42 U.S.C. § 5906 — Federal assistance and participation in

Page 6630 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 5906 1 See Codification note below. respectively, of chapter 134 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 13201 of this title and Tables. Section 5914 of this title, referred to in subsecs. (a), (b)(1), and (c), was omitted from the Code. The Geothermal Energy Research, Development, and Demonstration Act of 1974 (Public Law 93–410), referred to in subsec. (b)(3)(F), was classified generally to chap- ter 24 (§ 1101 et seq.) of Title 30, Mineral Lands and Min- ing, prior to repeal by Pub. L. 116–260, div. Z, title III, § 3002(i)(3), Dec. 27, 2020, 134 Stat. 2495. The Solar Heating and Cooling Demonstration Act of 1974, referred to in subsec. (b)(3)(I), is Pub. L. 93–409, Sept. 3, 1974, 88 Stat. 1069, was classified generally to subchapter I (§ 5501 et seq.) of chapter 71 of this title, prior to repeal by Pub. L. 116–260, div. Z, title III, § 3006(e)(1), Dec. 27, 2020, 134 Stat. 2513. The Renewable Energy and Energy Efficiency Tech- nology Competitiveness Act of 1989, referred to in sub- sec. (b)(3)(Q), is Pub. L. 101–218, Dec. 11, 1989, 103 Stat. 1859, which is classified principally to chapter 125 (§ 12001 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 12001 of this title and Tables. AMENDMENTS 2020—Subsec. (b)(3)(L) to (S). Pub. L. 116–260 redesig- nated subpars. (M) to (S) as (L) to (R), respectively, and struck out subpar. (L) which read as follows: ‘‘to com- mercially demonstrate advanced solar energy tech- nologies in accordance with the Solar Energy Research, Development, and Demonstration Act of 1974 (Public Law 93–473);’’. 2005—Subsec. (b)(3). Pub. L. 109–58 substituted ‘‘Sec- retary’’ for ‘‘Administrator’’ in introductory provisions and subpars. (D) and (E) and inserted ‘‘Demonstration’’ after ‘‘Cooling’’ in subpar. (I) and ‘‘Energy’’ after ‘‘Solar’’ in subpar. (L). 1992—Subsec. (a). Pub. L. 102–486, § 2303(a)(1)(A), sub- stituted ‘‘the Department of Energy Organization Act (42 U.S.C. 7101 et seq.), and titles XX through XXIII of the Energy Policy Act of 1992, the Secretary, in con- sultation with the Advisory Board established under section 2302 of the Energy Policy Act of 1992,’’ for ‘‘the Administrator’’. Subsec. (a)(1). Pub. L. 102–486, § 2303(a)(1)(B), sub- stituted ‘‘(the period up to 5 years after submission of the plan or its annual revision)’’ for ‘‘(to the early 1980’s)’’. Subsec. (a)(2). Pub. L. 102–486, § 2303(a)(1)(C), sub- stituted ‘‘(the period from 5 years to 10 years after sub- mission of the plan or its annual revision)’’ for ‘‘(the early 1980’s to 2000)’’. Subsec. (a)(3). Pub. L. 102–486, § 2303(a)(1)(D), sub- stituted ‘‘(the period beyond 10 years after submission of the plan or its annual revision)’’ for ‘‘(beyond 2000)’’. Subsec. (b)(1). Pub. L. 102–486, § 2303(a)(2)(B), inserted at end ‘‘Such program shall be updated and transmitted to the Congress annually as part of the report required under section 5914 of this title.’’ Pub. L. 102–486, § 2303(a)(2)(A), substituted ‘‘Secretary, in consultation with the Advisory Board established under section 2302 of the Energy Policy Act of 1992,’’ for ‘‘Administrator’’. Subsec. (b)(2). Pub. L. 102–486, § 2303(a)(2)(C), sub- stituted ‘‘, middle-term, and long-term time intervals described in subsection (a)(1) through (3)’’ for ‘‘(to the early 1980’s), middle-term (the early 1980’s to 2000), and long-term (beyond 2000) time intervals’’. Pub. L. 102–486, § 2303(a)(2)(A), substituted ‘‘Secretary, in consultation with the Advisory Board established under section 2302 of the Energy Policy Act of 1992,’’ for ‘‘Administrator’’. Subsec. (b)(3). Pub. L. 102–486, § 2303(a)(2)(D)–(F), added subpars. (R) and (S). Subsec. (c). Pub. L. 102–486, § 2303(a)(3)(B), inserted at end ‘‘Such program shall be updated and transmitted to the Congress annually as part of the report required under section 5914 of this title.’’ Pub. L. 102–486, § 2303(a)(3)(A), substituted ‘‘Secretary, in consultation with the Advisory Board established under section 2302 of the Energy Policy Act of 1992,’’ for ‘‘Administrator’’. 