditioning heat pumps 
at or above 65,000 Btu per hour (cooling capacity) and less 
than 135,000 Btu per hour (cooling capacity) shall be 8.9 (at 
a standard rating of 95 degrees F db). 
"(D) The minimum heating seasonal performance factor 
of air-cooled three-phase electric central air conditioning heat 
pumps less than 65,000 Btu per hour (cooling capacity), split 
systems, shall be 6.8. 
"(E) The minimum heating seasonal performance factor 
of air-cooled three-phase electric central air conditioning heat 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2811 
pumps less than 65,000 Btu per hour (cooling capacity), single 
package, shall be 6.6. 
"(F) The minimum coefficient of performance in the heating 
mode of air-cooled central air conditioning heat pimips at or 
above 65,000 Btu per hour (cooling capacity) and less than 
135,000 Btu per hour (cooling capacity) shall be 3.0 (at a 
high temperature rating of 47 degrees F db). 
"(G) The minimum energy efficiency ratio of water-cooled, 
evaporatively-cooled and water-source central air conditioners 
and central air conditioning heat pumps less than 65,000 Btu 
per hour (cooling capacity) shall be 9.3 (at a standard rating 
of 95 degrees F db, outdoor temperature for evaporatively cooled 
equipment, and 85 degrees Falurenheit entering water tempera-
ture for water-source and water-cooled equipment). 
"(H) The minimum energy efficiency ratio of water-cooled, 
evaporatively-cooled and water-source central air conditioners 
and central air conditioning heat pumps at or above 65,000 
Btu per hour (cooling capacitv) and less than 135,000 Btu 
per hour (cooling capacity) shall be 10.5 (at a standard rating 
of 95 degrees F db, outdoor temperature for evaporatively cooled 
equipment, and 85 degrees Fahrenheit entering water tempera-
ture for water source and water-cooled equipment). 
"(I) The minimum coefficient of performance in the heating 
mode of water-source heat pumps less than 135,000 Btu per 
hour (cooling capacity) shall be 3.8 (at a standard rating of 
70 degrees Fahrenheit entering water). 
"(2) Each large commercial package air conditioning and heat-
ing equipment manufactured on or after Janufury 1, 1995, shall 
meet the following standard levels: 
"(A) The minimum energy efficiency ratio of air-cooled 
central air conditioners and central air conditioning heat pumps 
at or above 135,000 Btu per hour (cooling capacity) and less 
than 240,000 Btu per hour (cooling capacity) shall be 8.5 (at 
a standard rating of 95 degrees F db). 
"(B) The minimum coefficient of performance in the heating 
mode of air-cooled central air conditioning heat pumps at or 
above 135,000 Btu per hour (cooling capacity) and less than 
240,000 Btu per hour (cooling capacity) shall be 2.9. 
**(€) The minimum energy efficiency ratio of water- and 
evaporatively-cooled central air conditioners and central air 
conditioning heat pumps at or above 135,000 Btu per hour 
(cooling capacity) and less than 240,000 Btu per hour (cooling 
capacity) shall be 9.6 (according to ARI Standard 360-86). 
'^(3) Each packaged terminal air conditioner and packaged 
terminal heat jpumj) manufactured on or after January 1, 1^4, 
shall meet the following standard levels: 
"(A) The minimum energy efficiency ratio (EER) of 
packaged terminal air conditioners and packaged terminal heat 
{>umps in the cooling mode shall be 10.0 — (0.16 x Capacity 
in thousands of Btu per hour at a standard rating of 95 
degrees F db, outdoor temperature]). If a unit has a capacity 
of less than 7,000 Btu per hour, then 7,000 Btu per hour 
shall be used in the calculation. If a unit has a capacity of 
greater than 15,000 Btu per hour, then 15,000 Btu per hour 
shall be used in the calculation. 
"(B) The minimum coefficient of performance (COP) of 
packaged terminal heat pumps in the heating mode shall be 
106 STAT. 2812 
PUBLIC LAW 102-486—OCT. 24, 1992 
1.3 + (0.16 X the minimum cooling EER as specified in subpara-
graph (A)) (at a standard rating of 47 degrees F db). 
(4) Each warm air furnace and packaged boiler manufactured 
on or after January 1, 1994, shall meet the following standard 
levels: 
"(A) The minimum thermal efficiency at the maximum 
rated capacity of gas-fired warm-air furnaces with capacity 
of 225,000 Btu per hour or more shall be 80 percent. 
"(B) The minimum thermal efficiency at the maximum 
rated capacity of oil-fired warm-air furnaces with capacity of 
225,000 Btu per hour or more shall be 81 percent. 
"(C) The minimum combustion efficiency at the maximum 
rated capacity of gas-fired packaged boilers with capacity of 
300,000 Btu per hour or more shall be 80 percent. 
"(D) The minimum combustion efficiency at the maximiun 
rated capacity of oil-fired packaged boilers with capacity of 
300,000 Btu per hour or more shallbe 83 percent. 
"(5) Each storage water heater, instantaneous water heater, 
and unfired water storage tank manufactured on or after January 
1,1994, shall meet the following standard levels: 
"(A) Except as providea in subparagraph (G), the maximum 
standby loss, in percent per hour, of electric storage water 
heaters shall be 0.30 + (27/Measured Storage Volume [in gal-
lons]). 
"(B) Except as provided in subparagraph (G), the maximum 
standby loss, in percent per hour, of gas- and oil-fired storage 
water heaters with input ratings of 155,000 Btu per hour 
or less shall be 1.30 + (114/Measured Storage Volume [in gal-
lons]). The minimum thermal efficiency of such units shall 
be 78 percent. 
"(C) Except as provided in subparagraph (G), the maximum 
standby loss, in percent per hour, of gas- and oil-fired storage 
water heaters with input ratings of more than 155,000 Btu 
per hour shall be 1.30 + (95/Measured Storage Volume [in 
gallons]). The minimum thermal efficiency of such units shall 
be 78 percent. 
"(D) The minimum thermal efficienQr of instantaneous 
water heaters with a storage volume of less than 10 gallons 
shall be 80 percent. 
"(E) Except as provided in subparagraph (G), the minimum 
thermal efficiency of instantaneous water heaters with a storage 
volume of 10 gallons or more shall be 77 percent. The maximum 
standby loss, in percent/hour, of such units shall be 2.30 •
»
-
(67/Measured Storage Volume [in gallons]). 
"(F) Except as provided in subparagraph (G), the maximimi 
heat loss of unfired hot water storage tanks shall be 6.5 Btu 
per hour per square foot of tank surface area. 
"(G) Storage water heaters and hot water storage tanks 
having more man 140 gallons of storage capacity need not 
meet the standby loss or heat loss requirements specified in 
subparagraphs (A) through (C) and subparagraphs (E) and 
(F) if the tank siuface area is thermally insmated to Rr-12.5 
and if a standing pilot Ught is not used. 
Federal 
"(6XA) If ASHRAE/IES Standard 90.1, as in effect on the date 
^^^Y: 
of enactment of the Energy Policy Act of 1992, is amended with 
pu ica ion. 
respect to any small commercial package air conditioning and heat-
ing equipment, large commercial package air conditioning and heat-
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2813 
ing equipment, packaged terminal air conditioners, packaged termi-
nal heat pumps, warm-air furnaces, packaged boilers, storage water 
heaters, mstantaneous water heaters, or unfired hot water storage 
tanks, the Secretary shall establish an amended uniform national 
standard for that product at the minimum level for each effective 
date specified in the amended ASHRAEVIES Standard 90.1, unless 
the Secretary determines, by rule published in the Federal Register 
and supported by clear and convincing evidence, that adoption 
of a imiform national standard more stringent than such amended 
ASHRAE/IES Standard 90.1 for such product would result in signifi-
cant additional conservation of energy and is technologically feasible 
and economically justified. 
"(B)(i) If the Secretary issues a rule containing such a deter-
mination, the rule shall establish such amended standard. In deter-
mining whether a standard is economically justified for the purposes 
of subparagraph (A), the Secretary shall, after receiving views and 
comments furnished with respect to the proposed standard, deter-
mine whether the benefits of the standard exceed its burdens by, 
to the greatest extent practicable, considering— 
"(I) the economic impact of the standard on the manufactur-
ers and on the consimiers of the products subject to such 
standard; 
"(II) the savings in operating costs throughout the esti-
mated average life of the product in the type (or class) compared 
to any increase in the price of, or in the initial charges for, 
or maintenance expenses of, the products which are likely to 
result from the imposition of the standard; 
"(III) the total projected amount of energy savings likely 
to result directlv from the imposition of the standard; 
"(IV) any lessening of the utility or the performance of 
the products likely to result from the imposition of the standard; 
"(V) the impact of any lessening of competition, as deter-
mined in writing by the Attorney General, that is likely to 
result from the imposition of the standard; 
"(VI) the need for national energy conservation; and 
"(VII) other factors the Secretary considers relevant, 
"(ii) The Secretary may not prescribe any amended standard 
under this paragraph which increases the maximum allowable 
energy use, or decreases the minimum required energy efficiency, 
of a covered product. The Secretary may not prescribe an amended 
standard imder this subparagraph if the Secretary finds (and pub-
lishes such finding) that interested persons have established by 
a preponderance of the evidence that a standard is likely to result 
in the imavailability in the United States in any product type 
(or class) of performance characteristics (including reliabilitv), fea-
tures, sizes, capacities, and >^olumes that are substantially the 
same as those generally available in the United States at the 
time of the Secretary's finding. The failure of some types (or classes) 
to meet this criterion shall not affect the Secretar/s determination 
of whether to prescribe a standard for other types or classes. 
"(C) A standard amended by the Secretary under this paragraph 
shall become effective for products manufactured— 
"(i) with respect to small commercial package air condi-
tioning and heating equipment, packaged terminal air condi-
tioners, packaged terminal heat pumps, warm-air furnaces, 
packaged boilers, storage water heaters, instantaneous water 
heaters, and unfired hot water storage tanks, on or after a 
106 STAT. 2814 
PUBLIC LAW 102-486—OCT. 24, 1992 
Federal 
Register, 
publication. 
date which is two years after the efTective date of the applicable 
minimum energy efficiency requirement in the amended 
ASHRAE2/IES standard referred to in subparagraph (A); and 
"(ii) with respect to large commercial package air condi-
tioning and heatmg equipment, on or after a date which is 
three years after the enective date of the applicable minimum 
energy efficiency recjuirement in the amended ASHRAE/IES 
standard referred to in subparagraph (A); 
except that an energy conservation standard amended by the Sec-
retary pursuant to a rule under subparagraph (B) shall become 
effective for products manufactured on or alter a date which is 
four years after the date such rule is published in the Federal 
Register. 
"(b) ELECTRIC MOTORS.—(1) Except for definite purpose motors, 
special purpose motors, and those motors exempted by tne Secretary 
under paragraph (2), each electric motor manufactured (alone or 
as a component of another piece of equipment) after the 60-month 
period beginning on the date of the enactment of this subsection, 
or in the case of an electric motor which requires listing or certifi-
cation by a nationally recognized safety testing laboratory, after 
the 84-month period beginning on such date, shall have a nominal 
full load efficiency of not less Uian the following: 
'dumber of poles 
'Nominal Full-Load Efficiency 
Open Motors 
6 
2 
Closed Motors 
6 
2 
Motor Horsepower 
1 
80.0 
82.5 
80.0 
82.5 
75,5 
1.5 
84.0 
84.0 
82.5 
85.6 
84.0 
82,5 
2 
85.5 
84.0 
84.0 
86.5 
84.0 84.0 
3 
86,5 
86,5 
84.0 
87.5 
87.5 85.6 
5 
87.5 
87.5 
85.6 
87.5 
87.5 
87.5 
7.6 
88.5 
88.6 
87.5 
89.5 
89.5 88.5 
10 
90.2 
89.5 
88.5 
89.5 
89.6 
89.5 
16 
90.2 
91.0 
89.6 
90.2 
91.0 90.2 
20 
91.0 
91.0 
90.2 
90.2 
91.0 90.2 
26 
91.7 
91.7 
91.0 
91.7 
92.4 91.0 
30 
92.4 
92.4 
91.0 
91.7 
92.4 91.0 
40 
93.0 
93.0 
91.7 
93.0 
93.0 91.7 
50 
93.0 
93.0 
92.4 
93.0 
93.0 92.4 
60 
93.6 
93.6 
93.0 
93.6 
93.6 93.0 
75 
93.6 
94.1 
93.0 
93.6 
94.1 93.0 
100 
94.1 
94.1 
93.0 
94.1 
94.5 93.6 
126 
94.1 
94.5 
93.6 
94.1 
94.6 
94.6 
160 
94.6 
95.0 
93.6 
96.0 
96.0 94.6 
200 
94.6 
96.0 
94.6 
96.0 
96.0 96.0 
''(2XA) The Secretary may, by rule, provide that the standards 
specified in paragraph (1) shall not apply to certain types or classes 
of electric motors if— 
"(i) compliance with such standards would not result in 
significant energy savings because such motors cannot be used 
in most general purpose applications or are very unlikely to 
be used in most general purpose applications; and 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2815 
"(ii) standards for such motors would not be technologically 
feasible or economically justified. 
"(B) Not later than one year after the date of the enactment 
of this subsection, a manufacturer seeking an exemption imder 
this paragraph with respect to a type or class of electric motor 
developed on or before the date of the enactment of such subsection 
shall submit a petition to the Secretary requesting such exemption. 
Such petition shall include evidence that the type or class of motor 
meets the criteria for exemption specified in subparagraph (A). 
''(C) Not later than two years after the date of the enactment 
of this subsection, the Secretary shall rule on each petition for 
exemption submitted pursuant to subparagraph (B). In making 
such ruling, the Secretary shall afford an opportunity for public 
comment. 
"(D) Manufacturers of t3rpes or classes of motors developed 
after the date of the enactment of this subsection to which standards 
under paragraph (1) would be applicable may petition the Secretary 
for exemptions from compliance with such standards based on the 
criteria specified in subparagraph (A). 
"(3XA) The Secretary shall publish a final rule no later than Regulations. 
the end of the 24-month period beginning on the effective date 
of the standards established under paragraph (1) to determine 
if such standards should be amended. Such rule shall provide 
that any amendment shall apply to electric motors manufactured 
on or after a date which is five years after the effective date 
of the standards established under paragraph (1). 
**(B) The Secretary shall publish a final rule no later than Regulations. 
24 months after the effective date of the previous final rule to 
determine whether to amend the standards in effect for such prod-
uct. Any such amendment shall apply to electric motors manufac-
tured after a date which is five years after— 
"(i) the effective date of the previous amendment; or 
"(ii) if the previous final rule did not amend the standards, 
the earliest date by which a previous amendment could have 
been effective.". 
(e) ADMINISTRATION, PENALTIES, ENFORCEMENT, AND PREEMP-
TION.—(1) Section 345(a) of such Act (42 U.S.C. 6316(a)) is 
amended— 
(A) in the material preceding paragraph (1)— 
(i) by inserting after "to this part the following: "(other 
than the equipment specified in subparagraphs (B), (C), 
(D), (E), and (F) of section 340(1))"; and 
(ii) by striking out "and sections 328" and inserting 
in lieu thereof ", the provisions of subsections (1) through 
(s) of section 325, and section 327"; 
(B) in paragraph (1)— 
(i) by stnking out "and 324" and inserting in lieu 
thereof", 324, and 325"; and 
(ii) by striking out "343 and 344, respectively^ and 
inserting in lieu thereof "343, 344, and 342, respectively"; 
(C) in paragraph (3), by striking out "and" at the end 
thereof; 
(D) in paragraph (4), by striking out the period and insert-
ing in lieu Uiereof a semicolon; and 
(E) by adding after paragraph (4) the following new para-
graphs: 
106 STAT. 2816 
PUBLIC LAW 102-486—OCT. 24, 1992 
"(5) section 327(a) shall be applied, in the case of electric 
motors, as if the National Appliance Energy Conservation Act 
of 1987 was the Energy Policy Act of 1992; 
"(6) section 327(b)(1) shall be applied as if electric motors 
were fluorescent lamp ballasts and as if the National Appliance 
Energy Conservation Amendments of 1988 were the Energy 
PolicvActofl992; 
(7) section 327(bX4) shall be applied as if electric motors 
were fluorescent lamp ballasts and as if paragraph (5) of section 
325(g) were section 342; and 
"(8) notwithstanding any other provision of law, a re^fula-
tion or other requirement adopted by a State or subdivision 
of a State contained in a State or local building code for new 
construction concerning the energy efficiency or energy use 
of an electric motor covered under this part is not superseded 
by the standards for such electric motor established or pre-
scribed under section 342(b) if such regulation or requirement 
is identical to the standards established or prescribed under 
such section " 
(2) Section 345 of such Act (42 U.S.C. 6316) is amended by 
adding at the end the following new subsections: 
"(b)(1) The provisions of section 326(a), (b), and (d), section 
327(a), and sections 328 through 336 shall apply with respect to 
the equipment specified in subparagraphs (B), (C), (D), (E), and 
(F) of section 340(1) to the same extent and in the same manner 
as they apply in part B. In applying such provisions for the purposes 
of such equipment, paragraphs (1), (2), (3), and (4) of subsection 
(a) shall apply. 
"(2)(A) A standard prescribed or established under section 
342(a) shall, beginning on the efiTective date of such standard, 
supersede any State or local regulation concerning the energy effi-
ciency or energy use of a product for which a standard is prescribed 
or established pursuant to such section. 
"(B) Notwithstanding subparagraph (A), a standard prescribed 
or established under section 342(a) shall not supersede a standard 
for such a product contained in a State or local building code 
for new construction if— 
"(i) the standard in the building code does not require 
that the energy efficiency of such product exceed the applicable 
minimum energy efficiency requirement in amended ASHRAE/ 
lES Standard 90.1; and 
"(ii) the standard in the building code does not take effect 
prior to the effective date of the applicable minimum energy 
efficiency requirement in amended ASHRAE/IES Standard 
90.1. 
"(C) Notwithstanding subparagraph (A), a standard prescribed 
or established under section 342(a) shall not supersede the stand-
ards established by the State of CJalifomia set forth in Table C-
6, California Code of Regulations, Title 24, Part 2, Chapter 2-
53, for water-source heat pumps below 135,000 Btu per hour (cooling 
capacity) that become effiective on January 1,1993. 
"(D) Notwithstanding subparagraph (A), a standard prescribed 
or established under section 342(a) shall not supersede a State 
regulation which has been granted a waiver by the Secretary. 
The Secretary may grant a waiver pursuant to the terms, conditions, 
criteria, procedures, and other requirements specified in section 
327(d) of this Act. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2817 
"(c) With respect to any electric motor to which standards 
are applicable under section 342(b), the Secretary shall require 
manufacturers to certify, through an independent testing or certifi-
cation program nationally recognized in the United States, that 
such motor meets the applicable. . 
(3) Section 345 of such Act (42 U.S.C. 6316) is amended by 
striking out the section heading and inserting in lieu thereof 
"ADMINISTRATION, PENALTIES, ENFORCEMENT, AND PREEMPTION". 
(f) TECHNICAL AMENDMENTS.—(1) Section 340(3) of such Act 42 use 63n. 
is amended by striking out "(3) the" and inserting in lieu thereof 
the following: "(3) The". 
(2) Section 343 of such Act (42 U.S.C. 6314) is amended by 
redesignating the first subsection designated as subsection (d) as 
subsection (c). 
(3) The table of contents of such Act is amended— 
(A) by striking out the item relating to section 342 and 
inserting in lieu thereof the following new item: 
"Sec. 342. Standards."; 
and 
(B) by striking the item for section 345 and inserting in 
lieu thereof the following new item: 
"Sec. 345. Administration, penalties, enforcement, and preemption.". 
SEC. 123. ENERGY CONSERVATION REQUIREMENTS FOR CERTAIN 
LAMPS AND PLUMBING PRODUCTS. 
(a) STATEMENT OF PURPOSE.—Section 2 of the Energy Policy 
and Conservation Act (42 U.S.C. 6201) is amended— 
(1) in paragraph (6), by striking out "and" at the end; 
(2) in paragraph (7), by striking out the period at the 
end and inserting in lieu thereof"; and"; and 
(3) by adding at the end the following new paragraph: 
"(8) to conserve water by improving the water efficiency 
of certain plumbing products and appliances.". 
(b) DEFINITIONS.—Section 321(a) of the Energy Policy and Con-
servation Act (42 U.S.C. 6291(a)) is amended— 
(1) by striking out the subsection designation; 
(2) in paragraph (1)— 
(A) in subparagraph (A), by inserting before the semi-
colon the following: "or, with respect to showerheads, 
faucets, water closets, and urinals, water"; and 
(B) in subparagraph (B), by striking out "ballasts" and 
inserting in lieu thereof the following: "ballasts, general 
service fluorescent lamps, incandescent reflector lamps, 
showerheads, faucets, water closets, and urinals"; 
(3) in paragraph (6)— 
(A) in subparagraph (A), by inserting ", or, in the 
case of showerheads, faucets, water closets, and urinals, 
water use," afl^r "energy use"; and 
(B) in subparagrapn (B)— 
(i) by striking out "and (14)" and inserting in lieu 
thereof "(15), (16), (17), and (19)"; and 
(ii) by striking out "325(o)" and inserting in lieu 
thereof "325(r)"; 
(4) in paragraph (7), by inserting afl;er "to be consumed 
annually the following: ", and in the case of showerheads, 
faucets, water closets, and urinals, the aggregate retail cost 
106 STAT. 2818 
PUBLIC LAW 102-486—OCT. 24, 1992 
of water and wastewater treatment services likely to be 
incurred annually,"; and 
(5) by adding at the end the following new paragraphs: 
"(30)(A) Except as provided in subparagraph (E), the term 
'fluorescent lamp' means a low pressure mercury electric-dis-
charge source in which a fluorescing coating transforms some 
of the ultraviolet energy generated by the mercury discharge 
into light, including only the following: 
"(i) Any straight-shaped lamp (commonly referred to 
as 4-foot medium oi-pin lamps) with medium bi-pin bases 
of nominal overall length of 48 inches and rated wattage 
of 28 or more. 
"(ii) Any U-shaped lamp (commonly referred to as 2-
foot U-shaped lamps) with medium bi-pin bases of nominal 
overall length between 22 and 25 inches and rated wattage 
of28ormore. 
"(iii) Any rapid start lamp (commonly referred to as 
8-foot high output lamps) with recessed double contact 
bases of nominal overall length of 96 inches and 0.800 
nominal amperes, as defined in ANSI 078.1-1978 and 
related supplements. 
"(iv) Any instant start lamp (commonly referred to 
as 8-foot slimline lamps) with single pin bases of nominal 
overall length of 96 inches and rated wattage of 52 or 
more, as defined in ANSI C78.3-1978 (R1984) and related 
supplement ANSI C78.3a-1985. 
"(B) The term 'general service fluorescent lamp' means 
fluorescent lamps which can be used to satisfy the majority 
of fluorescent applications, but does not include any lamp 
designed and marketed for the following nongeneral lighting 
applications: 
"(i) Fluorescent lamps designed to promote plant 
growth. 
"(ii) Fluorescent lamps specifically designed for cold 
temperature installations. 
"(iii) Colored fluorescent lamps, 
"(iv) Impact-resistant fluorescent lamps, 
"(v) Reflectorized or aperture lamps, 
"(vi) 
Fluorescent 
lamps 
designed 
for 
use 
in 
reprographic equipment. 
"(vii) Lamps primarily designed to produce radiation 
in the ultra-violet region of the spectrum. 
"(viii) Lamps with a color rendering index of 82 or 
greater. 
"(C) Except as provided in subpara^aph (E), the term 
'incandescent lamp' means a lamp in which light is produced 
by a filament heated to incandescence by an electric current, 
including only the following: 
"(i) Any lamp (commonlv referred to as lower wattage 
nonreflector general service lamps, including any tungsten-
halogen lamp) that has a rated wattage between 30 and 
199 watts, has an E26 medium screw base, has a rated 
voltage or voltage range that lies at least partially within 
115 and 130 volts, and is not a reflector lamp. 
"(ii) Any lamp (commonly referred to as a reflector 
lamp) which is not colored or designed for rough or vibra-
tion service applications, that contains an inner reflective 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2819 
coating on the outer bulb to direct the light, an R, PAR, 
or similar bulb shapes (excluding ER or BR) witii E26 
medium screw bases, a rated voltage or voltage range that 
lies at least partially within 115 and 130 volts, a diameter 
which exceeds 2.75 inches, and is either— 
"(I) a low(er) wattage reflector lamp which has 
a rated wattage between 40 and 205 watts; or 
"(ID a high(er) wattage reflector lamp which has 
a rated wattage above 205 watts. 
"(iii) Any general service incandescent lamp (commonly 
referred to as a high- or higher-wattage lamp) that has 
a rated wattage above 199 watts (above 205 watts for 
a high wattage reflector lamp). 
"(D) The term 'general service incandescent lamp' means 
any incandescent lamp (other than a miniature or photographic 
lamp) that has an E26 medium screw base, a rated voltage 
range at least partially within 115 and 130 volts, and which 
can be used to satisfy the mcgority of lighting applications, 
but does not include any lamps specifically designed for— 
"(i) traffic signal, or street lighting service; 
"(ii) airway, airport, aircraft, or other aviation service; 
'*(iii) marine or marine signal service; 
"(iv) photo, projection, sound reproduction, or fUm 
viewer service; 
"
^
(
v
) stage, studio, or television service; 
"(vi) mill, saw mill, or other industrial process service; 
"(vii) mine service; 
"(viii) headlight, locomotive, street railway, or other 
transportation service; 
**(ix) heating service; 
''(x) code beacon, marine signal, lighthouse, repro-
graphic, or other communication service; 
"(xi) medical or dental service; 
"(xii) microscope, map, microfilm, or other specialized 
equipment service; 
"(xiii) swimming pool or other underwater service; 
"(xiv) decorative or showcase service; 
"(xv) producing colored Ught; 
"(xvi) shatter resistance which has an external protect 
tive coating; or 
"(xvii) appliance service. 
"(E) The terms fluorescent lamp' and Incandescent lamp' 
do not include any lamp excluded by the Secretary, by rule, 
as a result of a determination that standards for such lamp 
would not result in significant energy savings because such 
lamp is designed for special applications or has special 
characteristics not available in reasonably substitutable lamp 
types. 
"(F) The term Incandescent reflector lamp' means a lamp 
described in subparagraph (CXii). 
"(G) The term 'average lamp efficacy' means the lamp 
efficacy readings taken over a statistically significant period 
of manufacture with the readings averaged over that period. 
"(H) The term l^ase' means the portion of the lamp which 
connects with the socket as described in ANSI C81.61-1990. 
106 STAT. 2820 
PUBLIC LAW 102-486—OCT. 24, 1992 
"(I) The term 'bulb shape' means the shape of lamp, espe-
cially the glass bulb with designations for bulb shapes found 
in ANSI 079.1-1980 (R1984). 
"(J) The term 'color rendering index' or 'CRF means the 
measure of the degree of color shift objects undergo when 
illuminated by a light source as compared with the color of 
those same objects when illuminated by a reference source 
of comparable color temperature. 
"(K) The term 'correlated color temperature' means the 
absolute temperature of a blackbody whose chromaticity most 
nearly resembles that of the light source. 
"(L) The term 'lES' means the Illuminating Engineering 
Society of North America. 
"(M) The term 'lamp efficac/ means the lumen output 
of a lamp divided by its wattage, expressed in lumens per 
watt (LPW). 
"(N) The term 'lamp type' means all lamps designated 
as having the same electrical and lighting characteristics and 
made by one manufacturer. 
"(O) The term 'lamp wattage' means the total electrical 
power consumed by a lamp in watts, after the initial seasoning 
period referenced in the appropriate lES standard test proce-
dure and including, for fluorescent, arc watts plus cathode 
watts. 
"(P) The terms 'life' and 'lifetime' mean length of operating 
time of a statistically large group of lamps between first use 
and failure of 50 percent of the group in accordance with 
test procedures described in the lES Lighting Handbook-Ref-
erence Volume. 
"(Q) The term 'lumen output' means total luminous flux 
(power) of a lamp in lumens, as measured in accordance with 
applicable lES standards as determined by the Secretary. 
"(R) The term 'tungsten-halogen lamp' means a gas-filled 
tungsten filament incandescent lamp containing a certain 
proportion of halogens in an inert gas. 
"(S) The term 'medium base compact fluorescent lamp' 
means an integrally ballasted fluorescent lamp with a medium 
screw base and a rated input voltage of 115 to 130 volts 
and which is designed as a direct replacement for a general 
service incandescent lamp. 
"(31)(A) The term 'water use' means the quantity of water 
flowing through a showerhead, faucet, water closet, or urinal 
at point of use, determined in accordance with test procedures 
under section 323. 
"(B) The term 'ASME' means the American Society of 
Mechanical Engineers. 
"(C) The term 'ANSI' means the American National Stand-
ards Institute. 
"(D) The term 'showerhead' means any showerhead (includ-
ing 
a 
handheld 
showerhead), 
except 
a 
safety 
shower 
showerhead. 
"(E) The term 'faucet' means a lavatory faucet, kitchen 
faucet, metering faucet, or replacement aerator for a lavatory 
or kitchen faucet. 
"(F) The term 'water closet' has the meaning given such 
term in ASME A112.19.2M-1990, except such term does not 
include fixtures designed for installation in prisons. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2821 
"(G) The term 'urinal' has the meaning given such term 
in ASME A112.19.2M-1990, except such term does not include 
fixtures designed for installation in prisons. 
"(H) The terms *blowout*, 'flushometer tank', low consump-
tion', and 'flushometer valve' have the meaning given such 
terms in ASME A112.19.2M-1990.''. 
(c) COVERAGE.—Section 322(a) of such Act (42 U.S.C. 6292(a)) 
is amended— 
(1) by redesignating paragraph (14) as paragraph (19); 
and 
(2) by inserting after paragraph (13) the following new 
paragraphs: 
"(14) General service fluorescent lamps and incandescent 
reflector lamps. 
"(15) Showerheads, except safety shower showerheads. 
"(16) Faucets. 
"(17) Water closets. 
"(18) Urinals.". 
(d) TEST PROCEDURES.—Section 323 of such Act (42 U.S.C. 
6293) is amended— 
(1) in subsection (b)— 
(A) in paragraph (3), by inserting after "energy use," 
the following "water use (in the case of showerheads, fau-
cets, water closets and urinals),"; 
(B) in paragraph (4)— 
(i) by inserting "or, in the case of showerheads, 
faucets, water closets, or urinals, water use" after 
"energy use"; 
(ii) by inserting after "such cycle" the following: 
", or in the case of showerheads, faucets, water closets, 
or urinals, representative average unit costs of water 
and wastewater treatment service resulting from the 
operation of such products during such cycle"; and 
(iii) by inserting ", water, and wastewater treat-
ment" before the period at the end of the second sen-
tence; and 
(C) by adding at the end the following new paragraphs: 
"(6) With respect to fluorescent lamps and incandescent reflec-
tor lamps to which standards are applicable under subsection (i) 
of section 325, the Secretary shall prescribe test procedures, to 
be carried out by accredited test laboratories, that take into consid-
eration the applicable lES or ANSI standard. 
"(7)(A) Test procedures for showerheads and faucets to which 
standards are applicable under subsection (j) of section 325 shall 
be the test procedures specified in ASME A112.18.1M-1989 for 
such products. 
"(B) If the test procedure requirements of ASME Al 12.18.IM-
1989 are revised at any time and approved by ANSI, the Secretary 
shall amend the test procedures established by subparagraph (A) 
to conform to such revised ASME/ANSI requirements unless the 
Secretary determines, by rule, that to do so would not meet the 
requirements of paragraph (3). 
"(8)(A) Test procedures for water closets and urinals to which 
standards are applicable under subsection (k) of section 325 shall 
be the test procedures specified in ASME A112.19.6-1990 for such 
products. 
106 STAT. 2822 
PUBLIC LAW 102-486—OCT. 24, 1992 
"(B) If the test procedure requirements of ASME Al 12.19.6-
1990 are revised at any time and approved by ANSI, the Secretary 
shall amend the test procedures established by subparagraph (A) 
to conform to such revised ASME/ANSI requirements unless the 
Secretary determines, by rule, that to do so would not meet the 
requirements of paragraph (3).**; 
(2) in paragraphs (1) and (2) of subsection (c), by inserting 
"or, in the case of showerheads, faucets, water closets, and 
urinals, water use" after "efficiencjr^ each place it appears; 
(3) in subsection (cX2), in the material preceding subpara-
graph (A), bv inserting "or established" after "prescribed"; and 
(4) in subsection (e)— 
(A) in paragraph (1), by striking out "or measured 
energy use" and inserting in lieu thereof", measured energy 
use, or measured water use"; 
(B) in paragraph (2), by striking out "energy efficiency 
or energy use" each place it appears and inserting in lieu 
thereof "energy efficiency, energy use, or water use"; and 
(C) in paragraph (3), by striking out "energy efficiency 
or energy use" and inserting in lieu thereof "energy effi-
ciency, energy use, or water use". 
(e) LABELING.—Section 324 of such Act (42 U.S.C. 6294) is 
amended— 
(1) in subsection (aX2), by adding at the end the following 
new subparagraphs: 
Regulations. 
"(C)(i) Not later than 18 months after the date of the enactment 
of the Energy Policy Act of 1992, the Commission shall prescribe 
labeling rules under this section applicable to general service 
fluorescent lam^s, medium base coinpact fluorescent lamps, and 
general service incandescent lamps. Except as provided in clause 
(ii), such rules shall provide that the labeling of any general service 
fluorescent lamp, medium base compact fluorescent lamp, and gen-
eral service incandescent lamp manufactured after the 12-month 
period beginning on the date of the publication of such rule shall 
indicate conspicuously on the packaging of the lamp, in a manner 
prescribed by the Commission under subsection (b), such informa-
tion as the Commission deems necessary to enable consumers to 
select the most energy efficient lamps which meet their require-
ments. Labeling information for incandescent lamps shall be based 
on performance when operated at 120 volts input, regardless of 
the rated lamp voltage. 
"(ii) If the Secretary determines that compliance with the stand-
ards specified in section 325(j) for any lamp will result in the 
discontinuance of the manufacture of such lamp, the Commission 
may exempt such lamp from the labeling rules prescribed under 
clause (i). 
Regulations. 
"(D)(i) Not later than one year after the date of the enactment 
of the Energy Policy Act of 1992, the Commission shall prescribe 
labeling rules under this section for showerheads and faucets to 
which standards are applicable under subsection (j) of section 325. 
Such rules shall provide that the labeling of any showerhead or 
faucet manufactured after the 12-month period beginning on the 
date of the publication of such rule shall be consistent with the 
marking and labeling requirements of ASME A112.18.1M-1989, 
except that each showerhead and flow restricting or controlling 
spout-end device shall bear a permanent legible marking indicating 
the flow rate, expressed in gallons per minute (gpm) or gallons 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2823 
per cycle (gpc), and the flow rate value shall be the actual flow 
rate or the maximum flow rate specified by the standards estab-
lished in subsection (j) of section 325. 
"(ii) If the marking and labeling requirements of ASME 
A112.18.1M-1989 are revised at any time and approved by ANSI, 
the Commission shall amend the labeling rules established pursuant 
to clause (i) to be consistent with such revised ASME/ANSI require-
ments unless such requirements are inconsistent with the purposes 
of this Act or the requirement specified in clause (i) requiring 
each showerhead and flow restricting or controlling spout-end device 
to bear a permanent legible marking indicating the flow rate of 
such product. 
"(E)(i) Not later than one year after the date of the enactment Regulations. 
of the Energy Policy Act of 1992, the Commission shall prescribe 
labeling rules under this section for water closets and urinals to 
which standards are applicable under subsection (k) of section 325. 
Such rules shall provide that the labeling of any water closet 
or urinal manufactured afl;er the 12-month period beginning on 
the date of the publication of such rule shall be consistent with 
the marking and labeling requirements of ASME A112.19.2M-1990, 
except that each fixture (and flushometer valve associated with 
such fixture) shall bear a permanent legible marking indicating 
the water use, expressed in gallons per flush (gpO, and the water 
use value shall be the actual water use or the maximum water 
use specified by the standards established in subsection (k) of 
section 325. 
"(ii) If the marking and labeling requirements of ASME 
A112.19.2M-1990 are revised at any time and approved by ANSI, 
the Commission shall amend the labeling rules established pursuant 
to clause (i) to be consistent with such revised ASME/ANSI require-
ments unless such requirements are inconsistent with the purposes 
of this Act or the requirement specified in clause (i) requiring 
each fixture and flushometer valve to bear a permanent legible 
marking indicating the water use of such fixture or 
flushometer 
valve. 
"(iii) Any labeling rules prescribed under this subparagraph 
before January 1, 1997, shall provide that, with respect to any 
gravity tank-type white 2-piece toilet which has a water use greater 
than 1.6 gallons per flusn (gpf), any printed matter distributed 
or displayed in connection with such product (including packaging 
and point of sale material, catalog material, and print advertising) 
shall include, in a conspicuous manner, the words Tor Commercial 
Use Only*."; 
(2) in subsection (a)(3), by striking out "(14)" and inserting 
in lieu thereof "(19)"; 
(3) in subsection (b)(1)(B), by striking out "(14)" and insert-
ing in lieu thereof "(13), and paragraphs (15) through (19)"; 
(4) in paragraphs (3) and (5) of subsection (b), by striking 
out "(14)" and inserting in lieu thereof "(19)"; and 
(5) in subsection (c)— 
(A) in paragraph (7), by striking out "paragraph (13) 
of section 322" and inserting in lieu thereof "paragraphs 
(13), (14), (15), (16), (17), and (18) of section 322(a)"; and 
(B) by adding at the end the following: 
"(8) If a manufacturer of a covered product specified in para-
graph (15) or (17) of section 322(a) elects to provide a label for 
such covered product conveying the estimated annual operating 
106 STAT. 2824 
PUBLIC LAW 102-486—OCT. 24, 1992 
cost of such product or the range of estimated annual operating 
costs for the type or class of such product— 
"(A) such estimated cost or range of costs shall be deter-
mined in accordance with test procedures prescribed under 
section 323; 
"(B) the format of such label shall be in accordance with 
a format prescribed bv the Commission; and 
''(C) such label snail be displayed in a manner, prescribed 
by the Commission, to be likely to assist consumers in making 
purchasing decisions and appropriate to carry out the purposes 
of this Act". 
(f) STANDARDS.—Section 325 of such Act (42 U.S.C. 6295) is 
amended— 
(1) by redesignating subsections (i) through (q) as sub-
sections (1) through (t); 
(2) by inserting after subsection (h) the following: 
"(i) GENERAL SERVICE FLUORESCENT LAMPS AND INCANDESCENT 
REFLECTOR LAMPS.—(IXA) Each of the following general service 
fluorescent lamps and incandescent reflector lamps manufactured 
after the effective date specified in the tables listed in this para-
graph shall meet or exceed the following lamp efficacy and CRI 
standards: 
"FLUORESCENT LAMPS 
"Lamp Type 
Nominal 
Lamp 
Wattage 
Minimum 
CRI 
Minimum Average 
Lamp Efficacy 
(LPW) 
Effective 
Date 
(Months) 
4-foot medium bi-pin 
>35W 
^5W 
2-foot U-shaped 
>35W 
S35W 
8-foot slimline 
65 W 
£65W 
8-foot high output 
>100W 
^100 W 
69 
46 
69 
45 
69 
45 
69 
45 
75.0 
75.0 
68.0 
64.0 
80.0 
80.0 
80.0 
80.0 
86 
a
s 
36 
a
e 
18 
18 
18 
18 
"INCANDESCENT 
REFLECTOR 
LAMPS 
'Nominal Lamp Wattage 
Minimum Average 
Lamp EfRcacy 
(LPW) 
^ 
Effective 
Date 
(Months) 
40-50 
10.5 
36 
51-66 
11.0 
36 
67-85 
12.5 
36 
86-115 
14.0 
36 
116-155 
14.5 
36 
156-205 
15.0 
36 
"(B) For the purposes of the tables set forth in subparagraph 
(A), the term 'effective date' means the last day of tne month 
set forth in the table which follows the date of the enactment 
of the Energy Policy Act of 1992. 
"(2) Notwithstanding section 332(aX5) and section 332(b), it 
shall not be unlawful for a manufacturer to sell a lamp which 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2825 
is in compliance with the law at the time such lamp was maniifac-
tured. 
"(3) Not less than 36 months after the date of the enactment Regulations. 
of this subsection, the Secretary shall initiate a rulemaking proce-
dure and shall publish a final rule not later than the end of 
the 54-month period beginning on the date of the enactment of 
this subsection to determine if the standards established under 
paragraph (1) should be amended. Such rule shall contain such 
amendment, if any, and provide that the amendment shall apply 
to products manufactured on or after the 36-month period beginning 
on the date such final rule is published. 
"(4) Not less than eight years after the date of the enactment Regulations. 
of this subsection, the Secretary shall initiate a rulemaking proce-
dure and shall publish a final rule not later than nine years and 
six months after the date of the enactment of this subsection to 
determine if the standards in effect for fluorescent lamps and 
incandescent lamps should be amended. Such rule shall contain 
such amendment, if any, and provide that the amendment shall 
apply to products manufactured on or after the 36-month period 
beginning on the date such final rule is published. 
"(5) Not later than the end of the 24-month period beginning Regulations. 
on the date labeling requirements under section 324(a)(2)(C) become 
effective, the Secretary shall initiate a rulemaking procedure to 
determine if the standards in effect for fluorescent lamps and 
incandescent lamps should be amended so that they would be 
applicable to additional general service fluorescent and general 
service incandescent lamps and shall publish, not later than 18 
months after initiating such rulemaking, a final rule including 
such amended standards, if any. Such rule shall provide that the 
amendment shall apply to products manufactured after a date 
which is 36 months after the date such rule is published. 
"(6)(A) With respect to any lamp to which standards are 
applicable under this subsection or any lamp specified in section 
346, the Secretary shall inform any Federal entity proposing actions 
which would adversely impact the energy consumption or energy 
efficiency of such lamp of the energy conservation consequences 
of such action. It shall be the responsibility of such Federal entity 
to carefully consider the Secretary's comments. 
"(B) Notwithstanding section 325(n)(l), the Secretary shall not 
be prohibited from amending any standard, by rule, to permit 
increased energy use or to decrease the minimum required energy 
efficiency of any lamp to which standards are applicable under 
this subsection if such action is warranted as a result of other 
Federal action (including restrictions on materials or processes) 
which would have the effect of either increasing the energy use 
or decreasing the energy efficiency of such product. 
"(7) Not later than the date on which standards established 
Reports, 
piirsuant to this subsection become effective, or, with respect to 
high-intensity discharge lamps covered under section 346, the effec-
tive date of standards established pursuant to such section, each 
manufacturer of a product to which such standards are applicable 
shall file with the Secretary a laboratory report certifjdng compli-
ance with the applicable standard for each lamp type. Such report 
shall include the lumen output and wattage consumption for each 
lamp type as an average of measurements taken over the preceding 
12-month period. With respect to lamp types which are not manufac-
tured during the 12-month period preceaing the date such standards 
106 STAT. 2826 
PUBLIC LAW 102-486—OCT. 24, 1992 
Federal 
Register, 
publication. 
become effective, such report shall be filed with the Secretary 
not later than the date which is 12 months after the date manufac-
turing is commenced and shall include the lumen output and watt-
age consumption for each such lamp type as an average of measure-
ments taken during such 12-month period. 
"0") STANDARDS FOR SHOWERHEADS AND FAUCETS.—(1) 
The 
maximum water use allowed for any showerhead manufactured 
after January 1, 1994, is 2.5 gallons per minute when measured 
at a flowing water pressure of 80 pounds per square inch. Any 
such showerhead shall also meet the requirements of ASME/ANSI 
A112.18.1M-1989, 7.4.3(a). 
"(2) The maximum water use allowed for any of the following 
faucets manufactured after January 1, 1994, when measured at 
a flowing water pressure of 80 poimds per square inch, is as 
follows: 
"Lavatory faucets 
2.5 gallons per minute 
"Lavatory replacement aerators 
2.5 gallons per minute 
"Kitchen faucets 
2.5 gallons per minute 
"Kitchen replacement aerators 
2.5 gallons per minute 
"Metering faucets 
0.25 gallons per cycle 
"(3)(A) If the maximimi flow rate requirements or the design 
requirements of ASME/ANSI Standard A112.18.1M-1989 are 
amended to improve the efficiency of water use of any type or 
class of showerhead or faucet and are approved by ANSI, the 
Secretary shall, not later than 12 months after the date of such 
amendment, publish a final rule establishing an amended uniform 
national standard for that product at the level specified in the 
amended ASME/ANSI Standard A112.18.1M and providing that 
such standard shall apply to products manufactured after a date 
which is 12 months after the publication of such rule, unless the 
Secretary determines, by rule published in the Federal Register, 
that adoption of a imiform national standard at the level specified 
in such amended ASME/ANSI Standard Al 12.18. IM— 
"(i) is not technologically feasible and economically justified 
imder subsection (o); 
"(ii) is not consistent with the maintenance of public health 
and safety; or 
"(iii) is not consistent with the purposes of this Act. 
"(B)(i) As part of the rulemaking conducted under subparagraph 
(A), the Secretary shall also determine if adoption of a imiform 
national standard for any type or class of showerhead or faucet 
more stringent than such amended ASMEVANSI Standard 
A112.18.1M— 
"(I) would result in additional conservation of energy or 
water; 
"(11) would be technologically feasible and economically 
justified under subsection (o); and 
"(III) would be consistent with the maintenance of public 
health and safety. 
"(ii) If the Secretary makes an affirmative determination imder 
clause (i), the final rule published imder subparagraph (A) shall 
waive the provisions of section 327(c) with respect to any State 
regulation concerning the water use or water efficiency of such 
type or class of showerhead or faucet if such State regulation— 
"(I) is more stringent than amended ASME/ANSI Standard 
A112.18.1M for such type or class of showerhead or faucet 
and the standard in effect for such product on the day before 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2827 
the date on which a final rule is published under subparagraph 
(A); and 
"(11) is applicable to any sale or installation of all products 
in such type or class of showerhead or faucet. 
"(C) If, after any period of five consecutive vears, the maximum 
flow rate requirements of the ASME/ANSI standard for 
showerheads are not amended to improve the efficiency of water 
use of such products, or afi^r any such period such requirements 
for faucets are not amended to improve the efiiciency of water 
use of such products, the Secretary shall, not later than six months 
after the end of such five-year period, publish a final rule waiving 
the provisions of section 327(c) with respect to any State regulation 
concerning the water use or water efficiency of such tjrpe or class 
of showerhead or faucet if such State regulation— 
"(i) is more stringent than the standards in effect for such 
t3rpe of class of showerhead or faucet; and 
"(ii) is applicable to any sale or installation of all products 
in such type or class of showerhead or faucet. 
"(k) STANDARDS FOR WATER CLOSETS AND URINALS.—(IXA) 
Except as provided in subparagraph (B), the maximum water use 
allowed in gallons per fiush for any of the following water closets 
manufactured after January 1,1994, is the following: 
'Gravity tank-type toilets 
1.6 gpf. 
Tlushometer tank toilets 
1.6 gpf. 
'^lectromedianical hydraulic toilets 
1.6 gpf. 
'blowout toilets 
3.5 gpf. 
"(B) The maximum water use allowed for any gravity tank-
type white 2-piece toilet which bears an adhesive label conspicuous 
upon installation consisting of the words 'Commercial Use Only* 
manufactured after January 1, 1994, and before January 1, 1997, 
is 3.5 gallons per flush. 
"(C) The maximum water use allowed for flushometer valve 
toilets, other than blowout toilets, manufactured after January 1, 
1997, is 1.6 gallons per flush. 
"(2) The maximum water use allowed for any urinal manufac-
tured after January 1,1994, is 1.0 gallon per flush. 
"(3XA) If the maximum flush volume requirements of ASME Federal 
Standard A112.19.6-1990 are amended to improve the efficiency ^g?*®5.' 
of water use of any low consumption water closet or low consump- ^ «»tion. 
tion urinal and are approved by ANSI, the Secretary shall, not 
later than 12 months after the date of such amendment, publish 
a final rule establishing an amended uniform national standard 
for that product at the level specified in amended ASMEVANSI 
Standard Al 
12.19.6 and providing that such standard shall apply 
to products manufactured after a date which is one year aner 
the publication of such rule, unless the Secretary determines, by 
rule published in the Federal Register, that adoption of a uniform 
national standard at the level specified in such amended ASME/ 
ANSI Standard A112.19.6— 
"(i) is not technologically feasible and economically justified 
under subsection (o); 
"(ii) is not consistent with the maintenance of public health 
and safety; or 
"(iii) is not consistent with the purposes of this Act. 
"(BXi) As part of the rulemaking conducted under subparagraph 
(A), tiie Secretarv shall also determine if adoption of a umform 
national standard for any type or class of low consumption water 
106 STAT. 2828 
PUBLIC LAW 102-486—OCT. 24, 1992 
closet or low consumption urinal more stringent than such amended 
ASME/ANSI Standard A112.19.6 for such product— 
"(I) would result in additional conservation of energy or 
water; 
"(II) would be technologically feasible and economically 
justified imder subsection (o); and 
"(III) would be consistent with the maintenance of public 
health and safety. 
"(ii) If the Secretary makes an affirmative determination under 
clause (i), the final rule published under subparagraph (A) shall 
waive the provisions of section 327(c) with respect to any State 
regulation concerning the water use or water efficiency of such 
type or class of low consumption water closet or low consumption 
urinalif such State regulation— 
"(I) is more stringent than amended ASME/ANSI Standard 
Al 12.19.6 for such type or class of low consumption water 
closet or low consumption urinal and the standard in effect 
for such product on the day before the date on which a final 
rule is published under subparagraph (A); and 
"(II) is applicable to any sale or installation of all products 
in such type or class of low consumption water closet or low 
consimiption urinal. 
Regulations. 
"(C) If, after any period of five consecutive years, the maximum 
flush volume requirements of the ASME/ANSI standard for low 
consumption water closets are not amended to improve the efficiency 
of water use of such products, or after any such period such require-
ments for low consumption urinals are not amended to improve 
the efficiency of water use of such products, the Secretary shall, 
not later than six months after the end of such five-year period, 
publish a final rule waiving the provisions of section 327(c) with 
respect to any State regulation concerning the water use or water 
efficiency of such type or class of water closet or urinal if such 
State regulation— 
"(i) is more stringent than the standards in effect for such 
type or class of water closet or urinal; and 
"(ii) is applicable to any sale or installation of all products 
in such type or class of water closet or urinal."; 
(3) in subsection (1) (as redesignated by paragraph (1) of 
this subsection)— 
(A) in paragraphs (1) and (2), by striking out "(14)" 
and inserting in lieu thereof "(19)"; and 
(B) in paragraphs (1) and (3), by striking out "(1) and 
(m)" and inserting in lieu thereof "(o) and (p)"; 
(4) in subsection (m) (as redesignated by paragraph (1) 
of this subsection), by striking out "(h)" and inserting in lieu 
thereof "(i)"; 
(5) in subsection (n) (as redesignated by paragraph (1) 
of this subsection)— 
(A) in paragraph (1)— 
(i) by striking out "and in paragraph (13)" and 
inserting in lieu thereof ", and in paragraphs (13) 
and (14)"; and 
(ii) by striking out "(h)" and inserting in lieu 
* 
thereof "(i)"; 
(B) in paragraph (2)(C), by striking out "(lX2XBXiXII)'' 
and inserting in lieu thereof "(o)(2XBXiXII)''; and 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2829 
(C) in paragraph (3XB), by inserting "general service 
fluorescent lamps, incandescent reflector lamps," after 
"fluorescent lamp bsdlasts,"; 
(6) in subsection (o) (as redesignated by paragraph (1) 
of this subsection)— 
(A) in paragraph (1), by inserting "or, in the case 
of showerheads, faucets, water closets, or urinals, water 
use," after "energy use,"; 
(B) in paragraph (2XA), by inserting ", or, in the case 
of showerheads, faucets, water closets, or urinals, water 
efficiency," after "energy efficiency"; 
(C) in paragraph (2XBXiXin), by inserting ", or as 
applicable, water," after "energjr"; 
(D) in paragraph (2XBXi)(Vl), by inserting "and water" 
after "energy"; 
(E) in paragraph (2XBXiii), by striking out "energy 
savings" and inserting "energy, and as applicable, water, 
savings"; and 
(F) in paragraph (3XB), by inserting ", in the case 
of showerheads, faucets, water closets, or urinals, water, 
or" after "energy or"; and 
(7) in subsection (pX3XA) (as redesignated by paragraph 
(1) of this subsection)— 
(A) by striking out "(1X2)" and inserting in lieu thereof 
"(oX2)"; and 
(B) by striking out "(1X4)" and inserting in lieu thereof 
"(oX4)". 
(g) REQUIREMENTS OF MANUFACTURERS.—Section 326 of such 
Act (42 U.S.C. 6296) is amended— 
(1) in subsection (bX4), by inserting "or water use" after 
"consimiption"; and 
(2) in subsection (dXD, by striking out "or energy use" 
and inserting in lieu thereof ", energy use, or, in the case 
of showerheads, faucets, water closets, and urinals, water use", 
(h) EFFECT ON OTHER LAW.—Section 327 of such Act (42 U.S.C. 
6297) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), in the material preceding 
subparagraph (A), by inserting "or water use" after "energy 
consumption"; 
(B) in paragraph (IXA), by inserting ", water use," 
£Lfter "energy consumption"; 
(C) in paragrapn (IXB), by striking out "or energy 
efficiencjr" and inserting in lieu thereof ", energy efficiency, 
or water use"; and 
(D) by amending paragraph (2) to read as follows: 
"(2) For purposes of this section, the following definitions apply: 
"(A) The term 'State regulation' means a law, regulation, 
or other requirement of a State or its political subdivisions. 
With respect to showerheads, faucets, water closets, and uri-
nals, such term shall also mean a law, regulation, or other 
requirement of a river basin commission that has jurisdiction 
within a State. 
"(B) The term 'river basin commission' means— 
"(i) a commission established by interstate compact 
to apportion, store, regulate, or otherwise manage or coordi-
nate the management of the waters of a river basin; and 
106 STAT. 2830 
PUBLIC LAW 102-486—OCT. 24, 1992 
"(ii) a commission established under section 201(a) of 
the Water Resources Planning Act (42 U.S.C. 1962b(a)).''; 
(2) in subsection (b)— 
(A) in the material preceding paragraph (1), by striking 
out "or energy use of the covered product" and inserting 
in lieu thereof ", energy use, or water use of the covered 
product"; 
(B) by inserting before the semicolon at the end of 
paragraph (1) the following: ", or in the case of any portion 
of any regulation which establishes requirements for 
fluorescent or incandescent lamps, flow rate requirements 
for showerheads or faucets, or water use requirements 
for water closets or urinals, was prescribed or enacted 
before the date of the enactment of the Energy Policy 
Act of 1992"; 
(C) in paragraph (4), by inserting before the semicolon 
at the end the following: ", or is a regulation (or portion 
thereof) regulating fluorescent or incandescent lamps other 
than those to which section 325(i) is applicable, or is a 
regulation (or portion thereof) regulating showerheads or 
, 
faucets other than those to which section 325(j) is 
applicable or regulating lavatory faucets (other than meter-
ing faucets) for installation in public places, or is a regula-
tion (or portion thereof) regulating water closets or urinals 
other than those to which section 325(k) is applicable"; 
(D) in paragraph (5), by striking out "or"; 
(E) in paragraph (6), by striking out the period at 
the end and inserting "; or"; and 
(F) by adding at the end the following new paragraph: 
"(7) is a regulation (or portion thereof) concerning the water 
efidciency or water use of low consiunption flushometer valve 
water closets."; 
(3) in subsection (c)— 
(A) in the material preceding paragraph (1)— 
(i) by inserting ", subparagraphs (B) and (C) of 
section 325(1X3), and subparagraphs (B) and (C) of 
section 325(kX3)" after "section 325(bX3XAXii)"; and 
(ii) by striking out "or energy use" and inserting 
in lieu thereof the following: ", energy use, or water 
use"; 
(B) in paragraph (1), by inserting before the semicolon 
at the end the following: ", except that a State regulation 
(or portion thereof) regulating fluorescent or incandescent 
lamps other than those for which section 325(i) is applicable 
shall be effective only until the effective date of a standard 
that is prescribed by the Secretary and is applicable to 
such lamps"; 
(C) in paragraph (2), by striking out "or"; 
(D) in paragraph (3), by striking out the period at 
the end and inserting a semicolon; and 
(E) by adding at the end the following new paragraphs: 
"(4) is a regulation concerning the water use of lavatory 
faucets adopted by the State of New York or the State of 
Georgia before the date of the enactment of the Energy Policy 
Act of 1992; 
"(5) is a regulation concerning the water use of lavatory 
or kitchen faucets adopted by the State of Rhode Island prior 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2831 
to the date of the enactment of the Energy PoUcy Act of 1992; 
or 
"(6) is a regulation (or portion thereof) concerning the water 
efficiency or water use of gravity tank-type low consumption 
water closets for installation in public places, except that such 
a regulation shall be effective only until January 1, 1997."; 
(4) in subsection (dXl)^ 
(A) in subparagraph (A)— 
(i) by inserting "or river basin commission" after 
"Any State"; and 
(ii) by striking out "or energy efficiency" and insert-
ing in lieu thereof ", energy efficiency, or water use"; 
(B) in subpara^aph (B)— 
(i) by striking out "State has" and inserting "State 
or river basin commission has"; and 
(ii) by inserting "or water" after "energy"; 
(C) in subparagraph (C)— 
(i) in the material preceding clause (i) and in clause 
(ii), by inserting "or water" after "energy" each place 
it appears; and 
(ii) by inserting before the period at the end the 
following: ", and, with respect to a State regulation 
for which a petition has been submitted to the Sec-
retary which provides for any energy conservation 
standard or requirement with respect to water use 
of a covered product, within the context of the water 
supply and groundwater management plan, water 
quality program, and comprehensive plan (if any) of 
the State or river basin commission for improving, 
developing, or conserving a waterway affected by water 
supply development"; and 
(5) in subsection (d)(5XB), by striking clause (i) and insert-
ing the following: 
"(i) there exists within the State an energy emergency 
condition or, if the State regulation provides for an energy 
conservation standard or other requirement with respect 
to the water use of a covered product for which there 
is a Federal energy conservation standard under subsection 
(j) or (k) of section 325, a water emergency condition, 
which— 
"(I) imperils the health, safety, and welfare of its 
residents because of the inability of the State or utili-
ties within the State to provide adequate quantities 
of gas or electric energy or, in the case o
f
^ a water 
emergency condition, water or wastewater treatment, 
to its residents at less than prohibitive costs; and 
"(II) cannot be substantially alleviated by the 
importation of energy or, in the case of a water emer-
gency condition, by the importation of water, or by 
the use of interconnection agreements; and", 
(i) INCE^^^VE PROGRAMS.—Section 337 of such Act (42 U.S.C. 
6307) is amended— 
(1) by striking out "337." and inserting "337. (a) IN GEN-
ERAL.—"; and 
(2) by adding at the end the following: 
"(b) STATE AND LOCAL INCENTIVE PROGRAMS.—<1) The Secretary 
shall, not later than one year after the date of the enactment 
106 STAT. 2832 
PUBUC LAW 102-486—OCT. 24, 1992 
of this subsection, issue recommendations to the States for 
establishing State and local incentive programs designed to encour-
age the acceleration of voluntary replacement, b
^
r consumers, of 
existing showerheads, faucets, water closets, and urinals with those 
products that meet the standards established for such products 
pursuant to subsections (j) and (k) of section 325. 
"(2) In developing such recommendations, the Secretary shall 
consult with the neads of other federal a^^ncies, including the 
Administrator of the Environmental Protection Agency; State offi-
cials; manufacturers, suppliers, and installers of pliunbing products; 
and other interested parties.". 
SEC. 124. mCH-INTENSITY 
DISCHARGE 
LAMPS, 
DISTRIBUTION 
TRANSFORMERS, AND SBIALL ELECTRIC MOTORS. 
(a) STANDARDS.—Section 346 of the Energy Policy and Con-
servation Act (42 U.S.C. 6317) is amended to read as follows: 
''ENERGY CONSERVATION STANDARDS FOR HIGH-INTENSITY DISCHARGE 
LAMPS, DISTRIBUTION TRANSFORMERS, AND SMALL ELECTRIC MOTORS 
"SEC 346. (aXD The Secretary shall, within 30 months after 
the date of the enactment of the Energy Policy Act of 1992, prescribe 
testing requirements for those high-intensity discharge lamps and 
distribution transformers for which the Secretary makes a deter-
mination that enereyr conservation standards would be techno-
logically feasible and economically justified, and would result in 
significant energy savings. 
R^ulations. 
"(2) The Secretary shall, within 18 months after the date on 
which testing requirements are prescribed by the Secretary pursu-
ant to paragraph (1), prescribe, by rule, energy conservation stand-
ards for those high-intensity discharge lamps and distribution 
transformers for which the Secretary prescribed testing require-
ments under paragraph (1). 
"(3) Any standard prescribed imder paragraph (2) vfith respect 
to high-intensity discharge lamps shall apply to such lamps manu-
factured 36 months aft;er the date such rule is published. 
"(bXD The Secreta^ shall, within 30 months aflier the date 
of the enactment of the Energy Policy Act of 1992, prescribe testing 
requirements for Uiose small electric motors for which the Secretary 
makes a determination that energy conservation standards would 
be technologically feasible and economically justified, and would 
result in si^ificant energy savings. 
R^ulations. 
"(2) The Secretary shall, Mdthin 18 months after the date on 
which testing requirements are prescribed by the Secretary pursu-
ant to paragraph (1), prescribe, by rule, energy conservation stand-
ards for those small electric motors for which the Secretary pre-
scribed testing requirements under paragraph (1). 
"(3) Any standard prescribed under paragraph (2) shall apply 
to small electric motors manufactured 60 months after the date 
such rule is published or, in the case of small electric motors 
which require listing or certification by a nationally recognized 
testing laboratory, 84 months afl^er such date. Such standards shall 
not apply to any small electric motor which is a component of 
a covered product under section 322(a) or a covered equipment 
under section 340. 
"(c) In esteblishing any standard imder this section, the Sec-
retary shall take into consideration the criteria conteined in section 
325(n). 
PUBUC LAW 102-486—OCT. 24, 1992 
106 STAT. 2833 
'*id) The Secretary shall, within six months after the date 
on which energy conservation standards are prescribed by the Sec-
retary 
for 
hif^-intensity 
dischai^e 
lamps 
and 
distribution 
transformers pursuant to subsection CB)(2) and small electric motors 
pursuant to subsection (bX2), prescribe labeling requirements for 
such lamps, transformers, and small electric motors. 
"(e) Beginning on the date which occurs six months after the 
date on wiuch a labeling rule is prescribed for a product under 
subsection (d), each manufacturer of a product to which such a 
rule applies shall provide a label which meets, and is displayed 
in accordance with, the requirements of such rule. 
"(fKD After the date on which a maniifacturer must provide 
a label for a product pursuant to subsection (e)— 
"(A) each such product shall be considered, for purposes 
of paragraphs (1) and (2) of section 332(a), a new covered 
product to which a rule under section 324 applies; and 
"(B) it shall be imlawful for any maniifacturer or private 
labeler to distribute in commerce any new product for which 
an energy conservation standard is prescribea under subsection 
(aX2) or (bX2) which is not in conformity with the applicable 
energy conservation standard. 
"(2) For purposes of section 333(a), paragraph (1) of this sub-
section shall be considered to be a part of section 332.". 
(b) TECHNICAL AMENDMENT.—The table of contents of such 
Act is amended by striking out the item for section 346 and inserting 
in lieu thereof the following new item: 
"Sec. 346. Energy conservation standards for high-intensity discharge lamps, dis-
tribution transformers, and small elecmc motors.". 
(c) STUDY OF UTILITY DISTRIBUTION TRANSFORMERS.—The Sec- 42 use 63i7. 
retary shall evaluate the practicability, cost-effectiveness, and 
potential enerepr savings of replacing, or upgrading components 
of, existing utility distribution transformers during routine mainte-
nance and, not later than 18 months after the date of the enactment 
of this Act, report the findings of such evaluation to the Congress 
with recommendations on how such energy savings, if any, could 
be achieved. 
SEC. 126. ENERGY EFFICIENCY INFORMATION FOR COMMERCIAL 42 USC 6292 
OFFICE EQUIPMENT. 
note. 
(a) IN GENERAL.—(1) The Secretary shall, after consulting with 
the Computer and Business Equipment Manufacturers Association 
and other interested organizations, provide financial and technical 
assistance to support a volimtary national testing and information 
program for those types of commercial office equipment that are 
widely used and for which there is a potential for significant energy 
savings as a result of such program. 
(2) Such program shall— 
(A) consistent with the objectives of paragraph (1), deter-
mine the commercial office equipment to be covered under 
such program; 
(B) include specifications for testing procedures that will 
enable purchasers of such commercial ofnce equipment to make 
more informed decisions about the energy efficiency and costs 
of alternative products; and 
(C) include information, which may be disseminated 
through catalogs, trade publications, labels, or other mecha-
59-194 O—93 
4:QL3(Pt. 4) 
106 STAT. 2834 
PUBLIC LAW 102-486—OCT. 24, 1992 
nisms, that will allow consumers to assess the energy consump-
tion and potential cost savings of alternative products. 
(3) Such program shall be developed by an appropriate 
organization (composed of interested parties) according to commonly 
accepted procedures for the development of national testing proce-
dure and labeling programs. 
(b) MONITORING.—^The Secretary shall monitor and evaluate 
the efforts to develop the program described in subsection (a) and, 
not later than three years after the date of the enactment of 
this Act, shall make a determination as to whether such program 
is consistent with the objectives of subsection (a). 
(c) ALTERNATIVE SYSTEM.—(1) If the Secretary makes a deter-
mination under subsection (b) that a voluntary national testing 
and information program for commercial office equipment consistent 
with the objectives of subsection (a) has not been developed, the 
Secretary shall, after consultation with the National Institute of 
Standards and Technology, develop, not later than two years after 
such determination, test procedures under section 323 of the Energy 
Policy and Conservation Act (42 U.S.C. 6293) for such commercial 
office equipment. 
(2) Not later than one year after the Secretary develops test 
procedures under paragraph (1), the Federal Trade Commission 
(hereafter in this section referred to as the "Commission") shall 
prescribe labeling rules under section 324 of such Act (42 U.S.C. 
6294) for commercial office equipment for which the Secretary has 
prescribed test procedures under paragraph (1) except that, with 
respect to any type of commercial office equipment (or class thereof), 
the Secretary may determine that such labeling is not techno-
logically feasible or economically justified or is not likely to assist 
consumers in m£iking purchasing decisions. 
(3) For purposes of sections 323, 324, and 327 of such Act, 
each product for which the Secretary has established test procedures 
or labeling rules pursuant to this subsection shall be considered 
a new covered product under section 322 of such Act (42 U.S.C. 
6292) to the extent necessary to carry out this subsection. 
(4) For purposes of section 327(a) of such Act, the term "this 
part" includes this subsection to the extent necessary to carry 
out this subsection. 
,5 
42 use 6292 
SEC. 126. ENERGY EFFICIENCY INFORMATION FOR LUMINAIRES. 
(a) IN GENERAL.—(1) The Secretary shall, after consulting with 
the National Electric Manufacturers Association, the American 
Lighting Association, and other interested organizations, provide 
financial and technical assistance to support a voluntary national 
testing and information program for those types of luminaires that 
are widely used and for which there is a potential for significant 
energy savings as a result of such program. 
(2) Such program shall— 
(A) consistent with the objectives of paragraph (1), deter-
mine the luminaires to be covered under such program; 
(B) include specifications for testing procedures that will 
enable purchasers of such luminaires to make more informed 
decisions about the energy efficiency and costs of alternative 
products; and 
(C) include information, which may be disseminated 
through catalogs, trade publications, labels, or other mecha-
PUBLIC LAW 102-486—CXT. 24, 1992 
106 STAT. 2835 
nisms, that will allow consumers to assess the energy consump-
tion and potential cost savings of alternative products. 
(3) Such program shall be developed by an appropriate 
organization (composed of interested parties) according to commonly 
accepted procedures for the development of national testing proce-
dures and labeling programs. 
(b) MONITORING.—^The Secretary shall monitor and evaluate 
the efforts to develop the program described in subsection (a) and, 
not later than three years after the date of the enactment of 
this Act, shall make a determination as to whether the program 
developed is consistent with the objectives of subsection (a). 
(c) ALTERNATIVE SYSTEM.—<1) If the Secretary makes a deter-
mination under subsection (b) that a volimtary national testing 
and information program for luminaires consistent with the objec-
tives of subsection (a) has not been developed, the Secretary shall, 
£ifber consultation with the National Institute of Standards and 
Technology, develop, not later than two years after such determina-
tion, test procediires under section 323 of the Energy Policy and 
Conservation Act (42 U.S.C. 6293) for such luminaires. 
(2) Not later than one year after the Secretary develops test Regulations. 
procedures under paragraph (1), the Federal Trade Commission 
(hereafter in this section referred to as the ''Commission") shall 
prescribe labeling rules under section 324 of such Act (42 U.S.C. 
6294) for those luminaires for which the Secretary has prescribed 
test procedures iinder paragraph (1) except that, with respect to 
any type of luminaire (or class thereof), the Secretary may deter-
mine that such labeling is not technologically feasible or economi-
cally justified or is not likely to assist consumers in making purchas-
ing decisions. 
(3) For purposes of sections 323, 324, and 327 of such Act, 
each product for which the Secretary has established test procedures 
or labeling rules pursuant to this subsection shall be considered 
a new covered product under section 322 of such Act (42 U.S.C. 
6292) to the extent necessary to carry out this subsection. 
(4) For purposes of section 327(a) of such Act, the term "this 
part" includes this subsection to the extent necessary to carry 
out this subsection. 
SEC. 127. REPORT ON THE POTENTIAL OF COOPERATIVE ADVANCED 
42 USC 6292 
APPLIANCE DEVELOPMENT. 
note-
(a) IN GENERAL.—^Not later than 18 months after the date 
of the enactment of this Act, the Secretary shall, in consultation 
with the Administrator of the Environmental Protection Agency, 
utilities, £ind appliance manufacturers, prepare and submit to the 
Congress, a report on the potential for the development and 
commercialization of appliances which are substantially more effi-
cient than required by Federal or State law. 
(b) 
IDENTIFICATION OF HIGH-EFFICIENCY APPLIANCES.—The 
report submitted under subsection (a) shall identify candidate high-
efnciency appliances which meet the following criteria: 
(1) The potential exists for substantial improvement in 
the appliance's energy efficiency, beyond the minimum estab-
lished m Federal and State law. 
(2) There is the potential for significant energy savings 
at the national or regional level. 
(3) Such appliances are likely to be cost-effective for 
consumers. 
106 STAT. 2836 
PUBLIC LAW 102-486—OCT. 24, 1992 
(4) Electric, water, or gas utilities are prepared to support 
and promote the commercialization of such appliances. 
(5) Manufacturers are unlikely to undertake development 
and commercialization of such appliances on their own, or 
development and production would be substantially accelerated 
by support to manufacturers. 
(c) RECOMMENDATIONS AND PROPOSALS.—The report submitted 
under subsection (a) shall also— 
(1) describe the general actions the Secretary or the 
Administrator of the Environmental Protection Agency could 
take to coordinate and assist utilities and appliance manufac-
turers in developing and commercializing highly efficient appli-
ances; 
(2) describe specific proposals for Department of Energy 
or Environmental Protection Agency assistance to utilities and 
appliance maniifacturers to promote the development and 
commercialization of highly efiEicient appliances; 
(3) identify methods by which Federal purchase of highly 
efficient appliances could assist in the development and 
commercialization of such appliances; and 
(4) identify the funding levels needed to develop and imple-
ment a Federal program to assist in the development and 
commercialization of highly efficient appliances. 
42 use 6292 
SEC. 128. EVALUATION OF UTILITY EARLY REPLACEMENT PROGRAMS 
note 
FOR APPLIANCES. 
Within 18 months after the date of the enactment of this 
Act, the Secretary, in consultation with the Administrator of the 
Environmental Protection Agency, utiUties, and appliance manufac-
turers, shall evaluate and report to the Congress on the energy 
savings and environmental benefits of programs which are directed 
to the early replacement of older, less efficient appliances presently 
in use by consumers with existing products which are more efficient 
than required by Federal law. For the purposes of this section, 
the term ''appliance" means those consumer products specified in 
section 322(a). 
Subtitle D—Industrial 
42 use 6348. 
SEC. 131. ENERGY EFFICIENCY IN INDUSTRIAL FACIUTIES. 
(a) GRANT PROGRAM.— 
(1) IN GENERAL.—^The Secretary shall make grants to indus-
try associations to support programs to improve energy effi-
ciency in industry. In order to be eligible for a grant under 
this subsection, an industry association shall establish a vol-
untary energy efficiency improvement target program. 
(2) AWARDING OF GRANTS.—The Secretary shall request 
project proposals and provide annual grants on a competitive 
basis. In evaluating grant proposals under this subsection, the 
Secretary shall consider— 
(A) potential energy savings; 
(B) potential environmental benefits; 
(C) the degree of cost sharing; 
(D) the degree to which new and innovative tech-
nologies will be encouraged; 
(E) the level of industry involvement; 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2837 
(F) estimated project cost-effectiveness; and 
(G) the degree to which progress toward the energy 
improvement tiu'gets can be monitored. 
(3) ELIGIBLE PROJECTS.—^Projects eligible for grants under 
this subsection mav include the following: 
(A) Workshops. 
(B) Training seminars. 
(C) Handbooks. 
(D) Newsletters. 
(E) Data bases. 
(F) Other activities approved by the Secretary. 
(4) LIMITATION ON COST SHARING.—Grants provided imder 
this subsection shall not exceed $250,000 and each grant shall 
not exceed 75 percent of the total cost of the project for which 
the grant is made. 
(5) AUTHORIZATION.—^There are authorized to be appro-
priated such sums as are necessary to cany out this subsection. 
(b) AWARD PROGRAM.—^The Secretary shall establish an annual 
award program to recognize those industry associations or individ-
ual industrial companies that have significantly improved their 
energy eflBcien<y. 
(c) REPORT ON INDUSTRIAL REPORTING AND VOLUNTARY TAR-
GETS.—^Not later than one year after the date of the enactment 
of this Act, the Secretary shall, in consultetion with £iffected indus-
tries, evaluate and report to the Congress regarding the esteblish-
ment of Federally mandated energy efficiency reporting require-
mente and voluntary enersr efficiency improvement tergete for 
energy intensive industries. Such report shall include an evaluation 
of the costs and benefits of such reporting requirements and vol-
untary energy efEiciency improvement tergets, and recommenda-
tions regarding the role of such activities in improving energy 
efficiency in energy intensive industries. 
SEC. 132. PROCESS-ORIENTED INDUSTRIAL ENERGY EFFICIENCY. 
42 USC 6349. 
(a) DEFINITIONS.—^For the purposes of this section— 
(1) the term "covered industry** means the food and food 
f
)roducts industry, lumber and wood products industnr, petro-
eum and coal products industry, and all other manufacturing 
industries specified in Standard Industrial Classification Codes 
20 through 39 (or successor classification codes); 
(2) the term "process-oriented industrial assessment** 
means— 
(A) the identification of opportunities in the production 
process (from the introduction of materials to final packag-
ing of the product for shipping) for— 
(i) improving energy efficiency; 
(ii) reducing environmental impact; and 
(iii) designing technological improvements to 
increase competitiveness and achieve cost-effective 
product quality enhancement; 
(B) the identification of opportunities for improving 
the energy efficiencv of lighting, heating, ventilation, air 
conditionmg, and me associated building envelope; and 
(C) the identification of cost-effective opportunities for 
using renewable energy technology in the production proc-
ess and in the systems described in subparagraph (B); 
and 
106 STAT. 2838 
PUBLIC LAW 102-486—OCT. 24, 1992 
(3) the term 'Hitilit/' means any person, State agency 
(including any municipsdity), or Federal agency, which sells 
electric or gas energy to retail customers, 
(b) GRANT PROGRAM.— 
(1) USE OF FUNDS.—The Secretary shall, to the extent 
funds are made available for such purpose, make grants to 
States which, consistent with State law, shall be used for 
the following purposes: 
(A) To promote, through appropriate institutions such 
as universities, nonprofit organizations. State and local 
government entities, technical centers, utilities, and trade 
organizations, the use of energy-efHcient technologies in 
covered industries. 
(B) To establish programs to train individuals (on an 
industry-by-industry basis) in conducting process-oriented 
industrial assessments and to encourage the use of such 
trained assessors. 
(C) To assist utilities in developing, testing, and 
evaluating energy efficiency programs and technologies for 
industrial customers in covered industries. 
(2) CONSULTATION.—States receiving grants under this sub-
section shall consult with utilities and representatives of 
affected industries, as appropriate, in determining the most 
effective use of such funds consistent with the requirements 
of paragraph (1). 
(3) ELIGIBILITY CRITERIA.—Not later than 1 year after the 
date of the enactment of this Act, the Secretaiy shall establish 
eligibility criteria for grants made pursuant to this subsection. 
Such criteria shall require a State appljdng for a grant to 
demonstrate that such State— 
(A) pursuant to section 111(a) of the Public Utility 
and Regulatoiy Policies Act of 1978 (16 U.S.C. 2621(a)), 
has considered and made a determination regarding the 
implementation of the standards specified in paragraphs 
(7) and (8) of section 111(d) of such Act (with respect 
to integrated resources planning and investments in con-
servation and demand management); and 
(B) by legislation or regulation— 
(i) allows utilities to recover the costs prudently 
inciured in providing process-oriented mdustrial 
assessments; and 
(ii) encourages utilities to provide to covered 
industries— 
(I) process-oriented industrial assessments; 
and 
(II) financial incentives for implementing 
energy efficiency improvements. 
(4) ALLOCATION OF FUNDS.--Grants made pursuant to this 
subsection shall be allocated each fiscal year among States 
meeting the criteria specified in paragraph (3) who have submit-
ted applications 60 days before the first day of such fiscal 
year. Such allocation shall be made in accordance with a for-
mula to be prescribed by the Secretary based on each State's 
share of value added in industry (as determined by the Census 
of Manufacturers) as a percentieige of the value added by all 
such States. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2839 
(5) RENEWAL OF GRANTS.—^A grant under this subsection 
may continue to be renewed after 2 consecutive fiscal years 
during which a State receives a grant under this subsection, 
subject to the availability of funds, i
f
— 
(A) the Secretary determines that the funds made 
available to the State during the previous 2 years were 
used in a manner required under paragraph (1); and 
(B) such State demonstrates, in a manner prescribed 
by the Secretary, utility participation in programs estab-
lished pursuant to this subsection. 
(6) COORDINATION WITH OTHER FEDERAL PROGRAMS.—In 
carrying out the functions described in paragraph (1), States 
shall, to the extent practicable, coordinate such functions with 
activities and programs conducted by the Energy Analysis and 
Diagnostic Centers of the Department of Energy and the Manu-
facturing Technology Centers of the National Institute of Stand-
ards and Technology. 
(c) OTHER FEDERAL ASSISTANCE.— 
(1) ASSESSMENT CRITERIA.—^Not later than 2 years after 
the date of the enactment of this Act, the Secretary shall, 
by contract with nonprofit organizations with expertise in proc-
ess-oriented industrial energy efficiency technologies, estaolish 
and, as appropriate, update criteria for conducting process-
oriented industrial assessments on an industry-by-industry 
basis. Such criteria shall be made available to State and local 
government, public utility commissions, utilities, representa-
tives of affected 
process-oriented industries, and other 
interested parties. 
(2) DIRECTORY.—^The Secretary shall establish a nationwide 
directory of organizations offering industrial energy efficiency 
assessments, technologies, and services consistent with the pur-
poses of this section. Such directory shall be made available 
to State governments, public utility commissions, utilities, 
industry representatives, and other interested parties. 
(3) AWARD PROGRAM.—The Secretiury shall establish an 
annual award program to recognize utilities operating outstand-
ing or innovative industrial energy efficiency technology assist-
ance programs. 
(4) MEETINGS.—^In order to further the purposes of this 
section, the Secretary shall convene annual meetings of parties 
interested in process-oriented industrial assessment, including 
representatives of State government, public utility commissions, 
utilities, and affected process-oriented industries. 
(d) REPORT.—^Not later than 2 years after the date of the 
enactment of this Act, and annually thereafter, the Secretary shall 
submit to the Congress a report which— 
(1) identifies barriers encountered in implementing this 
section; 
(2) makes recommendations for overcoming such barriers; 
(3) documents the results achieved by the programs estab-
lished and grants awarded pursuant to this section; 
(4) reviews any diflindties encountered by industry in 
securing and implementing energy efficiency technologies rec-
ommended in process-oriented industrial assessments or other-
wise identified as a result of programs established pursuant 
to this section; and 
106 STAT. 2840 
PUBLIC LAW 102-486—OCT. 24, 1992 
(5) recommends methods for further promoting the distribu-
tion and implementation of energy efficiency technologies 
consistent with the purposes of this section, 
(e) AUTHORIZATION OP APPROPRIATIONS.—There are authorized 
to be appropriated such sums as may be necessary to carry out 
the purposes of this section. 
42 u s e 6350. 
SEC. 133. INDUSTRIAL INSULATION AND AUDIT GUIDELINES. 
(a) VOLUNTARY GUIDELINES FOR ENERGY EFFICIENCY AUDITING 
AND INSULATING.—^Not later than 18 months after the date of the 
enactment of this Act, the Secretary, after consultation with utili-
ties, major industrial energy consumers, and representatives of 
the insulation industry, shall establish voluntary guidelines for— 
(1) the conduct of energy efficiency audits of industrial 
facilities to identify cost-effective opportimities to increase 
energy efficiency; and 
(2) the installation of insulation to achieve cost-effective 
increases in energy efficiency in industrial facilities. 
(b) EDUCATIONAL AND TECHNICAL ASSISTANCE.—The Secretary 
shall conduct a program of educational and technical assistance 
to promote the use of the volimtary guidelines established vmder 
subsection (a). 
(c) REPORT.—Not later than 2 years after the date of the enact-
ment of this Act, and biennially thereafter, the Secretary shall 
report to the Congress on activities conducted pursuant to this 
section, including— 
(1) a review of the status of industrial energy auditing 
procedures; and 
(2) an evaluation of the effectiveness of the guidelines 
established under subsection (a) and the responsiveness of the 
industrial sector to such guidelines. 
Subtitle E—State and Local Assistance 
SEC. 141. A M E N D M E N T S TO STATE ENERGY CONSERVATION PROGRAM. 
(a) STATE BUILDINGS ENERGY INCENTIVE FUND.— 
(1) IN GENERAL.—Section 363 of the Energy Policy and 
Conservation Act (42 U.S.C. 6323) is amended oy adding at 
the end the following new subsection: 
(f) If the Secretary determines that a State has demonstrated 
a commitment to improving the energy efficiency of buildings within 
such State, the Secretary may, beginning in fiscal year 1994, provide 
up to $1,000,000 to such State for deposit into a revolving fund 
established by such State for the purpose of financing energy effi-
ciency improvements in State and local government buildings. In 
msdking such determination the Secretary shall consider whether— 
"(1) such State, or a majority of the units of local govern-
ment with jurisdiction over building energy codes within such 
State, has adopted codes for energy efficiency in new buildings 
that are at least as stringent as American Society of Heating, 
Refrigerating, and Air-Conditioning Engineers Standard 90.1-
1989 (with respect to commercial buildings) and Council of 
American Building Officials Model Energy Code, 1992 (with 
respect to residential buildings); 
''(2) such State has established a program, including a 
revolving fund, to finance energy efficiency improvement 
PUBUC LAW 102-486—OCT. 24,1992 
106 STAT. 2841 
proiects in State and local government fiEtcilities and buildings; 
and 
"(3) such State has obtained fiindinff from non-Federal 
sources, including but not limited to, oil overcharge funds. 
State or local government appropriations, or utility contribu-
tions (including rebates) equal to or greater than uiree times 
the amount provided by the Secretaiy under this subsection 
for deposit into such revolving fond.". 
(2) AUTHORIZATION OF APPROPRIATIONS.—Section 365(f) of 
such Act (42 U.S.C. 6325(f)) is amended— 
(A) by striking "(f) For the purpose" and inserting 
the following: "(fXl) Except as provided in paragraph (2), 
for the purpose"; and 
(B) by mserting at the end the following: 
"(2) For the purposes of carrying out section 363(f), there 
is authorized to be appropriated for fiscal year 1994 and each 
fiscal year thereafter such sums as may be necessary, to remain 
available until expended.". 
(b) TRAINING OF BUILDING DESIGNERS AND CONTRACTORS; 
BUILDING RETROFIT STANDARDS; FEASIBILITY; RURAL RENEWABLE 
ENERGY.—Subsection 362(d) of the Energy Poucy and Conservation 
Act (42 U.S.C. 6322(d)) is amended— 
(1) in pars^aph (12) by striking "and"; 
(2) by redesignating paragraph (13) as paragraph (17); 
and 
(3) by inserting after paragraph (12) the following new 
paragraphs: 
^13) programs (enlisting appropriate trade and profes-
sional organizations in the development and financing of such 
programs) to provide training and education (including, if 
appropriate, training workshops, practice manuals, and testing 
for each area of energy efficiency technology) to building design-
ers and contractors involved in building design and construction 
or in the sale, installation, and maintenance of energy systems 
and equipment to promote bmlding energy efficiency improve-
ments; 
"(14) programs for the development of building retrofit 
standards and regulations, including; retrofit ordinances 
enforced at the time of the sale of a building; 
"(15) support for prefeasibility and feasibility studies for 
projects that utilize renewable energy and energy efficiency 
resoiirce technologies in order to facilitate access to capital 
and credit for such projects; 
"(16) programs to facilitate and encourage the voluntary 
use of renewable energy technolones for eligible participante 
in Federal agency programs, inclumng the Rural Electrification 
Administration and the Farmers Home Administration; and" 
(c) STATE ENERGY CONSERVATION PLAN REQUIREMENT.— 
(1) IN GENERAL.—Section 362(cX5) of the Energy PoUcy 
and Conservation Act (42 U.S.C. 6322(cX5)) is amended by 
striking "; and" and by inserting the following: "and to turn 
sudi vehicle left from a one-way street onto a one-way street 
at a red light after stopping; and . 
(2) EFFECTIVE DATE.—The amendment made by paragraph 42 use 6322 
(1) shall take effect January 1,1995. 
"°*« 
(d) STUDY REGARDING IMPACT OF PERMITTING RIGHT AND LEFT 42 use 6322 
TURNS ON RED LIGHTS.— 
"
'
*
*
®
-
106 STAT. 2842 
PUBLIC LAW 102-486—OCT. 24, 1992 
(1) IN GENERAL.—The Administrator of the National High-
way Traffic Safety^ Administration, in consultation with State 
agencies with jurisdiction over traffic safety issues, shall con-
duct a study on the safety impact of the reouirement specified 
in section 362(cX5) of the Energy Policy ana Conservation Act 
(42 U.S.C. 6322(cX5)), particularly with respect to the unpact 
on pedestrian safety. 
(2) REPORT.—^The Administrator shall report the findings 
of the study conducted under paragraph (1) to the Congress 
and the Secretary not later than 2 years after the date of 
the enactment of tnis Act. 
SEC. 142. AMENDMENTS TO LOW-INCOME WEATHERIZATION PROGRAM. 
(a) PRIVATE SECTOR INVESTMENTS IN LOW-INCOME WEATHERIZA-
TION.—Part A of title IV of the Energy Conservation and Production 
Act (42 U.S.C. 6861 et seq.) is amended by inserting after section 
414 the following new sections: 
42 use 6864a. 
'^EC. 414A. PRIVATE SECTOR INVESTMENTS. 
"(a) IN GENERAL.—The Secretary shall, to the extent funds 
are made available for such purpose, provide financial assistance 
to entities receiving funding from the Federal Government or from 
a State through a weatherization assistance pro-am under section 
413 or section 414 for the development and initial implementation 
of partnerships, agreements, or other arrangements with utilities, 
private sector interests, or other institutions, under which non-
Federal financial assistance would be made available to support 
programs which install energy efficiency improvements in low-
mcome housing. 
"(b) USE OF FUNDS.—^Financial assistance provided imder this 
section may be used for— 
"(1) the negotiation of such partnerships, agreements and 
other arrangements; 
"(2) the presentation of arguments before State or local 
agencies; 
"(3) expert advice on the development of such partnerships, 
agreements, and other arrangements; or 
"(4) other activities reasonably associated with the develop-
ment and initial implementation of such arrangements, 
"(c) CONDITIONS.—(1) Financial assistance provided under this 
section to entities other than States shall, to the extent practicable, 
coincide with the timing of financial assistance provided to such 
entities under section 413 or section 414. 
"(2) Not less than 80 percent of amoimts provided under this 
section shall be provided to entities other than States. 
"(3) A recipient of financial assistance under this section shall 
have up to three years to complete projects undertaken with such 
assistance. 
42 use 6864b. 
SEC. 414B. TECHNICAL TRANSFER GRANTS. 
"(a) IN GENERAL.—^The Secretary may, to the extent funds 
are made available, provide financial assistance to entities receiving 
funding from the Federal Government or from a State through 
a weatnerization assistance program under section 413 or section 
414 for— 
"(1) evaluating technical and management measures which 
increase program and/or private entity performance in 
weatherizing low-income housing; 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2843 
"(2) producing technical information for use by persons 
involved in weatherizing low-income housing; 
"(3) exchanging information; and 
"(4) conducting training programs for persons involved in 
weatherizing low-income housing. 
"(b) CONDITIONS.—(1) Not less than 50 percent of amounts 
provided under this section shall be awarded to entities other 
than States. 
"(2) A recipient of financial assistance under this section may 
contract with nonprofit entities to carry out all or part of the 
activities for which such 
financial 
assistance is provided. . 
(b) USE OF SOLAR THERMAL WATER HEATERS AND WOOD-BURN-
ING HEATING APPLIANCES FOR LOW-INCOME WEATHERIZATION.—Sec-
tion 412(9) of the Energy Conservation and Production Act (42 
U.S.C. 6862(9)) is amended— 
(1) by moving subparagraph (G) 2-ems to the right and 
by striking "and"; 
(2) by redesignating subparagraph (H) as subparagraph 
(J); and 
(3) by inserting after subparagraph (G), the following: 
(H) solar thermal water heaters; 
"(I) wood-heating appliances; and". 
(c) CLERICAL AMENDMENT.—The table of contents for part A 
of title IV of the Energy Conservation and Production Act is 
amended by inserting after the item related to section 414 the 
following items: 
"Sec. 414A. Private sector investments. 
"Sec. 414B. Technical transfer grants.". 
SEC. 143. ENERGY EXTENSION SERVICE PROGRAM. 
(a) REPEAL.—^The National Energy Extension Service Act, title 
V of Public Law 95-39, is repealed. 
(b) CONFORMING AMENDMENT.—Section 103 of the Energy 
Reorganization Act of 1974 (42 U.S.C. 5813(7)) is amended— 
(1) by striking paragraph (7); and 
(2) by redesignating paragraphs (8), (9), (10), (11), and 
(12) as paragraphs (7), (8), (9), (10), and (11), respectively. 
Subtitle F—^Federal Agency Energy 
Management 
SEC. 161. DEFINITIONS. 
42 USC 8262. 
For purposes of this subtitle— 
(1) the term "agency^ means has the meaning given such 
term in section 551(1) of title 5, United States Code, except 
that such term does not include the United States Postal 
Service; 
(2) the term "facility energy supervisor^ means the 
employee with responsibility for the daily operations of a Fed-
eral facility, inclumng the management, instollation, operation, 
and maintenance of energy systems in Federal facilities which 
may include more than one bmlding; 
(3) the term "trained energy manager" means a person 
who has demonstrated proficiency, or who has completed a 
course of study in the areas of fundamentals of building energy 
systems, building energy codes and applicable professional 
106 STAT. 2844 
PUBLIC LAW 102-486—OCT. 24, 1992 
standards, energy accounting and analysis, life-cycle cost meth-
odology, fuel supply and pricing, and instrumentation for energy 
surveys and audits; 
(4) the term 'Task Force" means the Interagency Energy 
Management Task Force established under section 547 of the 
National Energy Conservation Policy Act (42 U.S.C. 8257); and 
(5) the term "energy conservation measures" has the mean-
ing given such term in section 551(4) of the National Energy 
Conservation Policy Act. 
SEC. 152. FEDERAL ENERGY MANAGEMENT AMENDMENTS. 
(a) PURPOSE.—Section 542 of the National Energy Conservation 
Policy Act (42 U.S.C. 8252) is amended by inserting after "use 
of energy" the following: "and water, and the use of renewable 
energy sources,". 
(b) REQUIREMENTS FOR FEDERAL AGENCIES.—Section 543 of 
such Act (42 U.S.C. 8253(a)) is amended— 
(1) in the section heading by striking "(jrOALS" and insert-
ing "REQUIREMENTS"; 
(2) in subsection (a) by striking "GOAL" and inserting 
"REQUIREMENT"; 
(3) in subsection (aXD, by striking the period at the end 
and inserting the following: "and so that the energy consump-
tion per gross square foot of its Federal buildings in use during 
the fiscal year 2000 is at least 20 percent less than the energy 
consumption per gross square foot of its Federal buildings 
in use during 
fiscal 
year 1985."; and 
(4) by redesignating subsection (b) as subsection (d) and 
inserting after subsection (a) the following: 
"(b) ENERGY MANAGEMENT REQUIREMENT FOR FEDERAL AGEN-
ClES.-^l) Not later than January 1, 2005, each agency shall, to 
the maximum extent practicable, install in Federal buildings owned 
by the United States all energy and water conservation measures 
with payback periods of less than 10 years, as determined by 
using the methods and procedures developed pursuant to section 
544. 
"(2) The Secretary may waive the requirements of this sub-
section for any agency for such periods as the Secretary may deter-
mine if the Secretary finds that the agency is taking all practicable 
steps to meet the requirements and that the requirements of this 
subsection will pose an unacceptable burden upon the agency. If 
the Secretary waives the requirements of this subsection, the Sec-
retary shall notify the Congress promptly in writing with an expla-
nation and a justification of 
the reasons for such waiver. 
"(3) This subsection shall not apply to an agency's facilities 
that generate or transmit electric energy or to the uranium enrich-
ment facilities operated by the Department of Energy. 
"(4) An agency may participate in the Environmental Protection 
Agency's 'Green Lights' program for purposes of receiving technical 
assistance in complying with the requirements of this section. 
"(c) EXCLUSIONS.—<1) An agency may exclude, from the energy 
consumption requirements for uie year 2000 established under sim^ 
section (a) and the requirements of subsection (bXD, any Federal 
building or collection of Federal buildings, and the associated energy 
consumption and gross square footage, if the head of such agencv 
finds that compliance with such requirements would be impractical. 
A finding of impracticabiUty shall be based on the energy intensive-
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2845 
ness of activities carried out in such Federal buildings or collection 
of Federal buildings, the type and amount of energy consumed, 
the technical feasibility of making the desired changes, and, in 
the cases of the Departments of Defense and Energy, the unique 
character of certain facilities operated by such Departments. 
"(2) Each Agency shall identify and list, in each report made 
under section 548(a), the Federal buildings designated by it for 
such exclusion. The Secretaiy shall review such findings for consist-
ency with the impracticability standards set forth in paragraph 
(1), and may withm 90 days after receipt of the findings, reverse 
a finding of impracticability. In the case of any such reversal, 
the agency shall comply with the energy consumption requirements 
for the building concerned.". 
(c) IMPLEMENTATION.—Section 543(d) of such Act (as redesig-
nated by subsection (bX4) of this section) is amended^ 
42 use 8253. 
(1) in the material preceding paragraph (1), by striking 
out To achieve the goal established in subsection (a)," and 
inserting in lieu thereof the following: The Secretary shall 
consult with the Secretary of Defense and the Administrator 
of General Services in developing guidelines for the 
implementation of this pcurt. To meet the requirements of this 
section,"; 
(2) by striking out paragraph (1) and inserting in lieu 
thereof the following: 
"(1) prepare and submit to the Secretary, not later than 
December 31, 1993, a plan describing how the agency intends 
to meet such requirements, including how it will— 
"(A) designate personnel primarily responsible for 
achieving such requirements; 
"(B) identify high priority projects through calculation 
of p^back periods; 
(C) take maximum advantage of contracts authorized 
under title VIII of this Act, of financial incentives and 
other services provided by utilities for efficiency invest-
ment, and of otner forms of financing to reduce the direct 
costs to the Grovemment; and 
*
*
(
D
) otherwise implement this part;"; 
(3) in paragraph (2), by inserting before the semicolon 
at the end the following: "and update such surveys as needed, 
incorporating any relevant information obtained from the sur-
vey conducted pursuant to section 550"; 
(4) by striking out paragraph (3) and inserting in lieu 
thereof the following: 
"(3) using such surveys, determine the cost and payback 
period of energy and water conservation measures likely to 
achieve the reauirements of this section; 
"(4) install energy and water conservation measures that 
will achieve the requirements of this section through the meth-
ods and procedures established pursuant to section 544; and"; 
and 
(5) by redesignating paragraph (4) as paragraph (5). 
(d) LIFE CJYCLE COST METHODS AND PROCEDURES.—Section 544 
of such Act (42 U.S.C. 8254) is amended— 
(1) in subsection (a), in the material preceding paragraph 
(1), by striking out 'National Bureau of Standards, and insert-
ing in lieu thereof '7>^ational Institute of Standards and Tech-
nology,"; and 
106 STAT. 2846 
PUBLIC LAW 102-486—OCT. 24, 1992 
(2) in subsection 0^X2), by striking "agency shall" and all 
that follows through the period at the end and inserting the 
following: "agenc^^ shall, after January 1, 1994, fully consider 
the efficiency of all potential building space at the time of 
renewing or entering into a new lease.", 
(e) IDENTIFICATION OF FUNDS.—Section 545 of such Act (42 
U.S.C. 8255) is amended to read as follows: 
*«£€. 54S. BUDGET 
TREATMENT 
FOR 
ENERGY 
CONSERVATION 
MEAS-
URES. 
The President shall transmit to the Congress, along with each 
budget that is submitted to the Congress under section 1105 of 
title 31, United States Code, a statement of the amount of appro-
priations requested in such budget, if any, on an individual agency 
basis, for— 
"(1) electric and other energy costs to be incurred in operat-
ing and maintaining agency facilities; and 
"(2) compliance with the provisions of this part, the Energy 
Policy and Conservation Act (42 U.S.C. 6201 et seq.), and 
all applicable Executive orders, including Executive Order 
12003 (42 U.S.C. 6201 note) and Executive Order 12759 (56 
Fed. Reg. 16257).". 
(0 INCENTIVE PROGRAM.—Section 546 of such Act (42 U.S.C. 
8256) is amended— 
(1) by striking "(a) IN GENERAL.—** and inserting in lieu 
thereof "(a) CONTRACTS.—(1)"; 
(2) by redesignating subsection (b) as paragraph (2) and 
amending it to read as follows: 
"(2) The Secretary shall, not later than 18 months after the 
date of the enactment of the Energy Policy Act of 1992 and aft;er 
consultation with the Director of the Office of Management and 
Budget, the Secretary of Defense, and the Administrator of General 
Services, develop appropriate procedures and methods for use by 
agencies to implement the incentives referred to in paragraph (1)."; 
(3) by striking out subsection (c); and 
(4) by adding at the end the following new subsections: 
Establishment. 
«(b) FEDERAL ENERGY EFFICIENCY FUND.—(1) The Secretary 
shall establish a Federal Energy Efficiency Fund to provide grants 
to agencies to assist them in meeting the requirements of section 
543. 
"(2) Not later than Jime 30, 1993, the Secretary shall issue 
guidelines to be followed by agencies submitting proposals for such 
grants. All agencies shall be eligible to submit proposals for grants 
under the Fund. 
"(3) The Secretary shall award grants from the Fund after 
a competitive assessment of the technical and economic effectiveness 
of each agency proposal. The Secretary shall consider the following 
factors in determining whether to provide funding under this sub-
section: 
"(A) The cost-effectiveness of the project. 
"(B) The amount of energy and cost savings anticipated 
to the Federal Grovemment. 
"(C) The amount of funding committed to the project by 
the agency requesting financial assistance. 
"(D) The extent that a proposal leverages financing from 
other non-Federal sources. 
Grants. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2847 
"(E) Any other factor which the Secretary determines will 
result in the greatest amount of energy and cost savings to 
the Federal Government. 
"(4) There are authorized to be appropriated, to remain avail-
able to be expended, to ccirry out this subsection not more than 
$10,000,000 for fiscal year 1994, $50,000,000 for fiscal year 1995, 
and such sums as may be necessary for fiscal years thereafter. 
*
*
(
c
) UTILITY INCENTIVE PRCXIRAMS.—(1) Agencies are authorized 
and encouraged to participate in programs to increase energy effi-
ciency and for water conservation or the management of electricity 
demand conducted by gas, water, or electric utilities and generally 
available to customers of such utilities. 
"(2) Each agency may accept any financial incentive, goods, 
or services generally available from £uiy such utility, to increase 
energy efficiency or to conserve water or manage electricity demand. 
''(3) Each agency is encouraged to enter into negotiations with 
electric, water, and gas utilities to design cost-effective demand 
management and conservation incentive programs to address the 
unique needs of facilities utilized by such agency. 
"(4) If an agency satisfies the criteria which generally apply 
to other customers of a utility incentive program, such agency 
may not be denied collection of rebates or other incentives. 
''(5XA) An amount equal to fifty percent of the energy and 
water cost savings realized by an agency (other than the Depart-
ment of Defense) with respect to funds appropriated for any fiscal 
year beginning after fiscal year 1992 (including financial benefits 
resulting from energy savings performance contracts under title 
VIII and utility energy efficiency rebates) shall, subject to appropria-
tion, remain available for expenditure by such agency for additional 
energy efficiency measures which may include related employee 
incentive programs, particularly at those facilities at which energy 
savings were achieved. 
(B) Agencies shall establish a fund and maintain strict financial 
accounting and controls for savings realized and expenditures made 
under this subsection. Records maintained pursuant to this 
subparagraph shall be made available for public inspection upon 
request. 
"(d) FINANCIAL INCENTIVE PROGRAM FOR FACILITY ENERGY MAN-
AGERS.—(1) The Secretary shall, in consultation with the Task 
Force estabUshed pursuant to section 547, establish a financial 
bonus program to reward, with funds made available for such 
purpose, outstanding Federal facility energy managers in agencies 
and the United States Postal Service. 
"(2) Not later than June 1, 1993, the Secretary shall issue 
procedures for implementing and conducting the award program, 
mcluding the criteria to be used in selecting outstanding energy 
managers and contributors who have— 
"(A) improved energy performance through increased 
energy efficiency; 
"(B) implemented proven energy efficiency and energy con-
servation techniques, devices, equipment, or procedures; 
"(C) developed and implemented training programs for 
facility energy managers, operators, and maintenance person-
nel; 
"(D) developed and implemented employee awareness pro-
grams; 
106 STAT. 2848 
PUBLIC LAW 102-486—OCT. 24, 1992 
''(E) succeeded in generating utility incentives, shared 
energy savings contracts, and other federally approved perform-
ance oased energy savings contracts; 
''(F) made successful efforts to fulfill compliance with 
energy reduction mandates, including the provisions of section 
543; and 
"(G) succeeded in the implementation of the guidelines 
established under section 159. 
"(3) There is authorized to be appropriated to carry out this 
subsection not more than $250,000 for each of the fiscal years 
1993 1994 and 1995. 
(g) REPORTS.—Section 548 of such Act (42 U.S.C. 8258) is 
amended— 
(1) in subsection (bXD, by striking "including" and all 
that follows through the semicolon and inserting the following: 
"including— 
'XA) a copy of the list of the exclusions made under 
sections 543(aX2) and 543(cX3); and 
"(B) a statement detailing the amount of funds 
awarded to each agency under section 546(b), the energy 
and water conservation measures installed with such funds, 
the projected energy and water savings to be realized from 
installed measures, and, for each installed measure for 
which the projected energy and water savings reported 
in the previous year were not realized, the percentage 
of such projected savings that was not realized, the reasons 
such savings were not realized, and proposals for, and 
P
rojected costs of, achieving such projected savings in the 
iture;"; and 
(2) by adding at the end the following new subsection: 
"(c) OTHER REPORT.—^The Secretary, in consultation with the 
Administrator of General Services, shall— 
"(1) conduct a study and evaluate legal, institutional, and 
other constraints to connecting buildings owned or leased by 
the Federal Government to district heating and district cooling 
systems; and 
"(2) not later than 18 months after the date of the enact-
ment of this subsection, transmit to the Congress a report 
containing the findings and conclusions of such study, incluoing 
recommendations for the development of streamlined processes 
for the consideration of connecting buildings owned or leased 
by the Federal Government to mstrict heating and cooling 
systems.**. 
(h) DEMONSTRATION OF NEW TECHNOLOGY; SURVEY OF ENERGY 
SAVING POTENTIAL.—Such Act is amended— 
42 use 8259. 
(1) by redesignating section 549 as section 551; and 
(2) by inseriting the following new sections after section 
548: 
42 use 8258a. 
"SEC. 649. DEMONSTRATION OF NEW TECHNOLOGY. 
"(a) DEMONSTRATION PROGRAM.—Not later than Januaiy 1, 
1994, the Secretarv, in cooperation vdth the Administrator of Gen-
eral Services, shall establish a demonstration program to install, 
in federally owned facilities or federally assisted housing, energy 
conservation measures for which the Secretary has determined 
that such installation would accelerate commercial viability. In 
those cases where technologies are determined to be equivalent. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2849 
priority shall be given to those technologies that have received 
or are receiving Federal financial assistance. 
''(b) SELECTION CRITERIA.—In addition to the determination 
under subsection (a), the Secretary shall select, in cooperation with 
the Administrator of General Services, proposals to be funded under 
this section on the basis o
f
— 
"(1) cost-efifectiveness; 
"(2) technical feasibility and system reliability in a working 
environment; 
"(3) lack of market penetration in the Federal sector; 
"(4) the potential needs of the proposing Federal agency 
for the technology, projected over 5 to 10 years; 
"(5) the potential Federal sector market, projected over 
5 to 10 years; 
**(6) energy efficiency; and 
"(7) other environmental benefits, including the projected 
reduction of greenhouse gas emissions and indoor air pollution. 
"(c) PROPOSALS.—^Federal agencies may submit to the Secretary, 
for each fiscal year, proposals for projects to be funded by the 
Secretary under this section. Each such proposal shall include— 
"(1) a description of the proposed project emphasizing the 
innovative use of technology in the Federal sector; 
"(2) a description of the technical reliability and cost-
effectiveness data expected to be acquired; 
"(3) an identification of the potential needs of the Federal 
agency for the technology; 
"(4) a commitment to adopt the technology, if the project 
establishes its technical reliability and life cycle cost-effective-
ness, to supply at least 10 percent of the Federal agenc^s 
potential needs identified imder paragraph (3); 
"(5) schedules and milestones for installing additional imits; 
and 
"(6) a technology transfer plan to publicize the results 
of the project. 
"(d) PARTICIPATION BY GSA.—The Secretary may only select 
a project for funding under this section which is proposed to be 
carried out in a building imder the jurisdiction of the General 
Services Administration if the project will be carried out by the 
Administrator of General Services. If such project involves a total 
expenditure in excess of $1,600,000, no appropriation shall be made 
for such project imless such project has been approved by a resolu-
tion adopted by the Committee on Public Works and Transportation 
of the House of Representatives and the Committee on Environment 
and Public Works of the Senate. 
"(e) STUDY.—^The Secretary shall conduct a study to evaluate 
the potential use of the purchasing power of the Federal Govern-
ment to promote the development and commercialization of energy 
efficient products. The study shall identify products for which there 
is a high potential for Federal purchasing power to substantially 
promote their development and commercialization, and shall include 
a plan to develop such potential. The study shall be conducted 
in consultation with utilities, manufacturers, and appropriate non-
profit organizations concerned with energy efficiency. The Secretary 
shall report to the Congress on the results of the study not later 
than two years after the date of the enactment of this Act. 
106 STAT. 2850 
PUBLIC LAW 102-486—OCT. 24, 1992 
"(£) AUTHORIZATION OP APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretary for carrying out this section 
$5,000,000 for each of the fiscal years 1993,1994, and 1995. 
42 use 8258b. 
"SEC. S50. SURVEY OF ENERGY SAVING POTENTIAL. 
"(a) IN GENERAL.—^The Secretary shall, in consultation with 
the Interagency Energy Management Task Force established under 
section 547, carry out an energy survey for the purposes o
f
— 
"(1) determining the maximtmi potential cost effective 
energy savings that may be achieved in a representative sample 
of buildings owned or leased by the Federal Grovemment in 
different areas of the country; 
''(2) making recommendations for cost effective energy effi-
ciency and renewable energy improvements in those buildings 
and in other similar Federal buildings; and 
**(3) identifying barriers which may prevent an agency's 
ability to comply with section 543 and other energy manage-
ment goals. 
"(b) IMPLEMENTATION.—(1) The Secretary shall transmit to the 
Committee on Energy and Natural Resources and the Committee 
on Governmental Affairs of the Senate and the Committee on 
Energyr and Commerce, the Committee on Government Operations, 
and me Committee on Public Works and Transportation of the 
House of Representatives, within 180 days after the date of the 
enactment of the Energy Policy Act of 1992, a plan for implementing 
this section. 
"(2) The Secretary shall designate buildings to be surveyed 
in the project so as to obtain a sample of the buildings of the 
types and in the climates that is representative of buildings owned 
or leased by Federal agencies in the United States that consimie 
the mcgor portion of the energy consiuned in Federal buildings. 
Such sample shall include, where appropriate, the following types 
of Federal facility space: 
*
*
(
A
) Housing. 
"(B) Storage. 
«(C) Office. 
"(D) Services. 
"(E) Schools. 
"(F) Research and Development. 
"(G) Industrial. 
"(H) Prisons. 
"(I) Hospitals. 
"(3) For purposes of this section, an improvement shall be 
considered cost effective if the cost of the energy saved or displaced 
by the improvement exceeds the cost of the improvement over 
the remaining life of a Federal building or the remaining term 
of a lease of a building leased by the Federal Government as 
determined by the life Qrcle costing methodology developed under 
section 544. 
"(c) PERSONNEL.—(1) In carrying out this section, the Secretary 
shall utilize personnel who are— 
"(A) employees of the Department of Energy; or 
"(B) selected by the agencies utilizing the buildings which 
are being surveyed imder this section. 
