
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC5919]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
         CHAPTER 74--NONNUCLEAR ENERGY RESEARCH AND DEVELOPMENT
 
Sec. 5919. Loan guarantees and commitments for alternative fuel 
        demonstration facilities
        

(a) Statement of purpose

    It is the purpose of this section--
        (1) to assure adequate Federal support to foster a demonstration 
    program to produce alternative fuels from coal, oil shale, biomass, 
    and other domestic resources;
        (2) to authorize assistance, through loan guarantees under 
    subsection \1\ (b) and (y) of this section for construction and 
    startup and related costs, to demonstration facilities for the 
    conversion of domestic coal, oil shale, biomass, and other domestic 
    resources into alternative fuels; and
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    \1\ So in original. Probably should be ``subsections''.
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        (3) to gather information about the technological, economic, 
    environmental, and social costs, benefits, and impacts of such 
    demonstration facilities.

(b) Issuance of obligations for alternative fuel conversion facilities; 
        terms and conditions; rules and regulations; informational 
        requirements; concurrence of Secretary of Treasury to terms and 
        conditions; pledge of full faith and credit of United States; 
        cooperative agreements for construction, etc., of modular 
        facilities; bidding practices

    (1) Except as provided in paragraph (5) of this subsection and 
subsection (y) of this section the Secretary is authorized, in 
accordance with such rules and regulations as he shall prescribe after 
consultation with the Secretary of the Treasury, to guarantee and to 
make commitments to guarantee, in such manner and subject to such 
conditions (not inconsistent with the provisions of this chapter) as he 
deems appropriate, the payment of interest on, and the principal balance 
of, bonds, debentures, notes, and other obligations issued by, or on 
behalf of, any borrower for the purpose of financing the construction 
and startup costs of demonstration facilities for the conversion of 
domestic coal, oil shale, biomass, and other domestic resources into 
alternative fuels: Provided, That no loan guarantee for a full sized oil 
shale facility shall be provided under this section until after 
successful demonstration of a modular facility producing between six and 
ten thousand barrels per day, taking into account such considerations as 
water usage, environmental effects, waste disposal, labor conditions, 
health and safety, and the socioeconomic impacts on local communities: 
Provided further, That no loan guarantee shall be available under this 
subsection for the manufacture of component parts for demonstration 
facilities eligible for assistance under this subsection.
    (2) An applicant for any financial assistance under this section 
shall provide information to the Secretary in such form and with such 
content as the Secretary deems necessary.
    (3) Prior to issuing any guarantee under this section the Secretary 
shall obtain the concurrence of the Secretary of the Treasury with 
respect to the timing, interest rate, and substantial terms and 
conditions of such guarantee. The Secretary of the Treasury shall insure 
to the maximum extent feasible that the timing, interest rate, and 
substantial terms and conditions of such guarantee will have the minimum 
possible impact on the capital markets of the United States, taking into 
account other Federal direct and indirect securities activities.
    (4) The full faith and credit of the United States is pledged to the 
payment of all guarantees issued under this section with respect to 
principal and interest.
    (5)(A) The Secretary is authorized, in the case of a facility for 
the conversion of oil shale to alternative fuels which is determined by 
the Secretary pursuant to the proviso in paragraph (1) of this 
subsection, to be constructed at a modular size, to enter into a 
cooperative agreement with the applicant in accordance with section 5907 
of this title and the other provisions of this chapter to share the 
estimated total design and construction costs, plus operation and 
maintenance costs, of such modular facility. The Federal share shall not 
exceed 75 per centum of such costs. All receipts for the sale of any 
products produced during the operation of the facility shall be used to 
offset the costs incurred in the operation and maintenance of the 
facility. The provisions of subsections (d), (e), (k), (m), (p), (s), 
(t), (u), (v), (w), and (x) of this section shall apply to any such 
modular facility. The provisions of this section shall apply to any loan 
guarantee for such modular facility.
    (B) After successful demonstration of the modular facility, as 
determined by the Secretary, the facility is eligible for financial 
assistance under this section for purposes of expansion to a full sized 
facility and the applicant may purchase the Federal interest in the 
modular facility as represented by the Federal share thereof by means of 
(i) a cash payment to the United States, or (ii) a share of the product 
or sales resulting from such expanded operation, as determined by the 
Secretary. If expansion of such facility is determined not to be 
warranted by the Secretary, he may, at the option of the applicant, 
dispose of the modular facility to the applicant at not less than fair 
market value, as determined by the Secretary as of the date of the 
disposal, or otherwise dispose of it, in accordance with applicable 
provisions of law, and distribute the net proceeds thereof, after 
expenses of such disposal, to the applicant in proportion to the 
applicant's share of the costs of such facility.
    (6) To the extent possible, loan guarantees shall be issued on the 
basis of competitive bidding among guarantee applicants in a particular 
technology area.

(c) Prerequisites

    The Secretary, with due regard for the need for competition, shall 
guarantee or make a commitment to guarantee any obligation under 
subsection (b) or (y) of this section only if--
        (1) the Secretary is satisfied that the financial assistance 
    applied for is necessary to encourage financial participation;
        (2) the amount guaranteed to any borrower at any time does not 
    exceed--
            (A) an amount equal to 75 per centum of the project cost of 
        the demonstration facility as estimated at the time the 
        guarantee is issued, which cost shall not include amounts 
        expended for facilities and equipment used in the extraction of 
        a mineral other than coal or shale, and in the case of coal only 
        to the extent that the Secretary determines that the coal is to 
        be converted to alternative fuel; and
            (B) an amount equal to 60 per centum of that portion of the 
        actual total project cost of any demonstration facility which 
        exceeds the project cost of such facility as estimated at the 
        time the loan guarantee is issued;