1978—Subsec. (c). Pub. L. 95–238 added subsec. (c). Statutory Notes and Related Subsidiaries NONAPPLICABILITY OF TITLE II OF PUB. L. 95–238 TO ANY AUTHORIZATION OR APPROPRIATION FOR MILI- TARY APPLICATION OF NUCLEAR ENERGY, ETC.; DEFI- NITIONS Nonapplicability of provisions of title II of Pub. L. 95–238 with respect to any authorization or appropria- tion 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. § 5906. Federal assistance and participation in programs (a) Forms of activities authorized In carrying out the objectives of this chapter, the Secretary may utilize various forms of Fed- eral assistance and participation which may in- clude but are not limited to— (1) joint Federal-industry experimental, demonstration, or commercial corporations consistent with the provisions of subsection (b) of this section; (2) contractual arrangements with non-Fed- eral participants including corporations, con- sortia, universities, governmental entities and nonprofit institutions; (3) contracts for the construction and oper- ation of federally owned facilities; (4) Federal purchases or guaranteed price of the products of demonstration plants or ac- tivities consistent with the provisions of sub- section (c) of this section; (5) Federal loans to non-Federal entities conducting demonstrations of new tech- nologies; (6) incentives, including financial awards, to individual inventors, such incentives to be de- signed to encourage the participation of a large number of such inventors; and (7) Federal loan guarantees and commit- ments thereof as provided in section 5919 1 of this title. (b) Proposed joint Federal-industry corporations; operational guidelines; powers, duties, and functions; composition; scope of Federal as- sistance and participation; specific author- ization Joint Federal-industry corporations proposed for congressional authorization pursuant to this chapter shall be subject to the provisions of sec- tion 5908 of this title and shall conform to the following guidelines except as otherwise author- ized by Congress: (1) Each such corporation may design, con- struct, operate, and maintain one or more ex- perimental, demonstration, or commercial- size facilities, or other operations which will ascertain the technical, environmental, and economic feasibility of a particular energy technology. In carrying out this function, the corporation shall be empowered, either di- rectly or by contract, to utilize commercially available technologies, perform tests, or de- sign, construct, and operate pilot plants, as Page 6631 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 5906 may be necessary for the design of the full- scale facility. (2) Each corporation shall have— (A) a Board of nine directors consisting of individuals who are citizens of the United States, of whom one shall be elected annu- ally by the Board to serve as Chairman. The Board shall be empowered to adopt and amend bylaws. Five members of the Board shall be appointed by the President of the United States, by and with the advice and consent of the Senate, and four members of the Board shall be appointed by the Presi- dent on the basis of recommendations re- ceived by him from any non-Federal entity or entities entering into contractual ar- rangements to participate in the corpora- tion; (B) a President and such other officers and employees as may be named and appointed by the Board (with the rates of compensa- tion of all officers and employees being fixed by the Board); and (C) the usual powers conferred upon cor- porations by the laws of the District of Co- lumbia. (3) An appropriate time interval, not to ex- ceed 12 years, shall be established for the term of Federal participation in the corporation, at the expiration of which the Board of Directors shall take such action as may be necessary to dissolve the corporation or otherwise termi- nate Federal participation and financial inter- ests. In carrying out such dissolution, the Board of Directors shall dispose of all physical facilities of the corporation in such manner and subject to such terms and conditions as the Board determines are in the public inter- est and consistent with existing law; and a share of the appraised value of the corporate assets proportional to the Federal participa- tion in the corporation, including the proceeds from the disposition of such facilities, on the date of its dissolution, after satisfaction of all its legal obligations, shall be made available to the United States and deposited in the Treasury of the United States as miscella- neous