"(2) Such personnel shall be detailed for the purpose of carrying 
out this section without any reduction of salary or benefits. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2851 
''(d) REPORT.—As soon as practicable after the completion of 
the project carried out under this section, the Secretary shall trans-
mit a report of the findings and conclusions of the project to the 
Committee on Enei^ and Natural Resources and the Committee 
on Grovemmental Affairs of the Senate, the Committee on Energy 
and Commerce, the Committee on Government Operations, and 
the Committee on Public Works and Transportation of the House 
of Representatives, and the agencies who own the buildings involved 
in such project. Such report shall include an analysis of the prob-
ability of each agency achieving the 20 percent reduction goal 
established under section 543(a) of the National Energy Conserva-
tion PoHcy Act (42 U.S.C. 8253(a)).''. 
(i) TECHNICAL AMENDMENTS.—(1) Section 548 of such Act (42 
U.S.C. 8258) is amended— 
(A) in subsection (aX2), by striking '*546(b)'' and inserting 
in lieu thereof "546(aX2)''; and 
(B) in subsection (b), in the material preceding paragraph 
(1), by striking "annually," and insert the following: **, not 
later than Aprir2 of each year,". 
(2) The table of contents of such Act is amended by striking 
the item for section 549 and inserting in lieu thereof the following 
new items: 
"Sec. 549. Demonstration of new technology. 
"Sec. 560. Survey of energy saving potential. 
"Sec. 561. Deanitions.". 
(3) Section 3 of the Federal Energy Management Improvement 
Act of 1988 (42 U.S.C. 8253 note) is hereby repealed. 
SEC. 153. GENERAL SERVICES ADMINISTRATION FEDERAL BUILDINGS 
FUND. 
Section 210(0 of the Federal Property and Administrative Serv-
ices Act of 1949 (40 U.S.C. 490(0), is amended— 
(1) in paragraph (1), by inserting "(to be known as the 
Federal Buildings Fund)" after "a fimd'^ and 
(2) by addmg at the end the following new paragraphs: 
"(7XA) The Administrator is authorized to receive amounts 
from rebates or other cash incentives related to energy savings 
and shall deposit such amounts in the Federal Buildings Fund 
for use as provided in subparagraph (D). 
"(B) The Administrator may accept, from a utility, goods or 
services which enhance the energy efficiency of Federal facilities. 
"(C) In the administration of any real property for which the 
Administrator leases and pays utility costs, the Administrator may 
assign all or a portion of energy rebates to the lessor to imderwrite 
the costs incurred in undertaking energy efficiency improvements 
in such real property if the payback period for such improvement 
is at least 2 years less than the remainder of the term of the 
lease. 
"(D) The Administrator may, in addition to amounts appro-
priated for such purposes and without regard to paragraph (2), 
obligate for energy management improvement programs— 
"(i) amounts received and deposited in uie Federal Build-
ings Fund under subparagraph (A); 
"(ii) goods and services received under subparagraph (B); 
and 
106 STAT. 2852 
PUBLIC LAW 102-486—OCT. 24, 1992 
"(iii) amounts the Administrator determines are not needed 
for other authorized projects and are otherwise available to 
implement energy effiaency programs. 
"(SXA) The Administrator is authorized to receive amounts 
from the sale of recycled materials and shall deposit such amounts 
in the Federal Buildings Fund for use as provided in subparagraph 
(B). 
"(B) The Administrator may, in addition to amoimts appro-
priated for such purposes and without regard to paragraph (2), 
obligate amounts received and deposited in the Federal Buildings 
Fund under subparagraph (A) for programs which— 
"(i) promote fiirther source reduction and recycling pro-
grams; and 
"(ii) encourage employees to participate in recycling pro-
grams by providing funding for child care. . 
42 use 8262a. 
SEC. 154. REPORT BY GENERAL SERVICES ADMINISTRATION. 
Not later than one year after the date of the enactment of 
this Act, and annually thereafter, the Administrator of Greneral 
Services shall report to the Committee on Grovemmental Affairs 
and the Committee on Energy and Natural Resources of the Senate 
and the Committee on Energy £md Commerce, the Committee on 
Government Operations, and the Committee on Public Works and 
Transportation of the House of Representatives on the activities 
of the General Services Administration conducted pursuant to this 
subtitle. 
SEC. 155. ENERGY SAVINGS PERFORMANCE CONTRACTS. 
(a) IN GENERAL.—Section 801 of the National Energy Conserva-
tion Policy Act (42 U.S.C. 8287) is amended— 
(1) by striking The head" and inserting the following: 
"(a) IN GENERAL.—<1) The head"; and 
(2) by inserting at the end the following: 
"(2XA) Contracts imder this title shall be energy savings 
performance contracts and shall require an annual energy audit 
and specify the terms and conditions of anv (jovemment pajmients 
and performance guarantees. Any such perrormance guarantee shall 
provide that the contractor is responsible for maintenance and 
repair services for any energy related equipment, including com-
puter software systems. 
"(B) Aggregate annual payments by an agency to both utilities 
and energy savings performance contractors, under an energy sav-
ings peirormance contract, may not exceed the amoimt that the 
agency would have paid for utilities without an energy savings 
performance contract (as estimated through the procedures devel-
oped pursuant to this section) during contract years. The contract 
shall provide for a guarantee of savings to the agency, and shall 
establish payment schedules reflecting such guarantee, taking into 
account any capital costs under the contract. 
"(C) Federal agencies may incur obligations pursuant to such 
contracts to finance energy conservation measures provided guaran-
teed savings exceed the debt service requirements. 
"(D) A Federal agency may enter into a multiyear contract 
under this title for a period not to exceed 25 years, without funding 
of cancellation charges before cancellation, if— 
' 
"(i) such contract was awarded in a competitive manner 
pursuant to subsection (bX2), using procedures and methods 
established under this title; 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2853 
"(ii) funds are available and adequate for payment of the 
costs of such contract for the first fiscal year; 
"(iii) 30 days before the award of any such contract that 
contains a clause setting forth a cancellation ceiling in excess 
of $750,000, the head of such agency gives written notification 
of such proposed contract and of the proposed cancellation 
ceiling for such contract to the appropriate authorizing and 
appropriating committees of the Congress; and 
"(iv) such contract is governed by part 17.1 of the Federal 
Acquisition Regulation promulgated under section 25 of the 
Office of Federal Procurement Policy Act (41 U.S.C. 421) or 
the applicable rules promulgated under this title. 
"(b) IMPLEMENTATION.—(IXA) The Secretary, with the concur-
rence of the Federal Acquisition Regulatory Council established 
under section 25(a) of the Office of Federal Procurement Policy 
Act, not later than 180 days after the date of the enactment of 
the Energy Policy Act of 1992, shall, by rule, establish appropriate 
procedures and methods for use by Federal agencies to select, 
monitor, and terminate contracts with energy service contractors 
in accordance with laws governing Federal procurement that will 
achieve the intent of this section in a cost-effective manner. In 
developing such procedures and methods, the Secretary, with the 
concurrence of tne Federal Acquisition Regulatory Council, shall 
determine which existing regulations are inconsistent with the 
intent of this section and shall formulate substitute regulations 
consistent with laws governing Federal procurement. 
"(B) The procedures and methods established pursuant to 
subparagraph (A) shall be the procedvires and contractmg methods 
for selection, by an agency, of a contractor to provide energy savings 
performance services. Such procedures and methods shall provide 
for the calculation of energy savings based on sound engineering 
and financial practices. 
"(2) The procedures and methods established pursuant to para-
graph (IXA) shall— 
"(A) allow the Secretary to— 
"(i) request statements of qualifications, which shall, 
at a minimum, include prior experience and capabilities 
of contractors to perform the proposed types of energy 
savings services and financial and performance informa-
tion, n-om firms engaged in providing energy savings serv-
ices; and 
"(ii) from the statements received, designate and pre-
gare a Ust, with an update at least annually, of those 
rms that are qualified to provide energy savings services; 
"(B) require each agency to use the Ust prepared by the 
Secretary pursuant to subparagraph (AXii) unless the agency 
elects to develop an agency Ust of firms qualified to provide 
energy savings performance services using the same selection 
procedures and methods as are required of the Secretary in 
preparing such Usts; and 
"(C) allow the head of each agency to— 
"(i) select firms from tiie Ust prepared pursuant to 
subparagraph (AXii) or the Ust prepared by the agency 
pursuant to subparagraph (B) to conduct discussions 
concerning a particular proposed energy savings project, 
including requesting a technical and price proposal from 
such selected 
firms 
tor such project; 
106 STAT. 2854 
PUBLIC LAW 102-486—OCT. 24, 1992 
"(ii) select from such firms the most qualified firm 
to provide energy savings services based on technical and 
price proposals and any other relevant information; 
"(iii) permit receipt of imsolicited proposals for energy 
savings performance contracting services 
firom 
a firm that 
such agency has determined is qualified to provide such 
services under the procedures established pursuant to para-
graph dXA), and require agency facility managers to place 
a notice in the Commerce Business Dail^ announcing they 
have received such a proposal and invite other similarly 
qualified firms to submit competing proposals; and 
"(iv) enter into an energy savings performance contract 
with a firm qualified under clause (iii), consistent with 
the procediu-es and methods established pursuant to para-
graph (IXA). 
"(3) A 
firm 
not designated as qualified to provide energy savings 
services imder paragraph (2XAXi) or paragraph (2XB) may request 
a review of such decision to be conducted in accordance with proce-
dures to be developed by the board of contract appeals of the 
General Services Administration. Procedures developed by the board 
of contract appeals imder this paragraph shall be substaintially 
equivalent to procedures established under section 111(f) of the 
Federal Property and Administrative Services Act of 1949 (40 U.S.C. 
759(f)). 
"(c) SUNSET AND REPORTING REQUIREMENTS.—(1) The authority 
to enter into new contracts under this section shall cease to be 
effective five years after the date procedures and methods are 
established imder subsection (b). 
"(2) Beginning one year after the date procedures and methods 
are established under subsection (b), and annually thereafter, for 
a period of five years after such date, the Comptroller Greneral 
of the United States shall report on the implementation of this 
section. Such reports shall include, but not be limited to, £ui assess-
ment of the following issues: 
"(A) The quality of the energy audits conducted for the 
agencies. 
"(B) The Government's ability to maximize energy savings. 
"(C) The total energy cost savings accrued by the agencies 
that have entered into such contracts. 
"(D) The total costs associated with entering into and 
performing such contracts. 
"(£) A comparison of the total costs incurred by agencies 
under such contracts and the total costs incurred under similar 
contracts performed in the private sector. 
"(F) The number of firms selected as Qualified firms imder 
this section and their respective shares ot awarded contracts. 
"(G) The number of nrms engaged in similar activity in 
the private sector and their respective market shares. 
"(H) The number of applicant firms not selected as qualified 
firms imder this section and the reason for their nonselection. 
"(I) The frequency with which agencies have utilized the 
services of Government labs to perform any of the functions 
spedfied in this section. 
"(J) With the respect to the final report submitted pursuant 
to this paragraph, an assessment of whether the contracting 
procedures developed pursucmt to this section and utilized by 
agencies have been effective and whether continued use of 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2855 
such procedures, as opposed to the procediires provided by 
existing public contract law, is necessary for implementation 
of successful energy savings performance contracts. . 
(b) DEFINITION.—Section 804 of such Act (42 U.S.C. 8287c) 
is amended— 
(1) in the material preceding parc^graph (1), by striking 
"title—" and inserting "title, the following definitions apph'^. , 
(2) in paragraph (1), by striking "the and inserting 'The" 
and by striking ", and" and inserting a period; 
(3) in paragraph (2), by striking the term" and inserting 
"The term"; and 
(4) by adding at the end the following: 
"(3) The terms 'energy savings contract' and 'energy savings 
performance contract' mean a contract which provides for the 
performance of services for the design, acquisition, installation, 
testing, operation, and, where appropriate, maintenance and 
repair, of an identified energy conservation measure or series 
of measures at one or more locations. Such contracts— 
"(A) may provide for appropriate software licensing 
agreements; and 
"(B) shall, with respect to an agency facility that is 
a public building as such term is defined in section 13(1) 
of the Public Buildings Act of 1959 (40 U.S.C. 612(1)), 
be in compliance with the prospectus requirements and 
procedures of section 7 of the Public Buildings Act of 1959 
(40 U.S.C. 606). 
"(4) The term 'energy conservation measures' has the mean-
ing given such term in section 551(4).". 
(c) TECHNICAL AND CONFORMING AMENDMENTS.—(1) The title 
hea^ng for title VIII of such Act is amended to read as follows: 
"TITLE VIII—ENERGY SAVINGS 
PERFORMANCE CONTRACTS". 
(2) The table of contents of such Act is amended by striking 
the item relating to title VIII and inserting the following: "ENERGY 
SAVINGS PERFORMANCE CONTRACTS". 
SEC. 156. INTERGOVERNMENTAL ENERGY MANAGEMENT PLANNMC 
42 U
E
K
3 8262B. 
AND COORDINATION. 
(a) CONFERENCE WORKSHOPS.—The Administrator of Cieneral 
Services, in consultation with the Secretary and the Task Force, 
shall hold regular, biennial conference workshops in each of the 
10 standard Federal regions on energy management, conservation, 
efficiency, and planning strategy. The Administrator shall work 
and consult with the Department of Energy and other Federal 
agencies to plan for particular regional conferences. The Adminis-
trator shall invite Department of Energy, State, local, tribal, and 
county public ofiicials who have responsibilities for energy manage-
ment or may have an interest in such conferences and shall seek 
the input of, and be responsive to, the views of such officials 
in the planning and organization of such workshops. 
(b) Focus OF WORKSHOPS.—Such workshops and conferences 
shall focus on the following (but may include other topics): 
(1) Developing strategies among Federal, State, tribal, and 
local governments to coordinate energy management policies 
106 STAT. 2856 
PUBLIC LAW 102-486—OCT. 24, 1992 
and to maximize available intergovermnental energy manage-
ment resources within the region regarding the use of govern-
mental facilities and buildings. 
(2) The design, construction, maintenance, and retrofitting 
of governmental facilities to incorporate energy efficient tech-
niques. 
(3) Procurement and use of energy efficient products. 
(4) Dissemination of energy information on innovative pro-
grams, technologies, and methods which have proven successful 
m government. 
(5) Technical assistance to design and incorporate effective 
energy management strategies. 
(c) ESTABUSHMENT OF WORKSHOP TIMETABLE.—As a part of 
the first report to be submitted pursuant to section 154, the 
Administrator shall set forth the schedule for the regional energy 
management workshops to be conducted imder this section. Not 
less tn£ui five such workshops shall be held by September 30, 
1993, and at least one such workshop shall be held in each of 
the 10 Federal regions every two years beginning on September 
30,1993. 
42 use 8262c. 
SEC. 157. FEDERAL AGENCY ENERGY MANAGEMENT TRAINING. 
(a) ENERGY MANAGEMENT TRAINING.—(1) Each executive 
department described under section 101 of title 5, United States 
Code, the Environmental Protection Agency, the National Aero-
nautics and Space Administration, the General Services Administra-
tion, and the United States Postal Service shall establish and 
maintain a program to ensure that facility energy managers are 
trained energy managers. Such programs shall be managed— 
(A) oy the department or agency representative on the 
Task Force; or 
(B) if a department or agency is not represented on the 
Task Force, by the designee of the head of such department 
or agency. 
(2) Departments and agencies described in paragraph (1) shall 
encourage appropriate employees to participate in energy manager 
training courses. Employees may enroll in courses of study in me 
areas described in section 151(3) including, but not limited to, 
courses offered by— 
(A) private or public educational institutions; 
(B) Federal agencies; or 
(C) professional associations. 
(b) REPORT TO TASK FORCE.—(1) Each department and agency 
described in subsection (aXD shall, not later than 60 days following 
the date of the enactment of this Act, report to the Task Force 
the following information: 
(A) Those individuals employed by such department or 
agency on the date of the enactment of this Act who qualify 
as trained energy managers. 
(B) The Greneral Schedule (GS) or grade level at which 
each of the individuals described in subparagraph (A) is 
empl^ed. 
(C) The facility or facilities for which such individuals 
are responsible or otherwise stationed. 
(2) llie Secretary shall provide a summary of the reports 
described in paragraph (1) to the Congress as part of the first 
report submitted unaer section 548 of the National Energy Con-
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2857 
servation Policy Act (42 U.S.C. 8258) after the date of the enactment 
of this Act. 
(c) REQUIREMENTS AT FEDERAL FACILITIES.—(1) Not later than 
one year after the date of the enactment of this Act, the departments 
and agencies described under subsection (aXD shall upgrade their 
energy management capabilities by— 
(A) designating facility energy supervisors; 
(B) encouraging facility energy supervisors to become 
trained energy managers; and 
(C) increasing the overall number of trained energy man-
agers within such department or agency to a sufficient level 
to ensure effective implementation of this Act. 
(2) Departments ana agencies described in subsection (a)(1) 
may hire trained energy managers to be facility energv supervisors. 
Trained energy managers, including those who are facility super-
visors as well as other trained personnel, shall focus their efforts 
on improving energy efficiency in the following facilities— 
(A) department or agency facilities identified as most costly 
to operate or most ener^r inefficient; or 
(B) other facilities identified by the department or agency 
head as having significant energy savings potential. 
(d) 
ANNUAL REPORT TO SECRETARY AND CONGRESS.—Each 
department and agency listed in subsection (aXD shall report to 
the Secretary on the status and implementation of the requirements 
of this section. The Secretary shall include a summary of each 
such report in the annual report to Congress as required under 
section 548(b) of the National Energy Conservation Policy Act (42 
U.S.C. 8258). 
SEC. 158. ENERGY AUDIT TEAMS. 
42 USC 8262d. 
(a) ESTABLISHMENT.—^The Secretary shall assemble from exist-
ing personnel with appropriate expertise, and with particular utili-
zation of the national laboratories, and make available to all Federal 
agencies, one or more energy audit teams which shall be equipped 
with instruments and other advanced equipment needed to perform 
energy audits of Federal facilities. 
(b) MONITORING PROGRAMS.—The Secretary shall also assist 
in establishing, at each site that has utilizea an energy audit 
team, a program for monitoring the implementation of energy effi-
ciency improvements based upon energy audit team recommenda-
tions, and for recording the operating history of such improvements. 
SEC. 159. FEDERAL ENERGY COST ACCOUNTING AND MANAGEMENT. 42 USC 8262e. 
(a) GUIDELINES.—Not later than 120 days after the date of 
the enactment of this Act, the Director of the (Jffice of Management 
and Budget, in cooperation with the Secretary, the Administrator 
of General Services, and the Secretary of Defense, shall establish 
guidelines to be employed by each Federal agency to assess accurate 
energy consumption for all buildings or facilities which the agency 
owns, operates, manages or leases, where the Government pays 
utilities separate from the lease and the Government operates the 
leased space. Such guidelines are to be used in reports required 
under section 548 of the National Energy Conservation Policy Act 
(42 U.S.C. 8258). Each agency shall implement such guidelines 
no later than 120 days after their establishment. Each facility 
energy manager shall maintain energy consumption and energy 
cost records for review by the Inspector General, the Congress, 
and the general public. 
106 STAT. 2858 
PUBLIC LAW 102-486—OCT. 24, 1992 
(b) CONTENTS OF GUIDELINES.—Such guidelines shall include 
the establishment of a monitoring system to determine— 
(1) which facilities are the most costly to operate when 
measured on an energy consumption per square foot basis 
or other relevant analytical basis; 
(2) unusual or abnormal changes in energy consumption; 
and 
(3) the accuracy of utility charges for electric and gas 
consumption. 
(c) FEDERALLY LEASED SPACE ENERGY REPORTING REQUIRE-
MENT.—^The Administrator of General Services shall include, in 
each report submitted under section 154, the estimated energy 
cost of leased buildings or space in which the Federal Government 
does not directly pay the utility bills. 
42 use 8262f. 
SEC. 160. INSPECTOR GENERAL REVIEW AND AGENCY ACCOUNTABIL-
ITY. 
(a) AUDIT SURVEY.—^Not later than 120 days after the date 
of the enactment of this Act, each Inspector General created to 
conduct and supervise audits and investigations relating to the 
programs and operations of the establishments listed in section 
11(2) of the Inspector General Act of 1978 (5 U.S.C. App.), and 
the Chief Postal Inspector of the United States Postal Service, 
in accordance with section 8E(f)(l) as established by section 8E(a)(2) 
of the Inspector General Act Amendments of 1988 (Public Law 
100-504) shall— 
(1) identify agency compliance activities to meet the 
requirements of section 543 of the National Energy Conserva-
tion Policy Act (42 U.S.C. 8253) and any other matters relevant 
to implementing the goals of such Act; and 
(2) determine if the agency has the internal accounting 
mechanisms necessary to assess the accuracy and reliability 
of energy consumption and energy cost figures required under 
such section. 
(b) PRESIDENTS COUNCIL ON INTEGRITY AND EFFICIENCY REPORT 
TO CONGRESS.—^Not later than 150 days after the date of the enact-
ment of this Act, the President's Coimcil on Integrity and Efficiency 
shall submit a report to the Committee on Energy and Natural 
Resources and the Committee on Governmental Affairs of the Sen-
ate, the Committee on Energy and Commerce, the Committee on 
Grovemment Operations, and the Committee on Public Works and 
Transportation of the House of Representatives, on the review con-
ducted by the Inspector (general of each agency under this section. 
(c) INSPECTOR GENERAL REVIEW.—Each Inspector General 
established under section 2 of the Inspector General Act of 1978 
(5 U.S.C. App.) is encouraged to conduct periodic reviews of agency 
compliance with part 3 of title V of the National Energy Conserva-
tion Policy Act, the provisions of this subtitle, and other laws 
relating to energy consumption. Such reviews shall not be inconsist-
ent with the performance of the required duties of the Inspector 
General's office. 
42 use 8262g. 
SEC. 161. PROCUREMENT AND IDENTIFICATION OF ENERGY EFFI-
CIENT PRODUCTS. 
(a) PROCUREMENT.—^The Administrator of General Services, the 
Secretary of Defense, and the Director of the Defense Logistics 
Agency, each shall imdertake a program to include energy efficient 
products in canying out their procurement and supply functions. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2859 
(b) IDENTIFICATION PROGRAM.—The Administrator of General 
Services, the Secretary of Defense, and the Director of the Defense 
Logistics Agency, in consultation with the Secretary of Energy, 
each shall implement, in co]:\jimction with carrying out their 
procurement and supply functions, a program to identify and des-
ignate those energy emcient products that offer significant potential 
savings, using, to the extent practicable, the life cycle cost methods 
and procedures developed under section 544 of the National Energy 
Conservation Policy Act (42 U.S.C. 8254). The Secretary of Energy 
shall, to the extent necessary to carry out this section and after 
consultation with the aforementioned agency heads, provide esti-
mates of the degree of relative energy efficiency of products. 
(c) GUIDELINES.—^The Administrator for Federal Procurement 
Policy, in consultation with the Administrator of General Services, 
the Secretary of Energy, the Secretary of Defense, and the Director 
of the Defense Logistics Agen^, shall issue guidelines to encourage 
the acquisition and use by all Federal agencies of products identified 
pursuant to this section. The Secretary of Defense and the Director 
of the Defense Logistics Agency shall consider, and place emphasis 
on, the acquisition of such products as part of the Agency's ongoing 
review of military specifications. 
(d) REPORT TO CONGRESS.—Not later than December 31 of 
1993 and of each year thereafter, the Secretary of Energy, in 
consultation with the Administrator for Federal Procurement Policy, 
the Administrator of General Services, the Secretary of Defense, 
and the Director of the Defense Logistics Agency, shall report 
on the progress, status, activities, and results of the programs 
under subsections (a), (b), and (c). The report shall include— 
(1) the tvpes and fimctions of each product identified under 
subsection (b), and efforts undertaken by the Administrator 
of Greneral Services, the Secretary of Defense, and the Director 
of the Defense Logistics Agency to encourage the acquisition 
and use of such products; 
(2) the actions taken by the Administrator of General Serv-
ices, the Secretary of Defense, and the Director of the Defense 
Logistics Agency to identify products imder subsection (b), the 
barriers which inhibit implementation of identification of such 
products, and recommendations for legislative action, if nec-
essary; 
(3) progress on the development and issuance of guidelines 
under subsection (c); 
(4) an indication of whether energy cost savings tech-
nologies identified by the Advanced Building Technology Coun-
cil, imder section 809(h) of the National Housing Act (12 U.S.C. 
1701J-2), have been used in the identification of products under 
subsection (b); 
(5) an estimate of the potential cost savings to the Federal 
Grovemment from acquiring products identified under sub-
section (b) with respect to which energy is a significant compo-
nent of life cycle cost, based on the quantities of such products 
that could be utilized throughout the Government; and 
(6) the actual quantities acquired of products described 
in paragraph (5). 
SEC. 162. FEDERAL ENERGY EFFICIENCY FUNDING STUDY. 
(a) STUDY.—^The Secretary shall, in consultation with the Sec-
retary of the Treasury, the Director of the Office of Management 
106 STAT. 2860 
PUBLIC LAW 102-486—OCT. 24, 1992 
and Budget, the Administrator of General Services, and such other 
individuals and organizations as the Secretary deems appropriate, 
conduct a detailed: study of options for the financing of energy 
and water conservation measures required under part 3 of title 
V of the National Energy Conservation Policy Act (42 U.S.C. 8251 
et seq.) and all apphcable Executive orders. Such study shall, taking 
into account the unique characteristics of Federal agencies, consider 
and analyze— 
(1) the Federal financial investment necessary to comply 
with such requirements; 
(2) the use of revolving funds and other funding mecha-
nisms which offer stable, long-term financing of energy and 
water conservation measures; and 
(3) the means for capitalizing such funds. 
(b) REPORT TO CONGRESS.—Not later than 180 days afler the 
date of the enactment of this Act, the Secretarv shall submit to 
the Congress a report containing the results of the study required 
imder subsection (a). 
42 use 8262h. 
SEC. 163. UNITED STATES POSTAL SERVICE ENERGY REGULATIONS. 
(a) IN GENERAL.—^The Postmaster General shall issue regula-
tions to ensure the reliable and accurate accounting of energy 
consumption costs for all buildings or facilities which it owns, 
leases, operates, or manages. Such regulations shall— 
(1) establish a monitoring system to determine which facili-
ties are the most costly to operate on an energy consumption 
per square foot basis or other relevant analytical basis; 
(2) identify unusual or abnormal changes in energy 
consumption; and 
(3) check the accuracy of utility charges for electricity and 
gas consumption. 
(b) IDENTIFICATION OF ENERGY EFFICIENCY PRODUCTS.—^The 
Postmaster General shall actively undertake a program to identify 
and procure energy efficiency products for use in its facilities. 
In canying out this subsection, the Postmaster General shall, to 
the maximum extent practicable, incorporate energy 
efficient 
information available on Federal Supply Schedules maintained by 
the Greneral Services Administration and the Defense Logistics 
Agency. 
42 use 8262h 
SEC 164. UNITED STATES POSTAL SERVICE BUILDING ENERGY SUR-
note. 
VEY AND REPORT. 
(a) IN GENERAL.—The Postmaster General shall conduct an 
energy survey, as defined in section 551(5) of the National Energy 
Conservation Policy Act, for the purposes of— 
(1) determining the maximum potential cost effective 
energy savings that may be achieved in a representative sample 
of buildings owned or leased by the United States Postal Service 
in different areas of the country; 
(2) making recommendations for cost effective enerfflr effi-
ciency and renewable energy improvements in those buildings 
and in other similar United States Postal Service buildings; 
and 
(3) identifjdng barriers which may prevent the United 
States Postal Service from complying with energy management 
goals, including Executive Orders No. 12003 and 12579. 
(b) IMPLEMENTATION.—(1) The Postmaster Cxeneral shall trans-
mit to the Committee on Grovemmental Affairs and the Committee 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2861 
on Energy and Natural Resources of the Senate, and the Committee 
on Energy and Commerce and the Committee on Post Office and 
Civil Service of the House of Representatives, within 180 days 
after the date of the enactment of this Act, a plan for implementing 
this section. 
(2) The Postmaster Oeneral shall designate buildings to be 
surveyed in the project so as to obtain a sample of United States 
Postal Service facilities of the types and in the climates that 
consume the msgor portion of the energy consumed by the United 
States Postal Service. 
(3) For the purposes of this section, an improvement shall 
be considered cost effective if the cost of the energy saved or 
displaced by the improvement exceeds the cost of the improvement 
over the remaining life of the facility or the remaining term of 
a lease of a building leased by the United States Postal Service. 
(c) REPORT.—^As soon as practicable after the completion of 
the project carried out under tnis section, the Postmaster General 
shall transmit a report of the findings and conclusions of the survey 
to the Committee on Governmental Affairs and the Committee 
on Energy and Natural Resources of the Senate, and the Committee 
on Energy and Commerce and the Committee on Post Office and 
Civil Service of the House of Representatives. 
SEC. 165. UNITED STATES POSTAL SERVICE ENERGY MANAGEMENT 
42 USC 82621. 
REPORT. 
Not later than one year after the date of the enactment of 
this Act, and not later than January 1 of each year thereafter, 
the Postmaster General shall submit a report to the Committee 
on Governmental Affairs and the Committee on Energy and Natural 
Resources of the Senate and the Committee on Energy and Com-
merce and the Committee on Post Office and Civil Service of the 
House of Representatives on the United States Postal Service's 
building management program as it relates to energy efficiency. 
The report shall include, but not be limited to— 
(1) a description of actions taken to reduce energy consump-
tion; 
(2) future plans to reduce energy consumption; 
(3) an assessment of the success of the energy conservation 
program; 
(4) a statement of energy costs incurred in operating and 
maintaining all United States Postal Service facilities; and 
(5) the status of the energy efficient procurement program 
established under section 163. 
SEC. 166. ENERGY MANAGEMENT REQUIREMENTS FOR THE UNITED 
42 USC 8262J. 
STATES POSTAL SERVICE. 
(a) ENERGY MANAGEMENT REQUIREMENTS FOR POSTAL FACILI-
TIES.—(1) The Postmaster General shall, to the maximum extent 
practicable, ensure that each United States Postal Service facility 
meets the energy management requirements for Federal buildings 
and agencies specified in section 543 of the National Energy Con-
servation Policy Act (42 U.S.C. 8253). 
(2) The Postmaster General may exclude from the requirements 
of such section any facility or collection of facilities, and the associ-
ated energy consumption and gross square footage if the Postmaster 
General finds that compliance with the requirements of such section 
would be impracticable. A finding of impracticability shall be based 
on the e n e r ^ intensiveness of activities carried out in such facility 
106 STAT. 2862 
PUBLIC LAW 102-486—OCT. 24, 1992 
or collection of facilities, the t3npe and amoiint of energy consumed, 
or the technical feasibility^ of making the desired changes. The 
Postmaster General shall identify and list in the report required 
under section 165 the facilities designated by it for such exclusion, 
(b) IMPLEMENTATION STEPS.—In canying subsection (a), the 
Postmaster Greneral shall— 
(1) not later than 1 year after the date of the enactment 
of this Act, prepare or update, as appropriate, a plan (which 
may be submitted as part of the first report submitted under 
section 165)— 
(A) describing how this section will be implemented; 
(B) designating personnel primarily responsible for 
achieving the requirements of this section; and 
(C) identifying high priority projects; 
(2) perform energy surveys of United States Postal Service 
facilities as necessary to achieve the requirements of this sec-
tion; 
(3) install those energy conservation measures that will 
attain the requirements ofthis section in a cost-effective man-
ner as defined in section 544 of the National Energy Conserva-
tion Policy Act (42 U.S.C. 8254); and 
(4) ensure that the operation and maintenance procedures 
applied under this section are continued. 
42 use 8262k. 
SEC. 167. GOVERNMENT CONTRACT INCENTIVES. 
(a) ESTABLISHMENT OF CRITERIA.—Each agencv, in consultation 
with the Federal Acquisition Regulatonr Council, shall establish 
criteria for the improvement of energy efficiency in Federal facilities 
operated by Federal Government contractors or subcontractors. 
(b) PURPOSE OF CRITERIA.—^The criteria established under sub-
section (a) shall be used to encourage Federal contractors, and 
their subcontractors, which manage and operate federally-owned 
facilities, to adopt and utilize energy conservation measures 
designed to reduce energv costs in Government-owned and contrac-
tor-operated facilities and which are ultimately borne by the Federsd 
Grovemment. 
40 use 166 note. 
SEC. 168. ENERGY MANAGEMENT REQUIREMENTS FOR CONGRES-
SIONAL BUILDINGS. 
(a) IN GENERAL.—The Architect of the Capitol (hereafter in 
this section referred to as the "Architect") shall undertake a pro-
gram of analysis and, as necessary, retrofit of the Capitol Building, 
the Senate Office Buildings, the House Office Buildings, and the 
Capitol Groimds, in accordance with subsection (b). 
(b) PROGRAM.— 
(1) LIGHTING.— 
(A) IMPLEMENTATION.— 
(i) IN GENERAL.—Not later than 18 months after 
the date of the enactment of this Act and subject 
to the availability of funds to carry out this section, 
the Architect shall begin implementing a program to 
replace in each building described in subsection (a) 
all inefficient office and general use area fluorescent 
lighting systems with systems that incorporate the 
best available design and technology and that have 
E
ayback periods of 10 years or less, as determined 
y using methods and procedures established under 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2863 
section 544(a) of the National Energy and Conservation 
Policy Act (42 U.S.C. 8254(a)). 
(ii) REPLACEMENT OF INCANDESCENT LIGHTING.— 
Whenever practicable in office and general use areas, 
the Architect shall replace incandescent lighting with 
efficient fluorescent lighting. 
(B) COMPLETION.—Subject to the availability of funds 
to carry out this section, the progr£im described in subpara-
graph (A) shall be completed not later than 5 years after 
the date of the enactment of this Act. 
(2) EVALUATION AND REPORT.— 
(A) IN GENERAL.—Not later than 6 months after the 
date of the enactment of this Act, the Architect shall submit 
to the Speaker of the House of Representatives and the 
President pro tempore of the Senate a report evaluating 
potential energy conservation measures for each building 
described in subsection (a) in the areas of heating, ventila-
tion, air conditioning equipment, insulation, windows, 
domestic hot water, food service equipment, and automatic 
control equipment. 
(B) COSTS.—^The report submitted under subparagraph 
(A) shall detail the projected installation cost, energy and 
cost savings, and payback period of each energy conserva-
tion measiu'e, as determined by using methods and proce-
dures established under section 544(a) of the National 
Energy Conservation Policy Act (42 U.S.C. 8254(a)). 
(3) REVIEW AND APPROVAL OF ENERGY CONSERVATION MEAS-
URES.—^The Committee on Public Works and Transportation 
of the House of Representatives and the Committee on Rules 
and Administration of the Senate shall review the energy con-
servation measures identified in accordance with paragraph 
(2) and shall approve any such measure before it may be 
implemented. 
(4) UTILITY INCENTIVE PROGRAMS.—In carrying out this 
section, the Architect is authorized and encouraged to— 
(A) accept any rebate or other financial incentive 
offered through a program for energy conservation or 
demeuid management of electricity, water, or gas that— 
(i) is conducted by an electric, natural gas, or 
water utility; 
(ii) is generally available to customers of the util-
ity; and 
(iii) provides for the adoption of energy efficiency 
technologies or practices that the Architect determines 
are cost-effective for the buildings described in sub-
section (a); and 
(B) enter into negotiations with electric and natural 
gas utilities to design a special demand management and 
conservation incentive program to address the unique needs 
of the buildings describied in subsection (a). 
(5) USE OF SAVINGS.—^The Architect shall use an amount 
equal to the rebate or other savings from the financial incentive 
programs under paragraph (4XA), without additional authoriza-
tion or appropriation, for the implementation of additional 
energy and water conservation measures in the buildings under 
the jiuisdiction of the Architect. 
106 STAT. 2864 
PUBUC LAW 102-486—OCT. 24,1992 
(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated such sums as are necessary to carry out this 
section. 
Subtitle G—^Miscellaneous 
SEC. 171. ENERGY INFORMATION. 
(a) ENERGY INFORMATION ADMINISTRATION.—Section 205(iXl) 
of the Department of Energy Organization Act (42 U.S.C. 7135(iXl)) 
is amended— 
(1) in the matter preceding subparagraph (A), by striking 
''on at least a triennial basis" and inserting in lieu thereof 
the following: "at least once every two years"; and 
(2) by amending subparagraph (D) to read as follows: 
"(D) use of nonpurchased sources of energy, such as solar, 
wind, biomass, geothermal, waste by-products, and cogenera-
tion.". 
(b) 
RENEWABLE ENERGY INFORMATION.—Section 205 
of 
the 
Department of Energy Organization Act (42 U.S.C. 7135) is 
amended by adding at the end the following new subsections: 
"(jXl) The Administrator shall annually collect and publish 
the results of a survey of electricity production from domestic renew-
able energy resources, including production in kilowatt hours, total 
installed capacity, capacity factor, and any other measure of produc-
tion efficiency. Such results shall distinguish between various 
renewable energy resources. 
"(2) In carrying out this subsection, the Administrator shall— 
"(A) utilize, to the maximum extent practicable and consist-
ent with the faithful execution of his responsibilities under 
this Act, reliable statistical sampling techniques; and 
"(B) otherwise take into accoimt the reporting burdens 
of energy information by small businesses. 
"(3) As iised in this subsection, the term 'renewable energy 
resoiu-ces' includes energy derived from solar thermal, geothermal, 
biomass, wind, and photovoltaic resources. 
"(k) Pursuant to section 52(a) of the Federal Energy Administra-
tion Act of 1974 (15 U.S.C. 790a(a)), the Administrator shall— 
"(1) conduct surveys of residential and commercial energy 
use at least once every 3 years, and make such information 
available to the public; 
"(2) when surveying electric utilities, collect information 
on demand-side management programs conducted by such utili-
ties, including information regarding the types of demand-side 
management programs being operated, the quantity of meas-
ures instcdled, expenditures on demand-side management 
programs, estimates of energy savings resulting from such pro-
grams, and whether the savings estimates were verified; and 
"(3) in carrsdng out this subsection, take into accotuit 
reporting burdens and the protection of proprietary information 
as required by law. 
"(1) In order to improve the ability to evaluate the effectiveness 
of the Nation's energy efficiency policies and programs, the Adminis-
trator shall, in carrying out the data collection provisions of sub-
sections (i) and (k), consider— 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2865 
"(1) expanding the survey instruments to include questions 
regarding psurticipation in Government and utility conservation 
programs; 
"(2) expanding fuel-use surveys in order to provide greater 
detail on energy use by user subgroups; and 
"(3) expanding the scope of data collection on energy effi-
cienqr and load-nuuiagement programs, including the effects 
of building construction practices such as those designed to 
obtain peaK load shifting.". 
SEC. 172. DISTRICT HEATING AND COOLING PROGRABIS. 
(a) IN GENERAL.—The Secretary, in consultation with appro-
priate industry oiganizations, shall conduct a study to— 
(1) assess existing district heating and cooling technologies 
to determine cost-effectiveness, technical performance, energy 
efficiency, and environmental impacts as compared to alter-
native methods for heating and cooling buildings; 
(2) estimate the economic value of benefits that may result 
from implementation of district heating and cooling systems 
but that are not currently reco^piized, sucn as reduced emissions 
of air pollutants, local economic development, and energy secu-
rity; 
(3) evaluate the cost-effectiveness, including the economic 
value referred to in paragraph (2), of cogenerated district heat-
ing and cooling technologies comj^area to other alternatives 
for generating or conserving electricity; and 
(4) assess and make recommendations for reducing institu-
tional and other constraints on the implementation of district 
heating and cooling systems. 
(b) REPORT.—^Not later than 2 vears after the date of the 
enactment of this Act, the Secretary shall transmit to the Congress 
a report containing the findings, conclusions and recommendations, 
if any, of the Secretary for carrving out Federal, State, and local 
programs as a result of the study conducted under subsection (a). 
SEC. ITS. STUDY AND REPORT ON VIBRATION REDUCTION TECH-
NOLOGIES. 
(a) IN GENERAL.—^The Secretary shall, in consultation with 
the appropriate industry representatives, conduct a study to assess 
the cost-effectiveness, technical performance, energy efficiency, and 
environmental impacts of active noise and vibration cancellation 
technologies that use fast adapting algorithms. 
(b) PROCEDURE.—^In carrying out such study, the Secretary 
shall— 
(1) estimate the potential for conserving energy and the 
economic and environmental benefits that may result fix>m 
implementing active noise and vibration abatement tech-
nologies in demand side management; and 
(2) evaluate the cost-effectiveness of active noise and vibra-
tion cancellation technologies as compared to other alternatives 
for reducing noise and vibration. 
(c) REPORT.—^The Secretary shall transmit to the Congress, 
not later than 12 months after the date of the enactment of this 
Act, a report containing the findings and conclusions of the study 
carried out under this section. 
(d) DEMONSTRATION.—^The Secretary may, based on the findings 
and conclusions of the study carried out under this section, conduct 
at least one project designed to demonstrate the commercial applica-
42 u s e 13451 
note. 
42 u s e 13451 
note. 
59-194 O—93 
5:QL3(Pt. 4) 
106 STAT. 2866 
PUBLIC LAW 102-486—OCT. 24, 1992 
tion of active noise and vibration cancellation technologies using 
fast adapting algorithms in products or equipment with a significant 
potential for increased energy efficiency. 
TITLE II—NATURAL GAS 
SEC. 201. FEWER RESTRICTIONS ON CERTAIN NATURAL GAS IMPORTS 
AND EXPORTS. 
Section 3 of the Natural Gas Act (15 U.S.C. 717b) is amended 
by inserting "(a)" before "After six months"; and by adding at 
the end the following new subsections: 
"(b) With respect to natural gas which is imported into the 
United States from a nation with which there is in effect a free 
trade agreement requiring national treatment for trade in natural 
gas, and with respect to liquefied natural gas— 
"(1) the importation of such natural gas shall be treated 
as a 'first sale within the meaning of section 2(21) of the 
Natural Gas PoHcy Act of 1978; and 
"(2) the Commission shall not, on the basis of national 
origin, treat any such imported natural gas on an unjust, 
unreasonable, unduly discriminatory, or preferential basis. 
"(c) For purposes of subsection (a), the importation of the natu-
ral gas referred to in subsection (b), or the exportation of natural 
gas to a nation with which there is in effect a free trade agreement 
requiring national treatment for trade in natural gas, shall be 
deemed to be consistent with the public interest, and applications 
for such importation or exportation shall be granted without modi-
fication or delay.". 
SEC. 202. SENSE OF CONGRESS. 
It is the sense of the Congress that natural gas consumers 
and producers, and the national economy, are best served by a 
competitive natural gas wellhead market. 
TITLE III—ALTERNATIVE FUELS-
GENERAL 
42 use 13211. 
SEC. 301. DEFINITIONS. 
For purposes of this title, title IV, and title V (unless otherwise 
specified)— 
(1) the term "Administrator" means the Administrator of 
the Environmental Protection Agency; 
(2) the term "alternative fuel" means methanol, denatured 
ethanol, and other alcohols; mixtures containing 85 percent 
or more (or such other percentage, but not less than 70 percent, 
as determined by the Secretary, by rule, to provide for require-
ments relating to cold start, safety, or vehicle functions) by 
volume of methanol, denatured ethanol, and other alcohols 
with gasoline or other fuels; natural gas; liquefied petroleum 
gas; hydrogen; coal-derived liquid fuels; fuels (other than alco-
hol) derived from biological materials; electricity (including elec-
tricity from solar energy); and any other fuel the Secretary 
determines, by rule, is substantially not petroleum and would 
yield substantial energy security benefits and substantial 
environmental benefits; 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2867 
(3) the term "alternative fueled vehicle" means a dedicated 
vehicle or a dual fueled vehicle; 
(4) the term "comparable conventionally fueled motor 
vehicle" means a motor vehicle which is, as determined by 
the Secretary— 
(A) commercially available at the time the comparabil-
ity of the vehicle is being assessed; 
(B) powered by an internal combustion engine that 
utilizes gasoline or diesel fuel as its fuel soiu'ce; and 
(C) provides passenger capacity or payload capacity 
the same or similar to the alternative fueled vehicle to 
which it is being compared; 
(5) "covered person" means a person that owns, operates, 
leases, or otherwise controls— 
(A) a fleet that contains at least 20 motor vehicles 
that are centrally fueled or capable of being centrally 
fueled, and are used primarily within a metropolitan statis-
tical area or a consolidated metropolitan statistical area, 
as established by the Bureau of the Census, with a 1980 
population of 250,000 or more; and 
(B) at least 50 motor vehicles within the United States; 
(6) the term "dedicated vehicle" means— 
(A) a dedicated automobile, as such term is defined 
in section 513(hXlXC) of the Motor Vehicle Information 
and Cost Savings Act; or 
(B) a motor vehicle, other than an automobile, that 
operates solely on alternative fuel; 
(7) the term "domestic" means derived from resources 
within the several States, the District of Columbia, the 
Commonwealth of Puerto Rico, the United States Virgin 
Islands, Guam, American Samoa, the Commonwealth of the 
Northern Mariana Islands, or any other Commonwealth, terri-
tory, or possession of the United States, including the outer 
Continental Shelf, as such term is defined in the Outer Con-
tinental Shelf Lands Act, or from resources within a Nation 
with which there is in effect a free trade agreement requiring 
national treatment for trade; 
(8) the term "dual fueled vehicle" means— 
(A) dual fueled automobile, as such term is defined 
in section 513(hXlXD) of the Motor Vehicle Information 
and Cost Savings Act; or 
(B) a motor vehicle, other than an automobile, that 
is capable of operating on alternative fuel and is capable 
of operating on gasoline or diesel fuel; 
(9) the term "fleet" means a group of 20 or more light 
duty motor vehicles, used primarily in a metropolitan statistical 
area or consoUdated metropolitan statistical area, as estab-
lished by the Bureau of the Census, with a 1980 population 
of more than 250,000, that are centrally fueled or capable 
of being centrally fueled and are owned, operated, leaseid, or 
otherwise controlled by a governmental entity or other person 
who owns, operates, leases, or otherwise controls 50 or more 
such vehicles, by any person who controls such person, by 
any person controlled by such person, and by any person imder 
common control with such person, except that such term does 
not include— 
106 STAT. 2868 
PUBLIC LAW 102-486—OCT. 24, 1992 
(A) motor vehicles held for lease or rental to the general 
public; 
(B) motor vehicles held for sale by motor vehicle 
dealers, including demonstration motor vehicles; 
(C) motor vehicles used for motor vehicle manufacturer 
product evaluations or tests; 
(D) law enforcement motor vehicles; 
(E) emergency motor vehicles; 
(F) motor vehicles acquired and used for military pur-
poses that the Secretary of Defense has certified to the 
Secretary must be exempt for national security reasons; 
(G) nonroad vehicles, including farm and construction 
motor vehicles; or 
(H) motor vehicles which imder normal operations are 
garaged at personal residences at night; 
(10) the term "fuel supplier" means— 
(A) any person engaged in the importing, refining, 
or processing of crude oil to produce motor fuel; 
(B) any person engaged in the importation, production, 
storage, transportation, distribution, or sale of motor fuel; 
and 
(C) any person engaged in generating, transmitting, 
importing, or selling at wholesale or retail electricity; 
(11) the term "light duty motor vehicle" means a light 
duty truck or light duty vehicle, as such terms are defined 
under section 216(7) of the Clean Air Act (42 U.S.C. 7550(7)), 
of less than or equal to 8,500 pounds gross vehicle weight 
rating; 
(12) the term "motor fuel" means any substance suitable 
as a fuel for a motor vehicle; 
(13) the term "motor vehicle" has the meaning given such 
term imder section 216(2) of the Clean Air Act (42 U.S.C. 
7550(2)); and 
(14) the term "replacement fuel" means the portion of any 
motor fuel that is methanol, ethanol, or other alcohols, natural 
gas, liquefied petroleum gas, hydrogen, coal derived liquid fuels, 
fuels (other tnan alcohol) derived from biological materials, 
electricity (including electricity from solar energy), ethers, or 
any other fuel the Secretary determines, by rule, is substan-
tially not petroleimi and would yield substantial energy security 
benefits and substantial environmental benefits. 
SEC. 302. AMENDMENTS TO THE ENERGY POUCY AND CONSERVATION 
ACT. 
(a) AMENDMENTS.—Section 400AA of the Energy Policy and 
Conservation Act (42 U.S.C. 6374) is amended— 
(1) in subsection (aXl)— 
(A) by striking "passenger automobiles and light duty 
trucks" and inserting in lieu thereof "vehicles"; and 
(B) by striking "alcohol powered vehicles, dual energy 
vehicles, natural gas powered vehicles, or natural gas dual 
energy vehicles." and inserting in lieu thereof "alternative 
fueled vehicles. In no event shall the nimiber of such 
vehicles acquired be less than the number required under 
section 303 of the Energy Policy Act of 1992."; 
(2) by amending subsection (aX3) to read as follows: 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2869 
"(3)(A) To the extent practicable, the Secretary shall acquire 
both dedicated and dual fueled vehicles, and shall ensure that 
each type of alternative fueled vehicle is used by the Federed 
Government. 
"(B) Vehicles acquired under this section shall be acquired 
from original equipment manufacturers. If such vehicles are not 
available from original equipment manufacturers, vehicles con-
verted to use alternative fuels may be acquired if, after conversion, 
the original equipment manufacturer's warranty continues to apply 
to such vehicles, pursuant to an agreement between the original 
equipment maniifacturer and the person performing the conversion. 
This subparagraph shall not apply to vehicles acquired by the 
United States Postal Service pursuant to a contract entered into 
by the United States Postal Service before the date of enactment 
of this subparagraph and which terminates on or before December 
31, 1997. 
"(C) Alternative fueled vehicles, other than those described 
in subparagraph (B), may be acquired solely for the purposes of 
studies under subsection (b), whether or not original equipment 
manufacturer warranties still apply. 
"(D) In deciding which t3rpes of alternative fueled vehicles to 
acquire in implementing this part, the Secretary shall consider 
as a factor— 
"(i) which types of vehicles yield the greatest reduction 
in pollutants emitted per dollar spent; and 
"(ii) the source of the fuel to supply the vehicles, giving 
preference to vehicles that operate on alternative fuels derived 
from domestic sources. 
"(E) Dual fueled vehicles acquired pursuant to this section 
shall be operated on alternative fuels unless the Secretary deter-
mines that operation on such alternative fuels is not feasible. 
"(F) At least 50 percent of the alternative fuels used in vehicles 
acquired pursuant to this section shall be derived from domestic 
feedstocks, except to the extent inconsistent with the General Agree-
ment on Tariffs and Trade. The Secretary shall issue regulations Regulations, 
to implement this requirement. For purposes of this subparagraph, 
the term 'domestic' has the meaning given such term in section 
301(7) of the Energy Policy Act of 1992. 
"(G) Except to the extent inconsistent with the General Agree-
ment on Tariffs and Trade, vehicles acquired under this section 
shall be motor vehicles manufactured in the United States or Can-
ada."; 
(3) by adding at the end of subsection (a) the following 
new paragraph: 
"(4) Acquisitions of vehicles under this section shall, to the 
extent practicable, be coordinated with acquisitions of alternative 
fueled vehicles by State and local governments."; 
(4) in subsection (b), by inserting after paragraph (2) the 
following new paragraphs: 
"(3)(A) The Secretary, in cooperation with the Environmental 
Protection Agency and the Department of Transportation, shall 
collect data and conduct a study of heavy duty vehicles acquired 
under subsection (a), which shall at a minimum address— 
"(i) the performance of such vehicles, including reliability, 
durability, and performance in cold weather and at high alti-
tude; 
106 STAT. 2870 
PUBLIC LAW 102-486—OCT. 24, 1992 
''(ii) the fuel economy, safety, and emissions of such 
vehicles; and 
''(iii) a comparison of the operation and maintenance costs 
of such vehicles to the operation and maintenance costs of 
conventionally fueled heavy duty vehicles. 
"(B) The Secretary shall provide a report on the results of 
the study conducted under subparagraph (A) to the Committees 
on Commerce, Science, and Transportation, Clovemmental Affairs, 
and Energy and Natural Resources of the Senate, and the Commit-
tees on Energy and Commerce and Grovemment Operations of the 
House of Representatives, within one year after the first such 
vehicles are acquired, and annually thereafter. 
"(4)(A) The Secretary and the Administrator of the General 
Services Administration shall conduct a study of the advisability, 
feasibility, and timing of the disposal of heavy duty vehicles 
acquired under subsection (a) and any problems with such disposal. 
Such study shall take into accoimt existing laws governing the 
sale of Government vehicles and shall specSically focus on when 
to sell such vehicles and what price to charge. 
Reports, 
"(B) The Secretary and the Administrator of the Gteneral Serv-
ices Administration shall report the results of the study conducted 
under subparagraph (A) to the Committees on Commerce, Science, 
and Transportation, Governmental Affairs, and Energy and Natural 
Resources of the Senate, and the Committee on Energy and Com-
merce and the Committee on Government Operations of the House 
of Representatives, within one year after funds are appropriated 
for carrying out this paragraph. 
"(5) Studies undertaken under this subsection shall be coordi-
nated with relevant testing activities of the Environmental Protec-
tion Agency and the Department of Transportation."; 
(5) in subsection (c)— 
(A) by striking "alcohol or natural gas, alcohol or 
natural gas" and inserting in lieu thereof "alternative fuels, 
such fuels"; and 
(B) by striking "alcohol or natural gas" and inserting 
in lieu thereof "alternative fuel" in paragraph (1); 
(6) in subsection (dX2XB), by striking ^Tie Secretary" and 
inserting in lieu thereof "To the extent that appropriations 
are available for such purposes, the Secretary"; 
(7) in subsection (g), by striking paragraphs (2) through 
(6) and inserting in lieu thereof the following: 
"(2) the term "alternative fuel" means methanol, denatured 
ethanol, and other alcohols; mixtures containing 85 percent 
or more (or such other percentage, but not less than 70 percent, 
as determined by the Secretary, by rule, to provide for require-
ments relating to cold start, safety, or venicle functions) by 
volume of methanol, denatured ethanol, and other alcohols 
with gasoline or other fuels; natural gas; liquefied petroleum 
gas; hydrogen; coal-derived liquid fuels; fuels (other than alco-
ol) derived from biological materials; electricity (including elec-
tricity fix)m solar energy); and any other fuel the Secretary 
determines, by rule, is substantially not petroleum and would 
yield substantial energy security benefits and substantial 
environmental benefits; 
"(3) the term 'alternative fueled vehicle' means a dedicated 
vehicle or a dual fueled vehicle; 
"(4) the term'dedicated vehicle* means— 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2871 
"(A) a dedicated automobile, as such term is defined 
in section 513(h)(lXC) of the Motor Vehicle Information 
and Cost Savings Act; or 
"(B) a motor vehicle, other than an automobile, that 
operates solely on alternative fuel; 
"(5) the term 'dual fueled vehicle' means— 
"(A) dual fueled automobile, as such term is defined 
in section 513(hXlXD) of the Motor Vehicle Information 
and Cost Savings Act; or 
' 
"(B) a motor vehicle, other than an automobile, that 
is capable of operating on alternative fuel and is capable 
of operating on gasoline or diesel fuel; and 
"(6) the term 'heavy duty vehicle* means a vehicle of greater 
than 8,500 pounds gross vehicle weight rating."; and 
(8) by amending subsection (i)(l) to read as follows: "(1) 
For the purposes of this section, there are authorized to be 
appropriated such sums as may be necessary for fiscal years 
1993 through 1998, to remain available until expended.", 
(b) REPEAL OF TERMINATION DATE.—Section 4(b) of the Alter-
native Motor Fuels Act of 1988 is repealed. 
42 use 6374 
note. 
SEC. 303. MINIMUM FEDERAL FLEET REQUIREMENT. 
42 USC 13212. 
(a) GENERAL REQUIREMENTS.—(1) The Federal Government 
shall acquire at least— 
(A) 5,000 light duty alternative fueled vehicles in fiscal 
year 1993; 
(B) 7,500 light duty alternative ^fueled vehicles in fiscal 
year 1994; and 
(C) 10,000 light duty alternative fueled vehicles in fiscal 
year 1995. 
(2) The Secretary shall allocate the acquisitions necessary to 
meet the requirements under paragraph (1). 
(b) PERCENTAGE REQUIREMENTS.—(1) Of the total number of 
vehicles acquired by a Federal fleet, at least— 
(A) 25 percent in fiscal year 1996; 
(B) 33 percent in fiscal year 1997; 
(C) 50 percent in fiscal year 1998; and 
(D) 75 percent in fiscal year 1999 and thereafter, 
shall be alternative fueled vehicles. 
(2) The Secretary, in consultation with the Administrator of 
General Services where appropriate, may permit a Federal fleet 
to acquire a smaller percentage than is required in paragraph 
(1), so long as the aggregate percentage acquired by all Federal 
fleets is at least equal to the required percentage. 
(3) For purposes of this subsection, the term "Federal fleet" 
means 20 or more light duty motor vehicles, located in a metropoli-
tan statistical area or consolidated metropolitan statistical area, 
as established by the Bureau of the Census, with a 1980 population 
of more than 250,000, that are centrally fueled or capable of being 
centrally fueled and are owned, operated, leased, or otherwise con-
trolled by or assigned to any Federal executive department, military 
department, (Jovemment corporation, independent establishment, 
or executive agency, the United States Postal Service, the Congress, 
the courts of the United States, or the Executive Office of the 
President. Such term does not include— 
(A) motor vehicles held for lease or rental to the general 
public; 
106 STAT. 2872 
PUBLIC LAW 102-486—OCT. 24, 1992 
(B) motor vehicles used for motor vehicle manufacturer 
product evaluations or tests; 
(C) law enforcement vehicles; 
(D) emergency vehicles; 
(E) motor vehicles acquired and used for military purposes 
that the Secretary of Defense has certified to the Secretary 
must be exempt for national security reasons; or 
(F) nonroad vehicles, including farm and construction 
vehicles. 
(c) ALLOCATION OF INCREMENTAL COSTS;—The Greneral Services 
Administration and any other Federal agency that procures motor 
vehicles for distribution to other Federal agencies may allocate 
the incremental cost of alternative fueled vehicles over the cost 
of comparable gasoline vehicles across the entire fleet of motor 
vehicles distributed by such agency. 
(d) APPLICATION OF REQUIREMENTS.—The provisions of section 
400AA of the Energy Policy and Conservation Act relating to the 
Federal acquisition of alternative fueled vehicles shall apply to 
the acquisition of vehicles pursuant to this section. 
(e) RESALE.—^The Administrator of General Services shall take 
all feasible steps to ensure that all alternative fueled vehicles 
sold by the Federal Government shall remain alternative fueled 
vehicles at time of sale. 
(f) AUTHORIZATION OF APPROPRL\TIONS.—^There are authorized 
to be appropriated for canying out this section, such sums as 
may be necessary for fiscal years 1993 through 1998, to remain 
available until expended. 
42 use 13213. 
SEC. 304. REFUEUNG. 
(a) IN GENERAL.—^Federal agencies shall, to the maximum 
extent practicable, arrange for the fueling of alternative fueled 
vehicles acquired under section 303 at commercial fueling facilities 
that offer alternative fuels for sale to the public. If publicly available 
fueling facilities are not convenient or accessible to the location 
of Federal alternative fueled vehicles purchased under section 303, 
Federal agencies are authorized to enter into commercial arrange-
ments for the purposes of fueling Federal alternative fueled vehicles, 
including, as appropriate, purchase, lease, contract, construction, 
or other arrangements in which the Federal Government is a 
participant. 
(b) AUTHORIZATION OF APPROPRIATIONS.—^There are authorized 
to be appropriated to the Secretary for canying out this section 
such sums as maj^ be necessary for fiscal years 1993 through 
1998, to remain available until expended. 
42 use 13214. 
SEC. 305. FEDERAL 
AGENCY 
PROMOTION, 
EDUCATION, 
AND 
COORDINATION. 
(a) PROMOTION AND EDUCATION.—The Secretary, in cooperation 
with the Administrator of Greneral Services, shall promote programs 
and educate officials and employees of Federal agencies on the 
merits of alternative fueled vehicles. The Secretary, in cooperation 
with the Administrator of General Services, shall provide and 
disseminate information to Federal agencies on— 
(1) the location of refueling and maintenance facilities 
available to alternative fueled vehicles in the Federal fleet; 
(2) the range and performance capabilities of alternative 
fueled vehicles; 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2873 
(3) State and local government and commercial alternative 
fueled vehicle programs; 
(4) Federtu alternative fueled vehicle purchases and place-
ments; 
(5) the operation and maintenance of alternative fueled 
vehicles in accordance with the manufacturer's standards and 
recommendations; and 
(6) incentive programs established pursuant to sections 
306 and 307 of this Act. 
(b) ASSISTANCE IN PROCUREMENT AND PLACEMENT.—The Sec-
retary, in cooperation with the Administrator of General Services, 
shall provide guidance, coordination and technical assistance to 
Federal agencies in the procurement and geographic location of 
alternative fueled vehicles purchased through the Administrator 
of General Services. The procurement and geographic location of 
such vehicles shall comply with the purchase requirements under 
section 303 of this Act. 
SEC. 306. AGENCY INCENTIVES PROGRAM. 
42 USC 13215. 
(a) REDUCTION IN RATES.—^To encourage and promote use of 
alternative fueled vehicles in Federal agencies, the Administrator 
of General Services may offer a reduction in fees charged to agencies 
for the lease of alternative fueled vehicles below those fees cnarged 
for the lease of comparable conventionally fueled motor vehicles. 
(b) SUNSET PROVISION.—^This section shall cease to be effective 
3 years after the date of the enactment of this Act. 
SEC. 307. RECOGNITION AND INCENTIVE AWARDS PROGRAM. 
^g USC 13216 
(a) AWARDS PROGRAM.—The Administrator of General Services Establishment. 
shall establish annual awards program to recognize those Federal 
employees who demonstrate the strongest commitment to the use 
of alternative fuels and fuel conservation in Federal motor vehicles. 
(b) CRITERIA.—^The Administrator of General Services shall pro-
vide annual awards to Federal employees who best demonstrate 
a commitment— 
(1) to the success of the Federal alternative fueled vehicle 
program through— 
(A) exemplary promotion of alternative fueled vehicle 
use within Federal agencies; 
/ 
(B) proper alternative fueled vehicle care and mainte-
nance; 
(C) coordination with Federal, State, and local efforts; 
(D) innovative alternative fueled vehicle procurement, 
refueling, and maintenance arrangements with commercial 
entities; 
(E) making regular requests for alternative fueled 
vehicles for agency use; and 
(F) maintaining a high number of alternative fueled 
vehicles used relative to comparable conventionally fueled 
motor vehicles used; and 
(2) to fuel efficiency in Federal motor vehicle use through 
the promotion of such measures as increased use of fuel-efficient 
vehicles, carpooling, ride-sharing, regular maintenance, and 
other conservation and awareness measures. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated for the purpose of carrying out this section 
not more than $35,000 for fiscal year 1994 and such sums as 
may be necessary for each of the fiscal years 1995 and 1996. 
106 STAT. 2874 
PUBLIC LAW 102-486—OCT. 24, 1992 
42 u s e 6374. 
42 use 13218. 
42 use 13217. 
SEC. 308. MEASUREMENT OF ALTERNATIVE FUEL USE. 
The Administrator of General Services shall use such means 
as may be necessary to measure the percentage of alternative 
fuel use in dual-fueled vehicles procured by the Administrator of 
General Services. Not later than one year after the date of the 
enactment of this Act, the Secretary, in consultation with the 
Administrator of Greneral Services, shall issue guidelines to Federal 
agencies for use in measuring the aggregate percentage of alter-
native fuel use in dual-fueled vehicles in their fleets. 
SEC. 309. INFORMATION COLLECTION. 
Section 400AA(b)(l)(A) of the Energy Policy and Conservation 
Act is amended by striking "the vehicles acquired under subsection 
(a)" and inserting in lieu thereof ''a representative sample of alter-
native fueled vehicles in Federal fleets". 
SEC. 310. GENERAL SERVICES ADMINISTRATION REPORT. 
Not later than one year after the date of the enactment of 
this Act, and biennially thereafter, the Administrator of Greneral 
Services shall report to the Congress on the General Services 
Administration's alternative fueled vehicle program under this Act. 
The report shall contain information on— 
(1) the number and type of alternative fueled vehicles 
procured; 
(2) the location of alternative fueled vehicles by standard 
Federal region; 
(3) the total number of alternative fueled vehicles used 
by each Federal agency; 
(4) arrangements with commercial entities for refueling 
and maintenance of alternative fueled vehicles; 
(5) future alternative fueled vehicle procurement and place-
ment strategy; 
(6) the difference in cost between the purchase, mainte-
nance, and operation of alternative fueled vehicles and the 
purchase, maintenance, and operation of comparable conven-
tionally fueled motor vehicles; 
(7) coordination among Federal, State, and local govern-
ments for alternative fueled vehicle procurement and place-
ment; 
(8) the percentage of alternative fuel use in dual-fueled 
vehicles procured by the Administrator of General Services 
as measured under section 308; 
(9) a description of the representative sample of alternative 
fueled vehicles as determined under section 400AA(bXl)(A) of 
the Energy Policy and Conservation Act; and 
(10) award recipients under this title. 
42 use 13219. 
SEC. 311. UNITED STATES POSTAL SERVICE. 
(a) REPORT.—^Not later than one year after the date of the 
enactment of this Act, and biennially thereafter, the Postmaster 
General shall submit a report to the Congress on the Postal Service's 
alternative fueled vehicle program. The report shall contain 
information on— 
(1) the total number and tjrpe of alternative fueled vehicles 
procured prior to the date of the enactment of this Act (first 
report only); 
(2) the number suid tjrpe of alternative fueled vehicles 
procured in the preceding year; 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2875 
(3) the location of alternative fueled vehicles by region; 
(4) arrangements with commercial entities for purposes 
of refueling and maintenance; 
(5) future alternative fiiel procurement and placement 
strategy; 
(6) the difference in cost between the purchase, mainte-
nance, and operation of alternative fueled vehicles and the 
purchase, maintenance, and operation of comparable conven-
tionally fdeled motor vehicles; 
(7) the percentage of alternative fuel use in dual-fueled 
vehicles procured by the Postmaster General; 
(8) promotions and incentives to encourage the use of alter-
native fuels in dual-fueled vehicles; and 
(9) an assessment of the program's relative success and 
policy recommendations for strengthening the program. 
(b) COORDINATION.—^To the maximum extent practicable, the 
Postmaster General shall coordinate the Postal Service's alternative 
fueled vehicle procurement, placement, refueling, and maintenance 
programs with those at the Federal, State, and local level. The 
Postmaster Greneral shall communicate, share, and disseminate, 
on a regular basis, information on such programs with the Sec-
retary, the Administrator of General Services, and heads of appro-
priate Federal agencies. 
(c) PROGRAM CRITERIA.—^The Postmaster General shall consider 
the following criteria in the procurement and placement of alter-
native fueledf vehicles: 
(1) The procurement plans of State and local governments 
and other public and private institutions. 
(2) The current and future availability of refueling and 
repair facilities. 
(3) The reduction in emissions of the Postal fleet. 
(4) Whether the vehicle is to be used in a nonattainment 
area as specified in the Clean Air Act Amendments of 1990. 
(5) The operational requirements of the Postal fleet. 
(6) The contribution to the reduction in the consumption 
of oil in the transportation sector. 
TITLE IV—ALTERNATIVE FUELS—NON-
FEDERAL PROGRAMS 
SEC. 401. TRUCK COMMERCIAL A P P U C A H O N PROGRAM. 
(a) ALTERNATIVE FUELED TRUCKS.—Section 400BB(a) of the 
Energy Policy and Conservation Act (42 U.S.C. 6374a(a)) is amended 
by striking alcohol and natural gas" and inserting in lieu thereof 
"alternative fuels" 
(b) FUNDING.^-Section 400BB(bXl) of such Act (42 U.S.C. 
6374a(bXl)) is amended to read as follows: "(1) There are authorized 
to be appropriated to the Secretary for canying out this section 
such sums as may be necessary for fiscal years 1993 through 
1995, to remain available until expended.". 
SEC. 402. CONFORMING AMENDMENTS. 
Part J of title III of the Energy Policy and Conservation Act 
is amended— 
(1) in section 400CC(a)— 
42 use 6374b. 
106 STAT. 2876 
PUBLIC LAW 102-486—OCT. 24, 1992 
(A) by striking "alcohol and buses capable of operating 
on natural gas" and inserting in lieu thereof "alternative 
fuels"; and 
(B) by striking "both buses capable of operating on 
alcohol and buses capable of operating on natural gas" 
and inserting in lieu thereof "each of the various types 
of 
fl.li^inid.iiiv6 
fiifil uiiSGs"* 
42 use 6374c. 
(2) in Section 400DD(d), by striking "alcohols, natural gas, 
and other potential alternative motor" and inserting in lieu 
thereof "alternative"; and 
(3) in section 400DD(d) and (e), by striking "motor" each 
place it appears. 
SEC. 403. ALTERNATIVE MOTOR FUELS AMENDMENTS. 
Title V of the Motor Vehicle Information and Cost Savings 
Act (15 U.S.C. 2001 et seq.) is amended— 
15 use 2001. 
(1) in section 501(1), by striking "alcohol or natural gas" 
and inserting in lieu thereof "alternative fuel"; 
15 use 2002. 
(2) in section 502(e)— 
(A) by striking "alcohol powered automobiles or natural 
gas powered" and inserting in lieu thereof "dedicated"; 
and 
(B) by striking "energy automobiles and natural gas 
dual energy" and inserting in lieu thereof "fueled"; 
15 use 2006. 
(3) in section 506(a)(4)— 
(A) in subparagraph (A)— 
(i) by striking "alcohol powered automobiles or 
natural gas powered" and inserting in lieu thereof 
"dedicated"; and 
(ii) by striking "alcohol or natural gas, as the case 
may be" and inserting in lieu thereof "alternative 
fuels"; and 
(B) in subparagraph (B)— 
(i) by striking "energy automobiles or natural gas 
dual energy and inserting in lieu thereof "fueled"; 
and 
(ii) by striking "energy automobile or natural gas 
dual energy automobile, as the case may be" and insert-
ing in lieu thereof "fueled automobile"; and 
(4) in section 506(b)(3)— 
(A) in subparagraph (A)— 
(i) by striking "energy automobiles and natural 
gas dual energy" and inserting in lieu thereof "fueled"; 
(ii) by striking "alcohol or natural gas, as the case 
may be" and inserting in lieu thereof "alternative fuels" 
in clause (i); and 
(iii) by striking "alcohol or natural gas, as the 
case may be" and inserting in lieu thereof "alternative 
fuels" in clause (ii); and 
(B) in subparagraph (B)— 
(i) by striking "dual energy" and inserting in lieu 
thereof "dual fueled"; and 
(ii) by striking "alcohol" and inserting in lieu 
° 
thereof "alternative fuels" in clauses (i) and (ii); and 
15 use 2013. 
(5) in section 513— 
(A) in subsection (a)— 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2877 
(i) by striking "ALCOHOL POWERED" and inserting 
in lieu thereof "DEDICATED"; 
(ii) by striking "If* and inserting in lieu thereof 
"Except as provided in subsection (c) or in section 
503(aX3),ir; 
(iii) by striking "alcohol powered" and inserting 
in lieu thereof "dedicated"; 
(iv) by striking "content of the alcohol" and insert-
ing in lieu thereof "content of the alternative fuel"; 
and 
(v) bv striking "gallon of alcohol" and inserting 
in lieu thereof "gallon of a liquid alternative fuel"^ 
(B) in subsection (b)— 
(i) by striking "ENERGY" and inserting in lieu 
thereof "FUELED"; 
(ii) by striking "If* and inserting in lieu thereof 
"Except as provided in subsection (d) or in section 
503(a)(3), iT; 
(iii) by striking "energy^ and inserting in lieu 
thereof "fueled"; and 
(iv) by striking "alcohol" and inserting in lieu 
thereof "alternative fuel" in paragraph (2); 
(C) in subsection (c)— 
(i) by striking 
"NATURAL 
GAS POWERED" 
and 
inserting in lieu thereof "GASEOUS FUEL DEDICATED"; 
(ii) oy striking "powered" and inserting in lieu 
thereof "dedicated"; 
(iii) by striking "natural gas" each place it appears 
in the first sentence and inserting in lieu thereof "gase-
ous fuel"; and 
(iv) by adding at the end the following new sen-
tence: "For purposes of this section, the Secretary shall 
determine the appropriate gallons equivalent measure-
ment for gaseous fuels other than natural gas, and 
a gallon equivalent of such gaseous fuel shall be consid-
ered to have a fuel content of 15 one-himdredths of 
a gallon of fuel."; 
(D) in subsection (d)— 
(i) by striking "NATURAL GAS DUAL ENERGY" and 
inserting in lieu thereof 
"GASEOUS 
FUEL 
DUAL 
FUELED' ; 
(ii) by striking "dual energy" and inserting in lieu 
thereof "dual fueled"; and 
(iii) by striking "natural gas" each place it appears 
and inserting in lieu thereof "gaseous fuel"; 
(E) in subsection (e), by striking "alcohol powered auto-
mobile, dual energy automobile, natural gas powered auto-
mobile, or natural gas dual energy" and inserting in lieu 
thereof "dedicated automobile or dual fiieled"; 
(F) in subsection (fK2)(A)(i), by striking "alcohol pow-
ered automobiles, natural gas powered automobiles," and 
inserting in lieu thereof "alternative fueled automobiles"; 
(G) in subsection (g)— 
(i) in paragraph (1)— 
(1) by inserting ", other than electric auto-
mobiles," after "each category of automobiles" in 
subparagraph (A); 
106 STAT. 2878 
PUBLIC LAW 102-486—OCT. 24, 1992 
(II) by striking "energy automobiles and natu-
ral gas dual ener^r" and inserting in lieu thereof 
''fueled" in subparagraph (A); 
(III) by inserting ", other than electric auto-
mobiles," after "each category of automobiles" in 
subparagraph (B); 
(IV) by striking "energy automobiles and natu-
'"''"' 
ral gas dual ener^ and inserting in.lieu thereof 
"fueled" in subparagraph (B); 
(V) by striking "energy automobiles and natu-
ral gas dual energy" and inserting in lieu thereof 
"fueled" both places it appears in subparagraph 
(C);and 
(VI) by striking "energy automobile or natural 
gas dual energy" and inserting in lieu thereof 
"fueled" in subparagraph (C); and 
(ii) in paragraph (2)— 
(I) by striking "energy passenger automobiles 
or natural gas dual energ3r" and inserting in lieu 
thereof "fueled" in subparagraph (A); 
(II) by striking "alcohol powered automobiles 
or natural gas powered" and inserting in lieu 
thereof "dedicated" in subparagraph (B); and 
(III) by striking "energy automobiles and natu-
ral gas dual energy" and inserting in lieu thereof 
"fueled" in subparagraph (B); 
(H) in subsection (hXl)-— 
(i) by striking subparagraphs (D) and (E) and 
redesignating subparagraph (C) as subparagraph (D); 
(ii) by striking subparagraphs (A) and (B) and 
inserting in lieu thereof the following new subpara-
graphs: 
"(A) the term 'alternative fuel' means methanol, denatiired 
ethanol, and other alcohols; mixtures containing 85 percent 
or more (or such other percentage, but not less than 70 percent, 
as determined by the Secretary, by rule, to provide for require-
ments relating to cold start, safety, or vehicle functions) by 
volume of methanol, denatured ethanol, and other alcohols 
with gasoline or other fuels; natiu'al gas; liquefied petroleum 
gas; hydrogen; coal derived liquid fuels; fuels (other than alco-
hol) derived from biological materials; electricity (including elec-
tricity from solar energy); and any other fuel the Secretary 
determines, by rule, is substantially not petroleum and would 
yield substantial energy security benefits and substantial 
environmentsd benefits; 
"(B) the term 'alternative fueled automobile' means an 
automobile that— 
"(i) is a dedicated automobile; or 
"(ii) is a dual fueled automobile; 
"(C) tlie term 'dedicated automobile' means an automobile 
that operates solely on alternative fuels; and"; and 
(iii) in subparagraph (D), as so redesignated by 
clause (i) of this subparagraph— 
(I) by striking "dual energy" and inserting in 
lieu thereof "dual fueled"; 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2879 
(II) by striking "alcohor and inserting in lieu 
thereof "alternative fuel" in clauses (i), (ii), and 
(iii); 
(III) by inserting "in the case of an automobile 
capable of operating on a mixture of an alternative 
fuel and gasoline or diesel fuel," before "which, 
for model years" in clause (iii); and 
(IV) by striking the semicolon at the end of 
clause (iv) and inserting in lieu thereof a period; 
and 
(I) in subsection (h)(2)— 
(i) by striking "paragraphs (1)(C) and (D)" and 
inserting in lieu thereof "paragraph (1)(D)" in subpara-
graph (A); 
(ii) by striking "energy automobiles when operating 
on alcohol, and by natural gas dual energy automobiles 
when operating on natural gas" and inserting in lieu 
thereof "fueled automobiles when operating on alter-
native fuels" in subparagraph (A); 
(iii) by striking "energy automobiles or natural 
gas dual energy" and inserting in lieu thereof "fueled" 
both places it appears in subparagraph (A); 
(iv) by striking "energy automobiles and natural 
gas dual energ3r" and inserting in lieu thereof "fueled" 
in subparagraph (A); 
(v) by striking "energy" and inserting in lieu 
thereof "fueled" each place it appears in subparagraphs 
(B) and (C); and 
(vi) by inserting "other than electric automobiles" 
after "automobiles" each place it appears in subpara-
graphs (B) and (C). 
SEC. 404. VEHICULAR NATURAL GAS JURISDICTION. 
(a) NATURAL GAS ACT AMENDMENTS.—(1) Section 1 of the Natu-
ral Gas Act (15 U.S.C. 717) is amended by inserting after subsection 
(c) the following new subsection: 
"(d) The provisions of this Act shall not apply to any person 
solely by reason of, or with respect to, any sale or transportation 
ofvenicular natural gas if such person is— 
"(1) not otherwise a natural-gas company; or 
"(2) subject primarily to regulation by a State commission, 
whether or not such State commission has, or is exercising, 
jurisdiction over the sale, sale for resale, or transportation 
of vehicular natural gas.". 
(2) Section 2 of the Natural Gas Act (15 U.S.C. 717a) is 
amended by inserting after paragraph (9) the following new para-
graph: 
"(10) ^Vehicular natural gas' means natural gas that is 
ultimately used as a fuel in a self-propelled vehicle.". 
(b) STATE LAWS AND REGULATIONS.—The transportation or sale 
is use 717 note. 
of natural gas by any person who is not otherwise a public utility, 
within the meaning of State law— 
(1) in closed containers; or 
(2) otherwise to any person for use by such person as 
a fuel in a self-propelled vehicle, 
shall not be considered to be a transportation or sale of natural 
gas within the meaning of any State law, regulation, or order 
106 STAT. 2880 
PUBLIC LAW 102-486—OCT. 24, 1992 
in effect before January 1, 1989. This subsection shall not apply 
to any provision of any State law, regulation, or order to the 
extent that such provision has as its primary purpose the protection 
of public safety. 
15 use 79b note. 
(c) NONAPPLICABILITY OF THE PUBLIC UTILITY HOLDING COM-
PANY ACT OF 1935.—(1) A company shall not be considered to 
be a gas utility company imder section 2(aX4) of the Public Utility 
Holding Company Act of 1935 (15 U.S.C. 79b(aX4)) solely because 
it owns or operates facilities used for the distribution at retail 
of vehicular natural gas. 
(2) Notwithstanding section ll(bXl) of the Public Utility Hold-
ing Company Act of 1935 (15 U.S.C. 79k(bXl)), a holding company 
registered under such Act solely by reason of the application of 
section 2(aX7) (A) or (B) of such Act with respect to control of 
a gas utility company or subsidiary thereof, may acquire or retain, 
in any geographic area, any interest in a company that is not 
a public utility company and which, as a primary business, is 
involved in the sale of vehicular natural gas or the manufacture, 
sale, transport, installation, servicing, or financing of equipment 
related to the sale for consumption of vehicular natural gas. 
(3) The sale or transportation of vehicular natiu-al gas bv a 
company, or any subsidiary of such company, shall not be taken 
into consideration in determining whether under section 3 of the 
Public Utihty Holding Company Act of 1935 (15 U.S.C. 79c) such 
company is exempt from registration. 
(4) For purposes of this subsection, terms that are defined 
imder the Public Utility Holding Company Act of 1935 shall have 
the meaning given such terms in such Act. 
(5) For purposes of this subsection, the term 'Vehicular natural 
gas" means natural or manufactured gas that is ultimately used 
as a fuel in a self-propelled vehicle. 
42 use 13231. 
SEC. 405. PUBLIC INFORMATION PROGRAM. 
The Secretary, in consultation with appropriate Federal agen-
cies and individuals and organizations with practical experience 
in the production and use of alternative fuels and alternative fueled 
vehicles, shall, for the purposes of promoting the use of alternative 
fuels and alternative fueled vehicles, establish a public information 
program on the benefits and costs of the use of alternative fuels 
m motor vehicles. Within 18 months after the date of enactment 
of this Act, the Secretary shall produce and make available an 
information package for consumers to assist them in choosing 
among alternative fuels and alternative fueled vehicles. Such 
information package shall provide relevant and objective informa-
tion on motor vehicle characteristics and fuel characteristics as 
conmared to gasoline, on a life cvcle basis, including environmental 
performance, energy efficiency, domestic content, cost, maintenance 
requirements, reliability, and safety. Such information package 
shall also include information with respect to the conversion of 
conventional motor vehicles to alternative fueled vehicles. The Sec-
retary shall include such other information as the Secretary deter-
mines is reasonable and necessary to help promote the use of 
alternative fiiels in motor vehicles. Such information package shall 
be updated annually to reflect the most recent available information. 
42 use 13232. 
SEC. 406. LABELING REQUIREMENTS. 
(a) ESTABUSHMENT OF REQUIREMENTS.—The Federal Trade 
Comimission, in consultation with the Secretary, the Administrator 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2881 
of the Environmental Protection Agency, and the Secretary of 
Transportation, shall, within 18 months after the date of enactment 
of this Act, issue a notice of proposed rulemaking for a rule to 
establish uniform labeling requirements, to the greatest extent prac-
ticable, for alternative fuels and alternative fueled vehicles, includ-
ing requirements for appropriate information with respect to costs 
and benefits, so as to reasonably enable the consumer to make 
choices and comparisons. Required labeling under the rule shall 
be simple and, where appropriate, consolidated with other labels 
providing information to the consumer. In formulating the rule, 
the Federal Trade Commission shall give consideration to the prob-
lems associated with developing and publishing useful and timely 
cost and benefit information, taking into account lead time, costs, 
the frequency of changes in costs and benefits that may occur, 
and other relevant factors. The Commission shall obtain the views 
of affected industries, consumer organizations. Federal and State 
agencies, and others in formulating the rule. A final rule shall Regulations. 
be issued within 1 year after the notice of proposed rulemaking 
is issued. Such rule shall be updated periodically to reflect the 
most recent available information. 
(b) TECHNICAL ASSISTANCE AND COORDINATION.—The Secretary 
shall provide technical assistance to the Federal Trade Commission 
in developing labeling requirements under subsection (a). The Sec-
retary shall coordinate activities under this section with activities 
imder section 405. 
SEC. 407. DATA ACQUISITION PROGRAM. 
42 USC 13233. 
(a) Not later than one year after the date of enactment of 
this Act, the Secretary, through the Energy Information Administra-
tion, and in cooperation with appropriate State, regional, and local 
authorities, shall establish a data collection program to be conducted 
in at least 5 geographically and climatically diverse regions of 
the United States for the purpose of collecting data which would 
be useful to persons seeking to manufacture, convert, sell, own, 
or operate alternative fueled vehicles or alternative fueling facilities. 
Such data shall include— 
(1) identification of the number and types of motor vehicle 
trips made daily and miles driven per trip, including commut-
ing, business, and recreational trips; 
(2) the projections of the Secretary as to the most likely 
combination of alternative fueled vehicle use and other forms 
of transit, including rail and other forms of mass transit; 
(3) cost, performance, environmental, energy, and safety 
data on alternative fuels and alternative fueled vehicles; and 
(4) 
other 
appropriate 
demographic 
information 
and 
consimier preferences. 
(b) The Secretary shall consult with interested parties, includ-
ing other appropriate Federal agencies, manufacturers, public utili-
ties, owners and operators of fleets of light duty motor vehicles, 
and State or local governmental entities, to determine the types 
of data to be collected and analyzed under subsection (a). 
SEC. 408. FEDERAL ENERGY REGULATORY COMMISSION AUTHORITY 42 USC 13234. 
TO APPROVE: RECOVERY OF CERTAIN EXPENSES IN 
ADVANCE. 
(a) NATURAL GAS MOTOR VEHICLES.—The Federal Energy Regu-
latory Commission may, under section 4 of the Natural Gas Act, 
allow recovery of expenses in advance by natural-gas companies 
106 STAT. 2882 
PUBLIC LAW 102-486—OCT. 24, 1992 
15 use 717c 
note. 
42 use 13235. 
R^ulations. 
for research, development, and demonstration activities by the Gas 
Research Institute for projects on the use of natural gas, including 
fuels derived from natural gas, for transportation, and projects 
on the use of natural gas to control pollutants and to control 
emissions from the combustion of other fuels, if the Commission 
finds that the benefits, including environmental benefits, to existing 
and future ratepayers resulting from such activities exceed all 
direct costs to existing and future ratepayers. To the maximum 
extent practicable, through the establishment of cofunding require-
ments applicable to such projects, the Conmiission shall ensure 
that the costs of such activities shall be provided in part, through 
contributions of cash, personnel, services, equipment, and other 
resources, by sources other than the recovery of expenses pursuant 
to this section. 
(b) ELECTRIC MOTOR VEHICLES.—The Federal Energy Regu-
latory Commission mav, under section 205 of the Federal Power 
Act, allow recovery of expenses in advance by electric utilities 
for research, development, and demonstration activities by the Elec-
tric Power Research Institute for projects on electric motor vehicles, 
if the Commission finds that the benefits, including environmental 
benefits, to existing and future ratepayers resulting from such 
activities exceed all direct costs to existing and future ratepayers. 
To the maximum extent practicable, through the establishment 
of cofiuiding requirements applicable to each project, the costs of 
such activities shall be provided, in part, through contributions 
of cash, personnel, services, equipment, and other resources, by 
sources other than the recovery of expenses pursuant to this section. 
(c) REPEAL.—^The second paragraph of the matter under the 
heading "FEDERAL ENERGY REGULATORY COMMISSION, SALARIES AND 
EXPENSES" in title III of the Energy and Water Development Appro-
priations Act, 1992, is repealed. 
SEC. 409. STATE AND LOCAL INCENTIVES PROGRAMS. 
(a) ESTABLISHMENT OF PROGRAM.—(1) The Secretary shall, 
within one year after the date of enactment of this Act, issue 
regulations establishing |^idelines for comprehensive State alter-
native fuels and alternative fueled vehicle incentives and program 
plans designed to accelerate the introduction and use of such fuels 
and vehicles. Such guideline shall address the development, modi-
fication, and implementation of such State plans and shall describe 
those program elements, as described in paragraph (3), to be 
addressed in such plans. 
(2) The Secretary, after consultation with the Secretary of 
Transportation and the Administrator of the Environmental Protec-
tion Agency, shall invite the Governor of each State to submit 
to the Secretary a State plan within one year after the effective 
date of the regulations issued under paragraph (1). Such plan 
shall include— 
(A) provisions designed to result in scheduled progress 
toward, and achievement of, the goal of introducing substantial 
numbers of alternative fueled vehicles in such State by the 
year 2000; and 
(B) a detailed description of the requirements, including 
the estimated cost of implementation, of such plan. 
(3) Each proposed State plan, in order to be eligible for Federal 
assistance imder this section, shall describe the manner in which 
coordination shall be achieved with Federal and local governmental 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2883 
entities in implementing such plan, and shall include an examina-
tion o
f
— 
(A) exemption from State sales tax or other State or local 
taxes or surcharges (other than such taxes or surcharges which 
are dedicated for transportation puiposes) with respect to alter-
native fueled vehicles, alternative fuels, or alternative fueling 
facilities; 
(B) the introduction of alternative fueled vehicles into 
State-owned or operated motor vehicle fleets; 
(C) special parking at public buildings and airport and 
transportation facilities; 
(D) programs of public education to promote the use of 
alternative meled vehicles; 
(E) the treatment of sales of alternative fuels for use in 
alternative fueled vehicles; 
(F) methods by which State and local governments might 
facilitate— 
(i) the availability of alternative fuels; and 
(ii) the ability to recharge electric motor vehicles at 
public locations; 
(G) allowing public utilities to include in rates the 
incremental cost of— 
(i) new alternative fueled vehicles; 
(ii) converting conventional vehicles to operate on alter-
native fuels; and 
(iii) installing alternative fuel fueling facilities, 
but only to the extent that the inclusion of such costs in 
rates would not create competitive disadvantages for other mar-
ket participants, and taking into consideration the effect inclu-
sion of sucn costs would have on rates, service, and reliability 
to other utility customers; 
(H) such other programs and incentives as the Stete may 
describe; 
(I) whether accomplishing any of the goals in this sub-
section would require amendment to State law or regulation, 
including traffic safety prohibitions; 
(J) services provided by municipal, coimty, and regional 
transit authorities; and 
(K) effects of such plan on programs authorized by the 
Intermodal Surface Transportetion Efficiency Act of 1991 and 
amendments made by that Act. 
(b) FEDERAL ASSISTANCE TO STATES.—(1) Upon reauest of the 
Governor of any Stote with a plan approved under this section, 
the Secretary may provide to such Stet^~ 
(A) information and technical assistance, including model 
State laws and proposed regulations relating to alternative 
fueled vehicles; 
(B) grants of Federal financial assistance for the purpose 
of assisting such Stete in the implementetion of such plan 
or any part thereof; and 
(C) grante of Federal financial assistance for the acquisition 
of alternative fueled vehicles. 
(2) In determining whether to approve a Stete plan submitted 
under subsection (a), and in determming the amount of Federal 
financial assistance, if any, to be provided to any Stote under 
this subsection, the Secretary shall take into account— 
106 STAT. 2884 
PUBLIC LAW 102-486—OCT. 24, 1992 
(A) the energy-related and environmental-related impacts, 
on a life cycle basis, of the introduction and use of eiltemative 
fueled vemcles included in the plan compared to conventional 
motor vehicles; 
(B) the number of alternative fueled vehicles likely to be 
introduced by the year 2000, as a result of successful 
implementation of the plan; and 
(C) such other factors as the Secretary considers appro-
priate. 
(3) The Secretary, in consultation with the Administrator of 
General Services, shall provide assistance to States in procuring 
alternative fueled vehicles, including coordination with Federal 
procurements of such vehicles. 
(4) The Secretary may not approve a State plan submitted 
under subsection (a) unless the State agrees to provide at least 
20 percent of the cost of activities for which assistance is provided 
under paragraph (1). 
(c) GENERAL PROVISIONS.—(1) In carrying out this section, the 
Secretary shall consult with the Secretary of Transportation on 
matters relating to transportation and with other appropriate Fed-
eral and State departments and agencies. 
Reports. 
(2) The Secretary shall report annually to the President and 
the Congress, and shall furnish copies of such report to the Governor 
of each State participating in the program, on the operation of 
the program under this section. Such report shall include— 
(A) an estimate of the number of alternative fueled vehicles 
in use in each State; 
(B) the degree of each State's participation in the program; 
(C) a description of Federal, State, and local programs 
imdertaken in the various States, whether pursuant to a State 
plan under this section or not, to provide incentives for introduc-
tion of alternative fueled vehicles; 
(D) an estimate of the energy and environmental benefits 
oftheprogram; and 
(E) the recommendations of the Secretary, if any, for addi-
tional action by the Federal Government. 
(d) DEFINITIONS.—For the purposes of this section, the following 
definitions apply: 
(1) GOVERNOR.—^The term "Governor" means the chief 
executive of a Stete. 
(2) STATE.—^The term "State" means each of the several 
Stetes, the District of Columbia, the Commonwealth of Puerto 
Rico, the United Stetes Virdn Islands, Guam, American Samoa, 
the Commonwealth of the Northern Mariana Islands, and any 
other Commonwealth, territory, or possession of the United 
Stetes. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated for carr3dng out this section, $10,000,000 for 
each of the 5 fiscal years beginning after the date of enactment 
of this Act. 
42 use 13236. 
SEC. 410. ALTERNATIVE FUEL BUS PROGRAM. 
(a) COOPERATIVE AGREEMENTS AND JOINT VENTURES.—(1) The 
Secretary of Transportetion, in consultetion with the Secretory, 
may enter into cooperative agreemente and joint ventiu'es proposed 
by any municipal, county, or regional transit authority in an urban 
area with a popi:Qation over 100,000 (according to latest available 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2885 
census information) to demonstrate the feasibility of commercial 
application, includiiig safety of specific vehicle design, of using 
alternative fuels for urban buses and other motor vehicles used 
for mass transit. 
(2) The cooperative agreements and joint ventures under para-
graph (1) may include interested or affected private firms willing 
to provide assistance in cash, or in kind, for any such demonstration. 
(3) Federsd assistance provided under cooperative agreements 
and joint ventures entered into under paragraph (1) to demonstrate 
tiie feasibility of commercial application of using alternative fuels 
for urban buses shall be in addition to Federal assistance provided 
under any other law for such purpose. 
(b) LIMITATIONS.—(1) The Secretary of Transportation may not 
enter into cooperative agreement or joint ventiire under subsection 
(a) with any municipal, county, or regional transit authority, unless 
such government body agrees to provide 20 percent of tiie costs 
of such demonstration. 
(2) The Secretary of Transportation may grant such priority 
under this section to any entity that demonstrates that the use 
of alternative fuels for transportetion would have a significant 
beneficial effect on the environment. 
(c) SCHOOL BUSES.—^The Secretory of Transportetion may also 
provide, in accordance with such rules as he may prescribe, financial 
assistance to any agency, municipaUty, or political subdivision in 
an urban area referred to in subsection (a), of any Stete or the 
District of Columbia for the purpose of meeting the incremental 
coste of school buses that are dedicated vehicles and used regularly 
for such transportetion during the school term. Such costs may 
include the purchase and installation of alternative fuel refueling 
facilities to be used for school bus refueling, and the conversion 
of school buses to dedicated vehicles. The l^retary of Transpor-
tetion may provide such assistance directly to a person who is 
a contractor of such agency, municipality, or political subdivision, 
upon the request of the agency, municipalityr, or political subdivi-
sion, and who, under such contract, provides for sucn transportetion. 
Any conversion under this subsection shall comply with the war-
ranty and safety requiremente for alternative fuel conversions con-
tained in section 247 of the Clean Air Act Amendmente of 1990. 
(d) FUNDING AUTHORIZATION.—There are authorized to be 
appropriated not more than $30,000,000 for each of the fiscal years 
1993,1994, and 1995 for purposes of this section. 
SEC. 411. CERTIFICATION OF TRAINING PROGRAMS. 
42 USC 13237. 
The Secretary shall ensure that the Federal Government esteb-
lishes and carries out a program for the certification of training 
programs for technicians who are responsible for motor vehicle 
installation of equipment that converte gasoline or diesel-fueled 
motor vehicles into dedicated vehicles or dual fueled vehicles, and 
for the maintenance of such converted motor vehicles. A training 
program shall not be certified under the program esteblished under 
this section unless it provides technicians with instruction on the 
proper and safe installation procedures and techniques, adherence 
to specifications (including original equipment manufacturer speci-
fications), motor vehicle operating procedures, emissions testing, 
and other appropriate mechanical concerns applicable to these 
motor vehicle conversions. The Secretary shall ensure that, in the 
development of the program required under this section, original 
106 STAT. 2886 
PUBLIC LAW 102-486—OCT. 24, 1992 
equipment manufacturers, fuel suppliers, companies that convert 
conventional vehicles to use alternative fuels, and oUier affected 
persons are consulted. 
42 use 13238. 
SEC. 412. ALTERNATIVE FUEL USE IN NONROAD VEHICLES AND 
ENGINES. 
(a) NoNROAD VEHICLES AND ENGINES.—(1) The Secretary shall 
conduct a study to determine whether the use of alternative fuels 
in nonroad venicles and engines would contribute substantiallv 
to reduced reliance on impoilted energy sources. Such study shall 
be completed, and the results thereof reported to Congress, within 
2 years after the date of enactment of this Act. 
(2) The study shall assess tiie potential of nonroad vehicles 
and engines to run on alternative fuels. Taking into account tiie 
nonroad vehicles and engines for which runmng on alternative 
fuels is feasible, the study shall assess the potential reduction 
in reliance on foreign energy sources that could be achieved if 
such vehicles were to run on alternative fuels. 
(3) The report reauired imder paragraph (1) ma^ include the 
Secretary's recommendations for encouraging or reauiring nonroad 
vehicles and engines which can feasibly be run on lutemative fuels, 
to utilize such altemative fuels. 
(b) DEFINITION OF NONROAD VEHICLES AND ENGINES.—Nonroad 
vehicles and engines, for purposes of this section, shall include 
nonroad vehicles and engines used for surface transportation or 
principally for industrial or commercial purposes, vehicles used 
for rail transportation, vehicles used at airports, vehicles or engines 
used for marine purposes, and other venicles or engines at the 
discretion of the Secretary. 
(c) DESIGNATION.—^upon completion of the study required 
pursuant to subsection (a) of this section, the Secretary may des-
ignate such vehicles and engines as qualifying for loans pursuant 
to section 414 of this title. 
SEC. 413. REPORTS TO CONGRESS. 
Within 6 months after the date of enactment of this Act, the 
Secretary shall— 
(1) identify and report to Congress on purchasing policies 
of the Federal Government which inhibit or prevent the pur-
chase by the Federal Government of altemative fueled vehicles; 
and 
(2) report to Congress on Federal, Stete, and local traffic 
control measures and policies and how the use of altemative 
fueled vehicles could be promoted by granting sudi vehicles 
exemptions or preferential treatment under such measures. 
42 use 13239. 
SEC. 414. LOW INTEREST LOAN PROGRABf. 
(a) ESTABLISHMENT.—Within 1 year after the date of enactment 
of this Act, the Secretary shall esteblish a program for making 
low interest loans, giving preference to small Dusinesses that own 
or operate fleete, for— 
(1) the conversion of motor vehicles to operation on alter-
native fuels; 
(2) covering the incremental costo of the purchase of motor 
vehicles which operate on altemative fuels, when compared 
with purchase costo of comparable conventionally fueled motor 
vdiicle8;or 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2887 
(3) covering the incremental costs of purchase of non-road 
vehicles and engines designated by the Secretary pursuant 
to section 412(c) of this title. 
(b) LOAN TERMS.—^The Secretary, to the extent practicable, 
shsdl establish reasonable terms for loans made under this sub-
section, with preference given to repayment schedules that enable 
such loans to be repaid by the borrower from the cost difiTerential 
between gasoline and the alternative fuel on which the motor vehicle 
operates. 
(c) CRITERIA.—^In deciding to whom loans shall be made under 
this subsection, the Secretary shall consider— 
(1) the financial need of the applicant; 
(2) the goal of assisting the greatest nimiber of applicants; 
\ and 
(3) the ability of an applicant to repay the loan, taking 
into account the fuel cost savings likely to accrue to the 
applicant. 
(d) PMORITIES.—^Priority shall be given under this section to 
fleets where the use of alternative fuels would have a significant 
beneficial effect on energy security and the environment. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretary for canying out this section, 
$25,000,000 for each of the fiscal years 1993, 1994, and 1995. 
TITLE V—AVAILABILITY AND USE OF 
REPLACEMENT FUELS, ALTERNATIVE 
FUELS, AND ALTERNATIVE FUELED 
PRIVATE VEHICLES 
SEC. 501. MANDATE FOR ALTERNATIVE FUEL PROVIDERS. 
42 USC 13251. 
(a) IN GENERAL.—(1) The Secretary shall, before January 1, Regulations. 
1994, issue regulations requiring that of the new light duty motor 
vehicles acquired by a covered person described in paragraph (2), 
the following percentages shall be alternative fueled vehicles for 
the following model years: 
(A) 30 percent for model year 1996. 
(B) 50 percent for model year 1997. 
(C) 70 percent for model year 1998. 
(D) 90 percent for model year 1999 and thereafter. 
(2) For purposes of this section, a person referred to in para-
graph (1)is— 
(A) a covered person whose principal business is producing, 
storing, refining, processing, transporting, distributing, import-
ing, or selling at wholesale or retail any alternative fuel other 
than electricity; 
(B) a non-Federal covered person whose principal business 
is generating, transmitting, importing, or selling at wholesale 
or retail electricity; or 
(C) a covered person— 
(i) who produces, imports, or produces and imports 
in combination, an average of 50,000 barrels per day or 
more of petroleimi; and 
(ii) a substantial portion of whose business is producing 
alternative fuels. 
106 STAT. 2888 
PUBLIC LAW 102-486—OCT. 24, 1992 
(3XA) In the case of a covered person described in paragraph 
(2) wiUi more than one afiBliate, division, or other business unit, 
only an afiSIiate, division, or business unit which is substantially 
engaged in the alternative fuels business (as determined by the 
Seoretaiy by rule) shall be subject to this subsection. 
(B) No covered person or afiBIiatej division, or other business 
unit of such person whose principal business is— 
(i) transforming alternative fuels into a product that is 
not an alternative fuel; or 
(ii) consuming alternative fuels as a feedstock or fuel in 
the manufacture of a product that is not an alternative fuel, 
shall be subject to this subsection. 
(4) The vehicles purchased pursuant to this section shall be 
operated solely on alternative fuels except when operating in an 
area where the appropriate alternative fuel is unavailable. 
(5) Regulations issued under paragraph (1) shall provide for 
the prompt exemption by the Secretuy, through a simple and 
reasonable process, from the requirements of paragraph (1) of any 
covered person, in whole or in part, if such person demonstrates 
to the satisfaction of the Secretary that— 
(A) alternative fueled vehicles that meet the normal 
requirements and practices of the principal business of that 
person are not reasonably available for acquisition; or 
(B) alternative fuels that meet the normal requirements 
and practices of the principal business of that person are not 
available in the area in which the vehicles are to be operated, 
(b) REVISIONS AND EXTENSIONS.—With respect to model years 
1997 and thereafter, the Secretary may— 
(1) revise the percentage requirements under subsection 
(aXD downward, except that under no circumstances shall the 
percentile requirement for a model year be less than 20 per-
cent; and 
(2) extend the time under subsection (aXD for up to 2 
model years. 
Regulations. 
(c) O
P
T
I
O
N F
O
R E
L
E
C
T
R
I
C UTILITIES.—The Secretary shall, 
within 1 ^ear after the date of enactment of this Act, issue regula-
tions requiring that, in the case of a covered person whose principal 
business is generating, transmitting, importing, or selling at whole-
sale or retul electricity, the requirements of subsection (aXD shall 
not apply until after December 31, 1997, with respect to electric 
motor vehicles. Any covered person described in this subsection 
which plans to acquire electric motor vehicles to comply with the 
requirements of this section shall so notify the Secretary before 
January 1,1996. 
(d) REPORT TO CONGRESS.—The Secretary shall, before January 
1,1998, submit a report to the Congress providing detailed informa-
tion on actions taken to carry out this section, and the progress 
made and problems encountered thereunder. 
42 use 13252. 
SEC. 502. REPLACEMENT FUEL SUPPLY AND DEMAND PROGRAM. 
(a) ESTABLISHMENT OF PROGRAM.—The Secretary shall estab-
lish a pro-am to promote the development and use in light dutv 
motor vehicles of oomestic replacement fuels. Such program shall 
promote the replacement of petroleum motor fuels wim replacement 
mels to the maximum extent practicable. Such program shall, to 
the extent practicable, ensure tne availability of ^ose replacement 
fuels that will have the greatest impact in reducing oil imports, 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2889 
improving the health of our Nation's economy and reducing green-
house gas emissions. 
(b) DEVELOPMENT PLAN AND PRODUCTION GOALS.—Under the 
program established under subsection (a), the Secretary, before 
October 1, 1993, in consultation with the Administrator, the Sec-
retary of Transportation, the Secretary of Agriculture, the Secretary 
of Commerce, and the heads of other appropriate agencies, shall 
review appropriate information and— 
(1) estimate the domestic and nondomestic production 
capacity for replacement fuels and alternative fueled vehicles 
needed to implement this section; 
(2) determine the technicsd and economic feasibility of 
achieving the goals of producing sufficient replacement fuels 
to replace, on an energy equivalent basis— 
(A) at least 10 percent by the year 2000; and 
(B) at least 30 percent by the year 2010, 
of the projected consumption of motor fuel in the United States 
for each such year, with at least one half of such replacement 
fuels being domestic fuels; 
(3) determine the most suitable means and methods of 
developing and encouraging the production, distribution, and 
use of replacement fuels and alternative fueled vehicles in 
a manner that would meet the program goals described in 
subsection (a); 
(4) identify ways to encourage the development of reliable 
replacement fuels and alternative fueled vehicle industries in 
the United States, and the technical, economic, and institutional 
barriers to such development; and 
(5) determine the greenhouse gas emission implications 
of increasing the use of replacement fuels, including an estimate 
of the maximum feasible reduction in such emissions from 
the use of replacement fuels. 
The Secretary shall publish in the Federal Register the results Federal 
of actions taken under this subsection, and provide for an oppor- ^hif<^flr 
timity for public comment. 
publication. 
SEC. 503. REPLACEMENT FUEL DEMAND ESTIMATES AND SUPPLY 42 USC 13253. 
INFORMATION. 
(a) ESTIMATES.—Not later than October 1, 1993, and annually 
thereafter, the Secretary, in consultation with the Administrator, 
the Secretary of Transportation, and other appropriate State and 
Federal officials, shall estimate for the following calendar year— 
(1) the number of each type of alternative fueled vehicle 
likely to be in use in the United States; 
(2) the probable geographic distribution of such vehicles; 
(3) the amount and distribution of each type of replacement 
fuel; and 
(4) the greenhouse gas emissions likely to result from 
replacement fuel use. 
(b) INFORMATION.—Beginning on October 1,1994, the Secretary 
shall annually require— 
(1) fuel suppliers to report to the Secretary on the amount 
of each type of replacement fuel that such suppUer— 
(A) has supplied in the previous calendar year; and 
(B) plans to supply for the following calendar year; 
106 STAT. 2890 
PUBLIC LAW 102-486—OCT. 24, 1992 
Federal 
Register, 
publication. 
(2) suppliers of alternative fueled vehicles to report to 
the Secretary on the number of each type of alternative fueled 
vehicle that such supplier— 
(A) has made available in the previous calendar year; 
and 
(B) plans to make available for the following calendar 
year; and 
(3) such fuel suppliers to provide the Secretary information 
necessary to determine the greenhouse gas emissions from the 
replacement fuels used, taking into account the entire fuel 
cycle. 
(c) PROTECTION OP INFORMATION.—Information provided to the 
Secretary under subsection (b) shall be subject to applicable provi-
sions of law protecting the confidentiality of trade secrets and 
business and financial information, including section 1905 of title 
18, United States Code. 
42 USE 13254. 
SEC. 504. MODIFICATION OF GOALS; ADDITIONAL RULEMAKING 
AUTHORITY. 
(a) EXAMINATION OF GOALS.—Within 3 years after the date 
of enactment of this Act, and periodically thereafter, the Secretary 
shall examine the goals established under section 502(bX2), in 
the context of the program goals stated under section 502(a), to 
determine if the goals under section 502(bX2), including the 
applicable percentage requirements and dates, should be modified 
under this section. The Secretary shall publish in the Federal 
Register the results of each examination under this subsection 
and provide an opportimity for public comment. 
(b) MODIFICATION OF GOALS.—If, after analysis of information 
obtained in connection with carrying out subsection (a) or section 
502, or other information, and taking into account the determination 
of technical and economic feasibility made under section 502(bX2), 
the Secretary determines that goals described in section 502(bX2), 
including the percentage requirements or dates, are not achievable, 
the Secretary, in consultation with appropriate Federal agencies, 
shall, by rule, establish goals that are achievable, for purposes 
of this title. The modification of goals under this section may 
include changing the target dates specified in section 502(bX2). 
(c) ADDITIONAL RULEMAKING AUTHORITY.—If the Secretary 
determines that the achievement of goals described in section 
502(bX2) would result in a significant and correctable failure to 
meet the program goals described in section 502(a), the Secretary 
shall issue such additional regulations as are necessary to remedy 
such failure. The Secretary shall have no authority under this 
Act to mandate the production of alternative fueled vehicles or 
to specify, as applicable, the models, lines, or types of, or marketing 
or pricing practices, policies, or strategies for, vehicles subject to 
this Act. Nothing in this Act shall be construed to give the Secretary 
authority to mandate marketing or pricing practices, policies, or 
strategies for alternative fuels or to mandate the production or 
delivery of such fuels. 
42USC13255. 
SEC. 505. VOLUNTARY SUPPLY COMMITMENTS. 
The Secretary shall, by January 1,1994, and thereafter, under-
take to obtain voluntary commitments in geographically diverse 
regions of the United States— 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2891 
(1) from fuel suppliers to make available to the public 
replacement fuels, including providing for the construction or 
availability of related fuel d^ivery systems; 
(2) from owners of 10 or more motor vehicles to acquire 
and use alternative fueled vehicles and alternative fuels; and 
(3) from suppliers of alternative fueled vehicles to make 
available to the public alternative fueled vehicles and to ensure 
the availability of necessary related services, 
in sufficient volume to achieve the goals described in section 
502(bX2) or as modified under section 504, and in order to meet 
any fleet requirement program established by rule under this title. 
The Secreti^ shall periodically report to the Congress on the 
results of efirorts under this section. All volimtary commitments 
obtained pursuant to this section shall be available to the public, 
except to the extent provided in applicable provisions of law protect-
ing the confidentiality of trade secrets and business and financial 
information, including section 1905 of title 18, United States Code. 
SEC. 600. TECHNICAL AND POUCY ANALYSIS 
(a) REQUIREMENT.—Not later than March 1, 1995, and March 
1, 1997, the Secretary shall prepare and transmit to the President 
and the Congress a technical and poUcy analysis under this section. 
The Secretary shall utilize the analytical capability and authorities 
of the Energy Information Administration and such other offices 
of the Department of Energy as the Secretary considers appropriate. 
(b) PURPOSES.—^The technical and policy analysis prepared 
under this section shall be based on the best available data and 
information obtainable by the Secretary under section 503, or other-
wise, and on experience under this Utle and otiier provisions of 
law in the development and use of replacement fuels and alternative 
fueled vehicles, and shall evaluate— 
(1) progress made in achieving the goals described in sec-
tion 502(bX2), as modified under section 504; 
(2) the actual and potential role of replacement fuels and 
alternative fueled vehicles in significantly reducing United 
States reUance on imported oil to the extent of uie goals 
referred to in paragraph (1); and 
(3) the actual and potential availability of various domestic 
replacement fuels and dedicated vehicles and dual fueled 
venicles. 