        (3) the Secretary has determined that there will be a continued 
    reasonable assurance of full repayment;
        (4) the obligation is subject to the condition that it not be 
    subordinated to any other financing;
        (5) the Secretary has determined, taking into consideration all 
    reasonably available forms of assistance under this section and 
    other Federal and State statutes, that the impacts resulting from 
    the proposed demonstration facility have been fully evaluated by the 
    borrower, the Secretary, and the Governor of the affected State, and 
    that effective steps have been taken or will be taken in a timely 
    manner to finance community planning and development costs resulting 
    from such facility under this section, under other provisions of 
    law, or by other means;
        (6) the maximum maturity of the obligation does not exceed 
    twenty years, or 90 per centum of the projected useful economic life 
    of the physical assets of the demonstration facility covered by the 
    guarantee, whichever is less, as determined by the Secretary;
        (7) the Secretary has determined that, in the case of any 
    demonstration or modular facility planned to be located on Indian 
    lands, the appropriate Indian tribe, with the approval of the 
    Secretary of the Interior, has given written consent to such 
    location;
        (8) the obligation provides for the orderly and ratable 
    retirement of the obligation and includes sinking fund provisions, 
    installment payment provisions or other methods of payments and 
    reserves as may be reasonably required by the Secretary. Prior to 
    approving any repayment schedule the Secretary may consider the date 
    on which operating revenues are anticipated to be generated by the 
    project. To the maximum extent possible repayment or provision 
    therefor shall be required to be made in equal payments payable at 
    equal intervals; and
        (9) the obligation provides that the Secretary shall, after a 
    period of not less than ten years from issuance of the obligation, 
    taking into consideration whether the Government's needs for 
    information to be derived from the project have been substantially 
    met and whether the project is capable of commercial operation, 
    determine the feasibility and advisability of terminating the 
    Federal participation in the project. In the event that such 
    determination is positive, the Secretary shall notify the borrower 
    and provide the borrower with not less than two nor more than three 
    years in which to find alternative financing. At the expiration of 
    the designated period of time, if the borrower has been unable to 
    secure alternative financing, the Secretary is authorized to collect 
    from the borrower an additional fee of 1 per centum per annum on the 
    remaining obligation to which the Federal guarantee applies.

(d) Repealed. Pub. L. 96-470, title I, Sec. 109, Oct. 19, 1980, 94 Stat. 
        2239

(e) Impact on communities, States, and Indian tribes; notice to State 
        and local officials; procedures applicable for further action by 
        Secretary subsequent to negative recommendation by State 
        Governor; criteria and determinations relating to approval by 
        Secretary of construction and operation plans; establishment, 
        membership, etc., of advisory panel

    (1) As soon as the Secretary knows the geographic location of a 
proposed facility for which a guarantee or a commitment to guarantee or 
cooperative agreement is sought under this section, he shall inform the 
Governor of the State, and officials of each political subdivision and 
Indian tribe, as appropriate, in which the facility would be located or 
which would be impacted by such facility. The Secretary shall not 
guarantee or make a commitment to guarantee or enter into a cooperative 
agreement under subsection (b) or subsection (y) of this section, if the 
Governor of the State in which the proposed facility would be located 
recommends that such action not be taken, unless the Secretary finds 
that there is an overriding national interest in taking such action in 
order to achieve the purpose of this section. If the Secretary decides 
to guarantee or make a commitment to guarantee or enter into a 
cooperative agreement despite a Governor's recommendation not to take 
such action, the Secretary shall communicate, in writing, to the 
Governor reasons for not concurring with such recommendation. This 
Secretary's decision, pursuant to this subsection, shall be final unless 
determined upon judicial review initiated by the Governor to be unlawful 
by the reviewing court pursuant to section 706(2)(A) through (D) of 
title 5. Such review shall take place in the United States court of 
appeals for the circuit in which the State involved is located, upon 
application made within ninety days from the date of such decision. The 
Secretary shall, by regulation, establish procedures for review of, and 
comment on, the proposed facility by States, local political 
subdivisions, and Indian tribes which may be impacted by such facility, 
and the general public.
    (2) The Secretary shall review and approve the plans of the 
applicant for the construction and operation of any demonstration and 
related facilities constructed or to be constructed with assistance 
under this section. Such plans and the actual construction shall include 
such monitoring and other data-gathering costs associated with such 
facility as are required by the comprehensive plan and program under 
this section. The Secretary shall determine the estimated total cost of 
such demonstration facility, including, but not limited to, construction 
costs, startup costs, costs to political subdivisions and Indian tribe 
by such facility, and cost of any water storage facilities needed in 
connection with such demonstration facility, and determine who shall pay 
such costs. Such determination shall not be binding upon the States, 
political subdivisions, or Indian tribes.
    (3) There is hereby established a panel to advise the Secretary on 
matters relating to the program authorized by this section, including, 
but not limited to, the impact of the demonstration facilities on 
communities and States and Indian tribes, the environmental and health 
and safety effects of such facilities, and the means, measures, and 
planning for preventing or mitigating such impacts, and other matters 
relating to the development of alternative fuels and other energy 
sources under this section. The panel shall include such Governors or 
their designees as shall be designated by the Chairman of the National 
Governors Conference. Representatives of Indian tribes, industry, 
environmental organizations, and the general public shall be appointed 
by the Secretary. The Chairman of the panel shall be selected by the 
Secretary. No person shall be appointed to the panel who has a financial 
interest in any applicant applying for assistance under this section. 
Members of the panel shall serve without compensation. The provisions of 
section 5816(e) of this title shall apply to the panel.

(f) Termination, cancellation, revocation; conclusiveness; 
        contestability

    Except in accordance with reasonable terms and conditions contained 
in the written contract of guarantee, no guarantee issued or commitment 
to guarantee made under this section shall be terminated, canceled, or 
otherwise revoked. Such a guarantee or commitment shall be conclusive 
evidence that the underlying obligation is in compliance with the 
provisions of this section and that such obligation has been approved 
and is legal as to principal, interest, and other terms. Subject to the 
conditions of the guarantee or commitment to guarantee, such a guarantee 
shall be incontestable in the hands of the holder of the guaranteed 
obligation, except as to fraud or material misrepresentation on the part 
of the holder.