receipts. All patent rights of the cor- poration shall, on such date of dissolution, be vested in the Secretary: Provided, That Fed- eral participation may be terminated prior to the time established in the authorizing Act upon recommendation of the Board of Direc- tors. (4) Any commercially valuable product pro- duced by demonstration facilities shall be dis- posed of in such manner and under such terms and conditions as the corporation shall pre- scribe. All revenues received by the corpora- tion from the sale of such products shall be available to the corporation for use by it in defraying expenses incurred in connection with carrying out its functions to which this chapter applies. (5) The estimated Federal share of the con- struction, operation, and maintenance cost over the life of each corporation shall be de- termined in order to facilitate a single con- gressional authorization of the full amount at the time of establishment of the corporation. (6) The Federal share of the cost of each such corporation shall reflect (A) the tech- nical and economic risk of the venture, (B) the probability of any financial return to the non- Federal participants arising from the venture, (C) the financial capability of the potential non-Federal participants, and (D) such other factors as the Secretary may set forth in pro- posing the corporation: Provided, That in no instance shall the Federal share exceed 90 per centum of the cost. (7) No such corporation shall be established unless previously authorized by specific legis- lation enacted by the Congress. (c) Proposed competitive systems of price sup- ports for demonstration facilities; guidelines Competitive systems of price supports pro- posed for congressional authorization pursuant to this chapter shall conform to the following guidelines: (1) The Secretary shall determine the types and capacities of the desired full-scale, com- mercial-size facility or other operation which would demonstrate the technical, environ- mental, and economic feasibility of a par- ticular nonnuclear energy technology. (2) The Secretary may award planning grants for the purpose of financing a study of the full cycle economic and environmental costs associated with the demonstration facil- ity selected pursuant to paragraph (1) of this subsection. Such planning grants may be awarded to Federal and non-Federal entities including, but not limited to, industrial enti- ties, universities, and nonprofit organizations. Such planning grants may also be used by the grantee to prepare a detailed and comprehen- sive bid to construct the demonstration facil- ity. (3) Following the completion of the studies pursuant to the planning grants awarded under paragraph (2) of this subsection regard- ing each such potential price supported dem- onstration facility for which the Secretary in- tends to request congressional authorization, he shall invite bids from all interested parties to determine the minimum amount of Federal price support needed to construct the dem- onstration facility. The Secretary may des- ignate one or more competing entities, each to construct one commercial demonstration fa- cility. Such designation shall be made on the basis of those entities, (A) commitment to construct the demonstration facility at the minimum level of Federal price supports, (B) detailed plan of environmental protection, and (C) proposed design and operation of the dem- onstration facility. (4) The construction plans and actual con- struction of the demonstration facility, to- gether with all related facilities, shall be mon- itored by the Environmental Protection Agen- cy. If additional environmental requirements are imposed by the Secretary after the des- ignation of the successful bidders and if such additional environmental requirements result in additional costs, the Secretary is author- ized to renegotiate the support price to cover such additional costs. (5) The estimated amount of the Federal price support for a demonstration facility’s product over the life of such facility shall be Page 6632 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 5907 determined by the Secretary to facilitate a single congressional authorization of the full amount of such support at the time of the des- ignation of the successful bidders. (6) No price support program shall be imple- mented unless