(c) PUBLICATION.—^The Secretary shall publish a proposed ver-
sion of each analysis under this section in the Federal Register 
for public comment before transmittal to the President and the 
Congress. Public comment received in response to such publication 
shall be preserved for use in rulemaking proceedings under section 
507. 
SEC. 507. F L E E T REQUIBEIMENT PROGRABf. 
(a) FLEET PROGRAM PURCHASE GOALS.—(1) Except as provided 
in paragraph (2), the following percentages of new light duty motor 
vehicles acquired in each model year for a fieet, other than a 
Federal fleet. State fleet, or fleet owned, operated, leased, or other-
wise controlled bv a covered person subject to section 501, shall 
be alternative fueled vehicles: 
(A) 20 percent of the motor vehicles acquired in model 
years 1999, 2000, and 2001; 
(B) 30 percent of the motor vehicles acquired in model 
year 2002; 
42 use 13256. 
Federal 
Register, 
publication. 
42 u s e 13257. 
106 STAT. 2892 
PUBLIC LAW 102-486—OCT. 24, 1992 
Regulations. 
Federal 
Register, 
publication. 
' 
(C) 40 percent of the motor vehicles acquired in model 
year 2003; 
(D) 50 percent of the motor vehicles acquired in model 
year 2004; 
(E) 60 percent of the motor vehicles acquired in model 
year 2005; and 
(F) 70 percent of the motor vehicles acquired in model 
year 2006 and thereafter. 
(2) The Secretary may not establish percentage requirements 
higher than those described in paragraph (1). The Secretary may, 
if appropriate, and pursuant to a rule imder subsection (b), establish 
a lesser percentage requirement for any model year. The Secretary 
may, by rule, establish a date later than 1998 (or model year 
1999) ror initiating the fleet requirements under paragraph (1). 
(3) The Secretary shall publish an advance notice of proposed 
rulemaking for the purpose o
f
— 
(A) evaluating the progress toward achieving the goals 
of replacement fuel use described in section 502(bX2), as modi-
fied under section 504; 
(B) identifying the problems associated with achieving 
thosegoals; 
(C) assessing the adequacy and practicability of those goals; 
and 
(D) considering all actions needed to achieve those goals. 
The Secretary shall provide for at least 3 regional hearings on 
the advance notice o
f
^ proposed rulemaking, with respect to which 
official transcripts shall be maintained. 'The comment period in 
connection with such advance notice of proposed rulemeiking shall 
be completed within 7 months after publication of the advance 
notice. 
(4) After the completion of such advance notice of proposed 
rulemaking, the Secretary shall publish in the Federal Register 
a proposea rule for the rule required imder subsection (b), and 
shall provide for a public comment period, with hearings, of not 
less than 90 days. 
(b) EARLY RULEMAKING.—(1) Not earlier than 1 year after the 
date of the enactment of this Act, and after carrying out the require-
ments of subsection (a), the Secretary shall initiate a rulemaking 
to determine whether a fleet requirement program to begin in 
calendar year 1998 (when model year 1999 be^ns), or such other 
later date as he may select pursuant to subsection (a), is necessary 
under this section. Such nile, consistent with subsection (aXl), 
shall establish the annual applicable model year percentage. No 
rule under this subsection may be promulgated after December 
15, 1996, and be enforceable. A fleet requirement program shall 
be considered necessary and a rule therefor shall be promulgated 
if the Secretary finds that— 
(A) the goal of replacement fuel use described in section 
502(bX2XB), as modified under section 504, is not expected 
to be actually achieved by 2010, or such other date as is 
established under section 504, by voluntary means or pursuant 
to this title or an^ other law without such a fleet requirement 
program, taking mto consideration the status of the achieve-
ment of the interim goal described in section 502(bX2XA), as 
modified under section 504; 
(B) such goal is practicable and actually achievable within 
periods specified in section 502(bX2), as modified under section 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2893 
504, through implementation of such a fleet requirement pro-
gram in combination with voluntary means and tiie application 
of otiher programs relevant to achieving such goals; ana 
(C) by 1998 (when model year 1999 begins) or the date 
specified by the Searetary in such rule for initiating a fleet 
requirement program— 
(i) there exists sufficient evidence to ensure that the 
fuel and the needed infi>astructure, including the supply 
and deliverability systems, will be installed and located 
at convenient places in the fleet areas subject to the rule 
and vdll be fully operational when the rule is effective 
to offer a reliable and timely supply of the applicable alter-
native fuel at reasonable costs (as compared to conventional 
fuels) to meet the fleet requirement program, as dem-
onstrated through use of the provisions of section 505(1) 
of this title regarding voluntary commitments or other 
adequate, reliable, and convincing forms of agreements, 
arrangements, or representations that such fuels and infra-
structure are in existence or will exist when the rule is 
effective and will be expanded as the percentages increase 
annually; 
(ii) there will be a sufficient number of new alternative 
fueled vehicles from original equipment manufacturers that 
comply with all applicable requirements of the Clean Air 
Act and the National Traffic and Motor Vehicle Safety 
Act of 1966; 
(iii) such new vehicles will meet the applicable non-
Federal and non-State fleet performance requirements of 
such fleets (including range, passenger or cargo-carrying 
capacity, reliability, refuehng capability, vehicle mix, and 
economical operation and maintenance); and 
(iv) establishment of a fleet requirement program b^ 
rule under this subsection will not result in unfair competi-
tive advantages or disadvantages, or result in undue eco-
nomic hardship, to the affected fleets. 
(2) The Secretaiv shall not promulgate a rule under this sub-
section if he is unable to make affirmative findings in the case 
of each of the subparagraphs under paragraph (1), and each of 
the clauses under siibparagraph (C) of paragrapn (1). 
(3) If the Secretary does not determine that such program 
is necessary under this subsection, the provisions of subsection 
(e) shall apply to the consideration in the future of any fleet require-
ment program. The record of this rulemaking, including the Sec-
retarys findings, sh£ill be incorporated into a rulemakmg under 
that subsection. If the Secretary determines under this subsection 
that such program is necessary, the Secretary shall not initiate 
the later rulemaking imder subsection (e). 
(c) ADVANCE NOTICE OF PROPOSED RULEMAKING.—Not later 
than April 1, 1998, the Secretary shall publish an advance notice 
of proposed rulemaking for the purpose of— 
(1) evaluating the progress toward achieving the goals of 
replacement fuel use described in section 502(bX2), as modified 
under section 504; 
(2) identifying the problems associated with achieving those 
goals; 
(3) assessing the adequacy and practicability of those goals; 
and 
106 STAT. 2894 
PUBLIC LAW 102-486—OCT. 24, 1992 
(4) considering all actions needed to achieve those goals. 
The Secretary shall provide for at least 3 regional hearings on 
the advance notice of proposed rulemaking, witii respect to which 
official transcripts shall be maintained. Tlie comment period in 
connection with such advance notice of proposed rulemaking shall 
be completed within 7 months after publication of the advance 
notice. 
Federal 
(d) PROPOSED RuLE.—Before May 1, 1999, the Secretary shall 
wubli^tion 
publish in the Federal Register a proposed rule for the rule reqmred 
under subsection (g), and shall provide for a public comment period, 
with hearings, of not less than 90 days. 
(e) DETERMINATION.—(1) Not later than January 1, 2000, the 
Secretary shall, through the rule required under subsection (g), 
determine whether a fleet requirement program is necessary under 
this section. Such a program shall be considered necessary and 
a rule therefor shall be promulgated if the Secretary finds that— 
(A) the goal of replacement fuel use described in section 
502(bX2XB), as modified under section 504, is not expected 
to be actually achieved by 2010, or such other date as is 
established imder section 504, by voluntary means or pursuant 
to this title or any other law without such a fleet requirement 
program, taking mto consideration the status of the achieve-
ment of the interim goal described in section 502(bX2XA), as 
modified under section 504; and 
(B) such goal is practicable and actually achievable within 
periods specified in section 502(bX2), as modified under section 
504, through implementation of such a fleet requirement pro-
gram in combination with voluntary means and tiie application 
of other programs relevant to achieving such goals. 
(2) The rule imder subsection (b) or (g) shall also modify the 
goal described in section 502(bX2XB) and establish a revised goal 
piu^uant to section 504 if the Secretary determines, based on the 
proceeding required imder subsection (a) or (c), that the goal in 
effect at the time of that proceeding is inadequate or impracticable, 
and not expected to be achievable. Such goal as modified and 
estabUshed shall be applicable in making tiie findings described 
in paragraph (1). If the Secretary modifies the goal under this 
paragraph, he may also modify the percentages stated in subsection 
(aXD or (gXD and the minimum percentage stated in subsection 
(aX2) or (gX2) shall be not less than 10 percent. 
(D EXPLANATION OF DETERMINATION THAT FLEET REQUIREMENT 
PROGRAM IS NOT NECESSARY.—If the Secretary determines, based 
on findings under subsection (b) or (e), that a fleet requirement 
program imder this section is not necessary, the Secretaiy shall— 
(1) by December 15, 1996, with respect to a rulemaking 
under subsection (b); and 
(2) by January 1, 2000, with respect to a rulemaking under 
subsection (e), 
publish such determination in the Federal Register as a final agency 
action, including an explanation of the findings on which sucn 
determination is made and the basis for the determination. 
(g) FLEET REQUIREMENT PROGRAM.—(1) If the Secretary deter-
mines under subsection (e) that a fleet requirement program is 
necessary, the Secretaiy shall, by January 1, 2000, by rule require 
that, except as provided in paragraph (2), of the total number 
of new light duty motor vehicles acquired for a fleet, other than 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2895 
a Federal fleet, State fleet, or fleet owned, operated, leased, or 
otherwise controlled by a covered person under section 501— 
(A) 20 percent of the motor vehicles acquired in model 
year 2002; 
(B) 40 percent of the motor vehicles acquired in model 
year 2003; 
(C) 60 percent of the motor vehicles acquired in model 
year 2004; and 
(D) 70 percent of the motor vehicles acquired in model 
year 2005 and thereafter, 
shall be alternative fueled vehicles. 
(2) The Secretary may not establish percentage reqmrements 
higher than those described in paragraph (1). The Secretary may, 
if appropriate, and pursuant to a rule imder subsection (g), estabUsh 
a lesser percentage requirement for any model year. The Secretary 
may, by rule, establish a date later than 2002 (when model year 
2003 begins) for initiating the fleet requirements under paragraph 
(1). 
(3) Nothing in this title shall be construed as requiring any 
fleet to acquire alternative ftieled vehicles or alternative fuels Hiat 
do not meet the normal business requirements and practices and 
needs of that fleet. 
(4) A vehicle operating only on gasoline that complies with 
appUcable requirements of the Clean Air Act shall not be considered 
an alternative fueled vehicle under subsection (b) or this subsection, 
except that the Secretary, as part of the rule under subsection 
(b) or this subsection, may determine that such vehicle should 
be treated as an alternative fueled vehicle for purposes of this 
section, for fleets subject to part C of title II of the Clean Air 
Act, taking into consideration the impact on energy security and 
the goals stated in section 502(a). 
(h) EXTENSION OF DEADLINES.—The Secretary may, by notice 
published in the Federal Register, extend the deadlines established 
under subsections (e), (fX2), and (g) for an additional 90 days 
if the Secretary is imable to meet such deadlines. Such extension 
shall not be reviewable. 
(i) EXEMPTIONS.—(1) A rule issued under subsection (b), (g), 
or (o) shall provide for the prompt exemption by the Secretary, 
through a simple and reasonable process, of any fleet from the 
requirements of subsection (b), (g), or (o), in whole or in part, 
if it is demonstrated to the satisfaction of the Secretary that— 
(A) alternative fueled vehicles that meet the normal 
requirements and practices of the principal business of the 
fleet owner are not reasonably available for acquisition; 
(B) alternative fuels that meet tlie normal requirements 
and practices of the principal business of the fleet owner are 
not available in the area in which the vehicles are to be oper-
ated; or 
(C) in the case of State and local government entities, 
the application of such requirements would pose an unreason-
able 
financial 
hardship. 
(2) In the case of private fleets, if the motor vehicles, when 
under normal operations, are garaged at personal residences at 
night, such motor vehicles shall be exempt from the requirements 
of subsections (b) and (g). 
106 STAT. 2896 
PUBLIC LAW 102-486--OCT. 24, 1992 
(j) CONVERSIONS.—^Nothing in this title or the amendments 
made by this title shall require a fleet owner to acquire conversion 
vehicles. 
(k) INCLUSION OF LAW ENFORCEMENT VEHICLES AND URBAN 
BUSES.—(1) If the Secretary determines, by rule, that the inclusion 
of fleets of law enforcement motor vehicles in the fleet requirement 
program established under subsection (g) would contribute to 
achieving the goal described in section 502(bX2XB), as modified 
under section 504, and the Secretary finds that such inclusion 
would not hinder the use of the motor vehicles for law enforcement 
purposes, the Secretaiv may include such fleets in such program. 
The Secretary may only initiate one rulemaking under this para-
graph. 
(2) If the Secretary determines, by rule, that the inclusion 
of new urban buses, as defined by the Administrator under title 
II of the Clean Air Act, in a fleet requirement pro-am established 
under subsection (g) would contribute to achieving the goal 
described in section 502(bX2XB), as modified under section 504, 
the Secretary may include such urban buses in such program, 
if the Secretary finds that such application will be consistent with 
energy security goals and the needs and objectives of encouraging 
and mciUtating uie greater use of such urban buses by the public, 
taking into consideration the impact of such application on public 
transit entities. The Secretary may only initiate one rulemaking 
under this paragraph. 
(3) Rulemakings under paragraph (1) or (2) shall be separate 
firom a rulemaking under subsection (g), but may not occur unless 
a rulemaking is carried out under subsection (g). 
(1) CONSIDERATION OF FACTORS.—^In carrying out this section, 
the Secretary shall take into consideration energy security, costs, 
safety, lead time requiremento, vehicle miles traveled annually, 
effect on greenhouse gases, 
technological 
feasibility, energy require-
ments, economic impacts, including impacts on workers ana the 
impact on consumers (including users of the alternative fiiel for 
E
urposes such as for residences, a^culture, process use, and non-
lel purposes) and fleete, the availability of alternative fuels and 
alternative fiieled vehicles, and other relevant factors. 
(m) CONSULTATION AND PARTICIPATION OF OTHER FEDERAL 
AGENCIES.—^In carrving out this section and section 506, the Sec-
retai^ shall consmt with the Secretary of Transportation, the 
Administrator, and other appropriate Federal agencies. The Sec-
retary shall provide for uie participation of the Secretary of 
Transportetion and the Administrator m the development and issu-
ance of the rule imder this section, including the public process 
concerning such rule. 
(n) PETITIONS.—As part of the rule promulgated either pursuant 
to subsection (b) or (g) of this section, the Secretary shall esteblish 
procedures for any fleet owner or operator or motor vehicle manufac-
turer to request that the Secretary modify or suspend a fleet 
requirement program esteblished under either subsection nation-
ally, by region, or in an applicable fleet area because, as dem-
onstrated by the petitioner, the infirastructure or fiiel supply or 
distribution system for an applicable alternative fiiel is inaaequate 
to meet the needs of a fleet. In the event that the Secretary 
determines that a modification or suspension of the fleet require-
ment program on a regional basis would detract 
firom 
the nationwide 
character of any fleet requirement program esteblished by rule 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2897 
or would sufficients diminish the economies of scale for the produc-
tion of alternative fueled vehides or alternative fuels and thereafter 
the practicabilily and efifectiveness of such program, the Secretary 
may only modify or suspend the program nationally. The procedures 
shul include provisions for notice and public hearings. The Sec-
retary shall deny or grant the petition within 180 d^s after filing, 
(o) MANDATORY STATE FLEET PROGRAMS.—(1) Pursuant to a 
rule promulgated by the Secretai^, beginning in calendar year 
1995 (when model year 1996 begins), the foUowing percentages 
of new light duty motor vehicles acquired annually for State govern-
ment fleets, including agencies thereof, but not municipal fleets, 
shall be alternative fueled vehicles: 
(A) 10 percent of the motor vehicles acquired in model 
year 1996; 
(B) 15 percent of the motor vehicles acquired in model 
year 1997; 
(C) 25 percent of the motor vehicles acquired in model 
year 1998; 
(D) 50 percent of the motor vehicles acquired in model 
year 1999; 
(E) 75 percent of the motor vehicles acquired in model 
year 2000 and thereafter. 
(2XA) The Secretary shall within 18 months after the date 
of the enactment of this Act promulgate a rule providing that 
a State may submit a plan within 12 months after such promulga-
tion containing a light duty alternative fueled vehicle plan for 
State fleets to meet the annual percentages established under para-
graph (1) for the acquisition of light duty motor vehicles. The 
plan shall provide for the volimtary conversion or acquisition or 
combination thereof, beyond any acquisition required by this titie, 
of such motor vehicles by State, local, or private fleets, in numbers 
greater than or equal to the number of State alternative fueled 
vehicles required pursuant to paragraph (1). 
(B) The plan, if approved by the Secretary, would be in lieu 
of the State meeting such annual percenteges solely through pur-
chases of new Stete-owned vehicles. All conversions or acquisitions 
or combinations thereof of any alternative fueled vehicles under 
the plan must be voluntary and must conform with the require-
ments of section 247 of the Clean Air Act and must comply with 
applicable safety requirements. The Secretary of Transportation 
shall within 3 years after enactment promulgate rules setting forth 
safely standards in accordance with the National Traffic and Motor 
Vehicle Safety Act of 1966 applicable to all conversions. 
SEC. 608. CREDITS. 
(a) IN GENERAL.—The Secretary shall allocate a credit to a 
fleet or covered person that is required to acquire an alternative 
fueled vehicle under this title, ir that fleet or person acquires 
an alternative fueled vehicle in excess of the number that fleet 
or person is required to acquire under this title or acquires an 
alternative fueled vehicle before the date that fleet or person is 
required to acquire an alternative fueled vehicle under such titie. 
(b) ALLOCATION.—^In allocating credite under subsection (a), 
the Secretary shall allocate one credit for each alternative fueled 
vehicle the fleet or covered person acquires that exceeds the number 
of alternative fueled vehiaes that jfleet or person is required to 
acquire under this titie or that is acquired before the date that 
Regulations. 
42 use 13258. 
59-194 O—93 
6:QL3(Pt. 4) 
106 STAT. 2898 
PUBLIC LAW 102-486—OCT. 24, 1992 
fleet or person is required to acquire an alternative fueled vehicle 
under such title. In the event that a vehicle is acquired before 
the date otherwise required, the Secretary shall allocate one credit 
per vehicle for each year the vehicle is acauired before the re(quired 
date. The credit shall be allocated for tne same type vehicle as 
the excess vehicle or earlier acquired vehicle. 
(c) USE OF CREDITS.—^At the request of a fleet or covered 
person allocated a credit under this section, the Secretary shall 
treat the credit as the acquisition of one alternative fueled vehicle 
of the type for which the credit is allocated in the year designated 
by that fleet or person when determining whether that fleet or 
person has complied with this title in the year designated. A credit 
may be counted toward compliance for only one year. 
(d) TRANSFERABILITY.—A fleet or covered person allocated a 
credit imder this section or to whom a credit is transferred under 
this section, may transfer freelv the credit to another fleet or 
person who is required to comply with this title. At the request 
of the fleet or person to whom a credit is transferred, the Secretary 
shall treat the transferred credit as the acquisition of one alter-
native fueled vehicle of the tjrpe for which the credit is allocated 
in the year designated by the fleet or person to whom the credit 
is transferred when determining whether that fleet or person has 
complied with this title in the year designated. A transferred credit 
may be counted toward compliance for only one year. In the case 
of the alternative fuel provider program under section 501, a trans-
ferred credit may be counted toward compliance only if the require-
ment of section 501(aX4) is met. 
42 use 13259. 
SEC. 509. SECRETARIHS RECOMMENDATIONS TO CONGRESS. 
(a) RECOMMENDATIONS To REQUIRE AVAILABILITY OR ACQUISI-
TION.—If the Secretary determines, under section 507(f), that a 
fleet requirement pro-am under section 507 is not necessary, the 
Secreta^ shall so notify the Congress. If the Secretary so notifies 
the Congress, the Secretary shall, within 2 years after such notifica-
tion and by rule, prepare and submit to the Congress recommenda-
tions for requirements or incentives for— 
(1) fuel suppliers to make available to the public replace-
ment fiiels, including providing for the construction or availabil-
ity of related fuel delivery systems; 
(2) suppliers of alternative fueled vehicles to make available 
to the public alternative fueled vehicles and to ensure the 
availability of necessary related services; and 
(3) motor vehicle drivers to use replacement fuels, 
to the extent necessary to achieve such goals of replacement fuel 
use and to ensure that the availability of alternative fuels and 
of alternative fueled vehicles are consistent with each other. 
(b) FAIR AND EQUITABLE APPUCATION.—In canying out this 
section, the Secretary shall recommend the imposition of require-
ments proportionately on all appropriate fuel suppliers and pur-
chasers 01 motor fuels and suppliers and purchasers of motor 
vehicles in a fair and equitable maimer. 
42 use 13260. 
SEC. 510. EFFECT ON OTHER LAWS. 
(a) IN GENERAL.—^Nothing in this Act or the amendments made 
hy this Act shall be construed to alter, affect, or modifv the provi-
sions of the Clean Air Act, or regulations issued thereunder. 
(b) COMPLIANCE BY ALTERNATIVE FUELED VEHICLES.—Alter-
^ 
native fueled vehicles, whether dedicated vehicles or dual fueled 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2899 
vehicles, and tiie alternative fuels for operating sudi vehicles, shall 
comply with reauirements of the Clean Air Act applicable to such 
vehicles and fuels. 
SEC. 511. PROHIBITED ACTS. 
42 USC 13261. 
It shall be unlawful for any person to violate any provision 
of section 501, 503(b), or 507, or any regulation issued under such 
sections. 
SEC. S12. ENFORCEMENT. 
42 USC 13262. 
(a) Whoever violates section 511 shall be subject to a civil 
penalty of not more than $5,000 for each violation. 
(b) Whoever willfully violates section 511 shall be fined not 
more than $10,000 for each violation. 
(c) Any person who knowingly and willfully violates section 
511 after having been subjected to a civil penalty for a prior viola-
tion of section 511 shall be fined not more than $50,000. 
SEC. 513. POWERS OF THE SECRETARY. 
42 USC 13263. 
For the purpose of carrying out title III, title IV, this title, 
and title VI, the Secretary, or the duly designated agent of the 
Secretary, may hold such hearings, take such testimony, sit and 
act at such times and places, administer such oaths, and require, 
by subpena, the attendance and testimony of such witnesses and 
the production of such books, papers, correspondence, memoran-
dums, contracts, agreements, or other records as the Secretary 
of Transportetion is authorized to do under section 505(bXl) of 
the Motor Vehicle Information and Cost Savings Act (15 U.S.C. 
2005(bXl)). 
SEC. 514. AUTHORIZATION OF APPROPRIATIONS. 
42 USC 13264. 
There are authorized to be appropriated to the Secretory for 
carding out this title $10,000,000 for each of the fiscal years 
1993 tmrough 1997, and such sums as may be necessary for fiscal 
years 1998 through 2000. 
TITLE VI—ELECTRIC MOTOR VEHICLES 
SEC. 601. DEFINITIONS. 
For the purposes of this title— 
(1) the term "antitrust laws" means the Acto set forth 
in section 1 of the Clayton Act (15 U.S.C. 12); 
(2) the term "associated equipment" means equipment nec-
essarv for the regeneration, reiueling, or recharging of batteries 
or other forms of electric energy used to power an electric 
motor vehicle and, in the case of electric-hybrid vehicles, such 
term includes nonpetroleum-related equipment necessary for, 
and solely related to, the demonstration of such vehicles; 
(3) the term "discount payment" means the amount deter-
mined pursuant to section 613 of this title; 
(4) the term "electric motor vehicle" means a motor vehicle 
primarily powered by an electric motor that draws current 
from rechargeable storage batteries, fuel cells, photovoltaic 
arravs, or other sources of electric current and may include 
an electric-hybrid vehicle; 
(5) the term "electric-hybrid vehicle" means a vehicle pri-
marily powered by an elecbic motor that draws current from 
42 USC 13271. 
106 STAT. 2900 
PUBLIC LAW 102-486—OCT. 24, 1992 
rechargeable storage batteries, fuel cells, or other source of 
electric current ana also relies on a non-electric source of 
power; 
(6) the term "eligible metropolitan area" means any Metro-
politan Area (as such term is defined by the OfHce of Manage-
ment and Budget pursuant to section 3504 of title 44, United 
States Code) with a 1980 population of 250,000 or more that 
has been designated by a proposer and the Secretary for a 
demonstration project under this title, except that the Secretary 
may designate an area with a 1990 population of 50,000 or 
more as an eligible metropolitan area; 
(7) the term "infrastructure and support systems" includes 
support and maintenance services and facilities, electricity 
delivery mechanisms and methods, regulatory treatment of 
investment in electric motor vehicles and associated equipment, 
consimier education programs, safety and health procedures, 
and battery availability, replacement, recycling, and disposal, 
that may be required to enable electric utilities, manufacturers, 
and others to support Uie operation and maintenance of electric 
motor vehicles and associated equipment; 
(8) the term "motor vehicle" tias the meaning given such 
term under section 216(2) of the Clean Air Act (42 U.S.C. 
7550(2)); 
(9) the term "non-Federal person" means an entity not 
part of the Federal Government that is either— 
(A) organized under the laws of the United States 
or the laws of a State of the United States; or 
(B) a unit of State or local government; 
(10) the term "proposer" means a non-Federal person that 
submits a proposal to conduct a demonstration project under 
this title; 
(11) the term "price differential" me£ms— 
(A) in the case of a purchased electric motor vehicle, 
the difference between the manufacturer's suggested retail 
price of such electric motor vehicle and the manufacturer's 
suggested retail price of a comparable conventionally fueled 
motor vehicle; and 
(B) in the case of a leased, electric motor vehicle, the 
difference between the monthly lease payment of such elec-
tric motor vehicle over the life of the lease and the monthly 
lease payment of a comparable conventionally fueled motor 
vehicle over the life of the lease; and 
(12) the term "user" means a person or entity that pur-
chases or leases an electric motor vehicle. 
Subtitle A—^Electric Motor Vehicle 
Commercial Demonstration Program 
42 use 13281. 
SEC. 611. PROGRAM AND SOUCITATION. 
(a) PROGRAM.—^The Secretary shall conduct a program to dem-
onstrate electric motor vehicles and the associated eqmpment of 
such vehicles, in consultation with the Electric and Hprbrid Vehicle 
Program Site Operators, manufacturers, the electric utility industry, 
and such other persons as the Secretary considers appropriate. 
Such program shall be— 
(1) designed to accelerate the development and use of elec-
tric motor vehicles; and 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2901 
(2) structured to evaluate the performance of such electric 
motor vehicles in field operation, including fleet operation, and 
evaluate the necessary supporting infrastructure. 
(b) SouciTATiON.—(1) Not later than 18 months after the date 
of enactment of this Act, the Secretary shall solicit proposals to 
demonstrate electric motor vehicles and associated equipment in 
one or more eUgible metropolitan areas. The Secretary may make 
additional solicitations for proposals if the Secretary determines 
that such solicitations are necessary to cany out this subtitle. 
(2XA) Solicitations for proposals under this subsection shall 
require the proposer to include a description, including the manufac-
turer or manufacturers of the electric motor vehicles; the proposed 
users of the electric motor vehicles; the eligible metropolitan area 
or areas involved; the number of electric motor venicles to be 
demonstrated and their type, characteristics, and life-cycle costs; 
the price differential; the proposed discoimt pavment; the contribu-
tions of State or local governments and other persons to the 
demonstration project; the type of associated equipment to be dem-
onstrated; the domestic content of the electric motor vehicles and 
associated equipment; and any other information the Secretary 
considers appropriate. 
(B) If the proposal includes a lease arrangement, the proposal 
shall indicate uie terms of such lease arrangement for the electric 
motor vehicles or associated equipment. 
(3) The solicitation for proposals under this subsection shaU 
estabUsh a closing date for receipt of proposals. The Secretary 
may, if necessary, extend the closing date for receipt of proposals 
for a period not to exceed 90 days. 
SEC. 612. SELECTION OF PROPOSALS. 
42 USC 13282. 
(a) SELECTION.—(1) The Secretary, in consultation with the 
Secretary of Transportation, the Secretary of Commerce, and the 
Administrator of the Environmental Protection Agency, shall, not 
later than 120 days after the closing date, as esteblished by the 
Secretary, for receipt of proposals under section 611, select at least 
one, but not more than 10, proposals to receive financial assistance 
imder section 613. 
(2) The Secretaiy may select more than 10 proposals under 
this section, if the Secretary determines that the totel amoimt 
of available funds is not likely to be otherwise utilized. 
(3) Any proposal selected under paragraph (1) must satisfy 
the limitetions set forth in section 613(c). 
(4) No one project selected under this section shall receive 
more than 25 percent of the funds authorized under section 616. 
(5) A demonstration proiect may not include electric motor 
vehicles in more than one eligible metropolitan area, unless the ~-
total number of electric motor vehicles in that project is equal 
to, or greater than, 100. 
(b) CRITERIA.—^In selecting a proposal and in negotiating finan-
cial assistance imder this section, the Secretory shall consider— 
(1) the ability of the manufacturer, directly, indirectly, 
or in combination with the proposer, to develop, assist in the 
demonstration of, manufacture, distribute, sell, provide warran-
ties for, service, and ensure the continued availability of parts 
for, electric motor vehicles in the demonstration project; 
(2) the geographic and climatic diversity of the eligible 
metropolitan area or areas in which the demonstration project 
106 STAT. 2902 
PUBLIC LAW 102-486—OCT. 24, 1992 
is to be undertaken, when considered in combination with other 
proposals and other selected demonstration pro^'ects; 
(3) the long-term technical and competitive viability of 
the electric motor vehicles; 
(4) the suitability of the electric motor vehicles for their 
intended uses; 
(5) the environmental effects of the use of the proposed 
electric motor vehicles; 
(6) the price differential and the proposed discount pay-
ment; 
(7) the extent of involvement of State or local government 
and other persons in the demonstration project, and whether 
such involvement will— 
(A) permit a reduction of the Federal cost share per 
vehicle; or 
(B) otherwise be used to allow the Federal contribution 
to be provided for a greater number of electric motor 
vehicles; 
(8) the proportion of domestic content of the electric motor 
vehicles and associated eauipment; 
(9) the safety of the electric motor vehicles; and 
(10) such otiier criteria as the Secretary considers appro-
priate. 
(c) CONDITIONS.—^The Secretary shall require that— 
(1) as a part of a demonstration project, the user or users 
of the electric motor vehicles will provide to the proposer and 
the manufacturer information regarding the operation, mainte-
nance, performance, and use of the electric motor vehicles for 
5 years after the beginning of the demonstration project; 
(2) the proposer shall provide to the Secretary such 
information regarding the operation, maintenance, perform-
ance, and use of the electric motor vehicles as the Secretary 
may re(|uest during the period of the demonstration project; 
(3) m the case of a demonstration project including auto-
mobiles or light duty trucks, the number of electric motor 
vehicles to be included in the demonstration project shall be 
no less than 50, except that the Secretary may select a dem-
onstration project with fewer than 50 electric motor vehicles 
if the Secretary determines that selection of such a proposal 
will ensure that there is geographic or climatic diversity among 
the proposals selected and that an adequate demonstration 
to accelerate the development and use of electric motor vehicles 
can be undertaken with fewer than 50 electric motor vehicles; 
and 
(4) the procurement practices of the manufacturer do not 
discriminate against United States producers of vehicle parts. 
42 use 13283. 
SEC. 613. DISCOUNT PAYMENTS. 
(a) CERTIFICATION.—^The Secretary shall provide a discount pay-
I 
ment to a proposer of a proposal selected under this subtitle for 
purposes of reimbursing the proposer for a discount provided to 
the users if the proposer certifies to the Secretary that— 
(1) the electric motor vehicles have been purchased or 
leased by a user or users in accordance with the requirements 
of this subtitle; and 
(2) the proposer has provided to the user or users a discount 
payment in accordance with the requirements of this subtitle. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2903 
(b) PAYMENT.—^Not later than 30 days after receipt from the 
proposer of certification that the Secretary determines satisfies 
the requirements of subsection (a), the Secretary shall pay to the 
proposer the full amount of the discoimt payment, to the extent 
provided in advance in appropriations Acts. 
(c) CALCULATIONS OF DISCOUNT PAYMENTS.—(1) The discoimt 
pa3rment shall be no greater than— 
(A) the price differential; or 
(B) the price of the comparable conventionally fueled motor 
vehicle. 
(2) The purchase price of the electric motor vehicle, less the 
discoimt pa3rment and less any additional reduction in the purchase 
price of the electric motor vehicle that may result from contributions 
provided by other parties, may not be less than the manufacturer's 
suggested retail price of a comparable conventionally fueled motor 
vehicle. 
(3) The maximum discoimt payment shall be no greater than 
$10,000 per electric motor vehicle. 
SEC. 614. COST-SHARING. 
42 USC 13284. 
(a) REQUIREMENT.—^The Secretary shall require at least 50 
percent of the costs directly and specifically related to any project 
under this subtitle to be from non-Federal sources. Such share 
may be in the form of cash, personnel, services, equipment, and 
other resources. 
(b) REDUCTION.—^The Secretary may reduce the amount of costs 
required to be provided by non-Federal sources under subsection 
(a) if the Secretary determines that the reduction is necessary 
and appropriate— 
(1) considering the technological risks involved in the 
project; and 
(2) in order to meet the objectives of this subtitle. 
SEC. 615. REPORTS TO CONGRESS. 
42 USC 13285. 
(a) PROGRESS REPORTS.—^The Secretary shall report annually 
to Congress on the progress being made, through demonstration 
projects supported under this subtitle, to accelerate the development 
and use of electric motor vehicles. 
(b) REPORT ON ENCOURAGING THE PURCHASE AND USE OF ELEC-
TRIC MOTOR VEHlCLES.^Within 18 months after the date of enact-
ment of this Act, the Secretary shall submit to the Congress a 
report on methods for encouraging the purchase and use of electric 
motor vehicles. Such report shcQl— 
(1) address the potential cost of purchasing and maintain-
ing electric motor vehicles, including the initial cost of the 
batteries and the cost of replacement batteries; 
(2) identify methods for reducing, subsidizing, or sharing 
such costs; ana 
(3) include recommendations for legislative and administra-
tive measures to encourage the purchase and use of electric 
motor vehicles. 
SEC. 616. AUTHORIZATION OF APPROPRIATIONS. 
42 USC 13286. 
There are authorized to be appropriated to the Secretary for 
purposes of this subtitle $50,000,000 for the 10-vear period begin-
ning with the first full fiscal year after the date of enactment 
of this Act, to remain available until expended. 
106 STAT. 2904 
PUBLIC LAW 102-486—OCT. 24, 1992 
Subtitle B—Electric Motor Vehicle Infra-
structure and Support Systems Develop-
m e n t Program 
42 use 13291. 
SEC. 621. GENERAL AUTHORITY. 
(a) PROGRAM.—The Secretary shall undertake a program with 
one or more non-Federal persons, including fleet operators, for 
cost-shared research, development, demonstration, or commercial 
application of an infrastructure and support systems program. 
(b) ELIGIBILITY.—^A non-Federal person shall be eligible to 
receive financial assistance under this subtitle only if such person 
demonstrates, to the satisfaction of the Secretary, that the person 
will conduct a substantial portion of activities under the project 
in the United States using domestic labor and materials. 
(c) COORDINATION.—^Activities under this subtitle shall be 
coordinated with activities under subtitle A. 
42 use 13292. 
SEC. 622. PROPOSALS. 
?; 
(a) SOLICITATION.—Not later than one year after the date of 
enactment of this Act, the Secretary shall solicit proposals from 
non-Federal persons, including fleet operators, for projects under 
this subtitle. Within 240 days after proposals have been solicited, 
the Secretary shall select proposals. 
(b) CRITERIA.—(1) The Secretary shall provide flnancial assist-
ance to no more than 10 projects under this subtitle, unless the 
Secretary determines that the total amount of available funds is 
not likely to be otherwise used. 
(2) The proposals selected by the Secretary shall, to the extent 
practicable, represent geographically and climatically 
diverse 
regions of the United States. 
(3) The ag^egate Federal financial assistance for each project 
imder this subtitle may not exceed $4,000,000. 
(c) PROJECTS.—^The infrastructure and support systems pro-
grams for which projects are selected under this subtitle may 
address— 
(1) the ability to service electric motor vehicles and to 
provide or service associated equipment; 
(2) the installation of charging facilities; 
(3) rates and cost recovery for electric utilities who invest 
in infrastructure capital-related expenditures; 
(4) the development of safety and health procedures and 
guidelines related to battery charging, watering, and emissions; 
(5) the conduct of information dissemination programs; and 
(6) such other subjects as the Secretary considers necessary 
in order to address the infrastructure and support systems 
needed to support the development and use of energy storage 
technologies, including advanced batteries, and the demonstra-
tion of electric motor vehicles. 
42 u s e 13293. 
SEC. 623. PROTECTION OF PROPRIETARY INFORMATION. 
(a) IN GENERAL.—In the case of activities, including joint ven-
ture activities, under this title, and in the case of any existing 
or future activities, including joint venture activities, related pri-
marily to battery technology for electric motor vehicles under other 
provisions of law, where the knowledge resulting from research 
PUBLIC LAW 102-486—OCT. 24,1992 
106 STAT. 2905 
and development activities conducted pursuant to such activities, 
including joint venture activities, is for the benefit of the partici-
pants (psurticularly domestic companies) that provide financial 
resources to a project under this title, the Secretary, for a period 
of up to 5 years after the development of information that— 
(1) results from research and development activities con-
ducted under this title; and 
(2) would be a trade secret or conmiercial or financial 
information that is privileged or confidential if the information 
had been obtained 
firom 
a participant, 
shall, notwithstanding any other provision of law, provide appro-
priate protections against the dissemination of such information 
to the public, and the provisions of section 1905 of title 18, United 
States Code, shall apply to such information. Nothing in this sub-
section provides protections against the dissemination of such 
information to Congress. 
(b) DEFINITION.—^For purposes of subsection (a), the term 
"domestic companies" means entities which are substantially 
involved in the United States in the domestic production of motor 
vehicles for sale in the United States and nave a substantial 
percentage of their production facilities in the United States. 
SEC. 624. COMPLIANCE WITH EXISTING LAW. 
Nothing in this title shall be deemed to convey to any person, 
partnership, corporation, or other entitv, immunity from civil or 
criminal liability under any antitrust law or to create defenses 
to actions under any antitrust law. 
SEC. 626. ELECTRIC UTILITY PARTICIPATION STUDY. 
The Secretary, in consultation with appropriate Federal agen-
cies, representatives of State regulatory commissions and electric 
utilities, and such other persons as the Secretary considers appro-
priate, shall undertake or cause to have undertaken a study to 
determine the means by which electric utilities may invest in, 
own, sell, lease, service, or recharge batteries used to power electric 
motor vehicles. 
SEC. 626. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Secretary for 
purposes of this subtitle $40,000,000 for the 5-year period beginning 
with the first full fiscal year after the date of enactment of this 
Act, to remain available until expended. 
TITLE VII—ELECTRICITY 
Subtitle A—^Exempt Wholesale Generators 
42 use 13294. 
42 use 13295. 
42 use 13296. 
SEC. 711. PUBUC UmJTY HOLDING COMPANY ACT REFORM. 
The Public Utility Holding Company Act of 1935 (15 U.S.C. 
79 and following) is amended by redesignating sections 32 and 
33 as sections 34 and 35 respectively and by adding the following i^ U
S
C 79, 
new section after section 31: 
''^"^• 
*«EC. 32. EXEBfPT WHOLESALE GENERATORS. 
15 USC 79z-5a. 
"(a) DEFINITIONS.—^For purposes of this section— 
"(1) EXEMPT WHOLESALE GENERATOR.—The term 'exempt 
wholesale generatoi^ means any person determined by the Fed-
106 STAT. 2906 
PUBLIC LAW 102-486—OCT. 24, 1992 
eral Energy Regulatory Commission to be engaged directly, 
or indirectly through one or more affiliates as defined in section 
2(aXllXB), and exclusively in the business of owning or operat-
ing, or both owning and operating, all or part of one or more 
eligible facilities and selling electric energy at wholesale. No 
person shall be deemed to be an exempt wholesale generator 
under this section unless such person has applied to the Federal 
Energy Regulatory Commission for a determination under this 
paragraph. A person appl3dng in good faith for such a deter-
mination shall be deemed an exempt wholesale generator under 
this section, with all of the exemptions provided by this section, 
until the Federal Energy Reg^atory Commission makes such 
determination. The Federal Enerjgy Regulatory Commission 
shall make such determination within 60 da^^s of its receipt 
of such application and shall notify the Commission whenever 
a determination is made under this paragraph that any person 
Regulations. 
jg an exempt wholesale generator. Not later than 12 months 
after the date of enactment of this section, the Federal Energy 
Regulatory Commission shall promulgate rules implementing 
the provisions of this paragraph. Applications for determination 
filea after the effective date of such rules shall be subject 
thereto. 
"(2) ELIGIBLE FACIUTY.—The term 'eligible facility* means 
a facility, wherever located, which is either— 
"(A) used for the generation of electric energy exclu-
sively for sale at wholesale, or 
"(B) used for the generation of electric energy and 
leased to one or more public utility companies; Provided, 
That any such lease shall be treated as a sale of electric 
energy at wholesale for purposes of sections 205 and 206 
of the Federal Power Act. 
Such term shall not include any facility for which consent 
is required imder subsection (c) L
f such consent has not been 
obtained. Such term includes interconnecting transmission 
facilities necessary to effect a sale of electric energy at whole-
sale. For purposes of this paragraph, the term 'facility may 
include a portion of a facility sumect to the Umitations of 
subsection (d) and shall include a facility the construction of 
which has not been commenced or completed. 
**(3) SALE OF ELECTRIC ENERGY AT WHOLESALE.—The term 
'sale of electric energy at wholesale' shall have the same mean-
ing as provided in section 201(d) of the Federal Power Act 
(16 U.S.C. 824(d)). 
"(4) RETAIL RATES AND CHARGES.—The term 'retail rates 
and charges' means rates and charges for the sale of electric 
energy directly to consumers. 
"(b) FOREIGN RETAIL SALES.—Notwithstanding paragraphs (1) 
and (2) of subsection (a), retail sales of electric energy produced 
by a facility located in a foreign country shall not prevent such 
facility from being an eligible facility, or prevent a person owning 
or operating, or ooth owning and operating, such facility from 
being an exempt wholesale generator if none of the electric energy 
generated by such facility is sold to consumers in the United States, 
"(c) STATE CONSENT FOR EXISTING RATE-BASED FACILITIES.— 
If a rate or charge for, or in connection with, the construction 
of a facility, or for electric energy produced by a facility (other 
than any portion of a rate or charge which represents recovery 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2907 
of the cost of a wholesale rate or charge) was in effect under 
the laws of any State as of the date of enactment of this section, 
in order for the facility to be considered an eligible facility, every 
State commission having jurisdiction over any such rate or charge 
must make a specific determination that allowing such facility 
to be an eligible facility (1) will benefit consumers, (2) is in the 
public interest, and (3) does not violate State law; Provided, That 
in Uie case of such a rate or charge which is a rate or charge 
of an affiliate of a registered holding company: 
"(A) such determination with respect to the facility in ques-
tion shall be required fiY)m every State commission having 
jurisdiction over the retail rates and charges of the affiliates 
of such registered holding company; and 
"(B) tiie approval of the Commission under this Act shall 
not be required for the transfer of the facility to an exempt 
wholesale generator. 
"(d) HYBRIDS.—(1) No exempt wholesale generator may own 
or operate a portion of any facility if any other portion of the 
facility is owned or operated by an electric utility compcmy that 
is an afidliate or associate company of such exempt wholesale 
generator. 
"(2) EuGiBLE FACILITY.—Notwithstanding paragraph (1), an 
exempt wholesale generator may own or operate a portion of a 
facility identified in paragraph (1) if such portion has become an 
eligible facility as a result of the operation of subsection (c). 
"(e) EXEMPTION OF EWGS.^An exempt wholesale generator 
shall not be considered an electric utility company under section 
2(aX3) of this Act and, whether or not a subsidiary company, 
an affiliate, or an associate company of a holding company, an 
exempt wholesale generator shall be exempt from all provisions 
of this Act. 
"(0 OWNERSHIP OF EWGS BY EXEMPT HOLDING COMPANIES.— 
Notwithstanding any provision of this Act, a holding company that 
is exempt under section 3 of this Act shall be permitted, without 
condition or limitation under this Act, to acquire and maintain 
an interest in the business of one or more exempt wholesale genera-
tors. 
"(g) OWNERSfflP O
F EWGS B
Y R
E
G
I
S
T
E
R
E
D H
O
L
D
I
N
G C
O
M
P
A
-
NIES.—^Notwithstanding any provision of this Act and the Commis-
sion's jurisdiction as provided under subsection (h) of this section, 
a registered holding company shall be permitted (without the need 
to apply for, or receive, approval fit)m the Commission, and other-
wise without condition under this Act) to acquire and hold the 
securities, or an interest in the business, of one or more exempt 
wholesale generators. 
"(h) FINANCING AND OTHER RELATIONSHIPS BETWEEN EWGS 
A
N
D REGISTERED HOLDING COMPANIES.—^The issuance of securities 
by a registered holding company for purposes of financing tiie 
acquisition of an exempt wholesale generator, the guarantee of 
securities of an exempt wholesale generator by a registered holding 
company, the entering into service, sales or construction contracts, 
and the creation or maintenance of any other relationship in addi-
tion to that described in subsection (g) between an exempt wholesale 
generator and a registered holding company, its affiliates and asso-
ciate companies, shall remain subject to the jurisdiction of the 
Commission under this Act: Provided, That— 
106 STAT. 2908 
PUBLIC LAW 102-486—OCT. 24, 1992 
"(1) section 11 of this Act shall not prohibit the ownership 
of an interest in the business of one or more exempt wholesale 
generators by a registered holding company (regardless of 
where facilities owned or operated by such exempt wholesale 
generators are located), and such ownership by a registered 
olding company shall be deemed consistent with the operation 
of an integrated public utility s>rstem; 
'X2) the ownership of an interest in the business of one 
or more exempt wholesale generators by a registered holding 
compsmy (regardless of where facilities owned or operated by 
such exempt wholesale generators are located) shall be consid-
ered as reasonably incidental, or economically necessary or 
appropriate, to the operations of an integrated public utility 
system; 
"(3) in determining whether to approve (A) the issue or 
sale of a security by a registered holding company for purposes 
of financing the acquisition of an exempt wholesale generator, 
or (B) the guarantee of a security of an exempt wholesale 
generator by a registered holding company, the Commission 
shall not m£ike a finding that such security is not reasonably 
adapted to the earning power of such company or to the security 
structure of such company and other companies in the same 
holding company system, or that the circumstances are such 
as to constitute the making of such guarantee an improper 
risk for such company, unless the Commission first finds that 
the issue or sale of such security, or the making of the guaran-
tee, would have a substantial adverse impact on the financial 
integrity of the registered holding company system; 
"(4) in determining whether to approve (A) the issue or 
sale of a security by a registered holding company for purposes 
other than the acquisition of an exempt wholesale generator, 
or (B) other transactions by such registered holding company 
or by its subsidiaries other than with respect to exempt whole-
sale generators, the Commission shall not consider the effect 
of the capitalization or earnings of any subsidiary which is 
an exempt wholesale generator upon the registered holding 
company system, unless the approval of the issue or sale or 
other transaction, together with the effect of such capitalization 
and earnings, would have a substantial adverse impact on 
the financial integrity of the registered holding company sys-
tem; 
"(5) the Commission shall make its decision under para-
graph (3) to approve or disapprove the issue or sale of a security 
or the guarantee of a security within 120 days of the filing 
of a declaration concerning such issue, sale or guarantee; and 
"(6) the Commission shall promulgate regulations with 
respect to the actions which would be considered, for purposes 
of this subsection, to have a substantial adverse impact on 
the financial integrity of the registered holding company sys-
tem; such regulations shall ensure that the action has no 
adverse impact on any utility subsidiary or its customers, or 
on the ability of State commissions to protect such subsidiary 
or customers, and shall take into account the amount and 
type of capital invested in exempt wholesale generators, the 
ratio of such capital to the total capital invested in utility 
operations, the availability of books and records, and the finan-
cial and operating experience of the registered holding company 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2909 
and the exempt wholesale generator; the Commission shall 
promulgate such regulations within 6 months after the enact-
ment of this section; after such 6-month period the Commission 
shall not approve any actions under paragraph (3), (4) or (5) 
except in accordance with such issued regulations. 
"(i) APPLICATION OF ACT TO OTHER EUGIBLE FACILITIES.—In 
the case of any person engaged directly and exclusively in the 
business of owning or operating (or botn owning and operating) 
all or part of one or more eligible facilities, an advisory letter 
issued by the Commission staff under this Act after the date of 
enactment of this section, or an order issued by the Commission 
under this Act after the date of enactment of this section, shall 
not be required for the purpose, or have the effect, of exempting 
such person from treatment as an electric utility company under 
section 2(aX3) or exempting such person from any provision of 
this Act. 
"(j) OWNERSHIP OF EXEMPT WHOLESALE GENERATORS AND 
QUALIFYING FACILITIES.—^The ownership by a person of one or more 
exempt wholesale generators shall not result in such person being 
considered as being primarily engaged in the generation or sale 
of electric power witnin the meaning of sections 3(17XCXii) and 
3(18XBXii) of the Federal Power Act (16 U.S.C. 796(17XCXu) and 
796(18XBXii)). 
"(k) PROTECTION AGAINST ABUSIVE AFFILIATE TRANSACTIONS.— 
"(1) PROHIBITION.—After the date of enactment of this sec-
tion, an electric utility company may not enter into a contract 
to purchase electric energy at wholesale from an exempt whole-
sale generator if the exempt wholesale generator is an afi&liate 
or associate company of the electric utility company. 
"(2) STATE AUTHORITY TO EXEMPT FROM PROHIBITION.-Not-
withstanding paragraph (1), an electric utility company may 
enter into a contract to purchase electric energy at wholesale 
from an exempt wholesale generator that is an aftiliate or 
associatecompany of the electric utility company— 
"(A) u every State commission having jurisdiction over 
the retail rates of such electric utility company makes 
each of the following specific determinations in advance 
of the electric utility company entering into such contract: 
"(i) A determination that such commission has 
sufficient regulatory authority, resources and access 
to books and records of the electric utility company 
and any relevant associate, affiliate or subsidiary com-
pany to exercise its duties under this subparagraph. 
> 
"(ii) A determination that the transaction— 
"(I) will benefit consumers, 
"(11) does not violate any State law (including 
where applicable, least cost planning), 
"(III) would not provide the exempt wholesale 
generator any unfair competitive advantage by vir-
tue of its affiliation or association with the electric 
utility company, and 
"(IV) is in the public interest; or 
"(B) if such electric utility company is not subject to 
State commission retail rate regulation and the purchased 
electric energy: 
"(i) would not be resold to any affiliate or associate 
company, or 
106 STAT. 2910 
PUBLIC LAW 102-486—OCT. 24, 1992 
**(ii) the purchased electric energy would be resold 
to an affiliate or associate company and every State 
commission having jurisdiction over the retail rates 
of such affiliate or associate company makes each of 
the determinations provided under subparagraph (A), 
including the 
determination 
concerning a 
State 
commission's duties. 
"(1) 
RECIPROCAL 
ARRANGEMENTS 
PROHIBITED.—Reciprocal 
arrangements among companies that are not affiliates or associate 
companies of each other that are entered into in order to avoid 
the provisions of this section are prohibited.". 
SEC. 712. STATE CONSIDERATION OF THE EFFECTS OF POWER PUR. 
CHASES ON UTILrnr COST OF CAPITAL; CONSIDERATION 
OF THE EFFECTS OF LEVERAGED CAPITAL STRUCTURES 
ON THE RELIABILITY OF WHOLESALE POWER SELLERS; 
AND CONSIDERATION OF ADEQUATE FUEL SUPPLIES. 
Section 111 of the Public Utility Regulatory Policies Act of 
16 use 2621. 
1978 (16 U.S.C. 2601 and following) is amended by inserting the 
following new paragraph after paragraph (9): 
"(10) CONSIDERATION OF THE EFFECTS OF WHOLESALE POWER 
PURCHASES ON UTILITY COST OF CAPITAL; EFFECTS OF LEVERAGED 
CAPITAL STRUCTURES ON THE RELIABILITY OF WHOLESALE POWER 
SELLERS; AND ASSURANCE OF ADEQUATE FUEL SUPPLIES.—(A) 
To the extent that a State regulatory authority requires or 
allows electric utilities for which it has ratemaking authority 
to consider the purchase of long-term wholesale power supplies 
as a means of meeting electric demand, such authority shall 
perform a general evaluation of: 
"(i) the potential for increases or decreases in the costs 
of capital for such utilities, and any resulting increases 
or decreases in the retail rates paid by electric consumers, 
that may result from purchases of long-term wholesale 
power supplies in lieu of the construction of new generation 
facilities oy such utilities; 
"(ii) whether the use by exempt wholesale generators 
(as defined in section 32 of the Public Utility Holding 
Company Act of 1935) of capital structures which employ 
proportionally greater amounts of debt than the capital 
structures of such utilities threatens reliability or provides 
an unfair advantage for exempt wholesale generators over 
such utilities; 
"(iii) whether to implement procedures for the advance 
approval or disapproval of the purchase of a particular 
long-term wholesale power supply; and 
"(iv) whether to require as a condition for the approval 
of the purchase of power that there be reasonable assur-
ances of fuel supply adequacy. 
"(B) For purposes of implementing the provisions of this 
paragraph, any reference contained in this section to the date 
of enactment of the Public Utility Regulatory Policies Act of 
1978 shall be deemed to be a reference to the date of enactment 
of this paragraph. 
"(C) Notwithstanding any other provision of Federal law, 
nothing in this paragraph shall prevent a State regulatory 
authoritv from taking such action, including action with respect 
to the allowable capital structure of exempt wholesale genera-
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2911 
tors, as such State regulatory authority may determine to be 
in the public interest as a result of performing evaluations 
imder the standards of subparagraph (A). 
"(D) Notwithstanding section 124 and paragraphs (1) and 
(2) of section 112(a), each State regulatory authority shall con-
sider and make a determination concerning the standards of 
subparagraph (A) in accordance with the requirements of sub-
sections (a) and (b) of this section, without regard to any 
proceedings commenced prior to the enactment of this para-
graph. 
''(E) Notwithstanding subsections (b) and (c) of section 112, 
each State regulatory authority shall consider and make a 
determination concerning whether it is appropriate to imple-
ment the standards set out in subparagraph (A) not later 
than one year after the date of enactment of this paragraph.". 
SEC. 713. PUBUC UTILITY HOLDING COMPANIES TO OWN INTERESTS 
IN COGENERATION FACILITIES. 
Public Law 99-186 (99 Stat. 1180, as amended by Public Law 
99-553,100 Stat. 3087), is amended to read as follows: 
15 use 79k note. 
"SECTION 1. Notwithstanding section ll(bXl) of the Public Util-
ity Holding Company Act of 1935, a company registered under 
said Act, or a subsidiary company of such registered company, 
may acquire or retain, in any geographic area, an interest in any 
qualifying cogeneration facilities and qualifying small power produc-
tion facilities as defined pursuant to the Public Utility Regulatory 
Policies Act of 1978, and shall qualify for any exemption relating 
to the Public Utility Holding Company Act of 1935 prescribed 
pursuant to section 210 of the Public Utility Regulatory Policies 
Act of 1978. 
"SEC 2. Nothing herein shall be construed to affect the 
applicabiUty of section 3(17XC) or section 3(18XB) of the Federal 
Power Act or any provision of the Public Utility Holding Company 
Act of 1935, other than section ll(bXl), to the acquisition or reten-
tion of any such interest by any such company.". 
SEC. 714. BOOKS AND RECORDS. 
Section 201 of the Federal Power Act is amended by adding 1
6 U
S
C 824. 
the following new subsection at the end thereof: 
"(g) BOOKS AND RECORDS.—(1) Upon written order of a State 
commission, a State commission may examine the books, accounts, 
memoranda, contracts, and records o
f
— 
"(A) an electric utility company subject to its regulatory 
authority imder State law, 
"(B) any exempt wholesale generator selling energy at 
wholesale to such electric utility, and 
"(C) any electric utiUty company, or holding company 
thereof, which is an associate company or affiliate otan exempt 
wholesale generator which sells electric energy to an electric 
utility company referred to in subparagraph (A), 
wherever located, if such examination is required for the effective 
discharge of the State commission's regulatory responsibilities 
affecting the provision of electric service. 
"(2) Where a State commission issues an order pursuant to 
paragraph (1), the State commission shall not publicly disclose 
trade secrets or sensitive commercial information. 
106 STAT. 2912 
PUBLIC LAW 102-486—OCT. 24, 1992 
"(3) Anv United States district court located in the State in 
which the State commission referred to in para^aph (1) is located 
shall have jurisdiction to enforce compliance with this subsection. 
"(4) Nothing in this section shall— 
"(A) preempt applicable State law concerning the provision 
of records and other information; or 
"(B) in any way limit rights to obtain records and other 
information under Federal law, contracts, or otherwise. 
"(5) As used in this subsection the terms 'affiliate', 'associate 
company*, 'electric utility company*, 'holding company*, 'subsidiary 
company*, and 'exempt wholesale generator' shall have the same 
meaning as when used in the Public Utility Holding Company 
Act of 1935.**. 
SEC. 715. INVESTMENT IN FOREIGN UTILITIES. 
The Public Utility Holding Company Act of 1935 (15 U.S.C. 
79 et seq.) is amended by inserting after section 32 the following 
new section: 
15USC79z-5b. 
"SEC. 33. TREATMENT OF FOREIGN UTIUTIES. 
"(a) EXEMPTIONS FOR FOREIGN UTILITY COMPANIES.— 
"(1) IN GENERAL.—^A foreign utility company shall be 
exempt from all of the provisions of this Act, except as otherwise 
provided under this section, and shall not, for any purpose 
under this Act, be deemed to be a public utility company 
under section 2(a)(5), notwithstanding that the foreign utility 
company may be a subsidiary company, an affiliate, or an 
associate company of a holding company or of a public utility 
company. 
"(2) STATE COMMISSION CERTIFICATION.—Section (a)(1) shall 
not apply or be effective unless every State commission having 
jurisdiction over the retail electric or gas rates of a public 
utility company that is an associate company or an affiliate 
of a company otherwise exempted under section (a)(1) (other 
than a public utility company that is an associate company 
or an affiliate of a registered holding company) has certified 
to the Commission that it has the authority and resources 
to protect ratepayers subject to its jurisdiction and that it 
. 
intends to exercise its authority. Sucn certification, upon the 
filing of a notice by such State commission, may be revised 
or withdrawn by the State commission prospectively as to any 
future acquisition. The requirement of State certification shall 
be deemed satisfied if the relevant State commission had, prior 
to the date of enactment of this section, on the basis of pre-
: 
scribed conditions of general applicability, determined that rate-
payers of a public utility company are adequately insulated 
•- from the effiBcts of diversification and the diversification would 
not impair the ability of the State commission to regulate 
effectively the operations of such company. 
"(3) DEFINITION.—For purposes of this section, the term 
'foreign utility company* means any company that— 
"(A) owns or operates facilities that are not located 
in any State and that are used for the generation, trans-
mission, or distribution of electric energy for sale or the 
distribution at retail of natural or manufactured gas for 
'•'''•-. 
heat, light, or power, if such company— 
"(i) derives no part of its income, directly or 
indirectly, from the generation, transmission, or dis-
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2913 
tribution of electric energy for sale or the distribution 
at retail of natural or manufactured gas for heat, light, 
or power, within the United States; and 
"(ii) neither the company nor any of its subsidiary 
companies is a public utility company operating in 
the United States; and 
''(B) provides notice to the Commission, in such form 
as the Commission may prescribe, that such company is 
a foreign utility company. 
"(b) OWNERSHIP OF FOREIGN UTILITY COMPANIES BY EXEMPT 
HOLDING COMPANIES.—^Notwithstanding any provision of this Act 
except as provided under this section, a holding company that 
is exempt under section 3 of the Act shall be permitted without 
condition or limitation under the Act to acquire and maintain 
£ui interest in the business of one or more foreign utility companies. 
"(c) REGISTERED HOLDING COMPANIES.— 
"(1) OWNERSHIP OF FOREIGN UTILITY COMPANIES BY REG-
ISTERED HOLDING COMPANIES.—^Notwithstanding any provision 
of this Act except as otherwise provided under this section, 
a registered holding company shall be permitted as of the 
date of enactment of this section (without the need to apply 
for, or receive approval from the Commission) to acquire and 
hold the securities or an interest in the business, of one or 
more foreign utility companies. The Conmiission shall promul- Regulations. 
gate rules or regulations regarding registered holding compa-
nies' acquisition of interests in foreign utility companies which 
shall provide for the protection of the customers of a public 
utility company which is an associate company of a foreign 
utility company and the mainteneuice of the financial integrity 
of the registered holding company system. 
"(2) ISSUANCE OF SECURITIES.—The issuance of securities 
by a registered holding company for purposes of financing the 
acquisition of a foreign utility company, the guarantee of securi-
ties of a foreign utility company by a registered holding com-
pany, the entering into service, sales, or construction contracts, 
and the creation or maintenance of any other relationship 
between a foreign utility company and a registered holding 
company, its afHliates and associate companies, shall remain 
subject to the jurisdiction of the Commission under this Act 
(imless otherwise exempted under this Act, in the case of a 
transaction with an affiliate or associate company located out-
side of the United States). Any State commission with jurisdic-
tion over the retail rates of a public utility company which 
is part of a registered holding company system may make 
such recommendations to the Commission regarding the reg-
istered holding company's relationship to a foreign utility com-
pany, and the Commission shall reasonably and fully consider 
such State recommendation. 
"(3) CONSTRUCTION.—^Any interest in the business of 1 or 
more foreign utility companies, or 1 or more companies orga-
nized exclusively to own, directly or indirectly, the securities 
or other interest in a foreign utility company, shall for all 
purposes of this Act, be considered to be— 
"(A) consistent with the operation of a single integrated 
public utility system, within the meaning of section 11; 
and 
106 STAT. 2914 
PUBLIC LAW 102-486—OCT. 24, 1992 
"(B) reasonably incidental, or economically necessary 
or appropriate, to the operations of an integrated public 
utility system, within the meaning of section 11. 
**(d) EFFECT ON EXISTING LAW; NO STATE PREEMPTION.—Noth-
ing in this section shall— 
"(1) preclude any person from qualifying for or maintaining 
any exemption otherwise provided for under this Act or the 
rules, regulations, or orders promulgated or issued under this 
Act; or 
"(2) be deemed or construed to limit the authority of any 
State (including any State regulatory authority) with respect 
to— 
"(A) any public utility company or holding company 
subject to such State's jurisdiction; or 
"(B) any transaction between any foreign utility com-
pany (or any afGliate or associate company thereof) and 
any public utility company or holding company subject 
to such State's jurisdiction. 
"(e) REPORTING REQUIREMENTS.— 
"(1) FILING OF REPORTS.—A public utility company that 
is an associate company of a foreign utility company shall 
file with the Commission such reports (with respect to such 
foreign utility company) as the Commission may by rules, regu-
lations, or order prescribe as necessary or appropriate in the 
public interest or for the protection of investors or consumers. 
"(2) NOTICE OF ACQUISITIONS.—Not later than 30 days after 
the consummation of the acquisition of an interest in a foreign 
utility company by an associate company of a public utility 
company that is subject to the jurisdiction of a State commission 
with respect to its retail electric or gas rates or by such public 
utility company, such associate company or such public utility 
company, shall provide notice of such acquisition to every State 
commission having jurisdiction over the retell electric or gas 
rates of such public utility company, in such form as may 
be prescribed by the Stete commission. 
"(f) PROHIBITION ON ASSUMPTION OF LIABILITIES.— 
1 
"(1) IN GENERAL.—^No public utility company that is subject 
to the jurisdiction of a Stete commission with respect to ite 
retell electric or gas rates shall issue any security for the 
1 ' 
purpose of financing the acquisition, or for the purposes of 
; 
financing the ownership or operation, of a foreign utility com-
pany, nor shall any such public utility company assume any 
obligation or liability as guarantor, endorser, surety, or other-
wise in respect of any security of a foreign utility company. 
"(2) 
EXCEPTION FOR HOLDING COMPANIES WHICH ARE 
PREDOMINANTLY PUBUC UTILITY COMPANIES.—Subsection (fKD 
shall not apply if: 
"(A) the public utility company that is subject to the 
jurisdiction of a Stete commission vdth respect to ite retail 
electric or gas rates is a holding compemy and is not an 
affiliate imder section 2(aXllXB) of another holding com-
pany or is not subject to regulation as a holding company 
and has no affiliate as defined in section 2(aXllXA) that 
is a public utility company subject to the jurisdiction of 
a Stete commission with respect to ite retell electric or 
gas rates; and 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2915 
"(B) each State commission having jurisdiction with 
respect to the retail electric and gas rates of such public 
utiuty company expressly permits sudi public utility to 
engage in a transaction otherwise prohibited under section 
(fXD; and 
"(C) the transaction (aggregated with all other then-
outstanding transactions exempted under this subsection) 
does not exceed 5 per centum of the then-outstanding total 
capitalization of the public utility. 
"(g) 
PROHIBITION ON PLEDGING OR ENCUMBERING UTILITY 
ASSETS.—^No public utility company that is subject to the jurisdic-
tion of a State commission with respect to its retail electric or 
gas rates shall pledge or encumber any utility assets or utility 
assets of any subsidiary thereof for the benefit of an associate 
foreign utility company.". 
Subtitle B—^Federal Power Act; Interstate 
Commerce in Electricity 
SEC. 721. AMENDMENTS TO SECTION 211 OF FEDERAL POWER ACT. 
Section 211 of the Federal Power Act (16 U.S.C. 824j) is amend-
ed as follows: 
(1) The first sentence of subsection (a) is amended to read 
as follows: "Any electric utility, Federal power marketing 
agency, or any other person generating electric energy for sale 
for resale, may apply to the Commission for an order under 
this subsection requiring a transmitting utility to provide trans-
mission services (including any enlargement of transmission 
capacity necessary to provide such services) to the applicant.". 
(2) In the second sentence of subsection (a), stnke "the 
Commission may" and all that follows and insert "the Commis-
sion may issue such order if it finds that such order meets 
the requirements of section 212, and would otherwise be in 
the public interest. No order may be issued under this sub-
section imless the applicant has made a request for trans-
mission services to tne transmitting utility that would be the 
subject of such order at least 60 days prior to its filing of 
an application for such order.". 
(3) Amend subsection (b) to read as follows: 
"(b) RELIABILITY OF ELECTRIC SERVICE.—NO order may be 
issued imder this section or section 210 if, after giving consideration 
to consistently applied regional or national reliability standards, 
guidelines, or criteria, the Commission finds that such order would 
unreasonably impair the continued reliability of electric systems 
affected by the order.". 
(4) In subsection (c)— 
(A) Strike out paragraph (1). 
(B) In paragraph (2) strike "which requires the electric" 
and insert which requires the transmitting". 
(C) Strike out paragraphs (3) and (4). 
(5) In subsection (d)— 
(A) In the first sentence of paragraph (1), strike "elec-
tric" and insert "transmitting" in each place it appears. 
(B) In the second sentence of paragraph (1) before 
"and each affected electric utility," insert each affected 
transmitting utility,". 
106 STAT. 2916 
PUBLIC LAW 102-486—OCT. 24, 1992 
(C) In paragraph (3), strike "electric" and insert 
"transmitting". 
(D) Strike the period in subparagraph (B) of paragraph 
(1) and insert ", or" and after subparagraph (B) insert 
the following new subparagraph: 
"(C) the ordered transmission services require enlargement 
of transmission capacity £uid the transmitting utility subject 
to the order has failed, aft^r making a good faith effort, to 
obtain the necessary approvals or property rights under 
applicable Federal, State, and local laws.". 
SEC. 722. TRANSMISSION SERVICES. 
16 use 824k. 
Section 212 of the Federal Power Act is amended as follows: 
(1) Strike subsections (a) and (b) and insert the following: 
"(a) RATES, CHARGES, TERMS, AND CONDITIONS FOR WHOLESALE 
TRANSMISSION SERVICES.—^An order under section 211 shall require 
the transmitting utility subject to the order to provide wholesale 
transmission services at rates, charges, terms, and conditions which 
permit the recovery by such utility of all the costs incurred in 
connection with the transmission services and necessary associated 
services, including, but not limited to, an appropriate share, if 
any, of legitimate, verifiable and economic costs, including taking 
into account any benefits to the transmission system of providing 
the transmission service, and the costs of any enlargement of trans-
mission facilities. Such rates, charges, terms, and conditions shall 
promote the economically efficient transmission and generation of 
electricity and shall be just and reasonable, and not unduly discrimi-
natory or preferential. Rates, charges, terms, and conditions for 
transmission services provided pursuant to an order under section 
211 shall ensure that, to the extent practicable, costs incurred 
in providing the wholesale transmission services, and properly 
allocable to the provision of such services, are recovered from the 
applicant for such order and not from a transmitting utiUty's exist-
ing wholesale, retail, and transmission customers.". 
(2) Subsection (e) is amended to read as follows: 
"(e) SAVINGS PROVISIONS.—(1) No provision of section 210, 211, 
214, or this section shall be treated as requiring any person to 
utilize the authority of any such section in lieu of any other author-
ity of law. Except as provided in section 210, 211, 214, or this 
section, such sections shall not be construed as limiting or impairing 
any authority of the Commission under any other provision of 
law. 
"(2) Sections 210, 211, 213, 214, and this section, shall not 
be construed to modify, impair, or supersede the antitrust laws. 
For purposes of this section, the term 'antitrust laws' has the 
meaning given in subsection (a) of the first sentence of the Clajrton 
Act, except that such term includes section 5 of the Federal Trade 
Commission Act to the extent that such section relates to unfair 
methods of competition.". 
(3) Add the following new subsections at the end thereof: 
"(g) 
PROHIBITION ON ORDERS INCONSISTENT WITH RETAIL 
MARKETING AREAS.—No order may be issued imder this Act which 
is inconsistent with any Stete law which governs the retell market-
ing areas of electric utilities. 
"(h) PROHIBITION ON MANDATORY RETAIL WHEELING AND SHAM 
WHOLESALE TRANSACTIONS.—No order issued imder this Act shall 
be conditioned upon or require the transmission of electric energy: 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2917 
"(1) directly to an ultimate consumer, or 
"(2) to, or for the benefit of, an entity if such electric 
energy would be sold by such entity directly to an ultimate 
consumer, unless: 
"(A) such entity is a Federal power marketing agency; 
the Tennessee Valley Authority; a State or any political 
subdivision of a State (or an agency, authority, or 
instnmientality of a State or a political subdivision); a 
corporation or association that has ever received a loan 
for the purposes of providing electric service from the 
Administrator of the Rural Electrification Administration 
under the Rural Electrification Act of 1936; a person having 
an obligation arising under State or local law (exclusive 
of an obligation arising solely from a contract entered into 
by such person) to provide electric service to the public; 
or any corporation or association which is wholly owned, 
directly or indirectly, by any one or more of the foregoing; 
and 
"(B) such entity was providing electric service to such 
ultimate consumer on the date of enactment of this sub-
section or would utilize transmission or distribution facili-
ties that it owns or controls to deliver all such electric 
energy to such electric consumer. 
Nothing in this subsection shall affect any authority of any State 
or local government under State law concerning the transmission 
of electric energy directly to an ultimate consumer.". 
"(i) LAWS APPLICABLE TO FEDERAL COLUMBIA RIVER TRANS-
MISSION SYSTEM.—(1) The Commission shall have authority pursu-
ant to section 210, section 211, this section, and section 213 to 
(A) order the Administrator of the Bonneville Power Administration 
to provide transmission service and (B) establish the terms and 
conditions of such service. In applying such sections to the Federal 
Columbia River Transmission System, the Commission shall assure 
t h a t ^ 
"(i) the provisions of otherwise applicable Federal laws 
shall continue in full force and effect and shall continue to 
be applicable to the system; and 
"(ii) the rates for the transmission of electric power on 
the system shall be governed only by such otherwise applicable 
provisions of law and not by any provision of section 210, 
section 211, this section, or section 213, except that no rate 
for the transmission of power on the system shall be unjust, 
unreasonable, or unduly discriminatory or preferential, as 
determined by the Commission. 
"(2) Notwithstanding any other provision of this Act with 
respect to the procedures for the determination of terms and condi-
tions for transmission service— 
"(A) when the Administrator of the Bonneville Power 
Administration either (i) in response to a written reauest for 
specific transmission service terms and conditions does not 
offer the requested terms and conditions, or (ii) proposes to 
estabUsh terms and conditions of general applicability for trans-
mission service on the Federal Columbia River Transmission 
System, then the Administrator may provide opportunity for 
a hearing and, in so doing, shall— 
"(I) give notice in the Federal Register and state in 
such notice the written explanation of the reasons why 
106 STAT. 2918 
PUBLIC LAW 102-486—OCT. 24, 1992 
the specific terms and conditions for transmission services 
are not being offered or are being proposed; 
"(11) adnere to the procedural requirements of para-
graphs (1) through (3) of section 7(i) of the Pacific North-
west Electric Power Planning and Conservation Act (16 
U.S.C. 839(i) (1) through (3)), except that the hearing officer 
shall, unless the hearing officer becomes unavailable to 
the agency, make a recommended decision to the Adminis-
trator that states the hearing officer's findings and conclu-
sions, and the reasons or basis thereof, on all material 
issues of fact, law, or discretion presented on the record; 
and 
"(III) make a determination, setting forth the reasons 
for reaching any findings and conclusions which may differ 
from those of the hearing officer, based on the hearing 
record, consideration of the hearing officer's recommended 
decision, section 211 and this section, as amended by the 
Energy Policy Act of 1992, and the provisions of law as 
preserved in this section; and 
"(B) if application is made to the Commission under section 
211 for transmission service under terms and conditions dif-
ferent than those offered by the Administrator, or following 
the denial of a request for transmission service by the Adminis-
trator, and such application is filed within 60 days of the 
Administrator's final determination and in accordance with 
Commission procedures, the Commission shall— 
"(i) in the event the Administrator has conducted a 
hearing as herein provided for (I) accord parties to the 
Administrator's hearing the opportunity to offer for the 
Commission record materials excluded by the Adminis-
trator from the hearing record, (II) accord such parties 
the opportunity to submit for the Commission record com-
ments on appropriate terms and conditions, (III) afford 
those parties the opportunity^ for a hearing if and to the 
extent that the Commission nnds the Administrator's hear-
ing record to be inadequate to support a decision by the 
Commission, and (IV) establish terms and conditions for 
or deny transmission service based on the Administrator's 
hearing record, the Commission record, section 211 and 
this section, as amended by the Energy Policy Act of 1992, 
and the provisions of law as preserved in this section, 
or 
"(ii) in the event the Administrator has not conducted 
a hearing as herein provided for, determine whether to 
issue an order for transmission service in accordance with 
section 211 and this section, including providing the oppor-
tunity for a hearing. 
"(3) Notwithstanding those provisions of section 313(b) of this 
Act (16 U.S.C. 8251) which designate the court in which review 
may be obtained, any party to a proceeding concerning transmission 
service sought to be furnished by the Administrator of the Bonne-
ville Power Administration seeking review of an order issued bv 
the Commission in such proceeding shall obtain a review of sucn 
order in the United States Covirt of Appeals for the Pacific North-
west, as that region is defined by section 3(14) of the Pacific North-
west Electric Power Planning and Conservation Act (16 U.S.C. 
839a(14)). 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2919 
"(4) To the extent the Administrator of the Bonneville Power 
Administration cannot be required under section 211, as a result 
of the Administrator's other statutory mandates, either to (A) pro-
vide transmission service to an applicant which the Commission 
would otherwise order, or (B) provide such service under rates, 
terms, and conditions which the Commission would otherwise 
require, the applicant shall not be required to provide similar 
transmission services to the Administrator or to provide such serv-
ices under similar rates, terms, and conditions. 
"(5) The Commission shall not issue any order under section 
210, section 211, this section, or section 213 requiring the Adminis-
trator of the Bonneville Power Administration to provide trans-
mission service if such an order would impair the Administrator's 
ability to provide such transmission service to the Administrator's 
power and transmission customers in the Pacific Northwest, as 
that region is defined in section 3(14) of the Pacific Northwest 
Electric Power Planning and Conservation Act (16 U.S.C. 839a(14)), 
as is needed to assure adequate and reliable service to loads in 
that region. 
"(j) EQUITABILITY WITHIN TERRITORY RESTRICTED ELECTRIC SYS-
TEMS.—^With respect to an electric utility which is prohibited by 
Federal law from being a source of power supply, either directly 
or through a distributor of its electric energy, outside an area 
set forth in such law, no order issued under section 211 may 
require such electric utility (or a distributor of such electric utility) 
to provide transmission services to another entity if the electric 
energy to be transmitted will be consumed within the area set 
forth in such Federal law, unless the order is in furtherance of 
a sale of electric energy to that electric utility: Provided, however, 
That the foregoing provision shall not apply to any area served 
at retail by an electric transmission system which was such a 
distributor on the date of enactment of this subsection and which 
before October 1, 1991, gave its notice of termination under its 
power supply contract with such electric utility, 
"(k) ERGOT UTILITIES.— 
"(1) RATES.—^Any order under section 211 requiring provi-
sion of transmission services in whole or in part within ERCOT 
shall provide that any ERCOT utility which is not a public 
utility and the transmission facilities of which are actually 
used for such transmission service is entitled to receive com-
pensation based, insofar as practicable and consistent with 
subsection (a), on the transmission ratemaking methodology 
used by the Public Utility Commission of Texas. 
"(2) DEFINITIONS.—For purposes of this subsection— 
"(A) the term 'ERCJOr means the Electric ReliabiUty 
Coimcil of Texas; and 
"(B) the term 'ERCOT utility* means a transmitting 
utility which is a member of ERCOT.". 
SEC. 723. INFORMATION REQUIREMENTS. 
Part II of the Federal Power Act is amended by adding the 
following new section after section 212: 
"SEC. 213. INFORMATION REQUIREMENTS. 
16 USC 824/. 
"(a) 
REQUESTS FOR WHOLESALE TRANSMISSION SERVICES.— 
Whenever any electric utility. Federal power marketing agency, 
or any other person generating electric energy for sale for resale 
makes a good faith request to a transmitting utility to provide 
106 STAT. 2920 
PUBUG LAW 102-486—OCT. 24, 1992 
Regulations. 
16 u s e 824m. 
wholesale transmission services and requests specific rates and 
charges, and other terms and conditions, unless the transmitting 
utility agrees to provide such services at rates, charges, terms 
and conmtions acceptable to such person, the transmitting utility 
shall, within 60 days of its receipt of the request, or other mutually 
agreed upon period, provide such person with a detailed written 
explanation, with specific reference to the facts and circumstances 
of the request, stating (1) the transmitting utility's basis for tiie 
proposed rates, charges, terms, and conditions for such services, 
and (2) its analysis of any physical or other constraints affecting 
the provision of such services. 
"(b) TRANSMISSION CAPACITY AND CONSTRAINTS.—Not later than 
1 year after the enactment of this section, the Commission shall 
promulgate a rule requiring that information be submitted annually 
to the Commission by transmitting utilities which is adequate to 
inform potential transmission customers, Stote regulatory authori-
ties, and the public of potentially available transmission capacity 
and known constraints.". 
SEC. 724. SALES BY EXEMPT WHOLESALE GENERATORS. 
Part II of the Federal Power Act is amended by adding the 
following new section after section 213: 
'^EC. 214. SALES BY EXEMPT WHOLESALE GENERATORS. 
"No rate or charge received by an exempt wholesale generator 
for the sale of electric energy shall be lawful under section 205 
if, after notice and opportunity for hearing, the Commission finds 
that such rate or charge results from the receipt of any undue 
preference or advantage from an electric utility which is an associate 
company or an affiliate of the exempt wholesale generator. For 
purposes of this section, the terms 'associate company^ and 'affiliate' 
shall have the seime meaning as provided in section 2(a) of the 
Public Utility Holding Company Act of 1935.". 
SEC. 725. PENALTIES. 
(a) EXISTING PENALTIES NOT APPUCABLE TO TRANSMISSION 
PROVISIONS.—Sections 315 and 316 of the Federal Power Act are 
each amended by adding the following at the end thereof: 
"(c) This subsection shall not apply in the case of any provision 
of section 211, 212, 213, or 214 or any rule or order issued under 
any such provision.". 
(b) PENALTIES APPLICABLE TO TRANSMISSION PROVISIONS.—Title 
III of the Federal Power Act is amended by inserting the following 
new section after section 316: 
16USC8250-1. 
''SEC. SieA. ENFORCEMENT OF CERTAIN PROVISIONS. 
"(a) VIOLATIONS.—It shall be unlawful for any person to violate 
anv provision of section 211, 212, 213, or 214 or any rule or 
order issued under any such provision. 
"(b) CIVIL PENALTIES.—^Any person who violates any provision 
of section 211, 212, 213, or 214 or any provision of any rule or 
order thereunder shall be subject to a civil penalty of not more 
than $10,000 for each day that such violation continues. Such 
penalty shall be assessed by the Commission, after notice and 
opportunity for public hearing, in accordance with the same provi-
sions as are applicable under section 31(d) in the case or civil 
penalties assessed under section 31. In determining the amount 
of a proposed penalty, the Commission shall take into consideration 
16 use 825n, 
825o. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2921 
the seriousness of the violation and the efforts of such person 
to remedy the violation in a timely manner.". 
SEC. 726. DEFINITIONS. 
(a) ADDITIONAL DEFINITIONS.—Section 3 of the Federal Power 
Act is amended by adding the following at the end thereof: 
16 use 796. 
"(23) TRANSMITTING UTILITY.—The term 'transmitting util-
ity means any electric utilitv, qualifying cogeneration facility, 
qualifying small power production lacifity, or Federal power 
marketing agency which owns or operates electric power trans-
mission facilities which are used for the sale of electric energy 
at wholesale. 
"(24) 
WHOLESALE 
TRANSMISSION SERVICES.—The 
term 
'wholesale transmission services' means the transmission of 
electric energy sold, or to be sold, at wholesale in interstate 
commerce. 
"(25) EXEMPT WHOLESALE GENERATOR.—The term 'exempt 
wholesale generator' shall have the meaning provided by section 
32 of the Public Utility Holding Company Act of 1935.". 
(b) CLARIFICATION OF TERMS.—Section 3(22) of the Federal 
Power Act is amended by inserting "(including any municipality)" 
after "State agency". 
Subtitle C—State and Local Authorities 
SEC. 731. STATE AUTHORITIES. 
15 USC 79 note. 
Nothing in this title or in any amendment made by this title 
shall be construed as affecting or intending to affect, or in any 
way to interfere with, the authority of any State or local government 
relating to environmental protection or the siting of facilities. 
TITLE VIII—HIGH-LEVEL RADIOACTIVE 
WASTE 
SEC. 801. NUCLEAR WASTE DISPOSAL. 
42 USC 10141 
(a) ENVIRONMENTAL PROTECTION AGENCY STANDARDS.— 
(1) PROMULGATION.—Notwithstanding the provisions of sec-
tion 121(a) of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 
10141(a)), section 161 b. of the Atomic Energy Act of 1954 
(42 U.S.C. 2201(b)), and any other authority of the Adminis-
trator of the Environmental Protection Agency to set generally 
applicable standards for the Yucca Mountain site, the Adminis-
trator shall, based upon and consistent with the findings and 
recommendations of the National Academy of Sciences, promul-
gate, by rule, public health and safety standards for protection 
of the public from releases from radioactive materials stored 
or disposed of in the repository at the Yucca Mountain site. 
Such standards shall prescribe the maximum annual effective 
dose equivalent to individual members of the public from 
releases to the accessible environment from radioactive mate-
rials stored or disposed of in the repository. The standards 
shall be promulgated not later than 1 year after the Adminis-
trator receives the findings and recommendations of the 
National Academy of Sciences under paragraph (2) and shall 
106 STAT. 2922 
PUBLIC LAW 102-486—OCT. 24, 1992 
^ 
be the only such standards applicable to the Yucca Mountain 
site. 
(2) STUDY BY NATIONAL ACADEMY OF SCIENCES.—Within 
90 days after the date of the enactment of this Act, the Adminis-
trator shall contract with the National Academy of Sciences 
to conduct a study to provide, by not later than December 
31, 1993, findings and recommendations on reasonable stand-
ards for protection of the public health and safety, including— 
(A) whether a health-based standard based upon doses 
to individual members of the public from releases to the 
V 
accessible environment (as that term is defined in the 
regulations contained in subpart B of part 191 of title 
40, Code of Federal Regulations, as in effect on November 
18, 1985) will provide a reasonable standard for protection 
of the health and safety of the general public; 
(B) whether it is reasonable to assume that a system 
for post-closure oversight of the repository can be devel-
oped, based upon active institutional controls, that will 
prevent an unreasonable risk of breaching the repositor^s 
engineered or geologic barriers or increasing the exposure 
of individual members of the public to radiation beyond 
allowable limits; and 
(C) whether it is possible to make scientifically support-
<A: able predictions of the probability that the repository's 
engineered or geologic barriers will be breached as a result 
of human intrusion over a period of 10,000 years. 
(3) APPLICABILITY.—^The provisions of this section shall 
apply to the Yucca Mountain site, rather than any other author-
ity of the Administrator to set generally applicable standards 
for radiation protection. 
(b) NUCLEAR REGULATORY COMMISSION REQUIREMENTS AND 
CRITERIA.— 
(1) MODIFICATIONS.—Not later than 1 year after the 
Administrator promulgates standards imder subsection (a), the 
Nuclear Regulatory Commission shall, by rule, modify its tech-
nical requirements and criteria under section 121(b) of the 
Nuclear Waste Policy Act of 1982 (42 U.S.C. 10141(b)), as 
necessary, to be consistent with the Administrator's standards 
promulgated under subsection (a). 
(2) REQUIRED ASSUMPTIONS.—The Commission's require-
ments and criteria shall assume, to the extent consistent wiUi 
the findings and recommendations of the National Academy 
of Sciences, that, following repository closure, the inclusion 
of engineered barriers and the Secretary 
s post-closure oversight 
of the Yucca Moimtain site, in accordance vdth subsection (c), 
shall be sufficient to— 
(A) prevent any activity at the site that poses an 
unreasonable risk of breaching the repositor^s engineered 
or geologic barriers; and 
(B) prevent any increase in the exposure of individual 
members of the public to radiation beyond allowable limits. 
(c) POST-CLOSURE OVERSIGHT.—Following repository closure, 
the Secretary of Energy shall continue to oversee the Yucca Moim-
tain site to prevent any activity at the site that poses an imreason-
able risk of— 
(1) breaching the repository's engineered or geologic bar-
riers; or 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2923 
(2) increasing the exposure of individual members of the 
public to radiation beyond allowable limits. 
SEC. 802. OFFICE OF THE NUCLEAR WASTE NEGOTIATOR. 
(a) EXTENSION.—Section 410 of the Nuclear Waste Policy Act 
of 1982 (42 U.S.C. 10250) is amended by striking "5 years" and 
inserting "7 years". 
(b) DEFINITION OF STATE.—Section 401 of the Nuclear Waste 
PoUcy Act of 1982 (42 U.S.C. 10241) is amended— 
(1) by striking ''States," the first place it appears and 
inserting "States and"; and 
(2) by inserting a period after "District of Columbia" and 
striking the remainder of the sentence. 
SEC. 803. NUCLEAR WASTE MANAGEMENT PLAN. 
42 USCIOIOI 
(a) PREPARATION AND SUBMISSION OF REPORT.—^The Secretary 
of Energy, in consultation with the Nuclear Regulatory Commission 
and the Environmental Protection Agency, shall prepare and submit 
to the Congress a report on whether current programs and plans 
for management of nuclear waste as mandated by the Nuclear 
Waste Policy Act of 1982 (42 U.S.C. 10101 et seq.) are adequate 
for management of any additional volumes or categories of nuclear 
waste that might be generated by any new nuclear power plants 
that might be constructed and licensed after the date of the enact-
ment of this Act. The Secretary shall prepare the report for submis-
sion to the President and the Congress within 1 year after the 
date of the enactment of this Act. The report shall examine any 
new relevant issues related to management of spent nuclear fuel 
and high-level radioactive waste that might be raised by the 
addition of new nuclear-generated electric capacity, including 
anticipated increased volumes of spent nuclear fuel or high-level 
radioactive waste, any need for additional interim storage capacity 
prior to final disposal, transportation of additional volumes of waste, 
and any need for additional repositories for deep geologic disposal. 
(b) OPPORTUNITY FOR PUBLIC COMMENT.—In preparation of the 
report required under subsection (a), the Secretary of Energy shall 
offer members of the public an opportunity to provide information 
£uid comment and shall solicit the views of the Nuclear Regulatory 
Commission, the Environmental Protection Agency, and other 
interested parties. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated such sums as may be necessary to carry out 
this section. 
TITLE IX—UNITED STATES 
ENRICHMENT CORPORATION 
SEC. 901. ESTABUSHMENT OF THE UNITED STATES ENRICHMENT 
CORPORATION. 
The Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.) is 
amended by adding at the end the following new title: 
106 STAT. 2924 
PUBLIC LAW 102-486—OCT. 24, 1992 
^TITLE II—UNITED STATES 
ENRICHMENT CORPORATION 
"CHAPTER 
22—GENERAL 
PROVISIONS 
42 use 2297. 
'^EC. 1201. DEFINITIONS. 
"For purposes of this title: 
(1) The term 'alternative technologies for uranium enrich-
ment' means technologies to enrich uranium by methods other 
than the gaseous diffusion process. 
"(2) The term 'AVLIS' means atomic vapor laser isotope 
separation technology. 
"(3) The term 'Board* means the Board of Directors of 
the Corporation established under section 1304. 
"(4) The term 'Corporation' means the United States 
Enrichment Corporation. 
"(5) The term 'corrective actions' has the meaning given 
such term by the Administrator of the Environmental Protec-
tion Agency imder section 3004(u) of the Solid Waste Disposal 
Act (42 U.S.C. 6924(u)). 
"(6) The term 'decontamination and decommissioning* 
means those activities, other than response actions or corrective 
actions, luidertaken to decontaminate and decommission 
inactive uranium enrichment facilities that have residual 
radioactive or mixed radioactive and hazardous chemical 
contamination, including depleted taiUngs. 
"(7) The term 'Department' means the Department of 
Energy. 
"(8) The term liighly enriched uranium' means uranium 
enriched to 20 percent or more of the uranium-235 isotope. 
"(9) The term low-enriched uranium' means uranium 
enriched to less than 20 percent of the uranium-235 isotope. 
"(10) The term 'releases' has the meaning given the term 
'release' in section 101(22) of the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
9601(22)). 
"(11) The term 'remedial action' has the meaning given 
such term in section 101(24) of the Comprehensive Environ-
mental Response, Compensation, and Liability Act of 1980 (42 
U.S.C. 9601(24)). 
"(12) The term 'response actions' has the meaning given 
the term 'response' in section 101(25) of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 
1980 (42 U.S.C. 9601(25)). 
"(13) The term 'Secretary means the Secretary of Energy. 
"(14) The term 'uranium enrichment' means the separation 
of uranium of a given isotopic content into 2 components, 1 
having a higher percentage of a fissile isotope and 1 having 
a lower percentage. 
42 use 2297a. 
"SEC. 1202. PURPOSES. 
"The Corporation is created for the following purposes: 
"(1) To operate as a business enterprise on a profitable 
and efficient basis. 
"(2) To maximize the long-term value of the Corporation 
to the Treasury of the United States. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2925 
"(3) To lease Department uranium enrichment facilities, 
as needed. 
"(4) To acquire uranium for uranium enrichment, low-
enriched uranium for resale, and highly enriched uranium for 
conversion into low-enriched uranium, as needed. 
"(5) To market and sell its enriched iiranium and uranium 
enrichment and related services to— 
"(A) the Department for governmental purposes; and 
"(B) domestic and foreign persons, as provided in sec-
tion 1303(6). 
"(6) To conduct research and development as required to 
meet business objectives for the purposes of identifying, evaluat-
ing, improving, and testing alternative technologies for uranium 
enrichment. 
"(7) To conduct the business as a self-financing corporation 
and eliminate the need for Federal (Government appropriations 
or sources of Federal financing other than those provided in 
this title. 
"(8) To help maintain a reliable and economical domestic 
source of uranium enrichment services. 
"(9) To comply with laws, and regulations promulgated 
thereunder, to protect the public health, safety, and the environ-
ment. 
"(10) To continue at all times to meet the objectives of 
ensuring the Nation's common defense and security, including 
abiding by United States laws and policies concerning specisu 
nuclear materials and nonproliferation of atomic weapons and 
other nonpeaceful uses of atomic energy. 
"(11) To take all other lawful actions in furtherance of 
these purposes. 
"CHAPTER 23—ESTABUSHMENT, POWERS, AND 
ORGANIZATION OF CORPORATION 
-SEC. 1301. ESTABUSHMENT OF THE CORPORATION. 
42 USC 2297b. 
"(a) IN GENERAL.—^There is established a body corporate to 
be known as the United States Enrichment Corporation. 
"(b) GOVERNMENT CORPORATION.—The (Jorporation shall be 
established as a wholly owned Grovemment corporation subject to 
chapter 91 of title 31, United States Code (commonly referred 
to as the Government Corporation Control Act), except as otherwise 
provided in this title. 
"(c) FEDERAL AGENCY.—^The Corporation shall be an agency 
and instrumentality of the United States. 
"SEC. 1302. CORPORATE OFFICES. 
42 USC 2297b-l. 
'The Corporation shall maintain an office for the service of 
process and papers in the District of Columbia, and shall be deemed, 
lor purposes of venue in civil actions, to be a resident thereof. 
The Corporation may establish offices in such other place or places 
as it may deem necessary or appropriate in the conduct of its 
business. 
"SEC. 1303. POWERS OF THE CORPORATION. 
42 USC 2297b-2. 
"In order to accomplish its purposes, the Corporation— 
"(1) shall, except as provided in this title or applicable 
Federal law, have all the powers of a private corporation incor-
106 STAT. 2926 
PUBLIC LAW 102-486—OCT. 24, 1992 
porated under the District of Columbia Business Corporation 
Act; 
"(2) shall have the priority of the United States with respect 
to the pajrment of debts out of bankrupt, insolvent, and 
decedents' estates; 
"(3) may obtain from the Administrator of General Services 
the services the Administrator is authorized to provide agencies 
of the United States, on Uie same basis as those services 
are provided to other agencies of the United States; 
"(4) shall enrich uraniimi, provide for uranium to be 
enriched by others, or acquire enriched uraniiun (including 
low-enriched urcuiium derived from highly enriched uranium 
provided under section 1408); 
"(5) may conduct, or provide for conducting, those research 
and development activities related to uranium enrichment and 
related processes and activities the Corporation considers nec-
essary or advisable to maintain the Corporation as a commercial 
enteiprise operating on a profitable and efficient basis; 
"(6) may enter into transactions regarding uranium, 
enriched uranium, or depleted uranium with— 
"(A) persons Ucensed under section 53, 63, 103, or 
104 in accordance with the licenses held by tiiose persons; 
"(B) persons in accordance with, and Mdthin the period 
of, an agreement for cooperation arranged under section 
123; or 
"(C) persons otherwise authorized by law to enter into 
such transactions; 
"(7) may enter into contracts with persons licensed under 
section 53, 63, 103, or 104, for as long as the Corporation 
considers necessary or desirable, to provide uraniimi or ura-
nium enrichment and related services; 
"(8) may enter into contracts to provide uranium or ura-
nium enrichment and related services in accordance with, and 
within the period of, an agreement for cooperation arranged 
under section 123 or as otherwise authorized by law; and 
"(9) shall sell to the Department as provided in this title, 
without regard to section 57 e., the amounts of uranium enrich-
ment and related services that the Department determines 
from time to time are required for it to— 
"(A) carry out Presidential directions and authoriza-
tions under section 91; and 
"(B) conduct other Department programs. 
42 use 2297b-3. 
'^EC. 1304. BOARD OF DIRECTORS. 
"(a) IN GENERAL.—^The powers of the Corporation are vested 
in the Board of Directors. 
President. 
"(b) APPOINTMENT.—The Board of Directors shall consist of 
5 individuals, to be appointed by the President by and with the 
advice and consent of the Senate. The President shall designate 
a Chairman of the Board from among members of the Board. 
"(c) QUALIFICATIONS.—^Members of the Board shall be citizens 
of the United States. No member of the Board shall be an employee 
of the Corporation or have any direct financial relationship with 
the Corporation other than that of being a member of the Board. 
"(d) TERMS.— 
"(1) IN GENERAL.—Except as provided in paragraph (2), 
members of the Board shall serve 5-year terms or until the 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2927 
election of a new Board of Directors under section 1704, which-
ever comes first. 
"(2) INITIAL MEMBERS.—Of the members first appointed 
to the Board— 
"(A) 1 shall be appointed for a 1-year term; 
"(B) 1 shall be appointed for a 2-year term; 
"(C) 1 shall be appointed for a 3-year term; and 
"(D) 1 shall be appointed for a 4-year term. 
"(3) REAPPOINTMENT.—Members of the Board may be 
reappointed by the President, by and with the advice and 
consent of the Senate. 
"(e) VACANCIES.—Upon the occurrence of a vacancy on the 
Board, the President by and with the advice and consent of the 
Senate shall appoint an individual to fill such vacancy for the 
remainder of the applicable term. 
"(f) MEETINGS AND QUORUM.—The Board shall meet at any 
time pursuant to the call of the Chairman and as provided by 
the bylaws of the Corporation, but not less than quarterly. Three 
voting members of the Board shall constitute a quorum. A majority 
of the Board shall adopt and from time to time may amend bylaws 
for the operation of the Board. 
"(g) POWERS.—^The Board shall be responsible for general 
management of the Corporation and shall have the same authority, 
privileges, and responsibilities as the board of directors of a private 
corporation incorporated under the District of Columbia Business 
Corporation Act. 
"(h) COMPENSATION.—^Members of the Board shall serve on 
a part-time basis and shall receive per diem, when engaged in 
the actual performance of Corporation duties, plus reimbursement 
for travel, subsistence, and other necessary expenses incurred in 
the performance of their duties. 
"(i) MEMBERSHIP OF SECRETARY OF TREASURY.—The President 
may appoint the Secretary of the Treasury or his designee to 
serve as a member of the Board or as a nonvoting, ex officio 
member of the Board. 
"(j) CONFLICT OF INTEREST REQUIREMENTS.—NO director, officer, 
or other management level employee of the Corporation may have 
a financial interest in any customer, contractor, or competitor of 
the Corporation or in any business that may be adversely affected 
by the success of the Corporation. 
"SEC. 1305. EMPLOYEES OF THE CORPORATION. 
42 USC 2297b-4. 
"(a) APPOINTMENT.—^The Board shall appoint such officers and 
employees as are necessary for the transaction of its business. 
"(b) COMPENSATION, DUTIES, AND REMOVAL.—The Board shall, 
without regard to section 5301 of title 5, United States Code, 
fix the compensation of all officers and employees of the Corpora-
tion, define their duties, and provide a system of organization 
to fix responsibility and promote efficiency. Any officer or employee 
of the Corporation may be removed in the discretion of the Board. 
"(c) APPLICABLE CRITERIA.—The Board shall ensure that the 
personnel function and organization is consistent with the principles 
of section 2301(b) of title 5, United States Code, relating to merit 
system principles. Officers and employees shall be appointed, pro-
moted, and assigned on the basis of merit and fitness, and other 
personnel actions shall be consistent with the principles of fairness 
and due process but without regard to those provisions of title 
106 STAT. 2928 
PUBUC LAW 102-486—OCT. 24, 1992 
5 of the United States Code governing appointments and other 
personnel actions in the competitive service. 
"(d) TREATMENT OF PERSONS EMPLOYED PRIOR TO TRANSITION 
DATE.--Compensation, benefits, and other terms and conditions 
of employment in effect immectiately prior to the transition date, 
whether provided by statute or by rules of the Department or 
the executive branch, shall continue to apply to officers and employ-
ees who transfer to the Corporation from other Federal employment 
until changed by the Board. 
"(e) PROTECTION OF EXISTING EMPLOYEES.— 
"(1) IN GENERAL.—It is the purpose of this subsection to 
ensure that the establishment of the Corporation pursiuuit 
to this chapter shall not result in any adverse effects on the 
emplojnoient rights, wages, or benefits of employees at facilities 
that are operated, directly or under contract, in the performance 
of the fimctions vested in the Corporation. 
"(2) APPUCABIUTY OF EXISTING COLLECTIVE BARGAINING 
AGREEMENT.—Any employer (including the Corporation) at a 
facility described in paragraph (1) shall abide by the terms 
of a collective bargaining agreement in effect on April 30, 
1991, at each individual facility until— 
"(A) the earlier of the date on which a new bargaining 
agreement is signed; or 
"(B) the end of the 2-year period beginning on the 
date of the enactment of this title. 
"(3) APPLICABILITY OF NLRA.—^Except as specifically pro-
vided in this subsection, the Corporation is subject to the provi-
sions of the National Labor Relations Act (29 U.S.C. 151 et 
seq.). 
"(4) BENEFITS OF TRANSFEREES AND DETAILEES.—At 
the 
request of the Board and subject to the approval of the Sec-
retary, an employee of the Department may be transferred 
or detailed as provided for in section 1315, to the Corporation 
without any loss in accrued benefits or standing vdthin the 
Civil Service System. For those employees who accept transfer 
to the Corporation, it shall be their option as to whether to 
have any accrued retirement benefits transferred to a retire-
ment system established by the Corporation or to retain their 
coverage under either the Civil Service Retirement System 
or the Federal Employees' Retirement System, as applicable, 
in lieu of coverage by the Corporation's retirement system. 
For Uiose employees electing to remain with one of the Federal 
retirement systems, the Corporation shall withhold pay and 
make such pajrments as are required under the Federal retire-
ment system. For those Department employees detailed, the 
Department shall offer those employees a position of Uke grade, 
compensation, and proximity to their official duty station after 
their services are no longer required by the Corporation. 
42 use 2297b-5. 'nSEC. 1306. AUDITS. 
"(a) INDEPENDENT AUDITS.— 
"(1) IN GENERAL.—^The financial statements of the Corpora-
tion shall be prepared in accordance with generally accepted 
accounting principles and shall be audited annually by an 
independent certified pubhc accountant in accordance with 
auditing standards issued by the Comptroller General. Such 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2929 
auditing standards shall be consistent with the private sector's 
generally accepted auditingstandards. 
"(2) REVIEW BY GAO.—^e Comptroller General may review 
any audit of the Corporation's financial statements conducted 
under paragraph (1). ITie Comptroller General shall report Reports, 
to the Congress £md the Corporation the results of any such 
review and shall include in such report appropriate rec-
ommendations. 
"(b) GAO AUDITS.— 
"(1) IN GENERAL.—^The Comptroller General may audit the 
financial statements of the Corporation for any year in the 
manner provided in subsection (aXl). 
"(2) REIMBURSEMENT BY CORPORATION.—The Corporation 
shall reimbiurse the Comptroller General for the full cost of 
any audit conducted imder this subsection, as determined by 
the Comptroller General. 
"(c) AVAILABILITY OF BOOKS AND RECORDS.—^All books, accovuits, 
financial records, reports, files, papers, and other property belonging 
to or in use by the (Jorporation and its auditor that tne Comptroller 
General considers necessary to the performance of any audit or 
review under this section shall be made available to the Comptroller 
General, subject to section 1314. 
"(d) TREATMENT OF GAO AUDITS.—Activities the Comptroller 
(jreneral conducts under this section shall be in lieu of any other 
audit of the financial transactions of the Corporation the Comptrol-
ler General is required to make under chapter 91 of title 31, 
United States Code, or other law. 
"SEC. 1307. ANNUAL REPORTS. 
42 USC 2297b-6. 
"(a) IN GENERAL.—^The Corporation shall prepare and submit 
an annual report of its activities to the President and the Congress. 
This report shall contain— 
"(1) a general description of the Corporation's operations; 
"(2) a summary of the Corporation's operating and financial 
performance, including an explanation of the decision to pay 
or not pay dividends; 
"(3) copies of audit reports prepared under section 1305; 
"(4) the information required imder regulations issued 
imder section 13 of the Securities Exchange Act of 1934 (15 
U.S.C. 78m); and 
"(5) an identification and assessment of any impairment 
of capital or ability of the Corporation to comply with this 
title. 
"(b) DEADLINE.—^The report shall be completed not later than 
150 days following the close of each of the Corporation's fiscal 
years and shall accurately reflect the financial position of the Cor-
poration at fiscal year end. 
"SEC. 1308. ACCOUNTS. 
42 USC 2297b-7. 
"(a) ESTABUSHMENT OF UNITED STATES ENRICHMENT CORPORA-
TION FUND.—^There is established in the Treasury of the United 
States a revolving fund, to be known as the 'United States Enrich-
ment Corporation Fund', which shall be available to the Corpora-
tion, without need for further appropriation and without fiscal 
year limitation, for carrying out its purposes, functions, and powers, 
and which shall not be subject to apportionment imder subchapter 
II of chapter 15 of title 31, United States Code. 
59-194 O—93 
7:QL3(Pt. 4) 
106 STAT. 2930 
PUBLIC LAW 102-486—OCT. 24, 1992 
"(b) TRANSFER OF UNEXPENDED BALANCES.—On the transfer 
date, the Secretary shall, without need of further appropriation, 
transfer to the Corporation the unexpended balance of appropria-
tions and other monies available to the Department (inclusive of 
funds set aside for accounts payable), and accounts receivable which 
are related to functions and activities acquired by the Corporation 
from the Department pursuant to this title, including all advance 
payments. 
42 use 2297b-8. *'SEC. 1309. OBLIGATIONS. 
"(a) ISSUANCE.— 
"(1) IN GENERAL.—^The Corporation may issue and sell 
bonds, notes, and other evidences of indebtedness (collectively 
referred to in this title as 'bonds'), except that the Corporation 
may not issue or sell bonds for the purpose of constructing 
new uranium enrichment facilities or conducting directly 
related preconstruction activities. Borrowing under this para-
graph during any fiscal year ending before October 1, 1996, 
shall be subject to approval in appropriation Acts. 
"(2) USE OP REVENUES.—^The Corporation may pledge and 
use its revenues for payment of the principal of and interest 
on its bonds, for their purchase or redemption, and for other 
purposes incidental to these functions, including creation of 
reserve funds and other funds that may be similarly pledged 
and used. 
"(3) AGREEMENTS WITH HOLDERS AND TRUSTEES.—^The Cor-
poration may enter into binding covenants with the holders 
and trustees of its bonds with respect to— 
"(A) the establishment of reserve and other funds; 
"(B) stipulations concerning the subsequent issuance 
of bonds; and 
"(C) other matters not inconsistent with this title; 
that the Corporation determines necessary or desirable to 
enhance the marketability of the bonds. 
"(b) NOT OBLIGATIONS OP UNITED STATES.—Bonds issued by 
the Corporation under this section shall not be obligations of, or 
guaranteed as to principal or interest by, the United States, and 
the bonds shall so plainly state. 
"(c) TERMS AND CONDITIONS.— 
"(1) NEGOTIABLE; MATURITY.—Bonds issued by the Corpora-
tion under this section shall be negotiable instruments unless 
otherwise specified in the bond and shall mature not more 
than 50 years after their date of issuance. 
"(2) ROLE OF SECRETARY OF THE TREASURY.— 
"(A) RIGHT OF DISAPPROVAL.—^The Corporation may set 
the terms and conditions of bonds issued under this section, 
subject to disapproval of such terms and conditions by 
the Secretary oi the Treasury within 5 days after the 
Secretary of the Treasury is notified of the following terms 
and conditions of the bonds: 
"(i) Their forms and denominations, 
"(ii) The times, amounts, and prices at which they 
are sold. 
"(iii) Their rates of interest. 
"(iv) The terms at which they may be redeemed 
by the Corporation before maturity. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2931 
"(v) The priority of their claims on the Corpora-
tion's net revenues with respect to principal and 
interest payments. 
"(vi) Any other terms and conditions. 
"(B) INAPPLICABILITY OF RIGHT TO PRESCRIBE TERMS.— 
Section 9108(a) of title 31, United States Code, shall not 
apply to the Corporation. 
"(d) INAPPUCABILITY OF SECURITIES REQUIREMENTS.—The Cor-
goration shall be considered an executive department of the United 
tates for purposes of section 3(c) of the Securities Exchange Act 
ofl934(15U.S.C. 78c(c)). 
"(e) INAPPLICABILITY OF FFB.—The Corporation shall not issue 
or sell any bonds to the Federal Financing Bank. 
'nSEC. 1310. EXEMPTION FROM TAXATION AND PAYMENTS IN LIEU OF 
TAXES. 
"(a) EXEMPTION FROM TAXATION.—In order to render financial 
assistance to those States and localities in which the facilities 
of the Corporation are located, the Corporation shall, beginning 
in fiscal year 1998, make pa3anents to State and local governments 
as provided in this section. These pajonents shall be in lieu of 
any and all State and local taxes on the real and personal property 
of the Corporation. All property of the Corporation is expressly 
exempted from taxation in any manner or form by any State, 
county, or other local government entity including State, county, 
or other local government sales tax. 
"(b) PAYMENTS IN LIEU OF TAXES.—Beginning in fiscal year 
1998, the Corporation shall make annual payments, in amounts 
determined by the Corporation to be fair and reasonable, to the 
State and local governmental agencies having tax jurisdiction in 
any area where facilities of the Corporation are located. In making 
these determinations, the Corporation shall be guided by the follow-
ing criteria: 
"(1) The Corporation shall take into account the customs 
and practices prevailing in the area with respect to appraisal, 
assessment, and classification of industrial property and any 
special considerations extended to large-scale industrial oper-
ations. 
"(2) The pajmient made to any taxing authority for any 
period shall not be less than the payments that would have 
been made to the taxing authority for the same period by 
the Department and its cost-tjrpe contractors on behalf of the 
Department with respect to property that has been transferred 
to the Corporation under section 1404 and that would have 
been attributable to the ownership, management, operation, 
and maintenance of the Department's uranium enrichment 
facilities, appljring the laws and policies prevailing immediately 
prior to the transition date. 