(g) Default by borrower; procedures applicable to payment by Secretary 
        and rights of subrogation; notice to Attorney General by 
        Secretary for further action; protection for benefit of United 
        States of patents and technologies of defaulting project through 
        agreements, etc.

    (1) If there is a default by the borrower, as defined in regulations 
promulgated by the Secretary and in the guarantee contract, the holder 
of the obligation shall have the right to demand payment of the unpaid 
amount from the Secretary. Within such period as may be specified in the 
guarantee or related agreements, the Secretary shall pay to the holder 
of the obligation the unpaid interest on, and unpaid principal of, the 
guaranteed obligation as to which the borrower has defaulted, unless the 
Secretary finds that there was no default by the borrower in the payment 
of interest or principal or that such default has been remedied. Nothing 
in this section shall be construed to preclude any forebearance by the 
holder of the obligation for the benefit of the borrower which may be 
agreed upon by the parties to the guaranteed obligation and approved by 
the Secretary.
    (2) If the Secretary makes a payment under paragraph (1) of this 
subsection, the Secretary shall be subrogated to the rights of the 
recipient of such payment (and such subrogation shall be expressly set 
forth in the guarantee or related agreements), including the authority 
to complete, maintain, operate, lease, or otherwise dispose of any 
property acquired pursuant to such guarantee or related agreements, or 
any other property of the borrower (of a value equal to the amount of 
such payment) to the extent that the guarantee applies to amounts in 
excess of the estimated project cost under subsection (c)(2)(B) of this 
section, without regard to the provisions of the Federal Property and 
Administrative Services Act of 1949, as amended [40 U.S.C. 471 et seq.], 
except section 207 of that Act (40 U.S.C. 488), or any other law, or to 
permit the borrower, pursuant to an agreement with the Secretary, to 
continue to pursue the purposes of the demonstration facility if the 
Secretary determines that this is in the public interest. The rights of 
the Secretary with respect to any property acquired pursuant to such 
guarantee or related agreements, shall be superior to the rights of any 
other person with respect to such property.
    (3) In the event of a default on any guarantee under this section, 
the Secretary shall notify the Attorney General, who shall take such 
action as may be appropriate to recover the amounts of any payments made 
under paragraph (1) including any payment of principal and interest 
under subsection (h) of this section from such assets of the defaulting 
borrower as are associated with the demonstration facility, or from any 
other security included in the terms of the guarantee.
    (4) For purposes of this section, patents, including any inventions 
for which a waiver was made by the Secretary under section 5908 of this 
title, and technology resulting from the demonstration facility, shall 
be treated as project assets of such facility. The guarantee agreement 
shall include such detailed terms and conditions as the Secretary deems 
appropriate to protect the interests of the United States in the case of 
default and to have available all the patents and technology necessary 
for any person selected, including, but not limited to the Secretary, to 
complete and operate the defaulting project. Furthermore, the guarantee 
agreement shall contain a provision specifying that patents, technology, 
and other proprietary rights which are necessary for the completion or 
operation of the demonstration facility shall be available to the United 
States and its designees on equitable terms, including due consideration 
to the amount of the United States default payments. Inventions made or 
conceived in the course of or under such guarantee, title to which is 
vested in the United States under this chapter, shall not be treated as 
project assets of such facility for disposal purposes under this 
subsection, unless the Secretary determines in writing that it is in the 
best interests of the United States to do so.

(h) Contracts to pay, and payment of principal and interest by Secretary 
        of unpaid balance of guaranteed obligations; prerequisites

    With respect to any obligation guaranteed under this section, the 
Secretary is authorized to enter into a contract to pay, and to pay, 
holders of the obligations, for and on behalf of the borrowers, from the 
fund established by this section, the principal and interest payments 
which become due and payable on the unpaid balance of such obligation if 
the Secretary finds that--
        (1) the borrower is unable to meet such payments and is not in 
    default; it is in the public interest to permit the borrower to 
    continue to pursue the purposes of such demonstration facility; and 
    the probable net benefit to the Federal Government in paying such 
    principal and interest will be greater than that which would result 
    in the event of a default;
        (2) the amount of such payment which the Secretary is authorized 
    to pay shall be no greater than the amount of principal and interest 
    which the borrower is obligated to pay under the loan agreement; and
        (3) the borrower agrees to reimburse the Secretary for such 
    payment on terms and conditions, including interest, which are 
    satisfactory to the Secretary.

(i) Time for issuance of regulations; procedures applicable to issuance 
        of regulations and amendments

    Regulations required by this section shall be issued within one 
hundred and eighty days after February 25, 1978. All regulations under 
this section and any amendments thereto shall be issued in accordance 
with section 553 of title 5.

(j) Fees for guarantees of obligations; determination of amounts; 
        excepted guarantees

    The Secretary shall charge and collect fees for guarantees of 
obligations authorized by subsection (b)(1) of this section, in amounts 
which (1) are sufficient in the judgment of the Secretary to cover the 
applicable administrative costs, and (2) reflect the percentage of 
projects costs guaranteed. In no event shall the fee be less than 1 per 
centum per annum of the outstanding indebtedness covered by the 
guarantee. Nothing in this subsection shall be construed to apply to 
community planning and development assistance pursuant to subsection (k) 
of this section.

