42 U.S.C. § 5907 — Demonstration projects

**(a) Scope of authority of Secretary** The Secretary is authorized to— (1) identify opportunities to accelerate the commercial applications of new energy technologies, and provide Federal assistance for or participation in demonstration projects (including pilot plants demonstrating technological advances and field demonstrations of new methods and procedures, and demonstrations of prototype commercial applications for the exploration, development, production, transportation, conversion, and utilization of energy resources); and (2) enter into cooperative agreements with non-Federal entities to demonstrate the technical feasibility and economic potential of energy technologies on a prototype or full-scale basis. **(b) Criteria applicable in reviewing potential projects** In reviewing potential projects, the Secretary shall consider criteria including but not limited to— (1) the anticipated, research, development, and application objectives to be achieved by the activities or facilities proposed; (2) the economic, environmental, and societal significance which a successful demonstration may have for the national fuels and energy system; (3) the relationship of the proposal to the criteria of priority set forth in [section 5904(b)(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5904/b/2&num=0&edition=prelim); (4) the availability of non-Federal participants to construct and operate the facilities or perform the activities associated with the proposal and to contribute to the financing of the proposal; (5) the total estimated cost including the Federal investment and the probable time schedule; (6) the proposed participants and the proposed financial contributions of the Federal Government and of the non-Federal participants; and (7) the proposed cooperative arrangement, agreements among the participants, and form of management of the activities. **(c) Federal and non-Federal share of costs** (1) A financial award under this section may be made only to the extent of the Federal share of the estimated total design and construction costs, plus operation and maintenance costs. (2) For the purposes of this chapter the non-Federal share may be in any form, including, but not limited to, lands or interests therein needed for the project or personal property or services, the value of which shall be determined by the Secretary. **(d) Regulations** (1) The Administrator of the Energy Research and Development Administration shall, within six months of December 31, 1974, promulgate regulations establishing procedures for submission of proposals to the Energy Research and Development Administration for the purposes of this chapter. Such regulations shall establish a procedure for selection of proposals which— (A) provides that projects will be carried out under such conditions and varying circumstances as will assist in solving energy extraction, transportation, conversion, conservation, and end-use problems of various areas and regions, under representative geological, geographic, and environmental conditions; and (B) provides time schedules for submission of, and action on, proposal requests for the purposes of implementing the goals and objectives of this chapter. (2) Such regulations also shall specify the types and form of the information, data, and support documentation that are to be contained in proposals for each form of Federal assistance or participation set forth in [section 5906(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5906/a&num=0&edition=prelim): Provided, That such proposals to the extent possible shall include, but not be limited to— (A) specification of the technology; (B) description of prior pilot plant operating experience with the technology; (C) preliminary design of the demonstration plant; (D) time tables containing proposed construction and operation plans; (E) budget-type estimates of construction and operating costs; (F) description and proof of title to land for proposed site, natural resources, electricity and water supply and logistical information related to access to raw materials to construct and operate the plant and to dispose of salable products produced from the plant; (G) analysis of the environmental impact of the proposed plant and plans for disposal of wastes resulting from the operation of the plant; (H) plans for commercial use of the technology if the demonstration is successful; (I) plans for continued use of the plant if the demonstration is successful; and (J) plans for dismantling of the plant if the demonstration is unsuccessful or otherwise abandoned. (3) The Secretary shall from time to time review and, as appropriate, modify and repromulgate regulations issued pursuant to this section. **(e) Amount of estimate of Federal investment requiring Congressional authorization for appropriation** If the estimate of the Federal investment with respect to construction costs of any demonstration project proposed to be established under this section exceeds $50,000,000, no amount may be appropriated for such project except as specifically authorized by legislation hereafter enacted by the Congress. **(f) Amount of estimated Federal contribution; necessity for report** If the total estimated amount of the Federal contribution to the construction cost of a demonstration project does not exceed $50,000,000, the Secretary is authorized to proceed with the negotiation of agreements and implementation of the proposal subject to the availability of funds under the authorization of appropriations pursuant to [section 5915 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5915&num=0&edition=prelim): Provided, That if such Federal contribution to the construction cost is estimated to exceed $25,000,000 the Secretary shall provide a full and comprehensive report on the proposed demonstration project to the appropriate committees of the Congress and no funds may be expended for any agreement under the authority granted by this section prior to the expiration of sixty 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 the Secretary’s report on the proposed project is received by the Congress. Such reports shall contain an analysis of the extent to which the proposed demonstration satisfies the criteria specified in subsection (b) of this section.