"(c) TIME OF PAYMENTS.—Payments shall be made by the Cor-
poration at the time when payments of taxes by t£ixpayers to 
each taxing authority are due and payable. 
"(d) DETERMINATION OF AMOUNT DUE.—The determination by 
the Corporation of the amounts due under this section shall be 
final and conclusive. 
'^EC. 1311. COOPERATION WITH OTHER AGENCIES. 
'The Corporation may request to use on a reimbursable basis 
the available services, equipment, personnel, and facilities of agen-
42 use 2297b-9. 
42 use 
2297b-10. 
106 STAT. 2932 
PUBLIC LAW 102-486—OCT. 24, 1992 
cies of the United States, and on a similar basis may cooperate 
with such agencies in the estabUshment and use of services, equip-
ment, and facilities of the Corporation. Further, the Corporation 
may confer with and avail itself of the cooperation, services, records, 
and facilities of State, territorial, mimicipal, or other local agencies. 
42 use 
«SEC. 1312. APPLICABILITY OF CERTAIN FEDERAL LAWS. 
2297b-11 
"(a) ANTITRUST LAWS.—^The Corporation shall conduct its activi-
ties in a manner consistent with the policies expressed in the 
following antitrust laws: 
"(1) The Sherman Act (15 U.S.C. 1-7). 
"(2) The Clayton Act (15 U.S.C. 12-27). 
"(3) Sections 73 and 74 of the Wilson Tariff Act (15 U.S.C. 
8 and 9). 
"(b) ENVIRONMENTAL LAWS.—The Corporation shall be subject 
to, and comply with, all Federal and State, interstate, and local 
environmental laws and requirements, both substantive and proce-
dural, in the same manner, and to the same extent, as any person 
who is subject to such laws and requirements. For purposes of 
enforcing any such law or substantive or procedural requirements 
(including any injunctive relief, administrative order, or civil or 
administrative penalty or fine) against the Corporation, the United 
States expressly waives any immunity otherwise applicable to the 
Corporation. For the purposes of this subsection, the term 'person' 
means an individual, trust, firm, joint stock company, corporation, 
partnership, association. State, municipality, or political subdivision 
of a State. 
"(c) OSHA REQUIREMENTS.—^Notwithstanding sections 3(5), 
4(b)(1), and 19 of the Occupational Safety and Health Act of 1970 
(29 U.S.C. 652(5), 653(bXl), and 668)), the Corporation shall be 
subject to, £uid complv with, such Act and all regulations and 
standards promulgated thereunder in the same manner, and to 
the same extent, as an employer is subject to such Act. For the 
purposes of enforcing such Act (including any injunctive relief, 
administrative order, or civil, administrative, or criminal penalty 
or fine) against the Corporation, the United States expressly waives 
any immunity otherwise applicable to the Corporation, 
"(d) LABOR STANDARDS.—The Act of March 3, 1931 (known 
as the Davis-Bacon Act) (40 U.S.C. 276a et seq.) and the Service 
Contract Act of 1965 (41 U.S.C. 351 et sea.) shall apply to the 
Corporation. All laborers and mechanics employed on the construc-
tion, alteration, or repair of projects funded, in whole or in part, 
by the Corporation shall be paid wages at rates not less than 
those prevailing on projects oi a similar character in the locality 
as determined by the Secretary of Labor in accordance with such 
Act of March 3, 1931. The Secretary of Labor shall have, with 
respect to the labor standards specified in this subsection, the 
authority and functions set forth in Reorganization Plan Numbered 
14 of 1950 (15 F.R. 3176, 64 Stat. 1267) and the Act of June 
13,1934 (40 U.S.C. 276c). 
"(e) ENERGY REORGANIZATION ACT REQUIREMENTS.—^The Cor-
poration is subject to the provisions of section 210 of the Energy 
Reorganization Act of 1974 (42 U.S.C. 5850) to the same extent 
as an employer subject to such section, and, with respect to the 
operation of the facilities leased by the Corporation, section 206 
of the Energy Reorganization Act of 1974 (42 U.S.C. 5846) shall 
apply to the directors and officers of the Corporation. 
^
j , 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2933 
"(f) EXEMPTION FROM FEDERAL PROPERTY REQUIREMENTS.—The 
Corporation shall not be subject to the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 471 et seq.). 
'«EC. 1313. SECURITY. 
"Any references to the term 'Commission' or to the Department 
in sections 161k., 221a., and 230 shcdl be considered to include 
the Corporation. 
'9EC. 1314. CONTROL OF INFORMATION. 
"(a) IN GENERAL.—Except as provided in subsection (b), the 
Corporation may protect traae secrets and commercial or financial 
information to the same extent as a privately owned corporation. 
"(b) OTHER APPLICABLE LAWS.—Section 552(d) of title 5, United 
States Code, shall apply to the Corporation, and such information 
shall be subject to the applicable provisions of law protecting the 
confidentiality of trade secrets and business and financial informa-
tion, including section 1905 of title 18, United States Code. 
'«EC. 1315. TRANSITION. 
"(a) TRANSITION MANAGER.—Within 30 days after the date of 
the enactment of this title, the President shall appoint a Transition 
Manager, who shall serve at the pleasure of the President until 
a quorum of the Board has been appointed and confirmed in accord-
ance with section 1304. 
"(b) POWERS.— 
"(1) IN GENERAL.—^Until a quonmi of the Board has quali-
fied, the Transition Manager shall exercise the powers and 
duties of the Board and shall be responsible for taking all 
actions needed to effect the transfer of the uranium enrichment 
enterprise from the Secretary to the Corporation on the transi-
tion date. 
"(2) CONTINUATION UNTIL BOARD HAS QUORUM.—In the 
event that a quonmi of the Board has not qualified by the 
transition date, the Transition Manager shall continue to exer-
cise the powers and duties of the Board imtil a quorum has 
qualified. 
%c) RATIFICATION OF TRANSITION MANAGER'S ACTIONS.—All 
actions taken by the Transition Manager before the qualification 
of a quorum of the Board shall be subject to ratification by the 
Board. 
"(d) RESPONSIBILITIES OF SECRETARY.—Before the transition 
date, the Secretary shall— 
"(1) continue to be responsible for the management and 
operation of the uranium enrichment plants; 
"(2) provide funds, to the extent provided in appropriations 
Acts, to the Transition Manager to pay salaries and expenses; 
"(3) delegate Department emplovees to assist the Transition 
Manager in meeting his responsibilities under this section; 
and 
"(4) assist and cooperate with the Transition Manager in 
preparing for the trans^r of the uranium enrichment enterprise 
to the Corporation on the transition date. 
"(e) TRANSITION DATE.—The transition date shall be July 1, 
1993. 
"(f) DETAIL OF PERSONNEL.—^For the purpose of continuity of 
operations, maintenance, and authority, the Department shall 
detail, for up to 18 months £ifter the date of the enactment of 
42 use 
2297b-12. 
42 use 
2297b-13. 
42 use 
2297b-14. 
President. 
106 STAT. 2934 
PUBLIC LAW 102-486—OCT. 24, 1992 
42 use 
2297b-15. 
42 use 2297c. 
this title, appropriate Department personnel as may be required 
in an acting capacity, until such time as a Board is confirmed 
and top officers of the Corporation are hired. The Corporation 
shall reimburse the Department and its contractors for the detail 
of such personnel. 
<nSEC. 1316. WORKING CAPITAL ACCOUNT. 
'There shall be established within the Corporation a Working 
Capital Account in which the Corporation may retain all revenue 
necessary for legitimate business expenses, or investments, related 
to carrying out its purposes. 
"CHAPTER 24—RIGHTS, PRIVH^GES, AND ASSETS OF 
THE CORPORATION 
"SEC. 1401. MARKETING AND CONTRACTING AUTHORITY. 
"(a) EXCLUSIVE MARKETING AGENT.—The Corporation shall act 
as the exclusive marketing agent on behalf of tne United States 
Government for entering into contracts for providing enriched ura-
nium (including low-ennched uranium derived from highly enriched 
uraniiun) and uraniimi enrichment and related services. The 
Department may not market enriched uranium (including low-
enriched uranium derived from highly enriched uranium), or ura-
nium enrichment and related services, after the transition date. 
"(b) TRANSFER OF CONTRACTS.— 
"(1) IN GENERAL.—^Except as provided in paragraph (2), 
all contracts, agreements, and leases with the Department, 
including all uranium enrichment contracts and power purchase 
contracts, that have been executed by the Department before 
the transition date and that relate to uranium enrichment 
and related services shall transfer to the Corporation. 
"(2) EXCEPTIONS.— 
"(A) T V A SETTLEMENT.—^The rights and responsibilities 
of the Department under the settlement agreement Math 
the Tennessee Valley Authority, filed on December 18, 
1987, with the United States Claims Court, shall not trans-
fer to the Corporation. 
**(B) NONTRANSFERABLE POWER CONTRACTS.—If the Sec-
retary determines that a power purchase contract executed 
by the Department prior to the transition date cannot 
be transferred under its terms, the Secretary may continue 
to receive power under the contract and resell such power 
to the Corporation at cost. 
"(C) NONPOWER APPLICATIONS.—Contracts for enriched 
uranium and uranium services in existence as of the date 
of the enactment of this title for research and development 
or other nonpower applications shall remain witn the 
Department. At the request of the Department, the Cor-
poration, in consultation with the Department, may enter 
into such contracts it determines to be appropriate. 
42 use 2297C-1. "SEC. 1402. PRICING. 
"(a) 
SERVICES PROVIDED TO COMMERCIAL CUSTOMERS.—The 
Corporation shall establish prices for its products, materials, and 
services provided to customers other than the Department on a 
basis that will allow it to attain the normal business objectives 
of a profitmaking corporation. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2935 
"(b) SERVICES PROVIDED TO DOE.—The Corporation shall 
charge prices to the Department for uranium enrichment services 
provided imder section 1303(9) on a basis that will allow it to 
recover its costs, on a yearly basis, for providing products, materials, 
and services, and provide for a reasonable profit. 
'^EC. 1403. LEASING OF GASEOUS DIFFUSION FACIUTIES OF DEPART- 
42 USC 2297c-2. 
MENT. 
"(a) IN GENERAL.—^The Corporation shall lease the Paducah 
Gaseoiis Dif!usion Plant in Paducah, Kentucky, the Portsmouth 
Gaseous Diffusion Plant in Piketon, Ohio, and related proi)erty 
of the Department, for a period of 6 years from the transition 
date. Thereafter, the Corporation shall have the exclusive option 
to lease such faciUties and related property for additional periods. 
"(b) TERMS OF LEASE.—^The Corporation and the Department 
shall set mutually agreeable terms for a lease imder subsection 
(a), including specifying annual payments to the Department bv 
the Corporation to be made. The amount of annual payments shall 
be equal to the cost incurred by the Department in administering 
the lease and providing services related to the lease to the Corpora-
tion (excluding depreciation and imputed interest on original plant 
investments in the Department's gaseous diffusion plants and costs 
under subsection (d)). 
"(c) EXCLUSION OF FACILITIES FOR PRODUCTION OF HIGHLY 
ENRICHED URANIUM.—Subsection (a) shall not apply to Department 
facilities necessary for the production of highly enriched uranium. 
The Secretary may grant to the Corporation access to such facilities 
for purposes other than the production of highly enriched uranium. 
"(d) DOE RESPONSIBILITY FOR PREEXISTING CONDITIONS.—^The 
payment of any costs of decontamination and decommissioning, 
response actions, or corrective actions with respect to conditions 
existing before the transition date, in connection with property 
of the Department leased under subsection (a), shall remain the 
sole responsibility of the Department. 
"(e) ENVIRONMENTAL AUDIT.—The Secretary, in consultation 
with the Administrator of the Environmental Protection Agency, 
shall conduct a comprehensive environmental audit identi^ring 
environmental conditions that will remain the responsibility of the 
Department pursuant to subsection (d) after the transition date. 
Such audit shall be completed no later than the transition date. 
"(f) TREATMENT UNDER PRICE-ANDERSON PROVISIONS.—Any 
lease executed between the Secretary and the Corporation under 
this section shall be deemed to be a contract for purposes of section 
170 d. 
"(g) WAIVER OF E I S REQUIREMENT.—The execution of the lease 
by the Corporation and the Department shall not be considered 
a major Federal action significantly affecting the quality of the 
human environment for purposes of section 102 of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4332). 
'«EC. 1404. CAPITAL STRUCTURE OF CORPORATION. 
42 USC 2297c-3. 
"(a) CAPITAL STOCK.— 
"(1) ISSUANCE TO SECRETARY OF THE TREASURY.—The Cor-
poration shall issue capital stock representing an equity invest-
ment equal to the greater of— 
"(A) $3,000,000,000; or 
"(B) the book value of assets transferred to the Cor-
poration, as reported in the Uranium Enrichment Annual 
106 STAT. 2936 
PUBLIC LAW 102-486—OCT. 24, 1992 
Report for fiscal year 1991, modified to reflect continued 
depreciation and other usual changes that occur up to 
the transfer date. 
The Secretary of the Treasury shall hold such stock for the 
United States, except that all rights £uid duties pertaining 
to management of the Corporation shall remain vested in the 
Board. 
"(2) 
RESTRICTION ON TRANSFERS OF STOCK BY UNITED 
STATES.—^The capital stock of the Corporation shall not be 
sold, transferred, or conveyed by the United States, except 
to carry out the privatization of the Corporation under section 
1502. 
"(3) ANNUAL ASSESSMENT.—The Secretary of the Treasury 
shall annually assess the value of the stock held by the Sec-
retary under paragraph (1) and submit to the Congress a report 
setting forth such value. The annual assessment of the Sec-
retary shall be subject to review by an independent auditor. 
"(b) PAYMENT OF DIVIDENDS.—The Corporation shall pay into 
miscellaneous receipts of the Treasury of the United States or 
such other fund as is provided by law, dividends on the capital 
stock, out of earnings of the Corporation, as a return on the invest-
ment represented by such stock. Until privatization occurs under 
section 1502, the Corporation shall pay as dividends to the Treasury 
of the United States all net revenues remaining at the end of 
each fiscal year not required for operating expenses or for deposit 
into the Working Capital Account established in section 1316. 
"(c) PROHIBITION ON ADDITIONAL FEDERAL ASSISTANCE.—Except 
as otherwise specifically provided in this title, the Corporation 
shall receive no appropriations, loans, or other financial assistance 
from the Federal (jovemment. 
"(d) SOLE RECOVERY OF UNRECOVERED COSTS.—Receipt by the 
United States of the proceeds from the sale of stock issued by 
the Corporation under subsection (a)(1), and the dividends paid 
under subsection (b), shall constitute the sole recovery by the United 
States of previously unrecovered costs (including depreciation and 
imputed interest on original plant investments in the Department's 
gaseous diffusion plants) that have been incurred by the United 
States for uranium enrichment activities prior to the transition 
date. 
42 use 2297C-4. "SEC. 1406. PATENTS AND INVENTIONS. 
"The Corporation may at any time apply to the Department 
for a patent license for the use of an invention or discovery useful 
in the production or utilization of special nuclear material or atomic 
energy covered by a patent when the patent has not been declared 
to be affected with the public interest under section 153 a. and 
when use of the patent is within the Corporation's authority. An 
application shall constitute an application under section 153 c. 
subject to section 153 c, d., e., f., g., and h. 
42 use 2297C-5. "SEC. 1406. LIABILITIES. 
"(a) LIABILITIES BASED ON OPERATIONS BEFORE TRANSITION.— 
Except as otherwise provided in this title, all liabilities attributable 
to operation of the uranium enrichment enterprise before the transi-
tion date shall remain direct liabilities of the Department. 
"(b) JUDGMENTS BASED ON OPERATIONS BEFORE TRANSITION.— 
Any judgment entered against the Corporation imposing liability 
arising out of the operation of the uranium enrichment enterprise 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2937 
before the transition date shall be considered a judgment against 
and shall be payable solely by the Department. 
"(c) REPRESENTATION.—^With regard to any claim seeking to 
impose liability under subsection (a) or (b), the United States shall 
be represented by the Department of Justice. 
•Xd) JUDGMENTS BASED ON OPERATIONS AFTER TRANSITION.— 
Any judgment entered against the Corporation arising from oper-
ations of the Corporation on or after the transition date snail 
be payable solely by the Corporation from its own funds. The 
Corporation shall not be considered a Federal agency for purposes 
of chapter 171 of title 28, United States Code. 
<«EC. 1407. TRANSFER OF URANIUM INVENTORIES. 
42 USC 2297c-6. 
"The Secretary shall transfer to the Corporation without charge 
all raw and low-enriched uranium inventories of the Department 
necessary for the fulfillment of contracts transferred under section 
1401(b). 
'^EC. 1408. PURCHASE OF HIGHLY ENRICHED URANIUM FROM 42 USC 2297c-7. 
FORMER SOVIET UNION. 
"(a) IN GENERAL.—^The Corporation is authorized to negotiate 
the purchase of all highly enriched uranium made available by 
any State of the former Soviet Union under a government-to-govem-
ment agreement or shall assume the obligations of the Department 
under any contractual agreement that has been reached with any 
such State or any private entity before the transition date. The 
Corporation may only purchase this material so long as the quaUty 
of the material can be made suitable for use in commercial reactors. 
"(b) ASSESSMENT OF POTENTIAL USE.—The Corporation shall 
prepare an assessment of the potential use of highly enriched 
uranium in the business operations of the Corporation. 
"(c) PLAN FOR BLENDING AND CONVERSION.—In the event that 
the agreement imder subsection (a) provides for the Corporation 
to provide for the blending and conversion the assessment shall 
include a plan for such blending and conversion. The plan shall 
determine the least-cost approach to providing blending and conver-
sion services, compatible with environmental, safety, security, and 
nonproliferation requirements. The plan shall include a competitive 
process that the (Jorporation shall use for selecting a provider 
of such services, including the public solicitation of proposals from 
the private sector to allow a determination of the least-cost 
approach. 
"(d) MINIMIZATION OF IMPACT ON DOMESTIC INDUSTRIES.—The 
Corporation shall seek to minimize the impact on domestic indus-
tries (including uranium mining) of the sale of low-enriched ura-
nium derived from highly enriched uranium. 
"CHAPTER 25—PRIVATIZATION OF THE CORPORATION 
'^EC. 1501. STRATEGIC PLAN FOR PRIVATIZATION. 
"(a) IN GENERAL.—Within 2 years after the transition date, 
the Corporation shall prepare a strategic plan for transferring 
ownership of the Corporation to private investors. The Corporation 
shall revise the plan as needed. 
"(b) CONSIDERATION OF ALTERNATIVE MEANS OF TRANSFERRING 
OWNERSHIP.—^The plan shall include consideration of alternative 
means for transferring ownership of the Corporation to private 
investors, including public stock offering, private placement, or 
42 USC 2297d. 
106 STAT. 2938 
PUBLIC LAW 102-486—OCT. 24, 1992 
merger or acquisition. The plan may call for the phased transfer 
of ownership or for complete transfer at a single point of time. 
If the plan calls for phased transfer of ownership, then— 
''(I) privatization shall be deemed to occur when 100 per-
cent of ownership has been transferred to private investors; 
"(2) prior to privatization, such stock shall be nonvoting 
stock; and 
"(3) at the time of privatization, such stock shall convert 
to voting stock. 
"(c) EVALUATION AND RECOMMENDATION.—The plan shall evalu-
ate the relative merits of the alternatives considered and the esti-
mated return on the Government's investment in the Corporation 
achievable through each alternative. The plan shall include the 
Corporation's 
recommendation 
on 
its 
preferred 
means 
of 
privatization. 
"(d) TRANSMITTAL.—^The Corporation shall transmit copies of 
the strategic plan for privatization to the President and Congress 
upon completion. 
42 use 2297d-l. "SEC. 1502. PRIVATIZATION. 
"(a) IMPLEMENTATION.—Subsequent to transmitting a plan for 
privatization pursuant to section 1501, and subject to subsections 
(b) and (c), the Corporation may implement the privatization plan 
if the Corporation determines, in consultation with appropriate 
agencies of the United States, that privatization will— 
"(1) result in a return to the United States at least equal 
to the net present value of the Corporation; 
"(2) not result in the Corporation being owned, controlled, 
or dominated by an alien, a foreign corporation, or a foreign 
government; 
"(3) not be inimical to the health and safety of the public 
or the common defense and security; and 
"(4) provide reasonable assurance that adequate enrich-
ment capacity will remain available to meet the domestic elec-
tric utility industry. 
"(b) REQUIREMENT OF PRESIDENTIAL APPROVAL.—The Corpora-
tion may not implement the privatization plan without the approval 
of the President. 
"(c) NOTIFICATION OF CONGRESS AND GAG EVALUATION.—^The 
Corporation shall notify the Congress of its intent to implement 
the privatization plan. Within 30 days of notification, the Comptrol-
ler General shall submit a report to Congress evaluating the extent 
to which— 
"(1) the privatization plan would result in any ongoing 
obligation or \mdue cost to the Federal CJovemment; and 
"(2) the revenues gained by the Federal Grovemment under 
the privatization plan would represent at least the net present 
value of the Corporation. 
"(d) PERIOD FOR CONGRESSIONAL REVIEW.—The Corporation 
may not implement the privatization plan less than 60 days after 
notification of the Congress. 
"(e) DEPOSIT OF PROCEEDS.—Proceeds from the sale of capital 
stock of the Corporation under this section shall be deposited in 
the general fund of the Treasury. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2939 
**CHAPTER 26—AVUS AND ALTERNATIVE 
TECHNOLOGIES FOR URANIUM ENRICHMENT 
^^EC. 1601. ASSESSMENT BY UNITED STATES ENRICHMENT CORPORA- 42 USC 2297e. 
TION. 
"(a) IN GENERAL.—^The Corporation shall prepare an assessment 
of the economic viability of proceeding with the commercialization 
of AVLIS and alternative technologies for uraniimi enrichment in 
accordance with this chapter. The assessment shall include— 
"(1) an evaluation of market conditions together with a 
marketing strategy; 
"(2) an analysis of the economic viability of competing 
enrichment technologies; 
"(3) an identification of predeployment and capital require-
ments for the commercialization of AVLIS and alternative tech-
nologies for uranium enrichment; 
"(4) an estimate of potential earnings firom the licensing 
of AVLIS and alternative technologies for uranium enrichment 
to a private government sponsored corporation; 
(5) an analysis of outstanding and potential patent and 
related claims with respect to AVLIS and alternative tech-
nologies for uranium enrichment, and a plan for resolving such 
claims; and 
"(6) a contingenQT plan for providing enriched uranium 
and related services in the event that deplojnnent of AVLIS 
and alternative technologies for uranium enrichment is deter-
mined not to be economically viable. 
"(b) 
DETERMINATION BY CORPORATION TO PROCEED WITH 
COMMERCIALIZATION OF AVLIS OR ALTERNATIVE TECHNOLOGIES FOR 
URANIUM ENRICHMENT.—^The succeeding sections of this chapter 
shall apply only to the extent the Corporation determines in its 
business judgment, on the basis of the assessment prepared under 
subsection (a), to proceed with the commercialization of AVLIS 
or alternative technologies for uranium enrichment. 
•nSEC. 1602. TRANSFER OF RIGHTS AND PROPERTY TO UNITED STATES 42 USC 2297e-l. 
ENRICHMENT CORPORATION. 
**(a) EXCLUSIVE RIGHT TO COMMERCIALIZE.—The Corporation 
shall have the exclusive conunercial right to deploy and use any 
AVLIS patents, processes, and technical information owned or con-
trolled by the Government, upon completion of a royalty agreement 
with the Department. 
"(b) TRANSFER OF RELATED PROPERTY TO CORPORATION.— 
"(1) IN GENERAL.—^To the extent requested by the Corpora-
tion, the President shall transfer without charge to the Corpora-
tion all of the Department's right, title, or interest in and 
to property owned by the Department, or by the United States 
but under control or custody of the Department, that is directly 
related to and materially useful in the performance of the 
Corporation's pmposes regarding AVLIS and alternative tech-
nologies for uranium enrichment, including— 
"(A) facilities, equipment, and materials for research, 
development, and demonstration activities; and 
"(B) all other faciUties, equipment, materials, proc-
esses, patents, technical information of any kind, contracts, 
agreements, and leases. 
106 STAT. 2940 
PUBLIC LAW 102-486—OCT. 24, 1992 
"(2) EXCEPTION.—^Facilities, real estate, improvements, and 
equii>ment related to the gaseous diffusion, and gas centrifuge, 
uranium enrichment programs of the Department shall not 
transfer under paragraph (IXB). 
"(3) EXPIRATION OF TRANSFER AUTHORITY.—The President's 
authority to transfer property under this subsection shall expire 
upon privatization imder section 1502. 
*
*
C
c
) LIABILITY F
O
R PATENT A
N
D RELATED CLAIMS.—With respect 
to any right, title, or interest provided to the Corporation under 
subsection (a) or (b), the Corporation shall have sole liability for 
any payments made or awards under section 157 b. (3), or any 
settlements or judgments involving claims for alleged patent 
infringement. Any royalty agreement under subsection (a) shall 
provi^ for a reduction of royalty payments to the Department 
to offset any payments, awards, settlements, or judgments under 
this subsection. 
42 use 2297e-2. «SEC. 1603. PREDEPLOYMENT 
ACTIVITIES 
BY 
UNITED 
STATES 
ENRICHMENT CORPORATION. 
The Corporation may begin activities necessary to prepare 
AVLIS or alternative technologies for uranium enrichment for 
commercialization including— 
"(1) completion of preapplication activities with the Nuclear 
Regulatory Commission; 
"(2) preparation of a transition plan to move AVLIS or 
alternative technologies for uranium enrichment from the lab-
oratory to the marketplace; 
"(3) confirmation of technical performance; 
"(4) validation of economic projections; 
"(5) completion of feasibility and risk studies; 
"(6) initiation of preliminary plant design and engineering^ 
and 
"(7) site selection, site characterization, and environmental 
documentation activities on the basis of site evaluations and 
recommendations prepared for the Department by the Argonne 
National Laboratory. 
42 use 2297e-3. '^SEC. 1604. UNITED STATES ENRICHMENT CORPORATION SPONSOR^ 
SHIP OF PRIVATE FOR-PROFIT CORPORATION TO CON-
STRUCT AVUS AND ALTERNATIVE TECHNOLOGIES FOR 
URANIUM ENRICHMENT. 
"(a) ESTABUSHMENT.— 
"(1) IN G
E
N
E
R
A
L
.
—
^
I
f the Corporation determines to proceed 
with the commercialization of AVLIS or alternative technologies 
for uranium enrichment imder this chapter, the Corporation 
may provide for the establishment of a private for-profit cor-
poration, which shall have as its initial purpose the construction 
of a uranium enrichment facility using AVLIS technology or 
alternative technologies for uranium enrichment. 
"(2) P
R
O
C
E
S
S O
F O
R
G
A
N
I
Z
A
T
I
O
N
.
—
F
o
r purposes of the 
establishment of the private corporation under paragraph (1), 
the Corporation shall appoint not less than 3 persons to be 
incorporators. The incorporators so appointed shall each sign 
the articles of incorporation and shall serve as the initial boaurd 
of directors until the members of the 1st regular board of 
directors shall have been appointed and elected. Such 
incorporators shall take whatever actions are necessary or 
appropriate to establish the private corporation, including the 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2941 
filing of articles of incorporation in such jurisdiction as the 
incorporators determine to be appropriate. The incorporators 
shall also develop a plan for the issuance by the private corpora-
tion of voting common stock to the pubUc, which plan shall 
be subject to the approval of the Secretary of the Treasury. 
"(b) LEGAL STATUS OF PRIVATE CORPORATION.— 
"(1) NOT FEDERAL AGENCY.—^The private corporation estab-
lished under subsection (a) shall not be an agency, instrumen-
tality, or estabUshment of the United States Government and 
shall not be a Government corporation or Government con-
trolled corporation. 
"(2) N o RECOURSE AGAINST UNITED STATES.—ObUgationS 
of the private corporation estabUshed under subsection (a) shall 
not be obUgations of, or gu£uranteed as to principal or interest 
by, the Corporation or the United States, and the obligations 
shall so plainly state. 
"(3) No CLAIMS C
O
U
R
T JURISDICTION.—No action under sec-
tion 1491 of title 28, United States Code, shall be allowable 
against the United States based on the actions of the private 
corporation established under subsection (a). 
"(c) TRANSACTIONS BETWEEN UNITED STATES ENRICHMENT COR-
PORATION A
N
D PRIVATE CORPORATION.— 
"(1) GRANTS FROM USEC—The Corporation may make 
grants to the private corporation established imder subsection 
(a) from amounts available in the AVLIS Commercialization 
Fund. Such grants shall be used by the private corporation 
to carry out any remaining predeployment activity assigned 
to the private corporation by the Corporation. Such grants 
may not be used for the costs of constructing an AVLIS, or 
alternative technologies for uranium enrichment, production 
facility or engaging in directly related preconstruction activities 
(other than such assigned predeplojrment activities). The aggre-
gate amount of such grants shall not exceed $364,000,000. 
"(2) LICENSING AGREEMENT.—The Corporation shall license 
to the private corporation established under subsection (a) the 
rights, titles, and interests provided to the Corporation imder 
section 1602. The licensing agreement shall require the private 
corporation to make periodic payments to the Corporation in 
an amoimt that is not less than the aggregate amoimts paid 
by the Corporation during the period involved under subsections 
(a) and (c) of section 1602. 
"(3) PURCHASE AGREEMENT.—The Corporation may enter 
into a commitment to purchase all enriched uranium produced 
at an AVLIS, or alternative technologies for uranium enrich-
ment, facility of the private corporation established under sub-
section (a) at a price negotiated by the 2 corporations that— 
"(A) provides the private corporation with a reasonable 
return on its investment; and 
"(B) is less costly than enriched uranium available 
from other sources. 
"(4) ADDITIONAL ASSISTANCE.—The Corporation may pro-
vide to the private corporation established under subsection 
(a), on a reimbursable basis, such additional personnel, services, 
and equipment as the 2 corporations may determine to be 
appropriate. 
106 STAT. 2942 
PUBLIC LAW 102-486—OCT. 24, 1992 
42 u s e 2297e-4. '«EC. 160S. AVUS 
COMBfERCIAUZATION 
FUND 
WimiN 
UNITED 
STATES ENRICHMENT CORPORATION. 
"(a) ESTABLISHMENT.—^The Corporation may establish within 
the Corporation an AVLIS Commercialization Fund, which shall 
consist of not more than $364,000,000 paid into the Fund by tiie 
Corporation from amounts provided in appropriation Acts for such 
purposes and 
from 
the retained earnings or the Corporation. 
"(b) EXPENDITURES FROM FUND.—Amounts in the AVLIS 
Commercialization Fund shall be available for— 
"(1) expenses of the Corporation in preparing the assess-
ment under section 1601; 
"(2) expenses of predeployment activities under section 
1603; and 
"(3) grants to the private corporation under section 1604. 
"(c) LIMITATIONS.— 
"(1) EXCLUSIVE SOURCE OF FUNDS.—The Corporation may 
not incur any obligation, or expend any amount, with respect 
to AVLIS or alternative technologies for uranium enrichment, 
except 
from 
amounts available in the AVLIS CommerciaUzation 
Fund. 
"(2) UNAVAILABLE FOR CONSTRUCTION COSTS.—NO amount 
may be used from the AVLIS Commercialization Fund for the 
costs of constructing an AVLIS, or alternative technologies 
for uranium enrichment, production facility or engaging in 
directly related preconstruction activities (other than activities 
specified in subsection (b)). 
"(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated $364,000,000 fi*om the Uranium Enrichment 
Special Fund for purposes of this section. 
"(e) COST REPORT.—On the basis of the assessment under sec-
tion 1601(aX3), the Corporation shall submit to the Congress a 
report on the capital requirements for commercialization of AVLIS. 
42 use 2297e-5. 'nSEC. 1606. DEPARTMENT RESEARCH AND DEVELOPMENT ASSIST-
ANCE. 
"If requested bv the Corporation, the Secretary shall provide, 
on a reimbursable basis, research and development of AVLIS and 
alternative technologies for uranium enrichment. 
42 u s e 2297e-6. '^EC. 1607. SITE SELECTION. 
"This chapter shall not prejudice consideration of the site of 
an existing uranium enrichment facility as a candidate site for 
future expansion or replacement of uranium enrichment capacity 
through AVLIS or alternative technologies for uranium enrichment. 
Selection of a site for the AVLIS, or alternative technologies for 
uranium enrichment, facility shall be made on a competitive basis, 
taking into consideration economic performance, environmental 
compatibiUty, and use of any existing uranium enrichment facilities. 
42 u s e 2297e-7. 'nSEC. 1608. EXCLUSION FROM PRICE-ANDERSON COVERAGE. 
"Section 170 shall not apply to any license under section 53, 
63, or 103 for a uranium enrichment faciUty constructed after 
the date of the enactment of this title.". 
SEC. 902. C O N F O R M I N G AMENDMENTS AND REPEALERS. 
(a) ATOMIC ENERGY ACT OF 1954.— 
(1) The Atomic Energy Act of 1954 (42 U.S.C. 2011 et 
seq.) is amended— 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2943 
(A) by inserting after "ATOMIC ENERGY ACT OF 
1954" the 1st place it appears the following: 
"TABLE OF CONTENTS 
TITLE I—ATOMIC ENERGY"; 
and 
(B) by adding at the end of the table of contents the 
following: 
TITLE n—UNITED STATES ENRICHMENT CORPORATION 
"CHAPTER 22—GENERAL PROVISIONS 
"Sec. 1201. Definitions. 
"Sec. 1202. Purposes. 
"CHAPTER 23—ESTABUSHMENT, POWERS, AND ORGANIZATION OF CORPORATION 
"Sec. 1301. Establishment of the Corporation. 
"Sec. 1302. Corporate offices. 
"Sec. 1303. Powers of the Corporation. 
"Sec. 1304. Board of Directors. 
"Sec. 1305. Employeesof the Corporation. 
"Sec. 1306. Au(&ts. 
"Sec. 1307. Annual reports. 
"Sec. 1308. Accounts. 
"Sec. 1309. Obligations. 
"Sec. 1310. Exemptionfirom taxation and payments in lieu of taxes. 
"Sec. 1311. Cooperation with other agencies. 
"Sec. 1312. Applicability of certain Federal laws. 
"Sec. 1313. Securitv. 
"Sec. 1314. Control of information. 
"Sec. 1315. Transition. 
"Sec. 1316. Working Capital Account. 
"CHAPTER 24—RIGHTS, PRIVILEGES, AND ASSETS OF THE CORPORATION 
"Sec. 1401. Marketing and contracting authority. 
"Sec. 1402. Pricing. 
"Sec. 1403. Leasing of gaseous difiiision facilities of department 
"Sec. 1404. Capitalstructture of Corporation. 
"Sec. 1405. Patents and inventions. 
"Sec. 1406. Liabilities. 
"Sec. 1407. Transfer of uranium inventories. 
"Sec. 1408. Purchaseof highly enriched uranium 
fiivm 
former Soviet Union. 
"CHAPTER 25—PRIVATIZATION OF THE CORPORATION 
"Sec. 1501. Strategic plan for privatization. 
"Sec. 1502. Privatization. 
"CHAPTER 26—AVLIS AND ALTERNATIVE TECHNOLOGIES FOR URANIUM ENRICHMENT 
"Sec. 1601. Assessment b^ United States Enrichment Corporation. 
"Sec. 1602. Transfer of nj^ts and property to United States Enrichment Corpora-
tion. 
"Sec. 1603. Predeplcmnent activities by United States Enrichment Corporation. 
"Sec. 1604. United States Enrichment Corporation sponsorship of private for-profit 
corporation to construct AVLIS and alternative technologies for uranium 
enrichment. 
"Sec. 1605. AVLIS Commercialization Fund within United States Enrichment Cor-
poration. 
"Sec. 1606. Department research and development assistance. 
"Sec. 1607. Site selection. 
"Sec. 1608. Exclusion 
firom 
Price-Anderson coverage.". 
(2) Section 41 a. of the Atomic Energy Act of 1954 (42 
U.S.C. 2061(a)) is amended— 
(A) by striking "or"; 
(B) by striking "pursuant to under this Act" and insert-
ing "under this title"; and 
(C) by striking tiie period at the end and inserting 
"; or (3) are owned by the United States Enrichment Cor-
poration.". 
106 STAT. 2944 
PUBLIC LAW 102-486—OCT. 24, 1992 
(3) Section 53 c. (1) of the Atomic Energy Act of 1954 
(42 U.S.C. 2073(cXl)) is amended— 
(A) by striking "grant," and inserting "or grant"; and 
(B) by striking "or through the provision of production 
or enrichment services" both places it appears. 
(4) Section 161 v. of the Atomic Energy Act of 1954 (42 
U.S.C. 2201(v)) is amended to read as follows: 
*V. provide services in support of the United States Enrich-
ment Corporation, except that the Secretary of Energy shall 
annually collect payments and other charges from the Corpora-
tion sufficient to ensvire recovery of the costs (excluding depre-
ciation and imputed interest on original plant investments in 
the Department's gaseous diffusion plants and costs under sec-
tion 1403(d)) incurred by the Department of Energy after the 
date of the enactment of the Energy Policy Act of 1992 in 
performing such services;". 
(5) Section 161 w. of the Atomic Energy Act of 1954 (42 
U.S.C. 2201(w)) is amended— 
(A) by striking the comma after "104 b." and inserting 
the following: ", or which operates any facility regulated 
or certified under section 1701 or 1702,"; and 
(B) by inserting "or certificates" aifter "holders of, such 
licenses" 
(6) Section 274 c. (1) of the Atomic Energy Act of 1954 
(42 U.S.C. 2021(cXl)) is amended by inserting "or any uranium 
enrichment facility" before the semicolon at the end. 
(7) Section 318(1) of the Atomic Energy Act of 1954 (42 
U.S.C. 2286g(l)) is amended by striking "or" at the end of 
subparagraph (B), by striking the period at the end of subpara-
graph (C) and inserting "; or", and by adding at the end the 
following new subparagraph: 
"(D) any facility owned by the United States Enrich-
ment Corporation.". 
(8) The Atomic Energy Act of 1954 (42 U.S.C. 2011 et 
seq.) is amended b^ inserting before the chapter heading for 
chapter 1 the following new heading: 
"TITLE I—ATOMIC ENERGY^. 
(b) (JOVERNMENT CORPORATION CONTROL PROVISIONS.—Section 
9101(3) of title 31, United States Code is amended by adding 
at the end the following: 
"(N) the Uramum Enrichment Corporation.". 
(c) ENERGY AND WATER DEVELOPMENT APPROPRIATION ACT, 
Repeal. 
1988.—Section 306 of the Energy and Water Development Appro-
priation Act, 1988 (Pub. L. 100-202; 101 Stat. 1329-126) is repealed. 
(d) 
EXEMPTION 
FROM 
DEFICIT 
CONTROL 
ACT.—Section 
255(g)(lXA) of the Balanced Budget and Emergency Deficit Control 
Act of 1985 (2 U.S.C. 905(gXlXA)) is amended by inserting after 
the item relating to the Tennessee Valley Authority fimd the follow-
ing new item: 
"United States Enrichment Corporation;". 
SEC. 90S. RESTRICTIONS ON NUCLEAR EXPORTS. 
(a) FURTHER RESTRICTIONS.— 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2945 
(1) IN GENERAL.—Chapter 11 of the Atomic Energy Act 
of 1954 (42 U.S.C. 2151 et seq.) is amended by adding at 
the end the following new section: 
"SEC. 134. FURTHER RESTRICTIONS ON EXPORTS.— 
42 use 2i60d. 
"a. The Commission may issue a license for the export of 
highly enriched uranium to be used as a fuel or target in a nuclear 
research or test reactor only if, in addition to any other requirement 
of this Act, the Conunission determines Uiat— 
"(1) there is no alternative nuclear reactor fuel or target 
enriched in the isotope 235 to a lesser percent than the proposed 
export, that can be used in that reactor; 
"(2) the proposed recipient of that uraniimi has provided 
assurances that, whenever an alternative nuclear reactor fuel 
or target can be used in that reactor, it will use that alternative 
in lieu of highly enriched uranium; and 
"(3) the United States Government is actively developing 
an alternative nuclear reactor fuel or target that can be used 
in that reactor. 
**b. As used in this section— 
"(1) the term 'alternative nuclear reactor fuel or target' 
means a nuclear reactor fuel or target which is enriched to 
less than 20 percent in the isotope U-235; 
"(2) the term liighly enriched uranium' means uraniimi 
enriched to 20 percent or more in the isotope U-235; and 
"(3) a fuel or target 'can be used' in a nuclear research 
or test reactor if— 
"(A) the fuel or target has been qualified by the 
Reduced Enrichment Research and Test Reactor Program 
of the Department of Energy, and 
"(B) use of the fuel or target will permit the large 
msgority of ongoing and planned experiments and isotope 
production to be conducted in the reactor without a l£irge 
percentage increase in the total cost of operating the reac-
tor.". 
(2) CLERICAL AMENDMENT.—The table of contents of the 
Atomic Energy Act of 1954 is amended by adding at the end 
of the items relating to chapter 11 the following new item: 
"Sec. 134. Further restrictions on exports.". 
(b) REPORT TO CONGRESS.— 
(1) IN GENERAL.—Not later than 90 days after the date 
of the enactment of this Act, the Chairman of the Nuclear 
Regulatory Commission, after consulting with other relevant 
agencies, shall submit to the Congress a report detailing the 
current disposition of previous United States exports of Mghly 
enriched uranium, including— 
(A) their location; 
(B) whether they are irradiated; 
(C) whether they have been used for the purpose stated 
in their export license; and 
(D) whether they have been used for an alternative 
purpose and, if so, whether such alternative purpose has 
been explicitly approved by the Commission. 
(2) EXPORTS TO EURATOM.—TO the maximum extent pos-
sible, the report required by paragraph (1) shall include— 
(A) exports of highly enriched uranium to EURATOM; 
and 
106 STAT. 2946 
PUBLIC LAW 102-486—OCT. 24, 1992 
(B) subsequent retransfers of such material within 
EURATOM, without regard to the extent of United States 
control over such retransfers. 
42 use 2297 
SEC. 904. SEVERABILITY. 
If any provision of this title, or the amendments made by 
this title, or the application of any provision to any entity, person, 
or circumstance, is for any reason amudged by a court of competent 
jurisdiction to be invalid, the remainder of this title, and the amend-
ments made by this title, or its application shall not be affected. 
TITLE X—REMEDIAL ACTION AND 
URANIUM REVITALIZATION 
Subtitle A—^Remedial Action at Active 
Processing Sites 
42 use 2296a. 
SEC. 1001. REMEDIAL ACTION PROGRAM. 
(a) IN GENERAL.—^Except as provided in subsection (b), the 
costs of decontamination, decommissioning, reclamation, and other 
remedial action at an active uranium or thorium processing site 
shall be borne by persons licensed imder section 62 or 81 of the 
Atomic Energy Act of 1954 (42 U.S.C. 2091, 2111) for any activity 
at such site which results or has resulted in the production of 
bjrproduct material. 
(b) REIMBURSEMENT.— 
(1) IN GENERAL.—^The Secretary of Energy shall, subject 
to paragraph (2), reimburse at least annually a Ucensee 
described in subsection (a) for such portion of the costs 
described in such subsection as are— 
(A) determined by the Secretary to be attributable 
to byproduct material generated as an incident of sales 
to the United States; and 
(B) either— 
(i) incurred by such licensee not later than Decem-
ber 31,2002; or 
(ii) placed in escrow not later than December 31, 
2002, in accordance with a plan for subsequent decon-
tamination, decommissioning, reclamation, and other 
remedial action approved by the Secretary. 
(2) AMOUNT.— 
(A) TO INDIVIDUAL ACTIVE SITE URANIUM UCENSEES.— 
The amount of reimbursement paid to any licensee under 
paragraph (1) shall be determined by the Secretary in 
accordance with regulations issued pursuant to section 
1002 and, for uranium mill tailin^ps only, shall not exceed 
an amount equal to $5.50 multiplied by the dry short 
tons of byproduct material located on the date of the enact-
ment of this Act at the site of the activities of such licensee 
described in subsection (a), and generated as an incident 
of sales to the United States. 
(B) To A
L
L A
C
T
I
V
E SITE U
R
A
N
I
U
M LICENSEES.—Pay-
ments made under paragraph (1) to active site uranium 
Ucensees shall not in the aggregate exceed $270,000,000. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT'. 2947 
(C) To T
H
O
R
I
U
M LICENSEES.—Payments made under 
paragraph (1) to the licensee of the active thorium site 
shall not exceed $40,000,000, and may only be made for 
ofiT-site disposal. 
(D) INFLATION ESCALATION INDEX.—The amounts in 
subptiragraphs (A), (B), and (C) of this paragraph shall 
be increased annually based upon an inflation index. The 
Secretary shall determine the appropriate index to apply. 
(E) ADDITIONAL REIMBURSEMENT.— 
(i) DETERMINATION OF EXCESS.—The Secretary 
shall determine as of July 31, 2005, whether the 
amount authorized to be appropriated pursuant to sec-
tion 1003, when considered with the $5.50 per dry 
short ton limit on reimbursement, exceeds the amount 
reimbursable to the licensees under subsection (bX2). 
(ii) IN THE EVENT OF EXCESS.—If the Secretaiy 
determines under clause (i) that there is an excess, 
the Secretary may allow reimbursement in excess of 
$5.50 per diy short ton on a prorated basis at such 
sites where the costs reimbursable under subsection 
(bXl) exceed the $5.50 per dry short ton limitation 
described in paragraph (2) of such subsection. 
(3) BYPRODUCT LOCATION.—Notwithstanding the require-
ment of paragraph (2XA) that byproduct material be located 
at the site on the date of the enactment of this Act, bjrproduct 
material moved from the site of the Edgemont Mill to a oisposal 
site as the result of the decontamination, decommissioning, 
reclamation, and other remedial action of such mill shall be 
eligible for reimbursement to the extent eligible under para-
graph (1). 
SEC. 1002. REGULATIONS. 
42 USC 2296a-l. 
Within 180 days of the date of the enactment of this Act, 
the Secretary shall issue regulations governing reimbursement 
under section 1001. An active uranium or thorium processing site 
owner shall apply for reimbursement hereimder by submittmg a 
request for the amount of reimbursement, together with reasonaole 
documentation in support thereof, to the Secretary. Any such 
request for reimbursement, supported by reasonable documentation, 
shall be approved by the Secretary and reimbursement therefor 
shall be made in a timely manner subject only to the Umitations 
of section 1001. 
SEC. 1008. AUTHORIZATION OF APPROPRIATIONS. 
42 USC 2296a-2. 
(a) IN GENERAL.—^There is authorized to be appropriated 
$310,Ok)0,000 to carry out this subtitle. The aggregate amoimt 
authorized in the ptreceding sentence shall be increased annually 
as provided in section 1001, based upon an inflation index to be 
determined by the Secretary. 
(b) SOURCE.—^Funds described in subsection (a) shall be pro-
vided from the Fund established under section 1801 of the Atomic 
Energy Act of 1954. 
SEC. 1004. DEFINITIONS. 
42 USC 2296a-3. 
For purposes of this subtitle: 
(1) The term "active uranium or thorium processing site" 
means— 
106 STAT. 2948 
PUBLIC LAW 102-486—OCT. 24, 1992 
(A) any uranium or thorium processing site, including 
the mill, containing byproduct material for which a license 
(issued by the Nuclear Regulatory Commission or its prede-
cessor agency under the Atomic Energy Act of 1954, or 
by a State as permitted under section 274 of such Act 
(42 U.S.C. 2021)) for the production at such site of any 
uranium or thorium derived from ore— 
(i) was in effect on January 1,1978; 
(ii) was issued or renewed after January 1, 1978; 
or 
(iii) for which an application for renewal or issu-
ance was pending on, or after January 1, 1978; and 
(B) any other real property or improvement on such 
real property that is determined by the Secretary or by 
a State as permitted under section 274 of the Atomic 
Energy Act of 1954 (42 U.S.C. 2021) to bfr— 
(i) in the vicinity of such site; and 
(ii) contaminated with residiial byproduct material; 
(2) The term 'byproduct material" has the meaning given 
such term in section 11 e. (2) of the Atomic Energy Act of 
1954, (42 U.S.C. 2014(eX2)); and 
(3) The term "decontaioination, decommissioning, reclama-
tion, and other remedial action" means work performed prior 
to or subsequent to the date of the enactment of this Act 
which is necessanr to comply with all applicable requirements 
of the Uraniimi Mill Tailmgs Radiation Control Act of 1978 
(42 U.S.C. 7901 et seq.), or where appropriate, with require-
ments established by a State that is a party to a discontinuance 
agreement under section 274 of the Atomic Energy Act of 
1954 (42 U.S.C. 2021). 
Subtitle B—^Uranium Revitalization 
42 use 2296b. 
SEC. 1011. OVERFEED PROGRAM. 
(a) URANIUM PURCHASES.—^To the maximum extent permitted 
by sound business practice, the Corporation shall purchase uranium 
in accordance with subsection (b) and overfeed it into the enrich-
ment process to reduce the amount of power required to produce 
the enriched uranium ordered by enricnment services customers, 
taking into account costs associated with depleted tailings. 
(b) USE OF DOMESTIC URANIUM.—Uranium purchased by the 
Corporation for purposes of this section shall be of domestic origin 
and purchased from domestic uranium producers to the extent 
permitted under the General ^reement on Tariffs and Trade and 
the United States-Canada Free Trade Agreement. 
42 use 2296b-l. SEC. 1012. NATIONAL STRATEGIC URANIUM RESERVE. 
There is hereby established the National Strategic Uranium 
Reserve under the direction and control of the Secretary. The 
Reserve shall consist of natiiral uraniiun £Uid uranium equivalents 
contained in stockpiles or inventories currently held by the United 
States for defense purposes. Effective on the date of the enactment 
of this Act and for 6 years thereafter, use of the Reserve shall 
be restricted to military purposes and government research. Use 
of the Department of Energy's stockpile of enrichment tails existing 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2949 
on the date of the enactment of this Act shall be restricted to 
military purposes for 6 years thereafter. 
SEC. 1013. SALE OF REMAINING DOE INVENTORIES. 
42 USC 2296b-2. 
The Secretary, after making the transfer required under section 
1407 of the Atomic Energy Act of 1954, may sell, from time to 
time, portions of the remaining inventories of raw or low-enriched 
uranium of the Department that are not necessary to national 
security needs, to tne Corporation, at a fair market price. Sales 
under this section may be made only if such sales wul not have 
a substantial adverse impact on the domestic uranium mining 
industry. Proceeds from sales under this subsection shall be depos-
ited into the general fund of the United States Treasury. 
SEC. 1014. RESPONSIBILITY FOR THE INDUSTRY. 
42 USC 2296b-3. 
(a) CONTINUING SECRETARIAL RESPONSiBiUTy.—The Secretary 
shall have a continuing responsibility for the domestic uraniiun 
industry to encourage the use of domestic uranium. The Secretary, 
in fulfilling this responsibility, shall not use any supervisory author-
ity over the Corporation. The Secretary shall report annually to 
the appropriate committees of Congress on action taken with respect 
to the domestic uranium industry, including action to promote 
the export of domestic uranium pursuant to subsection (b). 
(b) ENCOURAGE EXPORT.—The Department, with the coopera-
tion of the Department of Commerce, the United States Trade 
Representative and other governmental organizations, shsdl encour-
age the export of domestic uranium. Within 180 davs after the 
date of the enactment of this Act, the Secretary shall develop 
recommendations and implement government programs to promote 
the export of domestic uranium. 
SEC. 1015. ANNUAL URANIUM PURCHASE REPORTS. 
42 USC 2296b-4. 
(a) IN GENERAL.—^By January 1 of each year, the owner or 
operator of any civiUan nuclear power reactor shall report to the 
Secretary, acting through the Administrator of the Energy Informa-
tion Administration, for activities of the previous fiscal year— 
(1) the country of origin and Uie seller of any uraniimi 
or enriched uranium purchased or imported into the United 
States either directly or indirectly by such owner or operator; 
and 
(2) the country of origin and the seller of any enrichment 
services purchased by such owner or operator. 
(b) CONGRESSIONAL ACCESS.—The information provided to the 
Secretary pursuant to this section shall be made available to the 
Congress by March 1 of each year. 
SEC. 1016. URANIUM INVENTORY STUDY. 
42 USC 2296b-5. 
Within 1 year after the date of the enactment of this Act, 
the Secretary shall submit to the Congress a study and report 
that includes— 
(1) a comprehensive inventory of all Government owned 
uranium or uranium equivalents, including natural uraniimi, 
depleted tailings, low-enriched uranium, and highly enriched 
uranium available for conversion to commercial use; 
(2) a plan for the conversion of inventories of foreign and 
domestic highly enriched uraniiun to low-enriched uranium 
for commercial use; 
106 STAT. 2950 
PUBLIC LAW 102-486—OCT. 24, 1992 
(3) an estimation of the potential need of the United States 
for inventories of highly enriched uranium; 
(4) an analysis and summary of technological requirements 
and costs associated with converting highly enriched uranium 
to low-enriched uranium, including the construction of facilities 
if necessary; 
(5) an estimation of potential net proceeds 
firom 
the conver-
sion and sale of highljr enriched uranium; 
(6) recommendations for implementing a plan to convert 
highly enriched uranium to low-enriched uraniimi; and 
(7) recommendations for the future use and disposition 
of such inventories. 
42 use 2296b-6. SEC. 1017. REGULATORY TREATMENT OF URANIUM PURCHASES. 
(a) ENCOURAGEMENT.—^The Secretary shall encourage States 
and utility regulatory authorities to take into consideration the 
achievement of 
the objectives and purposes of this subtitle, including 
the national need to avoid dependence on imports, when considering 
whether to allow the owner or operator of any electric power plant 
to recover in its rates and charges to customers any cost of purchase 
of domestic uraniimi, enriched uranium, or enrichment services 
from a non-affiliated seller greater than the cost of non-domestic 
uranium, enriched uraniiun or enrichment services. 
(b) REPORT.—^Within 1 year after the date of the enactment 
of this Act, and annually uiereafter, the Secretary shall report 
to the Congress on the progress of the Secretary in encoiiraging 
actions by State regulatory authorities pursuant to subsection (a). 
Such report shall include detailed information on programs initiated 
by the Secretary to encourage appropriate State regulatory action 
and recommendations, if any, on furtner action that could be ts^en 
by the Secretary, other Federal agencies, or the Congress in order 
to further the purposes of this subtitle. 
(c) SAVINGS PROVISION.—^This section may not be construed 
to authorize the Secretary to take any action in violation of the 
General Agreement on Tariffs and Trade or the United States-
Canada Free Trade Agreement. 
42 use 2296b-7. 
SEC. 1018. DEFINITIONS. 
For purposes of this subtitle: 
(1) The term "Corporation" means the United States 
Enrichment Corporation established under section 1301 of the 
Atomic Energy Act of 1954, as added by this Act. 
(2) The term "country of origin" me£uis— 
(A) with respect to uranium, that coimtry where the 
uranium was mined; 
(B) with respect to enriched uranium, that country 
where the uranium was mined and enriched; or 
(C) with respect to enrichment services, that country 
where the enrichment services were performed. 
(3) The term "domestic origin" refers to any uranium that 
has been mined in the United States including uranium recov-
ered from uranium deposits in the United States by under-
groimd mining, open-pit mining, strip mining, in situ recovery, 
leaching, and ion recovery, or recovered from phosphoric acid 
manufactured in the United States. 
(4) The term "domestic uranium producer" means a person 
or entity who produces domestic uranium and who has, to 
the extent required by State and Federal agencies having juris-
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2951 
diction, licenses and permits for the operation, decontamination, 
decommissioning, and reclamation of sites, structures and 
equipment. 
(5) The term "non-affiliated" refers to a seller who does 
not control, and is not controlled by or under common control 
with, the buyer. 
(6) The term "overfeed" means to use uraniimi in the 
enrichment process in excess of the amount required at the 
transactional tails assay. 
(7) The term "utility regulatory authoritjr** means any State 
agency or Federal agency that has ratemaking authority with 
respect to the sale of electric energy by any electric utility 
or independent power producer. For purposes of this paragraph, 
the terms "electric utility^, "State agency", "Federal agency", 
and "ratemaking authority" have the respective meanings given 
such terms in section 3 of the Public Utility Regulatory Policies 
Act of 1978. 
Subtitle C—^Remedial Action at Inactive 
Processing Sites 
SEC. 1031. URANIUM MILL TAILINGS RADIATION CONTROL ACT EXTEN-
SION. 
Section 112(a) of the Uranium Mill Tailings Radiation Control 
Act of 1978 (42 U.S.C. 7922(a)) is amended by striking "1994" 
and inserting "1996". 
TITLE 
XI—URANIUM 
ENRICHMENT 
HEALTH, SAFETY, AND ENVIRONMENT 
ISSUES 
SEC. 1101. URANIUM ENRICHMENT HEALTH, SAFETY, AND ENVIRON-
MENT ISSUES. 
The Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.), as 
amended by title IX of this Act, is further amended by adding 
at the end of title II the following: 
*«CHAPTER 27—UCENSING AND REGULATION OF 
URANIUM ENRICHMENT FACILITIES 
'•SEC. 1701. GASEOUS DIFFUSION FACIUTIES. 
42 USC 2297f. 
"(a) ISSUANCE OF STANDARDS.—Within 2 years after the date Regulations. 
of the enactment of this title, the Nuclear Regulatory Commission 
shall establish by regulation such standards as are necessary to 
£H)vem the gaseous diffusion uranium enrichment facilities of the 
Department in order to protect the public health and safety from 
radiological hazard and provide for the common defense and secu-
rity. Regulations promulgated pursuant to this subsection shall, 
among other things, require that adequate safeguards (within the 
meaning of section 147) are in place. 
"(b) ANNUAL REPORT.— 
"(1) IN GENERAL.—^The Nuclear Regulatory Commission, 
in consultation with the Department and the Environmental 
106 STAT. 2952 
PUBLIC LAW 102-486—OCT. 24, 1992 
Protection Agency, shall report at least annually to the Con-
gress on the status of health, safety, and environmental condi-
tions at the gaseous diffusion uranium enrichment facilities 
of the Department. 
"(2) REQUIRED DETERMINATION.—Such report shall include 
a determination regarding whether the gaseous diffusion ura-
nium enrichment facilities of the Department are in compliance 
with the standards established under subsection (a) and all 
applicable laws. 
"(c) CERTIFICATION PROCESS.— 
"(1) ESTABUSHMENT.-The Nuclear Regulatory Commission 
shall establish a certification process to ensure that the Cor-
poration complies with standards established under subsection 
fa). 
"(2) ANNUAL APPUCATION FOR CERTIFICATE OF COMPU-
A
N
C
E
.
—
^
T
h
e Corporation shall apply at least annually to the 
Nuclear Regulatory Commission for a certificate of compliance 
under paragraph (1). The Nuclear Regulatory Commission, in 
consvdtation with the Environmental Protection Agency, shall 
review any such appUcation and any determination made under 
subsection (bX2) shall be based on the results of any such 
review. 
"(3) TREATMENT OF CERTIFICATE OF COMPLIANCE.—The 
requirement for a certificate of compliance under paragraph 
(1) shall be in lieu of any requirement for a license for any 
gaseous diffusion facility of the Department leased by the Cor-
poration. 
"(4) NRC REVIEW.— 
"(A) IN GENERAL.—^The Nuclear Regulatory Commis-
sion, in consultation with the Environmental Protection 
Agency, shall review the operations of the Corporation 
with respect to any gaseous diffusion uranium enrichment 
facilities of the Department leased by the Corporation to 
ensure that public health and safety are adequately pro-
tected. 
"(B) ACCESS TO FACILITIES AND INFORMATION.—The 
Corporation and the Department shall cooperate fully with 
tiie Nuclear Regulatory Commission and the Environ-
mental Protection Agency and shall provide the Nuclear 
Regulatory Commission and the Environmental Protection 
Agency with the ready access to the facilities, personnel, 
and information the Nuclear Regulatory Commission and 
the Environmental Protection i^ency consider necessary 
to carry out their responsibilities under this subsection. 
A contractor operating a Corporation faciUty for the Cor-
poration shall provide the Nuclear Regulatory Commission 
and the Environmental Protection Agency with ready 
access to the facilities, personnel, and information of the 
contractor as the Nuclear Regulatory Commission and the 
Environmental Protection Agency^ consider necessary to 
carry out their responsibilities under this subsection. 
"(C) LIMITATION.—^The Nuclear Regulatoiy Commission 
shall Umit its finding under subsection (bX2) to a deter-
mination of whether the facilities are in compliance with 
the standards established under subsection (a), 
"(d) I^QUIREMENT F
O
R O
P
E
R
A
T
I
O
N
.
—
^
T
h
e gaseous diffusion ura-
nium enrichment facilities of the Department may not be operated 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2953 
by the Corporation unless the Nuclear Regulatory Commission, 
in consultation with the Environmental Protection Agency, makes 
a determination of compliance under subsection (b) or approves 
a plan prepared by the Department for achieving compliance 
required unaer subsection (b). 
'^EC. 1702. UCENSING OF OTHER TECHNOLOGIES. 
42 USC 2297f-l. 
"(a) IN GENERAL.—Corporation facilities using alternative tech-
nologies for uranium enrichment, other than AVLIS, shall be 
Ucensed imder sections 53 and 63. 
"(b) COSTS FOR DECONTAMINATION AND DECOMMISSIONING.— 
The Corporation shall provide for the costs of decontamination 
and decommissioning of an^ Corporation facilities described in sub-
section (a) in accordance with the requirements of the amendments 
made by section 5 of the Solar, Wind, Waste, and Geothermal 
Power Production Act of 1990. 
"SEC. 1703. REGULATION OF RESTRICTED DATA. 
42 USC 2297f-2. 
The Corporation shall be subject to this Act with respect 
to the use of, or access to. Restricted Data to the same extent 
as any private corporation. 
**CHAPTER 28—DECONTAMINATION AND 
DECOMMISSIONING 
"SEC. 1801. URANIUM 
ENRICHMENT 
DECONTAMINATION 
AND 42 USC 2:297g. 
DECOMMISSIONING FUND. 
"(a) ESTABLISHMENT.—There is established in the Treasury of 
the United States an account to be known as the Uranium Enrich-
ment Decontamination and Decommissioning Fund (referred to in 
this chapter as the Tund'). The Fund, and any amounts deposited 
in it, including any interest earned thereon, shall be available 
to the Secretary subject to appropriations for the exclusive purpose 
of carrying out this chapter. 
"(b) ADMINISTRATION.— 
"(1) IN GENERAL.—The Secretary of the Treasury shall hold 
the Fund and, after consultation with the Secretaiy, annually 
report to the Congress on the financial condition and operations 
of the Fund during the preceding fiscal year. 
"(2) INVESTMENTS.—The Secretary of the Treasury shall 
invest amounts contained within the Fund in obligations of 
the United States— 
"(A) having maturities determined by the Secretary 
of the Treasuiy to be appropriate for what the Department 
determines to be the needs of the Fund; and 
"(B) bearing interest at rates determined to be appro-
priate by the Secretary of the Treasury, taking into consid-
eration the current average market jrield on outstanding 
marketable obligations of the United States with remaining 
periods to maturity comparable to these obligations. 
"SEC. 1802. DEPOSITS. 
42 USC 2297g-l. 
"(a) AMOUNT.—^The Fund shall consist of deposits in the amount 
of $480,000,000 per fiscal year (to be annually ac^usted for inflation 
using the Consumer Price Index for all-urban consumers published 
by the Department of Labor) as provided in this section. 
"(b) SOURCE.—^Deposits described in subsection (a) shall be 
from the following sources: 
106 STAT. 2954 
PUBLIC LAW 102-486—OCT. 24, 1992 
"(1) Sums collected pursuant to subsection (c). 
"(2) Appropriations made pursuant to subsection (d). 
"(c) SPECIAL ASSESSMENT.—^The Secretary shall collect a special 
assessment from domestic utilities. The total amount collected for 
a fiscal year shall not exceed $150,000,000 (to be annually adjusted 
for inflation using the Consumer Price Index for all-urban consimi-
ers published by the Department of Labor). The amount collected 
from each utiUty pursuant to this subsection for a fiscal year 
shall be in the same ratio to the amount required under subsection 
(a) to be deposited for such fiscal year as the total amount of 
separative work units such utilitv has purchased from the Depart-
ment of Energy for the purpose of commercial electricity generation, 
before the date of the enactment of this title, bears to the total 
amount of separative work units purchased from the Department 
of Energy for all purposes (including imits purchased or produced 
for defense purposes) before the date of the enactment of this 
title. For purposes of this subsection— 
"(1) a utility shall be considered to have purchased a sepa-
rative work unit from the Department if sucn separative work 
unit was produced by the Department, but purchased by the 
utiUty from another source; and 
"(2) a utility shall not be considered to have purchased 
a separative work unit from the Department if such separative 
work unit was purchased by the utility, but sold to anotiier 
source. 
"(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Fund, for the period encompassing 15 
years alter the date of the enactment of this title, such siuns 
as are necessary to ensure that the amount required under sub-
section (a) is deposited for each 
fiscal 
year. 
"(e) TERMINATION OF ASSESSMENTS.—The collection of amounts 
under subsection (c) shall cease after the earUer of— 
"(1) 15 years after the date of the enactment of this title; 
or 
"(2) the collection of $2,250,000,000 (to be annually adjusted 
for inflation using the Consumer Price Index for all-urban 
consumers published by tiie Department of Labor) under such 
subsection. 
"(£) CONTINUATION OF DEPOSITS.—Except as provided in sub-
section (e), deposits shall continue to be made into the Frnid under 
subsection (d) for the period specified in such subsection. 
"(g) TREATMENT OF ASSESSMENT.—Any special assessment lev-
ied under this section on domestic utilities for the decontamination 
and decommissioning of the Department's gaseous diffusion enrich-
ment facilities shall be deemed a necessary and reasonable current 
cost of fuel and shall be fully recoverable in rates in all jurisdictions 
in the same manner as the utiUt/s other fuel cost. 
42 use 2297g-2. '9EC. 1803. DEPARTMENT FACILrnES. 
"(a) STUDY BY NATIONAL ACADEMY OF SCIENCES.—The National 
Academy of Sciences shall conduct a study and provide rec-
ommendations for reducing costs associated with decontamination 
and decommissioning, and shall report its findings to the Congress 
within 3 years after the date of the enactment of this title. Such 
report shall include a determination of Hie decontamination and 
decommissioning required for each facility, shall identify alternative 
metliods, using different technologies, shall include site-specific sur-
PUBLIC LAW 102-486—(Xrr. 24, 1992 
106 STAT. 2955 
veys of the actual contamination, and shall provide estimated costs 
of those activities. 
"(b) PAYMENT OF DECONTAMINATION AND DECOMMISSIONING 
COSTS.—^The costs of all decontamination and decommissioning 
activities of the Department shall be paid from the Fund until 
such time as the Secretary certifies and the Congress concurs, 
by law, that such activities are complete. 
"(c) PAYMENT OF REMEDIAL ACTION COSTS.—The annual cost 
of remedial action at the Department's gaseous difiiision facilities 
shall be paid frt)m the Fund to the extent the amount available 
in the Fund is sufficient. To the extent the amount in the Fund 
is insufficient, tlie Department shall be responsible for the cost 
of remedial action. No provision of this title may be construed 
to reUeve in any way the responsibiUty or liability of the Depart-
ment for remedial action imder appUcable Federal and State laws 
and regulations. 
«SEC. 1804. EMPLOYEE PROVISIONS. 
42 USC 2297g-3. 
"All laborers and mechanics employed by contractors or sub-
contractors in the performance of decontamination or decommission-
ing of uranium enrichment facilities of the Department shall be 
paid wages at rates not less than those prevailing on projects 
of a similar character in the locality as determined by the Secretary 
of Labor in accordance with the Act of March 3, 1931 (known 
as the Davis-Bacon Act) (40 U.S.C. 276a et seq.). The Secretary 
of Labor shall have, with respect to the labor standards specified 
in this section, the authority and functions set forth in Reorganiza-
tion Plan Numbered 14 of 1950 (15 F.R. 3176, 64 Stat. 1267) 
and the Act of June 13, 1934 (40 U.S.C. 276c). This section may 
not be construed to reqmre the contracting out of activities assoa-
ated with the decontamination or decommissioning of uranium 
enrichment facihties. 
'«EC. 1805. REPORTS TO CONGRESS. 
42 USC 2297g-4. 
"Within 3 years after the date of the enactment of this title, 
and at least once every 3 years thereafter, the Secretary shall 
report to the Congress on progress under this chapter. The 5th 
report submitted under this section shall contain recommendations 
of the Secretary for the reauthorization of the program and Fund 
under this title.". 
SEC. 1102. U C E N S I N G OF AVLIS. 
The last sentence of section 11 v. of the Atomic Energy Act 
of 1954 (42 U.S.C. 2014(v)) is amended to read as follows: "Except 
with respect to the export of a uranium enrichment production 
facility or tiie construction and operation of a uranium enrichment 
production facility using Atomic Vapor Laser Isotope Separation 
technology, such term as used in chapters 10 and 16 shall not 
include anv equipment or device (or important component part 
especially designed for such equipment or device) capable of separat-
ing the isotopes of uranium or enriching uranium in the isotope 
235.". 
SEC. 1103. TABLE OF CONTENTS. 
The table of contents for title 11 of the Atomic Energy Act 
of 1954, as added by title IX of this Act, is amended by adding 
at the end the following: 
106 STAT. 2956 
PUBLIC LAW 102-486—OCT. 24, 1992 
'
H
i
^
H
A
P
T
E
R 27—LICENSING AND REGULATION OF URANIUM ENRICHMENT FACIUTIES 
"Sec. 1701. Gaseous difiusion facilities. 
"Sec. 1702. Licensing of other technologies. 
"Sec. 1703. Regulation of restricted data. 
"CHAPTER 28—DECONTAMINATION AND DECOMMISSIONING 
"Sec. 1801. Uranium Enrichment Decontamination and Decommissioning Fund. 
"Sec. 1802. Deposits. 
"Sec. 1803. Department facilities. 
"Sec. 1804. Employee provisions. 
"Sec. 1805. Reports to Congress.". 
TITLE XII—RENEWABLE ENERGY 
42 use 13311. 
SEC. 1201. PURPOSES. 
The purposes of this title are to promote— 
(1) increases in the production and utilization of energy 
from renewable energy resources; 
(2) further advances of renewable energy technologies; and 
(3) exports of United States renewable energy technologies 
and services. 
SEC. 1202. DEMONSTRATION 
AND 
COMMERCIAL 
APPUCATION 
PROJECTS FOR RENEWABLE ENERGY AND ENERGY EFFI-
CIENCY TECHNOLOGIES. 
(a) 
DEMONSTRATION 
AND 
COMMERCIAL 
APPLICATION 
PROJECTS.—Section 6 of the Renewable Energy and Energy Effi-
ciency Technology Competitiveness Act of 1989 (42 U.S.C. 12005) 
is amended to read as follows: 
'^EC. 6. DEMONSTRATION 
AND 
COMMERCIAL 
APPLICATION 
PROJECTS. 
"(a) PURPOSE.—^The purpose of this section is to direct the 
Secretary to further the commercialization of renewable energy 
and energy efficiency technologies through a five-year program. 
"(B) 
DEMONSTRATION 
AND 
COMMERCIAL 
APPLICATION 
PROJECTS.— 
"(1) ESTABLISHMENT.—(A) The Secretary shall solicit 
proposals for demonstration 
and commercial 
application 
projects for renewable energy and energy efficiency technologies 
pursuant to subsection (c). Such projects may include projects 
for— 
"(i) the production and sale of electricity, thermal 
energy, or other forms of energy using a renewable energy 
technology; 
"(ii) increasing the efficiency of energy use; and 
"(iii) improvements in, or expansion of, facilities for 
the manufacture of renewable energy or energy efficiency 
technologies. 
"(B) REQUIREMENTS.—Each project selected under this sec-
tion shall include at least one for-profit business. Activities 
supported imder this section shall be performed in the United 
States. Each project imder this section shall require the manu-
facture and reproduction substantially Mdthin the United States 
for commercial sale of any invention or product that may result 
from the project. 
"(2) FORMS OF FINANCIAL ASSISTANCE.—(A) In supporting 
projects selected under subsection (c), the Secretary may choose 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2957 
from among the forms of agreements described in section 3001 
of the Energy Policy Act of 1992. 
"(B) In supporting projects selected under subsection (c), 
the Secretary may also enter into agreements with private 
lenders to pay a portion of the interest on loans made for 
such projects. 
"(3) COST SHARING.—Cost sharing for projects under this 
section shall be conducted according to the procedures described 
in section 3002 (b) and (c) of the Energ/ Policy Act of 1992. 
"(4) ADVISORY COMMITTEE.—(A) The Secretary shall estab-
lish an Advisory Committee on Demonstration and Commercial 
Application of Renewable Energy and Energy Efficiency Tech-
nologies (in this Act referred to as the 'Advisory Committee') 
to advise the Secretary on the development of the soUcitation 
and evaluation criteria for projects under this section, and 
on-otherwise carrying out his responsibilities under this section. 
The Secretary shall appoint members to the Advisory Commit-
tee, including at least one member representing— 
"(i) the Secretary of Commerce; 
"(ii) the National Laboratories of the Department of 
Energy; 
"(iii) the Solar Energy Research Institute; 
"(iv) the Electric Power Research Institute; 
"(v) the Gas Research Institute; 
"(vi) the National Institute of Building Sciences; 
"(vii) the National Institute of Standards and Tech-
nology; 
^viii) associations of firms in the msgor renewable 
enersy manufacturing industries; and 
^ix) associations of firms in the migor energy efficiency 
manufactiuing industries. 
Nothing in this subparagraph shall be construed to require 
the Secretary to reestablish the Advisory Committee in place 
under this subsection as of the date of enactment of the Energy 
Policy Act of 1992, or to perform again any duties performed 
by such advisory committee before such date of enactment. 
"(B) Not later than 18 months after the date of the enact- Reports, 
ment of the Energy Policy Act of 1992, the Advisory Committee 
shall provide the Secretary with a report assessing the 
implementation of the program under this section, including 
specific recommendations for improvements or changes to the 
program and solicitation process. The Secretary shall transmit 
such report and, if any, the Secretary's recommendations to 
the Congress. 
"(c) SELECTION OF PROJECTS.— 
"(1) SouciTATiON.—(A) Not later than 9 months after the 
date of the enactment of the Energy Policy Act of 1992, the 
Secretary shall solicit proposals for projects luider this section. 
The Secretary may make additional solicitations for proposals 
if the Secretary determines that such solicitations are necessary 
to carry out this section. 
"(B) A solicitation for proposals under this paragraph shall 
establish a closing date for receipt of proposals. The Secretary 
may, if necessary, extend the closing date for receipt of propos-
als for a period not to exceed 90 days. 
"(C) Each solicitation under this paragraph shall include 
a description of the criteria, developed by the Secretary, accord-
106 STAT. 2958 
PUBLIC LAW 102-486—(XTT. 24, 1992 
ing to which proposals will be evaluated. In developing such 
criteria, the Secretary shall consider— 
"(i) the need for Federal involvement to commercialize 
the technology or speed commercialization of the tech-
nology; 
"(ii) the potential for the technology to have significant 
market penetration; 
"(iii) the potential energy efiicienQr gains or energy 
supply contributions of the technology; 
"(iv) potential environmental improvements associated 
with the technology; 
"(v) the export potential of the technology; 
"(vi) the likelihood that the proposal is technically suffi-
cient to achieve the objective of tiie solicitation; 
"(vii) the degree to which non-Federal financial partici-
pation is involved in the proposal; 
"(viii) the business and financial history of the proposer 
or proposers; and 
"(ix) any other factor the Secretary considers appro-
priate. 
"(2) PROJECT TECHNOLOGIES.—^Projects under this section 
may include the following technologies: 
"(A) Conversion of cellulosic biomass to liquid fuels. 
"(B) Ethanol and ethanol b3rproduct processes. 
"(C) Direct combustion or gasification of biomass. 
"(D) Biofuels energy systems. 
"(E) Photovoltaics, including utility scale and remote 
applications. 
"(F) Solar thermal, including solar water heating. 
"(G) Wind energy. 
"(H) High temperature and low temperature geo-
thermal energy. 
"(I) Fuel cells, including transportation and stationary 
applications. 
"(J) Nondefense high-temperature superconducting 
electricity technology. 
*
*
(
K
) Source reduction technology. 
"(L) Factory-made housing. 
"(M) Advanced district cooling. 
"(3) PROJECT SELECTION.—The Secretary shall, within 120 
days after the closing date established under paragraph (IXB), 
select proposals to receive financial assistance under this sec-
tion. In selecting proposals under this paragraph, the Secretary 
shaU— 
"(A) consider each proposal's ability to meet the criteria 
developed pursuant to paragraph (IXC); and 
"(B) attempt to achieve technological and geographic 
diversity. 
"(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretary for carrying out this section 
$50,000,000 for 
fiscal 
year 1994. 
(b) NATIONAL GOALS AND MULTIYEAR FUNDING FOR ALCOHOL 
FROM BIOMASS.—Section 4(a) of the Renewable Energy and Ener^ 
Efficiency Technology Competitiveness Act of 1989 (42 U.S.C. 
12003(a)) is amended— 
(1) by redesignating paragraph (4) as paragraph (5); 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2959 
(2) by inserting after paragraph (3) the following new para-
graph: 
"(4) ALCOHOL FROM BIOMASS.—(A) In general, the goal of 
the Alcohol From Biomass Program shall be to advance research 
and development to a point where alcohol from biomass tech-
nology is cost-competitive with conventional 
hydrocarbon 
transportation fuels, and to promote the integration of this 
technology into the transportation fuel sector of the economy. 
"(BXi) Specific goals for producing ethanol from biomass 
shall be to— 
"(I) reduce the cost of alcohol to 70 cents per gallon; 
"(II) improve the overall biomass carbohydrate conver-
sion efficiency to 91 percent; 
"(III) reduce the capital cost component of the cost 
of alcohol to 23 cents per gallon; and 
"(IV) reduce the operating and maintenance component 
of the cost of alcohol to 47 cents per gallon, 
"(ii) Specific goals for producing methanol from biomass 
shall be to— 
"(I) reduce the cost of alcohol to 47 cents per gallon; 
and 
"(II) reduce the capital component of the cost of alcohol 
to 16 cents per gallon."; and 
(3) in paragraph (5), as so redesignated by paragraph (1) 
of this subsection, by inserting "Biodiesel Energy Systems," 
after "Biofuels Energy Systems, . 
(c) NATIONAL RENEWABLE ENERGY AND ENERGY EFFICIENCY 
MANAGEMENT PLAN.—Section 9(b) of the Renewable Energy and 
Energy Efficiency Technology Competitiveness Act of 1989 (42 
U.S.C: 12008(b)) is amended— 
42 use 12006. 
(1) in paragraph (1) by inserting "three-year" before 
"management plan"; and 
(2) by striking paragraph (5) and inserting in lieu thereof 
the following new paragraphs: 
"(5) In addition, the Plan shall— 
"(A) contain a detailed assessment of program needs, 
objectives, and priorities for each of the programs author-
ized under section 6 of this Act; 
"(B) use a uniform prioritization methodology to facili-
tate cost-benefit analyses of proposals in various program 
areas; 
"(C) establish milestones for setting forth specific tech-
nology transfer activities under each program area; 
^D) include annual and five-year cost estimates for 
individual programs under this Act; and 
"(E) identify program areas for which funding levels 
have been changed from the previous year's Plan. 
"(6) Within one year after the date of the enactment of 
the Energy Policy Act of 1992, the Secretary shall submit 
a revised management plan under this section to Congress. 
Thereafter, the Secretary shall submit a management plan 
every three years at the time of submittal of the President's 
annual budget submission to the Congress.". 
(d) CONFORMING AMENDMENTS.—The Renewable Energy and 
Energy Efficiency Technology Competitiveness Act of 1989 (42 
U.S.C. 12001 et seq.) is further amended— 
(1) in section 2(b)— 
42 use 12001. 
106 STAT. 2960 
PUBLIC LAW 102-486—OCT. 24, 1992 
(A) by striking "authority contained in" and all that 
follows through "applicable to the Secretary" and inserting 
in lieu thereof "section 3001 of the Energy Policy .^:t of 
1992"; and 
(B) by striking "and demonstration" and inserting in 
lieu thereof "demonstration, and commercial application"; 
(2) in section 2(bX4)— 
(A) by striking "research and development"; and 
(B) by striking '^oint ventures" and inserting in lieu 
thereof 
"demonstration 
and 
commercial 
application 
projects"; 
(3) in section 2(c), by striking "the authority contained 
in" and all that follows and inserting in Ueu thereof "section 
3001 of the Energy Policy Act of 1992, is authorized and 
directed to— 
"(1) pursue a program of research, development, demonstra-
tion, and commerci^ application with the private sector, to 
achieve the purpose of this Act, including the goals established 
under section 4; and 
"(2) undertake demonstration and commercial application 
projects as provided in section 6."; 
42 use 12002. 
(4) in section 3— 
(A) by striking paragraph (2); 
(B) by redesignating paragraphs (3), (4), and (5) as 
paragraphs (2), (3), and (4), respectively; 
• (C) in paragraph (4), as so redesignated by subpara-
graph (B) of this paragraph— 
(i) by striking '^oint venture" and inserting in lieu 
thereof "demonstration and commercial application 
project"; 
(ii) by striking "venture" and inserting in lieu 
thereof "demonstration and commercial application 
project"; and 
(iii) by striking "and" at the end thereof; and 
(D) by inserting after paragraph (4), as so redesignated 
by subparagraph (B) of this paragraph, the following new 
paragraph: 
"(5) tiie term 'source reduction' means any practice which— 
"(A) reduces the amount of any hazardous substance, 
pollutant, or contaminant entering any waste stream or 
otherwise released into the environment, including fugitive 
emissions, prior to recycling, treatment, or disposal; and 
"(B) reduces the hazards to the public health and the 
environment associated with the release of such substances, 
pollutants, or contaminants, 
including equipment or technology modifications, process or 
procedure modifications, reformulation or redesign of products, 
substitution of raw materials, and improvements in house-
keeping, maintenance, training, and inventory control, but not 
including any practice which alters the physical, chemical, or 
biologic£U characteristics or the volume of a hazardous sub-
stance, pollutant, or contaminant through a process or activity 
which itself is not integral to and necessary for the production 
of a product or the providing of a service;"; and 
42 use 12006. 
(5) in section 9(a), by striking ", projects, and joint ven-
tures" and inserting in lieu thereof "and projects". 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2961 
SEC. 1203. RENEWABLE ENERGY EXPORT TECHNOLOGY TRAINING. 
42 USC 13312. 
(a) ESTABLISHMENT OF PROGRAM.—The Secretary, through the 
Agency for International Development, shall establish a program 
for the training of individuals from developing countries in the 
operation and maintenance of renewable energy and energy effi-
ciency technologies in accordance with this section. The Secretary 
and the Administrator of the Agency for International Development 
shall, within one year after the date of enactment of this Act, 
enter into a written agreement to carry out this program. 
(b) PURPOSE.—^The purpose of tne program established under 
this section shall be to train appropriate persons in the system 
desi^, operation, and maintenance of renewable energy and energy 
efficiency equipment manufactured in the United States, including 
equipment for water pumping, heating and purification, and the 
production of electric power in remote areas. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretary $6,000,000 for each of the 
fiscal years 1994,1995, and 1996, to carry out this section. 
SEC. 1204. RENEWABLE ENERGY ADVANCEMENT AWARDS. 
42 USC 13313. 
(a) AUTHORITY.—^The Secretary shall make Renewable Energy 
Advancement Awards in recognition of developments that advance 
the practical application of biomass, geothermal, hydroelectric, 
photovoltaic, solar thermal, ocean thermal, and wind technologies 
to consumer, utility, or industrial uses, in accordance with this 
section. Except as provided in subsection (f). Renewable Energy 
Advancement Awards shall include a cash award. 
(b) SELECTION CRITERIA.—The Secretary, in consultation with 
the Advisory Committee on Demonstration 
and 
Commercial 
Application of Renewable Energy and Energy Efficiency Tech-
nologies (in this section referred to as the "Advisory Committee"), 
imder section 6 of the Renewable Energy and Energy Efficiency 
Technology Competitiveness Act of 1989, shall develop criteria to 
be applied in the selection of award recipients under this section. 
Such criteria shall include the following: 
(1) The degree to which the technological development 
increases the utilization of renewable energy. 
(2) The degree to which the development will have a signifi-
cant impact, by benefitting a large number of people, by reduc-
ing the costs of an important industrial process or commercial 
product or service, or otherwise. 
(3) The ingenuity of the development. 
(4) Whether the application has significant export potential. 
(5) The environmental soundness of the development. 
(c) SELECTION.—Beginning in fiscal year 1994, and annually 
thereafter for a period of 10 years, the Secretary, in consultation 
with the Advisory Committee, shall select developments described 
in subsection (a) that are worthy of receiving an award under 
this section, and shall make such awards. 
(d) ELIGIBILITY.—^Awards may be made under this section only 
to individuals who are United States nationals or permanent resi-
dent aliens, or to non-Federal organizations that are organized 
imder the laws of the United States or the laws of a State of 
the United States. 
(e) AUTHORIZATION OF APPROPRIATIONS.-There are authorized 
to be appropriated to the Secretary $50,000 for each of the fiscal 
years 1994, 1995, and 1996 for canying out this section. 
59-194 
O—93 
8 : QL 3 (Pt. 4) 
106 STAT. 2962 
PUBLIC LAW 102-486—OCT. 24, 1992 
(f) AWARDS MADE IN ABSENCE OF APPROPRIATIONS.—The Sec-
retary shall make honorary awards under this section if sufficient 
fluids are not available for financial awards in any fiscal year. 
42 use 13314. 
SEC. 1205. STUDY OF TAX AND RATE TREATMENT OF RENEWABLE 
ENERGY PROJECTS. 
(a) The Secretary, in conjunction with State regulatory commis-
sions, shall undertake a study to determine if conventional taxation 
and ratemaking procedures result in economic barriers to or incen-
tives for renewable energy power plants compared to conventional 
power plants. 
Reports. 
(b) Within 1 year after the date of the enactment of this 
Act, the Secretary shall submit a report to the Congress on the 
results of the study undertaken under subsection (a). 
SEC. 1206. STUDY OF RICE MILLING ENERGY BY-PRODUCT MARKETING. 
The Department of Energy shall conduct a study to facilitate 
the marketing of energy bjrproducts from rice milling. 
SEC. 1207. DUTIES OF INTERAGENCY WORKING GROUP ON RENEW-
ABLE ENERGY AND ENERGY EFFICIENCY EXPORTS. 
(a) INTERAGENCY WORKING GROUP.—Section 256(d) of the 
Energy Policv and Conservation Act (42 U.S.C. 6276(d)) is amended 
to read as follows: 
"(d) INTERAGENCY WORKING GROUP.— 
"(1) ESTABLISHMENT.—(A) There shall be estabUshed an 
interagency working group that, in consultation with the rep-
resentative industry groups and relevant ai^ency heads, shall 
make recommendations to coordinate the actions and programs 
of the Federal Government affecting exports of renewable 
energy and energy efficiency products and services. The inter-
agency working group shall establish a program to inform 
foreign countries of the benefits of policies that would increase 
energy efficiency or would allow facilities that use renewable 
energy to compete effectively with producers of energy from 
nonrenewable sources. 
"(B) There shall be established an Interagency Working 
Subgroup on Renewable Energy and an Interagency Working 
Subgroup on Energy Efficiency that shall, in consultation with 
representative industiy groups, nonprofit organizations, and 
relevant Federal agencies, make recommendations to coordinate 
the actions and programs of the Federal Government to promote 
the export of domestic renewable energy and energy efficiency 
products and services, respectively. 
"(C) The Secretary or Energy, or the Secretary's designee, 
shall chair the interagency wooing group and each subgroup 
established under this paragraph. The Administrator of the 
Agency for International Development and the Secretarv of 
Commerce, or their designees, shall be members of both 
subgroups established under this paragraph. The Secretary 
shall provide staff for carrying out the functions of the inter-
agency working group and each subgroup established under 
tms paragraph. The heads of appropriate agencies may detail 
such personnel and may fumisn such services to such group 
and subgroups, with or without reimbursement, as may be 
necessary to cany out their functions. 
"(2) DUTIES OF THE INTERAGENCY WORKING SUBGROUPS.— 
(A) The interagency working subgroups established imder para-
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2963 
graph (IXB), through the member agencies of the interagency 
working group, shall promote the development and application 
in foreign countries of renewable energy and energy efficiency 
products and services, respectively, that— 
"(i) reduce dependence on unreliable soiirces of energy 
by encouraging the use of sustainable biomass, wind, small-
scale hydroelectric, solar, geothermal, and other renewable 
energy and energy efficiency products and services; and 
"(ii) use hybrid fossil-renewable energy systems. 
"(B) In addition, the interagency working subgroups shall 
explore mechanisms for assisting domestic firms, particularly 
small businesses, with the export of their renewable energy 
and energy efficiency products and services and with the identi-
fication of potential projects. 
"(3) TRAINING AND ASSISTANCE.—The interagency working 
subgroups shall encourage the member agencies of the inter-
agency working group to— 
"(A) provide technical training and education for inter-
national development personnel and local users in their 
own country; 
"(B) provide financial and technical assistance to non-
profit institutions that support the marketing and export 
efforts of domestic companies that provide renewable 
energy and energy efficiency products and services; 
"(C) develop environmentally sustainable renewable 
energy and energy efficiency projects in foreign countries; 
"(D) provide technical assistance and training mate-
rials to loan officers of the World Bank, international 
lending institutions, commercial and energy attaches at 
embassies of the United States and other appropriate 
personnel in order to provide information about renewable 
energy and energy efficiency products and services to for-
eign governments or other potential project sponsors; 
"(E) support, through financial incentives, private sec-
tor efforts to commercialize and export renewable energy 
and energy efficiency products and services; and 
"(F) augment budgets for trade and development pro-
grams in order to support pre-feasibility or feasibility 
studies for projects that utilize renewable energy and 
energy efficiency products and services.". 
(b) FUNCTIONS.—Section 256(f) of the Energy Policy and Con-
servation Act (42 U.S.C. 6276(f)) is amended by inserting "and 
energy efficiency" after "renewable energy" each place it appears. 
(c) DEFINITIONS.—Section 256(g) of the Energy Policy and Con-
servation Act (42 U.S.C. 6276(g)) is repealed. 
(d) AUTHORIZATION OF APPROPRIATIONS.—Section 256(h) of the 
Energy Policy and Conservation Act (42 U.S.C. 6276(h)) is amended 
to read as follows: 
"(h) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretary for purposes of carrying out 
the programs under subsections (d) and (e) $10,000,000, to be 
divided equitably between the interagency working subgroups based 
on program requirements, for each of the fiscal years 1993 and 
1994, and such sums as may be necessary for fiscal year 1995 
to carry out the purposes of this subtitle.". 
106 STAT. 2964 
PUBLIC LAW 102-486—OCT. 24, 1992 
SEC. 1208. STUDY OF EXPORT PROMOTION PRACTICES. 
Section 256(d) of the Energy Policy and Conservation Act (42 
U.S.C. 6276(d)) as amended by section 1208 of this Act, is further 
amended by adding at the end the following new paragraph: 
"(4) The interagency working group shall conduct a study of 
subsidies, incentives, and policies that foreign countries use to 
promote exports of their own renewable energy and energy efficiency 
technologies and products. Such study shall also identify foreign 
trade barriers to the import of renewable energy and ener©^ effi-
ciency technologies and products produced in the United States. 
Reports. 
The interagency working group shall report to the appropriate 
committees of the House of Representatives and the Senate the 
results of such study within 18 months after the date of the enact-
ment of the Energy Policy Act of 1992.". 
42 use 13315. 
SEC. 1209. DATA SYSTEM AND ENERGY TECHNOLOGY EVALUATION. 
The Secretary of Commerce, in his or her role as a member 
of the interagency working group established under section 256 
of the Energy Policy and Conservation Act (42 U.S.C. 6276), shall— 
(1) develop a comprehensive data base and information 
dissemination system, using the National Trade Data Bank 
and the Commercial Information Management System of the 
Department of Commerce, that will provide information on 
the specific energy technology needs of foreign countries, and 
the technical and economic competitiveness of various renew-
able energy and energy efficiency products and technologies; 
(2) make such information available to industry. Federal 
and multilateral lending agencies, nongovernmental organiza-
tions, host-country and donor-agency officials, and such others 
as the Secretary of Commerce considers necessary; and 
(3) prepare and transmit to the Congress not later than 
June 1, 1993, and biennially thereafter, a comprehensive report 
evaluating the full range of energy and environmental tech-
nologies necessary to meet the energy needs of foreign countries, 
including— 
(A) information on the specific energy needs of foreign 
countries; 
(B) an inventory of United States technologies and 
services to meet those needs; 
(C) an update on the status of ongoing bilateral and 
multilateral programs which promote United States exports 
of renewable energy and energy efficiency products and 
technologies; and 
(D) an evaluation of current programs (and rec-
ommendations for future programs) that develop and pro-
mote energy efficiency and sustainable use of indigenous 
renewable energy resources in foreign countries to reduce 
the generation of greenhouse gases. 
SEC. 1210. OUTREACH. 
(a) OUTREACH.—^The interagency working group established 
under section 256(dXlXA) of the Energy Policy and Conservation 
Act and the Secretary of Commerce shall select one individual 
who is experienced in renewable energy and energy efficiency prod-
ucts and technologies to be assigned by the Secretary of Commerce 
to an office of the United States and Foreign Commercial Service 
in the Pacific Rim, and one such individual to be assigned by 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2965 
the Secretary of Commerce to an office of the United States and 
Foreign Commercial Service in the Caribbean Basin, for the sole 
purpose of providing information concerning domestic renewable 
energy and energy efidciency products, technologies, and industries 
to territories, foreign governments, industries, and other appro-
priate persons. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretary for the purposes of this section 
$500,000 for each of the fiscal years 1993 and 1994, and such 
sums as may be necessary for fiscal year 1995. 
SEC. 1211. INNOVATIVE RENEWABLE ENERGY TECHNOLOGY TRANS- 42 USC 13316. 
PER PROGRAM. 
(a) ESTABLISHMENT OF PROGRAM.—The Secretary, through the 
Agency for International Development, and in consultation vdth 
the other members of the interagency working group established 
under section 256(d) of Energy Policy and Conservation Act (in 
this section referred to as the "interagency working group"), shall 
establish a renewable energy technology transfer program to carry 
out the purposes described in subsection (b). Within 150 days after 
the date of the enactment of this Act, the Secretary and the 
Administrator of the Agency for International Development shall 
enter into a written agreement to carry out this section. The agree-
ment shall establish a procedure for resolving any disputes between 
the Secretary and the Administrator regarding the implementation 
of specific projects. With respect to countries not assisted by the 
Agency for International Development, the Secretary may enter 
into agreements with other appropriate Federal agencies. If the 
Secretary and the Administrator, or the Secretary and an agency 
described in the previous sentence, are unable to reach an agree-
ment, each shall send a memorandum to the President outlining 
an appropriate agreement. Within 90 days after receipt of either 
memorandum, the President shall determine which version of the 
agreement shall be in effect. Any agreement entered into under 
t£us subsection shall be provided to the appropriate committees 
of the Congress and made available to the public. 
(b) PURPOSES OF THE PROGRAM.—The purposes of the tech-
nology transfer program imder this section are to— 
(1) reduce the United States balance of trade deficit through 
the export of United States renewable energy technologies and 
technological expertise; 
(2) retain and create manufacturing and related service 
jobs in the United States; 
(3) encourage the export of United States renewable energy 
technologies, including services related thereto, to those coun-
tries that have a need for developmentally sound facilities 
to provide energy derived from renewable resources; 
(4) develop markets for United States renewable energy 
technologies to be utilized in meeting the energy and environ-
mental requirements of foreign countries; 
(5) better ensure that United States participation in energy-
related projects in foreign countries includes participation by 
United States firms as well as utilization of United States 
technologies that have been developed or demonstrated in the 
United States through publicly or privately funded demonstra-
tion programs; 
106 STAT. 2966 
PUBLIC LAW 102-486—OCT. 24, 1992 
(6) ensure the introduction of United States firms and 
expertise in foreign countries; 
(7) provide fmancial assistance by the Federal Government 
to foster greater participation by United States firms in the 
financing, ownersnip, design, construction, or operation of 
renewable energy tecimology projects in foreign countries; 
(8) assist foreign countries in meeting their energy needs 
through the use of renewable energy in an environmentally 
acceptable manner, consistent with sustainable development 
policies; and 
(9) assist United States firms, especially firms that are 
in competition vdth firms in foreign countries, to obtain 
opportunities to transfer technologies to, or undertake projects 
in, foreign countries. 
(c) IDENTIFICATION.—Pursuant to the agreements required by 
subsection (a), the Secretary, through the Agency for International 
Development, and after consultation with the interagency working 
group, United States firms, euid representatives from foreign coun-
tries, shall develop mechanisms to identify potential energy projects 
in host countries, and shall identify a list of such projects within 
240 days after the date of the enactment of this Act, and periodically 
thereafter. 
(d) FINANCIAL MECHANISMS.—(1) Pursuant to the agreements 
under subsection (a), the Secretary, through the Agency for Inter-
national Development, shall— 
(A) establish appropriate financial mechanisms to increase 
the participation of United States firms in energy projects 
utilizing Lfnited States renewable energy technologies, and 
services related thereto, in developing countries; 
(B) utilize available financial assistance authorized by this 
section to counterbalance assistance provided by foreign govern-
ments to non-United States 
firms; 
and 
(C) provide 
financial 
assistance to support projects. 
(2) The financial assistance authorized by this section may 
be— 
(A) provided in combination with other forms of financial 
assistaiice, including non-United States funding that is avail-
able to the project; and 
(B) utilized to assist United States 
firms 
in the development 
of innovative financing packages for renewable energy tech-
nology projects that utilize other financial assistance programs 
available through the Federal Grovemment. 
(3) United States obligations under the Arrangement on Guide-
lines for Officially Supported Export Credits established through 
the Org£uiization for Economic Cooperation and Development shall 
be appucable to this section. 
(e) SOLICITATIONS FOR PROJECT PROPOSALS.—(1) Pursuant to 
the agreements under subsection (a), the Secretary, through the 
Agency for International Development, within one year after the 
date of the enactment of this Act, and subsequently as appropriate 
thereafter, shall solicit proposals from United States firms for the 
design, construction, testing, and operation of the project or projects 
identified under subsection (c) which propose to utilize a United 
States renewable energy technology. Each solicitation under this 
section shall establish a closing date for receipt of proposals. 
(2) The solicitation under this subsection shall, to the extent 
appropriate, be modeled after the RFP No. DE-PS01-90FE62271 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2967 
Clean Coal Technology IV, as administered by the Department 
of Energy. 
(3) Any solicitation made imder this subsection shall include 
the following requirements: 
(A) The United States firm that submits a proposal in 
response to the solicitation shall have an equity interest in 
the proposed project. 
(B) The project shall utilize a United States renewable 
energy technology, including services related thereto, in meet-
ing the applicable energy and environmental requirements of 
the host coimtry. 
(C) Proposals for projects shall be submitted by and under-
taken with a United States firm, although a joint venture 
or other teaming arrangement with a non-United States manu-
facturer or other non-United States entity is permissible. 
(f) ASSISTANCE TO UNITED STATES FIRMS.—Pursuant to the 
agreements under subsection (a), the Secretary, through the Agency 
for International Development, and in consultation with the inter-
agency working group, shall establish a procedure to provide finan-
cial assistance to United States firms under this section for a 
project identified under subsection (c) where solicitations for the 
project are being conducted by the host country or by a multilateral 
lending institution. 
(g) OTHER PROGRAM REQUIREMENTS.—Pursuant to the agree-
ments under subsection (a), the Secretary, through the Agency 
for International Development, and in consultation with the working 
group, shall— 
(1) establish eligibility criteria for host countries; 
(2) periodically review the energy needs of such countries 
and export opportunities for United States firms for the develop-
ment of projects in such countries; 
(3) consult with government ofiEicials in host countries and, 
as appropriate, with representatives of utilities or other entities 
in host countries, to determine interest in and support for 
potential projects; and 
(4) determine whether each project selected under this 
section is developmentally sound, as determined imder the 
criteria developed by the Development Assistance Committee 
of the Organization for Economic Cooperation and Development, 
(h) SELECTION OF PROJECTS.—(1) Pursuant to the agreements 
under subsection (a), the Secretary, through the Agency for Inter-
national Development, shall, not later than 120 days after receipt 
of proposals in response to a solicitation under subsection (e), select 
one or more proposals under this section. 
(2) In selecting a proposal imder this section, the Secretary, 
through the Agency for International Development, shall consider— 
(A) the ability of the United States firm, in cooperation 
with the host country, to undertake and complete the project; 
(B) the degree to which the equipment to be included 
in the project is designed and manufactured in the United 
States; 
(C) the long-term technical and competitive viability of 
the United States technology, and services related thereto, and 
the ability of the United States firm to compete in the develop-
ment of additional energy projects using such technology in 
the host country and in other foreign countries; 
106 STAT. 2968 
PUBLIC LAW 102-486—OCT. 24, 1992 
(D) the extent of technical and financial involvement of 
the host country in the project; 
(E) the extent to which the proposed project meets the 
purposes stated in section 1201(b); 
(F) the extent of technical, financial, management, and 
marketing capabilities of the participants in the project, and 
the commitment of the participants to completion of a successful 
project in a manner that will facilitate acceptance of the United 
States technology for future application; and 
(G) such other criteria as may be appropriate. 
(3) In selecting amon^ proposed projects, the Secretary shall 
seek to ensure that, relative to otherwise comparable projects in 
the host country, a selected project will meet 1 or more of the 
following criteria: 
(A) It will reduce environmental emissions to an extent 
greater than required by applicable provisions of law. 
(B) It will make greater use of indigenous renewable energy 
resources. 
(C) It will be a more cost-effective technological alternative, 
based on life cycle capital and operating costs per unit of 
energy produced and, where applicable, costs per unit of product 
produced. 
Priority in selection shall be given to those projects which, in 
the judgment of the Secretary, best meet one or more of these 
criteria. 
(i) UNITED STATES-ASIA ENVIRONMENTAL PARTNERSHip.^Activi-
ties carried out under this section shall be coordinated with the 
United States-Asia Environmental Partnership. 
(j) BUY AMERICA.—In canying out this section, the Secretary, 
through the Agency for International Development, and pursuant 
to the agreements under subsection (a), shall ensure— 
(1) the maximum percentage, but in no case less than 
50 percent, of the cost of any equipment furnished in connection 
with a project authorized under this section shall be attrib-
utable to the manufactured United States components of such 
equipment; and 
(2) the maximum participation of United States firms. 
In determining whether the cost of United States components equals 
or exceeds 50 percent, the cost of assembly of such United States 
components in the host country shall not be considered a part 
of the cost of such United States component. 
(k) REPORTS TO CONGRESS.—^The Secretary and the Adminis-
trator of the Agency for International Development shall report 
annually to the Committee on Energy and Natural Resources of 
the Senate and the appropriate committees of the House of Rep-
resentatives on the progress being made to introduce renewable 
energy technologies into foreign countries. 
(1) DEFINITIONS.—For purposes of this section— 
(1) the term "host country" means a foreign country which 
is— 
(A) the participant in or the site of the proposed renew-
able energy technology project; and 
(B) either— 
(i) classified as a country eligible to participate 
in development assistance programs of the Agency for 
International Development pursuant to applicable law 
or regulation; or 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2969 
(ii) a developing country. 
(2) the term "developing countrjr" includes, but is not lim-
ited to, countries in Central and Eastern Europe or in the 
independent states of the former Soviet Union, 
(m) AuTHorazATiON FOR PROGRAM.—There are authorized to 
be appropriated to the Secretary to carry out the program required 
by this section, $100,000,000 for each of the fiscal years 1993, 
1994,1995,1996, 1997, and 1998. 
SEC. 1212. RENEWABLE ENERGY PRODUCTION INCENTIVE. 
42 USC 13317. 
(a) INCENTIVE PAYMENTS.—For electric energy generated and 
sold by a qualified renewable energy facility during the incentive 
period, the Secretary shall make, subject to the availability of 
appropriations, incentive payments to the owner or operator of 
such facility. The amoimt of such payment made to any such owner 
or operator shall be as determined under subsection (e). Payments 
under this section may only be made upon receipt by the Secretary 
of an incentive payment application which establishes that the 
applicant is eligible to receive such payment and which satisfies 
such other requirements as the Secretary deems necessary. Such 
application shall be in such form, and shall be submitted at such 
time, as the Secretary shall establish. 
(b) QUALIFIED RENEWABLE ENERGY FACILITY.—For purposes 
of this section, a qualified renewable energy facility is a facility 
which is owned by a State or any political subdivision of a State 
(or an agency, authority, or instrumentality of a State or a political 
subdivision), by any corporation or association which is wholly 
owned, directly or indirectly, by one or more of the foregoing, 
or by a nonprofit electrical cooperative and which generates electric 
energy for sale in, or affecting, interstate commerce using solar, 
wind, biomass, or geothermal energy, except that— 
(1) the burning of municipal solid waste shall not be treated 
as using biomass energy; and 
(2) geothermal energy shall not include energy produced 
from a dry steam geothermal reservoir which has— 
(A) no mobile liquid in its natural state; 
(B) steam quality of 95 percent water; and 
(C) an enthalpy for the total produced fluid greater 
than or equal to 1200 Btu/lb (British thermal units per 
pound). 
(c) ELIGIBILITY WINDOW.—Payments may be made under this 
section only for electricity generated from a qualified renewable 
energy facility first used during the 10-fiscal year period beginning 
with the first full fiscal year occurring after the enactment of 
this section. 
(d) PAYMENT PERIOD.—^A qualified renewable energy facility 
may receive payments under this section for a 10-fiscal year period. 
Such period shall begin with the fiscal year in which electricity 
generated from the facility is first eligible for such payments. 
(e) AMOUNT OF PAYMENT.— 
(1) IN GENERAL.—Incentive pa3niients made by the Sec-
retary under this section to the owner or operator of any 
qualified renewable energy facility shall be based on the num-
ber of kilowatt hours of electricity generated by the facility 
through the use of solar, wind, biomass, or geothermal energy 
during the pajnnent period referred to in subsection (d). For 
106 STAT. 2970 
PUBLIC LAW 102-486—OCT. 24, 1992 
any facility, the amount of such payment shall be 1.5 cents 
per kilowatt hour, adjusted as provided in paragraph (2). 
(2) ADJUSTMENTS.—^The amount of tne payment made to 
any person under this subsection as provided in paragraph 
(1) shall be adjusted for inflation for each fiscal year beginning 
after calendar year 1993 in the same manner as provided 
in the provisions of section 29(d)(2)(B) of the Internal Revenue 
Code of 1986, except that in applying such provisions the cal-
endar year 1993 shall be substituted for calendar year 1979. 
(f) SUNSET.—No pajnnent may be made imder this section to 
any facility sifter the expiration of the 20-flscal year period begin-
ning with the first full fiscal year occurring after the enactment 
of this section, and no pa3anent may be made under this section 
to any facility after a pajnnent has been made with respect to 
such facility for a 10-flscal year period. 
(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretary for fiscal years 1993, 1994, 
and 1995 such sums as may be necessary to carry out the purposes 
of this section. 
TITLE XIII—COAL 
Subtitle A—Research, Development, Dem-
onstration, and Commercial Application 
42 use 13331. 
SEC. 1301. COAL RESEARCH, DEVELOPMENT, DEMONSTRATION, AND 
COMMERCIAL APPUCATION PROGRAMS. 
(a) ESTABLISHMENT.—^The Secretary shall, in accordance with 
section 3001 and 3002 of this Act, conduct programs for research, 
development, demonstration, and commercial application on coal-
based technologies. Such research, development, demonstration, and 
commercial application programs shall include the programs estab-
lished under this subtitle, and shall have the goals and objectives 
of— 
(1) ensuring a reliable electricity supply; 
(2) complying with applicable environmental requirements; 
(3) achieving the control of sulfur oxides, oxides of nitrogen, 
air toxics, solid and liquid wastes, greenhouse gases, or other 
emissions resulting from coal use or conversion at levels of 
proficiency greater than or equal to applicable currently avail-
able commercial technology; 
(4) achieving the cost competitive conversion of coal into 
energy forms usable in the transportation sector; 
(5) demonstrating the conversion of coal to synthetic gase-
ous, liquid, and solid niels; 
(6) demonstrating, in cooperation with other Federal and 
State agencies, the use of coal-derived fuels in mobile equip-
ment, with opportunities for industrial cost sharing participa-
tion; 
(7) ensuring the timely commercial application of cost-effec-
tive technologies or energy production processes or systems 
utilizing coal which achieve— 
(A) greater efficiency in the conversion of coal to useful 
energy when compared to currently available commercial 
technology for the use of coal; and 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2971 
(B) the control of emissions from the utilization of 
coal; and 
(8) ensuring the availability for commercial use of such 
technologies by the year 2010. 
(b) 
DEMONSTRATION AND 
COMMERCIAL APPLICATION 
PRO-
GRAMS.—(1) In selecting either a demonstration project or a commer-
cial application project for financial assistance under this subtitle, 
the Secretary shall seek to ensure that, relative to otherwise com-
parable commercially available technologies or products, the 
selected project will meet one or more of the following criteria: 
(A) It will reduce environmental emissions to an extent 
greater than required by applicable provisions of law. 
(B) It will increase the overall efficiency of the utilization 
of coal, including energy conversion efficiency and, where 
applicable, production of products derived from coal. 
(C) It will be a more cost-effective technological alternative, 
based on life cycle capital and operating costs per imit of 
energy produced and, where applicable, costs per unit of product 
produced. 
Priority in selection shall be given to those projects which, in 
the judgment of the Secretary, best meet one or more of these 
criteria. 
(2) In administering demonstration and commercial application 
programs authorized by this subtitle, the Secretary shall establish 
accounting and project management controls that will be adequate 
to control costs. 
(3XA) Not later than 180 days after the date of enactment 
of this Act, the Secretary shall establish procedures and criteria 
for the recoupment of the Federal share of each cost shared dem-
onstration emd commercial application project authorized pursuant 
to this subtitle. Such recoupment shall occur within a reasonable 
period of time following the date of completion of such project, 
but not later than 20 years following such date, taking into account 
the effect of recoupment on— 
(i) the commercial competitiveness of the entity carrying 
out the project; 
(ii) the profitability of the project; and 
(iii) the commercial viability of the coal-based technology 
utilized. 
(B) The Secretary may at any time waive or defer all or some 
portion of the recoupment requirement as necessary for the commer-
cial viability of the project. 