(k) Community development and planning assistance guarantees; terms and 
        conditions; rules and regulations; concurrence of Secretary of 
        Treasury to terms and conditions; payment of taxes in event of 
        default by borrower; additional direct loans and grants; 
        redemption of debt obligations; funding requirements and 
        authorizations; facility title vesting and status upon default

    (1) In accordance with such rules and regulations as the Secretary 
in consultation with the Secretary of the Treasury shall prescribe, and 
subject to such terms and conditions as he deems appropriate, the 
Secretary is authorized, for the purpose of financing essential 
community development and planning which directly result from, or are 
necessitated by, one or more demonstration facilities assisted under 
this section to--
        (A) guarantee and make commitments to guarantee the payment of 
    interest on, and the principal balance of obligations for such 
    financing issued by eligible States, political subdivisions, or 
    Indian tribes,
        (B) guarantee and make commitments to guarantee the payment of 
    taxes imposed on such demonstration facilities by eligible non-
    Federal taxing authorities which taxes are earmarked by such 
    authorities to support the payment of interest and principal on 
    obligations for such financing, and
        (C) require that the applicant for assistance for a 
    demonstration facility under this section advance sums to eligible 
    States, political subdivisions, and Indian tribes to pay for the 
    financing of such development and planning: Provided, That the 
    State, political subdivision, or Indian tribe agrees to provide tax 
    abatement credits over the life of the facilities for such payments 
    by such applicant.

    (2) Prior to issuing any guarantee under this subsection, the 
Secretary shall obtain the concurrence of the Secretary of the Treasury 
with respect to the timing, interest rate, and substantial terms and 
conditions of such guarantee. The Secretary of the Treasury shall insure 
to the maximum extent feasible that the timing, interest rate, and 
substantial terms and conditions of such guarantee will have the minimum 
possible impact on the capital markets of the United States, taking into 
account other Federal direct and indirect securities activities.
    (3) In the event of any default by the borrower in the payment of 
taxes guaranteed by the Secretary under this subsection, the Secretary 
shall pay out of the fund established by this section such taxes at the 
time or times they may fall due, and shall have by reason of such 
payment a claim against the borrower for all sums paid plus interest.
    (4) If after consultation with the State, political subdivision, or 
Indian tribe, the Secretary finds that the financial assistance programs 
of paragraph (1) of this subsection will not result in sufficient funds 
to carry out the purposes of this subsection, then the Secretary may--
        (A) make direct loans to the eligible States, political 
    subdivisions, or Indian tribes for such purposes: Provided, That 
    such loans shall be made on such reasonable terms and conditions as 
    the Secretary shall prescribe: Provided further, That the Secretary 
    may waive repayment of all or part of a loan made under this 
    paragraph, including interest, if the State or political subdivision 
    or Indian tribe involved demonstrates to the satisfaction of the 
    Secretary that due to a change in circumstances there will be net 
    adverse impacts resulting from such demonstration facility that 
    would probably cause such State, subdivision, or tribe to default on 
    the loan; or
        (B) require that any community development and planning costs 
    which are associated with, or result from, such demonstration 
    facility and which are determined by the Secretary to be appropriate 
    for such inclusion shall be included in the total costs of the 
    demonstration facility.

    (5) The Secretary is further authorized to make grants to States, 
political subdivisions, or Indian tribes for studying and planning for 
the potential economic, environmental, and social consequences of 
demonstration facilities, and for establishing related management 
expertise.
    (6) At any time the Secretary may, with the concurrence of the 
Secretary of the Treasury, redeem, in whole or in part, out of the fund 
established by this section, the debt obligations guaranteed or the debt 
obligations for which tax payments are guaranteed under this subsection.
    (7) When one or more States, political subdivisions, or Indian 
tribes would be eligible for assistance under this subsection, but for 
the fact that construction and operation of the demonstration facilities 
occurs outside its jurisdiction, the Secretary is authorized to provide, 
to the greatest extent possible, arrangements for equitable sharing of 
such assistance.
    (8) Such amounts as may be necessary for direct loans and grants 
pursuant to this subsection shall be available as provided in annual 
authorization Acts.
    (9) The Secretary, if appropriate, shall provide assistance in the 
financing of up to 100 per centum of the costs of the required community 
development and planning pursuant to this subsection.
    (10) In carrying out the provisions of this subsection, the 
Secretary shall provide that title to any facility receiving financial 
assistance under this subsection shall vest in the applicable State, 
political subdivision, or Indian tribe, as appropriate, and in the case 
of default by the borrower on a loan guarantee such facility shall not 
be considered a project asset for the purposes of subsection (g) of this 
section.

(l) Annual reporting requirements; contents, etc.

    (1) The Secretary is directed to submit a report to the Congress 
within one hundred and eighty days after February 25, 1978, setting 
forth his recommendations on the best opportunities to implement a 
program of Federal financial assistance with the objective of 
demonstrating production and conservation of energy. Such report shall 
be updated and submitted to Congress at least annually and shall include 
specific comments and recommendations by the Secretary of the Treasury 
on the methods and procedures set forth in subparagraph (B)(viii) of 
this subsection, including their adequacy, and changes necessary to 
satisfy the objectives stated in this subsection. This report shall 
include--
        (A) a study of the purchase or commitment to purchase by the 
    Federal Government, for the use by the United States, of all or a 
    portion of the products of any alternative fuel facilities 
    constructed pursuant to this program as a direct or an alternate 
    form of Federal assistance, which assistance, if recommended, shall 
    be carried out pursuant to section 5906(a)(4) of this title; and
        (B) a comprehensive plan and program to acquire information and 
    evaluate the environmental, economic, social, and technological 
    impacts of the demonstration program under this section. In 
    preparing such a comprehensive plan and program, the Secretary shall 
    consult with the Environmental Protection Agency, the Department of 
    Housing and Urban Development, the Department of the Interior, the 
    Department of Agriculture, and the Department of the Treasury, and 
    shall include therein, but not be limited to, the following:
            (i) information about potential demonstration facilities 
        proposed in the program under this section;
            (ii) any significant adverse impacts which may result from 
        any activity included in the program;
            (iii) the extent to which it is feasible to commercialize 
        the technologies as they affect different regions of the Nation;
            (iv) proposed regulations required to carry out the purposes 
        of this section;
            (v) a list of Federal agencies, governmental entities, and 
        other persons that will be consulted or utilized to implement 
        the program;
            (vi) the methods and procedures by which the information 
        gathered under the program will be analyzed and disseminated;
            (vii) a plan for the study and monitoring of the health 
        effects of such facilities on workers and other persons, 
        including, but not limited to, any carcinogenic effect of 
        alternative fuels; and
            (viii) the methods and procedures to insure that (I) the use 
        of the Federal assistance for demonstration facilities is kept 
        to the minimum level necessary for the information objectives of 
        this section, (II) the impact of loan guarantees on the capital 
        markets of the United States is minimized, taking into account 
        other Federal direct and indirect securities activities, and any 
        economic sectors which may be negatively impacted as a result of 
        the reduction of capital by the placement of guaranteed loans, 
        and (III) the granting of Federal loan guarantees under this 
        chapter does not impede movement toward improvement in the 
        climate for attracting private capital to develop alternative 
        fuels without continued direct Federal incentives.