previously authorized by spe- cific legislation enacted by the Congress. (d) Support for joint university-industry re- search efforts Nothing in this section shall preclude Federal participation in, and support for, joint univer- sity-industry nonnuclear energy research ef- forts. (Pub. L. 93–577, § 7, Dec. 31, 1974, 88 Stat. 1883; Pub. L. 95–238, title II, § 207(a), Feb. 25, 1978, 92 Stat. 61; Pub. L. 99–386, title I, § 104(a), Aug. 22, 1986, 100 Stat. 821; Pub. L. 109–58, title X, § 1009(b)(5), Aug. 8, 2005, 119 Stat. 935.) Editorial Notes CODIFICATION Section 5919 of this title, referred to in subsec. (a)(7), was in the original ‘‘section 19’’ and has been edi- torially translated as section 5919 of this title which re- lated to loan guarantees prior to repeal by Pub. L. 109–58, title X, § 1009(b)(12), Aug. 8, 2005, 119 Stat. 936, to reflect the probable intent of Congress, notwith- standing enactment of another section 19 which was classified to section 5918 of this title and related to or- ganizational conflicts prior to repeal by Pub. L. 104–106, div. D, title XLIII, § 4304(b)(5), Feb. 10, 1996, 110 Stat. 664. AMENDMENTS 2005—Subsec. (a). Pub. L. 109–58, § 1009(b)(5)(A), sub- stituted ‘‘Secretary’’ for ‘‘Administrator’’ in introduc- tory provisions. Subsec. (a)(4). Pub. L. 109–58, § 1009(b)(5)(B), sub- stituted ‘‘of this section’’ for ‘‘of the section’’. Subsecs. (b), (c). Pub. L. 109–58, § 1009(b)(5)(A), sub- stituted ‘‘Secretary’’ for ‘‘Administrator’’ wherever ap- pearing. 1986—Subsec. (b)(7). Pub. L. 99–386 struck out subpar. (A) which related to submission of a report by Sec- retary to House and Senate, prior to establishment of any joint Federal-industry corporation pursuant to this chapter, setting forth in detail consistency of establish- ment of corporation with this section and section 5904 of this title, and proposed purpose and activities of cor- poration, and struck out subpar. (B) designation. 1978—Subsec. (a)(7). Pub. L. 95–238 added par. (7). Statutory Notes and Related Subsidiaries NONAPPLICABILITY OF TITLE II OF PUB. L. 95–238 TO ANY AUTHORIZATION OR APPROPRIATION FOR MILI- TARY APPLICATION OF NUCLEAR ENERGY, ETC.; DEFI- NITIONS Nonapplicability of provisions of title II of Pub. L. 95–238 with respect to any authorization or appropria- tion 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. PRICE-SUPPORT PROGRAM TO DEMONSTRATE MUNICIPAL SOLID WASTE REPROCESSING FOR PRODUCTION OF FUELS AND ENERGY INTENSIVE PRODUCTS Pub. L. 95–39, title I, § 107, June 3, 1977, 91 Stat. 185, authorized Administrator, subject to the appropriation of funds pursuant to section 101(7)(I) of Pub. L. 95–39, to establish and implement, under subsection (a)(4) of this section and in accordance with subsection (c) of this section, a price-support program to demonstrate mu- nicipal solid waste reprocessing for production of fuels and energy intensive products, with Administrator, prior to entering into any contract for such demonstra- tion, to submit to Congress a full and complete report on the proposed commercial demonstration facility and the necessary project demonstration guarantees, and provided that such contract could not be finalized prior to the expiration of ninety calendar days (not including any day on which either House of Congress was not in session because of an adjournment of more than three calendar days to a day certain) from the date on which such report was received. § 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 tech- nologies, and provide Federal assistance for or participation in demonstration projects (in- cluding pilot plants demonstrating techno- logical advances and field demonstrations of new methods and procedures, and demonstra- tions 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 tech- nical feasibility and economic potential of en- ergy 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 soci- etal significance which a successful dem- onstration 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; (4) the availability of non-Federal partici- pants to construct and operate the facilities or perform the activities associated with the pro- posal 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 pro- posed financial contributions of the Federal Government and of the non-Federal partici- pants; 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