(4) Projects selected by the Secretary under this subtitle for 
demonstration or commercial application of a technology shall, in 
the judgment of the Secretary, be capable of enhancing the state 
of the art for such technology. 
(c) REPORT.—^Within 240 days after the date of enactment of 
this Act, the Secretary shall transmit to the Committee on Energy 
and Commerce and the Committee on Science, Space, and Tech-
nology of the House of Representatives and to the Committee on 
Energy and Natural Resources of the Senate a report which shall 
include each of the following: 
(1) A detailed description of ongoing research, development, 
demonstration, and commercial application activities regarding 
coal-based technologies undertaken by the Department of 
Energy, other Federal or State government departments or 
agencies and, to the extent such information is publicly avail-
106 STAT. 2972 
PUBLIC LAW 102-486—OCT. 24, 1992 
able, other public or private organizations in the United States 
and other countries. 
(2) A listing and analysis of current Federal and State 
government regulatory and financial incentives that could fur-
ther the goals of the programs established under this subtitle. 
(3) Recommendations regarding the manner in which any 
ongoing coal-based demonstration and commercial application 
program might be modified and extended in order to ensure 
the timely demonstrations of advanced coal-based technologies 
so as to ensure that the goals established under this section 
are achieved and that such demonstrated technologies are avail-
able for commercial use by the year 2010. 
(4) Recommendations, if any, regarding the manner in 
which the cost sharing demonstrations conducted pursuant to 
the Clean Coal Program established by Public Law 98-473 
might be modified and extended in order to ensure the timely 
demonstration of advanced coal-based technologies. 
(5) A detailed plan for conducting the research, develop-
ment, demonstration, and commercial application programs to 
achieve the goals and objectives of subsection (a) of this section, 
which plan shall include a description of— 
(A) the program elements and management structure 
to be utilized; 
(B) the technical milestones to be achieved with respect 
to each of the advanced coal-based technologies included 
in the plan; and 
(C) the dates at which further deadlines for additional 
cost sharing demonstrations shall be established. 
(d) STATUS REPORTS.—Within one year after transmittal of 
the report described in subsection (c), and every 2 years thereafter 
for a period of 6 years, the Secretary shall transmit to the Congress 
a report that provides a detailed description of the status of develop-
ment of the advanced coal-based technologies and the research, 
development, demonstration, and commercial application activities 
vmdertEiken to carry out the programs required by this subtitle. 
(e) CONSULTATION.—In canying out research, development, 
demonstration, and commercial application activities under this 
subtitle, the Secretary shall consult with the National Coal Council 
and other representatives of the public and private sectors as the 
Secretary considers appropriate. 
42 u s e 13332. 
SEC. 1302. COAL-FIRED DIESEL ENGINES. 
The Secretary shall conduct a program of research, develop-
ment, demonstration, and commercial application for utilizing coal-
derived liquid or gaseous fuels, including ultra-clean coal-water 
slurries, in diesel engines. The program shall address— 
(1) required engine retrofit technology; 
(2) coal-fiiel production technology; 
(3) emission control requirements; 
(4) the testing of low-Btu highly reactive fuels; 
(5) fuel delivery and storage systems requirements; and 
(6) other infrastructure required to support commercial 
deplojnnent. 
42 u s e 13333. 
SEC. 1303. CLEAN COAL, WASTE-TO-ENERGY. 
The Secretary shall establish a program of research, develop-
ment, demonstration, and commercial application with respect to 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2973 
the use of solid waste combined with coal as a fuel source for 
clean coal combustion technologies. The program shall address— 
(1) the feasibility of cofiring coal and used vehicle tires 
in fluidized bed combustion imits; 
(2) the combined gasification of coal and municipal sludge 
using integrated gasification combined cycle technology; 
(3) the creation of fuel pellets combining coal and material 
reclaimed from solid waste; 
(4) the feasibility of cofiring, in fluidized bed combustion 
units, waste methane from coal mines, including ventilation 
air, together with coal or coal wastes; and 
(5) other sources of waste and coal mixtures in other 
applications that the Secretary considers appropriate. 
SEC. 1304. NONFUEL USE OF COAL. 
42 USC 13334. 
(a) PROGRAM.—^The Secretary shall prepare a plan for and 
carry out a program of research, development, demonstration, and 
commercial application with respect to technologies for the nonfuel 
use of coal, including— 
(1) production of coke and other carbon products derived 
from coal; 
(2) production of coal-derived, carbon-based 
chemical 
intermediates that are precursors of value-added chemicals and 
polymers; 
(3) production of chemicals from coal-derived synthesis gas; 
(4) coal treatment processes, including methoaologies such 
as solvent-extraction techniques that produce low ash, low sul-
fur, coal-based chemical feedstocks; and 
(5) waste utilization, including recovery, processing, and 
marketing of products derived from sulfur, carbon dioxide, 
nitrogen, and ash from coal. 
(b) PLAN CONTENTS.—The plan described in subsection (a) shall 
address and evaluate— 
(1) the known and potential processes for using coal in 
the creation of products m the chemical, utility, f\iel, and car-
bon-based materials industries; 
(2) the costs, benefits, and economic feasibility of using 
coal products in the chemical and materials industries, includ-
ing value-added chemicals, carbon-based products, coke, and 
waste derived from coal; 
(3) the economics of coproduction of products from coal 
in conjunction with the production of electric power, thermal 
energy, and fuel; 
(4) the economics of the refining of coal and coal byproducts 
to produce nonfuel products; 
(5) the economics of coal utilization in comparison with 
other feedstocks that might be used for the same purposes; 
(6) the steps that can be taken by the public and private 
sectors to bring about commercialization of technologies devel-
oped under the program recommended; and 
(7) the past development, current status, and future poten-
tial of coal products and processes associated with nonfuel 
uses of coal. 
SEC. 1305. COAL REFINERY PROGRAM. 
42 USC 13335. 
(a) PROGRAM.—^The Secretary shall conduct a program of 
research, development, demonstration, and commercial application 
for coal refining technologies. 
106 STAT. 2974 
PUBLIC LAW 102-486—OCT. 24, 1992 
(b) OBJECTTIVES.—^The program shall include technologies for 
refining high sulfur coals, low sulfur coals, sub-bituminous coals, 
and lignites to produce clean-burning transportation fuels, compli-
ance boiler fuels, fuel additives, lubricants, chemical feedstocks, 
and carbon-based manufactured products, either alone or in conjunc-
tion with the generation of electricity or process heat, or the manu-
facture of a variety of products from coal. The objectives of such 
program shall be to achieve— 
(1) the timely commercial application of technologies, 
including 
mild 
gasification, 
hydrocracking 
and 
other 
hydropyrolysis processes, and other energy production processes 
or systems to produce coal-derived fuels and coproducts, which 
achieve greater efficiency and economy in the conversion of 
coal to electrical energy and coproducts than currently available 
technology; 
(2) the production of energy, fuels, and products which, 
on a complete energy system basis, will result in environmental 
emissions no greater than those produced by existing com-
parable energy systems utilized for the same purpose; 
(3) the capability to produce a range of coal-derived 
transportation ^els, including oxygenated hydrocarbons, boiler 
fuels, turbine fuels, and coproducts, which can reduce depend-
ence on imported oil by displacing conventional petroleum in 
the transportation sector and other sectors of the economy; 
(4) reduction in the cost of producing such coal-derived 
fuels and coproducts; 
(5) the control of emissions from the combustion of coal-
derived fuels; and 
(6) the availability for commercial use of such technologies 
by the year 2000. 
42 u s e 13336. 
SEC. 1306. COALBED METHANE RECOVERY. 
(a) 
STUDY OF BARRIERS AND ENVIRONMENTAL AND SAFETY 
ASPECTS.—^The Secretary, in consultation with the Administrator 
of the Environmental Protection Agency and the Secretary of the 
Interior, shall conduct a study of— 
(1) technical, economic, financial, legal, regulatory, institu-
tional, or other barriers to coalbed methane recovery, and of 
policy options for eliminating such barriers; and 
(2) the environmental and safety aspects of flaring coalbed 
methane liberated from coal mines. 
Reports. 
Within two years after the date of enactment of this Act, the 
Secretary shall submit a report to the Congress detailing the results 
of such study. 
(b) INFORMATION DISSEMINATION.—Beginning one year after 
the date of enactment of this Act, the Secretary, in consultation 
with the Administrator of the Environmental Protection Agency 
and the Secretary of the Interior, shall disseminate to the public 
information on state-of-the-art coalbed methane recovery tech-
niques, including information on costs and benefits. 
(c) DEMONSTRATION AND COMMERCIAL APPLICATION PROGRAM.— 
The Secretary, in consultation with the Administrator of the 
Environmental Protection Agency and the Secretary of the Interior, 
shall establish a coalbed methane recovery demonstration and 
commercial application program, which shall emphasize gas enrich-
ment technology. Such program shall address— 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2975 
(1) gas enrichment technologies for enriching medium-qual-
ity methane recovered from coal mines to pipeline quality; 
(2) technologies to use mine ventilation air in nearby power 
generation facilities, including gas turbines, internal combus-
tion engines, or other coal fired powerplants; 
(3) technologies for cofiring methane recovered from mines, 
including methane from ventilation systems and degasification 
systems, together with coal in conventional or clean coal tech-
nology boilers; and 
(4) other technologies for producing and using methane 
from coal mines that the Secretary considers appropriate. 
SEC. 1307. METALLURGICAL COAL DEVELOPMENT. 
42 USC 13337. 
(a) The Secretary shall establish a research, development, dem-
onstration, and commercial application program on metallurgical 
coal utilization for the purpose of developing techniques that will 
lead to the greater and more efficient utilization of the Nation's 
metallurgical coal resources. 
(b) The program referred to in subsection (a) shall include 
the use of metallurgical coal— 
(1) as a boiler fuel for the purpose of generating steam 
to produce electricity, including blending metallurgical coal with 
other coals in order to enhance its efficient application as 
a boiler fuel; 
(2) as an ingredient in the manufacturing of steel; and 
(3) as a source of pipeline quality coalbed methane. 
SEC. 1308. UTILIZATION OF COAL WASTES. 
42 USC 13338. 
(a) COAL WASTE UTILIZATION PROGRAM.—The Secretary, in con-
sultation with the Secretary of the Interior, shall establish a 
research, development, demonstration, and commercial application 
program on coal waste utilization for the purpose of developing 
techniques that will lead to the greater and more efilcient utilization 
of coal wastes from mining and processing, other than coal ash. 
(b) USE AS BOILER FUEL.—^The program referred to in sub-
section (a) shall include projects to facilitate the use of coal wastes 
from mining and processing as a boiler fuel for the purpose of 
generating steam to produce electricity. 
SEC. 1309. UNDERGROUND COAL GASIFICATION. 
42 USC 13339. 
(a) PROGRAM.—^The Secretary shall conduct a research, devolop-
ment, demonstration, and commercial application program for 
underground coal gasification technology for in-situ conversion of 
coal to a cleaner burning, easily transportable gaseous fuel. The 
goal and objective of this program shall be to accelerate the develop-
ment and commercialization of underground coal gasification. In 
carrying out this program, the Secretary shall give equal consider-
ation to all ranks of coal. 
(b) DEMONSTRATION PROJECTS.—As part of the program author-
ized in subsection (a), the Secretary may solicit proposals for imder-
ground coal gasification technology projects to fulfill the goal and 
objective of subsection (a). 
SEC. 1310. LOW-RANK COAL RESEARCH AND DEVELOPMENT. 
42 USC 13340. 
The Secretary shall pursue a program of research and develop-
ment with respect to the technologies needed to expand the use 
of low-rank coals which take into account the unique properties 
106 STAT. 2976 
PUBLIC LAW 102-486—OCT. 24, 1992 
of lignites and sub-bituminous coals, including, but not limited 
to, the following areas— 
(1) high value-added carbon products; 
(2) fuel cell applications; 
(3) emissions control and combustion efficiencies; 
(4) coal water fuels and underground coal gasification; 
(5) distillates; and 
(6) any other technologies which will assist in the develop-
ment of niche markets for lignites and sub-bituminous coals. 
42 use 13341. 
SEC. 1311. MAGNETOHYDRODYNAMICS. 
(a) PROGRAM,—^The Secretary shall carry out a research, devel-
opment, demonstration, and commercial application program in 
magnetohydrodynamics. The purpose of this program shall be to 
determine the adequacy of the engineering and design information 
completed to date under Department of Energy contracts related 
to magnetohydrodj^amics retrofit systems and to determine 
whether any further Federal investment in this technology is war-
ranted. 
(b) SOLICITATION OF PROPOSALS.—In order to carry out the 
program authorized in subsection (a), the Secretary may solicit 
proposals from the private sector and seek to enter into an agree-
ment with appropriate parties. 
42 use 13342. 
SEC. 1312. OIL SUBSTITUTION THROUGH COAL UQUEFACTION. 
(a) PROGRAM DIRECTION.—The Secretary shall conduct a pro-
gram of research, development, demonstration, and commercial 
application for the purpose of developing economically and environ-
mentally acceptable advanced technologies for oil substitution 
through coal liquefactior. 
(b) PROGRAM GOALS.—^The goals of the program established 
under subsection (a) shall include— 
(1) improved resource selection and product quality; 
(2) the development of technologies to increase net jdeld 
of liquid fuel product per ton of coal; 
(3) an increase in overall thermal efficiency; and 
(4) a reduction in capital and operating costs through tech-
nology improvements. 
(c) PROPOSALS.—^Within 180 days after the date of enactment 
of this Act, the Secretary shall solicit proposals for conducting 
activities under this section. 
42 use 13343. 
SEC. 1313. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Secretary for 
carrying out this subtitle $278,139,000 for fiscal year 1993 and 
such sums as may be necessary for fiscal years 1994 through 
1997. 
Subtitle B—Clean Coal Technology 
Program 
42 use 13351. 
SEC. 1321. ADDITIONAL CLEAN COAL TECHNOLOGY SOUCITATIONS. 
(a) PROGRAM DESIGN.—^Additional clean coal technology solicita-
tions described in subsection (b) shall be designed to ensure the 
timely development of cost-effective technologies or energy produc-
tion processes or systems utilizing coal that achieve greater effi-
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2977 
ciency in the conversion of coal to useful energy when compared 
to currently commercially available technology for the use of coal 
and the control of emissions from the combustion of coal. Such 
program shall be designed to ensure, to the greatest extent possible, 
the availability for conmiercial use of such technologies by the 
year 2010. 
(b) ADDITIONAL SOLICITATIONS.—In conducting the Clean Coal 
Program established by Public Law 98-473, the Secretary shall 
consider the potential benefits of conducting additional solicitations 
pursuant to such program and, based on the results of that consider-
ation, may carry out such additional solicitations, which shall be 
similar in scope and percentage of Federal cost sharing as that 
provided by Public Law 101-121. 
Subtitle C—Other Coal Provisions 
SEC. 1331. CLEAN COAL TECHNOLOGY EXPORT PROMOTION AND 
42 USC13361. 
INTERAGENCY COORDINATION. 
(a) ESTABLISHMENT.—There shall be established within the 
Trade Promotion Coordinating Committee (established by the Presi-
dent on May 23, 1990) a Clean Coal Technology Subgroup (in 
this subtitle referred to as the "CCT Subgroup") to locus interagency 
efforts on clean coal technologies. The CCT Subgroup shall seek 
to expand the export and use of clean coal technologies, particularly 
in those coiuitries which can benefit from gains in the efliciency 
of, and the control of environmental emissions from, coal utilization. 
(b) MEMBERSHIP.—The CCT Subgroup shall include 1 member 
from each agency represented on the Energy, Environment, and 
Infrastructure Working Group of the Trade Promotion Coordinating 
Committee as of the date of enactment of this Act. The Secretary 
shall serve as chair of the CCT Subgroiip and shall be responsible 
for ensuring that the fimctions of the CCT Subgroup are carried 
out through its member agencies. 
(c) CONSULTATION.—(1) In carrying out this section, the CCT 
Subgroup shall consult with representatives from the United States 
coal industry, representatives of railroads and other transportation 
industries, organizations representing workers, the electric utility 
industry, manufacturers of equipment utilizing clean coal tech-
nology, members of organizations formed to fiu*ther the goals of 
environmental protection or to promote the development and use 
of clean coal technologies that are developed, manufactured, or 
controlled by United States firms, and other appropriate interested 
members of the public. 
(2) The CCT Subgroup shall maintain ongoing liaison with 
other elements of the Trade Promotion Coordinating Committee 
relating to clean coal technologies or regions where these tech-
nologies could be important, including Eastern Europe, Asia, and 
the Pacific. 
(d) DUTIES.—The Secretary, acting through the CCT Subgroup, 
shall— 
(1) facilitate the establishment of technical training for 
the consideration, planning, construction, and operation of clean 
coal technologies by end users and international development 
personnel; 
(2) facilitate the establishment of and, where practicable, 
cause to be established, consistent with the goals and objectives 
106 STAT. 2978 
PUBLIC LAW 102-486—OCT. 24, 1992 
stated in section 1301(a), within existing departments and 
agencies— 
(A) financial assistance programs (including grants, 
loan guarantees, and no interest and low interest loans) 
to support prefeasibility and feasibility studies for projects 
that will utilize clean coal technologies; and 
(B) loan guarantee programs, ^ants, and no interest 
and low interest loans designed to facilitate access to cap-
ital and credit in order to finance such clean coal technology 
projects; 
(3) develop and ensure the execution of programs, including 
the establishment of financial incentives, to encourage and 
support private sector efforts in exports of clean coal tech-
nologies that are developed, manufactured, or controlled by 
United States firms; 
(4) encourage the training in, and understanding of, clean 
coal technologies by representatives of foreign companies or 
countries intending to use coal or clean coal technologies by 
providing technical or financial support for training programs, 
workshops, and other educational programs sponsored by 
United States firms; 
(5) educate loan officers and other officers of international 
lending institutions, commercial and energy attaches of the 
United States, and such other personnel as the OCT Subgroup 
considers appropriate, for the purposes of providing information 
about clean coal technologies to foreign governments or poten-
tial project sponsors of clean coal technology projects; 
(6) develop policies and practices to be conducted by 
commercial and energy attaches of the United States, and 
such other personnel as the COT Subgroup considers appro-
priate, in order to promote the exports of clean coal technologies 
to those countries interested in or intending to utilize coal 
resources; 
(7) augment budgets for trade and development programs 
supported by Federal agencies for the purpose of financially 
supporting prefeasibility or feasibility studies for projects in 
foreign countries that will utilize clean coal technologies; 
(8) review ongoing clean coal technology projects and review 
and advise Federal agencies on the approval of planned clean 
coal technology projects which are sponsored abroad by any 
Federal agency to determine whether such projects are consist-
ent with the overall goals and objectives of this section; 
(9) coordinate the activities of the appropriate Federal 
agencies in order to ensure that Federal clean coal technology 
export promotion policies are implemented in a timely fashion; 
(10) work with COT Subgroup member agencies to develop 
an overall strategy for promoting clean coal technology exports, 
including setting goals and allocating specific responsibilities 
among member agencies, consistent with applicable statutes; 
and 
(11) coordinate with multilateral institutions to ensure that 
United States technologies are properly represented in their 
projects. 
(e) DATA AND INFORMATION.—(1) The OCT Subgroup, consistent 
with other applicable provisions of law, shall ensure the develop-
ment of a comprehensive data base and information dissemination 
system, using the National Trade Data Bank and the Commercial 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2979 
Information Management System of the Department of Commerce, 
relating to the availability of clean coal technologies and the poten-
tial need for such technologies, particularly in developing countries 
and countries making the transition from nonmarket to market 
economies. 
(2) Tlie Secretary, acting through the CCT Subgroup, shall 
assess and prioritize foreign markets that have the most potential 
for tiie export of clean coal technologies that are developed, manu-
factured, or controlled by United States firms. Such assessment 
shall include— 
(A) an analysis of the financing reciuirements for clean 
coal technology projects in foreign countries and whether such 
projects are dependent upon financial assistance from foreign 
countries or multilateral institutions; 
(B) the availability of other fiiel or energy resources that 
may be available to meet the energy requirements intended 
to be met by the clean coal technology projects; 
(C) the priority of environmental considerations in the 
selection of such projects; 
(D) the technical competence of those entities likely to 
be involved in the planning and operation of such projects; 
(E) an objective comparison of the environmental, energy, 
and economic performance of each clean coal technology relative 
to conventioneu technologies; 
(F) a list of United States vendors of clean coal technologies; 
and 
(G) answers to commonly asked questions about clean coal 
technologies. 
The Secretaiy, acting through the CCT Subgroup, shall make such 
information available to the House of Representatives and the Sen-
ate, and to the appropriate committees of each House of Congress, 
industry. Federal and international financing organizations, non-
governmental organizations, potential customers abroad, govern-
ments of coimtries where such clean coal technologies might be 
used, and such others as the CCT Subgroup considers appropriate, 
(f) REPORT.—^Within 180 days after the Secretary submits the 
report to the Congress as required by section 409 of Public Law 
101-549, the Secretary, acting through the CCT Subgroup, shall 
provide to the appropriate committees of the House of Representa-
tives and the Committee on Energy and Natural Resources of 
the Senate, a plan which details actions to be taken in order 
to address those recommendations and findings made in the report 
submitted pursuant to section 409 of Public Law 101-549. As a 
part of the plan required by this subsection, the Secretary, acting 
through the CCT Subgroup, shall specificallv address the adequacy 
of financial assistance available trom Federal departments and 
agencies and international financing organizations to aid in the 
financing of prefeasibility and feasibility studies and projects that 
would use a clean coal technology in developing countries and 
coimtries making the transition from nonmarket to market econo-
mies. 
SEC. 1332. I
N
N
O
V
A
T
I
V
E C
L
E
A
N C
O
A
L T
E
C
H
N
O
L
O
G
Y TRANSFER PRO- 42 U
S
C 13362. 
G
R
A
M
. 
(a) E
S
T
A
B
U
S
H
M
E
N
T O
F PROGRAM.—The Secretary, through the 
Agency for International Development, and in consultation with 
the other members of the CCT subgroup, shall establish a clean 
106 STAT. 2980 
PUBLIC LAW 102-486—OCT. 24, 1992 
coal technology transfer program to cany out the purposes described 
in subsection (b). Within 150 days after the date of enactment 
of this Act, the Secretary and the Administrator of the Agency 
for International Development shall enter into a written agreement 
to carry out this section. The agreement shall establish a procedure 
for resolving any disputes between the Secretary and the Adminis-
trator regarding the implementation of specific projects. With 
respect to countries not assisted by the Agency for International 
Development, the Secretary may enter into agreements with other 
appropriate United States agencies. If the Secretaiy and the 
Amninistrator, or the Secretary and an agency described in the 
previous sentence, are unable to reach an agreement, each shall 
send a memorandum to the President outlining an appropriate 
agreement. Within 90 days after receipt of either memorandum, 
the President shall determine which version of the agreement shall 
be in effect. Any agreement entered into under this subsection 
shall be provided to the appropriate committees of the Congress 
and made available to the public. 
(b) PURPOSES OF THE PROGRAM.—The purposes of the tech-
nology transfer program under this section are to— 
(1) reduce the United States balance of trade deficit through 
the export of United States energy technologies and techno-
logical expertise; 
(2) retain and create manufacturing and related service 
jobs in the United States; 
(3) encourage the export of United States technologies, 
including services related thereto, to those countries that have 
a need for developmentally soimd facilities to provide energy 
derived from coal resources; 
(4) develop markets for United States technologies and, 
where appropriate, United States coal resources to be utilized 
in meeting the energy and environmental requirements of for-
eign countries; 
(5) better ensure that United States participation in energy-
related projects in foreign countries includes participation oy 
United States firms as well as utilization of United States 
technologies that have been developed or demonstrated in the 
United States through publicly or privately funded demonstra-
tion programs; 
(6) provide for the accelerated deployment of United States 
technologies that will serve to introduce into foreign coimtries 
United States technologies intended to use coal resources in 
a more efficient, cost-effective, and environmentally acceptable 
manner; 
(7) serve to ensure the introduction of United States firms 
and expertise in foreign countries; 
(8) provide financial assistance by the Federal Grovemment 
to foster greater participation by United States firms in the 
financing, ownership, design, construction, or operation of clean 
coal technology projects in foreign countries; 
(9) assist foreign countries in meeting their energy needs 
through the use of coal in an environmentally acceptable man-
ner, consistent with sustainable development policies; and 
(10) assist United States firms, especially firms that are 
in competition with firms in foreign countries, to obtain 
opportunities to transfer technologies to, or undertake projects 
in, foreign countries. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2981 
(c) IDENTIFICATION.—Pursuant to the agreements required by 
subsection (a), the Secretary, through the Agency for International 
Development, and after consultation with the OCT Subgroup, 
United States firms, £uid representatives from foreign countries, 
shall develop mechanisms to identify potential energy projects in 
host countries, and shall identify a fist of such projects within 
240 days after the date of enactment of this Act, and periodically 
thereafter. 
(d) FINANCIAL MECHANISMS.—(1) Pursuant to the agreements 
under subsection (a), the Secretary, through the Agency for Inter-
national Development, shall— 
(A) estabUsh appropriate financial mechanisms to increase 
the participation of United States firms in energy projects 
utilizing United States clean coal technologies, and services 
related thereto, in developing countries and countries making 
the transition from nonmarket to market economies; 
(B) utilize available financial assistance authorized by this 
section to counterbalance assistance provided by foreign govern-
ments to non-United States 
firms; 
and 
(C) provide financisd assistance to support projects, 
including— 
(i) financing the incremental costs of a clean coal tech-
nology project attributable only to expenditures to prevent 
or abate emissions; 
(ii) providing the difference between the costs of a 
conventional energy project in the host country and a com-
parable project that would utilize a clean coal technology 
capable of achieving greater efficiency of energy products 
and improved environmental emissions compared to such 
conventional project; and 
(iii) such other forms of financial assistance as the 
Secretary, through the Agency for International Develop-
ment, considers appropriate. 
(2) The financial assistance authorized by this section may 
be— 
(A) provided in combination with other forms of financial 
assistance, including non-United States funding that is avail-
able to the project; and 
(B) utilized to assist United States firms to develop innova-
tive financing packages for clean coal technology projects that 
seek to utifize other financial assistance programs available 
through other Federal agencies. 
(3) United States obUgations under the Arrangement on Guide-
lines for Officially Supported Export Credits estabfished through 
the Organization for Economic Cooperation and Development shall 
be applicable to this section. 
(e) SouciTATiONS F
O
R P
R
O
J
E
C
T PROPOSALS.—(1) Pursuant to 
the agreements under subsection (a), the Secretary, through the 
Agency for International Development, within one year after the 
date of enactment of this Act, and subsequently as appropriate 
thereafter, shall soficit proposals from United States firms for the 
design, construction, testing, and operation of the project or projects 
identified under subsection (c) which propose to utilize a United 
States technology. Each soficitation under this section shall estab-
Ush a closing date for receipt of proposals. 
(2) The soficitation under this subsection shall, to the extent 
appropriate, be modeled after the RFP No. DE-PS01-90FE62271 
106 STAT. 2982 
PUBLIC LAW 102-486—OCT. 24, 1992 
Clean Coal Technology IV as administered by the Department of 
Energy. 
(3) Any solicitation made under this subsection shall include 
the following requirements: 
(A) The United States firm that submits a proposal in 
response to the solicitation shall have an equity interest in 
the proposed project. 
(B) The project shall utilize a United States clean coal 
technology, including services related thereto, and, where 
appropriate. United States coal resources, in meeting the 
appUcable energy and environmental requirements of the host 
country. 
(C) Proposals for projects shall be submitted by and under-
taken with a United States firm, although a joint venture 
or other teaming arrangement with a non-United States manu-
facturer or other non-United States entity is permissible. 
(f) ASSISTANCE TO UNITED STATES FIRMS.—Pursuant to the 
agreements under subsection (a), the Secretary, through the Agency 
for International Development, and in consmtation with the CCT 
Subgroup, shall establish a procedure to provide financial assistance 
to United States firms under this section for a prqject identified 
under subsection (c) where soUcitations for the project are being 
conducted by the host country or by a multilatersd lending institu-
tion. 
(g) OTHER PROGRAM REQUIREMENTS.—Pursuant to the agree-
ments under subsection (a), the Secretary, through the Agency 
for International Development, and in consultation with the CCT 
Subgroup, shall— 
(1) establish eligibility criteria for countries that will host 
projects; 
(2) periodically review the energy needs of such countries 
and export opportunities for United States firms for the develop-
ment of projects in such countries; 
(3) consult with government officials in host countries and, 
as appropriate, with representatives of utilities or other entities 
in host countries, to determine interest in and support for 
potential projects; and 
(4) determine whether each project selected under this 
section is developmentally sound, as determined under the 
criteria developed by the Development Assistance Committee 
of the Organization for Economic Cooperation and Development, 
(h) SELECTION OF PROJECTS.—(1) Pursuant to the agreements 
under subsection (a), the Secretary, through the Agency for Inter-
national Development, shall, not later than 120 days siter receipt 
of proposals in response to a solicitation under subsection (e), select 
one or more proposals under this section. 
(2) In selecting a proposal imder this section, the Secretary, 
through the Agency for International Development, shall consider— 
(A) the ability of the United States firm, in cooperation 
with the host country, to undertake and complete the project; 
(B) the degree to which the equipment to be included 
in the project is designed and manufactured in the United 
States; 
(C) the long-term technical and competitive viability of 
the United States technology, and services related thereto, and 
the ability of the United States firm to compete in the develop-
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2983 
ment of additional energy projects using such technology in 
the host country and in ouier foreign countries; 
(D) the extent of technical and financial involvement of 
the host country in the project; 
(E) the extent to which the proposed project meets the 
goals and objectives stated in section 1301(a); 
(F) the extent of technical, financial, management, and 
marketing capabilities of the participants in the project, and 
the commitment of the participants to completion of a successfiil 
project in a manner that will facilitate acceptance of the United 
States technology for 
fiiture 
application; and 
(G) such other criteria as may be appropriate. 
(3) In selecting amon^ proposed projects, the Secretaiy shall 
seek to ensure that, relative to otherwise comparable projects in 
the host country, a selected project will meet 1 or more of the 
following criteria: 
(A) It will reduce environmental emissions to an extent 
greater than re(][uired by applicable provisions of law. 
(B) It will mcrease iJie overall efficiency of the utilization 
of coed, including energy conversion efficiency and, where 
applicable, production of products derived 
firom 
coal. 
(C) It will be a more cost-eCTective technological alternative, 
based on life cycle capital and operating costs per unit of 
energy produced and, wnere applicable, costs per unit of product 
produced. 
Priority in selection shall be given to those projects which, in 
the judgment of the Secretary, best meet one or more of these 
criteria. 
(i) UNITED STATES-ASIA ENVIRONMENTAL PARTNERSHIP.—Activi-
ties carried out under this section shall be coordinated with the 
United States-Asia Environmental Partnership. 
(j) BUY AMERICA.—In carrying out this section, the Secretary, 
through the Agency for International Development, and pursuant 
to the agreements under subsection (a), shall ensure— 
(1) the maximum percentage, but in no case less than 
50 percent, of the cost of any eauipment furnished in connection 
witn a project authorized under this section shall be attrib-
utable to the manufactured United States components of such 
equipment; and 
(2) the maximum participation of United States firms. 
In determining whether the cost of United States components equals 
or exceeds 50 percent, the cost of assembly of such United States 
components in the host country shall not be considered a part 
of the cost of such United States component. 
(k) REPORTS TO CONGRESS.—The Secretary and the Adminis-
trator of the Agency for International Development shall report 
annually to the Committee on Energy and Natural Resources of 
the Senate and the appropriate committees of the House of Rep-
resentatives on the progress being made to introduce clean coal 
technologies into foreign countries. 
(1) DEFlNmON.—^For purposes of this section, the term liost 
country^ means a foreign country which is— 
(1) the participant in or the site of the proposed clean 
coal technology project; and 
(2) either— 
(A) classified as a country eligible to participate in 
development assistance programs of the Agency for Inter-
106 STAT. 2984 
PUBLIC LAW 102-486—OCT. 24, 1992 
42 u s e 13363. 
42 use 13364. 
Reports. 
16 use 824a-3 
note. 
national Development pursuant to applicable law or regula-
tion; or 
(B) a developing country or countiv with an economy 
in transition from a nonmarket to a market economy. 
(m) AUTHORIZATION FOR PROGRAM.—There are authorized to 
be appropriated to the Secretary to carry out the program required 
by this section, $100,000,000 for each of the fiscal years 1993, 
1994,1995,1996,1997, and 1998. 
SEC. 1333. CONVENTIONAL COAL TECHNOLOGY TRANSFER. 
If the Secretary determines that the utilization of a clean 
coal technology is not practicable for a proposed project and that 
a United States conventional coal technology would constitute a 
substantial improvement in efficiency, costs, and environmental 
performance relative to the technology being used in a developing 
country or coimtry making the transition from nonmarket to market 
economies, with significant indigenous coal resources, such tech-
nology shall, for purposes of sections 1321 and 1322, be considered 
a clean coal tecnnology. In the case of combustion technologies, 
only the retrofit, repowering, or replacement of a conventional tech-
nology shall constitute a substantial improvement for purposes 
of this section. In carryiag out this section, the Secretery shall 
give highest priority to promoting the most environmentally sound 
and energy emcient technologies. 
SEC. 1334. STUDY 
OF 
UTILIZATION 
OF 
COAL 
COMBUSTION 
BYPRODUCTS. 
(a) DEFINITION.—As used in this section, the term "coal combus-
tion b^roducts" means the residues from the combustion of coal 
including ash, slag, and flue gas desulfurization materials. 
(b) STUDY AND REPORT TO CONGRESS.—(1) The Secretary shall 
conduct a detailed and comprehensive study on the institutional, 
legal, and regulatory barriers to increased utilization of coal combus-
tion bj^roducts bjr potential govemmentel and commercial users. 
Such study shall identify and investigate barriers found to exist 
at the Federal, Stete, or local level, which may have limited or 
may have the foreseeable effect of limiting the quantities of coal 
combustion bjrproducts that are utilized. In conducting this study, 
the Secretary shall consult with other departmente and agencies 
of the Federal Government, appropriate Stete and local govem-
mente, and the private sector. 
(2) Not later than one year after the date of enactment of 
this Act, the Secretery shall submit a report to the Congress 
containing the resulte of the study required by paragraph (1) and 
the Secretsuys recommendations for action to be taken to increase 
the utilization of coal combustion bjrproducte. At a minimum, such 
report shall identify actions that would increase the utilization 
of coal combustion byproducte in— 
(A) bridge and highway construction; 
(B) stebilizing wastes; 
(C) procurement by departmente and agencies of the Fed-
eral Government and Stete and local govemmente; and 
(D) federally fimded or federally subsidized procurement 
by the private sector. 
SEC. 1335. CALCULATION OF AVOIDED COST. 
Nothing in section 210 of the Public UtiUty Regulatory Policies 
Act of 1978 (Public Law 95-617) reqiures a Stete regulatory author-
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2985 
ity or nonregulated electric utility to treat a cost reasonably identi-
fied to be incurred or to have been incurred in the construction 
or operation of a facility or a project which has been selected 
by the Department of Energy and provided Federal funding pursu-
ant to the Clean Coal Program authorized by Public Law 98-
473 as an incremental cost of alternative electric energy. 
SEC. 1336. COAL FUEL MIXTURES. 
42 USC 13365. 
Within one year following the date of enactment of this Act, Reports. 
the Secretary shall submit a report to the Committee on Energy 
and Commerce and the Committee on Science, Space, and Tech-
nology of the House of Representatives and the Committee on 
Energy and Natural Resources of the Senate on the status of 
technologies for combining coal with other materials, such as oil 
or water fuel mixtures. The report shall include— 
(1) a technical and economic feasibility assessment of such 
technologies; 
(2) projected developments in such technologies; 
(3) an assessment of the market potential of such tech-
nologies, including the potential to displace imported crude 
oil and refined petroleum products; 
(4) identification of barriers to commercialization of such 
technologies; and 
(5) recommendations for addressing barriers to commer-
ciaUzation. 
SEC. 1337. NATIONAL CLEARINGHOUSE. 
42 USC 13366. 
(a) FEASIBILITY.—(1) The Secrettuy shall assess the feasibility 
of estabUshing a nationtd clearinghouse for the exchange and 
dissemination of technical information on technology relating to 
coal and coal-derived fuels. 
(2) In assessing the feasibility, the Secretary shall consider 
whether such a clearinghouse would be appropriate for purposes 
o
f
— 
(A) collecting information and data on technology relating 
to coal, and coal-derived fuels, which can be utilized to improve 
environmental quality and increase energy independence; 
(B) disseminating to appropriate individuals, governmental 
departments, agencies, ana instrumentalities, institutions of 
higher education, and other entities, information and data col-
lected pursuant to this section; 
(C) maintaining a library of technology publications and 
treatises relating to technology information and data collected 
pursuant to this section; 
(D) organizing and conducting seminars for government 
officials, utilities, coal companies, and other entities or institu-
tions relating to technology using coal and coal-derived fuels 
that will improve environmental quality and increase energy 
independence; 
(E) gathering information on research grants made for 
the purpose of improving or enhancing technology relating to 
the use of coal, and coal-derived fuels, which will improve 
environmental quality and increase energy independence; 
(F) translating into English foreign research papers, arti-
cles, seminar proceedings, test results that affect, or could 
affect, clean coal use technology, and other documents; 
(G) encouraging, during the testing of technologies, the 
use of coal from a variety of domestic sources, and collecting 
106 STAT. 2986 
PUBLIC LAW 102-486—OCT. 24, 1992 
42 use 13367. 
42 use 13368. 
Federal 
Register, 
publication. 
or developing, or both, complete listings of test results using 
coals fromallsources; 
(H) establishing and maintaining an index or compilation 
of research projects relating to clean coal technology carried 
out throughout the world; and 
(1) conducting economic modeling for feasibility of projects, 
(b) AuTHORiry To ESTABUSH CLEARINGHOUSE.—Based upon 
the assessment under subsection (a), the Secretary may establish 
a clearinghouse. 
SEC. 1338. COAL EXPORTS. 
(a) PLAN.—^Within 180 days after the date of enactment of 
this Act, the Secretary of Commerce, in cooperation with the Sec-
retary and other appropriate Federal agencies, shall submit to 
the appropriate committees of the House of Representatives and 
the Cfommittee on Energy emd Natural Resources of the Senate 
a plan for expanding exports of coal mined in the United Stetes. 
(b) PLAN CONTENTS.—^The plan submitted under subsection (a) 
shall include— 
(Da description of the location, size, and projected growth 
in potential export markets for coal mined in the United Stetes; 
(2) the identification by country of the foreign trade barriers 
to the export of coal mined in the United States, including 
foreign coal production and utilization subsidies, tax treatment, 
labor practices, tariffs, quotes, and other nonteriff barriers; 
(3) recommendations and a plan for addressing any such 
trade barriers; 
(4) an evaluation of existing infrastructure in the United 
Stetes and any new infrastructure requiremente in the United 
Stetes to support an expansion of exporte of coal mined in 
the United States, including porte, vessels, rail lines, and any 
other supporting infrastructure; and 
(5) an assessment of environmental implications of coal 
exports and the identification of export opportunities for blend-
ing coal mined in the United Stetes witn coal indigenous to 
other countries to enhance energy efficiency and environmental 
performance. 
SEC. 
1
3
3
9
. 
OWNERSHIP 
OF 
COALBED 
METHANE. 
(a) FEDERAL LANDS AND MINERAL RIGHTS.—In the case of any 
deposit of coalbed methane where the United Stetes is the owner 
of the surface estete or where the United Stetes has transferred 
the surface estete but reserved the subsurface mineral estete, the 
Secretary of the Interior shall administer this section. This section 
and the definitions contained herein shall be applicable only on 
lands within Affected Stetes. 
(b) AFFECTED STATES.—Not later than 180 days after the date 
of enactment of this Act, the Secretary of the Interior, with the 
participation of the Secretary of Energy, shall publish in the Federal 
Register a list of Affected Stetes which shall be comprised of 
Stetes— 
(1) in which the Secretary of the Interior, with the partici-
pation of the Secretary of Energy, determines that disputes, 
uncertainty, or Utigation exist, regarding the ownership of coal-
bed methane ^as; 
(2) in which the Secretary of the Interior, with the partici-
pation of the Secretary of Energv, determines that development 
of significant deposite of coalbed. methane gas is being impeded 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2987 
by such existing disputes, uncertainty, or litigation regarding 
ownership of such coalbed methane; 
(3) which do not have in effect a statutory or regulatory 
procedure or existing case law permitting and encouraging the 
development of coan)ed methane ^as within that State; and 
(4) which do not have extensive development of coalbed 
methane gas. 
The Secretary of the Interior, with the participation of the Secretary 
of Energy, shall revise such list of Affectea States from time to 
time. Any Affected State shall be deleted frt)m the list of Affected 
Stetes upon the receipt by the Secretary of the Interior of a Gov-
ernor's petition requesting such deletion, a Stete law requesting 
such deletion, or a resolution requesting such deletion enacted 
by the legislative body of the Stete. A Governor intending to petition 
the Secretary of the Interior to delete a Stete from the list of 
Affected Stetes shall provide the Stete's legislative body with 6 
months notice of such petition during a legislative session. At 
the end of such 6-month period, the Governor may petition the 
Secretary of the Interior to delete a Stete from the list of Affected 
Stetes, imless during such 6-month period, the Stete's legislative 
body has enacted a law or resolution disapproving the Governor's 
petition. Until the Secretary of the Interior, with the participation 
of the Secretery of Energy, publishes a d^erent list, the Stetes 
of West Virginia, Pennsylvania, Kentucky, Ohio, Tennessee, 
Indiana, and Illinois shall be the Affected States, effective on the 
date of the enactment of this Act. The Stetes of Colorado, Montena, 
New Mexico, Wyoming, Utah, Virginia, Washington, Mississippi, 
Louisiana, and Alabama shall not be included on the Secretary 
of the Interior's list of Affected Stetes or any extension or revision 
thereof. 
(c) FAILURE TO ADOPT STATUTORY OR REGULATORY PROCE-
DURE.—If an Affected Stete has not placed in effect, by stotute 
or by regulation, a substential program promoting the permitting, 
drilling and production of coalbed methane wells (including pooling 
arrangements) within that Stete within 3 years after becoming 
an Affected Stete, the Secretary of the Interior, with the participa-
tion of the Secretery of Energy, shall administer this section and 
shall promulgate such regulations as are necessaiy to carry out 
this section in that Stete. 
(d) IMPLEMENTATION BY THE SECRETARY OF THE INTERIOR.— 
In implementing this section, the Secretery of the Interior, with 
the participation of the Secretery of Energy, shall— 
(A) consider existing and future coal mining plans, 
(B) preserve the mineability of coal seams, and 
(C) provide for the prevention of waste and maximization 
of recovery of coal ana coalbed methane gas in a manner 
which will protect the righto of all entities owning an interest 
in such coalbed methane resource. 
(e) SPACING.—^Except where Stete law in an Affected Stete 
contains existing spacing requiremente regarding the minimum dis-
tance between coalbed methane wells and the minimum distance 
of a coalbed methane well from a property line, the Secretery 
of the Interior shall esteblish such requiremente within 90 days 
after the assertion of jurisdiction pursuant to subsection (c) of 
this section. 
(f) SPACING UNITS.—^Applications to esteblish spacing unite for 
the drilling and operation of coalbed methane gas wells may be 
106 STAT. 2988 
PUBLIC LAW 102-486—OCT. 24, 1992 
filed by any entity claiming a coalbed methane ownership interest 
within a proposed spacing unit. Upon receipt and approval of an 
application, the Secretary of the Interior shall issue an order 
establishing the boundaries of the coalbed methane spacing unit. 
Spacing umts shall generally be miiform in size. 
(g) DEVELOPMENT UNDER POOLING ARRANGEMENT.—Following 
issuance of an order estabUshin^ a spacing unit under subsection 
(f), and pursuant to an appUcation for pooling filed by the entity 
claiming a coalbed methane ownership interest and proposing to 
drill a coalbed methane gas well, the Secretary of the Interior 
shall hold a hearing to consider the application for pooling and 
shall, if the criteria of this section are met, issue an order allowing 
the proposed pooling of acreage within the designated spacing imit 
for purposes of drilling and production of coalbed methane from 
the spacing unit. The poolii^ order shall not be issued before 
notice or a reasonable and mligent effort to provide notice has 
been made to each entity which may claim an ownership interest 
in the coalbed methane gas within such spacing unit and each 
such entity has been offered an opportunity to appear before the 
Secretary of the Interior at the hearing. Upon issuance of a pooling 
order, each owner or claimant of an ownership interest shall be 
allowed 
to 
make one of the following elections: 
(1) An election to sell or lease its coalbed methane owner-
ship interest to the unit operator at a rate determined by 
the Secretary of the Interior as set forth in the pooUn^ order. 
(2) An election to become a participating working mterest 
owner by bearing a share of the risks and costs of drilling, 
completing, equipping, gathering, operating (including all dis-
posed coste), piug^g and abandoning the well, and receiving 
a share of production from the well. 
(3) An election to share in tiie operation of the well as 
a nonparticipating working interest owner by relinquishing its 
working interest to participating working interest owners until 
the proceeds allocable to its share e^ual 300 percent of the 
share of such costs allocable to its interest. Thereafter, the 
nonparticipating working interest owner shall become a partici-
pating working interest owner. 
The pooling order shall designate a unit operator who shall be 
authorized to drill and operate the spacing unit. The pooUng order 
shall provide that any entity claiming an ownership interest in 
the coalbed methane within such spacing unit which does not 
make an election under the pooHng order snail be deemed to have 
leased its coalbed methane interest to the unit operator under 
such terms and conditions as the pooling order may provide. No 
pooling order may be issued under this paragraph for any spacing 
imit if all entities claiming an ownersmp interest in the coalbed 
methane in the spacing unit have entered into a voluntery agree-
ment providing for the drilling and operation of the coalbed methane 
gas well for the spacing unit. 
(h) ESCROW ACCOUNT.—<1) Each pooling order issued under 
subsection (g) shall provide for the estoblishment of an escrow 
account into which the payment of costs and proceeds attributeble 
to the conflicting interests shall be deposited and held for the 
interest of the claimante as follows: 
(A) Each participating working interest owner, except for 
the unit operator, shall deposit in the escrow account ite propor-
tionate share of the costs allocable to the ownership interest 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2989 
claimed by each such participating working interest owner as 
set forth in the pooling order issued by the Secretary of the 
Interior. 
(B) The unit operator shall deposit in the escrow account 
all proceeds attributable to the coi^cting interests of lessees, 
plus all proceeds in excess of ongoing operational expenses 
(including reasonable overhead costs) attributable to conflicting 
working interests. 
(2) The Secretary of the Interior shall order payment of prin-
cipal and accrued interest from the escrow account to all legally 
entitled entities within 30 days of receipt by the Secretary of 
the Interior of notification of the final legal determination of entitle-
ment or upon agreement of all entities claiming an ownership 
interest 
in the coalbed methane 
gas. Upon such 
final 
determination— 
(A) each legally entitled participating working interest 
owner shall receive a proportionate share of the proceeds attrib-
utable to the conflicting ownership interest; 
(B) each legally entitled nonparticipating working interest 
owner shall receive a proportionate share of the proceeds attrib-
utable to the conflicting ownership interest, less the cost of 
being carried as a nonparticipating working interest owner 
(as determined by the election of the entity under the applicable 
pooling order); 
(C) each entity leasing (or deemed to have leased) its coal-
bed methane ownership interest to the unit operator shall 
receive a share of the royalty proceeds (as set out in the 
applicable pooling order) attributable to the conflicting interests 
of lessees; cmd 
(D) the unit operator shall receive the costs contributed 
to the escrow account by each legally entitled participating 
working interest owner. 
The Secretary of the Interior shall enact rules and regulations 
for the administration and protection of funds delivered to the 
escrow accounts. 
(i) APPROVAL OF THE SECRETARY OF THE INTERIOR.—NO entity 
may drill any well for the production of coalbed methane gas from 
a coal seam, subject to the provisions of subsection (g), in an 
Affected State unless the drilling of such well has been approved 
by the Secretary of the Interior. 
(j) AUTHORIZATION TO STIMULATE A COAL SEAM.—(1) No opera-
tor of a coalbed methane well may stimulate a coal seam vdthout 
the written consent of each entity which, at the time that the 
coalbed methane operator applies for a drilUng permit, is operating 
a coal mine, or has by virtue of his property rights in the coal 
the ability to operate a coal mine, located within a horizontal 
or verticsJ distance from the point of stimulation as established 
by the Secretary of the Interior pursuant to paragraph (3) of this 
subsection. In seeking the coal operator's consent, a coalbed meth-
ane well operator shall provide the coal operator with necessary 
information about such stimulation, including relevant information 
to ensure compliance with coal mine safety laws and rules. 
(2) In the absence of a written consent pursuant to paragraph 
(1) and at the request of a coalbed methane operator, Uie Secretsuy 
of the Interior shall make a determination regarding stimulation 
of a coal seam. Such request shall include an affidavit which shall— 
106 STAT. 2990 
PUBLIC LAW 102-486—OCT. 24, 1992 
(A) state that an entity from which consent is required 
pursuant to paragraph (1) has refused to provide written con-
sent; 
(B) set forth in detail the efforts undertaken by the 
applicant to obt£iin such written consent; 
(C) state the knoMoi reasons for the consent not being 
provided; 
(D) set forth the conditions and compensation, if any, 
offered by the applicant as part of the efforts to obtain consent; 
and 
(E) provide prima facie evidence that the method of stimu-
lation proposed by the coalbed methane operator will not (i) 
cause unreasonable loss or damage to the coal seam considering 
all factors, including the prospect, taking into consideration 
the economics of the coal industiy, that coal seams for which 
no actual or proposed mining plans exist ¥dll be mined at 
some future date, or (ii) violate mine safety requirements. If 
a denial of consent by a coal operator is based on reasons 
related to safety, the Secretary of the Interior shall seek the 
views and recommendations of the appropriate State or Federal 
coal mine safetv agency. Any determination by the Secretary 
of the Interior shall be in accordance with all applicable Federal 
and State coal mine safety laws and such views and rec-
ommendations. A determination by the Secretary of the Interior 
approving a method of stimulation may include reasonable 
conditions including, but not limited to, conditions to mitigate, 
to the extent practicable, economic damage to the coal seam. 
Any determination approving or denying a method of stimula-
tion by the Secretary of the Interior shsdl be subject to appeal. 
Interested entities shall be allowed to participate in ana com-
ment on proceedings under this paragraph. 
(3) The Secretary of the Interior shall by rule establish, for 
an Affected State, a region thereof, or a multi-State region com-
prised of Affected States, the boundaries within which a coalbed 
methane operator shall be required to obtain written consent from 
a coal operator pursuant to paragraph (1). Such boimdaries shall 
be stated in terms of a horizontal and a vertical distance from 
the point of stimulation and shall be determined based on an 
evaluation of the maximum length, height and depth of fracture 
producible in a coal seam in such Affected State, region thereof, 
or multi-State region comprised of Affected States. 
(4) The consent required under this subsection shall in no 
way be deemed to impair, abridge, or affect any contractual rights 
or objections arising out of a coalbed methane gas contract or 
coalbed methane gas lease in existence as of the effective date 
of this section between the coalbed methane operator and the coal 
operator, and the existence of such lease or contractual agreement 
and any extensions or renewals of such lease shall be deemed 
to fully meet the requirements of this section. 
(5) Nothing in this subsection precludes either a coal operator 
or a coalbed methane operator from seeking in the appropriate 
State forum compensation for the consequences of a determination 
by the Secretary of the Interior pursuant to paragraph (2). 
(k) NoncE A
N
D OBJECTION.—(1) The Secretary of the Interior 
shall not approve the drilling of any coalbed methane well unless 
Uie unit operator has notified each entity which is operating, or 
has the ability, by virtue of his property rights in the coal, to 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2991 
operate, a coal mine in any portion of the coalbed that would 
be affected by such well within the distances estabUshed pursuant 
to ttie rules promulgated under subsection (jXS). Any notified entity 
may object to the drilling of such well witmn 30 days after receipt 
of a notice. Upon receipt of a timely objection to the drilling of 
any coalbed methane gas well submitted by a notified entity, the 
Secretary of the Interior mav refuse to approve the drilling of 
the well based on any of the following: 
(A) The proposed activity, due to its proximity to any 
coal mine opening, shaft, underground worldngs, or to any 
proposed extension of the coal mine, would adversely affect 
any operating, inactive or abandoned coal mine, inclumng any 
coal mine already surveyed and platted but not yet being oper-
ated. 
(B) The proposed activity would not conform with a coal 
operator's development plan for an existing or proposed oper-
ation. 
(C) There would be an unreasonable interference from the 
proposed activity with present or future coal mining operations, 
mcluding the ability to comply with other applicable laws and 
regulations. 
(D) The presence of evidence indicating that the proposed 
drilling activities would be unsafe, taking into consideration 
the dangers from creeps, squeezes or other disturbances due 
to the ei^raction of coal. 
(E) The proposed activity would unreasonably interfere 
with the safe recovery of coal, oil and gas. 
(2) In the event the Secretary of the Interior does not approve 
the drilling of a coalbed methane well pursuant to paragraph (1), 
the Secretary of the Interior shall consider whether such drilling 
could be approved if the unit operator modifies the proposed activi-
ties to take mto account any of the following: 
(A) The proposed activity could instead be reasonably done 
through an existing or planned pillar of coal, or in close proxim-
ity to an existing well or such pillar of coal, taking into consider-
ation surface topography. 
(B) The proposed activity could instead be moved to a 
mined-out area, below the coal outcrop or to some other feasible 
area. 
(C) The unit operator agrees to a drillin|^ moratorivun of 
not more than two years in order to permit completion of 
coal mining operations. 
(D) The practicaUty of locating the proposed spacing unit 
or well on a uniform pattern with other spacing umts or wells. 
(1) PLUGGING.—^All coalbed methane wells drilled after enact-
ment of this Act that penetrate coal seams with remaining reserves 
shall provide for subsequent safe mining through the well in accord-
ance with standards prescribed by the Secretaiy of the Interior, 
in consultation with any Federal and State agencies having author-
ity over coal mine safety. Well plugging costs should be allocated 
in accordance with State law or private contractual arrangement, 
as the case may be. 
(m) NoncE A
N
D OBJECTION BY OTHER PARTIES.—The Secretary 
of the Interior shall not approve the drilling of any coalbed methane 
well unless such well compUes with the spacing and other require-
ments estobUshed by the Secretary of the Interior and each of 
the following: 
106 STAT. 2992 
PUBLIC LAW 102-486—OCT. 24, 1992 
(1) The unit operator of such well has notified, or has 
made a reasonable and diligent eiTort to notify, all entities 
claiming ownership of coalbed methane to be drained by such 
well and provided an opportimity to object in accordance with 
requirements established b^ the Secretary of the Interior. 
(2) Where conflicting mterests exist, an order under sub-
section (g) establishing pooling requirements has been issued. 
The notification requirementis of tms subsection shall be additional 
to the notification referred to in subsection (k). The Secretary of 
the Interior shall establish the conditions under which entities 
claiming ownership of coalbed methane may object to the drilling 
of a coalbed methane well. 
(n) VENTING FOR SAFETY.—^Nothing in this section shall be 
construed to prevent or inhibit the entity which has the right 
to develop and mine coal in any mine from venting coalbed methane 
gas to ensure safe mine operations. 
(o) OTHER LAWS.—^Tne Secretary of the Interior shall comply 
with all applicable Federal and State coal mine safety laws and 
regulations. 
(p) DEFINITIONS.—As used in this section— 
(1) The term "Affected State" means a State Usted by 
the Secretanr of the Interior, with the participation of the 
Secretary of Energy, under subsection (b). 
(2) Tlie term "coalbed methane gas" means occluded natural 
gas produced (or which majr be produced) from coalbeds and 
rock strata associated therewith. 
(3) The term "unit operator" means the entity designated 
in a pooling order to develop a spacing unit by the drilling 
of one or more wells on the unit. 
(4) The term "nonparticipating working interest owner" 
means a gas or oil owner of a tract included in a spacing 
unit which elects to share in the operation of the well on 
a carried basis by agreeing to have its proportionate share 
of the costs allocable to its interest charged against its share 
of production of the well in accordance with subsection (fX3). 
(5) The term "participating working interest owner" means 
a gas or oil owner which elects to bear a share of the risks 
and costs of drilling, completing, equipping, gathering, operat-
ing (inclu(Ung any and ail disposal costs) plugging, and aban-
doning a well on a spacing unit and to receive a share of 
production from the well equal to the proportion which the 
acreage in the spacing unit it owns or holds under lease bears 
to the total acreage of the spacing imit. 
(6) The term "coal seam" means any stratum of coal 20 
inches or more in thickness, unless a stratum of less thickness 
is being commercially worked, or can in the judgment of the 
Secret£uy of the Interior forseeably be commercially worked 
and will require protection if wells are being drilled through 
it. 
42 use 13369. 
SEC. 1340. ESTABLISHMENT OF DATA BASE AND STUDY OF TRANSPOR> 
TATION RATES. 
(a) DATA BASE.—^The Secretary shall review the information 
currently collected by the Federal Government and shall determine 
whether information on transportation rates for rail and pipeline 
transport of domestic coal, oil, and gas during the period of Janua^ 
1, 1988, through December 31, 1997, is reasonably available. If 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2993 
he determines that such information is not reasonably available, 
the Secretary shall establish a data base containing, to the maxi-
mum extent practicable, information on all such rates. The confiden-
tiality of contract rates shall be preserved. To obtain data pertaining 
to rail contract rates, the Secretary shall acquire such data in 
aggregate form only from the Interstate Commerce Commission, 
under terms and conditions that maintain the confidentiality of 
such rates. 
(b) STUDY.—^The Ener^ Information Administration shall 
determine the extent to which any agency of the Federal Govern-
ment is studying the rates and oistribution patterns of domestic 
coal, oil, and gas to determine the impact or the Clean Air Act 
as amended by the Act entitled "An Act to amend the Clean Air 
Act to provide for attainment and maintenance of health protective 
national ambient air quality standards, and for otlier purposes.", 
enacted November 15, 1990 (Public Law 101-549), and other Fed-
eral policies on such rates and distribution patterns. If the Energy 
Information Administration finds that no such study is underwav, 
or that reports of the results of such study will not be available 
to the Congress providing the information specified in this sub-
section and subsection (a) by the dates estaoUshed in subsection 
(c), the Energy Information Administration shall initiate such a 
study. 
(c) REPORTS TO CONGRESS.—Within one year after the date 
of enactment of this Act, the Secretary shall report to the Congress 
on the determination the Energy Information Administration is 
required to make under subsection (b). Within three years after 
the date of enactment of this Act, the Secretary shall submit reports 
on any data base or study developed under this section. Any such 
reports shall be updated and resubmitted to the Congress within 
eight years after such date of enactment. If the Energy Information 
Administration has determined pursuant to subsection (b) that 
another study or studies will provide all or part of the information 
called for in this section, the Secretary shall transmit the results 
of that study by the dates established in this subsection, together 
with his comments. 
(d) CONSULTATION WITH OTHER AGENCIES.—The Secretary and 
the Energy Information Administration shall consult with the 
Chairmen of the Federal Energy Regulatory Commission and the 
Interstate Commerce Commission in implementing this section. 
SEC. 1341. AUTHORIZATION OF APPROPRIATIONS. 
42 USC 13370. 
There are authorized to be appropriated to the Secretary for 
canying out this subtitle, other than section 1322, such sums 
as may he necessary for 
fiscal 
years 1993 through 1998. 
TITLE XIV—STRATEGIC PETROLEUM 
RESERVE 
SEC. 1401. DRAWDOWN AND DISTRIBUTION OF THE RESERVE. 
Section 161 of the Energy Policy and Conservation Act (42 
U.S.C. 6241) is amended— 
(1) in subsection (d)— 
(A) by striking "(d)" and inserting "(dXD"; and 
(B) by adding at the end the following new paragraph: 
59-194 O—93 
9:QL3(Pt. 4) 
106 STAT. 2994 
PUBLIC LAW 102-486—OCT. 24, 1992 
"(2) For purposes of this section, in addition to the cir-
cumstances set forth in section 3(8), a severe energy supply 
interruption shall be deemed to exist if the President determmes 
that^ 
"(A) an emergency situation exists and there is a significant 
reduction in supply which is of significant scope and duration; 
"(B) a severe increase in the price of petroleum products 
has resulted from such emergency situation; and 
"(C) such price increase is likely to cause a msgor adverse 
impact on the national economy."; and 
(2) in subsection (hXlXA), by inserting "or international" 
after "domestic". 
SEC. 1402. EXPANSION OF RESERVE. 
Section 154(a) of the Energy Policy and Conservation Act (42 
U.S.C. 6234) is amended— 
(1) by striking "(a)" and inserting "(aXD**; and 
(2) by adding at the end the following: 
"(2) Begmning on the date of the enactment of the Energy 
PoliQT Act of 1992, the President shall take actions to enlarge 
the Strategic Petroleum Reserve to 1,000,000,000 barrels as rapidly 
as possible. Such actions may include— 
"(A) petroleum acquisition, transportation, and ii\jection 
activities at the highest practicable fill rate achievable, subject 
to the availability of appropriated funds; 
"(B) contracting for petroleum product not owned by the 
United States as specified in part C; 
"(C) contracting for petroleum product for storage in facili-
ties not owned by the United States, except that no such 
product may be stored in such facilities unless petroleum prod-
uct stored in facilities owned by the United States on the 
date such product is delivered for storage is at least 750,000,000 
barrels; 
"(D) carrying out the activities described in section 16(Kh); 
"(E) the transferring of oil from the Naval Petroleum 
Reserve; and 
"(F) other activities specified in this title.". 
SEC. 1403. AVAILABILITY OF FUNDING FOR LEASING. 
Section 171 of the Energy Policy and Conservation Act (42 
U.S.C. 6249) is amended by adding at the end the following new 
subsection: 
"(f) AVAILABILITY OF FUNDS.—The Secretary may utilize such 
funds as are available in the SPR Petroleum Account to carry 
out the activities described in subsection (a), and may obligate 
and expend such funds to carry out such activities, in advance 
of the receipt of petroleum products.". 
SEC. 1404. PURCHASE FROM STRIPPER WELL PROPERTIES. 
(a) IN GENERAL.—Section 160 of the Energy Policy and Con-
servation Act (42 U.S.C. 6240) is amended by adding at the end 
the following new subsection: 
"(hXD u the President finds that declines in the production 
of oil from domestic resources pose a threat to national ener^ 
security, the President may direct the Secretary to acquire oil 
from domestic production of stripper well properties for storage 
in the Strategic Petroleum Reserve. Except as provided in para-
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2995 
graph (2), the Secretary may set such terms and conditions as 
he deems necessary for such acquisition. 
"(2) Crude oil purchased by the Secretary pursuant to this 
subsection shall be by competitive bid. The price paid by the 
Secretary— 
"(A) shall take into account the cost of production including 
costs of reservoir and well maintenance; and 
"(B) shall not exceed the price that would have been paid 
if the Secretary had acquired petroleum products of a similar 
quality on the open market under competitive bid procedures 
without regard to the source of the petroleum products.". 
(b) TECHNICAL CORRECTIONS.—Part B of title I of such Act 
is amended— 
(1) in section 167(d), in the matter preceding paragraph 42USC6247. 
(1), by striking "subsection (g)" and inserting "under subsection 
(g)"; and 
(2) in section 160(dX2>— 
42 use 6240. 
(A) by striking •'(2XAr and inserting **(2r; and 
(B) by redesignating clauses (i), (ii), and (iii) as sub-
paragraphs (A), (B), and (C), respectively. 
SEC. 1405. REDESIGNAHON OF ISLAND STATES. 
Section 157(a) of the Energy Policy and Conservation Act (42 
U.S.C. 6237(a)) is amended— 
(1) by striking "(a)" and inserting "(aXD"; and 
(2) by adding at tiie end the following new paragraph: 
"(2) For the purpose of carrying out this section— 
"(A) any State that is an island shall be considered to 
be a separate Federal Energy Administration Region, as defined 
in title 10, Code of Federal Regulations, as in effect on Novem-
ber 1,1975; 
"(B) determinations made with respect to Regions, other 
than States that are islands, shall be made as if the islands 
were not part of the Regions; and 
"(C) with respect to determinations made for any State 
that is an island, the term 'refined petroleum product' shall 
have the same meaning given the term 'petroleum product' 
in section 3(3).". 
SEC. 1408. INSULAR AREAS STUDY. 
(a) IN GENERAL.—^The Secretary shall conduct a study of the 
implications of the unique vulnerabilities of the insular areas to 
an oil supply disruption. Such study shall outline how the insular 
areas shall gain access to vital oil supplies during times of national 
emergency. Such study shall be completed and submitted to the 
Congress not later than 9 months after the date of the enactment 
of this Act. 
(b) DEFINITION.—^For purposes of this section, the term "insular 
areas" means the Virgin Islands, Puerto Rico, Guam, American 
Samoa, the Commonwealth of the Northern Mariana Islands, and 
Palau. 
106 STAT. 2996 
PUBLIC LAW 102-486—OCT. 24, 1992 
TITLE XV—OCTANE DISPLAY AND 
DISCLOSURE 
SEC. 1501. CERTIFICATION AND POSTING OF AUTOMOTIVE FUEL RAT-
INGS. 
(a) COVERAGE OF ALL LIQUID AUTOMOTIVE FUELS.—Section 
201(6) of the Petroleum Marketing Practices Act (15 U.S.C. 2821(6)) 
is amended to read as follows: 
"(6) The term 'automotive fuel' means liquid fuel of a type 
distributed for use as a fuel in any motor vehicle.". 
(b) AUTOMOTIVE FUEL RATING.—Section 201 of such Act (15 
U.S.C. 2821) is amended by adding at the end the following new 
paragraphs: 
*(17) The term 'automotive fuel rating* means— 
"(A) the octcuie rating of an automotive spark-ignition 
engine fuel; and 
"(B) if provided for by the Federal Trade Commission 
by rule, the cetane rating of diesel fuel oils; or 
"(C) another form of rating determined by the Federal 
Trade Commission, after consultation with the American 
Society for Testing and Materials, to be more appropriate 
to carry out the purposes of this title with respect to 
the automotive fuel concerned. 
''(18XA) The term 'cetane rating* means a measure, as 
indicated by a cetane index or cetane number, of the ignition 
quality of diesel fuel oil and of the influence of the diesel 
mel oil on combustion roughness. 
"(B) The term 'cetane index* and the term 'cetane number* 
have the meanings determined in accordance with the test 
methods set forth in the American Society for Testing and 
Materials standard test methods— 
"(i) designated D976 or D4737 in the case of cetane 
index; and 
"(ii) designated D613 in the case of cetane number, 
(as in effect on the date of the enactment of this Act) and 
shall apply to any grade or tyi>e of diesel fuel oils defined 
in the specification of the American Society for Testing and 
Materials entitled 'Standard Specification for Diesel Fuel Oils* 
designated D975 (as in effect on such date).**. 
(c) CONFORMING AMENDMENTS.—(1) Section 201 of such Act 
(15 U.S.C. 2821) is amended— 
(A) in paragraph (1), by striking out "gasoline** and insert-
ing in lieu thereof "fuel**; 
(B) in paragraph (2)— 
(i) 1^ striking out "Standard Specifications for Auto-
motive Gasoline** and inserting in lieu thereof "Standard 
Specification for Automotive Spark-Ignition Engine Fuel**; 
and 
(ii) by striking out "D 439** and inserting in lieu thereof 
"04814**; 
(C) in paragraph (4)— 
(i) by striking out "gasoline** the first place it appears 
and inserting in lieu thereof "automotive fuel**; and 
(ii) by striking out "gasoline** the second place it 
appears and inserting in lieu thereof "fuel**; 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2997 
(D) by striking out paragraph (5) and inserting in lieu 
thereof the following: 
"(5) The term refiner' means any person engaged in the 
production or importation of automotive mel."; 
(E) in paragraph (11)— 
(i) by striking out "octane" each place it appears and 
inserting in lieu thereof "automotive fuel"; and 
(ii) oy striking out "gasoline" each place it appears 
and inserting in lieu thereof "fuel"; and 
(F) in paragraph (16), by striking out "gasoline" each place 
it appears and inserting in lieu thereof "automotive fuel". 
(2) Section 202 of such Act (15 U.S.C. 2822) is amended— 
(A) by striking out "octane rating" and "octane ratings" 
each place such terms appear and inserting in lieu thereof 
"automotive fuel rating" and "automotive fuel ratings", respec-
tively; 
(B) in subsections (a) and (b), by striking out "gasoline" 
each place it appears and inserting in lieu thereof "fuel"; 
(C) in subsection (c)— 
(i) by striking out "gasoline" each place it appears 
(other than the second place it appears) and inserting 
in lieu thereof "automotive fuel"; and 
(ii) by striking out "gasoline" the second place it 
appears and inserting in lieu thereof "fuel"; 
(D) in subsection (d), by striking out "octcuie" and inserting 
in lieu thereof "automotive fuel"; 
(E) in subsection (e)— 
(i) by striking out "gasoline" each place it appears 
and inserting in lieu thereof "fuel"; and 
(ii) by striking out "gasoline's" and inserting in lieu 
thereof "fuel's"; 
(F) in subsections (f), (g), and (h), by striking out "gasoline" 
each place it appears and inserting in lieu thereof "fuel"; 
(G) in subsection (h), by striMn^ out "octane requirement" 
each place it appears and inserting in lieu thereof "automotive 
fuel requirement"; and 
(H) in the section heading, by striking out "OCTANE" and 
inserting in lieu thereof "AUTOMOTIVE FUEL RATING". 
(3) Section 203 of such Act (15 U.S.C. 2823) is amended— 
(A) by striking out "octane rating" and "octene ratings" 
each place such terms appear and inserting in lieu thereof 
"automotive fuel rating" and "automotive fuel ratings", respec-
tively; 
(B) in subsections (b) and (c), by striking out "gasoline" 
each place it appears and inserting in lieu thereof "fuel"; and 
((J) in subsection (cX3), by striMng out "201(1)" and insert-
ing in lieu thereof "201". 
(d) EFFECTIVE DATE.—(1) The amendments made by this section 15 use 2821 
shall become effective at the end of the one-year period beginning ^°^-
on the date of the enactment of this Act. 
(2) The Federal Trade Commission shall, within 270 days after 
Regulations. 
the date of the enactment of this Act, prescribe rules for the purpose 
l^}^^ ^^^^ 
of implementing the amendments made in this section. 
^° ' 
SEC. 1502. INCREASED AUTHORITY FOR ENFORCEMENT. 
(a) STATE LAW.—Section 204 of the Petroleum Marketing Prac-
tices Act (15 U.S.C. 2824) is amended to read as follows: 
106 STAT. 2998 
PUBLIC LAW 102-486—OCT. 24, 1992 
"RELATIONSHIP OF THIS TITLE TO STATE LAW 
"SEC. 204. (a) To the extent that any provision of this title 
applies to any act or omission, no State or any political subdivision 
thereof may adopt or continue in effect, except as provided in 
subsection (b), any provision of law or regulation with respect 
to such act or omission, unless such provision of such law or 
regulation is the same as the applicable provision of this title. 
"(b) A State or political subdivision thereof may provide for 
any investigative or enforcement action, remedy, or penalty (includ-
ing procedural actions necesseiry to carry out such investigative 
or enforcement actions, remedies, or penalties) with respect to any 
provision of law or regulation permitted by subsection (a).". 
15 use 2823. 
(b) FTC ENFORCEMENT.—Section 203(e) of such Act is amended 
by striking out "; except that" in the second sentence and sdl 
that follows through the period and inserting in lieu thereof a 
period. 
(c) EPA ENFORCEMENT.—Section 203(bXl) of such Act is 
amended— 
(1) in the matter preceding subparagraph (A), by striking 
out "shall"; 
(2) in subparagraph (A), by striking out "conduct" and 
inserting in lieu thereof "may conduct"; 
(3) in subparagraph (B), by striking out "certify" and insert-
ing in Ueu thereof "shall certify"; 
(4) in subparagraph (C), by striking out "notify" and insert-
ing in lieu thereof "shall notify"; and 
(5) in subparagraph (C), by striking out "discovered" and 
all that follows through "testing. 
15 use 2822 
SEC. 1503. STUDIES. 
(a) IN GENERAL.—^For the purpose of making the findings, 
conclusions, and recommendations referred to in subsection (c)— 
(1) the Administrator of the Environmental Protection 
Agency, in consultetion with the Secretary of Energy, shall 
carry out a study to determine whether, and if so, how, the 
anti-knock characteristics of nonUquid fUels usable as a fuel 
for a motor vehicle (as defined in section 201(7) of the Petroleum 
Marketing Practices Act) can be determined; and 
(2) the Federal Trade Commission, in consultation with 
the Administrator of the Environmental Protection Agency, 
shall carry out a study— 
(A) to determine the need for, and the desirability 
of, having a uniform national label on devices used to 
dispense automotive fuel to consumers that would consoli-
date information required by Federal law to be posted 
on such devices; and 
(B) to determine the nature of such label if it is deter-
mined under subparagraph (A) that such a need exists. 
(b) IMPLEMENTATION.-—<1) In carrying out studies under this 
section, each agency shall— 
(A) publish general notice of each of the studies in the 
Federal Kegister; and 
(B) give interested parties an opportunity to participate 
in such studies through submission of written date, views, 
or argumente. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 2999 
(2) In carrying out the study to determine the nature of a 
uniform national label imder subsection (a)(2XB), the Federal Trade 
Commission shall— 
(A) weigh the consumer, environmental, and energy saving 
benefits of any element of such label against the necessity 
for a concise, practical, and cost-efEicient label; and 
(B) consider as a possible element of such label a statement 
suggesting consumers check the vehicle's owner's manual 
regarding octane requirements. 
(c) REPORTS.—^The Administrator of the Environmental Protec-
tion Agency, the Secretary of Energy, and the Chairman of the 
Federal Trade Commission shall transmit to the Congress, within 
one vear after the date of the enactment of this Act, the findings, 
conclusions, and recommendations made as a result of the studies 
carried out by such officers under this section, together with a 
description of the administrative and legislative actions needed 
to implement such recommendations. 
TITLE XVI—GLOBAL CLIMATE CHANGE 
SEC. 1601. REPORT. 
42 USC 13381. 
Not later than 2 years after the date of the enactment of 
this Act, the Secretary shall submit a report to the Congress that 
includes an assessment of— 
(1) the feasibility and economic, energy, social, environ-
mental, and competitive implications, including implications 
for jobs, of stabilizing the generation of greenhouse gases in 
the United States by the year 2005; 
(2) the recommendations made in chapter 9 of the 1991 
National Academy of Sciences report entitled "Policy Implica-
tions of Greenhouse Warming", including an analysis of the 
benefits and costs of each recommendation; 
(3) the extent to which the United States is responding, 
compared with other countries, to the recommendations made 
in chapter 9 of the 1991 National Academy of Sciences report; 
(4) the feasibility of reducing the generation of greenhouse 
gases; 
(5) the feasibility and economic, energy, social, environ-
mental, and competitive implications, including implications 
for jobs, of achieving a 20 percent reduction from 1988 levels 
in the generation of carbon dioxide by the year 2005 as rec-
ominended by the 1988 Toronto Scientific World Conference 
on the Changing Atmosphere; 
(6) the potential economic, energy, social, environmental, 
and competitive implications, including implications for jobs, 
of implementing the policies necessary to enable the United 
States to comply with any obligations under the United Nations 
Framework Convention on Climate Change or subsequent inter-
national agreements. 
SEC. 1602. LEAST-COST ENERGY STRATEGY. 
42 USC 13382. 
(a) STRATEGY.—The first National Energy Policy Plan (in this 
title referred to as the "Plan") under section 801 of the Department 
of Energy Organization Act (42 U.S.C. 7321) prepared and required 
to be submitted by the President to Congress after February 1, 
1993, and each subsequent such Plan, shall include a least-cost 
106 STAT. 3000 
PUBLIC LAW 102-486—OCT. 24, 1992 
energy strategy prepared by the Secretary. In developing the least-
cost energy strategy, the Secretary shall take into consideration 
the economic, energy, social, environmental, and competitive costs 
and benefits, including costs and benefits for jobs, of his choices. 
Such strategy shall also take into account the report required 
under section 1601 and relevant Federal, State, and local require-
ments. Such strategy shall be designed to achieve to the maximum 
extent practicable and at least-cost to the Nation— 
(1) the energy production, utilization, and energy conserva-
tion priorities of subsection (d); 
(2) the stabilization and eventual reduction in the genera-
tion of greenhouse gases; 
(3) an increase in the efficiency of the Nation's total energy 
use by 30 percent over 1988 levels by the year 2010; 
(4) an increase in the percentage of energy derived from 
renewable resources by 75 percent over 1988 levels by the 
year 2005; and 
(5) a reduction in the Nation's oil consumption from the 
1990 level of approximately 40 percent of total energy use 
to 35 percent by the year 2005. 
(b) ADDITIONAL CONTENTS.—^The least-cost energy strategy 
shall also include— 
(1) a comprehensive inventory of available energy and 
energy efficiency resources and their projected costs, taking 
into account all costs of production, transportation, distribution, 
and utilization of such resources, including— 
(A) coal, clean coal technologies, coal seam methane, 
and underground coal gasification; 
(B) energy efficiency, including existing technologies 
for increased efficiency in production, transportation, dis-
tribution, and utilization of energy, and other technologies 
that are anticipated to be available through 
further 
research and development; and 
(C) other energy resources, such as renewable energy, 
solar energy, nuclear fission, fusion, geothermal, biomass, 
fuel cells, hydropower, and natural gas; 
(2) a proposed two-year progremi for ensuring adequate 
supplies of the energy and energy efficiency resources and 
technologies described in paragraph (1), and an identification 
of administrative actions that can be undertaken within exist-
ing Federal authority to ensure their adequate supply; 
(3) estimates of life-cycle costs for existing energy produc-
tion facilities; 
(4) basecase forecasts of short-term and long-term national 
energy needs under low and high case assumptions of economic 
growth; and 
(5) an identification of all applicable Federal authorities 
needed to achieve the purposes of this section, and of any 
inadequacies in those authorities. 
(c) SECRETARIAL CONSIDERATION.—In developing the least-cost 
energy strategy, the Secretary shall give full consideration to— 
(1) the relative costs of each energy and energy efficiency 
resource based upon a comparison of all direct and quantifiable 
net costs for the resource over its available life, including 
the cost of production, transportation, distribution, utilization, 
waste management, environmental compliance, and, in the case 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3001 
of imported energy resources, maintaining access to foreign 
sources of supply; and 
(2) the economic, energy, social, environmental, and 
competitive consequences resulting from the establishment of 
any particular order of Federal priority as determined under 
subsection (d). 
(d) PRIORITIES.—^The least-cost energy strategy shall identify 
Federal priorities, including policies that— 
(1) implement standards for more efficient use of fossil 
fuels; 
(2) increase the energy efficiency of existing technologies; 
(3) encourage technologies, including clean coal tech-
nologies, that generate lower levels of greenhouse gases; 
(4) promote the use of renewable energy resources, includ-
ing solar, geothermal, sustainable biomass, hydropower, and 
wind power; 
(5) afiTect the development and consumption of energy and 
energy efficiency resources and electricity through t£ix policy; 
(6) encourage investment in energy efficient equipment 
and technologies; and 
(7) encourage the development of energy technologies, such 
as advanced nuclear fission and nuclear fusion, that produce 
energy without greenhouse gases as a byproduct, and encourage 
the deplojmient of nuclear electric generating capacity. 
(e) ASSUMPTIONS.—^The Secretary shall incluae in the least-
cost energy strategy an identification of all of the assumptions 
used in developing the strategy and priorities thereunder, and 
the reasons for such assumptions. 
(f) 
PREFERENCE.—^When comparing 
an 
energy 
efficiency 
resource to an energy resource, a higher priority shall be assigned 
to the energy efficiency resource whenever all direct and quantifi-
able net costs for the resoiirce over its available life are equal 
to the estimated cost of the energy resource. 
(g) PUBLIC REVIEW AND COMMENT.—The Secretary shall provide 
for a period of public review and comment of the least-cost energy 
strategy, for a period of at least 30 days, to be completed at 
least 60 days before the issuance of such strategy. The Secretary 
shall also provide for public review and comment before the issuance 
of any update to the least-cost energy strategy required under 
this section. 
SEC. 1603. DIRECTOR OF CLIMATE PROTECTION. 
42 USC 13383. 
Within 6 months aff^er the date of the enactment of this Act, 
the Secretary shall establish, within the Department of Energy, 
a Director of Climate Protection (in this section referred to as 
the "Director"). The Director shall— 
(1) in the absence of the Secretary, serve as the Secretar3r's 
representative for interagency and multilateral policy discus-
sions of global climate change, including the activities of the 
Committee on Earth and Environmental Sciences as established 
by the Global Change Research Act of 1990 (PubUc Law 101-
606) and the Policy Coordinating Committee Working Group 
on Climate Change; 
(2) monitor, in cooperation with other Federal agencies, 
domestic and international policies for their effects on the 
generation of greenhouse gases; and 
106 STAT. 3002 
PUBLIC LAW 102-486—OCT. 24, 1992 
(3) have the authority to participate in the planning activi-
ties of relevant Department ofEner^ programs. 
42 use 13384. 
SEC. 1604. ASSESSMENT OF ALTERNATIVE POUCY MECHANISMS FOR 
ADDRESSING GREENHOUSE GAS EMISSIONS. 
Not later than 18 months after the date of the enactment 
of this Act, the Secretary shall transmit a report to Congress 
containing a comparative assessment of alternative policy mecha-
nisms for reducing the generation of greenhouse gases. Such assess-
ment shall include a short-run and long-run analysis of the social, 
economic, energy, environmental, competitive, and agricultural costs 
and benefits, including costs and benefits for jobs and competition, 
and the practicality of each of the following policy mechanisms: 
(1) Various systems for controlling the generation of green-
house gases, including caps for the generation of greenhouse 
gases from major sources and emissions trading programs. 
(2) Federal standards for energy efficiency for major sources 
of greenhouse gases, including efficiency standards for power 
plants, industrial processes, automobile fuel economy, appli-
ances, and buildings, and for emissions of methane. 
(3) Various Federal and voluntary incentives programs. 
42 use 13385. 
SEC. 1605. NATIONAL INVENTORY AND VOLUNTARY REPORTING OF 
GREENHOUSE GASES. 
(a) NATIONAL INVENTORY.—Not later than one year after the 
date of the enactment of this Act, the Secretary, through the Energy 
Information Administration, shall develop, based on data available 
to, and obtained by, the Energy Information Administration, an 
inventory of the national aggregate emissions of each greenhouse 
gas for each calendar year of the baseline period of 1987 through 
1990. The Administrator of the Energy Information Administration 
shall annually update and analyze such inventory using available 
data. This subsection does not provide any new data collection 
authority. 
(b) VOLUNTARY REPORTING.— 
(1) ISSUANCE OF GUIDELINES.—Not later than 18 months 
after the date of the enactment of this Act, the Secretary 
shall, after opportunity for public comment, issue guidelines 
for the voluntary collection and reporting of information on 
sources of greenhouse gases. Such guidelines shall establish 
procedures for the accurate voluntary reporting of information 
on— 
(A) greenhouse gas emissions— 
(i) for the baseline period of 1987 through 1990; 
and 
(ii) for subsequent calendar years on an annual 
basis; 
(B) annual reductions of greenhouse gas emissions and 
carbon fixation achieved through any measures, including 
fuel switching, forest management practices, tree planting, 
use of renewable energy, manufacture or use of vehicles 
with reduced greenhouse gas emissions, appliance effi-
ciency, energy efficiency, methane recovery, cogeneration, 
chlorofluorocarbon capture and replacement, and power 
plant heat rate improvement; 
(C) reductions in greenhouse gas emissions achieved 
as a result of— 
(i) voluntary reductions; 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3003 
(ii) plant or facility closings; and 
(iii) State or Federal requirements; and 
(D) an aggregate calculation of greenhouse gas emis-
sions by each reporting entity. 
Such guidelines shall also establish procedures for taking into 
account the differential radiative activity and atmospheric life-
times of each greenhouse gas. 
(2) REPORTING PROCEDURES.—The Administrator of the 
Energy Information Administration shall develop forms for vol-
luitary reporting under the guidelines established under para-
graph (1), and shall make such forms available to entities 
wishing to report such information. Persons reporting under 
this subsection shall certify the accuracy of the information 
reported. 
(3) CONFIDENTIALITY.—^Trade secret and commercial or 
financial information that is privileged or confidential shall 
be protected as provided in section 552(b)(4) of title 5, United 
States Code. 
(4) ESTABLISHMENT OF DATA BASE.—Not later than 18 
months after the date of the enactment of this Act, the Sec-
retary, through the Administrator of the Energy Information 
Administration, shall establish a data base comprised of 
information voluntarily reported under this subsection. Such 
information may be used by the reporting entity to demonstrate 
achieved reductions of greenhouse gases. 
(c) CONSULTATION.—In carrying out this section, the Secretary 
shall consult, as appropriate, with the Administrator of the Environ-
mental F*rotection Agency. 
SEC. 1606. REPEAL. 
Title III of the Energy Security Act (42 U.S.C. 7361 et seq.) 
is hereby repealed. 
SEC. 1607. CONFORMING AMENDMENT. 
42 USC 13386. 
The Secretary, through the Trade Promotion Coordinating 
Council, shall develop policies and programs to encourage the export 
and promotion of domestic energy resource technologies, including 
renewable energy, energy efficiency, and clean coal technologies, 
to developing countries. 
SEC. 1608. INNOVATIVE ENVIRONMENTAL TECHNOLOGY TRANSFER 42 USC 13387. 
PROGRAM. 
(a) ESTABLISHMENT OF PROGRAM.—The Secretary, through the 
Agency for International Development, and in consultation with 
the interagency working group established under section 256(d) 
of the Energy Policy and Conservation Act (in this section referred 
to as the "interagency working group", shall establish a technology 
transfer program to carry out the purposes described in subsection 
(b). Within 150 days after the date of the enactment of this Act, 
the Secretary and the Administrator of the Agency for International 
Development shall enter into a written agreement to carry out 
this section. The agreement shall establish a procedure for resolving 
any disputes between the Secretary and the Administrator regard-
ing the implementation of specific projects. With respect to countries 
not assisted by the Agency for International Development, the Sec-
retary may enter into agreements with other appropriate Federal 
agencies. If the Secretary and the Administrator, or the Secretary 
and an agency described in the previous sentence, are unable to 
106 STAT. 3004 
PUBLIC LAW 102-486—OCT. 24, 1992 
reach an agreement, each shall send a memorandum to the Presi-
dent outlining an appropriate agreement. Within 90 days after 
receipt of either memorandtun, the President shall determine which 
version of the agreement shall be in effect. Any agreement entered 
into under this subsection shall be provided to the appropriate 
committees of the Congress and made available to the public. 
(b) PURPOSES OF THE PROGRAM.—The purposes of the tech-
nology transfer program under this section are to— 
(1) reduce the United States balance of trade deficit through 
the export of United States energy technologies and techno-
logical expertise; 
(2) retain and create manufacturing and related service 
jobs in the United States; 
(3) encourage the export of United States technologies, 
including services related thereto, to those countries that have 
a need for developmentally sound facilities to provide energy 
derived from technologies that substantially reduce environ-
mental pollutants, including greenhouse gases; 
(4) develop markets for United States technologies, includ-
ing services related thereto, that substantially reduce environ-
mental pollutants, including greenhouse gases, that meet the 
energy and environmental requirements of foreign countries; 
(5) better ensure that United States participation in energy-
related projects in foreign countries includes participation by 
United States firms as well as utilization of United States 
technologies; 
(6) ensure the introduction of United States firms and 
expertise in foreign countries; 
(7) provide financial assistance by the Federal Government 
to foster greater participation by United States firms in the 
financing, ownership, design, construction, or operation of tech-
nologies or services that substantially reduce environmental 
pollutants, including greenhouse gases; and 
(8) assist United States firms, especially firms that are 
in competition with firms in foreign countries, to obtain 
opportunities to transfer technologies to, or iindertake projects 
in, foreign countries. 
(c) IDENTIFICATION.—Pursuant to the agreements required by 
subsection (a), the Secretary, through the Agency for International 
Development, and after consultation with the interagency working 
group. United States firms, and representatives from foreign coun-
tries, shall develop mechanisms to identify potential energy projects 
in host countries that substantially reduce environmental pollut-
ants, including greenhouse gases, and shall identify a list of such 
projects within 240 days after the date of the enactment of this 
Act, and periodically thereafter. 
(d) FINANCIAL MECHANISMS.—(1) Pursuant to the agreements 
under subsection (a), the Secretary, through the Agency for Inter-
national Development, shall— 
(A) establish appropriate financial mechanisms to increase 
the participation of United States firms in energy projects, 
and services related thereto, that substantially reduce environ-
mental pollutants, including greenhouse gases in foreign coun-
tries; 
(B) utilize available financial assistance authorized by this 
section to coimterbalance assistance provided by foreign govern-
ments to non-United States firms; and 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3005 
(C) provide financial assistance to support projects. 
(2) The financial assistance authorized by this section may 
be— 
(A) provided in combination with other forms of financial 
assistance, including non-Federal funding that may be available 
for the project; and 
(B) utilized in conjunction with financial assistance pro-
grams available through other Federal agencies. 
(3) United States obligations under the Arrangement on Guide-
lines for Officially Supported Export Credits established through 
the Organization for Economic Cooperation and Development shall 
be applicable to this section. 
(e) SOLICITATIONS FOR PROJECT PROPOSALS.—(1) Pursuant to 
the agreements under subsection (a), the Secretary, through the 
Agency for International Development, within one year after the 
date of the enactment of this Act, and subsequently as appropriate 
thereafter, shall solicit proposals from United States firms for the 
design, construction, testing, and operation of the project or projects 
identified under subsection (c) which propose to utilize a United 
States technology or service. Each solicitation under this section 
shall establish a closing date for receipt of proposals. 
(2) The solicitation under this subsection shall, to the extent 
appropriate, be modeled afl«r the RFP No. DE-PS01-90FE62271 
Clean Coal Technology IV, as administered by the Department 
of Energy. 
(3) Any solicitation made under this subsection shall include 
the following requirements: 
(A) The United States firm that submits a proposal in 
response to the solicitation shall have an equity interest in 
the proposed project. 
(B) The project shall utilize a United States technology, 
including services related thereto, that substantially reduce 
environmental pollutants, including greenhouse gases, in meet-
ing the applicable energy and environmental requirements of 
the host country. 
(C) Proposals for projects shall be submitted by and under-
taken with a United States firm, although a joint venture 
or other teaming arrangement with a non-United States manu-
facturer or other non-United States entity is permissible. 
(f) ASSISTANCE TO UNITED STATES FIRMS.—Pursuant to the 
agreements under subsection (a), the Secretary, through the Agency 
for International Development, and in consultation with the inter-
agency working group, shall establish a procedure to provide finan-
cial assistance to United States firms under this section for a 
project identified under subsection (c) where solicitations for the 
project are being conducted by the host country or by a multilateral 
lending institution. 
(g) OTHER PROGRAM REQUIREMENTS.—Pursuant to the agree-
ments under subsection (a), the Secretary, through the Agency 
for International Development, and in consultation with the inter-
agency working group, shall— 
(1) establish eligibility criteria for countries that will host 
projects; 
(2) periodically review the energy needs of such countries 
and export opportunities for United States firms for the develop-
ment of projects in such countries; 
106 STAT. 3006 
PUBLIC LAW 102-486—OCT. 24, 1992 
(3) consult with government officials in host countries and, 
as appropriate, with representatives of utilities or other entities 
in host countries, to determine interest in and support for 
potential projects; and 
(4) determine whether each project selected under this 
section is developmentally sound, as determined under the 
criteria developed by the Development Assistance Committee 
of the Organization for Economic Cooperation and Development. 
(h) ELIGIBLE TECHNOLOGIES.—Not later than 6 months after 
the date of the enactment of this Act, the Secretary shall prepare 
a list of eligible technologies and services under this section. In 
preparing such a list, the Secretary shall consider fuel cell power-
plants, aeroderivitive gas turbines and catalytic combustion tech-
nologies for aeroderivitive gas turbines, ocean thermal energy 
conversion technology, anaerobic digester and storage tanks, and 
other renewable energy and energy efficiency technologies. 
(i) SELECTION OF PROJECTS.—(1) Pursuant to the agreements 
under subsection (a), the Secretary, through the Agency for Inter-
national Development, shall, not later than 120 days after receipt 
of proposals in response to a solicitation under subsection (e), select 
one or more proposals under this section. 
(2) In selecting a proposal under this section, the Secretary, 
through the Agency for International Development, shall consider— 
(A) the ability of the United States firm, in cooperation 
with the host country, to undertake and complete the project; 
(B) the degree to which the equipment to be included 
in the project is designed and manufactured in the United 
States; 
(C) the long-term technical and competitive viability of 
the United States technology, and services related thereto, and 
the ability of the United States firm to compete in the develop-
ment of additional energy projects using such technology in 
the host country and in other foreign countries; 
(D) the extent of technical and financial involvement of 
the host country in the project; 
(E) the extent to which the proposed project meets the 
purposes of this section; 
(F) the extent of technical, financial, management, and 
marketing capabilities of the participants in the project, and 
the commitment of the participants to completion of a successful 
project in a manner that will facilitate acceptance of the United 
States technology or service for future application; and 
(G) such other criteria as may be appropriate. 
(3) In selecting among proposed projects, the Secretary shall 
seek to ensure that, relative to otherwise comparable projects in 
the host country, a selected project will meet the following criteria: 
(A) It will reduce environmental emissions, including green-
house gases, to an extent greater than required by applicable 
provisions of law. 
(B) It will be a more cost-effective technological alternative, 
based on life cycle capital and operating costs per unit of 
energy produced and, where applicable, costs per unit of product 
produced. 
(C) It will increase the overall efficiency of energy use. 
Priority in selection shall be given to those projects which, in 
the judgment of the Secretary, best meet these criteria. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3007 
(j) UNITED STATES-ASIA ENVIRONMENTAL PARTNERSHIP.—Activi-
ties carried out under this section shall be coordinated with the 
United States-Asia Environmental Partnership. 
(k) BUY AMERICA.—In canying out this section, the Secretary, 
through the Agency for International Development, and pursuant 
to the agreements under subsection (a), shall ensure— 
(1) the maximum percentage, but in no case less than 
50 percent, of the cost oi any equipment furnished in connection 
with a project authorized under this section shall be attrib-
utable to the manufactured United States components of such 
equipment; and 
(2) the maximum participation of United States firms. 
In determining whether the cost of United States components equals 
or exceeds 50 percent, the cost of assembly of such United States 
components in the host country shall not be considered a part 
of the cost of such United States component. 
(1) REPORT TO CONGRESS.—The Secretary and the Administrator 
of the Agency for International Development shall report annually 
to the Committee on Energy and Natural Resources of the Senate 
and the appropriate committees of the House of Representatives 
on the progress being made to introduce innovative energy tech-
nologies, and services related thereto, that substantially reduce 
environmental pollutants, including greenhouse gases, into foreign 
countries. 
(m) DEFINITIONS.—^For purposes of this section— 
(1) the term "host country" means a foreign coimtry which 
is— 
(A) the participant in or the site of the proposed innova-
tive energy technology project; and 
(B) either— 
(i) classified as a coimtry eligible to participate 
in development assistence programs of the Agency for 
International Development pursuant to applicable law 
or reflation; or 
(li) a developing country; and 
(2) the term "developing country** includes, but is not lim-
ited to, countries in Central and Eastern Europe or in the 
independent stetes of the former Soviet Union. 
(n) AUTHORIZATION FOR PROGRAM.—There are authorized to 
be appropriated to the Secretary to carry out the program required 
by this section, $100,000,000 for each of the fiscal years 1993, 
1994,1995,1996,1997, and 1998. 
SEC. 1609. GLOBAL CLIMATE CHANGE RESPONSE FUND. 
42 USC 13388. 
(a) ESTABLISHMENT OF THE FUND.—The Secretary of the Treas-
ury, in consultetion with the Secretary of State, shall establish 
a Global Climate Change Response Fund to act as a mechanism 
for United States contributions to assist global efforts in mitigating 
and adapting to global climate change. 
(b) RESTRICTIONS ON DEPOSITS.—NO deposits shall be made 
to the Global Climate Change Response Fund imtil the United 
States has ratified the United Nations Framework Convention on 
Climate Change. 
(c) USE OF THE FUND.—Moneys deposited into the Fund shall 
be used by the President, to the extent authorized and appropriated 
under section 302 of the Foreign Assistance Act of 1961, solely 
for contributions to a financial mechanism negotiated pursuant 
106 STAT. 3008 
PUBLIC LAW 102-486—OCT. 24, 1992 
to the United Nations Framework Convention on Climate Change, 
including all protocols or agreements related thereto. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated for deposit in the Fund to carry out the purposes 
of this section, $50,000,000 for fiscal year 1994 and such sums 
as may be necessary for fiscal years 1995 and 1996. 
TITLE XVII—ADDITIONAL FEDERAL 
POWER ACT PROVISIONS 
SEC. 1701. ADDITIONAL FEDERAL POWER ACT PROVISIONS. 
(a) ANNUAL CHARGES FOR COSTS.—(1) Section 10(e)(1) of the 
16 use 803. 
Federal Power Act is amended by striking the semicolon after 
"Part" and inserting the following: ", including any reasonable and 
necessary costs incurred by Federal and State fish and wildlife 
agencies and other natural and cultural resource agencies in connec-
tion with studies or other reviews carried out by such agencies 
for purposes of administering their responsibilities under this part;". 
(2) Section 10(e)(1) of such Act is further amended by inserting 
after "as conditions may require:" the following proviso: "Provided, 
That, subject to annual appropriations Acts, the portion of such 
annual charges imposed by the Commission under this subsection 
to cover the reasonable and necessanr costs of such agencies shall 
be available to such agencies (in audition to other funds appro-
priated for such purposes) solely for carrying out such studies 
and reviews and shall remain available until expended:". 
16 use 811 note. 
(b) CLARIFICATION OF AUTHORITY REGARDING FiSHWAYS.—The 
definition of the term "fishway" contained in 18 C.F.R. 4.30(b)(9)(iii), 
as in effect on the date of enactment of this Act, is vacated without 
prejudice to any definition or interpretation by rule of the term 
fishway^' by the Federal Energy Regulaton^ Commission for 
purposes of implementing section 18 of the Federal Power Act: 
Provided, That any future definition promulgated by regulatory 
rulemaking shall have no force or effect unless concurred in by 
the Secretary of the Interior and the Secretary of Commerce: Pro-
vided further. That the items which may constitute a "fishway^ 
under section 18 for the safe and timely upstream and downstream 
passage of fish shall be limited to physical structures, facilities, 
or devices necessary to maintain all life stages of such fish, and 
project operations and measures related to such structures, facili-
ties, or devices which are necessary to ensure the effectiveness 
of such structures, facilities, or devices for such fish. 
(c) EXTENSION OF DEADLINES.—(1) Notwithstanding the time 
limitations of section 13 of the Federal Power Act, the Federal 
Energy Regulatory Commission, upon the request of the licensee 
for FERC Project No. 4031 (and after reasonable notice), is author-
ized, in accordance with the good faith, due diligence, and public 
interest requirements of such section 13 and the Commission's 
procedures under such section, to extend the time required for 
commencement of construction of such project for up to a maximum 
of 3 consecutive 2-year periods. This section shall take effect for 
such project upon the expiration of the extension (issued by the 
Commission under such section 13) of the period required for 
commencement of construction of such project. 
(2) Notwithstanding the time limitations of section 13 of the 
Federal Power Act, the Federal Energy Regulatory Commission, 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3009 
upon the request of the licensee for FERC Project No. 6221 (and 
after reasonable notice), is authorized, in accordance with the good 
faith, due diligence, and public interest requirements of such section 
13 and the Commission's procedures under such section, to extend 
the time required for commencement of construction of such project 
until July 29, 1995. 
(3) Notwithstanding the time limitations of section 13 of the 
Federal Power Act, the Federal Energy Regulatory Commission, 
upon the request of the licensee for FERC project numbered 6641 
(and after reasonable notice) is authorized, in accordance with the 
good faith, due diligence, and public interest requirements of section 
13 and the Commission's procedures under such section, to extend 
xintil June 29, 1996, the time required for the licensee to acquire 
the required real property and commence the construction of project 
numbered 6641, and until June 29, 2000, the time required for 
completion of construction of such project. 
(4) Notwithstanding the time limitations of section 13 of the 
Federal Power Act, the Federal Energy Regulatory Commission, 
upon the request of the licensee of FERC project numbered 4656 
(and after reasonable notice) is authorized, in accordance with the 
good faith, due diligence, and public interest requirements of section 
13 and the Commission's procedures under such section, to extend 
until March 26, 1999, the time required for the licensee to acquire 
the required real property and commence the construction of project 
numbered 4656. 
(5) The authorization for issuing extensions under paragraphs 
(1) through (4) shall terminate 3 years after the date of enactment 
of this section. To facilitate requests under such subsections, the 
Commission may consolidate the requests. The Commission shall 
provide at the beginning of each Congress a report on the status 
of all extensions granted by Congress regarding the requirements 
of section 13 of the Federal Power Act, including information about 
any delays by the Commission on the licensee and the reasons 
for such delays. 
(d) EMINENT DOMAIN.—Section 21 of the Federal Power Act 16 use 814. 
is amended by striking the period at the end thereof and adding 
the following: "Provided further, That no licensee may use the 
right of eminent domain under this section to acquire any lands 
or other property that, prior to the date of enactment of the Energy 
Policy Act of 1992, were owned by a State or political subdivision 
thereof and were part of or included within any public park, recre-
ation area or wildlife refuge established under State or local law. 
In the case of lands or other property that are owned by a State 
or political subdivision and are part of or included within a public 
park, recreation area or wildlife refuge established under State 
or local law on or after the date of enactment of such Act, no 
licensee may use the right of eminent domain under this section 
to acquire such lands or property unless there has been a public 
hearing held in the affected community and a finding by the 
Commission, after due consideration of expressed public views and 
the recommendations of the State or political subdivision that owns 
the lands or property, that the license will not interfere or be 
inconsistent with the purposes for which such lands or property 
are owned.". 
106 STAT. 3010 
PUBLIC LAW 102-486—OCT. 24, 1992 
42 use 7122 
note. 
TITLE XVIII—OIL PIPELINE 
REGULATORY REFORM 
SEC. 1801. OIL PIPELINE RATEMAKING METHODOLOGY. 
(a) ESTABLISHMENT.—Not later than 1 year after the date of 
the enactment of this Act, the Federal Ener^sr Regulatory Commis-
sion shall issue a final rule which establishes a simplified and 
generally applicable ratemaking methodology for oil pipelines in 
accordance with section 1(5) of part I of the Interstate Commerce 
Act. 
(b) EFFECTIVE DATE.—The final rule to be issued under sub-
section (a) may not take effect before the 365th day following 
the date of the issuance of the rule. 
SEC. 1802. STREAMLINING OF COMMISSION PROCEDURES. 
(a) RULEMAKING.—Not later than 18 months after the date 
of the enactment of this Act, the Commission shall issue a final 
rule to streamline procedures of the Commission relating to oil 
pipeline rates in order to avoid imnecessary regulatory costs and 
delays. 
(b) SCOPE OF RULEMAKING.—Issues to be considered in 
the 
rulemaking proceeding to be conducted under subsection (a) shall 
include the following: 
(1) Identification of information to be filed with an oil 
pipeline tariff and the availability to the public of any analysis 
of such tariff filing performed by the Commission or its staff. 
(2) Qualification for standing (including definitions of eco-
nomic interest) of parties who protest oil pipeline tariff filings 
or file complaints thereto. 
(3) The level of specificity required for a protest or com-
plaint and guidelines for Commission action on the portion 
of the tariff or rate filing subject to protest or complaint. 
(4) An opportunity for the oil pipeline to file a response 
for the record to an initial protest or complaint. 
(5) Identification of specific circumstances under which 
Commission staff may initiate a protest. 
(c) ADDITIONAL PROCEDURAL CHANGES.—In conducting the rule-
making proceeding to carry out subsection (a), the Commission 
shall identify and transmit to Congress any other procedural 
changes relating to oil pipeline rates which the Commission deter-
mines are necessary to avoid unnecessary regulatory costs and 
delays and for which additional legislative authority may be nec-
essary. 
(d) WITHDRAWAL OF TARIFFS AND COMPLAINTS,— 
(1) WITHDRAWAL OF TARIFFS.—If an oil pipeline tariff which 
is filed under part I of the Interstate Commerce Act and which 
is subject to investigation is withdrawn— 
(A) any proceeding with respect to such tariff shall 
be terminated; 
(B) the previous tariff rate shall be reinstated; and 
(C) any amounts collected under the withdrawn tariff 
rate which are in excess of the previous tariff rate shall 
be refunded. 
(2) WITHDRAWAL OF COMPLAINTS.—If a complaint which 
is filed under section 13 of the Interstate Commerce Act with 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3011 
respect to an oil pipeline tarifT is withdrawn, any proceeding 
witn respect to such complaint shall be terminated. 
(e) ALTERNATIVE DISPUTE RESOLUTION.—^To the maximum 
extent practicable, the Commission shall establish appropriate 
alternative dispute resolution procedures, including required nego-
tiations and voluntary arbitration, early in an oil pipeline rate 
proceeding as a method preferable to adjudication in resolving 
disputes relating to the rate. Any proposed rates derived from 
implementation of such procedures shall be considered by the 
Commission on an expedited basis for approval. 
SEC. 1803. PROTECTION OF CERTAIN EXISTING RATES. 
(a) RATES DEEMED JUST AND REASONABLE.—Except as provided 
in subsection (b)— 
(1) any rate in effect for the 365-day period ending on 
the date of the enactment of this Act shall be deemed to 
be just and reasonable (within the meaning of section 1(5) 
of the Interstate Commerce Act); and 
(2) any rate in effect on the 365th day preceding the date 
of such enactment shall be deemed to be just and reasonable 
(within the meaning of such section 1(5)) regardless of whether 
or not, with respect to such rate, a new rate has been filed 
with the Commission during such 365-day period; 
if the rate in effect, as described in paragraph (1) or (2), has 
not been subject to protest, investigation, or complaint during such 
365-day period. 
(b) CHANGED CIRCUMSTANCES.—NO person may file a complaint 
under section 13 of the Interstate Commerce Act against a rate 
deemed to be just and reasonable under subsection (a) unless— 
(1) evidence is presented to the Commission which estab-
lishes that a substantial change has occurred after the date 
of the enactment of this Act— 
(A) in the economic circumstances of the oil pipeline 
which were a basis for the rate; or 
(B) in the nature of the services provided which were 
a basis for the rate; or 
(2) the person filing the complaint was under a contractual 
prohibition against the filing of a complaint which was in 
effect on the date of enactment of this Act and had been 
in effect prior to January 1, 1991, provided that a complaint 
by a party bound by such prohibition is brought within 30 
days after the expiration of such prohibition. 
If the Commission determines pursuant to a proceeding instituted 
as a result of a complaint under section 13 of the Interstate Com-
merce Act that the rate is not lust and reasonable, the rate shall 
not be deemed to be just and reasonable. Any tariff reduction 
or refunds that may result as an outcome of such a complaint 
shall be prospective from the date of the filing of the complaint. 
(c) LIMITATION REGARDING UNDULY DISCRIMINATORY OR PREF-
ERENTIAL TARIFFS.—^Nothing in this section shall prohibit any 
aggrieved person from filing a complaint under section 13 or section 
15(1) of the Interstate Commerce Act challenging any tariff provision 
as unduly discriminatory or unduly preferential. 
SEC. 1804. DEFINITIONS. 
For the purposes of this title, the following definitions apply: 
(1) COMMISSION.—^The term "Commission" means the Fed-
eral Energy Regulatory Commission and, unless the context 
106 STAT. 3012 
PUBLIC LAW 102-486—OCT. 24, 1992 
reqmres otherwise, includes the Oil Pipeline Board and any 
other office or component of the Commission to which the 
functions and authority vested in the Commission under section 
402(b) of the Department of Energy Organization Act (42 U.S.C. 
7172(b)) are delegated. 
(2) OIL PIPELINE.— 
(A) IN GENERAL.—Except as provided in subparagraph 
(B), the term "oil pipeline" means any common earner 
(within the meaning of the Interstate Commerce Act) which 
transports oil by pipeline subject to the functions and 
authority vested in the Commission under section 402(b) 
of the Department of Energy Organization Act (42 U.S.C. 
7172(b)). 
(B) EXCEPTION.—The term "oil pipeline" does not 
include the Trans-Alaska Pipeline authorized by the Trans-
Alaska Pipeline Authorization Act (43 U.S.C. 1651 et seq.) 
or any pipeline delivering oil directly or indirectly to the 
Trans-Alaska Pipeline. 
(3) OIL.—^The term "oil" has the same meaning as is given 
such term for purposes of the transfer of functions from the 
Interstate Commerce Commission to the Federal Energy Regu-
latory Commission under section 402(b) of the Department 
of Energy Organization Act (42 U.S.C. 7172(b)). 
(4) RATE.—The term "rate" means all charges that an oil 
pipeline requires shippers to pay for transportation services. 
TITLE XIX—REVENUE PROVISIONS 
SEC. 1901. AMENDMENT OF 1986 CODE. 
Except as otherwise expressly provided, whenever in this title 
an amendment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference shall 
be considered to be made to a section or other provision of the 
Internal Revenue Code of 1986. 
Subtitle A—Energy Conservation and 
Production Incentives 
SEC. 1911. TREATMENT OF EMPLOYER-PROVIDED TRANSPORTATION 
BENEFITS. 
(a) EXCLUSION.—Subsection (a) of section 132 (relating to exclu-
sion of certain fringe benefits) is amended by striking "or" at the 
end of paragraph (3), by striking the period at the end of paragraph 
(4) and inserting ", or", and by adding at the end thereof the 
following new paragraph: 
"(5) qualified transportation fringe." 
(b) QUALIFIED TRANSPORTATION FRINGE.—Section 132 is amend-
ed by redesignating subsections (f), (g), (h), (i), (j), and (k) as 
subsections (g), (h), (i), (j), (k), and (1), respectively, and by inserting 
after subsection (e) the following new subsection: 
"(f) QUALIFIED TRANSPORTATION FRINGE.— 
"(1) IN GENERAL.—For purposes of this section, the term 
'qualified transportation fringe' means any of the following 
provided by an employer to an employee: 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3013 
"(A) Transportation in a commuter highway vehicle 
if such transportation is in connection with travel between 
Uie employee s residence eind place of employment. 
"(B) Ally transit pass. 
"(C) Qualified parking. 