    (2) The Secretary shall annually submit a detailed report to the 
Congress concerning--
        (A) the actions taken or not taken by the Secretary under this 
    section during the preceding fiscal year, and including, but not be 
    limited to (i) a discussion of the status of each demonstration 
    facility and related facilities financed under this section, 
    including progress made in the development of such facilities, and 
    the expected or actual production from each such facility, including 
    byproduct production therefrom, and the distribution of such 
    products and byproducts, (ii) a detailed statement of the financial 
    conditions of each such demonstration facility, (iii) data 
    concerning the environmental, community, and health and safety 
    impacts of each such facility and the actions taken or planned to 
    prevent or mitigate such impacts, (iv) the administrative and other 
    costs incurred by the Secretary and other Federal agencies in 
    carrying out this program, and (v) such other data as may be helpful 
    in keeping Congress and the public fully and currently informed 
    about the program authorized by this section; and
        (B) the activities of the fund referred to in subsection (n) of 
    this section during the preceding fiscal year, including a statement 
    of the amount and source of fees or other moneys, property, or 
    assets deposited into the funds, all payments made, the notes or 
    other obligations issued by the Secretary, and such other data as 
    may be appropriate.

    (3) The annual reports required by this subsection shall be a part 
of the annual report required by section 5914 of this title, except that 
the matters required to be reported by this subsection shall be clearly 
set out and identified in such annual reports. Such reports and the one-
hundred-and-eighty-day report required in paragraph (1) of this 
subsection shall be transmitted to the Speaker of the House of 
Representatives and the House Committee on Science, Space, and 
Technology and to the President of the Senate and the Committee on 
Energy and Natural Resources of the Senate.

(m) Congressional finalization of guarantee, etc., subsequent to report 
        to Congressional committees; scope of authority

    Prior to issuing any guarantee or commitment to guarantee or 
cooperative agreement pursuant to subsection (b) or subsection (y) of 
this section the Secretary shall submit to the Committee on Science, 
Space, and Technology of the House of Representatives and the Committee 
on Energy and Natural Resources of the Senate a full and complete report 
on the proposed demonstration facility and such guarantee, agreement, or 
contract. Such guarantee, commitment to guarantee, cooperative 
agreement, or contract shall not be finalized under the authority 
granted by this section prior to the expiration of ninety calendar days 
(not including any day on which either House of Congress is not in 
session because of an adjournment of more than three calendar days to a 
day certain) from the date on which such report is received by such 
committees: Provided, That, where the cost of a demonstration facility 
to be assisted with a guarantee or cooperative agreement pursuant to 
subsection (b) or subsection (y) of this section exceeds $50,000,000 
such guarantee or commitment to guarantee or cooperative agreement shall 
not be finalized unless (1) the making of such guarantee or commitment 
or agreement is specifically authorized by legislation hereafter enacted 
by the Congress or (2) both Houses pass a resolution stating in 
substance that the Congress favors the making of such guarantee or 
commitment or agreement.

(n) Revolving fund; creation; funding; payments and transfers to general 
        fund of Treasury; issuance, redemption, etc., of notes or 
        obligations; applicability to direct loans or planning grants

    (1) There is hereby created within the Treasury a separate fund 
(hereafter in this section called the ``fund'') which shall be available 
to the Secretary without fiscal year limitation as a revolving fund for 
the purpose of carrying out the program authorized by subsection (b)(1) 
of this section and subsections (g), (h), (k), and (y) of this section.
    (2) There are hereby authorized to be appropriated to the fund for 
administrative expenses from time to time such amounts as may be 
necessary to carry out the purposes of the applicable provisions of this 
section, including, but not limited to, the payments of interest and 
principal and the payment of interest differentials and redemption of 
debt. All amounts received by the Secretary as interest payments or 
repayments of principal on loans which are guaranteed under this 
section, fees, and any other moneys, property, or assets derived by him 
from operations under this section shall be deposited in the fund.
    (3) All payments on obligations, appropriate expenses (including 
reimbursements to other Government accounts), and repayments pursuant to 
operations of the Secretary under this section shall be paid from the 
fund subject to appropriations. If at any time the Secretary determines 
that moneys in the fund exceed the present and reasonably foreseeable 
future requirements of the fund, such excess shall be transferred to the 
general fund of the Treasury.
    (4) If at any time the moneys available in the fund are insufficient 
to enable the Secretary to discharge his responsibilities as authorized 
by subsections (b)(1), (g), (h), and (y) of this section, the Secretary 
shall issue to the Secretary of the Treasury notes or other obligations 
in such forms and denominations, bearing such maturities, and subject to 
such terms and conditions as may be prescribed by the Secretary of the 
Treasury. Redemption of such notes or obligations shall be made by the 
Secretary from appropriations or other moneys available under paragraph 
(2) of this subsection for loan guarantees authorized by subsection 
(b)(1) of this section and subsections (g), (h), (k), and (y) of this 
section. Such notes or other obligations shall bear interest at a rate 
determined by the Secretary of the Treasury, which shall be not less 
than a rate determined by taking into consideration the average market 
yield on outstanding marketable obligations of the United States of 
comparable maturities during the month preceding the issuance of the 
notes or other obligations. The Secretary of the Treasury may at any 
time sell any of the notes or other obligations acquired by him under 
this subsection.
    (5) The provisions of this subsection do not apply to direct loans 
or planning grants made under subsection (k) of this section.

(o) Definitions

    For the purposes of this section, the term--
        (1) ``State'' means any State of the United States, the District 
    of Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin 
    Islands, American Samoa, any territory or possession of the United 
    States,
        (2) ``United States'' means the several States, the Commonwealth 
    of Puerto Rico, the Virgin Islands, Guam, and American Samoa,
        (3) ``borrower'' or ``applicant'' shall include any individual, 
    firm, corporation, company, partnership, association, society, 
    trust, joint venture, joint stock company, or other non-Federal 
    entity, and
        (4) ``biomass'' shall include, but is not limited to, animal and 
    timber waste, municipal and industrial waste, sewage, sludge, and 
    oceanic and terrestrial crops.

(p) Citizenship or nationality requirements for applicants; waiver

    (1) An applicant seeking a guarantee or cooperative agreement under 
subsection (b) or subsection (y) of this section must be a citizen or 
national of the United States. A corporation, partnership, firm, or 
association shall not be deemed to be a citizen or national of the 
United States unless the Secretary determines that it satisfactorily 
meets all the requirements of section 802 of title 46, Appendix, for 
determining such citizenship, except that the provisions in subsection 
(a) of such section 802 concerning (A) the citizenship of officers or 
directors of a corporation, and (B) the interest required to be owned in 
the case of a corporation, association, or partnership operating a 
vessel in the coastwise trade, shall not be applicable.
    (2) The Secretary, in consultation with the Secretary of State, may 
waive such requirements in the case of a corporation, partnership, firm, 
or association, controlling interest in which is owned by citizens of 
countries which are participants in the International Energy Agreement.

(q) Transfer of part of program to other agency or authority

    No part of the program authorized by this section shall be 
transferred to any other agency or authority, except pursuant to Act of 
Congress enacted after February 25, 1978.

(r) Statutory provisions applicable to inventions

    Inventions made or conceived in the course of or under a guarantee 
authorized by this section shall be subject to the title and waiver 
requirements and conditions of section 5908 of this title.

(s) Compliance by persons receiving financial assistance with Federal 
        and State environmental, etc., laws and regulations, and 
        licensing requirements

    Nothing in this section shall be construed as affecting the 
obligations of any person receiving financial assistance pursuant to 
this section to comply with Federal and State environmental, land use, 
water, and health and safety laws and regulations or to obtain 
applicable Federal and State permits, licenses, and certificates.

(t) Availability of information; procedures applicable; scope of 
        disclosure; persons to whom disclosure may be made; ``person'' 
        defined

    The information maintained by the Secretary under this section shall 
be made available to the public subject to the provision of section 552 
of title 5 and section 1905 of title 18 and to other Government agencies 
in a manner that will facilitate its dissemination: Provided, That upon 
a showing satisfactory to the Secretary by any person that any 
information, or portion thereof obtained under this section by the 
Secretary directly or indirectly from such person would, if made public, 
divulge (1) trade secrets or (2) other proprietary information of such 
person, the Secretary shall not disclose such information and disclosure 
thereof shall be punishable under section 1905 of title 18: Provided 
further, That the Secretary shall, upon request, provide such 
information to (A) any delegate of the Secretary for the purpose of 
carrying out this chapter, and (B) the Attorney General, the Secretary 
of Agriculture, the Secretary of the Interior, the Federal Trade 
Commission, the Environmental Protection Agency, the General Accounting 
Office, other Federal agencies, or heads of other Federal agencies, when 
necessary to carry out their duties and responsibilities under this and 
other statutes, but such agencies and agency heads shall not release 
such information to the public. This section is not authority to 
withhold information from Congress, or from any committee of Congress 
upon request of the Chairman. For the purposes of this subsection, the 
term ``person'' shall include the borrower.

(u) Scope of exercise of statutory authorities

    Notwithstanding any other provision of this section, the authority 
provided in this section to make guarantees or commitments to guarantee 
or enter into cooperative agreements under subsection (b)(1) or 
subsection (y) of this section, to make guarantees or commitments to 
guarantees, or to make loans or grants, under subsection (k) of this 
section, to make contracts under subsection (h) of this section, and to 
use fees and receipts collected under subsections (b), (j), and (y) of 
this section, and the authorities provided under subsection (n) of this 
section shall be effective only to the extent provided, without fiscal 
year limitation, in appropriation Acts enacted after February 25, 1978.

(v) Nondiscrimination requirements; scope of exemption from requirements 
        for Indian tribes

    No person in the United States shall on the grounds of race, color, 
religion, national origin, or sex, be excluded from participation in, be 
denied benefits of, or be subjected to discrimination under any program 
or activity funded in whole or in part with assistance made available 
under this section: Provided, That Indian tribes are exempt from the 
operation of this subsection: Provided further, That such exemption 
shall be limited to the planning and provision of public facilities 
which are located on reservations and which are provided for members of 
the affected Indian tribes as the primary beneficiaries.

(w) Participation by small business concerns in program

    In carrying out his functions under this section, the Secretary 
shall provide a realistic and adequate opportunity for small business 
concerns to participate in the program to the optimum extent feasible 
consistent with the size and nature of each project.

(x) Recordkeeping requirements; audit by Comptroller General; labor 
        standards at construction facilities

    (1) Recipients of financial assistance under this section shall keep 
such records and other pertinent documents, as the Secretary shall 
prescribe by regulation, including, but not limited to, records which 
fully disclose the disposition of the proceeds of such assistance, the 
cost of any facility, the total cost of the provision of public 
facilities for which assistance was used and such other records as the 
Secretary may require to facilitate an effective audit. The Secretary 
and the Comptroller General of the United States, or their duly 
authorized representative shall have access, for the purpose of audit, 
to such records and other pertinent documents.
    (2) All laborers and mechanics employed by contractors or 
subcontractors in the performance of construction work financed in whole 
or in part with assistance under this section shall be paid wages at 
rates not less than those prevailing on similar construction in the 
locality as determined by the Secretary of Labor in accordance with the 
Davis-Bacon Act, as amended (40 U.S.C. 276a--276a-5). The Secretary of 
Labor shall have, with respect to such labor standards, the authority 
and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 
F.R. 3176; 64 Stat. 1267) and section 276c of title 40.