"(2) LIMITATION ON EXCLUSION.—^The amount of the firinge 
benefits which are provided by an employer to any employee 
and which may be excluded 
fi:t)m 
gross income under subsection 
(aX5) shall not exceed— 
"(A) $60 per month in the case of the aggregate of 
the benefits described in subparagraphs (A) and (B) of 
paragraph (1), and 
''(B) $155 per month in the case of qualified parking. 
"(3) CASH REIMBURSEMENTS.—For purposes of this sub-
section, the term 'quaUfied transportation fringe' includes a 
cash reimbursement by an employer to an employee for a 
benefit described in paragraph (1). The preceding sentence shall 
apply to a cash reimbursement for any transit pass only if 
a voucher or similar item which may be exchanged only for 
a transit pass is not readily available for direct distribution 
by the employer to the employee. 
"(4) BENEFIT NOT IN LIEU OF COMPENSATION.—Subsection 
(aX5) shall not apply to any qualified transportation fringe 
unless such benefit is provided in addition to (and not in 
lieu oD any compensation otherwise payable to the employee. 
"(5) DEFINITIONS.—^For piirposes of this subsection— 
"(A) TRANSIT PASS.—^The term 'transit pass* means any 
pass, token, farecard, voucher, or similar item entitling 
a person to transportation (or transportation at a reduced 
price) if such transportation is— 
''(i) on mass transit facilities (whether or not pub-
licly owned), or 
''(ii) provided by any person in the business of 
transporting persons for compensation or hire if such 
transportation is provided in a vehicle meeting the 
requirements of subparagraph (BXD-
"(B) COMMUTER HIGHWAY VEHICLE.—The term 'com-
muter highway vehicle' means any highway vehicle— 
(i) the seating capacity of which is at least 6 
adults (not including the driver), and 
"(ii) at least 80 percent of the mileage use of which 
can reasonably be expected to be— 
"(I) for purposes of transporting employees in 
connection with travel between their residences 
and their place of employment, and 
"(II) on trips during which the number of 
employees transported for such purposes is at least 
V2 of the adult seating capacity of such vehicle 
(not including the driver). 
"(C) QUALIFIED PARKING.—The term 'qualified parking* 
means parking provided to an employee on or near the 
business premises of the employer or on or near a location 
firom which the employee commutes to work by transpor-
tation described in subparagraph (A), in a commuter high-
way vehicle, or by carpool. Such term shall not include 
any parking on or near property used by the employee 
for residential purposes. 
106 STAT. 3014 
PUBLIC LAW 102-486—OCT. 24, 1992 
"(D) TRANSPORTATION PROVIDED BY EMPLOYER.— 
Transportation referred to in paragraph (IXA) shall be 
considered to be provided by an employer if such transpor-
tation is furnished in a commuter highway vehicle operated 
by or for the employer. 
"(E) EMPLOYEE.—^For purposes of this subsection, the 
term 'employee' does not include an individual who is an 
employee within the meaning of section 40l(cXl). 
"(6) INFLATION ADJUSTMENT.—In the case of any taxable 
year beginning in a calendar vear after 1993, the dollar 
amounts contained in paragraph (2) (A) and (B) shall be 
increased by an amoimt equal to— 
"(A) such dollar amount, multiplied by 
"(B) the cost-of-living a4}ustment determined under 
section l(fX3) for the calendar year in which the taxable 
year begins, determined by substituting 'calendar year 
1992' for 'calendar year 1989' in subparagraph (B) thereof. 
If any increase determined under the preceding sentence is 
not a multiple of $5, such increase shall be rounded to the 
next lowest multiple of $5. 
"(7) COORDINATION WITH OTHER PROVISIONS.—For purposes 
of this section, the terms 'working condition fringe' and 'de 
minimis fringe' shall not include any qualified transportation 
fringe (determined without regard to paragraph (2))." 
(c) CONFORMING AMENDMENT.—Subsection (i) of section 132 
(as redesignated by subsection (b)) is amended by striking para-
graph (4) and redesignating the following pcuragraphs accordingly. 
26 use 132 note. 
(d) E
F
F
E
C
T
I
V
E DATE.—The amendments made by this section 
shall apply to benefits provided after December 31,1992. 
SEC. 1912. EXCLUSION OF ENERGY CONSERVATION SUBSIDIES PRO-
VIDED BY PUBUC UTILITIES. 
(a) GENERAL RULE.—Part III of subchapter B of chapter 1 
(relating to amounts specifically excluded from gross income) is 
amended by redesignating section 136 as section 137 and by insert-
ing after section 135 the following new section: 
•^EC. 136. ENERGY CONSERVATION SUBSIDIES PROVIDED BY PUBUC 
UTILmES. 
"(a) EXCLUSION.— 
"(1) IN GENERAL.—Gross income shall not include the value 
of any subsidy provided (directly or indirectly) by a pubUc 
utility to a customer for the purchase or installation of any 
energy conservation measure. 
"(2) LIMITATION ON EXCLUSION FOR NONRESIDENTIAL PROP-
ERTY.— 
"(A) IN GENERAL.—^In the case of any subsidy provided 
with respect to any energy conservation measure referred 
to in subsection (cXlXB), onlv the applicable percentage 
of such subsidy shall be excluded from gross income under 
paragraph (1). 
^B) 
APPUCABLE 
PERCENTAGE.—For purposes of 
subparagraph (A), the term'applicable percentage means— 
"(i) 40 percent in the case of subsidies provided 
during 1995, 
"(ii) 50 percent in the case of subsidies provided 
during 1996, and 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3015 
"(iii) 65 percent in the case of subsidies provided 
after 1996. 
"(b) DENIAL OF DOUBLE BENEFIT.—Notwithstanding any other 
provision of this subtitle, no deduction or credit shall be allowed 
for, or by reason of, any expenditure to the extent of the amount 
excluded under subsection (a) for any subsidy which was provided 
with respect to such expenditure. The adjusted basis of any property 
shall be reduced by the amount excluded under subsection (a) 
which was provided with respect to such property. 
"(c) ENERGY CONSERVATION MEASURE.— 
"(1) IN GENERAL.—For purposes of this section, the term 
'energy conservation measure' means any installation or modi-
fication primarily designed to reduce consumption of electricity 
or natural gas or to improve the management of energy 
demand— 
"(A) with respect to a dwelling unit, and 
"(B) on or after January 1, 1995, with respect to prop-
erty other than dwelling units. 
The purchase and installation of specially defined energy prop-
erty shall be treated as an energy conservation measure 
described in subparagraph (B). 
"(2) OTHER DEFINITIONS AND SPECIAL RULES.—For purposes 
of this subsection— 
"(A) SPECIALLY DEFINED ENERGY PROPERTY.—^The term 
'specially defined energy property* means— 
"(i) a recuperator, 
"(ii) a heat wheel, 
"(iii) a regenerator, 
"(iv) a heat exchanger, 
"(v) a waste heat boiler, 
"(vi) a heat pipe, 
"(vii) an automatic energy control system, 
"(viii) a turbulator, 
"(ix) a preheater, 
"(x) a combustible gas recovery system, 
"(xi) an economizer, 
"(xii) modifications to alumina electrolytic cells, 
"(xiii) modifications to chlor-alkali electrolytic cells, 
or 
"(xiv) any other property of a kind specified by 
the Secretary by regulations, 
the principal purpose of which is reducing the amoimt 
of energy consumed in any existing industrial or 
commercial process and which is installed in connection 
with an existing industrial or commercial facility. 
"(B) DWELLING UNIT.—The term 'dwelling unit' has 
the meaning given such term by section 280A(fXl). 
"(C) PUBLIC UTILITY.—The term 'public utility' means 
a person engaged in the sale of electricity or natural gas 
to residential, commercial, or industrial customers for use 
by such customers. For purposes of the preceding sentence, 
the term 'person' includes the Federal Grovemment, a State 
or local government or any political subdivision thereof, 
or any instrumentality of any of the foregoing. 
"(d) EXCEPTION.—^This section shall not apply to any payment 
to or from a qualified cogeneration facility or qualifying small 
106 STAT. 3016 
PUBLIC LAW 102-486—OCT. 24, 1992 
power production facility pursuant to section 210 of the Public 
Utility Regulatory Policy Act of 1978." 
(b) CLERICAL AMENDMENT.—The table of sections for part III 
of subchapter B of chapter 1 is amended by striking tne item 
relating to section 136 and inserting: 
"Sec. 136. Energy conservation subsidies provided by public utilities. 
"Sec. 137. Cross reference to other Acts." 
26USCl36note. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to amounts received after December 31,1992. 
SEC. 1913. TREATMENT OF CLEAN-FUEL VEHICLES. 
(a) 
DEDUCTION FOR CLEAN-FUEL VEHICLES AND CERTAIN 
REFUELING PROPERTY.— 
(1) IN GENERAL.—Part VI of subchapter B of chapter 1 
(relating to itemized deductions for individuals and corpora-
tions) is amended by adding after section 179 the following 
new section: 
<«EC. 179A. DEDUCTION FOR CLEAN-FUEL VEHICLES AND CERTAIN 
REFUELING PROPERTY. 
"(a) ALLOWANCE OF DEDUCTION.— 
"(1) IN GENERAL.—^There shall be allowed as a deduction 
an amount equal to the cost of— 
"(A) any qualified clean-fuel vehicle property, and 
"(B) any qualified clean-fuel vehicle refueling property. 
The deduction under the preceding sentence with respect to 
any property shall be allowed for the taxable year in which 
such property is placed in service. 
"(2) 
INCREMENTAL COST FOR CERTAIN VEHICLES.—If 
a 
vehicle may be propelled by both a clean-burning fuel and 
any other fuel, onl}r the incremental cost of permitting the 
use of the clean-burning fuel shall be taken into account. 
**(b) LIMITATIONS.— 
"(1) QUALIFIED CLEAN-FUEL VEHICLE PROPERTY.— 
"(A) IN GENERAL.—^The cost which may be taken into 
account under subsection (a)(1)(A) with respect to any 
motor vehicle shall not exceed— 
"(i) in the case of a motor vehicle not described 
in clause (ii) or (iii), $2,000, 
"(ii) in the case of any truck or van with a gross 
vehicle weight rating greater than 10,000 pounds but 
not greater than 26,000 pounds, $5,000, or 
"(iii) $50,000 in the case of— 
"(I) a truck or van with a gross vehicle weight 
rating greater than 26,000 pounds, or 
"(II) any bus which nas a seating capacity 
' 
* 
of at least 20 adults (not including the driver). 
"(B) PHASEOUT.—In the case of any qualified clean-
fuel vehicle property placed in service after December 31, 
2001, the limit otherwise applicable under subparagraph 
(A) shall be reduced by— 
"(i) 25 percent in the case of property placed in 
service in calendar year 2002, 
» 
"(ii) 50 percent in the case of property placed in 
service in calendar year 2003, and 
"(iii) 75 percent in the case of property placed 
in service in calendar year 2004. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3017 
"(2) 
QUALIFIED CLEAN-FUEL VEHICLE REFUELING PROP-
ERTY.— 
"(A) IN GENERAL.—^The aggregate cost which may be 
taken into account under subsection (a)(1)(B) with respect 
to qualified clean-fuel vehicle refueling property placed in 
service during the taxable year at a location shall not 
exceed the excess (if any) of— 
"(i) $100,000, over 
"(ii) the aggregate amount taken into account 
under subsection (a)(1)(B) by the taxpayer (or any 
related person or predecessor) with respect to property 
placed in service at such location for all preceding 
taxable years. 
"(B) RELATED PERSON.—^For purposes of this paragraph, 
a person shall be treated as related to another person 
if such person bears a relationship to such other person 
described in section 267(b) or 707(b)(1). 
"(C) ELECTION.—If the limitation under subparagraph 
(A) applies for any taxable year, the taxpayer shall, on 
the return of tax for such taxable year, specify the items 
of property (and the portion of costs of such property) 
which are to be taken into account under subsection 
(a)(1)(B). 
"(c) QUALIFIED CLEAN-FUEL VEHICLE PROPERTY DEFINED.—For 
purposes of this section— 
"(1) IN GENERAL.—The term 'qualified clean-fuel vehicle 
property means property which is acquired for use by the 
taxpayer and not for resale, the original use of which com-
mences with the taxpayer, with respect to which the environ-
mental standards of paragraph (2) are met, and which is 
described in either of the following subparagraphs: 
"(A) RETROFIT PARTS AND COMPONENTS.—Any property 
installed on a motor vehicle which is propelled by a fuel 
which is not a clean-burning fuel for purposes of permitting 
such vehicle to be propelled by a clean-burning fuel— 
"(i) if the property is an engine (or modification 
thereof) which may use a clean-burning fuel, or 
"(ii) to the extent the property is used in the stor-
age or delivery to the engine of such fuel, or the 
exhaust of gases from combustion of such fuel. 
"(B) 
ORIGINAL 
EQUIPMENT 
MANUFACTURER'S 
VEHICLES.—^A motor vehicle produced by an original equip-
ment manufacturer and designed so that the vehicle may 
be propelled by a clean-burning fuel, but only to the extent 
of the portion of the basis of such vehicle which is attrib-
utable to an engine which may use such fuel, to the storage 
or delivery to the engine of such fuel, or to the exhaust 
of gases from combustion of such fuel. 
"(2) ENVIRONMENTAL STANDARDS.—Property shall not be 
treated as qualified clean-fuel vehicle property unless— 
"(A) the motor vehicle of which it is a part meets 
any applicable Federal or State emissions standards with 
respect to each fuel by which such vehicle is designed 
to be propelled, or 
"(B) in the case of property described in paragraph 
(1)(A), such property meets applicable Federal and State 
106 STAT. 3018 
PUBLIC LAW 102-486—OCT. 24, 1992 
emissions-related 
certification, 
testing, 
and 
warranty 
requirements. 
"(3) EXCEPTION FOR QUALIFIED ELECTRIC VEHICLES.—^The 
term 'qualified clean-fiiel vehicle property* does not include 
any qualified electric vehicle (as defined in section 30(c)). 
"(d) 
QUALIFIED CLEAN-FUEL VEHICLE REFUELING PROPERTY 
DEFINED.—For purposes of this section, the term 'qualified clean-
fiiel vehicle refiieling property* means any property (not including 
a building and its structural components) if— 
"(1) such property is of a character subject to the allowance 
for depreciation, 
"(2) the original use of such property begins with the tax-
payer, and 
"(3) such property is— 
"(A) for the storage or dispensing of a clean-burning 
fuel into the fuel tank of a motor vehicle propelled by 
such fiiel, but only if the storage or dispensing of the 
fiiel is at the point where such fuel is delivered into the 
fuel tank of the motor vehicle, or 
"(B) for the recharging of motor vehicles propelled by 
electricity, but only if the property is located at the point 
where the motor vehicles are recharged. 
"(e) 
OTHER DEFINITIONS AND SPECIAL RULES.—For purposes 
of this section— 
"(1) CLEAN-BURNING FUEL.—The term 'clean-burning fuel' 
means— 
"(A) natural gas, 
"(B) liquefied natural gas, 
"(C) liquefied petroleum gas, 
"(D) hydrogen, 
"(E) electricity, and 
"(F) any other fuel at least 85 jpercent of which is 
1 or more of the following: methanol, ethanol, any other 
alcohol, or ether. 
"(2) MOTOR VEHICLE.—^The term 'motor vehicle' means any 
vehicle which is manufactured primarily for use on public 
streets, roads, and highways (not including a vehicle operated 
exclusively on a rail or rails) and which has at least 4 wheels. 
"(3) COST OF RETROFIT PARTS INCLUDES COST OF INSTALLA-
TION.—^The cost of any qualified clean-fuel vehicle property 
referred to in subsection (c)(1)(A) shall include the cost of 
the original installation of such property. 
Regulations. 
"(4) RECAPTURE.—The Secretary shall, by regulations, pro-
vide for recapturing the benefit of any deduction allowable 
under subsection (a) with respect to any property which ceases 
to be property eligible for such deduction. 
"(5) 
PROPERTY USED OUTSIDE UNITED STATES, ETC, NOT 
QUALIFIED.—No deduction shall be allowed under subsection 
(a) with respect to any property referred to in section 50(b) 
or with respect to the portion of the cost of any property 
taken into account under section 179. 
"(6) BASIS REDUCTION.— 
"(A) IN GENERAL.—For purposes of this title, the basis 
of any property shall be reduced by the portion of the 
cost of such property taken into account under subsection 
(a). 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3019 
"(B) ORDINARY INCOME RECAPTURE.—For purposes of 
section 1245, the amount of the deduction allowable under 
subsection (a) with respect to any property which is of 
a character subject to the allowance for depreciation shall 
be treated as a deduction allowed for depreciation under 
section 167. 
"(g) TERMINATION.—^This section shall not apply to any property 
placed in service after December 31,2004." 
(2) DEDUCTION FROM GROSS INCOME.—Section 62(a) 
is 
amended by inserting after paragraph (13) the following new 
paragraph: 
'\14) DEDUCTION FOR CLEAN-FUEL VEHICLES AND CERTAIN 
REFUELING PROPERTY.—^The deduction allowed by section ITQA" 
(3) CONFORMING AMENDMENTS.— 
(A) Section 1016(a) is amended by striking "and" at 
the end of paragraph (23), by striking the period at the 
end of paragraph (24) and inserting ", and", and by adding 
at the end thereof the foUoMdng new paragraph: 
•*(25) to the extent provided in section 179A(eX6XA)." 
(B) The table of sections for part VI of subchapter 
B of chapter 1 is amended by inserting after the item 
relating to section 179 the following new item: 
"Sec. 179A. Deduction for clean-fuel vehicles and certain refueling prop-
erty." 
(b) CREDIT FOR QUAUFIED ELECTRIC VEHICLES.— 
(1) IN GENERAL.—Subpart B of part IV of subchapter A 
of chapter 1 is amended by insertmg after section 29 the 
following new section: 
'9EC. SO. CREDIT FOR QUALIFIED ELECTRIC VEHICLES. 
"(a) ALLOWANCE OF CREDIT.—There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an 
amount equal to 10 percent of the cost of any Qualified electric 
vehicle placed in service by the taxpayer during tne taxable year. 
*
*
(
b
) LIMITATIONS.— 
"(1) LIMITATION PER VEHICLE.—The amount of the credit 
allowed under subsection (a) for any vehicle shall not exceed 
$4,000. 
"(2) PHASEOUT.—In the case of any qualified electric vehicle 
placed in service after December 31, 2001, the credit otherwise 
allowable under subsection (a) (determined after the application 
of paragraph (1)) shall be reduced by— 
"(A) 25 percent in the case of property placed in service 
in calendar year 2002, 
"(B) 50 percent in the case of property placed in service 
in calendar year 2003, and 
"(C) 75 percent in the case of property placed in service 
in calendar year 2004. 
"(3) APPUCATION WITH OTHER CREDITS.—The credit allowed 
by subsection (a) for any taxable year shall not exceed the 
excess (if any) of— 
"(A) the regular tax for the taxable year reduced by 
the sum of the credits allowable under subpart A and 
sections 27, 28, and 29, over— 
"(B) the tentetive minimum tax for the taxable year, 
"(c) QUALIFIED ELECTRIC VEHICLE.—^For purposes of this 
section— 
106 STAT. 3020 
PUBLIC LAW 102-486—OCT. 24, 1992 
**(1) IN GENERAL.—^The term 'qualified electric vehicle' 
means any motor vehicle— 
"(A) which is powered primarily by an electric motor 
drawing current from rechargeable batteries, fuel cells, 
or other portable sources of electrical current, 
"(B) the original use of which commences with the 
taxpayer, and 
"(C) which is acquired for use by the taxpayer and 
not for resale. 
"(2) MOTOR VEHICLE.—For purposes of paragraph (1), the 
term 'motor vehicle' means any vehicle which is manufactured 
primarily for use on public streets, roads, and highways (not 
including a vehicle operated exclusively on a rail or rails) 
and which has at least 4 wheels. 
"(d) SPECIAL RULES.— 
"(1) BASIS REDUCTION.—^The basis of any property for which 
a credit is allowable under subsection (a) shall be reduced 
by the amount of such credit. 
Regulations. 
"(2) RECAPTURE.—The Secretary shall, by regulations, pro-
vide for recapturing the benefit of any credit allowable under 
subsection (a) with respect to any property which ceases to 
be property eligible for such credit. 
"(3) PROPERTY USED OUTSIDE UNITED STATES, ETC., NOT 
QUALIFIED.—No credit shall be allowed under subsection (a) 
with respect to any property referred to in section 50(b) or 
with respect to the portion of the cost of any property taJcen 
into account imder section 179. 
"(e) TERMINATION.—^This section shall not apply to any property 
placed in service afler December 31, 2004." 
(2) CONFORMING AMENDMENTS.— 
(A) The table of sections for subpart B of part IV 
of subchapter A of chapter 1 is amended by adding after 
the item relating to section 29 the following new item: 
"Sec. 30. Credit for qualified electric vehicles." 
(B) Section 1016(a), as amended by subsection (aX3), 
is amended by striking "and" at the end of paragraph 
(24), by striking the period at the end of paragraph (25) 
and inserting ", and", and by adding at the end thereof 
the following new paragraph: 
"(26) to the extent provided in section 30(dXl).'* 
(C) Section 53(dXlXB)(iii) is amended— 
(i) by striking "section 29(bX5XB) or" and inserting 
"section 29(bX6XB),", and 
(ii) by inserting ", or not allowed under section 
30 solely by reason of the application of section 
30(bX3XB)" before the period. 
(D) Section 55(cX2) is amended by striking "29(bX5)," 
and inserting "29(bX6), 30(b)(3),". 
(c) EFFECTIVE DATE.—^The amendments made by this section 
shall apply to property placed in service afler Jime 30, 1993. 
SEC. 1914. CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN 
RENEWABLE SOURCES. 
(a) IN GENERAL.—Subpart D of part IV of subchapter A of 
chapter 1 is amended by adding at the end thereof the following 
new section: 
26 use 30 note. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3021 
*«EC. 48. ELECTRICITY PRODUCED FROM CERTAIN RENEWABLE 
RESOURCES. 
"(a) GENERAL RULE.—^For purposes of section 38, the renewable 
electricity production credit tor any taxable year is an amount 
equal to the product of— 
"(1) 1.5 cents, miiltiplied by 
"(2) the kilowatt hours of electricity— 
"(A) produced by the taxpayer— 
(i) from qualified energy resources, and 
"(ii) at a qualified facility diuing the 10-year period 
beginning on the date the facility was originally placed 
in service, and 
"(B) sold by the taxpayer to an unrelated person during 
the taxable year. 
"(b) LIMITATIONS AND ADJUSTMENTS.— 
"(1) PHASEOUT OF CREDIT.—The amoimt of the credit deter-
mined under subsection (a) shall be reduced by an amount 
which bears the same ratio to the amoimt of the credit (deter-
mined without regard to this paragraph) as— 
"(A) the amount bv which the reference price for the 
calendar year in whicn the sale occurs exceeds 8 cents, 
bears to 
"(B) 3 cents. 
"(2) CREDIT AND PHASEOUT ADJUSTMENT BASED ON INFLA-
TION.—^The 1.5 cent amount in subsection (a) and the 8 cent 
amount in paragraph (1) shall each be adjusted by multiplying 
such amount by the inflation aciyustment mctor for the calendar 
year in which tlie sale occurs. If any amount as increased 
under the preceding sentence is not a multiple of 0.1 cent, 
such amount shall be rounded to the nearest multiple of 0.1 
cent. 
"(3) CREDIT REDUCED FOR GRANTS, TAX-EXEMPT BONDS, SUB-
SIDIZED ENERGY FINANCING, AND OTHER CREDITS.—The amount 
of the credit determined under subsection (a) with respect to 
any project for any taxable year (determined after the applica-
tion of paragraphs (1) and (2)) shall be reduced by the amount 
which IS the product of the amoimt so determined for such 
year and a fraction— 
"(A) the numerator of which is the sum, for the taxable 
year and all prior taxable years, of— 
"(i) ^ants provided by the United States, a State, 
or a political subdivision of a State for use in connection 
with the project, 
"(ii) proceeds of an issue of State or local govern-
ment obligations used to provide financing for the 
project the interest on which is exempt from tax under 
section 103, 
"(iii) the aggregate amount of subsidized energy 
financing provided (directly or indirectlv) under a Fed-
eral, State, or local program provided in connection 
with the project, and 
"(iv) the amount of any other credit allowable with 
respect to any property which is part of the project, 
and 
"(B) the denominator of which is the aggregate amount 
of additions to the capital accoimt for the project for the 
taxable year and all prior taxable years. 
106 STAT. 3022 
PUBLIC LAW 102-486—OCT. 24, 1992 
Federal 
Register, 
publication. 
The amounts under the preceding sentence for any taxable 
year shall be determined as of the close of the taxable year. 
(c) DEFINITIONS.—^For purposes of this section— 
"(1) QUAUFIED E
N
E
R
G
Y RESOURCES.—The term 'qualified 
energy resources' mecuis— 
"(A) wind, and 
"(B) closed-loop biomass. 
"(2) CLOSED-LOOP BIOMASS.—The term 'closed-loop biomass' 
means any organic material from a plant which is planted 
exclusively for purposes of being used at a qualified facility 
to produce electricity. 
"(3) QUALIFIED FACILITY.—The term 'qualified facility' 
means any facility owned by the taxpayer which is originally 
placed in service after December 31, 1993 (December 31, 1992, 
in the case of a facility using closed-loop biomass to produce 
electricity), and before July 1,1999. 
"(d) DEFINITIONS AND SPECLVL RULES.—For purposes of this 
section— 
"(1) ONLY PRODUCTION IN THE UNITED STATES TAKEN INTO 
ACCOUNT.—Sales shall be taken into accoimt under this section 
only with respect to electricity the production of which is 
vdthin— 
"(A) the United States (vdthin the meaning of section 
638(1)), or 
"(B) a possession of the United States (within the 
meaning of section 638(2)). 
"(2) COMPUTATION OF INFLATION ADJUSTMENT FACTOR AND 
REFERENCE PRICE.— 
"(A) IN GENERAL.—The Secretary shall, not later than 
April 1 of each calendar year, determine and publish in 
the Federal Register the inflation adjustment factor and 
the reference price for such calendar year in accordance 
with this para^aph. 
"(B) INFLATION ADJUSTMENT FACTOR.—The term 'infla-
tion ac^ustment factor' means, with respect to a calendar 
year, a 
fraction 
the numerator of which is the GDP implicit 
price deflator for the preceding calendar year ana the 
denominator of which is the GDP implicit price deflator 
for the calendar year 1992. The term GDP implicit price 
deflator* means the most recent revision of the implicit 
price deflator for the gross domestic product as computed 
and published by the Department of Commerce before 
March 15 of the calendar year. 
"(C) REFERENCE PRICE.—^The term 'reference price' 
means, with respect to a calendar year, the Secretary's 
determination of the annual average contract price per 
kilowatt hour of electricity generated from the same quali-
fied energy resource and sold in the previous year in the 
United States. For purposes of the preceding sentence, 
only contracts entered into after December 31, 1989, shall 
be taken into account. 
"(3) PRODUCTION ATTRIBUTABLE TO THE TAXPAYER.—In the 
case of a facility in which more than 1 person has an ownership 
interest, except to the extent provided in regulations prescribed 
by the Secretary, production from the facility shall be allocated 
among such persons in proportion to their respective ovmership 
interests in tne gross sales 
from 
such facility. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3023 
"(4) RELATED PERSONS.—Persons shall be treated as related 
to each other if such persons would be treated as a single 
employer under the regulations prescribed imder section 52Cb). 
In the case of a corporation which is a member of an afiiliated 
group of corporations filing a consolidated return, such corpora-
tion shall be treated as seUing electricity to an unrelated person 
if such electricity is sold to such a person by another member 
of such group. 
"(5) PASS-THRU IN THE CASE OF ESTATES AND TRUSTS.— 
Under regulations prescribed by the Secretary, rules similar 
to the rules of subsection (d) of section 52 shall apply." 
(b) CREDIT TO BE PART OF GENERAL BUSINESS CREDIT.—Sub-
section (b) of section 38 is amended by striking "plus" at the 
end of paragraph (6), by striking the period at the end of paragraph 
(7) ana inserting ", plus", and by adding at the end thereof the 
following new paragraph: 
"(8) the renewable electricity production credit imder sec-
tion 45(a)." 
(c) LIMITATION ON CARRYBACK.—Subsection (d) of section 39 
is amended by redesignating the paragraph added by section 
11511(bX2) of the Revenue Reconciliation Act of 1990 as paragraph 
(1), by redesignating the paragraph added by section 11611(bX2) 
of such Act as paragraph (2), and by adding at the end thereof 
the following new paragraph: 
"(3) No C
A
R
R
Y
B
A
C
K OF RENEWABLE ELECTRICITY PRODUC-
TION CREDIT BEFORE EFFECTIVE DATE.—^No portion of the unused 
business credit for any taxable year which is attributable to 
the credit determined under section 45 (relating to electricity 
E
reduced from certain renewable resources) may be carried 
ack to any taxable year ending before January 1, 1993 (before 
January 1, 1994, to the extent such credit is attributable to 
wind as a qualified energy resource)." 
(d) CLERICAL AMENDMENT.—The table of sections for subpart 
D of part IV of subchapter A of chapter 1 is amended by adding 
at the end thereof the following new item: 
"Sec. 45. Electricity produced 
from 
certain renewable resources." 
(e) EFFECTIVE DATE.—^The amendments made by this section 26 use 38 note. 
shall apply to taxable years ending after December 31,1992. 
SEC. 1915. REPEAL OF MINIMUM TAX PREFERENCES FOR DEPLETION 
AND INTANGIBLE DRILLING COSTS OF INDEPENDENT OIL 
AND GAS PRODUCERS AND ROYALTY OWNERS. 
(a) DEPLETION.— 
(1) Paragraph (1) of section 57(a) (relating to depletion) 
is amended W adding at the end thereof the following new 
sentence: "Efirective with respect to taxable years beginning 
after December 31, 1992, this paragraph shall not apply to 
any deduction for depletion computed in accordance with section 
613A(c).". 
(2) Subparagraph (F) of section 56(gX4) is amended to 
read as follows: 
"(F) DEPLETION.— 
"(i) IN GENERAL.—^The allowance for depletion with 
respect to any property placed in service in a taxable 
year beginning after December 31, 1989, shall be cost 
depletion determined under section 611. 
106 STAT. 3024 
PUBLIC LAW 102-486—OCT. 24, 1992 
"(ii) ExcEPnoN FOR INDEPENDENT OIL AND GAS 
PRODUCERS ASD R
O
Y
A
L
T
Y OWNERS.—In the case of any 
taxable year beginning after December 31,1992, clause 
(i) (and subparagraj^n (CXi)) shall not apply to anv 
deduction for depletion computed in accoroance with 
section 613A(c).'' 
(b) INTANGIBLE DRILLING COSTS.— 
(1) Section 57(aX2) is amended by adding at the end the 
following new subparagraph: 
"(E) EXCEPnON F
O
R INDEPENDENT PRODUCERS.—In the 
case of any oil or gas well— 
"(i) IN GENERAL.—^In the case of anv taxable year 
beginning after December 31, 1992, mis paragraph 
shall not apply to any ta»;>ayer which is not an 
integrated oil company (as denned in section 291(bX4)). 
^(ii) LIMITATION ON BENEFIT.—The reduction in 
alternative minimum taxable income by reason of 
clause (i) for any taxable year shall not exceed 40 
percent (30 percent in case of taxable years beginning 
m 1993) of the alternative minimum taxable income 
for such year determined without regard to clause (i) 
and the alternative tax net operating loss deduction 
under section 56(aX4).'' 
(2) Clause (i) of section 56(gX4XD) is amended by adding 
at the end thereof the folloMdng new sentence: "In the case 
of a taxpayer other than an integrated oil company (as defined 
in section 291(bX4)), in the case of any oil or gas well, this 
clause shall not apply in the case of amounts paid or incurred 
in taxable years beginning after December 31,1992.". 
(c) CONFORMING AMENDMENTS.— 
(1) Section 56 is amended by striking subsection (h). 
(2) Section 56(dXlXA) is amended to read as follows: 
"(A) the amount of such deduction shall not exceed 
90 percent of alternate minimum taxable income deter-
mined without regard to such deduction, and". 
(3) Section 59(a)^XAXii) is amended by striking "and the 
alternative tax energy preference deduction under section 56(h)" 
and inserting "and section 57(aX2XE)". 
26 use 56 note. 
(4) Sectwn 59A(bXl) is amended by striking "or the alter-
native tax energy preference deduction under section 56(h)". 
(d) EFFECTIVE DATE.—^The amendments made by this section 
shall apply to taxable years beginning after December 31, 1992. 
SEC. 1918. PERMANENT EXTENSION OF ENERGY INVESTMENT CREDIT 
FOR SOLAR AND GEOTHERMAL PROPERTY. 
(a) GENERAL RULE.—Paragraph (2) of section 48(a) (defining 
energy percentage) is amended— 
(1) by striking "Except as provided in subparagraph (B), 
the" in subpari^aph (A) and inserting "The", 
(2) by striking subparagraph (B), and 
(3) by redesignatmg subparagraph (C) as subparagraph 
(B). 
26 use 48 note. 
(b) EFFECTIVE DATE.—^The amendments made by this section 
shall take effect on June 30,1992. 
SEC. 1917. NUCLEAR DECOMMISSIONING FUNDS. 
(a) REPEAL OF INVESTMENT RESTRICTIONS.—Subparagraph (C) 
of section 468A(eX4) (relating to special rules for nuclear aecommis-
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3025 
sioning funds) is amended by striking "described in section 
501(^21XBXiir. 
(b) REDUCTION IN RATE OF TAX.—Paragraph (2) of section 
468A(e) is amended— 
(1) by striking "at the rate equal to the highest rate of 
tax specified in section IKb)" in subparagraph (A) and inserting 
"at the rate set forth in subparagrapn (Br, and 
(2) by redesignating subparagraphs (B) and (C) as subpara-
graphs (C) and (D), respectively, and by inserting after subpara-
graph (A) the following new subparagraph: 
**(B) RATE OF TAX.—^For purposes of subparagraph (A), 
the rate set forth in this subparagraph is— 
"(i) 22 percent in tne case of taxable years begin-
ning in calendar year 1994 or 1995, and 
"(ii) 20 percent in the case of taxable years begin-
ning after December 31,1995." 
(c) EFFECTIVE DATES.— 
2
6 use 468A 
(1) SUBSECTION (a).—^The amendment made by subsection "°**-
(a) shall apply to taxable years beginning after December 31, 
1992. 
(2) SUBSECTION (b).^The amendments made by subsection 
(b) shall apply to taxable years beginning after December 31, 
1993. Section 15 of the Internal Revenue Code of 1986 shall 
not apply to any change in rate resulting from the amendment 
made by subsection (b). 
SEC. 1918. EXTENSION OF SECTION 29 CREDIT FOR CERTAIN FACHJ-
TEES. 
Section 29 (relating to credit for producing fiiel from a 
nonconventional source) is amended by adding at the end thereof 
the following new subsection: 
"(g) EXTENSION FOR CERTAIN FACIUTIES.— 
"(1) IN GENERAL.—In the case of a facility for producing 
qualified fuels described in subparagraph (BXii) or (C) of sub-
section (cXl)— 
"(A) for purposes of subsection (fXlXB), such facility 
shall be treated as being placed in service before Janu-
ary 1, 1993, if such facility is placed in service before 
January 1, 1997, pursuant to a binding written contract 
in effect before January 1,1996, and 
"(B) if such faciUty is originally placed in service after 
December 31, 1992, paragraph (2) of subsection (f) shall 
be applied with respect to such facility by substituting 
'January 1, 2008' for VJanuary 1, 2003'. 
"(2) SPECIAL RULE.—Paragraph (1) shall not apply to any 
facili^ which produces coke or coke gas unless the original 
use of the facility commences with the tsucpayer." 
SEC. 1919. TREATMENT UNDER LOCAL FURNISHING RULES OF CER-
TAIN ELECTRICITY TRANSMITTED OUTSIDE LOCAL AREA. 
(a) IN GENERAL.—Subsection (f) of section 142 (relating to local 
furnishing of electric energy or gas) is amended to read as follows: 
"(f) LOCAL FURNISHING OF ELECTRIC ENERGY OR GAS.—For 
purposes of subsection (aX8)— 
"(1) IN GENERAL.—^The local furnishing of electric energy 
or gas from a facility shall only include furnishing solely within 
the area consisting o
f
— 
"(A) a city and 1 contiguous county, or 
59-194 0—93 
10 : QL 3 (Pt. 4) 
106 STAT. 3026 
PUBLIC LAW 102-486—OCT. 24, 1992 
"(B) 2 contiguous counties. 
"(2) TREATMENT OF CERTAIN ELECTRIC ENERGY TRANSMITTED 
OUTSIDE LOCAL AREA.— 
"(A) IN G
E
N
E
R
A
L
.
—
A facility shall not be treated as 
failing to meet the local furnishing requirement of sub-
section (aX8) by reason of electricity transmitted pursuant 
to an order of the Federal Energy Regulatory Commission 
under section 211 or 213 of the Federal Power Act (as 
in effect on the date of the enactment of this paragraph) 
if the portion of the cost of the facility financed witii tax-
exempt bonds is not greater than the portion of the cost 
of the facility which is allocable to the local furnishing 
-I 
of electric energy (determined without regard to this para-
graph). 
"(B) SPECIAL RULE FOR EXISTING FACIUTIES.—In the 
case of a facility financed with bonds issued before the 
date of an order referred to in subparagraph (A) which 
would (but for this subparagraph) cease to be tax-exempt 
by reason of subparagraph (A), such bonds shall not cease 
to be tax-exempt bonds (and section 150(bX4) shall not 
apply) if, to the extent necessary to comply with subpara-
graph (A)— 
"(i) an escrow to pay principal of, premium (if 
any), and interest on the bonds is estoblished Mdthin 
a reasonable period after the date such order becomes 
final, and 
"(ii) bonds are redeemed not later than the earliest 
date on which such bonds may be redeemed." 
26 use 142 note. 
(b) E
F
F
E
C
T
I
V
E DATE.—The amendment made by subsection (a) 
shall apply to obligations issued before, on, or after the date of 
the enactment of this Act. 
SEC. 1920. A
I
X
;
O
H
O
L FUELS. 
(a) REDUCED RATE OF TAX ON GASOLINE MIXED WITH ALCO-
HOL.—^Paragraph (1) of section 4081(c) (relating to gasoline mixed 
with alcohol at refinery, ete.) is amended to read as follows: 
"(1) IN GENERAL.—^Under regulations prescribed by the Sec-
retary, subsection (a) shall be applied by multipljdng the other-
wise applicable rate by a fraction the numerator of which 
is 10 and the denominator of which is— 
"(A) 9 in the case of 10 percent gasohol, 
"(B) 9.23 in the case of 7.7 percent gasohol, and 
"(C) 9.43 in the case of 5.7 percent gasohol, 
in the case of the removal or entry of any gasoline for use 
in producing gasohol at the time of such removed or entry. 
Subject to such terms and conditions as the Secretary may 
prescribe (including the application of section 4101), the treat-
ment under the preceding sentence also shall apply to use 
in producing gasohol after the time of such removal or entiy." 
(b) CONFORMING AMENDMENTS.—Section 4081(c) is amended^ 
(1) by striking "6.1 cents a gallon" in paragraph (2) and 
inserting "an otherwise applicable rate", and 
(2) by striking paragraph (4) and inserting the following 
new para^aph: 
^
^
(
4
) OTHERWISE APPUCABLE RATE.—For purposes of this 
subsection— 
, ^
. •; 
PUBLIC LAW 102-486—OCT. 24,1992 
106 STAT. 3027 
"(A) IN GENERAL.—In the case of the Highway Trust 
Fund financing rate, the term 'otherwise applicable rate' 
means— 
%!) 6.1 cents a gallon for 10 percent gasohol, 
"(ii) 7.342 cents a gallon for 7.7 percent gasohol, 
and 
"(iii) 8.422 cents a gallon for 5.7 percent gasohol. 
In the case of gasohol none of the alcohol in which consists 
of ethauol, clauses (i), (ii), and (iii) shall be applied by 
i 
substituting '5.5 cents' for '6.1 cents', '6.88 cents' for '7.342 
j 
cents', and ^.08 cents' for '8.422 cents'. 
"(B) 10 PERCENT GASOHOL.—The term '10 percent eas-
ohol' means any mixture of gasoline with idcohol if at 
I 
least 10 percent of such mixture is alcohol. 
"(C) 7.7 PERCENT GASOHOL.—The term '7.7 percent gas-
ohol' means any mixture of gasoline with alcohol if at 
least 7.7 percent, but not 10 percent or more, of such 
mixture is alcohol. 
"(D) 5.7 PERCENT GASOHOL.—The term '5.7 percent gas-
ohol' means any mixture of gasoline with alcohol if at 
least 5.7 percent, but not 7.7 percent or more, of such 
mixture is alcohol." 
(c) EFFECTIVE DATE.—^The amendments made by this section 26USC408i 
shall apply to gasoline removed (as defined in section 4082 of ^°^-
the Internal Revenue Code of 1986) or entered afl«r December 
31,1992. 
SEC. 1921. TAK-ESEUPT FINANCING FOR ENVIRONMENTAL ENHANCE-
MENTS OF HYDROELECTRIC GENERATING FACILITIES. 
(a) IN GENERAL.—Subsection (a) of section 142 (relating to 
exempt facility bonds) is amended— 
(1) by striking "or" at the end of paragraph (10), 
(2) by striking the period at the end of paragraph (11) 
and inserting ", or", and 
(3) by adding at the end the following new paragraph: 
"(12) environmental enhancements of hydroelectric generat-
ing facilities." 
(b) 
DEFINITION AND SPECIAL RULES FOR ENVIRONMENTAL 
ENHANCEMENTS OF HYDROELECTRIC GENERATING FACILITIES.-
(1) IN GENERAL.—Section 142 is amended by adding at 
the end the following new subsection: 
"(j) 
ENVIRONMENTAL 
ENHANCEMENTS 
OF 
HYDROELECTRIC 
GENERATING FACILITIES.-
"(1) IN GENERAL.—^For purposes of subsection (aX12), the 
term 'environmental enhancements of hydroelectric generating 
facilities' means property— 
"(A) the use of which is related to a federally licensed 
hydroelectric generating facility owned and operated by 
a governmental unit, and 
"(B) which— 
"(i) protects or promotes fisheries or other wildlife 
resources, including any fish by-pass facility, fish 
hatchery, or fisheries enhancement facility, or 
"(ii) is a recreational facility or other improvement 
required by the terms and conditions of any Federal 
licensing permit for the operation of such generating 
facility. 
106 STAT. 3028 
PUBLIC LAW 102-486—OCT. 24, 1992 
"(2) USE OF PROCEEDS.—^A bond issued as part of an issue 
described in subsection (aX12) shall not be considered an 
exempt facility bond unless at least 80 percent of the net 
proceeds of the issue of which it is a part are used to finance 
property described in paragraph (IXBXi)." 
(2) 
FINANCED 
PROPERTY 
MUST BE GOVERNMENTALLY 
OWNED.—Subparagraph (A) of section 142(bXl) (relating to cer-
tain facilities must be governmentally owned) is amended by 
striking "(2) or (3)" and inserting "(2), (3), or (12)". 
(3) EXCLUSION FROM VOLUME CAP.—Paragraph (3) of section 
146(g) (relating to exception for certain bonds) is amended— 
(A) by striking "or (2)" and inserting ", (2), or (12)", 
and 
(B) by striking "and docks and wharves" and inserting 
", docks and wharves, and environmental enhancements 
of hydroelectric generating facilities". 
26 use 142 note. 
(c) E
F
F
E
C
T
I
V
E D
A
T
E
.
—
^
T
h
e amendments made by this section 
shall apply to bonds issued after the date of the enactment of 
this Act. 
SEC. 1922. TRANS-ALASKA PIPELINE LIABILITY FUND INCOME TAX 
CREDIT. 
(a) IN GENERAL.—Section 4612 is amended by redesignating 
subsection (e) as subsection (f) and by inserting after subsection 
(d) the following new subsection: 
"(e) INCOME TAX CREDIT FOR UNUSED PAYMENTS INTO TRANS-
ALASKA PIPELINE LIABILITY FUND.— 
"(1) IN GENERAL.—For purposes of section 38, the current 
year business credit shall include the credit determined under 
this subsection. 
"(2) DETERMINATION OF CREDIT.— 
"(A) IN GENERAL.—^The credit determined under this 
subsection for any taxable year is an amount equal to 
the aggregate credit which would be allowed to the taxpayer 
under subsection (d) for amoiuits paid into the Irans-
Alaska Pipeline Liability Fund had the Oil Spill Liability 
Trust Fund financing rate not ceased to apply. 
"(B) LIMITATION.— 
"(i) IN GENERAL.—^The amount of the credit deter-
mined imder this subsection for any taxable vear with 
respect to any taxpayer shall not exceed the excess 
o
f
— 
"(I) the amount determined under clause (ii), 
over 
1
"
^
- 
"(II) the aggregate amount of the credit deter-
mined under tms subsection for prior taxable years 
with respect to such taxpayer, 
"(ii) OVERALL LIMITATION.—The amoimt deter-
mined under this clause with respect to any taxpayer 
is the excess o
f
— 
"(I) the aggregate amount of credit which 
would have been allowed under subsection (d) to 
the taxpayer for periods before the termination 
date specified in section 4611(fXl), if amounts in 
tlie Trans-Alaska Pipeline Liability Fund which 
are actually transferred into the Oil Spill Liability 
Fund were tranferred on January 1, 1990, and 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3029 
the Oil Spill Liability Trust Fund financing rate 
did not terminate before such termination date, 
over 
''(II) the aggregate amoimt of the credit 
allowed under subsection (d) to the taxpayer. 
"(3) COST OF INCOME TAX CREDIT BORNE BY TRUST FUND.— 
"(A) IN GENERAL.—The Secretary shall from time to 
time transfer from the Oil Spill Liability Trust Fimd to 
the general fund of the Treasury amounts equal to the 
credits allowed by reason of this subsection. 
"(B) TRUST FUND BALANCE MAY NOT BE REDUCED BELOW 
$1,000,000,000.—^Transfers may be made imder subparagraph 
(A) only to the extent that the unobligated balance of 
the Oil Spill Liabihty Trust Fimd exceeds $1,000,000,000. 
If any transfer is not made by reason of the preceding 
sentence, such transfer shall be made as soon as permitted 
under such sentence. 
"(4) No C
A
R
R
Y
B
A
C
K
.
—
N
o portion of the imused business 
credit for any taxable year which is attributable to the credit 
determined under this subsection may be carried to a taxable 
year beginning on or before the date of the enactment of this 
paragraph.". 
(b) EFFECTIVE DATE.—^The amendments made by this section 26 use 4612 
shall apply to taxable years beginning after the date of the enact-
ment of this Act. 
note. 
Subtitle B—^Revenue Increases, Etc. 
SEC. 1931. INCREASED BASE TAX AMOUNT ON OZONE-DEPLETING 
CHEMICALS. 
(a) IN GENERAL.—Subparagraph (B) of section 4681(b)(1) (relat-
ing to amount of tax) is amended to read as follows: 
"(B) BASE TAX AMOUNT.—The base tax amount for pur-
poses of subparagraph (A) with respect to any sale or 
use during a calendar year before 1996 with respect to 
any ozone-depleting chemical is the amoimt determined 
under the following table for such calendar year: 
Base tax 
"Calendar year: 
amount: 
1993 
3.35 
1994 
4.35 
1995 
5.35." 
(b) RATES RETAINED FOR CHEMICALS USED IN RIGID FOAM 
INSULATION.—The table in subparagraph (B) of section 4682(gX2) 
(relating to chemicals used in rigid foam insulation) is amended 
by striking "10" and inserting "7.46". 
(c) FLOOR STOCKS.—Subparagraph (C) of section 4682(hX2) 
(relating to tax-increase dates) is amended by striking "of 1991, 
1992, 1993, and 1994" and inserting "of any calendar year after 
1991". 
(d) EFFECTIVE DATE.—The amendments made by this section 26 use 4681 
shall apply to taxable chemicals sold or used on or after January 
1,1993. 
note. 
106 STAT. 3030 
PUBLIC LAW 102-486—OCT. 24,1992 
SEC. 1932. TREATMENT OF CERTAIN OZONE DEPLETING CHEMICALS. 
(a) TREATMENT OF CERTAIN HALONS.—The table contained in 
subparagraph (A) of section 4682(gX2) (relating to halons) is 
amended to read as follows: 
Ths applicable percentage 
in UM caae of sales or use 
*%! the case oft 
during 1993 is: 
Halon-1211 
2.49 
Halon-1301 
0.76 
Halon-2402 
1.24." 
(b) CHEMICALS USED FOR STERILIZING MEDICAL INSTRUMENTS 
AND AS PROPELLANTS IN METERED-DOSE INHALERS.—Subsection (g) 
of section 4682 (relating to phase-in of tax on certain substances) 
is amended by adding at the end thereof the following new para-
graph: 
"(4) 
CHEMICALS 
USED 
FOR STERILIZING 
MEDICAL 
INSTRUMENTS AND AS PROPELLANTS IN METERED-DOSE INHAL-
ERS.— 
"(A) RATE OF TAX.— 
"(i) IN GENERAL.—In the case o
f
— 
"(I) any use during the applicable period of 
any substance to sterilize medical instruments or 
as propellants in metered-dose inhalers, or 
"(ID any qualified sale during such period by 
the manufacturer, producer, or importer of any 
substance, 
the tax imposed by section 4681 shall be equal to 
$1.67 per pound, 
"(li) Qu^ 
Q
U
A
L
I
F
I
E
D S
A
L
E
.
—
^
F
o
r purposes of clause (i), 
the term 'qualified sale' means any sale by the manu-
facturer, producer, or importer of any substance— 
(I) for use by tne purchaser to sterilize medi-
cal instruments or as propellants in metered-dose 
inhalers, or 
"(ID for resale by the purchaser to a 2d pur-
chaser for such use bv the 2d purchaser. 
The preceding sentence snail apply only if the manufac-
turer, producer, and importer, and the 1st and 2d 
purchasers (if any) meet such registration require-
ments as may be prescribed by the Secretary. 
"(B) OVERPAYMENTS.—^If any substance on which tax 
was paid under this subchapter is used during the 
applicable period by any person to sterilize medical 
instruments or as propellants in metered-dose inhalers, 
credit or refund without interest shall be allowed to such 
person in an amount equal to the excess o
f
— 
"(i) the tax paid under this subchapter on such 
substance, or 
"(ii) the tax (if any) which would be imposed by 
section 4681 if such substance were used for such 
use by the manufacture, producer, or importer thereof 
on the date of its use by such person. 
Amounts payable under the preceding sentence with 
respect to uses during the taxaole year shall be treated 
as described in section 34(a) for such year unless claim 
thereof has been timely filed under this subparagraph. 
"(C) APPLICABLE PERIOD.—For purposes of this para-
graph, the term 'applicable period' means— 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3031 
"(i) 1993 in the case of substances to sterilize medi-
cal instruments, and 
"(ii) any period after 1992 in the case of propellants 
in metered-dose inhalers." 
(c) TREATMENT OF METHYL CHLOROFORM.—Subsection (g) of 
section 4682, as amended by subsection (b), is amended by adding 
at the end thereof the following new paragraph: 
"(5) 
TREATMENT OF METHYL CHLOROFORM.—The 
tax 
imposed by section 4681 during 1993 by reason of the treatment 
of methyl chloroform as an ozone-depleting chemical shall be 
63.02 percent of the amoimt of sucn tax which wovdd (but 
for this paragraph) be inmosed." 
(d) EFFECTIVE DATE.—^llie amendments made by this section 26 use 4682 
shall apply to sales and uses on or after January 1,1993. 
note. 
SEC. 1933. INFORMATION REPORTING WITH RESPECT TO CERTAIN 
SELLER-PROVIDED FINANCING. 
(a) GENERAL RULE.—Section 6109 (relating to identifying num-
bers) is amended by adding at the end thereof the following new 
subsection: 
"(h) IDENTIFYING INFORMATION REQUIRED WITH RESPECT 
T
O CERTAIN SELLER-PROVIDED FINANCING.— 
**(1) PAYOR.—If any taxpayer claims a deduction under 
section 163 for qualified residence interest on any seller-pro-
vided financing, such taxpayer shall include on the return 
claiming such deduction tne name, address, and TIN of the 
person to whom such interest is paid or accrued. 
"(2) RECIPIENT.—If any person receives or accrues interest 
referred to in paragraph (1), such person shall include on 
the return for the taxable year in which such interest is so 
received or accrued the name, address, and TIN of the person 
Uable for such interest. 
"(3) FURNISHING OF INFORMATION BETWEEN PAYOR AND 
RECIPIENT.—^If any person is required to include the TIN of 
another person on a return under paragraph (1) or (2), such 
other person shall furnish his TIN to such person. 
"(4) SELLER-PROVIDED FINANCING.—For purposes of this 
subsection, the term 'seller-provided financing means any 
indebtedness incurred in acqmring any residence if the person 
to whom such indebtedness is owed is the person from whom 
such residence was acquired.". 
(b) PENALTY.—Paragraph (3) of section 6724(d) (relating to 
specified information reportmg requirement) is amended by striking 
"and" at the end of subparagraph (C), by striking the period at 
the end of subparagraph (D) and inserting ", and", and by adding 
at the end thereof the following new subparagraph: 
"(E) any requirement imder section 6109(0 that— 
"(i) a person include on his return the name, 
address, and TIN of another person, or 
"(ii) a person furnish his TIN to another person." 
(c) EFFECTIVE DATE.—The amendments made by this section 26USC6109 
shall apply to taxable years beginning after December 31, 1991. ^°^ 
SEC. 1934. INCREASED WITHHOLDING ON GAMBLING WINNINGS. 
(a) IN GENERAL.—Section 3402(qXl) (relating to extension of 
withholding to certain gambling winnings) is amended by striking 
'^0 percent^ and inserting **^ percent". 
106 STAT. 3032 
PUBLIC LAW 102-486—OCT. 24, 1992 
26 use 3402 
(b) EFFECTIVE DATE.—^The amendment made by this section 
^ 
applies to payments received after December 31,1992. 
SEC. 1935. INCREASE IN BACKUP WITHHOLDING RATE. 
(a) IN GENERAL.—Section 3406(aXl) is amended by striking 
"20 percent" and inserting "31 percent". 
26 use 3406 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 
"°*®- 
shall apply to amounts paid after December 31,1992. 
SEC. 1936. CLASSIFICATION OF CERTAIN INTEREST AS STOCK OR 
INDEBTEDNESS. 
(a) GENERAL RULE.—Section 385 (relating to treatment of cer-
tain interests in corporations as stock or indebtedness) is amended 
by adding at the end thereof the following new subsection: 
"(c) EFFECT OF CLASSIFICATION BY ISSUER.— 
"(1) IN GENERAL.—^The characterization (as of the time 
of issuance) by the issuer as to whether an interest in a corpora-
tion is stock or indebtedness shall be binding on such issuer 
and on all holders of such interest (but shall not be binding 
on the Secretary). 
"(2) NOTIFICATION OF INCONSISTENT TREATMENT.—Except 
as provided in regulations, paragraph (1) shall not apply to 
any holder of an interest if such holder on his return discloses 
that he is treating such interest in a manner inconsistent 
with the characterization referred to in paragraph (1). 
"(3) REGULATIONS.—^The Secretary is authorized to require 
such information as the Secretary determines to be necessary 
to carry out the provisions of this subsection." 
26 use 385 note. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply to instruments issued aft«r the date of the enactment 
of this Act. 
SEC. 1937. RECOGNITION OF PRECONTRIBUTION GAIN IN CASE OF 
CERTAIN DISTRIBUTIONS TO CONTRIBUTING PARTNER. 
(a) GENERAL RULE.—Subpart C of part II of subchapter K 
of chapter 1 (relating to distributions by a partnership) is amended 
by adding at the end thereof the following new section: 
"SEC. 737. RECOGNITION OF PRECONTRIBUTION GAIN IN CASE OF 
CERTAIN DISTRIBUTIONS TO CONTRIBUTING PARTNER. 
"(a) GENERAL RULE.—In the case of any distribution by a part-
nership to a partner, such partner shall be treated as recognizing 
gain in an amoimt equal to the lesser of— 
"(1) the excess (if any) of (A) the fair market value of 
property (other than money) received in the distribution over 
(B) the adjusted basis of such partner's interest in the partner-
ship immediately before the distribution reduced (but not below 
zero) by the amount of money received in the distribution, 
or 
"(2) the net precontribution gain of the partner. 
Gain recognized under the preceding sentence shall be in addition 
to any gain recognized under section 731. The character of such 
gain shall be determined by reference to the proportionate character 
of the net precontribution gain. 
"(b) NET PRECONTRIBUTION GAIN.—For purposes of this section, 
the term 'net precontribution gain' means the net gain (if any) 
which would have been recognized by the distributee partner under 
section 704(cXlXB) if all property which— 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3033 
"(1) had been contributed to the partnership by the distribu-
tee partner vdthin 5 years of the distribution, and 
"(2) is held by such partnership immediately before the 
distribution, 
had been distributed by such partnership to another partner. 
"(c) BASIS RULES.— 
**(1) PARTNER'S INTEREST.—^The adtjusted basis of a partner's 
interest in a partnership shall be increased by the amoiuit 
of any gain recognized by such partner under subsection (a). 
Except for purposes of determining the amount recognized 
under subsection (a), such increase shall be treated as occurring 
immediately before the distribution. 
"(2) PARTNERSHIP'S BASIS IN CONTRIBUTED PROPERTY.— 
Appropriate a4justments shall be made to the adjusted basis 
or the partnership in the contributed property referred to in 
subsection (b) to reflect gain recognized under subsection (a). 
"(d) EXCEPTIONS.— 
"(1) DISTRIBUTIONS OF PREVIOUSLY CONTRIBUTED PROP-
ERTY.—If any portion of the property distributed consists of 
property which had been contriDuted by the distributee partner 
to the partnership, such property shall not be taken into 
account under subsection (aXl) and shall not be taken into 
account in determining the amount of the net precontribution 
gain. If the property distributed consists of an interest in an 
entity, the preceding sentence shall not applv to the extent 
that the value of such interest is attributable to property 
contributed to such entity after such interest had been contrib-
uted to the partnership. 
"(2) COORDINATION WITH SECTION 751.—This section shall 
not apply to the extent section 751(b) applies to such distribu-
tion." 
(b) TECHNICAL AMENDMENTS.— 
(1) Subparagraph (B) of section 704(cXl) is amended by 
striking out "is distributed" in the material preceding clause 
(i) and mserting "is distributed (directly or indirectly)". 
(2) Subsection (c) of section 731 is amended— 
(A) by striking "and section 751" and inserting ", sec-
tion 751", and 
(B) by inserting before the period at the end thereof 
the following: ", and section 737 (relating to reco^ition 
of precontribution gain in case of certain distributions)". 
(3) The table of sections for subpart B of part II of sub-
chapter K of chapter 1 is amended by adding at the end 
thereof the following new item: 
"Sec. 737. Recognition of precontribution gain in case of certain distribu-
tions to contributing partner." 
(c) EFFECTIVE DATE.—^The amendments made by this section 26 use 704 note. 
shall apply to distributions on or a£teT June 25,1992. 
SEC. 1938. DEDUCTION F
O
R EXPENSES A
W
A
Y F
R
O
M H
O
M
E
. 
(a) IN GENERAL.—Section 162(a) is amended hy adding at the 
end the following new sentence: "For purposes of pai-agraph (2), 
the taxpayer shall not be treated as bemg temporarily away from 
home during any period of employment if such period exceeds 
1 year." 
(b) EFFECTIVE DATE.—-The amendment made by subsection (a) 26 use 162 note. 
shall apply to costs paid or incurred after December 31, 1992. 
106 STAT. 3034 
PUBLIC LAW 102-486—OCT. 24, 1992 
SEC. 1939. REPORTING REQUIREMENTS WITH RESPECT TO CERTAIN 
APPORTIONED REAL ESTATE TAXES. 
(a) GENERAL RULE.—Paragraph (4) of section 6045(e) is 
amended to read as follows: 
"(4) ADDITIONAL INFORMATION REQUIRED.—In the case of 
a real estate transaction involving a residence, the real estate 
reporting person shall include the following information on 
the return under subsection (a) and on the statement under 
subsection (b): 
**(A) The portion of any real property tax which is 
treated as a tax imposed on the purchaser by reason of 
section 164(dXlXB). 
"(B) Whether or not the financing (if any) of the seller 
was federally-subsidized indebtedness (as defined in section 
143(mX3)).'' 
26 use 6045 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 
'^*^' 
shall apply to transactions after December 31,1992. 
SEC. 1940. USE OF EXCESS ASSETS OF BLACK LUNG BENEFIT TRUSTS 
FOR HEALTH CARE BENEFITS. 
(a) GENERAL RULE.—Paragraph (21) of section 501(c) is 
amended to read as follows: 
''(21)(A) A trust or trusts established in writing, created 
or organized in the United States, and contributed to by any 
person (except an insurance company) if— 
"(i) the purpose of such trust or trusts is exclusively— 
"(I) to satisfy, in whole or in part, the liability 
of such person for, or with respect to, claims for com-
pensation for disability or death due to pneumoconiosis 
under Black Limg Acts, 
"(ID to pay premiums for insurance exclusively 
covering such liability, 
"(in) to pay administrative and other incidental 
expenses of such trust in connection vdth the operation 
of the trust and the processing of claims against such 
person under Black Lung Acts, and 
"(IV) to pay accident or health benefits for retired 
miners and their spouses and dependents (including 
administrative and other incidental expenses of such 
trust in connection therewith) or premiiuns for insur-
ance exclusively covering such benefits; and 
"(ii) no part of the assets of the trust may be used 
for, or diverted to, any purpose other than— 
"(I) the purposes aescribed in clause (i), 
"(11) investment (but only to the extent that the 
trustee determines that a portion of the assets is not 
currently needed for the purposes described in clause 
(i)) in qualified investments, or 
"(III) payment into the Black Lung Disability Trust 
Fund established under section 9501, or into the gen-
eral fimd of the United States Treasury (other than 
in satisfaction of any tax or other civil or criminal 
liability of the person who established or contributed 
to the trust). 
"(B) No deduction shall be allowed under this chapter for 
, , 
any payment described in subparagraph (AXiXIV) from such 
trust. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3035 
"(C) Payments described in subparagraph (AXiXIV) may 
be made firom such trust during a taxable year only to the 
extent that the aggregate amount of such payments during 
such taxable year does not exceed the lesser of— 
"(i) the excess (if any) (as of the dose of the preceding 
taxable year) o
f
— 
"(I) the fair market value of the assets of the 
trust, over 
"(ID 110 percent of the present value of the liability 
described in subparagraph (AXiXD of such person, or 
**(ii) the excess (if any) o
f
— 
"(I) the sum of a similar excess determined as 
of the close of the last taxable year ending before 
the date of the enactment of this subparagraph plus 
earnings thereon as of the close of the taxable year 
preceding the taxable year involved, over 
"(11) the aggregate payments described in subpara-
graph (AXiXIV) made 
from 
the trust during all taxable 
years beginning after the date of the enactment of 
this subparagraph. 
The determinations under the preceding sentence shall be made 
by an independent actuary using actuarial methods and 
assumptions (not inconsistent with the regulations prescribed 
under section 192(cXlXA)) each of which is reasonable and 
which are reasonable in the aggregate. 
' 
"(D) For purposes of this paragraph: 
"(i) The term 'Black Lung Acts' means part 0 of title 
IV of the Federal Mine Safety and Health Act of 1977, 
and any State law providing compensation for disability 
or death due to that pneumoconiosis. 
"(ii) The term 'qualified investments' means— 
"(I) public debt securities of the United States, 
"(ID obligations of a State or local government 
which are not in default as to principal or interest, 
and 
"(III) time or demand deposits in a bank (as 
defined in section 581) or an insured credit union 
(within the meaning of section 101(6) of the Federal 
Credit Union Act, 12 U.S.C. 1752(6)) located in the 
United States. 
"(iii) The term 'miner' has the same meaning as such 
term has when used in section 402(d) of the Black Lung 
Benefits Act (30 U.S.C. 902(d)). 
"(iv) The term 'incidental expenses' includes legal, 
accounting, actuarial, and trustee expenses." 
(b) EXCEPTION FROM TAX ON SELF-DEALING.—Section 4951(f) 
is amended by striking "claiise (i) of section 501(cX21XA)'' and 
inserting "subclause (I) or (IV) of section 501(cX21XA)(i)''. 
(c) TECHNICAL AMENDMENT.—Paragraph (4) of section 192(c) 
is £unended by striking "clause (ii) of section 501(cX21XB)'' and 
inserting "subclause (II) of section 501(cX21XAXii)''. 
(d) EFFECTIVE DATE.—^The amendments made by this section 26 use 192 note, 
shall apply to taxable years beginning after December 31, 1991. 
106 STAT. 3036 
PUBLIC LAW 102-486—OCT. 24, 1992 
SEC. 1941. TREATMENT OF PORTIONS OF PROPERTY UNDER MARITAL 
DEDUCTION. 
(a) ESTATE TAX.—Subsection (b) of section 2056 (relating to 
limitation in case of life estate or other terminable interest) is 
amended by adding at the end thereof the following new paragraph: 
"(10) SPECIFIC PORTION.—^For purposes of paragraphs (5), 
(6), and (TXBXiv), the term 'specific portion' only includes a 
portion determined on a fractional or percentage basis." 
(b) GIFT TAX.— 
(1) Subsection (e) of section 2523 is amended by adding 
at the end thereof the following new sentence: "For purposes 
of this subsection, the term 'specific portion' only includes a 
portion determined on a fractional or percentage basis." 
(2) Paragraph (3) of section 2523(0 is amended by inserting 
before the period at the end thereof the following: "and the 
rules of section 2056(bX10) shall apply". 
26 use 2056 
(c) EFFECTIVE DATES.— 
^°*^- 
(1) SUBSECTION (a).— 
(A) IN GENERAL.—Except as provided in subparagraph 
(B), the amendment made by subsection (a) shall apply 
to the estates of decedents djdng after the date of the 
enactment of this Act. 
(B) EXCEPTION.—^The amendment made by subsection 
(a) shall not apply to any interest in property which passes 
(or has passed) to the surviving spouse of the decedent 
pursuant to a will (or revocable trust) in existence on 
the date of the enactment of this Act if— 
(i) the decedent dies on or before the date 3 years 
after such date of enactment, or 
^
: 
(ii) the decedent was, on such date of enactment, 
under a mental disability to change the disposition 
of his property and did not regain his competence 
to dispose of such property before the date of his death. 
The preceding sentence shall not apply if such will (or 
revocable trust) is amended at any time after such date 
of enactment in any respect which will increase the amount 
of the interest which so passes or alters the terms of 
the transfer by which the interest so passes. 
(2) SUBSECTION (b).—^The amendments made by subsection 
(b) shall apply to gifts made after the date of the enactment 
of this Act. 
SEC. 1942. UNIFORM E
X
E
M
P
T
I
O
N A
M
O
U
N
T FOR G
A
M
B
L
I
N
G WINNINGS 
SUBJECT TO WITHHOLDING. 
(a) IN GENERAL.—Subparagraphs (A) and (C) of section 
3402(qX3) are each amended by striking "$1,000" and inserting 
"$5,000". 
26 use 3042 
(b) E
F
F
E
C
T
I
V
E D
A
T
E
.
—
^
T
h
e amendments made by subsection 
"o^- 
(a) shall apply to payments of winnings after December 31, 1992. 
StirlS nlSh 
Subtitle C—Health Care of Coal Miners 
Benefit Act of 
26 use 1 note. 
SEC. 19141. SHORT TITLE. 
This subtitle may be cited as the "Coal Industry Retiree Health 
Benefit Act of 1992". 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3037 
SEC. 19142. FINDINGS AND DECLARATION OF POUCY. 
26 USC 9701 
(a) FINDINGS.—The Congress finds that— 
"°^' 
(1) the production, transportation, and use of coal substan-
tially affects interstate and foreign commerce and the national 
public interest; and 
(2) in order to secure the stability of interstate commerce, 
it is necessary to modify the current private health care benefit 
plan structure for retirees in the coal industry to identify per-
sons most responsible for plan liabilities in order to stabilize 
plan funding and allow for the provision of health care benefits 
to such retirees. 
(b) STATEMENT OF POLICY.—It is the policy of this subtitle— 
(1) to remedy problems with the provision and funding 
of health care benefits with respect to the beneficiaries of 
multiemployer benefit plans that provide health care benefits 
to retirees in the coal industry; 
(2) to allow for sufficient operating assets for such plans; 
and 
(3) to provide for the continuation of a privately financed 
self-sufficient program for the delivery of health care benefits 
to the beneficiaries of such plans. 
SEC. 19143. COAL INDUSTRY HEALTH BENEFITS PROGRAM. 
(a) IN GENERAL.—The Internal Revenue Code of 1986 is 
amended by adding at the end the following new subtitle: 
^Subtitle J—Coal Industry Health Benefits 
"CHAPTER 99. Coal industry health benefits. 
**CHAPTER 99—COAL INDUSTRY HEALTH BENEFITS 
"SUBCHAPTER A—Definitions of general applicability. 
"SUBCHAPTER B—Combined benefit fund. 
"SUBCHAPTER C—Health benefits of certain miners. 
"SUBCHAPTER D—Other provisions. 
^Subchapter A—^Definitions of General Applicability 
"Sec. 9701. Definitions of general applicability. 
"SEC. 9701. DEFINITIONS OF GENERAL APPUCABILTTY. 
"(a) PLANS AND FUNDS.—For purposes of this chapter— 
"(1) UMWA BENEFIT PLAN.— 
"(A) IN GENERAL.—The term TJMWA Benefit Plan' 
means a plan— 
''(i) which is described in section 404(c), or a 
continuation thereof; and 
''(ii) which provides health benefits to retirees and 
beneficiaries oi the industry which maintained the 
1950 UMWA Pension Plan. 
"(B) 1950 U
M
W
A BENEFIT PLAN.^The term '1950 
UMWA Benefit Plan' means a UMWA Benefit Plan, partici-
pation in which is substantially limited to individuals who 
retired before 1976. 
"(C) 1974 U
M
W
A BENEFIT PLAN.—The term '1974 
UMWA Benefit Plan' means a UMWA Benefit Plan, partici-
106 STAT. 3038 
PUBLIC LAW 102-486—OCT. 24,1992 
pation in which is substantially limited to individuals who 
retired on or after January 1,1976. 
•*(2) 1950 U
M
W
A P
E
N
S
I
O
N PLAN.—The term *1950 UMWA 
Pension Plan' means a pension plan described in section 404(c) 
(or a continuation thereof), participation in which is substan-
tially limited to individuals wno retired before 1976. 
"(3) 1974 U
M
W
A P
E
N
S
I
O
N PLAN.—The term '1974 UMWA 
Pension Plan' means a pension plan described in section 404(c) 
(or a continuation thereof), particii>ation in which is substan-
tially limited to individuals who retired in 1976 and thereafter. 
"(4) 1992 U
M
W
A B
E
N
E
F
I
T PLAN.—The term '1992 UMWA 
Benefit Plan' means the plan referred to in section 9713A 
"(5) COMBINED FUND.-The term 'Combined Fund' means 
the United Mine Workers of America Combined Benefit Fimd 
established imder section 9702. 
"(b) AGREEMENTS.—^For purposes of this section— 
"(1) COAL WAGE AGREEMENT.—The term 'coal wage agree-
ment' means— 
"(A) the National Bituminous Coal Wage Agreement, 
or 
"(B) any other agreement entered into between an 
employer in the coal industry and the United Mine Workers 
of America that required or requires one or both of the 
following: 
"(i) the provision of health benefits to retirees of 
such employer, eligibility for which is based on years 
of service credited under a plan established by the 
settlors and described in section 404(c) or a continu-
ation of such plan; or 
"(ii) contributions to the 1950 UMWA Benefit Plan 
or the 1974 UMWA Benefit Plan, or any predecessor 
thereof. 
"(2) SETTLORS.—^The term 'settlors' means the United Mine 
Workers of America and the Bituminous Coal Operators' 
Association, Inc. (referred to in this chapter as the BCOA'). 
"(3) NATIONAL BITUMINOUS COAL WAGE AGREEMENT.—The 
term 'National Bituminous Coal Wage Agreement' means a 
collective bargaining agreement negotiated by the BCOA and 
the United Mine Workers of America. 
"(c) TERMS RELATING TO OPERATORS.—For purposes of this 
section— 
"(1) SIGNATORY OPERATOR.—The term 'signatory operator' 
means a person which is or was a signatory to a coal wage 
agreement. 
"(2) RELATED PERSONS.— 
"(A) IN GENERAL.—A person shall be considered to 
/ 
be a related person to a signatory operator if that person 
/ 
is— 
"(i) a member of the controlled group of corpora-
tions (within the meaning of section 52(a)) which 
includes such signatory operator; 
"(ii) a trade or business which is under common 
control (as determined under section 52(b)) with such 
signatory operator; or 
"(iii) any other person who is identified as having 
a partnership interest or joint venture with a signatory 
operator in a business within the coal industry, but 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3039 
only if such business employed eligible beneficiaries, 
except that this clause snail not apply to a person 
whose only interest is as a limited partner. 
A related person shall also include a successor in interest 
of any person described in clause (i), (ii), or (iii). 
'XB) TIME FOR DETERMINATION.—The 
relationships 
described in clauses (i), (ii), and (iii) of subparagraph (A) 
shall be determined as of July 20, 1992, except that if, 
on July 20, 1992, a signatory operator is no longer in 
business, the relationships shall be determined as of the 
time immediately before such operator ceased to be in 
business. 
"(3) 1988 AGREEMENT OPERATOR.—The term '1988 agree-
ment operator' means— 
"(A) a signatory operator which was a signatory to 
the 1988 National Bituminous Coal Wage Agreement, 
"(B) an employer in the coal industry which was a 
signatory to an agreement containing pension and health 
care contribution and benefit provisions which are the same 
as those contained in the 1988 National Bitimiinous Coal 
Wage Agreement, or 
"(C) an employer from which contributions were actu-
ally received after 1987 and before July 20, 1992, by the 
1950 UMWA Benefit Plan or the 1974 UMWA Benefit 
Plan in connection with employment in the coal industry 
during the period covered by the 1988 National Bituminous 
Coal Wage Agreement. 
"(4) LAST SIGNATORY OPERATOR.—^The term 'last signatory 
operator* means, with respect to a coal industry retiree, a 
signatory operator which was the most recent coal industry 
employer of such retiree. 
"(5) ASSIGNED OPERATOR.—The term 'assigned operator* 
means, with respect to an eligible beneficiary denned in section 
9703(f), the signatory operator to which liability imder sub-
chapter B with respect to the beneficiary is assigned imder 
section 9706. 
"(6) OPERATORS OF DEPENDENT BENEFICIARIES.—For pur-
poses of this chapter, the signatory operator, last signatory 
operator, or assigned operator of any eligible beneficiary under 
this chapter who is a coal industry retiree shall be considered 
to be the signatory operator, last signatory operator, or assigned 
operator with respect to any other individual who is an eligible 
beneficiary under this chapter by reason of a relationship to 
the retiree. 
"(7) BUSINESS.—^For purposes of this chapter, a person shall 
be considered to be in business if such person conducts or 
derives revenue from any business activity, whether or not 
in the coal industry. 
"(d) ENACTMENT DATE.—For purposes of this chapter, the term 
'enactment date' means the date of the enactment oi this chapter. 
''Subchapter B—Combined Benefit Fund 
"Part I—ESTABUSHMENT AND BENEFITS 
"Part II—FINANCING 
"Part III—ENFORCEMENT 
"Part IV—OTHER PROVISIONS 
106 STAT. 3040 
PUBLIC LAW 102-486—OCT. 24, 1992 
**PART I—ESTABLISHMENT AND BENEFITS 
"Sec. 9702. Establishment of the United Mine Workers of America Com-
bined Benefit Fund. 
"Sec. 9703. Plan benefits. 
"SEC. 9702. ESTABLISHMENT OF THE UNITED MINE WORKERS OF 
AMERICA COMBINED BENEFIT FUND. 
"(a) ESTABLISHMENT.— 
"(1) IN GENERAL.—^As soon as practicable (but not later 
than 60 days) after the enactment date, the persons described 
in subsection (b) shall designate the individuals to serve as 
trustees. Such trustees shall create a new private plan to 
be known as the United Mine Workers of America Combined 
Benefit Fund. 
"(2) MERGER OF RETIREE BENEFIT PLANS.—As of February 
1, 1993, the settlors of the 1950 UMWA Benefit Plan and 
the 1974 UMWA Benefit Plan shall cause such plans to be 
merged into the Combined Fund, and such merger shall not 
be treated as an employer withdrawal for purposes of any 
1988 coal wage agreement. 
"(3) TREATMENT OF PLAN.—The Combined Fund shall be— 
"(A) a plan described in section 302(c)(5) of the Labor 
Management Relations Act, 1947 (29 U.S.C. 186(c)(5)), 
"(B) an employee welfare benefit plan within the mean-
ing of section 3(1) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1002(1)), and 
"(C) a multiemployer plan within the meaning of sec-
tion 3(37) of such Act (29 U.S.C. 1002(37)). 
"(4) TAX TREATMENT.—For purposes of this title, the Com-
bined Fund and any related trust shall be treated as an 
organization exempt from tax under section 501(a). 
"(b) BOARD OF TRUSTEES.— 
"(1) IN GENERAL.—For purposes of subsection (a), the board 
of trustees for the Combined Fund shall be appointed as follows: 
"(A) one individual who represents employers in the 
coal mining industry shall be designated by the BCOA; 
"(B) one individual shall be designated by the three 
employers, other than 1988 agreement operators, who have 
been assigned the greatest number of eligible beneficiaries 
under section 9706; 
"(C) two individuals designated by the United Mine 
Workers of America; and 
"(D) three persons selected by the persons appointed 
under subparagraphs (A), (B), and (C). 
"(2) SUCCESSOR TRUSTEES.—^Any successor trustee shall be 
appointed in the same manner as the trustee being succeeded. 
The plan establishing the Combined Fund shall provide for 
the removal of trustees. 
"(3) SPECIAL RULES.— 
"(A) BCOA.—If the BCOA ceases to exist, any trustee 
or successor imder paragraph (1)(A) shall be designated 
by the 3 employers who were members of the BCOA on 
the enactment date and who have been assigned the great-
est number of eligible beneficiaries under section 9706. 
"(B) FORMER SIGNATORIES.—The initial trustee under 
paragraph (1)(B) shall be designated by the 3 employers, 
other than 1988 agreement operators, which the records 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3041 
of the 1950 UMWA Benefit Plan and 1974 UMWA Benefit 
Plan indicate have the greatest number of eligible bene-
ficiaries as of the enactment date, and such trustee and 
any successor shall serve until November 1,1993. 
"(c) PLAN YEAR,—The first plan year of the Combined Fund 
shall begin February 1, 1993, and end September 30, 1993. Each 
succeeding plan year shall begin on October 1 of each calendar 
year. 
"SEC. 9703. PLAN BENEFITS. 
"(a) IN GENERAL.—Each eligible beneficiary of the Combined 
Fund shall receive— 
"(1) health benefits described in subsection (b), and 
"(2) in the case of an eligible beneficiary described in sub-
section (f)(1), death benefits coverage described in subsection 
(0. 
"(b) HEALTH BENEFITS.— 
"(1) IN GENERAL.—The trustees of the Combined Fund shall 
provide health care benefits to each eligible beneficiary by 
enrolling the beneficiary in a health care services plan which 
undertakes to provide such benefits on a prepaid risk basis. 
The trustees shall utilize all available plan resources to ensure 
that, consistent with paragraph (2), coverage under the man-
aged care system shall to the maximum extent feasible be 
substantially the same as (and subject to the same limitations 
of) coverage provided under the 1950 UMWA Benefit Plan 
and the 1974 UMWA Benefit Plan as of January 1, 1992. 
"(2) PLAN PAYMENT RATES.— 
"(A) IN GENERAL.—The trustees of the Combined Fund 
shall negotiate pajnnent rates with the health care services 
plans described in paragraph (1) for each plan year which 
are in amounts which— 
"(i) vary as necessary to ensure that beneficiaries 
in different geographic areas have access to a uniform 
level of health benefits; and 
"(ii) result in aggregate payments for such plan 
year from the Combined Fund which do not exceed 
the total premium payments required to be paid to 
the Combined Fund under section 9704(a) for the plan 
year, adjusted as provided in subparagraphs (B) and 
(C). 
"(B) REDUCTIONS.—The amount determined 
under 
subparagraph (A)(ii) for any plan year shall be reduced— 
"(i) by the aggregate death benefit premiums deter-
mined under section 9704(c) for the plan year, and 
"(ii) by the amount reserved for plan administra-
tion under subsection (d). 
"(C) 
INCREASES.—^The 
amount 
determined 
under 
subparagraph (A)(ii) shall be increased— 
"(i) by any reduction in the total premium pay-
ments required to be paid under section 9704(a) by 
reason of transfers described in section 9705, 
"(ii) by any carryover to the plan year from any 
preceding plan year which— 
"(I) is derived from amounts described in sec-
tion 9704(e)(3)(B)(i), and 
106 STAT. 3042 
PUBLIC LAW 102-486—OCT. 24, 1992 
"(II) the tnistees elect to use to pay benefits 
for the current plan year, and 
"(iii) any interest earned by the Combined Fund 
which the trustees elect to use to pay benefits for 
the current plan year. 
"(3) QUALIFIED PROVIDERS.—The trustees of the Combined 
Fund shall not enter into an agreement under paragraph (1) 
with any provider of services which is of a type which is 
required to be certified by the Secretary of Health and Human 
Services when providing services under title XVIII of the Social 
Security Act unless the provider is so certified. 
"(4) EFFECTIVE DATE.—Benefits shall be provided under 
paragraph (1) on and after February 1,1993. 
^'(c) DEATH BENEFITS COVERAGE.— 
"(1) IN GENERAL.—The trustees of the Combined Fund shall 
provide death benefits coverage to each eligible beneficiary 
described in subsection (0(1) which is identical to the benefits 
P
rovided under the 1950 UMWA Pension Plan or 1974 UMWA 
ension Plan, whichever is applicable, on July 20, 1992. Such 
coverage shall be provided on and after February 1, 1993. 
"(2) TERMINATION OF COVERAGE.—The 1950 UMWA Pen-
sion Plan and the 1974 UMWA Pension Plan shall each be 
amended to provide that death benefits coverage shall not 
be provided to eligible beneficiaries on and after February 
1, 1993. This paragraph shall not prohibit such plans from 
subsequently providing death benefits not described in para-
graph (1). 
n[d) RESERVES FOR ADMINISTRATION.—The trustees of the Com-
bined Fund may reserve for each plan year, for use in payment 
of the administrative costs of the Combined Fund, an amount 
not to exceed 5 percent of the premiums to be paid to the Combined 
Fund under section 9704(a) during the plan year. 
"(e) LIMITATION ON ENROLLMENT.—The Combined Fund shall 
not enroll any individual who is not receiving benefits under the 
1950 UMWA Benefit Plan or the 1974 UMWA Benefit Plan as 
ofJulv20,1992. 
"(f) ELIGIBLE BENEFICIARY.—For purposes of this subchapter, 
the term 'eligible beneficiary* means an individual who— 
"(1) is a coal industry retiree who, on July 20, 1992, was 
eligible to receive, and receiving, benefits from the 1950 UMWA 
Benefit Plan or the 1974 UMWA Benefit Plan, or 
"(2) on such date was eligible to receive, and receiving, 
benefits in either such plan by reason of a relationship to 
such retiree. 
"PART II—FINANCING 
"Sec. 9704. Liability of assigned operators. 
"Sec. 9705. Transfers. 
"Sec. 9706. Assignment of eligible beneficiaries. 
'nSEC. 9704. LIABILITY OF ASSIGNED OPERATORS. 
"(a) ANNUAL PREMIUMS.—Each assigned operator shall pay to 
the Combined Fund for each plan year oeginning on or after Feb-
ruary 1, 1993, an annual premium equal to the sum of the following 
three premiiuns— 
"(1) the health benefit premium determined under sub-
section (b) for such plan year, plus 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3043 
''(2) the death benefit premium determined under sub-
section (c) for such plan year, plus 
"(3) the unassigned beneficiaries premium determined 
under subsection (d) for such plan year. 
Any related person with respect to an assigned operator shall 
be jointly and severally liable for any premium required to be 
paid by such operator. 
"(b) HEALTH BENEFIT PREMIUM.—For piuposes of this chapter-
ed) IN GENERAL.—^The health benefit premiimi for any 
plan year for any assigned operator shall be an amount equal 
to the product of the per beneficiary premium for the plan 
year multiplied by the number of eligible beneficiaries assigned 
to such operator under section 9706. 
"(2) PER BENEFICIARY PREMIUM.—^The Secretary of Health 
and Hviman Services shall calculate a per beneficiary premium 
for each plan year beginning on or after February 1, 1993, 
which is equal to the sum of— 
"(A) the amount determined by dividing— 
"(i) the aggregate amount of pa3anents from the 
1950 UMWA Benefit Plan and the 1974 UMWA Benefit 
Plan for health benefits (less reimbursements but 
including administrative costs) for the plan year begin-
ning July 1, 1991, for all individuals covered under 
such plans for such plan year, by 
"(ii) the number of such individuals, plus 
"(B) the amount determined under subparagraph (A) 
multiplied by the percentage (if any) by which the medical 
component of the Consumer Price Index for the calendar 
year in which the plan year begins exceeds such component 
for 1992. 
"(3) ADJUSTMENTS FOR MEDICARE REDUCTIONS.—If, by rea-
son of a reduction in benefits under title XVIII of the Social 
Security Act, the level of health benefits under the Combined 
Fund would be reduced, the trustees of the Combined Fund 
shall increase the per beneficiary premium for the plan year 
in which the reduction occurs and each subsequent plan year 
by the amount necessary to maintain the level of health benefits 
which would have been provided without such reduction. 
"(c) DEATH BENEFIT PREMIUM.—^The death benefit premium 
for any plan year for any assigned operator shall be equal to 
the applicable percentage of the amount, actuarially determined, 
which the Combined Fund will be required to pay during the 
plan year for death benefits coverage described in section 9703(c). 
"(d) UNASSIGNED BENEFICIARIES PREMIUM.—The unassigned 
beneficiaries premium for any plan year for any assigned operator 
shall be equal to the applicable percentage of the product of the 
per beneficiary premium for the plan year multiplied by the number 
of eligible beneficiaries who are not assigned under section 9706 
to any person for such plan year. 
"(e) PREMIUM ACCOUNTS; ADJUSTMENTS.— 
"(1) ACCOUNTS.—The trustees of the Combined Fund shall 
establish and maintain 3 separate accounts for each of the 
premiums described in subsections (b), (c), and (d). Such 
accounts shall be credited with the premiums received and 
debited with expenditures allocable to such premiums. 
"(2) ALLOCATIONS.— 
106 STAT. 3044 
PUBLIC LAW 102-486—OCT. 24, 1992 
* 
"(A) ADMINISTRATIVE EXPENSES.—Administrative costs 
for any plan year shall be allocated to premium accounts 
under paragraph (1) on the basis of expenditures (other 
than administrative costs) from such accounts during the 
preceding plan year. 
,. 
"(B) INTEREST.—Interest shall be allocated to the 
account established for health benefit premiums. 
"(3) SHORTFALLS AND SURPLUSES.— 
"(A) IN GENERAL.—Except as provided in subparagraph 
(B), if, for any plan year, there is a shortfall or surplus 
in any premium account, the premium for the following 
plan year for each assigned operator shall be proportion-
ately reduced or increased, whichever is applicable, by the 
amount of such shortfall or surplus. 
"(B) EXCEPTION.—Subparagraph (A) shall not apply 
to any surplus in the health benefit premium account or 
the unassigned beneficiaries premium account which is 
attributable to— 
"(i) the excess of the premiums credited to such 
account for a plan year over the benefits (and adminis-
trative costs) debited to such account for the plan 
year, but such excess shall only be available for pur-
poses 
of 
the 
carryover 
described 
in 
section 
9703(b)(2)(C)(ii) (relating to carryovers of premiums 
not used to provide benefits), or 
"(ii) interest credited under paragraph (2)(B) for 
the plan year or any preceding plan year. 
"(C) No AUTHORITY FOR INCREASED PAYMENTS.—Noth-
ing in this paragraph shall be construed to allow expendi-
tures for health care benefits for any plan year in excess 
of the limit under section 9703(b)(2). 
"(f) APPLICABLE PERCENTAGE.—For purposes of this section— 
"(1) IN GENERAL.—^The term 'applicable percentage' means, 
with respect to any assigned operator, the percentage deter-
mined by dividing the number of eligible beneficiaries assigned 
under section 9706 to such operator by the total number of 
eligible beneficiaries assigned under section 9706 to all such 
operators (determined on the basis of assignments as of 
October 1,1993). 
"(2) ANNUAL ADJUSTMENTS.—In the case of any plan year 
beginning on or after October 1, 1994, the applicable percentage 
for any assigned operator shall be redetermined under para-
graph (1) by making the following changes to the assignments 
as of October 1, 1993: 
"(A) Such assignments shall be modified to reflect any 
changes during the period beginning October 1, 1993, and 
ending on the last day of the preceding plan year pursuant 
to the appeals process under section 9706(f). 
"(B) The total number of assigned eligible beneficiaries 
shall be reduced by the eligible beneficiaries of assigned 
operators which (and all related persons with respect to 
which) had ceased business (within the meaning of section 
9701(c)(6)) during the period described in subparagraph 
(A). 
"(g) PAYMENT OF PREMIUMS.— 
"(1) IN GENERAL.—^The annual premium under subsection 
(a) for any plan year shall be payable in 12 equal monthly 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3045 
installments, due on the twenty-fifth day of each calendar 
month in the plan year. In the case of the plan year beginning 
February 1, 1993, the annual premium under subsection (a) 
shall be added to such premium for the plan year beginning 
October 1,1993. 
"(2) DEDUCTIBILITY.—^Any premium required by this section 
shall be deductible without regard to any limitation on deduct-
ibility based on the prefunding of health benefits. 
"(h) INFORMATION.—^The trustees of the Combined Fund shall, 
not later than 60 days after the enactment date, furnish to the 
Secretary of Health and Human Services information as to the 
benefits and covered beneficiaries under the fund, and such other 
information as the Secretary may require to compute any premium 
under this section. 
"(i) TRANSITION RULES.— 
"(1) 1988 AGREEMENT OPERATORS.— 
"(A) 1ST YEAR COSTS.—During the plan year of the 
Combined Fund beginning February 1, 1993, the 1988 
agreement operators shall make contributions to the Com-
bined Fund in amounts necessary to pay benefits and 
administrative costs of the Combined Fund incurred during 
such year, reduced by the amount transferred to the Com-
bined Fxmd under section 9705(a) on February 1, 1993. 
"(B) DEFICITS FROM MERGED PLANS.—During the period 
beginning February 1, 1993, and ending September 30, 
1994, the 1988 agreement operators shall make contribu-
tions to the Combined Fund as are necessary to pay off 
the expenses accrued (and remaining unpaid) by the 1950 
UMWA Benefit Plan and the 1974 UMWA Benefit Plan 
as of February 1, 1993, reduced by the assets of such 
plans as of such date. 
"(C) FAILURE.—If any 1988 agreement operator fails 
to meet any obligation imder this paragraph, any contribu-
tions of such operator to the Combined Fund or any other 
plan described in section 404(c) shall not be deductible 
under this title imtil such time as the failure is corrected. 
"(D) PREMIUM REDUCTIONS.— 
"(i) 1ST YEAR PAYMENTS.—In the case of a 1988 
agreement 
operator 
making 
contributions 
under 
subparagraph (A), the premium of such operator under 
subsection (a) shall be reduced by the amount paid 
luider subparagraph (A) by such operator for the plan 
year beginning February 1,1993. 
"(ii) DEFICIT PAYMENTS.—In the case a 1988 
agreement 
operator 
making 
contributions 
under 
subparagraph (B), the premium of such operator imder 
subsection (a) shall be reduced by the amounts which 
are paid to the Combined Fund by reason of claims 
arising in connection with the 1950 UMWA Benefit 
Plan and the 1974 UMWA Benefit Plan as of Febru-
ary 1, 1993, including claims based on the 'evergreen 
clause' found in the language of the 1950 UMWA Bene-
fit Plan and the 1974 UMWA Benefit Plan, and which 
are allocated to such operator under subparagraph (E). 
"(iii) LIMITATION.—Clause (ii) shall not apply to 
the extent the amounts paid exceed the contributions. 
106 STAT. 3046 
PUBLIC LAW 102-486—OCT. 24, 1992 
"(iv) PLAN YEARS.—^Premiums under subsection (a) 
shall be reduced for the first plan ^ear for which 
amounts described in clause (i) or (ii) are available 
and for any succeeding plan year until such amounts 
are exhausted. 
"(E) ALLOCATIONS OF CONTRIBUTIONS AND REFUNDS.— 
Contributions imder subparagraphs (A) and (B), and pre-
mium reductions under subparagraph (DXii), shall be made 
ratably on the basis of aggregate contributions made by 
such operators iinder the applicable 1988 coal wage agree-
ments as of January 31,1993. 
"(2) 1ST PLAN YEAR.—In the case of the plan year of the 
Combined Fund beginning February 1,1993— 
"(A) the premiums under subsections (aXD and (a)(3) 
shall be 67 percent of such premiums without regard to 
this paragraph, and 
(B) the premiums under subsection (a) shall be paid 
as provided in subsection (g). 
"(3) STARTUP COSTS.—The 1950 UMWA Benefit Plan and 
the 1974 UMWA Benefit Plan shall pay the costs of the Com-
bined Fund incurred before February 1, 1993. For purposes 
of this section, such costs shall be treated as administrative 
expenses incurred for the plan year beginning February 1, 
1993. 
•^EC. 9705. TRANSFERS. 
"(a) TRANSFER OF ASSETS FROM 1950 UMWA PENSION PLAN.— 
"(1) IN GENERAL.—From the funds reserved under para-
graph (2), the board of trustees of the 1950 UMWA Pension 
Plan shall transfer to the Combined Fund— 
"(A) $70,000,000 on February 1,1993, 
"(B) $70,000,000 on October 1,1993, and 
"(C) $70,000,000 on October 1,1994. 
"(2) RESERVATION.—Immediately upon the enactment date, 
the board of trustees of the 1950 UMWA Pension Plan shall 
segregate $210,000,000 from the general assets of the plan. 
Such funds shall be held in the plan until disbursed pursuant 
to paragraph (1). Any interest on such funds shall be deposited 
into the general assets of the 1950 UMWA Pension Plan. 
"(3) USE OF FUNDS.—^Amounts transferred to the Combined 
Fund under paragraph (1) shall— 
"(A) in tiie case of the transfer on February 1, 1993, 
be used to proportionately reduce the premium of each 
assigned operator under section 9704(a) for the plan year 
of the Fund beginning February 1,1993, and 
"(B) in the case of any other such transfer, be used 
to proportionately reduce the unassigned beneficiary pre-
mium under section 9704(aX3) and the death benefit pre-
mium under section 9704(a)(2) of each assigned operator 
for the plan year in which transferred and for any subse-
quent plan year in which such fluids remain available. 
Such fUnds may not be used to pay any amoimts required 
to be paid by the 1988 agreement operators under section 
9704(iXlXB). 
"(4) TAX TREATMENT; VALIDITY OF TRANSFER.— 
"(A) No DEDUCTION.—No deduction shall be allowed 
under this title vdth respect to any transfer pursuant to 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3047 
paragraph (1), but such transfer shall not adversely affect 
the deductibility (under applicable provisions of this title) 
of contributions previously made by employers, or amounts 
hereafter contributed by employers, to the 1950 UMWA 
Pension Plan, the 1950 UMWA Benefit Plan, the 1974 
UMWA Pension Plan, the 1974 UMWA Benefit Plan, the 
1992 UMWA Benefit Plan, or the Combined Fund. 
"(B) OTHER TAX PROVisiONS.^Any transfer pursuant 
to paragraph (1)— 
"(i) shall not be treated as an employer reversion 
from a qualified plan for purposes of section 4980, 
and 
"(ii) shall not be includible in the gross income 
of any employer maintaining the 1950 UMWA Pension 
Plan. 
**(5) TREATMENT OF TRANSFER.—^Any transfer pursuant to 
paragraph (1) shall not be deemed to violate, or to be prohibited 
by, any provision of law, or to cause the settlors, joint board 
of trustees, employers or any related person to incur or be 
subject to liability, taxes, fines, or penalties of any kind whatso-
ever. 
"(b) TRANSFERS FROM ABANDONED MINE RECLAMATION FUND.— 
"(1) IN GENERAL.—The Combined Fund shall include any 
amount transferred to the Fund under section 402(h) of the 
Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 
1232(h)). 
"(2) USE OF FUNDS.—^Any amount transferred under para-
graph (1) for any fiscal year shall be used to proportionately 
reduce the unassigned beneficiary premium under section 
9704(aX3) of each assigned operator for the plan year in which 
transferred. 
<«£€. 9706. ASSIGNMENT OF EUGIBLE BENEFICIARIES. 
"(a) IN GENERAL.—^For purposes of this chapter, the Secretary 
of Health and Human Services shall, before October 1, 1993, assign 
each coal industry retiree who is an eligible beneficiary to a signa-
tory operator which (or any related person with respect to which) 
remains in business in the following order: 
"(1) First, to the signatory operator which— 
"(A) was a signatory to the 1978 coal wage agreement 
or any subsequent coal wage agreement, and 
"(B) was the most recent signatory operator to employ 
the coal industry retiree in the coal industry for at least 
2 years. 
"(2) Second, if the retiree is not assigned under paragraph 
(1), to the signatory operator which— 
"(A) was a signatory to the 1978 coal wage agreement 
or any subsequent coal wage agreement, and 
"(B) was the most recent signatory operator to employ 
the coal industry retiree in the coal industry. 
"(3) Third, if the retiree is not assigned under paragraph 
(1) or (2), to the signatory operator which employed the coal 
industry retiree in the coal industry for a longer period of 
time than any other signatory operator prior to the effective 
date of the 1978 coal wage agreement. 
"(b) RULES RELATING TO EMPLOYMENT AND REASSIGNMENT 
UPON PURCHASE.—For purposes of subsection (a)— 
106 STAT. 3048 
PUBLIC LAW 102-486—OCT. 24, 1992 
"(1) AGGREGATION RULES.— 
"(A) I^LATED PERSON.—^Any employment of a coal 
industry retiree in the coal industry by a signatory operator 
shall be treated as employment by any related persons 
to such operator. 
"(B) 
CERTAIN EMPLOYMENT DISREGARDED.—Employ-
ment with— 
"(i) a person which is (and all related persons 
with respect to which are) no longer in business, or 
"(ii) a person during a period during which such 
person was not a signatory to a coal wage agreement, 
shall not be taken into account. 
"(2) REASSIGNMENT UPON PURCHASE.—If a person becomes 
a successor of an assigned operator after the enactment date, 
the assigned operator may transfer the assignment of an eligible 
beneficiary under subsection (a) to such successor, and such 
successor shall be treated as the assigned operator with respect 
to such eligible beneficiary for purposes of this chapter. Not-
withstanding the preceding sentence, the assigned operator 
transferring such assignment (and any related person) shall 
remain the guarantor of the benefits provided to the eligible 
beneficiary imder this chapter. An assigned operator shall 
notify the trustees of the Combined Fund of any transfer 
described in this paragraph. 
"(c) IDENTIFICATION OF ELIGIBLE BENEFICIARIES.—The 
1950 
UMWA Benefit Plan and the 1974 UMWA Benefit Plan shall, 
by the later of October 1, 1992, or the twentieth day after the 
enactment date, provide to the Secretary of Health and Human 
Services a list of the names and social security account numbers 
of each eligible beneficiary, including each deceased eligible bene-
ficiary if any other individual is an eligible beneficiary by reason 
of a relationship to such deceased eligible beneficiary. In addition, 
the plans shall provide, where ascertainable from plan records, 
the names of all persons described in subsection (a) with respect 
to any eligible beneficiary or deceased eligible beneficiary. 
"(d) COOPERATION BY OTHER AGENCIES AND PERSONS.— 
"(1) COOPERATION.—^The head of any department, agency, 
or instrumentality of the United States shall cooperate fully 
and promptly with the Secretary of Health and Human Services 
in providing information which will enable the Secretary to 
carry out his responsibilities under this section. 
"(2) PROVIDING OF INFORMATION.— 
"(A) IN GENERAL.—^Notwithstanding any other provi-
sion of law, including section 6103, the head of any other 
agency, department, or instrumentality shall, upon receiv-
ing a written request from the Secretary of Health and 
Human Services in connection with this section, cause a 
search to be made of the files and records maintained 
by such agency, department, or instrumentality with a 
view to determining whether the information requested 
is contained in such files or records. The Secretary shall 
be advised whether the search disclosed the information 
requested, and, if so, such information shall be promptly 
transmitted to the Secretary, except that if the disclosure 
of any requested information would contravene national 
policy or security interests of the United States, or the 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3049 
confidentiality of census data, the information shall not 
be transmitted and the Secretary shall be so advised. 
"(B) LIMITATION.—Any information provided under 
subparagraph (A) shall be limited to information necessary 
for the Secretary to carry out his duties under this section. 
"(3) TRUSTEES.—The trustees of the Combined Fund, the 
1950 UMWA Benefit Plan, the 1974 UMWA Benefit Plan, the 
1950 UMWA Pension Plan, and the 1974 UMWA Pension Plan 
shall fully and promptly cooperate with the Secretary in fur-
nishing, or assisting the Secretary to obtain, any information 
the Secretary needs to carry out the Secretary's responsibilities 
under this section. 
"(e) NOTICE BY SECRETARY.— 
"(1) NOTICE TO FUND.—The Secretary of Health and Human 
Services shall advise the trustees of the Combined Fund of 
the name of each person identified under this section as an 
assigned operator, and the names and social security account 
numbers of eligible beneficiaries with respect to whom he is 
identified. 
"(2) OTHER NOTICE.—^The Secretary of Health and Human 
Services shall notify each assigned operator of the names and 
social security account numbers of eligible beneficiaries who 
have been assigned to such person under this section and 
a brief summary of the facts related to the basis for such 
assignments. 
"(f) RECONSIDERATION BY SECRETARY.— 
"(1) IN GENERAL.—^Any assigned operator receiving a notice 
under subsection (e)(2) with respect to an eligible beneficiary 
may, within 30 days of receipt of such notice, request from 
the Secretary of Health and Human Services detailed informa-
tion as to the work history of the beneficiary and the basis 
of the assignment. 
"(2) REVIEW.—^An assigned operator may, within 30 days 
of receipt of the information under paragraph (1), request 
review of the assignment. The Secretary of Health and Human 
Services shall conduct such review if the Secretary finds the 
operator provided evidence with the request constituting a 
prima facie case of error. 
"(3) RESULTS OF REVIEW.— 
"(A) ERROR.—If the Secretary of Health and Human 
Services determines under a review under paragraph (2) 
that an assignment was in error— 
"(i) the Secretary shall notify the assigned operator 
and the trustees of the Combined Fund and the trust-
ees shall reduce the premiums of the operator under 
section 9704 by (or if there are no such premiums, 
repay) all premiums paid under section 9704 with 
respect to the eligible beneficiary, and 
"(ii) the Secretary shall review the beneficiary's 
record for reassignment under subsection (a). 
"(B) No ERROR.—If the Secretary of Health and Human 
Services determines under a review conducted under para-
graph (2) that no error occurred, the Secretary shall notify 
the assigned operator. 
"(4) DETERMINATIONS.—^Any determination by the Secretary 
of Health and Human Services under paragraph (2) or (3) 
shall be final. 
106 STAT. 3050 
PUBLIC LAW 102-486—OCT. 24, 1992 
"(5) PAYMENT PENDING REViEW.^An assigned operator shall 
§ay the premiums under section 9704 pending review by the 
ecretary of Health and Hiunan Services or by a court under 
this subsection. 
"(6) PRIVATE ACTIONS.—Nothing in this section shall pre-
clude the right of any person to bring a separate civil action 
against another person for responsibility for assigned pre-
miimis, notwithstanding any prior decision by the Secretary. 
"(g) CONFIDENTIALITY OF INFORMATION.—Any person to which 
information is provided by the Secretary of Health and Human 
Services under this section shall not disclose such information 
except in any proceedings related to this section. Any civil or 
criminal penalty which is applicable to an unauthorized disclosure 
xmder section 6103 shall apply to any unauthorized disclosure under 
this section. 
"PART III—ENFORCEMENT 
"Sec. 9707. Failure to pay premium. 
"SEC. 9707. FAILURE TO PAY PREMIUM. 
"(a) GENERAL RULE.—^There is hereby imposed a penalty on 
the failure of any assigned operator to pay any premium required 
to be paid under section 9704 with respect to any eligible bene-
ficiary. 
"(b) AMOUNT OF PENALTY.—^The amount of the penalty imposed 
by subsection (a) on any failure with respect to any eligible bene-
ficiary shall be $100 per day in the noncompliance period with 
respect to any such failure. 
"(c) NONCOMPLIANCE PERIOD.—For purposes of this section, 
the term 'noncompliance period' means, with respect to any failure 
to pay any premium or installment thereof, the period— 
"(1) beginning on the due date for such premium or install-
ment, and 
"(2) ending on the date of payment of such premium or 
installment. 
"(d) LIMITATIONS ON AMOUNT OF PENALTY.— 
"(1) IN GENERAL.—^No penalty shall be imposed by sub-
section (a) on any failure during any period for which it is 
established to the satisfaction of the Secretary of the Treasury 
that none of the persons responsible for such failure knew, 
or exercising reasonable diligence, would have known, that 
such failure existed. 
"(2) CORRECTIONS.—^No penalty shall be imposed by sub-
section (a) on any failure i
f
— 
"(A) such failure was due to reasonable cause and 
not to willful neglect, and 
"(B) such failure is corrected during the 30-day period 
< 
beginning on the 1st date that any of the persons respon-
sible for such failure knew, or exercising reasonable dili-
gence would have known, that such failure existed. 
"(3) WAIVER.—In the case of a failure that is due to reason-
able cause and not to willful neglect, the Secretary of the 
Treasury may waive all or part of the penalty imposed by 
subsection (a) for failures to the extent that the Secretanr 
determines, in his sole discretion, that the payment of sucn 
penalty would be excessive relative to the failure involved. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3051 
"(e) LIABILITY FOR PENALTY.—The person failing to meet the 
requirements of section 9704 shall be liable for the penalty imposed 
by subsection (a). 
"(f) TREATMENT.—For purposes of this title, the penalty imposed 
by this section shall be treated in the same manner as the tax 
imposed by section 4980B. 
"PART IV—OTHER PROVISIONS 
"Sec. 9708. Effect on pending claims or obligations. 
^^EC. 9708. EFFECT ON PENDING CLAIMS OR OBUGATIONS. 
"All liabili^ for contributions to the Combined Fund that arises 
on and after February 1, 1993, shall be determined exclusively 
under this chapter, including all liability for contributions to the 
1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan for 
coal production on and after February 1, 1993. However, nothing 
in this chapter is intended to have any effect on any claims or 
obligations arising in connection with the 1950 UMWA Benefit 
Plan and the 1974 UMWA Benefit Plan as of February 1, 1993, 
including claims or obligations based on the 'evergreen' clause found 
in the language of the 1950 UMWA Benefit Plan and the 1974 
UMWA Benefit Plan. This chapter shall not be construed to affect 
any rights of subrogation of any 1988 agreement operator with 
respect to contributions due to the 1950 UMWA Benefit Plan or 
the 1974 UMWA Benefit Plan as of February 1,1993. 
^Subchapter C—^Health Benefits of Certain Miners 
"Part I—Individual employer plans 
Tart 11—1992 UMWA Wefif plan 
"PART I—INDIVIDUAL EMPLOYER PLANS 
"Sec. 9711. Continued obligations of individual employer plans. 
•^EC. 9711. CONTINUED OBUGATIONS 
OF INDIVIDUAL 
EMPLOYER 
PLANS. 
"(a) COVERAGE OF CURRENT RECIPIENTS.—The last signatory 
operator of any individual who, as of February 1, 1993, is receiving 
retiree health benefits from an individual employer plan maintained 
pursuant to a 1978 or subsequent coal wage agreement shall con-
tinue to provide health benefits coverage to such individual and 
the individual's eligible beneficiaries which is substantially the 
same as (and subject to all the limitations of) the coverage provided 
by such plan as of January 1, 1992. Such coverage shall continue 
to be provided for as long as the last signatory operator (and 
any related person) remains in business. 
"(b) COVERAGE OF ELIGIBLE RECIPIENTS.— 
"(1) IN GENERAL.—^The last signatory operator of any 
individual who, as of February 1, 1993, is not receiving retiree 
health benefits under the individual employer plan maintained 
by the last signatory operator pursuant to a 1978 or subsequent 
coal wage agreement, out has met the age and service require-
ments for eligibility to receive benefits under such plan as 
of such date, shall, at such time as such individual becomes 
eligible to receive benefits under such plan, provide health 
benefits coverage to such individual and the individual's eligible 
beneficiaries which is described in paragraph (2). This para-
106 STAT. 3052 
PUBLIC LAW 102-486—OCT. 24, 1992 
graph shall not apply to £iny individual who retired from the 
coal industry after September 30, 1994, or any eligible bene-
ficiary of such individual. 
"(2) COVERAGE.—Subject to the provisions of subsection 
(d), health benefits coverage is described in this paragraph 
if it is substantially the same as (and subject to all the limita-
tions of) the coverage provided by the individual employer 
plan as of January 1, 1992. Such coverage shall continue for 
as long as the last signatory operator (and any related person) 
remains in business. 
"(c) JOINT AND SEVERAL LIABILITY OF RELATED PERSONS.— 
Each related person of a last signatory operator to which subsection 
(a) or (b) applies shall be jointly and severally liable with the 
last signatory operator for the provision of health care coverage 
described in subsection (a) or (b). 
"(d) MANAGED CARE AND COST CONTAINMENT.—The last signa-
tory operator shall not be treated as failing to meet the require-
ments of subsection (a) or (b) if benefits are provided to eligible 
beneficiaries under managed care and cost containment rules and 
procedures described in section 9712(c) or agreed to by the last 
signatory operator and the United Mine Workers of America. 
"(e) TREATMENT OF NONCOVERED EMPLOYEES.—^The existence, 
level, and duration of benefits provided to former employees of 
a last signatory operator (and their eligible beneficiaries) who are 
not otherwise covered by this chapter and who are (or were) covered 
by a coal wage agreement shall only be determined by, and shall 
be subject to, collective bargaining, lawful unilateral action, or 
other applicable law. 