(y) Issuance of obligations for synthetic fuel conversion facilities and 
        municipal organic waste energy generation facilities; rules and 
        regulations; statutory provisions inapplicable; limitation on 
        outstanding indebtedness; additional procedural requirements and 
        terms and conditions applicable

    (1) The Secretary is authorized in accordance with such rules and 
regulations as he shall prescribe after consultation with the Secretary 
of the Treasury, to guarantee and to make commitments to guarantee the 
payment of interest on, and the principal balance of, bonds, debentures, 
notes, and other obligations issued by or on behalf of any borrower for 
the purpose of (A) financing the construction and startup costs of 
demonstration facilities for the conversion of municipal or industrial 
waste, sewage sludge, or other municipal organic wastes into synthetic 
fuels, and (B) financing the construction and startup costs of 
demonstration facilities to generate desirable forms of energy 
(including synthetic fuels) from municipal or industrial waste, sewage 
sludge, or other municipal organic waste. With respect to a guarantee or 
a commitment to guarantee authorized by this subsection; the following 
subsections of this section shall not apply: (b)(1), (b)(5), (c)(2), 
(c)(5), (c)(6), (c)(7), (c)(8), (c)(9), (e)(3), (j), (k), and (q).
    (2) In the case where the Secretary seeks to guarantee or to make 
commitments to guarantee as provided by this subsection he is authorized 
to incur an outstanding indebtedness which at no time shall exceed 
$300,000,000.
    (3) The Secretary shall apply the following provisions thereto:
        (A) With respect to any demonstration facility for the 
    conversion of solid waste (as the term is defined in the Resource 
    Conservation and Recovery Act (42 U.S.C. 6903)), the Secretary, 
    prior to issuing any guarantee under this section, must be in 
    receipt of a certification from the Secretary of the Environmental 
    Protection Agency and any appropriate State or areawide solid waste 
    management planning agency that the proposed application for a 
    guarantee is consistent with any applicable suggested guidelines 
    published pursuant to section 1008(a) of the Resource Conservation 
    and Recovery Act [42 U.S.C. 6907(a)], and any applicable State or 
    regional solid waste management plan.
        (B) The amount guaranteed shall not exceed 75 per centum of the 
    total cost of the commercial demonstration facility, as determined 
    by the Secretary: Provided, That the amount guaranteed may not 
    exceed 90 per centum of the total cost of the commercial 
    demonstration facility during the period of construction and 
    startup.
        (C) The maximum maturity of the obligation shall not exceed 
    thirty years, or 90 per centum of the projected useful economic life 
    of the physical assets of the commercial demonstration facility 
    covered by the guarantee, whichever is less, as determined by the 
    Secretary.
        (D) The Secretary shall charge and collect fees for guarantees 
    of obligations in amounts sufficient in the judgment of the 
    Secretary to cover the applicable administrative costs and probable 
    losses on guaranteed obligations, but in any event not to exceed 1 
    per centum per annum of the outstanding indebtedness covered by the 
    guarantee.
        (E) No part of the program authorized by this section shall be 
    transferred to any other agency or authority, except pursuant to Act 
    of Congress enacted after February 25, 1978: Provided, That project 
    agreements entered into pursuant to this section for any commercial 
    demonstration facility for the conversion or bioconversion of solid 
    waste (as that term is defined in the Resource Conservation and 
    Recovery Act [42 U.S.C. 6901 et seq.]) shall be administered in 
    accordance with the May 7, 1976, Interagency Agreement between the 
    Environmental Protection Agency and the Energy Research and 
    Development Administration on the Development of Energy From Solid 
    Wastes, and provided specifically that in accordance with this 
    agreement (i) for those energy-related projects of mutual interest, 
    planning will be conducted jointly by the Environmental Protection 
    Agency and the Secretary, following which project responsibility 
    will be assigned to one agency; (ii) energy-related projects for 
    recovery of synthetic fuels or other forms of energy from solid 
    waste shall be the responsibility of the Secretary; and (iii) the 
    Environmental Protection Agency shall retain responsibility for the 
    environmental, economic, and institutional aspects of solid waste 
    projects and for assurance that such projects are consistent with 
    any applicable suggested guidelines pursuant to section 1008 of the 
    Resource Conservation and Recovery Act of 1976, as amended [42 
    U.S.C. 6907], and any applicable State or regional solid waste 
    management plan.
        (F) With respect to any obligation which is issued after 
    February 25, 1978, by, or in behalf of, any State, political 
    subdivision, or Indian tribe and which is either guaranteed under, 
    or supported by taxes levied by said issuer which are guaranteed 
    under, this section, the interest paid on such obligation and 
    received by the purchaser thereof (or the purchaser's successor in 
    interest) shall be included in gross income for the purpose of 
    chapter 1 of title 26: Provided, That the Secretary shall pay to 
    such issuer out of the fund established by this section such portion 
    of the interest on such obligations, as determined by the Secretary 
    of the Treasury to be appropriate after taking into account current 
    market yields (i) on obligations of said issuer, if any, and (ii) on 
    other obligations with similar terms and conditions the interest on 
    which is not so included in gross income for purposes of chapter 1 
    of title 26, and in accordance with, such terms and conditions as 
    the Secretary of the Treasury shall require.

(Pub. L. 93-577, Sec. 19, as added Pub. L. 95-238, title II, 
Sec. 207(b), Feb. 25, 1978, 92 Stat. 61; amended Pub. L. 96-470, title 
I, Sec. 109, Oct. 19, 1980, 94 Stat. 2239; Pub. L. 99-514, Sec. 2, Oct. 
22, 1986, 100 Stat. 2095; Pub. L. 103-437, Sec. 15(c)(9), Nov. 2, 1994, 
108 Stat. 4592; Pub. L. 104-316, title I, Sec. 122(o), Oct. 19, 1996, 
110 Stat. 3838.)

                       References in Text

    The Federal Property and Administrative Services Act of 1949, as 
amended, referred to in subsec. (g)(2), is act June 30, 1949, ch. 288, 
63 Stat. 377, as amended. Provisions of that act relating to disposal of 
government property are classified to chapter 10 (Sec. 471 et seq.) of 
Title 40, Public Buildings, Property, and Works. For complete 
classification of this Act to the Code, see Short Title note set out 
under section 471 of Title 40 and Tables.
    The Davis-Bacon Act, as amended, referred to in subsec. (x)(2), is 
act Mar. 3, 1931, ch. 411, 46 Stat. 1494, as amended, which is 
classified generally to sections 276a to 276a-5 of Title 40. For 
complete classification of this Act to the Code, see Short Title note 
set out under section 276a of Title 40 and Tables.
    Reorganization Plan Numbered 14 of 1950, referred to in subsec. 
(x)(2), is set out in the Appendix to Title 5, Government Organization 
and Employees.
    The Resource Conservation and Recovery Act of 1976, referred to in 
subsec. (y)(3)(A), (E), is Pub. L. 94-580, Oct. 21, 1976, 90 Stat. 2796, 
as amended, which is classified generally to chapter 82 (Sec. 6901 et 
seq.) of this title. For complete classification of this Act to the 
Code, see Short Title of 1976 Amendment note set out under section 6901 
of this title and Tables.

                          Codification

    The words ``the Federal Energy Administration,'' after ``the 
Environmental Protection Agency,'' in subsec. (l)(1)(B) and after ``the 
Federal Trade Commission,'' in subsec. (t)(B), and the words ``the 
Federal Power Commission,'' after ``the Environmental Protection 
Agency,'' in subsec. (t)(B) omitted from text in view of termination of 
Federal Energy Administration and Federal Power Commission and transfer 
of their functions (with certain exceptions) to Secretary of Energy 
pursuant to sections 301, 703, and 707 of Pub. L. 95-91, Aug. 4, 1977, 
91 Stat. 577, 606, 607, which are classified to sections 7151, 7293, and 
7297 of this title. This transfer would result in subsecs. (l)(1)(B) and 
(t)(B) being redundant in that it would require Secretary of Energy to 
consult with or provide information to himself. See Transfer of 
Functions note below.
    Another section 19 of Pub. L. 93-577 was classified to section 5918 
of this title prior to repeal by Pub. L. 104-106.


                               Amendments

    1996--Subsec. (x)(1). Pub. L. 104-316 struck out subpar. (A) 
designation before ``Recipients of financial'' and struck out subpar. 
(B) which read as follows: ``Within 6 months after February 25, 1978, 
and at 6-month intervals thereafter, the Comptroller General of the 
United States shall make an audit of recipients of financial assistance 
under this section. The Comptroller General may prescribe such 
regulations as he deems necessary to carry out this subparagraph.''
    1994--Subsecs. (l)(3), (m). Pub. L. 103-437 substituted ``Committee 
on Science, Space, and Technology'' for ``Committee on Science and 
Technology''.
    1986--Subsec. (y)(3)(F). Pub. L. 99-514 substituted ``Internal 
Revenue Code of 1986'' for ``Internal Revenue Code of 1954'', which for 
purposes of codification was translated as ``title 26'' thus requiring 
no change in text.
    1980--Subsec. (d). Pub. L. 96-470 struck out subsec. (d) which 
provided that prior to submitting a report to Congress pursuant to 
subsec. (m) of this section on each guarantee and cooperative agreement, 
the Administrator request from the Attorney General and the Chairman of 
the Federal Trade Commission written views and recommendations 
concerning the impact of such guarantee, commitment, or agreement on 
competition and concentration in the production of energy and give due 
consideration to the views and recommendations received, except that if 
either official, within 60 days after receipt of such request or at any 
time prior to the Administrator submitting such report to Congress, 
recommends against making the proposed guarantee, commitment, or 
agreement, the proposed guarantee, commitment, or agreement be referred 
to the President, and the Administrator not do so unless the President 
determines in writing that the guarantee, commitment, or agreement is in 
the national interest.

                         Change of Name

    Committee on Science, Space, and Technology of House of 
Representatives treated as referring to Committee on Science of House of 
Representatives by section 1(a) of Pub. L. 104-14, set out as a note 
preceding section 21 of Title 2, The Congress.

                          Transfer of Functions

    ``Secretary'' and ``Secretary's'', meaning Secretary of Energy, 
substituted for ``Administrator'' and ``Administrator's'', respectively, 
meaning Administrator of Energy Research and Development Administration, 
in text and for ``Energy Research and Development Administration'' in 
subsec. (y)(3)(E)(i), (ii) pursuant to sections 301(a), 703, and 707 of 
Pub. L. 95-91, Aug. 4, 1977, 91 Stat. 577, 606, 607, which are 
classified to sections 7151(a), 7293, and 7297 of this title and which 
terminated Energy Research and Development Administration and 
transferred its functions and functions of Administrator thereof (with 
certain exceptions) to Secretary of Energy.


 Nonapplicability of Title II of Pub. L. 95-238 to Any Authorization or 
    Appropriation for Military Application of Nuclear Energy, Etc.; 
                               Definitions

    Nonapplicability of provisions of title II of Pub. L. 95-238 with 
respect to any authorization or appropriation for any military 
application of nuclear energy, etc., see section 209 of Pub. L. 95-238, 
set out as a note under section 5821 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 5906, 8837 of this title.