"(f) ELIGIBLE BENEFICIARY.—For purposes of this section, the 
term 'eligible beneficiary* means any individual who is eligible 
for health benefits under a plan described in subsection (a) or 
(b) by reason of the individual's relationship with the retiree 
described in such subsection (or to an individual who, based on 
service and employment history at the time of death, would have 
been so described but for such death). 
"(g) RULES APPLICABLE TO THIS PART AND PART XL-For pur-
poses of this part and part II— 
"(1) SUCCESSOR.—The term 'last signatory operator' shall 
include a successor in interest of such operator. 
"(2) REASSIGNMENT UPON PURCHASE.—If a person becomes 
a successor of a last signatory operator after the enactment 
date, the last signatory operator may transfer any liability 
of such operator under this chapter with respect to an eligible 
beneficiary to such successor, and such successor shall be treat-
ed as the last signatory operator with respect to such eligible 
beneficiary for purposes of this chapter. Notwithstanding the 
preceding sentence, the last signatory operator transferring 
such assignment (and any related person) shall remain the 
guarantor of the benefits provided to the eligible beneficiary 
under this chapter. A last signatory operator shall notify the 
trustees of the 1992 UMWA Benefit Plan of any transfer 
described in this paragraph. 
"PART 11—1992 UMWA BENEFIT PLAN 
"Sec. 9712. Establishment and coverage of 1992 UMWA Benefit Plan. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3053 
"SEC. 9712. ESTABUSHMENT AND COVERAGE OF 1992 UMWA BENEFIT 
PLAN. 
"(a) CREATION OF PLAN.— 
"(1) IN GENERAL.—As soon as practicable £ifter the enact-
ment date, the settlors shall create a separate private plan 
which shall be known as the United Mine Workers of America 
1992 Benefit Plan. For purposes of this title, the 1992 UMWA 
Benefit Plan shall be treated as an organization exempt from 
taxation under section 501(a). The settlors shall be responsible 
for designing the structure, administration and terms of the 
1992 UMWA Benefit Plan, and for appointment and removal 
of the members of the board of trustees. The board of trustees 
shall initially consist of five members and shall thereafter 
be the number set by the settlors. 
"(2) TREATMENT OF PLAN.—The 1992 UMWA Benefit Plan 
shall be— 
"(A) a plan described in section 302(c)(5) of the Labor 
Management Relations Act, 1947 (29 U.S.C. 186(c)(5)), 
"(B) an employee welfare benefit plan within the mean-
ing of section 3(1) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1002(1)), and 
"(C) a multiemployer plan within the meaning of sec-
tion 3(37) of such Act (29 U.S.C. 1002(37)). 
"(b) COVERAGE REQUIREMENT.— 
"(1) IN GENERAL.—The 1992 UMWA Benefit Plan shall 
only provide health benefits coverage to any eligible beneficiary 
who is not eligible for benefits under the Combined Fund and 
shall not provide such coverage to any other individual. 
"(2) ELIGIBLE BENEFICIARY.—For purposes of this section, 
the term 'eligible beneficiary* means an individual who— 
"(A) but for the enactment of this chapter, would be 
eligible to receive benefits from the 1950 UMWA Benefit 
Plan or the 1974 UMWA Benefit Plan, based upon age 
and service earned as of February 1, 1993; or 
"(B) with respect to whom coverage is required to be 
provided under section 9711, but who does not receive 
such coverage from the applicable last signatory operator 
or any related person, 
and any individual who is eligible for benefits by reason of 
a relationship to an individual described in subparagraph (A) 
or (B). In no event shall the 1992 UMWA Benefit Plan provide 
health benefits coverage to any eligible beneficiary who is a 
coal industry retiree who retired from the coal industry after 
September 30, 1994, or any beneficiary of such individual. 
**(c) HEALTH BENEFITS 
"(1) IN GENERAL.*—The 1992 UMWA Benefit Plan shall 
provide health care benefits coverage to each eligible beneficiary 
which is substantially the same as (and subject to all the 
limitations of) coverage provided under the 1950 UMWA Benefit 
Plan and the 1974 UMWA Benefit Plan as of January 1, 1992. 
"(2) MANAGED CARE.—The 1992 UMWA Benefit Plan shall 
develop managed care and cost containment rules which shall 
be applicable to the payment of benefits under this subsection. 
Application of such rules shall not cause the plan to be treated 
as failing to meet the requirements of this subsection. Such 
rules shall preserve freedom of choice while reinforcing man-
aged care network use by allowing a point of service decision 
106 STAT. 3054 
PUBLIC LAW 102-486—OCT. 24, 1992 
as to whether a network medical provider will be used. Migor 
elements of such rules may include, but are not limited to, 
elements described in paragraph (3). 
"(3) MAJOR ELEMENTS OF RULES.—Elements described in 
this parc^aph are— 
'^A) implementing formulary for drugs £uid subjecting 
the prescription program to a rigorous review of appropriate 
use, 
"(B) obtaining a unit price discount in exchange for 
patient volume and preferred provider status with the 
amoimt of the potential discount varying by geographic 
region, 
"(C) limiting benefit payments to physicians to the 
allowable charge under title XVIII of the Social Security 
Act, while protecting beneficiaries from balance billing by 
providers, 
"(D) utilizing, in the claims payment fimction 'appro-
priateness of service' protocols under title XVIII of the 
Social Security Act if more stringent, 
**(£) creating mandatory utilization review (UR) proce-
dures, but placing the responsibility to follow such proce-
dures on the physician or hospital, not the beneficiaries, 
"(F) selectmg the most efficient phvsicians and state-
of-the-art utilization management techniques, including 
ambulatory care techniques, for medical services delivered 
by the managed care network, and 
"(G) utilizing a managed care network provider system, 
as practiced in the health care industry, at the time medical 
services are needed (point-of-service) in order to receive 
maximimi benefits available under this subsection. 
"(4) LAST SIGNATORY OPERATORS.—The board of trustees 
of the 1992 UMWA Benefit Plan shall permit any last signatory 
operator required to maintain an individual employer plan 
imder section 9711 to utilize the managed care and cost contain-
ment rules and programs developed under this subsection if 
the ojperator elects to do so. 
(5) STANDARDS OF QUALITY.—^Any managed care system 
or cost containment adopted by the board of trustees of the 
1992 UMWA Benefit Plan or by a last signatory operator may 
not be implemented unless it is approved by, and meets the 
standards of quality adopted by, a medical peer review panel, 
which has been established— 
"(A) by the settlors, or 
"(B) by the United Mine Workers of America and a 
last signatory operator or group of operators. 
Standards of quality shall include accessibility to medical care, 
taking into account that accessibility requirements may differ 
depending on the nature of the medical need. 
"(d) GUARANTEE OF BENEFITS.-
"(1) IN GENERAL.—All 1988 last signatory operators shall 
be responsible for financing the benefits described in subsection 
(c), in accordance with contribution requirements established 
in the 1992 UMWA Benefit Plan. Such contribution require-
ments, which shall be applied uniformly to each 1988 last 
signatory operator, on the basis of the number of eligible and 
potentially eligible beneficiaries attributable to each operator, 
shall include: 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3055 
"(A) the payment of an annual prefunding premium 
for all eligible and potentially eligible beneficiaries attrib-
utable to a 1988 last signatory operator, 
"(B) the payment of a monthly per beneficiary premium 
by each 1988 last signatory operator for each eligible bene-
ficiary of such operator who is described in subsection 
(b)(2) and who is receiving benefits under the 1992 UMWA 
Benefit Plan, and 
"(C) the provision of security (in the form of a bond, 
letter of credit or cash escrow) in an amount equal to 
a portion of the projected future cost to the 1992 UMWA 
Benefit Plan of providing health benefits for eligible and 
{>otentially eligible beneficiaries attributable to the 1988 
ast signatory operator. If a 1988 last signatory operator 
is unable to provide the security required, the 1992 UMWA 
Benefit Plan shall require the operator to pay an annual 
prefunding premium that is greater than the premium 
OtfXl6]TVn.S6 £l,D13lic&.bl6 
"(2) ADJUSTMENTS.—The 1992 UMWA Benefit Plan shall 
provide for— 
"(A) annual adjustments of the per beneficiary pre-
mium to cover changes in the cost of providing benefits 
to eligible beneficiaries, and 
"(B) adjustments as necessary to the annual prefunding 
premium to refiect changes in the cost of providing benefits 
to eligible beneficiaries for whom per beneficiary premiums 
£u*e not paid. 
"(3) ADDITIONAL LIABILITY.—^Any last signatory operator 
who is not a 1988 last signatory operator shall pay the monthly 
per beneficiary premium under paragraph (1)(B) for each 
eUgible beneficiary described in such paragraph attributable 
to that operator. 
"(4) JOINT AND SEVERAL LIABILITY.—A 1988 last signatory 
operator or last signatory operator described in paragraph (3), 
and any related person to any such operator, shall be jointly 
and severally liable with such operator for any amount required 
to be paid by such operator under this section. 
"(5) DEDUCTIBILITY.—^Any premium required by this section 
shall be deductible without regard to any limitation on deduct-
ibility based on the prefunding of health benefits. 
"(6) 1988 LAST SIGNATORY OPERATOR.—For purposes of this 
section, the term '1988 last signatory operator* means a last 
signatory operator which is a 1988 agreement operator. 
^Subchapter D—Other Provisions 
"Sec. 9721. Civil enforcement. 
"Sec. 9722. Sham transactions. 
•^EC. 9721. CIVIL ENFORCEMENT. 
"The provisions of section 4301 of the Employee Retirement 
Income Security Act of 1974 shall apply to any claim arising out 
of an obligation to pay any amount required to be paid by this 
chapter in the same manner as any claim arising out of an obliga-
tion to pay withdrawal liability under subtitle E of title IV of 
such Act. For purposes of the preceding sentence, a signatory opera-
tor and related persons shall be treated in the same manner as 
employers. 
106 STAT. 3056 
PUBLIC LAW 102-486—OCT. 24, 1992 
<«EC. 9722. SHAM TRANSACTIONS. 
"If a principal purpose of any transaction is to evade or avoid 
liability under this chapter, this chapter shall be applied (and 
such liability shall be imposed) without regard to such transaction." 
(b) AMENDMENTS TO SURFACE MINING ACT.— 
(1) EXTENSION OF FEE PROGRAM.—Section 402(b) of the 
Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 
1232(b)) is amended by striking "September 30, 1995" and 
inserting "September 30, 2004". 
(2) TRANSFER TO FUND.—Section 402 of such Act (30 U.S.C. 
1232) is amended by adding at the end the following new 
subsection: 
"(h) TRANSFER OF FUNDS TO COMBINED FUND.—(1) In the case 
of any fiscal year beginning on or after October 1, 1995, with 
respect to which fees are required to be paid under this section, 
the Secretary shall, as of the beginning of such fiscal year and 
before any allocation imder subsection (g), make the transfer pro-
vided in paragraph (2). 
"(2) The Secretary shall transfer from the fund to the United 
Mine Workers of America Combined Benefit Fund established under 
section 9702 of the Internal Revenue Code of 1986 for any fiscal 
year an amount equal to the sum of— 
"(A) the amount of the interest which the Secretary esti-
mates will be earned and paid to the Fund during the fiscal 
year, plus 
"(B) the amount by which the amount described in subpara-
graph (A) is less than $70,000,000. 
"(3)(A) The aggregate amount which may be transferred under 
paragraph (2) for any fiscal year shall not exceed the amount 
of expenditures which the trustees of the Combined Fund estimate 
will be debited against the unassigned beneficiaries premium 
accoimt under section 9704(e) of the Internal Revenue Code of 
1986 for the fiscal year of the Combined Fimd in which the transfer 
is made. 
"(B) The aggregate amoimt which may be transferred under 
paragraph (2)(B) for all fiscal years shall not exceed an amount 
equivalent to all interest earned and paid to the fund after Septem-
ber 30,1992, and before October 1,1995. 
"(4) If, for any fiscal year, the amount transferred is more 
or less than the amount required to be transferred, the Secretary 
shall appropriately adjust the amount transferred for the next 
fiscal year." 
(3) CONFORMING AMENDMENTS.—(A) Section 401(c) of such 
Act (30 U.S.C. 1231(c)) is amended by striking "and" at the 
end of paragraph (11), by redesignating paragraph (12) as para-
graph (13), and by adding after paragraph (11) the following 
new paragraph: 
"(12) for the purpose described in section 402(h); and". 
(B) Section 402(gXl) of such Act (30 U.S.C. 1232(g)) is 
amended by striking "Moneys" and inserting "Except as pro-
vided in subsection (h), moneys". 
PUBLIC LAW 102-486—OCT. 24, 1992 
TITLE XX—GENERAL PROVISIONS; 
REDUCTION OF OIL VULNERABILITY 
106 STAT. 3057 
SEC. 2001. GOALS. 
42 USC 13401. 
It is the goal of the United States in carrying out energy 
supply and energy conservation research and development— 
(1) to strengthen national energy security by reducing 
dependence on imported oil; 
(2) to increase the efficiency of the economy by meeting 
future needs for energy services at the lowest total cost to 
the Nation, including environmental costs, giving comparable 
consideration to technologies that enhance energy supply and 
technologies that improve the efficiency of energy end uses; 
(3) to reduce the air, water, and other environmental 
impacts (including emissions of greenhouse gases) of energy 
production, 
distribution, 
transportation, 
and 
utilization, 
through the development of an environmentally sustainable 
energy system; 
(4) to maintain the technological competitiveness of the 
United States and stimulate economic growth through the 
development of advanced materials and technologies; 
(5) to foster international cooperation by developing inter-
national markets for domestically produced sustainable ener^ 
technologies, and by transferring environmentally sound, 
advanced energy systems and technologies to developing coun-
tries to promote sustainable development; 
(6) to consider the comparative environmental and public 
health impacts of the energy to be produced or saved by the 
specific activities; 
(7) to consider the obstacles inherent in private industry's 
development of new energy technologies and steps necessary 
for establishing or maintaining technological leadership in the 
area of energy and energy efficiency resource technologies; and 
(8) to consider the contribution of a given activity to fun-
damental scientific knowledge. 
Subtitle A—Oil and Gas Supply 
Enhancement 
SEC. 2011. ENHANCED OIL RECOVERY. 
42 USC 13411. 
(a) PROGRAM DIRECTION.—The Secretary shall conduct a 5-
year program, in accordance with sections 3001 and 3002 of this 
Act, on technologies to increase the recoverability of domestic oil 
resources to— 
(1) improve reservoir characterization; 
(2) improve analysis and field verification; 
(3) field test and demonstrate enhanced oil recovery proc-
esses, including advanced processes, in reservoirs the Secretary 
considers to be of high priority, ranked primarily on the basis 
of oil recovery potential and risk of abandonment; 
(4) transfer proven recovery technologies to producers and 
operators of wells, including stripper wells, that would other-
wise be likely to be abandoned in the near term due to declining 
production; 
-194 O—93 
11 : QL 3 (Pt. 4) 
106 STAT. 3058 
PUBLIC LAW 102-486—OCT. 24, 1992 
42 use 13412. 
(5) improve enhanced oil recovery process technology for 
more economic and efficient oil production; 
(6) identify and develop new recovery technologies; 
(7) study reservoir properties and how they affect oil recov-
ery from porous media; 
(8) improve techniques for meeting environmental require-
ments; 
(9) improve data bases of reservoir and environmental 
conditions; and 
(10) lower lifting costs on stripper wells by utilizing 
advanced renewable energy technologies such as small wind 
turbines and others. 
(b) PROGRAM GOALS.— 
(1) NEAR-TERM PRIORITIES.—^The near-term priorities of the 
program include preserving access to high potential reservoirs, 
identifying available technologies that can extend the lifetime 
of wells and of stripper well property, and developing environ-
mental field operations for waste disposal and injection prac-
tices. 
(2) MID-TERM PRIORITIES.—^The mid-term priorities of the 
program include developing and testing identified but unproven 
technologies, and transferring those technologies for widespread 
use. 
(3) LONG-TERM PRIORITIES.—The long-term priorities of the 
program include developing advanced techniques to recover 
oil not recoverable by other techniques. 
(c) ACCELERATED PROGRAM PLAN.—^Within 180 days after the 
date of enactment of this Act, the Secretary shall prepare and 
submit to the Congress a plan for carrying out under this section 
the accelerated field testing of technologies to achieve the priorities 
stated in subsection (b). In preparing the plan, the Secretary shall 
consult with appropriate representatives of industry, institutions 
of higher education. Federal agencies, including national labora-
tories, and professional and technical societies, and with the 
Advisory Board established under section 2302. 
(d) PROPOSALS.—^Within 1 year after the date of enactment 
of this Act, the Secretary shall solicit proposals for conducting 
activities under this section. 
(e) CONSULTATION.—In canying out the provisions of this sec-
tion, the Secretary shall consult representatives of the oil and 
gas industry with respect to innovative research and development 
proposals to improve oil and gas recovery and shall consider rel-
evant technical data from industry and other research and informa-
tion centers and institutes. 
(0 AUTHORIZATION OF APPROPRIATIONS.—^There are authorized 
to be appropriated to the Secretary for carrying out this section, 
including advanced extraction and process technology, $57,250,000 
for fiscal year 1993 and $70,000,000 for fiscal year 1994. 
SEC. 2012. OIL SHALE. 
(a) PROGRAM DIRECTION.—The Secretary shall conduct a 5-
year program, in accordance with sections 3001 and 3002 of this 
Act, on oil shale extraction and conversion, including research and 
development on both eastern and western shales, as provided in 
this section. 
(b) PROGRAM GTOALS.-The goals of the program established 
imder this section include— 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3059 
(1) supporting the development of economically competitive 
and environmentally acceptable technologies to produce domes-
tic supplies of liquid fuels from oil shale; 
(2) increasing knowledge of environmentally acceptable oil 
shale waste disposal technologies and practices; 
(3) increasing knowledge of the chemistry and kinetics 
of oil shale retorting; 
(4) increasing understanding of engineering issues concern-
ing the design and scale-up of oil shale extraction and conver-
sion technologies; 
(5) improving techniques for oil shale mining systems; and 
(6) providing for cooperation with universities and other 
private sector entities. 
(c) EASTERN OIL SHALE PROGRAM.—(1) As part of the program 
authorized by this section, the Secretary shall carry out a program 
on oil shale that includes applied research, in cooperation with 
universities and the private sector, on eastern oil shale that may 
have the potential to decrease United States dependence on energy 
imports. 
(2) As part of the program authorized by this subsection, the 
Secretary shall consider the potential benefits of including in that 
program applied research carried out in cooperation with univer-
sities and other private sector entities that are, as of the date 
of enactment of this Act, engaged in research on eastern oil shale 
retorting and associated processes. 
(3) The program carried out under this subsection shall be 
cost-shared with imiversities and the private sector to the maximum 
extent possible. 
(d) WESTERN OIL SHALE PROGRAM.—AS part of the program 
authorized by this section, the Secretary shall carry out a program 
on extracting oil from western oil shales that includes, if appro-
priate, establishment and utiUzation of at least one field testing 
center for the purpose of testing, evaluating, and developing 
improvements in oil shale technology at the field test level. In 
establishing such a center, the Secretary shall consider sites with 
existing oil shale mining and processing infrastructure and faciU-
ties. Sixty days prior to establishing any such field testing center, Reix>rts. 
the Secretary shall submit a report to Congress on the center 
to be established. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretary for carrying out this section 
$5,250,000 for fiscal year 1993 and $6,000,000 for fiscal year 1994. 
SEC. 2013. NATURAL GAS SUPPLY. 
42 USC 13413. 
(a) PROGRAM DIRECTION.—The Secretary shall conduct a 5-
year program, in accordance with sections 3001 and 3002 of this 
Act, to increase the recoverable natural gas resource base including, 
but not limited to— 
(1) more intensive recovery of natural gas firom discovered 
conventional resources; 
(2) the extraction of natural gas from tight gas sands 
and devonian shales or other unconventional sources; 
(3) surface gasification of coal; and 
(4) recovery of methane firom biofiiels including municipal 
solid waste. 
106 STAT. 3060 
PUBLIC LAW 102-486—OCT. 24, 1992 
(b) PROPOSALS.—Within 1 vear after the date of enactment 
of this Act, the Secretary shall solicit proposals for conducting 
activities under this section. 
(c) CoFiRiNG OF NATURAL G A S AND COAL.— 
(1) PROGRAM.—^The Secretary shall establish and carry out 
a 5-vear program, in accordance with sections 3001 and 3002 
of this Act, on cofiring natural gas with coal in utility and 
large industrial boilers in order to determine optimal natural 
gas injection levels for both environmental and operational 
benefits. 
(2) FINANCIAL ASSISTANCE.—The Secretory shall entor into 
agreemento with, and provide financial assistance to, appro-
priate parties for application of cofiring technologies to boilers 
to demonstrate this technology. 
(3) REPORT TO CONGRESS.—The Secretory shall, before 
December 31, 1995, submit to the Congress a report on the 
progress made in carrying out this subsection. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretory for carrying out this section 
and sections 2014 and 2015, $29,745,000 for fiscal year 1993 and 
$45,000,000 for fiscal year 1994. 
42 use 13414. 
SEC. 2014. NATURAL GAS END-USE TECHNOLOGIES. 
The Secretary shall carry out a 5-year program, in accordance 
with sections 3001 and 3002 of this Act, on new and advanced 
natural gas utilization technologies including, but not limited t o -
ll) stotionary source emissions control and efficiency 
improvemente including combustion systems, industrial proc-
esses, cogeneration, and waste fuels; and 
(2) natural gas storage including increased deliverabiUty 
from existing gas storage facilities and new capabiUties for 
storage near demand centers, and on-site storage at msyor 
energy consuming facilities. 
42 use 13415. 
SEC. 2015. MIDCONTINENT ENERGY RESEARCH CENTER. 
(a) FINDING.—Congress finds that petroleum resources in the 
midcontinent region oftJie United Stotes are very large but are 
beine prematurely abandoned. 
(b) PURPOSES.—^The purjposes of this section are to— 
(1) improve the efficiency of petroleum recovery; 
(2) increase ultimate petroleum recovery; and 
(3) delay the abandonment of resources. 
(c) 
ESTABUSHMENT.—The 
Secretory 
may 
estoblish 
the 
Midcontinent Energy Research Center (referred to in this section 
as the "Center") to— 
(1) conduct research in petroleum geology and engineering 
focused on improving the recovery of petroleum from existing 
fields and estoblished plays in the upper midcontinent region 
of the United Stotes; and 
(2) ensure that the resulto of the research described in 
paragraph (1) are transferred 
to 
users. 
(d) RESEARCH.— 
(1) IN G
E
N
E
R
A
L
.
—
^
I
n conducting research under this section, 
the Centor shall, 
to 
the extent practicable, cooperate with agen-
cies of the Federal Government, the Stotes in the midcontinent 
region of the United Stotes, and the afiected industry. 
(2) PROGRAMS.—Research programs conducted by the Cen-
ter may include— 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3061 
(A) data base development and transfer of technology; 
(B) reservoir management; 
(C) reservoir characterization; 
(D) advanced recovery methods; and 
(E) development of new technology. 
Subtitle B—Oil and Gas Demand 
Reduction and Substitution 
SEC. 2021. GENERAL TRANSPORTATION. 
42 USC 13431. 
(a) PROGRAM DIRECTION.—The Secretary shall conduct a 5-
year program, in accordance with sections 3001 and 3002 of this 
Act, on cost effective technologies to reduce the demand for oil 
in the transportation sector for all motor vehicles, including existing 
vehicles, through increased energy efficiency and the use of 
alternative fuels. Such program snail include a broad range of 
technological approaches, and shall include field demonstrations 
of sufficient scale and number in operating environments to prove 
technical and economic viability to meet the goals stated in section 
2001. Such program shall include the activities required imder 
sections 2022 through 2027, and ongoing activities of a similar 
nature at the Department of Energy. 
(b) PROGRAM PLAN.—Within 180 days after the date of enact-
ment of this Act, the Secretary shall prepare and submit to the 
Congress a 5-year program plan to guide activities imder this 
subtitle. In preparing the program plan, the Secretary shall consult 
with appropriate representatives of industry, utilities, institutions 
of higher education. Federal agencies, including national labora-
tories, and professional and technical societies. 
(c) PROPOSALS.—^Within 1 year after the date of enactment 
of this Act, the Secretary shall solicit proposals for conducting 
activities under this section. 
(d) DEFINITION.—^For purposes of this subtitle, the term 
''alternative fuels" includes natural gas, liquefied petroleum gas, 
hydrogen, fuels other than alcohol that are derived from biological 
materials, and any fuel the content of which is at least 85 percent 
by volume methanol, ethanol, or other alcohol. 
(e) AUTHORIZATION OF APPROPRIATIONS.—(1) There are author-
ized to be appropriated to the Secretary for carrying out this sub-
title, including all transportation sector energy 
conservation 
research and development (other than activities under section 2025) 
and all transportation sector biofuels energy systems under solar 
energy, $119,144,000 for fiscal year 1993 and $160,000,000 for 
fiscal year 1994. 
(2) There are authorized to be appropriated to the Secretary 
for carrying out section 2025— 
(A) $60,300,000 for fiscal year 1993; 
(B) $75,000,000 for fiscal year 1994; 
(C) $80,000,000 for fiscal year 1995; 
(D) $80,000,000 for fiscal year 1996; 
(E) $90,000,000 for fiscal year 1997; and 
(F) $100,000,000 for fiscal year 1998. 
SEC. 2022. ADVANCED AUTOMOTIVE FUEL ECONOMY. 
42 USC 13432. 
(a) PROGRAM DIRECTION.—^The Secretary shall conduct a pro-
gram, in accordance with sections 3001 and 3002 of this Act, to 
106 STAT. 3062 
PUBLIC LAW 102-486—OCT. 24, 1992 
supplement ongoing research activities of a similar nature at the 
Depcurtment of Energy, to accelerate the near-term and mid-term 
development of advanced technologies to improve the fuel economy 
of li^ht-dut^ passenger vehicles powered by a piston engine, and 
hybrid vehicles powered by a combination of piston engine and 
electric motor. 
(b) PROGRAM GOAL.—^The goal of the program established under 
subsection (a) shall be to stimulate the development of emerging 
technologies with the potential to achieve significant improvements 
in fuel economy while reducing emissions of air pollutants. 
(c) PROPOSALS.—^Within 1 vear after the date of enactment 
of this Act, the Secretarjr shall solicit proposals for conducting 
activities under this section, making a special effort to involve 
small businesses in the progrcun. 
42 use 13433. 
SEC. 2023. ALTERNATIVE FUEL VEHICLE PROGRAM. 
(a) PROGRAM DIRECTION.—^The Secretary shall carry out a pro-
gram, in accordance with sections 3001 and 3002 of this Act, on 
techniques related to improving natural gas and other alternative 
fuel venicle technology, including— 
(1) Aiel injection; 
(2) carburetion; 
(3) manifolding; 
(4) combustion; 
(5) power optimization; 
(6) efficiency; 
(7) lubricants and detergents; 
(8) engine durability; 
(9) ignition, including fuel additives to assist ignition; 
(10) multifiiel engines; 
(11) emissions control, including catalysts; 
(12) novel gas compression concepts; 
(13) advanced storage systems; 
(14) advanced gaseous fueling technologies; and 
(15) Uie incorporation of advanced materials in these areas. 
(b) COOPERATIVE AGREEMENTS A
N
D ASSISTANCE.—The Secretary 
may enter into cooperative agreements with, and provide financial 
assistance to, pubUc or private entities willing to provide 50 percent 
of the costs of a program to perform activities under subsection 
(a). 
(c) DEFINITIONS.—^For purposes of this section— 
(1) the term ''alternative fuel vehicle" means a motor 
vehicle that operates on alternative fuels; and 
(2) the term "motor vehicle" includes any automobile, truck, 
bus, van, or other on-road or off-road motor vehicle, including 
a boat. 
42 use 13434. 
SEC. 2024. BIOFUELS USER FACIUTY. 
(a) The Secretary shall establish a biofuels user facility to 
expedite industrv adoption of biofuels technologies, including 
production of alconol fuels from biomass. 
(b) The Secretary, through such univeraities and colleges as 
the Secretary determines are qualified, shall establish a program, 
in accordance with sections 3001 and 3002 of this Act, witn respect 
to the production and use of diesel fuels from vegetable oils or 
animal fats. The program shall investigate— 
(1) the economic feasibility of production of oilseed crops 
for biofuels purposes; and 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3063 
(2) the establishment of a mobile small-scale oilseed press-
ing and esterification unit and a stationary small-scale commer-
cial oilseed pressing and esterification unit. 
SEC. 2025. ELECTRIC MOTOR VEHICLES AND ASSOCIATED EQUIP- 42 USC 13435. 
MENT RESEARCH AND DEVELOPMENT. 
(a) GENERAL.—^The Secretary shall conduct, pursuant to the 
Federal Nonnuclear Energy Research and Development Act of 1974 
(42 U.S.C. 5901-5920), a research and development program on 
electric motor vehicles and associated equipment. Such program 
shall be conducted in cooperation with the electric utility industry, 
and automobile industry, battery manufacturers, and such other 
persons as the Secretary considers appropriate. 
(b) COMPREHENSIVE PLAN.—(1) The Secretary shall prepare 
a comprehensive 5-year program plan for carrying out the purposes 
of this section. Such comprehensive plan shall be updated annually 
for a period of not less tnan 10 years after the date of enactment 
of this Act. 
(2) The comprehensive plan under paragraph (1) shall be pre-
P
ared in consultation with the Administrator of^the Environmental 
'rotection Agency, the Secretary of Transportation, the Secretary 
of Commerce, the heads of other appropriate Federal agencies, 
representatives of the electric utility industry, electric motor vehicle 
m£uiufacturers, the United States automobile industry, and such 
other persons as the Secretary considers appropriate. 
(3) The comprehensive plan shall incluae— 
(A) a prioritization of research areas critical to the conmier-
cialization of electric motor vehicles, including advanced battery 
technology; 
(B) the program elements, management structure, and 
activities, including program responsibilities, of Federal 
agencies; 
(C) the program strategies, including technical milestones 
to be achieved toward specific goals during each fiscal year 
of the comprehensive plan for alimsgor activities and projects; 
(D) the estimated costs of individual program elements, 
including estimated costs for each of the liscal years of the 
comprehensive plan for each of the participating Federal agen-
cies; 
(E) a description of the methods of technology transfer; 
(F) a proposal for participation by non-Federal entities 
in the implementation of the comprehensive plan; and 
(G) such other information as the Secretary considers 
appropriate. 
(4) Not later than 180 days after the date of enactment of 
this Act, the Secretary shall transmit the comprehensive plan to 
the Congress. Annual updates shall be submitted to the Congress. 
(c) COOPERATIVE AGREEMENTS.—^The Secretary, consistent with 
the comprehensive plan under subsection (b), may enter into 
cooperative agreements to conduct research and development 
projects with industry in such areas of technology development 
as— 
(1) high efficiency electric power trains, including advanced 
motors, motor controllers, and hybrid power trains for electric 
motor vehicle range improvement; 
(2) light-weight structures for electric motor vehicle weight 
reduction; 
106 STAT. 3064 
PUBLIC LAW 102-486—OCT. 24, 1992 
Regulations. 
(3) advanced batteries with high energy density and power 
density, and improved range or recharging cycles for a given 
unit weight, for electric motor vehicle application; 
(4) hybrid power trains incorporating an electric motor 
and recyclable battery charged by an onboard liquid fuel engine, 
designed to significantly improve fuel economies while 
maintaining acceleration characteristics comparable to a 
conventionally fueled vehicle; 
(5) batteries and fuel cells for electric-hybrid vehicle 
application; 
(6) fuel cells and fuel cell systems for primary electric 
motor vehicle power sources; and 
(7) photovoltaics for use with electric motor vehicles. 
(d) SOLICITATION OF PROPOSALS.—(1) Within one year after 
the date of enactment of this Act, the Secretary shall solicit propos-
als for cooperative agreements for research and development under 
subsection (c). 
(2) Thereafter, the Secretary may solicit additional proposals 
for cooperative agreements under subsection (c) if, in the judgment 
of the Secretary, such cooperative agreements could contribute to 
the development of electric motor vehicles and associated equip-
ment. 
(e) COST-SHARING.—(1) The Secretary shall require at least 
50 percent of the costs directly and specifically related to any 
cooperative agreement under this section, other than a cooperative 
agreement under subsection (j), to be from non-Federal sources. 
Such share may be in the form of cash, personnel, services, equip-
ment, and other resources. 
(2) The Secretary may reduce the amount of costs required 
to be provided by non-Federal sources under paragraph (1), if the 
Secretary determines that the reduction is necessary and 
appropriate— 
(A) considering the technological risks involved in the 
project; and 
(B) in order to meet the objectives of this section. 
(f) DEPLOYMENT.—(1) The Secretary shall conduct a program 
designed to accelerate deployment of advanced battery technologies 
for use with electric motor vehicles. 
(2) In carrving out the program authorized by this subsection, 
the Secretary shall-— 
(A) undertake an inventory and assessment of advanced 
battery technologies and electric motor vehicle technologies and 
the commercial capability of such technologies; and 
(B) develop a Federal industry information exchange pro-
gram to improve the deplovment or use of such technologies, 
which may consist of worksnops, publications, conferences, and 
a data base for use by the public and private sectors. 
(g) DOMESTIC PARTS MANUFACTURERS.—In carrying out this 
section, the Secretary, in consultation with the Secretary of Com-
merce, shall issue regulations to ensure that the procurement 
practices of participating electric motor vehicle and associated 
equipment manufacturers do not discriminate against the United 
States manufacturers of vehicle parts. 
(h) HOLD HARMLESS.—^Nothing in this section shall be construed 
to alter, affect, modi^, or change any activities or agreements 
initiated prior to the date of enactment of this Act with domestic 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3065 
motor vehicle manufacturers through jomt venture or consortium 
agreements regarding batteries for electric motor vehicles. 
(i) CONSULTATION.—The Secretaiy shall consult with the 
Administrator of the Environmental Protection Agency and the 
Secretary of Transportation in carrying out this section. 
2
) FUEL CELLS FOR TRANSPORTATION.—(1) The Secretary shall 
3p and implement a comprehensive program of research, devel-
opment, and demonstration of fuel cells and related systems for 
transportation applications through the establishment of one or 
more cooperative programs among industry, government, and 
research institutions to develop and demonstrate the use of fuel 
cells as the primary power source for private and mass transit 
vehicles and other mobile applications. 
(2) Rese£irch, development, and demonstration activities under 
this subsection shall be designed to incorporate one or more of 
the following priorities: 
(A) TTie potential for near-term to mid-term commercializa-
tion. 
(B) The ability of the systems to use a variety of renewable 
and nonfossil fuels. 
(C) Emission reduction and energy conservation potential. 
(D) The potential to utilize fuel cells and fuel cell systems 
developed under Department of Defense and National Aero-
nautics and Space Administration programs. 
(E) The potential to take maximum practical advantage 
of advances made in electric motor vehicle research, stationary 
source fuel cell research, and other research activities author-
ized by this title. 
(3XA) Research, development, and demonstration projects 
selected by the Secretary under this subsection shall apply to— 
(i) passenger vehicles; 
(ii) vans and utility vehicles; 
(iii) light rail systems and locomotives; 
(iv) trucks, including long-haul trucks, dump trucks, and 
garbage trucks; 
(v) passenger buses; 
(vi) non-chlorofluorocarbon mobile refrigeration systems; 
(vii) marine vessels, including recreational marine engines; 
or 
(viii) mobile engines and power generation, including rec-
reational generators, and industrial and construction equip-
ment. 
(B) The Secretary shall establish programs to undertake 
research, development, and demonstration activities for the applica-
tions listed in clauses (i) through (viii) of subparagraph (A) in 
each of fiscal years 1993, 1994, 1995, and 1996, based on the 
priorities established in paragraph (2), so that by the end of the 
period, research, development, and demonstration activities are 
under way for the appUcations imder each such clause. The initia-
tives authorized and implemented pursuant to this subsection shall 
be in addition to any other fuel cell programs authorized in existing 
law. 
(k) DEFINITIONS.—For purposes of this section— 
(1) the term "advanced battery technology^ means electro-
chemical storage devices and systems, including fuel cells, and 
associated technology necessary to charge, discharge, recharge, 
106 STAT. 3066 
PUBLIC LAW 102-486—OCT. 24, 1992 
or regenerate such devices, for use as a source of power for 
an electric motor vehicle and any other associated equipment; 
(2) the term "associated eauipment" means equipment nec-
essarv for the regeneration, refueling, or recharging of batteries 
or other forms of electric energy used to power an electric 
motor vehicle and, in the case otelectric-hybrid vehicles, such 
term includes nonpetroleum-related equipment necessary for, 
and solely related to, the demonstration of sudi vehicles; 
(3) the term "electric motor vehicle* means a motor vehicle 
primarily powered by an electric motor that draws current 
irom rechargeable storage batteries, fuel cells, photovoltaic 
arravs, or other sources of electric current and may include 
an electric-hybrid vehicle; and 
(4) the term "electric-hybrid vehicle" means vehicle pri-
marily powered by an electric motor that draws current from 
rechargeable storage batteries, fuel cells, or other sources of 
electric current and also relies on a nonelectric source of power 
that also operates on or is capable of operating on a 
nonelectrical source of power. 
42 u s e 13436. 
SEC. 2026. RENEWABLE HYDROGEN ENERGY. 
(a) PROGRAM DIRECTION.—The Secretary shall conduct a 5-
year program, in accordance with sections 3001 and 3002 of this 
Act, on renewable hydrogen energy systems. Such program shall 
be conducted in accordance with the Spark M. Matsimaga Hydrogen 
Research, Development, and Demonstration Act of 1990 (Public 
Law 101--566), to supplement ongoing activities of a similar nature 
at the Department oi Energy, including— 
(1) at least one program to generate hydrogen from renew-
able energy sources; 
(2) atleast one program to assess the feasibility of existing 
natural gas pipelmes carrying hydrogen gas, including 
experimentation if needed, with a goal of determining those 
components of the natural gas distnbution system that would 
have to be modified to carry— 
(A) more than 20 percent hydrogen mixed with natural 
gas; and 
(B) pure hydrogen gas; 
(3) at least one program to develop a hydrogen storage 
system suitable for electric motor vehicles powered by fuel 
cells, with emphasis on— 
(A) improved metal hydride hydrogen storage; 
(B) activated carbon-Based hydrogen storage; 
(C) high pressure compressed hydrogen; or 
(D) other novel hydrogen storage tecnniques; 
(4) at least one program to develop a fuel cell suitable 
to power an electric motor vehicle; and 
(5) such other programs as the Secretary considers nec-
essary to carry out this section. 
(b) PROPOSALS.—^Within 180 days after the date of enactment 
of this Act, the Secretary shall solicit proposals for conducting 
activities under this section. 
42 u s e 13437. 
SEC. 2027. ADVANCED DIESEL EMISSIONS PROGRAM. 
(a) PROGRAM DIRECTION.—^The Secretary shall initiate a 5-year 
program, in accordance with sections 3001 and 3002 of this Act, 
on diesel engine combustion and engine systems, related advanced 
materials, and i^els and lubricants to reduce emissions oxides of 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3067 
nitrogen and particulates. Activities conducted under this program 
shall supplement activities of a similar nature at the Department 
of Enersr. Such program shall include field demonstrations of suffi-
cient scale and number in operating environments to prove technical 
and economic viability to meet the goal stated in subsection (b). 
(b) PROGRAM GOAL.—^The goal of the program established under 
subsection (a) shall be to accelerate the ability of United States 
diesel manufacturers to meet current and future oxides of nitrogen 
and particulate emissions requirements. 
(c) PROGRAM PLAN.—^Within 180 days after the date of enact-
ment of this Act, the Secretary, in consultation with appropriate 
representatives of industry, institutions of higher education. Federal 
agencies, including national laboratories, and professional and tech-
mcal societies, shall prepare and submit to the Congress a 5-
year program plan to guide the activities under this section. Such 
plan shall be included as part of the plan required by section 
2021(b). 
(d) SOLICITATION OF PROPOSALS.—Within 1 year after the date 
of enactment of this Act, the Secretary shall solicit proposals for 
conducting activities consistent with the 5-year program plan. 
SEC. 2028. TELECOMMUTING STUDY. 
42 USC 13438. 
(a) STUDY.—^The Secretary, in consultation with the Secretary 
of Transportation, shall conduct a study of the potential costs and 
benefits to the energy and transportation sectors of telecommuting. 
The study shall include— 
(1) an estimation of the amount and t3rpe of reduction 
of commuting by form of transportation type and numbers 
of commuters; 
(2) an estimation of the potential number of lives saved; 
(3) an estimation of the reduction in environmental pollu-
tion, in consultation with the Environmental Protection Agency; 
(4) an estimation of the amoimt and type of reduction 
of energy use and savings by form of transportation tjrpe; 
and 
(5) an estimation of the social impact of widespread use 
of telecommuting. 
(b) This study shall be completed no more than one himdred 
and eighty days after the date of enactment of this Act. A report. Reports. 
summarizing the results of the study, shall be transmitted to the 
United States House of Representatives and the Committee on 
Energy and Natural Resources of the United States Senate no 
more than sixty days after completion of this study. 
TITLE XXI—ENERGY AND 
ENVIRONMENT 
Subtitle A—^Improved Energy Efficiency 
SEC. 2101. GENERAL mPROVED ENERGY EFFICIENCY. 
(a) PROGRAM DIRECTION.—The Secretary shall conduct a 5-
year program, in accordance with sections 3001 and 3002 of this 
Act, on cost effective technologies to improve ener^ efficiency and 
increase the use of renewable energy in the builmngs, industrial, 
and utility sectors. Such program inall include a broad range of 
42 USC 13451. 
106 STAT. 3068 
PUBLIC LAW 102-486—OCT. 24, 1992 
technological approaches, and shall include field demonstrations 
of sufficient scale and number to prove technical and economic 
viability to meet the goals stated in section 2001. Such program 
shall include the activities required under sections 2102, 2103, 
2104, 2105, 2106, 2107, and 2108 and ongoing activities of a similar 
nature at the Department of Energy. Such program shall also 
include the activities conducted pursuant to the Steel and Alu-
minum Energy Conservation and Technology Competitiveness Act 
of 1988 (Public Law 100-680) and the Department of Energy Metal 
Casting Competitiveness Resecuxh Act of 1990 (Public Law 101-
425). 
(b) PROGRAM GOALS.—^The goals of the program established 
under subsection (a) shall include— 
(1) in the buildings sector— 
(A) to accelerate the development of technologies that 
will increase energy efficiency; 
(B) to increase the use of renewable energy; and 
(C) to reduce environmental impacts; 
(2) in the industrial sector— 
(A) to accelerate the development of technologies that 
will increase energy efficiency in order to improve 
productivity; 
(B) to increase the use of renewable energy; and 
(C) to reduce environmental impacts; and 
(3) in the utiUty sector— 
(A) to accelerate the development of technologies that 
will increase energy efficiency; and 
(B) to increase the use of integrated resource planning. 
(c) PROGRAM PLAN.—Within 180 days after the date of enact-
ment of this Act, the Secretary shall prepare and submit to the 
Congress a 5-year program plan to guide activities under this 
subtitle. In preparing the program plan, the Secretaiy shall consult 
with appropriate representatives of industry, utilities, institutions 
of higher education. Federal agencies, including national labora-
tories, and professional and technical societies. 
(d) PROPOSALS.—^Within 1 year after the date of enactment 
of this Act, the Secretary shall solicit proposals for conducting 
activities under this section. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretaiy for carrying out this subtitle, 
including all building, industry, and utility sectors energy conserva-
tion research and development, and inventions and innovation 
under energy conservation technical and financial assistance, 
$178,250,000 for fiscal year 1993 and $275,000,000 for fiscal year 
1994. 
42 use 13452. 
SEC. 2102. NATURAL GAS AND ELECTRIC HEATING AND COOLING 
TECHNOLOGIES. 
(a) PROGRAM DIRECTION.—(1) The Secretary shall conduct a 
5-year program, in accordance with sections 3001 and 3002 of 
this Act, on energy efficient natural gas and electric heating and 
cooling technologies for residential and commercial buildings. 
(2) The natural gas heating and cooling program shall include 
activities on— 
(A) thermally activated heat pumps, including absorption 
heat pumps and engine-driven heat pumps; and 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3069 
(B) other advanced natural ^as technologies, including fuel 
cells for residential and commercial applications. 
(3) The electric heating and cooling program shall focus on— 
(A) advanced heat pumps; 
(B) thermal storage; and 
(C) advanced electric HVAC (heating, ventilating, and air 
conditioning) and refrigeration systems that utilize replace-
ments for chlorofluorocarbons. 
(b) PROPOSALS.—^Within 180 days after the date of enactment 
of this Act, the Secretary shall solicit proposals for conducting 
activities under this section. 
SEC. 2103. PULP AND PAPER. 
(a) PROGRAM DIRECTION.—The Secretary shall conduct a 5-
year program, in accordance with sections 3001 and 3002 of this 
Act, on advanced pulp and paper technologies. Such program shall 
include activities on e n e r ^ generation technologies, boilers, 
combustion processes, pulpmg processes (excluding de-inking), 
chemical recoveir, causticizing, source reduction processes, and 
other related technologies that can improve the e n e r ^ efficiency 
of, and reduce the adverse environmental impacts o^ pulp and 
papermaking operations. This section does not authorize projects 
mvolving the combustion of waste paper, other than gasincation. 
(b) PROPOSALS.—^Within 180 days after the date of enactment 
of this Act, the Secretary shall solicit proposals for conducting 
activities imder this section. 
SEC. 2104. ADVANCED BUILDINGS FOR 2006. 
(a) PROGRAM DIRECTION.—^The Secretary shall initiate a 5-year 
program, in accordance with sections 3001 and 3002 of this Act, 
to increase building energy efficiency, while maintaining £ifford-
ability, by the year 2005. Such program shall include activities 
on— 
(1) building design, design methods, and construction tech-
niques; 
(2) building materials, including recycled materials, and 
components; 
(3) on-site energy supply conversion systems such as 
photovoltaics; 
(4) automated energy managemt 
systems; 
(5) methods of evaluating performance; and 
(6) insulation products manufactured with nonozone deplet-
ing materials. 
(b) PROPOSALS.— 
(1) SOLICITATION.—Within 1 ye r after the date of enact-
ment of this Act, the Secretary <;hall solicit proposals for 
conducting activities under this section. 
(2) CONTENTS OF PROPOSALS.—Proposals submitted imder 
this subsection shall include and be judged upon— 
(A) evidence of knowledge of current building practices 
in the United States and in other countries; 
(B) an explanation of how the proposal will encourage 
the commercialization of the technologies resulting from 
activities in subsection (a); 
(C) evidence of consideration of collaboration with 
Department of Energy national laboratories; 
(D) evidence of collaboration with relevant industry 
or other groups or organizations; and 
42 UiSC 13453. 
42 use 13454. 
106 STAT. 3070 
PUBLIC LAW 102-486—OCT. 24, 1992 
(E) a demonstration of the ability of the proposers 
to undertake and complete the project proposed. 
42 use 13455. 
SEC. 210S. ELECTRIC DRIVES. 
(a) PROGRAM.—^The Secretary shall conduct a 5-year program, 
in accordance with sections 3001 and 3002 of this Act, to increase 
the efficiency of electric drive technologies, including adjustable 
speed drives, high speed motors, and high efficiency motors. 
(b) PROPOSALS.—^Within 1 year after the date of enactment 
of this Act, the Secretary shall soUcit proposals for projects under 
this section. 
SEC. 2106. STEEL, ALUMINUM, AND METAL RESEARCH. 
(a) STEEL AMENDMENTS.—^The Steel and Aluminimi Energy 
Conservation and Technology Competitiveness Act of 1988 is 
amended— 
15 use 5103. 
(1) in section 4(bX5), by striking "Industrial Programs" 
and inserting in lieu thereof "Industrial Technologies"; 
15 use 5107. 
(2) in section 8, by inserting at the end the following 
new sentence: "The reports submitted at tiie close of fiscal 
years 1993, 1995, and 1997 shall also contain a complete sum-
mary of activities under the management plan and the research 
plan from the first year of their operation, along with an 
analysis of the extent to which they nave succeeded in accom-
plishing the purposes of this Act."; 
15 use 5108. 
(3) in section 9(aXl), by striking "and $25,000,000 for fiscal 
year 1991" and inserting in lieu thereof "$25,000,000 for fiscal 
year 1991, $17,968,000 for fiscal year 1992, and $18,091,000 
for each of the fiscal vears 1993 through 1997, to be derived 
from sums authorized under section 2101(e) of the Energy 
Policy Act of 1992"; 
(4) in section 9(b), by striking "and 1991" and inserting 
m lieu thereof "1991, 1992, 1993, 1994, 1995, 1996, and 1997, 
to be derived from sums otherwise authorized to be appro-
priated to the Institute"; and 
15 use 5110. 
(5) in section 11(a), by striking "or fiscal year 1991" both 
places it appears and inserting in lieu thereof "fiscal year 
1991, fiscal year 1992. fiscal year 1993, fiscal year 1994, fiscal 
year 1995, fiscal year 1996, and fiscal year 1997*. 
(b) METAL CASTING AMENDMENT.—Section 8 of the Department 
of Energy Metal Casting Competitiveness Research Act of 1990 
15 use 5307. 
(Public Law 101-^25) is amended by striking "and 1993" and insert-
ing in lieu thereof "1993, 1994, 1995, 1996, and 1997, to be derived 
from such sums as are otherwise authorized under section 2101(e) 
of the Energy Policy Act of 1992". 
42 use 13456. 
SEC. 2107. IMPROVING EFFICIENCY IN ENERGY-INTENSIVE INDUS-
TRIES. 
(a) SECRETARIAL ACTION.—^The Secretary, in accordance with 
sections 3001 and 3002 of this Act, shall— 
(1) pursue a research, development, demonstration and 
commercial application pro-am intended to improve energy 
efficiency and productivity m energy-intensive industries and 
industrial processes; and 
(2) undertake ioint ventures to encourage the commer-
cialization of technologies developed under paragraph (1). 
(b) JOINT VENTURES.---(1) The Secretary shall—• 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3071 
(A) conduct a competitive solicitation for proposals from 
private firms and investors for such joint ventures under sub-
section (aX2); and 
(B) provide financial assistance to at least five such joint 
ventures. 
(2) The purpose of the joint ventures shall be to design, test, 
and demonstrate changes to industrial processes that will result 
in improved energy efiiciency and productivity. The joint ventures 
may also demonstrate other improvements of benefit to such indus-
tries so long as demonstration of energy efficiency improvements 
is the principal objective of the ioint venture. 
(3) In evaluating proposals for financial assistance and joint 
ventures under this section, the Secretary shall consider— 
(A) whether the activities conducted under this section 
improve the quality and energy efiiciency of industries or indus-
trial processes; 
(B) the regional distribution of the energy-intensive indus-
tries and industrial processes; and 
(C) whether the proposed joint venture project would be 
located in the region which has the energy-intensive industry 
and industrial processes that would benent firom the project. 
SEC. 2108. ENERGY EFFICIENT ENVIRONMENTAL PROGRAM. 
42 USC 13457. 
(a) PROGRAM DIRECTION.—^The Secretary, in consultation with 
the Administrator of the Environmental Protection Agency, is 
authorized to continue to carry out a 5-year program to improve 
the ener^ efficiency and cost efiectiveness of pollution prevention 
technologies and processes, including source reduction and waste 
minimization technologies and processes. The purposes of this sec-
tion shall be to— 
(1) apply a systems approach to minimizing adverse 
environmental effects of industrial production in the most cost 
effective and energy efficient manner; and 
(2) incorporate consideration of the entire materials and 
energy cycle with the goal of minimizing adverse environmental 
impacts. 
(b) IDENTIFICATION OF OPPORTUNITIES.—Within 9 months after 
the date of enactment of this Act, the Secretary, in consultation 
with the Administrator of the Environmental IVotection Agency, 
shall identify opportunities for the demonstration of energy efficient 
pollution prevention technologies and processes. 
(c) REPORT.—^Within 1 year after the date of enactment of 
this Act, the Secretary shall submit a report to Congress evaluating 
the opportunities identified under subsection (b). Such report shall 
include— 
(1) an assessment of the technologies available to increase 
productivitv and simultaneously reduce the consumption of 
energy and material resources and the production of wastes; 
(2) £m assessment of the current use of such technologies 
by industry in the United States; 
(3) the status of any such technologies currently being 
developed, together with projected schedules of their commer-
cial availability; 
(4) the energy savings resulting from the use of such tech-
nologies; 
(5) the environmental benefits of such technologies; 
(6) the costs of such technologies; 
106 STAT. 3072 
PUBLIC LAW 102-486—OCT. 24, 1992 
(7) an evaluation of any existing Federal or State regulatory 
disincentives for the employment of such technologies; and 
(8) an evaluation of any other barriers to the use of such 
technologies. 
In preparing the report required by this subsection, the Secretary 
shall consult with tne Administrator of the Environmental Protec-
tion Agency, any other Federal, State, or local official the Secretary 
considers necessary, representatives of appropriate industries, mem-
bers of organizations formed to further the goals of environmental 
protection or energy efficiency, and other appropriate interested 
members of the public, as determined by the Secretary. 
(d) PROPOSALS.—Within 1 year after the date of enactment 
of this Act, the Secretary, in consultation with the Administrator 
of the Environmental Protection Agency, shall solicit proposals for 
activities imder this section. Proposals selected under this sub-
section shall demonstrate— 
(1) technical viability and cost efTectiveness; and 
(2) procedures for technology transfer and information out-
reach during and after completion of the project. 
Subtitle B—^Electricity Generation and Use 
42 use 13471. 
SEC. 2111. RENEWABLE ENERGY. 
(a) PROGRAM DIRECTION.—^The Secretary shall conduct a com-
prehensive 5-year program, in accordance with sections 3001 and 
3002 of this Act, to provide cost-effective options for the generation 
of electricity from renewable energy sources for grid and nongrid 
application, including field demonstrations of sumcient scale and 
nimiber in operating environments to prove technical and economic 
feasibility for providing cost effective generation and for meeting 
the goal stated in section 2001(3) and section 1602(aX4). 
(b) PROGRAM PLAN.—Within 180 days after the date of enact-
ment of this Act, the Secretary shall prepare and submit to the 
Congress a 5-year program plan to guide the activities under this 
section. In preparing the program plan, the Secretary shall consult 
with appropriate representatives of industry, institutions of higher 
education. Federal agencies, including national laboratories, and 
professional and technical societies. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretary for carrying out this section, 
including all solar energy programs (other than activities imder 
section 2021), geothermal systems, electric energy systems, and 
energy storage systems, $208,975,000 for fiscal year 1993 and 
$275,000,000 for fiscal year 1994. 
42 use 13472. 
SEC. 2112. HIGH EFFICIENCY HEAT ENGINES. 
(a) PROGRAM DIRECTION.—The Secretary shall conduct a 5-
year program, in accordance with sections 3001 and 3002 of this 
Act, to improve the efficiency of heat engines. Such program shall— 
(1) include field demonstrations of siifficient scale and num-
ber so as to demonstrate technical and economic feasibility; 
(2) incorporate materials that increase engine efficiency; 
and 
(3) cover advanced engine designs for electric and industrial 
power generation for a range of small-, mid-, and large-scale 
applications, including— 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3073 
(A) mechanically recuperated gas turbines; 
(B) intercooled gas turbines with steam iivjection or 
recuperation; 
(C) gas turbines utilizing reformed fuels or hydrogen; 
and 
(D) high efficiency, simple cycle gas turbines. 
(b) PROGRAM GOAL.—^The goal of the program established imder 
subsection (a) shall be to develop heat engines that can achieve 
over 50 percent efficiency in the mid-term. 
(c) PROGRAM PLAN.—Within 180 days after the date of enact-
ment of this Act, the Secretary shall prepare and submit to the 
Congress a 5-year program plan, to be included in the plan required 
under section 2101(c), to guide the activities under this section. 
In preparing the program plan, the Secretary shall consult with 
appropriate representatives of industry, institutions of higher edu-
cation. Federal agencies, including the Environmental Protection 
Agency and national laboratories, and professional and technical 
societies. 
(d) PROPOSALS.—^Within 1 vear after the date of enactment 
of this Act, the Secretary shall solicit proposals for conducting 
activities imder this section. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretary for carrying out this section 
such sums as may be necessary to be derived from sums authorized 
imder section 2101(e). 
SEC. 2113. CIVILIAN NUCLEAR WASTE. 
42 USC 13473. 
(a) STUDY.—^The Secretary shall conduct a study of the potential 
for minimizing the volume and toxic lifetime of nuclear waste, 
including an analysis of the viability of existing technologies £ind 
an assessment of the extent of research and development required 
for new technologies. 
(b) PROGRAM.—^Based on the results of the study required under 
subsection (a), the Secretary shall prepare and submit to Congress 
a 5-year program plan for carrying out a program of research 
and development on new technologies for minimizing the volume 
and toxic lifetime of, and thereby mitigating hazards associated 
with, nuclear waste. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretary for carrying out this section 
$4,700,000 for fiscal year 1993 and such sums as may be necessary 
for fiscal year 1994. 
SEC. 2114. FUSION ENERGY. 
42 USC 13474. 
(a) PROGRAM.—The Secretary shall conduct a fusion energy 
5-year program, in accordance with sections 3001 and 3002 of 
this Act, that by the year 2010 will result in a technology dem-
onstration which verines the practicability of commercial electric 
power production. 
(b) PROGRAM GTOALJS.—^The goals of the program established 
under subsection (a) shall include— 
(1) a broad based fusion enei^ program; 
(2) United Statics participation in the Engineering Design 
Activity of the International Thermonuclear Experimental 
Reactor (ITER) pro^n^am and in the related research and tech-
nology development efforts; 
(3) the development of technology for fiision power and 
industrial participation in the development of such technology; 
106 STAT. 3074 
PUBLIC LAW 102-486—OCT. 24, 1992 
(4) the design and construction of a msgor new machine 
for fusion research and technology development consistent with 
paragraphs (2) and (3); and 
(5) research and development for Inertial Confinement 
Fusion Ener^ and development of a Heavy Ion Inertial 
Confinement Fusion experiment. 
(c) MANAGEMENT PLAN.—(1) Within 180 days after the date 
of enactment of this Act, the Secretary shall prepare a comprehen-
sive management plan for the fusion energy program. The plan 
shall include specific program objectives, milestones and schedules 
for technology development, and cost estimates and program 
management resource requirements. 
(2) The plan shall also include a description o
f
— 
(A) United States participation in the Engineering Design 
Activity of ITER, including industrial participation; 
(B) potential United States participation in the construction 
and operation of an ITER facility; and 
(C) the requirements needed to build and test an inertial 
fusion energy reactor for the purpose of power production. 
(3) As part of the plan required under paragraph (1), the 
Secretary shall evaluate the status of international fusion programs 
and evaluate whether the Federeil Government should initiate 
efforts to strengthen existing international cooperative agreements 
in fusion energy or enter into new cooperative agreements to accom-
plish the piuposes of this section. 
(4) The plan shall also evaluate the extent to which university 
or private sector participation is appropriate or necessary in order 
to carry out the purposes of this section. 
(5) Within 1 year after the date of enactment of this Act, 
and every 2 years thereafter, the Secretary shall issue a report 
describing Uie progress made in meeting tne program objectives, 
milestones, and saiedules established in the management plan. 
Each such report shall also describe the organization of the pro-
gram, the personnel assigned and funds committed to the program, 
and expenditures made in carrying out the program objectives. 
The report shall be submitted with uie plan required under section 
2304. 
(d) AUTHOMZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretary for carrying out this section 
$339,710,000 for fiscal year 1993 and $380,000,000 for fiscal year 
1994. 
42 use 13475. 
SEC. 2115. FUEL CELLS. 
(a) PROGRAM DIRECTION.—The Secretary shall conduct a 5-
year pro-am, in accordance with sections 3001 and 3002 of this 
Act, on eiticient and environmentally benign power generation using 
fuel cells. The program mav include activities on molten carbonate, 
solid oxide, including tubular, monolithic, and planar technologies, 
and advanced concepts. 
(b) PROGRAM GOAL.—^The goal of the program established under 
subsection (a) is the development of cost-effective, efHcient, and 
environmentally benign fuel cell systems which will operate on 
fossil fuels in multiple end use sectors. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretary for carrying out this section 
$51,555,000 for fiscal year 1993 and $56,000,000 for fiscal year 
1994. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3075 
SEC. 2116. ENVIRONMENTAL RESTORATION AND WASTE MANAGE- 42 USC 13476. 
MENT PROGRAM. 
(a) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretary for fiscal year 1993 $70,000,000 
for the Fast Flux Test Facility to maintain the operational status 
of the reactor, such sums to be derived from amounts appropriated 
to the Secretary for the environmental restoration and waste 
management program. 
(b) LONG-TERM MISSIONS.—The Secretary shall aggressively 
pursue the development and implementation of long-term missions 
for the Fast Flux Test Facility. Within 6 months after the date Reports. 
of enactment of this Act, the Secretary shall submit to the Congress 
a report on the progress made in carrying out this subsection. 
SEC. 2117. HIGH-TEMPERATURE SUPERCONDUCTIVITY PROGRAM. 
42 USC 13477. 
(a) PROGRAM.—^The Secretary shall carry out a 5-year program, 
in accordance with sections 3001 and 3002 of this Act, on high-
temperature 
superconducting electric power equipment tech-
nologies. Elements of the program shall include, but are not limited 
to— 
(1) activities that address the development of high-tempera-
ture superconducting materials that have increased electrical 
current capacity, which shall be the emphasis of the program 
for the near-term; 
(2) the development of protot3rpes, where appropriate, of 
the major elements of a superconducting electric power system 
such as motors, generators, transmission lines, transformers, 
and magnetic energy storage systems; 
(3) activities tnat will improve the efficiency of materials 
performance of higher temperatures and at all magnetic field 
orientations; 
(4) development of prototypes based on high-temperature 
superconducting wire, that operate at the highest temperature 
possible, and refrigeration systems using cryogenics such as 
nitrogen; 
(5) activities that will assist the private sector with designs 
for more efficient electric power generation and delivery sys-
tems which are cost competitive with conventional energy sys-
tems; and 
(6) development of prototypes that have application in both 
the commercial and defense sectors. 
The Secretary is also encouraged to expedite government, labora-
tory, industry, and university collaborative agreements under exist-
ing mechanisms at the Department of Energy in coordination with 
other Federal agencies. 
(b) AuTiiORiZATiON OF APPROPRIATIONS.—^There are authorized 
to be appropriated to the Secretary for carrying out this section 
$21,900,000 for fiscal year 1993 and such sums as may be necessary 
for subseq^uent fiscal years, to be derived from sums authorized 
under section 2111(c). 
SEC. 2118. ELECTRIC AND MAGNETIC FIELDS RESEARCH AND PUBUC 42 USC 13478. 
INFORMATION DISSEMINATION PROGRAM. 
(a) PROGRAM.—^The Secretary shall, in accordance with this 
section (including the agenda developed under subsection (dXlXA)) 
and within 2 months after the date of the enactment of this Act, 
establish a comprehensive program to— 
106 STAT. 3076 
PUBLIC LAW 102-486—OCT. 24, 1992 
(1) determine whether or not exposure to electric and mag-
netic fields produced by the generation, transmission, and use 
of electric energy affects human health; 
(2) carry out research, development, and demonstration 
with respect to technologies to mitigate any adverse human 
health enects; and 
(3) provide for dissemination of information described in 
subsection (bXD to the public. 
(b) CONTENTS.—The program shall provide for— 
(1) collection, compilation, publication, and dissemination 
of scientifically valid information on— 
(A) possible human health effects of electric and mag-
netic fields', 
(B) the types and extent of human exposure to electric 
and magnetic fields in various occupational and residential 
settings; 
(C) technologies to measure and characterize electric 
and magnetic fields; and 
(D) methods to assess and manage exposure to electric 
and magnetic fields; 
(2XA) research on mechanisms by which electric and mag-
netic fields interact with biological systems; and 
(B) epidemiological research on the possible human health 
effects of electric and magnetic fields; and 
(3) research, development, and demonstration with respect 
to— 
(A) technologies to improve the measurement and 
characterization of electric and magnetic fields; and 
(B) techniques to assess and manage exposure to elec-
tric and magnetic fields. 
(c) ROLE OF THE DIRECTOR.— 
(1) ROLE OF THE DIRECTOR.—The Secretary of Health and 
Hiiman Services, acting through the Director, shall have sole 
responsibility under the program for research on possible 
human health effects of electric and magnetic fields. The Direc-
tor may delegate this responsibility to the extent the Director 
determines appropriate. 
(2) AGREEMENT.—Within 6 months afl^er the date of the 
enactment of this Act, the Secretary shall enter into an agree-
ment with the Secretary of Health and Human Services to 
carry out, through the Director, the information activities under 
subsection (bXlXA) and the research imder subsection (bX2). 
(3) ACTIONS OF THE DIRECTOR.—The actions of the Director 
in carrying out research and information responsibilities under 
this section shall not be subject to approval by the Secretanr. 
(4) TRANSFER OF FUNDS.—^The Secretary is authorized, sub-
ject to appropriations Acts, to transfer funds to the Director 
to carry out the Director's responsibilities under paragraph 
(2). 
(5) REPORT.—The Director shall report, by June 1, 1995, 
and by March 31, 1997, and as appropriate, to the Interagency 
Committee established under subsection (d) and to Congress 
the findings and conclusions of the Director on the extent 
to which exposure to electric and magnetic fields produced 
by the generation, transmission, or use of electric energy affects 
human health. 
(d) INTERAGENCY COMMITTEE.— 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3077 
(1) The President shall, within 2 months after the date Establishment. 
of the enactment of this Act, establish the Electric and Magnetic 
Fields Interagency Committee to— 
(A) develop within 8 months aft«r the date of the 
enactment of this Act a comprehensive agenda for conduct-
ing research, development, and demonstration under the 
program, with particular emphasis on electric and magnetic 
nelds of the 60 nertz frequency; 
(B) develop recommendations, within 8 months after 
the date of the enactment of this Act, for guidelines for 
the coordination of activities of Federal agencies engaged 
in research on human health effects of electric and mag-
netic fields that ensure that such research advances the 
agenda under subparagraph (A) and is not unnecessarily 
duplicative of other research activities; 
(C) develop recommendations, within 8 months after 
the date of the enactment of tlus Act, for mechanisms 
for communication of the results of the program to the 
public, including recommendations on the scope and nature 
of Uie information to be disseminated; and 
(D) monitor, review and periodically evaluate the pro-
gram. 
r2XA) The Interagency Committee shall be composed of 
9 members with 1 member to be appointed from eacn of the 
following: 
(i) The Department of Energy. 
(ii) The National Institute of Environmental Health 
Sciences. 
(iii) The Environmental Protection Agency. 
(iv) The Department of Defense. 
(v) The Occupational Safety and Health Administra-
tion. 
(vi) The National Institute of Standards and Tech-
nology. 
(vii) The Department of Transportation. 
(viii) The Rural Electrification Administration. 
(ix) The Federal Energy Regulatoiy Commission. 
(B) The Interagency Committee shall elect a chairperson 
firom among its members who shall be responsible for ensuring 
that the duties of the Interagency Committee are carried out. 
(C) Agencies that have members on the Interagency 
Committee shall provide appropriate staff to carry out the 
duties of the Interagency Committee. 
(e) ADVISORY COMMITTEE.— 
(1) Not later than 2 months after the date of the enactment 
of this Act, the Secretary of Health and Human Services and 
the Secret£ury shall establish the National Electric and Magnetic 
Fields Advisory Committee in accordance with the Federal 
AdvisoryCommittee Act and this section. 
(2) The Advisory Committee shall make recommendations 
to the Interagency Committee with respect to the duties of 
the Interagency Committee under subsection (dXD and advise 
the Secretary and the Director with respect to the design and 
implementation of the program, including preparation of soUci-
tations for proposals to conduct research under the program. 
(3) Tlie Advisory Committee shall be composed of 10 mem-
bers, chosen firom among experts in possible human health 
106 STAT. 3078 
PUBLIC LAW 102-486—OCT. 24, 1992 
Termination 
date. 
Contracts. 
effects of electric and magnetic fields, experts in the measure-
ment and characterization of electric and magnetic fields, 
experts in the assessment and msuiagement of electric and 
magnetic fields, State regulatory agencies, State health agen-
cies, electric utilities, electric equipment manufacturers, labor 
unions and the public. Five members shall be chosen by the 
Secretary of Health and Human Services in consultation vdth 
the Director, and 5 members shall be chosen by the Secretary. 
(4) The Advisory Committee shall elect a chairperson from 
among its members who shall be responsible for ensuring that 
the duties of the Advisory Committee are carried out. 
(5) The Advisory Committee shall terminate not later than 
December 31,1997. 
(f) FINANCIAL ASSISTANCE.— 
(1) The Secretary and the Director may provide financial 
assistance and enter into contracts to conduct activities under 
the program. 
(2) The Secretary shall solicit contributions 
fi:t)m 
non-Fed-
eral sources to offset at least 50 percent of the total fimding 
for all activities under the program. The Secretary shall adopt 
procedures, including a medianism for collecting contributions, 
that ensures that no contributor of non-Federal funds may 
influence the program. 
(3) The Secretary may not obligate fimds under this section 
in any fiscal year unless fimds received from non-Federal 
sources under paragraph (2) are available to offset at least 
50 percent of the appropriations made under subsection (j) 
for such 
fiscal 
year. 
(4) SOUCITATION AND SELECTION OF PROPOSALS.— 
(A) IN GENERAL.—Within 15 months afi^er the date 
of the enactment of this Act, and as ofi^en thereafi;er as 
appropriate, the Secretary and the Director shall, in con-
sultation with the Interagency Committee, solicit and select 
proposals to conduct activities imder the program. 
(B) 
CONSULTATION WITH ADVISORY COMMITTEE.—In 
preparing solicitations for proposals to conduct activities, 
the Secretary and the Director shall consult with the 
AdvisoryCommittee. 
(C) PEER REVIEW PANELS.—^Before a proposal to conduct 
activities under the program may be selected by the Sec-
retary or the Director, such proposal must be submitted 
to, and evaluated by, at least one scientific and technical 
peer review panel. 
(g) REPORTS.— 
(1) REPORT UPON COMPLETION OF ACTIVITY.—Any person 
who conducts activities under the program shall, upon comple-
tion of the activity, submit to the National Academy of Sciences, 
the Interagency Committee, and the Advisory Committee a 
report summarizing the activities and results thereof. 
(2) REPORT TO INTERAGENCY COMMITTEE AND ADVISORY 
COMMITTEE.—^The Secretary shall enter into appropriate 
arrangements with the National Academy of Sciences under 
which the Academy shall periodically submit to the Interagency 
Conmiittee and the Advisory Committee a report that evaluates 
the research activities under the program. The report shall 
include recommendations to promote uie effective transfer of 
information derived 
firom 
such research projects, including the 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3079 
transfer to representatives of State regulatory agencies, State 
health agencies, electric utilities, electrical equipment manufac-
turers, labor unions, and the public. The Secretary shall be 
responsible for expenses incurred by the Academy in connection 
with the preparation of such reports. 
(3) REPORT TO CONGRESS.—The Interagency Committee, 
in consultation with the Advisory Committee, shall submit to 
the Secretary and the Congress— 
(A) not later than December 31, 1995, a report 
summarizing the progress of the research program estab-
lished under this subsection; and 
(B) not later than September 30, 1997, a final report 
stating the Committee's findings and conclusions on the 
efiTects, if any, of electric and magnetic fields on human 
health and remedial actions, if any, that may be needed 
to minimize any such health effects. 
(h) CONFLICTS OF INTEREST.—The Secretary and the Director 
shall include conflict of interest provisions in any grant or other 
funding provided, or contract entered into, under the research pro-
gram established under this section including provisions— 
(1) that require any person conducting a project under 
such program to disclose any other source of funding received 
by the person to conduct other related projects, including fund-
ing received from consulting on issues relating to electric and 
magnetic fields; and 
(2) that prohibit a person who has been awarded a grant 
or contract under this program from receiving compensation 
beyond expenses for testifying in a court of law as an expert 
on the specific research the person is conducting under such 
grant or contract. 
(i) DEFINITIONS.—For purposes of this section: 
(1) The term "Advisory Committee" means the National 
Electric and Magnetic Fields Advisory Committee established 
imder subsection (e). 
(2) The term "Interagency Committee" means the Electric 
and Magnetic Fields Interagency Committee established under 
subsection (d). 
(3) The term "Director" means the Director of the National 
Institute of Environmental Health Sciences. 
(4) The term "program" means the electric and magnetic 
fields research and public information dissemination program 
established in subsection (a). 
(5) The term "State" means each of the 50 States, the 
District of Columbia, the Commonwealth of Puerto Rico, the 
Commonwealth of the Northern Mariana Islands, Guam, the 
Virgin Islands, American Samoa, the Trust Territory of the 
Pacific Islands, and any other commonwealth, territory, or 
possession of the United States. 
(j) AUTHORIZATION OF APPROPRIATIONS.— 
(1) GENERAL AUTHORIZATION.—There are authorized to be 
appropriated to the Secretary a total of $65,000,000 for the 
period encompassing fiscal years 1993 through 1997 to carry 
out the provisions of this section, except that not more than 
$1,000,000 may be expended in any sucn fiscal year for activi-
ties under subsection (bXD. Any amounts appropriated pursu-
ant to this paragraph shall remain available until expended. 
(2) RESTRICTIONS ON USE OF FUNDS.— 
106 STAT. 3080 
PUBLIC LAW 102-486—OCT. 24, 1992 
(A) ADMINISTRATIVE EXPENSES OF CERTAIN FUNDING 
RECIPIENTS.—Of the total fiinds provided to anv institution 
under this section, the amount of such funds that may 
be used for the administrative inctirect costs of the institu-
tion may not exceed 26 percent of the modified direct 
costs of the project. 
(B) ADMINISTRATIVE EXPENSES OF THE SECRETARY AND 
THE DIRECTOR.—Of the total amount of funds made avail-
able under this section for any fiscal year, not more than 
10 percent of such funds may be used for authorized 
administrative expenses of the Secretary and the Director 
in carrying out this section. 
(C) CONSTRUCTION AND REHABILITATION OF FACILITIES 
AND EQUIPMENT.—Funds made available under this section 
may not be used for the construction or rehabilitation of 
facilities or fixed eqmpment. 
(k) SENSE OF CONGRESS.—It is the sense of the Congress that 
remedial action taken by the Government on electric and ma^etic 
fields, if and as necessary, should be based on, and consistent 
with, scientifically valid research such as the resiilts and findings 
of the research authorized by this Act. 
(1) SUNSET PROVISION.—All authority under this section shall 
expire on December 31,1997. 
Hawaii. 
SEC. 2119. SPARK M. MATSUNAGA RENEWABLE ENERGY AND OCEAN 
42 u s e 13479. 
TECHNOLOGY CENTER. 
(a) FINDINGS.—The Conmress finds that— 
(1) the late Spark M. Matsunaga, United States Senator 
from Hawaii, was a longstanding champion of research and 
development of renewable energy, particularly wind and ocean 
energy, photovoltaics, and hydrogen fuels; 
(2) it was Senator Matsunaga's vision that renewable 
energy could provide a sustained source of non-polluting energy 
and that such forms of alternative energy might ultimately 
be employed in the production of liquid hydrogen as a transpor-
tation fuel and energy storage medium available as an energy 
export; 
(3) Senator Matsunaga also believed that research on other 
aspects of renewable energy and ocean resources, such as 
advanced materials, could be crucial to full development of 
energy storage and conversion systems; and 
(4) Keahole Point, Hawaii is particularly well-suited as 
a site to conduct renewable energy and associated marine 
research. 
(b) PURPOSE.—It is the purpose of this section to establish 
the facilities and equipment located at Keahole Point, Hawaii as 
a cooperative research and development facility, to be known as 
the Spark M. Matsunaga Renewable Energy ana Ocean Technology 
Center. 
(c) ESTABLISHMENT.—^The facilities and equipment located at 
Keahole Point, Hawaii are established as the Spark M. Matsunaga 
Renewable Energy and Ocean Technology Center (in this section 
referred to as the "Center*). 
(d) ADMINISTRATION.—<1) Not later than 180 days after the 
date of enactment of this Act, the Secretary may authorize a 
cooperative agreement with a qualified research institution to 
achninister the Center. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3081 
(2) For the purpose of paragraph (1), a qualified research 
institution is a research institution located in the State of Hawaii 
that has demonstrated competence and will be the lead organization 
in the State in renewable energy and ocean technologies. 
(e) ACTIVITIES.—^The Center may carry out research, develop-
ment, educational, and technology transfer activities on— 
(1) renewable energy; 
(2) energy storage, including the production of hydrogen 
from renewable energy; 
(3) materials applications related to energy and marine 
environments; 
(4) other environmental and ocean research concepts, 
including sea ranching and global climate change; and 
(5) such other matters as the Secretary may direct. 
(f) MATCHING FUNDS.—TO be eligible for Federal funds under 
this section, the Center must provide funding in cash or in kind 
from non-Federal sources for each amount provided by the Sec-
retary. 
(g) AUTHORIZATION.—There is authorized to be appropriated 
to the Secretary for canying out this section such sums as may 
be necessary, to be derived from sums authorized under section 
2111(c). 
Subtitle C—^Advanced Nuclear Reactors 
SEC. 2121. PURPOSES AND DEFINrnONS. 
42 USC 13491. 
(a) PURPOSES.—^The purposes of this subtitle are— 
(1) to require the Secretary to carry out civilian nuclear 
programs in a way that will lead toward the commercial avail-
ability of advanced nuclear reactor technologies; and 
(2) to authorize such activities to further the timely avail-
ability of advanced nuclear reactor technologies, including tech-
nologies that utilize standardized designs or exhibit passive 
safety features. 
(b) DEFINITIONS.—For purposes of this subtitle— 
(1) the term "advanced nuclear reactor technologies" 
means— 
(A) advanced light water reactors that may be commer-
cially available in the near-term, including but not limited 
to mid-sized reactors with passive safety features for the 
generation of commercial electric power from nuclear fis-
sion; and 
(B) other advanced nuclear reactor technologies that 
may require prototype demonstration prior to commercial 
availability in the mid- or long-term, including but not 
limited to high-temperature, gas-cooled reactors and liquid 
metal reactors, for the generation of commercial electric 
power from nuclear fission; 
(2) the term "Commission" means the Nuclear Regulatory 
Commission; 
(3) the term "standardized design" means a design for 
a nuclear power plant that may be utilized for a multiple 
number of units or a multiple number of sites; and 
(4) the term "certification" means approval by the Commis-
sion of a standardized design. 
106 STAT. 3082 
PUBLIC LAW 102-486—OCT. 24, 1992 
42 use 13492. 
SEC. 2122. PROGRAM, GOALS, AND PLAN. 
(a) PROGRAM DIRECTION.—The Secretary shall conduct a pro-
gram to encourage the deployment of advanced nuclear reactor 
technologies that to the maximtun extent practicable-
CD are cost effective in comparison to alternative sources 
of commercial electric power of comparable availability and 
reliability, taking into consideration life cycle environmental 
costs; 
(2) facilitete the design, licensing, construction, and oper-
ation of a nuclear powerplant using a standardized design; 
(3) exhibit enhanced safety features; and 
(4) incorporate features that advance the objectives of the 
Nuclear Non-Proliferation Act of 1978. 
(b) PROGRAM GOALS.—^The goals of the program established 
imder subsection (a) shall include— 
(1) for the near-term— 
(A) to facilitete the completion, by September 30, 1996, 
for certification by the Commission, of stendardized 
advanced light water reactor technology designs that the 
Secretory determines have the characteristics described in 
subsection (a) (1) through (4); 
(B) to facilitete the completion of submissions, by 
September 30, 1996, for preliminary design approvals by 
' 
the Commission of standardized designs for the modular 
high-temperature gas-cooled reactor technology and the liq-
uid metal reactor technology; £uid 
(C) to evaluate by September 30, 1996, actinide bum 
technology to determine if it can reduce the volume of 
long-lived fission byproducts; 
(2) for the mid-term— 
(A) to facilitete increased efficiency of enhanced safety, 
advanced light water reactors to produce electric power 
at the lowest cost to the customer; 
(B) to develop advanced reactor concepte that are pas-
sively safe £ind environmentelly accepteble; and 
(C) to complete necessary research and development 
on high-temperature gas-cooled reactor technology and liq-
uid metal reactor technology to support the selection, by 
September 30, 1998, of one or both of those technologies 
as appropriate for prototype demonstration; and 
(3) for the long-term, to complete research and development 
and demonstration to support the design of advanced reactor 
technologies capable of providing electric power to a utility 
grid as soon as practicable but no later than the year 2010. 
(c) PROGRAM PLAN.—^Within 180 days after the date of enact-
ment of this Act, the Secretory shall prepare and submit to the 
Congress a 5-year program plan to guide the activities under this 
section. The program plan shall include schedule milestones, Fed-
eral funding requiremente, and non-Federal cost sharing require-
mente. In preparing the program plan, the Secretory shall take 
into consideration— 
(1) the need for, and the potontial for future adoption 
by electric utilities or other entities of, advanced nuclear reactor 
technologies that are available, under development, or have 
the potential for being developed, for the generation of energy 
from nuclear fission; 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3083 
(2) how the Federal Grovernment, acting through the Sec-
retary, can be effective in ensuring the availability of such 
technologies when they are needed; 
(3) how the Federal Grovernment can most effectively 
cooperate with the private sector in the accomplishment of 
the goals set forth in subsection (b); and 
(4) potential alternative funding sources for carrying out 
this section. 
In preparing the program plan, the Secretary shall consult with 
appropriate representatives of industry, institutions of higher edu-
cation. Federal agencies, including national laboratories, and profes-
sional and technical societies. The Secretary shall update the 
program plan annually and submit such update to Congress. Each 
such update shall describe any activities that are behind schedule, 
any funding shortfalls, and any other circumstances that might 
affect the ability of the Secretary to meet the goals set forth in 
subsection (b). 
SEC. 2123. COMMERCIALIZATION OF ADVANCED UGHT WATER REAC- 42 USC 13493. 
TOR TECHNOLOGY. 
(a) CERTIFICATION OF DESIGNS.—In order to achieve the goal 
of certification of completed standardized designs by the Commis-
sion by 1996 as set forth in section 2122(b), the Secretary shall 
conduct a 5-year program of technical and financial assistance 
to encourage the development and submission for certification of 
advanced light water reactor designs which, in the judgment of 
the Secretary, can be certified by the Commission by no later 
than the end of fiscal year 1996. 
(b) FIRST-OF-A-KIND ENGINEERING.— 
(1) ESTABLISHMENT OF PROGRAM.—^The Secretary shall con-
duct a program of Federal financial and technical assistance 
for the 
first-of-a-kind 
engineering design of standardized 
commercial nuclear powerpTants which are included, as of the 
date of enactment of this Act, in the Department of Energy's 
program for certification of advanced light water reactor 
designs. 
(2) SELECTION CRITERIA.—In order to be eligible for assist-
ance under this subsection, an entity shall certify to the satis-
faction of the Secretary that— 
(A) the entity, or its members, are bona fide entities 
engaged in the design, engineering, manufacture, construc-
tion, or operation of nuclear reactors; 
(B) the entity, or its members, have the financial 
resources necessary for, and fully intend to pursue the 
design, engineering, manufacture, construction, and oper-
ation in the United States of nuclear power plants through 
completion of construction and into operation; 
(C) the design proposed is scheduled for certification 
by the Commission under the Department of Energy's pro-
gram for certification of light water reactor designs; and 
(D) at least 50 percent of the funding for the project 
shall be obtained from non-Federal sources, and a substan-
tial portion of that non-Federal funding shall be obtained 
from utilities or entities whose primary purpose is the 
production of electrical power for public consumption. 
(3) PROGRAM DOCUMENTS.—The Secretary shall prepare 
and submit to the Congress a program document for each 
106 STAT. 3084 
PUBLIC LAW 102-486—OCT. 24, 1992 
design selected under this subsection, specifying goals and 
objectives, major milestones for achieving those goals and objec-
tives, and the work products to be provided to the Secretary 
or made available for inspection. 
(4) FUNDING LIMITATIONS.—(A) Before entering into an 
agreement with an entity under this subsection, the Secretary 
shall establish a cost ceiling for the contribution of the Federal 
Government for the project, and shall report such cost ceiling 
to the Congress. 
(B) No entity shall receive assistance under this subsection 
for a period greater than 4 years. 
(C) The aggregate funding provided by the Secretary for 
projects under this subsection shall not exceed $100,000,000 
for the period encompassing fiscal years 1993 through 1997. 
(5) STATUS REPORT.—The Secretary shall annually submit 
to the Congress a status report on each project receiving assist-
ance under this subsection. 
42 use 13494. 
SEC. 2124. PROTOTYPE DEMONSTRATION OF ADVANCED NUCLEAR 
REACTOR TECHNOLOGY. 
(a) SOLICITATION OF PROPOSALS.—Within 3 years after the date 
of enactment of this Act, the Secretary shall solicit proposals for 
carrying out the preliminary engineering design of not more than 
2 prototype advanced nuclear reactor technologies developed by 
the Department of Energy, other than advanced light water reactor 
technologies, necessary to support a decision on whether to rec-
ommend construction of a prototype demonstration reactor with 
the characteristics described in section 2123(a). Proposals submitted 
under this subsection shall be for modular design concepts of suffi-
cient size to address requirements related to the certification of 
a standardized design. 
(b) RECOMMENDATION TO CONGRESS.—(1) Not later 
than 
September 30, 1998, the Secretary shall submit to Congress rec-
ommendations on whether to build one or more prototype dem-
onstration reactors under this section. Such recommendations 
shall— 
(A) specify a preferred technology or technologies; 
(B) include detailed information on milestones for construc-
tion and operation; 
(C) include an estimate of the funding requirements; and 
(D) specify the extent and type of non-Federal financial 
support anticipated. 
In developing the recommendations under this paragraph, the Sec-
retary shall provide for public notice and an opportunity for com-
ment, and shall solicit the views of the Commission and other 
parties with technical expertise the Secretary considers useful in 
the development of such recommendations. 
(2) The prototype demonstration program under this section 
shall be carried out to the maximum extent practicable with private 
sector funding. At least 50 percent of the funding for such program 
shall be non-Federal funding. The extent of non-Federal cost sharing 
proposed for any demonstration project shall be a criterion for 
the selection of the project. 
(c) SELECTION OF TECHNOLOGY.—Any technologv selected by 
the Secretary for recommendation for prototype demonstration 
under this section shall to the maximum extent possible exhibit 
the characteristics set forth in section 2123(a). 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3085 
SEC. 2125. REPEALS. 
The Renewable Energy and Energy Efficiency Technology 
Competitiveness Act of 1989 is amended— 
(1) in section 4(cXlXC), by inserting "and" after "Program;"; 
(2) in section 4(cX2XC), by striking "Program; and" and 
inserting in lieu thereof "Program."; 
(3) by striking section 4(cX3); 
(4) in section 5(1XB), by inserting "and" after "program;"; 
(5) in section 5(2XB), by striking "program; and" and insert-
ing in lieu thereof "program."; and 
(6) by striking section 5(3). 
SEC. 2126. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Secretary for 
carrying out this subtitle $212,804,000 for fiscal year 1993 and 
such sums as may be necessary for fiscal year 1994. Amoiuits 
authorized or otherwise made available for program direction, space 
reactor power systems, advanced radioisotope power systems, and 
the space exploration initiative under nuclear energy research and 
development shall be in addition to the amounts authorized in 
the preceding sentence. 
TITLE XXII—ENERGY AND ECONOMIC 
GROWTH 
42 u s e 12003. 
42 use 12004. 
42 use 13495. 
SEC. 2201. NATIONAL ADVANCED MATERIALS INITIATIVE. 
42 use 13501. 
(a) PROGRAM DIRECTION.—The Secretary shall estabhsh a 5- Establishment. 
year National Advanced Materials Program, in accordance with 
sections 3001 and 3002 of this Act. Such program shall foster 
the commercialization of techniques for processing, synthesizing, 
fabricating, and maniifacturing advanced materials and associated 
components. At a minimum, the Program shall expedite the private 
sector deplo3niient of advanced materials for use in high perform-
ance energy efficient and renewable energy technologies in the 
industrial, transportation, and buildings sectors that can foster 
economic growth and competitiveness. The Program shall include 
field demonstrations of sumcient scale and number to prove tech-
nical and economic feasibility. 
(b) PROGRAM PLAN.—^Within 180 days after the date of enact-
ment of this Act, the Secretary, in consultation with appropriate 
representatives of industry, institutions of higher education, Depart-
ment of Energy national laboratories, and professional and technical 
societies, shall prei>are and submit to the Congress a 5-year program 
plan to guide activities under this section. The Secretary shall 
biennially update and resubmit the program plan to Congress. 
(c) PROPOSALS.— 
(1) SOLICITATION.—^Within 1 year after the date of enact-
ment of this Act, the Secretary shall solicit proposals for 
conducting activities consistent with the 5-year program plan. 
Such proposals may be submitted by one or more parties. 
(2) CONTENTS OF PROPOSALS.—Proposals submitted under 
this subsection shall include— 
(A) an explanation of how the proposal will expedite 
the commercialization of advanced materials in energy effi-
ciency or renewable energy in the near-term to mid-term; 
106 STAT. 3086 
PUBLIC LAW 102-486—OCT. 24, 1992 
(B) evidence of consideration of whether the unique 
capabilities of Department of Energy national laboratories 
warrants collaboration with such laboratories, and the 
extent of such collaboration proposed; 
(C) a description of the extent to which the proposal 
includes collaboration with relevant industry or other 
groups or organizations; and 
(D) evidence of the ability of the proposers to undertake 
and complete the proposed project. 
(d) GENERAL SERVICES ADMINISTRATION DEMONSTRATION PRO-
GRAM.—^The Secretary, in consultation with the Administrator of 
General Services, shall establish a program to expedite the use, 
in goods and services acquired by the General Services Administra-
tion, of advanced materials technologies. Such program shall include 
a demonstration of the use of advanced materials technologies as 
may be necessary to establish technical and economic feasibility. 
The Secretary shall transfer funds to the General Services Adminis-
tration for carrying out this subsection. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretary for carrying out this section 
such sums as may be necessary, to be derived for energy efficient 
applications from section 2101(e) and for renewable applications 
from section 2111(c), including Department of Energy national lab-
oratory participation in proposals submitted under subsection (c), 
and including transferring funds to the General Services Adminis-
tration. 
42 USE 13502. 
SEC. 2202. NATIONAL ADVANCED MANUFACTURING TECHNOLOGIES 
INITIATIVE. 
(a) PROGRAM DIRECTION.—The Secretary shall establish a 5-
year National Advanced Manufacturing Technologies Program, in 
accordance with sections 3001 and 3002 of this Act. Such program 
shall foster the commercialization of advanced manxifacturing tech-
nologies to improve energy efficiency and productivity in manufac-
turing. At a minimum, the Program shall expedite the private 
sector deployment of advanced manufacturing technologies to 
improve productivity, quality, and control in manufacturing proc-
esses that can foster economic growth, energy efficiency, and 
competitiveness. The program shall include field demonstrations 
of sufficient scale and number to prove technical and economic 
feasibility. 
(b) PROGRAM PLAN.—Within 180 days after the date of enact-
ment of this Act, the Secretary, in consultation with appropriate 
representatives of industry, institutions of higher education. Depart-
ment of Energy national laboratories, and professional and technical 
societies, s h ^ prepare and submit to the Congress a 5-year program 
plan to guide activities under this section. The Secretary shall 
biennially update and resubmit the program plan to Congress. 
(c) PROPOSALS.— 
(1) SOLICITATION.—^Within 1 year after the date of enact-
ment of this Act, the Secretary shall solicit proposals for 
conducting activities consistent with the 5-year program plan. 
Such proposals may be submitted by one or more parties. 
(2) CONTENTS OF PROPOSALS.—^Proposals submitted under 
this subsection shall include— 
(A) an explanation of how the proposal will expedite 
the commerciaUzation of advanced manufacturing tech-
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3087 
nologies to improve energy efficiency in the building, indus-
try, and transportation sectors; 
(B) evidence of consideration of whether the unique 
capabilities of Department of Energy national laboratories 
warrants collaboration with such laboratories, and the 
extent of such collaboration proposed; 
(C) a description of the extent to which the proposal 
includes collaboration with relevant industry or other 
groups or organizations; and 
(D) evidence of the ability of the proposers to undertake 
and complete the proposed project. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretary for carrying out this section 
such sums as may be necessary, to be derived from sums authorized 
under section 2101(e), including Department of Energy national 
laboratory participation in proposals submitted under subsection 
(0. 
SEC. 2203. SUPPORTING RESEARCH AND TECHNICAL ANALYSIS. 
42 USC 13503. 
(a) BASIC ENERGY SCIENCES.— 
(1) PROGRAM DIRECTION.—The Secretary shall continue to 
support a vigorous program of basic energy sciences to provide 
basic research support for the development of energy tech-
nologies. Such program shall focus on the efficient production 
and use of energy, and the expansion of our knowledge of 
materials, chemistry, geology, and other related areas of 
advancing technology development. 
(2) USER FACILITIES.—(A) As part of the program referred 
to in paragraph (1), the Secretary shall carry out planning, 
construction, and operation of user facilities to provide special 
scientific and research capabilities, including technical expertise 
and support as appropriate, to serve the research needs of 
our Nation's universities, industry, private laboratories. Federal 
laboratories, and others. Research institutions or individuals 
from other nations shall be accommodated at such user facilities 
in cases where reciprocal accommodations are provided to 
United States research institutions and individuals or where 
the Secretary considers such accommodation to be in the 
national interest. 
(B) The construction of the Advanced Photon Source at 
the Argonne National Laboratory is hereby authorized. 
(C) The Secretary shall not change the user fee practice 
in effect as of October 1, 1991, with respect to user facilities 
unless the Secretary notifies Congress 90 days before the effec-
tive date of any change. 
(D) The Secretary shall expedite the design for construction 
of the Advanced Neutron Source at the Oak Ridge National 
Laboratory, in order to provide critical research capabilities 
in support of our national research initiatives for advanced 
materials and biotechnology, as well as a broad range of 
research. Such action shall be consistent with the Basic Energy 
Sciences Advisory Committee's Technical Evaluation of accel-
erator and reactor neutron source technologies. Within 90 days 
after the date of enactment of this Act, the Secretary shall 
submit to the Congress a plan for such design, including a 
schedule for construction. 
106 STAT. 3088 
PUBLIC LAW 102-486—OCT. 24, 1992 
(3) COST SHARING.—^The Secretary shall not require cost 
sharing for research and development pursuant to this sub-
section, except— 
(A) as otherwise provided for in cooperative research 
and development agreements or other agreements entered 
into under existing law; 
(B) for fees for user facilities, as determined by the 
Secretary; or 
(C) in the case of specific projects, where the Secretary 
determines that the benefits of such research and develop-
ment accrue to a specific industry or group of industries, 
in which case cost sharing under section 3002 of this Act 
shall apply. 
(b) UNIVERSITY AND SCIENCE EDUCATION.—(1) The Secretary 
shall support programs for improvements and upgrading of univer-
sity research reactors and associated instrumentation and equip-
Reports. 
ment. Within 1 year after the date of enactment of this Act, the 
Secretary shall submit to the Congress a report on the condition 
and status of university research reactors, which includes a 5-
year plan for upgrading and improving such facilities, instrumenta-
tion capabilities, and related equipment. 
(2) The Secretary shall develop a method to evaluate the 
effectiveness of science and mathematics education programs pro-
vided by the Department of Energy and its laboratories, including 
specific evaluation criteria. 
(3XAXi) The Director of the Office of Energy Research shall 
operate an Experimental Program to Stimulate 
Competitive 
Research (in this paragraph referred to as "EPSCoR") as part 
of the Department of Energ3^s University and Science Education 
Programs. 
(ii) The objectives of EPSCoR shall be— 
(I) to enhance the competitiveness of the peer-review proc-
ess within academic institutions in eligible States; and 
(II) to increase the probability of long-term growth of 
competitive funding to investigators at institutions from eligible 
States. 
(iii) In order to carry out the objectives stated in clause (ii), 
EPSCoR shall provide for activities which may include (but not 
be 
Umited to) competitive 
research 
awards 
and 
graduate 
traineeships. 
(iv) EPSCoR shall assist those States that— 
(I) historically have received relatively little Federal 
research and development funding; and 
(II) have demonstrated a commitment to develop their 
research bases and improve science and engineering research 
and education programs at their imiversities and colleges. 
(B) For purposes of this paragraph, the term "eligible States" 
means States tnat received a Department-EPSCoR planning or 
traineeship grant in fiscal year 1991 or fiscal year 1992. 
(C) No more than $5,000,000 of the funds appropriated to 
EPSCoR in any fiscal year, through fiscal year 1997, are authorized 
to be appropriated for graduate traineeships. 
(c) TECHNOLOGY 'ITlANSFER.—The Secretary shall support tech-
nology transfer activities conducted by the National Laboratories. 
Reports. 
Within 1 year after the date of enactment of this Act, the Secretary 
shall submit to the Congress a report on the adequacy of fimding 
for such activities, along with a proposal recommending ways to 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3089 
reduce the length of time required to consiunmate cooperative 
research and development agreements. 
(d) FACILITIES SUPPORT FOR MULTIPROGRAM ENERGY LABORA-
TORIES.— 
(1) FACILITY POLICY.—The Secretary shall develop and 
implement a least cost strategy for correcting facility problems, 
closing unneeded facilities, making facility modifications, and 
building new facilities at multiprogram energy laboratories. 
(2) FACILITY PLAN.—Within 1 year after the date of enact-
ment of this Act, the Secretary shall prepare and submit to 
the Congress a comprehensive plan for conducting future facil-
ity maintenance, making repairs, modifications, and new addi-
tions, and constructing new facilities at multipro^am e n e r ^ 
laboratories. Such plan shall provide for facilities work in 
accordance with the following priorities, listed in descending 
order of priority: 
(A) Providing for the safety and health of employees, 
visitors, and the general public with regard to correcting 
existing structural, mechanical, electrical, and environ-
mental deficiencies. 
(B) Providing for the repair and rehabilitation of exist-
ing facilities to keep them in use and prevent deterioration. 
(C) Providing engineering design and construction serv-
ices for those facilities which require modification or addi-
tions in order to meet the needs of new or expanded 
programs. 
Such plan shall include plans for new facilities and facility 
modifications which will be required to meet the Department 
of Energy's changing missions of the twenty-first century, 
including schedules and estimates for implementation, and 
including a section outlining long-term funding requirements 
consistent with anticipated budgets and annual authorization 
of appropriations. Such plan shall address the coordination 
of modernization and consolidation of facilities in order to meet 
changing mission requirements, and shall provide for annual 
reports to Congress on accomplishments, conformance to sched-
ules, commitments, and expenditures. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretary for Supporting Research and 
Technical Analysis, including Basic Energy Sciences, Energy 
Research Analysis, University and Science Education, Technology 
Transfer, Advisory and Oversight Program Direction, and Facilities 
Support for Multiprogram Energy Laboratories, $966,804,000 for 
fiscal year 1993 and such sums as may be necessary for fiscal 
year 1994. 
SEC. 2204. MATH AND SCIENCE EDUCATION PROGRAM. 
42 USC 13504. 
(a) PROGRAM.—^The Secretory shall enter into contracts with Contracts, 
existing qualified entities to conduct science and mathematics edu-
cation programs that supplement the Special Programs for Students 
from Disadvantaged Backgroimds carried out by the Secretory of 
Education under sections 417A through 417F of Public Law 89-
329, as amended (20 U.S.C. 1070d through 1070d-ld). 
(b) PURPOSE.—(1) The purpose of the programs shall be to 
provide support to Federal, Stote, and private programs designed 
to promote the participation of low-income and first generation 
college students as defined in section 417A of Public Law 89-
59-194 O—93 
12:QL3(Pt. 4) 
106 STAT. 3090 
PUBLIC LAW 102-486—OCT. 24, 1992 
329, as amended (20 U.S.C. 1070d-d), in post-secondary science 
and mathematics education. 
(2) Support activities may include— 
(A) the development of educational materials; 
(B) the training of teachers and counselors; 
(C) the establishment of student internships; 
(D) the development of seminars on mathematics and 
science; 
(E) tutoring in mathematics and science; 
(F) academic coimseling; 
(G) the development of opportunities for research; and 
(H) such other activities that may promote the participation 
of low-income and first generation college students in post-
secondary science and mathematics education. 
(c) SUPPORT.—(1) In carrying out the purpose of this section, 
the entities may provide support under subsection (bX2) to— 
(A) low-income and first generation college students; and 
(B) institutions of higher education, public and private 
agencies and organizations, and secondary and middle schools 
that principally benefit low-income students. 
(2) The qualified entities shall, to the extent practicable, coordi-
nate support activities under this section with the Secretary of 
Education and the Secretary. 
(d) COOPERATION WITH QUALIFIED ENTITIES.—The Secretary 
shall cooperate with qualified entities and, to the extent practicable, 
make available to the entities such personnel, facilities, and other 
resources of the Department of Energy as may be necessary to 
carry out the duties of the entities. 
(e) REPORT.—^Not later than October 1 of each year, the entities 
shall report to the Secretary, the Secretary of Education, and the 
Congress on— 
(1) progress made to promote the participation of low-
income and first generation college students in post-secondary 
science and mathematics education by— 
(A) the qualified entities; 
(B) other mathematics and science education programs 
of the Department of Energy; and 
(C) the Special Programs for Students from Disadvan-
taged Backgrounds of the Department of Education; and 
(2) recommendations for such additional actions as may 
be needed to promote the participation of low-income students 
in post-secondary science and maUiematics education. 
(f) EFFECT ON EXISTING PROGRAMS.—The programs in this sec-
tion shall supplement and be developed in cooperation with the 
current mathematics and science education programs of the Depart-
ment of Energy and the Department of Education but shtdl not 
supplant them. 
(g) DEFINITION.—^For purposes of this section, the term "quali-
fied entity" means a nonprofit corporation, association, or institution 
that has demonstrated special knowledge of, and experience with, 
the education of low-income and first generation college students 
and whose primary mission is the operation of national programs 
that focus on low-income students and provide training and other 
services to educators. 
(h) AUTHORIZATION.—^There are authorized to be appropriated 
such sums as may be necessary, to be derived from section 2203(e) 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3091 
and the Environmental Restoration and Waste Management pro-
gram, to carry out the purposes of this section. 
SEC. 2205. INTEGRATION OF RESEARCH AND DEVELOPMENT. 
Within 180 days after the date of enactment of this Act, the 
Secretary, in consultation with appropriate representatives of indus-
try, institutions of higher education. Department of Energy national 
laboratories, £Uid professional and technical societies, shall prepare 
and submit to Congress a 5-year program plan for improving the 
integration of basic energy research programs with other energy 
programs within the Department of Energy. Such program plan 
shall include— 
(1) an evaluation of current procedures and mechanisms 
used to achieve such integration; 
(2) an assessment of the role that the Department of Energy 
national laboratories play in such integration; 
(3) an identification and evaluation of models that could 
enhance such integration; 
(4) an identification and evaluation of new programs, 
mechanisms, and related policy options that could improve 
the integrating process, including— 
(A) set aside funding for matching or leveraging basic 
and applied programs; 
(B) more formal linkages; and 
(C) program coordination; 
(5) recommendations for expanded research and develop-
ment and new technology areas; and 
(6) budget estimates for activities under this section. 
SEC. 2206. DEFINITIONS. 
For purposes of this title— 
(1) the term "advanced manufacturing technology" means 
processes, equipment, techniques, practices, and capabilities 
that are applied for the purpose of— 
(A) improving the productivity, quality, or energy effi-
ciency of the design, development, testing, or manufacture 
of a product; or 
(B) expanding the technical capability to design, 
develop, test, or manufacture a product that is fundamen-
tally different in character from existing products and that 
will result in improved energy efficiency; 
(2) the term "advanced materials" means materials that 
are processed, synthesized, fabricated, and manufactured to 
develop high performance properties that exceed the cor-
responding properties of conventional materials for structural, 
electronic, magnetic, or photonic applications, or for joining, 
welding, bonding, or packaging components into complex assem-
blies, including— 
(A) advanced monolithic materials such as metals, 
ceramics, and polymers; 
(B) advanced composite materials such as metal matrix 
(including intermetallics), polymer matrix, ceramic matrix, 
continuous fiber ceramic composite, and carbon matrix 
composites; and 
(C) advanced electronic, magnetic, and photonic mate-
rials, 
including 
superconducting, 
semiconductor, 
electrooptic, magnetooptic, thin-film, and special purpose 
42 u s e 13505. 
42 use 13506. 
106 STAT. 3092 
PUBLIC LAW 102-486—OCT. 24, 1992 
coating materials used in technologies for energy efficiency, 
renewable energy, or electric power applications; and 
(3) the term "United States means the 50 States of the 
United States, the District of Columbia, the Commonwealth 
of Puerto Rico, the United States Virgin Islands, Guam, the 
Northern Mariana Islands, and any other territory or possession 
of the United States. 
TITLE XXIII—POLICY AND 
ADMINISTRATIVE PROVISIONS 
42 use 13521. 
SEC. 2301. POLICY ON MAJOR CONSTRUCTION PROJECTS. 
(a) REPORT AND MANAGEMENT PLAN.—The Secretary shall sub-
mit to the Congress a report and management plan for any major 
construction project involving $100,000,000 or more, prior to the 
expenditure of those funds. 
(b) CONGRESSIONAL REVIEW.—Expenditure of funds for a project 
described in subsection (a) may be made after a period of 30 
calendar days (not including any day on which either House of. 
Congress is not in session because of adjoiimment of more than 
3 calendar days prior to a day certain) has passed after receipt 
of the report and management plan by Congress. 
42 use 13522. 
SEC. 2302. ENERGY RESEARCH, DEVELOPMENT, DEMONSTRATION, 
AND COMMERCIAL APPLICATION ADVISORY BOARD. 
(a) ESTABLISHMENT.—^The Secretary shall establish an Energy 
Research, Development, Demonstration, and Commercial Applica-
tion Advisory Board (hereafter in this section referred to as the 
"Advisory Board"). 
Reports. 
(b) RESPONSIBILITIES.—^The Advisory Board shall provide impar-
tial technical advice to the Secretary to assist in the development 
of energy research, development, demonstration, and commercial 
application plans and reports under sections 6 and 15 of the Federal 
Nonnuclear Energy Research and Development Act of 1974 (42 
U.S.C. 5905 and 5914), under section 801 of the Department of 
Energy Organization Act (42 U.S.C. 7321), and as otherwise pro-
vided in titles XX through XXIII of this Act. The Advisory Board 
shall also periodically review such plans and reports and their 
implementation in relation to the goals stated in section 2001 
of this Act, and report the results of such review to the Secretary 
and the Congress. Such report shall be included as part of the 
report required under section 15 of the Federal Nonnuclear Energy 
Research and Development Act of 1974 (42 U.S.C. 5914). 
(c) USE OF EXISTING ADVISORY BOARD.—The Secretanr may 
use an existing advisory board to carry out the responsibilities 
described in subsection (b). 
SEC. 2303. AMENDMENTS TO EXISTING LAW. 
(a) FEDERAL NONNUCLEAR ENERGY RESEARCH AND DEVELOP-
MENT ACT OF 1974 AMENDMENTS.—Section 6 of the Federal Non-
nuclear Energy Research and Development Act of 1974 (42 U.S.C. 
5905) is amended— 
(1) in subsection (a)— 
• 
(A) by striking "the Administrator" and inserting "the 
Department of Energy Organization Act (42 U.S.C. 7101 
•*• 
et seq.), emd titles XX through XXIII of the Energy Policy 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3093 
Act of 1992, the Secretary, in consultation with the 
Advisory Board established under section 2302 of the 
Energy Policy Act of 1992,"; 
(B) by striking "(to the early 1980's)'' in paragraph 
(1) and inserting "(the period up to 5 years after submission 
of the plan or its annual revision)"; 
(C) by striking "(the early 1980's to 2000)" in paragraph 
(2) and inserting "(the period from 5 years to 10 years 
after submission of the plan or its annual revision)"; and 
(D) by striking "(beyond 2000)" in paragraph (3) and 
inserting "(the period beyond 10 years after submission 
of the plan or its annual revision)"; 
(2) in subsection (b)— 
(A) by striking "Administrator" in paragraphs (1) and 
(2) and inserting "Secretary, in consultation with the 
Advisory Board established under section 2302 of the 
Energy Policy Act of 1992,"; 
(B) by inserting "Such program shall be updated and 
transmitted to the Congress annually as part of the report 
required under section 15." at the end of paragraph (1); 
(C) by striking "(to the early 1980's), middle-term (the 
early 1980's to 2000), and long-term (beyond 2000) time 
intervals" in paragraph (2) and inserting ", middle-term, 
and long-term time intervals described in subsection (aXl) 
through (3)"; 
(D) by striking "and" at the end of paragraph (3)(P); 
(E) by striking the period at the end of paragraph 
(3)(Q) and inserting a semicolon; and 
(F) by adding at the end of paragraph (3) the following 
new subparagraphs: 
"(R) to implement the Renewable Energy and Energy Effi-
ciency Technology Competitiveness Act of 1989 (42 U.S.C. 12001 
et seq.); and 
"(S) to implement titles XX through XXIII of the Energy 
Policy Act of 1992."; and 
(3) in subsection (c)— 
(A) by striking "Administrator" and inserting "Sec-
retary, in consultation with the Advisory Board established 
under section 2302 of the Energy Policy Act of 1992,"; 
and 
(B) by inserting "Such program shall be updated and 
transmitted to the Congress annually as part of the report 
required under section 15." after "and demonstration 
plans.". 
(b) RENEWABLE ENERGY AND ENERGY EFFICIENCY TECHNOLOGY 
COMPETITIVENESS ACT OF 1989 AMENDMENT.—Section 9(bX4) of 
the Renewable Energy and Energy Efficiency Technology Competi-
tiveness Act of 1989 (42 U.S.C. 12006(bX4)) is amended by inserting 
"and the plan developed under section 6 of the Federal Nonnuclear 
Energy Research and Development Act of 1974 (42 U.S.C. 5905)" 
after "(42 U.S.C. 7321)". 
SEC. 2304. MANAGEMENT PLAN. 
42 USC 13523. 
(a) PLAN PREPARATION.—The Secretary, in consultation with 
the Advisory Board established under section 2302, shall prepare 
a management plan for the conduct of research, development, dem-
106 STAT. 3094 
PUBLIC LAW 102-486—OCT. 24, 1992 
onstration, and commercial application of energy technologies that 
is consistent with the goals stated in section 2001. 
(b) CONTENTS OF PLAN.—^The management plan under sub-
section (a) shall provide for— 
(1) investigation of promising energy and energy efficiency 
resource technologies that have been identified as potentially 
significant future contributors to national energy security; 
(2) development of energy and energy efficiency resource 
technologies that have the potential to reduce energy supply 
vulnerability, and to minimize adverse impacts on the environ-
ment, the global climate, and the economy; and 
(3) creation of opportunities for export of energy and energy 
efficiency resource technologies from the United States that 
can enhance the Nation's competitiveness. 
(c) ENERGY TECHNOLOGY INVENTORY AND STATUS REPORT.— 
As part of the management plan, the Secretary, with the advice 
of the Advisory Board established under section 2302 of this Act, 
shall develop an inventory and status report of technologies to 
enhance energy supply and to improve the efficiency of energy 
end uses. The inventory and status report shall include fossil, 
renewable, nuclear, and energy conservation technologies which 
have not yet achieved the status of fully reliable and cost-competi-
tive commercial availability, but which the Secretary projects may 
become available with additional research, development, and dem-
onstration. The inventory and status report shall provide, for each 
technology— 
(1) an assessment of its— 
(A) degree of technological maturity; and 
(B) principal research, development, and demonstration 
issues, including— 
(i) the barriers posed by capital, operating, and 
maintenance costs; 
(ii) technical performance; and 
(iii) potential environmental impacts; 
(2) the projected time frame for commercial availability, 
specifying at a minimum whether the technology will be 
commercially available in the near-term, mid-term, or long-
term, whether there are too many uncertainties to project avail-
ability, or whether it is unlikely that the technology will ever 
be commercial; and 
(3) a projection of the future cost-competitiveness of the 
technology in comparison with alternative technologies to pro-
vide the same energy service. 
(d) PUBLIC COMMENT.—The Secretary shall publish the pro-
posed management plan for a written public comment period of 
at least 90 days. The Secretary shall consider such comments and 
include a summary thereof in the management plan. 
(e) PLAN SUBMISSION.—^Within one year after the date of enact-
ment of this Act, the Secretary shall submit the first management 
plan under this section to Congress. Thereafter, the Secretary shall 
submit a revised management plan biennially, at the time of submit-
tal of the President's annual budget submission to the Congress. 
42 use 13524. 
SEC. 2305. COSTS RELATED TO DECOMMISSIONING AND THE STOR-
AGE AND DISPOSAL OF NUCLEAR WASTE. 
(a) AWARD OF CONTRACTS.— 
. 
. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3095 
(1) PRIME CONTRACTORS,—In awarding contracts to perform 
nuclear hot cell services, the Secretary, in evaluating bids for 
such contracts, shall exclude from consideration costs related 
to the decommissioning of nuclear facilities or the storage and 
disposal of nuclear waste, if— 
(A) one or more of the parties bidding to perform 
such services is a United States company that is subject 
to such costs; and 
(B) one or more of the parties bidding to perform 
such services is a foreign company that is not subject 
to comparable costs. 
(2) SUBCONTRACTORS.—^Any person awarded a contract sub-
ject to the restrictions described in paragraph (1) who sub-
contracts with a person to perform the services described in 
such paragraph shall be subject to the same restrictions in 
evaluating bids 
among potential 
subcontractors, as the 
Secretary was subject to in evaluating bids among prime con-
tractors. 
(b) ISSUANCE OF REGULATIONS.—The Secretary shall issue regu-
lations not later than 90 days after the date of the enactment 
of this Act to carry out the requirements of subsection (a). 
(c) DEFINITIONS.—^As used in this section— 
(1) the term "costs related to decommissioning of nuclear 
facilities" means any cost associated with the compliance with 
regulatory requirements governing the decommissioning of 
nuclear 
facilities 
licensed 
by the Nuclear 
Regulatory 
Commission; 
(2) the term "costs related to storage and disposal of nuclear 
waste" means any costs, whether required by regulation or 
incurred as a matter of prudent business practice, associated 
with the storage or disposal of nuclear waste; 
(3) the term "nuclear hot cell services" means services 
related to the examination of, or performance of various oper-
ations on, nuclear fuel rods, control assemblies, or other compo-
nents that are emitting large quantities of ionizing radiation; 
and 
(4) the term "nuclear waste" means any radioactive waste 
material subject to regulation by the Nuclear Regulatory 
Commission or the Department of Energy. 
SEC. 2306. LIMITS ON PARTICIPATION BY COMPANIES. 
42 USC 13525. 
A company shall be eligible to receive financial assistance under 
titles XX through XXIII of this Act only if— 
(1) the Secretary finds that the company's participation 
in any program under such titles would be in the economic 
interest of the United States, as evidenced by investments 
in the United States in research, development, and manufactur-
ing (including, for example, the manufacture of major compo-
nents or subassemblies in the United States); significant 
contributions to employment in the United States; an agree-
ment with respect to any technology arising from assistance 
provided under this section to promote the manufacture within 
the United States of products resulting from that technology 
(taking into account the goals of promoting the competitiveness 
of United States industry), and to procure parts and materials 
from competitive suppliers; and 
(2) either— 
106 STAT. 3096 
PUBLIC LAW 102-486—OCT. 24, 1992 
(A) the company is a United States-owned company; 
or 
(B) the Secretary finds that the company is incor-
porated in the United States and has a parent company 
which is incorporated in a country which affords to United 
States-owned companies opportunities, comparable to those 
afforded to any other company, to participate in any 
Joint 
venture similar to those authorized under this Act; affords 
to United 
States-owned 
companies 
local 
investment 
opportunities comparable to those afforded to any other 
company; and affords adequate and effective protection for 
the intellectual property rights of United States-owned 
companies. 
42 u s e 13526. 
SEC. 2307. UNCOSTED OBLIGATIONS. 
(a) REPORT.—^Along with the submission of each of the Presi-
dent's annual budget requests to Congress, the Secretary shall 
submit to Congress a report which— 
(1) identifies the amount of Department of Energy funds 
that were, as of the end of the previous fiscal year— 
(A) committed uncosted obligations; and 
(B) uncommitted uncosted obligations; 
(2) specifically describes the purposes for which all such 
funds are intended; and 
(3) explains the effect that information contained in the 
report has had on the annual budget request for the Depart-
ment of Energy being simultaneously submitted. 
(b) DEFINITIONS.—Within 90 days after the date of enactment 
of this Act, the Secretary shall submit a report to the Congress 
containing definitions of the terms "uncosted obligation", "commit-
ted uncosted obligation", and "uncommitted uncosted obligation" 
for purposes of reports to be submitted under subsection (a). 
TITLE XXIV—NON-FEDERAL POWER ACT 
HYDROPOWER PROVISIONS 
SEC. 2401. RIGHTS-OF-WAY ON CERTAIN FEDERAL LANDS. 
Section 501 of the Federal Land Policy and Management Act 
of 1976 (43 U.S.C. 1761) is amended— 
(1) by inserting in subsection (a) after "public lands" the 
following: "(including public lands, as defined in section 103(e) 
of this Act, which are reserved from entry pursuant to section 
24 of the Federal Power Act (16 U.S.C. 818))"; 
(2) in paragraph (4) of subsection (a), by striking "Federal 
Power Commission under the Federal Power Act of 1935 (49 
Stat. 847; 16 U.S.C. 791) and inserting in lieu thereof "Federal 
Energy Regulatory Commission under the Federal Power Act, 
including part 1 thereof (41 Stat. 1063, 16 U.S.C. 791a-825r)."; 
and 
(3) by adding the following new subsection at the end 
thereof: 
"(d) With respect to any project or portion thereof that was 
licensed pursuant to, or granted an exemption from, part I of 
the Federal Power Act which is located on lands subject to a 
reservation under section 24 of the Federal Power Act and which 
did not receive a permit, right-of-way or other approval under 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3097 
this section prior to enactment of this subsection, no such permit, 
right-of-way, or other approval shall be required for continued oper-
ation, including continued operation pursuant to section 15 of the 
Federal Power Act, of such project unless the Commission deter-
mines that such project involves the use of any additional public 
lands or National Forest lands not subject to such reservation.". 
SEC. 2402. DAMS IN NATIONAL PARK SYSTEM UNITS. 
16 USC 797c. 
After the date of enactment of this Act, the Federal Energy 
Regulatory Commission may not issue an original license under 
Part I of the Federal Power Act (nor an exemption from such 
Part) for any new hydroelectric power project located within the 
boundaries of any unit of the National Park System that would 
have a direct adverse effect on Federal lands within any such 
unit. Nothing in this section shall be construed as repealing any 
existing provision of law (or eifTecting any treaty) explicitly authoriz-
ing a hydroelectric power project. 
SEC. 2403. THIRD PARTY CONTRACTING BY FERC. 
16 USC 797d. 
(a) ENVIRONMENTAL IMPACT STATEMENTS.—Where the Federal 
Energy Regulatory Commission is required to prepare a draft or 
final environmental impact statement under the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 and following) in connec-
tion with an application for a license under part I of the Federal 
Power Act, the Commission may permit, at the election of the 
applicant, a contractor, consultant or other person funded by the 
applicant and chosen by the Commission from among a list of 
such individuals or companies determined by the Commission to 
be qualified to do such work, to prepare such statement for the 
Commission. The contractor shall execute a disclosure statement 
prepared by the Commission specifying that it has no financial 
or other interest in the outcome of the project. The Commission 
shall establish the scope of work and procedures to assure that 
the contractor, consultant or other person has no financial or other 
potential conflict of interest in the outcome of the proceeding. Noth-
ing herein shall affect the Commission's responsibility to comply 
with the National Environmental Policy Act of 1969. 
(b) ENVIRONMENTAL ASSESSMENTS.—Where an environmental 
assessment is required under the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 and following) in connection with 
an application for a license imder part I of the Federal Power 
Act, the Commission may permit an applicant, or a contractor, 
consultant or other person selected by the applicant, to prepare 
such environmental assessment. The Commission shall institute 
procedures, including pre-application consultations, to advise poten-
tial applicants of stuaies or other information foreseeably required 
by the Commission. The Commission may allow the filing of such 
applicant-prepared environmental assessments as part of the 
application. Nothing herein shall affect the Commission's respon-
sibility to comply with the National Environmental Policy Act of 
1969. 
(c) EFFECTIVE DATE.—^This section shall take effect with respect 
to license applications filed after the enactment of this Act. 
SEC. 2404. IMPROVEMENT AT EXISTING FEDERAL FACILITIES. 
16 USC 797 note. 
(a) STUDIES OF OPPORTUNITIES FOR INCREASED HYDROELECTRIC 
GENERATION.—^The Secretary, in consultation with the Secretary 
of the Interior and the Secretary of the Army, shall perform recon-
106 STAT. 3098 
PUBLIC LAW 102-486—OCT. 24, 1992 
naissance level studies of cost effective opportunities to increase 
hydropower production at existing federally-owned or operated 
water regulation, storage, and conveyance facilities. Such studies 
shall be completed within 2 years after the date of enactment 
of this Act and transmitted to the Committee on E n e r ^ and Natu-
ral Resources and the Committee on Environment and Public Works 
of the United States Senate and to the Committee on Energy 
and Commerce, the Committee on Interior and Insular Affairs, 
and the Committee on Public Works and Transportation of the 
United States House of Representatives. An individual study shall 
be prepared for each of the Nation's principal river basins. Each 
such study shall identify and describe with specificity the following 
matters: 
(1) opportunities to improve the efficiency of hydroelectric 
generation at such facilities through, but not limited to, 
mechanical, structural, or operational changes; 
(2) opportunities to improve the efficiency of the use of 
water supplied or regulated by Federal projects where such 
improvement could, in the absence of legal or administrative 
constraints, make additional water supplies available for hydro-
electric generation or reduce project energy use; 
(3) opportunities to create additional generating capacity 
at existing facilities through, but not limited to, the construction 
of additional generating units, the uprating of generators and 
turbines, and the construction of pumped storage facilities; 
and 
(4) preliminary assessment of the costs and the economic 
and environmental consequences of such measures. 
(b) EXCEPTION FOR PREVIOUS STUDIES.—In those cases where 
studies of the type required by this section have been prepared 
by any agency of the United States and published within the 
ten years prior to the date of enactment of this Act, the Secretary 
may choose not to perform new studies but incorporate the informa-
tion developed by such studies into the study reports required 
by this section. 
(c) AUTHORIZATION.—^There is authorized to be appropriated 
in each of the fiscal years 1993, 1994, and 1995 such sums as 
may be necessary to carry out the purposes of this section. 
16 use 797 note. 
SEC. 2405. WATER CONSERVATION AND ENERGY PRODUCTION. 
(a) STUDIES.—^The Secretary of the Interior, acting pursuant 
to the Federal reclamation laws (Act of June 17, 1902, 32 Stat. 
388), and Acts supplementary thereto and amendatory thereof, 
is authorized and directed to conduct feasibility investigations of 
opportunities to increase the amount of hydroelectric energy avail-
aole for marketing by the Secretary from Federal hydroelectric 
power generation facilities resulting from a reduction in the 
consumptive use of such power for Federal reclamation project 
purposes or as a result of an increase in the amount of water 
available for such generation because of water conservation efforts 
on Federal reclamation projects or a combination thereof. The Sec-
retary of the Interior is further authorized and directed to conduct 
feasibility investigations of opportunities to mitigate damages to 
or enhance fish and wildlife as a result of increasing the amount 
of water available for such purposes because of water conservation 
efforts on Federal reclamation projects. Such feasibility investiga-
tions shall include, but not be limited to— 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3099 
(1) an analysis of the technical, environmental, and eco-
nomic feasibility of reducing the amount of water diverted 
upstream of such Federal hymroelectric power generation facili-
ties by Federal reclamation projects; 
(2) an estimate of the reduction, if any, of project power 
consumed as a result of the decreased amount of diversion; 
(3) £in estimate of the increase in the amoimt of electrical 
energy and related revenues which would result from the 
marketing of such power bv the Secretary; 
(4) an estimate of the fish and wildlife benefits which 
woiild result from the decreased or modified diversions; 
(5) a finding by the Secretary of the Interior that the 
activities proposed in the feasibility study can be carried out 
in accordance with applicable Federal and State law, interstate 
compacts and the contractual obligations of the Secretary; and 
(6) a finding by the affected Federal Power Mcirketing 
Administrator that the hydroelectric component of the proposed 
water conservation feature is cost-effective and that the affected 
Administrator is able to market the hydro-electric power 
expected to be generated. 
(b) CONSULTATION.—In preparing feasibility studies piirsuant 
to this section, the Secretary of the Interior shall consult with, 
and seek the recommendations of, affected State, local and Indian 
tribal interests, and shall provide for appropriate public comment. 
(c) AUTHOMZATION.—^There is hereby authorized to be appro-
priated to the Secretary of the Interior such sums as may be 
necessary to carry out this section. 
SEC. 2406. FEDERAL PROJECTS IN THE PACIFIC NORTHWEST. 
16 USC 839d-l. 
Without further appropriation and without fiscal year limita-
tion, the Secretaries of^the Interior and Army are authorized to 
plan, design, construct, operate and maintain generation additions, 
improvements and replacements, at their respective Federal projects 
in the Pacific Northwest Region as defined in the Pacific Northwest 
Electric Power Planning and Conservation Act (Northwest Power 
Act), PubHc Law 96-501 (16 U.S.C. 839a(14)), and to operate and 
maintain the respective Secretary's power facilities in the Region, 
that the respective Secretary determines necessary or appropriate 
and that the Bonneville Power Administrator subsequently deter-
mines necessary or appropriate, with any funds that the Adminis-
trator determines to make available to the respective Secretary 
for such purposes. Each Secretary is authorized, without further 
appropriation, to accept and use such fiinds for such purposes: 
Provided, That, such funds shall continue to be exempt from seques-
tration pursuant to section 255(gXl) of the Balanced Budget and 
Emergency Deficit Control Act of 1985: Provided further. That this 
section shall not modify or affect the applicability of any provision 
of the Northwest Power Act. This provision shall be effective on Effective date. 
October 1,1993. 
SEC. 2407. CERTAIN PROJECTS IN ALASKA. 
(a) AUTHORITY TO ISSUE EXEMPTIONS.—Except as provided in 
subsection (b) or (c), upon receipt of an application under this 
section, the Federal Energy Regulatory Commission (hereinafter 
in this section referred to as the ''Commission") may grant, notwith-
standing the provisions of section 2402, an exemption in whole 
or in part from the requirements of part I of the Federal Power 
Act, including any Ucense requirements contained in part I of 
106 STAT. 3100 
PUBLIC LAW 102-486—OCT. 24, 1992 
the Federal Power Act, to the following facilities located in the 
State of Alaska: 
(1) a project located at Sitka, Alaska, with application 
numbered tJL89-08-000; 
(2) a project located at Juneau, Alaska, with preUminary 
'/' 
permit numbered 10681-000; and 
(3) a project located near Nondalton, Alaska, with applica-
tion numbered EL88-25-001. 
(b) CAPACITY LIMITATIONS.—^No exemption under subsection (a) 
shall be applicable to any faciUty the installed capacity of which 
exceeds 5 megawatts. 
(c) MANDATORY TERMS AND CONDITIONS.—In making the deter-
mination under subsection (a), the Commission shall consult with 
the United States Fish and Wildlife Service, the National Marine 
Fisheries Service, and the State agency exercising administration 
over the fish and wildlife resources of the State of Alaska, 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 
Service, National Marine Fisheries Service, and the State 
agency each determine are appropriate to prevent loss of, or 
damage to, such resources and to otherwise carry out the pur-
poses of such Act, and 
(2) such terms and conditions as the Commission deems 
appropriate to ensure that such facility continues to comply 
with the provisions of this section and terms and conditions 
included in any such exemption. 
(d) ENFORCEMENT.—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 the Federal 
Power Act. 
(e) FEES.—^The Commission may establish fees which shall be 
paid by an applicant for a license or exemption for a project that 
is required to meet terms and conditions set bv fish and wildlife 
agencies under subsection (c). Such fees shsul be adequate to 
reimburse the fish and wildlife agencies referred to in subsection 
(c) for any reasonable costs incurred in connection with any studies 
or other reviews carried out by such agencies for purposes of compli-
ance with this section. The fees shall, subject to annual appropria-
tions Acts, be transferred to such agencies by the Commission 
for use solely for purposes of carrying out such studies and shall 
remain available until expended. 
(f) EXPEDITED PROCESSING.—^A completed application for an 
exemption under this section shall be acted on by the Commission 
in an expedited manner, in accordemce with this section, within 
6 months after the date on which the application for such exemption 
is applied for, or as promptly as practicable thereafter. 
16 use 797 note. 
SEC. 2408. PROJECTS ON FRESH WATERS IN STATE OF HAWAIL 
The Federal Energy Regulatory Commission, in consultation 
with the State of Hawaii, shall carry out a study of hydroelectric 
Reports. 
Ucensing in the State of Hawaii. For purposes of considering 
whether such Ucensing should be transferred to the State, within 
18 months after the enactment of this Act, the Commission shall 
complete the study and submit a report containing the results 
^ ^ 
of the study to the Committee on Energy and Commerce of the 
United States House of Representatives and to the Committee 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3101 
on Energy and Natural Resources of the United States Senate. 
The study shall examine, and the report shall at a minimum contain 
an analysis of, each of the following: 
(1) The State regulatory programs applicable to hydro-
electric power production and the extent to which such pro-
grams are suitable as a substitute for regulation of such projects 
imder the Federal Power Act, taking into consideration all 
aspects of such regulation, including energy, environmental, 
and safety considerations. 
(2) Any imique geographical, hydrological, or 
other 
characteristics of waterways in Hawaii or any other aspects 
of hydroelectric power development and natural resource protec-
tion in Hawaii that would justify or not justi^ the permanent 
transfer of Federal Energy Regulatory Commission jurisdiction 
over hydroelectric power projects to that State. 
(3) The adequacy of mechanisms and procedures for consid-
eration of fish and wildlife and other environmental values 
applicable in connection with hydroelectric power development 
in Hawaii under the State programs referred to in paragraph 
(1). 
(4) Any national policy considerations that would justify 
or not justify the removal of Federal Energy Regulatory 
Commission jurisdiction over hydroelectric power projects in 
Hawaii. 
(5) The precedent-setting effect, if anv, of provisions of 
law adopted by the Congress removing Federal Energy Regu-
latory Commission jurisdiction over hydroelectric power projects 
in Hawaii. 
SEC. 2409. EVALUATION OF DEVELOPMENT POTENTIAL. 
The Act of August 30, 1935 (Public Law No. 409 of the 74th 
Congress), is amended by inserting "The Secretary shall undertake 49 Stat. 1028. 
a demonstration project to evaluate the potential for hydropower 
development, utilizing tidal currents;" after "Document Numbered 
15, Seventy-fourth Congress;". 
TITLE XXV—COAL, OIL, AND GAS 
SEC. 2501. HOT DRY ROCK GEOTHERMAL ENERGY. 
30 USC 1028. 
(a) USGS PROGRAM.—The Secretary of the Interior, acting 
through the United States Geological Survey, and in consultation 
with the Secretary of Energy, shall establish a cooperative Govern-
ment-private sector program with respect to hot dry rock geothermal 
energy resources on public lands (as such term is defined in section 
103(e) of the Federal Land Policy and Management Act of 1976) 
and lands managed by the Department of Agriculture, other than 
£iny such public or other lands that are withdrawn from geothermal 
leasing. Such program shall include, but shall not be limited to, 
activities to identify, select, and classify those areas throughout 
the United States that have a high potential for hot diy rock 
geothermal energy production and activities to develop and dissemi-
nate information regarding the utilization of such areas for hot 
dry rock energy production. Such information may include informa-
tion regarding field test processes and techniques for assuring that 
hot diy rock geothermal energy development projects are developed 
in an economically feasible manner without adverse environmental 
106 STAT. 3102 
PUBLIC LAW 102-486—OCT. 24, 1992 
consequences. Utilizing the information developed b^ the Secretary, 
together with information developed in connection with other 
related programs carried out by other Federal agencies, the Sec-
retary, acting through the United States Cxeological Survey, may 
also enter into contracts and cooperative agreements with any public 
or private entity to provide assistance to any such entity to enable 
such entity to carry out additional projecto with respect to the 
utilization of hot diy rock geothermal energy resources which will 
further the purposes of this section. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated such sums as may be necesary to carry out 
this section. 
SEC. 2602. HOT DRY ROCK GEOTHERMAL ENERGY IN EASTERN 
UNITED STATES. 
The United States Geological Survey, in collaboration with 
the Secretory of Energy, shall convene a workshop of interested 
governmental and private parties to discuss the regional potential 
for hot dry rock geothermal energy in the Eastern United Stotes. 
The purpose of the workshop shall be to review the stotus of 
recoveraoility of hot dry rock energy in the Eastern United Stotes 
and to determine what geologic, technological, and economic 
obstocles need to be overcome to make the utilization of hot dry 
Reports. 
rock energy feasible. The workshop shall be convened within 6 
months after enactment of this Act and the Unitod Stotos Geological 
Survey shall submit a report to Conj?ress within 6 months after 
tiie workshop containing a summary of the findings and conclusions 
of the workshop. 
SEC. 2508. COAL REMINING. 
(a) MODIFICATION OF PROHIBITION.—Section 510 of the Surface 
Mining Control and Reclamation Act of 1977 (30 U.S.C. 1260) 
is amended by adding the following new subsection at the end 
thereof: 
"(e) MODIFICATION OF PROHIBITION.—After the date of enact-
ment of this subsection, the prohibition of subsection (c) shtdl not 
apply to a permit application due to any violation resulting from 
an unanticipated event or condition at a surface coal mining oper-
ation on lands eligible for remining under a permit held by the 
person making such application. As used in this subsection, the 
term Sdolation' has the same meaning as such term has imder 
subsection (c). The authority of this subsection and section 
515(bX20XB) shall terminate on September 30, 2004.". 
(b) PERIOD OF RESPONSIBILITY.—Section 515(bX20) of the Sur-
face Mining Control and Reclamation Act of 1977 (30 U.S.C. 
1265(bX20)) is amended as follows: 
(1) Insert "(A)" after "(20)". 
(2) Add the following new subparagraph at the end thereof: 
"(B) on lands eligible for remining assume the responsibility 
for successful revegetotion for a period of two full years after 
the last year of augmented seeding, fertilizing, irrigation, or 
other work in order to assure compliance with the applicable 
standards, except in those areas or regions of the country 
where the annual average precipitotion is twenty-six inches 
or less, then the operator's assumption of responsibility and 
liability will be extended for a period of five lull years after 
the last year of augmented seeding, fertilizing, irrigation, or 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3103 
other work in order to assure compliance with the applicable 
stcuidards.". 
(c) DEFINITIONS.—Section 701 of the Surface Mining Control 
and Reclamation Act of 1977 (30 U.S.C. 1291) is amended by 
striking the period at the end of paragraph (32) and inserting 
a semicolon in lieu thereof, and by adding the following new para-
graphs at the end thereof: 
"(33) the term 'unanticipated event or condition' as used 
in section 510(e) means an event or condition encoimtered 
in a remining operation that was not contemplated by the 
applicable surface coal mining and reclamation permit; and 
"(34) the term lands eligible for remining* means those 
lands that would otherwise be eligible for expenditures under 
section 404 or imder section 402(g)(4).''. 
(d) ELIGIBILITY.—Section 404 of the Surface Mining Control 
and Reclamation Act of 1977 (30 U.S.C. 1234) is amended by 
adding the following new sentence at the end thereof: "Surface 
coal mining operations on lands eligible for remining shall not 
affect the eligibility of such lands for reclamation and restoration 
under this title after the release of the bond or deposit for any 
such operation as provided under section 519. In the event the 
bond or deposit for a surface coal mining operation on lands eligible 
for remining is forfeited, funds available imder this title may be 
used if the amoimt of such bond or deposit is not sufficient to 
provide for adequate reclamation or abatement, except that if condi-
tions warrant the Secretary shall immediately exercise his authority 
under section 410.". 
(e) ABANDONED COAL REFUSE SITES.—<1) Notwithstanding any 
other provision of the Surface Mining Control and Reclamation 
Act of 1977 to the contrary, the Secretary of the Interior shall, 
within one year after the enactment of this Act, publish proposed 
regulations in the Federal Register, and after opportunity for public 
comment publish final regulations, establishing environmental 
protection performance and reclamation standards, and separate 
permit systems applicable to operations for the on-site reprocessing 
of abandoned coal refuse and operations for the removal of aban-
doned coal refuse on lands that would otherwise be eligible for 
expenditure under section 404 and section 402(gX4) of the Surface 
Mining Control and Reclamation Act of 1977. 
(2) The standards and permit systems referred to in paragraph 
(1) shall distinguish between those operations which reprocess aban-
doned coal refuse on-site, and those operations which completely 
remove abandoned coal refuse from a site for the direct use of 
such coal refuse, or for the reprocessing of such coal refuse, at 
another location. Such standards and permit systems shall be pre-
mised on the distinct differences between operations for the on-
site reprocessing, and operations for the removal, of abandoned 
coal refuse and other types of surface coal mining operations. 
(3) The Secretary of the Interior may devise a different standard 
than any of those set forth in section 515 and section 516 of 
the Surface Mining Control and Reclamation Act of 1977, and 
devise a separate permit system, if he determines, on a standard-
by-standard basis, that a different standard may facilitate the on-
site reprocessing, or the removal, of abandoned coal refuse in a 
manner that would provide the same level of environmental protec-
tion as under section 515 and section 516. 
Regulations. 
Federal 
Register, 
publication. 
30 u s e 1251a. 
106 STAT. 3104 
PUBLIC LAW 102-486—OCT. 24, 1992 
30 use 1309a. 
30 use 1309a 
note. 
(4) Not later than 30 days prior to the publication of the 
proposed regulations referred to in this subsection, the Secretary 
shall submit a report to the Committee on Interior and Insular 
Affairs of the United States House of Representatives, and the 
Committee on Energy and Natural Resources of the United States 
Senate containing a detailed description of any environmental 
protection performance and reclamation standards, and separate 
permit systems, devised pursuant to this subsection. 
SEC. 2504. SURFACE MINING ACT IMPLEMENTATION. 
(a) SUBSIDENCE.—(1) Title VII of the Surface Mining Control 
and Reclamation Act of 1977 (30 U.S.C. 1291 and following) is 
amended by adding the following new section at the end thereof: 
'^EC. 720. SUBSIDENCE. 
"(a) REQUIREMENTS.—^Undergroxmd coal mining operations con-
ducted eifter the date of enactment of this section shall comply 
with each of the following requirements: 
"(1) Promptly repair, or compensate for, material damage 
resulting from subsidence caused to any occupied residential 
dwelling and structures related thereto, or non-commercial 
building due to imderground coal mining operations. Repair 
of damage shall include rehabilitation, restoration, or replace-
ment of the damaged occupied residential dwelling and 
structures related thereto, or non-commercial building. Com-
pensation shall be provided to the owner of the damaged occu-
pied residential dwelling and structures related thereto or non-
commercial building and shall be in the full amount of the 
diminution in value resulting from the subsidence. Compensa-
tion may be accomplished by the purchase, prior to mining, 
of a noncancellable premium-prepaid insurance policy. 
"(2) Promptly replace any drinking, domestic, or residential 
water supply from a well or spring m existence prior to the 
application for a surface coal mining and reclamation permit, 
which has been affected by contamination, diminution, or 
interruption resulting from undergroimd coal mining oper-
ations. 
Nothing in this section shall be construed to prohibit or interrupt 
underground coal mining operations. 
"(b) REGULATIONS.—^Within one year £ifter the date of enactment 
of this section, the Secretary shall, after providing notice and oppor-
timity for public comment, promulgate final regulations to imple-
ment subsection (a).". 
(2XA) The Secretary of the Interior shall review existing 
requirements related to underground coal mine subsidence and 
natural gas and petroleum pipeline safety. Such review shall con-
sider the following with respect to subsidence: notification; mitiga-
tion; coordination; requirements of the Natural Gas Pipeline Safety 
Act and the Hazardous Liquid Pipeline Safety Act; and the stetus 
of Federal, State and local laws, as well as common law, with 
respect to prevention or mitigation of damage from subsidence. 
(B) The review shall also include a survey of the status of 
Federal, State, and local laws, as well as common law, with respect 
to the responsibilities of the relevant parties for costs resulting 
from damage due to subsidence or from mitigation efforts under-
taken to prevent damage from subsidence. 
(C) In conducting the review, the Secretary of the Interior 
shall consult with the Secretory of Transportotion, the Attorney 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3105 
General of the United States, appropriate officials of relevant States, 
and owners and representatives of natural gas and petroleum pipe-
line companies and coal companies. 
(D) The Secretary of the Interior shall submit a report detailing Reports. 
the results of the review to the Committee on Energy and Natur£a 
Resources of the United States Senate and the Committee on 
Interior and Insular Affairs of the United States House of Rep-
resentatives within 18 months of enactment of this Act. Where 
appropriate, the Secretary of the Interior shall commence a rule-
making to address any deficiencies in existing law determined in 
the review under subparagraph (A) regarding notification, coordina-
tion and mitigation. 
(b) VALID EXISTING RIGHTS.—During the 1-year period following 
the enactment of this Act, in administering the provisions of the 
Surface Mining Control and Reclamation Act of 1977 regarding 
valid existing rights, the Secretary of the Interior shall continue 
in force and effect the policies of the Office of Surface Mining 
as set forth in the November 10,1986 Statement of Policy published 
in 51 Federal Register 41952. 
(c) RESEARCH.—(1) Section 401(cX6) of the Surface Mining Con-
trol and Reclamation Act of 1977 (30 U.S.C. 1231(cX6)) is amended 
as follows: 
(A) Insert ", research, and demonstration projects" after 
"studies". 
(B) Strike "to provide information, advice, and technical 
assistance, including research and demonstration projects". 
(2) Section 403(a) of the Surface Mining Control and Reclama-
tion Act of 1977 (30 U.S.C. 1233) is amended by striking paragraph 
(4) and renumber the subsequent paragraphs accordingly. 
(3) Title VII of the Surface Minmg Control anof Reclamation 
Act of 1977 (30 U.S.C. 1291 and following) is amended by adding 
the following new section after section 720: 
"SEC. 721. RESEARCH. 
30 USC 1309b. 
'The Office of Surface Mining Reclamation and Enforcement 
is authorized to conduct studies, research and demonstration 
projects relating to the implementation of, and compliance with, 
title V of this Act, and provide technical assistance to states for 
that purpose. Prior to approving any such studies, research or 
demonstration projects the Director, OfiElce of Surface Mining Rec-
lamation and Enjforcement, shall first consult with the Director, 
Bureau of Mines, and obtain a determination from such Director 
that the Bureau of Mines is not already conducting like or similar 
studies, research or demonstration projects. Studies, research and 
demonstration projects for the purposes of title IV of this Act 
shall only be conducted in accordance with section 401(cX6).". 
30 use 551 note. 
(d) COAL FORMATIONS.—(1) In furtherance of the purposes of 
the Act of August 31, 1954 (30 U.S.C. 551-558) the Secretary 
of the Interior, acting through the Director of the Office of Surface 
Mining Reclamation and Enforcement, shall, upon application by 
a State, enter into a cooperative agreement with any such State 
that has an approved abandoned mine reclamation program pursu-
ant to section 405 of the Surface Mining Control and Reclamation 
Act of 1977 to imdertake the activities referred to in section 3(b) 
of the Act of August 31, 1954 (30 U.S.C. 553(b)). The Secretary 
shall immediately enter into such cooperative agreement upon 
application by a State. Any such cooperative agreement shall not 
106 STAT. 3106 
PUBLIC LAW 102-486—OCT. 24, 1992 
be subject to review or approval by the Appalachian Regional Devel-
opment Commission. 
(2) For the purposes of the cooperative agreements entered 
into pursuant to paragraph (1), the requirements of section 5 of 
the Act of August 31, 1954 (30 U.S.C. 555) are hereby waived. 
(3) Section 8 of the Act of August 31, 1954 (30 U.S.C. 558) 
is amended by striking "not to exceed $500,000 cuinually,". 
(e) TECHNICAL AMENDMENT.—Section 403(bX2) of the Surface 
Mining Control and Reclamation Act of 1977 (30 U.S.C. 1233(b)(2)) 
is amended by inserting ", or as the case may be, the dates (and 
imder the criteria) set forth under section 402(gX4XB)''after "1977" 
in each instance such date appears. 
SEC. 260S. FEDERAL UGNTTE COAL ROYALTIES. 
(a) COAL IN FORT UNION REGION.—^Notwithstanding any other 
provision of law, or any regulation or guideline issued thereunder, 
the Secretary of the Interior may determine, with respect to lignite 
coal in the Fort Union region, a lesser royalty than the royalty 
specified under section 7 of the Mineral Leasing Act (30 IJ.S.C. 
207). Any lesser royalty granted under this section, or under section 
39 of the Mineral Leasing Act (30 U.S.C. 209) after March 29, 
1990, for lignite coal in the Fort Union region shall continue for 
a term of at least 10 years from the effective date of such reduction. 
(b) REVIEW AND EXTENSION.—Within 10 years after the date 
of enactment of this Act, the Secretary of the Interior shall review 
the efTect of any royalty reduction pursuant to subsection (a) on 
the production of coal. If the Secretary determines that such royalty 
reduction has had no significant adverse impact on coal production, 
upon a request by a lignite coal operator in the Fort Union region, 
the Secretary may grant an additional royalty reduction for a period 
of 10 years, provided that the total term of the reduced royalty 
granted pursuant to subsection (a) and this subsection for a tract 
or lease does not exceed a period of 20 years. 
SEC. 2506. ACQUIRED FEDERAL LAND MINERAL RECEIPTS MANAGE-
MENT. 
(a) MINERAL RECEIPTS UNDER ACQUIRED LANDS ACT.—Section 
6 of the Mineral Leasing Act for Acquired Lands (30 U.S.C. 355) 
is amended by inserting "(a)" before the first sentence and by 
adding the following new subsection at the end thereof: 
"(b) Notwithstanding any other provision of law, any payment 
to a State under this section shall be made by the Secretary of 
the Interior and shall be made not later than the last business 
day of the month following the month in which such moneys or 
associated reports are received by the Secretary of the Interior, 
whichever is later. The Secretary shall pay interest to a State 
on any amount not paid to the State within that time at the 
rate prescribed imder section 111 of the Federal Oil and Gas Royalty 
Management Act of 1982 from the date payment was required 
to be made under this subsection imtil the aate pajmient is made.". 
(b) AUTHORITY TO MANAGE CERTAIN MINERAL LEASES.—The 
Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 and follow-
ing) is amended by adding the following new section at the end 
thereof: 
30 use 360. 
'^EC. 11. AUTHORITY TO MANAGE CERTAIN MINERAL LEASES. 
"Each department, agency and instrumentality of the United 
States which administers lands acquired by the United States with 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3107 
one or more existing mineral lease shall transfer to the Secretary 
of the Interior the authority to administer such lease and to collect 
all receipts due and payable to the United States under the lease. 
In the case of lands acquired on or before the date of the enactment 
of this section, the authority to administer the leases and collect 
receipts shall be transferred to the Secretary of the Interior as 
expeditiously as practicable after the date of enactment of this 
section. In the case of lands acquired after the date of enactment 
of this section, such authority shall be vested with the Secretary 
at the time of acquisition. The provisions of section 6 of this Act 
shall apply to all receipts derived from such leases where such 
receipts are due and payable to the United States under the lease 
in the same manner as such provisions apply to receipts derived 
from leases issued under the authority o
f
^ this Act. For purposes 
of this section, the term 'existing mineral lease' means any lease 
in existence at the time land is acquired by the United States. 
Nothing in this section shall be construed to affect the existing 
surface management authority of any Federal agency.". 
(c) CLARIFICATION.—Section 7 of the Act of August 18, 1941, 
ch. 377 (33 U.S.C. 701c-3) is amended by adding the following 
sentence at the end thereof: ''For the purposes of this section, 
the term 'money* includes, but is not limited to, such bonuses, 
royalties and rentals (and any interest or other charge paid to 
the United States by reason of the late payment of any royalty, 
rent, bonus or other amount due to the United States) paid to 
the United States from a mineral lease issued under the authority 
of the Mineral Leasing Act for Acquired Lands or paid to the 
United States from a mineral lease in existence at the time of 
the acquisition of the land by the United States.". 
SEC. 2507. RESERVED OIL AND GAS. 
(a) IN GENERAL.—Section 17(b) of the Mineral Leasing Act 
(30 U.S.C. 226(b)) is amended as follows— 
(1) In paragraph (IXA), strike out "under paragraph (2)" 
and insert in lieu thereof "under paragraphs (2) and (3)". 
(2) Adding at the end thereof the following new paragraph: 
"(3XA) If the United States held a vested future interest in 
a mineral estate that, immediately prior to becoming a vested 
present interest, was subject to a lease under which oil or gas 
was being produced, or had a well capable of producing, in paying 
Quantities at an annual average production volume per well per 
ay of either not more than 15 barrels per day of oil or condensate, 
or not more than 60,000 cubic feet of gas, the holder of the lease 
may elect to continue the lease as a noncompetitive lease under 
subsection (cXD. 
"(B) An election under this paragraph is effective— 
"(i) in the case of an interest which vested after January 
1, 1990, and on or before the date of enactment of this para-
graph, if the election is made before the date that is 1 year 
after the date of enactment of this paragraph; 
"(ii) in the case of an interest which vests within 1 year 
after the date of enactment of this paragraph, if the election 
is made before the date that is 2 years after the date of 
enactment of this paragraph; and 
"(iii) in any case other than those described in clause 
(i) or (ii), if the election is made prior to the interest becoming 
a vested present interest. 
106 STAT. 3108 
PUBLIC LAW 102-486—OCT. 24, 1992 
"(C) Notwithstanding the consent requirement referenced in 
section 3 of the Mineral Leasing Act for Acquired Lands (30 U.S.C. 
352), the Secretary shall issue a noncompetitive lease under sub-
section (cXD to a holder who makes an election under subparagraph 
(A) and who is qualified to hold a lease under this Act. Such 
lease shall be subject to all terms and conditions under this Act 
that are appUcable to leases issued under subsection (cXD. 
"(D) A lease issued pursuant to this paragraph shall continue 
so long as oil or gas continues to be produced in paying quantities. 
"(£) This paragraph shall apply only to tnose lands under 
the administration of the Secretary of Agriculture where the United 
States acquired an interest in such lands pursuant to the Act 
of March 1,1911 (36 Stat. 961 and following).". 
30 use 226 note. 
(jj) EFFECTIVE DATE.—^The amendments made by subsection 
(a) apply with respect to those mineral estates in which the interest 
of the United States becomes a vested present interest after 
January 1,1990. 
SEC. 2508. CERTAIN OUTSTANDING OIL AND GAS. 
(a) IN GENERAL.—Section 17 of the Mineral Leasing Act (30 
U.S.C. 226) is amended by adding the following new subsection 
after subsection (n): 
"(o) CERTAIN OUTSTANDING OIL AND GAS.—(1) Prior to the 
commencement of surface-disturbing activities relating to the devel-
opment of oil and gas deposits on lands described imder paragraph 
(5), the Secretary of Agriculture shall require, pursuant to regula-
tions promulgated by the Secretary, that such activities be subject 
to terms and conditions as provided under paragraph (2). 
"(2) The terms and conditions referred to in paragraph (1) 
shall require that reasonable advance notice be furnished to the 
Secretary of Agriculture at least 60 days prior to the commencement 
of surface disturbing activities. 
"(3) Advance notice under paragraph (2) shall include each 
of the following items of information: 
"(A) A designated field representative. 
*'(B) A map showing the location and dimensions of all 
improvements, including but not limited to, well sites and road 
and pipeline accesses. 
"(C) A plan of operations, of an interim character if nec-
essary, setting forth a schedule for construction and drilling. 
"(D) A plan of erosion and sedimentation control. 
"(E) Proof of ownership of mineral title. 
Nothing in this subsection shall be construed to afTect any authority 
of the State in which the lands concerned are located to impose 
any requirements with respect to such oil and gas operations. 
"(4) The person proposing to develop oil and gas deposits on 
lands described under paragraph (5) shall either— 
"(A) permit the Secretary to market merchantable timber 
owned by the United States on lands subject to such activities; 
or 
"(B) arrange to purchase merchantable timber on lands 
subject to such surface disturbing activities firom the Secretary 
of Agriculture, or otherwise arrange for the disposition of such 
merchantable timber, upon such terms and upon such advance 
notice of the items referred to in subparagraphs (A) through 
(E) of paragraph (3) as the Secretary may accept. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3109 
"(SXA) The lands referred to in this subsection are those lands 
referenced in subparagraph (B) which are under the administration 
of the Secretary of Agriculture where the United States acquired 
an interest in such lands pursuant to the Act of March 1, 1911 
(36 Stat. 961 and following), but does not have an interest in 
oil £md gas deposits that may be present under such lands. This 
subsection does not apply to any such lands where, under the 
provisions of its acquisition of an interest in the lands, the United 
States is to acquire any oil and gas deposits that may be present 
under such lands in the future but such interest has not yet 
vested with the United States. 
"(B) This subsection shall only apply in the Allegheny National 
Forest.". 
(b) REGULATIONS.—Within 90 days after the enactment of this 30 use 226 note. 
Act the Secretary of Agriculture shall promulgate regulations to 
implement the amendment made by subsection (a). 
SEC. 2509. FEDERAL ONSHORE OIL AND GAS LEASING. 
The first sentence of section 17(e) of the Mineral Leasing Act 
(30 U.S.C. 226(e)) is amended by striking the phrase starting with 
"Competitive leases" and ending with '%en years: Provided, how-
ever," and inserting in lieu thereof the following: ''Competitive and 
noncompetitive leases issued imder this section shall be for a pri-
mary term of 10 years: Provided, however,". 
SEC. 2510. OIL PLACER CLAIMS. 
Notwithstanding any other provision of law, in furtherance 
of the purposes of the Act of February 11, 1897, commonly referred 
to as the Oil Placer Act, and section 37 of the Mineral Leasing 
Act, the Secretary of the Interior is authorized and directed to, 
within 90 days after the enactment of this Act, (1) convey by 
quit-claim deed to the owner or owners, or (2) separately and 
as an alternative, disclaim and relinquish by a document in any 
form suitable for recordation in the county within which the lands 
are situated, all right, title and interest or claim of interest of 
the United States to those lands in the counties of Hot Springs, 
Park and Washakie in the State of Wyoming, held pursuant to 
the Act of February 11, 1897, and which are currently producing 
covered substances under a cooperative or unit plan of development. 
SEC. 2511. OIL SHALE CLAIMS. 
30 USC 242. 
(a) NOTICE.—^Notwithstanding any other provision of law, 
within 60 days from the date of enactment of this Act, the Secretary 
of the Interior shall provide notice to each holder of an unpatented 
oil shale mining claim of the requirements of this Act. Such notice 
shall be made by registered mail and by publication in a newspaper 
of general circulation in the areas in which such claims are located. 
(b) FULL PATENT.—^The holder of a valid oil shale mining claim 
who has filed a patent application and received first half final 
certificate for patent by date of enactment of this Act, may obtain 
a patent pursuant to the general mining laws of the United Stetes. 
(c) PATENT.—<1) Notwithstanding any other provision of law, 
the holder of a valid oil shale mining claim who has filed a patent 
application which has been accepted for processing by the Depart-
ment of the Interior by the date of enactment of this Act but 
has not received first half final certificate for patent by the date 
of enactment of this Act may receive only a patent limited to 
the oil shale and associated minerals, upon payment of $2.50 per 
106 STAT. 3110 
PUBLIC LAW 102-486—OCT. 24, 1992 
acre. Title to the surface and to all other minerals, including, 
but not limited to, oil, gas, and coa.\ shall remain in the United 
States. Patents issued pursuant to this subsection shall provide 
for surface use to the same extent as is provided under applicable 
law prior to enactment of this Act with respect to oil shale mining 
claims, subject to the requirements of subsection (f)> 
(2) Maintenance of claims referred to in this subsection prior 
to patent issuance shall be in accordance with the requirements 
of appUcable law prior to enactment of this Act. 
(3) Any holder of a valid oil shale mining claim referred to 
in this subsection may maint£dn such claim in accordance with 
the requirements set forth in subsection (eX2) in lieu of receiving 
a patent under this section. 
(4) Notwithstanding any other provision of law, any person 
referred to in paragraph (1) who obtains compensation from the 
United States as a result of the application of this section being 
declared to be a taking of property within the meaning of the 
Fifth Amendment to the United States Constitution, may obtain 
a full patent upon tender to the Secretary of the amount of such 
compensation, not including interest, and upon the receipt of such 
amoimt, the Secretary shall convey to such person a patent in 
the form and manner provided under the general mining laws 
of the United States. Such tender may only be made within 3 
years of obtaining such compensation. 
(d) ELECTION.—<1) Notwithstanding any other provision of law, 
within 180 days from the date of which the Secretary provided 
notice under subsection (a), a holder of a valid oil shale mining 
claim for which a patent application was not filed and accepted 
for processing by the Department of the Interior prior to the date 
of enactment of this Act shall file with the Secretary a notice 
of election to— 
(A) proceed to limited patent as provided in subsection 
(eXl); or 
(B) maintain the unpatented claim as provided for in sub-
section (eX2). 
(2) Failure to file the notice of election as required by paragraph 
(1) shall be deemed conclusively to constitute an abandonment 
of the claim by operation of law. 
(3) Any claim holder who elects to proceed under paragraph 
(IXA) must apply for a patent within 2 years from the date of 
election or notify the Secret£ury in writing prior to expiration of 
the 2-year period of a decision to maintain such claim as provided 
in paragraph (IXB) or such claim shall be deemed conclusively 
to have been abandoned by operation of law. 
(4) The provisions of this subsection shall be in addition to 
the reqmrements of section 314 of the Federal Land Policy and 
Management Act of 1976 (43 U.S.C. 1744). 
(e) EFFECT OF ELECTION.—(1) Notwithstanding any other provi-
sions of law, a claim holder subject to the election requirements 
of subsection (d) who elects to receive a limited patent shall receive 
title only to the oil shale associated minerals, upon payment of 
fair market value for the oil shale and associated minerals. Title 
to the surface and to all other minerals, including, but not limited 
to oil, gas, and coal, shall remain in the United States. Patents 
issued pursuant to this subsection shall provide for surface use 
to the same extent as is provided under applicable law prior to 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3111 
the enactment of this Act with respect to oil shale mining claims, 
subject to the requirements of subsection (f). 
(2) Notwithstanding any other provision of law, a claim holder 
referred to in subsection (c) or a claim holder subject to the election 
requirements of subsection (d) who maintains or elects to maintain 
an unpatented claim shall maintain such claim by complying with 
the general mining laws of the United States, and witii the provi-
sions of this section, except that the claim holder shall no longer 
be required to perform annual labor, and instead shall pay to 
the Secretary $550 per claim per year for deposit as miscellaneous 
receipts in the general fund of the Treasury, commencing with 
calendar year 1993. Such fee shall accompany the filing made 
by the claim holder with the Bureau of Land Management pursuant 
to section 314(a)(2) of the Federal Land Policy and Management 
Act (43 U.S.C. 1744(a)(2)). 
(f) RECLAMATION.—In addition to other applicable requirements, 
any person who holds a limited patent or maintains a claim pursu-
ant to this section shall be required to carry out reclamation as 
prescribed by the Secretary and to furnish a bond or other appro-
priate financial guarantee in an amount sufficient to ensure ade-
quate reclamation of the lands to be disturbed by any aspect of 
tne proposed mining activities. 
(g) REAFFIRMATION OF REQUIREMENTS.—^Without comment on 
the adequacy of current or former standards for determining validity 
of oil shale claims, Congress reaffirms the requirements of law 
that a patent may issue only to persons who hold valid claims 
and the need for careful review of any applications. 
(h) ISSUANCE OF PATENTS.—^Notwithstanding any other provi-
sion of law, with respect to any oil shale mining claim located 
under the general mining laws of the United States, no patent 
for such claim shall be issued except as provided by this section. 
SEC. 2612. HEALTH, SAFETY, AND MINING TECHNOLOGY RESEARCH 30 USC 951a. 
PROGRAM. 
(a) HEALTH, SAFETY, AND MINING TECHNOLOGY RESEARCH 
PLAN.—(1) Every 5 years, the Secretfuy of the Interior, acting 
through the Director of the Bureau of Mines (hereinafter in this 
section referred to as the "Director^), shall develop a Plan for 
Health, Safety, and Mining Technology Research (hereinafter in 
this subsection referred to as the "Plem"). 
(2) The Plan shall identify the goals and objectives of the 
Health, Safety, and Mining Technology program of the Bureau 
of Mines, and shall guide research and technology development 
under such program, over each 5-yesir period. 
(3) In preparing the proposed Plan referred to in paragraph 
(1), the Director shall solicit suggestions, comments and proposals 
for research and technology development projects from the mining 
industry, labor, academia and other concerned groups and individ-
uals. 
(b) TECHNICAL AMENDMENT.—For the purposes of section 501(b) 
of Public Law 91-173, as amended, activities in the field of coal 
or other mine health under such section shall also be carried 
out by the Secretary of the Interior acting through the Director 
of the Bureau of Mines. Nothing in this subsection is intended 
to preclude or duplicate the ongoing research activities of the 
Bureau of Mines on health hazards safety technology or research 
106 STAT. 3112 
PUBLIC LAW 102-486—OCT. 24, 1992 
conducted by the National Institute of Occupational Safety and 
Health on coal mine safety and health effects. 
SEC. 2513. ASSISTANCE TO SMALL COAL OPERATORS. 
(a) ASSISTANCE.—Section 507(c) of the Surface Mining Control 
and Reclamation Act of 1977 (30 U.S.C. 1257(c)) is amended to 
read as follows: 
"(c) ASSISTANCE TO SMALL COAL OPERATORS.—(1) If the re^fu-
latory authority finds that the probable total annual production 
at all locations of a coal surface mining operator will not exceed 
300,000 tons, the cost of the following activities, which shall be 
performed by a qualified public or private laboratory or such other 
public or private qualified entity designated by the regulatory 
authority, shall be assumed by the regulatory authority upon the 
written request of the operator in connection with a permit applica-
tion: 
"(A) The determination of probable hydrologic consequences 
required by subsection (bXll), including the engineering analy-
ses and designs necessary for the determination. 
"(B) The development of cross-section maps and plans 
required by subsection (bX14). 
"(C) llie geologic drilling and statement of results of test 
boring and core samplings required by subsection (bX15). 
"(D) The collection of arcnaeological information required 
by subsection (bX13) and any other archaeological and historical 
information reauired by the regulatory authority, and the 
preparation of plans necessitated thereby. 
"(E) Pre-blast surv^s required by section 515(bX15XE). 
"(F) The collection of site-specific resoiu'ce information and 
production of protection and enhancement plans for fish and 
wildlife habitats and other environmental values required by 
the regulatory authority imder this Act. 
"(2) The Secretary shall provide or assume the cost of tr£dning 
coal operators that meet the qualifications stated in paragraph 
(1) concerning the preparation of permit applications and compli-
ance witii the regulatory program, and shall ensure that qualined 
coal operators are aware of the assistance available imder this 
subsection.". 
(b) REIMBURSEMENT OF COSTS.—Section 507 of the Surface 
Mining Control and Reclamation Act of 1977 (30 U.S.C. 1257) 
is amended by adding at the end thereof the following new sub-
section: 
"(h) REIMBURSEMENT OF COSTS.—A coal operator that has 
received assistance pursuant to subsection (c) (1) or (2) shall 
reimburse the regulatory authority for the cost of the services 
rendered if the program administrator finds that the operator's 
actual and attributed tuinual production of coal for all locations 
exceeds 300,000 tons during the 12 months immediately following 
the date on which the operator is issued the siuface coal mining 
and reclamation permit.". 
SEC. 2614. SURFACE MINING REGULATIONS. 
Section 710 of the Surface Mining Control and Reclamation 
Act of 1977 (30 U.S.C. 1300) is amended by adding at the end 
the following new subsection: 
"(i) GRANTS.—^The Secretary shall make grants to the Nav£go, 
Hopi, Northern Cheyenne, and Crow tribes to assist such tribes 
in developing regulations and programs for regulating surface coal 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3113 
mining and reclamation operations on Indian lands, except that 
nothing in this subsection may be construed as providing such 
tribes with the authorities set forth under section 503. Grants 
made under this subsection shall be used to establish an office 
of surface mining regulation for each such tribe. Each such ofiice 
shall— 
"(1) develop tribal regulations and program policies with 
respect to surface mining; 
"(2) assist the Office of Surface Mining Reclamation and 
Enforcement established by section 201 in the inspection and 
enforcement of surface mining activities on Indian lands, includ-
ing, but not limited to, permitting, mine plan review, and 
bond release; and 
"(3) sponsor employment training and education in the 
area of mining and mineral resources.". 
SEC. 2515. AMENDMENT TO SURFACE MINING ACT. 
Section 402(b) of the Surface Mining Control and Reclamation 
Act of 1977 (30 U.S.C. 1232(b)) is amended by striking "1995" 
and inserting in lieu thereof "2004, after which time the fee shall 
be established at a rate to continue to provide for the deposit 
referred to in subsection (h)". 
TITLE XXVI—INDIAN ENERGY 
RESOURCES 
SEC. 2601. DEFINITIONS. 
25 USC 3501. 
For purposes of this title— 
(1) the term "Indian tribe" means any Indian tribe, band, 
nation, or other organized group or community, including any 
Alaska Native village or regional or village corporation as 
defined in or established pursuant to the Alaska Native Claims 
Settlement Act (43 U.S.C. 1601 et seq.), which is recognized 
as eligible for the special programs and services provided by 
the United States to Indians because of their status as Indians; 
and 
(2) the term "Indian reservation" includes Indian reserva-
tions; public domain Indian allotments; former Indian reserva-
tions in Oklahoma; land held by incorporated Native groups, 
regional corporations, and village corporations under the provi-
sions of the Alaska Native Claims Settlement Act (43 U.S.C. 
1601 et seq.); and dependent Indian communities within the 
borders of the United States whether within the original or 
subsequently acquired territory thereof, and whether within 
or without the limits of a State. 
SEC. 2602. TRIBAL CONSULTATION. 
25 USC 3502. 
In implementing the provisions of this Act, the Secretary of 
Energy shall involve and consult with Indian tribes to the maximum 
extent possible and where appropriate and shall do so in a manner 
that is consistent with the Federal trust and the Cxovemment-
to-Govemment relationships between Indian tribes and the Federal 
Government. 
106 STAT. 3114 
PUBLIC LAW 102-486—OCT. 24, 1992 
25 use 3503. 
SEC. 2603. PROMOTING ENERGY RESOURCE DEVELOPMENT AND 
ENERGY VERTICAL INTEGRATION ON INDIAN RESERVA-
TIONS. 
(a) DEMONSTRATION PROGRAMS.—The Secretary of Energy, in 
consultation with the Secretary of the Interior, shall establish and 
implement a demonstration program to assist Indian tribes in 
pursuing energy self-sufficiency and to promote the development 
of a vertically integrated energy industry on Indian reservations, 
in order to increase development of the substantial energy resources 
located on such Indian reservations. Such program shall include, 
but not be limited to, the following components: 
(1) The Secretary shall provide development grants to 
Indian tribes or to joint ventures which are 51 percent or 
more controlled by an Indian tribe to assist Indian tribes in 
obtaining the managerial and technical capability needed to 
develop the energy resources on Indian reservations. Such 
grants shall include provisions for management training for 
tribal or village members, improving the technical capacity 
of the Indian tribe, and the reduction of tribal unemployment. 
Each grant shall be for a period of 3 years. 
(2) The Secretary shall provide grants, not to exceed 50 
percent of the project costs, for vertical integration projects. 
For purposes of this paragraph, the term "vertical integration 
project" means a project that promotes the vertical integration 
of the energy resources on an Indian reservation, so that the 
energy resources are used or processed on such Indian reserva-
tion. Such term includes, but is not limited to, projects involving 
solar and wind energy, oil refineries, the generation and trans-
mission of electricity, hydroelectricity, cogeneration, natural gas 
distribution, and clean, innovative uses of coal. 
(3) The Secretary shall provide technical assistance (and 
such other assistance as is appropriate) to Indian tribes for 
energy resource development and to promote the vertical 
integration of energy resources on Indian reservations. 
(b) Low INTEREST LOANS.— 
(1) IN GENERAL.—^The Secretary shall establish a program 
for making low interest loans to Indian tribes. Such loans 
shall be used exclusively by Indian tribes in the promotion 
of energy resource development and vertical integration on 
Indian reservations. 
(2) TERMS.—^The Secretary shall establish reasonable terms 
for loans made under this section which are to be used to 
carry out the purposes of this section. 
(c) AUTHORIZATION OF APPROPRIATIONS.—^There are authorized 
to \iG fl.Dtiroorifl.1iGd"""" 
(1) $10,000,000 for each of the fiscal years 1994, 1995, 
1996, and 1997 to carry out the purposes of subsection (aXD; 
(2) $10,000,000 for each of the fiscal years 1994, 1995, 
1996, and 1997 to carry out the purposes oi subsection (aX2); 
and 
(3) $10,000,000 for each of the fiscal years 1994, 1995, 
1996, and 1997 to carry out the purposes of subsection (b). 
25 use 3504. 
SEC. 2604. INDIAN ENERGY RESOURCE REGULATION. 
(a) GRANTS.—^The Secretary of the Interior is authorized to 
make annual grants to Indian tribes for the purpose of assisting 
Indian tribes in the development, administration, implementation, 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3115 
and enforcement of tribal laws and regulations governing the devel-
opment of energy resources on Indian reservations. 
(b) PURPOSE.—^The purposes for which fimds provided under 
a grant awarded under subsection (a) may be used include, but 
are not limited to— 
(1) the training and education of employees responsible 
for enforcing or monitoring compliance with Federal and tribal 
laws and regulations; 
(2) the development of tribal inventories of energy 
resources; 
(3) the development of tribal laws and regulations; 
(4) the development of tribal legal and governmental infra-
structure to regulate environmental quality pursuant to Federal 
and tribal laws; and 
(5) the enforcement and monitoring of Federal and tribal 
laws and regulations. 
(c) OTHER ASSISTANCE.—^The Secretary of the Interior and the 
Secretary of Energy shaU cooperate with and provide assistance 
to Indian tribes for the purpose of assisting Indian tribes in the 
development, administration, and enforcement of tribal programs. 
Such cooperation and assistance shall include the following: 
(1) Technical assistance and training, including the provi-
sion of necessary circulars and training materials. 
(2) Assistance in the preparation and maintenance of a 
continuing inventory of information on tribal energy resources 
and tribal operations. In providing assistance under this para-
graph. Federal departments and agencies shall make available 
to Indian tribes all relevant data concerning tribal energy 
resource development consistent with applicable laws regarding 
disclosure of proprietary and confidential information. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated $10,000,000 for each of the fiscal years 1994, 
1995, 1996, and 1997 to carry out the purposes of this section. 
SEC. 2606. INDIAN ENERGY RESOURCE COMMISSION. 
25 USC 3505. 
(a) ESTABLISHMENT.—^There is hereby established the Indian 
Energy Resource Commission (hereafter in this section referred 
to as uie "Commission"). 
(b) MEMBERSHIP.—^The Commission shall consist o
f
— 
(1) 8 members appointed by the Secretary of the Interior 
from recommendations submitted by Indian tribes with develop-
able energy resources, at least 4 of whom shall be elected 
tribal leaders; 
(2) 3 members appointed by the Secretary of the Interior 
from recommendations submitted by the Governors of States 
that have Indian reservations with developable energy 
resources; 
(3) 2 members appointed by the Secretary of the Interior 
from among individuals in the private sector with expertise 
in tribal and State taxation of energy resources; 
(4) 2 members appointed by the Secretary of the Interior 
from individuals with expertise in oil and gas royalty manage-
ment administration, including auditing and accounting; 
(5) 2 members appointed by the Secretary of the Interior 
from individuals in the private sector with expertise in energy 
development; 
106 STAT. 3116 
PUBLIC LAW 102-486—OCT. 24, 1992 
(6) 1 member appointed by the Secretary of the Interior 
from recommendations submitted by National environmental 
organizations; 
(7) the Secretary of the Interior, or his designee; and 
(8) the Secretary of Energy, or his designee. 
(c) APPOINTMENTS.—^Members of the Commission shall be 
appointed not later than 60 days after the date of the enactment 
of this title. 
(d) VACANCIES.—^A vacancy in the Commission shall be filled 
in the same manner as the original appointment was made. A 
vacancy in the Commission shall not s^ect the powers of the 
Commission. 
(e) CHAIRPERSON.—^The members of the Commission shall elect 
a Chairperson from among the members of the Commission. 
(f) QUORUM.—Eleven members of the Commission shall con-
stitute a quorum, but a lesser number may hold hearings. 
(g) ORGANIZATIONAL MEETING.—The Commission shall hold an 
organizational meeting to establish the rules and procedures of 
the Commission not later than 30 days after the members are 
first appointed to the Commission. 
(h) COMPENSATION.—^Each member of the Commission who is 
not an officer or employee of the United States shall be compensated 
at a rate established by the Commission, not to exceed the rate 
of basic pay payable for level IV of the Executive Schedule imder 
section 5315 of title 5, United States Code, for each day (including 
travel time) during which such member is engaged in the actual 
performance of duties as a member of the Commission. Each mem-
ber of the Commission who is an officer or employee of the United 
States shall receive no additional compensation. 
(i) TRAVEL.—^While away from their homes or regular places 
of business in the performance of duties for the Commission, all 
members of the Commission shall be allowed travel expenses, 
including per diem in lieu of subsistence, at a rate established 
by the Commission not to exceed the rates authorized for employees 
under sections 5702 and 5703 of title 5, United States Code. 
(j) COMMISSION STAFF.— 
(1) EXECUTIVE DIRECTOR.—^The Commission shall appoint 
an Executive Director who shall be compensated at a rate 
established by the Commission not to exceed the rate of basic 
pay payable for level V of the Executive Schedule under section 
5316 of title 5, United States Code. 
(2) ADDITIONAL PERSONNEL.—With the approval of 
the 
Commission, the Executive Director may appoint and fix the 
compensation of such additional personnel as the Executive 
Director considers necessary to carry out the duties of the 
Commission. Such appointments shall be made in accordance 
with the provisions of title 5, United States Code, governing 
appointments in the competitive service, but at rates not to 
exceed the rate of basic pay payable for level 15 of the General 
Schedule. 
(3) EXPERTS AND CONSULTANTS.—Subject to such rules as 
may be issued by the Commission, the Chairperson may procure 
temporary and intermittent services of experts and consultants 
to the same extent as is authorized by section 3109 of title 
5, United States Code, but at rates not to exceed $200 a 
day for individuals. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3117 
(4) PERSONNEL D
E
T
A
I
L AUTHORIZED.—Upon the request of 
j 
the Chairperson, the head of any Federal agency is authorized 
| 
to detail, on a reimbursable basis, any of the personnel of 
such agency to the Commission to assist the Commission in 
carrying out its duties under this title. Such detail shall be 
without interruption or loss of civil service status or privilege, 
(k) DUTIES OF THE COMMISSION.—The Commission shall— 
(1) develop proposals to address the dual taxation by Indian 
tribes and States of the extraction of mineral resources on 
Indian reservations; 
(2) make recommendations to improve the management, 
administration, accoimting and auditing of royalties associated 
with the production of oil and gas on Inman reservations; 
(3) develop alternatives for the collection and distribution 
of royalties associated with production of oil and gas on Indian 
reservations; 
(4) develop proposals on incentives to foster the develop-
ment of energy resources on Indian reservations; 
(5) identify barriers or obstacles to the development of 
energy resources on Indian reservations, and make rec-
ommendations designed to foster the development of energy 
resources on Indian reservations and promote economic develop-
ment; 
(6) develop proposals for the promotion of vertic£d integra-
tion of the development of energy resources on Indian reserva-
tions; and 
(7) develop proposals on taxation incentives to foster the 
development of energy resources on Indian reservations includ-
ing, but not limited to, investment tax credits and enterprise 
zone credits. 
(1) POWERS OF THE COMMISSION.—The powers of the Commis-
sion shall include the following: 
(1) For the purpose of carrying out its duties under this 
section, the Commission may hold hearings, take testimony, 
and receive evidence at such times and places as the Commis-
sion considers appropriate. The Commission may administer 
oaths or affirmations to witnesses appearing before the 
Commission. 
(2) Any member or employee of the Commission may, if 
authorized by the Commission, take any action which the 
Commission is authorized to take by this section. 
(3) The Commission may secure directly from any Federal 
agency such information as may be necessary to enable the 
Conmussion to carry out its duties under this section. 
(m) COMMISSION REPORT.— 
(1) IN GENERAL.—^The Commission shall, within 12 months 
after Ainds are made available to carry out this section, prepare 
and transmit to the President, the Committee on Interior and 
Insular Affairs of the House of Representatives, the Select 
Committee on Indian i\ffairs of the Senate, and the Committee 
on Energy and Natural Resources of the Senate, a report 
containing the recommendations and proposals specified in sub-
section (k). 
(2) REVIEW AND COMMENT.—Prior to submission of the 
report required under this section, the Chairman shall circulate 
a draft of the report to Indian tribes and States that have 
106 STAT. 3118 
PUBLIC LAW 102-486—OCT. 24, 1992 
Indian reservations with developable energy resources and 
other interested tribes and States for review and comment. 
(n) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Commission $1,000,000 to carry out this 
section. Such sum shall remain available, without fiscal year limita-
tion, until expended. 
(o) TERMINATION.—^The Commission shall terminate 30 days 
after submitting the final report required by subsection (m). 
25 use 3506. 
SEC. 2606. TRIBAL GOVERNMENT ENERGY ASSISTANCE PROGRAM. 
(a) FINANCIAL ASSISTANCE.—The Secretary may grant financial 
assistance to Indian tribal governments, or private sector persons 
working in cooperation with Indian tribal governments, to carry 
out projects to evaluate the feasibiliW of, develop options for, and 
encourage the adoption of energy efficiency and renewable energy 
projects on Indian reservations. Such grants mav include the costs 
of technical assistance in resource assessment, feasibility analysis, 
technology transfer, and the resolution of other technical, financial, 
or management issues identified by the applicants for such grants. 
(b) CONDITIONS.—^Any applicant for financial assistance under 
this section must evidence coordination and cooperation with, and 
support from, local educational institutions and the affected local 
energy institutions. 
(c) CONSIDERATIONS.—^In determining the amount of financial 
assistance to be provided for a proposed project, the Secretary 
shall consider— 
(1) the extent of involvement of local educational institu-
tions and local energy institutions; 
(2) the ease and costs of operation and maintenance of 
any project contemplated as a part of the project; 
(3) whether the measure will contribute significantly to 
the development, or the quality of the environment, of the 
affected Indian reservations; and 
(4) any other factors which the Secretary may determine 
to be relevant to a particular project. 
(d) COST-SHARE.—^With the exception of grants awarded for 
the purpose of feasibility studies, the Secretary shall require at 
least 20 percent of the costs of any project under this section 
to be provided from non-Federal sources, unless the grant recipient 
is a for-profit private sector institution, in which case the Secretary 
shall require at least 50 percent of the costs of any project to 
be provided from non-Federal sources. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated such sums as are necessary for the development 
and implementation of the program estabUshed by this section. 
TITLE XXVII—INSULAR AREAS ENERGY 
SECURITY 
SEC. 270L INSULAR AREAS ENERGY ASSISTANCE PROGRAM. 
Section 604 of the Act entitled "An Act to authorize appropria-
tions for certain insular areas of the United States, and for other 
purposes", PubUc Law 96-597, as amended by Public Law 98-
213 (48 U.S.C. 1492), is amended by adding at the end the following 
new subsection: 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3119 
"(g) FINANCIAL ASSISTANCE.—(1) The Secretary of Energy may 
pprant financial assistance, not to exceed $2,000,000 annually, to 
insular area governments or private sector persons working in 
cooperation with insular area governments to carry out projects 
to evaluate the feasibility of, develop options for, and encourage 
the adoption of energy emciency and renewable energy measures 
which reduce the dependency of the insular areas on imported 
fuels, improve the quality of the environment, and promote develop-
ment in the insular areas. 
"(2) Any applicant for financial assistance under this subsection 
must evidence coordination and cooperation with, and support from, 
the affected local energy institutions. 
"(3) In determining the amount of financial assistance to be 
provided for a proposed project, the Secretary shall consider— 
"(A) whether the measure will reduce the relative depend-
ence of the insular area on imported fuels; 
"(B) the ease and costs of operation and maintenance of 
any facilities contemplated as a part of the project; 
"(C) whether the project will rely on the use of conservation 
measures or indigenous, renewable energy resources that were 
identified in the 1982 Territorial Energy Assessment or that 
are identified by the Secretary as consistent with the purposes 
of this subsection; 
"(D) whether the measure will contribute significantly to 
development and the quality of the environment in the insular 
area; and 
"(E) any other factors which the Secretary may determine 
to be relevant to a particular project. 
"(4) Notwithstanding the requirements of section 501(d) of Pub-
Uc Law 95-134 (48 U.S.C. 1469a(d)), the Secretary shall require 
at least 20 percent of the costs of any project under this subsection 
to be provided from non-Federal sources. Such cost sharing may 
be in the form of in-kind services, donated equipment, or any 
combination thereof. 
"(5) For the purposes of this subsection— 
"(A) the term 'insular area' means American Samoa, the 
Commonwesdth of the Northern Mariana Islands, the Common-
wealth of Puerto Rico, the Federated States of Micronesia, 
Guam, the Republic of the Marshall Islands, the Republic of 
Palau, and the Virgin Islands; and 
"(B) the term *1982 Territorial Energy Assessment' means 
the comprehensive energy plan prepared by the Secretary of 
Energy pursuant to subsection (c). . 
SEC. 2702. DEFINITION. 
For amendment of the definition of the term "State" for pur-
poses of the nuclear waste negotiation provisions of title IV of 
the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10241 et seq.), 
see section 802(b). 
SEC. 2703. ELECTRICITY REQUIREMENTS IN TRUST TERRITORY OF 
THE PACIFIC ISLANDS. 
Not later than 3 months after the completion of the Palau 
National Master Development Plan developed pursuant to the 
Department of the Interior Secretary's Order No. 3142, the Sec-
retary of the Interior shall, in consultation with the Government 
of Palau, submit a plan to the Committee on Energy and Natural 
Resources of the Senate and the Committee on Interior and Insular 
106 STAT. 3120 
PUBLIC LAW 102-486—OCT. 24, 1992 
Affairs of the House of Representatives to provide electric service 
in Palau that is consistent with determinations made in developing 
the Palau National Master Development Plan, with regard to the 
need for and financing and scheduling of the availability of such 
service. 
SEC. 2704. PCB CLEANUP IN MARSHALL ISLANDS AND FEDERATED 
STATES OF MICRONESIA. 
48 use 1681 
Section 105(h) of Public Law 99-239 is amended by adding 
^°^- 
at the end the following new paragraph: 
"(5) The programs and services of the Environmental Protection 
Agency regarding PCB's shall, to the extent applicable, as appro-
priate, and in accordance with applicable law, be construed to 
oe made available to such islands.". 
TITLE XXVIII—NUCLEAR PLANT 
LICENSING 
SEC. 2801. COMBINED LICENSES. 
Section 185 of the Atomic Energy Act of 1954 (42 U.S.C. 2235) 
is amended— 
(1) in the heading for such section by adding "and Operat-
ing Licenses" after "Permits"; 
(2) by adding a subsection designator "a." before "All 
applicants for licenses"; and 
(3) by adding at the end the following new subsection: 
"b. After nolding a public hearing under section 189 a. (IXA), 
the Commission shall issue to the applicant a combined construction 
and operating license if the application contains sufficient informa-
tion to support the issuance of a combined license and the Commis-
sion determines that there is reasonable assurance that the facility 
will be constructed and will operate in conformity with the license, 
the provisions of this Act, and the Commission's rules and regula-
tions. The Commission shall identify within the combined license 
the inspections, tests, and analyses, including those applicable to 
emergency planning, that the licensee shall perform, and the accept-
ance criteria that, if met, are necessary and sufiicient to provide 
reasonable assurance that the facility has been constructed and 
will be operated in conformity with the license, the provisions 
of this Act, and the Commission's rules and regulations. Following 
issuance of the combined license, the Commission shall ensure 
that the prescribed inspections, tests, and analyses are performed 
and, prior to operation of the facility, shall find that the prescribed 
acceptance criteria are met. Any finding made under this subsection 
shall not require a hearing except as provided in section 189 a. 
(IXB).". 
SEC. 2802. POST-CONSTRUCTION HEARINGS ON COMBINED UCENSES. 
Section 189 a. (1) of the Atomic Energy Act of 1954 (42 U.S.C. 
2239(aXl)) is amended— 
(1) by adding a subparagraph designator "(A)" before "In 
any proceeding under this Act,"; and 
(2) by adding after subparagraph (A) the following new 
subparagraph: 
Federal 
"(BXi) Not less than 180 days before the date scheduled for 
^^^^cation 
initial loading of fuel into a plant by a licensee that has been 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3121 
issued a combined construction permit and operating license under 
section 185 b., the Commission snail publish in the Federal Register 
notice of intended operation. That notice shall provide that any 
person whose interest may be affected by operation of the plant, 
may within 60 days request the Commission to hold a hearing 
on whether the facility as constructed complies, or on completion 
will comply, with the acceptance criteria of the license. 
"(ii) A request for hearing under clause (i) shall show, prima 
facie, that one or more of the acceptance criteria in the combined 
Ucense have not been, or will not be met, and the specific operational 
consequences of nonconformance that would be contrary to providing 
reasonable assurance of adequate protection of the public health 
and safety. 
"(iii) After receiving a request for a hearing under clause (i), 
the Commission expeditiously shall either deny or grant the request. 
If the request is granted, the Commission shall determine, after 
considering petitioners' prima facie showing and any answers there-
to, whether during a period of interim operation, there will be 
reasonable assurance of adequate protection of the public health 
and safety. If the Commission determines that there is such reason-
able assurance, it shall allow operation during an interim period 
under the combined license. 
"(iv) The Commission, in its discretion, shall determine appro-
priate hearing procedures, whether informal or formal adijudicatory, 
for any hearing under clause (i), and shall state its reasons therefor. 
"(v) The Commission shall, to the maximimi possible extent, 
render a decision on issues raised by the hearing request within 
180 days of the publication of the notice provided by clause (i) 
or the anticipated date for initial loading of fuel into the reactor, 
whichever is later. Commencement of operation under a combined 
Ucense is not subject to subparagraph (A).". 
SEC. 2803. RULEMAKING. 
The Nuclear Regulatoiy Commission shall modify part 52 of 
title 10, Code of Federal Kegulations, to conform witn sections 
185 b. and 189 a. (IXB) of the Atomic Energy Act of 1954, as 
added by sections 2801 and 2802 of this Act, not later than 1 
year after the date of the enactment of this Act. 
SEC. 2804. AMENDMENT OF A COMBINED UCENSE PENDING A HEAR. 
ING. 
Section 189 a. (2) of the Atomic Energy Act of 1954 (42 U.S.C. 
2239(aX2)) is amended by inserting "or any amendment to a com-
bined construction and operating license" after "any amendment 
to an operating license" each time it occurs. 
SEC. 2805. JUDICIAL REVIEW. 
Section 189 b. of the Atomic Energy Act of 1954 (42 U.S.C. 
2239(b)) is amended by inserting "or any final order allovdng or 
prohibiting a facility to begin operating under a combined construc-
tion and operating license" before '^hall be subject to judicial 
review". 
SEC. 2806. EFFECT ON PENDING PROCEEDINGS. 
42 USC 2235 
Sections 185 b. and 189 a. (IXB) of the Atomic Energy Act 
of 1954, as added by sections 2801 and 2802 of this Act, shall 
apply to all proceedings involving a combined license for which 
an application was filed after May 8, 1991, under such sections. 
106 STAT. 3122 
PUBLIC LAW 102-486—OCT. 24, 1992 
SEC. 2807. CONFORMING AMENDMENT. 
The table of contents of the Atomic Energy Act of 1954 is 
amended by amending the item related to section 185 to read 
as follows: 
"Sec. 185. Construction Permits and Operating Licenses.". 
TITLE XXIX—ADDITIONAL NUCLEAR 
ENERGY PROVISIONS 
SEC. 2901. STATE AUTHORITY TO REGULATE RADIATION 
BELOW 
LEVEL OF NRC REGULATORY CONCERN. 
(a) IN GENERAL.—The Atomic Energy Act of 1954 (42 U.S.C. 
2011 et seq.) is amended by inserting after section 275 the following 
new section: 
42 use 2023. 
"SEC. 276. STATE AUTHORITY TO REGULATE 
RADIATION 
BELOW 
LEVEL OF REGULATORY CONCERN OF NUCLEAR REGU-
LATORY COMMISSION. 
"(a) IN GENERAL.—^No provision of this Act, or of the Low-
Level Radioactive Waste Policy Act, may be construed to prohibit 
or otherwise restrict the authority of any State to regulate, on 
the basis of radiological hazard, the disposal or off-site incineration 
of low-level radioactive waste, if the Nuclear Regulatory Commis-
sion, after the date of the enactment of the Energy Policy Act 
of 1992 exempts such waste from regulation. 
"(b) RELATION TO OTHER STATE AUTHORITY.—This section may 
not be construed to imply preemption of existing State authority. 
Except as expressly provided in subsection (a), this section may 
not be construed to confer on any State any additional authority 
to regulate activities licensed by the Nuclear Regulatory Commis-
sion. 
"(c) DEFINITIONS.—^For purposes of this section: 
"(1) The term 'low-level radioactive waste' means radio-
active material classified by the Nuclear Regulatory Commis-
sion as low-level radioactive waste on the date of the enactment 
of the Energy Policy Act of 1992. 
"(2) The term *off-site incineration* means any incineration 
of radioactive materials at a facility that is located ofT the 
site where such materials were generated. 
"(3) The term 'State' means each of the several States, 
the District of Columbia, and any commonwealth, territory, 
or possession of the United States.". 
(b) REVOCATION OF RELATED NRC POLICY STATEMENTS.—The 
policy statements of the Nuclear Regulatory Commission published 
in the Federal Register on July 3, 1990 (55 Fed. Reg. 27522) 
and August 29, 1986 (51 Fed. Reg. 30839), relating to radioactive 
waste below regulatory concern, shall have no effect after the date 
of the enactment of this Act. 
(c) CONFORMING AMENDMENT.^The table of contents of the 
Atomic Energy Act of 1954 (42 U.S.C. 2011 prec.) is amended 
by inserting after the item relating to section 275 the following 
new item: 
"Sec. 276. State authority to regulate radiation below level of regulatory concern of 
Nuclear Regulatory Commission.". 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3123 
SEC. 2902. EMPLOYEE PROTECTION FOR NUCLEAR WHISTLEBLOWERS. 
(a) INTERNAL WHISTLEBLOWERS; EMPLOYERS.—Section 210(a) 
of the Energy Reorganization Act of 1974 (42 U.S.C. 5851(a)) is 
amended— 
(1) by inserting "(1)" after "SEC. 210. (a)"; 
(2) by striking ", including" and all that follows through 
"licensee or applicant,**; 
(3) by inserting after the dash the following new subpara-
graphs: 
"(A) notified his employer of an alleged violation of this 
Act or the Atomic Energy Act of 1954 (42 U.S.C. 2011 et 
seq.); 
"(B) refused to engage in anv practice made unlawful by 
this Act or the Atomic Energy Act of 1954, if the employee 
has identified the alleged illegality to the employer; 
"(C) testified before Congress or at any Federal or State 
proceeding regarding any provision (or proposed provision) of 
this Act or the Atomic Energy Act of 1954;"; 
(4) by redesignating paragraphs (1) through (3) as subpara-
graphs (D) through (F), respectively; and 
(5) by adding at the end the following new paragraph: 
"(2) For purposes of this section, the term 'employer' includes— 
"(A) a licensee of the Commission or of an agreement 
State under section 274 of the Atomic Energy Act of 1954 
(42 U.S.C. 2021); 
"(B) an applicant for a license from the Commission or 
such an agreement State; 
"(C) a contractor or subcontractor of such a licensee or 
applicant; and 
"(D) a contractor or subcontractor of the Department of 
Energy that is indemnified by the Department under section 
170 d. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)), 
but such term shall not include any contractor or subcontractor 
covered by Executive Order No. 12344.". 
(b) TIME PERIOD FOR FILING COMPLAINT.—Section 210(b)(1) of 
the Energy Reorganization Act of 1974 (42 U.S.C. 5851(bXl)) is 
amended by striking "thirty days" and inserting "180 days". 
(c) INTERIM RELIEF.—Section 210(b)(2)(A) of the Energy Reorga-
nization Act of 1974 (42 U.S.C. 5851(b)(2)(A)) is amended by insert-
ing before the last sentence the following: "Upon the conclusion 
of such hearing and the issuance of a recommended decision that 
the complaint has merit, the Secretary shall issue a preliminary 
order providing the relief prescribed in subparagraph (B), but may 
not order compensatory damages pending a nnal order.". 
(d) AVOIDANCE OF FRIVOLOUS COMPLAINTS.—Section 210(b) of 
the Energy Reorganization Act of 1974 (42 U.S.C. 5851(b)) is amend-
ed by adding at the end the following new paragraph: 
"(3)(A) The Secretary shall dismiss a complaint filed under 
paragraph (1), and shall not conduct the investigation required 
under paragraph (2), unless the complainant has made a prima 
facie showing that any behavior described in subparagraphs (A) 
through (F) of subsection (a)(1) was a contributing factor in the 
unfavorable personnel action alleged in the complaint. 
"(B) Notwithstanding a finding by the Secretary that the 
complainant has made the showing required by subparagraph (A), 
no investigation required under paragraph (2) shall be conducted 
if the employer demonstrates, by clear and convincing evidence. 
106 STAT. 3124 
PUBLIC LAW 102-486—OCT. 24, 1992 
that it would have taken the same unfavorable personnel action 
in the absence of such behavior. 
"(C) Hie Secretary may determine that a violation of subsection 
(a) has occurred only if the complainant has demonstrated that 
any behavior described in subparagraphs (A) through (F) of sub-
section (aXD was a contributing factor in the unfavorable personnel 
action alleged in the complaint. 
"(D) Relief may not be ordered under paragraph (2) if the 
employer demonstrates by clear and convincing evidence that it 
would have taken the same unfavorable personnel action in the 
absence of such behavior.". 
(e) NONPREEMPTION.—Section 210 of the Energy Reorganization 
Act of 1974 (42 U.S.C. 5851) is amended by adding at the end 
the following new subsection: 
"(h) This section may not be construed to expand, diminish, 
or otherwise affect any right otherwise available to an employee 
under Federal or State law to redress the employee's discharge 
or other discriminatory action taken by the employer against the 
employee.". 
(0 POSTING REQUIREMENT.—Section 210 of the Ener»r Reorga-
nization Act of 1974 (42 U.S.C. 5851) is further amended oy adding 
at the end the following new subsection: 
"(i) The provisions of this section shall be prominently posted 
in any place of emplojrment to which this section applies.". 
(g) 
DUTY OF N R C TO INVESTIGATE SUBSTANTIVE ALLEGA-
TIONS.—Section 210 of the Energy Reorganization Act of 1974 (42 
U.S.C. 5851) is further amended by adding at the end the following 
new subsection: 
"(j)(l) The Commission or the Department of Energy shall 
not delay taking appropriate action with respect to an allegation 
of a substantial safety hazard on the basis of— 
"(A) the filing of a complaint under subsection (bXD arising 
from such allegation; or 
"(B) any investigation by the Secretary, or other action, 
under this section in response to such complaint. 
"(2) A determination by the Secretary under this section that 
a violation of subsection (a) has not occurred shall not be considered 
by the Commission or the Department of Energy in its determina-
tion of whether a substantial safety hazard exists.". 
(h) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) Tlie title heading of title II of the Energy Reorganization 
Act of 1974 (42 U.S.C. 5841 et seq.) is amended to read as 
follows: 
"TITLE II—NUCLEAR REGULATORY COMMISSION; NUCLEAR 
WHISTLEBLOWER PROTECTION". 
(2) Section 21(KbXl) of the Energy Reorganization Act of 
1974 (42 U.S.C. 5851(bXl)) is amended— 
(A) by striking "(hereinafter in this subsection referred 
to as the Secretary*)" and inserting "(in this section referred 
to as the 'Secretary")"; and 
(B) by striking "and the Commission" and inserting 
", the CJommission, and the Department of Energy". 
(3) Tlie second of the two sections of the Energy Reorganiza-
tion Act of 1974 that is numbered 210 (42 U.S.C. 5851) is 
redesignated as section 211. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3125 
(i) APPLICABILITY.—^The amendments made by this section shall 42 use 5851 
apply to claims filed under section 211(b)(1) of the Energy Reorga- "°*®-
nization Act of 1974 (42 U.S.C. 5851(b)(1)) on or after the date 
of the enactment of this Act. 
SEC. 2903. EXEMPTION OF CERTAIN RESEARCH AND EDUCATIONAL 
LICENSEES FROM ANNUAL CHARGES. 
(a) IN GENERAL.—Section 6101(c) of the Omnibus Budget Rec-
oncihation Act of 1990 (42 U.S.C. 2214(c)) is amended— 
(1) in paragraph (1), by striking "Any licensee" and insert-
ing "Except as provided in paragraph (4), any licensee"; and 
(2) by adding at the end the following new paragraph: 
"(4) EXEMPTION.— 
"(A) IN GENERAL.—Paragraph (1) shall not apply to 
the holder of any license for a federally owned research 
reactor used primarily for educational training and aca-
demic research purposes. 
"(B) RESEARCH REACTOR.—For purposes of subpara-
graph (A), the term 'research reactor' means a nuclear 
reactor that— 
"(i) is licensed by the Nuclear Regulatory Commis-
sion under section 104 c. of the Atomic Energy Act 
of 1954 (42 U.S.C. 2134(c)) for operation at a thermal 
power level of 10 megawatts or less; and 
"(ii) if so licensed for operation at a thermal power 
level of more than 1 megawatt, does not contain— 
"(I) a circulating loop through the core in 
which the licensee conducts fuel experiments; 
"(II) a liquid fuel loading; or 
"(III) an experimental facility in the core in 
excess of 16 square inches in cross-section.". 
(b) APPLICABILITY.—The amendments made subsection (a) shall 
42 use 2214 
apply to annual charges assessed under section 6101(c) of the "°*®-
Omnibus Budget Reconciliation Act of 1990 for fiscal year 1992 
or any succeeding fiscal year. 
(c) POLICY REVIEW.—The Nuclear Regulatory Commission shall 
42 USC 2214 
review its policy for assessment of annual charges under section "°*®-
6101(c) of the Omnibus Budget Reconciliation Act of 1990, solicit 
public comment on the need for changes to such policy, and rec-
ommend to the Congress such changes in existing law as the 
Commission finds are needed to prevent the placement of an unfair 
burden on certain licensees of the Commission, in particular those 
that hold licenses to operate federally owned research reactors 
used primarily for educational training and academic research pur-
poses. 
SEC. 2904. STUDY AND IMPLEMENTATION PLAN ON SAFETY OF SHIP-
MENTS OF PLUTONIUM BY SEA. 
(a) STUDY.—^The President, in consultation with the Nuclear 
Regulatory Commission, shall conduct a study on the safety of 
shipments of plutonium by sea. The study shall consider the follow-
ing: 
(1) The safety of the casks containing the plutonium. 
(2) The safety risks to the States of such shipments. 
(3) Upon the request of any State, the adequacy of that 
State's emergency plans with respect to such shipments. 
(4) The Federal resources needed to assist the States on 
account of such shipments. 
106 STAT. 3126 
PUBLIC LAW 102-486—OCT. 24, 1992 
(b) REPORT.—The President shall, not later than 60 days after 
the date of the enactment of this Act, transmit to the Congress 
a report on the study conducted under subsection (a), together 
with his recommendations based on the study. 
(c) IMPLEMENTATION PLAN.—The President, in consultation with 
the Nuclear Regulatory Commission, shall establish a plan to imple-
ment the recommendations contained in the study conducted under 
subsection (a) and shall, not later than 90 days after transmitting 
the report to the Congress under subsection (b), transmit to the 
Congress that implementation plan. 
(d) DEFINITION.—As used in this section, the term "State" 
includes the District of Columbia and any commonwealth, territory, 
or possession of the United States. 
TITLE XXX—MISCELLANEOUS 
Subtitle A—General Provisions 
42 use 13541. 
SEC. 3001. RESEARCH, 
DEVELOPMENT, 
DEMONSTRATION, 
AND 
COMMERCIAL APPUCATION ACTIVITIES. 
(a) 
RESEARCH, 
DEVELOPMENT, AND 
DEMONSTRATION.—(1) 
Except as otherwise provided in this Act, research, development, 
and demonstration activities under this Act may be carried out 
under the procedures of the Federal Nonnuclear Research and 
Development Act of 1974 (42 U.S.C. 5901-5920), the Atomic Energy 
Act of 1954 (42 U.S.C. 2011 et seq.), or any other Act under 
which the Secretary is authorized to carry out such activities, 
but only to the extent the Secretary is authorized to carry out 
such activities under each such Act. An objective of any demonstra-
tion program under this Act shall be to determine the technical 
and commercial feasibility of energy technologies. 
(2) Except as otherwise provided in this Act, in carrying out 
research,^ development, and demonstration programs and activities 
under this Act, the Secretary may use, to the extent authorized 
under applicable provisions of law, contracts, cooperative agree-
ments, cooperative research and development agreements under 
the Stevenson-Wydler Technology Innovation Act of 1980, grants, 
joint ventures, and any other form of agreement available to the 
Secretary. 
(b) C
O
M
M
E
R
C
I
A
L APPLICATION.—Except as otherwise provided 
in this Act, in carrying out commercial application programs and 
commercial application activities under this Act, the Secretary may 
use, to the extent authorized under applicable provisions of law, 
contracts, cooperative agreements, cooperative research and devel-
opment agreements under the Stevenson-Wydler Technology 
Innovation Act of 1980, grants, joint ventures, and any other form 
of agreement available to the Secretary. An objective of any commer-
cial application program under this Act shall be to accelerate the 
transition of technologies from the research and development stage. 
(c) DEFINITION.—For purposes of this section, the term "joint 
venture" has the meaning given the term "joint research and devel-
^ment venture" under section 2(aX6) and (b) of the National 
Cooperative Research Act of 1984 (15 U.S.C. 4301(aX6) and (b)), 
except that such term may apply imder this section to research, 
development, demonstration, and commercial application joint ven-
tiures. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3127 
(d) PROTECTION OF INFORMATION.—Section 12(cX7) of the 
Stevenson-Wydler Technology Innovation Act of 1980, relating to 
the protection of information, shall apply to research, development, 
demonstration, and commercial application programs and activities 
under this Act. 
(e) GUIDELINES AND I*ROCEDURES.—The Secretary shall provide 
guidelines and procedures for the transition, where appropriate, 
of energy technologies from research through development and dem-
onstration under subsection (a) to commercial application under 
subsection (b). Nothing in this section shall preclude the Secretary 
from— 
(1) entering into a contract, cooperative agreement, coopera-
tive research and development agreement under the Stevenson-
Wydler Technology Innovation Act of 1980, grant, joint venture, 
or any other form of agreement available to the Secretary 
under this section that relates to research, development, dem-
onstration, and commercial application; or 
(2) extending a contract, cooperative agreement, cooperative 
research and development agreement under the Stevenson-
Wydler Technology Innovation Act of 1980, grant, joint venture, 
or any other form of agreement available to the Secretary 
that relates to research, development, and demonstration to 
cover commercial application. 
(D APPLICATION OF SECTION.—This section shall not apply to 
any contract, cooperative agreement, cooperative research and 
development agreement iimder the Stevenson-Wydler Technology 
Innovation Act of 1980, grant, joint venture, or any other form 
of agreement available to the Secretary that is in effect as of 
the date of the enactment of this Act. 
SEC. 3002. COST SHARING. 
42 USC 13542. 
(a) RESEARCH AND DEVELOPMENT.—Except as otherwise pro-
vided in this Act, for research and development programs carried 
out imder this Act, the Secretary shall require a commitment from 
non-Federal sources of at least 20 percent of the cost of the project. 
The Secretary may reduce or eUminate the non-Federal requirement 
under this subsection if the Secretary determines that the research 
and development is of a basic or fundamental nature. 
(b) DEMONSTRATION AND COMMERCIAL APPUCATION.—Except 
as otherwise provided in this Act, the Secretary shall require at 
least 50 percent of the costs directly and specifically related to 
any demonstration or commercial application project under this 
Act to be provided from non-Federal sources. The Secretary may 
reduce the non-Federal requirement under this subsection if the 
Secretary determines that the reduction is necessary and appro-
priate considering the technological risks involved in the project 
and is necessary to meet the objectives of this Act. 
(c) CALCULATION OF AMOUNT.—In calculating the amount of 
the non-Federal commitment imder paragraph (1) or (2), the Sec-
retary shall include cash, personnel, services, equipment, and other 
resources. 
(d) TENNESSEE VALLEY AUTHORITY.—Funds derived by the Ten-
nessee Valley Authority from its power program may be used for 
all or part of any cost sharing requirements under this section, 
except to the extent that such funds are provided by annual appro-
priation Acts. 
106 STAT. 3128 
PUBLIC LAW 102-486—OCT. 24, 1992 
Subtitle B—Other Miscellaneous 
Provisions 
SEC. 3011. POWERPLANT AND INDUSTRIAL FUEL USE ACT OF 1978 
REPEAL. 
Section 403(c) of the Powerplant and Industrial Fuel Use Act 
of 1978 (42 U.S.C. 8373(c)) is repealed. 
SEC. 3012. ALASKA NATURAL GAS TRANSPORTATION ACT OF 1976 
REPEAL. 
(a) REPEAL.—Section 7(a)(5) of the Alaska Natural 
Gas 
Transportation Act of 1976 (15 U.S.C. 719e(a)(5)) is repealed. 
15 use 719e. 
(b) ABOLITION OF OFFICE OF FEDERAL INSPECTOR OF CONSTRUC-
TION.—^The Office of Federal Inspector of Construction for the 
Alaska Natural Gas Transportation System, created pursuant to 
the paragraph repealed by subsection (a) of this section, is abolished. 
All functions and authority vested in the Inspector are hereby 
transferred to the Secretary of Energy. 
(c) REVOCATION OF CERTAIN (JFI REGULATIONS.—Regulations 
applicable to the Office of Federal Inspector of the Alaska Natural 
Gas Transportation System, as set forth in chapter 15 of title 
10, Code of Federal Regulations, are hereby revoked. 
42 use 13551. 
SEC 3013. GEOTHERMAL HEAT PUMPS. 
The Secretary shall— 
(1) encourage States, municipalities, counties, and town-
ships to consider allowing the installation of geothermal heat 
pumps, and, where applicable, and consistent with public health 
and safety, to permit public and private water recipients to 
utilize the flow of water from, and back into, public and private 
water mains for the purpose of providing sufficient water supply 
for the operation of residential and commercial geothermal 
heat pumps; and 
(2) not discourage any local authority which allows the 
use ofgeothermal heat pumps from— 
(A) inspecting, at any reasonable time, geothermal heat 
pump connections to the water system to ensure the exclu-
sive use of the public or private water supply to the geo-
thermal heat pump system; and 
(B) requiring that geothermal heat pump systems be 
designed and installed in a manner that eliminates any 
risk of contamination to the public water supply. 
42 use 13552. 
SEC. 3014. USE OF ENERGY FUTURES FOR FUEL PURCHASES. 
(a) FUEL STUDY.—^Tbe Secretary shall conduct a study— 
(1) to ascertain if the use of energy futures and options 
contracts could provide cost-effective protection for Grovemment 
entities (including GrOvemment purchases for military purposes 
and for the Strategic Petroleum Reserve) and consumer coopera-
tives (or any organization whose purpose is to purchase fuel 
in bulk) from unanticipated surges in the price of fuel; and 
(2) to ascertain how such Government entities or consumer 
cooperatives may be educated in the prudent use of energy 
futures and options contracts to maximize their purchasing 
effectiveness, protect themselves against unanticipated surges 
in the price of fuel, and minimize fuel costs. 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3129 
(b) REPORT.—^The Secretary, no later than 12 months after 
the date of the enactment of this Act, shall transmit the study 
required in this section to the Committee on Energy and Commerce 
of the House of Representatives and the Committee on Energy 
and Natural Resources of the Senate. 
(c) PILOT PROGRAM.—^The Secretary shall conduct a pilot pro-
gram, commencing not later than 30 days after the transmission 
of the study required in subsection (b), to educate such govern-
mental entities, consumer cooperatives, or other organizations on 
the prudent and cost-effective use of energy futures and options 
contracts to increase their protection against unanticipated surges 
in the price of fuel and thereby increase the efficiency of their 
fuel purchase or assistance programs. 
(d) AUTHORIZATION.—There are authorized to be appropriated 
such simis as may be necessary to carry out this section. 
SEC. 3015. ENERGY SUBSIDY STUDY. 
42 USC 13553. 
(a) IN GENERAL.—^The Secretary shall contract with the 
National Academy of Sciences to conduct a study of energy subsidies 
that— 
(1) are in effect on the date of the enactment of this 
Act; or 
(2) have been in effect prior to the date of the enactment 
of this Act. 
(b) REPORT TO CONGRESS.—Not later than 18 months after 
the date of the enactment of this Act, the Secretary shall transmit 
to the Congress, the results of such study to be accompanied by 
recommendations for legislation, if any. 
(c) CONTENTS.— 
(1) IN GENERAL.—^The study shall identify and qviantify 
the direct and indirect subsidies and other legal and institu-
tional factors that influence decisions in the marketplace 
concerning fuels and energy technologies. 
(2) TOPICS FOR EXAMINATION.—The study shall examine— 
(A) fuel and technology choices that are— 
(i) available on the date of the enactment of this 
Act; or 
(ii) reasonably foreseeable on the date of the enact-
ment of this Act; 
(B) production subsidies for the extraction of raw mate-
rials; 
(C) subsidies encouraging investment in large capital 
projects; 
(D) indemnification; 
(E) fuel cycle subsiches, including waste disposal; 
(F) government research and development support; and 
(G) other relevant incentives and disincentives. 
(d) AUTHORIZATION OF APPROPRLVTIONS.—^There are authorized 
to be appropriated to carry out this section $500,000 for each 
of the fiscal years 1993 and 1994. 
SEC. 3016. TAR SANDS. 
42 USC 13554. 
(a) POLICY.—It is the policy of the United States to promote 
the development and production, by all means consistent with sound 
engineering, economic, and environmental practices, of deposits of 
tar sands. 
106 STAT. 3130 
PUBLIC LAW 102-486—OCT. 24, 1992 
(b) DEFINITION.—(1) For purposes of this section, the term 
"tar sands" means any consolidated or imconsolidated rock (other 
than coal, oil shale, or gilsonite) that either— 
(A) contains a hydrocarbonaceous material with a gas-
free viscosity, at original reservoir temperature, greater than 
10,000 centipoise; or 
(B) contains a hydrocarbonaceous material and is produced 
by mining or quarrying. 
(2) Nothing in this section is intended or shall be construed 
to affect in any way the definition of the term tar sands under 
any other provision of Federal law. 
(c) STUDY.—^The Secretary, in consultation with the Secretary 
of the Interior, shall submit a study to the House of Representatives 
and the Committee on Energy and Natural Resources of the Senate 
within one year after the date of enactment of this Act. Such 
study shall identify and evaluate the development potential of 
sources of tar sands in the United States. The study shall also 
identify and evaluate processes for extracting oil from the identified 
tar sand sources, including existing tar sands waste tailings, and 
evaluate the environmental benefits of, and the potential for co-
production of minerals and metals from, such processes. 
(d) AUTHORIZATION.—^There are authorized to be appropriated 
such sums as may be necessary for each of the fiscal years 1993 
and 1994 to carry out this section. 
SEC. 3017. AMENDMENTS TO TITLE 11 OF THE UNITED STATES CODE. 
(a) DEFINITION.—Section 101 of title 11, United States Code, 
is amended by inserting after paragraph (21) the following: 
'*(21A) 'farmout agreement' means a written agreement 
in which— 
"(A) the owner of a right to drill, produce, or operate 
liquid or gaseous hydrocarbons on property agrees or has 
agreed to transfer or assign all or a part of such right 
to another entity; and 
"(B) such other entity (either directly or through its 
agents or its assigns), as consideration, agrees to perform 
drilling, reworking, recompleting, testing, or similar or 
related operations, to develop or produce liquid or gaseous 
hydrocarbons on the property;". 
(b) PROPERTY OF THE ESTATE.—Section 541(b) of title 11, United 
States Code, is amended— 
(1) in paragraph (2) by striking "or" at the end, 
(2) in paragraph (3) by strucing the period at the end 
and inserting "o^, and 
(3) by adding at the end the following: 
"(4) any interest of the debtor in liquid or gaseous hydro-
carbons to uie extent that— 
"(A) the debtor has transferred or has agreed to trans-
fer such interest pursuant to a farmout agreement or any 
written agreement directly related to a farmout agreement; 
and 
"(B) but for the operation of this paragraph, the estate 
could include such interest only by virtue of section 365 
or 544(aX3) of this title. 
Paragraph (4) shall not be construed to exclude from the estate 
any consideration the debtor retains, receives, or is entitled to 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3131 
receive for transferring an interest in liquid or gaseous hydro-
carbons pursuant to a farmout agreement.". 
(c) EFFECTIVE DATE; APPLICATION OF AMENDMENTS.—(1) Except n use loi note. 
as provided in paragraph (2), the amendments made by this section 
shall take effect on tne date of the enactment of this Act. 
(2) The amendments made by this section shall not apply 
with respect to cases commenced under title 11 of the United 
States Code before the date of the enactment of this Act. 
SEC. 3018. RADIATION EXPOSURE COMPENSATION. 
Section 6 of the Radiation Exposure Compensation Act (42 
U.S.C. 2210 note) is amended by adding at the end the following 
new subsection: 
"(1) JUDICIAL REVIEW.—^An individual whose claim for com-
pensation under this Act is denied may seek judicial review solely 
m a district court of the United States. The court shall review 
the denial on the administrative record and shall hold unlawful 
and set aside the denial if it is arbitrary, capricious, an abuse 
of discretion, or otherwise not in accordance with law.". 
SEC. 3019. STRATEGIC DIVERSIFICATION. 
The Office of Barter within the United States Department Reports, 
of Commerce and the Interagency Group on Countertrade shall 
within six months from the date of enactment report to the Presi-
dent and the Congress on the feasibility 
of using barter, 
countertrade and other self-liquidating finance methods to facilitate 
the strategic diversification of United States oil imports through 
cooperation with the former Soviet Union in the development of 
its energy resources. The report shall consider among other relevant 
topics the feasibility of trading American grown food for Soviet 
produced oil, minerals or energy. 
SEC. 3020. CONSULTATIVE COMMISSION ON WESTERN HEMISPHERE 42 USC 13555. 
ENERGY AND ENVIRONMENT. 
(a) FINDINGS.—The Congress finds that— 
(1) there is growing mutual economic interdependence 
among the countries of the Western Hemisphere; 
(2) energy and environmental issues are intrinsically linked 
and must be considered together when formulating policy on 
the broader issue of sustainable economic development for the 
Western Hemisphere as a whole; 
(3) when developing their respective energy infrastructures, 
countries in the Western Hemisphere must consider existing 
and emerging environmental constraints, and do so in a way 
that results in sustaineible long-term economic growth; 
(4) the coordination of respective national energy and 
environmental policies of the governments of the Western Hemi-
sphere could be substantially improved through regular con-
sultation among these countries; 
(5) the development, production and consumption of energy 
can affect environmental quality, and the environmental con-
sequences of energy-related activities are not confined within 
national boundaries, but are regional and global in scope; 
(6) although the Western Hemisphere is richly endowed 
with indigenous energy resources, an insufficient energy supply 
would severely constrain future opportunities for sustainaole 
economic development and growth in each of these member 
countries; and 
106 STAT. 3132 
PUBLIC LAW 102-486—OCT. 24, 1992 
(7) the energy markets of the United States are linked 
with those in other countries of the Western Hemisphere and 
the world. 
(b) DEFINITION.—^For piirposes of this section, the term 
"Commission" means the Consultative Commission on Western 
Hemisphere Energy and Environment. 
(c) NEGOTIATIONS.—^The President is authorized to direct the 
United States representative to the Organization of ^nerican States 
to initiate negotiations with the Organization of American States 
for the establishment of a Consultative Commission on Western 
Hemisphere Energy and Environment under the auspices of the 
Organization of American States. 
(d) THE COMMISSION.—^In the course of the negotiations, the 
following shall be pursued: 
(1) OBJECTIVES.—^The objectives of the Commission shall 
be— 
(A) to evaluate from the viewpoint of the Western 
Hemisphere as a whole the energy and environmental 
situations, trends, and policies ofthe countries of the 
participating governments necessary to support sustainable 
economic development; 
(B) to recommend to the participating governments 
actions, policies, and institutional arrangements that will 
enhance cooperation and policy coordination among their 
respective countries in the future development and use 
of mdigenous energy resources and technologies, and in 
the future development and implementation of measures 
to protect the environment of the Western Hemisphere; 
and 
(C) to recommend to the participating governments 
actions and policies that will enhance energy and environ-
mental cooperation and coordination among the countries 
ofthe Western Hemisphere and the world. 
(2) COMPOSITION OF THE COMMISSION.—The Commission 
shall include representatives o
f
— 
(A) the respective foreign ener^ and environmental 
ministries or departments ofthe participating governments; 
(B) the parliamentary or legislative bodies with legisla-
tive responsibilities for energy and environmental matters; 
and 
(C) other governmental and non-governmental observ-
ers appointed by the heads of each participating govern-
ment on the basis of their experience and expertise. 
(3) SECRETARIAT.—A small secretariat shall be chosen by 
the participating governments for their expertise in the areas 
of energy and the environment. 
(4) SUNSET PROVISION.—The Commission's authority— 
(A) shall terminate five years from the date of the 
agreement under which it was created; and 
(B) may be extended for a five-year term at the expira-
tion of the previous term by agreement of the participating 
governments. 
(e) REPORT.—^The President shall, within one year after the 
date of enactment of this Act, report to the Committee on Energy 
and Commerce and the Committee on Foreign Affairs of the House 
of Representatives, and to the Committee on Energy and Natural 
Resources and the Committee on Foreign Relations of the Senate, 
PUBLIC LAW 102-486—OCT. 24, 1992 
106 STAT. 3133 
on the progress toward the establishment of the Commission and 
achievement of the purposes of this section. 
SEC. 3021. DISADVANTAGED BUSINESS ENTERPRISES. 
42 USC 13556. 
(a) GENERAL RULE.—^To the extent practicable, the head of 
each agency shall provide that the obligation of not less than 
10 percent of the total combined amounts obligated for contracts 
and subcontracts by each agency imder this Act and amendments 
made by this Act pursuant to competitive procedures within the 
meaning of either the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 251 et seq.), or chapter 137 of title 10, 
United States Code, shall be expended either with— 
(1) small business concerns controlled by socially and 
economically disadvantaged individuals or women; 
(2) historically Black colleges and universities; or 
(3) colleges and universities having a student body in which 
more than 20 percent of the students are Hispanic Americans 
or Native Americans. 
(b) DEFINITIONS.—For purposes of this section, the following 
definitions shall apply: 
(1) The term "small business concern" has the meaning 
such term has under section 3 of the Small Business Act 
(15 U.S.C. 632). However, for purposes of contracts and sub-
contracts requiring engineering services the applicable size 
standard shall be that established for military and aerospace 
equipment and military weapons. 
(2) The term "socially and economically disadvantaged 
individuals" has the meaning such term has under section 
8(d) of the Small Business Act (15 U.S.C. 637(d)) and relevant 
subcontracting regulations promulgated pursuant thereto. 
Approved October 24, 1992. 
LEGISLATIVE HISTORY—H.R. 776 (S. 2166): 
HOUSE REPORTS: Nos. 102-474, Pt. 1 (Comm. on Energy and Commerce), Pt. 2 
(Comm. on Science, Space, and Technology), Pt. 3 (Comm. on 
Public Works and Transportation), Pt. 4 (Comm. on Foreign 
Affairs), Pt. 5 (Comm. on Government Operations), Pt. 6 (Comm. 
on Ways and Means), Pt. 7 (Comm. on the Judiciary), Pt. 8 
(Comm. on Interior and Insular Affairs), and Pt. 9 (Comm. on 
Merchant Marine and Fisheries), and 102-1018 (Comm. of Con-
ference). 
CONGRESSIONAL RECORD, Vol. 138 (1992): 
Feb. 5-7, 18, 19, S. 2166 considered and passed Senate. 
May 20, 21, 27, H.R. 776 considered and passed House. 
July 29, 30, considered and passed Senate, amended. 
Oct. 5, House agreed to conference report. Senate considered conference report. 
Oct. 8, Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 28 (1992): 
Oct. 24, Presidential remarks and statement.